Echelon to commence sales this week

The much-anticipated Echelon condominium project (pictured) by City Developments Limited (CDL) will commence sales later this week, reported The Business Times.

Located along Alexandra Road, the 43-storey 99-year leasehold development will reportedly sell units at an average price of “S$1,700 psf plus”, said sources. The report added that about 30 to 50 percent of the 508 units will be released on Friday.

Units available range from studios to four-bedroom units and penthouses. Designed by SCDA, the condo is sited next to Redhill MRT station and is being jointly developed with Hong Leong Group’s Intrepid Investments and Hong Realty’s Garden Estates.

The site was awarded at a tendered price of S$396 million, or S$754 psf ppr. Interestingly, the tender was closed a day before the government introduced the additional buyer’s stamp duty (ABSD) last year in a bid to cool the property market.

CDL’s bid was considered ill-timed following the ABSD announcement. The land price was also nine percent higher than the second top bid. Nevertheless, market sentiment began to improve with record home sales and strong land bids within the area, the report noted. 

Meanwhile, CBRE and Huttons have been appointed marketing agents for Echelon.

Far East caps successful year

Singapore developer Far East Organization is offering a festive promotion for units in some of its most popular developments. 

“This year we have brought several new lifestyle concepts to the residential market including a range of SOHO-lifestyle offerings, and integrated residential developments in Singapore’s rising trans-urban centres that offer a range of units for different lifestyles within the same community,” said Chia Boon Kuah, COO for Property Sales at Far East. 

The festive promotion caps a good year as most projects were well-received. Starting today till 3 January 2013, discounts ranging from two to three percent will apply to developments including Watertown (pictured), The Hillier, Hillsta, SeaHill and eCO.

The offer also applies to exclusive penthouse apartments in developments like Silversea (East Coast) and Cyan (Bukit Timah Road), and some limited edition townhouses in private estates.

Dynasty REIT: S$1b target for S’pore’s first yuan IPO

Dynasty Real Estate Investment Trust (REIT) opens its yuan-denominated initial public offering today in Singapore’s first flotation to be sold in the Chinese currency, seeking to raise up to 5.4 billion yuan or S$1 billion in what is set to be the largest new share sale here this year.

Units in the trust, backed by Hong Kong billionaire Li Ka-shing and sponsored by ARA Asset Management, will be tradeable in both yuan and Singapore dollars.

It is offering between 893.2 million and 900.8 million units to public and institutional investors at an indicative price range of 4.40 to 4.70 yuan apiece, or S$0.855 to S$0.915, it said in a statement yesterday. At least 53.9 million units will be set aside for retail investors in Singapore, it added.

The trust has also secured two cornerstone investors: Credit Suisse and Amundi, an asset management joint venture between Credit Agricole and Societe Generale. Together they will subscribe to between 246.9 million and 254.6 million units, the final number depending on the IPO price.

Including the sponsor’s investment of between 109.3 million and 117 million units, the total number of issued units is expected to be 1.15 billion units upon completion of the offering.

Dynasty REIT intends to distribute 100 per cent of its distributable income to unit holders from the date of listing to the end of next year. This translates to a yield of between 7 and 7.3 per cent for next year. The Dynasty REIT IPO will be the second denominated in yuan outside mainland China.

Mr Li, Asia’s richest man, and real estate fund manager ARA were also involved in the first – last year’s US$1.6 billion (S$1.9 billion) offering in Hong Kong of Hui Xian REIT, which has stakes in Beijing office properties.

If successful, Dynasty REIT’s IPO will surpass the S$717.6 million flotation by Far East Hospitality Trust in August to become the largest in Singapore in the year to date.

The proceeds will be used for the acquisition of the special purpose vehicle owning the properties including debt repayment, working capital and other transaction costs.

Dynasty REIT’s initial portfolio comprises Nanjing International Finance Center, Dalian Tianxing Roosevelt Center, and Shanghai International Capital Plaza – three commercial properties valued at about 7.7 billion yuan. Dynasty REIT will close its IPO on Oct 24 ahead of an Oct 30 listing on SGX.

Strong line-up for MIPIM Asia

MIPIM Asia, the world's property market in Asia Pacific, is set to bring together the best of the best in the Asia Pacific real estate arena next month in Hong Kong.

Organised by Reed MIDEM, a division of Reed Exhibitions, MIPIM Asia will take place on November 7-9, and showcase projects by hundreds of exhibiting companies.

