In what appears to be a subtle warning to the real estate industry to keep the property market in check, the government has withdrawn the concession to defer stamp duty - a move that coincided with last night’s annual dinner of the Real Estate Developers Association of Singapore (Redas).
A statement released by the Inland Revenue Authority of Singapore (IRAS) yesterday said: ‘The government has decided to withdraw the concession with immediate effect (starting today) as the economic conditions and the property market have improved.‘
The statement was timed to be made public only at 12.05 am today, but news of the taxman’s action surfaced early at last night’s Redas dinner - taking most by surprise.
However, developers BT spoke to said they are not too worried that the change will dampen demand for high-end property. Redas president Kwee Liong Keng said the withdrawal of the concession might not have an effect even on buyers looking to ‘flip’ properties quickly, as previously, they had to pay the stamp duty when selling their properties anyway.
Developers also maintained that speculation is not rampant. ‘If you look at top-end products, I don’t think
Singapore has seen the kind of interest from overseas before. So you can’t use the yardstick from the past to measure,’ said Redas honorary treasurer Eddie Yong.
Minister of State for National Development Grace Fu, who was the guest of honour at the Redas dinner, was more prepared with a comment - and she similarly maintained the government’s official stance that the property market is not seeing a ‘bubble’.
‘As we have done in the past, we will monitor the trends of property prices and rentals quite closely,’ Ms Fu said. ‘So far, the growth is supported by economic growth - it is quite a healthy growth.’ She was unable to comment on the withdrawal of the concession or the reasons behind it.
The concession to defer stamp duty payment was introduced in 1998 to cushion the impact of an economic slowdown. With its withdrawal, buyers of new properties will have to pay stamp duty within 14 days of making a purchase. Previously, they could defer payment until a project received its Temporary Occupation Permit or TOP.
Interestingly, the withdrawal of the concession comes at the time when the most sought-after residential property of the moment, Marina Bay Residences, is being sold, and with at least three more city centre properties about to be launched.
Knight Frank’s director of research and consultancy Nicholas Mak said the withdrawal of stamp duty concession does not necessarily bode ill for the property market. ‘One view is that IRAS does simply feel that with the property market looking up, there is no longer a need for the concession.’
Mr Mak did, however, say that if one ‘read between the lines’, it could be seen as the government, ‘taking a small step towards discouraging property speculation’. However, it is just ‘baby steps’.
Savills Singapore director of marketing and business development Ku Swee Yong agreed, and said that if the government really wanted to curb property prices, it could increase Government Land Sales (GLS) or capital gains tax.
Developers are unlikely to be in favour of increased GLS. At the Redas dinner, Mr Kwee urged the authorities to continue using the Reserve List in its land sales programme to make sure the demand-supply balance is maintained.
He said the Reserve List is one of the key mechanisms that has helped stabilise the Singapore real estate market. Under the Reserve List system, a site is put on the market only after a developer commits what the authorities deem is an acceptable bid for it.
‘With developments at Sentosa Cove and Marina Bay, redevelopments at Orchard Road and Bras Basah Road and the launch of the two large integrated resorts . . . the real estate market is undergoing a significant transformation that will see major adjustments in the supply and demand equation,’ said Mr Kwee.
‘We need to ensure that the supply of real estate over the next few years will not run ahead of demand.’
Separately, the Building and Construction Authority (BCA) yesterday said it will launch three initiatives worth a total of $70 million to bring about more energy-saving buildings.
For private developers, BCA will dangle a carrot by offering a $20 million incentive scheme for projects that meet certain criteria. And a $50 million fund has been set up to intensify R&D efforts in green building technologies and energy efficiency.
Moving with the market
1996: Govt announced measures to curb property speculation, including: Extending stamp duty to buyers of all sales and sub-sales of uncompleted properties. New stamp duty on those who sell properties within 3 years. Tax on gains from properties sold within 3 years of purchase.
1997: Following Asian financial crisis, stamp duty for sellers was suspended.
1998: Stamp duty deferred for buyer of uncompleted properties until TOP or subsequent sale to help improve cash flow of property purchasers.
Dec 15 2006: IRAS withdraws this concession. All property buyers to pay stamp duty (at up to 3% for properties worth over $360,000) within 14 days of the date of acceptance of an Option. Sales before today’s date are not affected by new rule. As transitional measure, buyers who accept an Option or sign S&P agreement between today and the end of the year will have until March 14 to pay the stamp duty.
Source: The Business Times, 15 December 2006
Saturday, December 16, 2006
Friday, December 1, 2006
IRAS scraps concession to defer stamp duty
IN WHAT appears to be a subtle warning to the real estate industry to keep the property market in check, the government has withdrawn the concession to defer stamp duty - a move that coincided with last night’s annual dinner of the Real Estate Developers Association of Singapore (Redas).
A statement released by the Inland Revenue Authority of Singapore (IRAS) yesterday said: ‘The government has decided to withdraw the concession with immediate effect (starting today) as the economic conditions and the property market have improved.’
The statement was timed to be made public only at 12.05 am today, but news of the taxman’s action surfaced early at last night’s Redas dinner - taking most by surprise.
However, developers BT spoke to said they are not too worried that the change will dampen demand for high-end property. Redas president Kwee Liong Keng said the withdrawal of the concession might not have an effect even on buyers looking to ‘flip’ properties quickly, as previously, they had to pay the stamp duty when selling their properties anyway.
Developers also maintained that speculation is not rampant. ‘If you look at top-end products, I don’t think Singapore has seen the kind of interest from overseas before. So you can’t use the yardstick from the past to measure,’ said Redas honorary treasurer Eddie Yong.
Minister of State for National Development Grace Fu, who was the guest of honour at the Redas dinner, was more prepared with a comment - and she similarly maintained the government’s official stance that the property market is not seeing a ‘bubble’.
‘As we have done in the past, we will monitor the trends of property prices and rentals quite closely,’ Ms Fu said. ‘So far, the growth is supported by economic growth - it is quite a healthy growth.’ She was unable to comment on the withdrawal of the concession or the reasons behind it.
The concession to defer stamp duty payment was introduced in 1998 to cushion the impact of an economic slowdown. With its withdrawal, buyers of new properties will have to pay stamp duty within 14 days of making a purchase. Previously, they could defer payment until a project received its Temporary Occupation Permit or TOP.
Interestingly, the withdrawal of the concession comes at the time when the most sought-after residential property of the moment, Marina Bay Residences, is being sold, and with at least three more city centre properties about to be launched.
Knight Frank’s director of research and consultancy Nicholas Mak said the withdrawal of stamp duty concession does not necessarily bode ill for the property market. ‘One view is that IRAS does simply feel that with the property market looking up, there is no longer a need for the concession.’
Mr Mak did, however, say that if one ‘read between the lines’, it could be seen as the government, ‘taking a small step towards discouraging property speculation’. However, it is just ‘baby steps’.
Savills Singapore director of marketing and business development Ku Swee Yong agreed, and said that if the government really wanted to curb property prices, it could increase Government Land Sales (GLS) or capital gains tax.
Developers are unlikely to be in favour of increased GLS. At the Redas dinner, Mr Kwee urged the authorities to continue using the Reserve List in its land sales programme to make sure the demand-supply balance is maintained.
He said the Reserve List is one of the key mechanisms that has helped stabilise the Singapore real estate market. Under the Reserve List system, a site is put on the market only after a developer commits what the authorities deem is an acceptable bid for it.
‘With developments at Sentosa Cove and Marina Bay, redevelopments at Orchard Road and Bras Basah Road and the launch of the two large integrated resorts . . . the real estate market is undergoing a significant transformation that will see major adjustments in the supply and demand equation,’ said Mr Kwee.
‘We need to ensure that the supply of real estate over the next few years will not run ahead of demand.’
Separately, the Building and Construction Authority (BCA) yesterday said it will launch three initiatives worth a total of $70 million to bring about more energy-saving buildings.
For private developers, BCA will dangle a carrot by offering a $20 million incentive scheme for projects that meet certain criteria. And a $50 million fund has been set up to intensify R&D efforts in green building technologies and energy efficiency.
Moving with the market
1996: Govt announced measures to curb property speculation, including:
Extending stamp duty to buyers of all sales and sub-sales of uncompleted properties.
New stamp duty on those who sell properties within 3 years.
Tax on gains from properties sold within 3 years of purchase.
1997: Following Asian financial crisis, stamp duty for sellers was suspended.
1998: Stamp duty deferred for buyer of uncompleted properties until TOP or subsequent sale to help improve cash flow of property purchasers.
Dec 15 2006: IRAS withdraws this concession. All property buyers to pay stamp duty (at up to 3% for properties worth over $360,000) within 14 days of the date of acceptance of an Option. Sales before today’s date are not affected by new rule. As transitional measure, buyers who accept an Option or sign S&P agreement between today and the end of the year will have until March 14 to pay the stamp duty
A statement released by the Inland Revenue Authority of Singapore (IRAS) yesterday said: ‘The government has decided to withdraw the concession with immediate effect (starting today) as the economic conditions and the property market have improved.’
The statement was timed to be made public only at 12.05 am today, but news of the taxman’s action surfaced early at last night’s Redas dinner - taking most by surprise.
However, developers BT spoke to said they are not too worried that the change will dampen demand for high-end property. Redas president Kwee Liong Keng said the withdrawal of the concession might not have an effect even on buyers looking to ‘flip’ properties quickly, as previously, they had to pay the stamp duty when selling their properties anyway.
Developers also maintained that speculation is not rampant. ‘If you look at top-end products, I don’t think Singapore has seen the kind of interest from overseas before. So you can’t use the yardstick from the past to measure,’ said Redas honorary treasurer Eddie Yong.
Minister of State for National Development Grace Fu, who was the guest of honour at the Redas dinner, was more prepared with a comment - and she similarly maintained the government’s official stance that the property market is not seeing a ‘bubble’.
‘As we have done in the past, we will monitor the trends of property prices and rentals quite closely,’ Ms Fu said. ‘So far, the growth is supported by economic growth - it is quite a healthy growth.’ She was unable to comment on the withdrawal of the concession or the reasons behind it.
The concession to defer stamp duty payment was introduced in 1998 to cushion the impact of an economic slowdown. With its withdrawal, buyers of new properties will have to pay stamp duty within 14 days of making a purchase. Previously, they could defer payment until a project received its Temporary Occupation Permit or TOP.
Interestingly, the withdrawal of the concession comes at the time when the most sought-after residential property of the moment, Marina Bay Residences, is being sold, and with at least three more city centre properties about to be launched.
Knight Frank’s director of research and consultancy Nicholas Mak said the withdrawal of stamp duty concession does not necessarily bode ill for the property market. ‘One view is that IRAS does simply feel that with the property market looking up, there is no longer a need for the concession.’
Mr Mak did, however, say that if one ‘read between the lines’, it could be seen as the government, ‘taking a small step towards discouraging property speculation’. However, it is just ‘baby steps’.
Savills Singapore director of marketing and business development Ku Swee Yong agreed, and said that if the government really wanted to curb property prices, it could increase Government Land Sales (GLS) or capital gains tax.
Developers are unlikely to be in favour of increased GLS. At the Redas dinner, Mr Kwee urged the authorities to continue using the Reserve List in its land sales programme to make sure the demand-supply balance is maintained.
