Market News

29 Jun 2018

Canberra Link EC site likely to see hot bidding

The scarcity of land parcels released to build executive condominiums (ECs) could see developers turning their attention to the plots in Canberra Link and Anchorvale Crescent under the Government Land Sales (GLS) programme, consultants say. The Canberra Link site was launched yesterday for sale under the confirmed list of the H1 2018 GLS programme, while the site in Anchorvale Crescent was released for application under the reserve list. Sites on the reserve list will be put up for tender only when a developer has indicated a minimum price that is accepted by the Government. They join a private residential site in Jalan Jurong Kechil, for sale on the confirmed list, and another site in Clementi Avenue 1, under the reserve list. Together, these four sites can yield about 1,920 residential units. "Demand and supply dynamics of the EC market (depleting unsold stock and limited sites for EC development), coupled with proximity to the future Canberra MRT station, which is slated to open by December 2019, are factors that strengthen the attractiveness of the Canberra Link EC site over the Jalan Jurong Kechil site," said JLL head of research and consultancy Tay Huey Ying. Huttons Asia head of research Lee Sze Teck said the proximity to the future Canberra MRT station is a key selling point for the Canberra Link EC site. So far this year, only one EC project, Rivercove Residences in Sengkang by Hoi Hup Realty and Sunway Developments, has been launched and it is a near sell-out. Another EC site on the confirmed list, in Tampines Avenue 10, is slated to be launched for tender in October. With no new launch of EC projects for the rest of this year, interested buyers will either have to choose from unsold units or wait for the Sumang Walk EC project by the City Developments-TID Residential joint venture next year. "The top bid for the Canberra site might come up to between $450 and $500 per sq ft per plot ratio (psf ppr)," said Mr Lee. ZACD executive director Nicholas Mak noted that while developers are spoilt for choice with the many collective sale sites currently on offer in the private land sale, some prefer the relatively simpler and quicker land acquisition process for GLS sites. OrangeTee & Tie head of research and consultancy Christine Sun is also expecting the EC site in Anchorvale Crescent on the reserve list to attract bidders who see strong buying demand, given the growing pool of HDB upgraders in the north-east region. More HDB flats in Sengkang and Punggol have reached the minimum occupation period in recent years. The tender for the land parcels in Jalan Jurong Kechil and Canberra Link will close at noon on Sept 4. Source from The Straits Times 29 Jun 2018

