Number of foreign purchases fall; many buying homes in suburban areas

HIGH-END homes have become the first to buckle under the pressure of volatile market conditions and gloomy buyer sentiment.

Prices of luxury developments dipped in the first three months of this year, even as foreign buyers - a traditional source of demand for such properties - turned to cheaper options.

A report by property firm Savills Singapore released yesterday showed that prices of expensive homes fell 2.1 per cent in the first quarter, after a steady 21/2-year climb that saw values more than double.

Foreigners also began switching from the prime central districts to suburban areas, such as East Coast, Bukit Batok and Serangoon, said Savills.

Its analysis covered luxury developments located in districts 1, 4, 9, 10 and 11, which include Shenton Way, Sentosa, Orchard, Holland, Newton and Bukit Timah. The average price of these homes fell to $2,360 per sq ft (psf) in the period from January to March, from $2,410 psf in the previous three months.

At the very top end, the priciest condominiums registered a 2.9 per cent dip in prices to $3,577 psf in the first quarter, from $3,683 psf in the previous quarter, Savills said. These are developments that have crossed $2,500 psf.

While Savills would not disclose the names of the buildings it analysed, a check of caveats showed that luxury projects such as Ardmore Park and St Regis Residences in Cuscaden Road recently lodged sales at gradually lower prices.

Savills suggested that luxury condos might be more vulnerable to the global credit crisis.

On the bright side, foreign buying islandwide stayed strong despite the softening housing market, it added.

Foreign buyers took up 28 per cent of private homes in the first quarter, up from 25.9 per cent for the whole of last year.

But the total number of foreign purchases fell, in line with the general slowdown in market activity. Foreigners bought only 901 private homes from January to March this year, less than half the 2,245 homes they took up in the same period last year.

Surprisingly, many of the homes they bought were well away from their usual stronghold of districts 9 to 11.

Savills’ report showed that areas as far-flung as Changi and Hougang made it to the most-bought list, while traditionally foreigner-friendly areas such as Shenton Way dropped out of the top 10.

This could be because more of the foreign buyers now are expatriates living here with their families, rather than investors looking for prime assets, said Mr Ku Swee Yong, Savills’ director of business development and marketing.

‘Rentals are still holding up at high levels, and many expats who are more price-sensitive may now be converting from leasing homes to buying them,’ he said.

‘Some of these expats postponed buying homes last year, but now they could be taking advantage of the slowdown in the market to get a good deal.’

This would explain the foreign demand for suburban areas, as expatriates are likely to buy homes in neighbourhoods that have good schools or where they are currently renting houses.

Bolstering this theory is a sudden drop in the number of leasing transactions this year, said Mr Ku. Based on leases that were signed in 2006, there should be a lot more renewals this year than had actually taken place, he explained.

Savills expects private home prices to grow a moderate 5 per cent to 10 per cent this year.

Source : Straits Times - 13 May 2008

• Excellent transportation linkages like PIE, ECP (10-15 mins to CBD, Marina Bay Integrated Resort, Suntec City, Raffles City, Changi Airport)
• Easy access to abundant of amenities, i.e. supermarts, wet markets, banks, food centres
• Close proximity to excellent schools like CHIJ (Katong) Primary, Tanjong Katong Primary, Chatsworth Intl Sch, Victoria Jr College, Ngee Ann Pri School, St Patrick School
• Excellent recreational facilities (East Coast Park, Chinese Swimming Club, Parkland Golf Driving range, Marina Bay Driving Rang & Golf Course)

TWO freehold industrial sites - at 18 Howard Road and 27 New Industrial Road, in the north-eastern part of Singapore - are for sale by tender at indicative prices of $30 million ($272 per sq ft per plot ratio) and $14 million ($278 psf ppr) respectively.

Charles Hoon, director of investment properties at marketing agent CB Richard Ellis, said the sites are zoned Business 1 under Master Plan 2003. This means 40 per cent of gross floor area can be used for purposes such as offices, showrooms or workers’ dormitories.

