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'Dark condos' point to supply overhang

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A YEAR after lensmen from The Business Times put together a photo essay on "dark condos" to highlight the rising vacancies in the private housing market, they have gone in search of an update of the situation.

In May, they returned to the same 10 completed condo projects they photographed a year ago to capture these developments, as far as possible, from the same angles .

They even went at around the same time - between 8 pm and 9.30 pm on a weekday, before the school holidays, when people could reasonably be expected to be home.

Their findings: Only one of the 10 developments was visibly more lit up than a year ago - The Interlace, a 1,040-unit condo along Depot Road; the other projects were, at best, just slightly brighter than 12 months ago.

This result is somewhat surprising, given that most of these projects have already been fully or substantially sold by their developers; it has been more than 18 months since they were completed and received their Temporary Occupation Permit (TOP). Moreover, leasing activity has been decent at these projects, going by the volume of lease commencements.

Property consultants and developers BT spoke to offered a few explanations for why the majority of BT's sample of dark condos have stayed relatively dark a year later.

One is the changing profile of expat tenants, in tandem with Singapore's rise as a regional business hub and a gateway city.

Jacqueline Wong, head of residential leasing and ad-hoc sales at Savills Singapore, said: "These days, Singapore attracts more foreigners who are based here but travel around the region for work. Such tenants may have leased apartments here but are out of the country for more than half of the lease period, so from the outside, the units look unoccupied, and this is especially obvious at night."

Another reason for the large number of units captured unlit, said consultants, would be that units in prime locations bought by well-heeled foreigners are among the several properties they own in the region or around the world.

These may be holiday homes, occupied only a few times a year, and so are unlit the rest of the time.

Ong Kah Seng, director at R'ST Research, also points out that some local high-net-worth individuals (HNWIs) may be holding off from renting out newly-completed properties, given the weak rentals. "They may be afraid that if they were to lower rents, they could end up with the wrong profile of tenants who could damage their apartments," he said.

Agreeing, CBRE executive director for residential properties Joseph Tan added that these investors may prefer to keep the unit empty for an easier sale to a buyer looking to occupy it.

BT's sample of 10 dark condos included two mass-market projects - NV Residences in Pasir Ris and Canberra Residences in Sembawang.

Agents said the unoccupied units in these developments could be the result of their HDB-upgrader owners having been caught by the cooling measures, which have weakened resale prices of public-housing flats; these upgraders could thus have decided to stay on in their HDB flats, in hopes of getting a higher price for their flats before moving to their private condo unit.

Roving expats and rich foreigners occupying condos only part of the time could be seen as contributing to the sub-optimal use of Singapore's real estate, said DTZ South-east Asia's chief executive Ong Choon Fah, but then again, this is "the price you pay for being a global city".

"It is a reflection of our economy and the status that Singapore has achieved as a hub for business. In gateway cities, you will have mobile, global workers who travel a lot of the time. This is true not just for expats who are based here, but also Singaporeans," she said.

As for rich foreign buyers, Mrs Ong said it could be argued that, beyond the direct investment these HNWIs make, they generate other economic spinoffs: "Once they are here for a visit, chances are they would meet their private banker, insurance advisor, seek medical consultation - or they could have other business dealings."

Still, these arguments do not diminish the gravity of the overall supply overhang in Singapore's housing market, given the ramp-up in private home completions that began last year.

The number of units that obtained TOP surged 51.6 per cent from 13,150 units in 2013 to a record 19,941 units last year.

This level of completions is set to persist; nearly 22,000 units are projected to obtain TOP this year, and a further 21,000 units next year, based on official data.

The vacancy rate for Singapore's private housing stock rose from 5 per cent at the end of 2010 to 7.8 per cent at end-2014. It eased to 7.2 per cent at end-Q1 2015 from a fall in the number of completions in the first quarter to 2,976 units, from 6,366 units in Q4 2014.

That said, completions are expected to step up in the Q2-Q4 period this year, which will push up vacancy rates again.

Savills' Ms Wong predicted: "Single-digit vacancies will rise to double-digits by year-end or second quarter next year."

The sustained high level of new private home completions aside, she cited another trend - the ongoing slowdown in the hiring of foreign expats, core contributors to private residential leasing demand.

With rising completions and vacancies, rents have eased. The Urban Redevelopment Authority's overall rental index for private homes has fallen 5.1 per cent from the Q3 2013 peak to Q1 2015; the drop for landed homes was larger, at 7.3 per cent, than the 4.8 per cent for non-landed homes.

Savills' average monthly rental value of high-end non-landed residential properties stood at S$4.51 per sq ft (psf) in Q1 2015, down 1.3 per cent from the previous quarter and 17.4 per cent below the last peak of S$5.46 psf in Q2 2011.

