The Housing & Development Board (HDB) has projected it will need to offer between 10,000 and 12,000 new flats per annum over the next five years to meet the housing demand in Singapore.

Speaking in Parliament on Monday, National Development Minister Mah Bow Tan re-assured that there will be enough affordable flats for first time buyers.

This year, at least 13,500 flats will be offered in total – enough to fill at least half of Bukit Panjang or Pasir Ris, said Mr Mah.

In fact, the ministry was able to ramp up supply quickly at mid-year when demand rebounded.

The minister noted that despite the high demand for housing, expectations of first-time buyers have changed over the years, with many demanding for flats in prime estates or on higher floors.

“I cannot build flats only in the mature estates, only in the city area. I cannot build flats that are only on high floors.”

“We were living in a three-room flat in Kim Keat Avenue – eight of us (shared) three bedrooms, one toilet and bathroom,” Mr Mah said of his past experience. “It was basic but it was like a palace to use because I had just come from a one-room in Chinatown.

Mr Mah explained that the five-year projection serves as a guide for the Build-To-Order system – which is more flexible and can then respond to changes in demand.

With more foreigners coming to live and work in Singapore, Members of Parliament (MPs) also asked whether this new group was adding further to the demand pressure for flats.

“PRs are not eligible for buying new flats, even in the resale market, quite a lot of them actually rent. They are under-represented as far as purchases are concerned,” explained the minister.

Mr Mah also gave an idea of how flats are priced, saying that they are not based on cost plus profit, but the flat’s market price minus the subsidy.

Hence, the cost of a flat could vary from S$230,000 for a room flat in Punggol to a S$530,000 for a five-room flat in Tiong Bahru.

Source : Channel NewsAsia – 23 Nov 2009

The median resale prices of executive condominiums (ECs) have increased 63 per cent in the last two years, riding on the bull-run in the private residential market.

Property consultancy CB Richard Ellis said caveats lodged for ECs in the resale market in October this year showed prices at S$519 per square foot.

This is 63 per cent higher from the bottom of the market in the third quarter of 2006 when ECs in the resale market were sold at S$319 per square foot.

Li Hiaw Ho, executive director at CBRE Research said the analysis shows that buyers who bought new ECs at various periods from 1996 should benefit from the price appreciation in the last two years.

Currently, a 14 per cent price gap exists between the median prices of ECs and mass-market non-landed projects in the resale market.

In the recently announced Government Land Sales programme for the first half of 2010, the government placed two executive condominium sites on the confirmed list and three others on the reserve list.

CBRE said it is a clear signal that the government wants to provide the EC as an alternative housing choice for homebuyers from next year.

The last EC launched was La Casa in May 2005 and it was completed in early 2008.

Going forward, CBRE expects the tender bids for the two new EC sites on the confirmed list, at Buangkok Drive and Yishun Avenue 11, will be a function of developers’ confidence in the EC market and their pricing strategy.

If the price gap between the next new EC project and a new private non- landed leasehold project in the same location is attractive enough, homebuyer demand for EC development will surely return.

Source : Channel NewsAsia – 23 Nov 2009

The government said on Monday the measures taken to cool the property market appear to have had the desired effect.

Speaking in Parliament, National Development Minister Mah Bow Tan noted that since the measures were introduced, the sale of private homes fell 37 per cent on-month in September, and another 29 per cent in October.

In September, the government removed the Interest Absorption Scheme and Interest-Only Loans to temper the exuberance in the property market and to prevent a bubble from forming.

The government has also announced it will resume land sales under the confirmed list of its land sales programme in the first half of 2010.

Mr Mah said the government will continue to monitor the property market closely to assess the market’s response to the measures introduced before deciding whether further measures are needed.

“Our key interest is to ensure that property prices and rentals remain competitive and move in line with economic fundamentals. We want to curb erratic spikes in prices due to excessive speculation, inaccurate information or market manipulation,” the national development minister said.

“But we must let market forces determine prices, based on genuine demand from home-buyers and investors.”

Mr Mah added that the measures introduced in September have also helped to control speculative activity. Government records so far indicate that the number of sub-sales today is not as high as it was during the height of the property market boom.

Sub-sales are closely watched as a gauge of speculative activity in the property market.

“The two schemes that we have removed or disallowed are rather targeted, targeted at the speculators, for example, who would make use of these schemes to flip or turn over properties quite rapidly. We have taken a calibrated approach to the property market. The idea … is to cool the market, not crash it,” Mr Mah said.

