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High-end residential prices to increase 10% to 15% in 2010
Prices of high-end and super-luxury homes in Singapore are expected to rise another 10% to 15% this year, thanks to optimism surrounding the two integrated resorts, coupled with a more robust global economy, says property consultancy Savills. The market will also get a lift from the continuing influx of affluent foreign buyers. Furthermore, prices of high-end and super-luxury homes are still 17% and 19%, respectively, below the peak achieved in 2007. According to Savills’ data, the average price of high-end homes increased 3.3%, from S$1,961 psf (RM4,607 psf) in 4Q2009 to S$2,025 psf in 1Q2010. For the super-luxury residential segment, average prices rose 2% q-o-q, from S$2,927 to S$2,984 psf.
Meanwhile, in line with the buoyant market, rental of high-end private properties is expected to rise further, as the number of expatriates in Singapore increases, says Savills. For instance, the asking price for a 2,900 sq ft unit at Ardmore Park (above) is S$18,000 a month, or S$6.21 psf, while the asking price for another 2,900 sq ft unit at Draycott 8 is S$19,000, or S$6.55 psf. In 1Q2010, average rental for units in this segment was S$4.94 psf, up 2.3% y-o-y.
Mapletree Logistics Trust buys three properties
Mapletree Logistics Trust Management Ltd (MLTM), manager of the Mapletree Logistics Trust (MapletreeLog), has made three acquisitions worth a total of S$83.5 million (RM196.2 million). The first is the purchase of Natural Cool Lifestyle Hub distribution centre in Singapore for SS$53 million. The second deal — the first for MLTM in Vietnam — is for a warehouse called Mapletree Logistics Centre worth US$6.4 million (RM21.3 million). The third deal, worth ¥1.49 billion (RM53.7 million), is for the Sendai Centre warehouse in Japan.
These acquisitions will give MapletreeLog a weighted average net property income yield of 7.9%, which is higher than its current 6.2%. MLTM plans to fund the purchases with borrowings.
Strong demand for inner city and Sentosa homes
Private properties in the prime inner city and Sentosa districts are being transacted at a higher level in the resale market than new sales in the same districts. In 2009, there were 482 resale transactions worth S$750.8 million (RM1.8 billion) in these two districts. In contrast, in the same period, 286 new units worth S$652.4 million were sold, according to figures compiled by CB Richard Ellis. The data covers districts 1, 2 (Marina Bay, Shenton Way and Tanjong Pagar) and 4 (Sentosa Cove, Keppel Bay and HarbourFront areas).
The two most popular developments were Caribbean@Keppel Bay and The Sail@Marina Bay, with 200 and 128 transactions, respectively. The strong resale demand has extended into this year. In the first five months of 2010, 246 resale units, or 51% of last year’s total, changed hands.
Foh Pin Mansion near Serangoon up for collective sale at S$22.5 mil
Foh Pin Mansion (above), at 1 Charlton Road, has been put up for collective sale, with an asking price of S$22.5 million (RM52.9 million). The 30-year-old freehold development, comprising 21 units, can be redeveloped into a three-storey mixed landed housing project, based on the master plan drawn up by URA. The site area measures 34,154 sq ft. As at May 31, 90% of the owners have agreed to the sale. Foh Pin Mansion is just a few minutes’ drive from Serangoon Central, which has amenities that include upcoming mall nex. Savills, which is handling the sale, expects interest from boutique developers, construction companies and contractors. The tender will close at 3pm on June 28.
Waldorf Mansions up for en-bloc sale
Waldorf Mansions (right), off Balestier Road, has been put up for collective sale, with an asking price of S$22.5 million (RM52.9 million). The freehold site has an area of 11,384 sq ft and a gross plot ratio of 2.8, translating into a permissible gross floor area of 31,875 sq ft. The asking price is equivalent to a unit price of S$709 psf ppr. Credo Real Estate, which is handling the sale, estimates that the breakeven price for developers of this project is S$1,100 psf.
Waldorf Mansions was built in the 1990s and comprises an 11-storey building with 16 apartments. The plot ratio means that a new 36-storey building, with 50 units of 600 sq ft each, can be built on the site. The tender will close on June 29 at 2.30pm. — The Edge Singapore
This article appeared in City & Country, the property pullout of The Edge Malaysia, Issue 810, June 14-20, 2010