29 Jun 2018

Canberra Link EC site likely to be hotly contested

THE scarcity of land parcels released to build executive condominiums (ECs) could turn developers' attention to plots in Canberra Link and Anchorvale Crescent under the government land sales (GLS) programme, consultants say. The Canberra Link site was launched on Thursday for sale under the Confirmed List of the H1 2018 GLS programme, while the site in Anchorvale Crescent was released for application under the Reserve List. Sites on the Reserve List will be put up for tender only when a developer has indicated a minimum price that is accepted by the government. On Thursday, the government also launched a private residential site at Jalan Jurong Kechil for sale on the Confirmed List and released another site at Clementi Avenue 1 under the Reserve List. Together, these four sites can yield about 1,920 residential units. "Demand and supply dynamics of the EC market (depleting unsold stock and limited sites for EC development), coupled with proximity to the future Canberra MRT station which is slated to open by December 2019 are factors that strengthen the attractiveness of the Canberra Link EC site over the Jalan Jurong Kechil site," said JLL head of research and consultancy Tay Huey Ying. Huttons Asia head of research Lee Sze Teck said proximity to the future Canberra MRT station is a key selling point for the Canberra Link EC site. "There are not many sites for EC developments that are within walking distance to MRT stations. Furthermore there is strong demand for ECs in the market," he said. So far this year, only one EC project - Rivercove Residences in Sengkang by Hoi Hup Realty and Sunway Developments - has been launched and is a near sell-out. Another EC site on the Confirmed List, at Tampines Avenue 10, is slated to be launched for tender only in October. Mr Lee estimated the number of unsold EC units in launched projects as of Thursday at around 40. With no new launch of EC projects for the rest of this year, interested buyers will either have to make their choice among the unsold units or wait for the Sumang Walk EC project by the City Developments-TID Residential joint venture next year. "The top bid for the Canberra site might come up to between S$450 and S$500 per square foot per plot ratio (psf ppr)," he added. ZACD executive director Nicholas Mak noted that while developers are spoilt for choice with the many collective sale sites currently on offer in the private land sale market, there is a relatively longer due diligence and legal process to acquire private land. "Furthermore, there is always the risk of protracted legal tussles in enbloc sales. Therefore, some developers would prefer the relatively simpler and quicker land acquisition process for GLS sites," he said. Mr Mak also concurred that the potential shortage of new EC units in the primary market in the next 12 to 18 months may cause the EC site at Canberra Link to be highly contested, drawing about 10 to 16 bids. "A reasonable top bid in the tender for this site could range from S$194 million to S$243 million (S$400-500 psf ppr). However, it would not be surprising if a very bullish developer were to submit a similar bid to the top bid for the Sumang Walk site, surpassing S$267 million or S$550 psf ppr." The tender for the land parcels at Jalan Jurong Kechil and Canberra Link will close at noon on Sept 4. OrangeTee & Tie head of research and consultancy Christine Sun is also expecting the EC site at Anchorvale Crescent on the Reserve List to attract bidders who see strong buying demand given the growing pool of HDB upgraders in the north-east region. More HDB flats in Sengkang and Punggol are reaching minimum occupation period (MOP) in recent years. While most consultants find Jalan Jurong Kechil to be relatively less attractive due to its distance from Beauty World MRT station, about 900 metres away, Ms Sun begged to differ. She felt that there has not been a GLS site launched in the west for a while and going by past records, the take-up of new launches in the west has been strong. "Current stock is also quite low in the region, indicating that demand for new homes will be healthy for that area," she said. Some consultants are also expecting the private residential site at Clementi Avenue 1 on the Reserve List to be triggered for sale given that it is located in a mature estate with plenty of amenities and good schools. Source from The Business Times 29 Jun 2018

