Market News

28 Sep 2018

URA site for hotel in Chinatown up for tender

THE Urban Redevelopment Authority (URA) released a government land sales site in Chinatown for hotel use on Thursday, with the land parcel possibly yielding as many as 390 rooms. The 99-year leasehold, 5,121.4 square metre (55,130 square foot) site, at the junction of Cross Street and Club Street, has a maximum gross floor area (GFA) of 24,310 sq m. Subject to the authorities' approval, up to two-fifths of the GFA can be used for serviced apartments or commercial uses, except for offices. Some of the acceptable commercial uses could be shops, restaurants, fitness centres and medical clinics, according to the tender brief. The public tender exercise follows a recent increase in development charges for hotel sites in Chinatown and Little India, in the latest revision by the Ministry of National Development, which took effect on Sept 1. The plot that has been launched for tender falls within Sector 16, where the rate was hiked by 20 per cent to S$10,080 per sq m of GFA. The Club Street project can be built up to four storeys in the low-rise zone, and 75 metres above sea level in the high-rise zone, which is to be set back from Club Street and Mohamed Ali Lane, where there are shophouses. The development will have direct connections to Chinatown and Telok Ayer MRT stations, and will be within walking distance of the upcoming Maxwell MRT station. Other hotels in the vicinity include Parkroyal on Pickering and The Scarlet, as well as future projects at Far East Square and China Square. The URA said the close of tender will be bundled with that of two residential sites, in Kampong Java Road and Tampines Avenue 10, to be launched for sale under the government land sale scheme next month. ZACD Group executive director Nicholas Mak predicted that the tender would attract eight to 12 bids, owing to "the rarity of hotel land and its many attractive locational attributes". He estimated the top bid would be between S$282 million and S$320 million, or a unit price of S$1,080 to S$1,223 per sq ft per plot ratio. Source from The Business Times 28 Sept 2018

24 Sep 2018

Qingjian Realty sells 300 units at JadeScape

QINGJIAN Realty (South Pacific) Group said it has granted options for the purchase of 300 units at the JadeScape condo as at 2pm on Sunday. Sales began on Saturday morning. The average transacted price net of discounts is S$1,700 per square foot, it added. Interest was balanced across all unit types. The price for a three-bedroom apartment of 1,012 sq ft averages S$1.65-1.7 million. Under the first phase of sales, Qingjian released 480 of the development's 1,206 residential units. The 99-year leasehold condo is coming up on the former HUDC Shunfu Ville site. Yen Chong, deputy general manager of Qingjian Realty (South Pacific) Group, said in a statement: "We were cautiously optimistic, but the buyers' response has definitely exceeded our expectations." The project is being marketed by five agencies: ERA, Huttons, PropNex, Savills and SLP International. Savills Singapore senior director of research and consultancy Alan Cheong said: "There has been a dearth of large projects sold in the vicinity for the past few years. This strong first weekend showing should translate to a steady rate of weekly sales for the months ahead. "Despite the new set of cooling measures, demand will be healthy where there is a strong product offering, an easily-accessible location using either public or private transport modes." ERA Realty Network chief executive Jack Chua said: "Pricing for JadeScape units are at a sweet spot for buyers, especially when factors like its location and proximity to transport nodes are taken into account." Qingjian said details on the next phase of sales will be announced later. The project is within 1 km of Catholic High School. Schools within 1 km to 2 km of the project include Ai Tong School and Marymount Convent School, according to information in the Jadescape brochure. The development has seven residential blocks - five of which are 23 storeys high, and a block each of 22 storeys and 21 storeys. JadeScape has 236 one-bedroom units, 403 two-bedders, 265 three-bedders, 261 four-bedders, 39 five-bedders and two penthouses. Each penthouse is 4,230 sq ft and has six bedrooms. The penthouses have not been released and their pricing has yet to be finalised, Ms Chong told The Business Times. The development also has six shop units. Source from The Business Times 24 Sept 2018

