Wednesday, 5 December 2012

News Update - 05 Dec 2012


RESIDENTIAL MARKET
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.
Punggol Point is one of seven new waterfront housing districts aside from Punggol Central, where most of the current developments are.
The first two to be developed within the next five years will be the Northshore and Matilda districts. The former will boast the tallest residential buildings in the area - at 29 storeys, and overlooking the Strait of Johor - while the latter will draw inspiration from the rich history of the area such as the iconic Matilda House.
As for Punggol Point, it is slated to take on the charm of a rustic coast given its location right next to the Strait of Johor.
According to market analysts, a site with such specific F&B zoning is relatively uncommon and is usually only done in response to public requests or to meet certain needs in the area.
The most recent of such sites was a public tender in 2002 for a piece of land with 12 years' lease under the Tampines MRT viaduct. It was sold to Tan Hee Nam for $10.3 million and received a total of 23 bids.
Prior to that, in 1995, a parcel of land with 30 years' lease was sold to Wah Khiaw Developments for $17.1 million and saw the development of China Square - a giant indoor food court in Telok Ayer Street.
However, unlike the four-storey China Square establishment, the development at Punggol Point will only be allowed a height of two-storeys.
The maximum permissible gross floor area, inclusive of outdoor refreshment area, is 3,000 sq m.
Source: Business Times –5 December 2012
 
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
Number of 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.
There were 44 projects offering 28,424 flats launched in that period, a 64 per cent increase on the number of flats in the previous financial year.
This has served to soak up some demand in the red-hot public housing market.
The report shows a total of 33,140 bookings were made for new flats in the year, a 75 per cent increase over the previous year's 18,849 bookings.
Summarising the year in review, HDB chairman James Koh said the agency's priority was to meet the continuing housing demand, particularly from first-time home buyers, and to lend stability to the market.
Part of the changes over the year included raising the income ceiling for new flats, as well as maintaining a higher priority in flat allocation for first-timers, while giving second-timers - or those who have previously availed of a housing subsidy - more chances in less-developed towns.
Despite seeing signs of stabilisation in the public housing market, Mr Koh admitted that demand remained strong.
Besides seeing more flat bookings, the HDB's capital expenditure for the year also rose from $5.2 billion to $7.1 billion - a large proportion of which went on purchases of land and construction in the wake of an increase in building contracts.
The year also saw a higher overall net deficit of $443 million, compared with $143 million the previous year.
This was due to more funds being pumped into building resources, as well as having more subsidised rental flats leased out to meet demand.
Source: The Straits Times –5 December 2012

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