Market News

28 Aug 2018

Pasir Ris white site up for sale by public tender

A WHITE site at Pasir Ris Central, spanning 3.8 hectares, was launched for sale off the government land sales (GLS) confirmed list in a dual-envelope public tender on Monday. The 99-year leasehold site went on the market with the Housing & Development Board (HDB) calling for a mixed-use commercial and residential development, as part of its "Remaking Our Heartland" plan to rejuvenate Pasir Ris Town. The land parcel next to Pasir Ris MRT station must be integrated with a bus interchange, a polyclinic and a town plaza, and can yield up to 600 private homes, said HDB. The maximum permissible gross floor area is 95,010 sq m (1.02 million sq ft), with a proposed gross plot ratio of 2.5. Pointing to the seven bids in a recent Sengkang GLS site tender, Christine Sun, head of research and consultancy at OrangeTee & Tie, told The Business Times that the Pasir Ris plot could get six to eight offers as well, based on the similarities between the sites. Knight Frank Singapore's senior director and head of research, Lee Nai Jia, also predicted at least six to eight bids and said that the winning bidder could offer between S$800 and S$830 per sq ft per plot ratio (psf ppr). The price tag is "likely to reflect the existing market conditions in view of the cooling measures", he told BT. "Notwithstanding, there is not much new supply in the area . . . There is likely to be strong demand from upgraders and the young families that want to stay near their parents in the area." But Tricia Song, head of research for Singapore at Colliers International, was more bearish. She said that there could be as few as four bids, topping out at S$800 psf ppr. The Sengkang Central site may have gone for S$924 psf ppr, but more units were allowed and it had no mall nearby, she noted. "Given the substantial size of the plot and various tender conditions, we think this site could likely attract larger developers or a consortium of them working together," she added. Lee Sze Teck, research head at Huttons Asia, also figured that joint ventures and real estate investment trust sponsors would be likely bidders. Bids received will be evaluated under a concept and price revenue system, where tenderers have to submit their concept proposals and tender prices in two separate envelopes. HDB will hold a briefing on key planning and urban design requirements and evaluation criteria on Sept 11. The tender closes at noon on Dec 14. Source from The Business Times 28 Aug 2018

27 Aug 2018

Government launches sale of big 3.8ha mixed-use site at Pasir Ris Central; part of town remaking plan

A white or mixed-use site at Pasir Ris Central, spanning 3.8 hectares, was launched for sale by public tender on Monday (Aug 27) in a dual-envelope exercise, under the government land sales (GLS) programme's confirmed list for the second half of 2018. The Housing & Development Board (HDB) launched the 99-year leasehold site as part of Pasir Ris Town's "Remaking Our Heartland" plan. The commercial and residential development slated for the site must be integrated with a bus interchange, a polyclinic and a town plaza. The 38,003.7 square metre (409,070 square feet) land parcel next to Pasir Ris MRT station can also yield up to 600 private homes, and has a maximum permissible gross floor area of 95,010 sq m, said HDB. The proposed gross plot ratio is 2.5. Tenders received will be evaluated under a concept and price revenue system, which requires tenderers to submit their concept proposals and tender prices in two separate envelopes. Only short-listed concept proposals will go on to have their price envelopes considered. SSchools in the area include Elias Park Primary, Hai Sing Catholic School and Loyang Primary. The tender for the site closes at noon on Dec 14. Source from The Straits Times 27 Aug 2018

16 Aug 2018

CapitaLand-CDL tie-up lands Sengkang Central site with top bid of $777.8 million

A CapitaLand and City Developments Ltd (CDL) tie-up has clinched a commercial and residential site in Sengkang Central. Their winning bid of $777.78 million works out to $923.59 per square foot per plot ratio (psf ppr) for the 99-year leasehold site next to Buangkok MRT Station. In a joint release on Thursday evening, CapitaLand and CDL said their joint venture will transform the 3.7-hectare site - the largest commercial and residential site awarded since 2015 - into an integrated community hub with 700 residential apartments, meeting the needs of 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. The integrated development is targeted for completion in the first half of 2022, they added. The winning bid was the highest of the four shortlisted tenderers for the dual-envelope (concept and price) tender, said the Urban Redevelopment Authority, which awarded the site on Thursday. The other three shortlisted bids came from:- A tie-up between Perennial Singapore and Qingjian Realty, which bid nearly S$682 million or S$809.86 psf ppr; A Singapore Press Holdings and Kajima Development tie-up, which bid S$636.39 million or S$755.69 psf ppr; and A Wing Tai Holdings and Keppel Land tie-up, which bid S$608.9 million or S$723.05 psf ppr. These four bids were shortlisted from the seven bids submitted by six tenderers; one of the tenderers submitted two concept proposals. All bidders were required to submit their concept proposals and tender prices in two separate envelopes. At the first stage of the tender process, those concept proposals that had substantially satisfied the evaluation criteria were shortlisted by the Concept Evaluation Committee (CEC) to proceed to the second stage of tender evaluation. At the second stage, only the price envelopes submitted by the tenderers of the four shortlisted concept proposals were opened for consideration. The site was then awarded to the tenderer with the highest bid among the tenderers with shortlisted concept proposals. The proposed mixed-use development will have an integrated community and transport hub with a bus interchange on the first storey, a hawker centre on the second storey and a community club that spans across three storeys. CapitaLand president and group chief executive Lim Ming Yan, said: "CapitaLand looks forward to partnering CDL to shape and transform the site into a landmark development that will be an identity marker and new focal point for the Buangkok neighbourhood." "We see tremendous potential in this site which has exceptional attributes," CDL group chief executive Sherman Kwek said. "Various amenities and recreational facilities such as a hawker centre, childcare centre and civic plaza will be right at residents' doorsteps, giving rise to a vibrant and bustling community." Source from The Straits Times 16 Aug 2018

