Two freehold residential sites up for grabs

Two freehold residential sites up for grabs

By Pamela Koh | Posted: 09 January 2012 2151 hrs

SINGAPORE: Two freehold redevelopment sites – Asia Gardens and Jade Towers – have been put up for collective sale by tender.

The two sites are located in districts 2 and 19 respectively.

The collective sale of Asia Gardens has an indicative price of between S$302.6 million to S$307.7 million, or about S$1,500 to S$1,525 per square foot (psf) per plot ratio (ppr).

No development charge is payable for this site.

Meanwhile, Jade Towers is expected to fetch between S$108.8 million to S$110.8 million, or S$826 to S$841 psf ppr.

Asia Gardens, an 84-unit condominium development, is the last available freehold residential plot in the Spottiswoode enclave of district 2.

Located along Lew Lian Vale, off Upper Serangoon Road in District 19, Jade Towers comprises two 10-storey blocks with a total of 72 apartments of about 1,453 sq ft each.

According to its marketing agent Savills Singapore, the site can be redeveloped into 101 new condominium units averaging 1,200 sq ft each if the plot utilises a near rectangular configuration.

This is also the first time that both developments have achieved the relevant 80 per cent majority mandate to proceed with the collective sales exercise.

The tender for Jade Towers and Asia Garden will close at 3pm on 16 February 2012 and 29 February 2012 respectively.

- CNA/ck

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

Five BTO projects launched, offering 3,923 flats »« Industrial rent dips on slower growth

Industrial rent dips on slower growth

Industrial rent dips on slower growth

By Pamela Koh | Posted: 09 January 2012 2058 hrs

SINGAPORE: Rents for business park space and offices have stagnated over the last six months.

This is according to research by DTZ which is part of commercial property giant UGL Limited.

Rent for business park space has remained unchanged at S$4.38 per square foot per month in the second half of 2011.

This is a contrast to the robust 6.6 per cent growth registered in the first half.

Likewise, average rent for hi-tech industrial space rose 6 per cent in the first half of 2011 but remained unchanged at S$3.00 per sq ft/month for the rest of the year.

Average rent for first storey conventional private industrial space also stalled in the second half of last year after rising 4.9 per cent in the first half to S$2.15 per sq ft per month.

The growth in rental values for these units also slowed down to 4.9 per cent last year compared to 5.1 per cent in 2010.

DTZ said this is due to the slow down in Singapore’s economy and a decline in manufacturing output last year.

Singapore’s economic growth has slowed to an estimated 4.8 per cent after the exuberant 14.5 per cent growth in 2010.

Manufacturing output fell in 2011, marred by regional supply-side disruptions from natural disasters in Japan and Thailand. Declining global demand as the Euro zone debt crisis deepens has also contributing factors.

Still, there is still a silver lining.

Capital values for industrial space have continued to rise in the second half of 2011 buoyed by investor demand.

Transactions of strata factory space rose more than 10 per cent to 1,733 in 2011, up from 1,562 transactions for the year prior.

For the whole of 2011, capital values for private industrial first storey resale spaces rose 5.7 per cent while that for upper-storey resale spaces grew by 10.8 per cent.

- CNA/ck

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

Two freehold residential sites up for grabs »« Demand for luxury homes still upbeat despite economic uncertainty

Demand for luxury homes still upbeat despite economic uncertainty

Demand for luxury homes still upbeat despite economic uncertainty

By Hetty Musfirah | Posted: 07 January 2012 2010 hrs

SINGAPORE: Demand for luxury private and public homes in Singapore is still upbeat despite a gloomy economic outlook.

The first weekend of the new year saw crowds made up of mostly first-time buyers and families looking to upgrade flocking to several property launches.

Market watchers say the recent cooling measures have also affected demand from foreigners.

It is a busy first day of sales for Riversound Residence which is located off Sengkang East Drive.

Its private condominiums cost between S$453,000 and S$1.8 million.

By 2pm on Saturday, four penthouse units costing some S$1.5 million each were taken up – three by Singaporeans and the other by a foreigner.

The developer said this trend is not surprising as the recent cooling measures requiring foreigners to pay an extra 10 per cent in stamp duty have dampened demand from foreigners.

