June 2012: Property investors are still in buying mood

Home hunters still in buying mood	Straits Times: Tue, Jun 26
HOME hunters have been snapping up units over recent weeks and propping up developer sales amid a market slump, but some consultants expect the June tally to be weaker than last month's. New private home sales for last month were 1,702 units, excluding executive condominiums, but Mr Tan Kok Keong, OrangeTee's research and consultancy head, said the June figure could come in as much as 10 per cent lower. Buyers have been especially keen on suburban and city fringe projects such as the newly launched Cradels, where 65 units have been sold since its launch last Saturday. The freehold condominium near Novena MRT station has a total of 125 units costing about $1,500 per sq ft. A one-bedroom unit of nearly 500 sq ft starts from about $600,000. Tong Eng Group's Tropika East, which launched on June 9, has sold 59 of its 105 units, with 14 moved in the past two weeks. Three-bedroom units are priced from about $1.3 million. The 376-unit Sea Esta in Pasir Ris has sold about 250 units since its preview on June 10. One-bedroom units of 517 sq ft or more are available from $488,000. Three-bedroom units of at least 904 sq ft start from $760,000. Qingjian Realty has sold more than 250 units out of the 410 released at its River Isles in Punggol. The 610-unit condominium, launched on June 2, is priced from $830 psf to $850 psf. Far East Organization has sold 27 units over the past week across its projects, with Seahill and Seastrand the top performers. Sales also held up in the luxury sector. Aurum Land's 1919 at Mount Sophia has sold out its 75 units since the June 9 launch. Units cost at least $1.12 million, and were sold for $2,000 psf to $2,200 psf. OrangeTee's Mr Tan said he was surprised at 1919's showing, given the slump in the luxury segment, although he noted that the project is near schools and other facilities. 'Mass market sales have been quite good because the pricing is in line with neighbouring launches in those areas... a factor for good sales,' he said. He expects June sales to dip 5 per cent to 10 per cent from last month, due to the lack of big launches. Weak sentiment stemming from Europe's debt crisis and faltering stock markets have also affected buyers, said Chesterton Suntec International research head Colin Tan. 'It is slow, but still moving... there is still underlying core demand that continues to absorb the supply that is being pushed out,' he said. Separately, Bugis Cube, a commercial development, has sold 77 strata-titled retail units, out of 91 available, since its launch last Saturday. Bugis Cube, opposite Bugis Junction, is owned by Griffin Real Estate Investment Holdings. Units there are selling for between $3,000 psf and $7,200 psf. Each unit is priced between $564,000 and $10 million, and will host shops, food and beverage outlets and clinics. [e-mail] Source: The Straits Times
85% of units launched at Bugis Cube sold	Business Times: Tue, Jun 26
THE official launch of Bugis Cube, a 999-year-leasehold development, attracted brisk sales over the weekend, with 77 of the 91 units launched sold. The project drew interest from both retailers and investors, with units sold averaging 33 square metres (355.2 sq ft), said Mary Sai, executive director at marketing agent Knight Frank. The 14 remaining units are spread across the second and third storeys, and average 27 sq m to 33 sq m. Located opposite Bugis Junction and a short walk from Bugis MRT Station, Bugis Cube will span six floors of retail and F&B space. Unit sizes range from 129 to 635 sq ft, with prices ranging from $2,900 per square foot (psf) to $7,500 psf, depending on the exact size and siting of the unit. Every shop will be fitted with a water point and F&B outlets will be provided with a grease trap. The development is 92 per cent owned by ERC Holdings subsidiary Griffin Real Estate Investment Holdings. Ms Sai said that the project received encouraging response from both retailers and investors in the during the preview phase. Investors have been lured to commercial properties following the raft of cooling measures imposed on residential properties. There were 611 transactions of strata retail units totalling $656 million last year, up from 543 deals worth $608.l2 million in 2010. In the first three months of this year, there were 208 transactions totalling $156.7 million. Source: Business Times