S'pore office prices and rentals will continue increasing

Singapore’s office market has been ranked among the top five in the “HOT” category in the Asia Pacific, according to a Money into Property report released by DTZ.

In an article published by Singapore Business Review, DTZ said the forecast for the commercial and industrial market in Singapore was based on a projected economic growth of between four and six percent.

“Singapore's commercial and industrial markets remain in the HOT category, similar to the Q4 2010 findings, as we expect continued price and rental increases based on the projected economic growth of 4-6 percent in 2011 and over the next few years,” said Chua Chor Hoon, Head of South East Asia Research at DTZ.

Capital values are expected to re-price at a faster pace compared to last year, with growing interest from institutional investors.

“Some of the core developed markets in Asia Pacific have re-priced over the past 12 months resulting in a reduction in the number of HOT markets,” said David Green-Morgan, Head of Asia Pacific Research.

“However, numerous attractive investment opportunities still exist across the region and in all sectors. Developing markets dominate the WARM and HOT categories. However, there are still attractive opportunities in developed markets such as Melbourne and Singapore offices.”

He noted that these opportunities will be fuelled by strong take-up in the office market, which will also encourage continued rental growth.

DTZ expects momentum in Asia Pacific to continue on the back of strong investor interest, robust economic growth and the lack of legacy debt issues.

Non-landed luxury home prices remain stable

Savills Singapore has reported that the prices of non-landed luxury homes it monitored remained steady in the first quarter of the year.

Savills’ data showed that the average price of non-landed luxury private homes remained steady at S$2,269 psf in the first quarter, rising marginally by 0.5 percent quarter-on-quarter from S$2,258 psf in the last quarter of 2010.

The average price of “super luxury” residences also increased marginally by one percent quarter-on-quarter to S$3,417 psf in the first quarter, from S$3,383 psf in the previous quarter.

Thus, the price gap between the Q4 2007 peak and current prices is gradually narrowing, with high-end and super luxury residential prices now only 5.9 percent and 7.2 percent under their peak levels.

Savills anticipates sustained interest in luxury homes in the longer term, as the land supply within this market sector is limited.

“Well-located luxury homes with good product offerings may continue to command premium prices,” Savills said in a report.

“More overseas investors may also divert their investments here, as the strong Singapore dollar can help them hedge against any fluctuations in the global exchange rate.”

In the rental market, the average monthly rent of luxury non-landed residential properties monitored by Savills continued to increase for five consecutive quarters to S$5.43 psf in Q1 2011. However, the growth moderated to just 0.7 percent quarter-on-quarter.

Located in prime districts, most projects completed in the first quarter will exert some short-term pressure on prime rents going forward. But rents are anticipated to stay firm for super luxury homes and good class bungalows as supply is limited.

“Although rents for some high-end private homes may face short-term pressure from the new completions, the limited supply of land for this market segment in the long term could still see rents of good class bungalows and super luxury homes holding firm in the next few quarters,” Savills Singapore said.

Source By - Propertyguru.com

Sembawang site attracts S$191.8m bid

The tender for a 99-year leasehold site at Sembawang Road / Jalan Sendudok closed yesterday, with Hao Yuan Investment offering the highest bid of S$191.8 million.

“The top bid of S$191.8 million or S$460 psf ppr is somewhat higher than market expectations back in March 2011,” said Li Hiaw Ho, Executive Director at CBRE Research.

“The confidence in this site could be attributed to the good response to Canberra Residences, and more recently, Eight Courtyards located at Yishun Avenue 2/Avenue 7.”

Mr. Li noted that Canberra Residences has sold 85 percent of its 320 units, while Eight Courtyards has sold around 75 percent of its 654 units. “Their respective average prices are S$830 psf and S$800 psf. Based on the bid price, a new project will breakeven at around S$800 psf,” he said.

Meanwhile, the second highest bid was jointly submitted by Fragrance Group Ltd and Aspial Corporation Ltd at S$172.55 million, which was 11 percent lower than the highest bid.

The tender for the site attracted a total of six bids, including a tie-up bid between FCL Topaz Ltd and F.E. Lakeside Ltd, as well as another joint bid between Hoi Hup Realty Ltd and Sunway Developments Ltd. Allgreen Properties Ltd emerged as the lowest bidder, offering only S$120.98 million, or approximately S$3,123 psm of gross floor area (GFA).

The site, which was launched for sale on 29 March, has a total area of 27,665.5 sq m and a maximum permissible GFA of 38,732 sq m. It is zoned for residential development and could potentially yield up to 1,500 housing units.

The residential site is located close to Sembawang MRT Station and adjacent to Sembawang Shopping Centre and Sun Plaza.

“For its location at Sembawang Road between Sembawang Shopping Centre and Canberra Residences, the subject site seems fairly popular by the number and quantum of bids it has attracted,” said Mr. Li.

“The Sembawang MRT station is a short drive away. The future development on the subject site will be a five-storey condominium of around 390 units.”

Source By - Propertyguru.com

$969m bid for suburban site in Jurong

A prime mixed-use site in the Jurong Lake District has shattered price records with a top bid of just under $1 billion - almost $200 million more than the market expected. The huge offer stunned analysts and dramatically underscored demand for well-located land in the up-and-coming area. The knockout bid of $969 million - or $1,012 per sq ft (psf) per plot ratio (ppr) - came from heavyweights CapitaMalls Asia, CapitaMall Trust and CapitaLand.