Despite a slowing economy, the overall take up rate is projected to be healthy with 60 to 70 per cent of the 250 units released in the first phase likely to be snapped up before the Lunar New Year.

Qingjian Realty’s deputy General Manager Li Jun said: “Judging from the response today, there are still many people visiting the showroom. They are mostly locals. The development is also targeting those in the Punggol-Hougang area.”

Homebuyer Mr Loh Beng Huat said that the time may be right for an upgrade.

He said: “This launch is quite good so I think I’m keen. That’s why I am now looking at the financial area and see whether I can afford and upgrade. I have stayed in HDB for a number of years already so I think it is a good time for me to look into a new investment in a private condominium.”

Near by at Parkland Residences – a Design, Build and Sell Scheme (DBSS) project – crowds doubled on the second day of its launch.

Mr Lee Yoon Moi, who is the Chief Operating Officer at Low Keng Huat – the company behind the development, said: “Generally, there are a lot of young couples and also families. The more popular ones are the four and five rooms units.”

Parkland Residences is the only DBSS project within the Hougang & Punggol area and the first of only two DBSS projects this year after the government halted land sales for such developments last year.

Analysts say this is keeping demand up with flats here costing between S$359,000 and S$706,000.

“Most of it is done up so you don’t need to pay much for renovation,” said one potential buyer.

“The prices here are relatively cheap compared to the other DBSS projects,” said another.

Agents believe Parkland Residences will see a strong take-up rate when bookings begin on January 11.

The final DBSS project will be launched at Pasir Ris in March or April 2012.

The Executive Condominium (EC) at The Rainforest, near Choa Chu Kang MRT station, is also proving to be a hit with young couples.

“The EC is kind of like the in-thing now these days and we think it is a good opportunity for us to pick up a first-time house,” said one couple.

“We are in our 20s so we are looking at projects like this that are appealing to us. I think it is very good that the government is releasing projects in the mature estates instead of just Punggol and Sengkang,” another couple said.

The last EC that was launched near Choa Chu Kang is now about 80 per cent sold.

- CNA/fa

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

Industrial rent dips on slower growth »« Home prices rise in 2011 despite cooling measures

Home prices rise in 2011 despite cooling measures

Home prices rise in 2011 despite cooling measures

By Millet Enriquez | Posted: 05 January 2012 2140 hrs

SINGAPORE: Private home prices and rents in Singapore rose in 2011 from the previous year despite cooling measures, said property consulting firm DTZ.

The measures included imposing seller’s stamp duty and a reduction in loan-to-value limit.

In its report released on Thursday, DTZ said resale prices of leasehold condominiums in suburban areas increased 8.2 per cent on-year.

This makes it the fastest growing segment among non-landed housing according to a basket of completed condominiums tracked by DTZ.

Fourth quarter flash estimates also showed HDB resale prices went up last year by 10.7 per cent.

But prices of luxury condominiums only saw a 1.0 per cent on-year growth in 2011.

DTZ said the global economic uncertainties dampened demand for luxury condominiums, dragging prices down by 0.7 per cent in the fourth quarter.

“As a larger proportion of purchases in the luxury segment are by foreigners who are now subject to the Additional Buyer’s Stamp Duty (ABSD) of 10 per cent, this segment is expected to see a sharper fall in prices than other segments in 2012,” said Ms Chua Chor Hoon, head of Asia Pacific Research, DTZ.

Home prices in the prime freehold segment also took a hit, growing only 4.6 per cent on-year, compared to 8.3 per cent in 2010.

This contrasted with a sharp 12.8 per cent on-year increase in resale prices of freehold landed homes in the prime districts. Leasehold landed homes in suburban areas also rose 12.4 per cent last year.

Rents, meanwhile, were also higher in 2011, led by condominium rents which moved up by 8.9 per cent due to demand from foreign professionals with higher housing allowances.

However, rents for luxury condominiums only grew 1.3 per cent on-year.

From January to November, private home sales of 15,393 units in 2011 already outpaced the 15,288 units sold in the same period in 2010.

Volume is expected to fall in December and carry through in 2012 following the property cooling measures.

