THE WORST PERFORMERIN THE BEST PERFORMING PERIOD
JUNE 2012 / ISSUE 1
The property market experienced one of its best performing 5‐year periods from 1Q 2007 to 1Q 2012. One project defies all odds and leave buyers who bought in 2007 in the red. But there is more to it than just past price performance.
SQUARE FOOT RESEARCH PTE. LTD. For enquiries, call +65 6315 9289 www.squarefoot.com.sg
JUNE 2012 – THE WORST PERFORMER IN THE BEST PERFORMING PERIOD – SQUARE FOOT RESEARCH PTE. LTD. PAGE 1
The Worst Performer I N T H E B E S T P E R F O RM I N G P E R I O D
In the last 5 years, the property market in Singapore
experienced one of its best performing 5‐year
periods, with property prices rising by more than
50% (from 1Q 2007 to 1Q 2012). The gain is not
shared equally by all segments. Non‐landed property
prices in the Core Central Region (CCR) rose by a
more moderate 37.5% over the same period,
compared to that in the Rest of Central Region (RCR)
and the Outside of Central Region (OCR), which rose
50.8% and 68.3%, respectively. Interestingly, non‐
landed property rental rates in the CCR rose by 36.7%
over the same period, supporting the segment’s
capital value appreciation. However, rental rates in
the RCR and the OCR saw increases of 40.5% and
45.4%, falling behind their respective capital value
appreciations.
Of course, each property within the same segment
would have performed differently as well over the
same 5‐year period from 1Q 2007 to 1Q 2012. As we
would expect following how the indices performed
for the three segments, the top 5 performers were
located outside of the CCR and the bottom 5
performers were located within the CCR. Among the
bottom 5, St Regis Residences Singapore, actually
registered a fall in capital value by 16.2% (about 3%
annually) from an average value of $2,671psf in 1Q
2007 to $2,237psf in 1Q 2012. Sherwood Tower, a
residential block within Bukit Timah Plaza, tops the
chart with a capital value appreciation of 174.8%
(22.4% annually). Interestingly, Summerdale, an
Executive Condominium, appeared in top 5 with a
gain of 125.9% (17.7% annually).
While the high‐end may be a laggard in the past 5
years, its more moderate price appreciation is fully
supported by a proportionate increase in its rental
rates, and the mass market rally has given the
segment a new price support. Supply in the high‐end
is limited. The subdued en bloc market helps limit the
supply to just what it is today. The mass market, on
the other hand, is being inflated with new supply
from the Government Land Sales (GLS) programme.
In addition, the high‐end segment is attractive from
the point of view of its replacement cost. The
average price for a non‐landed property in the
outskirts stood at about $990psf in 1Q 2012 while
land costs average at $450psf ppr, i.e. the selling
price is more than twice its cost of land. On the other
hand, the average price for non‐landed properties in
districts 9 to 11 stood at about $1,800psf in 1Q 2012,
just about what a site within the three prime districts
would sell for, in our opinion.
Top 5 Performer from 1Q 2007 to 1Q 2012
Project
ASP in 1Q 2007* ($psf)
ASP in 1Q 2012*($psf)
Change (%)
Sherwood Tower 258 709 174.8Northvale 329 754 129.2Summerdale 305 689 125.9Grande Vista 365 792 117.0Loyang Valley 280 607 116.8
*With at least 3 transactions in the quarter Source: URA, squarefoot.com.sg
Bottom 5 Performer from 1Q 2007 to 1Q 2012
Project
ASP in 1Q 2007* ($psf)
ASP in 1Q 2012*($psf)
Change (%)
St Regis Residences Singapore
2,671 2,237 ‐16.2
Waterford Residence
1,301 1,385 6.5
One Shenton 1,884 2,083 10.6The Sail @ Marina Bay
1,722 1,963 14.0
Rivergate 1,614 1,951 20.9*With at least 3 transactions in the quarter Source: URA, squarefoot.com.sg
JUNE 2012 – THE WORST PERFORMER IN THE BEST PERFORMING PERIOD – SQUARE FOOT RESEARCH PTE. LTD. PAGE 2
St Regis Residences Singapore
T R E N D S A N D A N A L Y S I S
See complete analysis at
www.squarefoot.com.sg/trends‐and‐analysis/residential?p=st‐regis‐residences‐singapore
JUNE 2012 – THE WORST PERFORMER IN THE BEST PERFORMING PERIOD – SQUARE FOOT RESEARCH PTE. LTD. PAGE 3
St Regis Residences Singapore (Cont’d) T R E N D S A N D A N A L Y S I S
JUNE 2012 – THE WORST PERFORMER IN THE BEST PERFORMING PERIOD – SQUARE FOOT RESEARCH PTE. LTD. PAGE 4
St Regis Residences Singapore (Cont’d) T R E N D S A N D A N A L Y S I S
JUNE 2012 – THE WORST PERFORMER IN THE BEST PERFORMING PERIOD – SQUARE FOOT RESEARCH PTE. LTD. PAGE 5
Selected Land Sales (Sold) T R E N D S A N D A N A L Y S I S
See complete analysis at http://www.squarefoot.com.sg/trends‐and‐analysis/land‐sales?p=sengkang‐square‐compassvale‐drive
JUNE 2012 – THE WORST PERFORMER IN THE BEST PERFORMING PERIOD – SQUARE FOOT RESEARCH PTE. LTD. PAGE 6
Selected Land Sales (Closing) T R E N D S A N D A N A L Y S I S
See complete analysis at http://www.squarefoot.com.sg/trends‐and‐analysis/land‐sales?p=farrer‐drive
JUNE 2012 – THE WORST PERFORMER IN THE BEST PERFORMING PERIOD – SQUARE FOOT RESEARCH PTE. LTD. PAGE 7
New Launch – Sky Habitat
T R E N D S A N D A N A L Y S I S
See complete analysis at http://www.squarefoot.com.sg/trends‐and‐analysis/residential?p=sky‐habitat
JUNE 2012 – THE WORST PERFORMER IN THE BEST PERFORMING PERIOD – SQUARE FOOT RESEARCH PTE. LTD. PAGE 8
New Launch – Sky Habitat (Cont’d) T R E N D S A N D A N A L Y S I S
JUNE 2012 – THE WORST PERFORMER IN THE BEST PERFORMING PERIOD – SQUARE FOOT RESEARCH PTE. LTD. PAGE 9
Appendix
D I S C L A I M E R
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