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22 January 2010

Release of 4th quarter 2009 real estate statistics

The Urban Redevelopment Authority (URA) released today the real estate statistics for the 4th Quarter 2009.

SUMMARY

Prices of private residential properties increased by 7.4%, while those of office, shop and industrial properties increased by 1.0%, 0.6% and 1.8% respectively in the 4th Quarter 2009. For the whole of 2009, prices of private residential properties increased by 1.8%, while those of office, shop and industrial properties decreased by 16.4%, 6.1% and 14.4% respectively.

Rentals of private residential and industrial properties increased by 0.6% and 0.3% respectively, while those of office and shop properties decreased by 3.3% and 1.4% respectively in the 4th Quarter 2009. For the whole of 2009, rentals of private residential properties, office, shop and industrial properties decreased by 14.6%, 23.6%, 7.4% and 13.4% respectively.

As at 4th Quarter 2009, there were 60,476 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 1.06 million sq m Gross Floor Area (GFA) of office space from various Government and private land sources. Of these, about 45,518 private residential units and about 993,000 sq m GFA of office space were expected to be completed between 2010 and 2013. This is based on developers’ declarations and the actual completion schedule may change from quarter to quarter as developers adjust their development plans or construction schedule according to market conditions.

PRIVATE RESIDENTIAL PROPERTIES

Prices

Overall prices of private residential properties increased by 7.4% in 4th Quarter 2009, compared with the 15.8% increase in the previous quarter (see Annexes A-1, A-6 & A-7). For the year 2009 as a whole, prices of private residential properties increased by 1.8%.

Prices of non-landed properties increased by 7.2% in 4th Quarter 2009, compared with the 15.9% increase in the previous quarter. Prices of apartments increased by 9.7%, while prices of condominiums increased by 6.1%. For the year 2009 as a whole, prices of non-landed properties increased by 0.5%.

Prices of non-landed properties in Core Central Region1 (CCR) increased by 7.3% in 4th Quarter 2009, and prices of non-landed properties in Rest of Central Region (RCR) and Outside Central Region2 (OCR) increased by 9.5% and 6.3% respectively (see Annex A-2). For the year 2009 as a whole, prices of non-landed properties in CCR decreased by 1.8%, while those in RCR and OCR increased by 3.0% and 11.8% respectively.

Prices of landed properties increased by 8.3% in 4th Quarter 2009, compared with the 14.9% increase in the previous quarter. Prices of detached, semi-detached and terrace houses increased by 7.9%, 7.6% and 9.4% respectively in 4th Quarter 2009. For the year 2009 as a whole, prices on landed properties increased by 7.7%.

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 increased by 0.6% in 4th Quarter 2009, compared with the decrease of 2.2% in the previous quarter (see Annex A-3). For the year 2009 as a whole, rentals of private residential properties decreased by 14.6%.

Rentals of non-landed properties in CCR and RCR increased by 0.9% and 0.1% respectively in 4th Quarter 2009, while those in OCR remained unchanged (see Annexes A-3 & A-4). For the year 2009 as a whole, rentals of non-landed properties in CCR, RCR and OCR decreased by 15.9%, 14.9% and 14.0% respectively.

In addition, URA also released data on the 25th percentile, median and 75th percentile rentals for individual private residential projects for 4th Quarter 20094. 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 4th Quarter 2009, there was a total supply of 60,476 uncompleted units of private housing from projects in the pipeline5(see Annex E-1). Of these, 34,234 units were still unsold. These comprised 3,317 units that had been launched for sale by developers and 10,620 units which had the pre-requisite conditions for sale and could be launched for sale immediately. The remaining 20,297 units with planning approvals did not have the pre-requisite conditions for sale6(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 60,476 units, 45,518 units were expected to be completed between 2010 and 2013, of which 30,345 units were already under construction7. Developers had obtained planning approvals8 for projects making up the remaining 15,173 units (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 60,476 uncompleted units of private housing from projects in the pipeline, 22,390 units, 17,390 units and 20,696 units were in CCR, RCR and OCR respectively.

In addition to the supply in the pipeline above, the Government had in Nov 09 reinstated the Confirmed List and made available adequate sites in the Reserve List for the Government Land Sales (GLS) Programme in the 1st Half of 2010. The Government placed sites that can potentially yield 2,925 private residential units on the Confirmed List as well as 7,625 private residential units on the Reserve List. Collectively, the GLS Programme can potentially yield 10,550 private residential units, including 2,445 Executive Condominium units. These sites are located in the Outside Central Region (OCR) or in locations in the Rest of Central Region (RCR) where more affordable private housing is expected to be built.

Launches and Take-up

A total of 2,227 uncompleted private residential units were launched for sale by developers in 4th Quarter 2009, compared with 5,899 units in 3rd Quarter 2009. Of the 2,227 uncompleted units launched in the quarter, 1,136 units were in CCR, 497 units were in RCR, and 594 units were in OCR (see Annex C-1). Major residential projects launched in the quarter included Espada at St. Thomas Walk (232 units), Cyan at Bt Timah Road (214 of a total of 278 units), Parvis at Holland Hill (160 of a total of 248 units), Waterfront Waves/Waterfront Key at Bedok Reservoir Road (152 of a total of 842 units) and The Shore Residences at Amber Road (136 of a total of 408 units).

