Results 1 to 18 of 18

Thread: Old news - June 2015, when the forum was closed for maintenance

  1. #1
    Join Date
    Oct 2011
    Posts
    10,829

    Default Old news - June 2015, when the forum was closed for maintenance

    http://www.straitstimes.com/archive/...-bids-20150619

    Toa Payoh private residential site draws 14 bids

    Top offer of $345.86m by Evia and partners just pips next highest bid

    Published on Jun 19, 2015 1:41 AM

    By Rachael Boon


    AN ATTRACTIVE private residential site in the mature estate of Toa Payoh has attracted keen interest from 14 bidders - in line with market expectations.

    The top bid came from Evia Real Estate, the developer behind Jurong's Lake Life executive condominium, and two partners, Maxdin and Gamuda.

    This bid was just 1.1 per cent higher than second-placed Sing Holdings, at $342.1 million.

    Mr Desmond Sim, CBRE research head for Singapore and South-east Asia, said the level of interest was unsurprising.

    He said only a few sites remained available on the Government Land Sales programme for the first six months of the year. He noted the planned cutback in the programme over the next six months.

    The Toa Payoh plot was launched on April 29, with the tender closing yesterday.

    Evia, Maxdin and Gamuda tendered $345.86 million, or $755.30 per sq ft per plot ratio (psf ppr), for the parcel with a site area of 130,830 sq ft - close to an expected range of $670 to $750 psf ppr.

    R'ST Research director Ong Kah Seng said: "The top land tender price and the close winning margin show that developers remain keen in choice sites in mature housing estates."

    The results suggest that developers are hopeful the weak buying sentiment in residential property will turn around, he added.

    Dr Chua Yang Liang, JLL head of research and consultancy, noted: "The tightness of these recent bids could reflect a more consistent view among the developers regarding the market conditions."

    The new Toa Payoh site, a five- to 10-minute walk to Braddell MRT station, was offered for sale on a 99-year lease term.

    Mr Vincent Ong, Evia's managing partner, said: "Similar to Jurong, we believe that there is a pent-up demand for private housing in this area as it is one of the most populated public housing estates in Singapore, and is the closest estate to the city."

    R'ST's Mr Ong expects the new project's selling price to be $1,450 psf to $1,550 psf.

    He cautioned that there may have been some overbidding as the high land price means the selling prices have to be quite high to achieve "notable profits".

    "While Toa Payoh is a very centrally located, major housing estate, it is predominantly public housing - with only Trevista as the main newer condominium project in the estate. There is little that a developer can achieve out of developing private homes in Toa Payoh - as home-buying interest here is stronger for Housing Board flats."

    [email protected]

  2. #2
    Join Date
    Oct 2011
    Posts
    10,829

    Default

    http://www.straitstimes.com/archive/...homes-20150619

    Sungei Pandan waterfront site may yield 600 homes

    Published on Jun 19, 2015 1:39 AM

    By Fabian Koh


    A RESIDENTIAL site at West Coast Vale was put on the market yesterday with price expectations of up to about $370 million.

    The 18,908 sq m plot, which is on the confirmed list of the Government Land Sales (GLS) programme, is located on the Sungei Pandan waterfront.

    Its maximum gross floor area of 52,945 sq m could yield about 595 residential units.

    Analysts said there would be keen interest in the 99-year leasehold site.

    Mr Desmond Lim, the head of research for Singapore and South-east Asia at CBRE, told The Straits Times: "While there has been a fall in the supply of land available for residential development, the same number of developers are still there."

    Century 21 chief executive Ku Swee Yong noted that developers would be interested because of the amenities in the area, which will include the upcoming high-speed rail terminal in Jurong East.

    "The area also has the new Science Centre, and the Westgate and Jem shopping malls," he said.

    Recent developments there have fared quite well.

    "Nine months ago, Waterfront @ Faber was launched. It has 210 units, with 135 already sold. That's more than 60 per cent, which is quite good," said Mr Ku.

    Dr Chua Yang Liang, the head of research for JLL in South-east Asia, said: "Surrounding projects include The Infiniti and Hundred Trees, many of which have seen strong end-user demand, and have been fully sold.

    "Many of the projects were launched in 2006 and 2007."

    Mr Lim expects about 10 bidders for the West Coast Vale site, with offers exceeding $600 per sq ft (psf).

    Mr Ku predicts five to eight bidders, offering $400 to $500 psf, made up mostly of "cash-rich listed developers who need to have land in the pipeline for future developments".

    Dr Chua expects the bid price at $600 to $650 psf, noting that there could be higher building costs as the site is near water.

    He added: "The negative is possibly the industrial estates to the west of the area. However, that is rather minor as they are fast-changing."

    The tender closes at noon on Aug 4, said the Urban Redevelopment Authority yesterday.

    [email protected]

  3. #3
    Join Date
    Oct 2011
    Posts
    10,829

    Default

    http://www.businesstimes.com.sg/real...yoh-condo-site

    Close fight emerges for Toa Payoh condo site

    Top 5 tenders range from S$725 to S$755 psf ppr, with top bidder Evia Real Estate and partners pipping Sing Holdings by just 1.1%

    By Kalpana Rashiwala

    [email protected]@KalpanaBT

    Jun 19, 2015


    THE Evia Real Estate-led consortium's top bid for a 99-year private condo site in Toa Payoh at a state tender was just 1.1 per cent more than the closest competition.

    The group plans to build a 590-unit project on the site, with half the units expected to comprise one and two-bedders to be priced below S$1 million to keep them affordable, said Evia Real Estate managing partner Vincent Ong.

    Evia Real Estate (7) joined forces with Maxdin and Malaysia-listed group Gamuda to place the top bid of S$345.86 million or S$755.30 per square foot per plot ratio for the 1.2 hectare site at Lorong 6/Lorong 4 Toa Payoh.

    This pipped Sing Holdings' S$747.09 psf ppr bid. The tender drew 14 bids. The lowest bid, seen as a bottom-fishing expedition, came from Li Ka-shing's Cheung Kong Holdings, which made an offer of S$400 psf ppr for the site through Best Desire Investments.

    The provisional tender results were released on Thursday evening by Housing & Development Board, acting as land sales agent for the state. The results were in line with the expectations of property consultants, who had predicted 5-25 bids with a top bid of around S$640-770 psf ppr when the site was launched in late-April.

    Located roughly 430 metres from Braddell MRT Station, the site has an attractive city-fringe location in a mature estate with few private condos.

    Speaking to BT on Thursday evening after the provisional tender results were announced, Evia's Mr Ong said the consortium's proposed scheme envisages a twin-tower development that will rise 40 storeys high. "We hope to launch the project in March/April next year."

    "The breakeven cost will be almost S$1,300 psf; we're targeting to sell at slightly above S$1,400 psf (on average)," he added.

    Acknowledging the thin margin of about 7 per cent on the proposed project, Mr Ong said: "To me, the velocity of sales is more important than the profit margin."

    He also highlighted the pent-up demand for private housing in the Toa Payoh area, where there had been no state tenders for private housing sites since 2008.

    Speaking about his partners for the Toa Payoh site bid, Mr Ong said this will be the maiden Singapore foray for Gamuda, which is involved in property, engineering and construction. The other member of the trio, Maxdin, is a unit of Greatearth Pte Ltd, which was formerly known as UE E&C Ltd.

