Market News

31 Dec 2019

HDB launches two EC sites in Sengkang, Tampines

Two new sites - in Sengkang and Tampines - are available for executive condominium (EC) projects. The Housing Board (HDB) has launched the first plot of land in Fernvale Lane in Sengkang for sale by public tender, to interested developers. The second site in Tampines Street 62 has also been released for application, but under the reserve list. This means that it will be put up for tender only if developers are interested. HDB said yesterday that both sites could potentially yield up to 1,100 residential units. The Fernvale Lane site is 17,129.9 sq m, with a maximum permissible gross floor area of 47,964 sq m and a maximum building height of 56m above mean sea level. It is estimated to yield about 480 homes. The Tampines site is larger, at 23,799.2 sq m, with a maximum permissible gross floor area of 59,498 sq m and a maximum building height of 64m above mean sea level. If there is enough interest from developers to proceed, home buyers can expect 595 units to be available when the project is completed. Both sites have a lease period of 99 years each. The tender for the Fernvale Lane site will close at noon on March 3 next year. Executive condominiums are public-private housing hybrids built by private developers and typically come with amenities found in private condominiums such as swimming pools and multi-purpose rooms. The income ceiling for Singaporean households to buy EC units is $16,000, up from $14,000 following a policy change in September.  Although the Fernvale Lane site is not located near any MRT station, it should still prove popular among developers, said ERA Realty head of research and consultancy Nicholas Mak. This is because it is near retail amenities such as Greenwich V shopping mall. Ms Tricia Song, head of research for Singapore at Colliers International, said she expects between seven and nine bids for the Fernvale Lane site, with the top bid possibly coming in at about $260 million, or $500 per sq ft per plot ratio. The projected end-selling price could then be between $950 and $1,000 per sq ft. Ms Christine Sun, head of research at OrangeTee & Tie, said the project may attract HDB upgraders living in Sengkang and Punggol, as more than 10,000 HDB flats have reached their five-year minimum occupation period in both areas this year. "Some HDB owners will likely hope to upgrade to private housing, and this Fernvale EC site may help to meet the upgrading aspirations of Singaporeans in these two areas," she said. At least three ECs are expected to launch next year: Ola in Anchorvale Crescent, Parc Canberra in Canberra Link and a development in Tampines Avenue 10. Ms Sun added that developers are likely to closely watch sales for the Tampines Avenue 10 project and overall market demand, before deciding whether to put in an application of interest for the new Tampines site. Source from The Straits Times 31 Dec 2019

04 Dec 2019

Two plum sites in latest land sales; Bt Timah plot to revive Jln Anak Bukit vicinity

TWO plum sites - Jalan Anak Bukit for mixed development and Tanah Merah Kechil Link residential site - have been offered in the latest Government Land Sales (GLS) programme for 1H 2020. The sites are well located near MRT stations, with the Jalan Anak Buikit site having an integrated bus interchange which will provide amenities for commuters and residents in the area. "We would expect both sites to receive a healthy number of bidders," said Christine Sun, OrangeTee & Tie, head of research & consultancy. The predominantly residential Jalan Anak Bukit site comprises 22,000 square metres of commercial space, with a retail cap of 7,500 sq m of gross floor area and 865 residential units. In line with the 2019 Master Plan to transform the Beauty World area, the government has decided to push out an integrated transport hub site on the 1H 2020 GLS programme, said Lee Sze Teck, director (research), at Huttons Asia. "This is definitely the choicest site of all and will be on the radar of a lot of developers," said Mr Lee. "The development will help to spruce up the Beauty World precinct where there is a lack of office space, and retail stock is predominantly aged," said Desmond Sim, CBRE head of research, South-east Asia. Furthermore, the injection of 865 residential units will rejuvenate the mature precinct, said Mr Sim. He expects more land parcels to be released in the area as reflected in the URA Master Plan 2019. "The 7,500 sq m designated for retail will support the residential catchment, and is in line with URA's plan to enhance street-level activities and add vibrancy to the area. A stipulated tender condition for this site is the inclusion of a bus interchange which will create a transport hub in the Beauty World area," said Mr Sim. But smaller developers may not be able to tender given the scale and complexity of the Jalan Anak Bukit site, which could dampen the developers' appetite, said Christine Li, Cushman & Wakefield's head of research, Singapore and South-east Asia. Building an integrated bus interchange is not the core expertise of developers, she noted. The Tanah Merah Kechil Link site is expected to garner the most interest as it is directly adjacent to Tanah Merah MRT station, said Ms Li. This is because demand has been well-tested in the area, as the nearby Grandeur Park Residences is 98 per cent sold, with the latest median price at approximately S$1,550 per square foot (psf) per plot ratio (ppr). Accordingly, the site is expected to fetch bids in the range of S$850 to S$900 psf ppr, which depending on sentiment at the time of launch could fetch between S$1,700 to S$1,900 psf, said Ms Li. Tricia Song, Colliers International head of research for Singapore, agrees that the Tanah Merah Kechil Link site is "probably the most attractive among the new sites as it is next to the above-ground Tanah Merah MRT station in the eastern part of Singapore, and is of a palatable size of 310 units. Ms Song also said the residential and commercial plot in Jalan Anak Bukit is the most interesting site in the latest land sales programme. It is perhaps timely to offer such sites seeing the good response to recently launched residential and commercial developments such as One Holland Village and Sengkang Grand Residences, she said. The site is also near Beauty World MRT station along the Downtown line. "However, there are more conditions attached to such sites, such as the requirement to build an integrated bus interchange (estimated 5,000 sq m GFA) and up to 7,500 sq m GFA for retail. The site is also relatively sizeable (865 residential units) which entails a relatively large land price quantum of over S$1 billion." Source from The Business Times 4 Dec 2019

