Govt keeping close eye on Executive Condominiums

The National Development Ministry (MND) has warned that it is closely watching developments in the executive condominium (EC) segment and will consider further measures if needed.

It was responding to The Straits Times' queries on whether sky-high prices for some EC units at recent launches are of concern.

The latest focal point in the EC debate is a huge 4,349 sq ft "presidential suite" at 514-unit CityLife @ Tampines, which will be the first EC unit to eclipse the $2 million mark if sold at its launch today.

November prices of built condos up 1.9%

After lagging for most of this year, prices of completed private apartments and condos in Singapore's Central Region sprang to life in November, latest data from the National University of Singapore showed.

Its November flash estimate for the Singapore Residential Price Index (SRPI) series showed that the sub-index for the Central Region (excluding small units) rose 2.6 per cent from October.

This is double the 1.3 per cent gain over the same period posted by SRPI's sub-index for Non-Central Region (excluding small units).

Interest growing over $2m Executive Condominium unit

CityLife @ Tampines Site Plan

The $2 million-plus price tag does not seem to have dampened interest among potential buyers for a spacious executive condominium (EC) that hits the market tomorrow.

At least 12 people have expressed interest in the "presidential suite" at CityLife @ Tampines.

The prized unit comes with 4,349 sq ft of space, including a roof terrace of about 1,600 sq ft, and can be yours for an EC price record of $2.05 million.

Other large apartments at the 514-unit project also garnered healthy interest yesterday, the second day of the showflat preview. Bookings open tomorrow, with average prices of $770 per sq ft (psf).

Eight private estates to get upgrading

More than 7,000 households are set to benefit from a $29 million facelift under the government's Estate Upgrading Programme (EUP). The properties, spread across eight private estates, will see the money spent on the upgrading of parks, playgrounds and widening of footpaths.

The Ministry of National Development (MND) announced yesterday that Goldhill, Mayflower Gardens and Yio Chu Kang Gardens, Cashew and Hazel Park Terrace, Greenleaf, Bartley Neighbourhood, Carmichael, Haig Road and Limau estates have been selected to benefit from the eighth EUP.

These older private estates are expected to benefit from the improved facilities when work will be completed in three to four years.

Silver Housing Bonus and Lease Buyback Scheme made more Attractive for Elderly

Date issued : 27 Dec 2012

 Elderly Singaporeans need to top up less of their net sale proceeds and will get more in cash when they participate in the Silver Housing Bonus (SHB) and Enhanced Lease Buyback Scheme (LBS). The Government has enhanced both schemes in response to public feedback. The new schemes will be implemented from 1 February 2013.

2Minister for National Development Mr Khaw Boon Wan said, “We need to strike a balance between improving retirement adequacy by requiring a meaningful top-up to the CPF, and keeping the schemes attractive by allowing adequate cash proceeds. We received several good suggestions from the public on how such a balance could be better achieved. We believe the enhancements will enable more Singaporeans to take advantage of the schemes.”

Analysts see sustained demand for HDB resale flats next year

Hot, robust and pulsating. Three words market watchers have used to describe the resale flat market this year, and it looks like they will be saying the same next year.

Resale prices for Housing & Development Board (HDB) homes could go up by between 3 and 8 per cent in 2013, and cash-over-valuations, or COVs, could rise 5 to 10 per cent, analysts told The Business Times.

They foresee sustained demand in the face of constrained supply and easy monetary conditions.

URA factors in shrinking condo unit sizes as it looks ahead

The Urban Redevelopment Authority (URA) seems to think that the average unit size of condos will shrink in its estimates of housing supply for the Government Land Sales (GLS) programme.

Based on BT's analysis of the first-half 2013 GLS programme, the average gross floor area (GFA) per home for typical private condo sites in Outside Central Region (OCR) and Rest of Central Region (RCR) has each been reduced by five square metres to 90 sq m and 80 sq m respectively compared with the H1 and H2 2012 slates.

For sites designated for executive condominiums (ECs), the average home size assumption has been kept the same at 100 sq m in OCR, which is where suburban mass-market homes are located.

US group incurs hefty loss on luxury condo investment

United States financial services group Wachovia has sold its investment in City Developments' (CDL's) freehold Grange Road project at a hefty loss.

