Singapore property lures big buyers<\/p>\n
Bernice Han, Agence France-Presse\/Singapore<\/p>\n
Singapore's tallest condominium project will only be ready in
\n2009 at the earliest but that has not stopped Asian buyers from
\njoining the rush for one of the most prestigious addresses in
\ntown.<\/p>\n
At least 30 percent of the buyers at the soft launch of Tower
\n2 of the Sail at Marina Bay were from the region, especially
\nChina, Hong Kong, Indonesia, Taiwan and India, according to
\ndeveloper City Developments Limited (CDL).<\/p>\n
Fewer than 30 apartments remain unsold in the 430-unit Tower 2
\nwhere the price of a one-bedroom unit measuring 57-72 square
\nmeters can set a buyer back by at least S$620,000 (US$366,864).<\/p>\n
But even that is seen as a bargain by some regional investors.<\/p>\n
Property analysts said the recovery in property prices here
\nhas lagged that of neighboring economies by 40-60 percent since
\nthe region was hit by the Severe Acute Respiratory Syndrome
\n(SARS) health epidemic in 2003.<\/p>\n
SARS shook up the travel industry and slowed down the
\neconomies of much of East Asia, including Singapore, six years
\nafter a regional financial crisis also hit the property sector.<\/p>\n
"Our immediate neighbors have already run up so much (since
\nSARS)," said Leslie Chua, the Singapore-based head of regional
\nreal estate intelligence for Jones Lang LaSalle.<\/p>\n
"If you look at places like Hong Kong, Bangkok and Kuala
\nLumpur, it's been trading very well.<\/p>\n
"With all those markets running up so much, Singapore looks
\nattractive."<\/p>\n
According to Chua's calculations, property prices in Hong Kong
\nhave shot up by 60 percent since the SARS outbreak, while in
\nKuala Lumpur, the increase is about 40 percent.<\/p>\n
Prices in Shanghai, increasingly on the radar screens of
\ninvestors, are up also by 40 percent, Chua said.<\/p>\n
By comparison, prices in Singapore rose by less than 10
\npercent over the same period, he said.<\/p>\n
Apart from the attractive valuations, foreign buyers are also
\nattracted to Singapore's status as a stable country and for those
\nplanning to send their kids to schools here, the education
\nsystem, rated as one of the best in Asia, is a plus factor,
\nanalysts said.<\/p>\n
"We are perceived as a safe market so we will attract
\ninvestors who are interested to put their money here," said
\nNicholas Mak, head of consultancy and research at Knight Frank
\nproperty consultancy.<\/p>\n
"There are some markets where it is easy to buy the property
\nbut difficult to exit," he said.<\/p>\n
Mak said many Asian buyers are also planning to send their
\nchildren here to study, so investing in a piece of property would
\nbe a useful investment.<\/p>\n
A recent Jones Lang LaSalle study said more than half the
\nbuyers of new residential projects in the September quarter were
\nforeigners who went mostly for the high-end units.<\/p>\n
According to the study, prices of top-tier apartments at the
\nend of June were still about 32 percent below their peak just
\nbefore the 1997 Asian financial crisis.<\/p>\n
"Singapore's luxury residential prices have remained stable in
\nthe past few years, lagging behind other major Asian cities like
\nShanghai, Beijing, Hong Kong and Bangkok," the study said.<\/p>\n
Things have begun to stir this year and share prices of
\nproperty companies in Singapore have enjoyed a mini-boom after
\nthe government announced in July new measures to boost the
\nmarket, including a relaxation of certain rules to allow foreign
\nownership.<\/p>\n
The share price of Keppel Land, for example, is up almost 40
\npercent since the announcement of the government's pro-property
\nmeasures while Wing Tai Holdings is 23 percent higher and CDL's
\nshare price is up almost 1.7 percent.<\/p>\n
Prices of upmarket apartments and condominiums rose 4.1
\npercent in the July-September period to an average S$1,020 per
\nsquare foot. This is double the 2.1 percent rise in the second
\nquarter.<\/p>\n
Preliminary government figures showed housing prices rose 1.1
\npercent in the third quarter, the biggest quarterly increase in
\nfive years.<\/p>\n
So overwhelming is the response to the CDL project, made up of
\ntwo sail-shaped towers with the taller 70-story Tower 1 rising to
\n245 meters, that CDL is considering canceling the public launch
\nof the 63-story Tower 2 block.<\/p>\n
Last year's sales launch of the 70-story Tower 1 was equally
\npopular with foreign investors making up 40 percent of the
\nbuyers, according to CDL, which is the joint developer with AIG
\nGlobal Real Estate Investment Corp.<\/p>",
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