PROPERTY PRICES

Property Prices In Detail Since The Beginning 2005

Property Prices In Detail Since The Beginning 2005

Introduction

Based on land-prices published in 2005? overall land-price trends in 2004 were as follows: Average year-on-year land-prices across Japan continued to decline beyond January 2004? but in relation to land for residential and commercial uses? the extent of the decline has actually diminished for two consecutive years and three consecutive years respectively. (Aoki? 200l? 33-41) In the three metropolitan areas? in relation to land for residential and commercial uses? the extent of the decline has diminished for two consecutive years and three consecutive years respectively. It is not only in the three metropolitan areas? but also in local areas that the extent of land-price decline has diminished.

In relation to land for residential use and land for commercial use? it was the first time in 8 years and 7 years respectively that land-price declines had eased-back. Residential Sales helped contribute to record $5.3 billion Investment Sales in 2005 Preliminary data over the last quarter of 2005 showed that total investment sales abated to $758.3 million from $1.2 billion as recorded in 3Q04. Nonetheless? this brought the total investment sales for the year to a respectable $5.26 billion? a 19% increase from 2003. The residential sector topped 2005 yet again in contributing some $1.8 billion (34%) in transacted value. The residential sector also accounted for the largest proportion of sales over? contributing $514.2 million in transacted value or 67% of total sales. (Aoki? 200l? 33-41)

This included a state land sale along Handy Road at $12.3 million or $346 psf per plot ratio. A total of six collective sale deals were recorded in 404 out of a total of 13 completed deals for the whole of 2005. This is also around 36% of the total investment sales concluded in 404 . In terms of transacted values? the $274.5 million collective sales recorded in the final quarter represented 40% of the year 2005's total collective sales.

The collective sale of Maryland Point at Amber Gardens completed by MCL Land at $167 million or $351 psf per plot ratio (inclusive of development charges) was the largest collective sale deal closed over the past two years.

In addition? there was a public sale of industrial land from the government's Reserve List. Sim Lian Development Pte Ltd purchased the 60-year leasehold state land at Lower Delta Road at a price of $18.9 million or $65 psf per plot ratio. In 404 ? office investment sales eased despite the strong signs of renewed interest in 3Q04. Only two investment transactions were recorded. They include #15-01 to 07 of John Hancock Tower that was sold for $7.6 million ($750 psf) and #18- 01/02 of Tong Building that was transacted at $5.55 million ($955 psf). Together? these two freehold office transactions amounted to only 2% of the total investment sales for 404 . (Peterson? 2002)

Following a relatively active 1H04? there was no major activity in the retail investment sales sector this ...