He said the Reserve List is one of the key mechanisms that has helped stabilise the Singapore real estate market. Under the Reserve List system, a site is put on the market only after a developer commits what the authorities deem is an acceptable bid for it.
‘With developments at Sentosa Cove and Marina Bay, redevelopments at Orchard Road and Bras Basah Road and the launch of the two large integrated resorts . . . the real estate market is undergoing a significant transformation that will see major adjustments in the supply and demand equation,’ said Mr Kwee.
‘We need to ensure that the supply of real estate over the next few years will not run ahead of demand.’
Separately, the Building and Construction Authority (BCA) yesterday said it will launch three initiatives worth a total of $70 million to bring about more energy-saving buildings.
For private developers, BCA will dangle a carrot by offering a $20 million incentive scheme for projects that meet certain criteria. And a $50 million fund has been set up to intensify R&D efforts in green building technologies and energy efficiency.
Moving with the market
1996: Govt announced measures to curb property speculation, including:
Extending stamp duty to buyers of all sales and sub-sales of uncompleted properties.
New stamp duty on those who sell properties within 3 years.
Tax on gains from properties sold within 3 years of purchase.
1997: Following Asian financial crisis, stamp duty for sellers was suspended.
1998: Stamp duty deferred for buyer of uncompleted properties until TOP or subsequent sale to help improve cash flow of property purchasers.
Dec 15 2006: IRAS withdraws this concession. All property buyers to pay stamp duty (at up to 3% for properties worth over $360,000) within 14 days of the date of acceptance of an Option. Sales before today’s date are not affected by new rule. As transitional measure, buyers who accept an Option or sign S&P agreement between today and the end of the year will have until March 14 to pay the stamp duty
Saturday, September 30, 2006
New high-end housing project for Jomtien Beach
New high-end housing project for Jomtien Beach
The Nation:20 September 2006
By: Somluck Srimalee
Property developer AEH Co Ltd launched a Bt1.4-billion detached-housing project yesterday called Baan Talay Pattaya, hoping to take advantage of the eastern property boom driven by the opening of Suvarnabhumi Airport.
AEH vice president Aroon Eamsureya said his company would use an 8.4-hectare block of land at Jomtien Beach it bought two years ago for Bt200 million. It will invest a further Bt700 million to develop the project this year and next.
Half of the cost will be borrowed from a bank, and the rest will come from the company's cash flow.
"We planned to develop a residential project two years ago but delayed our decision to wait for the new international airport and maybe to change the project's concept to meet demand," he said.
In the two or three years before completion of the airport, demand for detached housing in Pattaya grew strongly. Land prices there have doubled, and Aroon said they were expected to increase again this year.
The company decided to develop detached housing rather than a condominium and will offer units priced from Bt14 million to Bt120 million. Market demand in the area suggests a greater need for detached housing than for condominiums.
Aroon said CB Richard Ellis had been assigned as the sales agent and manager of Baan Talay Pattaya.
Ten of the project's 68 units have already been sold, and the company expects 70 per cent of its customers will be locals and 30 per cent foreigners.
He said AEH's first project, Baan Nuen Num, also in Chon Buri province, generated sales of Bt500 million to the end of 2004.
This experience has led the company to believe its new project will sell successfully by the end of next year.
It expects sales of Bt400 million from Baan Talay Pattaya this year and of Bt1 billion next year.
AEH was established with registered capital of Bt150 million six years ago.
Its owners, the Eamsureya family, also operate the Shanghai Xiao Long Pao Chinese Restaurant.
The Nation:20 September 2006
By: Somluck Srimalee
Property developer AEH Co Ltd launched a Bt1.4-billion detached-housing project yesterday called Baan Talay Pattaya, hoping to take advantage of the eastern property boom driven by the opening of Suvarnabhumi Airport.
AEH vice president Aroon Eamsureya said his company would use an 8.4-hectare block of land at Jomtien Beach it bought two years ago for Bt200 million. It will invest a further Bt700 million to develop the project this year and next.
Half of the cost will be borrowed from a bank, and the rest will come from the company's cash flow.
"We planned to develop a residential project two years ago but delayed our decision to wait for the new international airport and maybe to change the project's concept to meet demand," he said.
In the two or three years before completion of the airport, demand for detached housing in Pattaya grew strongly. Land prices there have doubled, and Aroon said they were expected to increase again this year.
The company decided to develop detached housing rather than a condominium and will offer units priced from Bt14 million to Bt120 million. Market demand in the area suggests a greater need for detached housing than for condominiums.
Aroon said CB Richard Ellis had been assigned as the sales agent and manager of Baan Talay Pattaya.
Ten of the project's 68 units have already been sold, and the company expects 70 per cent of its customers will be locals and 30 per cent foreigners.
He said AEH's first project, Baan Nuen Num, also in Chon Buri province, generated sales of Bt500 million to the end of 2004.
This experience has led the company to believe its new project will sell successfully by the end of next year.
It expects sales of Bt400 million from Baan Talay Pattaya this year and of Bt1 billion next year.
AEH was established with registered capital of Bt150 million six years ago.
Its owners, the Eamsureya family, also operate the Shanghai Xiao Long Pao Chinese Restaurant.
Tuesday, August 29, 2006
High-End Homes Shine in Sub-Sale Market
The sub-sale market in the high-end residential segment was abuzz in the second quarter, both in terms of price gains and activity, as those who bought units earlier took the opportunity to sell them for a tidy profit.
DTZ Debenham Tie Leung’s latest analysis of caveats shows the median price of private apartments and condos that changed hands in the sub-sale market in Q2 jumped 37% from Q1. The median price rose from $598 per square foot in Q1 to $822 psf in Q2.
This was the highest level since $830 psf a decade ago in Q2 1996 at the peak of the property market, according to the firm’s analysis of caveats captured by the URA Realis database.
Subsales essentially refer to cases in which buyers who bought from developers sell in the secondary market prior to the project receiving Certificate of Statutory Completion. The certificate is typically issued about a year after a project receives Temporary Occupation Permit.
Sub-sales - often seen as a proxy of the level of speculative activity in the property market - were transacted largely for apartments/condos in the higher price brands in the April-June quarter this year, DTZ says.
The two highest price bands DTZ used in its five-tier analysis - units costing $1 million to less than $1.4 million, and units priced at $1.4 million and above - accounted for 44 per cent of total sub-sale transactions in Q2.
These two price bands posted respective quarter-on-quarter increases of 73% and 23% in the number of sub-sale deals. There was also a 60% quarter-on-quarter rise in number of sub-sales of units costing $800,000 to less than $1 million.
DTZ attributes this partly to strong interest in exclusive projects that were either completed recently or are nearing completion - such as The Pier at Robertson along the Singapore River, and The Berth By The Cove at Sentosa Cove.
‘People who want to buy homes for owner occupation or for investment with immediate rental income flow tend to prefer a unit that is nearing or has received Temporary Occupation Permit,’ says DTZ executive director Ong Choon Fah.
She also points to sub-sale interest in popular projects such as Icon in Tanjong Pagar, The Berth by The Cove and The Sail @ Marina Bay (first tower) that were launched by developers a few years ago at prices lower than those of similar projects released recently.
For instance, Ho Bee launched The Berth by The Cove in late 2004 at an average of $785 psf. Condo units there today would be worth more than $1,000 psf, property agents say.
DTZ says: ‘With the price recovery in high-end residential projects, those who bought units earlier in such developments have been able to benchmark the value of their properties against the newer projects.
‘This has created an opportunity for them to sell their units in the sub-sale market to the increasing number of buyers who are keen on such high-profile exclusive projects.’
DTZ’s analysis shows that while there was a pick-up in sub-sale deals in the higher price bands in Q2, activity in the two lowest price tiers declined from the preceding three months. As a result, the total number of apartments and condos sold in the sub-sale market for Q2 - at 115 - was hardly changed from the Q1 figure of 113.
Buyers with HDB addresses continued to account for a lower share of the number of sub-sale deals for private apartments and condos, down to to 23% in Q2 from 38% in Q1.
The firm also notes that the number of sub-sales continued to remain relatively low in Q2 - at 2.8% of the total 4,096 apartment and condo transactions in the quarter.
‘Going forward, while sub-sales will still be significantly lower than the levels between 1996 and 1999, the momentum for the sub-sales market is expected to strengthen on the back of the recovery of the high-end residential market and several high-profile projects that are expected to be launched,’ DTZ says.
‘These will boost median prices of apartments/condos transacted in the sub-sale market. In addition, a strong take-up for these forthcoming high-profile launches may also lead buyers who are unable to secure a choice unit to remain interested in the sub-sale market for several top-quality projects which have been previously released at lower prices.’
Source: The Business Times, 29 August 2006
DTZ Debenham Tie Leung’s latest analysis of caveats shows the median price of private apartments and condos that changed hands in the sub-sale market in Q2 jumped 37% from Q1. The median price rose from $598 per square foot in Q1 to $822 psf in Q2.
This was the highest level since $830 psf a decade ago in Q2 1996 at the peak of the property market, according to the firm’s analysis of caveats captured by the URA Realis database.
Subsales essentially refer to cases in which buyers who bought from developers sell in the secondary market prior to the project receiving Certificate of Statutory Completion. The certificate is typically issued about a year after a project receives Temporary Occupation Permit.
Sub-sales - often seen as a proxy of the level of speculative activity in the property market - were transacted largely for apartments/condos in the higher price brands in the April-June quarter this year, DTZ says.
The two highest price bands DTZ used in its five-tier analysis - units costing $1 million to less than $1.4 million, and units priced at $1.4 million and above - accounted for 44 per cent of total sub-sale transactions in Q2.
These two price bands posted respective quarter-on-quarter increases of 73% and 23% in the number of sub-sale deals. There was also a 60% quarter-on-quarter rise in number of sub-sales of units costing $800,000 to less than $1 million.
DTZ attributes this partly to strong interest in exclusive projects that were either completed recently or are nearing completion - such as The Pier at Robertson along the Singapore River, and The Berth By The Cove at Sentosa Cove.
‘People who want to buy homes for owner occupation or for investment with immediate rental income flow tend to prefer a unit that is nearing or has received Temporary Occupation Permit,’ says DTZ executive director Ong Choon Fah.
She also points to sub-sale interest in popular projects such as Icon in Tanjong Pagar, The Berth by The Cove and The Sail @ Marina Bay (first tower) that were launched by developers a few years ago at prices lower than those of similar projects released recently.
For instance, Ho Bee launched The Berth by The Cove in late 2004 at an average of $785 psf. Condo units there today would be worth more than $1,000 psf, property agents say.
DTZ says: ‘With the price recovery in high-end residential projects, those who bought units earlier in such developments have been able to benchmark the value of their properties against the newer projects.
‘This has created an opportunity for them to sell their units in the sub-sale market to the increasing number of buyers who are keen on such high-profile exclusive projects.’
DTZ’s analysis shows that while there was a pick-up in sub-sale deals in the higher price bands in Q2, activity in the two lowest price tiers declined from the preceding three months. As a result, the total number of apartments and condos sold in the sub-sale market for Q2 - at 115 - was hardly changed from the Q1 figure of 113.
