News Releases

The Urban Redevelopment Authority (URA) released today the real estate statistics for the 4th Quarter 2007.

Summary

Prices of private residential, office, shop and industrial properties increased, by 6.8%, 8.0%, 3.4% and 6.0% respectively in the 4th Quarter 2007, bringing the overall increase from end-2006 to the end of 4th Quarter 2007 to 31.2%, 32.6%, 13.2% and 22.7% respectively.

Rentals of private residential, office, shop and industrial properties increased by 6.8%, 10.9%, 0.6% and 7.8% respectively in the 4th Quarter 2007, bringing the overall increase from end-2006 to the end of 4th Quarter 2007 to 41.2%, 56.1%, 18.2% and 32.0% respectively.

While prices and rentals have generally increased in 2007, the rate of increase in rentals for all properties and the rate of increase in prices for private residential and office properties have moderated in the 4th Quarter 2007 as compared to 3rd Quarter 2007. Supply is in the pipeline to meet demand over the next few years. For example, as at 4th Quarter 2007, there were 64,852 private residential units in the pipeline, comprising supply from projects that are already under construction and those that have been granted planning approval but are not under construction yet. For the office sector, there was a supply of about 1.42 million sq m Gross Floor Area (GFA) of office space from various Government and private land sources in the pipeline. Of these, 56,149 private residential units and 1.21 million sq m GFA of office space are expected to be completed between 2008 and 2011.

PRIVATE RESIDENTIAL PROPERTIES

Prices

Overall prices of private residential properties rose 6.8% in the 4th Quarter 2007, compared with the 8.3% increase in the previous quarter (see Annexes A-1a and B-1 & 2). From end-2006 to end-2007, the overall prices of private residential properties have increased by 31.2% (see Annex A-1b).

Prices of non-landed properties rose 7.2% in the 4th Quarter 2007, compared with the 8.3% increase in the previous quarter. Prices of apartments rose 7.5% while those of condominiums rose 7.2%. For the year 2007 as a whole, prices of non-landed properties rose 32.6%.

Prices of non-landed properties in Core Central Region1 (CCR) rose 7.5% in the 4th Quarter 2007, while prices of non-landed properties in Rest of Central Region2 (RCR) and Outside Central Region (OCR) rose by 7.7% and 7.0% respectively (see Annex A-2). For the whole of 2007, prices of non-landed properties rose by 32.7% in CCR, 30.4% in RCR and 26.4% in OCR.

Prices of landed properties rose 4.2% in the 4th Quarter 2007, compared with the 7.5% increase in the previous quarter. For the year 2007 as a whole, prices of landed properties rose 23.4%. Prices of detached, semi-detached and terrace houses rose 5.0%, 3.9% and 3.5% respectively in the 4th Quarter 2007.

The prices of private residential properties are not uniform and vary from project to project.

Home-buyers can view the data on individual uncompleted private residential projects at the following url: http://www.ura.gov.sg/realEstateWeb/price.jsp. From the database, it can be seen that there are a number of uncompleted private residential projects in the suburban areas with prices at a more affordable level. There are also a number of projects with a significant number of units that have not been sold yet.

Besides the data on the sale of uncompleted units direct from developers, home-buyers can also access information on all private residential property transactions on URA’s website at the following url: http://www.ura.gov.sg/realEstateWeb/transaction.jsp. This database, which is based on caveats lodged with the Singapore Land Authority (SLA), contains comprehensive information on the prices and floor areas of the units.

Rentals

Rentals of private residential properties3 rose 6.8% in the 4th Quarter 2007, compared with the 11.4% increase in the previous quarter (see Annex A-3a). From end-2006 to end-2007, the overall rentals of private residential properties have increased by 41.2% (see Annex A-3b).

Rentals of non-landed properties in CCR rose 5.3% in the 4th Quarter 2007. Rentals of non-landed properties in RCR and OCR rose 8.8% and 8.5% respectively (see Annexes A-3a & 4). For the whole of 2007, rentals of non-landed housing rose by 42.3% in CCR, 47.0% in RCR and 41.9% in OCR.

