reporter2
14-04-22, 10:11
Upcoming units at Keppel Club site will attract keen interest from home buyers: analysts
Prime location and appeal of waterfront living are likely to ensure they are a hit
Apr 13, 2022
https://i.imgur.com/zb1Z6iN.png
ANALYSTS expect the upcoming public and private housing units on the site currently occupied by Keppel Club to prove a hit with home buyers, thanks to the prime location and the appeal of waterfront living.
According to real estate agency PropNex, the land parcels yielding some 3,000 private homes will be sold through the Government Land Sales Programme and could be done via a dual-envelope concept and price model.
They could be launched for tender over the next 2 to 3 years, reckoned chief executive Ismail Gafoor, adding that the announcement of the fresh supply is unlikely to result in a correction in today's market since it will not be available in the near term.
Highlighting that homes in the Greater Southern Waterfront will do well with Singaporean and foreign buyers as well as investors, Gafoor added: "We believe that there will be keen interest among many developers who will want a stake in the Greater Southern Waterfront and help to shape what would be a vibrant and iconic live-work-play waterfront destination."
PropNex estimated that private homes on the site could eventually be launched for sale at S$2,500-2,700 per square foot (psf) or higher, depending on market conditions at the time. A recent launch in the area, The Reef at King's Dock, transacted at an average unit price of S$2,405 psf in the first quarter of 2022.
However, Gafoor also cautioned that development costs could rise should developers have to use more complicated construction procedures, owing to environmental constraints and the need for ecological preservation.
This in turn would have an impact on bid prices, and ultimately, selling prices.
Christine Sun, OrangeTee & Tie's senior vice-president of research and analytics, pointed out that private homes in the area will offer good rental potential, as they are close to tourist destination Sentosa, and also offer proximity to HarbourFront, Mapletree Business City, Vivocity as well as the Central Business District.
Lee Nai Jia, deputy director of NUS' Institute of Real Estate and Urban Studies (IREUS), highlighted that the site is surrounded by nature parks, which will appeal to home buyers, while some units are also expected to have unblocked sea views.
Meanwhile, analysts expect the Prime Location Public Housing (PLH) model to apply to the future build-to-order HDB flats at the Keppel Club site, given the prime location and to alleviate the so-called "lottery effect".
Another HDB housing project in a prime location, Pinnacle @ Duxton, has been highly sought-after, with prices on the resale market crossing the S$1 million mark for many units.
PropNex's head of research, Wong Siew Ying, said: "The supply of 6,000 new HDB flats that will be offered on the Keppel Club site is considered fairly sizable, but they would likely still sell out, given the overwhelming demand among Singaporeans for flats in prime locations." Wong added: "Flats here will likely have a high potential for capital appreciation and could see strong resale demand, after they exit the minimum occupation period."
But Christine Yu, CEO of International Property Advisor, offered a contrarian view: the number of first-time home buyers who will be buying BTOs in the next 3 to 5 years - that is, those currently in the age cohorts of 15 to 19 and 20 to 24 - is shrinking.
She noted: "The thinning demand may be complicated by the fact that as baby boomers retire and down-size or right-size, there could be more resale HDBs in the market for young couples to consider."
Huttons estimated that the Build To Order (BTO) flats at the Keppel Club site could be launched in 3 years at S$400,000 to S$450,000 for 3-room flats, and S$720,000 to S$850,000 for 4-room flats.
Should it fall under the PLH scheme, the price for a 3-room flat could be S$360,000 to S$405,000 after subsidy, and S$650,000 to S$760,000 for a 4-room flat after subsidy - similar to PLH project River Peaks.
Huttons senior director (research), Lee Sze Teck, added: "The BTO flats are expected to be heavily over-subscribed. We expect the subscription rate to be more than 10."
Meanwhile, Sun expects BTO prices for 3-room flats to trend between S$400,000 and S$520,000, and from S$600,000 to S$720,000 for 4-room flats. Under the PLH scheme, this could work out to S$380,000 to S$480,000 for 3-room flats and S$500,000 to S$700,000 for 4-room flats.
In comparison, 3-room flats at Telok Blangah Beacon had a price range from S$324,000 to S$368,000 when they were launched last year while the 4-room flats went for S$602,000 to S$710,000.