It is easily the highest offer for any mixed-use site outside the city centre and reflects confidence in the suburban office market, the remaking of Jurong and the value that developers see in choice locations near MRT stations, say experts. The second highest bid - $917 million lodged jointly by United Engineers and Singapore Press Holdings - was also far ahead of market expectations. A Keppel Land-led joint venture with Perennial Real Estate offered $785 million. Frasers Centrepoint and private fund Phoenix trailed the field of five with a joint bid of $640 million, 34 per cent lower than the top offer.

They suggest a shift of developers' interest to explore opportunities in suburban commercial land, especially when a substantial amount of office space has been released in the city over the past few years. 'Given limited suburban office supply, the Jurong site might provide good opportunities that developers see value in,' she added. Experts also weighed in on what the site might be used for apart from offices. Savills' Ms Tay said the remaining 60 per cent GFA could be used for apartments as there will be a good market for well-located homes.

- The Straits Times,  P32

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Good demand for residential and industrial property

Industrial and residential projects with affordable prices continue to attract demand.

MCL Land has marketed 150 of the 200 units it has launched at its 414-unit Terrasse condo in Hougang.

“Before we began sales last Saturday (May 21), we had intended to release only 120 units initially. But because demand was strong, we released another 80,” said Koh Teck Chuan, MCL Chief Executive.

The units in the 99-year leasehold, five-storey project are offered at an average price of S$950 psf, with the cheapest unit, a 506 sq ft one-bedroom condo on the second floor, priced at around S$580,000 (S$1,146 psf).

The development also includes two- to four-bedroom units and nine five-bedroom penthouses of approximately 2,217 sq ft, with an indicative price of up to S$1.85 million (S$834 psf) each.

“At most recent launches in the market, enquiries tend to be concentrated on the smallest units but for Terrasse, we’ve seen strong response across the board, including our four-bedders and five-bedroom penthouses,” noted Mr. Koh.

The project’s design provides excellent views of either a water feature or swimming pool, for approximately 80 percent of the units. It will also include a tennis court, a multi-purpose court and three clubhouses.

Meanwhile, NTUC Choice Homes and CEL Development have obtained 520 e-applications for Belysa, their executive condominium (EC) project at Pasir Ris Drive 1 / Elias Road.

The 315-unit, 99-year leasehold project has an average price of S$670 psf and comprises three- and four-bedroom units. The indicative price ranges from S$574,000 for an 829 sq ft three-bedroom unit to S$882,000 for a 1,335 sq ft four-bedroom unit.

In the industrial real estate market, quick sales have been witnessed during the preview of the 60-year leasehold North Spring BizHub at Yishun Industrial Street 1.

According to The Business Times, approximately a third of the 454 units in the seven-storey light and general industrial development were committed or sold.

The robust demand is attributed to the affordable lump sum transaction size. For instance, a 1,539 sq ft unit is offered at a starting price of S$478,000 (approximately S$311 psf). The attractive specifications of the project, including high ceilings and direct vehicular access for up to 40-foot containers for every level, also attracted buyers.

Marketed by Colliers International, the development has smaller units, mostly about 1,500 sq ft to 1,600 sq ft and is priced from S$311 psf upwards. There are also approximately two dozen or so large units (of about 11,000 sq ft to 36,000 sq ft), with prices of approximately S$210 psf upwards.

Source By - PropertyGuru.com

Laguna Park gets $1.33b price tag

Laguna Park condo, a former HUDC estate, has received a S$1.33 billion price tag and is set to become the second-largest collective sale in the country after Farrer Court, which was sold for a whopping S$1.34 billion in 2007, if the deal is successful.

The S$1.33 billion indicative price, which works out to around S$975 psf ppr, includes a development charge of around S$269 million and a lease top-up of approximately S$250 million.

Located along Marine Parade Road, Laguna Park comprises 516 residential units and 12 commercial units. It was previously released for sale in 2009, with an indicative price of S$1.2 billion. However, a potential deal for the site was called off after the sales committee was pressed to obtain the minimum consent level from owners for a proposed lower price.

Knight Frank, which is marketing the property, said each resident of the 34-year old condo will likely receive S$2.35 million for a S$1453 sq ft unit to S$4.5 million for a 3,369 sq ft penthouse unit.

Singapore premium development sites for sale

A number of high profile development sites have been put up for sale by tenders in Singapore.

The sites include an ultra-prime residential development, Elizabeth Tower, in the Orchard Road area and a Shenton Way commercial property.

Elizabeth Tower off Orchard Road is considered one of the two dozen ultra-prime residential sites in the area and has been put up for collective sale with an asking price of S$630 million (US$509 million).

The development has a land area of more than 54,000 sq ft, with 80 units sized at 2,000 sq ft to above 3,100 sq ft.

Talking to Today, marketing agent Credo Real Estate said Elizabeth Tower would be ideal for a new super-luxurious high-rise condominium.

Residents stand to receive between S$6.3 million (US$5 million) and S$9.7 million (US$ 7.8 million), with penthouse owners pocketing at least S$14.2 million (US$11.5 million) from the sale.