The minister said the government may remove the cooling measures in future if the property market stabilises or weakens, but it is too early to say when that might happen.

Analysts MediaCorp spoke to said they expect the property market to remain subdued in coming months.

Nicholas Mak, adjunct lecturer for Business & Environment at Ngee Ann Polytechnic, said: “(The cooling measures) have a psychological effect on speculators, removing many of them from the market. Another factor is that a large part of sale volume we experienced in the first half and later part of this year is mainly due to the sale of 99-year mass market condominiums. Developers are running down on inventory on such stock. As a result, home sales will start to slow down.”

In addition, fewer launches are expected in the year-end period.

Ang Choon Beng, director and head of research services at Cushman & Wakefield, said: “I think the November and December months will be quiet because it’s the holiday season. Most developers will only start launching new projects after the holiday season is over.

“The current situation is that developers are under no pressure to sell because they have substantially sold down their inventory. They have already sold down about 45% of total upcoming supply. So developers are not under any sort of pressure.”

But analysts do not expect prices to trend down yet.

“There’s excess liquidity in the market as a result of global low interest rates. Because Singapore is a transparent and open market, some of this money may come in. That may be an underlying factor that will support the property market in Singapore,” said Mr Ang.

Analysts expect prices to rise moderately, at about 5 to 10 per cent in the year ahead. The bulk of the increase is expected to take place in the mid to higher end of the market, as prices of mass market homes have already reached a high.

Source : Channel NewsAsia – 23 Nov 2009

IMAGINE paying no more than $3,500 a month to live in a centrally located, million-dollar, two-bedroom apartment.

But here’s the catch: The apartment could be decades old, and already sold en bloc – so you may not have very long to live there.

For the time being, rent is going for a song in at least 23 mature condominium developments in the central part of Singapore.

These developments, with more than 2,000 units in all, had originally been bought by developers for en bloc redevelopment in 2006 and 2007.

About half of the 23 estates are located within prime districts nine to 11 – the prestigious Newton, Orchard and Tanglin belt – based on data compiled by property consultancy CB Richard Ellis’ (CBRE) research team, online property-search firm All Property Media and my paper.

But after the recession hit, demand for new properties nosedived, so developers held back redevelopment plans and leased out these condos instead.

This move would help the developers defray the costs of holding onto the properties without developing them, industry experts said.

Ngee Ann Polytechnic real-estate lecturer Nicholas Mak said: “The property market softened during the second quarter last year.

“Developers realised that the high-end market couldn’t support prices they wanted, and braced themselves for a long recession in the second half of last year.

“No one at that time knew how long it would last. So, rather than leaving the acquired buildings empty, developers decided to rent their properties out.”

Inhabitants of these en bloc estates run the gamut from Middle Eastern medical tourists to expatriates, foreign students and Singaporeans waiting for HDB flats.

Particularly popular with foreign students taking courses at the East Asia Institute of Management (EASB) in Ah Hood Road are five properties located in an area bound by Balestier Road, Thomson Road, Jalan Raja Udang and Jalan Datoh.

A mechanic working in the area, who declined to be named, noted: “Some of the girls living here might appear to be students by day, but by night they prowl the streets all dolled up. A friend was solicited once.”

Real-estate developer City Developments Limited (CDL) had acquired the five properties – The Albany, Thomson Mansion, Bright Building, Concorde Residences and Balestier Court – in 2006 and 2007.

my paper understands that these condos were leased out sometime in March this year to three master tenants – companies that shoulder responsibility for the maintenance and occupancy of these properties.

One of them, Malaysia-based intermediary-services company British Capital Group, is the master tenant for Balestier Court and the adjoining Concorde Residences and Bright Building.

The group’s on-site manager, Ms Michelle Feng, said that the company, whose main business is to provide financial services, had spent tens of thousands to upgrade the lifts and mend the water pipes.

It also pays for weekly fogging of the condominiums to kill mosquitoes.

It leases the apartments out to individuals, up to eight of whom can share a unit.

A month’s rent costs $500 to $600 for a bedroom in one of its 72 units, and $2,250 for a 167-sq m apartment.

But business has not been terribly lucrative because many expatriates have returned to their home countries during the recession, and because of maintenance costs, said Ms Feng.