The sale, which is likely to cost Wachovia a loss of $55 million, underscores the continuing weakness in the high-end residential property market, despite hopeful talk of a recovery next year.

It is also a sign that Wachovia does not believe it can recoup its investment in Cliveden at Grange in the short to mid-term, after making a big bet on the property at the height of the high-end rally five years ago.

City Developments Ltd to start selling Echelon this week

City Developments Ltd (CDL) will begin sales later this week for Echelon, its long-awaited, 99-year leasehold private condominium project next to Redhill MRT Station, sources say.

BT understands that bookings for the Alexandra Road condo - next to the completed Ascentia Sky condo - are likely to start on Friday. Potential buyers are said to have been given an average price indication of "$1,700 per square foot plus". Word on the street is that about 30-50 per cent of the development's 508 units may be released for this week's preview, and more than 300 cheques are thought to have been collected.

Designed by SCDA, units in the 43-storey, twin-tower development will range from studios to four-bedroom apartments and penthouses.

Data Protection Act to come into force on Jan 2

The Personal Data Protection Act (PDPA) will kick in on Jan 2 next year, alongside a newly formed Personal Data Protection Commission (PDPC) and its advisory committee, the Ministry of Communications and Information (MCI) said yesterday.

From the time the Act kicks in, companies will have at least 18 months - until mid-2014 - to comply with the PDPA. This Act, which was passed in Parliament on Oct 15, 2012, is aimed at preventing the misuse of personal information. It will govern how businesses collect, use, protect, correct and provide access to personal data.

Orchard Road feels the heat

Whether it is Jurong, Sengkang or Woodlands, the future is in the suburbs, say major retailers, who are moving quickly to secure prime suburban shop space.

Japanese retailer Francfranc, which made its South-east Asia debut here in May, chose to open its first outlet at JCube in Jurong East.

Luxury watch store Cortina opened its first outlet outside the Orchard Road and Marina Bay precincts at 112 Katong last year; and Swedish retail giant H&M's third local store will open in Jurong East's Jem next year.

Two commercial sites in Jurong, Cecil St released

Cecil St / Telok Ayer Site

The government has released the final two commercial sites for the second half 2012 Government Land Sales (GLS) programme.

One is a confirmed list site near Jurong East MRT Station that has been launched for sale by public tender, while the other is a plot at Cecil Street/Telok Ayer Street that is available for application for sale under the reserve list.

The Urban Redevelopment Authority (URA) said yesterday that the bulk of the space developed on both sites has to be set aside for office use. In addition, it is allowing strata sub-division of offices for the Jurong plot but not for the Cecil Street site.

Expected to still sell: ECs benefit from bigger buyer pool

Forestville EC Site

The many executive condominiums (ECs) heading to the market can be absorbed thanks to the expanded pool of buyers generated by changes to the income ceiling.

The Government increased the monthly household income ceiling from $10,000 to $12,000 in August last year so it is unlikely an oversupply will arise.

Figures from the 2010 Census show how this policy change has expanded the buying pool.

There were 72,065 households in Housing Board (HDB) four-room flats or larger earning between $8,000 and $10,000 in 2010.

Rents on Orchard Road fringes turning soft

Rentals on the fringes of Orchard Road and the city are showing signs of softening, after recording their first dip in five quarters.

Rents of shops in the City Hall and Marina Centre areas recorded a 3 per cent drop from $21.90 per square foot (psf) per month in the previous quarter to $21.30 psf/month in Q4 2012.

Rents in the other city fringe areas fell to $14.25 psf/month from $14.60 psf/month in Q3 2012.

But prime Orchard Road rents held up better, with rentals remaining stable over the past five quarters at $31.60 psf/month.

Strong demand seen for Queenstown condo site

Stirling Rd Parcel

The last two 99-year-leasehold private housing sites on the second half 2012 Government Land Sales (GLS) programme have been released. One is a plum site next to Queenstown MRT Station being offered on the confirmed list and tipped by some analysts to fetch a top bid of $1,000 per square foot per plot ratio (psf ppr) or more.

The other site, next to Tanah Merah MRT Station, is being made available for application on the reserve list. The Urban Redevelopment Authority (URA), acting as land sales agent for the government, will launch this site for tender only if it receives an application from a developer accompanied by an undertaking of a minimum bid price acceptable to the state.

