Singapore Real Estate Market Review September 2009

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Introduction – Monthly Property Market Update for September 2009

 

Two years after scrapping the Deferred Payment Scheme which effectively truncated the spectacular bull-run in 2007, the government has wielded the big axe again – this time by scrapping the Interest Absorption Scheme (IAS) and the Interest Only Loan (IOL). This move may well have the same effect on the property market like two years ago.
 
Following Minister Mah Bow Tan’s announcement to withdraw IAS and IOL, the Monetary Authority of Singapore (MAS) has also announced the probable increase in capital requirements for local banks.  The de-facto central bank also made clear its stand on medium-term price stability for the property market.
 
In fact, the MAS’ recent policy stance will have a much deeper impact on the demand for private homes because one can now expect to see more stringent credit controls by lenders in general.
 
 
(A) OVERVIEW OF THE LARGER ECONOMY
 
 
[A.1] SINGAPORE NOW HOME TO FIVE MILLION PEOPLE
 
Singapore will be home to more than five million people by 2010. We now have 4.99 million residents as a result of a 3.1% increase in the population, primarily through the very ‘pro-active’ immigration-friendly policy. This is despite more economic migrants having ‘gone home’ since jobs have become tough to come by recently. The growth in population was the slowest since 2007.
 
There is now a sizeable numbers of permanent residents (PRs) and guest workers on permits, relative to the citizen component.  The Singapore population profile is a one-third foreigner content of 1.8 million. It breaks down to 1.25 million transients and 533,000 PRs.
 
[A.2] JOBLESS RATE FELL FOR THE WRONG REASONS – MANY GRADUATES PURSUE FURTHER STUDIES
 
According to a Straits Times report on 16 September 2009, eight in 10 local residents were chronically unemployed as of June this year. This means that they had been unsuccessful to land themselves a job after 25 weeks of searching. The majority of them are university graduates in their 30s and 40s, and the lowly-educated in their 40s.
 
In all, Singapore lost 13,900 jobs in the first half. This is 26% lower than the estimate of 18,800 by the Ministry of Manpower (MOM).
 
A September report by MOM showed unemployment at 3.3% in the second quarter (Q2) of 2009. At the same time, the resident unemployment rate fell from 4.8% to 4.6%. But the reason for the decline was that many stopped seeking jobs to pursue courses, which means they are no longer counted as unemployed.
 
Manpower Minister Gan Kim Yong was quoted as saying that the employment outlook remains uncertain; and the labour market is likely to remain weak for the rest of the year.
 

 
(B) OVERALL PERFORMANCE OF PRIVATE RESIDENTIAL PROPERTY SEGMENT
 
 
New home sale volume in September 2009 was well supported by the remnant projects which had earlier received the authority’s blessing to use the now-defunct Interest Absorption Scheme (IAS). With a respectable 1,143 new units transacted in the aftermath of the scrapping of the IAS and Interest Only Loans, the grand total of new home units sold thus far this year is standing tall at 12,959 units. The whole year sale volume for new home units might even surpass the historic peak achieved in 2007.
 
Transacted prices are also very respectable with the freehold Hundred Trees in the old Hong Leong Garden site commanding a median price of $941 psf, with more expensive units going beyond $1,200 psf.
 
[B.1] NEW HOME SALE EASED IN SEPTEMBER 2009 COMPARED MONTH-ON-MONTH
 
However, when compared month-on-month the new home sale volume has eased in August 2009 and further in September. Sales volume in the new home segment appears to be on a slippery slope. But the buying mood can still be considered generally optimistic with good units still flying off the shelves within days of the project’s launch.
 
Table [1] below shows the phenomenal performance of the new home segment starting in the past 9 months of 2009.
 
Table [1] – Comparison of new home units sold in the past 9 months of 2009

2009	Total Number of Units in Project	Cumulative Units Launched to-date	Cumulative Units Sold to-date	Cumulative Units Launched but Unsold	Units Launched in the Month	Units Sold in the Month
January	48128	32197	27870	4327	204	107
February	48371	33244	29168	4076	1069	1,323
March	48,902	34,048	30,314	3,734	832	1,220
April	48,821	34,645	31,025	3,620	1,083	1,207
May	49,223	35,802	32,656	3,146	1,161	1,668
June	50,490	37,371	34,389	2,982	1,637	1,825
July	50,884	39,893	36,898	2,995	2,878	2,767
Aug	53,047	41,269	38,256	3,013	1,641	1,699
Sept	52,803	41,989	38,832	3,157	1,413	1,143
Total New Home Units Sold so far						12,959

Source of Data: URA website

[B.1.1] OCR was the star performer this year
 
Table [2] shows the total transactions at the respective regions over the past 9 months, with the Outside Central Region (OCR) chalking up the most impressive sales volume so far this year.
 
