The prime facing areas within the orchard malls have experienced rental levels fall by 4% across the first three quarters of the year, compared to a 2.9% fall for the suburban malls during the same period of time. That sharper decline contributed to the declining rental gap between these groups of shopping malls for Somerset Cairnhill Nine.
Besides the generally hard economic times affecting Singapore, both suburban and orchard malls have lost out on sales to online retailers. If a strategy is not developed to counter the popularity of online shopping then that could adversely affect rental levels still further. That of course could also influence whether or not the Cairnhill Nine Grand Cairnhill Condo rental gap continued to narrow.
Cairnhill Nine Condo Somerset
Further declines in rent are predicted, a fall of around 2% for the suburban malls near Capitaland Cairnhill Nine, and a larger fall in the region of 3 to 5% for the orchard malls. If that prediction turns out to be accurate then the rental gap between the malls will continue to narrow further. That would also demonstrate that the decline in the rental income for orchard malls is worse and will stay that way unless there is an economic recovery.
Yet another consulting firm has calculated that the rental income premium that orchard malls enjoyed over the suburban Orchard Cairnhill Nine has actually decreased notably in the last three years. The rent levels are only 1.09 times higher this year, compared to 1.12 times higher in 2014, and 1.13 times higher during 2013. If orchard malls wanted to increase the gap again then ways would have to be found to reverse the decline in rentals and rent rates been charged.
Cairnhill Nine Capitaland near Takashimaya
Some of the Orchard Road malls have found it really difficult to rent out all of their shop and retail units in Somerset Cairnhill Nine. Even refits and revamps of these malls have not got more firms to rent store space. Sometimes firms have only hired store space after been offered discounted rent levels in Cairnhill Nine Grand Cairnhill Condo. Two of the orchard malls that have found it hardest to find firms to rent units have been Scotts Square and also Shaw Corner.
Cairnhill Nine Ngee Ann City
In theory at least real estate agents and Somerset Cairnhill Nine property developers should never have any problem in letting out shops and retail units to firms looking for a prime location to trade from. However in the Fringe Area in particular there a few shopping malls relatively close together, all competing for a limited number of retailers to be based in their mall. They are also competing to attract the same shoppers to shop at their mall and none of the others.
July saw a quadrupling in the sale of private homes by developers, a figure that excludes ECs, with a figure of 1,594 up from June’s figure of 375. The figures for July were released this past Monday by the Urban Redevelopment Authority and is the highest figure to be seen monthly in practically two years. However, this figure is largely down to just one project.
Accounting for 73% of this figures volume is the sale of 1,169 units in Fernvale Road’s High Park Residences, being sold by Chip Eng Seng. It was the combination of well proportioned units that were small format, and the below average pricing of $1,000 psf, well below what is asked for your average suburban project, that meant the larger majority of units sold were done so under $1 million, placing them in the reach of buyers for a much wider pool for skies 39 toa payoh mrt.
Skies 39 New Condo at Toa Payoh
Also adding to the appeal of the market pitch is the fact that facilities and location of the project are beside the Thanggam LRT station, just a stop away from The Seletar Mall. It was also suggested that the demand in rentals could very well come from those employed in the Seletar Aerospace Park.
Regardless of this, the majority of those watching skies 39 toa payoh lorong 4 do not expect to see this momentum in July sales being sustained into September. One reason is that last Friday began the Hungry Ghost Month, a time considered to be inauspicious for moving home or making business transactions.
Head of Marketing at SPH Elsie Chua which owns some newspapers, said that where advertisements broke the new guidelines, the group would advise advertising clients to alter the advertisements to make them compliant. She added that the new guidelines increase transparency and offer vital information to newspaper readers and she observed that some clients have already implemented the guidelines of their own volition for Kovan Condo.
Upper Serangoon Kovan Condo
Concerns over the rapidly increasing numbers of untruthful adverts have been growing recently. Only last month, ASAS objected to printed advertisements by Funtasy Island Development and Seven Seas FID for the Batam villa project on Funtasy Island. ASAS’s three objections against the advertisements were that they showed landmarks, for example Marina Bay Sands, as being visible from the villa, promised a guaranteed rental return of 7% per years and the ads contained an anonymous upper serangoon buyer’s favourable testimonial.
There were also market rumours that some Iskandar projects began selling properties before obtaining building permits.
The new ASAS guidelines mean that all testimonials or endorsements must represent the average consumer and that ASAS can contact the authors of such endorsements or testimonials to check that they are genuine.
Managing director of GuocoLand Singapore, Mr. Cheng Hsing Yao, has stated that the company has been keeping their prices consistent in relation to what they feel is a fair value. He further stated that this has always been the policy of their group given that they take the long term view. Buyers who have already made Potong Pasir Pavilion purchases may not like this. Also, if the group were to be seen as the kind to slash prices to move units, it would not be a good strategy given the market currently because people will use these expectations and wait.
Potong Pasir Pavilion
Mr. Hsing Yao points out that the groups positive attributes are its rambling 5 hectare site, freehold status, and the location of the project being beside the Leedon Park Good Class Bungalow estate.
Around 70% of those buying are doing so for their own usage for Potong Pasir Pavilion.
There are about 12 units left in GuocoLand’s District 10 luxury project to sell. In June of 2013 the 210 unit Goodwood Residence situated in Bukit Timah was completed.
According to the recent Real Estate Sentiment Index survey done by the National University of Singapore’s REDAS (Real Estate Developers Association of Singapore), it has been shown that a minor improvement in regard to how they feel about the market for 2015’s 2nd Quarter for Criterion EC CDL, even though it has remained weak so far.
Tracking changes over the past 6 months, the Current Sentiment Index has slowly moved up to 3.9%, a figure that is up a notch from the 1st Quarter’s 3.8%. Scores that fall below 5 tend to suggest market conditions that are getting worse, whereas a score above 5 is an indication of conditions that are improving.
A remote site for an Executive Condo located alongside Choa Chu Kang Avenue 5 has drawn in 11 bids for its recent tender. This was more than the predicted 3 to 7 bids that had been predicted by property consultants back in May, when the site saw its launching for Sol Acres.
It has been suggested by analysts that this higher number was down to the continued desire for land of the residential developer. Land is the key raw material that developers require to keep their businesses thriving, regardless of whether there is a dimness to the outlook of the property market.
Sol Acres by MCL Land
At the closing of tender on Tuesday, it was a consortium that was headed by Qingjian Realty who placed the highest bid of $295 per square foot, per plot ratio. This bid was well within the predicted price range of $250 to $330 per square foot, per plot ratio that consultants forecasted. However, it was a mere 7% more than the 2nd highest bid that was made by TID Residential of $276 per square foot, per plot ratio for Sol Acres.