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Updated as of 22 Oct 2012  

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Premium Executive Condominium #SingaporeEC in the Heart of Punggol (Near Punggol MRT)

By Qingjian Realty (Edgefield Plains) Pte Ltd

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JTC releases 3 Industrial Sites For Sales By Tender

INDUSTRIAL MARKET

JTC releases 3 industrial sites for sale by tender

JTC Corporation released three industrial sites for tender yesterday, through the confirmed list of the Industrial Government Land Sales Programme.

The sites are a plot at Serangoon North Avenue 5 and two plots at Tuas South Street 8.

The 0.75ha site in Serangoon North has a 2.5 plot ratio (ratio of maximum permissible gross floor area to land area).

It is zoned for Business 1 development, which means it is for light and clean industrial uses that do not impose a nuisance buffer of more than 50m and can therefore be found in selected housing estates such as Bukit Batok and Woodlands. The plot is being sold on 30-year-leasehold tenure.

No More Pre-Installed Taps and Basins in New Flats

RESIDENTIAL MARKET

No pre-installed taps, basins in new flats

Home owners are being given greater flexibility when it comes to choosing flats and fixtures to suit their tastes.

Sanitary fittings such as wash basins and taps are no longer being fitted in new flat launches, as of yesterday.

This means owners will need to opt in, to the tune of up to $4,300, if they want them.

New Launched BTO Flats to Keep Tabs on Prices

RESIDENTIAL MARKET

Another 2,000 Built To Order flats to be rolled out in 2012 to keep lid on prices

The Housing and Development Board (HDB) is rolling out more flats this year in a bid to arrest runaway price increases and help meet housing demand.

An additional 2,000 units will be rolled out this year, bringing the new supply of Built-to-Order (BTO) flats up to 27,000 over the 25,000 originally planned.

Singaporeans Buy More Luxury Homes in 2012

RESIDENTIAL MARKET
S'poreans buy more luxury homes this year

After a short lull in the first quarter of this year, Singaporeans seem to be trotting back to the luxury property market, with the total number of units purchased by them so far this year surpassing the total number transacted by this group in the whole of last year.

A total of 46 luxury homes were purchased by Singaporeans in 2012, as compared to 40 homes in 2011.
The spike was contributed primarily by transactions made in Q2, which saw a total number of 31 luxury homes purchased by Singaporeans as compared to 11 in the same period last year.

The proportion of purchases made by Singaporeans was found to have increased significantly from 19 per cent in 2011 to 35 per cent in 2012 year to date almost on a par with foreigners.

For the first three quarters of this year, foreigners purchased 49 homes, contributing to approximately 37 per cent of the purchases made. This is significantly lower than the 100 luxury homes purchased in 2011, which contributed to 47 per cent of luxury homes purchased last year.

The remaining 27 per cent of luxury-home transactions were made by Singapore permanent residents and companies who purchased 32 and four luxury homes so far this year respectively.

Luxury home prices, which have fallen 2.0 per cent over the past three quarters, also stabilised in Q3, in part due to increased purchases by local buyers. The average price per square foot (psf) for Q2 and Q3 remained the same at $2,621.

Luxury homes are defined as non-landed projects with most units larger than 2,000 sq ft in size and generally costing more than $2,500 psf.

In addition, landed homes continues to lead the price increase as buyers found more value in the larger floor areas and are driven by the scarcity fear factor that prices will rise beyond their reach.

Average resale prices of freehold landed homes in the prime districts rose by 1.2 per cent in Q3, higher than the 1.0 per cent rise in Q2. In the suburban areas, prices rose even more, by 2.4 per cent on average, double the 1.2 per cent increase in Q2.

Prices of freehold apartments/condominiums in the prime districts of 9, 10 and 11 as well as in the suburban areas also rose in Q3 by 1.0 per cent.
Source: Business Times – 26 September 2012

Four Industrial Property Parcels Up For Sale

INDUSTRIAL MARKET

Four industrial property parcels up for sale

Four buildings - a seven-storey corner terrace building, a five-storey industrial building, a single storey factory and an industrial redevelopment site - go on sale today.

The terrace building at 1 Kaki Bukit Place, with a built-in area of 30,570 sq ft, sits on approximately 11,950 sq ft of land. Its 60-year lease began on Nov 20, 1995.