28 Jun 2018

Govt keeps H2 GLS housing supply on par with H1

THE government is seen taking a balanced approach in ensuring adequate residential land supply in the second half of this year to meet homebuyers' demand without exacerbating a potential supply glut, consultants say. It has kept residential land supply in the second half of 2018 under the government land sales (GLS) programme on par with that in the first half of this year, again preferring to keep the majority (66 per cent) of total residential land supply under the Reserve List to be triggered for sale only by market forces. Six sites on the Confirmed List for H2 2018 comprise four private residential sites, including one executive condominium (EC) plot, one "white" site and one hotel site. They can collectively yield 2,705 private residential units (including 695 executive condominium or EC units), 42,200 square metres of gross commercial space and 390 hotel rooms. A "white" site is a land parcel where developers are free to decide on the mix of uses and the respective quantum of floor space of each use as long as the total permissible gross floor area (GFA) is maintained for the whole development. Another nine sites are placed under the Reserve List for H2 2018. These will be triggered for sale if a developer's indicated minimum price in his application is acceptable or there is sufficient market interest in the site. These Reserve List sites comprise seven private residential sites - including one EC site, and two "white" sites. They can collectively yield 5,335 private residential units (including 515 EC units), 82,000 sq m of gross commercial space and 540 hotel rooms. All in, sites under the Confirmed List and Reserve List can yield up to 8,040 private residential units, 124,200 sq m of commercial GFA and 930 hotel rooms, the Urban Redevelopment Authority (URA) said on Wednesday. The residential land supply in H2 2018 GLS is similar to that in H1 2018 when the government made available 2,775 residential units under the Confirmed List and 5,270 units under the Reserve List. OrangeTee & Tie head of consultancy and research Christine Sun noted that despite a sizeable number of new supply that can come from the recent collective sales, "the government has probably chosen to maintain the land supply as they want to control the escalating property prices by injecting a reasonable number of new units without causing an oversupply situation". The URA's explanation threw light on such a view. In the supply pipeline are around 20,000 units from GLS and en-bloc sale sites pending planning approval, on top of the 24,000 unsold units from projects with planning approval. In addition, more than 30,000 existing private housing units remain vacant. But demand for land from developers remain strong while transaction volumes are rising, the URA said. "Taken together, the total supply in the pipeline will be able to meet homebuyers' demand over the next one to two years, and to meet our population's housing needs. The government will continue to monitor the property market closely and adjust the supply from future GLS programmes, when necessary." But Huttons Asia head of research Lee Sze Teck felt it is puzzling that there has not been an increase in land supply for ECs in H2 2018 despite evidence showing strong demand for such projects. "The timing of the launch of the EC site in October will only exacerbate the tight supply of ECs." JLL national research director Ong Teck Hui noted that the focus for residential GLS sites seems to be in the central region, which accounts for 79 per cent of collective sale sites sold in H1 2018 to-date. "Although the three GLS sites (on the Confirmed List) could help to meet demand from developers, it is uncertain as to whether they will mitigate optimistic land prices," he added. "They are also unlikely to dilute demand for collective sale sites, especially those in the prime districts for which there is keen interest." For commercial land supply, there is a jump in both the Confirmed and Reserved List of H2 2018 - representing a 94 per cent surge in total commercial GFA compared to H1 2018. Consultants note that there has been no major GLS commercial site near Pasir Ris MRT station sold since 1993. Hence, the "white" site at Pasir Ris Central on the Confirmed List is likely to garner healthy interest from the big developers or consortiums as well as those with strong retail expertise. The two "white" sites on the Reserve List for the second-half of 2018 are located at Woodlands Square/Woodlands Avenue 2 and Marina View. CBRE head of research for Singapore and South-east Asia Desmond Sim noted that the Woodlands site can re-emphasise the focal point of the Woodlands Square vicinity, especially with the Johor Bahru-Singapore Rapid Transit System link in place and the future development of the North Coast Innovation Corridor. For the first time in five years, the government is also offering hotel room supply in its GLS programme amid rosier tourism outlook for Singapore in the next few years. This came on the back of a 6.2 per cent growth in international visitor arrivals last year to 17.4 million visitors. "Given the bright tourism prospects ahead, we believe the hoteliers would be very keen on the hotel offerings on both the Confirmed List and Reserve List," said Govinda Singh, executive director of valuation and advisory for Asia at Colliers International. "The Club Street plot sits within a high demand area in Chinatown for both corporate and leisure and plugs well into the rejuvenation of the Tanjong Pagar district nearby," Mr Singh said. "The Marina View White Site also presents good opportunities, being in the prime downtown, which has been earmarked as an exciting waterfront destination in the future." Consultants pointed out that several other sites on the Reserve List look attractive and could be triggered for sale. OrangeTee & Tie's Ms Sun cited residential sites at Dairy Farm Walk, Clementi Avenue 1 and Anchorvale Crescent EC as having the potential of being triggered by developers for sale. ZACD executive director Nicholas Mak reckoned that residential sites at Anchorvale Crescent (EC site) and Tan Quee Lan Street on the Reserve List may be triggered for sale, while residential sites at Kampong Java Road and Middle Road on the Confirmed List may garner strong interest from developers. Source from The Business Times 28 Jun 2018

