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23 January 2009

Release of 4th Quarter 2008 real estate statistics

The Urban Redevelopment Authority (URA) released today the real estate statistics for the 4th Quarter 2008.

SUMMARY

Prices of private residential, office, shop and industrial properties decreased by 6.1%, 4.9%, 4.8% and 6.5% respectively in the 4th Quarter 2008. For the year 2008 as a whole, prices of private residential, office and shop properties decreased by 4.7%, 7.0% and 1.9% respectively, while the prices of industrial properties increased slightly by 1.5% in the same period.

Rentals of private residential, office, shop and industrial properties decreased by 5.3%, 6.5%, 0.6% and 3.7% respectively in the 4th Quarter 2008. For the year 2008 as a whole, rentals of private residential, office, shop and industrial properties increased by 2.0%, 5.8%, 5.1% and 4.2% respectively.

As at 4th Quarter 2008, there were 64,982 private residential units in the pipeline, comprising supply from projects that were already under construction and those that had been granted planning approval but were not under construction yet. For the office sector, there was a pipeline supply of about 1.39 million sq m Gross Floor Area (GFA) of office space from various Government and private land sources. Of these, about 31,000 private residential units and about 927,000 sq m GFA of office space were expected to be completed between 2009 and 2011. These were lower than the pipeline supply of about 34,600 private residential units and 970,000 sq m GFA of office space expected to be completed between 2009 and 2011, as at 3rd Quarter 2008. The decline in the pipeline supply to be completed between 2009 and 2011 was mainly because a number of developers had in 4th Quarter 2008 made adjustments to the expected year of completion of their private housing and office projects to beyond 2011.

PRIVATE RESIDENTIAL PROPERTIES

Prices

Overall prices of private residential properties fell by 6.1% in 4th Quarter 2008, compared with the decline of 2.4% in the previous quarter (see Annexes A-1a, A-6 & A-7). For the year 2008 as a whole, overall prices of private residential properties fell by 4.7%, compared with an increase of 31.2% in the previous year (see Annex A-1b).

Prices of non-landed properties fell by 6.3% in 4th Quarter 2008, compared with the decline of 2.5% in the previous quarter. Prices of apartments fell by 5.6% while prices of condominiums fell by 6.7%. For the year 2008 as a whole, prices of non-landed properties fell by 5.3%, with prices of apartment falling by 4.5% and those of condominium falling by 5.7% in the same period.

Prices of non-landed properties in Core Central Region1 (CCR) fell by 6.5% in 4th Quarter 2008, and prices of non-landed properties in Rest of Central Region2 (RCR) and Outside Central Region (OCR) fell by 6.2% and 5.9% respectively. For the year 2008 as a whole, prices of non-landed properties in CCR, RCR and OCR fell by 5.6%, 4.7% and 2.9% respectively (see Annex A-2).

Prices of landed properties fell by 4.8% in 4th Quarter 2008, compared with the decrease of 1.9% in the previous quarter. Prices of detached, semi-detached and terrace houses fell by 5.3%, 3.9% and 4.7% respectively in 4th Quarter 2008. For the year 2008 as a whole, prices of detached, semi-detached and terrace houses fell by 3.1%, 1.0% and 1.7% respectively.

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. The database also provides information on projects with units still available for sale.

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 fell by 5.3% in 4th Quarter 2008, compared with the decrease of 0.9% in the previous quarter (see Annex A-3a). For the year 2008 as a whole, rentals of private residential properties increased 2.0%, compared with an increase of 41.2% in 2007 (see Annex A-3b).

Rentals of non-landed properties in CCR, RCR and OCR fell by 6.1%, 5.9% and 4.3% respectively in 4th Quarter 20084 (see Annexes A-3a & A-4). For the year 2008 as a whole, rentals of non-landed properties in CCR, RCR and OCR increased by 0.5%, 0.8% and 2.2% respectively.

