Buyers mop up more new homes in May amid surge in launches

The Business Times - June 18
The 29.5 per cent month-on-month rise in developers' private home sales in May amid a flurry of nine new project launches - suggests that fears of a trade war do not seem to have dampened property market sentiment too much.

"The concern going forward is the external environment and how it will affect sentiment," said a seasoned property consultant.

"But based on the data so far, I do not think that external factors have filtered through to the market. If they had, the demand would be much weaker and developers would be less gung-ho about launches."

Tricia Song, Head of Research:
Developers have now sold 3,525 new private homes (excl. ECs) in the first five months of the 2019 – up by 2.6% from the 3,436 units sold over the corresponding period in 2018. 

Developers’ sales rose by 29.5% month-on-month to 952 units (excluding Executive Condos) in May. This brings the takeup-to-launch ratio to 68%. On a year-on-year comparison, developers sold 15.2% fewer units as May 2018 had a major mass market launch, 520-unit Twin Vew, which sold 454 units at a median price of SGD1,385 psf.

The nine new projects launched in May contributed to 29.8% of the total developers’ sales last month. Two new launches -- Amber Park and Parc Komo topped the charts, while the bulk of the developers’ sales in May came from the earlier launches. Read our analysis


Rapid e-commerce growth to drive Singapore's logistics services sector: Colliers report

The Business Times - June 17
The rapid growth in e-commerce demand for retail purchases represents an opportunity for the logistics services market to grow further in Singapore, said Colliers International in a report. 

The Glimpsing the Road Ahead: Reshaping the Logistics Market report, citing a study by the payments technology company WorldPay, said the e-commerce market in Singapore is tipped to expand 48 per cent to US$7.4 billion by 2022 at a compound annual growth rate of 7 per cent.

Singapore is ranked seventh globally, and second in Asia - behind Japan - in the World Bank’s 2018 Logistics Performance Index, and 12th in 2018 in the world’s busiest airports by cargo traffic, ahead of well-known international cities such as Los Angeles, Beijing, London and Chicago.

David Faulkner, Managing Director of Valuation & Advisory Services, Asia:
Consumer expectations, technological breakthroughs and rapid development in e-commerce have reshaped the landscape of logistics systems in Asia and are blurring the traditional market roles. The continued demand for logistics space and labour is redefining how warehouses are being built today. 

Asia logistics property investment remains attractive with yields ranging between 4.3% and 6.1% in Q1 2019. We expect the sector to continue to perform well in 2019 with rents and capital values rising further. However, tradable logistics assets in mature markets are scarce and investors may need to search for assets in emerging markets such as non-Tier 1 Chinese cities and cities near Seoul. Download report here


China buyer signs S$31.5m deal for 3 Orchard By-The-Park penthouse

The Business Times - June 13
A Chinese citizen is understood to have been granted an option to buy a five-bedroom penthouse at YTL Land & Development's 3 Orchard By-The-Park project for S$31.5 million.

This works out to S$4,805 per square foot for the 6,555 sq ft triplex unit. The psf price is the highest registered so far among the units which YTL has sold to date in the completed freehold development near the upcoming Orchard Boulevard MRT Station.

The condominium has a total of 77 residences in three 25-storey towers.

Tricia Song, Head of Research:
Based on URA data, foreigner buyers still accounted for 5-6% of total transactions as of Q1 2019 post the recent property cooling measures, while the percentage of foreigner buyers made up about 12.7% of transactions in Q1 2019 in the Core Central Region (CCR), reflecting the preference of foreigners for prime properties. In the CCR, the top five nationalities of foreigner buyers were: Mainland Chinese (31%), Indonesians (13%), US Citizens (9%), Malaysians (6%) and Hong Kongers (3%) in 2018.