RESIDENTIAL MARKET
High bid for site next to Tanah Merah MRT
A 99-year leasehold residential site along New Upper Changi Road has drawn a higher-than-expected top bid, pointing to a still-bullish sentiment among property developers here.
The land parcel sitting next to Tanah Merah MRT received 11 bids in all, the Urban Redevelopment Authority (URA) said. The highest offer came from Keppel Land unit Sherwood Development, which bid $434.6 million or $791.42 per square foot per plot ratio (psf ppr).
This bid was 17 per cent above that for a nearby plot in Tanah Merah Kechil sold to Fragrance Group and World Class Land in August.
KepLand said yesterday it plans to develop about 700 units measuring between 500 sq ft and 1,400 sq ft in one- to four-bedroom configurations when it secures the site.
Augustine Tan, president (Singapore residential) at KepLand, remarked: "Demand for well-located suburban homes here remains resilient, and we're confident that this new development will garner positive interest from genuine home-buyers and upgraders looking for quality properties in the established and popular Tanah Merah precinct."
Demand has been strong for projects in the vicinity: The eCO condominium, a short distance away in Bedok South Avenue 3, was the top-selling private residential site last month, with 402 units sold at a median price of $1,283 psf.
Despite the Government's recent move to cap home-loan tenures, ERA Realty Network's key executive officer Eugene Lim said: "This is a sign developers are still hungry for well-located mass-market plots."
Analysts are projecting a break-even cost of between $1,150 and $1,250 psf based on KepLand's bid, and expect an average selling price above $1,300 psf.
The second highest offer in the tender came from Bayfront Land, a tie-up between Fragrance Group and World Class Land. Its bid was $405.9 million, or $739.15 psf ppr. The lowest bid was from Vantage Properties, which offered $275 million, or $500.84 psf ppr.
Some of the offers were defensive, noted ERA's Mr Lim. The fourth highest bid, for example, came from a joint venture between Far East Organization, Frasers Centrepoint and Sekisui House, the same developers behind eCO.
Source: Business Times – 17 October 2012
Punggol development: Phase 2 plan unveiled
The Housing & Development Board (HDB) yesterday unveiled plans for the next phase of Punggol's development, including a new Northshore District that will be carved out for more seafront public housing.
Northshore District will be one of seven distinct waterfront housing areas, of which Waterway East and Waterway West Districts are already under development.
Not only will Northshore District be home to Punggol's tallest residential buildings, at 29 storeys, they will also boast fully underground car parks in a bid to provide a greener and more spacious environment at the ground level.
Both Northshore and Matilda Districts can expect public housing projects to be launched over the next five years.
Based on Punggol's masterplan, the projected number of private and HDB homes in Punggol is 96,000. To date, some 26,400 units of public housing have been completed, with 15,800 units launched or under construction. On the private housing end, 6,400 have been launched or are under construction.
This puts Punggol on track to complete 48,000 units by 2016.
Of the 957 hectares (ha) that is Punggol, some 422 ha have been set aside for residential use, with the remaining 535 ha designated for other uses, including transportation networks, schools, commercial, and religious purposes, added HDB.
National Development Minister Khaw Boon Wan said: "We are now ready to launch the next phase of Punggol's development. Punggol Phase II will cover developments over the next 15 years and beyond."
Other plans to enliven Punggol include the introduction of a waterfront Market Village bordering on the south of the Coney Channel, a Learning Corridor designated to house future education institutions and a Creative Cluster designed to host new commercial activities.
Residents can also look forward to more recreational spaces and commercial amenities such as a new sports complex, a horse riding centre and a hawker centre.
To ensure that Punggol does not lose its green features, more green parks and corridors will be integrated with the waterfront promenades. In addition, the old Punggol Road will be conserved as a heritage trail and transformed as a pedestrianised green corridor for joggers and cyclists.
Mr Khaw was speaking at the HDB Awards 2012, where he presented 21 awards to HDB's consultants and contractors to recognise their achievements and innovative efforts in undertaking public housing developments.
The "Punggol: Discover Possibilities" exhibition will be launched at HDB Hub to recap the progress of Punggol to date, share with the public the short-term plans and invite feedback for the longer-term plans.
The exhibition ends on Oct 28.
Source: Business Times – 17 October 2012
COMMERCIAL MARKET
URA tries to limit small shops in new complexes
The Urban Redevelopment Authority (URA) could be looking to discourage an over-concentration of small strata shops in new developments, BT understands. It is also trying to steer them towards a certain size mix.