“Historically, significant price falls have been triggered by external events that affect the economy rather than cooling measures. The projected economic slowdown in 2012 will thus have a more significant impact on buyer sentiment and consequently on demand and prices,” said DTZ’s Ms Chua.

Overall, DTZ expects a take-up rate of 16,000 for 2012, slightly lower than the 16,292 units sold in 2010.

- CNA/al

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

Demand for luxury homes still upbeat despite economic uncertainty »« Punggol Central site gets top bid of $206.2m from Wee Hur

Punggol Central site gets top bid of $206.2m from Wee Hur

Punggol Central site gets top bid of $206.2m from Wee Hur

Posted: 15 December 2011 2140 hrs

SINGAPORE : A Government Land Sales site in Punggol has received a top bid of $206.2 million.

The public tender closed on Thursday with 13 bids received.

Wee Hur Development is the top bidder for the Punggol Central site.

Opal Star put in a bid of $200.88 million and Lum Chang Building Contractors, $198.42 million.

This is the first condominium site tender to close since the latest property cooling measures were announced on 7th December.

Nicholas Mak of SLP International Property Consultants notes that Wee Hur’s bid is 13.2 percent lower than a nearby sold in 2010.

He says the bid reflects an increased level of caution, mainly due to the perception of higher risk in 2012.

- CNA/ch

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

Home prices rise in 2011 despite cooling measures »« Government’s cooling measures dampen property auction sales

Government’s cooling measures dampen property auction sales

Government’s cooling measures dampen property auction sales

By Millet Enriquez | Posted: 16 December 2011 2204 hrs

SINGAPORE : The government’s property cooling measures have dampened the performance of auctioned properties in 2011.

Property consulting firm Colliers International said that out of 542 properties put up for auction this year, only 46 were sold.

These raked in S$95.62 million in sales value.

But it is much lower than the S$223.9 million achieved from the sale of 71 properties in 2010.

This year’s figure is also the lowest since 2008 when total sales value was at S$83.67 million.

Ms Grace Ng, deputy managing director of Colliers International, said: “The fall in both volume and value of sales at property auctions was in part the result of the Eurozone crisis and the ensuing volatile stock market, which rocked investors’ sentiments – leaving buyers with less bullish bids for properties put up for sale since August 2011.”

Sellers’ asking prices have also remained high and this stand-off has led sellers to lease out their properties instead.

Buyers, meanwhile, have turned their sights to shops and shophouses, which offer better yield of four to six per cent, compared to two to three per cent for residential properties, said Ms Ng.

This year, auctioned retail properties contributed 39.7 per cent to the total sale value while residential properties comprised 28.4 per cent.

On the industrial property front, around 13 were sold to hit total sales of S$14.18 million.

This is about 37.3 per cent higher than the S$10.33 million for 12 industrial properties sold a year ago when demand for smaller strata-titled units was strong.

Overall, Colliers says sales value for the auction market may also continue to fall in 2012 and may come close to the level it reached during the 2008 global financial crisis.

The firm warns that some industrial properties may even be put up for sale as small businesses face a tougher environment ahead.

Still, the low interest rate and high liquidity environment will continue to prop up the property auction market.

Colliers also sees healthy demand for landed residential properties and old apartments in secondary markets.

But with foreigners kept at bay by the government’s latest move on stamp duties, sales of residential properties may be affected.

- CNA/ch

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

Punggol Central site gets top bid of $206.2m from Wee Hur »« Analysts expect property prices to soften in 2012

Analysts expect property prices to soften in 2012

Analysts expect property prices to soften in 2012

By Wong Siew Ying | Posted: 14 December 2011 1949 hrs

SINGAPORE : The Singapore private residential property market was hit with two rounds of cooling measures in 2011 – moves widely described by analysts as harsh.

Coupled with an expected slowdown in the global economy, home-buying decisions may stall in 2012.

And developers may also roll out more incentives to prop up sales.

Despite the uncertain economic outlook in 2011, home-buying interest remained healthy judging by the long queues at recent property launches.

Analysts expect new private homes sales to hit a total of 15,000 to 16,000 units this year, compared to nearly 16,300 units sold in 2010.

Next year, crowds at property launches could get thinner as weak economic sentiment undermines the confidence people have in keeping their jobs.

Sales volume for 2012 is likely to dip further to under 14,000 units for the whole year.

