Prices of some new properties going down
http://www.straitstimes.com/Latest%2...ry_246818.html
June 11, 2008
Prices of some new properties going down
Move may signal end of months-long stand-off between buyers and sellers
By Fiona Chan, Property Reporter
GOOD news for homebuyers: The prices of some new developments are finally starting to come down.
At least two new projects have been tagged with prices below what they were expected to fetch just months ago.
This may be because developers are faced with no sign of improvement in the cooling property market, consultants say.
They may be choosing to move units by making their projects more affordable rather than continuing to wait out the gloomy sentiment.
One example is Dakota Residences in Dakota Crescent, a 99-year leasehold project by Ho Bee Investment and NTUC Choice Homes.
Sales of its 348 units will start next Saturday at an average of about $950 per sq ft (psf) - below the $1,000 psf to $1,100 psf that Ho Bee had previously targeted.
This means a 1,300 sq ft three-bedroom unit would cost about $1.24 million, down from as much as $1.43 million previously.
'After the land cost and building cost, the break-even price is actually almost $900 psf,' said a property agent, who asked not to be named.
The Straits Times understands that about 120 units will be released in the first phase, and prices may go up by at least 5 per cent for the remaining units, depending on demand.
For now, the two- and three-bedroom units that face away from Geylang River are said to cost $950 psf to $970 psf, while the bigger four-bedroom units facing the river will go for $1,000 psf.
City Developments' (CDL) Shelford Suites in Shelford Road has also started previews for its 77 units at about $1,600 psf on average.
Market watchers said this was lower than expected, as two units were sold in March for $1,869 psf and $1,905 psf.
Shelford Suites' launch had been delayed for months as CDL waited for sentiment to improve.
Read the full story in Thursday's edition of The Straits Times.
Sub-sales market may stay active as punters sell units
http://www.businesstimes.com.sg/sub/...83285,00.html?
Published June 12, 2008
Sub-sales market may stay active as punters sell units
Median sub-sale price fell 8% in Q1 2008, says DTZ study
By KALPANA RASHIWALA
SPECULATIVE buying has eased, but the sub-sale market may continue to be active as speculators dispose of units in projects as they are physically completed, DTZ says in a recent report.
'Those who had purchased multiple units on deferred payment schemes are most likely to sell some or all units to avoid stretching their financial limits,' it added.
Typically the deferred payment schemes under which many residential projects have been sold in the past by developers run out when the projects receive Temporary Occupation Permit (TOP). That is when buyers have to pay the bulk of the purchase price to developers.
The scheme was scrapped in October last year to discourage speculative buying which had sent private home prices to dizzying heights earlier - until the US sub-prime crisis struck.
DTZ's analysis of caveats lodged for private home purchases shows that the median sub-sale price fell by nearly 8 per cent quarter-on-quarter to $1,107 per square foot in Q1 2008.
This was due to fewer high-end units being transacted in the sub-sale market. Projects which received the strongest subsale interest in Q1 2008 were Citylights, Icon and Varsity Park Condo, as TOPs for these projects were granted recently, resulting in many speculators disposing of their early purchases, the report said.
Independent of whether they bought their units on deferred payment, property investors typically tend to sell off units shortly before or after a project receives TOP as buyers are willing to pay a slightly higher price then, because units in the development can be immediately rented, DTZ executive director Ong Choon Fah explains.
Sub-sales, used as a proxy for the level of speculative activity, refer to secondary market deals in projects that have yet to receive Certificate of Statutory Completion. This may be anywhere from three to 12 months after the project receives TOP.
DTZ's report also showed that foreigners (including permanent residents) accounted for 28 per cent of caveats lodged for overall private home purchases in Q1 this year, up slightly from a 27 per cent share in the preceding quarter.
Indonesians and Malaysians continued to be the biggest buyers, accounting for 18 per cent and 15 per cent respectively of private homes bought by foreigners in Q1 2008.
Buyers from India saw their share go up from 11 per cent in Q4 last year to 14 per cent in Q1 2008. However, Koreans' share slipped from 8 per cent to 5 per cent over the same period.