In fact, while CCR and RCR had lost 66.15% and 40.30% respectively in sales volume in September 2009; the sales volume in OCR gained 6.0% in September 2009 with strong sale performance coming from the aforesaid freehold Hundred Tree project in the west coast area.
 
In all, 43.67% of all the new home units sold so far this year took place in the outlaying areas, with only 21.82% and 34.5% sold at the Core Central Region (CCR) and the Rest of Central Region (RCR).
 
 
Table [2] –   Sale volume of the three regions i.e. CCR, OCR & RCR over the past 9 months

2009	JAN	FEB	MAR	APR	MAY	JUN	JUL	AUG	SEPT
CCR	13	102	133	322	617	526	514	449	152
RCR	49	381	300	362	609	867	751	722	431
OCR	45	840	787	523	442	432	1,502	528	560
TOTAL	107	1,323	1,220	1,207	1,668	1,825	2,767	1,699	1,143

 

TOTAL	%
2,828	21.82%
4,472	34.50%
5,659	43.67%
12,959 NEW UNITS

 

Source of Data: URA website

 

The three charts below show a different perspective of the sale performances at the various regions in Singapore. All three markets appear to have past their prime for this year and with the IAS and IOL being shown the door, buying activities are expected to calm down significantly from now on.

 

Chart [1] - New home sale volume at Core Central Region

Source of Data: URA website & Worldview Development Consultant Pte Ltd

 

Chart [2] - New home sale volume at Rest of Central Region

Source of Data: URA website & Worldview Development Consultant Pte Ltd

 

 

 

Chart [3] - New home sale volume at Outside Central Region

Source of Data: URA website & Worldview Development Consultant Pte Ltd

[B.2] LUXURY MARKET SHOWED SOME SIGN OF LIFE BUT IT MAY BE TOO EARLY TO POP CHAMPAGNE
 
The luxury market segment saw some ‘pink’ signs in August 2009 with 11 new home units in the District 9 and 10 areas changing hand at higher than the psychological benchmark of $2,500 psf, including the following:
 
THREE units at The Orchard Residences were sold at $2,780 psf, $3,499 psf and $4,099 psf respectively.
THREE units at Nassim Park Residences were sold at $2,782 psf, $2,829 psf and $3,403 psf respectively.
THREE units at Orchard View were sold at $3,057 psf, $3,155 psf and $3,181 psf respectively.
ONE unit was sold at The Hamilton Scotts at a median price of $3,313 psf.
ONE unit at Scotts Square was sold for the highest median price of $4,304 psf in August 2009. This was a rare phenomenon this year.
 
Likewise in September 2009, NINE brand new luxury units broke the psychological barrier of $2,500 psf with some super-rich individuals shelling out more than $3,000 psf to acquire SIX out of 10 units launched at Seven Palms at Sentosa Cove. Here are the statistics:
 
SIX units at Seven Palms Sentosa cove were sold at a median price of $3,273 psf. The cheapest unit went for $3,091 psf and the highest psf price was $3,353 psf.
TWO units at Nassim Park Residences were sold at a median price of $3,062 psf; with the lowest psf price at $2,856 psf and the highest psf price at $3,268.
One unit at District 9 Alba condo by Far East Organisation was sold at $2,500 psf.
 
While the higher-than-$3,000 psf prices were not unprecedented, it had been a long while since the high-end market was abuzz with such optimism.
 
In fact, according to a Straits Times report on 16 September, two transactions at above the $4,000 psf level were recorded for August 2009 - Scotts Square ($4,304 psf) and The Orchard Residences ($4,099 psf). The last time the market saw transactions at above the $4,000 psf mark was in May 2008 when four units at Scotts Square were sold at prices ranging from $3,779 to $4,612 psf.
 
[B.3] TRANSACTIONS OF HIGH-END HOMES IMPROVED OVER THE PAST TWO MONTHS
 
[B.3.1] More high-end homes in District 9 exceeding the psychological $2,500 psf mark
 
In August 2009, out of the total 287 transactions in District 9, only FIVE transactions [Table 2.1] or a mere 1.74% of the total exceeded the psychological benchmark of $2,500 psf. In the meantime, 52 or 18.12% out of the total transactions exceeded the $3,000,000 mark.
 