‘While industrial capital values and rents have recovered, industrial space still presents an attractive option, compared with office space, for businesses to relocate their backroom operations.’

The two sites are conveniently located and of regular shape, he said. And their freehold tenure is an ‘added advantage’.

The 18 Howard Road site is a 44,000 sq ft vacant plot in Macpherson Industrial Estate. The 20,000 sq ft 27 New Industrial Road is in the New Industrial Road cluster.

Separately, DTZ Debenham Tie Leung is marketing a 999-leasehold Good Class Bungalow (GCB) site in Yarwood Avenue. The 69,540 sq ft site, close to Binjai Park, has been put up for sale through an expression-of-interest exercise at an indicative price of $750-$800 psf.

According to DTZ, it has redevelopment potential to accommodate four GCBs. It now houses a single storey detached house with an outhouse, swimming pool and tennis court.

Shaun Poh, DTZ’s senior director for investment advisory services and auction, said: ‘This is a rarely available large plot of land in a prime location, offering a myriad of possibilities.’

Recent transactions of GCB land in the area include sites on Kilburn Estate for around $860 psf and Binjai Park for around $850 psf, he said.

Source : Business Times - 6 May 2008

IF YOU’RE really, really too time-strapped to spare a three or four-hour flight out of Singapore, there’s the St Regis: for the waited-on-hand-and-foot experience.

St Regis is the only hotel in Singapore to offer butler services to all guests now that it’s open.

For some folks, this service takes some getting used to. For example, even though your butler says to call him if you need anything at all, should you do so if you can’t find sanitary bags in the impressive marble sanctuary that is the loo? What about calling him for a different pillow when the one on your bed gives you a neck ache in the middle of the night?

For others, however, the butler is a dream come true. Hate packing and unpacking whenever you travel? No problem, buzz the butler. Want to read international newspapers? Sure thing, the chap will get them for you.

Heck, your plush room doesn’t even come with a coffee/tea maker because the butler will make your cuppa, 24/7.

So yes, it is a charmed life when you check into the St Regis, where you’ll find little need to raise a finger unless it is to press the butler call button. That leaves you with plenty of energy to enjoy your surroundings.

At the posh hotel, a collection of over 40 original art pieces by such familiar names as Fernando Botero, Marc Chagall and Frank Gehry dot the public areas, while its 299 rooms and suites ooze quiet opulence through tasteful, stately decor.

For a room with a nice, unblocked view, ask for a Tanglin Road facing one on a high floor. But if you want to check out the apartments in the posh St Regis Residences, the Cuscaden Road facing rooms will give you a pretty good peek.

Facilities-wise, there is a rather narrow swimming pool, a top-class fitness centre and an air-conditioned tennis court. But nothing beats the hotel’s much-talked about Remede Spa. Sure, its treatments are wonderful, but it is Remede’s luxurious wet lounge that really raises the bar as far as exceeding guest expectations goes. Suffice to say you will find yourself wanting to try every heated marble surface, dip into every body of water and pop into every steamy chamber.

Filling your tummy, however, is just as pleasurable. Theoretically, you could work your way through the all-day dining restaurant, Les Saveurs, for breakfast; the poolside Mediterranean eatery, LaBrezza, for lunch; then tuck into afternoon tea at the Drawing Room before finishing up with dinner at the Cantonese restaurant, Yan Ting.

But if that doesn’t work out, then at the very least, make sure you go for the wine tasting at the Decanter wine bar in the evening. Staying guests are invited to taste four wines - compliments of the hotel’s chief sommelier - but the bonus is the sommeliers’ personable company in a very chic atmosphere.

For a spot to wind down the evening - and feel smug as you look out at the hoi polloi on Tanglin Road - head to Astor Bar for a Chilli Padi Mary. If the concoction doesn’t knock you senseless, it will at least make you happy to be alive - and staying at the St Regis.

