Friday, October 24, 2014
Office space prices up, but retail space prices soften slightly in Q3: URA
Office space prices up, but retail space prices soften slightly in Q3: URA
In the past three months, vacancy rates for office space declined, but the opposite was true for retail space, the Urban Redevelopment Authority said on Friday (Oct 24).
SINGAPORE: Prices of office space increased by 1.6 per cent in the third quarter of the year, while rental prices of office space rose 2.6 per cent in the same period, the Urban Redevelopment Authority (URA) said on Friday (Oct 24).
In the same period, the vacancy rate of office space fell to 8.4 per cent, compared to 9.6 per cent at the end of the second quarter. The URA said that this was in part due to a 47,000sqm decrease in the stock of office space in the third quarter, compared with a 1,000sqm decrease three months prior. It was the largest quarterly decline since 1992, according to consultancy Knight Frank.
Occupancy rate remained healthy at 91.6 per cent in the third quarter. The amount of occupied office space increased by 50,000sqm (nett) in the third quarter, compared to the 22,000sqm (nett) increase in the previous quarter, the URA said.
RETAIL PRICES DIP
Prices of retail space declined by 0.2 per cent in the third quarter, following on a decline of 0.3 per cent in the previous three months. The increase of rental rates of retail space also slowed, rising by 0.1 per cent in the past three months, compared to the 0.6 per cent increase in the second quarter of the year.
The amount of occupied retail space increased by 15,000sqm (nett) in the third quarter, while the stock of retail space increased by 52,000sqm (nett) in the same period. As a result, the islandwide vacancy rate of retail space rose to 6.5 per cent at the end of third quarter, up from 5.9 per cent as of end-June.
Knight Frank said the islandwide occupancy rate of 93.5 percent in the third quarter was the lowest since the first quarter of 2011.
Analysts said retail rents could face downward pressure next year. Chestertons’ managing director, Mr Donald Han, noted: "Moving into 2015, we expect rentals to come under pressure mainly because tenants are more worried about their bottomline, more concerned about overall operating cost and labour cost, and we expect margins to be affected.
“Retailers are probably unable to pay higher rents come renewal. We probably will see rentals correcting 1, 2 per cent, but those development that are in the Grade A, prime retail malls will probably not see too much reduction in terms of rental."
OFFICE RENTS
CBRE Research said the average rent for Grade A office buildings in Singapore is S$10.95 per square foot per month, which is still some way off its record high.
Mr Desmond Sim, head of research for Southeast Asia at CBRE Research, elaborated: “The previous peak was in 2008 and we are likely 9.3 per cent off that peak. In our forecast, we do not see rents start to match that peak. At that time, GDP was doing relatively well, 6 to 8 per cent.
“What we see now is that GDP is pretty much controlled. Demand from financial institutions is also very limited."
NON-FINANCIAL SECTORS TO DRIVE DEMAND FOR OFFICE SPACE
Looking ahead, analysts expect non-financial sectors to continue to drive demand for office space. But they said some banks may be looking for room to grow, especially if they see substantial growth in the wealth management and renminbi clearing business.
Office rents have already gone up by over 7 per cent in the first three quarters of this year. For the whole of 2014, office rents are likely to increase 10 per cent, and analysts expect a similar pace of growth in 2015, with most of the rental growth seen in the first half of next year.
Meanwhile, office supply will remain tight next year, before new buildings like Marina One are completed in 2016.
INDUSTRIAL SPACE SEGMENT MOST CHALLENGING
Analysts said the industrial space segment will probably be most challenging - when compared with retail and office. Latest numbers from JTC showed growing weakness in multiple-user factory space, with prices falling 1.8 per cent on-quarter in the third quarter.
Knight Frank said: "Going forward, price depreciation for factory space is likely to continue in the coming quarters with the high supply of both factory and warehouse spaces. Demand for strata-titled factory units is likely to be reduced in the short-term, with the market's general expectation of further price moderations in light of the cautious manufacturing sentiment.
“We view that the rents would continue its decline in the coming quarters well into early next year. While this trend would pose greater challenges for the landlords, this would potentially benefit SMEs (small and medium enterprises) who are eager to have find industrial space at more available locations."
- CNA/es/ms
- wong chee tat :)
In the past three months, vacancy rates for office space declined, but the opposite was true for retail space, the Urban Redevelopment Authority said on Friday (Oct 24).
