High and Luxury Property Sales picking up

According to the Business times, The Orchard Residences, The Hamilton Scotts and Boulevard Vue have seen units sold at above $2,500 psf with a few units exceeding $3,000 psf in The Orchard Residences. At the Orchard Residences, five units were sold at prices ranging from $2,700 psf for a 10th floor unit to $3,300 psf for an apartment on level 33. According to the developer, there was interest from both locals and foreigners at prices were similar to March/April 2007 launch levels. Nearby at Boulevard Vue Far East Organization sold an eighth-floor unit for $2,600 psf or nearly $12 million last month to a Singapore permanent resident on normal progress payment scheme (31% below the developer's expected price of $3,800 psf in first half last year). Over at Hamilton Scotts a 2,756 sqf unit was sold for $2,600 psf or about $7m to a Singaporean buyer on normal progress payment terms (20% below the expected price of $3,200 psf in August last year).

The rising number of transactions at property auctions, and the high number of bids for a hotel site reconfirms that the market is warming up, and bargain-hunting is in full swing. We take this to be a firmer indication of the return of buyer confidence to the market.

Property auction deals in May outpace whole of 1Q09. The Business Times reported that deals done at property auctions (for private residential assets) hit S$18.5m in May alone, higher than the S$17.9m for the whole of 1Q09. Deals done YTD amount to S$47.7m. Owner sales accounted for 44 of the 59 properties put up for auction. Eight of the 15 transactions were mortgagee sales. However, a surge in the number of repossessed properties has not been seen yet as financial institutions are trying to help owners by giving them the opportunity to sell the properties in the market.

Short Street hotel site receives 14 valid bids. The top bid of S$15.5m (S$353 psf ppr) came from Fragrance Group, 76% higher than the trigger price of S$808m (S$201 psf ppr). The number of bids for the 99-year leasehold site is one of the highest received for a Government Land Sales tender. The offer is deemed attractive because the site area is relatively small and construction costs are expected to decline this year. The site has a maximum GFA of 43,885 sf, and is located near the upcoming Rochor MRT station and the Bugis area.


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