Luxury - A Big Draw For Heron Bay

RESIDENTIAL MARKET

Luxury features make Heron Bay a big draw

Heron Bay Executive Condominium (EC) in Upper Serangoon View, one of the more lavish Executive Condominium projects, drew 1,664 applications for its 394 units after the one-week e-application closed on Sunday.

This translates to approximately 4.2 applicants for each unit, the highest subscription rate for an Executive Condominium over the past few years.

Singapore Property Cooling Measures Bringing in the Money!

Property cooling steps net $500m for taxman

THE taxman has collected more than half a billion dollars from additional stamp duties imposed as part of property cooling measures.

The Additional Buyers Stamp Duty (ABSD) has contributed the bulk of that - $450million between its inception on Dec8 last year and the end of last month.

A further $51million has come from the seller's stamp duty since it was implemented in February 2010, the Inland Revenue Authority of Singapore (Iras) said.

According to Iras' annual report, it collected $2.5 billion in stamp duty from sale and purchase agreements in its financial year ended March 31, 2011.

What's the Buzz about $1 million HDB Flat

$1,000,000 HDB flat

What it's all about

HOME prices in Singapore continued to set new records this month, with the sale of a Housing Board flat hitting the psychological $1 million mark.

A resale executive flat in Queenstown is in the process of being sold for a mindboggling $1 million, beating a record set by a Bishan executive maisonette when it sold for $980,000 barely a week earlier.

Just a few days later, it was reported that a 1,680 sq ft HUDC maisonette along Shunfu Road was sold in July for $1.28 million, topping last year's $1.22 million sum for a 1,668 sq ft HUDC flat in the same area.

Star Vista Set to Dazzle Buona Vista

RESIDENTIAL MARKET

Star Vista set to dazzle Buona Vista

THE one-north area is fast taking shape with the new Star Vista mall.

The CapitaMalls Asia outfit - the first major mall in Buona Vista - has about 100 shops, including some that are new to Singapore, like eatery Morganfield's.

The Star Performing Arts Centre, owned and managed by New Creation Church's Rock Productions, is above the mall.

Latest Land Tender Reflects Surge in Optimism for Developers

RESIDENTIAL MARKET

Surge in optimism reflected in Prince Charles Crescent tender

The quality of the bids received at the close of the tender for a 99-year leasehold residential site at Prince Charles Crescent reflects general optimism in the market. The site received a top bid of $516.3 million, or $960.28 per square foot per plot ratio (psf ppr).

The top bid was submitted by a tie-up between Wing Tai's Wingstar Investment, Metro Australia Holdings, and UE E&C's unit Maxdin. It trumped consultants' expectations in July, when the site was triggered, that it could fetch between $760-$850 psf ppr.

Upper Paya Lebar Building Going For $32m

INDUSTRIAL MARKET

Upper Paya Lebar industrial building going for $32mA freehold industrial building at 14 Little Road, has been put up for sale with an indicative price of $32 million, or $513 per square foot per plot ratio.

The existing development, Tropical Industrial Building, is located off Upper Paya Lebar Road. The eight-storey building has parking spaces for 20 cars in the basement.

Dairy Farm Rd Land Sales Attracts Bid of $244.32m

RESIDENTIAL MARKET

Dairy Farm Rd residential plot attracts top bid of $244.32m

A partnership between First Shine Properties and Meadows Bright Development has placed the top bid for a 99-year-leasehold private housing site on Dairy Farm Road.

Their bid of nearly $244.32 million works out to $616 per sq ft per plot ratio (psf ppr), ahead of earlier market expectations since the launch of the site in July.

The top bid was 9.9 per cent higher than the next highest bid of $560.49 psf ppr from UOL Group unit Secure Development.

CPF Board's Land Up For Sale

Commercial MARKET

CPF Board's space at 79 Anson Rd up for sale

THE Central Provident Fund Board has put its space at the freehold 79 Anson Road up for sale. The price expected to be achieved for the mostly office space is at least $2,000 per square foot on strata area of 100,007 square feet, or $200 million.

Singapore Home Sales Down in August

RESIDENTIAL MARKET

Private home sales down 27% in August

A dearth of major new project launches in August as developers avoided the Hungry Ghost month led sales of private residential homes, excluding executive condominiums (ECs), to fall 27 per cent from a month ago.

URA's monthly developers' sales statistics for August showed that 1,421 units were snapped up last month, lower than the 1,946 in July. Property consultants say that the drop in sales was expected because the Hungry Ghost month typically sees slower transactions, and that sales figures this year are still expected to smash last year's record.