In addition, URA also released data on the 25th percentile, median and 75th percentile rentals for individual private residential projects for 4th Quarter 2008 . The data on the rentals of individual private residential projects are available on URA’s website at the following url: http://www.ura.gov.sg/realEstateWeb/rental.jsp.

Supply in the Pipeline

As at the end of the 4th Quarter 2008, there was a total supply of 64,982 uncompleted units of private housing from projects in the pipeline5 (see Annex E-1). Of these, 43,414 units were still unsold. These comprised 3,880 units that had been launched for sale by developers and 14,386 units which had the pre-requisite conditions for sale and could be launched for sale immediately. The remaining 25,148 units with planning approvals did not have the pre-requisite conditions for sale (see Annex B-1). Details of the number of unsold private residential units with planning approvals in the 3 market segments are given in Annex B-2.

Of the 64,982 units, 31,004 units were expected to be completed between 2009 and 2011, of which 25,522 units were already under construction6. Developers had obtained planning approvals7 for projects making up the remaining 5,482 units, but had not yet commenced construction (see Annex E-2).

URA also released detailed data on supply in the pipeline by market segment, development status and expected year of completion at the following url: http://www.ura.gov.sg/real_estate/pipeline_supply. This is to enable the public to have a more comprehensive picture of supply coming on-stream over the next few years in the private housing market. Of the 64,982 uncompleted units of private housing from projects in the pipeline, 23,367 units, 18,296 units and 23,319 units were expected to be completed over the next few years in CCR, RCR and OCR respectively.

Launches and Take-up

A total of 706 uncompleted private residential units were launched for sale by developers in 4th Quarter 2008, compared with 2,244 units in 3rd Quarter 2008. Of the 706 uncompleted units launched in the quarter, 281 units were in CCR, 218 units were in RCR, and 207 units were in OCR (see Annex C-1). Major residential projects launched in the quarter included Newton Edge at Makeway Avenue (104 units), RV Suites at River Valley Road (96 units) and Rosewood Suites at Rosewood Drive (80 units out of a total of 200 units).

In 4th Quarter 2008, 407 uncompleted private residential units were sold by developers, compared with 1,452 units in 3rd Quarter 2008. Of the 407 uncompleted units sold in the quarter, 133 units were in CCR, 84 units were in RCR, and 190 units were in OCR (see Annex C-2). Developers also sold 12 completed private residential units in 4th Quarter 2008. For the whole of 2008, developers sold a total of 4,006 uncompleted units and 258 completed units.

Sub-sales

The total number of sub-sales was 203 in 4th Quarter 2008, compared to 492 sub-sales in the previous quarter. In percentage terms, sub-sales accounted for 12.8% of all sale transactions in 4th Quarter 2008, compared to 11.5% in 3rd Quarter 2008. The number of sub-sales in CCR in 4th Quarter 2008 accounted for 16.9% of the property sale transactions in this area in the quarter, compared to 21.9% in the previous quarter. The percentage of sub-sales in 4th Quarter 2008 for RCR, at 20.4%, was higher than the 12.1% in the previous quarter. The percentage of sub-sales in OCR in 4th Quarter 2008 was 7.3%, same as in the previous quarter (see Annex D).

Stock and Vacancy

A total of 2,651 private residential units were completed (granted TOP) in 4th Quarter 2008. Major residential projects completed in the quarter were City Square Residences at Kitchener Link (471 units of a total of 910 units), The Esta at Amber Gardens (400 units) and The Infiniti at West Coast Park (315 units).

The vacancy rate of completed private residential units was 6.1% as at the end of 4th Quarter 2008, compared with 5.8% as at the end of the previous quarter (see Annex E-1).

Executive Condominiums

As at the end of 4th Quarter 2008, there were no Executive Condominium (EC) units in the pipeline. All available EC units have been sold (see Annex F-1 & F-2).

The total stock of completed EC units was 10,430 units as at the end of 4th Quarter 2008. As at the end of 4th Quarter 2008, the vacancy rate was 0.7%, compared with the vacancy rate of 3.8% as at the end of the previous quarter (see Annex E-1).