    Also bidding at the tender was a tie-up between UOL Venture Investments and Singapore Land unit Singland Homes, which offered S$740.32 psf ppr for the site .

    Frasers Centrepoint's FCL Tampines Court teamed up with Sekisui House and Keong Hong Construction's KH Capital for a S$740.08 psf ppr bid.

    EL Development priced the site at S$725.25 psf ppr. HY Realty, a unit of Chinese developer Hao Yuan, was the sixth highest bidder, at S$711.67 psf ppr. Malaysian tycoon Robert Kuok's Allgreen Properties offered S$703.15 psf ppr for the plot. This was followed by a bid of S$701.01 psf ppr from a three-way partnership involving City Developments' unit Verwood Holdings, Hong Leong Holdings' unit Intrepid Investments, and TID Residential.

    "The fact that more than half the bids surpassed S$700 psf ppr reflects developers' confidence that the attraction of the site would be a draw to potential home buyers," said Christine Li, director, research, at Cushman & Wakefield.

    The last state tender for a private housing site in Toa Payoh was in 2008, when NTUC Choice Homes paid S$460 psf ppr for the site that it has since developed into the Trevista condo.

    As for Thursday's tender closing, R'ST Research director Ong Kah Seng commented: "The top land tender price, high participation and the close winning margin show that developers remain keen on choice sites in mature housing estates."

    Desmond Sim, head of Singapore and South-east Asia at CBRE Research, noted that the site is located "at one of the key access points to Toa Payoh estate".

    "The developer should be able to garner healthy interest for the project, particularly from upgraders living in the estate," he added.

    Also bidding at the tender were Koh Brothers unit KBD Ventures (S$672.41 psf ppr) and a joint venture between Hoi Hup Realty, Sunway Developments and Oriental Worldwide Investments (S$603.83 psf ppr).

    This was followed closely by a bid from MCL Land at S$603.40 psf ppr. Fica Nominees, a unit of GuocoLand, bid S$524.56 psf ppr. Sim Lian Land was the second lowest bidder, at S$502.29 psf ppr.

    Evia Real Estate, which was set up in 2010, is a private equity real estate group. Besides developing three executive condo projects in Singapore, the group has invested in five logistics centres in the Greater Seoul area as well as a mall in Bundang, a 45 minute drive from Seoul.

  4. #4
    Join Date
    Oct 2011
    Posts
    10,829

    Default

    http://www.businesstimes.com.sg/real...st-up-for-sale

    Residential site at West Coast up for sale

    By Lynette Khoo

    [email protected]@LynetteKhooBT

    Jun 19, 2015


    A RESIDENTIAL site at West Coast Vale has been put up for sale by the Urban Redevelopment Authority (URA) on Thursday, which could yield some 595 residential units.

    This is the last land parcel to be released under confirmed list of the government land sales (GLS) programme for the first half of 2015. But consultants are divided on how well received this site would be by developers.

    CBRE head of research for South-east Asia Desmond Sim noted that given the cutback in residential sites in the GLS programme's confirmed list in the second half of the year, there will likely be healthy interest for this site at West Coast.

    Bids should come in excess of S$600 per square foot per plot ratio (psf ppr), he said, adding that some 10-14 bids could be expected for the 18,909 sq m plot - a size he felt was "easy to stomach" for developers.

    Though the project is not supported by a strong proximity to MRT, it is nestled in an established precinct for private residential projects, he added.

    The land parcel is located along the waterfront of Sungei Pandan and linked to West Coast Highway and Ayer Rajah Expressway. It is also near commercial amenities such as Westgate, Jem and Big Box at the Jurong Lake District, as well as the site of the current Jurong Country Club golf course that will be developed into the Singapore terminus of the high-speed rail (HSR) link with Malaysia.

    According to URA, a future development on the site is suitable for families with school-going children since it is near Nan Hua Primary School, Commonwealth Secondary School and The Japanese School. The tender submission date is August 4.

    But R'ST research director Ong Kah Seng said that he expects cautious bidding by developers as buyers' sentiments remain weak, pegging his forecast at around five bids with the top bid likely coming in at S$450-$500 psf ppr.

    The site is some distance away from Jurong East and Clementi MRT stations. Within the West Coast area, there are resale private housing choices with freehold or 999-year lease tenure, Mr Ong said. There are also competing alternatives in the Jurong and Lakeside areas where a rejuvenation has taken place.

    "Leisure-proximity to coast and parks living was a good marketing concept/selling point for West Coast properties but such selling points are quite passé," Mr Ong added.

    He believes that the time is over for buyers to gain significant resale price premium from proximity to coastal parks or waterfront living, which was once a unique selling point before the government rejuvenated suburban residential enclaves such as Lakeside, Hillview and Bartley from 2010 and improved connectivity islandwide with the Circle Line.

  5. #5
    Join Date
    Oct 2011
    Posts
    10,829

    Default

    http://www.straitstimes.com/archive/...-down-20150620

    Private home sales up but prices down

    Analysts expect further price decline as cooling measures deter buyers

    Published on Jun 20, 2015 1:10 AM

    By Jacqueline Woo


    THE private residential market is set to sink deeper into the doldrums with buyers continuing to hold off purchases for as long as hard-hitting cooling measures stay firmly in place.

    Analysts told The Straits Times private home prices could shed a further 2 per cent in the second quarter of the year from the first.

    "Both developers and home sellers are reducing their prices to attract buyers amid the onslaught of property cooling measures," said Ms Alice Tan, director and head of research at Knight Frank Singapore. "The overall market sentiment remains fairly weak with macroeconomic uncertainties looming."

    The forecast for lower prices comes even as more units are expected to have changed hands in the almost-ended second quarter.

    Dr Chua Yang Liang, JLL head of research and consultancy, said the overall transaction volume for private homes may have grown about 10 per cent to 20 per cent quarter-on-quarter.

    Already, the prime districts saw 253 transactions in April and May, up from 198 in January to February.

    "But the fundamental driver (behind this) is that we are heading into the second and third quarters of the year, where activities are generally higher than in the first quarter," noted Dr Chua.

    "Prices are likely to continue heading south on continual effect from policy measures, especially as demand in the mass market will probably weaken further."

    The mass market will likely see further correction until next year, according to a report by Barclays released on Monday.

    Mass market home sales - those outside the "central region" - fell 53 per cent to 469 units month-on-month in May, with no new launches.

    The report added that the luxury home market, on the other hand, shows signs that it has bottomed out, with renewed interest in the segment. Sales in the core central region rose 73 per cent to 69 units, with more transactions for homes priced $2,000 per sq ft (psf) and above.

    Luxury freehold condominium Cluny Park Residence, for instance, sold three units last month as prices dipped to $2,620 psf from $3,121 psf in August 2013.

    As for the rental market, Dr Chua expects rates to keep falling, with another 3 per cent to 5 per cent correction for the rest of this year. This is "given the rising vacancy on the back of a generally weaker labour market, supply overhang, and expected new stock completion", he said.

    A separate report by DBS Group Research said that with a slew of completions flooding the market this year and next, vacancy rates could jump to 9 per cent or 10 per cent from the current 7.9 per cent, "implying further pressure on rentals and prices".

    The report added that residential prices, on the whole, would drop 12 per cent to 15 per cent over this year and the next.

    "With the private property market continuing to operate in a tight financing and regulatory environment, we believe that the market remains in the early part of the down-cycle," it said.

    "A widely anticipated reversal in policy measures is unlikely in the near term."

