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Thread: Private home launches in Dec 2008 at record low

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    Default Private home launches in Dec 2008 at record low

    http://www.straitstimes.com/Breaking...ry_326494.html

    Jan 15, 2009

    Private home sales dip

    By Joyce Teo


    ONLY 131 new private homes were sold last month, down from 193 in November, but up from 118 in October, according to data released by the Urban Redevelopment Authority on Thursday.

    Developers launched just 157 units last month, down from 382 in November and from 174 in October when the property sales sank to lows last seen in 2003 Sars period.

    A total of 436 units were sold in the fourth quarter of last year, just a tad above the 427 units sold in the first quarter of 2003 when the Sars outbreak crippled economic activity.

    The top-seller in December was the 104-unit Newton Edge in Makeway Avenue. Developer Macly Capital sold 43 units in December at a median price of $1,200 per square foot.

    The 88-unit development Nova 88 in Balestier did relatively well, with 10 units sold at a median price of $988 psf.

    Most of the other projects managed to sell less than three units each.

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    Default Private home sales hit new low

    http://www.straitstimes.com/Prime%2B...ry_326657.html

    January 16, 2009 Friday

    Private home sales hit new low

    December sales of 131 new units cap the worst year since 1990

    By Joyce Teo, Property Correspondent


    JUST 131 new private homes were sold last month, down from 193 in November, capping the worst year for new sales in Singapore since 1990.

    There were only 4,287 homes sold last year - a striking plunge from the boom year of 2007 when a record 14,811 private home units changed hands.

    At least it beat the low in 1990, when just 2,526 new private units were sold.

    Developers have caught the miserable mood of the market and launched only 157 units of new private homes in December, according to Urban Redevelopment Authority (URA) data yesterday.

    That was even lower than the 174 units in October, when buyers and sellers were in shock from the deepening global crisis.

    Total launches last year were at a four-year low of 6,114 units, down 56 per cent from a record 14,016 in 2007, according to Colliers International.

    Resale deals also fell, from 20,985 units in 2007 to between 7,400 and 7,600 homes. Sub-sale deals fell from 4,863 units in 2007 to between 1,600 and 1,650 units last year, according to CBRE Research estimates.

    Yet despite the dreadful sales numbers, property prices held their own.

    'Developers generally withhold project launches to monitor the market situation, instead of resorting to drastic measures to reduce prices,' said Knight Frank's director of research and consultancy, Mr Nicholas Mak.

    But with economic conditions subdued, home-seekers are increasingly realistic, looking now at functionality before frills, he said.

    The URA price index, on the rise since the second quarter of 2004, reversed direction only from the third quarter last year when it declined 2.4 per cent.

    Jones Lang LaSalle's head of research for South-east Asia, Dr Chua Yang Liang, expects it to contract further by another 5 to 7 per cent this quarter on the back of weak take-up, after an estimated 5.7 per cent fall in the fourth quarter.

    Buying interest should pick up when prices fall further, experts said.

    'Should more projects be attractively re-priced in 2009, the number of units launched and take-up can expect to sustain or marginally improve, as there is some latent demand from bargain hunters,' said Mr Mak.

    CBRE Research executive director Li Hiaw Ho added: 'The continued moderation of prices should kick-start some level of activity to the market.' Sales of new homes this year are likely to improve to around 5,000 to 6,000 units, he said.

    But it will take some time to happen. There may be even fewer launches this month as developers are expected to continue to hold back in anticipation of goodies in next Thursday's Budget, said Colliers International's director for research and advisory, Ms Tay Huey Ying.

    Many prospective buyers are preparing for Chinese New Year so sales this month may hit a new low, said Ms Tay.

    Indeed, the entire first quarter or even the first half will likely witness slow sales due to the economy and banks tightening credit, property consultants said.

    Last month's top-seller was the 104-unit Newton Edge in Makeway Avenue, which sold 43 units at a median price of $1,200 per square foot.