02 Aug 2018

Windy Heights owners cutting reserve price in fresh en-bloc bid

WINDY Heights made another stab at a collective sale on Wednesday, with home owners now seeking to reduce the reserve price for the tender. The freehold District 14 development in Jalan Daud in the Kembangan area is going on the market again - mere months after an unsuccessful tender closed in April, and hot on the heels of the surprise property-cooling measures that kicked in on July 6. The reserve price in the last collective-sale attempt was S$806.2 million, but marketing agent Knight Frank Singapore said the owners are now going through a "re-signing process to revise the reserve price". If enough sellers agree, the price tag will drop by 6.97 per cent to S$750 million. The revised price would work out to S$1,089 per sq ft per plot ratio (psf ppr), including a bonus balcony gross floor area of 10 per cent, subject to the authorities' approval. This is down from the original land rate of S$1,171 psf ppr, or S$1,288 psf ppr without the balcony area. No development charge is payable. Windy Heights now has 192 apartments, eight penthouses and two commercial units, on a 23,291 sq m (250,702 sq ft) site zoned for residential use. Knight Frank has said the plot could be redeveloped into as many as 581 new homes, at 100 sq m on average for each unit. Ian Loh, Knight Frank's executive director and head of investment and capital markets, noted the lack of impending supply in the Kembangan and Bedok area, and added that new launches in the area are thus likely to be sought after. Windy Heights launches its fresh collective sale in a market still weighing developers' appetite for land after measures that included a 10-percentage point hike in the remissible Additional Buyer's Stamp Duty (ABSD), to 25 per cent for entities, and a new, non-remissible 5 per cent ABSD. Some projects, such as Horizon Towers in Leonie Hill Road in the Orchard Road area, have extended their tender deadlines. As to whether sellers will start to ask for less money, Alan Cheong, senior director of research and consultancy at Savills, told The Business Times that the situation has changed since an en bloc drought in 2014 and 2015, when owners were reluctant to cut reserve prices despite market conditions. "Most will refuse to budge, but some will be more flexible because they know it's different this time round," he said, referring to the impact of the cooling measures. He predicted that sellers gunning for up to S$350 million may shave off at least 5 per cent to absorb the non-remissible ABSD for developers. But bigger sites could need fatter discounts of 10 per cent to 15 per cent to woo developers, he warned. "And the more subsidiary proprietors, the more chances of people who are intransigent." The new tender for Windy Heights will close at 2.30 pm on Sept 7. Source from The Business Times 2 Aug 2018

01 Aug 2018

URA nod for 4,107 units at Tampines Court, Normanton Park

THE Urban Redevelopment Authority (URA) granted provisional permission for several residential projects in the second quarter of the year. These include two large projects with well over 1,000 units each on sites sold through collective sales. Sim Lian won URA's provisional nod in June to develop a 2,225-unit condo on the Tampines Court site. In the same month, Kingsford Huray Development was granted approval for a 1,882-unit project on the Normanton Park site - comprising 1,863 apartments and 19 strata terrace houses. Normanton Park is near Science Park and Kent Ridge Park. JLL senior consultant Karamjit Singh expects developers which have clinched collective sale sites to try and quickly secure provisional permission for their proposed projects on the sites in order to insulate themselves from further hikes in development charge (DC) rates during the upcoming revision on Sept 1. "We're going to continue to see further increases in DC rates for non-landed residential use, with the biggest percentage increases likely to be in the prime districts where we have had several en bloc sales in the past six months, including that of Park House." The freehold Orchard Boulevard site set a new record price for residential land in Singapore, of S$2,910 per square foot per plot ratio (psf ppr). Mr Singh said that for suburban locations, however, the percentage increases in DC rates are likely to be more subdued; in fact some areas may not even see any increase, following the steep hikes during the previous two rounds of revisions. In Q2 this year, URA also granted provisional permission to some developers for their projects on sites clinched at state tenders. Notably, Frasers Property received approval to develop a residential and serviced apartments project totalling 500 units on the former Zouk site in Jiak Kim Street. Market watchers note that Frasers Property's project combines developing apartments for sale with a long-term investment approach by also including a serviced residences component which the group is likely to retain for recurring income. In May, URA granted provisional permission to City Developments Ltd (CDL) to develop the 718-unit Whistler Grand project on a site in West Coast Vale that the group clinched at a state tender earlier this year. In Q2 this year, several residential projects received Temporary Occupation Permit (TOP) - including Coco Palms condo in Pasir Ris Grove and Trilive along Tampines Road Le Grove Serviced Residences along Orange Grove Road also received TOP following the completion of a S$30 million revamp. This included increasing the number of apartments to 173 from 97, as well as upgrading the building facade, interiors, swimming pool, tennis court, gym, lobby and lounge. The Le Grove Serviced Residences reopened in mid-July with healthy occupancy, a CDL spokeswoman said when contacted. Source from The Business Times 1 Aug 2018

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