Property option fee: Woman loses appeal

A housewife submitted a cheque to pay a 1 per cent option- to-purchase fee concerning a $27.6 million Swettenham Road bungalow.

But the cheque for $276,000 bounced and the seller sued Madam Leong Miew Fong for the fee payable. She did not file her defence in the case and the High Court ordered her to pay the $276,000 by default.

She applied to the High Court last month to set aside the judgment but did not succeed.

Yesterday, she failed in her appeal to avoid paying the fee even though the sale had been aborted.

Private home sales in November down 44%

Developers here sold 44.2 per cent fewer private homes in November compared with the month before, as they held back launches during the holiday season.

Data from the Urban Redevelopment Authority (URA) showed that 1,087 private homes, excluding executive condominiums (ECs), were sold last month, compared with 1,948 in October.

November's sales figures were the lowest since December 2011. Compared with the same period last year, transactions fell 36.1 per cent. The slump was largely due to a lack of major launches, market watchers said.

Analysts said developers were holding back until after the festive season, noting that the end of the year is traditionally a low season.

Plethora of residential sites for developers to choose from

Sites in the Central Region
will be released for Developers

Releasing sites in the Central Region will bring more live-in population nearer to the city centre and help cut commutes to work. At the same time, releasing sites near MRT stations will enable more residents to have better access to the public transport network.

So said the Urban Redevelopment Authority (URA) in response to BT's queries on the government's strategy to release several plum private residential sites including in the prime districts for the first-half 2013 Government Land Sales (GLS) programme.

3 Golden Property Rules Singaporeans Must Know by Heart

Just to make sure mortgage is paid.

According to PropertyGuru, mortgage rates in Singapore are largely determined by the existing Swap Offer Rate (SOR) and Singapore Interbank Offer Rate (SIBOR). Of these two rates, the SOR is influenced by the situation in the US.

Here's more from PropertyGuru:

Fortunately with the Federal Reserve committing to a low interest rate of 0.25%, LoanGuru expects the city-state’s interest rates to remain low until 2014 at the very least.

On top of that, the Singapore government is monitoring the situation, as indicated by the latest cooling measures introduced in view of the hot property market. However, LoanGuru believes not all buyers are prudent with their home purchases.

Industrialists Groan as Rents Grow Heavier

The hefty wage bill is now unavoidable. And the surging industrial property market has made it a perfect storm of high operational costs for industrialists here, market watchers say.

Prices for industrial property have risen 27 per cent in the first nine months of the year, latest data from the Urban Redevelopment Authority showed, as investors seek alternatives to residential properties.

And rents, while not quite keeping pace, have still gained a significant 6 per cent in the same period.

Rental costs were highlighted as one of the three most important factors of business costs, along with labour and energy expenses, in a study by Leong Kaiwen, assistant professor of economics at Nanyang Technological University.

Asia Square Clinches Year's Biggest CBD Office Lease

In the biggest CBD office leasing deal so far this year, German financial services provider Allianz Group is leasing around 90,000 square feet at Asia Square Tower 2.

The space is on levels 13, 14 and 15 of the 46-storey building, but it is possible that Allianz may also take up the 12th floor, which would expand its footprint in the building to 120,000 sq ft.

Allianz is expected to finalise the size of its space at Asia Square by the end of January next year.

Industry watchers say that the transaction is the biggest office leasing deal in the CBD since Marsh & McLennan leased 97,000 sq ft at Asia Square Tower 1 last year.

Sembawang Executive Condominium Site Draws Top Bid of $211.9m

A 99-YEAR leasehold executive condominium (EC) site at the junction of Sembawang Crescent and Sembawang Drive has received a top bid of $211.9 million, or $323.76 per square foot per plot ratio (psf ppr).

The top bid came from boutique property developer JBE Holdings, which beat seven other bidders.

It reflected the developer's confidence in the attractiveness of ECs in far-flung Sembawang, where another EC, 1 Canberra is located.

"Luxury" EC units in the news lately for the prices they commanded, such as the $1.77 million penthouse unit in Heron Bay in Upper Serangoon and the $1.61 million double-storey penthouse in 1 Canberra.