OFFICE SPACE

Rentals

The rentals for office space in Singapore fell in 4th Quarter 2008. Overall rentals for office space, based on leases which had commenced, decreased by 6.5% in 4th Quarter 2008, compared with the decrease of 0.8% in 3rd Quarter 2008 (see Annex A-3a). For the whole of 2008, rentals of office space increased by 5.8%, lower than the 56.1% increase in 2007 (see Annex A-3b).

The median rental for “Category 1”8 office space, based on leases which had commenced, was S$13.00 per square foot per month (psf pm) in 4th Quarter 2008, lower than the median rental of S$13.57 psf pm in 3rd Quarter 2008. In comparison, the median rental for “Category 2”9 office space was S$6.01 psf pm in 4th Quarter 2008, compared to the S$6.43 psf pm in 3rd Quarter 2008 (see Annex A-5). 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 4th Quarter 2008.

The median rentals for “Category 1” and “Category 2” office space based on rental contracts signed in 4th Quarter 2008 were S$13.14 and S$5.94 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 decreased by 4.9% in 4th Quarter 2008, compared with the 3.9% decrease in the previous quarter (see Annex A-1a). For the whole of 2008, prices of office space fell by 7.0%, compared with an increase of 32.6% in 2007.

Supply in the Pipeline

As at the end of 4th Quarter 2008, there was a total supply of about 1.39 million sq m GFA of office space in the pipeline. This included the new office space from redevelopment of the former Eminent Plaza (12,430 sq m), which was granted planning approval for development in 4th Quarter 2008. Of the total pipeline supply of office space, about 927,000 sq m were expected to be completed between 2009 and 2011. More detailed data on pipeline supply of office space by development status and expected year of completion are at Annex E-1 and E-2.

Apart from office space, as at the end of 4th Quarter 2008, there was a total supply of about 540,000 sq m of business park space from projects in the pipeline11 from Government and private land sources which were expected to be completed between 2009 and 2011. This included 43,870 sq m of business park space from UE BizHub at Changi Business Park which was granted planning approval for development in 4th Quarter 2008. 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 decreased by 34,000 sq m (nett) in 4th Quarter 2008, as compared with the increase of 16,000 sq m in the previous quarter. A total of 21,100 sq m of office space were completed (granted TOP) in 4th Quarter 2008. This included the newly completed office space in Wilkie Edge at Wilkie Road (10,400 sq m).

The island-wide vacancy rate of office space was 8.8% as at the end of 4th Quarter 2008, compared to the 8.2% vacancy rate as at the end of 3rd Quarter 2008. Similarly, the vacancy rate for “Category 1” office space increased to 4.6% as at the end of 4th Quarter 2008, from 3.4% as at the end of 3rd Quarter 2008. The vacancy rate for “Category 2” office space as at the end of 4th Quarter 2008 was 9.8%, compared to 9.2% as at the end of 3rd Quarter 2008 (see Annex A-5).

SHOP SPACE

Rentals

The overall rentals for shop space in Singapore, based on leases which had commenced, decreased by 0.6% in 4th Quarter 2008 (see Annex A-3a). The median rental for shop space in the Orchard Planning Area (Orchard), Rest of City Area (RCA)12and Outside City Area (OCA) also decreased slightly to S$10.90, S$6.80 and S$5.66 psf pm respectively in 4th Quarter 2008 (see Annex A-5). These statistics were compiled based on IRAS’ records of rental contracts in Singapore where the leases commenced in 4th Quarter 2008.

The median rentals for shop space in Orchard, RCA and OCA based on all rental contracts signed in 4th Quarter 2008, regardless of whether or not the leases commenced in the quarter, were S$10.74, S$6.98 and S$5.65 psf pm respectively (see Annex A-5).

