|
|
|
Property sales test price ceiling
According
to DTZ, units selling for $600,000-plus to $800,000 were the most
popular from January to April. In DTZ's analysis of 4,401 caveats
captured by URA, 1,515 or 34 per cent were lodged for apartments in
this price range.Of these 1,515 caveats, 92 per cent were for units
outside prime districts 1, 4, 9, 10 and 11. And 93 per cent were for
units of less than 1,400 sq ft.
Projects where plenty of recently released units were in the sweet
price range include Double Bay Residences in Simei, Mi Casa in Choa Chu
Kang and Waterfront Waves. Savills (Singapore) has reached a similar
conclusion from its own study of caveats - units below $800,000 have
been most popular in the outside central and rest of central regions.
Even in the core central region, it has been possible to find smaller
units for less than $800,000 - and buyers favour them. At The Mercury
near River Valley, for instance, 27 of 38 caveats lodged (71 per cent)
were for units priced below this level. Based on DTZ and Savills'
studies, buyer resistance generally sets in at $1 million to $1.5
million. DTZ noted that only 16 per cent of the 4,401 caveats lodged
from January to April were for units costing $1 million-plus to $1.5
million, while a mere 5 per cent were for units costing $1.5
million-plus to $2 million. Buyer resistance is unlikely
to apply as far as the ultra-rich are concerned. DTZ's data shows 4 per
cent of caveats in January to April were lodged for units worth more
than $2.5 million. These include caveats for three apartments at
Ardmore Park each worth more than $5 million. There were also caveats
for 23 Gallop Gables units priced from $2.5 million to $4 million.
- The Business Times, P1
|
|
Private home sellers raise asking prices
Asking
prices for some properties that have just been completed or are close
to completion have jumped significantly in recent months. Still, lower
prices have also played a part in stronger sales. Some recent launches
have done well after developers finally cut their asking prices. For
instance, Parc Centennial in Kampong Java Road is now sold out, after
developer EL Development relaunched the 44 remaining units at an
average price of $1,175 psf, about 20 per cent lower than last year's
average price. But individual sellers are tending to raise, not lower,
prices. For instance, some sellers of high-floor units at Marina Bay
Residences are advertising their properties at $2,000 psf or more -
regarded by analysts as a key resistance level for many buyers. In late
February, an ad for RiverGate units displayed prices of $1,118 psf to
$1,399 psf. But last week, some ads for RiverGate, at Robertson Quay by
the Singapore River, offered units at prices starting from $1,380 psf,
with one ad even offering two three-room units at $1,900 psf. Some
sellers, with an eye to the longer term, are actually withdrawing
properties from the market, sensing an uptick in sentiment. Compared
with the situation three months ago, sellers are more willing to
negotiate prices today as there are more keen buyers. Market sentiment
has improved, but it is still early days as short-term fundamentals
have not exactly corrected.
- The Straits Times, B18
|
|
Property issues in spotlight
Shares
of property developers led the market's charge last week, on optimism
that the real-estate sector will be one of the first to benefit when
the economy turns the corner. CapitaLand, for example, was up over 10
per cent to $3.80 last week, compared to a 3.7 per cent gain in the
STI. The stock is also up 37.7 per cent for May. One of the most
actively traded contracts last Friday was a call warrant on CapitaLand
issued by Macquarie Bank, which has a strike price of $3.283 and
expires on Oct 2. It gained five cents to 46.5 cents with 20.46 million
units traded.
- The Straits Times, B14
|
|
FY09 profits ending March fall 24.8%
Out
of the total 83 companies that reported their results as at last Friday
- including those with no comparable year-on-year earnings - 58 are in
the black, while 25 made losses. Ascendas Real Estate Investment Trust
(A-Reit) saw a 12.6 per cent rise in full-year net profit to $211
million, from $187 million previously. Rental rates are also expected
to weaken by 10 per cent to 15 per cent in anticipation of a decline in
demand from most sectors, apart from oil and gas and infrastructure. Singapore's
largest company by market cap - Singtel - posted full-year net profit
of $3.45 billion, down 12.9 per cent from $3.96 billion a year ago.
- The Business Times, P5
|
|
Indiabulls Reit posts net property loss of $568,000
The
Reit trust also booked a $1.01 billion impairment loss on development
properties and a $232.1 million loss due to changes in fair value on
investment property. These two items have not impacted on the trust's
cashflows or credit facilities. Inclusive of a $284 million income tax
credit due to reversing deferred tax liability in tandem with the
reduction in portfolio valuation, the trust posted a net loss of $960.1
million for the latest period, against a $52.8 million net income
forecast in its prospectus. One
Indiabulls Centre Tower 1 has since been completed, with the second
tower also completed except for the top floors for which the relevant
regulatory approvals are pending. Also, Tower 1 of Indiabulls Finance
Centre has been completed to initial plans. The board has decided to
stick to its earlier plan to include a residential component at One
Indiabulls Centre, and the plan is to launch the residential project
shortly.
- The Business Times, P7 |
Comment Notification
Subscribe to this post's comments using
|
|
|