Investment sales of property reach $28.7b this year

Investment sales of property - which refer to transactions of $10 million and above - have fallen to about $6.9 billion so far this quarter (up to Dec 11), from the $9.3 billion in Q3.

The slowdown came amid a halving in deals originating from the private sector to $3.7 billion so far in Q4 from $7.2 billion the previous quarter.

The weak global economy and a still-wide bid-ask gap remained key reasons for the tepid investment activities in the private sector.

Big-ticket deals originating from the public sector - predominantly Government Land Sales (GLS) - climbed to $3.2 billion in the Oct 1-Dec 11 period from $2.2 billion in Q3.

Provisional Tender Results for Sembawang Executive Condominium Site

Sembawang EC site draws top bid of $211.9m

A 99-YEAR leasehold executive condominium (EC) site at the junction of Sembawang Crescent and Sembawang Drive has received a top bid of $211.9 million, or $323.76 per square foot per plot ratio (psf ppr).

The top bid came from boutique property developer JBE Holdings, which beat seven other bidders.

It reflected the developer's confidence in the attractiveness of ECs in far-flung Sembawang, where another EC, One Canberra is located.

"Luxury" EC units in the news lately for the prices they commanded, such as the $1.77 million penthouse unit in Heron Bay in Upper Serangoon and the $1.61 million double-storey penthouse in One Canberra.

Last month, National Development Minister Khaw Boon Wan took to his blog "Housing Matters" to remind developers to stay within the spirit of the concept of this class of housing.

The developer could aim to launch the project at between $720 and $730 psf.

There are only two other new EC projects in the Yishun-Sembawang area - The Canopy (406 units) is fully sold; 1 Canberra (665 units) is half sold.

Up to October this year, some 3,500 EC units in the seven projects launched in the year had been sold. The total volume of EC units sold is expected to hit a record 4,000 by the end of the year.

The second highest bid for the site came from Frasers Centrepoint unit FCL Place and Hytech Builders; it was for $210.1 million, or $321.00 psf ppr.

Chip Eng Seng's CEL Property put up a bid of $201.4 million, or $307.66 psf ppr; Bellevue Properties, a subsidiary of City Developments Limited, offered $193 million, or $294.85 psf ppr.

The lowest bid was from Mezzo Development, at $184.0 million, or $281.10 psf ppr.

The 233,775 sq ft site has maximum gross floor area of 654,569 sq ft and can yield about 650 units.

Source: Business Times –14 December 2012

Read more from HDB

High-end rents seen easing further

High-end rental rates look set to continue their downward trend, with market watchers predicting a price correction of between five and 10 per cent next year stemming from tightened budgets and an increasing supply of completed luxury homes.

This would bring rents of luxury homes to below $5 per square feet (psf) per month.

Rents of top-tier condos showed a drop for a sixth consecutive quarter, bringing rents down 7.4 per cent to $4.88 psf per month in Q4, from $5.27 psf per month in the year-earlier period.

The Urban Redevelopment Authority (URA) said that 91,869 new homes will be released to the market over the next five years, more than half of which have been sold.

79 Anson Rd on verge of being sold for over $400m

At least one major office block transaction could be sealed before the year ends, BT understands. A deal is close to being stitched for 79 Anson Road, with both owners - German fund manager SEB and Central Provident Fund Board - selling their space.

Expectations are running high that the price will cross $1,400 per square foot based on the freehold building's existing gross floor area (GFA) of 289,185 square feet (sq ft). On a lumpsum basis, this would translate to $405 million or more. Assuming the price is in the $400-410 million range, this represents $2,000-2,050 psf based on the building's current net lettable area (NLA) of around 200,000 sq ft, say market watchers.

Going, going... but not totally gone

Singapore's property auction market had a quiet year, chalking up its lowest sales value in 15 years and selling barely one-tenth of the properties put up for auction, as a result of the government's property curbs.

24 out of a total of 377 properties - across various sectors such as residential, retail and industrial - that were put up for sale ultimately changed hands. The total sales value of these properties was $62.4 million, down 35 per cent from the $95.6 million recorded last year.

Alexandra View site draws top bid of $332.7m

A closely watched tender for a residential site at Alexandra View drew a top bid of $332.7 million, or $970.18 per square foot per plot ratio (psf ppr), yesterday.