03 Dec 2019

Government keeps steady supply of private housing for first half of 2020 land sales programme

SINGAPORE - The Government has kept largely unchanged the amount of private residential housing under the government land sales (GLS) programme for the first half of 2020, in view of the supply overhang and as developers' bids for land moderated after property cooling measures. "The Government will continue to monitor the property market closely and adjust the supply for future GLS programmes, as necessary," the Ministry of National Development (MND) said in an announcement on Tuesday morning (Dec 3). The new supply consists of three confirmed list sites and eight reserve list sites that can yield about 6,490 private homes, 114,000 sq m gross floor area (GFA) of commercial space and 1,070 hotel rooms. Of the 6,490 proposed units, 1,775 units are in the confirmed list and 4,715 units on the reserve list, which may not be triggered for sale. The 1,775 units from the confirmed list sites is 60 units or 3.5 per cent more than the 1,715 units under the second half of 2019 GLS programme. The three confirmed list comprises two private residential sites - including one executive condominium (EC) site in Yishun - and one commercial and residential site in Jalan Anak Bukit in Bukit Timah which can yield about 1,775 private homes (including 600 EC units) and 22,000 sqm GFA of commercial space. Ms Christine Li, head of research, Singapore and Southeast Asia, Cushman & Wakefield, noted that the Government was prudent by “pushing out a limited number of sites in the confirmed list while leaving the bulk of supply in the reserve list.” The three sites on the confirmed list is the lowest over the last 5 years, she said. Furthermore, the bulk of units are from the site at Jalan Anak Bukit which will supply 865 units and 20,000 sqm of commercial space. Excluding EC units, there will only be around 1,175 private residential units released in the confirmed list, the lowest since first half 2016 when only 925 private residential units were released. "While the demand for private housing units has increased in the past two quarters, the overall transaction volume has remained modest relative to the period leading up to the introduction of the property market cooling measures," MND said.  Meanwhile, developers’ demand for residential land remains moderate and there continues to be bidding interest for GLS tenders, it added. Furthermore, the supply of private housing units in the pipeline remains high, at around 39,000 units currently, even though it has declined progressively over the past few quarters, MND noted. This pipeline supply comprises around 34,000 unsold units from GLS and collective sale sites with planning approval, and an additional 5,000 units from sites that are pending planning approval. it added. Therefore, the Government has decided to keep the supply of private residential units on the confirmed list for the 1H2020 GLS programme broadly similar to that for the 2H2019 GLS programme, MND said.  Ms Tay Huey Ying, JLL's head of research and consultancy in Singapore, expects the residential site at Tanah Merah Kechil Link to garner the most interest because of its proximity to Tanah Merah MRT Station and its “palatable housing size” of 310 residential units.  While the Jalan Anak Bukit site is near the Beauty World MRT station, she believes this parcel is the most risky of the three confirmed list sites because of its size. Coupled with the expected high investment outlay, we see this parcel attracting moderate competition from developers with deeper pockets,” she added. The reserve list comprises four private residential sites (including one EC site), three white sites and one hotel site. These sites can yield about 4,715 private residential units (including 595 EC units), 92,000 sq m GFA of commercial space and 1,070 hotel rooms. The total amount of commercial space available from both confirmed and reserve sites at 114,000 sq m is 24 per cent higher than the 92,000 sq m for the GLS programme in the second half of 2019. The bulk of new commercial space comes from the 78,000 sq m from a reserve list, multi-use white site in Woodlands Regional Centre. It is one of four residential sites, three white sites and one hotel site that have been carried over to the first-half 2020 GLS programme from the previous half-year. Source from The Straits Times 3 Dec 2019

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