If redeveloped, Elizabeth Tower can become a 132-unit apartment building with an average size of 2,000 sq ft per unit. The tender will close in the afternoon on June 22.

The Shenton Way commercial development site comprises a four-storey podium and a 17-storey office tower with an existing gross floor area of 210,729 sq ft.
It sits on a land area of 19,737 sq ft. DTZ, the marketing agent said that the property could be redeveloped into a 32-storey "commercial and residential" project at a plot ratio of 10.677.

The tender closes on June 23.

KSH Holdings clinches S$78.7m residential contract

Established construction, property development and property management group KSH Holdings Limited has clinched a S$78.7 million contract from Botanica Pte Ltd, a wholly-owned subsidiary of Wheelock Properties, for the construction of the Ardmore Three development.

Under the terms of the contract, KSH will begin construction of the project in June. This will include communal facilities, a swimming pool, basement carparks and other associated works.

“We are pleased to be awarded the Ardmore Three project,” said Mr. Choo Chee Onn, Executive Chairman and Managing Director of KSH Holdings.

“Having successfully built up a portfolio of high-end luxurious residential projects, we have a wealth of experience and expertise that we will tap on in the construction of Ardmore Three. We believe that this contract win serves as a vote of confidence in the high quality of work that KSH is known to deliver.”

Located in Ardmore Park, Singapore's most desirable residential enclave, Ardmore Three is a 36-storey, 84-unit freehold development that offers convenient access to the heart of Orchard Road, while retaining exclusivity, away from the hustle and bustle of the city.

With this new contract, the company’s existing order book now stands at around S$245 million. It also expects its unfulfilled contract value for all existing contracts to be completed by August 2013.

Mr. Choo noted that the company will “continue to maintain a healthy balance of both public and private projects.”

“We do so with the aim of diversifying our portfolio in the construction business, and in turn develop a competitive edge that will allow us to tender for a wide range of projects in both the public and private sectors,” he said.

Roxy-Pacific obtains 100% consent for enbloc at Mackenzie Rd

Specialty property and hospitality group Roxy-Pacific Holdings Ltd has announced that its wholly-owned subsidiary, RL Central Ltd, has obtained 100 percent consent for the collective sale of a freehold site located at 131 Mackenzie Road for approximately S$24.6 million.

“The company is pleased to announce that all the registered subsidiary proprietors of the units holding 100 percent share value had consented to the collective sale of the development,” it said.

The site is zoned for residential development, with a total area of 1,198 sq m and a maximum plot ratio of 2.1.
Roxy-Pacific Holdings had earlier said that the acquisition will be funded through internal resources and bank borrowings.

Two redevelopment sites up for sale

TWO redevelopment sites have been put on the market - Elizabeth Tower and 70 Shenton Way.

A five-member consortium which includes Roxy-Pacific Holdings which bought 70 Shenton Way for $148 million in April last year is now seeking to sell the office block, which has approval for redevelopment into a 60:40 commercial-residential project, at a price said to be around $270 million.

This price works out to $1,583 per square foot per plot ratio (psf ppr) including an estimated $56.72 million for topping up the site's lease to 99 years from the balance term of 58 years and an estimated $6.93 million development charge (DC).

This calculation is based on the new development retaining 70 Shenton Way's existing gross floor area of 210,729 sq ft.

This is the maximum GFA allowed for the redevelopment under provisional permission granted by Urban Redevelopment Authority (URA) on Aug 31 last year and extended till Aug 31, 2011.

However, property consultancy group DTZ, which is marketing 70 Shenton Way's sale through a tender exercise, said that the unit land price could potentially be lowered to $1,534 psf ppr if the successful developer is allowed to tap the maximum 10 per cent bonus gross floor area for balconies for the residential component of the proposed development.

This would entail a higher DC of $11.2 million but a lower lease upgrade premium of $54.9 million (based on the lower unit land price).

Such a scheme would take the potential GFA to 219,158 sq ft inclusive of the 8,429 sq ft bonus balcony allowance.

URA's provisional permission is for a 32-storey project on the 19,736 sq ft site which will include shops on the ground floor.

The proposed project will have mechanical carparking in basement 1, as well as conventional car park lots in a podium carpark on levels two to five.

Above that will be offices, while 135 apartments will be spread across the 24th to 32nd levels. There will be three sky terrace levels - on the sixth, 14th and 23rd floors.

Singapore Land Authority has granted in-principle approval for topping up the site's lease to 99 years, although the amount payable for this has not been made known yet.

Besides Roxy-Pacific, the other members of the consortium which owns 70 Shenton Way are Fission Group, Macly Capital, Pinnacle Assets and architect Chee Hsian Sing. All five hold equal stakes.

The tender for 70 Shenton Way will close on June 23.

Roxy-Pacific executive chairman and CEO Teo Hong Lim told BT that while the consortium had originally planned to redevelop the site itself, it has now decided to try and sell the site through a formal tender process after receiving unsolicited enquiries from property agents keen on finding buyers for the site.

'This will also give us an opportunity to ride on the increase in office capital values over the past year,' he added.

'If the consortium does not get the kind of price we have in mind, we can still proceed to redevelop the property itself,' he added.

