Category Archives: Property News

URA to launch the tender for site at Yishun Avenue 9

The Urban Redevelopment Authority (URA) announced today that it has accepted an application from a developer to put up the industrial site at Yishun Avenue 9 (Parcel 6) for sale via public tender.

The land parcel was made available for sale through the Reserve List system on 7 December 2011. URA has received an application from a developer for the site to be put up for public tender. The developer has committed to bid at a price of not less than $14,200,000 in the tender for the land parcel. As the minimum price committed by the developer is acceptable to the Government, the site will be released for sale via public tender.

In accordance with the procedures of the Reserve List system, URA is making public the minimum price committed for the site. However, the identity of the applicant will not be released. URA will launch the public tender for the site in about two weeks. The launch date will be announced later. The tender period for the land parcel will be about four weeks.

The land parcel has a site area of about 1.2 ha and a maximum permissible gross plot ratio of 2.5. Zoned for Business 1 development, the site will have a lease period of 30 years.

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