Prices

Prices of shop space decreased by 4.8% in 4th Quarter 2008, compared with the 0.3% decrease in the previous quarter (see Annex A-1a). For the whole of 2008, prices of shop space fell by 1.9%, compared with an increase of 13.2% in 2007.

Supply in the Pipeline

As at the end of 4th Quarter 2008, there was a total supply of 678,000 sq m GFA of shop space from projects in the pipeline13, from Government and private land sources. This included the shop space from new projects which were granted planning approval for development in the 4th Quarter 2008, such as shop space at the UE BizHub at Changi Business Park. Of the total pipeline supply of shop space, about 610,000 sq m were expected to be completed between 2009 and 2011. More detailed data on pipeline supply of shop space by development status and expected year of completion are at Annex E-1 and E-2.

Stock and Vacancy

The amount of occupied shop space increased by 38,000 sq m (nett) in 4th Quarter 2008, compared with the decrease of 13,000 sq m in 3rd Quarter 2008. A total of 55,500 sq m of shop space were completed (granted TOP) in the 4th Quarter 2008. This included the newly completed Jurong Point Shopping Centre Extension at Jurong West Central 3 (20,000 sq m), the newly redeveloped West Coast Plaza at West Coast Road (9,500 sq m) and Sembawang Shopping Centre at Sembawang Road (8,900 sq m).

The islandwide vacancy rate of shop space was 6.2% as at the end of 4th Quarter 2008, compared to the 6.3% vacancy rate as at end of 3rd Quarter 2008. The vacancy rates for shop space in Orchard, RCA and OCA as at the end of 4th Quarter 2008 were 3.3%, 7.5% and 6.2% respectively. In comparison, the vacancy rates for shop space in Orchard, RCA and OCA as at the end of 3rd Quarter 2008 were 3.3%, 7.6% and 6.3% respectively (see Annex A-5).

INDUSTRIAL SPACE

Prices and Rentals

Prices of multiple-user factory space fell by 6.7% in 4th Quarter 2008, compared with the 0.6% increase in the previous quarter (see Annex A-1a). Rentals of multiple-user factory space also fell by 3.2%, compared with the 0.2% increase in the previous quarter (see Annex A-3a). For the whole of 2008, the prices and rentals of multiple-user factory space increased by 2.1% and 5.1% respectively (see Annexes A1-b and A-3b).

Supply in the Pipeline

As at the end of 4th Quarter 2008, there was a total supply of 3.72 million sq m GFA of factory space from projects in the pipeline14, from Government and private land sources. Of the total pipeline supply of factory space, about 3.59 million sq m were expected to be completed between 2009 and 2011. More detailed data on pipeline supply of factory space by development status and expected year of completion are at Annex E-1 and E-2.

Stock and Vacancy

The amount of occupied factory space increased by 175,000 sq m (nett) in 4th Quarter 2008, lower than the increase of 344,000 sq m in 3rd Quarter 2008. A total of 220,000 sq m of factory space were completed (granted TOP) in 4th Quarter 2008.

The vacancy rate of factory space remained unchanged at 6.6% as at the end of 4th Quarter 2008.

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.

 