Singland Homes, which put up the top bid for the 99-year leasehold site, Alexandra View (Parcel B), beat five other bidders.

Singapore Land has in the nearby vicinity a low-rise condo with about 109 units on a plot that it clinched at a state tender in February.

The project, which has a Jervois Road address, is expected to be launched in late January.

"(For the Jervois Road site) we are looking at about $2,000 psf," said Michael Ng, group general manager of Singapore Land and its parent, UIC.

Private home sales volume seen falling 25% next year

Sales in the private residential market could fall by more than 25 per cent next year, as a result of local buying fatigue from the many new launches over the past years and increasing home completions.

This would mean that from the record breaking 20,000 units sold in the past 10 months of this year, transaction numbers are likely to hover between 16,000 and 18,000 next year.

Prices, however, are expected to continue their upward trend, in line with rising land costs and demand from overseas investors.

Whitley Residences, The Village previewed

Whitley Residences

At least two freehold residential projects were rolled out last week. Hoi Hup sold 19 freehold cluster homes at The Whitley Residences at about $5 million each during a preview on Sunday. The average price is about $850 per square foot (psf) on strata area - after a 12 per cent discount and absorption of the standard 3 per cent buyer's stamp duty.

Village @ Pasir Panjang

Selangor Dredging is said to have moved 40-plus units at its five-storey condo, Village at Pasir Panjang.

A Hoi Hup spokeswoman said all buyers of the 19 units sold in The Whitley Residences were Singaporeans.

Non-Singapore citizens need permission from the Land Dealings (Approval) Unit to buy units in the development, as it is a form of landed housing.

Executive Condominium's Penthouse Units Snapped Up in 90 Minutes

All the penthouse units at an executive condominium (EC) in Sengkang were snapped up on its first morning of bookings yesterday, in another sign of strong demand for EC projects.

The 16 penthouse units at The Topiary were sold within the first 90 minutes, said Kheng Leong, which is developing the project in a joint venture with Qingjian.

The single-storey units went for prices of between $1.3 million and $1.5 million, and are between 1,970 sq ft and 2,476 sq ft.

Bright End to the Year for Property Market

The year looks like it is ending with a flourish for the property market, with turnover up and condominium resale prices already at a historic high.

The only weak spot is rentals, which have weakened in the wake of increased supply and job cuts among global firms.

Condo resale prices rose overall to $1,222 per square foot (psf) on average for October and November, according to the Singapore Real Estate Exchange (SRX) yesterday.

Sentosa Cove Prices Inch Up Again

Buying interest has crept back into the exclusive Sentosa Cove estate, which boasts some of the most expensive waterfront homes in Singapore, after a lull in sales last year.

But market activity in the millionaires' playground is still far from its heyday a few years ago.

Developers have sold 65 apartments so far this year, more than the 55 units for the whole of last year.

This is, however, still well down on the 141 units sold in 2010, according to caveats lodged with the Urban Redevelopment Authority (URA).

Non-landed Homes Changing Hands at Record Average Price

Prices of resale non-landed private homes continued to climb, hitting a record $1,222 per square foot (psf) on average in the first two months of the fourth quarter.

This was on the back of an improved performance from all regions here, latest data from the Singapore Real Estate Exchange showed.

Private home prices in the outside central region (OCR) rose 4.5 per cent over Q3 to $959 psf, followed by the rest of central region (RCR), which recorded a 3.3 per cent increase to $1,224 psf.

Resale prices in the core central region (CCR) were up 2.8 per cent at $1,778 psf.

Plaza Singapura Gets New Wing and Cold Storage

Source: CapitaMalls

PLAZA Singapura has taken on a new look and new tenants, now that it has expanded into the space between it and The Atrium@Orchard.

The $150 million, 21-month-long makeover fills up what used to be a gap between the two buildings, bringing Plaza Singapura's net lettable area to 629,000 square feet, up some 25 per cent.

Its owner CapitaMall Trust said the extension is projected to bring an additional net property income of $15.6 million when fully occupied.

Prime Office Rentals at Rock Bottom Prices, for Now!

The best office space in town currently commands just a shade more rental than the rest. But this won't last.