In September 2009, there were so far 117 transactions in District 9; however already FOUR transactions [Table 2.2] or 3.42% (1.7% in August 2009) of the total had surpassed the psychological benchmark of $2,500 psf. And 32 or 27.35% (18.12% in August 2009) of the total transactions exceeded the $3,000,000 mark. The September sales data will be further updated by URA later this month and the total number of transactions will be different.
 

Table [2.1] – District 9 Transactions exceeding the psychological $2,500 psf mark in August 2009

	Postal	Project	Floor area	Floor rate ($ psf)	Sale price	Contract dates
1	D 9	The Hamilton Scotts	2,756	2,536	6,987,000	Aug-09
2	D 9	The Tate Residence	2,196	2,600	5,709,600	Aug-09
3	D 9	The Hamilton Scotts	2,756	2,783	7,668,000	Aug-09
4	D 9	Orchard Scotts	2,497	2,790	6,967,650	Aug-09
5	D 9	The Hamilton Scotts	2,756	3,000	8,268,000	Aug-09

Source of Data: URA website

 

Table [2.2] – District 9 Transactions exceeding the psychological $2,500 psf mark in September 2009

	Postal	Project	Floor area	Floor rate ($psf)	Sale price	Contract dates
1	D 9	The Tate Residence	2,185	2,500	5,462,500	Sep-09
2	D 9	Orchard View	2,530	3,057	7,733,198	Sep-09
3	D 9	Orchard View	2,530	3,155	7,981,559	Sep-09
4	D 9	Orchard View	2,530	3,181	8,046,918	Sep-09

Source of Data: URA website

[B.3.2] More high-end homes in District 10 exceeding the psychological $2,500 psf mark

 

In District 10, a total of 263 high-end homes were transacted with TEN transactions [Table 2.3] or 3.8% of the total exceeding the psychological benchmark of $2,500 psf. Out of the total transaction, 95 or 36.12% of them exceeded the $3,000,000 mark.

 

In September 2009, there were so far a total of 148 transactions in District 10, but already SEVEN transactions [Table 2.4] or 4.73% (3.8% in August 2009) of the total had exceeded the psychological benchmark of $2,500 psf.  Out of the total transactions, 46 or 31.08% (36.12% in August 2009) of them exceeded the $3,000,000 mark.

 

Table [2.3] – District 10 Transactions exceeding the psychological $2,500 psf mark in August 2009

	Postal	Project	Floor area	Floor rate ($ psf)	Sale price	Contract dates
1	D 10	Ardmore Park	2,885	2,531	7,300,000	Aug-09
2	D 10	Ardmore II	2,024	2,644	5,350,000	Aug-09
3	D 10	Ardmore Park	2,885	2,687	7,750,000	Aug-09
4	D 10	The Orchard Residences	2,852	2,720	7,757,440	Aug-09
5	D 10	The Orchard Residences	2,174	2,750	5,978,500	Aug-09
6	D 10	The Orchard Residences	2,174	2,780	6,043,720	Aug-09
7	D 10	Nassim Park Residences	3,466	2,782	9,643,500	Aug-09
8	D 10	The Orchard Residences	2,465	2,880	7,099,900	Aug-09
9	D 10	Nassim Park Residences	3,175	3,082	9,785,000	Aug-09
10	D 10	The Orchard Residences	2,465	3,338	8,228,170	Aug-09

Source of Data: URA website

 

Table [2.4] – District 10 Transactions exceeding the psychological $2,500 psf mark in September 2009

1	D 10	St Regis Residences	1,959	2,501	4,900,000	Sep-09
2	D 10	Ardmore II	2,024	2,520	5,100,000	Sep-09
3	D 10	St Regis Residences	2,486	2,649	6,587,900	Sep-09
4	D 10	Ardmore Park	2,885	2,870	8,280,000	Sep-09
5	D 10	Nassim Park Residences	3,477	3,403	11,832,000	Sep-09
6	D 10	The Orchard Residences	2,174	3,499	7,609,000	Sep-09
7	D 10	The Orchard Residences	2,852	4,099	11,693,200	Sep-09

Source of Data: URA website

 

However, the budding high-end property market may well be snubbed by the recent global stock market correction and the policy stance of the Monetary Authority of Singapore (MAS) to ensure medium-term property price stability. Furthermore, with the MAS’ call to increase capital requirements of local banks, the liquidity that fuelled the recent rally may be severely curtailed from now on.

