Market News

31 May 2018

URA, HDB release sale sites at Dairy Farm Road, Sims Drive and Tampines Avenue 10

HE Urban Redevelopment Authority (URA) and the Housing & Development Board (HDB) have released three sites with residential components for sale at Dairy Farm Road, Sims Drive and Tampines Avenue 10 under the first half of the 2018 Government Land Sales (GLS) Programme, the authorities announced on Thursday.  For sale is one Confirmed List site at Dairy Farm Road launched for residential development with commercial uses at the first storey. This land parcel has a site area of 19,647.5 square metres (sq m), with a 99-year lease period, and a permissible gross floor area (GFA) of 41,260 sq m. The project completion period is five years, and tender for this development will close at 12 noon on Sept 4.  Separately, the URA residential site at Sims Drive and the HDB executive condominium site at Tampines Avenue 10 are available for application under the Reserve List. This means developers can trigger the tender of these sites if they indicate interest with bid commitments acceptable to the URA. The development at Sims Drive has a site area of 16,225.3 sq m, with a lease period of 99 years, and a permissible GFA of 48,676 sq m. Project completion period also stands at five years, or 60 months.  Lastly, the executive condominium at Tampines has a site area of 2.56 hectares (25, 600 sq m), and a proposed gross plot ratio of 2.8.    Taken together, these three sites can yield about 1,880 residential units, the URA and the HDB said in a joint statement.  Source from The Business Times 31 May 2018  

24 May 2018

72-unit condo complex Balestier Regency up for sale for S$218m

BALESTIER Regency, a 72-unit condominium complex off Balestier Road, has been launched for collective sale by tender and is expected to fetch some S$218 million, marketer Teakhwa Real Estate said on Wednesday. This indicative price translates to a land rate of S$1,264.9 per square foot per plot ratio (psf ppr), including a development charge of S$1.35 million. The land price will be reduced to about S$1,220.9 psf ppr, if the 10 per cent bonus balcony area is included. Owners can expect to receive proceeds ranging from S$2.82 million to S$3.05 million. In addition, the 61,951.8 sq ft freehold residential site has a plot ratio of 2.8, and an allowable height of up to 36 storeys. Subject to approval from the relevant authorities, the maximum allowable gross floor area (GFA) of 173,408.9 sq ft could potentially yield about 230 apartments with an average size of 753 sq ft per unit for the new condominium development, Teakhwa Real Estate said. The property is located next to Shaw Plaza, a five-storey shopping mall which houses Shaw Theatres, NTUC FairPrice and fast food outlets including KFC and McDonald's. It is also within 1km of Hong Wen Primary School, and within 2km of St Joseph Institution (Junior) and CHIJ Toa Payoh. "For its central city location, freehold tenure, huge land size and undemanding land rate expectation, we can expect strong interest from developers for this attractive site," said Sieow Teak Hwa, managing director of Teakhwa Real Estate. The tender for Balestier Regency will close on June 21 at 3pm. Separately, Nicholas Mak, executive director of property consultancy ZACD Group, noted that Balestier Regency is the second condo in the area to be put up for collective sale this month. On May 9, marketing agent ERA Realty Network announced that Ava Towers, a 124-unit condo on Ava Road in Balestier was placed for en bloc sale at a reserve price of S$248 million. The translates to a land rate of about S$1,374 psf ppr. The property has a sizeable land area of about 64,471 sq ft, and is similarly zoned for residential use with a gross plot ratio of 2.8. But if a 10 per cent bonus GFA for balconies is included, the land rate would be reduced to S$1,274 psf ppr, after factoring in about S$5.03 million in development charge. The tender for Ava Towers opened on May 16, and will close on July 2. Source from The Business Times 24 May 2018

17 May 2018

Chancery Court at Dunearn Road sells en bloc for S$401.78m, 6% higher than reserve price

