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Release of 2nd Quarter 2010 real estate statistics

Friday 23 July 2010

The Urban Redevelopment Authority (URA) released today the real estate statistics for the 2nd Quarter 2010.

SUMMARY

Prices of private residential, office, shop and industrial properties increased by 5.3%, 4.6%, 3.9% and 5.7% respectively in the 2nd Quarter 2010.

Rentals of private residential properties, office, shop and industrial properties increased by 5.9%, 1.1%, 0.5% and 1.3% respectively in the 2nd Quarter 2010.

As at 2nd Quarter 2010, there were 61,831 private residential units in the pipeline, comprising supply from projects already under construction and those that had been granted planning approval but not yet constructed. Of these, 32,630 units were still unsold. This number is equivalent to about 3 years of supply based on the average take-up1 of about 11,300 units per year over the last 3 years. For the office sector, there was a pipeline supply of about 974,000 sq m Gross Floor Area (GFA) of office space from various Government and private land sources. Of these, about 37,910 private residential units and about 892,000 sq m GFA of office space were expected to be completed between 3rd Quarter 2010 and 2013. This is based on developers’ declarations. The actual completion schedule may change from quarter to quarter as developers adjust their development plans or construction schedule according to market conditions.

PRIVATE RESIDENTIAL PROPERTIES

Prices

Overall prices of private residential properties increased by 5.3% in 2nd Quarter 2010, compared with the 5.6% increase in the previous quarter (see Annexes A-1, A-6 & A-7).

Prices of non-landed properties increased by 5.0% in 2nd Quarter 2010, compared with the 4.9% increase in the previous quarter. Prices of apartments increased by 5.2%, while prices of condominiums increased by 5.0%. Prices of non-landed properties in Core Central Region2 (CCR) increased by 5.4% in 2nd Quarter 2010, and prices of non-landed properties in Rest of Central Region3 (RCR) and Outside Central Region (OCR) increased by 4.6% and 5.7% respectively (see Annex A-2).

Prices of landed properties increased by 6.2% in 2nd Quarter 2010, compared with 8.3% in the previous quarter. Prices of detached, semi-detached and terrace houses increased by 6.8%, 6.0% and 5.6% respectively in 2nd Quarter 2010.

Rentals

Rentals of private residential properties4 increased by 5.9% in 2nd Quarter 2010, compared with the 4.7% increase in the previous quarter (see Annex A-3).

Rentals of non-landed properties in CCR, RCR and OCR increased by 6.4%, 5.1% and 6.1% respectively in 2nd Quarter 2010 (see Annexes A-3 & A-4).

Supply in the Pipeline



As at the end of 2nd Quarter 2010, there was a total supply of 61,831 uncompleted units of private housing from projects in the pipeline6 (see Annex E-1). Of these, 32,630 units were still unsold. These comprised 3,468 units that had been launched for sale by developers and 10,997 units which had the pre-requisite conditions for sale and could be launched for sale immediately. The remaining 18,165 units with planning approvals did not have the pre-requisite conditions for sale7 (see Annex B-1). Details of the number of unsold private residential units with planning approvals in the 3 market segments are given in Annex B-2.

Of the 61,831 units, 37,910 units were expected to be completed between the 3rd Quarter 2010 and 2013, of which 29,222 units were already under construction8. Developers had obtained planning approvals9 for projects making up the remaining 8,688 units (see Annex E-2).

In addition to the supply in the pipeline above, the Government had in May 2010 ramped up the supply of private housing via the Government Land Sales (GLS) Programme for the 2nd Half of 2010 (2H2010) to meet the strong demand for private housing and land for residential developments. This comprises 18 sites that can potentially yield 8,135 private residential units on the Confirmed List, and 13 sites that can potential yield another 5,770 private residential units on the Reserve List. Collectively, the GLS Programme can potentially yield 13,905 private residential units, including 2,360 Executive Condominium units. This is the highest potential supply quantum from any half yearly GLS Programme since the Confirmed List/Reserve List system started in 2H2001. It is also over and above the supply of 6,270 units from 16 sites that were earlier sold under the GLS Programme for the 1st Half of 2010 (1H2010). Most of the sites in the 1H2010 and 2H2010 GLS Programmes are located in OCR or in locations in RCR where more affordable private housing is expected to be built.