In 4th Quarter 2009, 1,841 uncompleted private residential units were sold by developers, compared with 5,510 units in 3rd Quarter 2009. Of the 1,841 uncompleted units sold in the quarter, 852 units were in CCR, 471 units were in RCR, and 518 units were in OCR (see Annex C-2). Developers also sold 19 completed private residential units in 4th Quarter 2009. For the year 2009 as a whole, developers sold 14,424 units of uncompleted properties and another 264 completed units.

Sub-sales

The total number of sub-sales was 599 in 4th Quarter 2009, compared to 1,342 sub-sales in the previous quarter. In percentage terms, sub-sales accounted for 10.3% of all sale transactions in 4th Quarter 2009, compared to 10.6% in 3rd Quarter 2009. The number of sub-sales in CCR in 4th Quarter 2009 accounted for 13.3% of the property sale transactions in this area in the quarter, compared to 17.7% in the previous quarter. The percentage of sub-sales in 4th Quarter 2009 for RCR, at 9.3%, was lower than the 10.0% in the previous quarter. In OCR, the percentage of sub-sales in 4th Quarter 2009 was 8.8% which was higher than the 7.6% in the previous quarter (see Annex D).

Stock and Vacancy

A total of 1,400 private residential units were completed (granted TOP) in 4th Quarter 2009. Major residential projects completed in the quarter were Oasis Garden at Jalan Bunga Rampai (134 units), The Inspira at Arnasalam Chetty Road (120 units) and Imperial Heights at Ipoh Lane (100 units).

The vacancy rate of completed private residential units decreased from 6.2% as at the end of 3rd Quarter 2009 to 5.0% as at the end of 4th Quarter 2009 (see Annex E-1).

Executive Condominiums

As at the end of 4th Quarter 2009, there were no Executive Condominium (EC) units in the pipeline9.

The total stock of completed EC units remained at 10,430 units as at the end of 4th Quarter 2009. As at the end of 4th Quarter 2009, the vacancy rate was 0.6%, compared with the vacancy rate of 1.0% 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 2009. Overall rentals for office space, based on leases which had commenced, decreased by 3.3% in 4th Quarter 2009, compared with the decrease of 4.1% in 3rd Quarter 2009 (see Annex A-3). For the whole of 2009, rentals of office space has decreased by 23.6%.

The median rental for “Category 1”10 office space, based on leases which had commenced, was S$8.76 per square foot per month (psf pm) in 4th Quarter 2009, lower than the median rental of S$9.60 psf pm in 3rd Quarter 2009. In comparison, the median rental for “Category 2”11 office space was S$4.69 psf pm in 4th Quarter 2009, lower than the median rental of S$4.87 psf pm in 3rd Quarter 2009 (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 2009.

The median rentals for “Category 1” and “Category 2” office space based on rental contracts signed in 4th Quarter 2009 were S$8.76 and S$4.66 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 quarter12.

Prices

Prices of office space increased by 1.0% in 4th Quarter 2009, compared with the decrease of 2.1% in the previous quarter (see Annex A-1). For the whole of 2009, prices of office space fell 16.4%, compared to the decrease of 7.0% in 2008.

Supply in the Pipeline

As at the end of 4th Quarter 2009, there was a total supply of about 1.06 million sq m GFA of office space in the pipeline. Of the total pipeline supply of office space, about 993,000 sq m were expected to be completed between 2010 and 2013. 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 2009, there was a total supply of about 488,000 sq m of business park space from projects in the pipeline 13 from Government and private land sources which were expected to be completed between 2010 and 2013. Business park space primarily caters to non-pollutive industries and businesses that engage in high-technology, research and development (R&D), high value-added and knowledge-intensive activities. However, some of the business park space could be used for selected office uses such as backroom operations of companies.

Stock and Vacancy

The amount of occupied office space increased by 28,000 sq m (nett) in 4th Quarter 2009, as compared to the increase of 3,000 sq m in the previous quarter. A total of 37,100 sq m of office space were completed (granted TOP) in 4th Quarter 2009. This included the newly completed Twenty Anson at Anson Road (18,700 sq m) and Straits Trading Building at Battery Road (8,900 sq m).

The island-wide vacancy rate of office space was 12.1% as at the end of 4th Quarter 2009, slightly lower than the 12.2% as at the end of 3rd Quarter 2009. The vacancy rate for “Category 1” office space increased to 12.3% as at the end of 4th Quarter 2009, from 6.5% as at the end of 3rd Quarter 200914. The vacancy rate for “Category 2” office space as at the end of 4th Quarter 2009 was 12.0%, compared to 13.4% as at the end of 3rd Quarter 2009 (see Annex A-5).