Separately, the majority owners of the freehold Elizabeth Tower at Mount Elizabeth off Orchard Road have put their homes up for collective sale with an asking price of $630 million.

The site is zoned for residential use with 2.8 plot ratio and 36-storey maximum height under Master Plan 2008. URA has verified the project's existing GFA reflects an equivalent gross plot ratio of 4.6474.

Based on this, the $630 million price tags works out to $2,496 psf ppr (with no DC payable).

However, the unit land price could potentially be lowered to $2,323 psf ppr assuming the successful developer is allowed to tap the maximum 10 per cent bonus balcony allowance, which would entail an estimated DC of $15 million being payable, according to Credo Real Estate, which is marketing the site.

On both calculations, the breakeven cost for a new project would cross the $3,000 psf mark, say analysts. The tender for Elizabeth Tower closes on June 22.

The $630 million price tag for Elizabeth Towers is lower than the $673 million asking price during the previous collective sale attempt for the property in late 2007.

The last successful large-scale collective sale site sold in District 9 was Westwood Apartments, which transacted at $453 million or $2,525 psf ppr in 2007.

Source: Business Times © Singapore

Luxury homes may see build-up in sales

INTEREST in luxury homes seems to be creeping back, if April's new private home sales figures and reports of a fresh jaw-dropping record sale price are anything to go by.

A unit at SC Global's The Marq on Paterson Hill recently sold for a record-breaking $5,842 per sq ft (psf) - surpassing the previous high of $5,600 psf at The Orchard Residences in October 2007, media reports said yesterday.

This means the 3,003 sq ft four-bedroom apartment was sold at an absolute price of $17.5 million.

The Business Times reported the unit is on the mid- to upper levels of the 24-storey project, but is not a penthouse unit. The freehold project was completed earlier this year.

Last month, 15 non-landed homes priced at $3,000 psf and above were sold - the highest number since December, when more than 60 units of Robinson Suites were sold in this price range, Savills said.

These included units in Alba, Scotts Square, The Orange Grove and Tomlinson Heights.

Experts say these sales might provide early signs of a comeback by high-end homes, whose prices have struggled to recover to levels recorded during the boom in 2007.

However, the high-end segment must be monitored closely for the next few months before any trend can be firmly established, they add.

Kim Eng said in an analyst report that only three ultra-luxury projects - The Ritz-Carlton Residences, The Orchard Residences and The Marq on Paterson Hill - have achieved unit prices of more than $5,000 psf.

'The latest above $5,000 psf transaction will certainly get the attention of high-end developers that are currently holding back on new project launches,' the report added.

'It might well be the tip of the iceberg, as we could see more sales breaking above the $5,000 psf mark.'

However, Cushman & Wakefield Singapore vice-chairman Donald Han noted that while he is confident that the high-end segment will do 'fairly well' for the rest of the year, not all projects can expect to set new benchmark prices.

The record price is likely an exception and limited to certain units and specific developments, he added.

'But Singapore continues to be a sweet spot for investors with its robust economy and political stability... These factors look good to foreigners who contribute to the high-end activity here, making up 60 to 65 per cent of the segment above $3,000 psf,' he added.

Experts also noted that some of the posh apartments sold last month - such as at Nassim Park Residences, The Orchard Residences and The Orange Grove - are already completed.

This could have encouraged sales since buyers of expensive apartments might prefer seeing the finished product before making a purchase decision.

Mr Tan Kok Keong, OrangeTee's head of research and consultancy, said luxury homes are often more valuable when completed.

'Buyers are able to see what they are going to get rather than just buying off a plan,' he added.

Source: The Straits Times © Singapore

Apartment at The Marq fetches $5,842 psf, sets a new price record

(SINGAPORE) A new record has been set for the price of a private residential property in Singapore. Sources say that a four-bedroom apartment at SC Global Developments' The Marq on Paterson Hill recently fetched $5,842 per square foot, surpassing the previous high of $5,600 psf set in October 2007 at The Orchard Residences.

The latest transaction at The Marq also sets a new benchmark for the project, surpassing the $5,262 psf that was achieved in 2007 for a 16th floor unit which was sold for $15.8 million, according to caveats data. Both units are of the same size, 3,003 sq ft.

The latest record breaker at The Marq, which involves a lump sum price of $17.5 million, is understood to be on the mid-to upper levels of the 24-storey project but is not a penthouse unit. The freehold development received Temporary Occupation Permit (TOP) earlier this year and with the latest transaction, slightly over 40 per cent or 28 of the development's 66 units have been sold.

The penthouse unit at The Orchard Residences that held the previous record price of $5,600 psf is on the 53rd level and involved a lump sum price of $28.269 million. However, a caveat for that 5,048 sq ft unit does not appear to have been lodged, probably because the high net worth party who bought the apartment did not take any financing for the purchase and wants to preserve anonymity.

The Orchard Residences, which received Temporary Occupation Permit late last year, is on a site with a 99-year leasehold tenure starting around March 2006.

Pointing to a dearth of condo/apartment transactions above $5,000 psf since the previous property boom in 2007, Jones Lang LaSalle's head of residential and national director Jacqueline Wong attributes this to a lack of new project launches in the ultra-luxury segment, as well as the fact that demand from foreign investors in this segment has yet to recover to the level seen in 2007 because of the current state of the global economy.