Singapore Property May Boom Again!

RESIDENTIAL MARKET

Property here may sizzle from QE3 heat

The possibility of a fresh wave of capital flows into Singapore as a result of the latest round of quantitative easing (QE3) in the United States has raised the prospect that the property market could heat up again. This, in turn, could lead to a new round of government measures to keep prices in check.

Thousands of DBSS Flats Unsold Since Suspension of Scheme

RESIDENTIAL MARKET

Over 1,000 DBSS flats still unsold since scheme's suspension

MORE than 1,000 Design, Build and Sell Scheme (DBSS) flats have been sitting unsold since the scheme was suspended last year.

Experts say demand for these pricier homes has likely been dampened by the bumper fresh supply of build-to-order (BTO) flats since both have a monthly income ceiling of $10,000.

HUDC Estates That Are Privatised

RESIDENTIAL MARKET

12 of 18 HUDC estates already privatised

HUDC units were introduced in the 1970s for middle-income families who could afford bigger flats. There were 18 HUDC projects, comprising 7,731 units. All were on 99-year leases.

The Housing Board stopped building them in 1987 after private property prices fell and interest in HUDC units dwindled.

HUDC Unit Breaks Record Price!

RESIDENTIAL MARKET

Record $1.28m for HUDC unit

A new record has been set for an HUDC flat.

The 1,680 sq ft maisonette along Shunfu Road was sold in July for $1.28million, topping last year's $1.22million sum for a 1,668 sq ft HUDC flat in the same area. This works out to about $762 per sq ft for the new record.

OverSupply Concern Made Mild by Industry Watchers

RESIDENTIAL MARKET

Industry watchers assuage over-supply concerns

Even as a large pipeline of residential units in Punggol has sparked market chatter over a possible over-supply, other areas in Singapore, including the Kovan/Lorong Ah Soo/Hougang belt, Pasir Ris, and Bukit Panjang/Upper Bukit Timah too face substantial upcoming supply.

That being said, these areas are relatively well supported by amenities in the region, and healthy take-up by HDB upgraders.

Pasir Ris is arguably a self-contained township, given that leisure options (Pasir Ris Beach and Downtown East) supplement job opportunities (employment hubs listed above, including Pasir Ris Industrial Drive/Loyang).

The Bukit Panjang/Upper Bukit Timah/Cashew/ Chestnut Avenue belt on the other hand, which can expect some 3,920 private units coming on-stream from 2014, will have its "hibernating potential" unlocked with the completion of new MRT stations in the Downtown Line 2.

While there are no employment hubs within the vicinity, it is within the range of Jurong East, which is envisioned to be Singapore's largest regional hub outside the city centre.

The Hougang/Lorong Ah Soo/Kovan area on the other hand can expect rejuvenation, through the spate of new projects lined up, including mixed use developments with strata malls which will renew the residential identity.

Indeed, a buyer's profile analysis through caveats lodged for projects launched over the past two years show that most of the areas surveyed have a larger share of buyers who are HDB dwellers, with Punggol, Sembawang, and Yishun having the highest average share of purchasers with HDB addresses, at 73 per cent.

Source: Business Times – 17 September 2012

MRT Worksite Causing Cracks in Bt Timah Homes

RESIDENTIAL MARKET

Cracks in Bt Timah homes near MRT worksite

The Land Transport Authority (LTA) has started temporary work to fix damage to several houses in Bukit Timah's Watten Estate, believed to be linked to nearby construction of the Downtown Line.

Residents of the terraced and semi-detached houses across from the site of the upcoming Tan Kah Kee MRT station said they began noticing hairline cracks in walls inside and outside their homes one to two months ago.

New Launches at Punggol Waterfront

RESIDENTIAL MARKET

Punggol waterfront sees wave of launches

The wave of property launches in waterfront Punggol that has left home buyers spoilt for choice is about to grow even bigger.

At least seven private condominiums have been launched in the past year along with five executive condominium (EC) projects since EC development Prive - the first in Punggol - was launched in December 2010.

Office Rents Expected to Drop Further

Commercial MARKET

Office rents expected to face further decline

OFFICE rents in Raffles Place are expected to decline by 12-15 per cent in 2012 and 2013, before returning to growth in 2014.

Net absorption of purpose-built office space for the first half of 2012 is estimated to be almost 720,000 sq ft.