22 Jun 2018

Major developers vie for Sengkang Central site

THE commercial and residential site at Sengkang Central drew interest from major developers that submitted seven bids at the tender closing on Thursday. Most of them joined forces in joint ventures for the government land sale (GLS) site, which was launched for sale via the dual envelope system. They include a joint bid from CapitaLand Singapore and City Developments Ltd (CDL), as well as from Wing Tai Holdings and Keppel Land. Perennial Singapore and Qingjian Realty also tabled a bid together. Singapore Press Holdings tied up again with Japanese developer Kajima Development; Chinese developers MCC Land and Grantral Land, which is headquartered in Guangzhou and owns Grantral Mall in Singapore, jointly submitted a bid. Far East Organization, which recently won the Holland Road site tender that was also launched under the Concept and Price revenue tender system, is again contesting for the Sengkang Central site. It submitted two separate tenders with different concept proposals. The 37,284.8-sqm site was launched for sale last December by the Urban Redevelopment Authority (URA). Zoned "commercial and residential", the 99-year leasehold site located next to the Buangkok MRT station is expected to generate some 700 units or a maximum gross floor area of 78,299 sqm. Market watchers note that interest for this site is not as keen as that seen for the Holland Road site, which previously received 15 tender submissions. Capitaland, CDL, Perennial Singapore and Qingjian Realty were the unsuccessful parties from the previous tender that are now vying for the Sengkang Central site. Under this Concept and Price revenue tender system, the concept proposals will be first evaluated by a Concept Evaluation Committee based on a set of criteria specified in the tender. Only tenders that meet the evaluation criteria will be considered for award. At the second stage, the price envelopes of the proposals with acceptable concepts will be opened for consideration. The site will then be awarded to the tenderer with the highest bid price among those with acceptable concept proposals. A 40 per cent weightage under the tender evaluation criteria is assigned to the quality of design, and 30 per cent to quality of public realm, or in other words, the provision of good connectivity and the attractiveness of public spaces. The balance 30 per cent weightage is allocated to track record. ZACD executive director Nicholas Mak noted that given the size of the site and relatively complicated technical conditions related to this tender, the majority of the bidders are consortiums or big players in the property market. Four out of the six groups of bidders in the tender are sponsors for Singapore-listed real estate investment trusts (Reits), he observed. "This is not surprising as it is increasingly difficult to acquire well-located shopping malls in Singapore at attractive prices. Hence, these developers would have to acquire land for retail malls." This mixed residential-cum-commercial development is envisioned to be an integrated community hub to meet the needs of the residents in Buangkok, with amenities such as a hawker centre, community club, childcare centre, retail shops, as well as public rail and bus transport facilities sited in a one-stop location. CBRE research head for Singapore and South-east Asia Desmond Sim noted that the tender conditions for the site at Sengkang Central is almost similar to that of the Holland Village site that was awarded in May and presents strong potential to be the landmark of the Sengkang/Buangkok vicinity. "The six consortia who have thrown in the bids comprise experienced developers with proven track records. We expect the selection process to be challenging and very comprehensive," he said. "While there is already a large public housing estate surrounding this site, there is potential for further developments that may reinforce the significance of this commercial/transport node." Source from The Business Times 22 Jun 2018

14 Jun 2018

Lakeside Apartments owners ask for S$240m

LAKESIDE Apartments is now on the market with a reserve price of S$240 million, becoming the latest development to wade into the collective sale arena. With more than 80 per cent of the owners at the 134,176 sq ft site in the Jurong Lake District area having agreed to sell their units, the tender was launched on Tuesday. Each owner in the 120-unit development could get S$2 million. There are 58 years left on the development's 99-year lease. The site along Yuan Ching Road is zoned residential with a plot ratio of 2.1. It currently houses two tower blocks of 15 storeys each. Developers will have to cough up an enhancement premium of S$55.56 million to top up the lease and to intensify the land use from the current baseline of 24,721 sq m, or an equivalent gross plot ratio of 1.98. Marketing agent SLP International said: "Given its continuous unblocked frontage alongside Jurong Lake, Lakeside Apartments presents an exceptional redevelopment opportunity for developers seeking to create an iconic residential development." JTC used to manage the land, but this task has since been handed over to the strata title unit owners, said Nicholas Mak, executive director of ZACD Group (the parent company of SLP International). According to press reports from the late 1970s, JTC built Lakeside Apartments at the time to provide housing for those working in the Jurong area. The units went for between S$64,900 and S$66,800 each when they were launched to the public. The tender closes on July 24. Source from The Business Times 14 Jun 2018