Dr Chua Yang Liang, Research Head, Jones Lang LaSalle, said: “If the transaction volumes were to declined and sustained into 2012, then prices are expected to be affected. From our forecast we think possibly between 10 to 15 percent on the downside.”

Analysts say there is no chance of recovery for high-end property next year, with prices likely to slide 20 per cent.

The sale of high-end units was already lacklustre before the government imposed an Additional Buyers’ Stamp duty in December, which will further dampen demand from foreigners.

Market watchers expect some diversion of investor interest from residential, to other real estate including office and strata industrial properties.

Meanwhile, the cheaper home loans and genuine latent occupier demand are expected to continue to drive the mass market home segment.

However, prices for such homes could see a downward correction of about 10 per cent next year

To mitigate the impact of the cooling measures, experts say developers are likely to dangle a carrot in front of home buyers.

Chia Siew Chuin, Director, Research & Advisory, Colliers International, said: “They may have to even align their prices to move the sales or even look at incentives, soft sale kind of measures, probably extending rebates in the sense of discounts or even absorbing stamp duty on behalf of buyers or extending other kinds of incentives not only to buyers but also to agents to help them move sales.”

Developers will also continue to launch new projects, especially those in the suburban areas.

Donald Han, Vice Chairman, Cushman & Wakefied, said: “We will continue to see more launches coming up for mass market, mainly because the government sales of sites that have been launched in the last 24 months…a record number of over 20 sites will have to come into the market. They (the developers) have to do it now as these are on 99-year leases, unlike the high-end or mid-end projects which are traditionally freehold projects having a longer tenure life.”

Analysts say developers will also be more measured in their land bids next year, and prices for sites that are less attractive could dip by some 10 to 12 per cent.

- CNA/ch

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

Government’s cooling measures dampen property auction sales »« Sing Holdings buys Robin Road site for $52m in collective sale

Sing Holdings buys Robin Road site for $52m in collective sale

Sing Holdings buys Robin Road site for $52m in collective sale

By Millet Enriquez | Posted: 14 December 2011 2038 hrs

SINGAPORE : The collective sale of a 16-unit apartment located at Robin Road has gone through for $52 million, says property consulting firm Credo Real Estate.

The winning bid came from Sing Holdings, which vied for the two 4-storey block apartment that forms part of four adjoining properties.

Ms Yong Choon Fah, Executive Director of Credo Real Estate, said: “More than 80 per cent of the owners at 2 to 8 Robin Road have consented to Sing Holdings’ offer of $52 million, which translates to $1,462 psf per plot ratio based on an allowable plot ratio of 1.54, including balconies.”

Ms Yong added “Development charge is not payable for the 10 per cent balconies Gross Floor Area space allowed.”

Sing Holdings had previously won the tender for two other adjoining developments: Robin Court for $77.33 million and Robin Star for $47 million via by private treaty.

Combined, the site can be turned into a joint condominium development of up to five storeys.

The latest en bloc site measures 23,084 sq ft, and together, Sing Holdings will have a total land area of 87,963 sq ft.

- CNA/ch

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

Analysts expect property prices to soften in 2012 »« Three more sites for housing

Three more sites for housing

Three more sites for housing

by Avelyn Ng 04:45 AM Nov 30, 2011

SINGAPORE – The Government has put more land on the market, releasing three new sites for private housing that are expected to yield about 1,830 homes.

The 99-year leasehold sites – at Mount Vernon Road, Jalan Lempeng and Kovan Road/Simon Road – are put up for sale by public tender under the Confirmed List of the 2nd half 2011 Government Land Sales (GLS) Programme, the Urban Redevelopment Authority (URA) and Housing Development Board (HDB) said yesterday. They will add to the sites that have been launched under the GLS Programme this year which is expected to yield 14,945 units.

The 2.1 hectare land parcel at Mount Vernon Road is near Bartley MRT Station and can be developed into 785 housing units. The 2.4 ha site at Jalan Lempeng is near Clementi Town Centre and can yield about 685 units while the 1.7 ha plot at Kovan Road / Simon Road can yield about 360 units.

The tenders for the three sites will close on Jan 10, Jan 12 and Jan 18, respectively.