Prime rents in Singapore have dipped 3 per cent since the end of last year, despite being still the third highest, at US$945 per square metre (psm) per annum.

Property Auction Hits New High During Ghost Month

RESIDENTIAL MARKET

Ghost Month auction values hit 3-year high

The successful auction of four properties saw property auction sale values during the Hungry Ghost Month period rebound to hit a three-year high of $10.35 million this year.

This was largely attributed to the forced sale of a high-end condominium apartment at The Boulevard Residences (BLVD) at Cuscaden Walk, which was knocked down at $5.7 million.

Executive Condominium Attracts Luxury Seekers

RESIDENTIAL MARKET

Exec condo comes with luxury features

A 394-unit executive condominium (EC) #SingaporeEC project located along Upper Serangoon View is banking on a love of luxury to draw buyers.

Heron Bay's developers said that the project will feature living rooms with ensuite private pool cum jacuzzi, complimentary fibre broadband service from M1 during the first year of occupancy, a hydroactivated water swimming pool with "healthful cell-hydration properties" and a seasports recreation centre with kayaks for free rental, among other amenities.

Financing Homes With Short Leases

RESIDENTIAL MARKET

Not all banks will finance homes on short leases

Some banks here say they are willing to finance new homes with shorter leases, but buyers might have to pay off these loans more quickly, or borrow less.

They were responding to the Urban Redevelopment Authority's (URA) announcement last week that it will offer its first residential site with a variable lease option of 30, 45 or 60 years for sale.

The 1.02ha land parcel in Jalan Jurong Kechil can also be developed for retirement housing.

Million Dollar HDB Deal Almost Confirmed

RESIDENTIAL MARKET

Million-dollar HDB deal set in motion

IT'S almost confirmed: A million-dollar record price for a public housing flat looks ready to be set after the buyer and seller of an executive apartment along Queenstown's Mei Ling Street went through the first appointment with HDB yesterday, with that agreed-upon price.

The 150 square metre (1,614.6 square foot) home with three bedrooms and a study comes up to about $619 per sq ft (psf), also a new record for HDB flats. Both buyer and seller are Singaporeans.

GuocoLand Sells 40 Leedon Units in Private Preview

RESIDENTIAL MARKET

GuocoLand sells 40 Leedon Residence units

Malaysian tycoon Quek Leng Chan's Singapore-listed property arm GuocoLand has sold about 40 units or 10 per cent of the total 381 units in its freehold Leedon Residence condo in the Holland Road area, BT understands.

It began a private preview of the project in mid-August at an average price of $2,000 per square foot. The developer is not offering any discount or stamp duty absorption.

For the preview, GuocoLand has released 70 units - mostly three and four bedders.

More HDB Supply but can Road Network Cope?

RESIDENTIAL MARKET

More HDB flats on the way, but can road network cope?

THE Housing Board is expected to complete building five Build-to-Order (BTO) housing projects in Yishun by 2014, but the road network to support the additional residents will be ready only a year later.

This time gap worries Ms Lee Bee Wah (Nee Soon GRC), who foresees it causing massive jams along Lentor Avenue.

She was not the only MP expressing concern yesterday over the potential problems arising from the ramp-up in the building of BTO flats.

Government Delays Addressing DBSS Issue

RESIDENTIAL MARKET

Govt in no hurry to finish DBSS review

There is no rush to complete the review of the Design, Build and Sell Scheme (DBSS), given the government's current priority to ramp up Built-To-Order flats and executive condominium (EC) units.

This is despite the fact that DBSS land sales have been suspended since July last year, following a public outcry over a Centrale 8 DBSS unit in Tampines bearing an original price tag of $880,000. The DBSS scheme, which allows private developers to design and build some public flats, was introduced in 2005 to give flat buyers more choice.

Singapore Still Not the Highest in Home Capital Jump

RESIDENTIAL MARKET

Domestic buys behind world home price hike

CITIES experiencing strong domestic demand for homes, such as Hong Kong, Moscow, London and Singapore, recorded the strongest growth in home prices in the first six months of the year. Hong Kong registered the sharpest jump in prices to top the chart as the most expensive city to buy a home in.

Best Performing REITs - Singapore's the One.

Singapore's REIT, or real estate investment trusts, yield the best returns in the world. This performance is luring investors soon after a property shopping spree across Asia, thus giving them a broader stream of income.