The rental gap between Grade A offices and Grade B office space islandwide has narrowed this year. Rents in older buildings at prime locations have held up as their occupancy levels remain stubbornly high. This is expected to change next year when tenants move into new developments and more space emerges in older buildings.

Record Bid for Punggol EC Site

A RESIDENTIAL site for an executive condominium (EC) in Punggol East, next to Flo Residence condo, has drawn a record bid for a Punggol EC site in a seven-way contest.

The top bid of $351 per sq ft per plot ratio (psf ppr) exceeded those for more centrally located EC sites in Punggol.

"This shows that EC land prices are trending up," said Mr Ong Teck Hui, Jones Lang LaSalle Real Estate's national director of research and consultancy. "Optimism in the EC sales market has led to increased interest 

in EC sites among developers and a willingness to bid more enthusiastically for them."

Big Fall in Property Prices Unlikely: Report

It would take interest rate shock,
poor GDP growth, or both,
to bring down private property prices

It would take an interest rate shock, poor GDP growth, or both, to bring down private property prices here noticeably over the next five years, a study said.

Analysts are anticipating that prices will fall as a record supply of land comes on stream and as the US Federal Reserve tightens monetary policy.

It is forecasted that prices will rise by about 8 per cent by the end of 2017, based on the central scenario from a modelling. The report also said that not all of the government's cooling measures have been effective in bringing down prices, even if they have dampened transactions temporarily.

CityLife @ Tampines Over 3 Times Subscribed

Citylife @ Tampines
Singapore's first luxury hotel style EC

The latest executive condominium (EC) to hit the market - CityLife@ Tampines - was more than three times subscribed at the close of its e-applications period yesterday.

Billed as "Singapore's first luxury hotel-style EC", the 514-unit project by Tampines EC Pte Ltd - a consortium comprising Amara Holdings, Kay Lim Holdings and SingXpress Land - received about 1,800 applications, making it the most popular EC by application numbers.

Units that drew the most interest were the dual-key and larger-sized units. In particular, the 4,349 square foot presidential penthouse suite attracted a large number of multi-generation families.

Albert Teo, chief executive officer of Amara Holdings Ltd, speaking on behalf of the consortium, said: "We thank all interested buyers for the overwhelming response, especially in the month of December, which is when a large number of people are holidaying overseas and engaging in festive celebrations.

The strong response is a reflection of EC home buyers taking to the luxury hotel- style home concept."

Sited next to another EC project, The Tampines Trilliant, CityLife@Tampines will have an infinity pool and "skysuite" and penthouse units.

Marketing brochures list the two-bedroom units as ranging in size from 753 to 807 sq ft; the penthouses range from 1,356 to 4,370 sq ft.

CityLife@Tampines will hold a preview of its show suites along Tampines Avenue 7 on Dec 26 and 27.

It opens for booking on Dec 29.

Source: Business Times –6 December 2012


-ST Comments-
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A Green and Sustainable Industrial Park of Tomorrow - Redevelopment of Defu Industrial Estate

The Government has identified Defu Industrial Estate for redevelopment as part of HDB’s ongoing Industrial Redevelopment Programme (IRP). Under the Defu Master Plan, the area will be transformed along the vision of “A Green and Sustainable Industrial Park of Tomorrow”, and be renamed Defu Industrial Park.

Over the next 15 to 20 years, existing factories in Defu Industrial Estate will be progressively replaced with new and modern industrial complexes. The estate will be revitalised into a modern industrial park, complete with landscaped greenery and environmentally sustainable features.

Number of HDB resale flats down 19%

The number of resale flats has diminished for the second year running, falling 19 per cent, according to the Housing Board's latest annual report.

The figures for the year ending this March showed resale application numbers dropping to 24,331, compared with 30,061 the previous year.

While stricter ownership conditions for resale flats and tighter financing rules played a part, the HDB said the dip in numbers could be largely due to ramped-up housing supply.

White site at Novena draws record high bid

Smashing all previous records, a white site at the junction of Thomson Road and Irrawaddy Road yesterday drew a top bid of $492.5 million, or $1,631.59 per square foot per plot ratio (psf ppr).

The bid, which was jointly put up by Hoi Hup Realty Pte Ltd, Sunway Developments Pte Ltd and Hoi Hup JV Development Pte Ltd, topped that of eight other bidders.