The St Regis Singapore is at 29 Tanglin Road.
Tel: 6506 6888, website: StRegis.com/Singapore

Source : Business Times - 26 Apr 2008

VINCENT WEE checks out some of the premier residential developments in Singapore’s southern waterfront precinct

THE emergence of the concept of waterfront living is relatively recent in pragmatic Singapore where precious waterside real estate has always been the preserve of the all-important marine industry. But, in many other parts of the world, the waterfront has always been the premier choice for residence.

From the French Riviera to the Palm Islands in Dubai, waterside living epitomises class and prestige. It exudes that special lifestyle appeal to both home-owners and investors. The panoramic views and the calming effect of surrounding waters offer city-dwellers a much-needed respite from the hustle and bustle of urban life.

Located just a five-minute drive away from the Central Business District, Keppel Bay has emerged over the past few years as a true waterfront precinct, presenting the best in waterfront and urban lifestyles. It is part of the vibrant waterfront city in southern Singapore comprising Sentosa and the upcoming Sentosa integrated resort, HarbourFront and VivoCity, Singapore’s largest entertainment and retail hub.

Keppel Land’s Caribbean condominium was the first residential development launched in this waterfront district. The property, which sits on Keppel Corp’s former dockyards, incorporates these historical features in its design and architecture, transforming them into water channels which bring the sea right to the doorsteps of homes. The 969 units of luxurious two- to four-bedroom apartments and penthouses at Caribbean have been sold out, with 168 units leased out as corporate residences.

Meanwhile, Keppel Land’s latest project, Reflections, presents a new face to world-class waterfront living with its stunning architecture by master architect Daniel Libeskind. A symphony of six glass towers and 11 villa apartment blocks will house 1,129 luxury homes along a 750-metre shoreline - all of which enjoy unparalleled views of the waterfront, the Keppel Club golf course and lush surrounds.

Combining heroic forms and classical elegance, the towers rise spontaneously as ‘beacons of light’ at the gateway of Singapore’s southern waterfront hub comprising Keppel Bay, HarbourFront and Sentosa. The towers will rise to 24 and 41 storeys while the spacious villa apartments are six to eight storeys high. Crowning the towers are lush sky gardens on sloping rooflines, and are linked by sky bridges, providing pockets of open spaces and platforms with near 360-degree views of the spectacular surrounds.

All 620 units in Phase One have been fully sold. The development is scheduled for completion in 2013. In the pipeline within the Keppel Bay precinct are three more sites for future development - two on the mainland and one other plot on Keppel Island.

The creation of Sentosa Cove, meanwhile, has been a 20-year process since the Cabinet first approved redevelopment plans to create it. Land parcels at the much touted up-market enclave of residential properties with unrivalled oceanfront views and marina lifestyle amenities are now almost completely sold out. Concessions have been made to allow landed properties to be made much more accessible to international buyers with the aim of creating an international resort community which will have a place on the global real estate map. This has provided a boost to Sentosa as a resort destination for the world’s rich and famous, especially with its marina and exclusive resort lifestyle concept.

The prestigious marina residential community comprises a range of housing options from condominiums to terrace houses to individual bungalows, some of which even have their own berths attached to them. Developers involved include well-known names like the Lippo Group as well as others like Ho Bee .

Sentosa Cove is divided into the southern and northern residential precincts and the central marina precinct where the One Degree 15 Marina Club is located. There are several islands within the northern and southern precincts and a system of locks and canals connects all the developments to the sea, thus enabling residents to bring their boats right up to their doorstep.

The area promotes a sense of exclusivity and a get-away-from-it-all vibe with its physical separation from the main island and the breezy ambience that comes from being right at the water’s edge.

Source : Business Times - 24 Apr 2008

Email lushhome@gmail.com  for more information on waterfront residential projects

A LARGE commercial unit at The Riverwalk, Upper Circular Road, is up for sale at an indicative price of $23 million.