 

 

[B.3] NEW HOME SALE PERFORMANCE IN DIFFERENT REGIONS

 

[B.3.1] Sale of NEW home units in Core Central Region (CCR) dropped in September

 

Below are two tables showing the sales performance of new home units in the Core Central Region (CCR) in August and September 2009.

 

Table [3] – New home units sold in CCR in August 2009

	Project Name	Units launched so far but UNSOLD	Units Sold in the Month	Lowest Price ($psf)	Highest Price ($psf)	Median Price ($ psf)
1	VIVA	17	203	1,385	1,846	1,537
2	Sophia Residence	62	43	1,163	1,952	1,504
3	Madison Residences	19	37	1,567	1,745	1,661
4	Latitude	26	27	1,650	1,927	1,786
5	Belle Vue Residences	0	17	1,452	2,416	1,831
6	Rochelle At Newton	0	13	878	1,217	1,113
7	8 Rodyk	16	8	1,288	1,746	1,548
8	Lush on Holland Hill	10	8	1,340	1,594	1,520
9	Shelford Suites	2	7	1,427	1,490	1,457
10	Martin Place Residences	8	6	1,482	1,872	1,650
11	Miro	5	5	1,473	1,640	1,559
12	The Promont	5	5	1,852	1,984	1,920
13	Volari	3	5	1,763	2,162	2,058
14	Luma	21	4	1,682	1,755	1,731
15	Residences @ Killiney	3	4	1,504	1,762	1,712
16	Shelford 23	0	4	1,202	1,275	1,210
17	The Lincoln Residences	34	4	1,220	1,322	1,282
18	Verdure	0	4	1,290	1,379	1,290
19	Vida	35	4	2,049	2,258	2,165
20	Ferrell Residences	3	3	1,684	1,860	1,749
21	Nassim Park Residences	4	3	2,782	3,403	2,829
22	Orchard View	0	3	3,057	3,181	3,155
23	Parc Mackenzie	14	3	1,152	1,194	1,184
24	The Orchard Residences	0	3	2,780	4,099	3,499
25	Icon	13	2	1,764	1,765	1,765
26	Jia	14	2	1,300	1,388	1,344
27	Leonie Parc View	11	2	2,300	2,300	2,300
28	Nathan Residences	6	2	1,400	1,400	1,400
29	Sandy Island	3	2	1,196	1,788	1,492
30	Signature At Lewis	11	2	1,370	1,479	1,425
31	The Orange Grove	7	2	2,324	2,324	2,324
32	Whitley Villas	6	2	765	950	858
33	D'Ixoras	21	1	1,131	1,131	1,131
34	One Devonshire	3	1	2,066	2,066	2,066
35	Orange Grove Residences	2	1	2,134	2,134	2,134
36	Paradise Island	0	1	1,467	1,467	1,467
37	Scotts Square	0	1	4,304	4,304	4,304
38	Soleil @ Sinaran	44	1	1,307	1,307	1,307
39	The Greenwood (Phase 5)	32	1	959	959	959
40	The Hamilton Scotts	0	1	3,313	3,313	3,313
41	Ventura Heights	5	1	759	759	759
42	Villas @ Gilstead	3	1	713	713	713
449 (514 in July 2009)

Source of Data: URA website

 

Table [3.1] – New home units sold in CCR in September 2009

	Project Name	Units launched so far but UNSOLD	Units Sold in the Month	Lowest Price ($psf)	Highest Price ($psf)	Median Price ($ psf)
1	The Trizon	80	25	932	1,500	1,362
2	Dukes Residence	5	18	1,500	1,666	1,585
3	Sophia Residence	45	17	1,199	1,703	1,459
4	VIVA	8	14	1,505	1,829	1,623
5	Alba	16	10	2,068	2,500	2,135
6	Madison Residences	11	10	1,602	1,729	1,686
7	Ferrell Residences	5	8	1,650	1,895	1,789
8	Seven Palms Sentosa Cove	0	6	3,091	3,353	3,273
9	Belle Vue Residences	34	5	1,496	2,354	1,627
10	Latitude	22	5	1,647	1,836	1,751
11	Luma	16	5	1,676	1,794	1,721
12	Miro	2	4	1,455	1,655	1,628
13	Martin Place Residences	5	3	1,675	1,712	1,698
14	Shelford Suites	4	3	1,261	1,445	1,308
15	Nassim Park Residences	2	2	2,856	3,268	3,062
16	Skypark	8	2	2,298	2,300	2,299
17	The Orange Grove	5	2	2,085	2,199	2,142
18	The Promont	3	2	1,817	1,897	1,857
19	8 Rodyk	15	1	1,451	1,451	1,451
20	Icon	12	1	2,206	2,206	2,206
21	Jia	13	1	1,382	1,382	1,382
22	Lumiere	6	1	1,600	1,600	1,600
23	Lush on Holland Hill	10	1	1,646	1,646	1,646
24	Mulberry Tree	9	1	1,302	1,302	1,302
25	One Devonshire	2	1	1,942	1,942	1,942
26	Sandy Island	2	1	1,951	1,951	1,951
27	Vida	34	1	2,484	2,484	2,484
28	Volari	2	1	1,811	1,811	1,811
29	Wilkie Studio	9	1	1,150	1,150	1,150
152 (449 in Aug 2009)

