Market News

29 Apr 2018

Koh Brothers ties up with Far East Consortium to redevelop two freehold sites

KOH Brothers Group Limited has tied up with Hong Kong-listed Far East Consortium to jointly acquire and redevelop two freehold sites in prime District 10 that were acquired en bloc. The Singapore-listed contractor-cum-developer group said in a regulatory filing on Saturday that its wholly owned unit Changi Properties Pte Ltd has entered into a 20-80 joint venture with FEC Properties, a wholly owned unit of Far East Consortium. The redevelopment of The Estoril site and Hollandia, which were acquired through collective sales, will be undertaken through the special purpose entity FEC Skypark Pte Ltd (FECS). FEC Properties has received the tender acceptance letters for the acquisitions of the Hollandia site and The Estoril site at the tendered sale price of S$183.38 million and S$223.94 million respectively. It has nominated FECS to acquire these land parcels in its place. Koh Brothers' 20 per cent stake in the total land acquisition cost of Hollandia and The Estoril is about S$81.46 million, which it intends to fund via internal resources and external borrowings. It said that it believes that the subscription of a 20 per cent stake in FECS will allow the group to expand its development portfolio in Singapore. The Estoril site currently comprises two blocks of six-storey residential apartments with a total freehold site area of 7,859.6 sq m, while the Hollandia site currently comprises a six-storey block with a total freehold site area of 4,970.8 sq m. Both are prominently located along Holland Road. FECS intends to redevelop the two sites, located next to each other, into a single residential project with a combined gross floor area of about 22,500 sq m. FEC Properties is part of a consortium with SC Global Developments and New World Development that last week tabled a top bid of close to S$410 million for the prime residential site within the Orchard Road district along Cuscaden Road under a government land sale tender. This bid, which translated to S$$2,377 per square foot per plot ratio (psf ppr), trumped eight other bidders for the site. Source from The Business Times 29 Apr 2018

26 Apr 2018

Top bids for Cuscaden site, Mattar Road site and Silat Avenue come in at S$410m, S$223m and S$1.04b respectively

SC Global Developments, FEC Properties and New World Development teamed up to table a bid of close to S$410 million for the prime residential site within the Orchard Road district along Cuscaden Road. This bid, which translated to S$$2,377 per square foot per plot ratio (psf ppr), trumped eight other bidders for the site, whose tender closed on Thursday under the confirmed list in the Government Land Sales programme. Two other sites closed at the same time under the batched tender closings announced by the Urban Redevelopment Authority. The residential site in Mattar Road saw 10 bids, with a top bid of S$223 million or S$$1,109 psf ppr hailing from FSKH Development Pte Ltd, which is a consortium of Hock Lian Seng Holdings, Keong Hong Holdings and TA Corporation. The residential site in Silat Avenue received only one bid - S$1.04 billion or S$1,138 psf ppr - from a consortium consisting of UOL, UIC and Kheng Leong Company. Source from The Business Times 26 Apr 2018

26 Apr 2018

Lakeside Towers up for public tender, with owners expecting S$305m for the development

REAL estate marketing agent Huttons Asia said that owners of Lakeside Towers have put up the 99-year leasehold project overlooking Jurong Lake Gardens for public tender and are expecting a price of S$305 million for the development. "Based on the estimated differential premium and lease upgrading premium payments of S$57 million to intensify the land and for topping up to a fresh 99-year lease, this translates to a land rate of S$1,125 per sq ft per plot ratio (psf ppr)," Huttons said. The site, which has a land area of 14,236.1 sq m or 153,237 s q ft, is zoned for residential use under the Urban Redevelopment Authority's 2014 Master Plan. With an allowable gross plot ratio of 2.1 times, the site can yield approximately 321,797 sq ft of gross floor area upon redevelopment. Said Angela Lim, deputy head of investment sales at Huttons Asia: "The site offers an excellent redevelopment opportunity for developers, as it is strategically located within a high-growth area - Singapore's second Central Business District at Jurong Lake District." The site is located close to several malls, including Jem and IMM, and is also near River Valley High School and Nanyang Technological University. Source from The Business Times 26 Apr 2018