The unit, which has a strata area of 20,161 sq ft that represents a 12.11 per cent ownership stake, is owned by private investors. The indicative price works out to about $1,140 per square foot.

CB Richard Ellis (CBRE), which is marketing the 99-year leasehold property, says rent of $5 to $6 per sq ft is being asked for comparable office space in the area. Assuming rent of $5.50 psf, the $1,140 psf guide price reflects a net yield of about 5.5 per cent.

The current lease expires in mid-July this year.

In March, a unit at High Street Centre was sold for about $1,500 psf.

CBRE associate director of investment properties Liau Wee Boon said of the Riverwalk unit: ‘In addition, there is collective sale potential as the development is undergoing an en bloc exercise. The potential payout is more than 50 per cent above the guide price.’

The Riverwalk comprises 181 commercial units ranging from 54 sq ft to 20,161 sq ft, plus 118 apartments ranging from 818 sq ft to 3,821 sq ft, plus 290 parking lots. It was put up for collective sale late last year at an indicative price of about $700 million or $1,735 psf per plot ratio (psf ppr) and zoned for residential and commercial use.

Meanwhile, in the Victoria Park area off Holland Road, a good class bungalow (GCB) has been put up for sale by DTZ Debenham Tie Leung (DTZ).

The 999-year leasehold GCB sits on a site of 32,687 sq ft. DTZ said that a recent valuation put the value of the site at $26.5 million.

The land is now occupied by an old two-storey detached house with a garage and swimming pool.

DTZ said recent transactions of GCB land in the area include sites in Leedon Park for $914 psf and Victoria Park Road for $920 psf.

DTZ director (Investment Advisory Services) Quek Soh Hoon said: ‘Given the positive attributes and distinctive location, the subject property would be an attractive and choice acquisition for high-net-worth individuals looking for land to build their dream house or investment property.’

Source : Business Times - 22 Apr 2008

WHEN it comes to luxury homes in prime locations, Singapore had the eighth-most expensive properties in the world last year, ahead of cities such as Tokyo, Hong Kong and Paris.

Average prices of top-end properties in the Republic rose by 31 per cent to £1,197 (S$3,232) per sq ft (psf), the sixth-biggest price jump globally, according to a survey by Knight Frank and Citi Private Bank.

Their 2008 Annual Wealth Report found that the prices of luxury homes around the world increased, on average, by 11 per cent last year.

The sub-prime credit crisis led to ‘falling prices, restricted financing and declines in sale volumes’, which spread from the United States to Europe, but the report also noted the emergence of a new breed of super rich.

‘Commodity price rises have brought wealth and created a significant number of additional new high net worth individuals in countries that benefit from a high level of natural resources - Brazil, Canada, Australia and Russia, which each added more than 8,500 additional wealthy residents in 2007.’

Rising affluence has also generated another market for second homes and holiday homes, said the report.

‘We have yet to see the full impact on demand for property from the rising mass affluent population of central and eastern Europe, let alone from China, India, South Korea and other Asian economies,’ it said, adding that ‘the boom in second home ownership over the past decade will be nothing compared with the growth we will see over the next decade’.

The highest price growth was achieved by prime residential properties in Cortina D’ Ampezzo in Italy (61 per cent), St Jean Cap Ferrat in France (50 per cent) and Antigua (40 per cent) .

Mr Liam Bailey, Knight Frank’s head of residential research and author of the report, said prices grew strongly in the emerging economies, especially China and central and eastern Europe.

A second area of strong growth was in the global financial centres and second-home hot spots in France, Italy and the Caribbean, he added.

‘Overall in 2007, capital growth in prime residential properties has been strongest in the main global financial centres and those with benign tax jurisdictions,’ he added.

