Encouraging sales during last weekend’s VIP preview at Parc Rosewood, where 181 of the 236 available units were sold, will result in developer Kensington Land Pte Ltd increasing its prices when the project is officially launched this weekend.

The company, a joint venture between mainboard-listed Fragrance Group Ltd and World Class Land Pte Ltd, had previously reduced prices at the project close to Woodlands Regional Centre by between 8 and 10 percent as a result of December’s latest cooling measure.  It has not revealed the level of price increases, stating the percentage increase will be determined in due course.

Some 85 percent of buyers at the preview were Singaporeans, with the remaining 15 percent being permanent residents (PRs), the company revealed.

“While it is still early days yet, the great response we’ve received at the VIP preview shows that there is a public demand for developments with luxurious concept, strategic location and highly attractive price point. Parc Rosewood embodies these qualities and offers a uniquely exciting opportunity for home buyers and investors alike,” said Koh Wee Seng, Director of Kensington Land.

Comprising 689 residential units, most of which are one- and two-bedroom varieties, with three-bedroom units and penthouses also on offer, the picturesque Parc Rosewood is inspired by the notion ‘My Home, My Resort’.  Prices at the VIP preview start from S$398,000 for a one-bedroom unit, S$568,000 for a two-bedroom unit and S$778,000 for a three-bedroom unit.

Parc Rosewood will officially launch to the public on Saturday, February 4. The showroom at Rosewood Drive will open from 11am to 10pm daily. The VIP preview will continue until Friday, February 3 from 11am to 10pm.

A slew of new projects are set to be launched by property developers even as they mull over the best action to take in response to the additional buyer’s stamp duty (ABSD) set by the government.

Frasers Centrepoint, for instance, will launch its 99-year leasehold Twin Waterfalls executive condominium (EC) project (pictured) near Punggol MRT station, with e-applications opening on 10 February.

Units at the project are 20 percent cheaper compared to the recently launched Watertown, said Cheang Kok Kheong, Chief Executive Officer for Development and Property at Frasers Centrepoint Homes, noting that prices would range between S$720 psf and S$750 psf.

The developer also expects to launch Palm Isles, a 99-year leasehold condominium development, in the first week of April. The project comprises 429 units of garden homes located at Flora Drive, with an average price set at around S$900 psf.

It was not confirmed whether developers will shift to more competitive pricing soon, as it is still premature to judge the effects of the ABSD this early, said developers during the REDAS (Real Estate Developers’ Association of Singapore) Spring Festival luncheon.

According to Wong Heang Fine, President at REDAS and Chief Executive at CapitaLand’s Singapore residential arm, developers will likely respond to the ABSD in a different manner depending on the product and target market.

“We really have to see how things go in the next few months before we decide what our reaction would be to the government measures,” said Wong.

Mass market residential units have continued to receive overwhelming response, with The Tampines Trilliant executive condominium (EC) and Parc Rosewood condo boasting brisk sales.

At Sim Lian’s The Tampines Trilliant showflat (pictured), 149 units have been sold since bookings opened last Saturday, with 32 of the 48 double-storey penthouses snapped up as of 4pm yesterday. 24 of the 32 penthouses were sold to first-time home buyers.

Meanwhile, the five percent quota for second-timers in the initial launch period has also been fully taken up with the majority of buyers and their families currently living in the eastern region, including Bedok, Pasir Ris and Tampines.

Located at Tampines Central 7, the EC comprises 397 three-bedroom-plus-utility, 127 three-bedroom and 98 four-bedroom units, as well as 48 penthouses, each featuring a master bedroom with direct access to a personal open terrace on the top floor.

It is close to the TPE, ECP and PIE expressways and is five minutes away from the upcoming Downtown Line (DTL) 3 interchange. Shopping malls such as Century Square, Tampines Mall and Tampines 1 are also within walking distance.

Over at Woodlands, Parc Rosewood saw another 110 units sold last week, bringing the total number of units sold to more than 280.

“We are extremely encouraged that Parc Rosewood’s luxury resort concept and well-connected locality has been well-received by the public,” said Koh Wee Seng, Director of developer Kensington Land, a joint venture (JV) company between Fragrance Group Ltd and World Class Land Ltd.

“Home buyers and investors alike realise the exciting opportunity with the development’s attractive price point, with a total of more than 280 units being snapped up.”

Parc Rosewood comprises 689 residential units, ranging from one- to three-bedroom units and penthouses. It also features two commercial units and several facilities such as a gym and function room, clubhouse, first-storey lounge and clubhouse plaza at pool deck.

By Mr. Propwise

From the URA’s recent release of the 4Q2011 private residential property index, property price increases in Singapore have almost screeched to a halt. Prices were up just 0.2% in 4Q2011 on a quarter-on-quarter basis and 5.9% on a year-on-year basis. At the current levels the price index is 16.2% above the previous 2Q2008 peak, and 13.7% above the previous all time high in 2Q1996.

Figure 2 – Change in Property Price Index

What is interesting to note is that the rate of growth of the PPI has been slowing for 9 quarters, i.e. property price growth has been decelerating continuously, and is already close to zero. This is likely due to concern over the slowing economy, worrying global economic situation especially with the troubles in Europe and weak growth in the
US, combined with the dampening effect of multiple rounds of government measures.

I believe that residential property prices in Singapore are at a turning point and we are likely to see a quarter-on-quarter decline in the next 1Q2012 Property Price Index disclosure. Some analysts have estimated that prices were already down on a month-on-month basis in December 2011. The uncertainty is whether we will see a
sharp decline as during the 1997-1998 Asian Crisis and 2008-2009 Financial Crisis, or whether it will be a more gradual decline as we saw during the 2000-2004 Post-Dotcom Bubble and SARs era.

Figure 3 – Straits Times Index

Can Low Interest Rates Prop Up Property Prices?
However some believe that the abundant global liquidity situation could blunt or even reverse the decline in Singapore property prices. Led by the European Central Bank and Fed, governments around the world have been easing monetary policy and keeping interest rates low to prevent another crisis triggered by too much debt.

We’ve already seen a New Year rally in the Straits Times Index, and if you believe that the stock market is a leading indicator for the property market, then we could see property prices supported in the coming quarters. Anecdotally, mass market launches are still going strong and local investors’ appetite for property is still strong even as the Additional Buyer’s Stamp Duty has kept most of the foreigners away. For example, the recent launch of Parc Rosewood (by Fragrance Group and World Class Land) in Woodlands saw 165 of the 236 launched units sold at the $925-998 psf price range, 8-10% lower than initially guided. This followed the strong take up of Watertown in Punggol. But don’t forget that this decelerating price growth trend preceded the property bear markets that began in 3Q2000 and 3Q2008
(but not the one in 3Q1996). So regardless of whether you are more a “technical” or “fundamental” investor (or both), it pays to be cautious in this market. Supply in the Pipeline is at a Record High Supply, at 77,089 uncompleted private
residential units from projects in the pipeline, is at an all-time high since the URA started recording this data in 1999. At the same time volumes are falling – 4Q2011 sales of 3,603 new units (down 15% quarter-on-quarter) and
2,962 units (down 24% quarter-on-quarter) are both significant decreases. Of this record supply, 39,184 units remain
unsold as at 4Q2011 – this could present an overhang on the market for many quarters to come.

We’ve also seen widespread declines or Cash Over Valuations in the HDB market, which is a foreshadowing of a weaker private property market.

How Much Could the Market Fall?
I did a study of the previous 3 property market corrections and found that the PPI corrected
in the range of 19.9% to 44.9% and that the correction lasted from 4 to 15 quarters:
2Q1996 Peak to 4Q2008 Trough – 44.9% decline over 10 quarters
2Q2000 Peak to 1Q2004 Trough – 19.9% decline over 15 quarters
2Q2008 Peak to 2Q2009 Trough – 24.9% decline over 4 quarters

If history is anything to go by, what this means is that the correction could be longer and stronger than what most people are expecting. However, I believe that we will only see similar levels of price declines if there is an external crisis to cause a sense of panic, which we had in each of the previous 3 declines (e.g. Asian Crisis, Dotcom Bubble, Global Financial Crisis).

In National Development Minister Khaw Boon Wan’s latest blog entry, he highlights the need for more foreign construction workers to build the planned 25,000 BTO flats for this year. In addition to the earlier BTO projects which are still in progress, an estimated 30,000 construction workers, mostly foreigners, are required.

Of course, the matter of housing the workers has arisen, but finding suitable dormitories (especially far away from residential areas, as Singaporeans would prefer) has proven difficult.

As a possible solution, Mr Khaw has proposed increased productivity by way of standardisation and pre-fabrication for basic housing facilities such as walls, floors, doors, toilets and rubbish chutes, which can be “manufactured off-site in bulk, in prefab factories…making construction sites cleaner, tidier, less dusty and less noisy.”

He added that “Off-site conditions are mostly better controlled, allowing productivity measures and quality checks to be carried out more effectively.”

However, he also pointed out that the prefab plants must be “transformed”, citing the Netherland’s and Germany’s highly computerised and automated multi-storey precast plants as examples to follow. He mentioned multi-storey Integrated Construction and Precast Hubs (ICPHs) in particular, which need “only a third of the workers almost double the tonnage of precast components”.

Currently, Tiong Seng Contractors is pioneering this improvement by establishing Singapore’s first ICPH at Tuas, which will utilise computerisation and semi-automated precasting. In so doing, their manpower needs are expected to be reduced by up to 70 percent, from 150 to 50 workers per plant.

Property developer Sim Lian Group has launched The Tampines Trilliant, a 670-unit executive condominium (EC) in Tampines Central 7. The project follows on from the success of the group’s top-selling condominiums in 2011, Parc Vera and A Treasure Trove.

The 99-year leasehold development aims to meet family needs by providing easy access to reputable schools, recreational facilities, shopping malls and public transport.

“We wanted The Tampines Trilliant to be for the entire family where you can have dinner together at a shopping mall nearby, enjoy a fun weekend at the park or relish a relaxing evening by the pool,” said Kuik Sing Beng, Executive Director at Sim Lian.

Located on a 236,805 sq ft site, the 12-block development features three-bedroom, three plus utility, four-bedroom units and penthouses. Prices start from S$682,000 for a three-bedroom unit and from S$971,000 for a four-bedder.

The Tampines Trilliant boasts close proximity to the Tampines MRT station and bus interchange and the upcoming Downtown Line 3 Interchange. It is also near Tampines Mall, Tampines 1 and Century Square malls as well as reputed schools like Poi Ching Primary School, St. Hilda’s Primary School and Gongshang Primary School.

“Homeowners will appreciate the view of expansive greenery and easy access to the bustling Tampines commercial hub,” said the developer.

Designed to create a relaxing environment, the development includes facilities such as a hydro gym, spa pool, lap pool and meditation pool.

Sim Lian noted that applications for the project will end on 31 January 2012 and the booking date will begin on 4 February 2012.

The newly launched Watertown, an integrated waterfront development located near Punggol Waterway continues to draw strong interest from property hunters. As of yesterday evening, the project, which was launched on 20 January, has already sold approximately 580 of the 828 units released, priced from S$980 psf to S$1,500 psf.

Yesterday, PropertyGuru reported that most of the buyers were Singaporeans, with one- and two-bedroom suites being the most popular. Meanwhile, Watertown welcomed about 4,250 visitors to its showflat over the Chinese New Year weekend beginning 21 to 24 January, and sold 224 units.

“With changing lifestyles and interests, coupled with smaller family units, many Singapore residents have found that they have much more free time on their hands during the Chinese New Year holidays,” said Chia Boon Kuah, Chief Operating Officer, Property Sales at Far East Organization.

He added that strong demand “has been seen at our integrated developments in trans-urban locations, as buyers increasing seek a modern lifestyle that lets them enjoy the best of both worlds – the choice and tranquility of locations outside of the core urban centre, and yet with convenient access to all the amenities and transport connectivity traditionally found in urban hubs.”

Far East is jointly developing Watertown with Frasers Centrepoint and Japan’s Sekisui House, Ltd.

The rate of increase in property prices has continued to moderate, with private home prices rising just 0.2 percent in Q4, lower than the 1.3 percent increase seen in the previous quarter, according to latest figures released by the Urban Redevelopment Authority (URA).

“This moderation in private property prices can be attributed to the multiple rounds of cooling measures implemented by the government that have controlled excessive speculation which in turn has slowed the movement of prices and helped genuine buyers,” said Tejaswi Chunduri, PropertyGuru’s real estate analyst.

For the whole of last year, prices of private homes increased by almost six percent, significantly lower than the 17.6 percent increase recorded in 2010.

Meanwhile, prices for non-landed homes in the Core Central Region (CCR) rose 0.5 percent, while those in the Rest of the Central Region (RCR) and Outside the Central Region (OCR) increased 0.1 percent and 0.6 percent respectively, significantly lower than the 1.2 percent and 2.1 percent rise in the previous quarter.

Meanwhile, HDB resale prices rose only 1.7 percent in Q4 from the 3.8 percent increase in Q3. Overall, resale flat prices jumped by nearly 11 percent in 2011, although it is still less than 2010’s 14 percent increase.

“Although lesser than the price increase in 2010, one of the main reasons for this high 11 percent hike in prices is the disproportionate supply-demand ratio that has pushed prices up,” said Chunduri.

She noted that 2012 could prove to be another turning point (after similar trends were seen in Q3 2000 and Q3 2008), as market conditions remain uncertain.

“We could see a probable slowdown in the market, strongly supported by the quarter over quarter decelerating growth in the URA’s Property Price Index till Q4 2011.”

According to a report by The Business Times, Chan has purchased two units on one of the lower floors of the 35-storey project, while Chau has bought a unit on another floor.

With a total size of 571 sq ft each, the three one-bedroom units in the 99-year leasehold project have an average price of approximately S$2,850 psf. Market watchers believe that the two celebrities enjoyed a discount.

Chan used to own a three-bedroom unit in the old Grangeford Apartments, which OUE redeveloped into Twin Peaks after acquiring the site in an en bloc sale a few years ago.

Twin Peaks includes two identical 35-storey towers with a total of 462 homes, providing a combination of one-, two- and three-bedroom units. OUE started selling units in the project in July 2010 and has sold over 50 units to date, its highest selling price recorded at S$3,170 psf.

The two stars had acquired four apartments in the freehold Centennia Suites at Kim Seng Road, worth more than S$10 million, in March 2010. In that transaction, Chan purchased three units — two-, three- and four-bedders — while Chau bought a three-bedroom unit.