Residential Sector

“Cautiously Optimistic”
Aug 2010
 Outline of Presentation

1. Recap for 1Q 2010

2. 2Q 2010 Review

3. 2H 2010 Outlook
 Residential Sector – Recap for 1Q 2010

Frenzy Despite Cooling Measures

 Developers’ Sale Volume

Posted a strong 135% QoQ rebound to 4,380 units
in 1Q 2010.

 Private Home Price

Rose 5.6% QoQ, slower than 4Q 2009’s 7.4%

 Private Home Rents

Rose 4.7% QoQ, faster than 4Q 2009’s 0.6%
 Residential Sector – 2Q 2010 Review

Quarterly Sales Volume Held Steady

16,000

14,000

12,000
Number of Transactions

10,000

8,000

6,000

4,000

2,000

0
1Q 04
2Q 04
3Q 04

4Q 04
1Q 05
2Q 05
3Q 05
4Q 05

1Q 06
2Q 06
3Q 06

4Q 06
1Q 07

2Q 07
3Q 07
4Q 07
1Q 08

3Q 08
4Q 08
1Q 09
2Q 09

3Q 09

4Q 09
1Q 10
2Q 10
2Q 08
Primary Sales Secondary Sales Total Transactions

Source: Colliers International Singapore Research / URA

 No. of New Units Sold

500
1,000
1,500
2,000
2,500
3,000

0
Jun-07
Jul-07
Aug-07
Sep-07
Oct-07
Nov-07
Dec-07
Jan-08
Feb-08
Mar-08
Apr-08

Source: Colliers International Singapore Research / URA

May-08
Jun-08
Jul-08
Aug-08
Sep-08
Oct-08
Nov-08
Dec-08
Jan-09
Feb-09
Mar-09
Apr-09
May-09
Jun-09
Jul-09
Aug-09
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
Monthly Sales Volume Started to Moderate in May and June

May-10
Jun-10
Residential Sector – 2Q 2010 Review
 Residential Sector – 2Q 2010 Review

Sub-sale Activity Remained Subdued

2,500 18%

16%

Percentage of Total Transactions

Number of Subsale Transactions

2,000 14%

12%
1,500
10%

8%
1,000
6%

500 4%

2%

0 0%
1Q 04
2Q 04
3Q 04
4Q 04

2Q 05

4Q 05

4Q 06
1Q 07

4Q 07
1Q 08
2Q 08
3Q 08

1Q 09
2Q 09
3Q 09
4Q 09
1Q 10
2Q 10
1Q 05

3Q 05

1Q 06
2Q 06
3Q 06

2Q 07
3Q 07

4Q 08
Number of Subsale Transactions Percentage of Subsale to Total

Source: Colliers International Singapore Research / URA

 Residential Sector – 2Q 2010 Review

Supply Exceeded Demand; Occupancy Eased To 94.6%

Islandwide Net New Demand, Supply and Occupancy Rate

12,000 100%

10,000 98%
Net New Supply & Demand (units)

96%
8,000

Occupancy Rate
94%
6,000
92%
4,000
90%

2,000
88%

0 86%

1H 10
1999

2000

2001

2002

2003

2005

2006

2008

2009
2004

2007

2Q 09

3Q 09

4Q 09

1Q 10

2Q 10
-2,000 84%

Net New Supply Net New Demand Occupancy Rate

Source: Colliers International Singapore Research / URA

 Residential Sector – 2Q 2010 Review
Price Index Surpassed Historical Peak Despite Moderated Gain; Rental
Growth Accelerated to 5.9% QoQ
200
190 181.4 184.2
177.5
180
170
160
150
140
Index

130
Price Index
120
110
100 Rental Index
90
80
70
1Q 96

1Q 97
3Q 97

3Q 98

1Q 00

3Q 01
1Q 95
3Q 95

3Q 96

1Q 98

1Q 99
3Q 99

3Q 00
1Q 01

1Q 02
3Q 02
1Q 03
3Q 03
1Q 04
3Q 04
1Q 05
3Q 05
1Q 06
3Q 06
1Q 07
3Q 07
1Q 08
3Q 08
1Q 09
3Q 09
1Q 10
Source: URA
 Residential Sector – 2H 2010 Outlook

Outlook : Cautiously Optimistic

 Residential Sector – 2H 2010 Outlook

Record Economic Growth Will Keep Market Sentiment High

 Residential Sector – 2H 2010 Outlook

IRs Will Continue To Boost Investors’ Confidence

 Residential Sector – 2H 2010 Outlook

Ramped-up Housing Supply to Ease Price Hike

Source: URA/ HDB

 Residential Sector – 2H 2010 Outlook

Moderate Price and Rental Growth Foreseen

 Developers Sale
800- to 1,000- unit per month on average

 Private Home Prices

High and Mid-Tier : Up another 5% to 10%
Mass-market : Up another 5%

 Private Home Rents

Up another 5% for all market segments
THANK YOU