26 Apr 2018

Jalan Besar Plaza up for public tender for a fourth time

JALAN Besar Plaza was launched for public tender for a fourth time on Thursday, said the marketing agent for the tender, Huttons Asia. The owners last put up the freehold mixed-use development for tender on Oct 10, 2017. The site, which has a land area of 4,927.8 sq m and has an existing approved GFA of 16,694 sq m, is zoned for commercial and residential use under the URA Master Plan. No development charge is payable for the site. Said Huttons: "The owners are expecting a price of S$380 million, which translates to a land rate of S$2,115 psf ppr for 40 per cent commercial use and 60 per cent residential use on the approved GFA of 16,694 sq m." The site is a five-minute drive to the CBD, and is in the vicinity of Kallang Riverside Park and Jalan Besar Stadium. The existing development is a 16-storey building with a three-storey commercial podium, and comprises 44 residential apartments and 111 commercial units. Source from The Business Times 26 Apr 2018

24 Apr 2018

Two freehold sites going en bloc

PARK HOUSE in Orchard and St Michael's Condominium in Serangoon have joined the collective sale frenzy with guide prices of S$308 million and S$112 million respectively. The S$308 million reflects a land rate of approximately S$2,387 per sq ft per plot ratio, or S$2,170 per sq ft per plot ratio after taking into consideration the 10 per cent bonus gross floor area allowed for balconies. Owners of Park House's 56 apartments, which are approximately 1,571 sq ft each, will receive at least S$5 million, while owners at the four shops, at about 1,528 sq ft each, will receive at least S$6.65 million, said marketing agent CBRE in a statement. The 46,084 sq ft freehold site has an allowable plot ratio of 2.8. Development charges are not payable as the baseline plot ratio is equivalent to about 3.66, CBRE said. Located at the junction of Orchard Boulevard and Tomlinson Road, Park House is close to malls such as Paragon, ION Orchard, The St Regis Hotel and Four Seasons Hotel, as well as the nearby Camden Medical Centre and Singapore Botanic Gardens. It was completed about 50 years ago. Jeremy Lake, managing director at capital markets at CBRE, said he expects at least eight to 10 tender bids from developers both based here and overseas in countries such as Hong Kong, Malaysia and China. "In the last few months the luxury residential market has come to life and developers are actively looking to buy prime sites and have been asking us if we have any sites in the pipeline," he said. The tender will close at 3pm on May 31. Separately, the freehold, 60-unit St Michael's Condominium off Serangoon Road has been launched for a collective sale on April 24. It is expected to fetch S$112 million with no development charge payable due to its high baseline GFA, said marketing agent Teakhwa Real Estate. Including a 10 per cent bonus balcony, which would raise the proposed plot ratio to 3.08, the land price would be about S$1,072.1 psf ppr. The tender will close on May 23 at 3pm. Source from The Business Times 24 Apr 2018

23 Apr 2018

Olina Lodge sold for S$230.9 million

THE hilltop Olina Lodge was sold on April 20 for S$230.9 million, 5 per cent higher than the reserve price of S$220 million, to Peak Opal, a related company of Kheng Leong. The sale price works out to a land rate of S$1,712 per square foot per plot ratio. Development charge will not be payable due to the high development baseline. Depending on the size of the property, which ranges from 1,281 sq ft to 2,766 sq ft, each owner at the 67-unit freehold development could receive between S$3 million to S$5 million. The development is within walking distance to the Holland Village, Commonwealth and Farrer Road MRT stations, as well as Holland Village, and Dempsey Village. Andy Gan, head of investment sales for marketing agent Singapore Realtors Inc (SRI), said: "A hilltop enclave plot in prime District 10 is rare and Olina Lodge provides an opportunity for the developer to build an exclusive new development providing a tranquil environment with panoramic views." Olina Lodge is zoned residential with a gross plot ratio of 1.6 and an allowable height of up to 12-storeys, and has a site area of approximately 84,289 sq ft. The collective sale tender for Olina Lodge was launched on March 21, 2018 and closed on April 19, 2018. Source from The Business Times 23 Apr 2018