CHANCERY Court, a privatised HUDC estate across the road from Anglo-Chinese School (Barker Road), has fetched S$401.78 million in a collective sale tender or 6 per cent higher than its reserve price, its sole marketing agent OrangeTee Advisory said on Thursday. The identity of the buyer was not disclosed. The winning bid for the Dunearn Road site translates to a land price of about S$1,610 per square foot per plot ratio (psf ppr), after factoring in a differential premium and lease upgrading premium of some S$182.4 million. This is to redevelop the site to a gross plot ratio (GPR) of 1.4, based on the maximum permissible gross floor area (GFA) of 362,788 sq ft, and to top up the lease to a fresh 99 years. The estate comprises a 16-storey tower block and seven blocks of four-storey walk-up maisonettes on a site area of approximately259,134 sq ft. The owners of the 136 apartments and 8 commercial units stand to receive a gross sale proceeds of S$1.8 million to S$3.5 million and S$934,000 to S$4.7 million respectively. The 99-year leasehold site in prime District 11 is also a five-minute walk to Newton MRT station, near landed estates and Good Class Bungalows, within 1km of St Joseph's Institution Junior and less than 2kmof Singapore Chinese Girls' Primary School. Subject to authorities’ approval, the site can be redeveloped into a 5-storey residential development with a maximum of 481 units, based on average size of 70 square metres, said OrangeTee Advisory. "A pre-application feasibility study on traffic impact was commissioned by us and it has provided certainty to developers during the bidding process," said the firm. It added that the recent collective sale sites sold along Bukit Timah Road, Dunearn Road and Balmoral Road have exhibited developers’ confidence in the prime locality. With the sale of Chancery Court, only five of 12 former HUDC estates remain for now - Ivory Heights, Pine Grove, Laguna Park, Braddell View and Lakeview. All five are in various stages of the collective sale process. Source from The Business Times 17 May 2018

17 May 2018

Cavenagh Gardens, Flynn Park, Rosalia Park join bandwagon

THE collective sale fever continues, as JLL launched five freehold residential sites with a total value of over S$1.2 billion. The five sites are Cavenagh Gardens off Orchard Road; Flynn Park in Pasir Panjang; Rosalia Park near Serangoon Central; La Ville at Tanjong Rhu Road; as well as the joint sale of three single-storey detached houses at Lorong H Telok Kurau. The three houses at Telok Kurau are owned by three families and do not require approval from the Strata Titles Board. Cavenagh Gardens - at a minimum price of S$480 million - has the biggest price tag of the five sites, which translates to a price per square foot (psf) of S$1,640. The property is in District 9 and close to Orchard Road. Low-rise Flynn Park at Yew Siang Road, which is going at a minimum price of S$363.8 million, can be developed to offer views of the sea, JLL highlighted. Rosalia Park at Lorong Ong Lye has a minimum price of S$175 million, and a new development could attract "potential upgraders" from the surrounding area of HDBs. The high-rise La Ville in the Tanjong Rhu area has a minimum price of S$152 million or S$1,540 psf. It is close to the Singapore Sports Hub, Gardens by the Bay, the East Coast Park as well as the Singapore Indoor Stadium. The total minimum asking price for the three houses at Telok Kurau is S$36-38 million. Tan Hong Boon, regional director at JLL, expects "keen interest" for the sites from both local and foreign developers and investors. He said: "There is still strong demand for residential land given that the prices of private residential properties have reached the lowest point . . . They look set for further upswing over the medium term. Developers, encouraged by their recent strong sale performances at new price levels, will continue their land acquisition efforts." He also highlighted that 26 sites amounting to S$8.33 billion have sold over the past four-and-a-half months, close to the S$8.79 billion sold for the whole of 2017. Source from The Business Times 17 May 2018

16 May 2018

Owners of Trendale Tower in prime Cairnhill enclave asking for S$163.5m in collective sale