 

Source of Data: URA website

 

FACTS – 29 projects in CCR reported at least one transaction in September 2009, compared with a month ago where 42 projects there did so. The highest median price achieved in September 2009 was $3,356 psf by Seven Palms at Sentosa Cove, which was 22.02% lower than the highest median price of $4,304 psf achieved by a unit at Scott Square in August 2009.

 

In terms of transaction volume in CCR, there was a 66.14% drop in September 2009 compared with a month ago.

 

Below are comparisons of sale prices between September 2009 and the previous months in some selected new condo/apartment projects in CCR.

 

In the drop zone
â	In SEPTEMBER 2009, 5 units at Belle Vue Residences at Oxley Walk were sold at a median price of $1,627 psf, compared with 17 units sold at a median price of $1,831 psf in August 2009. In July 2009, the median price was $1,869 psf.  A year ago in August 2008, the median price was $2,044 psf. It was a drop of 11.14% in September 2009 compared with a month ago.
â	In SEPTEMBER 2009, 5 units at Latitude at River Valley area were sold at a median price of $1,751 psf, compared with 27 units sold at a median price of $1,786 psf in August 2009. It was a 1.96% drop in the median price.
â	In SEPTEMBER 2009, 17 units at Sophia Residences were sold at a median price of $1,459 psf, compared with 43 units sold at a median price of $1,504 psf in August 2009. It was a 2.99% drop in the median price.

 

On the way up
á	In SEPTEMBER 2009, 10 units at Madison Residences at Dunearn Road area were sold at a median price of $1,661 psf, compared with 37 units sold at a median price of $1,686 psf in August 2009. It was a 1.5% rise in the median price.
á	In SEPTEMBER 2009, 14 units at Viva condo at Suffolk Walk at District 11 were sold at a median price of $1,623 psf, compared with 203 units sold at a median price of $1,537 psf in August 2009. It was a 5.59% rise in the median price.

 

FINDING – Despite the withdrawal of IAS and IOL, there has been no drastic fluctuation of prices in CCR. The biggest drop in median price was registered at Belle Vue Residence where the median price dropped 11.14% compared with a month ago. However, median prices of the majority of the projects moved within a very narrow range of between 1% and 6% in both directions.

 

[B.3.2] Sale of NEW home units in Rest of Central Region (RCR) eased in August/September

 

New home sales in the Rest of Central Region (RCR) slide in two consecutive months in August and September 2009 from 722 units to 431 units compared with 751 units sold in July 2009.

Table [4] – New home units sold in RCR in August 2009

	Project Name	Units launched so far but UNSOLD	Units Sold in the Month	Lowest Price ($psf)	Highest Price ($psf)	Median Price ($ psf)
1	Trevista	177	413	702	1,222	943
2	Airstream	0	70	989	1,195	1,085
3	Ascentia Sky	32	36	1,055	1,420	1,221
4	Vista Residences	10	27	1,038	1,318	1,138
5	Clover By The Park	162	21	677	862	774
6	The Peak @ Balmeg	24	21	852	1,076	954
7	D'Fresco	5	13	698	800	766
8	Silversea	122	12	1,255	1,576	1,386
9	Dakota Residences	14	11	855	1,014	956
10	Reflections at Keppel Bay	31	11	1,619	2,352	2,070
11	The Beverly	11	11	666	969	890
12	Concourse Skyline	2	10	1,394	2,200	1,528
13	Floridian	61	9	1,300	1,382	1,328
14	Stillz Residence	16	9	846	981	887
15	Prestige Heights	22	8	1,337	1,448	1,415
16	Ventura View	5	6	720	808	761
17	Evergreen View	4	5	567	649	642
18	St Michael Regency	23	5	792	829	798
19	Ola Residences	13	4	960	1,041	999
20	Parc Seabreeze	27	4	1,362	1,500	1,415
21	Jardin	22	2	1,510	1,520	1,515
22	Meier Suites	2	2	1,203	1,310	1,257
23	Parc Imperial	0	2	853	1,293	1,073
24	The Ariel	3	2	821	851	836
25	8@Woodleigh	0	1	614	614	614
26	Bellaville	0	1	556	556	556
27	Crystal Heights	1	1	848	848	848
28	Domus	11	1	1,250	1,250	1,250
29	Oasis Garden	2	1	827	827	827
30	Presidio	0	1	929	929	929
31	Radiance @ Bukit Timah	5	1	730	730	730
32	The Marque @ Irrawaddy	0	1	960	960	960
722 (751 in July 2009)