    Mr Li attributed the favourable interest to the affordable range of $500,000 to $900,000 for a majority of the units, which are 440 sq ft to 915 sq ft in size.

    'The units are a bit squeezy but you are paying less than a million for a property in Newton,' said an industry player.

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    http://www.businesstimes.com.sg/sub/...14454,00.html?

    Published January 16, 2009

    Developer sales plumb new depths

    Home sales hit record lows in 2008 but new launches are on the cards

    By ARTHUR SIM


    (SINGAPORE) The year gone by was one to forget for developers as they managed to sell just 4,351 homes in 2008, representing the lowest figure in at least 10 years - diving beyond the previous troughs of 5,156 and 5,520 units in 2003 and 1998 respectively.

    The sales in 2008 were also significantly lower than the annual 10-year average (1998-2007) of 8,200 units.

    Developer sales fizzled out in the last month of 2008, registering just 131 transactions - less than five a day.

    The number of projects with licences for sale in December has, however, risen to 8,350 units, up from 6,512 units in the previous month.

    Only 157 new homes were launched in December, the lowest figure since developer data was made available in mid-2007. CBRE Research executive director Li Hiaw Ho said: 'This shows that developers kept their launch activity to a minimum as they monitored the market.'

    But not all developers held back.

    Macly Capital sold 43 units of the 104-unit Newton Edge on Makeway Avenue at the median price of $1,200 psf. Mr Li said the strength of the project lay in the affordable quantum of $500,000 to $900,000 for a majority of the units due to their small sizes ranging from 440-915 sq ft.

    Pricing is likely to have been a factor also. An earlier report by UBS noted that Newton Edge was priced lower than VIVA at Suffolk Walk nearby, where 15 units were sold in Q3 2008 for around $1,550 psf.

    Hayden Properties' The Ritz-Carlton Residences in Cairnhill also chalked up healthy sales at what appeared to be discounted prices. Eight units were sold at a median price of $3,086 psf.

    Hayden Properties director (sales and marketing) David Neubronner revealed that the buyers comprise project shareholders and directors, with just one third-party transaction.

    'The purchase prices by the related parties are preferential rates, and the purchase price paid by the third party reflects current market pricing,' he said.

    Mr Neubronner added that the unit purchased by the third party is located on a lower floor and was priced at $3,700 psf, which is only an 8 per cent decrease from the initial launch price of $4,000 psf.

    Colliers International director for research and advisory Tay Huey Ying noted that mid-tier projects in the Rest of Central Region (RCR) dominated launches in December, accounting for 72 per cent of the units launched during the month. 'This, following the domination of high-end projects in recent months, could be an indication of the weakening holding power among small and mid- tier developers,' she added.

    RCR projects that sold in the month include 10 units at Nova 88 at a median price of $988 psf and nine units of The Aristo @ Amber at a median price of $1,002 psf.

    'This decline in demand has led to the contraction in the islandwide URA property price index (PPI) of some 5.6 per cent as the market attempts to generate more activity through price reductions,' said Jones Lang LaSalle local director and head of research (South East Asia) Chua Yang Liang. 'Historically, take-up has been leading the PPI. On the back of this contraction in take-up in Q4'08, we can expect the PPI to contract further, possibly by another 5-7 per cent in Q1'09,' he said.

    Nevertheless, some developers have been continuing to prepare developments for launch.

    UOL is expected to launch a 646-unit development at Simei Street 4 billed as a luxury condominium for upgraders in the first half of 2009.

    Frasers Centrepoint is also preparing to launch a development on Boon Lay Way. A spokesman said: 'Caspian, our 712-unit development on Boon Lay Way, is launch-ready. At this point, we are still finalising several details, with regard to the actual launch period, pricing, etc, and will announce them once we are ready.'

    It is also understood that Far East Organization is preparing to launch a development in Choa Chu Kang this year.

    Notably, all developments are in the Outside Central Region where property prices are not expected to fall as significantly as in the mid-tier and high-end segments.

