Saturday, January 14, 2012

Singapore Property News - 2012 2nd Week

Oversupply of Luxury Property
Singapore is facing an oversupply of luxury homes in 2012 while their primary buyers, foreigners, are required to pay 10% Additional Buyer's Staamp Duty tax since December 2011.
According to property consultancy CBRE, there are at least 25 launch-ready projects in districts 9 through 11 in the market. These districts are prime areas for high-end homes. The projects—including Ardmore 3, Leedon Residence and TwentyOne Anguilla Park opposite Wheelock Place—are made up of more than 2,000 unsold units.
CBRE also revealed that at least 30 already-launched projects in these districts still had at least 2,846 homes (or 50% of their units) unsold as of the end of November last year. Majority of these unsold homes came from the D'Leedon (with 1,257 of 1,715 units unsold), the Twin Peaks (413 of 462 unsold), the Hilltops (208 of 241 unsold); and the The Scotts Tower (200 of 231 unsold).
Taken into account all the homes that were not even released for sale, the stock of high-end homes stands at 5,903. This number excludes the luxury units of Sentosa Cove, where sales have also slowed drastically. According to caveats lodged with the Urban Redevelopment Authority, there were only 12 new sales in Sentosa Cove for the whole of 2011. 
 Show flat buzz not translating to sales
European debt problems has started to bite in Singapore's growth, banking and financial industry players are laying off workers, an oversupply of flats are entering the market from 2012 and new measures effected 10% of all private property buyers (foreigners) in Singapore. So there is no rush to buy a property now, which can turn into a 30% loss in the next few years:

The Straits Times has reported that Qingjian Realty’s Riversound Residences in Sengkang East Avenue has attracted “hundreds of viewers”. In spite of the traffic, UBS Investment Research reported a “lukewarm take-up” of the project. Only 50 of the 250 units launched at the estate were sold, at an average price of $850 per sq ft (psf). For instance, one four-room flat spanning 1,259 sq ft sold for $1.13 million (or $896 psf) after discounts. The project comprises 590 apartments. 
Property agents told The Straits Times some 700 home seekers visited the showflat over two days, but the majority of them were only looking around, not planning to make a purchase.
Indeed, this trend seemed to carry across other launches. For one, the 577-unit Archipelago at Bedok Reservoir faced a similar sales slump. Its developer UOL Group declined to provide The Straits Times with numbers, but said, “We are pleased with the interest and level of visitors at our showflat over the last few days. 
“We had transactions done over the weekend. Buyers are taking more time to commit and we hope to see more sales going forward,” it added. Source : Show flat buzz not translating to sales


  1. Singapore Property is one of the best city for living in the world. Therefore buying or renting properties in Singapore is a wise choice for most investors.

  2. Hi h,

    Buying a property from its peek, most probably the current situation in Singapore property, may not be wise at all for most investors.