In addition, URA also released data on the 25th percentile, median and 75th percentile rentals for individual private residential projects for 4th Quarter 20074. This data would help the public make better informed decisions related to the renting of private housing. The data on the rentals of individual private residential projects is available in URA’s website at the following url: http://www.ura.gov.sg/realEstateWeb/rental.jsp.

Supply in the Pipeline

As at the end of 4th Quarter 2007, there was a total supply of 64,852 uncompleted units of private housing from projects in the pipeline5(see Annex F). Of these, 38,260 units were still unsold. These comprised 2,063 units that had been launched for sale by developers and 7,099 units which had the pre-requisite conditions for sale and could be launched for sale immediately. The remaining 29,098 units with planning approvals did not have the pre-requisite conditions for sale. However, the pre-requisite approvals for sale, i.e. sale license from the Controller of Housing and Building Plan approval from the Building and Construction Authority (BCA) could be obtained quite quickly and these units could be made available for sale quite soon, if the developers choose to do so6 (see Annex C-1).

Of the 64,852 units, 56,149 units are expected to be completed between the 2008 and 2011, of which 29,722 units are already under construction7. Details of the supply in the pipeline in the 3 locations are given in Annex C-2.

In addition, supply will also come from the sites made available by the Government in the 1st Half 2008 Government Land Sales (GLS) Programme, which can yield about 8,250 new units. When sold, the supply from these sites can be made available for sale within the next one year or so. The Government will also inject additional supply in the 2nd Half 2008 GLS Programme if necessary.

Apart from the additional supply from GLS sites, there will also be additional supply from new private residential developments on private land which will be coming in for planning approval, including those on sites where the existing developments have been sold en-bloc. This will further increase the number of units that can be made available for sale in the next few years.

Launches and Take-up

A total of 1,686 uncompleted private residential units were launched for sale by developers in the 4th Quarter 2007, compared with the 3,709 units launched in the 3rd Quarter 2007. Of the 1,686 uncompleted units launched in the quarter, 532 units were in CCR, 691 units were in RCR, and 463 units were in OCR (see Annex D-1). Major residential projects launched in the quarter included Park Natura at Bukit Batok East Avenue 6 (192 units), Amber Residences at Amber Road (114 units) and Casa Fortuna at Jalan Rajah (106 units). For the whole of 2007, 14,016 uncompleted units were launched by developers for sale.

During the 4th Quarter 2007, 1,397 uncompleted private residential units were sold by developers, compared with the 3,367 units sold in the 3rd Quarter 2007. Of the 1,397 uncompleted units sold in the quarter, 418 units were in CCR, 554 units were in RCR, and 425 units were in OCR (see Annex D-2). Developers also sold 52 completed private residential units in the 4th Quarter 2007. For the whole of 2007, developers sold a total of 14,149 uncompleted units and 662 completed units.

Sub-sales

The total number of sub-sales fell to 513 in 4th Quarter 2007, compared to 1,474 sub-sales in the previous quarter. In percentage terms, sub-sales accounted for 10.7% of all sale transactions in the 4th Quarter 2007, compared to 14.4% in the 3rd Quarter 2007. The number of sub-sales in CCR in the 4th Quarter 2007 accounted for 18.6% of the property sale transactions in this area in the quarter, compared to 24.8% in the previous quarter. The percentages of sub-sales in the 4th Quarter 2007 for RCR, at 12.3% and OCR, at 5.1% were lower than the corresponding percentages of 15.8% and 6.1% in the previous quarter (see Annex E).

Stock and Vacancy

A total of 2,452 private residential units were completed (granted TOP) in the 4th Quarter 2007. Major residential projects completed in the quarter were Citylights at Jellicoe Road (600 units), The Calrose at Yio Chu Kang Road (421 units) and Blossoms @ Woodleigh at Woodleigh Close (240 units).

The vacancy rate of completed private residential units was 5.6% as at the end of 4th Quarter 2007, compared with 5.4% as at the end of the previous quarter (see Annex F).

