Category Archives: Singapore Rental Market

Rental prices for HDB, private homes dip in July: SRX Property

Rental prices for Housing and Development Board (HDB) flats fell 0.1 per cent in July from the previous month, according to data released by SRX Property on Friday (Aug 14).

Rentals for 3-room, 4-room and 5-room flats saw rental prices decline by 0.4 per cent, 0.1 per cent and 0.2 per cent, respectively. Bucking the trend were executive flats, with a 0.5 per cent increase, SRX Property said.

Year-on-year, rental prices for HDB flats in July were down 0.7 per cent, and were down 6.1 per cent compared with its peak in August 2013.

Rental volume also declined, with an estimated 1,692 flats rented in July, down 5.4 per cent from the 1,788 units rented the previous month, SRX Property said.

PRIVATE HOMES’ RENTS DOWN

Rental prices in the non-landed private residential market fell 0.3 per cent in July compared with the previous month, according to SRX Property.

Units in the Core Central Region saw a 0.4 per cent decrease in rent, and those in the Rest of Central Region and Outside Central Region saw decreases of 0.2 per cent and 0.3 per cent, respectively.

On a year-on-year basis, rents in July were down 5.7 per cent, and down 12.5 per cent compared with its peak in January 2013.

Rental volume rose from June’s 3,866 units to an estimated 4,147 units in July, SRX Property said.

Source : Channel NewsAsia – 14 Aug 2015

Private property prices down for 7th straight quarter: URA

Prices of private residential properties in the second quarter fell by 0.9 per cent from the previous quarter – the seventh consecutive quarter of decline, the Urban Redevelopment Authority (URA) said on Friday (Jul 24).

The price decline was observed across all segments of the private residential property market, URA said. Prices of non-landed properties in the Core Central Region (CCR) and Rest of Central Region (RCR) declined by 0.6 per cent from the previous quarter, while prices in the Outside Central Region (OCR) fell by 1.1 per cent. Prices of landed properties declined by 1 per cent.

Rentals of private residential properties fell by 1.1 per cent from the previous quarter, compared with a 1.7 per cent decline in the January to March period.

LAUNCHES, SALES, RESALES UP

Developers launched 2,099 uncompleted private residential units excluding Executive Condominiums (ECs) in the second quarter, up from the 1,189 units launched in the previous quarter, URA said. A total of 2,116 private residential units (excluding ECs) were sold by developers during the quarter, compared with 1,311 units in the first quarter.

A total of 480 EC units were launched during the quarter, and 439 units sold over the same period, up from the 326 units sold in the previous quarter.

The number of resale transactions rose to 1,827, up from the 1,250 transactions in the first quarter. Resale transactions accounted for 44.5 per cent of all sale transactions during the quarter, compared with 47.1 per cent in the previous quarter.

There were 161 sub-sale transactions, up from the 94 transactions in the previous quarter. Sub-sales accounted for 3.9 per cent of all sale transactions, up from the 3.5 per cent recorded in the previous quarter.

MORE LAUNCHES IN THE PIPELINE

As at the end of the second quarter, there were 61,237 uncompleted private residential units (excluding ECs) in the pipeline, compared with 68,201 units in the previous quarter. Of this number, 24,435 units remained unsold. Adding the 14,701 upcoming EC units, there are a total of 75,938 units in the pipeline, according to URA.

Based on expected completion dates reported by developers, 13,191 units (including ECs) will be completed in the second half of 2015, URA said. Another 25,841 units (including ECs) are expected to be completed in 2016.

Source : Channel NewsAsia – 24 Jul 2015

Prices of office space up, retail space down in Q2: URA

Prices of office space rose 0.3 per cent in the second quarter compared to the previous quarter, while prices of retail space fell 0.5 per cent, the Urban Redevelopment Authority (URA) said on Friday (Jul 24).

Rentals of office space fell 2.6 per cent in the second quarter, compared with the 0.6 per cent increase in the first quarter. Rentals of retail space decreased by 0.5 per cent, compared with the 0.3 per cent decline in the January to March period.

As of end-June, there was a total supply of about 962,000 sqm gross floor area of office space from projects in the pipeline, and a supply of 774,000 sqm of retail space, URA said.

The amount of occupied office space increased by 38,000 sqm, compared to the 19,000 sqm increase in the previous quarter, while occupied retail space remained unchanged. The stock of office space increased by 8,000 sqm, while retail space increased by 25,000 sqm.

The islandwide vacancy rate of office space at the end of second quarter fell to 9.8 per cent, from 10.2 per cent at the end of the first quarter. Vacancy rate of retail space rose to 7.2 per cent, up from 6.8 per cent in the previous quarter, URA said.

Source : Channel NewsAsia – 24 Jul 2015

Industrial property prices, rents continue to fall: JTC

The prices and rentals of industrial space in Singapore have continued to soften, following an increase in supply of industrial land and space by the Government, according to JTC in its quarterly market report released on Thursday (Jul 23).