When asked how it kept tabs on the estate and its tenants, Ms Feng said staff from CDL drop by every month. Officers from the Urban Redevelopment Authority and the Ministry of Manpower often visit to check the estate for signs of illegal activities.

Ms Han Jing Jing, 19, and Ms Lu Jiali, 23, both students of EASB’s three-year bachelor’s degree programme in hospitality and tourism management, had found lodgings in Bright Building and Concorde Residences, respectively, in August through word of mouth.

Ms Han, who is from Wunan, China, pays $350 a month and shares her room with two other women, also classmates. Ms Lu, a Malaysian, pays $300.

Their rental contracts are for six months.

Both expressed surprise when this reporter asked when their buildings would be torn down.

“I love the location. It’s only a 15-minute walk away from my school. It would be a pity if we’re not allowed to live here anymore,” said Ms Lu.

But the good times for such tenants are set to end soon. CBRE investment properties executive director Jeremy Lake said: “For most of the projects, they are probably back into profit, whereas nine months ago they were not… It is a plausible proposition to redevelop now, in view of the strong market conditions and demand for new launches.”

Mr Charles Chua, PropNex’s head of investment sales & en bloc, said: “En bloc projects were put to the rental market, out of a no-choice situation, as the rental yield may not be attractive.

Therefore, if our prognosis is correct, work on all en bloc projects that were put on hold will be resumed as soon as possible to get them to launch in the market.”

A 177-unit freehold condominium is expected to be built by CDL where The Albany and Thomson Mansions are now standing.

While CDL is tight-lipped about the date of its launch, real-estate agents estimate that the showflat would be ready for viewing by the end of this year.

Occupants of The Albany and Thomson Mansions are said to have about another year before they have to move.

Tenants of another development, Lincoln Lodge in Newton, have to move out after May next year.

It will be replaced by Lincoln Suites, which was recently soft-launched by Koh Brothers, Heeton Holdings, KSH Holdings and Lian Beng Group.

Similarly, tenants have to leave Sophia Court in Sophia Road, which is expected to make way for the new Sophia Residences, to be developed by GuocoLand by the end of this year.

Mr Mak said: “Residential rentals are still weak in the market. However, when the midand high-end markets start to recover robustly sometime next year, the developers would launch the proposed redeveloped projects for sale. That would also be the time when rentals are likely to increase. Therefore, the tenants could be asked to look for alternative homes at the time when rentals are rising.”

Source : my paper – 23 Nov 2009

Real estate investment trusts (REITs) may have taken a battering in the wake of the global financial crisis, but according to experts, they have rebounded sharply and recovered more quickly than other equities.

Some market watchers said REITs hold great potential in the new post-financial crisis investment landscape.

Singapore’s Raffles City has undergone a major facelift since being managed by a REIT. While that translates into a better shopping experience for customers, the upgrade was mainly driven by a need to improve shareholder returns.

As REITs grow in popularity as an investment vehicle, experts said transparency and liquidity are key. This is especially so because of the ageing populations in the region.

Susan Wachter, Wharton School, University of Pennsylvania, said: “REITs are at an early stage in Asia and it took 20 to 30 years for REITs to grow to a substantial potion of the market in the US. So this is the beginning of what is probably an important role of REITs going forward.

“But REITs are particularly useful as an investment vehicle for yields, and in that respect, perfect for pension funds and retirement funds more generally. Thus as the needs for this grows in Asia, this will be an important vehicle.”

Japan, Australia, Singapore and Hong Kong are seen as leading the REIT market in Asia. Quality assets aside, market watchers said education is important for further growth.

Christopher Gee, executive director, J.P. Morgan Securities, Singapore, said: “We certainly need a lot more education, not just for the investors, but also the REIT managers need to know what is the right thing in the right formula.

“We had a big discussion about cost appropriate or the expenses are appropriate for the REIT project so there are a whole heap of things that need to be sorted. It’s not a perfect vehicle – regulators certainly need to understand a little more about this particular vehicle as well.”

With the booming property markets in China and India, market watchers said they could become the next big growth markets for REITs.

Source : Channel NewsAsia – 23 Nov 2009

Montebleu, a stunning 34-storey landmark and one of Novena’s tallest, is a befitting statement of how you want to live today. Clad in cool grey and white tones, and defined by its sheer curtain wall of aluminium and glass interspersed with balconies of frameless glass parapets, Montebleu spells post-modern elegance.