The Honourable C Y Leung, Chief Executive of the Hong Kong Special Administrative Region, is the Guest of Honour and will deliver the welcome keynote speech at the official opening ceremony of the 7th edition of MIPIM Asia on November 7, at the Hong Kong Convention and Exhibition Centre.

"MIPIM Asia Sustainable Property Expo provides an interesting outlook into how Asia is forging ahead on green building and responsible development. The wide range of exhibitors represents key activities on the local and regional market, from investors, developers and property managers to architects, planners and public authorities, and new this year, to retail real estate actors and retailers," explained Filippo Rean, Director of MIPIM & MIPIM Asia.

MIPIM Asia will feature pavilions for key territories in Asia Pacific. The Hong Kong government will showcase their latest urban regeneration initiatives led by the Development Bureau. Taiwan and the Philippines will both present their investment opportunities in tourism respectively with the Architectural Aesthetics Cultural Economy Association and the Tourism Infrastructure & Enterprise Zone Authority.

Malaysia will be present with Malaysia Property Inc., a Government initiative which acts as a bridge between institutional, corporate and private investors, along with three other exhibiting companies: Sime Darby Property Berhad, UEM Land Berhad and EMKAY Group. South Korea will actively participate with the Ministry of Culture, Sports and Tourism and the Investment Policy Bureau of Jeollanam-Do Provincial Government. Japan will feature the investment activities of Mitsubishi Corporation among the various companies being presented.

China confirms its inescapable place in the Asian market, with a growing number of exhibitors from all business fields. A number of key shopping centre developers such as Treasury China Trust, Taubman, Chongbang Group, CapitaMalls Asia and Inter-IKEA will be promoting their latest shopping centre projects. The city of Chongqing will be strongly engaged at MIPIM Asia with the China Council for the Promotion of International Trade, and Tianjin Innovative Finance Investment Co. Ltd, which will promote the Yujiapu project in the city's financial district.

The field of architecture is well represented at MIPIM Asia this year, with the showcase of major development projects, such as Northstar Xin He Delta Mixed-Use in Changsha, China, designed by the Jerde Partnership, which has been selected as a MIPIM Asia Awards finalist for the "Best Chinese Futura Mega Project" category. Benoy will present on its stand three shortlisted award projects: the newly opened Hysan Place in Causeway Bay, Hong Kong, the retail and leisure Central Plaza Rama 9 in Bangkok, Thailand, and Parc 66 in Jinan, China.

Other showcased projects include the recently completed mixed-use Indigo development in Beijing and the company's first Korean development opening with Seoul IFC Mall. This year, Benoy will take the opportunity at the MIPIM Asia opening cocktail to celebrate with the industry its 10th year of presence in Hong Kong and Asia, its 65th year of existence and its 20th year with Graham Cartledge CBE as Chairman.

As to Kohn Pederson Fox Associates, their showcase will feature four developments: the Hong Kong International Commerce Centre in Kowloon, the Shanghai Wheelock Square shopping centre in Puxi, the Xintiandi Hotels in the Taipingqiao District of Shanghai, as well as the International Airport Midfield Complex in Abu Dhabi. New regional players will also appear on the MIPIM Asia exhibition floor, with the Shanghai office of international consultancy Sparks Architects and WSP Architects from Beijing.

As part of the new three-in-one MIPIM Asia which this year combines the Sustainable Property Expo with an Investment Summit and a Retail Summit, a new exhibition zone called "Retail Village" will present retail expansion strategies throughout the Asian market, with trend-setters like Desigual, Devanlay and Subway. The 200 retailers expected at MIPIM Asia next November will be able to connect with shopping centre developers also present in this zone, such as Capital Mall Singapore or Taubman US.

Katong site up for collective sale

Katong Park Towers (pictured), a 30-year-old 118-unit condominium in the Mountbatten area is up for collective sale at around S$330 million to S$340 million, according to sole marketing agent DTZ.

This works out to between S$1,145 and S$1,178 psf ppr, including 10 percent of balcony space. The site could be developed into a 24-storey condo with a maximum gross floor area (GFA) of approximately 27,462 sq m, reported The Straits Times. 

Moreover, the developer can build up to 392 units, assuming that an average apartment is around 753 sq ft in size. 

Shaun Poh, Senior Director for Investment Advisory Services and Auction at DTZ said there has not been a “sizeable plot of residential land in the Meyer/Arthur Road area for a while”.

As such, the property offers “a rare opportunity for developers who are seeking prime residential redevelopment sites in the established District 15 location”. 