05 Sep 2018

Measured bid counts in latest Government Land Sales tenders for private housing

BIDDING turnouts at two of three state tenders that closed on Tuesday were noticeably subdued, reflecting developers' sentiment following the latest property cooling measures. Just five bids competed for the plot on Dairy Farm Road. Over at Jalan Jurong Kechil, three offers were submitted, far fewer than the record 24 bids submitted last year for a nearby Toh Tuck Road plot that has since been developed into Daintree Residence.   The executive condominium (EC) market, however, continues to register healthy interest amid a shortage of supply. A site along Canberra Link pulled in nine bids, said the Housing and Development Board (HDB) on Tuesday evening. These were the first state tender closings since the property cooling measures kicked in on July 6. Tan Huey Ying, head of research and consultancy for JLL Singapore, said: "The tender results reflect developers' cautious stance in general, and for private housing sites in particular... given that the additional cooling measures have a greater impact on demand for private homes." In the 99-year,  153,223 sq ft Jalan Jurong Kechil residential site, the highest offer came from a tie-up between COHL Singapore and CSC Land Group (Singapore); the bid was S$215 million, or a land rate of S$1,002 psf. CSC Land Group (Singapore) is a unit of China Construction (South Pacific) Development Co Pte Ltd; COHL Singapore belongs to Jiak Kim Propco Sarl, which has a Luxembourg address, a search with the Accounting and Corporate Regulatory Authority (ACRA) found. Two other bids were submitted - one from Hao Yuan Investment for S$163.8 million, and another from Sim Lian Land for S$130 million. Ms Tay said that the COHL/CSC bid would give rise to an estimated selling price of S$1,600 to S$1,700 per sq ft - just under the S$1,702 per sq ft average transacted price for the nearby Daintree Residence. At the Government Land Sales (GLS) site at Dairy Farm Road, United Engineers' UED Residential submitted the top bid of S$368.8 million, or S$830.4 psf per gross floor area (GFA). Closely following was the offer from MCC Group's MCC Land (Singapore) and Greatview Group and Yu Zhisong's Greatview Investment, for S$364.9 million. The lowest bid was from Wee Hur Development, which placed a S$228.8 million offer. COHL Singapore and CSC Land Group (Singapore), and Chip Eng Seng Corporation's CEL Property Development were also in the fray. The 211,486 sq ft site is for residential development with commercial uses on the first storey. United Engineers' group managing director Roy Tan told The Business Times by phone that he was pleasantly surprised by the outcome. "We put in a reasonable bid that was not too aggressive... and put in a sufficient discount to the Hillview Rise site," he said. The nearby Hillview Rise GLS site was clinched by Hong Leong Group on July 3 for S$460 million, or S$1,067 psf ppr. Dr Lee Nai Jia, senior director and head of research at Knight Frank, said the prices at the two GLS sites are "reflective of what has been transacted in that area... rather than future pricing". He added that the tender results could be a "wake-up call" to en bloc hopefuls such as the nearby Dairy Farm condo. "Developers are still going in, but the prices are more rationalised now," he said. Marketing agent Teakhwa Real Estate, which is marketing The Dairy Farm's en bloc effort, told BT on Tuesday evening that the development's reserve price will stay at S$1.68 billion. Managing director Sieow Teak Hwa said The Dairy Farm's location is nearer the train station than the plot for which the tender just closed, and The Dairy Farm is freehold to boot. "The price is reasonable when compared with other available en bloc sites," he said. The Urban Redevelopment Authority (URA) said that a decision on the award of the tenders will be made after the bids have been evaluated. For the Canberra Link EC site, HDB announced on Tuesday evening that Hoi Hup Realty and Sunway Developments' bid came out tops at S$271 million, or S$558.22 psf. The second highest bidder was Greatview Investment and MCC Land (Singapore), with a bid of S$258.9 million. The lowest bidder was JBE Development with a bid of S$201.8 million or S$415.72 psf. The 99-year land parcel was launched for tender on June 28, for a 194,187 sq ft site that will yield an estimated 450 units. This was after a 2.7-hectare 820-unit EC site in Sumang Walk was awarded to City Developments and TID Residential. Their bid of S$509.4 million, or a record S$583 psf for EC land, had beat out 16 other contenders. Nicholas Mak, executive director for ZACD Group, said: "The supply and demand mismatch in the EC market (depleting unsold stock and limited sites for EC development) has strengthened the attractiveness of the Canberra Link EC site. To some developers, EC development is a safer development option in this uncertain market." Source from The Business Times 5 Sept 2018