Overall, the prices of industrial properties fell 0.9 per cent year-on-year in the second quarter of 2015. The prices of multiple-user factory space saw a 2.3 per cent decrease in the same period, while single-user factory space prices remained flat. On a quarter-on-quarter basis, overall prices fell 0.7 per cent.

Meanwhile, overall rentals for industrial properties fell 2.7 per cent year-on-year in the second quarter, with rentals for multiple-user factory space seeing the biggest decrease of 3.1 per cent. However, rentals for single-user factory space bucked the trend, increasing 1.2 per cent year-on-year. On a quarter-on-quarter basis, overall rentals fell 0.7 per cent.

The occupancy rate for industrial space increased in the second quarter. Overall occupancy rates went up 0.3 percentage point year-on-year to 91 per cent. Warehouse occupancy rates saw the biggest increase of 3.1 percentage points year-on-year to 91.6 per cent. This was due to occupants moving into new warehouse developments completed in earlier periods, said JTC. However, despite the increase, the occupancy rate of the overall industrial space market still fell short of the peak of 93.5 per cent in 2012.

With the softening of prices and rentals, transaction volume also decreased by around 20 per cent year-on-year in the second quarter, said JTC.

For the second half of the year, about 1.6 million sqm of industrial space, including 290,000 sqm of multiple-user factory space, will be added, said JTC. An additional 2.8 million sqm of industrial space is expected to be added in 2016, higher than the average annual supply and demand of about 1.5 million sqm and 1.1 million sqm in the past three years. This is likely to exert further downward pressures on occupancy rates, said JTC.

“The Government will continue to monitor the industrial property market closely to ensure that the diverse needs of industrialists are met,” said JTC. “Appropriate measures will also be introduced where necessary to promote a stable and sustainable industrial property market.”

Source : Channel NewsAsia – 23 Jul 2015

Plaza Singapura to undergo upgrading

Plaza Singapura will undergo interior upgrading works in the third quarter of this year, mall owner CapitalLand Mall Trust (CMT) announced on Wednesday (Jul 22).

The rejuvenation works, set to complete by Q4 2016, will cost about S$38 million and will include the upgrading of floor finishes, corridor lighting, toilets, lift lobbies and nursing rooms. More nursing rooms will also be added on Level 2 as part of the revamp.

Previously, Plaza Singapura underwent a 21-month facelift which completed in 2012, to integrate the neighbouring The Atrium@Orchard with the mall.

CMT Management Limited (CMTML), the manager of CMT, also announced CMT’s H1 2015 financial results. In H1 2015, CMT’s gross revenue dipped 0.6 per cent to S$326.9 million compared to H1 2014′s S$329 million. CMTML attributed this to lower occupancy at Clarke Quay and JCube, and the ongoing refurbishment works at IMM Building and Bukit Panjang Plaza.

Clarke Quay is also undergoing a revamp, where 57,000 sq ft of space, formerly occupied by LifeBrandz, is being reconfigured to house new tenants. Nightclub Zouk is set to take up 31,000 sq ft of space and will open in June 2016.

CMT’s net property income also dipped in H1 2015, dropping 0.5 per cent from S$228.3 million in H1 2014 to S$227.2 million this year.

On a quarterly basis, CMT’s gross revenue dropped 2.9 per cent year-on-year to S$159.6 million in Q2 2015, and net property income dropped 4 per cent year-on-year to S$109.5 million in Q2 2015.

However, CMT’s distributable income was S$94 million in Q2 2015, 0.7 per cent higher than the S$93.4 million for Q2 2014. CMT’s distribution per unit (DPU) for Q2 2015 was 2.71 Singapore cents, a 0.7 per cent increase over Q2 2015′s 2.69 Singapore cents.

Based on CMT’s closing price of S$2.18 per unit on Jul 21, distribution yield is 4.99 per cent and unitholders can expect to receive their Q2 2015 DPUs on Aug 28.

On Jul 14, CMTML also said that it would buy Bedok Mall from sponsor CapitaLand in a deal that values the mall at S$780 million. The acquisition is targeted to be completed by Q4 2015.

RENTAL RATES UP, OCCUPANCY DOWN

Current rental rates for CMT properties mostly increased when compared to preceding rental rates, which are typically committed three years before. Clarke Quay experienced the highest increase of 23.8 per cent. Meanwhile, JCube saw a fall in rental rate, with a 13.5 per cent drop.

As of Jun 30, 2015, Tampines Mall, Junction 8, Plaza Singapura, Bugis Junction, Raffles City Singapore all experienced 100 per cent occupancy. JCube had the lowest occupancy of 82.3 per cent, followed by Clarke Quay with 85.2 per cent and IMM Building with 89 per cent. Overall portfolio occupancy was 96.4 per cent, down from 98.8 per cent at Dec 31, 2014, said CMTML.