Five of the top 10 locations fell into this category, with London outperforming all other centres. It had 29 per cent growth and prices averaged £3,025 psf. Prices of properties valued over £10 million there grew by 37 per cent.

Monaco, in Europe, was second priciest at £2,877 psf and St Jean Cap Ferrat was third at £2,860 psf.

Source : Straits Times - 21 Apr 2008

Amber Road will enjoy a clubhouse that has been restored to its historic grandeur.

Developer Wheelock Properties said it spent $1.3 million to conserve, retrofit and furnish the double-storey building.

The stately bungalow was built in the 1900s, along what was then the seaside at Katong. Then known as The Pavilion, it was owned by the Elias family.

Some of its most striking features include panoramic stained-glass panels above the grand entrance, the extensive timber works and the cast-iron railing on the verandahs.

‘This grand clubhouse is like a precious gem,’ said Wheelock director Tan Bee Kim. ‘Home owners of The Sea View are inheriting a small part of Singapore’s historical legacy.’

<em>Source : Straits Times - 21 Apr 2008</em>

RESIDENTS of Wheelock Properties’ new The Sea View condominium will be able to take pride in the fact that they have a classic piece of Singapore’s history in their estate.

Conservation work on the stately Neo-classical style bungalow off Amber Road formerly known as Pavilion has been completed, Wheelock said in a press release yesterday. Pavilion was built in the early 1900s and was owned by the Elias family, an established Jewish family at the time. The bungalow was gazetted for conservation in 2004.

The developer spent $1.3 million on conservation, retrofitting and furnishing the 5,000 sq ft double-storey clubhouse which will house two games rooms, a multi-purpose room with a pantry and a function room.

The extensive work done includes both the external and internal structure. Some key features include a panoramic 12-panel stained glass above the grand entrance and cast iron railing on the verandahs of both floors.

‘We volunteered to conserve the house as we felt that it was worth preserving a piece of history. The architecture of the house is seen as key to the charming character of the Amber Road/Katong area,’ explained Wheelock Properties (Singapore) director Tan Bee Khim.

Wheelock has also invested almost $500,000 on two art installations at the clubhouse. Both works by renowned local artist Kumari Nahappan spell life and energy for the space and provide visual focal points and vibrant colour contrast to the seamless landscape of water and greenery.

Source : Business Times - 21 Apr 2008

Katana II tagged at RM1,600-1,900 psf, double price of first project in 2005

BOUTIQUE firm Katana Developments, which is linked to Oriental Holdings chairman Loh Cheng Yean, will launch its second residential project in Kuala Lumpur at RM1,600-1,900 (S$687-815) per square foot.

This represents an increase of about 100 per cent over its first KL development in 2005.

Katana director Sherman Lim said: ‘High-end properties in Kuala Lumpur have easily more than doubled since 2005.’

Pointing out the crucial difference between developing property in Singapore and Malaysia, Mr Lim said that in Singapore, land costs typically accounts for up to 70 per cent of the investment costs while in Kuala Lumpur, it might be as little as 20 per cent.

This is why location alone is not the only distinguishing factor in a Kuala Lumpur property.

‘You can have two properties side-by-side and yet they could be very different, depending on the design and construction,’ added Mr Lim.

For Katana II, the developer engaged award-winning Singaporean firm W Architects to undertake the design. This is in line with the company’s credo of, ‘doing something more design-driven’.

Located in Kuala Lumpur’s ‘embassy row’, Katana II will have 40 units, comprising a mix of townhouses, triplexes, duplexes and lofts. Of these, there will be six penthouses with private lap pools.

Another award-winning Singapore firm, SCDA Architects, designed the 30-unit Katana Residences, which is now fully taken up after the developer sold the remaining 10 units it held for investment last year for RM1,400-1,700 psf.

Meanwhile, in the pipeline is The Boulevard Katana in Penang, expected to be launched in the third quarter of the year.

Source : Business Times - 15 Apr 2008

Email lushhome@gmail.com for more information.