Property consultancy ERA said strong bidding would be likely for the sites at Jalan Lempeng and Kovan/Simon roads as they are located within developed residential areas that are in close proximity to amenities. The rapid sales at Trivelis also indicate there is a strong demand for mass market housing in Clementi as there is a limited supply of new apartments in the mature estate, ERA added.

The Bartley Road site is much nearer to industrial estates compared to the other two, ERA noted, saying it would likely appeal only to employees who work within the vicinity. The lack of shopping facilities is also a setback, it said. Avelyn Ng

Source : TODAYonline – MediaCorp Press Ltd’s copyright

Sing Holdings buys Robin Road site for $52m in collective sale »« New property curbs seen to cool prices

New property curbs seen to cool prices

New property curbs seen to cool prices

By Joanne Chan | Posted: 08 December 2011 1241 hrs

SINGAPORE : The Singapore property market is bracing for a slowdown, with experts predicting a steep drop in transaction volume and prices over the next few months.

This comes after tougher residential property measures kicked in on Thursday, hours after they were announced on Wednesday night.

Under the new measures, foreigners and companies must pay an additional stamp duty of 10 percent of the value of residential property purchases in Singapore.

Permanent residents who buy a second property and citizens who buy three or more properties will pay an extra 3 percent.

The new stamp duty is on top of the prevailing fees of between one and three per cent.

Property buyers hit hardest by the new measure would be foreigners like Norman Lu.

The 34-year-old healthcare consultant arrived in Singapore a year ago to work in a multinational company.

Mr Lu is renting a place, but in the last three months he has been looking to buy a condominium in Paya Lebar or Braddell. However the new rules have put a stop to such plans.

He said: “We are very disappointed. Even though we are foreigners, we have been working in Singapore for a year, we also contribute to this country. So as a foreigner, we feel that the government does not welcome us.”

Mr Lu said he was on the verge of closing a deal, but will need to evaluate his options now.

He said: “(There is) 80 per cent (chance that) I will not buy now. I will wait for one year, then I can get PR (permanent resident status) then I will buy a private condo or buy an HDB flat.”

His other options include leaving Singapore, “because I can easily find another job opportunity in another country” and “if property owners drop the price by 10 to 15 per cent, then I will buy a condo immediately because I want to stay in my own property.”

Market watchers expect transaction volumes in the core region like Orchard Road and Bukit Timah to slump by 40 per cent, because of the significant number of foreign buyers for such properties.

Prices will also be hit, with a possible correction of up to 20 per cent.

Mohamed Ismail, CEO of PropNex, said: “It takes a very bullish decision from a foreigner to come and invest in Singapore in today’s market, having to pay a 13 per cent stamp duty upfront, and (being) subjected to the Seller’s Stamp Duty in the next four years, of 16 per cent, 12 per cent, 8 per cent, and 4 per cent.

“And even if he sells after four years, if he buys a property today, he must expect at least a 25 to 30 per cent increase in the property price to break even, taking into consideration other costs and interests and all other elements.”

Mr Mohamed said there were a few foreigners who had already expressed interest in buying properties and were planning to sign the option papers on Wednesday, but pulled out after the announcement of the new rules.

He added that even though these buyers will not be affected by the higher stamp duty, they felt their returns will be severely impacted.

The mass market segment – which has seen more foreign buyers moving in – is also expected to dip, which may be a boon for Singaporeans.

Mr Mohamed said: “When more foreigners enter the mass market, they are competing with Singaporeans and Singaporeans’ aspirations are challenged mainly because the prices keep increasing. Overall, the buyers are now going to wait and see….with such a policy, where is the correction before entering the market.”

He added: “I do expect, in the next six months, the mass market properties are likely to see a correction of 10 to 15 per cent.”

New developments are springing up all over Singapore, but may soon have difficulties finding buyers. Property watchers expect the market to be fairly quiet over the next one to two months.

December and January normally see fewer transactions due to the school holidays and New Year celebrations. And with the latest round of cooling measures, buyers are expected to adopt a wait-and-see approach, hoping that prices will drop, before dipping their toes into the market again.

- CNA/ck/ms

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

Three more sites for housing »« Additional buyer’s stamp duty for private property from Dec 8