CMT also registered a 3.4 per cent year-on-year increase in shopper traffic in H1 2015. Tenant sales went up by 2.9 per cent in the same period, said CMTML.

Source : Channel NewsAsia – 22 Jul 2015

Private homes rents dip, HDB rents up marginally in June: SRX Property

Rental prices for non-landed private residences fell by 0.5 per cent in June compared to May, according to flash estimates released by SRX Property on Wednesday (Jul 15).

Non-landed private property units in the Core Central Region and Outside Central Region saw rental prices fall by 0.8 per cent and 0.7 per cent, respectively, while units in the Rest of Central Region saw no change.

June’s rents were down 6.5 per cent year-on-year, and down 12.4 per cent from its peak in January 2013, SRX Property said.

An estimated 3,777 units were rented in June, a 1 per cent increase from the 3,739 units rented in the previous month.

Year-on-year, rental volume was 15.4 per cent higher than the 3,273 units rented in June 2014.

HDB RENTS UP SLIGHTLY

HDB rental prices rose 0.1 per cent in June compared to the previous month. HDB 3- and 5-Room flats posted a 0.3 and 1.2 per cent increase in rents, respectively, said SRX Property.

In contrast, rental prices of 4-Room and Executive flats both fell by 0.5 per cent month-on-month.

Year-on-year, rents in June were down 1.8 per cent, and 6.1 per cent compared with its peak in August 2013. Rents in mature estates remain unchanged, while non-mature estates posted a 0.1 per cent increase.

There were 1,902 HDB flats rented in June, almost unchanged from the 1,900 units rented in the previous month.

Source : Channel NewsAsia – 15 Jul 2015

REDAS warns of record-high vacancies in private home market

The Republic’s real estate developers association (REDAS) has warned of record-high vacancies in the private residential property market, as supply continues to build while tighter mortgage curbs cools demand.

In his welcome speech at a property seminar organised by the association on Tuesday (Jul 14), REDAS’ president Augustine Tan cited analysts’ estimates that more than 89,000 new private homes will be completed from 2015 to 2019, and that the number excludes supply from the government land sites sold in the first half of the year.

“This looming supply is likely to bring home vacancy rate to a new record high, causing further slip in home rentals and downward spiralling of property prices,” Mr Tan said.

Singapore’s private home prices have fallen for a sixth consecutive quarter, according to official figures. The next set of quarterly numbers will be released later this month, but flash estimates are already predicting a seventh straight quarter of decline. Developers are also selling fewer units – down from 14,948 units in 2013 to just 7,316 units last year.

On the corporate front, Mr Tan said that given the uncertain macroeconomic environment in Europe, tight labour market and modest GDP growth in Singapore, companies’ earnings are expected to soften in the near term.

“According to latest figures by property consultants, the proportion of new office leases in Singapore dropped by half as companies cut costs,” he said.

“Amid this, many hope that the Government’s macro-prudential policies to rein in asset price inflation will be calibrated over time.”

The Far East Organisation’s property sales executive director also called on the industry to “retune and reconfigure” its businesses as the real estate market enters a “different period”.

Source : Channel NewsAsia – 14 Jul 2015

Orchard Road retail rents scrape four-year low

When Singaporean Hidayu Mustaafa craves for retail therapy, she walks to a mall five minutes from her home in the eastern suburb of Tampines instead of bussing down to Orchard Road – the island-state’s shopping Mecca.

That is bad news for Orchard Road’s glitzy malls, which showcase brands such as Inditex’s Zara and H&M, as well as luxury names like Chanel and Prada. Increased competition from suburban malls and online retailers, combined with falling tourist numbers from China and Indonesia, have hurt spending and pushed retail rents to their lowest since 2011.

Average monthly gross rents of prime retail space on Orchard Road slipped 1 per cent in the second quarter from the previous three months to S$37.79 per square foot, according to Cushman and Wakefield.

“It is more imperative than ever that shopping malls need to innovate and refresh shopping experiences to stay ahead of the competition,” said Ms Christine Li, the real estate consultant’s research head in Singapore, adding that less established malls with little differentiation will underperform.

At least one mall has recently decided to revive its offerings. Wheelock Properties’ Scotts Square, where occupancy rates have been on a downtrend, said it would bring in names like fashion label Alexander McQueen and Belgian fine leather goods maker Delvaux.

Cushman and Wakefield’s Li expects Orchard retail rentals to fall 2.1 per cent by end-2015 from the end of June, while suburban mall rentals could prove more resilient and remain flat. “It’s a very challenging retail environment still for Orchard Road, but the bright spot is that there is no (new) supply in market (until 2018),” she said.

Source : Channel NewsAsia – 13 Jul 2015