December 2009

Update on Singapore Property Market

This research report has been

prepared by Mr Nicholas Mak,
specially for distribution to
clients of:

An unusual performance
The Singapore residential property market has given a rather unusual performance in 2009. While the real economy was still
struggling to climb out of the recession, both the private and public housing market surged ahead with record number of home sales
and occasional record prices for certain properties.

Although in the first six months of 2009, the average price of private homes contracted by 18.1%, it regained part of the losses in the
third quarter of the year when it jumped 15.8% quarter-on-quarter (qoq). This was the sharpest rate of price increase in 28 years
and was clearly not sustainable.

The price increase can be attributed to the strong demand in private home sale between February and September 2009. The robust
recovery in the local bourse coupled with low interest rate and the belief that the economic recovery is just round the corner, boosted
the confidence of some homebuyers. Developers sold an average of 1,600 private homes monthly during this period, far exceeding
the 10-year average sale of 680 homes per month. However, after the primary market sales hit the peak of 2,772 units in July 2009,
private home sales have been declining steadily. In November 2009, developers launched 923 units and sold 600 units of private
homes respectively, which is only about a quarter of the volume in July.

The high-end segment is stirring

While the new mass-market condominium projects had contributed largely to the surge in home sales in the first nine months of
this year, sale and launch activities in the high-end segment started to stir in November 2009. Developers launched some 671 units
in the prime residential districts, making up 73% of the total number of private homes launched for sale in November. This is the
highest percentage attributed to the high-end segment since the property boom in 2007. Sixty percent of the primary market sale
in November was also in the prime residential districts, which was another record.

Although it is too early to pop the champagne for the high-end segment, the recent figures indicate that developers are starting to
actively market their residential projects in this segment.

Some of the major projects launched in the prime districts in November were Espada (232 units launched), Parvis (130 units launched),
Marina Bay Suites (90 units launched) and Adria (50 units launched). In November, 103 housing units were sold in the freehold
Parvis, which was the highest number of units sold in a single development in that month. Another high-end project called Espada,
launched 232 units for sale, the highest number of units in November. 61 units at Espada were sold at a median price of $2,322 psf.

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 Some homebuyers were also interested in apartments that were located near the financial district and the Marina Bay. 87 out of the
total of 221 units in the 99-year leasehold Marina Bay Suites were sold at an average price of $2,159 psf, which was 8% higher than
the average price of the nearby Marina Bay Residences in 2009.

The most expensive unit in the primary market was transacted at $2,919 psf in Boulevard Vue. This condominium also achieved the
highest price of the month when three units were sold at a median price of $2,850 psf.

Outlook
In 2010, the launched activities in the residential property market would be quite evenly spread throughout the various parts
of Singapore. However, the attention would likely shift from the mass-market segment to the mid-tier and high-end sectors. As
developers’ inventory of suburban mass-market homes could not be significantly replenished until 2011, there would be an absence
of major launches in this segment to excite the market.

However the expected property price and sale volume growth in the prime districts would not come as fast as that of the mass-
market segment in the first seven months of 2009. This is because the sale in the high-end sector depends significantly on the
demand from foreign buyers, while the mass-market segment rely more on domestic demand. Further stable growth in the global
investment environment is necessary in order to increase homebuyers’ confidence in high-end residential properties. Presently,
high-end buyers are still cautious, but they are gradually returning to the market to shop for attractive assets.

Unlike the mass-market sector, developers in Singapore have sufficient supply of mid-tier and high-end homes for sale. However, they
are waiting for the suitable market condition to launch these projects. Robust demand in these segments is a necessary precondition
for sustainable price increase. In order for private home prices to expand at a steady rate, the sale volume in the primary market
must exceed an average of 2,000 new homes each quarter.

As the prices of some suburban 99-year leasehold condominiums breached the $1,100 psf benchmark, further growth above this level
will be limited by buyers’ purchasing power. Therefore the price increase in this sector is likely to be minimal. By contrast, the current
average price of high-end homes is still about 13% below the peak in 2008. Hence there is more scope for price appreciation in this
segment. Overall, the average price level of private residential property is projected to rise by 10% to 15% in the coming year.

Residential Projects Launched in Oct & Nov 2009

Name of Projects Location Total Average Developer(s)
No. of Launch Price
Units (S$psf)
Projects Launched in October 2009
City Loft Race Course Road 40 $1,181 Ascend Capital Pte Ltd
Cyan Bukit Timah Road / Keng Chin Road 278 $1,821 Far East Organization
Envio Joo Chiat Place 24 $965 JCP Investments Pte Ltd
Estrivillas Jalan Lim Tai See 39 $616 Fortune Land Pte Ltd
Lincoln Suites Khiang Guan Ave 175 $1,845 Koh Brothers, Heeton,
Kim Seng Heng Holdings,
Lian Beng Group
Prestige Loft Telok Kurau Road 19 $1,109 Fragrance Properties Pte Ltd
Suncottages (Strata-Landed) Cashew Crescent 23 $800 Lucky Realty Co Pte Ltd
Trilight Newton Road 205 $1,684 Ho Bee
Vivace Tong Watt Road 85 $1,906 Heritage @ Tong Watt Pte
Ltd
Wembly Residences Yio Chu Kang Road 33 $801 Chelsford Green Pte Ltd
Projects Launched in November 2009
Adria Derbyshire Road 105 $1,518 Jumbo Valley Pte Ltd
Aston Green (Strata-Landed) Paya Lebar Crescent 11 $401 E C Venture Pte Ltd
Espada St. Thomas Walk 232 $2,322 Novelty Orchard Development
Pte Ltd
Kasara (Landed) Ocean Drive (Sentosa Cove) 13 $1,630 Lakefront Pte Ltd
Marina Bay Suites Central Boulevard (near Marina Bay) 221 $2,159 Marina Bay Suites Pte Ltd
Melrose Ville Rose Lane 28 $1,098 TKE Development Pte Ltd
Parvis Holland Hill 248 $1,507 MCL Land & Ho Bee
The Cotz Telok Kurau Road 48 $1,161 Fragrance Realty Pte Ltd
Printed on 12/2009

The Tier Pegu Road 48 $1,273 Kaiwatt Development Pte Ltd

Waterscape At Cavenagh Cavenagh Road 200 $1,909 Cavenagh Properties Pte Ltd
Whitescape Lorong N Telok Kurau 16 $1,115 Sunshine 88 Pte Ltd

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