04 Sep 2018

Qingjian to build more than 1,200 homes on Shunfu Ville site

QINGJIAN Realty has unveiled its plan to build more than 1,200 apartment units in Shunfu Road, on the site of the former Shunfu Ville estate. JadeScape, as the new development in Bishan is to be called, will be kitted out with fully-integrated smart home technologies and an intelligent estate monitoring system. The developer hopes to draw buyers at an average price of S$1,700 per square foot. The units will include 63 one-bedroom units specially designed for active-ageing residents. Called the "gold standard" units, these apartments will be equipped with smart technology and physical facilities designed for older residents. Qingjian Realty acquired the former Shunfu Ville for S$638 million in 2016, making it the largest collective sale since 2007 at the time. The 1,206 units at JadeScape will be launched in two phases. There will be 236 one-bedders, 403 two-bedders, 265 three-bedders, 261 four-bedders, 39 five-bedders and two penthouses across the seven blocks, sitting on the 36,985.7 sq m site. The one-bedroom units (527 sq ft) will start at S$838,000; two-bedroom units (646 to 775 sq ft) will start at S$988,000, while three-bedroom ones (904 to 1,152 sq ft) will start at S$1.38 million. Prices for the four- and five-bedroom units, as well as the penthouses, have yet to be fixed. Yen Chong, deputy general manager of Qingjian Realty (South Pacific) Group, said the recent property cooling measures had made the company re-evaluate its pricing for JadeScape's units, but that the final prices do not differ much from the initial price. Smart technology installed in the condo include devices in common areas that enable estate managers to monitor the development; the system can, for example, send alerts when smoke detectors in individual units are activated. Facial recognition technology will be used in lift lobbies. Older residents living in the "gold standard" units will have access to services such as health screenings and dietary planning. Their units will also be equipped with pull-down hydraulic racks and support bars. The condo, which is near Marymount MRT station, will be served by four MRT lines - the Circle, North-South, future Thomson-East Coast and Cross Island lines. Drivers can reach any part of the island through the Pan-Island Expressway, the Central Expressway and the upcoming North-South Corridor. Qingjian's two-storey show gallery, the largest in recent years and equipped with smart technology, will open to the public from Saturday. Tricia Song, head of research for Singapore at Colliers International, described the S$1,700 psf price tag as "fairly attractive, especially for the one- to two-bedroom units". She noted that there has been no new major launches in the vicinity since 2015; the last major launch was the 288-unit Thomson Impressions in Q4 2015. She also noted that the nearby Thomson Three, a 99-year leasehold development completed in 2016, transacted at about S$1,600 psf this year. "We expect JadeScape to do well due to pent-up demand in the vicinity and the palatable price quantum of less than S$1.5 million for most of its one to three-bedders. "It is also near good schools such as Catholic High and Ai Tong," she said. Christine Sun, head of research and consultancy at OrangeTee & Tie, said that, while not a direct comparison, units in resale projects in Bishan such as Sky Vue are going at an average price of S$1,650 psf; at Sky Habitat, the average psf price is S$1,500. JadeScape, being a much newer project, is expected to command a higher premium than Sky Vue and Sky Habitat. Ms Sun said she expects the take-up of units to be healthy and for the "gold standard" units to be popular with older buyers. The development is expected to receive its Temporary Occupation Permit (TOP) on Jan 9, 2023. Source from The Business Times 4 Sept 2018