An attractively designed and spacious recreation deck on the fifth level further enhances the development’s resort style ambience. Facilities on the fifth level include a garden terrace, swimming pool, jacuzzi corner, children’s wading pool, gymnasium, steam room, function hall, barbeque area and children’s playground.

For those who entertain, the beautifully landscaped Sky Terrace on the 14th storey is a wonder to behold. This open-space concept is designed for more private occasions such as the hosting of exclusive functions and the gathering of friends for a spa experience.

Over at the ground floor, you’ll find a tennis court and a porte cochere to welcome you home and elevate you to one of Novena’s highest points of achievement. With its balconies, bay windows, dry and wet kitchens, designer wardrobes, ensuite baths and quality sanitary ware, Montebleu is the epitome of luxury living.

Location: Minbu Road (District 11)
Site Area: 58,019 sqft
Tenure: Freehold
Expected TOP: Dec 2011
Total Units: 151
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*2 BR ~ 800 to 1070 sqft (51 units)
*3 BR ~ 1140 to 1420 sqft (40 units)
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*5 BR Penthouses ~ 2560 to 2910 sqft (2 units)

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SAVINGS accounts have seen miserly interest rates of below 1 per cent per annum since 2001 – and people hoping for better yields ahead will be disappointed.

The rates are unlikely to rise – at least in the next six months, experts say.

Monthly average savings rates have been on a downward trend from January to last month. This means the annual average rate for this year is likely to dip below last year’s already paltry 0.22 per cent.

Rubbing salt into savers’ wounds – inflation is likely to rise next year.

Based on figures from 10 banks and financial institutions compiled by the Monetary Authority of Singapore (MAS), savings accounts earned an average of 0.22 per cent a year in January, before holding at just 0.16 per cent from July to last month.

This is a far cry from the 1.28 per cent savers used to get in 2000, which was the last time interest rates exceeded 1 per cent.

Such measly rates have caused long-time savers such as Mrs F.S. Sim, 31, to dump conventional deposit accounts for other investments.

‘The rates for my DBS Bank savings account fell from 0.25 per cent to 0.125 per cent in July…After deducting fees and taking into consideration inflation, I think I might even lose money,’ said the communications manager.

Industry experts agree, saying it does not make sense for people who are looking to grow their money to put their savings in a basic deposit account, because of the meagre interest rates.

‘Depositing your money in the bank with such low rates can really be only for safekeeping and perhaps for some regular transactions,’ said the president of the Association of Financial Advisers (Singapore), Mr Raymond Ng.

‘In fact, if you leave it in there for a year, your savings might just get eaten up by inflation.’

Last week, the Trade and Industry Ministry raised its inflation forecast for next year to 2.5 per cent to 3.5 per cent, from 1 per cent to 2 per cent, in view of the recent revision in the annual values of Housing Board flats announced by the Inland Revenue Authority of Singapore.

The MAS, however, did not revise its underlying inflation forecast of 1 per cent to 2 per cent, as its figures excluded the cost of accommodation and private road transport.

One would have to go as far back as 1997, during the last Asian financial crisis when the annual average was 3.08 per cent, for a decent return.

But Mr Ng believes that interest rates of between 3 per cent and 6 per cent are a thing of the past.

‘With the current interest rates, your funds will just remain idle and there are many people out there who still do not realise that,’ he added.

Deposit rates typically fall along with the Singapore Interbank Offered Rate (Sibor), which is the rate at which banks lend to one another.

Sibor is the key factor that affects the rate that banks pay depositors. It has been hovering around 0.68 per cent, not far off the all-time low of 0.56 per cent set in June 2003.

Analysts also pointed out that Sibor is influenced by interest rates set by the United States Federal Reserve.

And since December last year, the US Fed has held its key federal funds rate at a record low of zero per cent to 0.25 per cent – to help pull the economy out of the worst downturn since the Great Depression.

All signs point to interest rates staying low for some time.

Kim Eng analyst Pauline Lee told The Straits Times: ‘We’re looking at interest rates to stay flat in the near term, perhaps until the first half of next year.’

Bankers cited another factor for the low rates. They said local banks are typically well-capitalised and hence do not need to attract deposits, even during the downturn.

The dismal amounts earned from bank interest over the years mean the impact on savers – if there were further reductions in rates – would probably be minimal.

For example, if interest rates for a savings account were cut by half from 0.25 per cent to 0.125 per cent, a deposit of $10,000 would earn only $12.50 less a year in interest.