23 Apr 2018

St Michael's Condo to be launched for collective sale for at least S$112m

ST Michael's Condominium off Serangoon Road is launching on the market on Tuesday, said marketing agent Teakhwa Real Estate. It is expecting at least S$112 million with no development charge payable for the 60-unit freehold site, which is a 10-minute walk from Boon Keng MRT and located within a 1-km radius of St Andrew's Junior School and Hong Wen Primary School. Each unit owner could bag between S$1.38 million and S$2 million. The site has a land area of approximately 35,665.4 sq ft, a plot ratio of 2.8 and an allowable height of up to 36 storeys. Including a 10 per cent bonus balcony, which would raise the proposed plot ratio to 3.08, the land price would be about S$1,072.1 psf ppr. With a maximum allowable gross floor area of about 99,863.2 sq ft, St Michael's Condominium could be redeveloped into a site with 132 apartments of about 753 sq ft per unit, subject to the approval of authorities. A potential purchaser of the site should not be affected by any future increases in DC rate if any, thanks to its high development baseline, said Teakhwa Real Estate's managing director Sieow Teak Hwa in a statement on Monday. "For its freehold tenure, excellent central location and undemanding land rate expectation, we can expect strong interest from developers for this attractive site," he said. Source from The Business Times 23 Apr 2018

23 Apr 2018

Dunearn Gardens finds collective sale success on third attempt

THE collective sale frenzy continues unabated as Dunearn Gardens, a 114-unit freehold residential development located off Newton Road, becomes the latest to be sold on its third attempt. The sale was made to a fully owned subsidiary of EL Development Pte Ltd - the property arm of building firm Evan Lim Group - for S$468 million. Dunearn Gardens comprises three adjoining residential blocks, with apartment units ranging from 75 to 306 square metres. Surrounded by Good Class Bungalows, landed homes, high rise condominiums and a 150-metre walk away from Newton MRT Station, it has a site area of 8,866.9 sq m, or 95,442 sq ft. Each apartment owner will stand to receive a gross sale price of about S$2.69 million to S$7.98 million upon a successful sale, said property consultancy Knight Frank in a statement. EL Development is expected to incur a development charge of about S$43.6 million to redevelop the site to a gross plot ratio of 2.8, based on the maximum permissible gross floor area of about 267,239 sq ft. The sale price translates to a land price of about S$1,914 per square foot per plot ratio (psf ppr), said Knight Frank. Including a 10 per cent bonus balcony which would raise the proposed plot ratio to 3.08, the land price would be about S$1,841 psf ppr, though this is subject to the authorities' approval, it added. Lim Yew Soon, EL Development managing director, said the group intends to redevelop the site into a 34-storey luxury condominium comprising 348 units, which have between one and four bedrooms. Knight Frank executive director and head of investment and capital markets Ian Loh said that the new high-rise development will enjoy unobstructed views of the city. "We believe the new development will appeal to owner-occupiers and investors given its choice location right at the city fringe," he added. Dunearn Gardens collective sale committee deputy chairman Petras Tsui noted that this was the committee's third attempt at a collective sale. He said he appreciated the strong support rendered by fellow owners, consultants and lawyers during the journey. EL Development had in January this year also acquired Singtel's Hill Street site for S$118 million, which it is planning to develop into a mid- to high-end business hotel with more than 300 rooms. Its last residential site purchase was from the government land sales programme in August 2015, which it is developing into the 752-unit condominium project Parc Riviera in West Coast Vale. There is only one returned unit left for sale in both Parc Riviera and the 660-unit condominium project Symphony Suites in Yishun, said Mr Lim. Knight Frank said it is also scheduling the launch of another collective sale site - Kemaman Point, a freehold condominium development in the vicinity of Balestier Plaza and Shaw Plaza - for sale by tender in early May. Source from The Business Times 23 Apr 2018