Buyers with HDB addresses continued to account for a lower share of the number of sub-sale deals for private apartments and condos, down to to 23% in Q2 from 38% in Q1.
The firm also notes that the number of sub-sales continued to remain relatively low in Q2 - at 2.8% of the total 4,096 apartment and condo transactions in the quarter.
‘Going forward, while sub-sales will still be significantly lower than the levels between 1996 and 1999, the momentum for the sub-sales market is expected to strengthen on the back of the recovery of the high-end residential market and several high-profile projects that are expected to be launched,’ DTZ says.
‘These will boost median prices of apartments/condos transacted in the sub-sale market. In addition, a strong take-up for these forthcoming high-profile launches may also lead buyers who are unable to secure a choice unit to remain interested in the sub-sale market for several top-quality projects which have been previously released at lower prices.’
Source: The Business Times, 29 August 2006
Saturday, August 26, 2006
Making a Quick Profit from Good Class Bungalows
Some rich people are getting richer by selling their new Good Class Bungalows (GCBs) for a quick profit.
An analysis of caveats by Savills Singapore revealed that eight such properties were bought and resold at an average profit of about 20% in the past 12 months.
And considering that GCBs now easily cost upwards of $10 million, the investment returns are attractive.
A caveat is a legal document lodged with the Singapore Land Authority by a purchaser to protect his/her interests after an option to purchase is exercised or a Sales & Purchase Agreement is signed.
According to the caveats lodged, one GCB in Peirce Road was bought eight months ago for $4.3 million and resold three months later for $9 million. Another in Queen Astrid Park was bought for $12.5 million and resold a month later for $16 million.
Steven Ming, director of Savills’ GCB arm Prestige Homes, said the number of ‘quick sales’ has increased since the property market started to pick up but added: ‘A point to note is that it does not make up a lot of transactions.’
GCBs are located in designated areas, mostly in District 10, and have to be on a plot of at least 15,000 sq ft. There are about 2,500 such homes here.
Savills’ analysis did not include detached houses on plots of less than 15,000 sq ft. As such, it does not include the many new houses coming up at Sentosa Cove or ordinary detached houses that may sit on land as small as 4,300 sq ft up to 15,000 sq ft.
Mr Ming estimated that about 10% of recently transacted GCBs have been bought and resold within a year, with an increasing number bought by permanent residents. So far this year, there have been 68 transactions.
The ‘quick sales’ - Mr Ming believes ’speculation’ is too strong a word - can mostly be attributed to opportunistic selling.
‘Some buyers went into the market one or two years ago without anticipating that prices would increase,’ he said.
But with his 12-month projection of a further 10-15% increase in prices for GCBs - similar to that for high-end condominiums - more may see GCBs as a lucrative investment.
Giving an insight into GCB buyers, Douglas Wong, associate director of Knight Frank’s GCB arm Regal Homes, said the pool of buyers is very small.
‘There are probably between 800-1,000 such buyers and many of them own more than one GCB. Some own three to four,’ he said.
Mr Wong also believes that ’speculator’ is not the right term for these investors. ‘They are not really speculators because it’s not easy to speculate in this segment,’ he said, referring to the big price tags.
Mr Wong, who has been in this market for close to 10 years, believes that these buyers are long-term investors.
Still, he too has seen some ‘quick sales’ recently, saying that one GCB in the Nassim area was recently sold for $15 million by a buyer who paid $9.8 million for it a year ago.
Perhaps the surest sign that the GCB market is hot must be that the first collective sale could take place soon.
Credo Real Estate is marketing a 26,254 sq ft GCB site in Bin Tong Park, and Credo managing director Karamjit Singh said the owners of the neighbouring GCB are keen to cash out too, so much so that they are prepared to either sell part of their own land or even the whole plot as a ‘collective sale’.
The two GCBs combined could yield enough land for a total of three GCBs, so even if the present owners choose to stay, they could sell one house for $11-13 million.
Mr Singh estimated that the potential return on such a development could be 20-3%, ‘which is not bad’, he said.
Source: The Business Times, 28 August 2006
An analysis of caveats by Savills Singapore revealed that eight such properties were bought and resold at an average profit of about 20% in the past 12 months.
And considering that GCBs now easily cost upwards of $10 million, the investment returns are attractive.
A caveat is a legal document lodged with the Singapore Land Authority by a purchaser to protect his/her interests after an option to purchase is exercised or a Sales & Purchase Agreement is signed.
According to the caveats lodged, one GCB in Peirce Road was bought eight months ago for $4.3 million and resold three months later for $9 million. Another in Queen Astrid Park was bought for $12.5 million and resold a month later for $16 million.
Steven Ming, director of Savills’ GCB arm Prestige Homes, said the number of ‘quick sales’ has increased since the property market started to pick up but added: ‘A point to note is that it does not make up a lot of transactions.’
GCBs are located in designated areas, mostly in District 10, and have to be on a plot of at least 15,000 sq ft. There are about 2,500 such homes here.
Savills’ analysis did not include detached houses on plots of less than 15,000 sq ft. As such, it does not include the many new houses coming up at Sentosa Cove or ordinary detached houses that may sit on land as small as 4,300 sq ft up to 15,000 sq ft.
Mr Ming estimated that about 10% of recently transacted GCBs have been bought and resold within a year, with an increasing number bought by permanent residents. So far this year, there have been 68 transactions.
The ‘quick sales’ - Mr Ming believes ’speculation’ is too strong a word - can mostly be attributed to opportunistic selling.
‘Some buyers went into the market one or two years ago without anticipating that prices would increase,’ he said.
But with his 12-month projection of a further 10-15% increase in prices for GCBs - similar to that for high-end condominiums - more may see GCBs as a lucrative investment.
Giving an insight into GCB buyers, Douglas Wong, associate director of Knight Frank’s GCB arm Regal Homes, said the pool of buyers is very small.
‘There are probably between 800-1,000 such buyers and many of them own more than one GCB. Some own three to four,’ he said.
Mr Wong also believes that ’speculator’ is not the right term for these investors. ‘They are not really speculators because it’s not easy to speculate in this segment,’ he said, referring to the big price tags.
Mr Wong, who has been in this market for close to 10 years, believes that these buyers are long-term investors.
Still, he too has seen some ‘quick sales’ recently, saying that one GCB in the Nassim area was recently sold for $15 million by a buyer who paid $9.8 million for it a year ago.
Perhaps the surest sign that the GCB market is hot must be that the first collective sale could take place soon.
Credo Real Estate is marketing a 26,254 sq ft GCB site in Bin Tong Park, and Credo managing director Karamjit Singh said the owners of the neighbouring GCB are keen to cash out too, so much so that they are prepared to either sell part of their own land or even the whole plot as a ‘collective sale’.
The two GCBs combined could yield enough land for a total of three GCBs, so even if the present owners choose to stay, they could sell one house for $11-13 million.
Mr Singh estimated that the potential return on such a development could be 20-3%, ‘which is not bad’, he said.
Source: The Business Times, 28 August 2006
Wednesday, July 26, 2006
Tuesday July 25, 2006
Tuesday July 25, 2006
Support Line
Johor Land has been correcting on easing volume over the past seven days. The stochastic is attempting to reverse from the neutral zone while the moving average convergence/divergence indicator appears in danger of slipping below the signal line. Analysis suggests that if the prevailing trend is indeed still constructive, a rebound should come about soon, with strong resistance expected at the RM1.17-RM1.20 band. Initial support is seen at 90 sen.
JLAND : [Stock Watch] [News]
KPJ Healthcare: THE upward momentum of KPJ Healthcare shares has paused for a breather in the wake of profit-taking activity after testing the lower band of the RM1.90-RM2.00 heavy resistance zone, a decisive bullish breakout of which may trigger a rally towards the next strong hurdle of RM2.40 in the near term. The moving average convergence/divergence indicator remains positive, implying that there is more upside potential in the near term. Support is at RM1.80.
KPJ : [Stock Watch] [News]
SYF Resources: SYF Resources shares continued to consolidate after a futile attempt to penetrate the 100-day simple moving average of RM1.18 on July 11. The stochastic is in bearish extended-move territory and the moving average convergence/divergence indicator is expanding downward against the trigger line. Given the negative signal, prices may be under pressure. Current support and resistance are pegged at 68 sen and 90 sen respectively.
SYF : [Stock Watch] [News]
# The comments above do not represent a recommendation to buy or sell
Support Line
Johor Land has been correcting on easing volume over the past seven days. The stochastic is attempting to reverse from the neutral zone while the moving average convergence/divergence indicator appears in danger of slipping below the signal line. Analysis suggests that if the prevailing trend is indeed still constructive, a rebound should come about soon, with strong resistance expected at the RM1.17-RM1.20 band. Initial support is seen at 90 sen.
JLAND : [Stock Watch] [News]
KPJ Healthcare: THE upward momentum of KPJ Healthcare shares has paused for a breather in the wake of profit-taking activity after testing the lower band of the RM1.90-RM2.00 heavy resistance zone, a decisive bullish breakout of which may trigger a rally towards the next strong hurdle of RM2.40 in the near term. The moving average convergence/divergence indicator remains positive, implying that there is more upside potential in the near term. Support is at RM1.80.
KPJ : [Stock Watch] [News]
SYF Resources: SYF Resources shares continued to consolidate after a futile attempt to penetrate the 100-day simple moving average of RM1.18 on July 11. The stochastic is in bearish extended-move territory and the moving average convergence/divergence indicator is expanding downward against the trigger line. Given the negative signal, prices may be under pressure. Current support and resistance are pegged at 68 sen and 90 sen respectively.
SYF : [Stock Watch] [News]
# The comments above do not represent a recommendation to buy or sell
Thursday, July 13, 2006
Singapore: One of Most Transparent Markets
Jones Lang LaSalle’s (JLL) latest Real Estate Transparency Index has listed Singapore under Tier 1 (Highly Transparent), up from Tier 2 (Transparent) in the last survey in 2004. The survey of 56 markets shows property markets around the world have become more transparent over the past two years, driven by the rise of cross-border investment opportunities and multinational occupiers.
JLL also highlighted the fact that real estate investment trusts (Reits) have enhanced the need for greater transparency wherever they are introduced in the Asia-Pacific region.Besides Singapore, the only other country in the Asia-Pacific to make it to Tier 1 in the latest survey is Hong Kong, which was also previously in Tier 2.
The two joined Australia and New Zealand, which were already in Tier 1 in the 2004 study.On a global basis, Australia, US, New Zealand, Canada and UK took the top spots as the most transparent countries this year.
Although Singapore has moved to a higher transparency band, its numerical ranking in the survey of 56 countries slipped a notch from ninth position in 2004 to 10th this year. France, which had been ranked 11th two years ago, moved up to ninth spot.
The five-tier transparency ranking system ranges from Tier 1 (Highly Transparent) to Tier 5 (Opaque). Vietnam, Venezuela and Egypt emerged as the least transparent markets.
Ranking for the study was based on five attributes of real estate transparency - availability of investment performance indices, availability of market fundamentals data, listed vehicle financial disclosure and governance, regulatory and legal factors, and professional and ethical standards.
‘Overall, two-thirds of the countries ranked in our 2004 study exhibited some or significant improvement,’ said Dr Jacques Gordon, global investment strategist at LaSalle Investment Management, JLL’s fund management arm.