According to Bloomberg, 'Singapore REITs have outperformed the city-state’s benchmark Straits Times Index, which has climbed 14 percent this year. The 10-year government bond yield in Singapore was 1.38 percent as of Aug. 29. Adjusted for inflation, Singaporean savers currently receive a negative real return on their savings of 4.79 percent.'

While Ada Choi and Leo Chung, CBRE analysts, wrote in a report on Asia's REIT that, 'Although Asian REITs are expected to remain in buying mode, they will likely turn more selective towards future acquisitions, with yield enhancement and insulation from the global economic slowdown emerging as important criteria.'

(Source: Bloomberg)

Who Says There is a Property Bubble?

RESIDENTIAL MARKET

Property bubble? Read the numbers

Property prices tend to rise faster when the gap between real GDP growth and interest rates is bigger. There were eight years when the URA private property index chalked up double-digit growth in real terms (that is, net of inflation). Those years were 1989, 1991 to 1994, 1999 and 2007 and 2010. In those eight years, real GDP growth was higher than real interest rates by an average of 8.4 percentage points. The median was 7.4 points.

So, looking back, the big property bubble of 1993 and 1994 was caused by too low a real interest rate. In 1993, real GDP growth was a blistering 11.5 per cent while the real interest rate was a mere 0.6 per cent. In 1994, real GDP surged 10.6 per cent, while the real interest rate was zero.

Freehold or Leasehold? - Choose Wisely

RESIDENTIAL MARKET

Property buyers, mind that lease

When investing in private property, people hold the notion that freehold is best and 99-year leasehold is to be avoided, but this view has been tested in recent years.

Values for many leasehold properties are holding up well and some are even outstripping that of similar freehold developments, so the old certainties do not always apply.

Freehold is not a universal concept either. Residential land in China is typically sold with tenure of 70 years and only 50 years in some cases in Hong Kong.

Does it pay to invest in Shoebox units?

RESIDENTIAL MARKET

It may not pay to invest in shoebox units

A RECENT report has identified hot spots across Singapore for "shoebox" condominium homes but has questioned the viability of these tiny condominium units as investments.

Even before the Government's move this week to restrict the ballooning number of shoebox condominium units outside the central area, market experts were raising a red flag.

These homes of less than 50 sq m used to be mainly in the central areas, but many small studio apartments are now springing up on the outskirts.

HDB and Private Resale Prices and Rents Rise

RESIDENTIAL MARKET

Resale prices, rents rise for private and public housing

RESALE home prices and rents have climbed across the board after a lull in July, according to data out yesterday.

HDB housing and private housing both posted strong showings, and indicate that the third quarter might be a more buoyant one for the property market.

Private resale prices were up 4.5 per cent last month over July.

This puts the average resale prices in July and last month at $1,134 per sq ft (psf), 1.2 per cent more than $1,121 psf in the second quarter.

Singapore Condominium rents increased by 2.4 per cent in the same period.

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HDB Resale Flats smash S$980,000 Price Tag!

RESIDENTIAL MARKET

Seven units smash $980,000 price tag

SEVEN HDB resale flats have been sold for at least $980,000 - five in this year alone, property agency data show.

And according to the Singapore Real Estate Exchange, which collates information from the Housing Board and major property firms, a $1 million deal for an executive maisonette in Queenstown is in the works.

All seven transactions were in mature towns where there are well-developed transport links and amenities.

Three were in Bishan, two in Queenstown, and one each in Kallang and Toa Payoh. They range from 1,180 sq ft to 1,850 sq ft.

ERA Realty key executive officer Eugene Lim said these flats are likely to be on higher floors, well maintained and nicely done up, saving the new owner a tidy sum in renovations.

Upward prices of mass market condominiums are also driving up the prices of premium public flats.

A typical unit at the 99-year leasehold Watertown condominium in Punggol, for instance, can fetch about $1,300 psf. In contrast, the latest record-breaking deal for the 1,800 sq ft executive maisonette in Bishan cost about $550 psf.

Buyers of premium flats are typically private-property downgraders who have cashed out and want to live in a flat of comparable size. They can also afford high cash over valuation (COV).

There were two recently reported transactions where such downgraders paid high COVs - $168,000 for an executive maisonette in Tampines and $135,000 for a five-room flat in Holland Drive.

Source: The Straits Times – 7 September 2012

Bishan HDB Maisonette sold at Record Price.. again!