ANOTHER residential development in the prime Cairnhill enclave of District 9 has been put up by its owners for collective sale. Trendale Tower, a 20-storey freehold development housing 18 apartments of 298 sq m each, has been launched for sale with a reserve price of S$163.52 million on Wednesday. This translates to a land rate of S$2,250 per square foot per plot ratio (psf ppr) over a verified gross floor area of 72,690 sq ft (or equivalent gross plot ratio of approximately 3.34). Its breakeven pricing is estimated around S$3,000 psf, said its marketing agent Savills Singapore. The neighbouring 61-unit Cairnhill Mansions was sold at a land rate of S$2,311 psf ppr in a collective sale in February this year to Low Keng Huat (Singapore). Another nearby freehold development Cairnhill Astoria will be launched for collective sale on Thursday via public tender for S$196 million, or a land rate of S$1,964 psf ppr if an estimated development charge of S$16.34 million is factored in. Located along Cairnhill Road near its junction with Scotts Road, Trendale Tower occupies a land area of 2,016.8 sq m (or 21,708 sq ft). It was completed in the 1980s, enjoying good connectivity to expressways, and is within walking distance to the Newton MRT Interchange station for the North-South Line and Downtown Line. Under the 2014 Master Plan, the Trendale Tower site is zoned for residential use with a gross plot ratio of 2.8. Subject to approvals from the relevant authorities, the plot may be developed up to 36 storeys with an allowable gross floor area of 6,753.2 sq m (72,690 sq ft) with no development charge. "Trendale Tower presents an attractive offering for developers to acquire a Core Central Region site with spectacular views of the Orchard skyline and lush green of Goodwood Hill at an affordable investment quantum," said Suzie Mok, senior director of Investment Sales at Savills Singapore who is handling the sale. "With interest building up in the high-end residential segment, this site offers long-term strategic value and capital value upside potential." "Prices for prime properties in Singapore are recharging itself for a major upward push. In this new pricing regime, benchmark prices achieved in the 2007-2012 period are either matched or perhaps re-rated higher," said Alan Cheong, head of research at Savills Singapore. The tender for Trendale Tower will close at 3 pm on June 25. Source from The Business Times 16 May 2018

