Property affordability weakened amidst 46% decline in launches

Property giant Capitaland reported that the rise in property cost in Singapore has weakened affordability and indicated a debt service ratio of 39% at IQ’10 but “remains healthy".

The claim is stated in Capitaland’s slide presentation entitled “Executing the Strategy,” which was created for the company’s possible investors in non-deal roadshows in the Europe and USA.

Aside from promoting properties to possible investors, the presentation also aims to present Singapore as a “Global City: Cosmopolitan Superhub.”

The slides also indicate a prediction of 6.5 million in population, a leap said to be driven by immigration.

Urban Suites and The Wharf Residence remain to be Capitaland’s best selling assets with 93% of 186 units and 95% of 165 units sold, respectively.

The presentation highlights Capitaland’s strength recovery after selling 7,666 uncompleted units from January to May 2010. Number of uncompleted units sold for the first five months of the year has already reached half the total number of uncompleted units sold in 2009 at 14,424.

Capitaland’s presentation is a hodgepodge of data from sources such as Jones Lang La Salle, Urban Redevelopment Authority and Statistics Singapore, among others.

For the complete presentation click here.