    Ms Tan expects "pockets of opportunities for value buys" as the overall market could see further price moderation.

    "Such value buys, especially in the high-end segment, may see healthy interest, given the growing latent demand for private homes from both local and foreign buyers."

    [email protected]

  6. #6
    Join Date
    Oct 2011
    Posts
    10,829

    Default

    http://www.businesstimes.com.sg/real...s-near-parents

    More help for buyers of resale flats near parents'

    MND will look into how it can be done, says Khaw Boon Wan

    By Kelly Tay

    [email protected]@KellyTayBT

    Jun 20, 2015


    THE Ministry of National Development (MND) will look into how it can provide more help to those who wish to buy a resale flat to live near their parents, Minister for National Development Khaw Boon Wan said on Friday.

    In an MND blog post, he noted that more Singaporeans now want flats near those of their extended families in mature estates, given the benefits of such arrangements.

    "Since 2011, we have enhanced various priority schemes and introduced a new flat type to help extended families live together or close by for mutual care and support. They have produced good results," said Mr Khaw.

    Data from MND indicates that a quarter (24 per cent) of applicants for Build-to-Order (BTO) flats submitted applications under one of these schemes, and enjoyed higher success rates than those who did not; the proportion is even higher - up to 36 per cent - in mature estates such as Tampines and Bedok.

    MND noted that other schemes are also becoming more popular; the proportion of applicants applying under the Multi-Generation Priority Scheme (MGPS) or for 3Gen flats went from 5 per cent in 2013 to about 10 per cent the year after.

    "We have tried to meet these needs (for flats close to extended families), by launching more flats in mature estates," said Mr Khaw, citing the BTO project in Tampines North last year, and the upcoming Bidadari launch as examples.

    But land is limited for such launches, which is why the government gives an additional S$10,000 under the higher-tier CPF Housing Grant of S$40,000, to help first-timer families buy a resale flat to live together or close to their parents or married children.

    R'ST Research director Ong Kah Seng said helping young couples live near their parents "is always a good move", but thinks more can be done. For instance, he said, a segment of buyers will still be unable to afford flats in mature estates, even with the grants.

    "What such couples can do is rent out their flat in the non-mature estate, and then rent a flat near their parents. The government can assist with some rental payments they need, because the rental income they get from their flat is definitely lower than the rents they have to pay for renting a flat in a mature estate.

    "But we do not want an abuse of such rental subsidies or privileges, so the minimum lease (to qualify for such) subsidies must be between 11/2 and two years, instead of the standard one-year lease. This means the couple will have to be more committed to staying long term near their parents."

  7. #7
    Join Date
    Oct 2011
    Posts
    10,829

    Default

    http://www.straitstimes.com/archive/...years-20150623

    Private home prices 'could fall another 10% in next 2 years'

    Published on Jun 23, 2015 1:45 AM

    By Ann Williams


    PRIVATE home prices in Singapore could fall a further 10 per cent from current levels over the next two years, French bank BNP Paribas said in a research report yesterday.

    Although prices have fallen 5.5 per cent from their mid-2013 peak, BNP Paribas said that a "closer look at valuation metrics and underlying drivers" shows the market has to correct further before a bottom can be called.

    The bank said the Singapore Government is unlikely to unwind the total debt service ratio (TDSR) cap, given its effectiveness in curbing property demand and supporting long-term financial stability, while households here face further deterioration in their disposable income with local interest costs set to rise in tandem with US rates.

    Due to initially low interest rates, the pace of increase in interest servicing will likely exceed that of income growth, said the bank. In turn, fewer households are likely to meet the TDSR requirements.

    "Consequently, the persistence of this measure, while positive for financial system stability, is a key constraint to the revival of property demand in Singapore and, by extension, the outlook for prices," said the bank.

    "Our central case is for a relatively orderly unwind. Maintenance of 5 per cent per annum household income growth and a two-year period of correction (based on previous property cycles) means that prices need to fall by 10 per cent over the coming two years to lower the price-to-income ratio to 8.5 times," said the bank.

    The continued fall in property prices will have direct consequences for consumption growth, said BNP Paribas.

    "Such a decline will push up loan-to-value ratios and force households to inject fresh capital into their mortgages when they attempt to refinance, further constraining private consumption in the coming years."

    The bank added that another factor, tighter immigration policies, has also had a detrimental impact on demand for housing.

    It said vacancy rates for private non-landed housing could hit 10 per cent by the end of this year - putting more downward pressure on prices and rents - given the Government's tighter immigration stance, slowing regional growth which has dimmed the incentive for multinationals to expand into Asia, and supply of units in the pipeline.

    BNP Paribas said the only way the Singapore Government can reverse the downward trend in property prices is by curtailing supply but "judging by its actions, however, the Government seems intent on facilitating further acceleration in supply".

    [email protected]

  8. #8
    Join Date
    Oct 2011
    Posts
    10,829

    Default

    http://www.businesstimes.com.sg/real...buyers-in-2016

    Today's renters could turn buyers in 2016

    Nomura believes the impetus to buy will come from the raising of the CPF salary ceiling and landlords' discount offers

    By Lee Meixian

    [email protected]@LeeMeixianBT

    Jun 23, 2015


    HOME renters today could switch to buying in 2016, Nomura said in a Monday report.

    More Singaporeans seem to be opting to rent their private homes these days compared to before. For those who started renting their private homes in 2014, when the time comes to renew their contract in 2016, analyst Sai Min Chow believes that there will be enough impetus for them to buy instead.

    This contrasts against people's current preference to rent, since they expect rents to continue to fall, and mortgage rates to continue to increase. But Mr Sai believes the motivation to buy in 2016 will come from two sources:

    a policy change raising the CPF salary ceiling to S$6,000, and
    the difficult leasing environment that may ultimately force some landlords to sell their units at a discount.

    He believes that this will ultimately result in higher resale transactions and demand for completed units in developers' unsold inventories.

    Leasing of private homes jumped 11.9 per cent to about 56,000 units in 2014, despite a mere 2 per cent increase in foreign population.

    Historically, foreigners have driven property demand in Singapore, be it via purchases or rentals. But with tighter immigration policies, the leasing uptrend has changed to being fuelled by locals instead.

    The trend continued in Q1 this year, with leasing transactions in the private housing market rising 17.2 per cent year-on-year, as rentals stayed under pressure especially in the prime luxury regions.

    Mr Sai believes that today's renters will switch to buying in 2016 because of a policy change raising the CPF salary ceiling from S$5,000 to S$6,000 with effect from Jan 1, 2016.

    The change basically implies that employees earning monthly wages of at least S$6,000 will put about S$200 more into their CPF Ordinary Account contribution each month, and this can be used to service mortgages.

    Currently, rental payments are still cheaper than interest payments to banks. However, with the increase in Ordinary Account contributions from 2016, the monthly cash outlay will drop to potentially lower than the monthly rents, making buying the cheaper alternative of the two.

    "For workers aged 45 and below, our estimates suggest the monthly cash outlay could be 17.8 per cent lower for servicing a mortgage compared to paying rent - even after taking into account a 20 per cent fall in rent and a higher mortgage rate of 3.5 per cent," Mr Sai said.

    The decision to switch from renting to buying could be further helped by property owners' greater willingness to price their properties realistically for sale in 2016.

    Those currently renting out their units might find it more worthwhile to sell their units on the market in the weak leasing environment aggravated by higher mortgage rates, property taxes and leasing commission.