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    http://www.channelnewsasia.com/stori...402642/1/.html

    Private home launches in Dec 2008 at record low

    By Wong Siew Ying, Channel NewsAsia | Posted: 15 January 2009 1825 hrs


    SINGAPORE: Islandwide launches of new private homes in December 2008 slumped to a record low since the Urban Redevelopment Authority (URA) started releasing the monthly figures in June 2007.

    Developers placed just 157 units for sale last month, down by 59 per cent from November.

    Analysts said there has been softening demand for homes. But the low launch volume could also be due to seasonal adjustment and developers holding out for the government's Budget announcement next Thursday.

    Analysts, however, said that not all developers can afford to delay projects.

    Donald Han, managing director, Cushman & Wakefield, said: "Smaller developers may decide to sell in order to move assets and move their inventory. So, price cutting may happen at a strategic level for smaller developments... and also the secondary markets where there will be fiercer price cuts."

    Overall, market watchers said they expect property prices to erode by another 5 to 7 per cent in the first quarter this year.

    They said prices in the luxury home segment could see a 25 per cent drop, while suburban and mid-tier properties may be 10 to 20 per cent cheaper over the next 12 months.

    December sales volume also fell, dropping 32 per cent on-month to 131 units, as home buyers continued to be cautious.

    Analysts said that even the fairly resilient mass market segment is starting to feel the strain of the economic downturn. However, data also showed that home hunters are still in the market for good buys.

    Dr Chua Yang Liang, head of research & consultancy at Jones Lang LaSalle, said: "The Ritz Carlton Residences, back in December 2007, some 3 transactions were reported at a median price of some S$5,000 per square foot. Now, some 8 transactions were reported by the developer at a median price of some S$3,000 per square foot."

    Projects in prime areas like Newton Edge also saw good take-up, with 40 units sold in December at an average price of S$1,200 per square foot. Analysts said this translates to less than S$1 million for a unit, which is the threshold for most buyers in the current market.

    For the whole of 2008, developers sold an estimated total of 4,287 units, 71 per cent shy of the 14,811 new units sold in 2007, bringing developers' sales volume to a nine-year low.

    Industry players expect the property market to remain quiet over the next six months until there is a clearer indication of where the economy is heading.

    They hope the Budget statement, to be announced next Thursday, will provide measures to support companies and save jobs, which will have an impact on the property market.

    The items on their wish-list include vouchers to boost domestic spending and tax cuts to lower business costs.


    - CNA/ir

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    http://www.todayonline.com/articles/297138.asp

    Friday, January 16, 2009

    Private home launches at record low

    Kelvin Chow

    [email protected]


    THE grey clouds hovering over the private property market here have gotten even darker.

    Islandwide launches of new private homes last month slumped to a record low since the Urban Redevelopment Authority (URA) started releasing the monthly data in June 2007. Developers placed just 157 units for sale last month, down nearly60 per cent from November. And out of these, they managed to sell 131 units.

    “Looking at the numbers for the period from October to December, they have been quite consistently low,” said Mr Donald Han, managing director of Cushman and Wakefield. “It is reflective of a subdued market suffering from the cold winds of the financial market.”

    For the whole of last year, 4,370 private homes were sold, less than a third of 2007’s 14,811 units.

    Mr Colin Tan, research director from Chesterton Suntec International, said: “It tells you one thing, the market is unhealthy. While it is easy to blame the festive period for a dip in sales, it is so low that there is nothing normal about it. Sales of new units have been so low for the past three months that you cannot even excuse it as a blip.”

    Based on the latest URA data, it is evident that some developers have been reducing prices to lure buyers.

    A total of eight units of the luxurious Ritz Carlton Residences, located at Cairnhill Road, were sold at a median price of $3,086 per square foot. This represents a 40-per-cent discount from the median selling price of three units at $5,088 psf in Dec 2007.

    Mr Tan said: “Prices will be coming down, but how it unfolds could be decided by the banks.” He warned that if unemployment rises, more homes might be seized by banks to be sold off to recoup losses, putting more downward pressure on prices.

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