Category Archives: Property Market Updates

Singapore the world’s 5th most important city for super-rich

Singapore has been ranked fifth amongst the most important global and regional cities for consumers with a net worth of more than US$100 million (S$124.49 million).

This according to the Wealth Report 2012, a joint study by Knight Frank and Citibank, which polled high-net-worth individuals (HNWIs) from around the world to rank the cities and identify the areas with the fastest growth.

Respondents were also asked to rank cities based on quality of life, economic activity, political power as well as knowledge and influence.

London clinched top spot as the most important global city, followed by New York, Hong Kong, Paris and Singapore.

Over a 10-year period, respondents ranked London, New York, Beijing, Shanghai and Singapore as the top five cities.

However, HNWIs placed Beijing at the top of the ‘fastest growing in importance’ category, followed by Shanghai, London, Singapore and Hong Kong.
Source: PropertyGuru, 14 Aug 2012

The Marq is 6th most expensive globally

By Zeinab Yusuf Saiwalla

Singapore – The Republic’s most expensive residential real estate, The Marq on Paterson Hill, was ranked sixth in a global comparison of record transactions in the top 10 “world class” cities, according to a recent study by international real estate adviser Savills.

No previous-year data was available as this was the first time Singapore was included in the rankings.

With a hefty price tag of £3,400 (S$6,606) per square foot, the luxury residence designed by French label Hermès hit the headlines when the transaction was made in 2011.

All the spacious 6,200 sq ft apartments at the Signature Tower at The Marq, developed by SC Global Developments, feature a carefully curated combination of Hermès furniture, furnishing fabrics, wallpapers, carpets, tableware, along with made-to-order leather upholstered items and a choice of artworks.

It is no wonder then, that it made it to the league of the most expensive homes in top world cities.

The league table shows the top three “world class” cities closely grouped with records set at over £8,000 psf.

London’s Kensington Garden Palace continued to hold top spot for the fourth year, after setting a record-breaking price of £8,500 psf for a home in 2008.

Following closely behind was the transaction for a house in Hong Kong’s Deep Water Bay Road, which sold at £8,400 psf and an apartment in New York’s 15 Central Park West which fetched a price of £8,300 psf. Both were transacted in 2011.

“Seven out of 10 of the record transactions were undertaken within the last two years and six out of the 10 properties were new builds. The fact that these prices have been achieved during the global residential market’s most turbulent times illustrates the autonomy with which the billionaire market operates, fuelling the very top of the market,” said Yolande Barnes, director of Savills global research.
Source: Business Times, 13 Aug 2012

New homes put pressure on high-end rentals

LANDLORDS of newly completed upmarket homes are being warned that they may have to be prepared to accept lower rents.
More than 4,000 private homes are set to be completed in the second half of the year – with many of them in the city centre and city fringe regions – possibly putting further pressure on rents of posh apartments that have already been softening.
Many of these high-end projects were rolled out in a slew of launches between 2007 and 2009 after the collective sale fever of the mid-2000s.
That was a vastly different landscape from the bumper supply of suburban launches from government land sale sites in the past two years.
Rents of non-landed city centre homes dipped 0.1 per cent in the second quarter – the only private non-landed rental segment to slide – according to data from the Urban Redevelopment Authority (URA).
The average monthly rent, tracked by analysts, dipped to $5.03 per sq ft per month in the second quarter, sliding 3 per cent compared with the three months before. On a year-on-year basis, prime rents fell by 8 per cent.
Experts say that the upcoming completions of upscale units will weigh further on the market.
But as long as Singapore remains a cost-competitive choice for corporates, newly completed projects should keep finding tenants, though landlords might have to manage rental expectations.
Vacancy rates for city centre homes have been trending up – to 8.2 per cent in the second quarter, from 7.8 per cent in the first.
This is in contrast to islandwide vacancy rates falling from 6 per cent to 5.9 per cent in the same period.
Leasing volume of high-end homes to ease in the third quarter as rental budgets continue to shrink. This may see many mid-level expats moving to the suburban areas.
However, the supply of high- end apartments is gradually tapering off as more suburban homes are completed in the next few years instead, experts note.
Almost 200 of the 4,285 homes expected to be completed this year are still looking for buyers. This adds to the 1,233 units in completed projects still unsold as at the second quarter, URA’s data showed.
Source: The Straits Times – 11 August 2012

Property market sentiment improves in Q2

PROPERTY market sentiment improved slightly in the second quarter, but the mood was still dampened by the uncertainty over the euro zone debt crisis.
The Redas-NUS real estate composite sentiment index for April to June inched up to 4.7, from 4.6 in the first quarter.
It had declined for four straight quarters last year to plumb a nadir of 3.3 in the fourth quarter of last year.
A score below five indicates deteriorating market conditions while a score above five reflects improving market conditions.
The hotel sector continues to garner forward momentum with a net balance of 33 per cent of industry players surveyed saying they were optimistic about its current state, Redas and the National University of Singapore (NUS) said in a joint statement yesterday.
In contrast, the office sector is struggling owing to uncertainty over the global economic outlook, with a net balance of 31 per cent of respondents saying they were pessimistic about how it was currently faring.
A net balance figure is the difference between the proportion of respondents who were optimistic and the proportion who were pessimistic.
Fewer private residential units are expected to come onto the market in the coming months. Of the developers surveyed, 46 per cent expected more units to be launched soon, a sharp decline from 77 per cent in the first quarter of the year.
More of them than before also think prices will hold at current levels over the next half year.
“The uncertainty arising from the European sovereign debt crisis instils some degree of risk aversion in developers and buyers,” said NUS real estate associate professor Sing Tien Foo.
“Some developers are adopting the ‘wait and see’ approach by moderating down new launches to the market.”
The composite index, developed by the Real Estate Developers’ Association of Singapore (Redas) and NUS’ Department of Real Estate, combines two indices – the current sentiment index and the future sentiment index.
The current sentiment index, in which real estate industry players rate market conditions now compared with six months ago, stood at 4.9 for the second quarter, up from 4.8 in the first.
The future sentiment index, which indicates industry players’ market outlook over the next six months, also moved up marginally from 4.4 in the first quarter to 4.5 in the second quarter.
Source: The Straits Times – 10 August 2012