The rental slide for mass-market condos could be even more severe, suggested Savills Singapore's research head Alan Cheong. "Based on recent anecdotal evidence, leases for suburban condo units are being renewed at rental rates around 15 per cent lower than leases two years ago."

Savills' Ms Wong cited actual rent declines among units in the high-end segment: at the recent peak in 2011/2012, apartments above Level 20 at Ardmore Park condo fetched monthly rentals of about S$20,000; they now attract rentals of S$17,000, a 15 per cent drop.

Mr Cheong said that in the high-end condo market generally, individual landlords have been more flexible in their rental expectations to secure tenants quickly, unlike institutional or corporate landlords.

In the landed segment, the hardest hit have been the "Category A" Good Class Bungalows (GCBs) sitting on large plots, said Ms Wong.

For instance, GCBs in Holland Road which commanded rents of around S$50,000 a month in 2011/2012 are now fetching around S$30,000.

Private residential rents are expected to continue facing downward pressure as the supply of private residential properties completed this year is higher than the leasing demand can comfortably absorb, said Savills.

On the whole, rents could fall 10 per cent to 15 per cent this year, Mr Cheong estimated.

"The mass market will be hit most because the bulk of new home completions are in the suburbs, given that this was the segment where the government had supplied the most land in the past few years."

Source: Business AsiaOne 26th Juen 2015

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Guest Wednesday, 22 January 2025
District 1
Marina Bay Condo | Shenton Way Commercial | Marina Bayfront Condo | Central Boulevard Condo | Central Boulevard Towers | Marina View | V on Shenton | Marina South Pier Condo | Marina One Residences | Shenton Way Condo |
District 2
Pearl Bank En Bloc | Outram Park MRT Condo | Silat Residences | Avenue South Residence | Sky Everton | Sky Everton Freehold Condo Prices | Outram Road Condo | One Pearl Bank | Excellent Connectivity from One Pearl Bank | One Pearl Bank Design and Layouts | Pearl Bank Apartments | Asia Gardens | Anson Road Condo | Tanjong Pagar Condo | Tanjong Pagar Commercial | Greater Southern Waterfront | Wallich Residence | Tanjong Pagar Centre |
District 3
Queenstown Condo | Queens Peak Condo | Dundee Road Condo | Margaret Ville | Margaret Drive Condo | Alexandra View Condo | Prince Charles Crescent Condo | Rest of Central Region Condo | Principal Garden | Silat Avenue Condo | Jalan Bukit Merah Condo | Kampong Bahru Road Condo | Stirling Road Condo | Stirling Residences | Commonwealth Avenue Condo | The Crest @ Prince Charles Crescent | Commonwealth Towers | Highline Residences | Alex Residences |
District 4
Corals at Keppel Bay | Skyline Residences | Reflections at Keppel Bay |
District 5
Park West Condominium En-Bloc | West Coast Vale Condo | Park West Condominium | Parc Clematis | Parc Riviera | The Trilinq | Bijou | West Coast Way Condo | One Normanton Park | Normanton Park Condo | Clementi Avenue 1 Condo | Jalan Lempeng Condo |
District 7
CityGate Condo | Selegie Road Condo | Sophia Road Condo | Tan Quee Lan Street Condo | The M | Middle Road Condo | South Beach Residences | Duo Residences | Beach Road Bugis Rochor Condo | Midtown Suite | Midtown Bay | Midtown Bay Floor Plans and Facilities | Beach Road Commercial | Golden Mile Complex | Textile Centre | Golden Mile Complex En Bloc | Textile Centre En Bloc | The Oasis |
District 8
Peace Centre Mansions En Bloc | Perumal Road Condo | Northumberland Road Condo | Uptown at Farrer | 1953 Condo | LYF | Tessensohn Residence |
District 9