The 0.66-hectare plot, which has maximum permissible gross floor area (GFA) of 301,852 sq ft, is classified "white", which means it can be put to commercial, residential or hotel use. According to the terms set by the Urban Redevelopment Authority, a minimum 30 per cent of the GFA must be set aside for hotel use.

When the site was triggered for sale, analysts said that they had expected keen interest in the site, given the location's proximity to Novena MRT station and several medical centres, including Tan Tock Seng Hospital, Novena Medical Centre and Mount Elizabeth Novena Hospital.

The site is also surrounded by many existing commercial developments, such as Velocity @ Novena Square.

Assuming the site is awarded to Hoi Hup, the company intends to embark on its first hotel project, and build a 3.5 to 4-star hotel. The remaining 70 per cent of GFA will be dedicated to commercial facilities and medical suites.

"Majority of the commercial space will be medical suites, but I think we need some shops on the ground floor," said a spokesman from Hoi Hup. "We will also have a linkway between Novena MRT and the basement, which will be lined with shops."

The site was earlier triggered for sale by public tender after a developer offered a bid of at least $211.3 million for the site, which translates to $700 psf ppr.

The second highest bid was jointly put up by CapitaLand Commercial's Swift One and Swift Two, and Ascott Holding's Taipan Trustee. It came in at $444.9 million, or $1,474 psf ppr.

Other bidders include a joint bid by Far East Civil Engineering, Far East Orchard, and Sekisui House, at $393.3 million, or $1,303.07 psf ppr; and UOL and Singland's United Venture Investment (Thomson) Pte Ltd, at $363.3 million, or $1,203.57 psf ppr.

The lowest bid was put up by UEM Land Berhad, at $340.5 million, or $1,128 psf ppr.

Source: Business Times –5 December 2012

URA Launches F&B Site in Punggol for Public Tender

A uniquely zoned commercial site, specifically for food and beverage (F&B) use, was launched at Punggol Point for public tender by the Urban Redevelopment Authority (URA) yesterday.

Unlike most sites launched by URA which are typically zoned under commercial, residential or mixed-development categories, the specific usage for the Punggol Point site could suggest the establishment of a distinctive F&B hub.

The subject F&B site, which has an area of 11,606.6 square metres, is expected to complement existing and upcoming attractions in the Punggol area such as the horse-riding centre and the development of Coney Island as a regional park. The site will be sold with a lease term of 15 years and will contribute to the overall vision of Punggol Point as a key recreation destination.

Vicious Cycle in Singapore's Rising Land Prices

REDAS has warned prices in Singapore
could dramatically increase because of
several government measures.

Property developers in Singapore expect land prices for private homes to continue to increase adding to other problems including increasing development costs and rising unsold units,Today Online reported.

Private homes in Singapore can no longer be called “mass market” developments and developers have no choice but to participate in the highly competitive land bids, Wong Heang Fine, the president of the Real Estate Developers’ Association of Singapore (REDAS), said.

Wong added that this causes a vicious cycle of rising land costs. REDAS will work with the government to keep land costs in check and he hopes it would keep the rise in property prices moderate.

Rising Retail Rents Creeping Into Industrial Sector

Far from the madding crowds of Singapore's glitzy shopping malls, Cynthia Neo runs a bridal boutique tucked away in a nondescript industrial building in an old housing estate, pushed off the high street by pricey retail rents.

The owner of J&C Bridal Collections pays one quarter of the rent she once shelled out for a shop in the heart of Chinatown, where a string of restaurants, hotels and retail shops meant a steady stream of shoppers.

But rising rents may be creeping into the industrial parks too. Industrial property prices have surged 27 per cent this year after a government crackdown on residential investment pushed speculators into factories and warehouses.

Muis Sells Four Properties on 199-year Leases

MUIS Sells 4 Properties

Four properties owned by The Islamic Religious Council of Singapore (Muis) have been put up for sale by public tender last week. However, they are all being sold on a unique leasehold of 199-years.

Such carved out leases are long-term investment strategies which are calculated based on the future needs of the organisation.

Two of the four properties are intermediate terrace houses located along Duku Road with an approximate land area of 2,000 sq ft.