12 May 2018

Prime districts enter the collective sales fray in 2018

AFTER making its way through the suburbs and city fringe last year, the collective sale fever is sweeping homes in Singapore's prime districts this year, helping to push this year's sale value for residential sites above levels seen last year. So far this year, there have been 15 residential collective sales valued at S$4.44 billion in the Core Central Region (CCR), which comprises Districts 9, 10 and 11, the downtown core and Sentosa. This surpasses the eight deals worth S$1.05 billion transacted in the whole of 2017, said Colliers International. On May 10, the sale of Villa D'Este in Dalvey Road for S$93 million pushed the total transaction value in residential collective sales sites this year to over S$8.2 billion, higher than last year's S$8.13 billion. The latest sale took place at Thomson Road's Peak Court, which went for S$118.88 million to a joint venture between Tuan Sing Holdings and Rich Capital. This works out to a land rate of $1,558 per square foot per plot ratio (psf ppr). The total value for residential collective sales this year now stands at over S$8.3 billion, including Peak Court. More prime sites are trying to join the party. The tender for Park House in Orchard Boulevard, has a S$308 million guide price; Holland Tower, with a S$65 million reserve price, will close end May. Cavenagh Gardens will launch its tender next week at around S$1,600 psf ppr, while Trendale Tower in Cairnhill will launch its tender on May 17 at above S$2,000 psf ppr. Horizon Towers on Leonie Hill Road has garnered about 75 per cent mandate from its owners. Oxley Gardens condo has formed its sales committee, while Hillcrest Arcadia in Bukit Timah will hold a second EOGM this Sunday. Tricia Song, head of research for Singapore at Colliers, said: "The gathering pace of price recovery and improved market sentiment in the high-end residential property segment in recent quarters have boosted confidence among en bloc sellers to put their prime properties up, and developers to acquire prime sites to position themselves to capture further growth in the market." Urban Redevelopment Authority (URA) data shows that non-landed home prices in the CCR rose 5 per cent in the first quarter. Christine Li, senior director of research at Cushman and Wakefield, said the successful launches of new projects such as New Futura at strong pricing have also helped. She said: "There had previously been an undersupply of freehold units in the pipeline in 2017. Developers seized the opportunity to correct the undersupply by capitalising on the abundance of freehold sites in the CCR." Last year, sites in the suburbs and the city-fringe such as Tampines Court (S$970 million), Amber Park (S$906.7 million) and Normanton Park (S$830.1 million) dominated the year's collective sales. Ms Li described the year's focus on sites outside the prime district as historically unusual, going by how the CCR had heated in the mid-2000s en bloc cycle. Colliers' data showed that in 2006, there were 54 residential collective sales deals worth S$6.5 billion in CCR - 81 per cent of such all transactions in the year. The following year, 50 such deals worth S$8.2 billion, or 71 per cent, were sealed. Analysts said the cooling measures imposed in the following years curbed the speculative investments and purchases by foreigners that had driven the collective sales frenzy in the mid-noughties. Tay Huey Ying, head of research and consultancy in Singapore at JLL, said: "These have the effects of channelling home demand to the mass-market segment, which fuelled developers' initial interest in suburban collective sales sites last year." Another reason last year's collective sales fervour started outside the CCR lay in the limited number of sites offered on the Government Land Sales (GLS) programme, said Ms Song of Colliers. This year's return of collective sale activity to the prime market "reflects developers' growing confidence in the broadening of the recovery in the home sales market, and their positive mid-term outlook for the prime home market segment", said Ms Tay. Ms Li of Cushman & Wakefield said that there could be further sustained increases of CCR prices in the short-term, as owners seek replacement properties. "Buying momentum will be sustained due to the effect of recycling of capital, which may also help to lift the prices of landed properties as landed properties have been lagging in terms of the rebound." Still, it does not necessarily mean that the non-prime region is being shunned. Overall sentiment is still buoyant for suburban locations, with new home sales at developments such as The Tapestry and Twin VEW setting benchmark prices with high transaction volumes, said Ms Li. "I think interest in suburban land sites is sustained over the short to medium term, although developers might veer towards government land sites in the suburbs," she said. Ms Song of Colliers added: "I think developers will still be interested in selected OCR (Outside Central Region) sites, provided the location is not already being fulfilled by government land sales, and the site has attractive attributes." Ms Tay of JLL added: "Generally speaking, with the surge in the number of sites available for sale, as well as those in the pipeline, developers can now cherry pick. "Thus, (both prime and suburban) sites with attractive attributes, including lower supply pipeline vis-à-vis demand, and realistic pricing, will enjoy a higher success rate than others." Source from The Business Times 12 May 2018

11 May 2018

Peak Court sold en bloc for S$118.88 million

PEAK Court, a freehold residential site at Thomson Road, has been sold by way of a collective sale for S$118.88 million to Rich Capital Holdings and Tuan Sing Holdings. Rich Capital will hold a 30 per cent stake while Tuan Sing will hold the remaining 70 per cent. The acquisition will be conducted through a joint-venture company, TSRC Novena. Peak Court, a 35-year-old development comprising a four-storey block with a total of 20 maisonette units, occupies 57,378 sq ft of land. Based on the gross plot ratio of 1.4, the purchase price of the site works out to about S$1,558 per sq ft per plot ratio. In a press statement on Friday, the buyers said the site can be redeveloped into 106 units of one, two and three-bedroom apartments overlooking a two-storey landed enclave. "This acquisition marks our maiden foray into the Singapore residential property sector and our first en bloc purchase, as we seek to establish our new identity as a property developer," said Kelvin Soong, executive director of Rich Capital, which was formerly known as Infinio Group. "The Thomson area is sought after for its proximity to highly popular schools, Orchard Road and the central business district and we believe that there is good upside for redeveloped properties in this vicinity." The acquisition and redevelopment of the project is expected to be funded through a combination of internal resources and bank borrowings. Source from The Business Times 11 May 2018