‘Some 14 countries moved up a full tier in our five-tier transparency ranking system and none slipped back. Additionally, many more countries earned higher transparency scores while remaining in the same tier.’
Source: The Business Times, July 13, 2006
JLL also highlighted the fact that real estate investment trusts (Reits) have enhanced the need for greater transparency wherever they are introduced in the Asia-Pacific region.Besides Singapore, the only other country in the Asia-Pacific to make it to Tier 1 in the latest survey is Hong Kong, which was also previously in Tier 2.
The two joined Australia and New Zealand, which were already in Tier 1 in the 2004 study.On a global basis, Australia, US, New Zealand, Canada and UK took the top spots as the most transparent countries this year.
Although Singapore has moved to a higher transparency band, its numerical ranking in the survey of 56 countries slipped a notch from ninth position in 2004 to 10th this year. France, which had been ranked 11th two years ago, moved up to ninth spot.
The five-tier transparency ranking system ranges from Tier 1 (Highly Transparent) to Tier 5 (Opaque). Vietnam, Venezuela and Egypt emerged as the least transparent markets.
Ranking for the study was based on five attributes of real estate transparency - availability of investment performance indices, availability of market fundamentals data, listed vehicle financial disclosure and governance, regulatory and legal factors, and professional and ethical standards.
‘Overall, two-thirds of the countries ranked in our 2004 study exhibited some or significant improvement,’ said Dr Jacques Gordon, global investment strategist at LaSalle Investment Management, JLL’s fund management arm.
‘Some 14 countries moved up a full tier in our five-tier transparency ranking system and none slipped back. Additionally, many more countries earned higher transparency scores while remaining in the same tier.’
Source: The Business Times, July 13, 2006
Tuesday, May 30, 2006
Pattaya booms
Pattaya booms
The Nation: 25 April 2006
By: Suchat Sritama
Pattaya's tourist trade is booming with improved services and infrastructure, including hotels, the Fairtex sport complex, cinemas, shopping malls and the upcoming opening of Suvarnabhumi Airport.
Last year 5,338,009 tourists arrived in Pattaya, up 6.5 per cent from 2004, according to the Tourism Authority. Of these, 66 per cent were foreign. With an average length of stay of 3.4 days and average daily expenditures of Bt2,819 per person, tourists spent about Bt48 billion in the resort.
Last year there were 293 hotels and guesthouses with a combined 34,007 rooms in Pattaya. They had an average occupancy rate of 58 per cent.
"In 2005, the hotel occupancy rate grew by 28 per cent. Pattaya has a strong prospect of attracting more tourists in this year," said TAT governor Juthamas Siriwan. Pattaya was benefiting from its proximity to Bangkok, she said, and could be reached in about 90 minutes via two motorways.
In recent years, Pattaya has seen a wide range of tourism-related developments. The Pattaya Beach Bus has recently opened its Red Line service, which runs a lengthy, circular route around the city. Healthland Spa has just opened one of its popular resorts. Meanwhile, Fairtex is Pattaya's newest entertainment complex, combining a Thai boxing school for foreigners, a traditional Thai massage service and fitness centre.
The Nation: 25 April 2006
By: Suchat Sritama
Pattaya's tourist trade is booming with improved services and infrastructure, including hotels, the Fairtex sport complex, cinemas, shopping malls and the upcoming opening of Suvarnabhumi Airport.
Last year 5,338,009 tourists arrived in Pattaya, up 6.5 per cent from 2004, according to the Tourism Authority. Of these, 66 per cent were foreign. With an average length of stay of 3.4 days and average daily expenditures of Bt2,819 per person, tourists spent about Bt48 billion in the resort.
Last year there were 293 hotels and guesthouses with a combined 34,007 rooms in Pattaya. They had an average occupancy rate of 58 per cent.
"In 2005, the hotel occupancy rate grew by 28 per cent. Pattaya has a strong prospect of attracting more tourists in this year," said TAT governor Juthamas Siriwan. Pattaya was benefiting from its proximity to Bangkok, she said, and could be reached in about 90 minutes via two motorways.
In recent years, Pattaya has seen a wide range of tourism-related developments. The Pattaya Beach Bus has recently opened its Red Line service, which runs a lengthy, circular route around the city. Healthland Spa has just opened one of its popular resorts. Meanwhile, Fairtex is Pattaya's newest entertainment complex, combining a Thai boxing school for foreigners, a traditional Thai massage service and fitness centre.
Sunday, April 30, 2006
Phuket, Thailand Residental Market Overview
Phuket, Thailand Residental Market Overview
PRWeb : 31 March 2006
By: Press Release
Already considered the ultimate resort destination in South-east Asia, Phuket continues to enhance its offering to global tourists and property buyers, according to international property consultants CB Richard Ellis. The island’s striking natural beauty and its unique hospitality already place it amongst the most popular holiday, second home and retirement destinations.
Phuket, Thailand (PRWEB) March 31, 2006 -- Already considered the ultimate resort destination in South-east Asia, Phuket continues to enhance its offering to global tourists and property buyers, according to international property consultants CB Richard Ellis (http://www.cbre.co.th). The island’s striking natural beauty and its unique hospitality already place it amongst the most popular holiday, second home and retirement destinations. The continually increasing range and quality of its facilities and its low cost of living, which remains a fraction of that of Hong Kong, London or New York, truly sets Phuket apart.
Many five-star international hotel brands are already operating in Phuket; a second international school is currently being planned and Phuket International Hospital, one of the three private international hospitals on the island, has started construction of a new extension. Phuket’s 6 golf courses are regarded as some of the best in Asia; the new Royal Phuket Marina’s high-end boat facility is now in service; and Jungceylon is scheduled to open its retail centre in Patong in time for the high season, improving the already wide range of shopping facilities. Local authorities are also continuously improving the island’s infrastructure.
According to the latest survey by CB Richard Ellis’ Research team, the property supply has also evolved to include properties to fit all budgets, from Baht 2.5 million to US$ 10 million (Baht 400 million). There are now many more high-end projects on the island, with both the number of developments offering villas priced above US$ 1 million (Baht 40 million) and the number of condominium projects with units priced above US$ 0.75 million (Baht 30 million) doubling over the past 12 months.
Mr. David Simister, Chairman of CB Richard Ellis Thailand, explains that “good fundamentals in terms of location, views and the immediate environment, quality of the design and construction, funding of the project, branding and management of the properties are crucial in securing quick sales. Recently launched projects such as Trisara, The Heights and Crowne Plaza Residence have the right elements to ensure success”. Indeed, Trisara Phase C, which consists of exclusive US$ 2.6-5.3 million (Baht 105-211 million) sea view and sea front villas on 1,300 to 2,900 sq.m. land plots and managed by 6 star hotel Trisara, and The Heights, with sea view condominium units priced at Baht 15-37.5 million, were both 50% sold out within weeks of their launch. Crowne Plaza Residence, consisting of Baht 13-15 million condominium units managed by the hotel and located meters from the beach, has sold a third of its units.
The East Coast has also entered a new phase in its development, with the opening of the Mission Hills Golf Course and Chandara Resort & Spa. The construction of the private houses and hotel facilities in Supalai is now substantially under way. Cape Yamu has launched a new project called The Bay, on a site adjacent to theirs, with villas priced at Baht 23.5-55 million, and already has several bookings.
The high level of buying activity on Phuket over the past few months is reflected in the number of air bound arrivals at Phuket international airport, which more than doubled in February 2006 compared to February 2005, and also represents an increase on February 2004 figures. Airports of Thailand (AOT) registered nearly 2 million tourists at Phuket airport between October 2005 and February 2006, a 12% increase year-on-year.
CB Richard Ellis believes that Phuket will remain the premium residential resort market for expatriates living in Asia and will attract ever more global buyers in search of stunning properties, exceptional locations and guaranteed privacy. Land and properties continue to appreciate, as prime sites are becoming an increasingly rare commodity, and yields will continue to improve with the development of the rental business.
Mr. Simister added, “Sophisticated buyers are demanding more professional advice and tailor-made solutions to fit their specific needs. To cater for this, we have opened Phuket’s first Property Service Centre”. The Property Service Centre is a unique cluster of real estate expertise which regroups in one location four international experts in real estate and related disciplines: international property consultants, CB Richard Ellis; international law firm, Johnson Stokes & Master; The villa rental website, www.MyAsianVilla.com and architects and designers, RMJM.
PRWeb : 31 March 2006
By: Press Release
Already considered the ultimate resort destination in South-east Asia, Phuket continues to enhance its offering to global tourists and property buyers, according to international property consultants CB Richard Ellis. The island’s striking natural beauty and its unique hospitality already place it amongst the most popular holiday, second home and retirement destinations.
Phuket, Thailand (PRWEB) March 31, 2006 -- Already considered the ultimate resort destination in South-east Asia, Phuket continues to enhance its offering to global tourists and property buyers, according to international property consultants CB Richard Ellis (http://www.cbre.co.th). The island’s striking natural beauty and its unique hospitality already place it amongst the most popular holiday, second home and retirement destinations. The continually increasing range and quality of its facilities and its low cost of living, which remains a fraction of that of Hong Kong, London or New York, truly sets Phuket apart.
Many five-star international hotel brands are already operating in Phuket; a second international school is currently being planned and Phuket International Hospital, one of the three private international hospitals on the island, has started construction of a new extension. Phuket’s 6 golf courses are regarded as some of the best in Asia; the new Royal Phuket Marina’s high-end boat facility is now in service; and Jungceylon is scheduled to open its retail centre in Patong in time for the high season, improving the already wide range of shopping facilities. Local authorities are also continuously improving the island’s infrastructure.
According to the latest survey by CB Richard Ellis’ Research team, the property supply has also evolved to include properties to fit all budgets, from Baht 2.5 million to US$ 10 million (Baht 400 million). There are now many more high-end projects on the island, with both the number of developments offering villas priced above US$ 1 million (Baht 40 million) and the number of condominium projects with units priced above US$ 0.75 million (Baht 30 million) doubling over the past 12 months.
Mr. David Simister, Chairman of CB Richard Ellis Thailand, explains that “good fundamentals in terms of location, views and the immediate environment, quality of the design and construction, funding of the project, branding and management of the properties are crucial in securing quick sales. Recently launched projects such as Trisara, The Heights and Crowne Plaza Residence have the right elements to ensure success”. Indeed, Trisara Phase C, which consists of exclusive US$ 2.6-5.3 million (Baht 105-211 million) sea view and sea front villas on 1,300 to 2,900 sq.m. land plots and managed by 6 star hotel Trisara, and The Heights, with sea view condominium units priced at Baht 15-37.5 million, were both 50% sold out within weeks of their launch. Crowne Plaza Residence, consisting of Baht 13-15 million condominium units managed by the hotel and located meters from the beach, has sold a third of its units.
The East Coast has also entered a new phase in its development, with the opening of the Mission Hills Golf Course and Chandara Resort & Spa. The construction of the private houses and hotel facilities in Supalai is now substantially under way. Cape Yamu has launched a new project called The Bay, on a site adjacent to theirs, with villas priced at Baht 23.5-55 million, and already has several bookings.