Cairnhill Mansions En Bloc | Orchard Bel-Air En-Bloc | Pacific Mansions En Bloc | Robertson Quay Condo | Paterson Road Condo | Cavenagh Gardens En-Bloc | Cavenagh Gardens | Cavenagh Road Condo | Orchard Boulevard Road Condo | Orchard Road Condo | Scotts Road Condo | Cairnhill Road Condo | Riviera Point | The Iveria | The Iveria Condo Floor Plans | Cairnhill Mansions | One Tree Hill | River Valley Road Condo | Martin Place Condo | Martin Modern | Kim Seng Road Condo | Handy Road Condo | Haus on Handy | Jiak Kim Street Condo | Riviere Condo | Fraser Residence Promenade | Avenir Condo | Pacific Mansions | Great World MRT Station Condo | Martin Place Residences | The Rise at Oxley Residences | Orchard Paterson Cairnhill Road Condo | Core Central Region Condo | Robertson Quay Condo | Paterson Collection | St Thomas Walk | Leonie Hill Road Condo | Horizon Towers | Leonie Gardens | New Futura | Cairnhill Nine | 3 Orchard by the Park | Twin Peaks |
District 10
Grange Road Condo | Farrer Road Condo | Tulip Gardens En Bloc | Tulip Garden Residences | Leedon Green | Leedon Green Floor Plans | Tulip Garden Residences Floor Plans | Tulip Garden | Tanglin Road Condo | Jervois Gardens | Crystal Towers | Juniper Hill Condo by AllGreen Properties | Juniper Hill | The Hyde at Balmoral | The Hyde | Balmoral Road Condo | Jervois Road Condo | Petit Jervois | Jervois Prive Exclusive Condo | Jervois Prive | Jervois Treasures Condo Floor Plans | Jervois Treasures | Tanglin Shopping Centre En Bloc | Tanglin Shopping Centre | Jervois Gardens En Bloc | Spring Grove En Bloc | Spring Grove | Hallmark Residences | Wilshire Residences | Sloane Residences | Ewe Boon Road Condo | Bukit Timah Road Condo | Bukit Timah Collection | Cluny Park Residence | Cuscaden Road Condo | Petit Cuscaden | Cuscaden Reserve | Cuscaden Reserve Condo Floor Plans | Boulevard 88 | Pollen and Bleu | Leedon Residence | Gramercy Park | Ardmore Three 3 | Sculptura Ardmore | RV Residences | Robin Residences | 18 Nouvel@ Anderson Road | Holland Road Condo | The Estoril | The Estoril En Bloc | Hollandia En Bloc | Hyll at Holland | Hollandia | TwentyOne Angullia Park | D'Leedon | Mon Jervois | Holland Village Residences | One Holland Village | One Holland Village A Mixed Development Design | Holland Village Condo | Van Holland | Van Holland Floor Plans | 15 Holland Hill | 15 Holland Hill Floor Plans |
District 11
Chancery Court En Bloc | Chancery Court Condo | Thomson Road Condo | Novena Condo | Newton Road Condo | Pullman Residences | Pullman Residences Floor Plans | Dunearn Road Condo | 386 Dunearn | Dunearn Court Condo | Derby Court | Fyve Derbyshire | Derbyshire Road Condo | Kampong Java Road |
District 12
Balestier Road Condo | Toa Payoh Condo | Neem Tree | Riverbay | Boon Teck Towers | Eight Riversuites | Boon Teck Towers En Bloc | Gem Residences | Kallang Riverside Condo |
District 13
Woodleigh Residences | Upper Serangoon Road Condo | Park Colonial | Woodleigh Lane Condo | Mattar Residences | Woodleigh MRT Condo | Woodleigh Condo | Woodleigh Link Condo | Bidadari New Estate Condo | Upper Aljunied Road Condo | Tre Ver | Raintree Gardens | Potong Pasir Avenue 1 Condo | Potong Pasir Condo | The Maisons | The Quinn | Mattar Road Condo | The Poiz Residences | The Venue Residences | Sant Ritz |
District 14
Eunos Condo | Eunos MRT Condo | Sims Avenue Condo | Changi Road Condo | Parc Esta | Eunosville | Eunosville En Bloc | City Plaza | City Plaza En Bloc | Paya Lebar Road Condo | Sims Drive Condo | Park Place Residences | Paya Lebar Quarters | Sims Avenue Condo | Paya Lebar Central |
District 15
Dunman Road Condo | Coastline Residences | Amber Sea | One Meyer | Albracca | Siglap MRT Station Condo | Marine Parade Road Condo | Casa Meyfort Condo | Meyer Mansion Floor Plans | Meyer Mansion | Meyer Modern | Nanak Mansions | Meyerhouse Exclusive Condominium | Meyerhouse | Meyerbank | Nyon | Rebirth of Amber Park Condo | Amber Park Condo Seafront Living | Amber Park | The Opus | Parkway Mansion | Amber Park En Bloc | Hawaii Tower En Bloc | Parkway Mansion En Bloc | Albracca En Bloc | Laguna Park | Laguna Park En Bloc | Tanjong Katong MRT Station Condo | Meyer Road Condo | Hawaii Tower | Katong Park MRT Condo | Katong Park Residences | Katong Park Towers | Amber Gardens Condo | Amber Road Condo | Neptune Court | Neptune Court En Bloc | Lagoon View | Lagoon View En Bloc | East Coast Marine Parade Condo | Katong Shopping Centre | Katong Shopping Centre En Bloc | Mountbatten Road Condo |