13 Jun 2018

Park House in Orchard fetches record S$2,910 psf ppr price in collective sale

ORCHARD property Park House has fetched a record collective sale price of S$2,910 per sq ft per plot ratio, marketing agent CBRE said on Wednesday. The freehold District 10 development at 21 Orchard Boulevard sold for S$375.5 million, translating to S$2,910 psf ppr on the maximum allowable gross floor area of 129,035 sq ft, excluding the 10 per  cent bonus for balconies. This new benchmark price beats the previous peak of S$2,526 psf ppr, which Hong Kong's Swire Properties paid for the Hampton Court collective sale site at Draycott Park in 2013. The public tender for Park House was awarded on June 1 to Shun Tak Cuscaden Residential, a wholly-owned subsidiary of Hong Kong-listed Shun Tak Holdings. Zoned as residential under the 2014 Master Plan, the 46,984 sq ft site has a plot ratio of 2.8. Shun Tak Holdings intends to redevelop the site into a luxury residential development with expected completion by 2023. Park House is a rare freehold 60-unit development in Orchard Road, comprising 56 apartments and 4 shop units. Each apartment unit owner and shop unit owner stands to receive a gross payout of about S$6.1 million and S$8.1 million, respectively. Said CBRE managing director of capital markets Jeremy Lake: "The response from local and foreign developers was overwhelming; we conducted more than 20 site inspections with developers from Hong Kong, Malaysia, Singapore, China and Indonesia." He added that Park House's positive attributes include its "very prominent yet exclusive location on Orchard Boulevard", accessibility to the Orchard Road shopping belt and the short walking distance to the upcoming Orchard Boulevard MRT, slated for completion in 2021. Park House Collective Sale Committee chairman Edward Ong said: "This wonderful outcome has certainly exceeded the expectations of all owners at Park House." Source from The Business Times 13 Jun 2018

07 Jun 2018

More supply, rule change needed to solve executive condo crunch

THE executive condominium (EC) market is experiencing a supply crunch at a time when the sandwiched class of home buyers - which this property class caters to - could use some help. The government minted this public-private housing hybrid in the 1990s to cater to households whose monthly incomes are too high to qualify them to buy a new Housing and Development Board flat but who find a private home purchase out of reach. Launch prices of new private residential developments have begun escalating as a result of developers having paid higher land prices in the past 15 months, making it more challenging for the sandwiched class of households who aspire to own a brand new private property. At a time like this, ECs play a key role. The problem, however, is that EC prices are also shooting up due to a shortage of new units available for sale. In April, Rivercove Residences in Sengkang was launched at an average price of S$965 psf - a record for an EC launch and nearly 15 per cent higher than the average selling price of the preceding EC project - Hundred Palms Residences in Yio Chu Kang, launched in July last year. Rivercove Residences will remain the sole EC launch for this year. Sales at the next EC development - along Sumang Walk in the Punggol area - can begin only in the second half of next year, with an expected average price tag of at least S$1,100 psf. This is after its developer, a City Developments-TID Residential joint venture, clinched the site at S$583 psf ppr, a record price for EC land. Amid the severe shortage of EC land, the tender for the site in February drew a whopping 17 bids - all surpassing the previous record price of S$419 psf ppr for EC land set in July 2013. The Sumang Walk site was the only EC site offered in the Government Land Sales (GLS) Programme for the whole of 2017. As at end-March 2018, the pool of unsold units in EC projects with planning approvals had shrunk to 779 units - which is expected to be absorbed within a few months. In the first four months, developers moved 857 EC units. For the whole of last year, they sold 4,011 units. The EC market is set to remain undersupplied, and hence the upward pressure on prices will continue. The unsold EC supply figure has been falling steadily from a high of 7,967 units at end-March 2015, when there was a glut. Developers trimmed prices to move their stock, while the authorities reduced EC land supply. For H1 2018, the government has allotted three EC sites - one on the confirmed list and two on the reserve list - totalling 1,705 EC units, exceeding the 815 units in H2 2017. However, it will take time for this supply to make its way to the market in the form of project launches. Once an EC site has been awarded, the developer has to wait 15 months before it may launch the project under a rule introduced as part of the January 2013 cooling measures. For now, what the authorities could do to bring EC supply more quickly into the market would be to do away with the 15-month waiting period, and inject more EC sites via the confirmed list for the upcoming H2 2018 GLS Programme. This would go some way towards resolving the supply crunch, perhaps ease price pressures - and help assuage the demand from households who may find themselves increasingly priced out of Singapore's private property market. Source from The Business Times 7 Jun 2018