RESIDENTIAL MARKET

Bishan HDB executive maisonette changes hands for record $980,000

DESPITE its steep $980,000 asking price, a Bishan executive maisonette was snapped up on the first day of an open house held to sell it.

The buyers are a Singapore citizen and her Chinese-national father, and the seller is a Singaporean woman who is relocating to Shanghai for work.

The price tag makes this the most expensive Housing Board (HDB) resale flat sold. The last record was held by an executive flat in Toa Payoh, which was sold for $910,000 in May this year.

The $980,000 includes a $200,000 cash over valuation (COV), which is a premium paid to the seller in cash. It is also believed to be the highest ever COV reported.

ERA Realty's Cheryl Clare Ng, the agent of the Bishan seller, said 40 people viewed the 25-year-old property in Bishan Street 13 within the first two hours of the open house in June.

Its simple furnishings did not deter the buyers.

Instead, they were won over by how it is a spacious 1,800 sq ft and comes with a rare 150 sq ft open roof terrace.

Other attractions, Ms Ng noted, are its proximity to amenities such as schools.

The Bishan bus and MRT interchange is less than a 10-minute walk away.

"It's also on the 19th floor, has a great view and it is very airy most of the time," she said.

Such spacious maisonette units with open terrace roofs are hard to come by. There are only 48 such homes islandwide.

In 2005, a unit like this would have cost about $550,000.

Ms Ng said the buyers got a good deal: "If you compare it to a similar condo unit, you are effectively paying half the price for twice the space."

The $980,000 price equates to about $550 per sq ft.

A similar-sized condominium unit nearby would fetch at least $1,300 psf.

Property analysts, however, were quick to point out that the record-breaking deal is a one-off that is unlikely to drive up resale flat prices or COV quantums.

ERA Realty key executive officer Eugene Lim said he is not surprised that the Bishan unit fetched a high price since such homes are rare and flats in the area usually command a premium.

Source: The Straits Times – 7 September 2012

Hong Kong Restricts Foreign Homebuyers

Hong Kong on Thursday announced the first step in a policy aimed to restrict foreigners from buying property, in a move seen to be targeting mainland buyers who have been blamed for pushing up property prices.

Chief executive Leung Chun-ying said only Hong Kong permanent residents will be able to buy flats to be built on two sites that will provide around 1,100 homes next year under a so-called "Hong Kong land for Hong Kong people" policy.

Bids Decline for Suburban En Bloc Sites

RESIDENTIAL MARKET

Bids likely to dip for small suburban en bloc sites

DEVELOPERS eyeing collective sale sites might have to redo their sums as the Government caps the number of homes that can be built in non-landed developments outside the central area.

Experts say the newly announced guidelines that discourage the fast-rising number of tiny "shoebox" homes will likely temper developers' bids, particularly for certain small suburban collective sale sites.

This is because shoebox homes - typically less than 50 sq m - can often be sold at higher per sq ft (psf) prices.

Bids for upcoming sites would have to factor in the larger average size of units mandated under the new rules, which are usually expected to feature lower psf selling prices.

The experts add that smaller collective sale land plots are likely to be the most affected by this change as small and mid-sized developers often churn out more units on such sites to claw back the land cost.

Sites that do not have a gross plot ratio (GPR) of 1.4 and with a gross floor area of 30,000 sq ft to 80,000 sq ft will likely be the most affected.

These other sites might see bid prices fall by about 3 per cent to 5 per cent as developers turn cautious and scale back their aggressive bids.

Larger sites that cost more than $200 million are usually the target of bigger players who do not build just shoebox units, and so they might be less affected.

UOB Kay Hian analyst Vikrant Pandey noted that developers keen on riding the shoebox wave will become less aggressive both in acquiring collective sale sites and in their land tender bids for suburban land parcels.

This is likely to result in a change in strategy for developers of small mass market projects such as Oxley Holdings and Roxy-Pacific Holdings, he said.

But experts point out that the impact of the rules has also been muted by an earlier change in guidelines last November that sounded a warning that the Government was closely watching the shoebox segment.

New rules then had set minimum plot sizes for apartment blocks and restricted the number of units that can be built on certain sites, ensuring that some ground will be free for landscaping or facilities.

URA has also been stricter in granting provisional permission. It has been known to throw back building plans with too many shoebox units, sending a signal to the industry that changes were at hand, an expert added.

Source: The Straits Times – 6 September 2012