Those wanting to eke out a better return, however, can turn to other options, such as promotional rates that offer higher interest of up to 1.25 per cent or more if certain conditions are met. These could include maintaining a higher minimum deposit amount for a fixed period of time.

Mr Ng, however, said those seeking higher-yielding alternatives would be better off putting their savings in money market funds.

Source : Straits Times – 23 Nov 2009

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A DULL-LOOKING office block just behind Bugis Junction has been sold and will be renovated for use as a campus for private school ERC Institute.

ERC Holdings, which owns the school, bought nearly all of the 999-year leasehold building in North Bridge Road for $46 million earlier this month from City Developments. With 60 units, or 38,534 sq ft, ERC now owns 91.3 per cent of the strata-titled development.

It plans to spend between $3.5 million and $5 million to renovate the six-storey block, said ERC Holdings chief executive Andy Ong.

The price, which works out to about $1,194 per sq ft based on strata area, is considered fair as such space is hard to find in the city, said Mr Shaun Poh of DTZ, who sealed the deal. Mr Ong said he took 15 months to find the space.

Currently, ERC Institute, which has 2,000 students, operates out of two sites: a campus in River Valley Road and an office unit in Robinson Centre. Its most popular programme covers entrepreneurship.

Come September next year, when its long-term lease at Robinson Centre ends, ERC Holdings will give up that space and move to the Bugis building, tentatively named ERC Complex.

‘By 2012, we hope to get 6,000 to 8,000 students, of which 3,000 to 4,000 will be in Singapore,’ said Mr Ong.

ERC has started operations elsewhere in the region, including in Indonesia.

After the renovation, the new building will offer better facilities than the existing campuses, said Mr Ong.

It will have at least two cafes serving a variety of cuisines, a library, a student rest area and a recreation area.

About 30 to 40 state-of-the-art classrooms will be spread over three levels.

One floor will be reserved for the corporate office of ERC Holdings.

The ground floor has retail space, currently taken by a hair salon and a noodle shop. This Fashion has just moved out.

Nearby, another small office block, Premier Centre, could also be transformed. Budget hotel operator Fragrance Group bought it in July for $18 million, or $1,076 per sq ft, from a Hong Leong Group unit, and might turn it into a hotel.

Source : Straits Times – 23 Nov 2009

THE property tax of HDB flats is being raised next year partly to avoid having to introduce a bigger increase later should home prices continue to rise, said Acting Minister for Information, Communications and the Arts Lui Tuck Yew.

He gave the reason yesterday, after being asked at a dialogue with Aljunied-Hougang residents whether the Government could delay it, as the recession has just started to ease.

Noting that the adjustment had been delayed once, Rear-Admiral (NS) Lui said: ‘The problem is, the longer you defer it, the larger the increase will be…if HDB prices continue to go up.’

He also pointed out that the Government is taking steps to soften the impact of the tax rise early next year. It is giving HDB homeowners a one-off rebate, set at 50per cent of the property tax payable and capped at $120. This means low-income families with homes whose property tax is $50 and less will not have to pay any such tax next year.

The property tax rate is 10 per cent of a property’s annual value, although homes that are owner-occupied enjoy a concessionary 4 per cent tax rate. The annual value has increased with rising property prices.

HDB resale prices have risen a hefty 31.2per cent in the past two years, and a further 3.8per cent in the first nine months of this year.

Hence, the Government has decided to raise the property tax ‘to reflect the prevailing movement of HDB prices and also to give rebates’, said Rear-Adm Lui.

He also addressed residents’ concerns about the affordability of HDB flats.

Noting that existing owners gain from their asset’s increasing value, he said: ‘If they eventually need to sell…(it) releases more money for their old age.’

But the anxieties of those planning to buy a flat are not lost on him. He assured them that an HDB flat would not be beyond their means, saying that the Ministry of National Development has matched the prices of different flat types against the salaries of different groups of people in the population. ‘It tries to make sure that for every group, there is a flat type that meets their needs,’ he said.

In doing so, it aims for homeowners to pay no more than 30per cent of their salary every month towards their home loan.

More than 75per cent of HDB dwellers use only the contributions to their CPF savings to make their monthly loan payments, he said, urging residents to buy what is affordable.

Source : Straits Times – 23 Nov 2009

Completion of large condo projects near MRT stations helps to boost demand

The number of subsales in the second and third quarters of this year were among the six highest quarterly figures since 1995 – reflecting the build-up in subsale activity that led to the government announcing measures on Sept 14 to cool property prices.