'I don't recall any launches at $4,500 psf or higher, post 2007. Right now there are five new projects in the prime Ardmore Park area whose developers could launch them if they chose to - but they haven't,' she added.

Analysts say that developers' strong balance sheets and the difficulty they face in finding replacement land banks in the luxury residential sector at viable prices are some reasons for developers to hold back launches in this market segment.

'If any developer were to launch a new condo at above say $5,000 psf today, demand will likely come from owner occupiers rather than those buying with a view to collecting rental income because the yields won't be attractive,' JLL's Ms Wong said.

Source: Business Times © Singapore

Home sales hot up with 29% April spike

Sales of new private homes (excluding ECs) rose 29% in Apr to a 5-mth high as developers pushed out more projects to ride on the buying momentum amid risk of further policy changes from the govt. Developers sold 1,788 units last mth - the highest mthly volume since 1,915 units were sold in Nov 2010, according to data from the URA. In Mar 2011, 1,386 new private homes were sold. The number of homes launched by developers climbed by 64% to 2,049 units. 'It is the strongest performing mth since Nov 2010, when 2,331 units were launched and 1,915 units sold following a short lull in Sept and Oct after the cooling measures of Aug 2010.

At that time, potential buyers stayed away from the market for a couple of months, only to return optimistically in Nov, pushing up that month's figures,' said Credo Real Estate exec director Ong Teck Hui. 'The question is whether we are seeing a repeat of Nov's phenomenon. After the measures in Jan 2011, we saw a moderation in Feb and Mar and now there is a resurgence in Apr, indicating that more buyers are back in the market.

A sustained uptrend in May will confirm that the market is getting buoyant again.' The govt imposed a seller's stamp duty of up to 16% for private homes in Jan this year, and further cut the LTV ratio for buyers with existing mortgages to 60%. Much of the buying momentum in Apr came from the OCR, where suburban condos are located. URA's data showed that 1,010 homes were sold in the OCR in Apr, up from 631 homes in Mar. The preference for cheaper suburban homes could also be seen in a price band analysis by Colliers International. Some 779 units went for $1,000 psf or less in Apr, which amounted to 44% of all units sold in the mth.

In comparison, just 391 homes were sold for $1,000 psf and under in Mar, making up 28% of all units sold. 2 large projects in the OCR region, Eight Courtyards (from FCL and FEO) and Hedges Park (from Hong Leong Group, City Developments and TID) accounted for 32% of all units sold in Apr.

At Eight Courtyards, 340 units were sold at a median price of $789 psf, while at Hedges Park, 224 units were sold at a median price of $889 psf. At Wing Tai Holdings' 496-unit Foresque Residences at Upper Bukit Timah, around 100 units have been sold at about $1,100-1,300 psf, sources said. Other developments that saw steady sales recently include Hoi Hup Realty's 141-unit The Forester @ Mount Faber, where around 50% of units were sold at an average price of about $2,000 psf; and the 69-unit 10 Shelford from Adam Properties, which saw a take-up of about 60% of units at about $1,800-2,000 psf. Both developments offer a large proportion of small units. Measures in the HDB sector will have an indirect impact on the demand for mass, and to a certain extent, mid market properties, said Citigroup economist Kit Wei Zheng. For now, buyers are likely to adopt a 'wait-and-see' approach, said Colliers' director of research & advisory Chia Siew Chuin.

'They are likely to be more selective and price-sensitive. However, affordably priced projects with good attributes are still expected to enjoy healthy sales.'
- The Business Times
- Also quoted in The Straits Times, "Private home sales surge 29%"

Developers nudged to rightsize shoebox homes

The URA seems to be encouraging developers of shoebox units to increase the size of their apartments. The minimum apartment size that URA is likely to approve these days, especially in projects with many micro apartments, seems to be 35 square metres, up from 28 sq m a couple of years ago, developers told BT recently. Analysts say that promoting an increase in the size of shoebox units may help to cool the property market since these micro apartments have been blamed for fuelling increases in per square foot prices at some property launches. A URA spokeswoman stressed that the planning authority does not stipulate a minimum size for apartments to give developers flexibility to build apartments of varying sizes to cater to home buyers' needs. 


Rather, it adopts a consultative approach, working closely with developers and architects in a negotiated process to enhance the quality of new developments in Singapore. 'When we receive development proposals comprising many small residential units, our immediate concern would be the quality and liveability of the space for home owners as well as the potential impact on the living environment of the neighbourhood and the local traffic situation. In such cases, URA's planners will work with the developers and architects to finetune the design of the development, unit size and unit layout.'Thus far, the revised (minimum) unit sizes are typically in the range of 35-50 sq m gross floor area, excluding features such as bay windows, balconies and air-con ledges.' Where necessary, the applicant and URA may jointly do studies to determine the impact of the development proposal on traffic in the location, she added.The concern is whether the location can handle the additional traffic load arising from an increase in car population if a project with many small apartments is built. This is because the more units a developer packs into a residential development, the higher would be the number of car park lots it has to provide in the project. BT understands that since around Q3 last year, developers planning to build projects with a substantial number of smallish apartments have been given 'verbal advice' by URA that apartments should be no smaller than 35 sq m in gross floor area excluding balconies and air-con ledges. This 'verbal advice' seems to have been issued to developers and their architects when they made enquiries after their applications had been turned down, according to some market players. Industry participants suggest that URA has thus effectively increased the minimum apartment size it would allow, which was previously understood to be 28 sq m (or around 300 square feet), as reported by BT in October 2009. It was reported then that URA had turned down some applications involving apartments below 28 sq m. In that year, the market had seen what was believed to be Singapore's smallest ever apartment - at 258 sq ft - at the Suites@Guillemard.