 

Source of Data: URA website

 

Table [4.1] – New home units sold in RCR in September 2009

	Project Name		Cumulative Units Launched but Unsold	Units Sold in the Month	Lowest Price ($psf)	Highest Price ($psf)	Median Price ($psf)
1	The Interlace		117	243	723	1,181	1,047
2	Trevista		82	59	855	1,219	938
3	Bliss Loft		27	21	939	1,279	1159
4	Clover By The Park		147	17	671	963	788
5	Prestige Heights		12	12	1,377	1,431	1400
6	Ascentia Sky		24	9	1,150	1,448	1254
7	Silversea		113	9	1,189	1,653	1257
8	Mountbatten Suites		0	7	563	978	593
9	Reflections at Keppel Bay		24	7	1,659	2,414	1846
10	Floridian		56	6	1,340	1,390	1368
11	Suites @ Guillemard		66	6	1,201	1,295	1247
12	Concourse Skyline		48	5	1,439	2,482	1753
13	Dakota Residences		11	3	889	975	950
14	The Peak @ Balmeg		23	3	985	1,076	995
15	Vista Residences		8	3	1,077	1,253	1185
16	Casa Meya		3	2	506	518	512
17	Evergreen View		2	2	589	589	589
18	The Serennia		18	2	1,065	1,080	1073
19	The View @ Meyer		4	2	1,296	1,401	1349
20	833 M B Residences		0	1	885	885	885
21	Airstream		0	1	1,118	1,118	1118
22	Amber Residences		16	1	1,060	1,060	1060
23	Beacon Heights		27	1	947	947	947
24	Crystal Heights		0	1	780	780	780
25	Domus		10	1	1,260	1,260	1260
26	Goodman Crest		2	1	725	725	725
27	Meier Suites		1	1	1,330	1,330	1330
28	Ola Residences		12	1	1,057	1,057	1057
26	Radiance @ Bukit Timah		4	1	782	782	782
30	The Beverly		10	1	908	908	908
31	Tresalveo		14	1	971	971	971
32	Ventura View		4	1	705	705	705
431 (722 in August 2009)

Source of Data: URA website

 

FACTS – The number of new home projects that reported at least one transaction stagnated at 32 projects in September 2009 while the sales volume dropped 59.7% in the same period.

 

Below are comparisons of sale prices between September 2009 and the previous months in some selected new condo/apartment projects in RCR.

 

In the drop zone
â	In SEPTEMBER 2009, 3 units at Dakota Residences at Dakota area were sold at a median price of $950 psf, compared with 11 units sold at a median price of $956 psf in August 2009. It was a 0.6% drop in the median price.
â	In SEPTEMBER 2009, 59 units at Trevista at Toa Payoh were sold at a median price of $938 psf, compared with 413 units sold at a median price of $943 psf in August 2009. It was a 0.53% drop in the median price.

 

On the way up
á	In SEPTEMBER 2009, 5 units at Concourse Skyline at Beach Road were sold at a median price of $1,753 psf, compared with 10 units sold at a median price of $1,528 psf in August 2009. It was a 14.72% rise in the median price.
á	In SEPTEMBER 2009, 9 units at Ascentia Sky at Alexandra Road were sold at a median price of $1,254 psf, compared with 36 units sold at a median price of $1,221 psf in August 2009. It was a 2.7% rise in the median price.
á	In SEPTEMBER 2009, 17 units at Clover by the Park at Bishan were sold at a median price of $788 psf, compared with 21 units sold at a median price of $774 psf in August 2009. It was a 1.8% rise in the median price.