The high level of buying activity on Phuket over the past few months is reflected in the number of air bound arrivals at Phuket international airport, which more than doubled in February 2006 compared to February 2005, and also represents an increase on February 2004 figures. Airports of Thailand (AOT) registered nearly 2 million tourists at Phuket airport between October 2005 and February 2006, a 12% increase year-on-year.
CB Richard Ellis believes that Phuket will remain the premium residential resort market for expatriates living in Asia and will attract ever more global buyers in search of stunning properties, exceptional locations and guaranteed privacy. Land and properties continue to appreciate, as prime sites are becoming an increasingly rare commodity, and yields will continue to improve with the development of the rental business.
Mr. Simister added, “Sophisticated buyers are demanding more professional advice and tailor-made solutions to fit their specific needs. To cater for this, we have opened Phuket’s first Property Service Centre”. The Property Service Centre is a unique cluster of real estate expertise which regroups in one location four international experts in real estate and related disciplines: international property consultants, CB Richard Ellis; international law firm, Johnson Stokes & Master; The villa rental website, www.MyAsianVilla.com and architects and designers, RMJM.
Sunday, April 23, 2006
Singapore Government Online
URA Logo
Contact URA | Feedback | Sitemap
the web URA Advanced
* Home
* About Us
* e-Services
* Publications
* News Releases
* Circulars
* Facilities
* Past Events
* Career
* Useful Links
* Rate Website
Browse by Topics
Overview
News Archives
•
2007
•
2006
•
2005
•
2004
•
2003
News by Subjects
•
Real Estate Statistical Series
•
Sales of Sites
•
Urban Planning
•
Others
Forum Letters and Replies
•
2006
•
2005
Home > News Releases > 2006
News Releases
28 JULY 2006
URA RELEASES THE 2ND QUARTER 2006 REAL ESTATE INFORMATION
1. The Urban Redevelopment Authority (URA) releases today the real estate statistics for the 2nd Quarter 2006.
HIGHLIGHTS OF 2nd Quarter 2006 STATISTICS
PRIVATE RESIDENTIAL UNITS
Prices
2. Prices of private residential properties rose 1.8% in the 2nd Quarter 2006, compared with the 1.5% increase in the previous quarter (see Annexes A-1 and B-1 & B-2).
3. Prices of landed properties rose 1.6% in the 2nd Quarter 2006, compared with the 1.4% increase in the previous quarter. Prices of detached, semi-detached and terrace houses rose 2.7%, 0.6% and 0.5% respectively.
4. Prices of non-landed properties rose 1.7% in the 2nd Quarter 2006, compared with the 1.5% increase in the previous quarter. Prices of apartments rose 2.3% while those of condominiums rose 1.5%.
5. Rentals of private residential properties rose 2.1% in the 2nd Quarter 2006, compared with the 1.1% increase in the previous quarter (see Annex A-2).
Supply And Demand
6. As at the end of 2nd Quarter 2006, the number of private residential units under construction was 24,711, about 10.6% higher than that as at the end of the previous quarter (see Annex C). Of these, 20,838 units had the pre-requisite conditions for sale (i.e. with sale licences and building plan approvals). There were another 3,640 units from projects where construction had not commenced but with the pre-requisite conditions for sale. Hence there was a total of 24,478 units with the pre-requisite conditions for sale, which was 0.1% higher than the 24,460 units as at the end of 1st Quarter 2006.
7. Of the 24,478 uncompleted units with the pre-requisite conditions for sale, 14,717 units had been sold. The remaining 9,761 units which had yet to be sold comprised 3,596 units which had been launched for sale, and 6,165 units which had not been launched yet (see Annex D-1). There were also 754 completed but unsold units as at the end of 2nd Quarter 2006.
8. A total of 3,005 uncompleted private residential units were launched for sale in the 2nd Quarter 2006, compared with the 2,111 units launched in the 1st Quarter 2006 (see Annex D-2). Major residential projects launched in the quarter included Kovan Melody (the remaining 228 units from a total of 778 units) at Kovan Road, One Jervois (200 units from a total of 275 units) at Jervois Close, Southbank (197 units) at North Bridge Road, St Regis Residences Singapore (173 units) at Cuscaden Road and Residences @ Evelyn (157 units from a total of 208 units) at Evelyn Road.
9. During the 2nd Quarter 2006, 2,369 uncompleted private residential units were sold by developers, compared with the 1,699 units sold in the 1st Quarter 2006. Developers also sold 158 completed private residential units in the 2nd Quarter 2006.
10. A total of 1,153 private residential units were completed (granted TOP) in the 2nd Quarter 2006. Major residential projects completed in the quarter were Baywater (232 units) at Bedok Reservoir Road and The Pier at Robertson (201 units) at Mohamed Sultan Road.
11. The vacancy rate of completed private residential units was 6.5% as at the end of 2nd Quarter 2006, compared with 7.4% as at the end of the previous quarter.
EXECUTIVE CONDOMINIUMS
12. As at the end of 2nd Quarter 2006, there were 903 units of Executive Condominiums (EC) in the pipeline, all of which were under construction (see Annex C). All the 903 units had been issued with sale licences and building plan approvals (i.e. pre-requisites for sale). As at the end of the quarter, 811 units had been launched for sale, of which 654 units had been sold.
13. The total stock of completed EC units remained at 9,527 units as at the end of 2nd Quarter 2006, as no new EC units were completed in the quarter. As at the end of 2nd Quarter 2006, the vacancy rate was 0.4%, compared with the vacancy rate of 0.6% as at the end of the previous quarter.
OFFICE SPACE
14. Prices of office space rose 3.5% in the 2nd Quarter 2006, compared with the 1.4% increase in the previous quarter (see Annex A-1). Rentals rose 6.6% in the 2nd Quarter 2006, compared with the 2.3% increase in the previous quarter (see Annex A-2).
15. Office space under construction decreased by 12.6% to 236,000 sq m (gross) as at the end of 2nd Quarter 2006 (see Annex C).
16. The stock of completed office space (with TOP) increased by 47,000 sq m to 6.510 million sq m (nett) as at the end of 2nd Quarter 2006, while the amount of occupied office space increased by 24,000 sq m to 5.710 million sq m(nett) in the same period.
17. Consequently, the vacancy rate of office space increased by 0.3 percentage point to 12.3% as at the end of 2nd Quarter 2006.
SHOP SPACE
18. Prices of shop space rose 1.4% in the 2nd Quarter 2006, compared with the 1.2% increase in the previous quarter (see Annex A-1). Rentals rose 1.4%, compared with the 1.9% increase in the previous quarter (see Annex A-2).
19. Shop space under construction increased by 20.4% to 348,000 sq m (gross) as at the end of 2nd Quarter 2006 (see Annex C).
20. The stock of completed shop space (with TOP) decreased by 4,000 sq m to 3.138 million sq m (nett) as at the end of 2nd Quarter 2006, while the amount of occupied shop space decreased by 3,000 sq m to 2.899 million sq m (nett) in the same period.
21. The vacancy rate of shop space remained unchanged at 7.6% as at the end of 2nd Quarter 2006.
INDUSTRIAL SPACE
22. Prices of multiple-user factory space rose 1.0% in the 2nd Quarter 2006, compared with the 0.5% increase in the previous quarter (see Annex A-1). Rentals of multiple-user factory space rose 0.3%, compared with the 0.8% increase in the previous quarter (see Annex A-2).
23. Factory space under construction increased by 14.4% to 1.896 million sq m (gross) in the 2nd Quarter 2006 (see Annex C).
24. The stock of completed factory space (with TOP) increased by 39,000 sq m to 27.201 million sq m (nett) as at the end of 2nd Quarter 2006, while the amount of occupied factory space increased by 239,000 sq m to 24.550 million sq m (nett) in the same period.
25. Consequently, the vacancy rate of factory space decreased by 0.8 percentage point to 9.7% as at the end of 2nd Quarter 2006.
URA’s REAL ESTATE INFORMATION SERVICE
26. More detailed information on the price and rental indices, supply in the pipeline, stock and vacancy position of the various properties can be found in the Real Estate Information System (REALIS), an online database of URA.
27. Subscribers of REALIS can obtain the information from the system after 12.30 pm today. More information on REALIS can be found at http://spring.ura.gov.sg/lad/ore/login/index.cfm. You can also contact the REALIS hotline at 6329 3456.
The supply of office, shop and factory space under construction is given in gross floor area as the developments have yet to be completed and hence the nett floor area is not available.
ANNEX E-1
SUMMARY OF KEY INFORMATION ON EXECUTIVE CONDOMINIUM (EC)
NUMBER OF EC UNITS LAUNCHED AND SOLD IN THE QUARTER
Quarter/Year
Number of New Units
Launched
Units Sold Directly by Developers 1
Uncompleted
Completed
2001
1Q/2001
2Q/2001
3Q/2001
4Q/2001
1,677
-
678
384
615
1,541
-
672
387
482
382
33
246
89
14
2002
1Q/2002
2Q/2002
3Q/2002
4Q/2002
894
-
-
665
229
718
81
33
391
213
-
-
-
-
-
2003
1Q/2003
2Q/2003
3Q/2003
4Q/2003
400
60
108
232
-
438
73
155
141
69
-
-
-
-
-
2004
1Q/2004
2Q/2004
3Q/2004
4Q/2004
160
84
-
-
76
226
134
38
29
25
4
-
-
2
2
2005
1Q/2005
2Q/2005
3Q/2005
4Q/2005
325
-
292
-
33
342
26
173
110
33
1
-
1
-
-
2006
1Q/2006
2Q/2006
-
94
76
53
-
-
1
This is compiled from the returns of the quarterly survey on licensed developers, based on option given by developers.
ANNEX E-2
SALE POSITION OF EC UNITS WITH PRE-REQUISITIES FOR SALE 1 AS AT END OF QUARTER
1Q/2006
2Q/2006
Percentage Change
(%)
Uncompleted Units Available
903
903
-
Launched
717
811
13.1
Sold 2
601
654
8.8
Unsold
116
157
35.3
Not Launched Yet
186
92
-50.5
Unsold Completed Units 3
0
0
-
1 Refers to executive condominiums with Housing Developer Licence and Building Plan Approval. Under the Housing Developer (Control & Licensing) Act, a sale licence must be obtained for projects with more than 4 units, if the developer intends to sell the residential units in the development. However, the sale of the residential units can commence with the approval of the building plans of the development.
2 Refers to units with sales and purchase agreements signed and given options to purchase.
3 Refers to unsold units in completed executive condominium projects.
For media enquiries, please contact:
Ms Ang Hwee Suan
Head, Public Relations
DID: 6321 8134
Email: Ang_Hwee_Suan@ura.gov.sg
Ms Gillian Tan
Executive Public Relations Officer
DID: 6321 8280
E mail: Gillian_tan@ura.gov.sg
Last Updated on Tuesday 24 April, 2007
Top of this page
Privacy Statement | Conditions of Access Copyright 2006, Urban Redevelopment Authority. All rights reserved.
