Market News

08 Mar 2019

At least three new freehold projects on sale

SALES for at least three freehold projects are slated to begin on either Friday or during this weekend: Boulevard 88 in a traditional prime district, One Meyer next to the upcoming Katong Park MRT station and 1953 along Tessensohn Road. On Friday, a consortium comprising City Developments, Hong Leong Holdings and Lea Investments begins its soft launch (by appointment only) of Boulevard 88. This is the luxury residential component of a project that will also include The Singapore EDITION Hotel and six basement levels that will include car parking facilities. The Moshe Safdie-designed project, on a sprawling site with dual frontages along Orchard Boulevard and Cuscaden Road, is expected to be completed in 2022. The development is coming up on the site of the old Boulevard Hotel, which was shut in 2000 and demolished thereafter. Boulevard 88 will have 154 luxury residences in two towers of 28 storeys each perched above the eight-storey hotel. The two towers will be linked at the top with a skypark that will have an infinity pool, cabana, lounges, kitchens, club, gym and other facilities. BT understands that indicative prices are expected to start from S$3,300-plus per square foot. Boulevard 88 will have 50 units each of two bedroom-plus-study apartments, three-bedders, and four- bedders, in addition to four penthouses. The two bedroom-plus-study units are all 1,313 sq ft each and indicatively, their prices begin from S$4.4 million per unit. Prices of the three-bedders (all 1,776 sq ft each) are expected to begin from S$6 million, while the four-bedders (2,756 sq ft to 2,799 sq ft) will begin from S$9.6 million. The four penthouses have sizes ranging from 5,673 sq ft to 6,049 sq ft. Five marketing agents have been appointed to sell the project: Edmund Tie & Company, ERA, Huttons, PropNex and Savills. Over in the Meyer Road locale, on the former Albracca site, a consortium led by Sustained Land is developing One Meyer. This will be a 19-storey project with 66 units, equally split between two-bedroom and three bedroom apartments. The development is beside Katong Park MRT Station along the Thomson-East Coast Line. The two-bedders are 614 sq ft each, while the three-bedders come in two sizes: 926 sq ft and 1,033 sq ft. Facilities include a swimming pool, wading pool, gym and communal jacuzzi. "Prices are expected to range from S$2,400 psf to S$2,700 psf. Units on upper levels will have sea views," said Sustained Land executive director Douglas Ong when contacted by BT. Sustained Land is developing the project jointly with Goodland Group, Ho Lee Group and Kwong Lee Land. The project goes on sale on Saturday, as will Oxley Holdings' 1953 mixed development coming up at the corner of Balestier and Tessensohn roads. The six-storey project will have 58 residential units (with an average price of about S$1,850 psf) and 14 commercial units (priced at about S$3,000 psf on average). Residential developers on the island seem to be on a launch-as-fast as-you-can mode to secure buyers amid ballooning pipeline supply of private homes arising from land-bingeing by developers in 2017 and the first half of 2018 fuelled by the collective sales fever. Last July's property cooling measures have unsettled market sentiment but this flurry of launches could be interpreted in two ways, argues Savills Singapore research head Alan Cheong. "Observers who are bearish will say developers are in panic mode, but I think given that developers still have some time more to go before they hit the five-year sales deadline, there is no harm in testing the market with launches now and gauging the response." CBRE's head of research for Singapore and South-east Asia, Desmond Sim, noted that factors that will be key to developers' success at launches include strong project attributes, reasonable pricing and increasingly, the track record of the developer. Apart from incentivising buyers with attractive pricing, another strategy being adopted by some developers is incentivising agents, by offering them higher commissions, he added. "While the internet may provide you with a slew of information, the agent can provide you the right information, coupled with an emotional touch. The persuasiveness of a human touch is still important when it comes to making a property-buying decision." Source from The Business Times 8 Mar 2019

04 Mar 2019

Florence Residences sells close to 60 units on launch weekend

THE property market has not yet fully recovered from last year's onslaught of cooling measures, going by first weekend sales at one of this year's most-anticipated condo launches. The Florence Residences in Hougang released 200 units for its first phase of sales on Saturday, of which close to 60 units or 30 per cent were sold. The 1,410-unit condo project is this year's first mega launch. Developed by Logan Property, Florence Residences sits on the site of Florence Regency, the privatised HUDC estate that was sold en bloc in October 2017. In February, Logan Property (Singapore) executive director Chng Chee Beow had told The Straits Times that between 400 and 500 units were expected to be released on March 2, depending on interest during the preview weekend. One marketing agent suggested that the smaller release "is just a matter of the developer testing the market given the way things have been for the past few months since cooling measures". The sales are "decent", he added. In January, Allgreen Properties’ Fourth Avenue Residences sold 70 out of 168 units released on its launch weekend. In November last year, Oxley Holdings' Kent Ridge Hill Residences moved 116 units out of 250 launched on the first weekend.   A Logan Property spokesman told The Business Times: "We're confident of our product, especially with the two MRT stations (Kovan MRT and the future Cross Island Line around the project." The average selling price was close to S$1,400 per sq foot (psf), on the lower end of the S$1,400 psf to S$1,500 psf range that Mr Chng had earlier indicated. DBS research analysts estimate Logan's breakeven price is S$1,340 psf. Logan Property has hired five agencies to market the project - PropNex, ERA, SRI, OrangeTee & Tie and Huttons Asia. Almost all of the sales were booked on Saturday. PropNex chief executive officer Ismail Gafoor told BT: "Today, buyers and investors still have plenty of choices within that radius and vicinity, namely Riverfront Residences, Affinity at Serangoon, The Garden Residences and Tre Ver." More than 200 units have been sold at these four projects in the last four weeks after details of the upcoming Cross Island MRT line were revealed at the end of January, despite February being the Chinese New Year period. "Affinity sold close to 100 units in the last four weeks, Riverfront more than 50, Tre Ver more than 50, Garden more than 20." Mr Ismail added: "Existing developers are still competing aggressively at sensitive pricing and there are only so many buyers in any particular vicinity." PropNex closed almost half of the sales for Florence Residences with most of the buyers being home upgraders looking at two- and three-bedroom units, Mr Ismail said. Two smaller projects, the 92-unit Nyon condo at Amber Road and The Essence, an 84-unit condo off Sembawang Road also clocked their first sales over the weekend. A spokesman for Nyon declined to comment on sales. Source from The Business Times 4 Mar 2019

01 Mar 2019

URA launches tender for Clementi Avenue 1 residential site

THE Urban Redevelopment Authority (URA) has launched a public tender for a 99-year residential site at Clementi Avenue 1, under the Confirmed List of the first half 2019 Government Land Sales (H1 2019 GLS) programme. The site has a permissible gross floor area (GFA) of 57,900 square metres on 16,542.7 sq m of land, which works out to a gross plot ratio of about 3.5 times. The maximum building height is 140m, and the project completion period is 60 months. The tender will close at noon on July 3, batched with an HDB executive condominium site at Canberra Link which will be launched for sale in May 2019 under the H1 2019 GLS Programme. This site can potentially yield up to 640 residential units, URA added. The types of proposed housing, according to URA's planning guidelines, include condominiums, flats or a combination of flats and strata landed houses, with prior written approval. Serviced apartments will not be allowed. The successful tenderer is also required to provide a child care centre (CCC) for infant care and child care services within the development, with a minimum GFA of 700 sq m, computed as part of the permissible GFA for the proposed development. The CCC is estimated to accommodate a total capacity of 150 children (including infants), and comply with the requirements and guidelines of the Early Childhood Development Agency for infant and childcare centres. Source from The Business Times 1 Mar 2019