SINGAPORE: Prices of office space increased by 1.6 per cent in the third quarter of the year, while rental prices of office space rose 2.6 per cent in the same period, the Urban Redevelopment Authority (URA) said on Friday (Oct 24).
In the same period, the vacancy rate of office space fell to 8.4 per cent, compared to 9.6 per cent at the end of the second quarter. The URA said that this was in part due to a 47,000sqm decrease in the stock of office space in the third quarter, compared with a 1,000sqm decrease three months prior. It was the largest quarterly decline since 1992, according to consultancy Knight Frank.
Occupancy rate remained healthy at 91.6 per cent in the third quarter. The amount of occupied office space increased by 50,000sqm (nett) in the third quarter, compared to the 22,000sqm (nett) increase in the previous quarter, the URA said.
RETAIL PRICES DIP
Prices of retail space declined by 0.2 per cent in the third quarter, following on a decline of 0.3 per cent in the previous three months. The increase of rental rates of retail space also slowed, rising by 0.1 per cent in the past three months, compared to the 0.6 per cent increase in the second quarter of the year.
The amount of occupied retail space increased by 15,000sqm (nett) in the third quarter, while the stock of retail space increased by 52,000sqm (nett) in the same period. As a result, the islandwide vacancy rate of retail space rose to 6.5 per cent at the end of third quarter, up from 5.9 per cent as of end-June.
Knight Frank said the islandwide occupancy rate of 93.5 percent in the third quarter was the lowest since the first quarter of 2011.
Analysts said retail rents could face downward pressure next year. Chestertons’ managing director, Mr Donald Han, noted: "Moving into 2015, we expect rentals to come under pressure mainly because tenants are more worried about their bottomline, more concerned about overall operating cost and labour cost, and we expect margins to be affected.
“Retailers are probably unable to pay higher rents come renewal. We probably will see rentals correcting 1, 2 per cent, but those development that are in the Grade A, prime retail malls will probably not see too much reduction in terms of rental."
OFFICE RENTS
CBRE Research said the average rent for Grade A office buildings in Singapore is S$10.95 per square foot per month, which is still some way off its record high.
Mr Desmond Sim, head of research for Southeast Asia at CBRE Research, elaborated: “The previous peak was in 2008 and we are likely 9.3 per cent off that peak. In our forecast, we do not see rents start to match that peak. At that time, GDP was doing relatively well, 6 to 8 per cent.
“What we see now is that GDP is pretty much controlled. Demand from financial institutions is also very limited."
NON-FINANCIAL SECTORS TO DRIVE DEMAND FOR OFFICE SPACE
Looking ahead, analysts expect non-financial sectors to continue to drive demand for office space. But they said some banks may be looking for room to grow, especially if they see substantial growth in the wealth management and renminbi clearing business.
Office rents have already gone up by over 7 per cent in the first three quarters of this year. For the whole of 2014, office rents are likely to increase 10 per cent, and analysts expect a similar pace of growth in 2015, with most of the rental growth seen in the first half of next year.
Meanwhile, office supply will remain tight next year, before new buildings like Marina One are completed in 2016.
INDUSTRIAL SPACE SEGMENT MOST CHALLENGING
Analysts said the industrial space segment will probably be most challenging - when compared with retail and office. Latest numbers from JTC showed growing weakness in multiple-user factory space, with prices falling 1.8 per cent on-quarter in the third quarter.
Knight Frank said: "Going forward, price depreciation for factory space is likely to continue in the coming quarters with the high supply of both factory and warehouse spaces. Demand for strata-titled factory units is likely to be reduced in the short-term, with the market's general expectation of further price moderations in light of the cautious manufacturing sentiment.
“We view that the rents would continue its decline in the coming quarters well into early next year. While this trend would pose greater challenges for the landlords, this would potentially benefit SMEs (small and medium enterprises) who are eager to have find industrial space at more available locations."
- CNA/es/ms
- wong chee tat :)
HDB resale prices down 1.7% on-quarter in Q3
HDB resale prices down 1.7% on-quarter in Q3
The number of resale transactions rose by 2.8 per cent from 4,389 cases in the second quarter to 4,513 cases in the third quarter, HDB says.