The completion of several condos this year – many of them large projects, close to MRT stations or near new projects launched this year – helped to boost their demand in the subsale market.

As well, the rise in private home prices this year has given sellers an incentive to let go units bought earlier.

Savills Singapore’s analysis of caveats captured by URA’s Realis system as at Nov 17 showed that 1,249 caveats were lodged for subsales of private apartments and condos in Q3 this year, a tad below the 1,300 caveats in Q2.

Since 1995 (when the Realis caveats database was first set up), there had been four other quarters when subsales of condos/apart- ments exceeded the 1,000 mark – during the 1996 and 2007 property market highs.

In Q2 and Q3 2007, subsales hit 1,857 and 1,534 respectively; in Q1 and Q2 1996, subsales were 1,238 and 1,650.

Projects that topped the subsales charts in Q2 and Q3 this year had generally been launched a few years ago and many of them were completed this year. Examples include Rivergate in the Robertson Quay area, Casa Merah near Tanah Merah MRT Station, City Square Residences along Kitchener Road, The Metropolitan Condo in the Alexandra Road area, The Centris in Jurong and Botannia in West Coast.

Projects that have been recently completed or which are nearing completion offer added appeal to potential buyers keen to move in or rent them out soon.

Giving a seller’s perspective, Knight Frank chairman Tan Tiong Cheng said: ‘If they bought their properties with the intention of leasing them out and if they find today’s rental market challenging, it may make sense to simply cash out, especially if they can make a profit.’

Savills’ lists of the most popular projects in the subsale market in Q2 and Q3 2009 did not include developments launched this year, with the exception of The Quartz, which was relaunched this year.

‘Those who bought projects launched this year would find it harder to flip because their entry price may already be very high,’ says Lee Hon Kiun, owner of Landmark Property Advisers.

Subsales refer to secondary market transactions in projects that have yet to receive Certificate of Statutory Completion. This can take place three to 12 months after Temporary Occupation Permit (TOP).

While subsales are often tracked as a gauge of speculative activity, Mr Lee hesitates to equate the increase in subsales in Q2 and Q3 this year with speculation. ‘Those who bought two to three years ago and sold this year… in the Singapore context, that’s a very long time,’ he chuckled. ‘Speculation is when people buy a property and flip it within six months to make a profit,’ he added.

Savills senior manager (research and consultancy) Christine Sun said new property launches by developers also fuelled subsale interest for nearby projects released a few years ago. For example, the release of Alexis, Ascentia Sky and Interlace in the Alexandra Road area could have helped subsales at The Metropolitan Condo nearby, which was completed this year.

Agreeing, Landmark’s Mr Lee said buyers can pick up more attractive buys in the subsale market for earlier launched projects than at new launches in the same area.

A developer said: ‘Personally, I advise friends to buy in subsale projects as prices are discounted to new launches.’

HDB upgraders bought 39 per cent of the 1,300 private apartments/condos transacted in the subsale market in Q2 this year, although the figure has slipped to 36.6 per cent in Q3 and 33.7 per cent in October. Nonetheless, these figures are higher than HDB residents’ 20.8 and 23.1 per cent share of subsale purchases during the property bull market in Q2 and Q3 2007.

Analysts say the jump in HDB resale flat prices has narrowed the price gap with private housing and made it easier for HDB dwellers to upgrade to a private home; and the subsale market offers a ready supply of recently completed homes that are ready for occupation.

Secondly, existing HDB flat dwellers looking for a bigger home may be deterred from picking one up from the HDB resale market because of high prevailing cash over valuation premiums. ‘If they fork out a little more cash, they could foot the downpayment for a private condo in the subsale market instead,’ said the developer.

Savills also provided monthly subsales data for non-landed private homes, which showed that for this year, the figure peaked at 596 in June.

It has since declined to 483 in July, 441 in August, 325 in Sept and just 184 in October – as at Nov 17 when Savills extracted the Realis data. It also observed an increase in the number of foreigners (including permanent residents) snapping up condos and apartments in the subsale market. Their share of purchases in the subsale market rose to about 31 per cent in Q3 this year and 33 per cent in October – from 21 per cent in Q1 2009.

Between 2007 and the first 10 months of 2009, Indonesians were the top buyers in the subsale market, followed by Malaysians, mainland Chinese, Indians and UK nationals.

Source : Business Times – 23 Nov 2009