21 Apr 2018

Critical points for all parties when navigating collective sales

AS 2018 GEARS up to be another bumper year for collective sales, stakeholders in the collective sale process should take some time to understand their respective rights and obligations. The Land Titles (Strata) Act (LTSA), which governs collective sales in Singapore, has been substantially revised since 2007 to introduce more transparency in the collective sale process, and to make it fairer for both objecting and majority subsidiary proprietors (SP). Some key changes include: Taking into account the total area of the lots in the property, and not just the share value, held by the consenting SPs when determining whether the requisite number of SPs have consented to the sale; Allowing SPs to rescind their agreement within five days of signing the Collective Sale Agreement; Imposing restrictions on SPs attempting a new collective sale after a failed attempt. For example, if the motion for the constitution of the collective sale committee (CSC) was defeated at a prior general meeting convened for that purpose, SPs may not form a new CSC for two years; Greater guidance on the formation and proceedings of a CSC. For example, certain duties of the CSC are now expressly prescribed, such as convening a general meeting to obtain the SPs' approval for the apportionment of the sale proceeds and the terms of the CSA. When a collective sale may be refused The courts will refuse approval of a collective sale which causes an SP "financial loss" or where the transaction is not in "good faith". Under the LTSA, an SP incurs financial loss if the net proceeds from the sale of his lot are less than the original price that he paid for the lot, after taking into account "such deduction as the High Court may allow". The underlying rationale is to ensure that none of the SPs lose out financially. There is no exhaustive list of allowable deductions, but the court will deduct stamp duty paid or payable, legal fees paid by the SP when purchasing the lot, as well as CPF funds used for both the initial purchase price and monthly repayment of the principal amount of the mortgage loan. Renovation costs and early repayment penalty fees on a housing loan are, however, not allowable deductions. It is also useful to note that the "proceeds of sale" are not limited to the purchase price, and may include incentive payments which the SP shall receive from the purchaser. Whether the transaction is in good faith depends on the unique circumstances of each sale. For instance, the courts have found that the transaction was in good faith even where the CSC had committed to exclusive negotiations with a prospective purchaser to prevent the purchaser from withdrawing interest; or where the CSC had performed its duties hurriedly in order to meet statutorily prescribed timelines. Conversely, the transaction was not in good faith where the CSC had failed to disclose that certain CSC members had purchased additional units with bank financing while spearheading the sale; or where the CSC had failed to disclose to all SPs that the CSC and the marketing agent were involved in a scheme to make incentive payments to one of the objecting SPs. As a matter of prudence, CSCs and their individual members should therefore make every effort to act even-handedly, avoid conflicts of interest, fully disclose relevant information, and act conscientiously. Stakeholders should pay attention to their respective rights and duties, and seek legal advice early when confronting potential disputes, in order to better protect their interests. Source from The Business Times 21 Apr 2018