07 May 2018

CSC Land sells 85% of Twin Vew units on launch weekend

CSC LAND Group saw a "strong response" at the weekend launch of Twin Vew in West Coast Vale, the Chinese developer's head honcho has said. Buyers snapped up 442 of the condominium's 520 apartments - including four of its six penthouses - for a take-up rate of 85 per cent. They coughed up an average sales price of S$1,399 per sq ft (psf) for the 99-year leasehold development, which is expected to be ready by the fourth quarter of 2021. Just down the road, EL Development's Parc Riviera debuted at an average of S$1,150 psf in late 2016. CSC Land chairman Li Xiao Qian said in a media statement: "We are very encouraged by the strong response this weekend . . . From this weekend's sales figures alone, all unit types have been very well received, demonstrating the diversity offered by Twin Vew. We are confident that this momentum will continue." Two 36-storey towers will house one- to four-bedders from 484 sq ft to 1,518 sq ft, as well as the penthouses. Indicative prices started at S$650,000 for a one-bedroom apartment. Promotional materials have also advertised two shops and a childcare centre on site, along with "sky terraces" and other amenities such as swimming pools and a gym. Twin Vew is the maiden residential project from CSC Land. Its parent, construction juggernaut China Construction (South Pacific) Development, paid S$592 psf per plot ratio (ppr) for the site in a nine-way fight last year. Most of the home buyers at Twin Vew's launch were Singapore citizens and permanent residents, with nine units bagged by foreign nationals from China, Indonesia and Europe. ERA property agent Jason Chen, who told The Business Times that he has sold two one-bedroom units, noted the project's proximity to both the Jurong Lake District and the planned Kuala Lumpur-Singapore high-speed rail's terminus. "One other selling point is that an adjacent land parcel was bought by City Developments Ltd (CDL) for about S$200 higher" on a unit basis, Mr Chen added. CDL paid S$800 psf ppr for a West Coast Vale site at a state tender in January. CSC Land was the runner-up in that auction. Mr Chen said that the higher price tag for the recent parcel might have induced bargain hunters to snap up Twin Vew units while they could. Source from The Business Times 7 May 2018

02 May 2018

Holland Tower offered for en bloc sale with S$65m reserve price

OWNERS of the 19-unit Holland Tower condominium near the Holland Village neighbourhood have put their site up for collective sale by tender with a reserve price of S$65 million. The freehold site at 10 Holland Heights occupies a land area of about 21,871 square feet, or 2,031.9 square metres. The marketing agent, Singapore Realtor Inc, said that the site sits within a district zoned for good-class bungalows, but that developers may redevelop the site to its current intensity subject to approval from authorities. Singapore Realtor said that the reserve price works out to S$1,489 per sq ft per plot ratio (psf ppr), which implies that the site has a maximum allowable built up area of about 43,650 sq ft, or a plot ratio of about two times. Recent sales in the upscale District 10 region include Olina Lodge at S$1,712 psf ppr, Tulip Garden at S$1,790 psf ppr and Hollandia at S$1,703 psf ppr. "Holland Tower offers the successful tenderer the opportunity to develop a unique product of exceptional quality with sweeping views over the luscious greenery," Singapore Realtor head of investment sales Andy Gan said in a statement. Source from The Business Times 2 May 2018

02 May 2018

Margate Point in Katong up for sale in maiden en bloc attempt with S$38m minimum expected price