Developers Get More Time for En Bloc Sites

More Time for Developers

Developers who buy residential en bloc sale sites are getting more time to meet the government's deadlines to finish developing their sites.

This is to take into account the time taken to get a collective sale order from the Strata Titles Board (STB) or the High Court.

The changes are in response to feedback from the industry which had asked for a fairer treatment of the rules, and are expected to give some breather to residential en bloc sales.

It takes several months for the collective sale order to be granted and this currently eats into the five-year deadline set for developers. The changes mean the deadline will start from the date of the en bloc sale order - instead of much earlier under current rules.

The changes involve two regulations under the ambits of the ministries of law and finance.

Is Demand for Housing in Singapore SUSTAINABLE?

One of the local media reporters recently asked me if I thought that the demand for housing in Singapore was sustainable. What prompted her question was the fact that the government seems to be launching wave after wave of BTO flats as well as land parcels for private residential development. As a potential home owner herself, she wondered if there would eventually be an oversupply of residential properties in Singapore. In this article, I shall look at sustainability from two perspectives – one is demand for homes and the other is from the angle of price.

Is there actual demand – the “6 million” question

Victoria St / Ophir Rd Hotel Site Released on GLS Reserve List

A hotel site at the junction of Victoria Street and Ophir Road has been made available for application under the reserve list of the Government Land Sales (GLS) Programme.

The site (formerly Victoria Street Wholesale Centre), is a 99-year leasehold plot, and is about 82,057.5 square feet. It has a maximum permissible gross floor area of about 344,649.3 sq ft. The maximum building height for the development is 20 storeys.

Most consultants said they expected the site to be triggered when it was added to the H2 2012 GLS reserve list earlier this year.

Robinson Towers' Redevelopment Begins

Robinson Towers Redevelopment Begins

Tuan sing Holdings has formally begun the redevelopment of Robinson Towers, the annex and the International Factors Building into a single commerical and office development.

Tenants were served with termination of lease notices of six months yesterday.

The redevelopment is estimated to cost around $200 million, including development charges to tap additional gross floor area (GFA). The proposed project, comprising an office tower and a retail podium, will have a total GFA of about 257,300 square feet.

Developers Rolling Out Fresh Projects as Year Ends

The property market usually puts its feet up as Christmas and New Year approach, but this year looks to be an exception with a string of new launches planned.

Forget the school holidays and festive wind-down; developers are keen to push out their projects while the housing market is still healthy.

They have prepared landed and non-landed projects with thousands of units slated for release.

Pasir Panjang The Next Waterfront Living Belt?

Pasir Panjang Waterfront Living

Pasir Panjang is best known for its port and wholesale industry facilities, and is hardly Singapore's most fashionable address.

But consultants say that both commercial and residential property in the area could make good medium-term investments.

It could become the next "waterfront living" belt, given its proximity to various west coast amenities such as science parks, business hubs and a university.

Let Property Cooling Measures Run Their Own Course

THE Government should let the property cooling measures run their course and refrain from imposing new ones in case they hurt the market, noted an industry leader last night.

Mr Wong Heang Fine, the president of the Real Estate Developers' Association of Singapore (Redas), said any sharp fall in prices will hurt as more than 90 per cent of Singaporeans are home owners.

"We do not want people to look back and say we overdid our policy measures," he said, speaking to more than 600 guests, including National Development Minister Khaw Boon Wan, at Redas' 53rd anniversary dinner at the Mandarin Orchard.

Mr Wong said the measures had created a safety valve that would help moderate the market.

Resale ECs Close to Private Home Prices

Chestervale @ Bt Panjang sold for approx $400psf about 15 years ago. Now they are selling for $900+ psf in the Resale Market.

PRICES of resale executive condominiums (ECs) are catching up with those of private mass market homes as the increasingly luxe features at recent ECs have boosted the profile of these homes.

The price gap between resale ECs and comparable mass market homes has narrowed to just 17.2 per cent this year, data from the Singapore Real Estate Exchange (SRX) found.

This is a sharp fall from the previous market peak of 32.2 per cent in 2007. SRX added that the price gap has been narrowing and stabilising since then. Last year, the gap was 17.4 per cent while it was 14.5 per cent in 2010.