“The regular configuration of the site also allows the developer to maximise building efficiency and provides design flexibility for an iconic residential development,” said Poh, adding that the new development will appeal to both locals and foreigners. 

Katong Park Towers is also within close proximity to notable schools, Parkway Parade, 112 Katong, East Coast Park and the upcoming Sports Hub in Kallang.

The collective sale will close on 6 November.

Govt tightens housing loan rules

The Monetary Authority of Singapore (MAS) has capped the tenure for all new residential property loans at 35 years and imposed strict loan-to-value (LTV) limits for loans exceeding 30 years.

In effect since 6 October, the new rules apply to all home loans for HDB flats and private properties. The move is in line with the government’s aim to ensure long-term stability and prevent a price bubble in the property market.

The rules also apply to refinances as well as loans taken out by individual and non-individual borrowers. MAS has also lowered the LTV ratio on new home loans for individual borrowers whose tenures surpass 30 years, or extend beyond the retirement age of 65 years.

Under such circumstances, the maximum LTV ratio for an individual borrower with one or more outstanding loans is 40 percent; while for an individual borrower with no outstanding loan, it stands at 60 percent.

In addition, MAS slashed the LTV ratio for loans to non-individual borrowers from 50 to 40 percent.

Meanwhile, the Real Estate Developers’ Association of Singapore (REDAS) said: “Based on past experience, not many buyers take long tenure loans. REDAS is of the view that the new cap limit will not have significant impact on the property market.”

Finance Minister and MAS Chairman Tharman Shanmugaratnam said: “Monetary conditions worldwide are far from normal. QE3 and low interest rates have made credit easy, but this will eventually change.”

“We are taking this step now to require more prudent lending, and will continue to watch the property market carefully. We will do what it takes to cool the market, and avoid a bubble that will eventually hurt borrowers and destabilise our financial system,” he added.

Exec condo oversupply looming

Following the government’s increased supply of new executive condominium (EC) sites, the market could see an oversupply situation, reported The Business Times.

Between the first half of 2010 and second half of 2012, 25 EC sites were released under the confirmed and reserve lists through the Government Land Sales (GLS) programme. This year, 11 sites were placed on the confirmed list but one site was moved from the reserve list in 1H2012 to the confirmed list in 2H2012. The site at Upper Serangoon View is being developed into Heron Bay (pictured).

Of the remaining 10 EC sites, five have been sold and are waiting to be launched, while the other five are either waiting for the tender period to close or have not yet been put up for sale under the GLS programme.

The 10 sites are expected to yield around 5,600 units by 2013, translating to an average annual supply of 4,500 units, said Ong Teck Hui, National Director for Research and Consultancy at Jones Lang LaSalle (JLL).

In comparison, the average annual supply over the past two years was about 3,600 units, while average take-up stands at 3,300.

“Viewed from this perspective, the oncoming supply is at a faster rate than the past. Assuming demand remains stable, the projects being marketed would face greater competition,” Ong said.

“It’s likely to be more of a buyer’s market given the wide range of projects coming on stream with the possibility of prices being more competitive.”

Govt releases 3 sites to yield 1375 homes

The government has released three residential sites that could yield around 1,375 homes providing more choices for home buyers, according to the Urban Redevelopment Authority (URA) and Housing and Development Board (HDB). 

Launched for sale under the confirmed list, two sites slated for executive condominium (EC) developments will be located at Sengkang West Way / Fernvale Link (Parcel B) and Pasir Ris Drive 3 / Pasir Ris Rise. The other site at Alexandra View (Parcel B) was made available under the reserve list. 

With a land area of 14,100.8 sq m and offered under a 99-year lease term, the site at Sengkang could accommodate around 420 ECs. 
 
It enjoys close proximity to Layar LRT station and the upcoming Seletar Mall, as well as to dining, shopping and educational amenities. 

“More activities are expected in this area over the next one to two years upon completion of the nearby HDB estates, H20 Residences and other facilities,” said Png Poh Soon, Head of Research at Knight Frank Singapore.

He expects around five to seven bidders for the site with a top bid of around S$295 to S$310 psf ppr which could translate to a selling price of between S$720 and S$750 psf. 

The site’s tender will close on 8 November. 

Meanwhile, the other 99-year leasehold site in Pasir Ris is 27,660 sq m and could yield 580 ECs. 

The site is served by an efficient transport network and is within walking distance to Pasir Ris MRT station and Pasir Ris Bus Interchange. It is also close to schools and lifestyle offerings. 

