Property Update (2 July 2015)

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More large apartments put up for mortgagee sale in H1 | asiaone.com

SINGAPORE : There was a spike in the number of large apartments – defined as residential units above 1,500 sq ft – being put up for mortgagee sale at auctions in the first six months of this year, reflecting the challenging resale climate in this segment of the market.

Sizable non-landed homes included a 5,059 sq ft unit at Residences at Killiney in District 9, and a 4,133 sq ft unit at Seascape @ Sentosa Cove in District 4.

Large apartments, which were popular during the market boom in 2007 and 2008, are now languishing in demand due to affordability concerns following stringent loan curbs, said deputy managing director of Colliers International, Grace Ng.

On the demand side, decreases in housing budgets among expatriates and increasing interest rates have softened both foreign and local buying interest, noted a press release from Colliers International.

On the supply side, there has been a competitive number of newly completed homes for rent. As at the first quarter of 2015, more than 18,000 non-landed private residential properties are due for completion by the end of this year, followed by another 20,000 in the next year. Read more >>


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HDB trims number of BTO flats on offer | asiaone.com

The Housing Board has cut the number of Build-To-Order (BTO) flats to be offered this year to 15,000, down from the 16,900 it had planned initially.

The move is in the light of the stabilising resale market, the HDB said in a statement yesterday.

Flash figures showed that HDB resale prices fell 0.4 per cent in the second quarter of the year.

Large-scale launches of new flats “have helped to moderate demand and therefore stabilise resale HDB prices”, said ERA Realty key executive officer Eugene Lim.

“This is especially so for the Sale of Balance Flats (SBF) launches, as they are typically seen as substitutes for resale flats, given the shorter waiting time to vacant possession,” he added.

This is the second year in which the Housing Board is tapering down BTO supply, after three years of ramped-up building from 2011 to 2013. Read more >>

A slowdown in rental growth could be a result of slower demand in the face of the uncertain global situation, says property consultant DTZ.

A slowdown in rental growth could be a result of slower demand in the face of the uncertain global situation, says property consultant DTZ.

Office rents in CBD remain sluggish in Q2: DTZ | channelnewsasia.com

SINGAPORE : Average office rents in the Central Business District (CBD) area in the second quarter of the year stayed flat quarter-on-quarter at S$10.85 per sq ft, property consultant DTZ said in a news release on Wednesday (Jul 1).

According to DTZ, the slowdown in rental growth was also a result of slower demand in the face of uncertain global situations such as the risk of a sharp correction in China’s real estate market, or the possible default and exit of Greece from the Eurozone. However, it said the net demand growth in the CBD was still positive.

In H1 2015, net demand was 526,000 sq ft, almost 90 per cent higher than the 277,000 sq ft registered in H2 last year. Office occupancy in Raffles Place grew the most by 4.1 percentage points to 96.6 per cent and occupancy rates in the Beach Road/North Bridge Road micromarket inched up by 0.7 percentage point in Q2, DTZ added.

As for the average monthly gross rents in Marina Bay, it remained the highest at S$13.75 per sq ft, followed by Raffles Place at S$10.80 per sq ft, it added.

While rents were supported by the lack of new completions for the rest of 2015, DTZ said leasing activity was modest on the back of the 4.45 million sq ft of pipeline supply in 2016. Major 2016 developments in the CBD include Guoco Tower, Marina One, and Duo Tower totalling about 3.3 million sq ft. Read more >>

City Harvest Church founder and co-owner paid $9.33m for luxury duplex unit in 2007

City Harvest Church founder and co-owner paid $9.33m for luxury duplex unit in 2007

City Harvest Church founder Kong Hee puts Sentosa Cove home for sale for $10m | straitstimes.com

SINGAPORE : City Harvest Church (CHC) founder Kong Hee has put his luxurious penthouse family home in Sentosa Cove up for sale.

He and a co-owner are asking a cool $10 million for the duplex unit, more than the $9.33 million they paid in 2007.

Kong and five others are alleged to have misused $50 million of church funds and then falsified church accounts to cover up the misuse. They are accused of funnelling millions from the church’s building fund to pay for the Crossover Project, to boost the music career of Kong’s wife Ho Yeow Sun. Read more >>

Property Brothers. Wei Kiat Management and Development vice president Chris Ang (left) listens to his brother, Don, company president, present their plans for Cebu and the Philippines. Wei Kiat Management and Development is developing a condominium project in Nivel Hills called La Nivea, which they say has the lowest price point in the area.

Property Brothers. Wei Kiat Management and Development vice president Chris Ang (left) listens to his brother, Don, company president, present their plans for Cebu and the Philippines. Wei Kiat Management and Development is developing a condominium project in Nivel Hills called La Nivea, which they say has the lowest price point in the area.

Singaporean group sees real estate growth in Cebu | sunstar.com.ph

PHILIPPINES : Noting flat growth in their own economy, a Singaporean company said it will focus its expansion in emerging markets in Southeast Asia, particularly the Philippines.

Wei Kiat Management and Developments Inc., whose business is in property development, announced that it is committed to support the country’s robust real estate industry by developing more projects, first in Cebu and to be followed in other parts of the country.

“Singapore’s economy is standing still. The ones that can survive are the big, listed companies. I think it is better to expand in Asean (Southeast Asian countries),” said Wei Kiat president Don Ang during the ground breaking ceremony of its P750 million condominium project La Nivea in Nivel Hills. Read more >>

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