The Business Times - Nov 12
The Woodleigh Residences sold 60 per cent of the 50 units released for sale during the soft launch, which prompted joint developers Kajima Development and Singapore Press Holdings to release another 50 units.
Units sold over the weekend achieved an average of above S$2,000 per square foot.
The 99-year-leasehold property comprises two-, three-, and four-bedroom units, which start at S$1,873 psf. A two bedroom apartment has a starting price of S$1.088 million, while the four-bedroom units are S$2.55 million onwards.
Tricia Song, Head of Research:
The presales were encouraging given the near-term supply in the immediate vicinity of Bidadari. The joint developers should be confident that takeup would improve as the new town takes shape. Based on the average price of SGD2,000 psf, the Woodleigh Residences is priced at a 14-29% premium to its nearby pure residential new launches Park Colonial and Tre Ver. The latter projects also had a head start in soaking up any captive demand in the locality. Park Colonial has sold 503 units or 62% of its 805 units since its launch in July 2018 at an average price of SGD1,750 psf. Tre Ver, slightly further away from the MRT, sold 191 units or 26% of its 729 units since launch in August.
The Business Times - Nov 08
Colliers International's data shows average CBD Premium and Grade A rental value rose 4.3 per cent to S$9.20 per square foot per month in the third quarter of 2018 over the previous quarter.
The rental figure for Q3 2018 reflects an increase of 12.1 per cent from Q4 last year.
The property consulting group is forecasting a full-year rise of 14 per cent - the first double-digit annual growth since 2011 and the fastest pace of increase since 2010.
The 4.3 per cent quarter-on-quarter (q-o-q) rental appreciation for Q3 this year was stronger than the 2. 6 per cent q-o-q growth in Q2 2018.
Duncan White, Head of Office Services:
The market is acutely aware of the tight office vacancy rate and muted future supply, and this likely prompted a series of consolidation and relocation activity by multinational corporations in Q3 2018. We expect keen competition for prime upcoming supply and would advise occupiers to review portfolios early, as CBD Premium and Grade A vacancy should stay firmly below 6% over the next three years.
Tricia Song, Head of Research:
Strong headline rent growth and declining incentives probably underpinned the uplift in effective rents during the quarter. Cumulatively, CBD Premium and Grade A rents have climbed by 12.1% in the first nine months of this year.
We expect the steady upward rental trend to persist over the next two years, with average rent rising an estimated 8% YOY in 2019, and a further 5% YOY over 2020. However, we acknowledge the risk that our rent forecasts may prove too high if turbulence in stock markets continues and results in reduced demand from finance sector occupiers, which account for about 45% of Grade A office space in Singapore’s CBD.
The office supply drought over 2019-2021 should keep CBD Grade A vacancy tight, below the 10-year average of 6.2%, even after accounting for the impact of slowing net absorption in 2020 and 2021 in accordance with consensus forecasts of a global economic dampening. Click here to download the report