SHOP SPACE

Rentals

The overall rentals for shop space in Singapore, based on leases which had commenced, decreased by 1.4% in 4th Quarter 2009, compared with the 0.9% decrease in the 3rd Quarter 2009 (see Annex A-3). The median rental for shop space in the Orchard Planning Area (Orchard), Rest of City Area (RCA)15 and Outside City Area (OCA) also decreased slightly to S$10.16, S$6.26 and S$5.40 psf pm respectively in 4th Quarter 2009 (see Annex A-5). These statistics were compiled based on IRAS’ records of rental contracts in Singapore where the leases commenced in 4th Quarter 2009.

34. The median rentals for shop space in Orchard, RCA and OCA based on all rental contracts signed in 4th Quarter 2009, regardless of whether or not the leases commenced in the quarter, were S$10.14, S$6.48 and S$5.41 psf pm respectively (see Annex A-5).

Prices

35. Prices of shop space increased by 0.6% in 4th Quarter 2009, compared with the decrease of 1.2% in the previous quarter (see Annex A-1). For the whole of 2009, prices of shop space decreased by 6.1%, compared to the decrease of 1.9% in 2008.

Supply in the Pipeline

36. As at the end of 4th Quarter 2009, there was a total supply of 424,000 sq m GFA of shop space from projects in the pipeline16, from Government and private land sources. Of the total pipeline supply of shop space, about 375,000 sq m were expected to be completed between 2010 and 2013. 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 32,000 sq m (nett) in 4th Quarter 2009, compared with the 68,000 sq m increase in 3rd Quarter 2009. A total of 37,600 sq m of shop space were completed (granted TOP) in the 4th Quarter 2009. This included the newly completed 313@Somerset (18,400 sq m) and Mandarin Gallery (10,200 sq m) at Orchard Road.

The island-wide vacancy rate of shop space was 5.7% as at the end of 4th Quarter 2009, compared to the 6.0% vacancy rate as at the end of 3rd Quarter 2009. The vacancy rates for shop space in Orchard, RCA and OCA as at the end of 4th Quarter 2009 were 5.8%, 7.3% and 5.1% respectively. In comparison, the vacancy rates for shop space in Orchard, RCA and OCA as at the end of 3rd Quarter 2009 were 5.9%, 7.2% and 5.6% respectively (see Annex A-5).

INDUSTRIAL SPACE

Prices and Rentals

Prices of multiple-user factory space increased by 1.5% in 4th Quarter 2009, compared with the 1.8% decrease in the previous quarter (see Annex A-1). Rentals of multiple-user factory space increased by 0.4%, compared with the decrease of 2.6% decrease in the previous quarter (see Annex A-3). For the whole of 2009, prices of multiple-user factory space decreased by 14.2% while rentals has decreased by 12.1%.

Supply in the Pipeline

As at the end of 4th Quarter 2009, there was a total supply of 2.49 million sq m GFA of factory space from projects in the pipeline17, from Government and private land sources. Of the total pipeline supply of factory space, about 2.48 million sq m were expected to be completed 2010 and 2013. 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 265,000 sq m (nett) in 4th Quarter 2009, lower than the increase of 297,000 sq m (nett) in 3rd Quarter 2009. A total of 306,700 sq m of factory space were completed (granted TOP) in 4th Quarter 2009.

The vacancy rate of factory space remained unchanged at 8.1% as at the end of 4th Quarter 2009.

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 property sectors 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. Refers to uncompleted private residential developments without pre-requisites for sale but with Written Permission or Planning Permission granted. The sale licences could be obtained within 5 working days and building plan approvals could be obtained within 7 working days from the date of application for cases where clearances from various technical agencies are obtained and relevant documents are in order during formal submissions.
  7. The expected completion dates of private residential projects in the pipeline are provided by the developers of these projects, and not estimated by URA.
  8. 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.
  9. 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.
  10. 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. The basket of Category 1 office buildings was reviewed in 4Q09 to ensure that it remains relevant and in line with market changes.
  11. Refers to the remaining office space in Singapore which are not included in “Category 1”.
  12. 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.
  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. The basket of Category 1 office buildings was reviewed in 4Q09 to ensure that it remains relevant and in line with market changes.  The increase in vacancy rate for Category 1 office space as at 4Q09 can be partly attributed to the lag time taken for some of the committed tenants to retrofit and physically occupy the space at some of the newly completed Category 1 office buildings.
  15. A map of Central Region showing Orchard and RCA is available at http://spring.ura.gov.sg/lad/ore/login/map_city_area.pdf.
  16. 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.
  17. 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 2009

Annex Title
Annex A-1 Comparison of Property Price Index for 3rd Quarter 2009 and 4th Quarter 2009
Annex A-2 Price Indices of Non-Landed Properties by Locality and Completion Status.
Annex A-3 Comparison of Rental Index for 3rd Quarter 2009 and 4th Quarter 2009
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 2009
Annex E-2 Supply in the Pipeline by Development Status and Expected Year of Completion as at End of 4th Quarter 2009
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