Latest News on Sky Habitat and Sentosa Cove Properties

'Sky Habitat effect' lifts sales in other estates	Straits Times: Sat, Jun 16
INCREASING numbers of buyers are turning their interest back to some housing projects that seemed to have run out of puff, thanks to what some agents are calling the Sky Habitat effect. Sky Habitat is the CapitaLand's 509-unit project in Bishan Central that grabbed headlines in mid-April with record high prices of about $1,700 per sq ft (psf). That level of pricing put it on a par with prime condos and while sales have been tepid since its launch, it seems to have ignited interest in some estates launched before Sky hit the market. City fringe and city centre projects with comparable or lower prices now look increasingly attractive while similar suburban estates have also gathered more attention. While new home sales were buoyant in March and nearly hit a three-year high in April, consultants do say that if a new project is launched at a record price it often creates a ripple effect which lifts both new sales and resales in neighbouring developments. Buyers told The Straits Times they came across many property agents using the Sky Habitat pricing as a benchmark comparison. Thomson Grand and Rochelle at Newton and My Manhattan in Simei were launched before Sky and have all recorded increased sales in recent months. GPS Alliance chief executive Jeffrey Hong noted that the 361-unit Thomson Grand, which is near Sky Habitat, enjoyed higher sales once the CapitaLand project came into the picture. 'We've heard of some agents calling back old clients, marketing Thomson Grand to them again. The price difference between both projects is about $500 psf; this means savings of $500,000 for a 1,000 sq ft apartment,' he added. The 99-year leasehold project found only three buyers in January but sales gradually climbed to 52 in February, 54 in March and finally sold out with the remaining 68 units snapped up in April. Median prices were about $1,300 psf. OrangeTee managing director Steven Tan said projects such as Rochelle at Newton have recorded sales spike in recent months. While only about 12 units in Rochelle were sold in all of last year, more than 20 were sold in March and April alone at average prices of $1,400 psf - well-below Sky Habitat's pricing. Similarly, 301-unit My Manhattan, quiet on the sales front for a while, moved about 45 units in the past two months. Archipelago in Bedok Reservoir has also seen a revival. Between 30 and 40 units were sold in January and February, followed by a spike in sales in March and April with more than 90 units going as the market got wind of Sky Habitat's record pricing a few weeks before its launch. Even projects launched shortly after 99-year leasehold Sky Habitat was previewed have recorded robust buyer interest. For instance, UOL's 244-unit Katong Regency in Paya Lebar, priced at an average of $1,500 to $1,600 psf, was sold out within a few days. It launched four days after Sky Habitat. The mixed-use project built on top of a shopping mall, with its freehold status and city fringe location, looked very attractive in comparison with Sky, experts said. 'It is quite common that agents are using Sky Habitat's pricing as a market indicator,' OrangeTee's Mr Tan noted. 'Some buyers have been waiting for prices to come down but when they see a new benchmark price being set in the market, they have decided to commit now instead.' The irony is that Sky Habitat itself has not been a star performer. The condo, designed by renowned Israeli architect Moshe Safdie, moved 125 units during its first weekend of launch in mid-April but sales have since flatlined with only an additional four units sold as at the end of May. Urban Redevelopment Authority data show that prices ranged from $1,435 to $1,893 psf. Last month, some buyers also had a change of heart, returning 10 units they had bought. [e-mail] Ripple effect on sales at other developments Thomson Grand Three buyers in January Sales climbed to 52 in February, 54 in March and finally sold out with its final 68 units snapped up in April Rochelle 12 units in sold in all of last year More than 20 were sold in March and April My Manhattan Quiet on the sales front for a while Moved about 45 units in the past two months Archipelago Sold 30 to 40 units in January and February Sales spike in March and April with more than 90 units going Source: The Straits Times
» Sharp fall in Sentosa Cove home sales	Straits Times: Sat, Jun 16
ONCE a hot spot for well-heeled home hunters, Sentosa Cove seems to have lost a bit of its lustre amid sluggish sales and a general slowdown in the luxury home sector. Property consultants attribute the change in mood to the lack of new launches on Sentosa, attractive deals elsewhere and foreign buyers being deterred by the additional buyer's stamp duty. Since the start of last year, there have been about 30 transactions for landed homes on Sentosa, compared with 62 in 2010 alone, said Savills Singapore's research head Alan Cheong. Including non-landed homes, there have been 101 transactions since last year, which pales in comparison with the 203 in 2010. That year, The Residences at W and Seascape were launched. 'The lack of new launches doesn't create activity and sometimes dampens market interest instead,' Mr Cheong explained. He added that some buyer interest has been diverted to other launches on the mainland. 'The sales at current launches have stalled because all the units with pro-sales attributes have been taken up,' he said. Potential buyers may also have been distracted by good deals in prime districts 9, 10 and 11. For instance, the 99-year- leasehold D'Leedon in Farrer Road is selling at an average $1,450 per sq ft to $1,600 psf, compared with Sentosa Cove condominiums which fetch more than $2,000 psf. The recent imposition of cooling measures also had a 'significant impact' on foreign purchases, noted CBRE Research. Mr Cheong said the slump in Sentosa Cove is 'part of an islandwide phenomenon for high-end homes'. According to first-quarter property data from the Urban Redevelopment Authority, 1,559 uncompleted high-end private homes had been sold since last year. In 2010 alone, 3,946 units were sold. '(It) does not reflect the loss of popularity of the island as an investment destination,' he said. All Sentosa Cove homes are leasehold; the area is tracked by property observers as it is seen as an exclusive segment of the real estate market. In the next couple of years, about 2,500 upscale private homes are expected to be ready in the area, noted Mr Nicholas Mak, research head at SLP International Property Consultancy. But there are still unsold units at various projects. For instance, Seven Palms Sentosa Cove has more than 30 unsold units. The Green Collection, a 20- unit strata-landed development, has not been launched. 'These are the last few and very exclusive. The developer probably wants to find buyers willing to pay exclusive prices, and also make sure there is enough interest first,' Mr Mak said. Slow sales aside, prices at Sentosa Cove have held up, even though they dipped briefly during the 2009 recession. Prior to that, prices rose steadily from 2004 and peaked in 2008, Mr Mak said. In the first quarter of this year, the average transacted prices of landed homes and non-landed units were $2,135 psf and $2,418 psf, respectively. In 2009, they were $1,575 psf and $1,691 psf. But fewer Singaporeans are buying Sentosa homes, he said. The proportion of foreigners has risen - possibly as it is far easier for them to buy landed homes there than on the mainland. Overall, there is still interest in Sentosa properties, with some buyers willing to pay hefty prices to own a unit, experts said. 'I think the prices and sales at Sentosa Cove will go through the market cycle like the rest of the property market,' Mr Mak said. 'The stock of private homes (at Sentosa Cove) is limited. Also, it has some waterfront homes and there's a certain appeal to the address.' [e-mail] Source: The Straits Time