'The higher earlier share was partly due to a number of projects being marketed in Korea during 2007,' DTZ said.
Projects that were popular among foreign buyers in Q1 2008 included Zenith in the Zion Road location, Waterfront Waves facing Bedok Reservoir, and Marina Collection in Sentosa Cove.
http://www.businesstimes.com.sg/mnt/...SUBSALES12.jpg
Prices of some new properties coming down
http://www.straitstimes.com/Money/St...ry_246963.html
June 12, 2008
Prices of some new properties coming down
Move may signal end of months-long stand-off between buyers and sellers
By Fiona Chan, Property Reporter
http://www.straitstimes.com/STI/STIM..._FIOLAUNCH.jpg
# Shelford Suites (above) Sold in March for: $1,869 psf - $1,905 psf
# Current price: $1,600 psf
Dakota Residences
# Planned price: $1,000 psf - $1,100 psf
# Current price: $950 psf -- PHOTO: CITY DEVELOPMENTS
GOOD news for homebuyers: The prices of some new developments are finally starting to come down.
At least two new projects have been tagged with prices below what they were expected to fetch just months ago.
This may be because developers are faced with no sign of improvement in the cooling property market, consultants say. They may be choosing to move units by making their projects more affordable rather than continuing to wait out the gloomy sentiment.
One example is Dakota Residences in Dakota Crescent, a 99-year leasehold project by Ho Bee Investment and NTUC Choice Homes.
Sales of its 348 units will start next Saturday at an average of about $950 per sq ft (psf) - below the $1,000 psf to $1,100 psf that Ho Bee had previously targeted.
This means a 1,300 sq ft three-bedroom unit would cost about $1.24 million, down from as much as $1.43 million previously.
'After the land cost and building cost, the break-even price is actually almost $900 psf,' said a property agent, who asked not to be named.
The Straits Times understands that about 120 units will be released in the first phase, and prices may go up by at least 5 per cent for the remaining units, depending on demand.
For now, the two- and three-bedroom units that face away from Geylang River are said to cost $950 psf to $970 psf, while the bigger four-bedroom units facing the river will go for $1,000 psf.
City Developments' (CDL) Shelford Suites in Shelford Road has also started previews for its 77 units at about $1,600 psf on average.
Market watchers said this was lower than expected, as two units were sold in March for $1,869 psf and $1,905 psf.
Shelford Suites' launch had been delayed for months as CDL waited for sentiment to improve.
Property consultants say the act of lowering prices may be the beginning of the end of a months-long stand-off between homebuyers and home sellers that has led to a slump in transactions.
Would-be buyers have proved strongly resistant to current property prices, which have jumped 36 per cent in the last five quarters, while sellers have refused to reduce their prices until now.
But while lowering prices may jump-start the market, a one-off reduction may not be enough to sustain sales, said Mr Colin Tan, the head of research and consultancy at Chesterton International.
'Developers will have to continue to reduce prices if they want to maintain sales, as many projects are still out of the reach of owner-occupiers,' he said.
Meanwhile, developers are gearing up to launch more mid-tier projects for an increasingly price-sensitive market.
East Bay, a 40-unit condominium at Tay Lian Teck Road off Upper East Coast Road, will be on sale in the coming weeks. Prices average $1,100 psf, starting at about $600,000.
Also in the east, Ivory at Ceylon Road has sold about five of its 28 units. Prices start at $558,000 for a 640 sq ft two-bedroom apartment, averaging $800 psf.
At 353 Pasir Panjang Road, a 19-unit boutique project will be completed soon, though sales have just started. A handful of units have been sold so far, with one-bedroom apartments going for $550,000, and three-bedroom units priced at $1.4 million to $1.5 million.
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ONE-TIME PRICE CUT NOT ENOUGH
'Developers will have to continue to reduce prices if they want to maintain sales, as many projects are still out of the reach of owner-occupiers.'
MR COLIN TAN, head of research and consultancy at Chesterton International, who thinks one-off price reductions may not be enough to sustain sales