MARGATE Point, a 15-unit apartment development at Margate Road, has been put up for sale by tender in its maiden en bloc attempt at a minimum expected price of S$38 million. To-date, owners representing 14 out of 15 of the apartments have already inked their consent to the collective sale. Should the last unit's consent be obtained, the owners can bypass the Strata Titles Board application process and work towards legal completion taking place within three months of contract. This was announced by real estate professional services firm JLL on Wednesday. JLL has been appointed to market the property. Located off Meyer Road and Mountbatten Road, Margate Point has a land area of about 12,800 sq ft and is zoned "residential" with an allowable gross plot ratio (GPR) of 2.1 under the 2014 Master Plan. Subject to design and approval from the relevant authorities, the site may be redeveloped into a maximum of 35 apartments with an average size of 70 sq m per unit, said JLL. Karamjit Singh, senior consultant at JLL, said: "Margate Road happens to be the dividing line that segregates the high-rise residential zone from the safeguarded two-storey landed estate. "When redeveloped, the new high-rise development at Margate Point's site would stand to enjoy excellent, unobstructed views across the vast Meyer Road and Goodman Road landed zones, until the low-rise residential areas in Joo Chiat. The stunning views, combined with its central Katong location and its close proximity to a future MRT station, would be sought-after selling points." He added that subject to confirmation on the property's development baseline, Margate Point's reserve price translates to a land rate of about S$1,417 per sq ft per plot ratio for a redevelopment up to GPR 2.1 - before any bonus gross floor area for balconies - which is "reasonable", in view of the transacted prices and asking prices of other land parcels in the vicinity. Source from The Business Times 2 May 2018

01 May 2018

Extension charges on unsold homes no longer an issue

DEVELOPERS are paying "almost nothing" in extension charges this year, said Sim S Lim, Singapore Land Authority chairman on Monday. It's an indication of the hot property market which includes purchases of replacement homes from en bloc sellers, said Mr Lim who was speaking to The Business Times on the sidelines of DBS Group Holdings' Q1 2018 results briefing. Mr Lim is also DBS Bank Singapore country manager. The previous year's extension charges or qualifying certificate (QC) penalties paid by developers was some S$50 million, said Mr Lim. QC rules require all foreign developers, defined as having at least one foreign shareholder and/or director, to finish building their projects within five years of acquiring the site; they also have to sell all the units within two years of obtaining the temporary occupation permit. If they fail to meet the deadline, the penalties are punitive. They incur extension charges at 8 per cent of the land purchase price pro-rated based on the number of unsold units in the first year; this goes up to 16 per cent in the second year and 24 per cent a year in the third and subsequent years. The purpose of the QC is to ensure that foreign companies proceed to complete the development and sell off the completed units, so as not to speculate in and hoard residential land. Developers also face the penalty of paying additional buyer's stamp duty (ABSD) on land cost if they are left with even a single unsold unit in a residential project after five years from land purchase date. As at end-2017, they had coughed up S$200 million in ABSD and S$180 million in qualifying certificate (QC) extension charges since the regimes were introduced, according to figures provided by the Ministry of National Development in February. Pressures on developers' unsold inventory have eased as private home sales staged a strong recovery, which has also lifted prices. Some analysts are predicting double-digit growth for private home prices this year, after prices clocked a 3.9 per cent jump in Q1, beating the flash estimate of 3.1 per cent. This was the steepest quarter-on-quarter gain since Q2 2010, when the index gained 5.3 per cent. Based on Cushman & Wakefield research done over a year ago, the total amount payable by developers for units unsold could potentially hit S$664 million for 2017, said Christine Li, senior director at Cushman & Wakefield Singapore research. "Since then with the primary market drastically improving, out of the projects with outstanding unsold units, 67 per cent of them have cleared all the units before the deadline," she said. "Extension charges are not going to pose significant downside risk to the balance sheet of the developers. "Given that half of all new home launches in 2018 registered more than one-third of sales within the first month of launches, developers are very confident of meeting the sales deadline," she said. Property consultants have said a lot of new purchases are by displaced home owners who sold their homes in collective sales. Total number and value of collective sales year-to-date in 2018 from 23 projects, worth S$8.1 billion is almost similar to full-year 2017, said Ms Li. The total number and value of collective sales in 2017 was 28 projects worth S$8.2 billion. Source from The Business Times 1 May 2018