19 Apr 2018

Widening public-private home price gap may not dent upgrading demand

IS THE growing divergence in prices of resale public housing flats and private homes snuffing out the Singaporean dream of owning a condominium? While price data might underscore such fears, market watchers note that there are many mitigating factors to keep the upgrading momentum from owners of Housing & Development Board (HDB) flats going, who sell their flats to move to private housing. First, the truth be told, price indices do not tell the whole story, said Edmund Tie & Company CEO Ong Choon Fah. The HDB resale landscape has been uneven, with larger flats in mature and sought-after estates such as Toa Payoh, Bishan, Ang Mo Kio, Bukit Merah, Geylang and Queenstown holding up in prices or even registering an increase in Q4 2017 from Q4 2012, based on median resale prices published on the HDB website. Those who have owned an HDB flat for a while would still be sitting on paper gains from the uptrend since 2006, Ms Ong said, adding that the current interest rate environment remains conducive for borrowings. Even for new HDB flats bought in 2012-2013 that just crossed the five-year minimum occupation period, owners are cushioned by the housing grants they enjoyed when they bought these built-to-order (BTO) flats, Edmund Tie & Company research head Lee Nai Jia said. JLL national director for research Ong Teck Hui felt that the widening price chasm between HDB resale flats and mass-market condos does not spell the end of the road for all upgraders, though the marginal buyers who have to stretch financially for a mass-market condominium may defer upgrading plans. "Some might end up taking bigger loans and/or purchasing a cheaper mass-market condominium than originally planned," he said. The recovery in the private residential market has gathered pace since the price index published by the Urban Redevelopment Authority (URA) turned the corner in the third quarter last year, after close to four years of decline. The 3.1 per cent price jump in the first quarter, based on flash estimate, was the steepest rise after Q2 2010. Going in the opposite direction, the HDB resale price index accelerated its decline with a 0.8 per cent fall in the first quarter this year, based on flash estimate, marking its worst showing in the past 12 quarters. Clearly, if this trend were to continue or even if HDB resale prices were to recover in the upcoming quarters, the price gap between these two housing segments may widen if private home prices surge ahead on the back of developers' bullish land bids. HDB upgraders are a significant demand pool for private homes, especially mass-market condominiums. Caveats lodged suggest that buyers with HDB addresses - which include HDB upgraders as well as HDB dwellers who buy private homes for investment - account for some 35 per cent of private non-landed resales. For new launches, the proportion is not discernible from available data. But one developer source tipped that HDB addressees typically make up about 70 per cent of new private non-landed sales in the suburban or Outside Central Region, some 50 per cent in the city-fringe or Rest of Central Region, and possibly 30 per cent in the Core Central Region. PropNex Realty key executive officer Lim Yong Hock believes that aspiring upgraders would still go for private homes in the range of S$1,100-1,200 per square foot (psf). But once new launches go beyond S$1,500 psf, they may switch to the relatively cheaper resale condominiums instead. Others may turn to executive condominiums (ECs), but EC supply is currently insufficient, Mr Lim added. So far, the higher prices at new property launches have proven to be of little deterrence to home buyers, as seen in their strong take-up rates. Ms Ong observed that quantum-sensitive buyers are snapping up smaller private apartments, so developers are downsizing their units ever smaller. "Developers are selling more compact-size units to keep in check the total capital outlay for buyers," she said. The private housing market is also seeing a demand influx from owners of properties sold in recent collective sales - estimated to have so far displaced some 6,000 households and minted new millionaires since 2016. And agents say most of them do not qualify for HDB resale units because they also own another private property. Consultants differ on how long they expect the price divergence in HDB resale flats and private homes to last, with some market watchers expecting an inflexion in the HDB resale prices soon. Savills Singapore senior director Alan Cheong noted that HDB resale prices typically lags private home prices in a market upturn. He opined that an uptick in the HDB resale price index may happen as soon as in the upcoming quarters, pointing to flash estimates by SRX Property that showed a 0.8 per cent uptick in HDB resale prices in March after a 0.6 per cent drop in February. Also sanguine about HDB resale prices in the coming quarters is National University of Singapore real estate professor Sing Tien Foo. He believes that the market - with its many moving parts - will adjust itself over time. "Should the gap widen, HDB resale flats may become more attractive for those who have not made a choice on whether to buy a condo or a resale HDB," he said. But Knight Frank head of consultancy and research Alice Tan was more apprehensive. Calling this "an unhealthy development for the sandwiched class who are looking to upgrade", she felt that this may accentuate the risk of the government intervening to narrow the gap. As an illustration, a 5-room HDB owner in Bukit Merah who wants to upgrade to a two or three-bedroom private condominium of 80-100 sq m in the same area would only have to fork out another S$780,000 one year ago. Now, he has to fork out another S$900,000, Ms Tan said. "Looking at the expansion of the existing HDB stock and continued rise in private home prices, the divergence is envisaged to widen with HDB resale prices likely to continue its downward trajectory for at least another two quarters," she added. The HDB will launch another 17,000 new flats for sale this year, comparable to the 17,584 flats launched last year. The sustained roll-out of the more affordable BTO flats has also capped recovery in HDB resale transactions, which rose only 6.1 per cent last year to 22,077 flats, while private residential transactions (excluding ECs) last year surged 53 per cent to 25,010 units. Market watchers also reckon that the reminder from the National Development Minister that not all flats will be chosen for Selective En bloc Redevelopment Scheme (Sers), which pays a generous compensation to the flat owners, may have unwittingly fanned a mindset shift among some buyers. In fact, some agents have been recommending prospective buyers to go straight for private condominiums instead of trying to upgrade from an HDB flat later on. The prospect of getting a windfall from a collective sale is like a lottery draw that private home owners are entitled to, but not the HDB owners, Mr Cheong quipped. Source from The Business Times 19 Apr 2018