06 Jun 2018

Pomex Court sold for S$37.6m

POMEX Court, a three-storey, freehold, walk-up residential development in the Joo Chiat area, has been sold for S$37.6 million through a collective sale. The price works out to S$1,014 per square foot per plot ratio. No development charge is payable, said Alvin Er, key executive officer of Century 21 House & Home Property, who brokered the sale. The District 15 is being bought by K16 Development, the shareholders of which are Irawan Gawain and Yang Hui'en. Completed in 1986, Pomex Court is on a 26,471 sq ft site at 50 Lorong 101 Changi. The existing development comprises 19 units. All owners have agreed to the collective sale. Under the Urban Redevelopment Authority's Master Plan 2014, the site is zoned for residental use with 1.4 plot ratio (ratio of maximum gross floor area to land area). Mr Er said the site may be redeveloped into a five-storey project with 34 units. This is based on the minimum average unit size of 100 sq m gross floor area stipulated by URA for the location. Source from The Business Times 6 Jun 2018  

05 Jun 2018

Freehold Katong Plaza up for collective sale with S$188m expected price

FREEHOLD Katong Plaza will be launched for collective sale on June 7, 2018 with a S$188 million expected price, sole marketing agent Huttons Asia announced on Tuesday. The expected price translates to S$1,969 per square foot per plot ratio (psf ppr) for the mixed commercial and residential development, after factoring in the payable development charge. The public tender for Katong Plaza closes at 2pm on July 16. The site has a land area of 34,044 square feet (sq ft) with a gross plot ratio of 3.0, and can yield a possible 102,133 sq ft of gross floor area (GFA) after redevelopment, Huttons Asia's head of investment sales Terence Lian said. It is located 120 metres away from the future Marine Parade MRT station, and is in the vicinity of schools such as Tao Nan School, Haig's Girls' School, CHIJ (Katong) Primary and Tanjong Katong Primary School, and amenities such as Parkway Parade, 112 Katong and East Coast Park. According to the Urban Redevelopment Authority's guidelines, a minimum of 60 per cent of the GFA in the new development will need to be zoned for residential use, with the remaining 40 per cent for commercial purposes. With "continued strong demand" for residential homes in the Katong area, the winning developer could also choose to increase residential use to 80 per cent, with the remaining 20 per cent for commercial use under the current master plan zoning, subject to URA approval, added Huttons Asia's deputy head of investment sales Angela Lim. "Katong Plaza is strategically nestled within an established F&B (food and beverage) and retail belt in the heart of Katong. We see a huge potential for the site to be transformed as the successful developer could introduce lifestyle cafes and eateries along the plot's existing 150 m frontage along Brooke Road," Ms Lim noted. "We envisage Brooke Road to form a vibrant weather-friendly thoroughfare lined with alfresco dining and activities that would help seamlessly link up the Katong/Joo Chiat area with the future Marine Parade MRT station," she said. Source from The Business Times 5 Jun 2018