    "We estimate that the potential loss from further rental decline and higher mortgage rates, property tax to be incurred, as well as leasing commission to be paid to agents could work out to a discount of at least 5 per cent to current market prices that property owners may be willing to give to prospective buyers," Mr Sai said.

    For owners whose (new) properties were completed in 2013 and 2014, most would also have fulfilled their minimum holding period of four years by 2016, so they would be spared from paying sellers' stamp duties. This removes another barrier that might otherwise hold them back from selling, he said.

  9. #9
    Join Date
    Oct 2011
    Posts
    10,829

    Default

    http://www.businesstimes.com.sg/gove...ing-prices-bnp

    'Extremely difficult' for government to support housing prices: BNP

    Bank estimates that private property prices could fall a further 10% over next two years

    By Lee Meixian

    [email protected]@LeeMeixianBT

    Jun 23, 2015


    BNP Paribas in a Monday report said that it believes that immigration policies and the incoming private housing supply will make averting further declines in property prices more difficult than is widely thought.

    This is against a general consensus that the authorities have enough controls in place to maintain a "desirable slow bleed" in residential prices.

    The bank estimates that private property prices could fall a further 10 per cent over the next two years, which in turn could have a negative wealth effect and constrain private consumption growth.

    Private property prices have fallen 5.5 per cent from their mid-2013 peak. "A closer look at valuation metrics and underlying drivers suggests the market has further to correct before a bottom can be called," BNP said.

    "The consensus view amongst the general public and financial analysts alike appears to be that the government can call an end to the decline in property prices should it wish. The obvious means to do this is to unwind the suite of cooling measures imposed over the last seven years. Many also believe this unwind is likely to follow shortly after the next general election," the bank added.

    There has been talk that the elections will be held this year to ride on the current nationalistic mood following the 28th SEA Games and the passing of former prime minister Lee Kuan Yew.

    The biggest killer of property demand has been the total debt servicing ratio (TDSR) framework, which limits individuals' total borrowings to no more than 60 per cent of their gross monthly income.

    BNP said that this essentially does two things: it limits the capacity of households to buy property, and it supports the long term financial stability so that private consumption growth rather than banks will bear the brunt of a property bust.

    BNP said that the government is thus least likely to unwind the TDSR requirements in the face of a prolonged property downturn. This makes TDSR a key impediment to the revival of the property market.

    It pointed out that some households may soon find it hard to meet the TDSR requirements, as debt service ratios may rise in tandem with the Fed's monetary tightening, and at a quicker pace than income growth (since rates are rising from a very low base).

    This is coupled with tighter immigration policies, which have hurt both foreigner purchases and rentals, and slower regional growth, which has dimmed the incentive for multinationals to expand into Asia.

    All this is happening while nearly 24,000 units will be added to the private condominium and apartment stock in 2015. Even if occupancy rates for this fresh supply remain near the historical average of 85 per cent, the vacancy rate will shoot up to 10 per cent at end-2015 - the highest since 2005.

    BNP expects "a relatively orderly unwind" though - with household income growth maintained at 5 per cent per annum while housing prices fall 10 per cent over the coming two years. This, it said, will lower the price-to-income ratio from 11 times currently to 8.5 times.

    "Such a decline will push up loan-to-value ratios and force households to inject fresh capital into their mortgages when they attempt to refinance, further constraining private consumption in the coming years," it said.

    Comparing Singapore and Hong Kong, where both governments have wielded a series of cooling measures, BNP said that the effect of macro-prudential tightening measures on property prices has been more pronounced in Singapore because the city-state has "substantially more" borrowers that need mortgage financing. The result has been a small and gradual deflation in prices.

    Conversely, Hong Kong has had "decidedly little success" due to its proximity to China and mainland buyers' preference for cash purchases.

    "Property prices remain on a seemingly relentless rise, up 60 per cent on a per square foot basis since 2010. This, in turn, has pushed price-to-income ratios to a new record high of 27 times, (versus) the historical average since 1990 of 16 times," BNP said.

    Because house prices in Hong Kong are so linked to mainland capital inflows rather than local leverage, it is difficult to envisage a sustained decline in prices at the moment, it said.

  10. #10
    Join Date
    Oct 2011
    Posts
    10,829

    Default

    http://www.straitstimes.com/business...-in-queenstown

    $483m top bid for private home site in Queenstown

    Plot drew 9 bidders, Chinese firm HY Realty's offer above expected range

    Jun 24, 2015

    Rachael Boon


    A PRIME private residential site in the mature Queenstown estate has attracted nine bids from developers - with the best offer well above expected levels.

    The top bid of $483.2 million, from Chinese firm HY Realty, was 8 per cent higher than second- placed Allgreen Properties.

    HY Realty's bid translates to $871.10 per sq ft per plot ratio (psf ppr) for the 1.05ha parcel - higher than the expected top bid range of $750 psf ppr to $820 psf ppr.

    Mr Desmond Sim, CBRE research head for Singapore and South-east Asia, said: "With a winning margin of 8 per cent, the bid demonstrates the confidence in the mature estate of Queenstown, with its network of amenities and the MRT station located right next to the site, and the stability of the Singapore market."

    R'ST Research director Ong Kah Seng said the winning margin is less than 10 per cent, "so it means the top two bids are similarly interested in the plot".

    The Dundee Road plot was launched on April 29, with the tender closing yesterday. Experts had expected five to 10 bids.

    But JLL head of research and consultancy Chua Yang Liang noted that this plot had the fewest bidders for a residential site in what is known as the "rest of central region" since the third quarter of last year - when a Sims Drive site had only four bidders.

    "This suggests a weaker interest, compared with the 14 bidders for the site in Lorong 6 Toa Payoh which closed just last week," he said, referring to a 1.22ha plot not far from Braddell MRT station.

    Rodyk & Davidson partner Lee Liat Yeang said it was a bullish bid by HY Realty, possibly owing to the close distance to the MRT station. He added that developers are probably concerned with the abundant supply of new units in the Alexandra and Queenstown area.

    The Dundee Road site, set to yield about 645 homes, was offered for sale on a 99-year lease.

    Mr Sim said that with the total debt servicing ratio - a tougher mortgage rule - approaching its second year since implementation on June 29, "bidders for this site have the advantage of being able to punt on a possible review of the property measures".

    JLL's Dr Chua said: "We reckon the developer could be looking at a selling price of between $1,550 psf and $1,600 psf, assuming a construction cost of between $320 psf and $360 psf."

    A spokesman for HY Realty said it is not a unit of Chinese developer Hao Yuan as was reported, but it has the same shareholders as Singapore-based Hao Yuan Investment, which is controlled by mainland shareholders.

    He said HY Realty has plans to build a 700-unit condominium on the site, expected to be launched in the first quarter of next year.

    "We are confident of this site as city-fringe homes are always in high demand because of the close proximity to the city centre."

    [email protected]

  11. #11
    Join Date
    Oct 2011
    Posts
    10,829

    Default

    http://www.straitstimes.com/business...-fed-rate-hike

    Sibor likely to cross 1% again on expected Fed rate hike

    Jun 24, 2015

    Wong Wei Han


    INTEREST rates here are likely to be higher by Christmas in the light of the anticipated move by the United States Federal Reserve.

    Market watchers told The Straits Times yesterday they expect the Fed will make an initial hike in September, something long predicted by financial analysts. That in turn will likely propel the three-month Singapore Interbank Offered Rate (Sibor) to at least 1 per cent by the end of the year.