18 Apr 2018

Choon Kim House at Upper Serangoon on collective sale offer for over S$55m

FREEHOLD Choon Kim House, located along Upper Serangoon Road, has been launched for collective sale, its sole marketing agent JLL announced on Wednesday. Owners of the four-storey cum attic, mixed-use development are expecting bids above S$55 million. This would translate to a land rate of S$1,287 per square foot per plot ratio (psf ppr), or S$1,257 psf ppr after factoring in the 10 per cent bonus balcony for the residential component and inclusive of a development charge payable currently estimated at around S$4.9 million. JLL said the location offers an "appealing opportunity for owner-occupiers who are looking for a freehold building at a manageable quantum in a central location". Choon Kim House, located at 780 Upper Serangoon Road, was completed in the early 2000s and consists of 20 commercial units and ten residential units, with 19 basement carpark lots. The 14,988-square foot (sq ft) site is zoned commercial and residential, with a gross plot ratio of 3.0. The site could potentially support a total gross floor area (GFA) of 47,661 sq ft, inclusive of the 10 per cent bonus balcony area, or some 35 residential and 22 commercial units, assuming a 60:40 mix for the residential and commercial component, JLL said. Choon Kim House is located near Serangoon bus and MRT interchange, and is accessible by both the Central Expressway (CTE) and Kallang-Paya Lebar Expressway (KPE). Amenities like NEX mall are nearby, while schools like Paya Lebar Methodist Girls School, Maris Stella High School, St Gabriel's Primary School and CHIJ Our Lady of Good Counsel are within a 1-2km radius. Yong Choon Fah, national director of capital markets at JLL, Singapore, described the location as popular among "families and young couples who appreciate the convenience, ready amenities and one-of-a-kind dining options in the Serangoon area". She added investors could explore asset enhancement plans to "potentially increase the lettable area or convert it to a higher value use". See Also Affinity At Serangoon, Riverfront Residences, Parc Botannia, Rivercove Residences, Park Colonial Source from The Business Times 18 Apr 2018

18 Apr 2018

Asia Gardens sold en bloc for S$343m to consortium

ASIA Gardens, located along Everton Road in the Spottiswoode enclave, has been sold for S$343 million via collective sale to a consortium here led by developer Sustained Land. The other partners are builder-cum-developer Ho Lee Group and an investment holding company fully owned by Loi Pok Yen, logistics company CWT's group chief executive. Owners at the 23-storey freehold development, which has 80 apartment units and four penthouses, are expected to receive gross sale proceeds of between S$3.476 million and S$7.73 million per unit. The sale price reflects a land rate of S$1,722 per square foot per plot ratio (psf ppr). Due to the high development baseline, there is no development charge payable, which translates to S$1,565 psf ppr including the 10 per cent bonus balcony area. The development, which was completed in the late 1980s, has a land area of approximately 72,059 square feet (sq ft) and a gross plot ratio of 2.8. It is close to the Central Business District (CBD) and a short drive from Marina Bay, Clarke Quay, Orchard Road and Harbourfront, said marketing agent Edmund Tie & Company in a statement on April 17. It can potentially be redeveloped into a 36-storey residential condominium project with approximately 264 apartment units, subject to authorities' approvals. Its asking price when the tender was launched in March was S$338 million. "Asia Gardens represents probably the last freehold residential redevelopment site in the precinct," Edmund Tie & Company's senior director of investment advisory Swee Shou Fern said. "It is ideally oriented north-south facing and units in the new development will enjoy unobstructed panoramic views of the city skyline and sea beyond the Tanjong Pagar port area." Sustained Land's director Douglas Ong told The Business Times that it had fully sold its projects with over 1,000 units in total - Sturdee Residences near Farrer Park MRT, TRE Residences in Geylang (jointly with MCC Land) and Poiz Residences at Potong Pasir - and has been seeking to replenish its land bank. It led a consortium that acquired Parkway Mansion along Amber Road in an en bloc deal for S$146.99 million in December 2017. Sustained Land also bought The Albracca in a S$69.1 million collective sale in July 2017. Ho Lee Group, incorporated in 1996, has developed residential and commercial projects such as the built-to-order Mauser Factory in Tuas, The Watercolour Executive Condominium and The Heron Bay Executive Condominium. It is also involved in general building construction and specialised metal works, among other construction-related work. It is the first local deal for Mr Loi - and his largest so far - under his fully owned Penjuru Capital, which has also invested abroad in property in the United Kingdom and Japan, he told BT. Edmund Tie & Company is also handling the collective sale of Peak Court and Casa Meyfort, with their tenders closing on May 9 and May 21 respectively. Source from The Business Times 18 Apr 2018