05 Jun 2018

Spanish Village put up for collective sale for S$882m

YET another property development in District 10 has been put up for sale. Owners of the 226-unit freehold property in Farrer Road known as Spanish Village are asking for S$882 million, jumping on the bandwagon of collective sales hopefuls in the prime districts. So far, 25 collective sale sites in districts 9, 10 and 11 have concluded, chalking up S$5.5 billion in total sale proceeds and a median land rate of S$1,664 per square foot per plot ratio (psf ppr), based on The Business Times' compilation. There are at least 10 other launched redevelopment sites in the prime districts waiting for buyers. Edmund Tie & Company, the marketing agent for Spanish Village, said that the asking price for the freehold residential site reflects a land rate of S$1,721 psf ppr, inclusive of a development charge of about S$30 million. Built in the 1980s and spanning 331,457 sq ft, the site is zoned for residential use with a gross plot ratio of 1.6. The area is surrounded by schools such as Nanyang Primary School, Raffles Girls' Primary School, Nanyang Girls' High School, The Chinese High School, Anglo-Chinese School (International), Hwa Chong Institution and National Junior College. "With all the surrounding good schools and proximity to lifestyle options and CBD, the location holds great appeal for families with school-going children and expatriates alike," said Edmund Tie & Company's senior director of investment advisory Tan Chun Ming. "URA's recent tender award of the Holland Village GLS (government land sale) site for a mixed-use and pedestrian-oriented development will also add to the vibrancy of the locale." JLL senior consultant Karamjit Singh noted that the en bloc upswing from 2016 to 2018 year-to-date was led by the bottom-end of the private residential market as strong demand for mass-market homes and shortage of land kick-started the en bloc wave. As land prices rose for the bottom end of the market, the upper tiers of the market are starting to look relatively under-priced. This in turn spurred en bloc sales in the medium to upper-end segments. But he pointed out that prime land does not interest all types of developers. "Some would prefer mass market sites as they are good at building such homes. They also feel the size of demand for affordable homes is much wider as such projects mainly cater to HDB upgraders to whom additional buyer's stamp duty (ABSD) and total debt servicing ratio (TDSR) are less of an issue. "On the other hand, developers who specialise in the luxury end would welcome opportunities to build what they are good at," Mr Singh said, adding that Singapore's luxury home market still compares favourably to several global peers, despite the ABSD payable by foreigners. Savills Singapore senior director Alan Cheong noted that the flavour of the season has swung to prime districts as developers have stocked up their landbanks with suburban and city-fringe sites. The prime property owners have also been waiting for prices to rise before pushing their units for collective sale, he said. Colliers International Singapore research head Tricia Song felt that the risk of an oversupply of launch units in the prime districts is low for now. "We believe we are still in the early stages of recovery for the end-user and collective sale market for prime properties, especially given the dearth of prime land acquisitions between 2008-2017," she said. "We believe prime sites, especially those located near an MRT station and are competitively priced, will continue to attract developers' attention." Source from The Business Times 5 Jun 2018

05 Jun 2018

112 Affinity at Serangoon units sold over the weekend

AFFINITY at Serangoon, a development by a consortium led by mainboard-listed Oxley Holdings, sold 112 of the 300 units offered in Phase I over its official launch weekend on June 2-3. They were sold at an average price of S$1,575 per square foot (psf), the developer said on Monday. Affinity is a 99-year leasehold development comprising seven blocks with 1,012 one- to four-bedroom apartments and 40 strata landed houses. The 27,584 square metre site is located at the former HUDC estate Serangoon Ville at Serangoon North Avenue 1, which was purchased by the consortium in July 2017 at S$835 psf per plot ratio. Affinity has a gross floor area of 77,235 sq m and an estimated gross development value of S$1.4 billion. Of the units sold in Phase I, Oxley said that they were evenly spread out across all unit types, with Singapore citizens making up 80 per cent of all buyers and the rest permanent residents and foreigners. Oxley has a 40 per cent stake in the consortium while the remaining stake is split equally among Lian Beng Group, Unique Invesco Pte Ltd and Apricot Capital. Unique Invesco is a 37.5 per cent indirect associate of KSH Holdings; Apricot is the private investment firm of Super Group's Teo family. Ching Chiat Kwong, executive chairman and chief executive officer of Oxley, said: "Affinity offers good value for money given its convenient location, efficient use of space and a wide range of facilities. It's particularly suitable for and attractive to homebuyers." "In fact, we saw strong demand from former Serangoon Ville residents who are keen to live in their familiar area, and now also have the purchasing power to upgrade for themselves and younger generations." See also Riverfront Residences, Parc Botannia, Park Colonial Source from The Business Times 5 Jun 2018

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