Source of Data: URA website

 

FINDING – The narrow movement in sale price in RCR mirrored that of CCR – with the exception of Concourse Skyline where the median price of the FIVE transactions in September 2009 were 14.72% dearer than the median price of the 10 units sold there a month ago. Except that, the drop in the primary sale volume in RCR also coincided with the general softness in prices.

 

[B.3.3] Sale of NEW home units in Outside Central Region (OCR) edged up in September 2009

 

The sales volume at OCR edged up in September 2009 after dipping in August 2009. A total of 560 units were sold from OCR with Hundred Trees being the star of the month.

 

Price wise, the improvement in sale volume did not lead to increase in sale prices. Except Centro Residences at Ang Mo Kio which hit a median price of $1,184 psf, most others are transacting in competitive prices with the freehold Hundred Trees hitting the highest psf price of $1,219 and a median price of $6 shy of the psychological $1,000 psf mark.

 

Table [5] – New home units sold in OCR in August 2009

	Project Name	Cumulative Units Launched but Unsold		Units Sold in the Month	Lowest Price ($psf)	Highest Price ($psf)	Median Price ($psf)
1	Optima @ Tanah Merah	3		164	603	1,071	843
2	The Lenox	20		56	946	1,246	1138
3	Meadows @ Peirce	71		52	695	1,123	894
4	Double Bay Residences	39		32	656	743	704
5	Oasis @ Elias	13		30	587	784	636
6	Livia	60		24	568	689	651
7	Waterfront Key	106		22	690	888	765
8	Waterfront Waves	34		21	631	930	691
9	Mi Casa	108		19	602	754	670
10	Centro Residences	89		17	1,134	1,289	1231
11	Cabana	6		13	583	617	610
12	Rosewood Suites	4		12	465	614	573
13	The Gale	36		11	602	774	743
14	Caspian	0		6	633	671	648
15	Jansen 8	4		6	475	558	529
16	Breeze By The East	6		5	724	846	755
17	Coastal Breeze Residences	17		4	649	758	684
18	D'Pavilion	32		4	858	945	942
19	Daisy Petals	2		4	565	575	573
20	Fontaine Parry	8		3	787	921	796
21	Park Natura	8		3	929	950	929
22	Hillvista	74		2	1,135	1,155	1145
23	Kovan Residences	33		2	841	895	868
24	Pavilion Park (Phase 2)	2		2	749	751	750
25	The Lattiz	11		2	781	795	788
26	The Parc Condominium	38		2	920	978	949
27	Bluwaters 2	4		1	1,146	1,146	1,146
28	D'Almira	4		1	700	700	700
29	Gillenia	1		1	648	648	648
30	Idyllic East	1		1	808	808	808
31	Kovana	0		1	760	760	760
32	La Dolce Vita	2		1	859	859	859
33	Landed housing development	2		1	1,039	1,039	1,039
34	Matlock Residences	5		1	480	480	480
35	St Patrick's Residences	2		1	948	948	948
528 (1,502 in July 2009)

Source of Data: URA website

 

Table [5.1] – New home units sold in OCR in September 2009

	Project Name	Cumulative Units Launched but Unsold	Units Sold in the Month	Lowest Price ($psf)	Highest Price ($psf)	Median Price ($psf)
1	Hundred Trees	23	327	683	1,219	941
2	Elliot at the East Coast	25	65	638	1,550	947
3	Double Bay Residences	24	15	662	741	708
4	Livia	45	15	532	682	646
5	Oasis @ Elias	30	15	596	681	639
6	Meadows @ Peirce	62	14	715	1,273	868
7	Pavilion Park (Phase 2)	2	10	762	1,004	771
8	Park Natura	0	8	822	950	943
9	Verdana Villas	48	8	618	680	645
10	Waterfront Key	100	8	728	844	772
11	Mi Casa	101	7	641	743	691
12	Waterfront Waves	27	7	667	731	690
13	Rosewood Suites	8	6	516	626	583
14	The Lenox	16	6	1,041	1,216	1,074
15	The Gale	31	5	722	848	739
16	Breeze By The East	2	4	668	794	735
17	Centro Residences	89	4	1,178	1,250	1184
18	D'Almira	1	3	694	740	740
19	Huit	0	3	619	898	742
20	Optima @ Tanah Merah	0	3	654	940	874
21	St Patrick's Residences	9	3	751	1,054	962
22	Bliss Ville	13	2	841	954	898
23	Costa Este	0	2	600	600	600
24	D'Pavilion	30	2	908	953	931
25	Hillvista	72	2	1,050	1,126	1088
26	The Parc Condominium	36	2	919	968	944
27	The Scenic @ Braddell	3	2	629	680	655
28	Coastal Breeze Residences	16	1	667	667	667
26	Dunsfold Residences	5	1	458	458	458
30	East Coast Residences	18	1	979	979	979
31	Jansen 8	3	1	572	572	572
32	Kovan Residences	32	1	811	811	811
33	La Dolce Vita	1	1	872	872	872
34	Lynwood Eight	1	1	539	539	539
35	Mill Creek	9	1	807	807	807
36	Serangoon Garden View	5	1	671	671	671
37	The Amery	25	1	913	913	913
38	The Lattiz	10	1	785	785	785
39	Water Villas	4	1	547	547	547
560 (528 in August 2009)