17 Apr 2018

New private home sales up 86.5% last month from Feb

The launch of The Tapestry condominium in Tampines helped boost sales of new private homes last month but the monthly numbers were still well short of last year's. Developers moved only 716 units last month, up 86.5 per cent from the 384 units sold in February but nearly 60 per cent below the 1,780 new homes taken up in March last year. Mr Ong Teck Hui, JLL national director, said: "The 716 sold in March seems like a slow pick-up but it is the month after Chinese New Year, which was in mid-February. "In 2017, Chinese New Year was in late January and we also saw a modest pick-up in the following month, when 979 units were sold. "However, market activity resumed more robustly in March 2017, with 1,527 units launched and 1,780 units sold." Yesterday's figures, which come from Urban Redevelopment Authority (URA) surveys of developers, exclude executive condominium (EC) units.     The preliminary tally of new private home sales for the first quarter stands at 1,627 - down 12.7 per cent from the fourth quarter of last year and a decline of 45.1 per cent year on year. Final figures for the quarter will be out on April 27. City Developments moved 329 units at The Tapestry last month at a median price of $1,408 per sq ft (psf), making it the top-selling project. This was followed by Grandeur Park Residences in Bedok South Avenue 3, with 40 units sold last month at a median price of $1,532 psf. The data out yesterday also showed that developers sold 72 EC units last month - a 21.7 per cent decline from February and also a drop of 87.5 per cent year on year. Last month's best-selling EC project was Signature at Yishun, with 39 units moved at a median price of $789 psf, followed by Northwave in Woodlands, with 19 homes transacted at a $843 psf median price. Mr Ong of JLL expects a pickup in launches and sales of private houses this month, with the market becoming more active. "Several projects have already been launched including... The Verandah Residences and Park Place Residences at Paya Lebar Quarter (Phase 2), with others in the launch pipeline." The Verandah Residences in Pasir Panjang sold 129 of its total of 170 units on the first weekend of sales on April 7 and 8. At Park Place Residences, 149 units were transacted in the first weekend of its Phase 2 launch, also on April 7 and 8. Analysts expect EC sales to be boosted this month from last weekend's launch of Rivercove Residences in Sengkang. Nearly 80 per cent, or 499 of the 628 units in the project, have been sold at an average price of $965 psf. Huttons Asia research head Lee Sze Teck noted: "Buyers who have been sitting on the fence might enter the market for fear of missing the boat after the first quarter 2018 flash estimates from the URA showed the steepest rise in its overall private home price index since (the second quarter of) 2010." The URA's price index rose 3.1 per cent in the first quarter over the last three months of last year. Source from The Straits Times 17 Apr 2018

09 Apr 2018

Oxley sells 76% of The Verandah Residences at S$1,815 psf average at launch

OXLEY Holdings sold 129 units, or 76 per cent, of the 170-unit The Verandah Residences over the weekend launch of the freehold condominium near the South Buona Vista neighbourhood. The units were sold at an average of S$1,815 per square foot (psf). Oxley said that demand was particularly strong for the one- and two-bedroom units in the project, which comprises 167 apartments and three strata houses. All one-bedroom, one-bedromo with study, two-bedroom and two-bedroom premium units were sold out at the launch. Of the buyers, 85 per cent were Singaporeans, while the remaining 15 per cent comprised permanent residents and foreigners. The site sits at the junction of South Buona Vista Road and Pasir Panjang Road. Oxley purchased the 89,620 sq ft site in July 2017 for S$121 million, or S$964 psf per plot ratio. The project is expected to be completed in the fourth quarter of 2023. "The market response to the Verandah launch has been very encouraging. There were a lot of enquiries for the project before the launch, and the sales progress proved that the pent-up demand was real, especially for quality projects with excellent location and reasonable prices," Oxley chairman and chief executive Ching Chiat Kwong said in a statement. Source from The Business Times 9 Apr 2018

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