No official guidelines have been spelt out but market-watchers believe that URA is sharing informal advice on shop sizes. They feel this could be a first step towards putting a lid on the proliferation of small shops in new developments. Small shops have been attracting property investors from the residential sector, which has been hit by six rounds of cooling measures.
BT understands that URA is recommending that at least 50 per cent of the retail portion in a development should comprise units of at least 60 sq metres (645.83 sq ft) each. A maximum 40 per cent may be allocated to 25-59 sq m units, and no more than 10 per cent to 15-24 sq m units. It seems URA is discouraging units below 15 sq m (161.46 sq ft).
"Probably informal guidelines on size requirements for retail units are slowly creeping in," said a developer. On the other hand, a clear guideline would create greater certainty for property developers buying sites with a view to incorporating strata shops in their project, he added.
When contacted, URA declined to confirm the recommended unit size mix.
But its spokeswoman, while acknowledging the need for flexibility to cater to diversity of business needs of different market segments, added: "A development consisting predominantly of small units may pose problems, for example, carpark shortage and traffic congestion, to the local area."
URA's thinking seems to be that the bigger the number of retail units in a development, the more the retail operators and staff, thus increasing the car population in the building. However, industry players say even malls that are under single ownership have been experiencing carpark shortage.
Some developers have taken to minting smallish shops to keep lump-sum prices affordable to potential buyers, but in the process, setting high per square foot (psf) prices. For example, earlier this year, eight street-level cafe units ranging from 398 sq ft to 807 sq ft at Oxley Tower at Robinson Road were sold at $6,200-$7,200 per square foot. At the nearby EON Shenton, all 23 street-level shops fetched $4,000-$4,980 psf. The shops are 129 sq ft to 377 sq ft.
Some of the shops in Oxley Tower have been flipped, based on caveats data.
"The authorities may want to set some controls as to where prices are heading," suggests a market watcher.
Agreeing, a developer said: "I suppose any recommended sizes on retail units would reflect continual concern by the authorities on over-speculation, ie hot money being attracted to smaller units which are more affordable on lump-sum price basis. This would be on a similar basis as the minimum 150 sq metre size introduced for industrial units."
A common perception in industry circles is that for office units, URA is leaning towards 100 sq m as either a minimum or average unit size.
URA's spokeswoman noted that businesses have very diverse needs and budgets. "Some small commercial and retail units exist in the market today to cater to businesses that do not require a big space... When evaluating commercial development proposals, we take into consideration the planning intention for the area and the potential impact on the surrounding environment and local traffic conditions.
"We work closely with developers and architects in the design and layout of commercial and shop spaces to ensure that the layout caters to the needs of different users, provides a conducive environment to the customers and at the same time, minimises any potential disamenity issues to the surrounding uses.".
Source: Business Times – 17 October 2012
No speculative signs in HDB shophouse prices
Figures released by the government yesterday showed that there is no speculative element in the prices of HDB shophouses given the low percentage of resale transactions.
In a written response to Member of Parliament Ong Teng Koon (Sembawang GRC), Minister for National Development (MND) Khaw Boon Wan highlighted the fact that resale transactions involving HDB-sold shops made up only 3 to 7 per cent of the total stock of HDB-sold shops.
From January to August 2012, there were 216 such transactions and of these, 14 shops, or 6 per cent, were resold within one year of purchase.
Given the fact that HDB- sold shops are transacted in the market on a willing- buyer-willing-seller basis, without restrictions and in accordance with demand, Mr Khaw said that MND will not be imposing new restrictions such as stricter citizenship eligibility on transactions.
There are currently 8,700 HDB-sold shops.
Singaporeans and Singapore-owned companies own about 95 per cent of the sold shops. The remaining 5 per cent are owned by permanent residents (PRs), foreigners and foreign- owned companies.
In a separate response to MP Gan Thiam Poh (Pasir Ris-Punggol GRC) on whether HDB will reconsider building executive maisonettes, Mr Khaw ruled out such a possibility, adding that executive condominiums (ECs) are better placed to meet the diverse needs of Singaporeans.
HDB stopped building executive maisonettes in 1996 when the EC Housing Scheme was implemented.
In another written reply to MP Ong Teng Koon about MND's development plans in Woodlands, Mr Khaw said: "There are plans to develop the land around Woodlands MRT station into a regional centre. These plans form part of our strategy to bring jobs closer to homes in our housing towns."
Mr Khaw added that URA has begun to review the development plans for Woodlands as part of the current Master Plan review exercise in conjunction with the finalisation of the Thomson Line MRT station at Woodlands.
Source: Business Times – 17 October 2012
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