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									SINGAPORE PROPERTY
MARKET

3 July 2012
    Agenda

   Singapore Economy Overview
   Residential Sector
   Retail Sector
   Office Sector
   Industrial Sector




                                 2
Singapore Economy
Overview
Overview

• Economic forecast 2012
   – Revised GDP growth to approximately 2.5% from 3%
   – 2011 GDP Growth – 4.8%

• Employment
   – Unemployment rate – 2.1%




                                                        4
Overview


• Business Outlook Jan- Jun 2012 - negative



                 General Business Expectations
              Real Estate                 - 60
      Other Business Services             -15




Source: EDB
                                                 5
    Key
    Challenges
    Manpower Costs
    Poor Market Conditions
    Recruitment of talents
    Operating Costs
    Contagion Effects of Europe and US




                                          6
Property Market -
Residential
Residential Price
Indices

           Singapore Residential Property Price Indices



   250.0

   200.0

   150.0

   100.0

    50.0

     0.0




                All Residential (Price)   Landed Properties   Non Landed




Source: URA
                                                                           8
1 Q 2012 Median
Prices & Rental
Yields
                      1Q2012 Median Price
                            ($psm)
  Detached                  $8,814
  Semi - Detached           $8,607
  Terrace House             $11,019
  Apartment                 $11,670
  Condominium               $11,792


                        Rental Yields
 Prime Districts        2.7% to 2.9%
 Suburban Districts     4.7% to 5.1%
Salient Factors
and Features
    Seller’s Stamp Duty in 2010 and 2011
    Additional Buyer Stamp Duties from 1 Dec 2011
      For foreign buyers
      For PRs owning at least1 property
      For Singaporean owning at least 2 properties
    Foreign investors
    Proliferation of shoebox units being launched in
    new projects in 2010 and 2012 (smallest - 24 sqm)
    Developers need to sell new launches within 5
    years




                                                        10
Property Market -
Retail
Retail Capital Value
and Rental Indices

            Singapore Retail Capital Value and Rental
                             Indices
    140.0

    120.0

    100.0

     80.0

     60.0

     40.0

     20.0

      0.0




                          Capital Value   Rental




                                                        12
 Retail – Median
 Prices & Rentals
                              Jan - Jun 2012

                    Median Price ($psm)   Median Floor Area

Central Region      $27,992 to $43,048      10 to 29 sqm
East Region         $11,641 to $62,000     10 to 131 sqm
North East Region   $12,195 to $32,368     22 to 99 sqm
North Region             $10,769               26 sqm
West Region         $8,902 to $20,385      13 to 82 sqm




                                                              13
Retail – Rentals


                      Jan to Jun 2012 Rental $psm per
                                   month
                          Min        Median    Max
  Central Area            $27         $104     $700
  East Region             $30         $187     $487
  Fringe Area             $26          $73     $637
  North East Region       $29         $132     $454
  North Region            $32         $135     $393
  West Region             $41         $205     $463




                                                        14
Retail – Salient
Features

• Imposition of additional stamp duties for residential
  properties causes shift of retail investors’
  preferences for commercial strata units
• Absolute quantum is smaller but unit rate has gone
  up
• Compression of yield rate
• Low interest rate




                                                          15
Property Market -
Office
   Office Capital Value
   and Rental Indices
        Office Capital Value Indices
140.0
120.0
100.0
 80.0
 60.0
 40.0
 20.0
  0.0
             Q3

             Q3

             Q3

             Q3

             Q3

             Q3

             Q3

             Q3

             Q3

             Q3

             Q3
        2001 Q2

        2002 Q1

        2003 Q1

        2004 Q1

        2005 Q1

        2006 Q1

        2007 Q1

        2008Q1

        2009Q1

        2010Q1

        2011Q1

        2012Q1
                                                     2001 Q1


          AII Areas   Central Area   Fringe Area

                                                                Office Rental Indices
                                                   250.0

                                                   200.0

                                                   150.0

                                                   100.0

                                                    50.0

                                                     0.0
                                                                Q3

                                                                Q3

                                                                Q3

                                                                Q3

                                                                Q3

                                                                Q3

                                                                Q3

                                                                Q3

                                                                Q3

                                                                Q3

                                                                Q3
                                                           2001 Q1

                                                           2002 Q1

                                                           2003 Q1

                                                           2004 Q1

                                                           2005 Q1

                                                           2006 Q1

                                                           2007 Q1

                                                           2008Q1

                                                           2009Q1

                                                           2010Q1

                                                           2011Q1

                                                           2012Q1
                                                               AII Areas   Central Area   Fringe Area

                                                                                                        17
Office Median
Prices and Rental


                           Jan - Mar 2012
                  Median Price      Median Rental
   Central area   $11,711 psm       $101.33 psm pm
                          2001 Q1

   Fringe Area    $8,320 psm        $43.38psm pm




                                                     18
Office – Salient
Features

     Shift of retail investors from residential to
     commercial strata units
     Increased supply of small strata office units
     Yields have been compressed
     Retail Investors are looking at capital
     appreciation instead a reasonable return




                                                     19
Property Market -
Industrial
        Industrial Capital
        Value Indices
         Industrial - Capital Value
200.0
                  Indices
150.0
100.0
 50.0
  0.0
             Q3

             Q3

             Q3

             Q3

             Q3

             Q3

             Q3

             Q3

             Q3

             Q3
        2002 Q1

        2003 Q1

        2004 Q1

        2005 Q1

        2006 Q1

        2007 Q1

        2008 Q1

        2009 Q1

        2010 Q1

        2011 Q1

        2012 Q2
        All Industrial   Multi-User Factory   Multi-User Warehouse



                                                                                                       Industrial - Rental Indices
                                                            140.0
                                                            120.0
                                                            100.0
                                                             80.0
                                                             60.0
                                                             40.0
                                                             20.0
                                                              0.0
                                                                               Q3


                                                                                              Q3


                                                                                                             Q3


                                                                                                                            Q3


                                                                                                                                           Q3


                                                                                                                                                          Q3


                                                                                                                                                                         Q3


                                                                                                                                                                                        Q3


                                                                                                                                                                                                       Q3


                                                                                                                                                                                                                      Q3
                                                                     2002 Q1


                                                                                    2003 Q1


                                                                                                   2004 Q1


                                                                                                                  2005 Q1


                                                                                                                                 2006 Q1


                                                                                                                                                2007 Q1


                                                                                                                                                               2008 Q1


                                                                                                                                                                              2009 Q1


                                                                                                                                                                                             2010 Q1


                                                                                                                                                                                                            2011 Q1


                                                                                                                                                                                                                           2012 Q2
                                                                         All Industrial                           Multi-User Factory                                     Multi-User Warehouse
                                                                                                                                                                                                                                     21
Industrial Capital
Value Indices


                              Jan - Mar 2012
                        Median Price Median Rental
 Multi User Factory     $5,470 psm   $20.83psm pm
 Multi User Warehouse   $7,445 psm   $20.23psm pm




                                                     22
Industrial – Salient
Features
   Surge in prices of small strata units as investors
   focus on non residential properties
   Increased of strata flatted factory/warehouse units
   of smaller effective areas
   Developers market strata industrial as business
   spaces but in June 2012, the government has
   stepped in to penalize any misleading or mis-
   representation of the space usage




                                                         23
Thank You


            24

								
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