Tag Archives: Sales

Residential land sales could reach $16b in 2018

Developers are bidding more aggressively for land amid estimations that they are sitting on a $ 22.9 billion war chest. (Photo: Nikki De Guzman)

Property consultancy Cushman & Wakefield thinks that land purchases in Singapore by real estate developers could hit $ 16 billion this year, with more record land deals emerging, reported Bloomberg.

This is because Cushman’s research director Christine Li believes that developers have accumulated plenty of cash since the housing market was previously weak.

Now that the sector is recovering, they are bidding more aggressively for land, she explained, estimating that home builders are sitting on a $ 22.9 billion war chest from selling homes and as loans from banks.

“Against this backdrop, land deals could continue to set record prices in 2018, especially for sites with little competition in the vicinity,” she said.

Last December, Frasers Property bought a residential site in Jiak Kim Street near the Singapore River for $ 955.4 million ($ 1,733 psf), the highest in terms of psf.

Furthermore, if the $ 16 billion overall tally is achieved for 2018, it will exceed the $ 12.8 billion worth of residential investment sales involving en bloc and public land deals in 2017 as revealed by Colliers International.

“With the residential market on the cusp of a sustained recovery, developers are likely to continue replenishing their land banks, via public land tenders and private collective sales,” noted Tricia Song, Colliers International’s director and research head for Singapore.

 

Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

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New private home sales up 37% from a year ago

Symphony Suites sold 65 units in the month of January, making it the most popular project. 

Property developers sold 522 new private homes excluding executive condominiums (ECs) in January 2018, up 21 percent from 431 units in the month before, according to data published by the Urban Redevelopment Authority (URA) on Wednesday (14 February).

Year-on-year, there was a 37 percent increase from the 382 units sold in January 2017.

According to property agency PropNex Realty, last month’s sales tally is the highest for the month of January since 2015. However, it is still lower than the average monthly figure as most developers only plan to launch their projects after Chinese New Year.

“Usually the months of December and January are the slower months with lesser property activities,” said PropNex CEO Ismail Gafoor.

“However, a closer look at the figures comparing with the past few years, it seems to depict that January 2018 is gaining momentum with home buyers and upgraders making their move to purchase existing stocks of private homes available which are rightly priced, before prices are predicted to go up in the later part of this year.”  

The top-selling project in the month was the previously launched Symphony Suites in Yishun, which sold 65 units at a median price of $ 1,085 psf. This was followed by Gem Residences in Toa Payoh, which moved 44 units at a median price of $ 1,508 psf. Parc Botannia in Sengkang was next with 43 units sold at a median price of $ 1,265 psf. 

Ismail expects to see more transactions after Chinese New Year as developers gear up to launch several new projects including The Tapestry at Tampines Avenue 10, The Enclave @ Holland and possibly Rivercove Residences EC in Sengkang.

“Activities in the market will pick up from March onwards with transactions along the lines of 1,000 units,” he noted.

Ismail predicts that some 12,000 units (excluding ECs) will be sold in 2018, similar to last year. 

 

Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

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Keppel Land annual home sales down 4% to 5,480 units

Keppel Land’s total homes sales slid by four percent to 5,480 units last year on an annual basis due to cooling measures in China and the timing of development launches in Vietnam, reported the Singapore Business Review.

According to DBS Equity Research, Keppel Corporation’s real estate arm found buyers for 270 dwellings in Indonesia, 380 in Singapore, 1,110 in Vietnam and 3,725 residential properties in China.

Despite the dip in home sales, its earnings grew by 10 percent year-on-year to $ 685 million in 2017. The company is also expected to unveil 16,780 houses until 2020, or about 5,593 units per annum, out of its 63,000-unit overall pipeline.

Furthermore, DBS Equity Research said that 70 percent of Keppel Land’s landbank for residential projects were bought at a relatively lower cost over seven years ago. Hence, the firm’s net asset value is anticipated to improve after these housing developments are completed.

 

This article was edited by Keshia Faculin.

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Far Horizon Gardens owners elect en bloc sales committee

The owners of Far Horizon Gardens (FHG) has elected a collective sales committee, adding to the city-state’s growing list of collective sales hopefuls.

“The main motivation for the FHG collective sale committee is to address the ageing estate (35 years out of a 99-year lease), and to unlock the property value for the individual sub-proprietor,” said deputy chairman of the committee, Loh Choon Seng.

Situated at Ang Mo Kio Avenue 9, the 272-unit development has a land area of around 430,000 sq ft and a gross plot ratio of 1.4, reported Business Times. It is near Yio Chu Kang MRT station, as well as Mayflower and Lentor stations on the Thomson-East Coast Line, which is due in 2020.

The latest transaction for FHG involved the resale of a 1,948 sq ft unit for $ 1.62 million in December 2017, which works out to a unit price of $ 832 psf.

On the rental arena, a two- and three-bedroom unit was rented for $ 1,900 and $ 3,200, respectively, in December, showed statistics from the Urban Redevelopment Unit.

Meanwhile, the committee is now shortlisting managing agents for the estate, with the tender expected to be called in 2H 2018.

 

This article was edited by Keshia Faculin.

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Private home sales hit 4-year high in 2017

Home sales in Singapore surged to 10,682 units for the whole of 2017.

Private home sales in Singapore surged 34 percent to 10,682 units for the whole of 2017 compared to 7,972 units during the previous year, according to initial estimates from the Urban Redevelopment Authority (URA).

As a result, take-up of private homes for the entire year reached its highest level since the 14,948 units sold in 2013, indicating that the city-state’s private property market is on the road to recovery.

“New private home sales in 2017 are the strongest in four years. This reflects the upbeat demand that is supporting recovery in the residential market that has also led to prices turning around since mid-2017,” said Ong Teck Hui, JLL’s national director of research and consultancy.

Meanwhile, sales of executive condominiums last year remained stable with 4,025 new units finding buyers versus the 3,999 ECs moved in 2016.

In particular, Qingjian Realty set the record for selling the most number of units last year, moving a total of 1,216 ECs and private homes. This is followed by Frasers Centrepoint (1,145 units), City Developments Limited (1,057 units), Hoi Hup Realty (845 units) and MCC Land (835 units).

The top-selling projects in 2017 include CEL Development’s Grandeur Park Residences with 607 units sold. This is followed by EL Development’s Parc Riviera (605 units), Frasers Centrepoint’s Seaside Residences (564 units), Hoi Hup Realty’s Hundred Palms Residences (531 units) and Qingjian Realty’s iNz Residence (480 units).

“The encouraging sales volume and the pickup in home prices in the second half of 2017 signalled that the private residential market has turned a corner and should continue to recover this year,” noted Tricia Song, Colliers International’s research head for Singapore.

“We estimate that about 25 major private non-landed projects with the potential to yield 15,000 to 16,000 units (excluding ECs) could be put on the market in 2018. We expect home prices to climb by five percent this year, barring any unforeseen events,” she added.

On the other hand, JLL’s Ong reckons that between 9,000 and 10,000 private units could be launched this year, in addition to around 2,000 remaining units in previously launched projects.

 

Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

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