In URA's response to BT last week, its spokeswoman said that in processing development proposals, it assesses, among other things, the overall building design, site configuration, unit layout as well as the localised traffic situation to ensure that a proposed development involving small units can provide a good living environment for home buyers. 'In general, residential units should be self-contained with basic amenities such as a living area, bedroom, kitchen and bathroom.'  A developer estimates that an apartment with gross floor area of 35 sq m (excluding balcony and air-con ledge) may have saleable area of about 40.5 sq m (about 436 sq ft) including the balcony and air-con ledge. He reckons that URA is more likely to be stringent about ensuring that apartment sizes are not too small for projects with a large proportion of one bedders and one-bedroom-plus study units. 'But if the one bedders make up a relatively small proportion of units in a large development, which also has bigger units like two, three and four-bedroom apartments, URA's planners may allow a few units even if they're under 35 sq m. A lot will also depend on the layout of these units,' said the developer. UOL Group president (property) Liam Wee Sin, said: 'Ultimately, what is important is that buyers are made fully aware of the size of apartments they're purchasing and the new requirement for showflats to accurately reflect the actual size and layout of the units will help in this aspect.' Another developer who declined to be named said that URA's approach to encourage bigger units may have an impact on developers who specialise in shoebox apartments. 'Very often they have been able to achieve relatively high psf prices on these small apartments since they've been able to keep the lumpsum price affordable, at below $500,000. They can price say a 320 sq ft unit at around $1,400 psf and it would cost $448,000. If they now charge the same psf price rate for say a 435 sq ft, the absolute price would be $609,000.' DTZ executive director Ong Choon Fah suggests that the completion of some of these shoebox developments over the past year or so may have called into question the practicality of living in these small spaces and highlighted the impact of this housing type on the lives of residents and social fabric in the neighbourhood.

-  The Business Times, P1

Vicland Realty buys Haig Mansions for S$21.5m

The 16-unit Haig Mansions has been sold to Vicland Realty for S$21.5 million through an en bloc sale exercise.

This translates to a land rate of about S$720 psf ppr at a gross plot ratio (GPR) of 1.54, including the 10 percent gross floor area (GFA) for balconies.

With a land area of 20,226 sq ft, the freehold site is zoned “residential” with a GPR of 1.4 and a permissible height of up to five storeys.

“The site has been well received by the market due to its regular land shape, popular location in District 15 and healthy take-up rates in the new projects in the vicinity,” said Yong Choon Fah, Executive Director of Credo Real Estate.

“Haig Mansions has an added advantage of being close to a new growth area — Paya Lebar Central, which has been earmarked by the government to be developed into a bustling commercial hub with offices, retail, hotel and public spaces.”

Following the successful collective sale, each of the owners will get gross sale proceeds of more than S$1.3 million. If necessary, the sale will be subject to the approval of the Strata Titles Board.



Source By - Propertyguru.com

Aspial Corp buys residential site at Bassein Road for $41.1m

Aspial Corporation has submitted an offer through its subsidiary World Class Land to purchase Chong Kim Apartment at 8 Bassein Road for S$41.1 million. The apt was offered for sale by tender on May 12. Aspial says the offer has been accepted. The freehold Chong Kim Apartment has a land area of 1,426.9 sq m and is zoned for residential use. It has a plot ratio of 2.8 and can be developed to a 36-storey property. Subject to the approval of authorities, Aspial says it intends to purchase an adjoining plot of state land sized at 150 sq m. Aspial plans to develop a 110-unit apt project on the combined land area. The site is in the prime D11 and is walking distance away from Novena MRT station, as well as shopping amenities Velocity @ Novena Square, Square 2, United Square and numerous medical facilities. The acquisition and development will be funded internally and through bank loans, says Aspial. It says the transaction is not expected to have any material impact and net tangible assets on the company for this financial year.
- Channel News Asia posted 13 May 2011 2131 hrs

Property boom helps lift CDL gains by 78%

THE property boom and the huge sales it has generated sent first-quarter net profits up 78 per cent to $282 million at City Developments (CDL).

Revenue was up 10 per cent to $774 million for the three months to March 31, thanks to contributions from such projects as Livia, NV Residences, Volari and One Shenton.

CDL noted that sales take-up in central regions has moderated but demand in suburban areas remains healthy. 'While there is unlikely to be any significant fluctuations in sales launch prices, projects located at areas earmarked as future growth areas as well as those near existing or future MRT/LRT stations are expected to continued to attract buyers, with the right pricing,' it said.

CDL also said the sales committee of Tanglin Shopping Centre, of which its hotel arm Millennium & Copthorne Hotels has a 34 per cent interest, is considering a second collective sale tender. But no date has been fixed.

