http://www.businesstimes.com.sg

05:55 AM Sep 17, 2010
Ephraim Seow Siew Lee

The dizzying rise in property prices here is not sustainable and the market may be heading for a hard landing in one to two years' time.

When that happens, property values may fall by as much as 50 per cent, according to an expert at a real estate forum yesterday.

Property experts speaking at the National University of Singapore's Institute of Real Estate Studies Forum said that excess liquidity in the market is the main factor that has been driving up property prices recently.

This liquidity may originate from prudent savings during the financial crisis, gains from the stock market run-up last year and foreign funds flowing here in search of better returns in Asian and emerging markets.

Mr Beat Lenherr, global chief strategist of LGT Capital Management, said: "I think that the money is finding a way around specific pointed measures and the money is just going to all the segments, micro-markets or micro-sectors."

Mr Lenherr also reckoned that the recent rally is not well supported and has been too fast, paving for a harder fall.

"If you look at the developments over the last four years, you clearly see elements of exaggerations where it doesn't make sense to buy in terms of rental yields or expected capital gains," Mr Lenherr added.

As such, he said property prices may "collapse by 30, 40 or 50 per cent" in the next one to two years.

Other speakers at the forum also said that the Singapore Government is still holding back on several other drastic measures such as the capital gains tax, which could dampen the property market abruptly if introduced.

They said the Government has so far been successful in building good neighbourhoods and community in its housing policies beyond controlling prices.

"I think the local market has been kept quite steady. I think the Government can indeed take pride in being able to making available affordable housing to more than 70 or 85 per cent of the masses," said Professor Bernard Yeung, Dean of NUS Business School. Ephraim Seow

Source: http://www.todayonline.com

Price expectations for the freehold office block are $1,500 psf of NLA

THE Singapore Technologies Building in the Tanjong Pagar area has been put on the market.

Price expectations for the 13-storey freehold office block, completed in 1986, are $1,500 per square foot of net lettable area (NLA) and above. Based on the building's current NLA of 98,906 sq ft, a price of $1,500 psf reflects an absolute sum of $148.4 million. The office block's current occupancy rate is close to 90 per cent.

The property is not being pitched for redevelopment potential as the current existing gross floor area of about 128,600 sq ft reflects a plot ratio of about 6.6 - which is higher than the 5.6 plot ratio assigned to the site under Master Plan 2008. The site is zoned for commercial use.

However, there is scope for additions and alterations work that could carve out more NLA and boost the property's rental profile, says Jones Lang LaSalle's national director (investment sales) Anthony Barr.

Jones Lang LaSalle has been appointed by the property's owner, Singapore Technologies group, to conduct an expressions of interest campaign for the sale of the property. The closing date for submissions is Nov 4. The building has ample car parking of 135 lots and is located at the corner of Cantonment and Lim Teck Kim roads. Vehicular access is via the laneway off Cantonment Road, allowing users to access the building without incurring Electronic Road Pricing charges, JLL highlighted.

'The building is currently occupied by various office tenants and provides the buyer with exposure to the improving CBD office rent cycle in addition to potential for further enhancement via refurbishment and asset management initiatives,' it added.


The building has ample car parking of 135 lots and is at the corner of Cantonment and Lim Teck Kim roads.

Source: http://www.businesstimes.com.sg

SING Holdings has inked a deal to buy Robin Court and the next door 1 Robin Drive for a total $77.33 million.


This works out to about $1,363 per square foot of potential gross floor area.

No development charge is expected, Sing Holdings said in a regulatory filing with the Singapore Exchange yesterday.

The two freehold District 10 properties have a combined land area of about 40,518 square feet and are zoned for residential use with a 1.4 plot ratio (ratio of maximum potential gross floor area to land area).

Robin Court involves a collective sale and is subject to approval from the Strata Titles Board.

The properties were sold through a tender exercise handled by Credo Real Estate and which drew 10 bids. Sing Holdings was the highest bidder. When the tender was launched, the asking price was indicated as $66 million to $74 million.

Published September 20, 2010

Source: http://www.businesstimes.com.sg

05:55 AM Sep 11, 2010
by Joanne Chan

SINGAPORE - Almost two weeks after the Government unveiled its latest round of property cooling measures, demand was high for the newest condominium project to hit the market.

On Friday, the afternoon rain did not deter the interest of home-seekers who flocked to NV Residences in Pasir Ris, the latest condo to be launched.

Huttons, the marketing agent for NV Residences, said the cooling measures have weeded out the speculators but there was still a "healthy demand" from those looking for a unit for owner-occupation or mid- to long-term investment.

One buyer, a 48-year-old IT trainer, bought a 2-bedroom unit for rental investment. He said the recent changes, which includes a higher cash outlay, meant he had to lower his expectations and buy a smaller unit.

Huttons Asia senior associate director Daniel Lim noted a greater interest from permanent residents in the project - and he attributed this partly to the anti-specutive measures.

Said Mr Lim: "In order for them to buy an HDB resale flat now, they would have to give up their properties back home ... So perhaps due to this, PRs are more keen to buy private property now."

At 5pm on Friday, the condo's developer, City Developments Limited, said 40 units have been sold since Wednesday's launch. This brings the total number of units sold to 200, out of the 250 units released so far.

Suntec Chesterton International head of research and consultancy Colin Tan observed: "For some investors and buyers who are on the margins, (the cooling measures) would make them think twice or even go for smaller flats. But there are still lots of other people who are interested, so they probably more than make up for those who fall by the wayside."

Mr Tan said the response to NV Residences would probably give other developers the confidence to go ahead with their launches. And prices are likely to maintain at current levels or even rise further, fuelled by continued demand, he added.

Source: http://www.todayonline.com