Friday, April 27, 2012

Prices of private residential properties register marginal decline in 1st quarter 2012

27 April 2012
Prices of private residential properties register marginal decline in 1st quarter 2012

The Urban Redevelopment Authority (URA) released today the real estate statistics for 1st Quarter 2012.

PRIVATE RESIDENTIAL PROPERTIES

Prices and Rentals

Prices of private residential properties fell marginally by 0.1% in 1st Quarter 2012, compared with the 0.2% increase in the previous quarter. This was the first quarterly fall in prices since 2nd Quarter 2009, following nine consecutive quarters of declining price increases. 

Prices of non-landed properties in Core Central Region (CCR)1  and Rest of Central Region (RCR) both fell by 0.6% in 1st Quarter 2012, compared with the 0.5% and 0.1% respective increase in the previous quarter. For Outside Central Region (OCR), prices increased by 1.1% in 1st Quarter 2012, compared with an increase of 0.6% in the previous quarter (see Annexes A-1, A-2 & A-62).



Rentals of private residential properties registered a lower rate of increase compared to the previous quarter. Rentals increased by 0.3% in 1st Quarter 2012, less than the 0.4% increase in the previous quarter (see Annexes A-3 & A-4).  The rate of increase in rentals has been moderating for three consecutive quarters, since 3Q2011.

Launches and Take-up

A total of 6,903 uncompleted private residential units were launched for sale by developers in 1st Quarter 2012, compared with 4,105 units in 4th Quarter 2011 (see Annex C-1).

6,458 uncompleted private residential units were sold by developers in 1st Quarter 2012, compared with 3,525 units in 4th Quarter 2011. Take-up of shoe-box units (i.e. smaller than 50 sqm) accounted for 27% (or 1,764 units) of new sales in the quarter (see Annex C-3).  Lower-priced units less than $750,000 accounted for 42% (or 2,766 units) of new sales in 1Q2012, much higher than the 25% (or 911 units) seen last quarter (see Annex C-3).  Overall, many of these units are located in the suburbs, as 82% of the new units sold by developers were from OCR in 1Q2012 (see Annex C-2).

Resales and Sub-sales

The volume of resale transactions declined for the third consecutive quarter to 1,906 units in 1Q2012. This was the lowest since 1Q2009, which had 1,143 resale transactions. Resale transactions accounted for only 21.8% of all sales in 1Q2012, a historical low since such data was collected in 1999 (see Annex D). Prices for completed non-landed properties (ie. resales) declined by 0.7%, compared to the 0.2% price increase for uncompleted non-landed properties (see Annex A-1).

Sub-sales accounted for 3.6% of all sale transactions in 1st Quarter 2012, lower than the 9.1% recorded in 4th Quarter 2011 (see Annex D).

Supply in the Pipeline

As at the end of 1st Quarter 2012, there was a total supply of 78,572 uncompleted private residential units from projects in the pipeline3, higher than the 77,089 units in 4th Quarter 20114 (see Annexes E-1 & E-25).  The pipeline supply of 78,572 units was the highest ever recorded since such data were first available in 1999. Another 4,100 private housing units are expected to come from sites that had been sold or had been released for sale via the 1st Half 2012 GLS Programme.

Of the supply in the pipeline, 36,552 units remained unsold as at 1st Quarter 2012. The unsold units comprised 10,729 units in CCR, 8,895 units in RCR and 16,928 units in OCR (see Annexes B-1 & B-2).

Stock and Vacancy

The stock of completed private residential units increased by 2,152 units in 1st Quarter 2012. The vacancy rate of completed private residential units increased from 5.9% as at the end of 4th Quarter 2011 to 6.0% as at the end of 1st Quarter 2012 (see Annex E-1).

Executive Condominiums

The total stock of completed Executive Condominium (EC) units remained unchanged at 10,430 units as at the end of 1st Quarter 2012. However, there were 7,139 EC units in the pipeline (see Annex E-1).  Another 2,900 EC units are expected to come from EC sites that had been sold or had been released for sale via the 1st Half 2012 GLS Programme.

Developers launched 1,864 new EC units for sale in 1st Quarter 2012 (see Annex F).  Developers also sold 1,557 uncompleted EC units in 1st Quarter 2012, compared with 432 units sold in 4th Quarter 2011. 

OFFICE SPACE

Prices and Rentals

Rentals for office space, based on leases which had commenced, decreased by 0.5% in 1st Quarter 2012, compared with the increase of 0.3% in 4th Quarter 2011 (see Annexes A-3 & A-5). Prices of office space remained unchanged in 1st Quarter 2012, compared with the 1.0% increase in the previous quarter (see Annex A-1).

Supply in the Pipeline

As at the end of 1st Quarter 2012, there was a total supply of about 762,000 sq m GFA of office space in the pipeline (see Annexes E-1 & E-2). 