    Three-month Sibor - which governs many home loans - is at 0.82146 per cent now following a drop from 1.02 per cent in early April.

    That pullback was due mostly to the decision by Monetary Authority of Singapore (MAS) to maintain its exchange rate policy, but a move by the US Fed will kick-start its rise again, Credit Suisse economist Michael Wan said.

    "We still see a strong underlying momentum for US growth, and our expectation is that the Fed will start raising rates in September, pushing them up 50 basis points by the end of this year, followed by another 120 basis point increase in 2016.

    "Driven by this picture, three-month Sibor will gradually rise to 1 per cent by the end of this year and to about 2 per cent by the end of next year."

    Mr Wan's comments come after the Fed concluded in its June meeting last week that the near-zero rates should be maintained for now to support growth.

    But Fed chair Janet Yellen stressed that economic recovery is making progress and market watchers still widely expect a September hike.

    CMC Markets analyst Nicholas Teo agreed that there is upside pressure on Sibor against this backdrop. "We are on the cusp of normalisation. Dr Yellen has promised that rate hikes will be gradual, but it is still a reversal from the easy money that had flooded the market and kept interest rates at abnormally low levels in the past six years or so.

    "At this point of inflection, Sibor has nowhere but up to go. I won't be surprised at all if three-month Sibor settles above 1 per cent by the end of this year, as we see recovery in the US pick up steam towards the end of the year," he said.

    ANZ senior rates strategist Kumar Rachapudi also sees a similar trend over the next six months.

    "Six-month Sibor is stabilising at around 0.9 per cent given the change in market expectations on the pace of Fed hikes, as well as given how US dollar and Singapore dollar are trading," noted Mr Rachapudi.

    "We think that the rate will be range-bound around 1 per cent in the near term but the upward trend will continue. Local borrowers should take advantage of the current rates to hedge their interest rate risks."

    But Mr Wan warns of the downside to the Sibor outlook: "As local rates rise, people will cut back on discretionary spending and I expect Singapore retail sales to moderate moving forward."

    [email protected]

  12. #12
    Join Date
    Oct 2011
    Posts
    10,829

    Default

    http://www.businesstimes.com.sg/real...ndee-road-site

    HY Realty makes top bid of S$483m for Dundee Road site

    It beats Allgreen's offer by 8.4%; its owners are shifting their focus from suburban to city-fringe homes

    By Lynette Khoo

    [email protected]@LynetteKhooBT

    Jun 24, 2015


    HY Realty, which shares the same shareholders as Chinese developer Hao Yuan Investment, has emerged as the top bidder for the land parcel at Dundee Road that drew nine offers.

    Its S$483.18 million bid, which works out to S$871.14 per square foot per plot ratio (psf ppr) for the 99-year lease site, was 8.4 per cent higher than the second-highest bid, from Allgreen Properties.

    The owners and directors of HY Realty, Du Zhenzeng and Wen Baoguo, who also own Hao Yuan, are shifting their focus in development projects from suburban to city-fringe homes through this new vehicle, BT understands.

    HY Realty plans to develop a 700-unit condominium on the 10,516 square metre site, which is close to the Queenstown MRT Station. "This project is expected to be launched in the first quarter of 2016," said a HY Realty spokesman.

    "We are confident of this location as city-fringe homes are always in high demand due to the close proximity to city centre as well as the high density of amenities," he added.

    Desmond Sim, CBRE research head for Singapore and South-east Asia, noted that the top bid reflects the developer's landbanking hunger and confidence in the site's location.

    "As end-June marks the second anniversary of TDSR (total debt servicing ratio), bidders for this site have the advantage of being able to punt on a possible review of the property measures," he said.

    But JLL head of research for South-east Asia Chua Yang Liang noted that the number of bids drawn was the lowest for a residential site in the Rest of Central Region (RCR) since the third quarter of 2014 when a site at Sims Drive received just four bids. This is also lower than the 14 bids drawn by a 99-year private condo site in Toa Payoh that just closed last week.

    "The smaller number of bidders could suggest two things: Firstly, developers are not as enthusiastic over this site; and secondly, there is bid saturation as developers struggle to absorb the two sites consecutively in what is a slowing market," Dr Chua said.

    As a new kid on the block, HY Realty has been vying for sites from state tenders, coming in sixth for the Toa Payoh site that was awarded on Tuesday to Evia Real Estate, Maxdin and Malaysia-listed group Gamuda for S$345.86 million. Similarly, they had in March lost to MCL Land in bidding for a Jurong West site.

    "We reckon the developer could be looking at a selling price of between S$1,550 and S$1,600 psf, assuming a construction cost of between S$320 and S$360 psf," Dr Chua said. "This could be priced to sell especially since the average take-up rate of the nearby projects around Queenstown and Redhill have been about 20 to 60 per cent with an average price for new sales ranging between S$1,680 and S$1,750 psf."

    Among the bidders for the Dundee Road site, Allgreen Properties priced the site at S$803.95 psf ppr while Hong Leong Holdings, CDL and Hong Realty put in a S$780.26 psf ppr bid. Cheung Kong Holdings' unit Japura Development put in the lowest bid of S$506.63 psf ppr.

    R'ST Research director Ong Kah Seng noted that the cautious bidding among developers was expected given that a nearby project, Commonwealth Towers, launched about a year ago, still has 400 unlaunched units as at end-May. It sold 372 units out of a total 845 units so far, based on caveats lodged. He expects the future project at Dundee Road to sell for at least S$1,500 psf. "To achieve high selling prices, the project is expected to roll out more small-format units."

    Earlier in February, Hao Yuan Investment won a state tender for an executive condominium site at Woodlands Avenue 12 with a top bid of S$103.79 million or S$278 psf ppr.

  13. #13
    Join Date
    Oct 2011
    Posts
    10,829

    Default

    http://www.straitstimes.com/business...-up-for-tender

    Freehold redevelopment site in Katong up for tender

    Jun 25, 2015

    Ann Williams


    A REDEVELOPMENT site in Katong has been put up for tender by expression of interest.

    The 22,800 sq ft freehold site, located at 12/A/B/C/D Amber Road, is zoned residential under the 2008 Master Plan, and has an allowable gross plot ratio (GPR) of 2.8.

    JLL, the marketing agent for the site, said it is acting for motivated sellers, and offers in the region of $60 million are expected. This works out to about $941 per sq ft per plot ratio (psf ppr) before factoring in development charges.

    Said Ms Yong Choon Fah, JLL's national director of capital markets: "For a redevelopment up to GPR 2.8, the development charges are estimated to be in the region of $18.47 million. A land price of $60 million would hence work out to a land rate in the region of $1,230 psf ppr."

    She said the developer could look towards building a total gross floor area (GFA) of about 63,820 sq ft on the site, and may be able to accommodate up to 80 apartments.

    Depending on the proposed design of the building, some of the residential units could potentially enjoy partial sea views, said Ms Yong.

    "A redevelopment project of this scale could appeal to the smaller or mid-sized developers, given that the total land investment quantum, including development charges, would be below $100 million.

    "Given the relatively low quantum involved, a Singaporean developer or purchaser could choose to acquire this freehold site to add to their land bank for future development if they have no immediate plans to build."

    JLL said the sellers decided to initiate this divestment exercise in the light of the news of the recent tender launch of Amber Park.