  1. Core Central Region comprises postal districts 9, 10, 11, Downtown Core Planning Area and Sentosa. A map of Central Region showing the Core Central Region (CCR) and the Rest of Central Region (RCR) is available at: http://spring.ura.gov.sg/lad/ore/login/map_ccr.pdf
  2. Rest of Central Region comprises of the area within Central Region that is outside postal districts 9, 10, 11, Downtown Core Planning Area and Sentosa. A map of Central Region showing the Core Central Region (CCR) and the Rest of Central Region (RCR) is available at:  http://spring.ura.gov.sg/lad/ore/login/map_ccr.pdf
  3. URA’s rental data for private residential properties are compiled based on IRAS’ records of rental contracts for such properties where leases commenced in the reference quarter.
  4. The rental data released are for private residential projects where there were at least 10 rental transactions in the reference quarter.
  5. Refers to new development and redevelopment projects with planning approvals (i.e. Provisional Permission, Written Permission). A Written Permission (WP) is a final approval, as compared with a Provisional Permission (PP), granted under the Planning Act for a proposed development.
  6. The expected completion dates of private residential projects in the pipeline are provided by the developers of these projects, and not estimated by URA.
  7. Planning approvals refer to either Provisional Permission (PP) or Written Permission (WP). A Written Permission (WP) is a final approval, as compared with a Provisional Permission (PP), granted under the Planning Act for a proposed development.
  8. Refers to office space in buildings located in core business areas in Downtown Core and Orchard Planning Area which are relatively modern or recently refurbished, command relatively high rentals and have large floor plate size and gross floor area. A map of Central Region showing the locations of Downtown Core and Orchard Planning Areas is available in URA’s website at: http://spring.ura.gov.sg/lad/ore/login/map_central_region.pdf.
  9. Refers to the remaining office space in Singapore which are not included in “Category 1”.
  10. Tenancy agreements for office space are usually signed up to 3 months before lease commencement. The methodology and sample size may differ from those used by some property consultants.  For example, URA only uses actual contracted rentals in the computation of the statistics, whereas some property consultants use estimates of achievable rents in addition to actual contracted rentals in the computation of their statistics.  
  11. Refers to new development and redevelopment projects with planning approvals (i.e. Provisional Permission, Written Permission). A Written Permission (WP) is a final approval, as compared with a Provisional Permission (PP), granted under the Planning Act for a proposed development.
  12. A map of Central Region showing Orchard and RCA is available at http://spring.ura.gov.sg/lad/ore/login/map_city_area.pdf.
  13. Refers to new development and redevelopment projects with planning approvals (i.e. Provisional Permission, Written Permission). A Written Permission (WP) is a final approval, as compared with a Provisional Permission (PP), granted under the Planning Act for a proposed development.
  14. Refers to new development and redevelopment projects with planning approvals (i.e. Provisional Permission, Written Permission). A Written Permission (WP) is a final approval, as compared with a Provisional Permission (PP), granted under the Planning Act for a proposed development.Refers to new development and redevelopment projects with planning approvals (i.e. Provisional Permission, Written Permission). A Written Permission (WP) is a final approval, as compared with a Provisional Permission (PP), granted under the Planning Act for a proposed development.

 

Summary of Key Information for 4th Quarter 2008

Annex Title
Annex A-1a Comparison of Property Price Index for 3rd Quarter 2008 and 4th Quarter 2008
Annex A-1b Comparison of Property Price Index for 2007 and 2008
Annex A-2 Price Indices of Non-Landed Properties by Locality and Completion Status.
Annex A-3a Comparison of Rental Index for 3rd Quarter 2008 and 4th Quarter 2008
Annex A-3b Comparison of Rental Index for 2007 and 2008
Annex A-4 Rental Indices of Non-Landed Properties by Locality
Annex A-5 Median Rentals and Vacancy of Office and Shop Space
Annex A-6 Chart of Property Price Index by Type of Property
Annex A-7 Chart of Residential Property Price Index by Type
Annex B-1 Number of Unsold Private Residential Units from Projects with Planning Approvals
Annex B-2 Number of Unsold Private Residential Units from Projects with Planning Approvals by Market Segment
Annex C-1 Number of Uncompleted Private Residential Units Launched in the Quarter by Market Segment
Annex C-2 Number of Private Residential Units Sold in the Quarter by Market Segment
Annex D Number of New Sale, Sub-Sale and Resale Transactions for Private Residential Units by Market Segment
Annex E-1 Stock & Vacancy and Supply in the Pipeline as at End of 4th Quarter 2008
Annex E-2 Supply in the Pipeline by Development Status and Expected Year of Completion as at End of 4th Quarter 2008
Annex F-1 Number of Executive Condominium Units Launched and Sold in the Quarter
Annex F-2 Sale Position of Executive Condominium Units with Pre-Requisites for Sale as at End of Quarter