SINGAPORE: Prices of resale flats fell by 1.7 per cent on-quarter in the third quarter of 2014, while the number of resale transactions rose 2.8 per cent, according to the Housing and Development Board (HDB).
HDB on Friday (Oct 24) announced that the Resale Price Index (RPI) fell from 195.7 in the second quarter to 192.4 in the third quarter. Resale transactions increased from 4,389 cases in the second quarter to 4,513 cases in the third quarter.
The number of subletting transactions rose by 5.5 per cent from 8,455 cases in the second quarter to 8,923 cases in the third quarter. The total number of HDB flats approved for subletting rose by 1.5 per cent from 47,015 to 47,707 units.
Since January this year, a total of 18,178 Build-To-Order (BTO) flats and 3,383 balance flats under the BTO and Sale of Balance Flats (SBF) exercises have been launched. HDB said it is on track to launch 22,400 BTO flats for the whole of 2014.
Another 4,290 BTO flats in Sembawang, Sengkang, Tampines and Yishun will be launched in November, HDB said. An additional 3,000 flats will be offered in a concurrent SBF exercise.
- CNA/cy
- wong chee tat :)
The number of resale transactions rose by 2.8 per cent from 4,389 cases in the second quarter to 4,513 cases in the third quarter, HDB says.
SINGAPORE: Prices of resale flats fell by 1.7 per cent on-quarter in the third quarter of 2014, while the number of resale transactions rose 2.8 per cent, according to the Housing and Development Board (HDB).
HDB on Friday (Oct 24) announced that the Resale Price Index (RPI) fell from 195.7 in the second quarter to 192.4 in the third quarter. Resale transactions increased from 4,389 cases in the second quarter to 4,513 cases in the third quarter.
The number of subletting transactions rose by 5.5 per cent from 8,455 cases in the second quarter to 8,923 cases in the third quarter. The total number of HDB flats approved for subletting rose by 1.5 per cent from 47,015 to 47,707 units.
Since January this year, a total of 18,178 Build-To-Order (BTO) flats and 3,383 balance flats under the BTO and Sale of Balance Flats (SBF) exercises have been launched. HDB said it is on track to launch 22,400 BTO flats for the whole of 2014.
Another 4,290 BTO flats in Sembawang, Sengkang, Tampines and Yishun will be launched in November, HDB said. An additional 3,000 flats will be offered in a concurrent SBF exercise.
- CNA/cy
- wong chee tat :)
Private property prices down for fourth straight quarter
Private property prices down for fourth straight quarter
Prices of private residential properties fell by 0.7 per cent in the third quarter following a 1 per cent decrease in the previous quarter, the Urban Redevelopment Authority (URA) said.
SINGAPORE: Prices of private residential properties in the third quarter fell by 0.7 per cent from the previous quarter – the fourth consecutive quarter of decline, the Urban Redevelopment Authority (URA) said on Friday (Oct 24).
The price decline was observed across all segments of the private residential property market, URA said. Prices of non-landed properties in the Core Central Region (CCR) declined by 0.8 per cent from the previous quarter, following the 1.5 per cent decrease in the April to June period. Prices in the Rest of Central Region (RCR) declined by 0.4 per cent, the same rate of decline as in the previous quarter. In Outside Central Region (OCR), prices declined by 0.3 per cent, after the 0.9 per cent decline in the previous quarter. Prices of landed properties declined by 1.8 per cent, following the decrease of 1.7 per cent in the previous quarter.
Rentals of private residential properties in the third quarter fell by 0.8 per cent from the previous quarter, compared with a 0.6 per cent decline in the April to June period.
LAUNCHES AND TAKE-UP
Developers launched 1,294 uncompleted private residential units excluding Executive Condominiums (ECs) in the third quarter, lower than the 2,843 units in the second quarter, URA said. A total of 1,531 private residential units (excluding ECs) were sold by developers during the quarter, compared with 2,665 units in the previous quarter.
No new EC units were launched for sale during the quarter. Developers sold 162 EC units in the third quarter, compared with the 154 units sold in the second quarter.
RESALES AND SUB-SALES
The number of resale transactions fell to 1,288 in the third quarter, down from 1,389 transactions in the previous quarter. Resale transactions accounted for 43.6 per cent of all sale transactions during the quarter, compared with 33 per cent in the second quarter.