    The redevelopment site is located about 150m from the future Amber MRT Station, which is expected to be operational in 2023.

    There are currently several vacant old houses on the site. As these houses all belong to a single vendor, Strata Titles Board approval is not required for the purchase.

    The tender closes on July 28 at 2.30pm.

    [email protected]

  14. #14
    Join Date
    Oct 2011
    Posts
    10,829

    Default

    http://www.straitstimes.com/business...units-for-sale

    33 Parklane basement units for sale

    Jun 25, 2015

    ANNABETH LEOW


    A TOTAL of 33 strata shop units in the basement of Parklane Shopping Mall have been put up for sale, with an indicative price of about $65 million.

    DTZ Debenham Tie Leung (SEA) is holding an expression-of-interest (EOI) exercise, on behalf of developer Hiap Hoe's unit SuperBowl, that will close on July 30.

    The 33 units in the Selegie Road mall, which have 58 years left on their leases, represent 17 per cent of the building's share value. All have tenants, including fast-food chain McDonald's which occupies the largest unit.

    DTZ senior director of investment advisory services Swee Shou Fern said: "Tenancies for the restaurant and one of the nightclubs are expiring early next year, which offers the investor rental reversionary upside or the end-user the opportunity to operate its business from the premises."

    The current indicative pricing for the basement units is $65 million or about $2,500 per sq ft (psf).

    Mainboard-listed Hiap Hoe most recently attempted to sell these units last October, asking for about $55.6 million as it sought to sell off non-core assets.

    The total strata floor area of 25,317 sq ft means the units were being priced back then at about $2,200 psf.

    It was part of a sale attempt that also included leasehold and freehold units in Bukit Panjang Plaza and Balestier Point.

    However, the Parklane basement units were still listed under Hiap Hoe's major properties in its 2014 annual report.

    During last year's attempted sale, Hiap Hoe was keen to find a single buyer, according to Jones Lang LaSalle's investments and residential head Karamjit Singh. JLL launched last year's EOI exercise on behalf of the Hiap Hoe Group.

    This time, Hiap Hoe's SuperBowl unit is offering potential buyers either the entire portfolio of 33 basement units, or any of its three constituent shop clusters. Two of the clusters are approved for nightclub use, and the third is approved for restaurant use.

    Parklane's subsidiary proprietors had tried for a collective sale in 2007, but were unsuccessful.

    Hiap Hoe is among the local property developers which have faced challenges selling units in a gloomy real estate market.

    In March this year, Hiap Hoe Holdings completed the acquisition of all the Hiap Hoe SuperBowl shares in its Treasure on Balmoral condominium project.

    It bought all 48 units for a total of $185 million after failing to sell any units since the project's launch in 2012.

    [email protected]

  15. #15
    Join Date
    Oct 2011
    Posts
    10,829

    Default

    http://www.straitstimes.com/singapor...-pasir-ris-one

    Corridors of discontent at Pasir Ris One

    They are within regulations but some find them a squeeze

    Jun 25, 2015

    Amos Lee
    Janice Heng


    THE narrow corridors of premium Housing Board project Pasir Ris One are making some residents feel squeezed.

    The 1.2m-wide corridors of the Design, Build and Sell Scheme (DBSS) development are technically within regulations. Yet they put a crimp on everyday life, said residents such as Mr Shaun Chew, 51.

    "My neighbour and I cannot even open our doors at the same time," said the supervisor, who lives in a five-room flat on the ground floor.

    The Singapore Civil Defence Force's (SCDF) guidelines state that there must be a clear passage of at least 1.2m along corridors.

    The same width was specified in the Building and Construction Authority's Accessibility Code until a 2013 revision.

    Since 1.2m is exactly the width provided, the development sits on the margins of the rule. New residential projects submitted for approval from April 1 last year have a 1.5m minimum width instead.

    The Pasir Ris One corridors run up against another restriction.

    Most town councils have by-laws against obstructions in common corridors, which typically follow the SCDF's guidelines.

    If residents put items outside their flat, they must leave a passage of at least 1.2m.

    In other HDB corridors which are 1.4m wide, for instance, this is not a problem. For Pasir Ris One, this means that no one can place items outside their homes.

    When The Straits Times visited yesterday, the corridors were bare except for one or two pairs of shoes outside some units.

    "The designs and plans for this development have been approved and fall within all guidelines stipulated by the BCA, which were established with safety and comfort of residents in mind," said manager and project administrator Dennis Lam from SingHaiyi Group, which jointly developed Pasir Ris One with Kay Lim Holdings.

    "That said, we take the residents' views seriously and will take all feedback on board for review," he added.

    But these technicalities do not change the reality for residents. Said Mr Chew: "There is a childcare (centre) nearby. With the narrow corridor, if we happen to open our doors, it may hit the children (when they walk past)."

    Not being able to place items outside is not much of an issue for some residents, though. Their units have balconies for potted plants and an entry area for shoes.

    "It is okay if there are no obstructions," said director Lin Jun Yao, 29, who lives in a five-roomer with his family of five.

    For Mr Lin, workmanship was more of a concern. "The tilings were uneven, cabinet joints loose and materials were cheap."

    Other home owners noted scratched tiles, leaking pipes and noisy doors. Said SingHaiyi's Mr Lam: "We are in touch with owners who have provided us with feedback and are currently working with them to address their respective concerns."

    DBSS projects are sold by private developers, not by the HDB.

    In response to queries, an HDB spokesman said the agency "has been actively engaging the developer of Pasir Ris One to address the concerns of residents".

    "Discussions are ongoing between the developer and the residents, and HDB is closely monitoring the progress," she added.

    [email protected]

    [email protected]

  16. #16
    Join Date
    Oct 2011
    Posts
    10,829

    Default

    http://www.businesstimes.com.sg/real...upply-overhang

    'Dark condos' point to supply overhang

    By Kalpana Rashiwala

    [email protected]@KalpanaBT

    Jun 25, 2015


    A YEAR after lensmen from The Business Times put together a photo essay on "dark condos" to highlight the rising vacancies in the private housing market, they have gone in search of an update of the situation.

    In May, they returned to the same 10 completed condo projects they photographed a year ago to capture these developments, as far as possible, from the same angles . They even went at around the same time - between 8 pm and 9.30 pm on a weekday, before the school holidays, when people could reasonably be expected to be home.

    Their findings: Only one of the 10 developments was visibly more lit up than a year ago - The Interlace, a 1,040-unit condo along Depot Road; the other projects were, at best, just slightly brighter than 12 months ago.

    This result is somewhat surprising, given that most of these projects have already been fully or substantially sold by their developers; it has been more than 18 months since they were completed and received their Temporary Occupation Permit (TOP). Moreover, leasing activity has been decent at these projects, going by the volume of lease commencements.

    Property consultants and developers BT spoke to offered a few explanations for why the majority of BT's sample of dark condos have stayed relatively dark a year later.

    One is the changing profile of expat tenants, in tandem with Singapore's rise as a regional business hub and a gateway city.

    Jacqueline Wong, head of residential leasing and ad-hoc sales at Savills Singapore, said: "These days, Singapore attracts more foreigners who are based here but travel around the region for work. Such tenants may have leased apartments here but are out of the country for more than half of the lease period, so from the outside, the units look unoccupied, and this is especially obvious at night."

