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Thread: Major Singapore property launches unlikely in next three months - report

  1. #1
    mr funny is offline Any complaints please PM me
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    Default Major Singapore property launches unlikely in next three months - report

    Thursday March 13, 01:57 AM

    Major Singapore property launches unlikely in next three months - report


    SINGAPORE (Thomson Financial) - Singapore may not see major property launches over the next three months as the negative sentiment on the sector was exacerbated by recent events, including the Kuwait fund pullout from a major purchase of high-end residential units, the Straits Times (news) reported Thursday, quoting market analysts.

    Kuwait Finance House balked at its option to buy 97 units at Goodwood Residence, a project of GuocoLand (F17.SI - news) , for 818 million Singapore dollars to lapse while a landed housing site in Jurong West fetched a top bid of 78 dollars per square foot, which was significantly lower than expected, the newspaper said.

    Major property developers such as CapitaLand (C31.SI - news) and City Developments (C09.SI - news) have said earlier they are willing to defer property launches until sentiment improves, probably in the second half of the year.

    Only the 405-unit Waterfront Waves in Bedok Reservoir has been the new major condo launch this year, the Straits Times said.

    'Not everyone can hold back their launches for a long time. But nobody is ready to lower their prices yet,' the newspaper quoted an unnamed property consultant as saying.

    (1 US dollar = 1.38 Singapore dollars)

  2. #2
    mr funny is offline Any complaints please PM me
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    Default Re: Major Singapore property launches unlikely in next three months - report

    March 13, 2008

    No major property launches expected in the next 3 months

    Kuwaiti pullout from $818m deal, low top bid for Jurong West site unnerve market

    By Joyce Teo, Property Correspondent


    MAJOR residential property launches are unlikely for at least three months after the already nervous market was spooked by two sobering events this week, market analysts said.

    The first was the pullout of a Kuwaiti investor, Kuwait Finance House, from an option to buy $818 million worth of 97 units at Goodwood Residence.

    The second was when the top bid by a property developer for a Jurong West landed housing site came in at less than half what had been expected.

    Market sentiment was already jumpy given general market uncertainty, in the wake of the United States sub-prime crisis.

    Developers were already saying they are prepared to delay their launches. Property consultants now do not expect any major condominium launches in the next three months. Some developers could even postpone their launches indefinitely, they said.

    Still, prices are generally holding steady for now and smaller players will still launch small projects in the months ahead.

    Industry sources speculated that Kuwait Finance House had pulled out as it had bought the units at a very high price that could not be supported by the current market.

    As for the Jurong West site, sources said the low bid of $78 per sq ft of land area reflected rising building costs and current sentiment. If the Government awards the tender, sale prices of below $1 million per unit will fit in well with upgraders' expectations and needs, they say.

    An industry source said: 'The Kuwaiti pullout is bad news but it's not as if things have suddenly changed drastically.' The fundamentals in Singapore are intact but sentiment has deteriorated, he said.

    'There are people who have money to buy but they just want to wait and see.' With buyers and sellers largely waiting on the sidelines, there is little action.

    Developers prefer to err on the side of caution and even if they offer homes for sale, they are doing it quietly, sources said.

    Indeed, so far this year, the 405-unit Waterfront Waves in Bedok Reservoir has been the only new major condo launch. A few blocks have been launched and 110 units have been sold.

    Small, quiet releases include the 47-unit Cosmo in Guillemard Crescent and some projects in Telok Kurau. Despite the sluggish market, some of these small projects such as Cosmo and [email protected] in Owen Road have sold well.

    A consultant said: 'There are foreign funds and investors still in the market that are on the lookout for bulk condo purchases.'

    Among high-end properties, a fund recently agreed to buy - at a discount - the remaining units at Grange Infinite, sources said. The 68-unit freehold condo in Grange Road has more than 40 units left.

    There is no lack of high-end condo projects - with quite a few ready or nearly set for launch.

    These include Far East Organization's Silversea in Amber Road, UOL Group's Breeze by the East in Upper East Coast Road, and City Development's condo project in Thomson Road.

    But financially strong developers are likely to delay launches to the second half, said a consultant.

    While the bigger players may not act soon, Evan Lim & Co's EL Development is preparing to launch its 51-unit Parc Centennial in Kampong Java Road soon.

    'Not everyone can hold back their launches for a long time,' said another consultant. 'But nobody is ready to lower their prices yet.'

    He added: 'There's the possibility of prices falling but I haven't seen people panicking.'

    In the short term, prices are likely to remain flat.

    'It is good for the property market to have a sustainable and affordable price level for the mass market,' said a property developer. He added that demand as well as unprecedentedly high construction costs were problems.

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  3. #3
    Unregistered Guest

    Default Re: Major Singapore property launches unlikely in next three months - report

    Who do you think will blink first?

    The developers? Or the 80,000 immigrants who keep piling into Singapore every year?

    Anyway the longer they standoff the better.

    No buyer, no seller, no more new units in the market.

    I'm going to raise the rent for my tenant once the tenancy expires.

  4. #4
    Unregistered Guest

    Default Re: Major Singapore property launches unlikely in next three months - report

    Quote Originally Posted by Unregistered
    Who do you think will blink first?

    The developers? Or the 80,000 immigrants who keep piling into Singapore every year?

    Anyway the longer they standoff the better.

    No buyer, no seller, no more new units in the market.

    I'm going to raise the rent for my tenant once the tenancy expires.

    you are right.
    no buyer, no seller, cannot close deal, no launching....
    slowdown all residential development, since we are so shortage of construction, move all to build MRT, expressway, hospital, school, IR, sporthub, malls, Jurong lake.....expedite all these more important than residential/HDB for the time being, should get top priority.
    since gov made so much surplus last year, time to return to people by building all infrastructure fast, ease all the MRT jam, hospital crowd, CTE jam......

  5. #5
    Unregistered Guest

    Default Re: Major Singapore property launches unlikely in next three months - report

    This comes timely for those who want to sell their property. With limited supply due to stoppages of launches, these sellers can still command a higher premium for their properties. Within this time, prices will still be rather steady.

  6. #6
    Unregistered Guest

    Default Re: Major Singapore property launches unlikely in next three months - report

    Quote Originally Posted by Unregistered
    This comes timely for those who want to sell their property. With limited supply due to stoppages of launches, these sellers can still command a higher premium for their properties. Within this time, prices will still be rather steady.

    If can hold on, rent out for high rental yield for 2 years till IR ready, price will appreciate, refinance to super low loan rate, better than sell now, keep cash, value will depreciating over time. Time will tell, property is the best to hedge for inflation at this point of time.

  7. #7
    Unregistered Guest

    Default Re: Major Singapore property launches unlikely in next three months - report

    Time will tell:

    1) Property cycle goes up and down.
    2) Crises will occur that we cannot foresee.
    3) It's good to diversify one's investments.

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