Earnings per share rose to 31.1 cents from 17.4 cents in the same period last year, while net asset value per share was $7.19 as of March 31, up from $6.89 cents as of Dec 31.

CDL shares closed two cents higher at $11.60 yesterday.


Source: The Straits Times © Singapore

Pasir Ris leasehold condo site gets only three bids

A STATE tender for a 99-year leasehold private condo site at Pasir Ris Drive 4, close to Pasir Ris Park/beach and Downtown East, drew just three bids yesterday. The top bid, from Hongkong Land unit MCL Land, was $246.1 million or $402.41 per square foot per plot ratio (psf ppr) - 5.2 per cent higher than the next highest offer by Robert Kuok's Singapore property arm, Allgreen Properties.

The only other bidder at yesterday's tender was a joint venture among Frasers Centrepoint, Far East Organization and China Construction (South Pacific) Development which bid $360 psf ppr - slightly ahead of the $335 psf ppr that an earlier tie-up between Far East and Frasers Centrepoint paid for the next-door 99-year private condo site at a tender in September last year. The duo is expected to preview their project, The Seastrand, within the next couple of months. It will have 473 apartments - one to four-bedroom units - in 11 and 12-storey blocks.

Giving his take on yesterday's tender, Credo Real Estate executive director Ong Teck Hui described the interest level as 'rather subdued' but added that it did not signal any major change in market reading. Rather, the latest tender outcome was partly a case of 'an average site commanding lower interest' - compared with some of the more hotly contested 99-year private residential sites at state tenders this year, he added.

Last September's tender for the next-door Seastrand site too had drawn just four bids, he noted. As well, the potential competition from the impending preview of The Seastrand may have affected interest and bidding at yesterday's tender, he reckons.

CB Richard Ellis executive director Li Hiaw Ho said that the government's upcoming review of the monthly household income ceiling for buyers of new public housing flats may impact demand for mass-market private homes.

He estimates that MCL could break even at about $750 psf. 'Units in this new project will be able to fetch above $800 psf on the average. Based on caveats lodged between February and April 2011, units in NV Residences at Pasir Ris Drive 1 were sold at $800-$890 psf and Oasis @ Elias along Elias Road at $680-$830 psf.'

MCL chief executive Koh Teck Chuan said that the plot could yield about 580 units averaging 1,000 sq ft. However, MCL's proposed scheme is likely to have a higher number of units, roughly half of which will comprise one and two-bedders; and 30 per cent, three-bedders. The rest will be four-bedders and penthouses.

He also said that MCL is getting ready to preview a 99-year leasehold condo at Hougang Avenue 2/Yio Chu Kang Road next weekend. The five-storey project, named Terrasse, will comprise 414 units - including one to four-bedroom apartments, five-bedroom penthouses and 15 garden duplex units (spread over the ground and basement levels). The average price is likely to be $950-1,000 psf, Mr Koh said.

Separately, URA has accepted an application from an unnamed developer seeking the release from the reserve list of a 45-year leasehold industrial site in Tuas View Square. The party has committed to bid at least $4.89 million, which works out to $115.95 psf ppr. The plot is zoned for Business 2 use. URA will launch the tender for this site in about two weeks.


Source: Business Times © Singapore

Marine Parade Rd freehold site up for sale

(SINGAPORE) A 47,400 square foot freehold site on Marine Parade Road (near Parkway Parade), which includes a conservation bungalow built 113 years ago, has been put up for sale by tender with a price expectation of about $100-110 million.

This works out to $1,164-1,262 per sq ft of potential gross floor area inclusive of an estimated $19.5 million development charge (DC), assuming the new project has a gross floor area (GFA) of 102,648 sq ft.

The GFA is based on the 2.1 plot ratio allocated for the site under Master Plan 2008, plus a bonus GFA of 3,108 sq ft equivalent to the conserved bungalow's GFA accorded under guidelines set by the Urban Redevelopment Authority; this is subject to payment of DC if applicable, explains Karamjit Singh, managing director of Credo Real Estate, which is marketing the property.

The site can yield a new condo with about 98 units averaging 1,000 sq ft each. The conservation bungalow may be used as a clubhouse in the project, in the fashion of Draycott 8, Grand Duchess at St Patrick's and The Sea View. Alternatively, the conservation bungalow could be sold as a strata unit.

The bungalow was built in 1898 by Choa Kim Keat, after whom Kim Keat Road in Balestier is named. Mr Choa is understood to have been a compradore (or a go-between) at Straits Trading Company. The imposing villa was Mr Choa's weekend retreat by the sea, long before much of Marine Parade was reclaimed.

In the early days, until around 1970, Marine Parade was a stretch of sandy beaches, lined with grand old bungalows surrounded by lush gardens and coconut palms. The bungalow was formerly known as Sea Breeze Lodge.

Up for sale are No 37 Marine Parade - where the conservation bungalow stands - and 42 A/B/C/D/E/F East Coast Road - a three-storey block of six apartments and servants' quarters. The two adjoining plots have a total land area of 47,400 sq ft and are being put up for sale by the estate of the late Eric Choa, who was a lawyer and the grandson of Mr Choa Kim Keat. Mr Eric Choa died in 2009.

The bungalow was occupied by the Choa family, except for a few years during World War II when it was used to house Japanese officers during the occupation of Singapore.