Source of Data: URA website

 

Below are comparisons of sale prices between the June 2009 and July 2009 in some selected projects in OCR.

 

In the drop zone
â	In SEPTEMBER 2009, 15 units at Oasis@Elias at Elias Road were sold at a median price of $639 psf, compared with 30 units sold at a median price of $636 psf in August 2009. It was a 0.47% drop in the median price.
â	In SEPTEMBER 2009, 15 units at Livia at Pasir Ris area were sold at a median price of $646 psf, compared with 24 units sold at a median price of $651 psf in August 2009. It was a 0.76% drop in the median price.
â	In SEPTEMBER 2009, 7 units at Waterfront Waves at Bedok Reservoir area were sold at a median price of $690 psf, compared with 21 units sold at a median price of $691 psf in August 2009. It was a 0.14% drop in the median price.
â	In SEPTEMBER 2009, 14 units at Meadows @ Peirce at Upper Thomson area were sold at a median price of $868 psf, compared with 52 units sold at a median price of $894 psf in August 2009. It was a 2.9% drop in the median price.

 

On the way up
á	In SEPTEMBER 2009, 15 units at Double Bay Residences at Simei were sold at a median price of $708 psf, compared with 32 units sold at a median price of $704 psf in August 2009. It was a 0.56% rise in the median price.
á	In SEPTEMBER 2009, 8 units at Waterfront Key at Bedok Reservoir area were sold at a median price of $772 psf, compared with 22 units sold at a median price of $765 psf in August 2009. It was a 0.92% rise in the median price.

Source of Data: URA website

 

FINDING – The price movements in OCR were negligible if any. This is probably due to the fact that the withdrawal of IAS and IOL has yet to filter down to the heartland areas as most of the projects being marketing right now are still enjoying the benefits of the financial schemes.

 

However, it remains to be seen how the newer projects that do not have the convenience will fare in the months to come.

 

[B.4] MORE LOSSES IN SUB-SALE DEALS

 

According to an August 2009 Straits Times report, losses in sub-sale deals have quadrupled in the first eight months of this year. More than 340 sub-sales of condos and apartments ended in the red within that period. 

 

For example, out of the 71 sub-sale deals done at Casa Merah in Tanah Merah, 16 deals or 22.53% resulted in losses averaging $30,601.

 

Most sellers made gains at Rivergate, which was completed in the first quarter of the year, but 10 suffered hefty losses of around $371,355, with one of them losing $985,000.

 

At popular projects like The Sail @ Marina Bay, eight out of 19 sub-sale deals this year were done at an average loss of $949,343. According to a separate ST report, the six sub-sale deals done at Alexis in Alexandra Road this year had average gains of $62,833.

 

Those who lost money in the sub-sale market in January to August this year chalked up an average loss per unit of $267,616.

 

According to the same August ST report, the vast majority of those who sold their properties in the sub-sale market from January to August this year held their units for at least two years. Over half (52%) bought their properties in 2007. Another 36% had bought in 2006, while nearly 7% of 2009 sub-sale deals involved properties purchased this year.

 

The general mood in the sub-sale market may turn cautious now that the Interest Absorption Scheme (IAS) and Interest Only Loan (IOL) have been withdrawn. This may severely impact the bottom-line of many sub-sellers in the months to come when more quality condos receive their Temporary Occupation Permit (TOP).

 

 

 

 

 

Buy, Sell, Rent, Invest, In Singapore

 

Mindy Yong 杨雯诗

CEA Registration Number : R021232Z

Tel: (+65) 91002985
Fax: (+65) 64021826

mindy@mindyyong.com

 

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