Launches and Take-up

A total of 4,180 uncompleted private residential units were launched for sale by developers in 2nd Quarter 2010, compared with 4,372 units in 1st Quarter 2010. Of the 4,180 uncompleted units launched in the quarter, 558 units were in CCR, 1,903 units were in RCR, and 1,719 units were in OCR (see Annex C-1). Major residential projects launched in the quarter included Waterbank at Dakota at Dakota Crescent (616 units), The Minton at Hougang Street 11 (500 units of a total of 1,145 units), Tree House at Chestnut Avenue (429 units), The Cascadia at Bukit Timah Road (remaining 349 units of a total of 536 units), and The Interlace at Depot Road (230 units of a total of 1,040 units). In 2nd Quarter 2010, 3,955 uncompleted private residential units were sold by developers, compared with 4,351 units in 1st Quarter 2010. Of the 3,955 uncompleted units sold in the quarter, 672 units were in CCR, 1,663 units were in RCR, and 1,620 units were in OCR (see Annex C-2). Developers also sold 78 completed private residential units in 2nd Quarter 2010.

Sub-sales

The total number of sub-sales was 723 in 2nd Quarter 2010, compared to 996 sub-sales in the previous quarter. In percentage terms, sub-sales accounted for 7.7% of all sale transactions in 2nd Quarter 2010, compared to 9.6% in 1st Quarter 2010. The number of sub-sales in CCR in 2nd Quarter 2010 accounted for 14.7% of the property sale transactions in this area in the quarter, compared to 11.9% in the previous quarter. The percentage of sub-sales in 2nd Quarter 2010 for RCR, at 6.2%, was lower than the 12.1% in the previous quarter. In OCR, the percentage of sub-sales in 2nd Quarter 2010 was 5.8% which was lower than the 6.7% in the previous quarter (see Annex D).

Stock and Vacancy

A total of 4,379 private residential units were completed (granted TOP) in 2nd Quarter 2010. Major residential projects completed in the quarter were One Amber at Amber Gardens (562 units), Marina Bay Residences at Marina Boulevard (428 units), Dakota Residences at Dakota Crescent (348 units) and The Arte at Jalan Raja Udang (336 units). The vacancy rate of completed private residential units increased from 4.6% as at the end of 1st Quarter 2010 to 5.4% as at the end of 2nd Quarter 2010 (see Annex E-1).

Executive Condominiums

As at the end of 2nd Quarter 2010, there were 981 Executive Condominium (EC) units in the pipeline. The total stock of completed EC units remained at 10,430 units as at the end of 2nd Quarter 2010. As at the end of 2nd Quarter 2010, the vacancy rate was 0.4%, lower than the 0.6% as at the end of the previous quarter (see Annex E-1).

OFFICE SPACE
Rentals
Overall rentals for office space, based on leases which had commenced, increased by 1.1% in 2nd Quarter 2010, compared with 0.4% in 1st Quarter 2010 (see Annex A-3). The median rental for “Category 1”10 office space, based on leases which had commenced, was $8.26 per square foot per month (psf pm) in 2nd Quarter 2010, slightly higher than the median rental of $8.25 psf pm in 1st Quarter 2010. The median rental for “Category 2”11 office space was $4.76 psf pm in 2nd Quarter 2010, higher than the median rental of $4.71 psf pm in 1st Quarter 2010 (see Annex A-5). 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 2nd Quarter 2010. The median rentals for “Category 1” and “Category 2” office space based on rental contracts signed in 2nd Quarter 2010 were $8.24 and $4.72 psf pm respectively (see Annex A-5). 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 quarter12. Prices Prices of office space increased by 4.6% in 2nd Quarter 2010, compared with the 1.8% increase in the previous quarter (see Annex A-1).

Supply in the Pipeline
As at the end of 2nd Quarter 2010, there was a total supply of about 974,000 sq m GFA of office space in the pipeline. Of the total pipeline supply of office space, about 892,000 sq m were expected to be completed between the 3rd Quarter 2010 and 2013. More detailed data on pipeline supply of office space by development status and expected year of completion are at Annex E-1 and E-2. Apart from office space, as at the end of 2nd Quarter 2010, there was a total supply of about 345,000 sq m of business park space from projects in the pipeline from Government and private land sources. Business park space primarily caters to non-pollutive industries and businesses that engage in high-technology, research and development (R&D), high value-added and knowledge-intensive activities. However, some of the business park space could be used for selected office uses such as backroom operations of companies.