More supply of office space will also come from the GLS sites which were sold by the Government in 2011. This includes the commercial sites at Robinson Road / Cecil Street and Peck Seah Street / Choon Guan Street. In addition, more supply of office space is also expected from the development of the 6 plots of land at Marina Bay and Ophir Road / Rochor Road to be jointly developed by M+S Pte Ltd.

Stock and Vacancy

The amount of occupied office space increased by 53,000 sq m (nett) in 1st Quarter 2012, as compared to the increase of 50,000 sq m (nett) in the previous quarter.  On the other hand, the stock of office space increased by 97,000 sq m (nett) in 1st Quarter 2012. The island-wide vacancy rate of office space as at the end of 1st Quarter 2012 increased to 11.7%, from 11.3% as at the end of 4th Quarter 2011 (see Annexes A-5 & E-1).  

SHOP SPACE

Prices and Rentals

Rentals for shop space, based on leases which had commenced, increased by 0.1% in 1st Quarter 2012, compared with the 0.5% increase registered in 4th Quarter 2011 (see Annexes A-3 & A-5).  At the same time, prices of shop space increased by 0.2% in 1st Quarter 2012, same as the rate of increase registered in the previous quarter (see Annex A-1). 

Supply in the Pipeline

As at the end of 1st Quarter 2012, there was a total supply of 488,000 sq m GFA of shop space from projects in the pipeline (see Annexes E-1 & E-2).

Stock and Vacancy

The amount of occupied shop space decreased by 13,000 sq m (nett) in 1st Quarter 2012.  On the other hand, the stock of shop space increased by 5,000 sq m (nett) in 1st Quarter 2012. The island-wide vacancy rate of shop space was 5.8% as at the end of 1st Quarter 2012, compared with the 5.3% vacancy rate as at the end of 4th Quarter 2011 (see Annexes A-5 & E-1).  

INDUSTRIAL SPACE

Prices and Rentals

Prices of multiple-user factory space increased by 7.2% in 1st Quarter 2012, compared with 3.8% in the previous quarter (see Annex A-1).  Rentals of multiple-user factory space increased by 1.3% in 1st Quarter 2012, compared with the increase of 0.6% in the previous quarter (see Annex A-3).

Supply in the Pipeline

As at the end of 1st Quarter 2012, there was a total supply of 3.696 million sq m GFA of factory space from projects in the pipeline (see Annexes E-1 & E-2).

Stock and Vacancy

The amount of occupied factory space increased by 199,000 sq m (nett) in 1st Quarter 2012, higher than the increase of 196,000 sq m (nett) in 4th Quarter 2011. On the other hand, the stock of factory space increased by 200,000 sq m (nett) in 1st Quarter 2012. The vacancy rate of factory space remained unchanged at 6.8% as at the end of 1st Quarter 2012 (see Annex E-1).

URA’S REAL ESTATE INFORMATION SERVICE

More detailed information on the price and rental indices, supply in the pipeline, stock and vacancy position of the various property sectors can be found in the Real Estate Information System (REALIS), an online database of URA.
More information on REALIS can be found at http://spring.ura.gov.sg/lad/ore/login/index.cfm.  You can also contact the REALIS hotline at 6329 3456. 1     Core Central Region comprises postal districts 9, 10, 11, Downtown Core Planning Area and Sentosa. A map of Central Region showing the Core Central Region (CCR) and the Rest of Central Region (RCR) is available at:  http://spring.ura.gov.sg/lad/ore/login/map_ccr.pdf
3       The term “projects in the pipeline” refers to new development and redevelopment projects with planning approvals, i.e. either Provisional Permissions (PPs) or Written Permissions (WPs). A WP is a final approval granted under the Planning Act for a proposed development, as compared with a PP, which is a conditional approval.
4    The expected completion dates of private residential projects in the pipeline are provided by the developers of these projects.
5       More detailed data on supply in the pipeline by market segment, development status and expected year of completion can be found at http://www.ura.gov.sg/propertyinfo.

Summary of Key Information for 1st Quarter 2012
Comparison of Property Price Index for 4th Quarter 2011 and 1st Quarter 2012Price Indices of Non-Landed Properties by Locality and Completion Status. Comparison of Rental Index for 4th Quarter 2011 and 1st Quarter 2012Rental Indices of Non-Landed Properties by Locality Median Rentals and Vacancy of Office and Shop Space Chart of Property Price Index by Type of PropertyChart of Residential Property Price Index by TypeNumber of Unsold Private Residential Units from Projects with Planning Approvals Number of Unsold Private Residential Units from Projects with Planning Approvals by Market Segment Number of Uncompleted Private Residential Units Launched in the Quarter by Market Segment Number of Private Residential Units Sold in the Quarter by Market Segment Number of Private Residential Units sold by Size and PriceNumber of New Sale, Sub-Sale and Resale Transactions for Private Residential Units by Market Segment Stock & Vacancy and Supply in the Pipeline as at End of 1st Quarter 2012Supply in the Pipeline by Development Status and Expected Year of Completion as at End of 1st Quarter 2012Number of Executive Condominium Units Launched and Sold in the Quarter
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Source From URA

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