District 16
Siglap Road Condo | Mandarin Gardens | Mandarin Gardens En Bloc | New Upper Changi Road Condo | The Glades | Bedok South Condo |
District 17
The Inflora |
District 18
Tampines Court | Treasure at Tampines | Tampines Court En Bloc | Tampines Street 11 Condo | Tampines Avenue 10 Condo | Coco Palms |
District 19
Florence Regency En-Bloc | Florence Residences Condo Club | Florence Regency | Rio Casa | Kensington Park En-Bloc | Kensington Park | Serangoon Ville | Serangoon Ville En Bloc | Forestwood Residences | Hougang Avenue 2 Condo | Hougang Central Condo | Hougang Condo | Riverfront Residences | Hougang Avenue 7 Condo | Affinity | Serangoon North Avenue 1 Condo | The Garden Residences | New Condo | Serangoon Gardens Condo | Serangoon Central Condo | Lorong Lew Lian Condo | Riverbank Sengkang West Way Condominium | Yio Chu Kang Road Condo | Toho Green | Rivertrees Residences | Parc Botannia | Fernvale Road Condo | High Park Residences | Sengkang West Condo | New Tampines Road Condo | Kingsford Waterbay | Botanique at Bartley | Buangkok Condo | Buangkok MRT Station Condo | Sengkang Central Condo | Sengkang Grand Residences | Sengkang Central Residences | Sengkang Central Residences Floor Plans | Sengkang Grand Residences Floor Plans | Sengkang Central Residences Prices | Sengkang Grand Residences Prices |
District 20
Marymount Road Condo | Braddell View En Bloc | Lentor Hill Road Condo | Lentor Central Condo | Braddell View | Shunfu Road Condo | Jade Scape | Far Horizon Gardens | Far Horizon Gardens En Bloc | Ang Mo Kio Avenue 9 Condo | Faber Gardens | New Lorong Puntong Condo | Thomson Impressions Condo | Adana | Panorama | Upper Thomson Road Condo | Yio Chu Kang Road Condo | Lentor Road Condo | Caldecott Condo | Bishan Central Condo | Lentor Drive Condo |
District 21
Jalan Anak Bukit Condo | Beauty World Condo | Goh & Goh Building En Bloc | Pine Grove | Pine Grove Condo | Pandan Valley Condo | Ridgewood Condo | Ridgewood Condo En Bloc | Mayfair Collection | Mayfair Gardens Condo | Mayfair Modern | King Albert Park MRT Station Condo | Mount Sinai Condo | Ulu Pandan Road Condo | Pine Grove En Bloc |
District 22
Jurong Condo | Lake Grande Condo | Lakeville | J Gateway |
District 23
Toh Tuck Road Condo | Kismis View | Dairy Farm Road Condo | Dairy Farm Residences | Dairy Farm Residences Floor Plans | Foresque Residences | The Lanai | Hillion Residences | Bukit Batok Condo | Hillview Rise Condo | Dairy Farm Residences Prices |
District 25
Woodlands Square Condo | Woodlands Square Commercial | Woodlands Central Condo |
District 26
Springside Road Condo |
District 27
NorthPark Residences | Canberra Drive Condo Sembawang | Canberra Link Condo Sembawang | New Yishun Ave 4 Condo | The Wisteria | Condominium Yishun Central | Symphony Suites | Yishun Avenue 9 Condo | Sembawang Road Condo |
District 28
Jalan Kandis Condo | Kandis Residence |
Executive Condo
Parc Life EC | Choa Chu Kang Drive EC | Sol Acres EC | The Vales EC | Tampines Avenue 10 EC | Tampines Street 62 EC | Fernvale Lane EC | Tampines EC | Signature at Yishun | Choa Chu Kang Grove EC | Bukit Batok EC | Tengah EC | Choa Chu Kang Avenue 5 EC | Woodlands Avenue 12 EC | Sembawang Avenue EC | The Visionaire | New EC at Canberra Link | Canberra Link EC Sembawang | Parc Canberra | Yishun Avenue 9 EC | Yishun Street 51 EC | The Criterion EC Yishun | Yio Chu Kang Road EC | New EC | Serangoon North EC | Yishun Avenue 1 EC | The Terrace EC Punggol | The Amore EC Punggol | Westwood Residences EC | Anchorvale Lane EC Sengkang | Sungei Punggol Reservoir EC Sengkang | Anchorvale Street EC Sengkang | Ola EC | Ola EC Prices and Floor Plans | Westwood Avenue EC | Choa Chu Kang Way EC | Canberra Drive EC Sembawang | BrownStone EC | Choa Chu Kang EC | LakeLife EC Jurong | Jurong EC Jurong | Punggol Drive EC Punggol | Woodlands Avenue 5 EC Woodlands | Parc Canberra Floor Plans | Sumang Walk EC Punggol | Piermont Grand | Piermont Grand EC Prices | Punggol Central EC Punggol |
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