URA Logo
Contact URA | Feedback | Sitemap
the web URA Advanced
* Home
* About Us
* e-Services
* Publications
* News Releases
* Circulars
* Facilities
* Past Events
* Career
* Useful Links
* Rate Website
Browse by Topics
Overview
News Archives
•
2007
•
2006
•
2005
•
2004
•
2003
News by Subjects
•
Real Estate Statistical Series
•
Sales of Sites
•
Urban Planning
•
Others
Forum Letters and Replies
•
2006
•
2005
Home > News Releases > 2006
News Releases
28 JULY 2006
URA RELEASES THE 2ND QUARTER 2006 REAL ESTATE INFORMATION
1. The Urban Redevelopment Authority (URA) releases today the real estate statistics for the 2nd Quarter 2006.
HIGHLIGHTS OF 2nd Quarter 2006 STATISTICS
PRIVATE RESIDENTIAL UNITS
Prices
2. Prices of private residential properties rose 1.8% in the 2nd Quarter 2006, compared with the 1.5% increase in the previous quarter (see Annexes A-1 and B-1 & B-2).
3. Prices of landed properties rose 1.6% in the 2nd Quarter 2006, compared with the 1.4% increase in the previous quarter. Prices of detached, semi-detached and terrace houses rose 2.7%, 0.6% and 0.5% respectively.
4. Prices of non-landed properties rose 1.7% in the 2nd Quarter 2006, compared with the 1.5% increase in the previous quarter. Prices of apartments rose 2.3% while those of condominiums rose 1.5%.
5. Rentals of private residential properties rose 2.1% in the 2nd Quarter 2006, compared with the 1.1% increase in the previous quarter (see Annex A-2).
Supply And Demand
6. As at the end of 2nd Quarter 2006, the number of private residential units under construction was 24,711, about 10.6% higher than that as at the end of the previous quarter (see Annex C). Of these, 20,838 units had the pre-requisite conditions for sale (i.e. with sale licences and building plan approvals). There were another 3,640 units from projects where construction had not commenced but with the pre-requisite conditions for sale. Hence there was a total of 24,478 units with the pre-requisite conditions for sale, which was 0.1% higher than the 24,460 units as at the end of 1st Quarter 2006.
7. Of the 24,478 uncompleted units with the pre-requisite conditions for sale, 14,717 units had been sold. The remaining 9,761 units which had yet to be sold comprised 3,596 units which had been launched for sale, and 6,165 units which had not been launched yet (see Annex D-1). There were also 754 completed but unsold units as at the end of 2nd Quarter 2006.
8. A total of 3,005 uncompleted private residential units were launched for sale in the 2nd Quarter 2006, compared with the 2,111 units launched in the 1st Quarter 2006 (see Annex D-2). Major residential projects launched in the quarter included Kovan Melody (the remaining 228 units from a total of 778 units) at Kovan Road, One Jervois (200 units from a total of 275 units) at Jervois Close, Southbank (197 units) at North Bridge Road, St Regis Residences Singapore (173 units) at Cuscaden Road and Residences @ Evelyn (157 units from a total of 208 units) at Evelyn Road.
9. During the 2nd Quarter 2006, 2,369 uncompleted private residential units were sold by developers, compared with the 1,699 units sold in the 1st Quarter 2006. Developers also sold 158 completed private residential units in the 2nd Quarter 2006.
10. A total of 1,153 private residential units were completed (granted TOP) in the 2nd Quarter 2006. Major residential projects completed in the quarter were Baywater (232 units) at Bedok Reservoir Road and The Pier at Robertson (201 units) at Mohamed Sultan Road.
11. The vacancy rate of completed private residential units was 6.5% as at the end of 2nd Quarter 2006, compared with 7.4% as at the end of the previous quarter.
EXECUTIVE CONDOMINIUMS
12. As at the end of 2nd Quarter 2006, there were 903 units of Executive Condominiums (EC) in the pipeline, all of which were under construction (see Annex C). All the 903 units had been issued with sale licences and building plan approvals (i.e. pre-requisites for sale). As at the end of the quarter, 811 units had been launched for sale, of which 654 units had been sold.
13. The total stock of completed EC units remained at 9,527 units as at the end of 2nd Quarter 2006, as no new EC units were completed in the quarter. As at the end of 2nd Quarter 2006, the vacancy rate was 0.4%, compared with the vacancy rate of 0.6% as at the end of the previous quarter.
OFFICE SPACE
14. Prices of office space rose 3.5% in the 2nd Quarter 2006, compared with the 1.4% increase in the previous quarter (see Annex A-1). Rentals rose 6.6% in the 2nd Quarter 2006, compared with the 2.3% increase in the previous quarter (see Annex A-2).
15. Office space under construction decreased by 12.6% to 236,000 sq m (gross) as at the end of 2nd Quarter 2006 (see Annex C).
16. The stock of completed office space (with TOP) increased by 47,000 sq m to 6.510 million sq m (nett) as at the end of 2nd Quarter 2006, while the amount of occupied office space increased by 24,000 sq m to 5.710 million sq m(nett) in the same period.
17. Consequently, the vacancy rate of office space increased by 0.3 percentage point to 12.3% as at the end of 2nd Quarter 2006.
SHOP SPACE
18. Prices of shop space rose 1.4% in the 2nd Quarter 2006, compared with the 1.2% increase in the previous quarter (see Annex A-1). Rentals rose 1.4%, compared with the 1.9% increase in the previous quarter (see Annex A-2).
19. Shop space under construction increased by 20.4% to 348,000 sq m (gross) as at the end of 2nd Quarter 2006 (see Annex C).
20. The stock of completed shop space (with TOP) decreased by 4,000 sq m to 3.138 million sq m (nett) as at the end of 2nd Quarter 2006, while the amount of occupied shop space decreased by 3,000 sq m to 2.899 million sq m (nett) in the same period.
21. The vacancy rate of shop space remained unchanged at 7.6% as at the end of 2nd Quarter 2006.
INDUSTRIAL SPACE
22. Prices of multiple-user factory space rose 1.0% in the 2nd Quarter 2006, compared with the 0.5% increase in the previous quarter (see Annex A-1). Rentals of multiple-user factory space rose 0.3%, compared with the 0.8% increase in the previous quarter (see Annex A-2).
23. Factory space under construction increased by 14.4% to 1.896 million sq m (gross) in the 2nd Quarter 2006 (see Annex C).
24. The stock of completed factory space (with TOP) increased by 39,000 sq m to 27.201 million sq m (nett) as at the end of 2nd Quarter 2006, while the amount of occupied factory space increased by 239,000 sq m to 24.550 million sq m (nett) in the same period.
25. Consequently, the vacancy rate of factory space decreased by 0.8 percentage point to 9.7% as at the end of 2nd Quarter 2006.
URA’s REAL ESTATE INFORMATION SERVICE
26. More detailed information on the price and rental indices, supply in the pipeline, stock and vacancy position of the various properties can be found in the Real Estate Information System (REALIS), an online database of URA.
27. Subscribers of REALIS can obtain the information from the system after 12.30 pm today. More information on REALIS can be found at http://spring.ura.gov.sg/lad/ore/login/index.cfm. You can also contact the REALIS hotline at 6329 3456.
The supply of office, shop and factory space under construction is given in gross floor area as the developments have yet to be completed and hence the nett floor area is not available.
ANNEX E-1
SUMMARY OF KEY INFORMATION ON EXECUTIVE CONDOMINIUM (EC)
NUMBER OF EC UNITS LAUNCHED AND SOLD IN THE QUARTER
Quarter/Year
Number of New Units
Launched
Units Sold Directly by Developers 1
Uncompleted
Completed
2001
1Q/2001
2Q/2001
3Q/2001
4Q/2001
1,677
-
678
384
615
1,541
-
672
387
482
382
33
246
89
14
2002
1Q/2002
2Q/2002
3Q/2002
4Q/2002
894
-
-
665
229
718
81
33
391
213
-
-
-
-
-
2003
1Q/2003
2Q/2003
3Q/2003
4Q/2003
400
60
108
232
-
438
73
155
141
69
-
-
-
-
-
2004
1Q/2004
2Q/2004
3Q/2004
4Q/2004
160
84
-
-
76
226
134
38
29
25
4
-
-
2
2
2005
1Q/2005
2Q/2005
3Q/2005
4Q/2005
325
-
292
-
33
342
26
173
110
33
1
-
1
-
-
2006
1Q/2006
2Q/2006
-
94
76
53
-
-
1
This is compiled from the returns of the quarterly survey on licensed developers, based on option given by developers.
ANNEX E-2
SALE POSITION OF EC UNITS WITH PRE-REQUISITIES FOR SALE 1 AS AT END OF QUARTER
1Q/2006
2Q/2006
Percentage Change
(%)
Uncompleted Units Available
903
903
-
Launched
717
811
13.1
Sold 2
601
654
8.8
Unsold
116
157
35.3
Not Launched Yet
186
92
-50.5
Unsold Completed Units 3
0
0
-
1 Refers to executive condominiums with Housing Developer Licence and Building Plan Approval. Under the Housing Developer (Control & Licensing) Act, a sale licence must be obtained for projects with more than 4 units, if the developer intends to sell the residential units in the development. However, the sale of the residential units can commence with the approval of the building plans of the development.
2 Refers to units with sales and purchase agreements signed and given options to purchase.
3 Refers to unsold units in completed executive condominium projects.
For media enquiries, please contact:
Ms Ang Hwee Suan
Head, Public Relations
DID: 6321 8134
Email: Ang_Hwee_Suan@ura.gov.sg
Ms Gillian Tan
Executive Public Relations Officer
DID: 6321 8280
E mail: Gillian_tan@ura.gov.sg
Last Updated on Tuesday 24 April, 2007
Top of this page
Privacy Statement | Conditions of Access Copyright 2006, Urban Redevelopment Authority. All rights reserved.
Friday, April 7, 2006
Choosing who is going to move your home is an important decision. This is not the time to be shy. Make sure you fully understand the services each moving company offers and the rate at which the services can be provided.
Below is a list of questions the experts at TWO MEN AND A TRUCK® suggest asking moving companies to make sure they fit your needs.
*
Is the moving company licensed?
*
Does the company charge by the piece or by the hour?
*
Does the company have a minimum charge? How does the company charge after the minimum is met — in 15-minute increments or every half hour?
*
Does the company have any extra charges for larger items or extra flights of stairs? (This is not unusual.)
*
Does the company charge for the travel time from their office to your location?
*
Does the company charge extra for moves in the evenings or on the weekends?
*
What payment options do does the company offer? (Many moving companies require a deposit.)
*
Does the company have full-time employees or does the company use temps and day labor? (Be cautious of companies that use temps or day labor because they may not be properly insured.)
*
Does the company carry Worker’s Compensation for their employees?
*
What kind of training have the movers and drivers completed?
*
Are items insured during the move? (Even if a mover is bonded and insured, it doesn’t mean that your items are covered during the move.)
*
What kind of cancellation policy does the company offer? (You should always be able to cancel or postpone until a few days before your move.)
*
Does the company offer free estimates? (Getting an estimate for all moves is recommended.)
*
Does the company offer suggestions on how to make the move easier? (Movers who care about customer service and making your move a positive experience will do all they can to help you.)
*
Does the company have a contact number for the day of the move should any challenges arise?
By: TWO MEN AND A TRUCK®
Below is a list of questions the experts at TWO MEN AND A TRUCK® suggest asking moving companies to make sure they fit your needs.
*
Is the moving company licensed?
*
Does the company charge by the piece or by the hour?
*
Does the company have a minimum charge? How does the company charge after the minimum is met — in 15-minute increments or every half hour?