Available for sale until 22 November, the site and could draw “cautious bids” of between five to seven bidders with a winning bid of between S$295 to S$305 psf ppr and an expected selling price of S$740 to S$750 psf, said Png. 

As for the 99-year leasehold site at Alexandra View, it has a land area of 6,501.5 sq m. It could house up to 375 dwelling units and is close to the CBD, Marina Bay and Orchard Road and is accessible via the nearby Redhill MRT station. 

Png expects bids for the plot “to be competitive as developers seek well-located sites in the central region”. 

There will likely be four to six bidders with an expected winning bid of S$900 to S$930 psf ppr, while the expected selling price will range between S$1,680 and S$1,750 psf. 

Heron Bay one of most popular ECs in recent times

A total of 1,664 e-applications were lodged for 394 units at Heron Bay (pictured) in just one week, according to The Business Times. 

Located at Upper Serangoon View, the executive condominium (EC) project now has one of the highest subscription rates in the last few years, with 4.2 applications for each unit. 

Its appeal lies mainly in the luxury features, said Vincent Ong, Managing Partner of Evia Real Estate Management, one of the developers. 

Among the EC’s lavish features are European household appliances, a basement car park, hydroactivated swimming pool, and free fibre broadband service for a year. There’s also an upcoming sea sports recreational centre with kayaks and tandem bikes.

Some ground floor units come with the choice of a garden pond or Jacuzzi pool of up to six-metres long. 

Units were selling from S$715 to S$720 psf on average. The smallest unit (775 sq ft) is priced at around S$560,000, while the five-bedroom penthouse (2,841 sq ft) is believed to cost between S$1.5 million and S$1.6 million. 

Meanwhile, applicants included young couples and multi-generational families who prefer bigger penthouse units. Notably, Heron Bay’s five-room penthouses are the first in an EC. 

Scheduled for completion in 2016, the EC is being jointly developed by Ho Lee Group, CNH Investment, See Hup Seng and Evia. 

Balloting for units will take place after about two weeks and successful applicants could book them starting 26 October.

Pinnacle@Duxton residents won't sell, even for S$3 million

With all the news of resale HDB flats being sold at record prices, the majority of homeowners at Pinnacle@Duxton (pictured) have come forward to say they’re reluctant to sell their units, The New Paper reported. 

Eight out of 10 residents said they are unwilling to sell. Similar sentiments were also expressed by residents living near the top floor.

For instance, C.M. Foo, a resident on the 49th floor, said she would not sell her flat for S$1 million, or even S$3 million, because of the view available from the unit.

She and her husband, Foo Soo Lim, acquired the five-room flat in 2004 for S$450,000. The unit is on the highest residential level of the building and there is a sky garden on the 50th floor.

However, unit owners could change their mind come 2014 when the five-year Minimum Occupation Period (MOP) expires.

Units at Pinnacle@Duxton could reach record-level prices since it is the first 50-storey project in Singapore. It comprises 1,848 units spread over seven blocks.

Even National Development Minister Khaw Boon Wan said that there would be “many millionaires” when the flats at Pinnacle@Duxton enter the resale market.

Foreign home buying sees slight increase in Q2

The number of expatriates, including non-permanent residents (NPRs) and permanent residents (PRs) buying private properties in Singapore, inched up to 22 percent in the second quarter of this year from 21 percent previously, Knight Frank said. 

However, this figure is substantially lower than last year’s level when foreigners accounted for 31 percent of overall transaction volumes. This sharp decline is mainly attributed to rising macroeconomic uncertainties and the introduction of the additional buyer’s stamp duty (ABSD).

Meanwhile, the proportion of Chinese home buyers fell to 19 percent in Q2 from 23 percent in Q1. Notably, the total number of buyers from China slumped by 50 percent to 361 in Q2 from 738 in the same period last year.

On the other hand, Malaysians remain the leading buyers of Singapore homes accounting for 26 percent of overseas transactions in Q2, with cultural similarities and geographical proximity being key factors.

Singapore Properties Price Will Remaind High?

Laterly people have been asking me if Singapore properties prices will remain high? And my answer to them is YES!!!

Why do i say so???

As many of you may have notice recently what, Bernanke had announced..

He said that interest rate confirm Sibor maintain very low to zero % until mid 2015...

The possibility of a fresh wave of capital flows into Singapore as a result of the latest round of quantitative easing (QE3) in the United States has raised the prospect that the property market could heat up again

The Federal Reserve's decision to pump US$40 billion into the US economy each month until sustained jobs growth kicks in.