'According to Mr Victor Choa, Mr Eric Choa's son, his parents moved back into the bungalow after the war in 1946, where they lived until 2010,' said Mr Singh.
The family has a long and rich history in Singapore, dating back to the early 1800s. Many of Singapore's familiar roads and landmarks have been named after them.

'Mr Choa Kim Keat married the grand-daughter of the late Mr Tan Tock Seng, who was a merchant and respected philanthropist after whom Tan Tock Seng Hospital was named. Mr Eric Choa's wife, Madam Hoo Yan Meng, was the great granddaughter of noted Chinese businessman Mr Hoo Ah Kay, who was also known as Whampoa,' said Mr Singh. 'The 113-year-old single-storey bungalow was identified for conservation by URA in 2009 much to the delight of the descendants of Mr Choa.'

The tender for the property closes on June 6.
In a separate transaction, Spring Court and the adjoining Spring Mansion in the Balestier area were sold last month for a combined $74 million under a collective sale. The price works out to $794 per sq ft of potential gross floor area excluding DC, which is payable subject to URA's approval of the proposed new development for the site, according to Strata AMC, the property agency which brokered the sale.

The two properties are on the same freehold plot of 32,593 sq ft. However, they have different zonings under Master Plan 2008. One is zoned for commercial and residential use with a 3.0 plot ratio (ratio of maximum GFA to land area), while the other is zoned for residential use with 2.8 plot ratio.

The buyer of Spring Court and Spring Mansions is a consortium comprising Nobel Design Holdings, 2E Capital and Lian Huat Group.

Rodyk & Davidson are the lawyers who acted for the buyer.

The deal is conditional upon approval from the Strata Titles Board or the High Court or Court of Appeal as the case may be.

Source: Business Times © Singapor

Higher income ceiling for new HDB flats good news for first-time buyers

A higher income ceiling to qualify for new HDB flats will be good news for 1st-time home buyers. This is according to ppty analysts who said that the move will also benefit the sandwiched class most. Early this week, National Development Minister Mah Bow Tan hinted that the income ceiling for new BTO flats could be raised to S$10,000 after the GE. Analysts have welcomed the plans to raise the income ceiling for new HDB flats which has been S$8,000. Should the new income ceiling be in place, 1st-time home buyers who earn over S$8,000 but less than S$10,000 will be allowed to book BTO flats. At the moment, they can only buy flats under the DBSS, ECs, from the resale market and also buy private apts. BTO flats, which are between S$300,000 and about S$500,000, are said to be the most affordable housing in S’pore. Their prices are lower compared to DBSS flats - ranging from S$500,000 to S$750,000 - and ECs - at between S$750,000 and S$950,000. Analysts said the higher income ceiling for new flats is not likely to have a significant impact on the overall ppty market, given that the sandwiched class is only a small part of the ppty market. But some said the resale HDB market could still be marginally hit.

Some analysts said they do not see any immediate impact of the move on the ppty prices in the HDB resale market, saying that there is an 8-year gap before any of the BTO flats become eligible for resale. This year, the HDB is looking to build around 22,000 flats under the BTO scheme - the largest supply in recent years. National Development Minister Mah had said that the review of the income ceiling is likely to be conducted after the GE and will be completed within 6 months.


Source By - CNA posted May 8, 2011

Cooling measures impact Singaporeans’ home-buying

A quick online poll by iProperty.com shows that more than half of 104 respondents in Singapore favoured a housing policy that would involve lowering prices for new flats and a re-evaluation of asset enhancement policies.

29 percent supported the idea that permanent residents should be required a longer minimum occupation period of eight years in order to give more priority to Singaporeans.

19 percent, however, believed that Singapore homes are within means and of good quality in comparison to cost.

The poll was conducted over a one-week period from 28 April 2011 to gauge public response to the government's measures to cool the nation's property market.

Also, iProperty.com's Consumer Property Sentiments Survey 2011 had the following results:

1. 59.2 percent of survey respondents say that they are affected by the cooling measures, and are either modifying their property buying/selling/renting decisions accordingly, or are halting plans to buy/sell their properties at this current moment.

2. 58.4 percent of survey respondents either do not think or are undecided whether the measures will succeed in cooling Singapore's red-hot property market.

3. 58.7 percent of survey respondents do not think that these measures are sufficient to stabilisepublic housing prices and stated their hopes for more to be done to improve the situation.

Over 470 respondents comprising Singaporeans, permanent residents and expatriates took part in the online survey from 27 Dec 2010 to 25 February 2011. The majority of survey respondents fell between the age group of 25 to 54 years, with 71.5 percent earning an annual household income of S$140,000 and below.Most of them are currently living in HDB flats, private apartments and landed property, of which more than half currently have plans to purchase/rent their next property.

Shaun Di Gregorio, chief executive officer of The iProperty.com Group, said of the results of the survey, "Housing policies and other property-related issues are arguably one of the key buzz topics of the upcoming General Elections. From this survey, there are indications that Singapore home buyers are looking forward to additional measures to bring about significant changes in the policies governing the local property market so as to further cement their decision-making process."

For the most authoritative and comprehensive listing of properties for sale or rent, go towww.iProperty.com.sg
For more property news, real estate reports and celebrity home features, head towww.iproperty.com.sg/resources