*
Does the company have any extra charges for larger items or extra flights of stairs? (This is not unusual.)
*
Does the company charge for the travel time from their office to your location?
*
Does the company charge extra for moves in the evenings or on the weekends?
*
What payment options do does the company offer? (Many moving companies require a deposit.)
*
Does the company have full-time employees or does the company use temps and day labor? (Be cautious of companies that use temps or day labor because they may not be properly insured.)
*
Does the company carry Worker’s Compensation for their employees?
*
What kind of training have the movers and drivers completed?
*
Are items insured during the move? (Even if a mover is bonded and insured, it doesn’t mean that your items are covered during the move.)
*
What kind of cancellation policy does the company offer? (You should always be able to cancel or postpone until a few days before your move.)
*
Does the company offer free estimates? (Getting an estimate for all moves is recommended.)
*
Does the company offer suggestions on how to make the move easier? (Movers who care about customer service and making your move a positive experience will do all they can to help you.)
*
Does the company have a contact number for the day of the move should any challenges arise?
By: TWO MEN AND A TRUCK®
5 Powerful Property Buying Strategies
In a perfect world, it would be easy to always be objective and make rational decisions based on sound information. In reality, emotions and timing often have a big effect. Sometimes the best you can do is to set the stage so that you minimize the subjective influences.
Give yourself power and control. Don’t find yourself in the position of “having” to buy and doing so in haste.
1. Work out the finances first. Paying cash? Getting a mortgage? Find out what you can afford and check out all your various options.
Meet with whatever experts you need to in order to have all your facts - a lender, your tax advisor, etc. Knowing exactly what you want to spend and can spend will eliminate time spent looking at properties you can’t have.
Not only that, when you find the right property you can make a “clean” offer without a financing contingency. Sellers are more likely to respond favorably to clean offers.
2. Unless you really want to own two properties, sell first. Then buy. First of all, the property you want will probably not take a contingency offer. So unless you are prepared to own both (and you have to plan for a worst case scenario) you are wasting your time with the offer.
Second, if you are emotionally attached to what you want to buy you won’t be as objective on selling your home. You may take less than it’s worth so that you don’t lose the other home. There’s nothing wrong with that as long as you understand the financial implications.
3. Use a realtor who knows the market. That may sound too simple in this age of the internet, when buyers have access to the same data the agent has. The difference is the ability to interpret that data.
Full-time realtors do more than show homes and write contracts. They study market trends and observe area fluctuations. You are thinking about your needs now. But your agent is thinking about both now and in the future when you are ready to sell again and looking for your future resale opportunities.
In addition, the internet is an increasingly non-objective source of information. Many websites do not display all the properties that are for sale in a given area because of contractual conflicts. And most new communities are not listed at all in any search vehicle. A professional realtor should be able to show you all the homes that fit your needs.
4. Wait till your toes curl. In other words, don’t get pressured into making a decision. When you find the right home you will know it (your toes will curl or the little hairs on the back of your neck will stand up).
That doesn’t mean look at 200 homes before you make a decision. Sometimes it’s the first home you see. But don’t let an agent, a seller, or a spouse, push you into something you don’t feel good about.
5. You can’t have it all. Decide what is most important in your next home and put it into perspective. If it’s location, or price, or view, or square footage, or school districts, or amenities, or whatever.
Remember that some things can be changed. Floors, kitchens, landscaping, etc. are all changeable. So if they are not perfect, they can be. But location, view, amenities, etc. are there forever.
No matter what your budget, the good fairy of real estate did not go - poof! There it is. It simply doesn’t happen.
Everyone has to make compromises. So decide what truly matters to you and put that at the top of your list. Give in on what doesn’t matter as much.
Follow these guidelines and you’ll get the home you desire.
By Crissie Cudd
Give yourself power and control. Don’t find yourself in the position of “having” to buy and doing so in haste.
1. Work out the finances first. Paying cash? Getting a mortgage? Find out what you can afford and check out all your various options.
Meet with whatever experts you need to in order to have all your facts - a lender, your tax advisor, etc. Knowing exactly what you want to spend and can spend will eliminate time spent looking at properties you can’t have.
Not only that, when you find the right property you can make a “clean” offer without a financing contingency. Sellers are more likely to respond favorably to clean offers.
2. Unless you really want to own two properties, sell first. Then buy. First of all, the property you want will probably not take a contingency offer. So unless you are prepared to own both (and you have to plan for a worst case scenario) you are wasting your time with the offer.
Second, if you are emotionally attached to what you want to buy you won’t be as objective on selling your home. You may take less than it’s worth so that you don’t lose the other home. There’s nothing wrong with that as long as you understand the financial implications.
3. Use a realtor who knows the market. That may sound too simple in this age of the internet, when buyers have access to the same data the agent has. The difference is the ability to interpret that data.
Full-time realtors do more than show homes and write contracts. They study market trends and observe area fluctuations. You are thinking about your needs now. But your agent is thinking about both now and in the future when you are ready to sell again and looking for your future resale opportunities.
In addition, the internet is an increasingly non-objective source of information. Many websites do not display all the properties that are for sale in a given area because of contractual conflicts. And most new communities are not listed at all in any search vehicle. A professional realtor should be able to show you all the homes that fit your needs.
4. Wait till your toes curl. In other words, don’t get pressured into making a decision. When you find the right home you will know it (your toes will curl or the little hairs on the back of your neck will stand up).
That doesn’t mean look at 200 homes before you make a decision. Sometimes it’s the first home you see. But don’t let an agent, a seller, or a spouse, push you into something you don’t feel good about.
5. You can’t have it all. Decide what is most important in your next home and put it into perspective. If it’s location, or price, or view, or square footage, or school districts, or amenities, or whatever.
Remember that some things can be changed. Floors, kitchens, landscaping, etc. are all changeable. So if they are not perfect, they can be. But location, view, amenities, etc. are there forever.
No matter what your budget, the good fairy of real estate did not go - poof! There it is. It simply doesn’t happen.
Everyone has to make compromises. So decide what truly matters to you and put that at the top of your list. Give in on what doesn’t matter as much.
Follow these guidelines and you’ll get the home you desire.
By Crissie Cudd
Pricing your home
Pricing your home is an art not a science. Achieving the optimal prices is the result of both objective research into similar properties and instinct in determining how much a buyer will be willing to pay for your home. The right price will attract showings, which will generate offers.
The unfortunate fact is that price is the number one factor that most homebuyers use to determine which homes they want to view. It’s also important to remember that although, you and your Realtor, set the asking price, the selling price is determined by the buyer.
The Correct Price Will:
* Result in a quicker sale, with less inconvenience to the seller
* Expose the property to more buyers
* Increase Realtor response
* Generate more ad calls
* Prevent your listing from getting stale
Typically homes that sell more quickly, sell closer to or sometimes over asking price.
Some Common Reasons for Overpricing
* Over improved property
* Original purchase price too high
* Desire “negotiating room”
Overpricing Pitfalls Most of the activity on your home will occur in the first few weeks. Pricing a home properly creates immediate urgency in the minds of buyers and agents. There is a pool of buyers who have seen most available homes in their price range and are now only waiting for new listings or price reductions. A buyer that has been waiting, may fail to see your home if it is priced too high. Sometimes, a price reduction may be too late, as interest by both buyers and Realtors, may have waned.
Buyers and their agents are very aware of the length of time on the market, the most common question continues to be: “How long has it been on the market?” Often buyers are reluctant to make an offer on a home that has been on the market for “awhile” thinking that there is something wrong with the home. Unfortunately, overpriced listings frequently help you to sell your neighbor’s reasonably priced home, making it appear that their home is priced very well.
The Role of a Real estate Agent in Pricing Provide you with a comparative market analysis, which is a comparison of recent homes with similar amenities that are available, in escrow and sold. There is no “exact price”; your home is worth what a buyer is willing to pay. The market determines value; together you and your agent determine asking price.
Realtors have no control over the market, only the marketing plan. The seller determines the asking price. Never select an agent based on price.
By Phyllis Harb
The unfortunate fact is that price is the number one factor that most homebuyers use to determine which homes they want to view. It’s also important to remember that although, you and your Realtor, set the asking price, the selling price is determined by the buyer.
The Correct Price Will:
* Result in a quicker sale, with less inconvenience to the seller
* Expose the property to more buyers
* Increase Realtor response
* Generate more ad calls
* Prevent your listing from getting stale
Typically homes that sell more quickly, sell closer to or sometimes over asking price.
Some Common Reasons for Overpricing
* Over improved property
* Original purchase price too high
* Desire “negotiating room”
Overpricing Pitfalls Most of the activity on your home will occur in the first few weeks. Pricing a home properly creates immediate urgency in the minds of buyers and agents. There is a pool of buyers who have seen most available homes in their price range and are now only waiting for new listings or price reductions. A buyer that has been waiting, may fail to see your home if it is priced too high. Sometimes, a price reduction may be too late, as interest by both buyers and Realtors, may have waned.
Buyers and their agents are very aware of the length of time on the market, the most common question continues to be: “How long has it been on the market?” Often buyers are reluctant to make an offer on a home that has been on the market for “awhile” thinking that there is something wrong with the home. Unfortunately, overpriced listings frequently help you to sell your neighbor’s reasonably priced home, making it appear that their home is priced very well.
The Role of a Real estate Agent in Pricing Provide you with a comparative market analysis, which is a comparison of recent homes with similar amenities that are available, in escrow and sold. There is no “exact price”; your home is worth what a buyer is willing to pay. The market determines value; together you and your agent determine asking price.
Realtors have no control over the market, only the marketing plan. The seller determines the asking price. Never select an agent based on price.
By Phyllis Harb
Sunday, January 15, 2006
URA to release more detailed property data
Business Times
By ARTHUR SIM
(SINGAPORE) The Urban Redevelopment Authority (URA) will release more information on the property market, including the creation of three price indices based on newly defined geographical regions.
It will also release data on sub-sale activity and provide the numbers of approved housing units in the pipeline, regardless of whether developers choose to launch these or not.
Explaining the rationale for these moves, Minister for National Development Mah Bow Tan said: ‘Members of the public are concerned about the level of speculative activity in the market. Some people think it’s going a bit too high, and too much.’
‘If the pipeline is strong, then it indicates that there is more than enough housing for people and that there is no need to rush,’ he added.
Mr Mah, who was speaking on the sidelines of the Edusave Scholarship and Merit Bursary Presentation Ceremony at Festival Park, Tampines, yesterday, also said: ‘Our desire is to provide for a more transparent market. Otherwise you get developers trying to talk up the market or people who have not bought yet trying to talk down the market.’
The additional data will be more ‘comprehensive’ and ‘holistic’, he said.
Flash estimates for Q4 2006 property price index released earlier this month revealed that the index had increased by 10 per cent year on year.
Some property analysts questioned whether this trend was reflective of the market, as mass-market prices had increased by only about 3 per cent, while high-end property prices were estimated to have soared by over 30 per cent.
Separate indices for different segments of the property market will provide a more disaggregated - and therefore more accurate - picture of the market.
By releasing data on sub-sale activity, the URA will also be providing a means to more accurately measure the degree of property speculation.
A sub-sale is broadly defined as the resale of a property bought directly from a developer prior to official completion of a new development.