An influx of foreign funds into the property market thats means they will be still lots of moneys thats flowing in the market. Clearly Singapore is one of the destination people look to as a safe heaven to park their money.

Development In Singapore

Singapore goverment is still carry on to develop Singapore into a country for people to work, live and place.

Opening of IRs, Gardens By The Bay, F1 Nite Race etc...

Up and coming,Seletar Aerospace Park thats going to create thousands of new jobs here. As more and more people are still coming into Singapore. They will sure need a place to stay... Demand is high and supply is low.. Do you think that the price will drop?

Real estate is all about demand and supply in the market..


This posting is just my own personal point of view..

Legoland opens in Malaysia

Thousands of visitors flooded through the gates of Legoland Malaysia (pictured) on its opening day this past Saturday.

According to an AsiaOne report, some 10,000 people attended the launch of the 76-acre theme park in Johor, the first of its kind in Asia. They were welcomed by costumed characters and a performance by a marching brass band from Denmark.

Located within the Iskandar Malaysia economic zone, the attraction is the sixth Legoland in the world, along with those in Denmark, Britain, Germany, and California and Florida (US).

Legoland Malaysia offers various rides for children up to 12-years old and family attractions such as the “4D Lego Studios” and “Miniland” – which has miniatures of Asian landmarks like Singapore’s Merlion.

Approximately 15 million Lego bricks were used to create 15,000 Lego models. The theme park is divided into seven zones, including “Lego Kingdom”, “Lego Technic” and “Lego City”.

“It's incredible to see Asia's first Legoland Park come to life,” said John Jakobsen, Managing Director at Legoland Parks for Merlin Entertainments, the operator of Legoland Malaysia.

He added that up to two million visitors are expected annually, mostly from Asia.

Visitors to the park were full of praise. Jason Ng from Singapore said: “Everything looks so colourful and the designs make me want to come back again soon.”

Nur Sakina Jamaludin, also from Singapore, added: “It’s not just an attraction for kids. There are many activities for the adults too…in short, it’s for everybody.”

Meanwhile, Siegfried Boerst, General Manager at Legoland Malaysia, said the smiles and laughter from guests are the reason they built the theme park, adding that they chose Johor “because we are confident about Iskandar Malaysia's economic development”.

Suspension of land sales for DBSS to continue

This follows the suspension of the DBSS land sales a year ago.

The DBSS was introduced in 2005 to give flat buyers more choices by allowing private developers to design and build some public flats.

The priority is to ramp up the supply of Build-To-Order flats and Executive Condominium units.

Mr Khaw was responding to a question by Member of Parliament (MP) Ang Hin Kee on whether MND has completed the review and if the review looks into how it will impact owners of DBSS flats.

Mr Khaw also spoke on HDB’s role. While HDB provides broad planning parameters such as the mix of flat sizes and range of social and community facilities, the developer is responsible for the design, construction quality and the pricing of the flat.

Nonetheless, HDB would actively engage the developers by sharing good practices and relevant experiences in public housing development.

HDB would also provide feedback to the developers and their consultants during both the design and the construction phase, with particular attention on safety, security and maintenance issues.

DBSS flats are sold directly by private developers to flat buyers, and any resolution of contractual disputes, including defects, rests with the buyer and developer.

But Mr Khaw said the government can play a role to help them, counsel them and advice them to resolve the conflicts. Whether the government can play a mediating role, it depends on what is the specific issue involved.

Responding to a Parliamentary question, Minister Khaw Boon Wan said that the Ministry of National Development (MND) is not rushing to complete the review of the Design, Build and Sell Scheme (DBSS) for HDB flats.

He said, “But at the end of the day, I think that we must be mindful that it is a contractual obligation between the buyer and seller. But we can advice the residents, perhaps together with the local MP, to see what the problem is and whether there are ways to resolve some of the issues.”

Singapore no longer low-cost business location

With business costs have generally increasing, Singapore is no longer a low-cost business location as the government recognised.

Trade and Industry Minister Lim Hng Kiang said this in a written reply to MP for Ang Mo Kio GRC, Inderjit Singh.

Mr Singh asked if Mr Lim could provide data on the changes in labour and rental costs, and whether the increasing costs would make it difficult for Small and Medium-sized Enterprises (SMEs) to remain viable in the Singapore economy.

Between 2007 and 2011, nominal average monthly earnings raised at a compound annual growth rate of 3.5 per cent.

