Tuesday, June 1, 2010

Demand for resale homes in D1, 2 & 4 still resilient

RESALE deals of non-landed private homes in districts 1 and 2 (which cover Singapore's financial district) as well as district 4 (which includes Sentosa Cove, Keppel Bay and Harbourfront areas) reached $750.8 million for the whole of last year, according to property consultancy group CB Richard Ellis.


This is lower than the 2007 peak of $2.08 billion but above the $737.8 million average annual resale level between 2005 and 2008 for the locations.

The figure so far this year is $470.2 million, based on URA Realis caveats data as at May 26.

'The buzz created by the integrated resorts and emerging prime office hub will ensure sustained activity in the resale market,' said CBRE executive director (residential) Joseph Tan.

Resales refer to secondary market transactions of completed developments, defined as projects that have received Certificate of Statutory Completion.

Districts 1 and 2 include the Marina Bay, Shenton Way and Tanjong Pagar belt.

'New residential projects in Sentosa Cove over the coming months will also further transform Sentosa into a lively residential enclave and this will continue to drive resale activity there. Apartments in the inner city and Sentosa will be sought after by investors and owner-occupiers alike due to their potential for high appreciation in value and attractive rental yields,' Mr Tan added.

CBRE estimates that about 1.3 million sq ft of offices in the Central Business District will be converted to mainly residential use by 2013.

So far this year, 246 non-landed private homes have changed hands in the resale market in districts 1, 2 and 4, or 51 per cent of the 482-unit resale volume for the whole of last year.

Last year, the most popular development in the resale market in the locations was Caribbean @ Keppel Bay (with 200 units sold), followed by The Sail @ Marina Bay (128 units).

Source: Business Times, 1 Jun 2010

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