Transcript Presentation title second line if required

SINGAPORE PROPERTY
MARKET
3 July 2012
Agenda





Singapore Economy Overview
Residential Sector
Retail Sector
Office Sector
Industrial Sector
2
Singapore Economy
Overview
Overview
• Economic forecast 2012
– Revised GDP growth to approximately 2.5% from 3%
– 2011 GDP Growth – 4.8%
• Employment
– Unemployment rate – 2.1%
4
Overview
• Business Outlook Jan- Jun 2012 - negative
General Business Expectations
Real Estate
- 60
Other Business Services
-15
Source: EDB
5
Key
Challenges





Manpower Costs
Poor Market Conditions
Recruitment of talents
Operating Costs
Contagion Effects of Europe and US
6
Property Market Residential
Residential Price
Indices
Singapore Residential Property Price Indices
250.0
200.0
150.0
100.0
50.0
0.0
All Residential (Price)
Landed Properties
Non Landed
Source: URA
8
1 Q 2012 Median
Prices & Rental
Yields
1Q2012 Median Price
($psm)
Detached
$8,814
Semi - Detached
$8,607
Terrace House
$11,019
Apartment
$11,670
Condominium
$11,792
Rental Yields
Prime Districts
2.7% to 2.9%
Suburban Districts
4.7% to 5.1%
Salient Factors
and Features
Seller’s Stamp Duty in 2010 and 2011
Additional Buyer Stamp Duties from 1 Dec 2011
 For foreign buyers
 For PRs owning at least1 property
 For Singaporean owning at least 2 properties
Foreign investors
Proliferation of shoebox units being launched in
new projects in 2010 and 2012 (smallest - 24 sqm)
Developers need to sell new launches within 5
years
10
Property Market Retail
Retail Capital Value
and Rental Indices
Singapore Retail Capital Value and Rental
Indices
140.0
120.0
100.0
80.0
60.0
40.0
20.0
0.0
Capital Value
Rental
12
Retail – Median
Prices & Rentals
Jan - Jun 2012
Median Price ($psm)
Median Floor Area
Central Region
$27,992 to $43,048
10 to 29 sqm
East Region
North East Region
North Region
West Region
$11,641 to $62,000
$12,195 to $32,368
$10,769
$8,902 to $20,385
10 to 131 sqm
22 to 99 sqm
26 sqm
13 to 82 sqm
13
Retail – Rentals
Jan to Jun 2012 Rental $psm per
month
Central Area
East Region
Fringe Area
Min
$27
$30
$26
Median
$104
$187
$73
Max
$700
$487
$637
North East Region
$29
$132
$454
North Region
West Region
$32
$41
$135
$205
$393
$463
14
Retail – Salient
Features
• Imposition of additional stamp duties for residential
properties causes shift of retail investors’
preferences for commercial strata units
• Absolute quantum is smaller but unit rate has gone
up
• Compression of yield rate
• Low interest rate
15
Property Market Office
Office Capital Value
and Rental Indices
Office Capital Value Indices
2001 Q2
Q3
2002 Q1
Q3
2003 Q1
Q3
2004 Q1
Q3
2005 Q1
Q3
2006 Q1
Q3
2007 Q1
Q3
2008Q1
Q3
2009Q1
Q3
2010Q1
Q3
2011Q1
Q3
2012Q1
140.0
120.0
100.0
80.0
60.0
40.0
20.0
0.0
2001 Q1
Central Area
Fringe Area
Office Rental Indices
250.0
200.0
150.0
100.0
50.0
0.0
2001 Q1
Q3
2002 Q1
Q3
2003 Q1
Q3
2004 Q1
Q3
2005 Q1
Q3
2006 Q1
Q3
2007 Q1
Q3
2008Q1
Q3
2009Q1
Q3
2010Q1
Q3
2011Q1
Q3
2012Q1
AII Areas
AII Areas
Central Area
Fringe Area
17
Office Median
Prices and Rental
Jan - Mar 2012
Central area
Median Price
Median Rental
$11,711 psm
$101.33 psm pm
2001 Q1
Fringe Area
$8,320 psm
$43.38psm pm
18
Office – Salient
Features
Shift of retail investors from residential to
commercial strata units
Increased supply of small strata office units
Yields have been compressed
Retail Investors are looking at capital
appreciation instead a reasonable return
19
Property Market Industrial
Industrial Capital
Value Indices
200.0
Industrial - Capital Value
Indices
150.0
100.0
50.0
2002 Q1
Q3
2003 Q1
Q3
2004 Q1
Q3
2005 Q1
Q3
2006 Q1
Q3
2007 Q1
Q3
2008 Q1
Q3
2009 Q1
Q3
2010 Q1
Q3
2011 Q1
Q3
2012 Q2
0.0
Multi-User Warehouse
Industrial - Rental Indices
140.0
120.0
100.0
80.0
60.0
40.0
20.0
All Industrial
2012 Q2
Q3
2011 Q1
Q3
Q3
2010 Q1
2009 Q1
Q3
Q3
Multi-User Factory
2008 Q1
2007 Q1
Q3
Q3
2006 Q1
2005 Q1
Q3
2004 Q1
Q3
2003 Q1
0.0
Q3
Multi-User Factory
2002 Q1
All Industrial
Multi-User Warehouse
21
Industrial Capital
Value Indices
Jan - Mar 2012
Median Price Median Rental
Multi User Factory
$5,470 psm
$20.83psm pm
Multi User Warehouse
$7,445 psm
$20.23psm pm
22
Industrial – Salient
Features
Surge in prices of small strata units as investors
focus on non residential properties
Increased of strata flatted factory/warehouse units
of smaller effective areas
Developers market strata industrial as business
spaces but in June 2012, the government has
stepped in to penalize any misleading or misrepresentation of the space usage
23
Thank You
24