Rentals of factory space also increased at a compound annual growth rate of 7.3 per cent.

Unit labour costs for the overall economy went up at a compound annual growth rate of 1.5 per cent, but dipped 2.9 per cent in the manufacturing sector.

Firms have coped well with increasing costs through restructuring and improving productivity and assured that the government has in place broad-based and sector-specific programmes to help businesses remain competitive, said Mr Lim.

This is done through upgrading their capabilities and improving productivity, which will help moderate costs.

Mr Lim added that SMEs which restructure by moving up the value chain and upping productivity will remain viable in the Singapore economy.

Allowing singles to buy new flats will help cool resale market: analysts

Plans are under way to allow singles to buy new flats directly from the HDB in the future.

Some analysts estimate that if the new policy is implemented, half the number of singles buyers in the resale flat market will move to Build-To-Order (BTO) flats.

Analysts say this will cool the resale flat market, but only in two or three years’ time when the BTO flats are completed.

Latest data from local property firm PropNex show that singles form some 16 per cent of buyers in the HDB resale market.

National Development Minister Khaw Boon Wan said the additional demand from the singles is unlikely to be small. One option is to launch more BTO flats next year, he said.

Couples who cancel their applications will also help boost the supply of flats.

PropNex Realty’s reginal director, David Poh, said: “It’s quite common that couples who buy (BTO flats) will not collect the keys, because they regret, they don’t like the location or they have even separated before they collect the keys. All these leftover BTO flats, the government can introduce them into the market immediately. At that time, you’ll really see the influence on resale prices.”

Land parcel at Punggol Way/Punggol Walk receives 3 bids

The Housing and Development Board (HDB) tender for the land parcel at Punggol Way/Punggol Walk for Executive Condominium Housing Development has attracted three bids at the close on Tuesday.

The top bid came from Qingjian Realty (South Pacific) Group Pte Ltd at S$189.87 million or $3,375.86 per square metre.

This works out to S$314 per square foot per plot ratio.

The top bid was just 1 percent higher than the second bid of S$188 million by Verspring Properties Pte Ltd.

Meanwhile, the lowest bid came from Opal Star Pte Ltd & Binjai Holdings Pte Ltd at $175.88 million.

The 99 -year leasehold site was launched for public tender on 23 Jul 2012.

It has a maximum permissible gross floor area of 56,243.4 square metres.

Miss Chia Siew Chuin, Director of Research & Advisory at Colliers International said the tender for the executive condominium (EC) site at Punggol Way and Punggol Walk was contested by just three contenders, due mainly to the location of the site which is some distant from the MRT station.

“Nonetheless, the three developers remain optimistic about the residential market’s potential and are attracted to the increasingly popular Punggol address” she added.

Miss Chia says the units for this new site could possibly be priced at $750 per square foot (psf) and above,

She also estimates the break-even cost for the developer to be around $600-$650 psf.

HDB said a decision on the award of the tender will be made after the bids have been evaluated.

The result will be announced at a later date.

Property market keeps afloat: JLL report

The Asia Pacific property market remains resilient due to strong investment volumes, even on the back of uncertainties in the global economy, according to Jones Lang LaSalle’s (JLL) Asia Pacific Property Digest (APPD) for Q2 2012.

Despite this, the slowdown in leasing activity hints that the region “is not completely immune.”

Strong direct commercial property investment market in Q2 was highlighted by a 26 percent year-on-year increase in volumes to US$26 billion (S$32.55 billion). As stronger investment volumes came in, capital values also increased across most major markets.

On the contrary, office leasing activity dipped by about 10 percent in Q2 this year compared to 2011, mainly due to “corporate caution and the flow-on effects of ongoing economic uncertainty.”

Dr Jane Murray, Head of Research Asia Pacific at JLL, noted, “The Asia Pacific property markets are holding up relatively well given the global economic backdrop. Leasing activity levels should continue to trend moderately lower than last year’s record levels, while we expect investors will continue to search out opportunities, particularly in prime locations.”

That said, JLL expects capital values and rents “to grow in most markets, albeit at a slower rate than 2011.”

Jeremy Sheldon, Managing Director for Markets Asia Pacific at JLL, said, “There has been a decline in the established financial markets, however we are seeing strong demand in key South East Asian markets, and certain cities in China. While this pattern is likely to continue through to the remainder of the year, we are optimistic that leasing will remain largely stable.”