    Another reason for the large number of units captured unlit, said consultants, would be that units in prime locations bought by well-heeled foreigners are among the several properties they own in the region or around the world. These may be holiday homes, occupied only a few times a year, and so are unlit the rest of the time.

    Ong Kah Seng, director at R'ST Research, also points out that some local high-net-worth individuals (HNWIs) may be holding off from renting out newly-completed properties, given the weak rentals. "They may be afraid that if they were to lower rents, they could end up with the wrong profile of tenants who could damage their apartments," he said.

    Agreeing, CBRE executive director for residential properties Joseph Tan added that these investors may prefer to keep the unit empty for an easier sale to a buyer looking to occupy it.

    BT's sample of 10 dark condos included two mass-market projects - NV Residences in Pasir Ris and Canberra Residences in Sembawang.

    Agents said the unoccupied units in these developments could be the result of their HDB-upgrader owners having been caught by the cooling measures, which have weakened resale prices of public-housing flats; these upgraders could thus have decided to stay on in their HDB flats, in hopes of getting a higher price for their flats before moving to their private condo unit.

    Roving expats and rich foreigners occupying condos only part of the time could be seen as contributing to the sub-optimal use of Singapore's real estate, said DTZ South-east Asia's chief executive Ong Choon Fah, but then again, this is "the price you pay for being a global city".

    "It is a reflection of our economy and the status that Singapore has achieved as a hub for business. In gateway cities, you will have mobile, global workers who travel a lot of the time. This is true not just for expats who are based here, but also Singaporeans," she said.

    As for rich foreign buyers, Mrs Ong said it could be argued that, beyond the direct investment these HNWIs make, they generate other economic spinoffs: "Once they are here for a visit, chances are they would meet their private banker, insurance advisor, seek medical consultation - or they could have other business dealings."

    Still, these arguments do not diminish the gravity of the overall supply overhang in Singapore's housing market, given the ramp-up in private home completions that began last year. The number of units that obtained TOP surged 51.6 per cent from 13,150 units in 2013 to a record 19,941 units last year. This level of completions is set to persist; nearly 22,000 units are projected to obtain TOP this year, and a further 21,000 units next year, based on official data.

    The vacancy rate for Singapore's private housing stock rose from 5 per cent at the end of 2010 to 7.8 per cent at end-2014. It eased to 7.2 per cent at end-Q1 2015 from a fall in the number of completions in the first quarter to 2,976 units, from 6,366 units in Q4 2014. That said, completions are expected to step up in the Q2-Q4 period this year, which will push up vacancy rates again.

    Savills' Ms Wong predicted: "Single-digit vacancies will rise to double-digits by year-end or second quarter next year."

    The sustained high level of new private home completions aside, she cited another trend - the ongoing slowdown in the hiring of foreign expats, core contributors to private residential leasing demand.

    With rising completions and vacancies, rents have eased. The Urban Redevelopment Authority's overall rental index for private homes has fallen 5.1 per cent from the Q3 2013 peak to Q1 2015; the drop for landed homes was larger, at 7.3 per cent, than the 4.8 per cent for non-landed homes.

    Savills' average monthly rental value of high-end non-landed residential properties stood at S$4.51 per sq ft (psf) in Q1 2015, down 1.3 per cent from the previous quarter and 17.4 per cent below the last peak of S$5.46 psf in Q2 2011.

    The rental slide for mass-market condos could be even more severe, suggested Savills Singapore's research head Alan Cheong. "Based on recent anecdotal evidence, leases for suburban condo units are being renewed at rental rates around 15 per cent lower than leases two years ago."

    Savills' Ms Wong cited actual rent declines among units in the high-end segment: at the recent peak in 2011/2012, apartments above Level 20 at Ardmore Park condo fetched monthly rentals of about S$20,000; they now attract rentals of S$17,000, a 15 per cent drop.

    Mr Cheong said that in the high-end condo market generally, individual landlords have been more flexible in their rental expectations to secure tenants quickly, unlike institutional or corporate landlords.

    In the landed segment, the hardest hit have been the "Category A" Good Class Bungalows (GCBs) sitting on large plots, said Ms Wong. For instance, GCBs in Holland Road which commanded rents of around S$50,000 a month in 2011/2012 are now fetching around S$30,000.

    Private residential rents are expected to continue facing downward pressure as the supply of private residential properties completed this year is higher than the leasing demand can comfortably absorb, said Savills. On the whole, rents could fall 10 per cent to 15 per cent this year, Mr Cheong estimated.

    "The mass market will be hit most because the bulk of new home completions are in the suburbs, given that this was the segment where the government had supplied the most land in the past few years."

  17. #17
    Join Date
    Oct 2011
    Posts
    10,829

    Default

    http://www.businesstimes.com.sg/real...is-anyone-home

    STILL DARK CONDOS

    Is anyone home?

    Expats who travel for work, and well-heeled foreign buyers, leave their homes empty most of the time

    By Kalpana Rashiwala

    [email protected]@KalpanaBT

    Jun 25, 2015


    AMPLE data is available on the overall rise in vacancy rates in Singapore's private residential property market, but there are no official statistics on vacancy rates in individual completed condo developments.

    Photos taken at night from outside these projects could provide some clues. Going by the photos taken by The Business Times, a clear majority of the sample of 10 completed projects which had looked largely unlit at night in May 2014 did not look much brighter a year later.

    Let's begin with a profile of the projects: Half the 10 dark condos have been fully sold by their developers - The Laurels, The Vermont on Cairnhill, RV Edge in Shanghai Road, Canberra Residences in Sembawang and NV Residences along Pasir Ris Grove.

    Units in three other developments have been mostly sold: As at June 11, 98.6 per cent of the units at Marina Bay Suites had been sold; the figure for Goodwood Residence in Bukit Timah was nearly 91 per cent and The Interlace, 85 per cent.

    The developers of the two remaining projects, Cape Royale and Hilltops, are focused on leasing out the units. With Cape Royale, Ho Bee and IOI decided in 2013 - even before the project was completed - against selling any of the units in the 302-unit development, given the soft market conditions in Sentosa Cove. The units are now fetching rents of S$4.70 to S$5.50 per sq ft (psf) a month for units in the three and four-bedroom development.

    SC Global, which is estimated to have sold 62 of its 241-unit freehold Hilltops in Cairnhill, is now also focused on leasing. Monthly rental rates there are now between S$7 and S$9 psf.

    Although leasing activity at Cape Royale and Hilltops is said to be brisk, they emerged largely unlit in BT's night shots.

    Even the projects that have been fully or substantially sold by developers - and hence with units handed over to the individual buyers - are continuing to stay relatively dark, despite what R'ST Research director Ong Kah Seng described as a "decent level of leasing activity" by the units' owners. He based his comment on the number of lease commencements since the completion of the projects.

    Of the 10 projects, The Interlace showed the most marked increase in the proportion of lit units between May 2014 and May 2015. It had received its Temporary Occupation Permit (TOP) in September 2013, and as of June 11, the developer (a consortium comprising CapitaLand, Hotel Properties and National University of Singapore) had sold 882 of its 1,040 units. A CapitaLand Singapore spokeswoman said the majority of buyers are Singaporeans.

    Sited on the former Gillman Heights site in Depot Road, the 24-storey project comprises two to four-bedders and penthouses.

    On the other hand, the proportion of lit units at four upscale projects - Marina Bay Suites, Goodwood Residence, The Laurels and The Vermont on Cairnhill - had made little improvement between May 2014 and May this year. Foreign buyers bought substantial proportions of units from the developers of these projects.