The release of sub-sale figures could be seen as a tacit warning that the government is monitoring speculative activity. But as Mr Mah pointed out: ‘Speculative activity is part and parcel of any market.’ He added that he was in favour of letting the market ‘find its own level’.
Mr Mah also reiterated that the decision to provide more property data in no way suggests that the government was also looking into either releasing more sites for development (on top of those announced in its Government Land Sales programme) or that capital gains tax on property transactions could be introduced in the future. ‘That would be speculation on your part,’ he said to the assembled media.
The new property data will be released starting on Jan 26, together with the existing property price index (PPI). So far, industry players have responded to the upcoming changes positively.
Kwek Leng Joo, managing director of City Developments Ltd, owner of Singapore’s largest residential land bank, said: ‘We welcome this move as it will provide a clearer indication of property prices for the different segments of the market.’
The different segments or regions that the three new indices will focus on are: 1) Core areas of District 9, 10 and 11, as well as Sentosa and parts of Downtown CBD; 2) The Central Region (excluding the areas included in the first index) and; 3) Outside the Central Region.
Knight Frank director (research and consultancy) Nicholas Mak, who also welcomed the move, said it will ‘allay anxiety that growth in the high end market is causing runaway inflation’.
Mr Mak also pointed out that although this new data is already available to industry players who subscribe to URA’s property data base called Realis, ‘consultants have in the past been free to come up with their own sub-indices’.
‘The new indices will have a more authoritative position,’ he said.
Chesterton International head of research and consultancy Colin Tan, who believes the existing PPI can be used to ‘talk up the market’, also welcomed the new indices as they will help confine this practice to ’speculative properties’.
Mr Tan also reckoned that a price index that covers private property outside the Central Region will help allay fears in the mass market and prevent ‘panic buying’.
Savills Singapore director (marketing and business development) Ku Swee Yong said that foreign buyers, who are largely credited for pushing up prices of high-end properties, will also see the move as positive. ‘Most will be happy because it will show that Singapore’s property market is transparent,’ he said.
Mr Ku expects that the data on sub-sale activity will confirm his belief that property speculation is still negligible. ‘Speculative activity is only confined to about 500 units,’ he said.
By ARTHUR SIM
(SINGAPORE) The Urban Redevelopment Authority (URA) will release more information on the property market, including the creation of three price indices based on newly defined geographical regions.
It will also release data on sub-sale activity and provide the numbers of approved housing units in the pipeline, regardless of whether developers choose to launch these or not.
Explaining the rationale for these moves, Minister for National Development Mah Bow Tan said: ‘Members of the public are concerned about the level of speculative activity in the market. Some people think it’s going a bit too high, and too much.’
‘If the pipeline is strong, then it indicates that there is more than enough housing for people and that there is no need to rush,’ he added.
Mr Mah, who was speaking on the sidelines of the Edusave Scholarship and Merit Bursary Presentation Ceremony at Festival Park, Tampines, yesterday, also said: ‘Our desire is to provide for a more transparent market. Otherwise you get developers trying to talk up the market or people who have not bought yet trying to talk down the market.’
The additional data will be more ‘comprehensive’ and ‘holistic’, he said.
Flash estimates for Q4 2006 property price index released earlier this month revealed that the index had increased by 10 per cent year on year.
Some property analysts questioned whether this trend was reflective of the market, as mass-market prices had increased by only about 3 per cent, while high-end property prices were estimated to have soared by over 30 per cent.
Separate indices for different segments of the property market will provide a more disaggregated - and therefore more accurate - picture of the market.
By releasing data on sub-sale activity, the URA will also be providing a means to more accurately measure the degree of property speculation.
A sub-sale is broadly defined as the resale of a property bought directly from a developer prior to official completion of a new development.
The release of sub-sale figures could be seen as a tacit warning that the government is monitoring speculative activity. But as Mr Mah pointed out: ‘Speculative activity is part and parcel of any market.’ He added that he was in favour of letting the market ‘find its own level’.
Mr Mah also reiterated that the decision to provide more property data in no way suggests that the government was also looking into either releasing more sites for development (on top of those announced in its Government Land Sales programme) or that capital gains tax on property transactions could be introduced in the future. ‘That would be speculation on your part,’ he said to the assembled media.
The new property data will be released starting on Jan 26, together with the existing property price index (PPI). So far, industry players have responded to the upcoming changes positively.
Kwek Leng Joo, managing director of City Developments Ltd, owner of Singapore’s largest residential land bank, said: ‘We welcome this move as it will provide a clearer indication of property prices for the different segments of the market.’
The different segments or regions that the three new indices will focus on are: 1) Core areas of District 9, 10 and 11, as well as Sentosa and parts of Downtown CBD; 2) The Central Region (excluding the areas included in the first index) and; 3) Outside the Central Region.
Knight Frank director (research and consultancy) Nicholas Mak, who also welcomed the move, said it will ‘allay anxiety that growth in the high end market is causing runaway inflation’.
Mr Mak also pointed out that although this new data is already available to industry players who subscribe to URA’s property data base called Realis, ‘consultants have in the past been free to come up with their own sub-indices’.
‘The new indices will have a more authoritative position,’ he said.
Chesterton International head of research and consultancy Colin Tan, who believes the existing PPI can be used to ‘talk up the market’, also welcomed the new indices as they will help confine this practice to ’speculative properties’.
Mr Tan also reckoned that a price index that covers private property outside the Central Region will help allay fears in the mass market and prevent ‘panic buying’.
Savills Singapore director (marketing and business development) Ku Swee Yong said that foreign buyers, who are largely credited for pushing up prices of high-end properties, will also see the move as positive. ‘Most will be happy because it will show that Singapore’s property market is transparent,’ he said.
Mr Ku expects that the data on sub-sale activity will confirm his belief that property speculation is still negligible. ‘Speculative activity is only confined to about 500 units,’ he said.
Sunday, January 1, 2006
Singapore
Singapore
Other country facts
Rating:
Property in Singapore is plentiful and good quality. The use of a professional property agent is recommended. Most property companies share a national database of property listings in Singapore; therefore working with a single agent avoids duplication of effort.
Singapore Dollar : SGD. 1 Singapore Dollar equates to 0.627 US Dollars compared with an exchange rate of 0.583 at the end of 2003. Therefore relative fluctuation against property purchases in dollar ‘pegged’ currencies. However, in line with world currency market movement.
Economic climate : Singapore has staged a recovery in 2005 following 2003’s SARS crisis which severely impacted the tourism and property sectors. Property prices have lagged behind neighboring South Asia economies by 40 to 60 percent however housing prices rose 1.1 percent and high end apartments and condominiums by 4.1 percent in the 3rd quarter of 2005, the biggest quarterly increase in five years. Rental returns remain strong.
Capital Gains Tax : CGT is no longer imposed upon the sale of residential properties in Singapore.
Popular Areas : Prime residential districts close to the Orchard Road shopping and entertainment belt including Orchard, Tanglin, Holland and River Valley. Other attractions are Bukit Timah and Hillview in the West and Tanjong Rhu on the East side.
Price ranges : US$ 90,000 rising to US$ 1.5 million, dependent on location, inner city real estate in good areas is much more expensive. Annual Property Tax is 4% for wholly owner-occupied residential properties and 10% for other properties based on the annual estimated rental value.
Budgetary guide : Apartments 2/3 bedrooms: US$ 90,000 to 220,000. Terraced houses: US$ 140,000 to 250,000, Semi-Detached houses 3 to 5 bedrooms: US$ 170,000 to 350,000. Bungalows 3 to 5 bedrooms: US$ 170,000 to 470,000. Luxury Bungalows: US$ 270,000 to 750,000.
Overseas Investors : Foreigners may purchase apartments in a building of any number of levels or designated condominium development. Prior approval from the Singapore Land Authority must be obtained to buy ‘Restricted property’, e.g. bungalows and houses with land.
Service Fees : Stamp duty and legal fees represent approximately 3% of the sale price. An ‘Option to Purchase’ demands a non-refundable payment of 1% of the purchase price for ‘resale apartments’ and 5% for ‘off plan apartments’ which instigates a 14-day review period but forms part of the mandatory 10% deposit if the sale proceeds. Purchaser’s agent commission is 1% of Sale price.
Mortgages : A purchaser of a ‘private residential property” can now secure a loan of up to 90% of the lower of the valuation or purchase price. The deposit of 10% can be paid as 5% in cash and if applicable 5% drawn from the Central provident fund (CPF). Most international banks operate in Singapore. Interest rates average between 2 and 3.5 % per annum dependent on loan type.
Other country facts
Rating:
Property in Singapore is plentiful and good quality. The use of a professional property agent is recommended. Most property companies share a national database of property listings in Singapore; therefore working with a single agent avoids duplication of effort.
Singapore Dollar : SGD. 1 Singapore Dollar equates to 0.627 US Dollars compared with an exchange rate of 0.583 at the end of 2003. Therefore relative fluctuation against property purchases in dollar ‘pegged’ currencies. However, in line with world currency market movement.
Economic climate : Singapore has staged a recovery in 2005 following 2003’s SARS crisis which severely impacted the tourism and property sectors. Property prices have lagged behind neighboring South Asia economies by 40 to 60 percent however housing prices rose 1.1 percent and high end apartments and condominiums by 4.1 percent in the 3rd quarter of 2005, the biggest quarterly increase in five years. Rental returns remain strong.
Capital Gains Tax : CGT is no longer imposed upon the sale of residential properties in Singapore.
Popular Areas : Prime residential districts close to the Orchard Road shopping and entertainment belt including Orchard, Tanglin, Holland and River Valley. Other attractions are Bukit Timah and Hillview in the West and Tanjong Rhu on the East side.
Price ranges : US$ 90,000 rising to US$ 1.5 million, dependent on location, inner city real estate in good areas is much more expensive. Annual Property Tax is 4% for wholly owner-occupied residential properties and 10% for other properties based on the annual estimated rental value.
Budgetary guide : Apartments 2/3 bedrooms: US$ 90,000 to 220,000. Terraced houses: US$ 140,000 to 250,000, Semi-Detached houses 3 to 5 bedrooms: US$ 170,000 to 350,000. Bungalows 3 to 5 bedrooms: US$ 170,000 to 470,000. Luxury Bungalows: US$ 270,000 to 750,000.
Overseas Investors : Foreigners may purchase apartments in a building of any number of levels or designated condominium development. Prior approval from the Singapore Land Authority must be obtained to buy ‘Restricted property’, e.g. bungalows and houses with land.
Service Fees : Stamp duty and legal fees represent approximately 3% of the sale price. An ‘Option to Purchase’ demands a non-refundable payment of 1% of the purchase price for ‘resale apartments’ and 5% for ‘off plan apartments’ which instigates a 14-day review period but forms part of the mandatory 10% deposit if the sale proceeds. Purchaser’s agent commission is 1% of Sale price.
Mortgages : A purchaser of a ‘private residential property” can now secure a loan of up to 90% of the lower of the valuation or purchase price. The deposit of 10% can be paid as 5% in cash and if applicable 5% drawn from the Central provident fund (CPF). Most international banks operate in Singapore. Interest rates average between 2 and 3.5 % per annum dependent on loan type.
Subscribe to:
Posts (Atom)