Executive Condominiums

As at the end of 4th Quarter 2007, there were 444 units of Executive Condominiums (EC) in the pipeline, all of which were under construction (see Annex G-2). All the 444 units had been issued with sale licenses and building plan approvals (i.e. pre-requisites for sale) and had been launched for sale. Of these, 400 units had been sold.

The total stock of completed EC units remained unchanged at 9,986 units as at the end of 4th Quarter 2007. As at the end of 4th Quarter 2007, the vacancy rate was 1.0%, compared with the vacancy rate of 0.8% as at the end of the previous quarter.

OFFICE SPACE

Rentals

Rentals for office space in Singapore increased by 10.9% in the 4th Quarter 2007, compared with the 14.8% in the 3rd Quarter 2007 (see Annex A-3a). From end-2006 to the end-2007, the rentals for office space have increased by 56.1%.

The median rental for “Category 1”8 office space, based on leases which had commenced, was S$12.18 per square foot per month (psf pm) in the 4th Quarter 2007, compared to the median rental of S$10.95 psf pm in the 3rd Quarter 2007. In comparison, the median rental for “Category 2”9 office space was S$5.68 psf pm in the 4th Quarter 2007, compared to the S$5.14 psf pm in the 3rd Quarter 2007 (see Annex A-5). As shown, the rentals for “Category 2” office space were much lower than “Category 1” office space. 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 the 4th Quarter 2007.

The median rentals for “Category 1” and “Category 2” office space based on rental contracts signed in the 4th Quarter 2007 were S$13.31 and S$5.85 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 quarter10.

Prices

Prices of office space rose 8.0% in the 4th Quarter 2007, compared with the 8.1% increase in the previous quarter (see Annex A-1a). From end-2006 to the end-2007, the prices of office space have increased by 32.6%.

Supply in the Pipeline

As at the end of the 4th Quarter 2007, there was a total supply of about 1.42 million sq m GFA of office space in the pipeline. This includes the office space that will be built on awarded GLS and transitional office sites. The former includes Marina Bay Financial Centre (Phase 1 and 211) (325,000 sq m), Marina View Land Parcel A and B (205,000 sq m), South Beach at Beach Road / Middle Road (71,000 sq m) and 2 sites at Anson Road (59,000 sq m). The transitional office sites are those at Scotts Road, Tampines Concourse and Mountbatten Road which in total can generate up to 47,200 sqm of transitional office space. Of the total pipeline supply of office space, about 1.21 million sqm were expected to be completed between 2008 and 2011.

In addition, about 500,000 sq m of commercial space12, most of which can be for office use, could come from sites to be made available via the 1st Half 2008 GLS Programme as well as from new transitional office sites and vacant State properties that will be made available in the coming months. These sites will be tendered out and developed according to market demand.

Apart from office space, as at the end of the 4th Quarter 2007, there was a total supply of 447,000 sq m of business park space from projects in the pipeline13 from Government and private land sources which were expected to be completed between 2008 and 2011. This includes 74,660 sq m of business park space from a business park development at Changi Business Park which was granted planning approval for development in the 4th Quarter 2007. Business park space can meet the office needs of some firms, e.g. backroom operations of companies.

Stock and Vacancy

The amount of occupied office space increased by 12,000 sq m (nett) in the 4th Quarter 2007, lower than the increase of 60,000 sq m in the 3rd Quarter 2007. A total of 11,200 sq m of office space were completed (granted TOP) in the 4th Quarter 2007.

The island-wide vacancy rate of office space was 7.3% as at the end of 4th Quarter 2007, unchanged from that as at the end of 3rd Quarter 2007. The vacancy rate for “Category 1” office space as at the end of 4th Quarter 2007 was 2.1%, compared to the 2.8% as at the end of 3rd Quarter 2007. The vacancy rate for “Category 2” office space as at the end of 4th Quarter 2007 was 8.4%, unchanged from that as at the end of 3rd Quarter 2007 (see Annex A-5).

SHOP SPACE

Rentals

The overall rentals for shop space in Singapore, based on leases which had commenced, increased by 0.6% in the 4th Quarter 2007, compared with the 8.1% increase in the 3rd Quarter 2007. From end-2006 to the end-2007, the overall rentals for shop space have increased by 18.2%. The median rental for shop space in the Orchard Planning Area (Orchard), Rest of City Area (RCA)14 and Outside City Area (OCA) were S$10.39, S$6.52 and S$5.43 psf pm respectively in the 4th Quarter 2007 (see Annex A-5). These statistics were compiled based on IRAS’ records of rental contracts in Singapore where the leases commenced in the 4th Quarter 2007.

The median rentals for shop space in Orchard, RCA and OCA based on all rental contracts signed in the 4th Quarter 2007, regardless of whether or not the leases commenced in the quarter, were S$10.30, S$6.67 and S$5.42 psf pm respectively (see Annex A-5).

Prices

Prices of shop space rose 3.4% in the 4th Quarter 2007, compared with the 3.0% increase in the previous quarter (see Annex A-1a). From end-2006 to the end-2007, the prices of shop space have increased by 13.2%.

Supply in the Pipeline

As at the end of the 4th Quarter 2007, there was a total supply of 556,000 sq m GFA of shop space from projects in the pipeline15, from Government and private land sources. This includes the shop space from new projects which were granted planning approval for development in the 4th Quarter 2007 such as the MBFC Phase 2 at Marina Boulevard (5,500 sq m). Of the total pipeline supply of shop space, about 547,000 sq m were expected to be completed between 2008 and 2011.

Stock and Vacancy

The amount of occupied shop space increased by 1,000 sq m (nett) in the 4th Quarter 2007, compared with a decrease of 12,000 sq m in the 3rd Quarter 2007. A total of 5,300 sq m of shop space were completed (granted TOP) in the 4th Quarter 2007.

The vacancy rate of shop space was 7.2% as at the end of 4th Quarter 2007, compared with 7.7% as at the end of 3rd Quarter 2007. The vacancy rates for shop space in Orchard, RCA and OCA as at the end of 4th Quarter 2007 were 4.3%, 7.8% and 7.4% respectively. In comparison, the vacancy rates for shop space in Orchard, RCA and OCA as at the end of 3rd Quarter 2007 were 3.6%, 8.3% and 8.1% respectively (see Annex A-5).

INDUSTRIAL SPACE

Prices and Rentals

Prices of multiple-user factory space rose 6.2% in the 4th Quarter 2007, compared with the 3.1% increase in the previous quarter (see Annex A-1a). Rentals of multiple-user factory space increased by 8.7%, compared with the 10.7% increase in the previous quarter (see Annex A-3a). From end-2006 to the end of 4th Quarter 2007, the prices and rentals of multiple-user factory space have increased by 23.0% and 33.5% respectively.

Supply in the Pipeline

As at the end of the 4th Quarter 2007, there was a total supply of 3.16 million sq m GFA of factory space from projects in the pipeline16, from Government and private land sources, all of which were expected to be completed between 2008 and 2011.

Stock and Vacancy

The amount of occupied factory space increased by 126,000 sq m (nett) in the 4th Quarter 2007, lower than the increase of 373,000 sq m in the 3rd Quarter 2007. A total of 92,700 sq m of factory space were completed (granted TOP) in the 4th Quarter 2007.

The vacancy rate of factory space declined by 0.2 percentage point to 8.2% as at the end of 4th Quarter 2007.

URA’s REAL ESTATE INFORMATION SERVICE

More detailed information on the price and rental indices, supply in the pipeline, stock and vacancy position of the various properties can be found in the Real Estate Information System (REALIS), an online database of URA.

Subscribers of REALIS can obtain the information from the system after 12.30 pm today. More information on REALIS can be found at http://spring.ura.gov.sg/lad/ore/login/index.cfm. You can also contact the REALIS hotline at 6329 3456.

ANNEX G-1

SUMMARY OF KEY INFORMATION ON EXECUTIVE CONDOMINIUM (EC)
NUMBER OF EC UNITS LAUNCHED AND SOLD IN THE QUARTER

1/ This is compiled from the returns of the quarterly survey on licensed developers based on option given by developers. With effect from 1 Jun 2007, the returns have been based on a monthly survey.