There were 136 sub-sale transactions in the third quarter, down from 158 transactions in the previous quarter. Sub-sales accounted for 4.6 per cent of all sale transactions in the quarter, up from the 3.8 per cent recorded in the April to June period.
SUPPLY IN THE PIPELINE
As at the end of the third quarter, there were 74,496 uncompleted private residential units (excluding ECs) in the pipeline, compared with 76,014 units in the previous quarter. Of this number, 28,120 units remained unsold. Adding the 14,131 upcoming EC units, there are a total of 88,627 units in the pipeline.
Another 8,550 units (including ECs) will soon be added to the pipeline supply, the URA said.
- CNA/cy
- wong chee tat :)
Prices of private residential properties fell by 0.7 per cent in the third quarter following a 1 per cent decrease in the previous quarter, the Urban Redevelopment Authority (URA) said.
SINGAPORE: Prices of private residential properties in the third quarter fell by 0.7 per cent from the previous quarter – the fourth consecutive quarter of decline, the Urban Redevelopment Authority (URA) said on Friday (Oct 24).
The price decline was observed across all segments of the private residential property market, URA said. Prices of non-landed properties in the Core Central Region (CCR) declined by 0.8 per cent from the previous quarter, following the 1.5 per cent decrease in the April to June period. Prices in the Rest of Central Region (RCR) declined by 0.4 per cent, the same rate of decline as in the previous quarter. In Outside Central Region (OCR), prices declined by 0.3 per cent, after the 0.9 per cent decline in the previous quarter. Prices of landed properties declined by 1.8 per cent, following the decrease of 1.7 per cent in the previous quarter.
Rentals of private residential properties in the third quarter fell by 0.8 per cent from the previous quarter, compared with a 0.6 per cent decline in the April to June period.
LAUNCHES AND TAKE-UP
Developers launched 1,294 uncompleted private residential units excluding Executive Condominiums (ECs) in the third quarter, lower than the 2,843 units in the second quarter, URA said. A total of 1,531 private residential units (excluding ECs) were sold by developers during the quarter, compared with 2,665 units in the previous quarter.
No new EC units were launched for sale during the quarter. Developers sold 162 EC units in the third quarter, compared with the 154 units sold in the second quarter.
RESALES AND SUB-SALES
The number of resale transactions fell to 1,288 in the third quarter, down from 1,389 transactions in the previous quarter. Resale transactions accounted for 43.6 per cent of all sale transactions during the quarter, compared with 33 per cent in the second quarter.
There were 136 sub-sale transactions in the third quarter, down from 158 transactions in the previous quarter. Sub-sales accounted for 4.6 per cent of all sale transactions in the quarter, up from the 3.8 per cent recorded in the April to June period.
SUPPLY IN THE PIPELINE
As at the end of the third quarter, there were 74,496 uncompleted private residential units (excluding ECs) in the pipeline, compared with 76,014 units in the previous quarter. Of this number, 28,120 units remained unsold. Adding the 14,131 upcoming EC units, there are a total of 88,627 units in the pipeline.
Another 8,550 units (including ECs) will soon be added to the pipeline supply, the URA said.
- CNA/cy
- wong chee tat :)
Scheduled Maintenance - POSB
Scheduled Maintenance - POSB
- wong chee tat :)
| Service | Scheduled Maintenance Date | Expected Downtime | Remarks |
|---|---|---|---|
| iBanking | 25 Oct 2014 | 1000hrs to 2200hrs | - System Maintenance - iB trading services - Online Equity Trading |
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| 1705hrs to 1710hrs | - System Maintenance - MCSA Funds Transfer, and Portfolio Enquiry | ||
| 26 Oct 2014 | 0000 hrs to 0400 hrs | - Credit Card Payment New: Pay Other Banks' Visa and Mastercard bills New: Make Payment, Add Payee - Send Money to an Overseas Visa Card (Visa Personal Payments) New: Send Money, Add Beneficiary | |
| 0000hrs to 1850hrs | - System Maintenance - Online Equity Trading | ||
| 0120hrs to 1600hrs | - System Maintenance - MCSA Funds Transfer, and Portfolio Enquiry | ||
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| Token Registration | 26 Oct 2014 | 0030hrs to 0400hrs |
downtime
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