    The developer of one of these projects, located in a prime district, told BT that of the units sold, 31 per cent were picked up by foreigners (with Indonesians being the top nationality); Singapore permanent residents accounted for another 29 per cent of buyers (Chinese being the top group). The buying share of Singaporeans was 30 per cent and companies, 10 per cent.

    "The corporates who own units use them to house their overseas top executives when they come here," the developer said.

    An executive with the developer added: "High-net-worth foreign buyers have the financial capacity to leave their units empty and prefer not to lease them out. They wish to live in their own homes when they come to town.

    "Before coming to Singapore, these owners often make arrangements, through our concierge services, to find a temporary housekeeper to prepare their units for their arrival," she added.

    Such holiday homes thus contribute to the dark appearance of these projects at night - for the rest of the time.

    On the leasing front, Jacqueline Wong, head of residential leasing and ad-hoc sales at Savills Singapore, said Marina Bay Suites (comprising three and four-bedroom apartments and penthouses) tends to attract expats at senior and middle-management levels and who travel in the region. Being in the Central Business District, the project does not typically attract expat families, she noted.

    "Rentals are S$9,000 to S$15,000 a month for a four-bedroom apartment and S$7,000 to S$9,000 for a three-bedder."

    On the other hand, The Vermont on Cairnhill and The Laurels, which have a high proportion of one/two-bedders - 39 per cent and 45 per cent of units in these projects respectively - are popular among junior expat tenants who are single or who are married but have relocated here without their families.

    Ms Wong said: "Corporations are increasingly seeking to minimise costs, firstly by not offering full expat packages so the individual does not relocate with family; secondly, instead of providing a housing package with a lease signed by the company, these expats are given an annual housing allowance for them to sign personal leases."

    Very often, these expats are hired only for the duration their expertise is required, so they come to Singapore alone and sign a one-year lease for an apartment, then often travel in the region for their job. Their families may visit them during holidays, so they prefer renting apartments near the Orchard Road shopping and entertainment area, she said.

    But although frequent-traveller expats contribute to the number of leased apartments going unoccupied and staying unlit, two of the projects in BT's sample of "dark condos" - NV Residences and Canberra Residences- are suburban projects where more local factors are at play.

    Based on R'ST Research's analysis of caveats lodged for units bought from developers, 64 per cent of buyers in NV Residences and 70 per cent in Canberra Residences had HDB addresses.

    Joseph Tan, executive director for residential developments at CBRE, suggests that at least half of these buyers would have planned to sell their HDB flats closer to the completion of the condos. But with the HDB market having been soft in the past year, those who don't need to sell their HDB flat to fund the purchase of the condo would have probably chosen to hold on to their HDB flat until prices improve before selling it and moving to their new condo.

    He estimates that around 40 per cent of those with HDB addresses who bought suburban condos in the 2010/2011 period - when NV Residences and Canberra Residences were launched - could have done so as an anti-inflationary hedge.

    "The market seemed to be on the road to recovery at the time and prices were then deemed reasonable. Now that the projects are completed, some of these owners may be prepared to keep their units for a while as they wait for price appreciation or to simply review their intention."

    At RV Edge off River Valley Road, buyers with HDB addresses picked up nearly half (48 per cent) of the units sold by the developer, based on caveats data. The freehold District 10 project's 108 units are mainly shoebox units of no more than 500 sq ft each, noted Mr Ong of R'ST Research.

    "Usually, projects in Core Central Region attract higher interest from buyers with private addresses, not HDB dwellers. That said, RV Edge appealed to HDB dwellers because back in early 2010, when the project was launched, the shoebox fever was gaining hype.

    "The project was affordably priced; its developer sold units in 2010 at a median price of about S$1,690 psf. In terms of lump sum pricing, 71 of the 107 units for which new sale caveats were lodged cost less than $750,000; the 10 cheapest units went for under S$680,000. This is indeed attractive for buyers, for a freehold property in District 10."

  18. #18
    Join Date
    Oct 2011
    Posts
    10,829

    Default

    http://www.businesstimes.com.sg/real...-up-for-tender

    Freehold redevelopment site on Amber Road up for tender

    Separately, 33 units of Parklane Shopping Mall put up for sale through expression of interest

    By Mindy Tan

    [email protected]@MindyTanBT

    Jun 25, 2015


    A 22,800-square-foot redevelopment site located in Katong has been put up for tender by expression of interest.

    The freehold site, located at 12/A/B/C/D Amber Road, is zoned "residential" under the 2008 Master Plan, and has an allowable gross plot ratio (GPR) of 2.8.

    According to the vendors' manager, the vendors decided to initiate this divestment exercise in light of the news of the recent tender launch of Amber Park. The manager added that the vendors are motivated to sell, and are expecting offers in the region of S$60 million for the property, which translates to a land rate of approximately S$941 per square foot per plot ratio before factoring in development charges.

    "For a redevelopment up to GPR 2.8, the development charges are estimated to be in the region of S$18.47 million. A land price of S$60 million would hence work out to a land rate in the region of S$1,230 per square foot per plot ratio," said Yong Choon Fah, national director of capital markets, JLL.

    The subject site is located approximately 150 metres from the future Amber MRT Station, which is expected to be operational in 2023. There are currently several vacant old houses located on the site. As these houses all belong to a single vendor, Strata Titles Board approval is not required for the purchase.

    "Much of the land that was made available in the market largely comprised of Government Land Sale sites, which tend to be large-sized plots located in suburban areas. The sheer size of these plots meant they mainly catered to bigger developers, thereby forcing smaller developers to either join forces to acquire a site, or to sit by the sidelines until a more affordable opportunity materialises," said Ms Yong.

    In the case of the Katong site, a developer could look towards building a total gross floor area of about 63,820 square feet on the site, and may be able to accommodate up to 80 high-rise apartments. Depending on the proposed design of the building, some of the residential units could potentially enjoy partial sea-views, she added.

    The tender for the site closes on July 28, at 2.30 pm.

    Separately, 33 prime shop units at Parklane Shopping Mall with direct access from the street level have been put up for sale through expression of interest.

    The units have a total strata area of 25,317 square feet, which covers close to 94 per cent of the total strata area on the basement level or 17 per cent of the entire development by share value.

    Interested parties have the option of acquiring the entire portfolio or any of the three shop clusters which comprise part of the entire portfolio. Two of the clusters, with a total strata area of 3,886 square feet and 6,631 square feet respectively, are approved for nightclub use. The third cluster, with a strata area of 2,002 square feet, is approved for restaurant use.

    The shops enjoy 100 per cent tenancy with an eclectic mix of trades including a fast-food restaurant, nightclubs, gaming and entertainment centres.

    The expression of interest exercise will close at 3pm on July 30. DTZ Debenham Tie Leung (SEA) has been appointed as the sole marketing agent.

Similar Threads

  1. Replies: 7
    -: 13-06-20, 16:48
  2. TOP in June 2015
    By mcmlxxvi in forum Coffeeshop Talk
    Replies: 0
    -: 04-07-15, 21:25
  3. Replies: 17
    -: 05-04-14, 23:40
  4. Replies: 0
    -: 19-01-14, 17:44
  5. Market may correct in 2015/6: forum
    By princess_morbucks in forum Singapore Private Condominium Property Discussion and News
    Replies: 149
    -: 17-11-13, 16:43

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •