Latest Market News

Release of 4th Quarter 2008 real estate statistics

FRIDAY, 23 JANUARY 2009

The Urban Redevelopment Authority (URA) released today the real estate statistics for the 4th Quarter 2008.

SUMMARY

Prices of private residential, office, shop and industrial properties decreased by 6.1%, 4.9%, 4.8% and 6.5% respectively in the 4th Quarter 2008. For the year 2008 as a whole, prices of private residential, office and shop properties decreased by 4.7%, 7.0% and 1.9% respectively, while the prices of industrial properties increased slightly by 1.5% in the same period.

Rentals of private residential, office, shop and industrial properties decreased by 5.3%, 6.5%, 0.6% and 3.7% respectively in the 4th Quarter 2008. For the year 2008 as a whole, rentals of private residential, office, shop and industrial properties increased by 2.0%, 5.8%, 5.1% and 4.2% respectively.

As at 4th Quarter 2008, there were 64,982 private residential units in the pipeline, comprising supply from projects that were already under construction and those that had been granted planning approval but were not under construction yet. For the office sector, there was a pipeline supply of about 1.39 million sq m Gross Floor Area (GFA) of office space from various Government and private land sources. Of these, about 31,000 private residential units and about 927,000 sq m GFA of office space were expected to be completed between 2009 and 2011. These were lower than the pipeline supply of about 34,600 private residential units and 970,000 sq m GFA of office space expected to be completed between 2009 and 2011, as at 3rd Quarter 2008. The decline in the pipeline supply to be completed between 2009 and 2011 was mainly because a number of developers had in 4th Quarter 2008 made adjustments to the expected year of completion of their private housing and office projects to beyond 2011.

PRIVATE RESIDENTIAL PROPERTIES

Prices

Overall prices of private residential properties fell by 6.1% in 4th Quarter 2008, compared with the decline of 2.4% in the previous quarter For the year 2008 as a whole, overall prices of private residential properties fell by 4.7%, compared with an increase of 31.2% in the previous year).

Prices of non-landed properties fell by 6.3% in 4th Quarter 2008, compared with the decline of 2.5% in the previous quarter. Prices of apartments fell by 5.6% while prices of condominiums fell by 6.7%. For the year 2008 as a whole, prices of non-landed properties fell by 5.3%, with prices of apartment falling by 4.5% and those of condominium falling by 5.7% in the same period.

Prices of non-landed properties in Core Central Region1 (CCR) fell by 6.5% in 4th Quarter 2008, and prices of non-landed properties in Rest of Central Region2 (RCR) and Outside Central Region (OCR) fell by 6.2% and 5.9% respectively. For the year 2008 as a whole, prices of non-landed properties in CCR, RCR and OCR fell by 5.6%, 4.7% and 2.9% respectively

Prices of landed properties fell by 4.8% in 4th Quarter 2008, compared with the decrease of 1.9% in the previous quarter. Prices of detached, semi-detached and terrace houses fell by 5.3%, 3.9% and 4.7% respectively in 4th Quarter 2008. For the year 2008 as a whole, prices of detached, semi-detached and terrace houses fell by 3.1%, 1.0% and 1.7% respectively.

The prices of private residential properties are not uniform and vary from project to project.

Rentals

Rentals of private residential properties3 fell by 5.3% in 4th Quarter 2008, compared with the decrease of 0.9% in the previous quarter For the year 2008 as a whole, rentals of private residential properties increased 2.0%, compared with an increase of 41.2% in 2007

Rentals of non-landed properties in CCR, RCR and OCR fell by 6.1%, 5.9% and 4.3% respectively in 4th Quarter 20084. For the year 2008 as a whole, rentals of non-landed properties in CCR, RCR and OCR increased by 0.5%, 0.8% and 2.2% respectively.

In addition, URA also released data on the 25th percentile, median and 75th percentile rentals for individual private residential projects for 4th Quarter 2008 .

Supply in the Pipeline

As at the end of the 4th Quarter 2008, there was a total supply of 64,982 uncompleted units of private housing from projects in the pipeline5 .

Of these, 43,414 units were still unsold. These comprised 3,880 units that had been launched for sale by developers and 14,386 units which had the pre-requisite conditions for sale and could be launched for sale immediately. The remaining 25,148 units with planning approvals did not have the pre-requisite conditions for sale.

Of the 64,982 units, 31,004 units were expected to be completed between 2009 and 2011, of which 25,522 units were already under construction6. Developers had obtained planning approvals7 for projects making up the remaining 5,482 units, but had not yet commenced construction .

Launches and Take-up

A total of 706 uncompleted private residential units were launched for sale by developers in 4th Quarter 2008, compared with 2,244 units in 3rd Quarter 2008. Of the 706 uncompleted units launched in the quarter, 281 units were in CCR, 218 units were in RCR, and 207 units were in OCR Major residential projects launched in the quarter included Newton Edge at Makeway Avenue (104 units), RV Suites at River Valley Road (96 units) and Rosewood Suites at Rosewood Drive (80 units out of a total of 200 units).

In 4th Quarter 2008, 407 uncompleted private residential units were sold by developers, compared with 1,452 units in 3rd Quarter 2008. Of the 407 uncompleted units sold in the quarter, 133 units were in CCR, 84 units were in RCR, and 190 units were in OCR .Developers also sold 12 completed private residential units in 4th Quarter 2008. For the whole of 2008, developers sold a total of 4,006 uncompleted units and 258 completed units.

Sub-sales

The total number of sub-sales was 203 in 4th Quarter 2008, compared to 492 sub-sales in the previous quarter. In percentage terms, sub-sales accounted for 12.8% of all sale transactions in 4th Quarter 2008, compared to 11.5% in 3rd Quarter 2008. The number of sub-sales in CCR in 4th Quarter 2008 accounted for 16.9% of the property sale transactions in this area in the quarter, compared to 21.9% in the previous quarter. The percentage of sub-sales in 4th Quarter 2008 for RCR, at 20.4%, was higher than the 12.1% in the previous quarter. The percentage of sub-sales in OCR in 4th Quarter 2008 was 7.3%, same as in the previous quarter.

Stock and Vacancy

A total of 2,651 private residential units were completed (granted TOP) in 4th Quarter 2008. Major residential projects completed in the quarter were City Square Residences at Kitchener Link (471 units of a total of 910 units), The Esta at Amber Gardens (400 units) and The Infiniti at West Coast Park (315 units).

The vacancy rate of completed private residential units was 6.1% as at the end of 4th Quarter 2008, compared with 5.8% as at the end of the previous quarter.

Executive Condominiums

As at the end of 4th Quarter 2008, there were no Executive Condominium (EC) units in the pipeline. All available EC units have been sold.

The total stock of completed EC units was 10,430 units as at the end of 4th Quarter 2008. As at the end of 4th Quarter 2008, the vacancy rate was 0.7%, compared with the vacancy rate of 3.8% as at the end of the previous quarter.

OFFICE SPACE

Rentals

The rentals for office space in Singapore fell in 4th Quarter 2008. Overall rentals for office space, based on leases which had commenced, decreased by 6.5% in 4th Quarter 2008, compared with the decrease of 0.8% in 3rd Quarter 2008.For the whole of 2008, rentals of office space increased by 5.8%, lower than the 56.1% increase in 2007

The median rental for “Category 1”8 office space, based on leases which had commenced, was S$13.00 per square foot per month (psf pm) in 4th Quarter 2008, lower than the median rental of S$13.57 psf pm in 3rd Quarter 2008. In comparison, the median rental for “Category 2”9 office space was S$6.01 psf pm in 4th Quarter 2008, compared to the S$6.43 psf pm in 3rd Quarter 2008 . As “Category 2” office space accounts for about 80% of all office space in Singapore, the rental for such space is more reflective of the typical rental paid by office tenants in Singapore. These statistics were compiled based on IRAS’ records of rental contracts in Singapore where the leases had commenced in 4th Quarter 2008.

The median rentals for “Category 1” and “Category 2” office space based on rental contracts signed in 4th Quarter 2008 were S$13.14 and S$5.94 psf pm respectively . These statistics were compiled based on IRAS’ records of rental contracts which were signed in the reference quarter, regardless of whether or not the leases commenced in the reference quarter10 .

Prices

Prices of office space decreased by 4.9% in 4th Quarter 2008, compared with the 3.9% decrease in the previous quarter. For the whole of 2008, prices of office space fell by 7.0%, compared with an increase of 32.6% in 2007.

Supply in the Pipeline

As at the end of 4th Quarter 2008, there was a total supply of about 1.39 million sq m GFA of office space in the pipeline. This included the new office space from redevelopment of the former Eminent Plaza (12,430 sq m), which was granted planning approval for development in 4th Quarter 2008. Of the total pipeline supply of office space, about 927,000 sq m were expected to be completed between 2009 and 2011.

Apart from office space, as at the end of 4th Quarter 2008, there was a total supply of about 540,000 sq m of business park space from projects in the pipeline11 from Government and private land sources which were expected to be completed between 2009 and 2011. This included 43,870 sq m of business park space from UE BizHub at Changi Business Park which was granted planning approval for development in 4th Quarter 2008. Business park space can meet the office needs of some firms, e.g. backroom operations of companies.

 

Stock and Vacancy

The amount of occupied office space decreased by 34,000 sq m (nett) in 4th Quarter 2008, as compared with the increase of 16,000 sq m in the previous quarter. A total of 21,100 sq m of office space were completed (granted TOP) in 4th Quarter 2008. This included the newly completed office space in Wilkie Edge at Wilkie Road (10,400 sq m).

The island-wide vacancy rate of office space was 8.8% as at the end of 4th Quarter 2008, compared to the 8.2% vacancy rate as at the end of 3rd Quarter 2008. Similarly, the vacancy rate for “Category 1” office space increased to 4.6% as at the end of 4th Quarter 2008, from 3.4% as at the end of 3rd Quarter 2008. The vacancy rate for “Category 2” office space as at the end of 4th Quarter 2008 was 9.8%, compared to 9.2% as at the end of 3rd Quarter .

SHOP SPACE

Rentals

The overall rentals for shop space in Singapore, based on leases which had commenced, decreased by 0.6% in 4th Quarter 2008. The median rental for shop space in the Orchard Planning Area (Orchard), Rest of City Area (RCA)12and Outside City Area (OCA) also decreased slightly to S$10.90, S$6.80 and S$5.66 psf pm respectively in 4th Quarter 2008. These statistics were compiled based on IRAS’ records of rental contracts in Singapore where the leases commenced in 4th Quarter 2008.

The median rentals for shop space in Orchard, RCA and OCA based on all rental contracts signed in 4th Quarter 2008, regardless of whether or not the leases commenced in the quarter, were S$10.74, S$6.98 and S$5.65 psf pm respectively

Prices

Prices of shop space decreased by 4.8% in 4th Quarter 2008, compared with the 0.3% decrease in the previous quarter. For the whole of 2008, prices of shop space fell by 1.9%, compared with an increase of 13.2% in 2007.

Supply in the Pipeline

As at the end of 4th Quarter 2008, there was a total supply of 678,000 sq m GFA of shop space from projects in the pipeline13, from Government and private land sources. This included the shop space from new projects which were granted planning approval for development in the 4th Quarter 2008, such as shop space at the UE BizHub at Changi Business Park. Of the total pipeline supply of shop space, about 610,000 sq m were expected to be completed between 2009 and 2011.

Stock and Vacancy

The amount of occupied shop space increased by 38,000 sq m (nett) in 4th Quarter 2008, compared with the decrease of 13,000 sq m in 3rd Quarter 2008. A total of 55,500 sq m of shop space were completed (granted TOP) in the 4th Quarter 2008. This included the newly completed Jurong Point Shopping Centre Extension at Jurong West Central 3 (20,000 sq m), the newly redeveloped West Coast Plaza at West Coast Road (9,500 sq m) and Sembawang Shopping Centre at Sembawang Road (8,900 sq m).

The islandwide vacancy rate of shop space was 6.2% as at the end of 4th Quarter 2008, compared to the 6.3% vacancy rate as at end of 3rd Quarter 2008. The vacancy rates for shop space in Orchard, RCA and OCA as at the end of 4th Quarter 2008 were 3.3%, 7.5% and 6.2% respectively. In comparison, the vacancy rates for shop space in Orchard, RCA and OCA as at the end of 3rd Quarter 2008 were 3.3%, 7.6% and 6.3% respectively.

INDUSTRIAL SPACE

Prices and Rentals

Prices of multiple-user factory space fell by 6.7% in 4th Quarter 2008, compared with the 0.6% increase in the previous quarter . Rentals of multiple-user factory space also fell by 3.2%, compared with the 0.2% increase in the previous quarter For the whole of 2008, the prices and rentals of multiple-user factory space increased by 2.1% and 5.1% respectively.

Supply in the Pipeline

As at the end of 4th Quarter 2008, there was a total supply of 3.72 million sq m GFA of factory space from projects in the pipeline14, from Government and private land sources. Of the total pipeline supply of factory space, about 3.59 million sq m were expected to be completed between 2009 and 2011. 

Stock and Vacancy

The amount of occupied factory space increased by 175,000 sq m (nett) in 4th Quarter 2008, lower than the increase of 344,000 sq m in 3rd Quarter 2008. A total of 220,000 sq m of factory space were completed (granted TOP) in 4th Quarter 2008.

The vacancy rate of factory space remained unchanged at 6.6% as at the end of 4th Quarter 2008.

COMPARISON OF PROPERTY PRICE INDEX FOR 3RD QUARTER 2008 AND 4TH QUARTER 2008

	Price Index		% Change over Previous Quarter
	3Q/08	4Q/08	3Q/08	4Q/08
All Residential Landed Property Detached Semi-detached   Terrace Non-landed property   Apartment Condominium   All Commercial Office Shop   All Industrial Multiple-user Factory Multiple-user Warehouse	173.3 158.8 167.4 150.2   154.3 176.7   182.0 174.0     115.8 118.2   115.0 114.9 115.6	162.8 151.2 158.6 144.4   147.1 165.5   171.8 162.3     110.1 112.5   107.5 107.2 109.6	-2.4 -1.9 -1.9 -2.1   -1.6 -2.5   -2.4 -2.6     -3.9 -0.3   0.9 0.6 2.6	-6.1 -4.8 -5.3 -3.9   -4.7 -6.3   -5.6 -6.7     -4.9 -4.8   -6.5 -6.7 -5.2