As for Singapore, Chua Yang Liang, Head of Research South East Asia at JLL, said the country “remains at the cusp of this shift and given cost savings as the modus operandi for most firms together with tighter immigration, the Singapore residential leasing market is likely to face further downside pressure.”

GCB for sale, price tag: S$106m

A Good Class Bungalow (GCB) at Nassim Road is on the market for a staggering S$106 million. If sold for that amount, it would be the most expensive home sold on mainland Singapore to date. 

Listed on PropertyGuru, the asking price for the GCB beats all previous records. The eight-bedroom house sits on a sprawling 42,500 sq ft freehold land site and is believed to be an old bungalow that has been on sale for around six months. 

The agent marketing the property who declined to be named added that it is being sold by a Singaporean and has received a few enquiries from potential buyers. 

Tejaswi Chunduri, Regional Analyst at PropertyGuru, said the fact that GCBs are in limited supply but see strong demand could be a contributing factor to the eye-popping price tag. 

“Until now, we have only seen such high asking prices for landed homes on Sentosa Cove. The highest price attained for a GCB on mainland Singapore was S$68 million for a bungalow at Ridout Road.” 

She added that “prices are expected to rise, although at different rates for different districts”. 

According to Chunduri, many genuine buyers prefer landed homes on freehold or 999-year leasehold sites as they can have almost full-ownership of the land. 

Meanwhile, there are 11 bungalows currently listed on PropertyGuru with an asking price of S$70 million and above, with the second priciest being an S$88 million GCB along Victoria Park Road.

CapitaLand Group to relocate to Westgate Tower from 2015

CapitaLand said Tuesday that the group will relocate to Westgate Tower in Jurong progressively from early 2015.

The group will occupy about 160,000 square feet across 11 floors of the new 20-storey prime office tower. It will also maintain a city office at Capital Tower as a flexible workspace to liaise with clients or business partners, it said.

The group, which includes CapitaMalls Asia, CapitaMall Trust, CapitaCommercial Trust, and Ascott Residence Trust, currently operates from different buildings in Singapore.

Mr Liew Mun Leong, President and CEO of CapitaLand Group, said: “The relocation will be a milestone for CapitaLand Group. For the first time, all business units in Singapore and the corporate office will operate from a single location. We want to create a conducive environment that will help to further improve productivity across the Group and achieve work-life integration.”

He added: “We are pleased that Westgate, sited within Jurong Gateway – the biggest commercial hub outside the Central Business District – will provide the ideal location for the Group to be housed under one roof. We look forward to playing a significant role in transforming the Jurong Lake District into a key regional business hub.”

Westgate, jointly developed by CapitaMalls Asia, CapitaMall Trust Management and CapitaLand, is to comprise a shopping mall and office tower. The 416,000-sq-ft lifestyle and family mall is expected to be opened by end-2013, while the 320,000-sq-ft office tower is slated for completion in end-2014.

Bright Hill site awarded to UVD

UVD Pte Ltd has won the tender for a residential site (pictured) at Bright Hill Drive after submitting the top bid of S$291.5 million, according to the Housing and Development Board (HDB). 

The 13,437.1 sq m plot is expected to yield 405 condo units or flats, or a combination of flats and strata landed homes subject to approval. However, the 99-year leasehold site cannot be developed into serviced apartments, noted the HDB. 

The tender for the site was launched on 20 June and closed on 7 August with a total of six bids received. 

In Land-Scarce Singapore, Good Class Bungalows(GCBs) Are Extremely Rare And Exclusive. GCBs Were Transacted At An Average Price Of S$24 Million In 2011

"In land-scarce Singapore, Good Class Bungalows(GCBs) are extremely rare and exclusive. GCBs were transacted at an average price of S$24 million in 2011."

1 - Singapore's ranking in the Easiest Places to do Business
4 - The number of official languages in Singapore
40 - Foreign Singapore Residents as a percentage of the population

Residences closest to the Orchard Road shopping belt are classified under prime districts 9 and 10. Standing in the heart of the area is The OrchardResidences, named for its location directly above the Orchard Mass Rapid Transit (MRT) station and its iconic mall podium, the ION Orchard. Jointly developed by CapitaLand and Sun Hung Kai Properties, the 56-storey residential tower was envisaged to be the tallest building and a focal point onOrchard Road.