Stock and Vacancy The amount of occupied office space increased by 37,000 sq m (nett) in 2nd Quarter 2010, as compared to the increase of 22,000 sq m in the previous quarter. A total of 51,600 sq m of office space were completed (granted TOP) in 2nd Quarter 2010. This included office space from the Mapletree Business City at Pasir Panjang Road (39,900 sq m). The island-wide vacancy rate of office space was 12.3 % as at the end of 2nd Quarter 2010, lower than the 12.5% as at the end of 1st Quarter 2010. The vacancy rate for “Category 1” office space decreased to 9.1% as at the end of 2nd Quarter 2010, from 10.5% as at the end of 1st Quarter 201013. The vacancy rate for “Category 2” office space as at the end of 2nd Quarter 2010 was 13.1%, compared to 12.9% as at the end of 1st Quarter 2010 (see Annex A-5).

SHOP SPACE
Rentals
The overall rentals for shop space in Singapore, based on leases which had commenced, increased by 0.5% in 2nd Quarter 2010, compared with the 0.1% decrease in the 1st Quarter 2010 (see Annex A-3). The median rental for shop space in the Orchard Planning Area (Orchard), Rest of City Area (RCA)14 and Outside City Area (OCA) also increased to $10.22, $6.25 and $5.46 psf pm respectively in 2nd Quarter 2010 (see Annex A-5). These statistics were compiled based on IRAS’ records of rental contracts in Singapore where the leases commenced in 2nd Quarter 2010. The median rentals for shop space in Orchard, RCA and OCA based on all rental contracts signed in 2nd Quarter 2010, regardless of whether or not the leases commenced in the quarter, were $10.20, $6.47 and $5.45 psf pm respectively (see Annex A-5).

Prices
Prices of shop space increased by 3.9% in 2nd Quarter 2010, compared with the increase of 1.8% in the previous quarter (see Annex A-1).

Supply in the Pipeline

As at the end of 2nd Quarter 2010, there was a total supply of 428,000 sq m GFA of shop space from projects in the pipeline, from Government and private land sources. Of the total pipeline supply of shop space, about 359,000 sq m were expected to be completed between the 3rd Quarter 2010 and 2013. More detailed data on pipeline supply of shop space by development status and expected year of completion are at Annex E-1 and E-2. Stock and Vacancy The amount of occupied shop space decreased by 2,000 sq m (nett) in 2nd Quarter 2010, compared with the 3,000 sq m increase in 1st Quarter 2010. A total of 27,500 sq m of shop space were completed (granted TOP) in 2nd Quarter 2010. This included shop space from Marina Bay Sands at Bayfront Avenue (20,500 sq m). The island-wide vacancy rate of shop space was 6.1% as at the end of 2nd Quarter 2010, compared to the 5.8% vacancy rate as at the end of 1st Quarter 2010. The vacancy rates for shop space in Orchard, RCA and OCA as at the end of 2nd Quarter 2010 were 5.9%, 10.0% and 4.6% respectively. In comparison, the vacancy rates for shop space in Orchard, RCA and OCA as at the end of 1st Quarter 2010 were 6.6%, 7.6% and 4.9% respectively (see Annex A-5).

INDUSTRIAL SPACE

Prices and Rentals Prices of multiple-user factory space increased by 5.4% in 2nd Quarter 2010, compared with 1.5% in the previous quarter (see Annex A-1). Rentals of multiple-user factory space increased by 1.7%, compared with the increase of 0.8% in the previous quarter (see Annex A-3).

Supply in the Pipeline

As at the end of 2nd Quarter 2010, there was a total supply of 2.43 million sq m GFA of factory space from projects in the pipeline, from Government and private land sources. Of the total pipeline supply of factory space, about 2.34 million sq m were expected to be completed between the 3rd Quarter 2010 and 2013. More detailed data on pipeline supply of factory space by development status and expected year of completion are at Annex E-1 and E-2.

Stock and Vacancy

The amount of occupied factory space increased by 248,000 sq m (nett) in 2nd Quarter 2010, higher than the increase of 231,000 sq m (nett) in 1st Quarter 2010. A total of 251,300 sq m of factory space were completed (granted TOP) in 2nd Quarter 2010. The vacancy rate of factory space was 7.6% as at the end of 2nd Quarter 2010, compared with the 7.7% as at the end of the previous quarter.

Source: Urban Redevelopment Authority (URA)