Sun also suggested that some of the HDB flats at the Keppel Club site could be set aside as rental units for lower-income families, community care apartments for seniors and for 2-room flexi flats, with the aim of being inclusive.
https://www.businesstimes.com.sg/real-estate/upcoming-units-at-keppel-club-site-will-attract-keen-interest-from-home-buyers-analysts
Prime location and appeal of waterfront living are likely to ensure they are a hit
Apr 13, 2022
https://i.imgur.com/zb1Z6iN.png
ANALYSTS expect the upcoming public and private housing units on the site currently occupied by Keppel Club to prove a hit with home buyers, thanks to the prime location and the appeal of waterfront living.
According to real estate agency PropNex, the land parcels yielding some 3,000 private homes will be sold through the Government Land Sales Programme and could be done via a dual-envelope concept and price model.
They could be launched for tender over the next 2 to 3 years, reckoned chief executive Ismail Gafoor, adding that the announcement of the fresh supply is unlikely to result in a correction in today's market since it will not be available in the near term.
Highlighting that homes in the Greater Southern Waterfront will do well with Singaporean and foreign buyers as well as investors, Gafoor added: "We believe that there will be keen interest among many developers who will want a stake in the Greater Southern Waterfront and help to shape what would be a vibrant and iconic live-work-play waterfront destination."
PropNex estimated that private homes on the site could eventually be launched for sale at S$2,500-2,700 per square foot (psf) or higher, depending on market conditions at the time. A recent launch in the area, The Reef at King's Dock, transacted at an average unit price of S$2,405 psf in the first quarter of 2022.
However, Gafoor also cautioned that development costs could rise should developers have to use more complicated construction procedures, owing to environmental constraints and the need for ecological preservation.
This in turn would have an impact on bid prices, and ultimately, selling prices.
Christine Sun, OrangeTee & Tie's senior vice-president of research and analytics, pointed out that private homes in the area will offer good rental potential, as they are close to tourist destination Sentosa, and also offer proximity to HarbourFront, Mapletree Business City, Vivocity as well as the Central Business District.
Lee Nai Jia, deputy director of NUS' Institute of Real Estate and Urban Studies (IREUS), highlighted that the site is surrounded by nature parks, which will appeal to home buyers, while some units are also expected to have unblocked sea views.
Meanwhile, analysts expect the Prime Location Public Housing (PLH) model to apply to the future build-to-order HDB flats at the Keppel Club site, given the prime location and to alleviate the so-called "lottery effect".
Another HDB housing project in a prime location, Pinnacle @ Duxton, has been highly sought-after, with prices on the resale market crossing the S$1 million mark for many units.
PropNex's head of research, Wong Siew Ying, said: "The supply of 6,000 new HDB flats that will be offered on the Keppel Club site is considered fairly sizable, but they would likely still sell out, given the overwhelming demand among Singaporeans for flats in prime locations." Wong added: "Flats here will likely have a high potential for capital appreciation and could see strong resale demand, after they exit the minimum occupation period."
But Christine Yu, CEO of International Property Advisor, offered a contrarian view: the number of first-time home buyers who will be buying BTOs in the next 3 to 5 years - that is, those currently in the age cohorts of 15 to 19 and 20 to 24 - is shrinking.
She noted: "The thinning demand may be complicated by the fact that as baby boomers retire and down-size or right-size, there could be more resale HDBs in the market for young couples to consider."
Huttons estimated that the Build To Order (BTO) flats at the Keppel Club site could be launched in 3 years at S$400,000 to S$450,000 for 3-room flats, and S$720,000 to S$850,000 for 4-room flats.
Should it fall under the PLH scheme, the price for a 3-room flat could be S$360,000 to S$405,000 after subsidy, and S$650,000 to S$760,000 for a 4-room flat after subsidy - similar to PLH project River Peaks.
Huttons senior director (research), Lee Sze Teck, added: "The BTO flats are expected to be heavily over-subscribed. We expect the subscription rate to be more than 10."
Meanwhile, Sun expects BTO prices for 3-room flats to trend between S$400,000 and S$520,000, and from S$600,000 to S$720,000 for 4-room flats. Under the PLH scheme, this could work out to S$380,000 to S$480,000 for 3-room flats and S$500,000 to S$700,000 for 4-room flats.
In comparison, 3-room flats at Telok Blangah Beacon had a price range from S$324,000 to S$368,000 when they were launched last year while the 4-room flats went for S$602,000 to S$710,000.
Sun also suggested that some of the HDB flats at the Keppel Club site could be set aside as rental units for lower-income families, community care apartments for seniors and for 2-room flexi flats, with the aim of being inclusive.
https://www.businesstimes.com.sg/real-estate/upcoming-units-at-keppel-club-site-will-attract-keen-interest-from-home-buyers-analysts