Recent projects such as Hamilton Scotts, The Marq on Paterson Hill and Twin Peaks take luxury to a new level. At Hamilton Scotts, a biometric scan and elevator deliver cars up to the apartments' own car porches, termed an 'en suite sky garage'. Each residence at The Marq's Signature Tower has a private lap pool cantilevered outside the building. Developer SC Global also announced that a five-bedroom apartment at the project would be fully fitted by Hermès. In November 2011, a 3,003-sq ft apartment at the project fetched a record price of S$6,850 per sq ft, or around S$20.5 million. Separately, Twin Peaks became Singapore's first fully furnished apartment project, offering buyers a choice of designer fixtures. Luxury takes another form in projects such as Hilltops and Nassim Park Residences, which take advantage of local greenery to provide a tranquil retreat away from the bustling shopping district outside their gates. Prices of super luxury apartments and condominiums tracked by Savills averaged S$3,661 in Q4/2011.

The crème de la crème of the super-luxury home segment, however, is the Good Class Bungalow (GCB). These are bungalows with a minimum plot size of 1,400 sq m, located in 39 areas which are clearly demarcated and gazetted by the Singapore Government to preserve their character and overall ambience. The 39 areas are spread across prime districts 10 and 11, as well as districts 21 and 23, the latter being just off the prime districts. In land-scarce Singapore, GCBs are extremely rare and exclusive. GCBs were transacted at an average price of S$24 million in 2011. The catch is that foreign ownership of GCBs is restricted, as with most landed housing inSingapore.

Sentosa Cove is the only exception, where foreigners can own a landed home in Singapore. The residential enclave is situated on the eastern end ofSentosa, a resort island 15 minutes' drive from the CBD, which is also home to Resorts World Sentosa with its Universal Studios and casino. Five islands -Coral, Paradise, Sandy, Treasure and Pearl - have been carved out atSentosa Cove to offer homes with picturesque seafront views. Some residents also have private yacht moorings. Sentosa Cove is home to ONE°15 Marina Club, an exclusive local yacht club. Bungalows at Sentosa Covechanged hands at an average price of S$18 million in 2011.

Singapore's long-standing record of political and economic stability and an absence of natural disasters has also made it a safe haven for investors. Official projections expect the Singapore economy to grow by a healthy 5% in 2011. The island state has come under the international spotlight in recent years with the opening of its two integrated resorts and casinos - Marina Bay Sands and Resorts World Sentosa - and the hosting of several major events such as the inaugural Youth Olympics and Formula 1 Grand Prix. Although Indonesians remain the top overseas buyers of non-landed homes in prime districts 9, 10 and 11, the number of mainland Chinese buyers has been increasing steadily over recent years.

The Marq on Paterson Hill, District 9, Singapore
Site Area: 3,003 sq ft
Transaction Price: S$20.5 million (S$6,850 per sq ft)
Transacted Date: November 2011

Good Class Bungalow, Victoria Park Road, District 10, Singapore
Site Area: 32,078 sq ft
Transaction Price: S$48 million (S$1,496 per sq ft)
Transacted Date: November 2011

Sentiment for property development industry improves marginally

Sentiment for the property development industry in Singapore has improved marginally in the second quarter.

This according to the latest survey jointly developed by the Real Estate Developers’ Association of Singapore (REDAS) and the NUS Department of Real Estate.

According to the Real Estate Sentiment Index (RESI), the outlook for Singapore’s real estate market is showing a modest improvement compared to the previous quarter.

The Composite Sentiment Index, the derived indicator for overall real estate market sentiment in Singapore, stood at 4.7 in 2Q12, compared to 4.6 in 1Q12.

Meanwhile, the Current Sentiment Index, which tracks changes in sentiments over the past six months, rose to 4.9, up from 4.8 in 1Q12.

The Future Sentiment Index, which tracks market expectations for the next six months, increased slightly to 4.5 from 4.4 in 1Q12.

The survey was conducted through a questionnaire given to about 280 developers and real estate players in Singapore.

The survey scores, which range from 0 to 10, measure survey respondents’ perceptions and expectations of real estate development and market conditions in Singapore.

According to the RESI, the hotel sector is expected to continue its strong performance in the next six months, but the office sector is expected to continue underperforming in the near term amidst the lack of clarity in the global economic outlook.

The survey also found that fewer developers are likely to increase private residential unit launches, with 46 percent of the developers surveyed expecting more units to be launched in the near term, down from 77 percent in 1Q12.

Almost two-third of the respondents expect prices to hold at the current level over the next six months, up from 46 per cent previously.

Meanwhile, developers are also showing a higher level of concern for the rise in labour costs, land costs and building materials costs.