Thursday, 11 October 2012

News Update - 10 Oct 2012


RESIDENTIAL MARKET
Woodlands EC site draws top bid of $150.2m
Demand for executive condominium (EC) sites in Woodlands remains strong, with a top bid of $150.18 million, or $302 per square foot per plot ratio (psf ppr), submitted for a 99-year leasehold site there.
That bid came from a joint venture between Fraser Centrepoint's unit Opal Star and Lum Chang's unit Binjai Holdings, which have a 70-30 per cent stake in the venture.
The site is on Woodlands Avenue 6 and Woodlands Drive 16, next to another EC development, La Casa.
The tender, which closed at noon yesterday, attracted five bidders - comparable to a site on Woodlands Avenue 5 sold in May which also pulled in five bidders and was sold at $318 psf ppr.
Opal Star and Binjai Holdings' bid was 1.6 per cent higher than the next highest bid put in by the joint venture between Far East Civil Engineering and China Construction.
That bid was $147.777 million, which translates to $297 psf ppr.
When the tender for the site was launched in August, property consultants polled by BT had predicted that the winning bid would be in the $300-350 psf ppr range, and that 3-7 bids would be submitted. The tender outcome was thus within expectations.
ECs are a hybrid of public and private housing, with initial-buyer eligibility and resale restrictions lifted 10 years after the completion of the project.
A Fraser Centrepoint spokesman said yesterday that plans have been made for 447 units in eight blocks of 12 storeys each, and that the units will mainly be three- and four-bedroom ones.
Other bidders for the site were Mezzo Development ($138 million or $277 psf ppr); Verspring Properties ($134.7 million or $271 psf ppr); and CEL Property ($124.399 million or $250 psf ppr).
Source: Business Times – 10 October 2012
 
Mountbatten condo up for collective sale
A 30-year-old condominium in Mountbatten has been put up for collective sale.
The project, Katong Park Towers, sits on 99-year leasehold land with a site area of about 13,077 sq m. The 118-unit condo is still occupied.
But soon, the site could be sold for between $330 million and $340 million, or $1,145 to $1,178 per sq ft per plot ratio (psf ppr), including 10 per cent of balcony space.
The site can be developed into a 24-storey condo with a maximum gross floor area of about 27,462 sq m.
Assuming an average apartment size of about 753 sq ft, the developer will be able to build about 392 units.
The property is near to amenities such as Parkway Parade, 112 Katong, East Coast Park and the upcoming Sports Hub in Kallang.
Eton International Pre-School, Dunman High School, Canadian International School and Chatsworth International School are also nearby.
The sale period opens today and closes on Nov6.
Source: The Straits Times – 10 October 2012
 
INDUSTRIAL MARKET
Resale prices of industrial space on the rise
There are signs of speculation developing in areas of the industrial property sector, analysts say, but they are divided over whether there is overheating and if the government should step in.
Resale prices for industrial space continued to rise in the third quarter, while industrial rents held firm.
Resale industrial prices for first-storey conventional industrial space rose 4 per cent in Q3, to $600 per square foot (psf), compared with the previous quarter. This was at the same rate as the previous quarter.
For upper-storey industrial space, prices grew 3.5 per cent to $445 psf from the previous quarter, slowing from 4.9 per cent growth in Q2.
Rents for first-storey conventional industrial space were at an average of $2.15 psf per month, while upper-storey rentals averaged $1.75 psf per month, the same levels as Q2. Hi-tech industrial rents edged up 0.07 per cent from the second quarter, to $3 psf per month.
Source: Business Times – 10 October 2012

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