RESIDENTIAL MARKET
'Let cooling measures take their course'
Let the golden goose that is the real-estate sector continue laying its golden eggs.
This was the message from Wong Heang Fine, president of the Real Estate Developers' Association of Singapore (Redas), who last night urged the government to allow the recent cooling measures for public housing to take their course.
Speaking at Redas' 53rd anniversary dinner, he said it was an unusual time for developers, with high global liquidity and low interest rates.
The slew of recent cooling measures already made for a safety valve to moderate the market, he said, and urged that policy makers refrain from tightening "the demand tap" any further.
"We do not want a situation where people look back and say we overdid it in our policy measures," he said.
He noted that, in the last two decades, both new and resale Housing and Development Board (HDB) flats have become increasingly treated as investment assets, on top of being homes.
"Coupled with pent-up demand for homes from new households every year, we have seen record housing prices both for HDB homes as well as private residential units," he said.
The government, responding to this, has stepped up the supply of flats, hastened land sales and implemented several rounds of cooling measures.
Mr Wong said while Redas shared the government's intention of fostering a stable and sustainable property market, the measures penalised private developers, whose projects comprise only 20 per cent of the housing market.
Developers have come up against a "vicious cycle of rising land costs", he said.
But because land is like flour in the "bread" that developers make, they have little choice but to take part in land bids - even when these are highly competitive, he said. This is so that they can sustain their operations, retain the jobs they create and provide adequate returns to their shareholders.
Chia Ngiang Hong, the group general manager at City Developments Limited, asked for his reaction to Mr Wong's speech, agreed that high land costs are a challenge to developers.
He said he hoped that the government could moderate the supply of land, put more land on the reserve list and put a halt to more cooling measures.
Group chief executive of Frasers Centrepoint Limited Lim Ee Seng, also spoke to reporters on the sidelines of the dinner, responding to Mr Wong's point that the government's cooling measures had led to private developers becoming burdened with not only "persistently high development costs and taxation" but also the increasing strain from rising inventories.
Mr Lim said developers with large inventories need to have a "quick turnaround" as soon as they can to minimise their risk.
Mr Wong, who is also chief executive at CapitaLand Residential Singapore, also said in his speech that, with more than 90 per cent of Singaporean households being homeowners, sharp falls in property prices will have "undesirable consequences".
He said Redas shared Minister for National Development Khaw Boon Wan's views that everyone should help ensure a soft landing as the residential market undergoes its current transition.
Mr Khaw was the guest of honour at last night's event held at the Mandarin Orchard Singapore.
Mr Wong said it may be time to rethink a balanced housing policy menu which offers affordable public housing for the majority, while ensuring that the private sector continues to play an important role.
To that end, Redas will release a paper reflecting developers' collective voice on the challenges of property development and the vision of Singapore in 2030, he said.
Source: Business Times –1 December 2012
Eco Sanctuary units a big draw
Almost 200 out of the 299 units released for sale in Eco Sanctuary in Upper Bukit Timah are understood to have been sold, at an average price of about $1,100 per square foot (psf) after discounts.
The project on Chestnut Avenue, which will have a total of 483 units, began its preview on Nov 23.
SP Setia is the developer of the 24-storey, 99-year-leasehold project. It clinched the site in a state tender which closed in November last year, having paid $180 million or $426 per square foot per plot ratio for it.
The units in the condominium range from one to four-bedders and penthouses. Sizes start at 506 sq ft for a one-bedder and go up to 1,367 sq ft for a four-bedroom unit.
Of the units sold, the lowest-priced one was a one-bedroom apartment on the third floor, which went for $610,000.
The priciest was a 1,981-sq-ft four-bedroom penthouse on the 24th level, which has roof terrace with spa pool above it. The unit cost $1.98 million.
Eco Sanctuary, designed by ADDP Architects, has Green Mark Platinum certification for its eco-friendly features.
A large portion of the space in the development - 86 per cent - is given over to landscaping, water features and facilities.
Facilities in the development will include two tennis courts, two swimming pools and a clubhouse dubbed Island Club, surrounded by a shallow water feature. In addition to a bio-pond, the development will feature a butterfly trail.
Typical units in Eco Sanctuary will have floor-to-ceiling height of 3.35m, higher than the industry norm of 2.9m to 3m.
Developers sold 1,948 private homes, excluding executive condos in October, down 25.7 per cent from September. The dip came from their holding back new property launches to take stock of the curbs on home loan tenures which took effect on Oct 6.
Nevertheless, the sales tally for the first 10 months of this year, at 19,792 private homes, surpassed that for the whole of last year, which was 15,904 units.
It also set a new record, busting the previous high, set in 2010, of 16,292 units.
Sales are expected to slow for November and this month.
Still, agents expect the full-year figures for this year to hit around 22,000 to 24,000 units.
Source: Business Times –1 December 2012
Resale ECs close to private home prices
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.
ECs combine elements of private and public housing and often have premium furnishings and condo-like facilities.
Experts said they are becoming more popular now as many home buyers see them as value buys, particularly those that offer innovative and high-end features.
Units at new EC launches are also typically 20 per cent to 25 per cent cheaper than new mass market homes owing to Housing Board rules applying to ECs such as a household monthly income cap of $12,000.
ECs are subject to a minimum occupation period of five years. They can then be sold only to Singaporeans and permanent residents. They become private property after 10 years and can then be sold to foreigners.
Recently, developers have also upped the ante at EC projects as they battle for buyers spoilt for choice owing to the flood of new home launches.
Penthouses and skysuites, for instance, have become more common at EC projects. Some even feature private jacuzzi pools.
However, the price gap varies among the six suburban districts that have at least two EC projects eligible for resale here, SRX noted. For instance, the gap in District 19 - comprising estates like Hougang, Punggol and Sengkang - is the highest at 22.4 per cent. Resale ECs in this area include The Florida and Park Green.
District 18, made up of Pasir Ris, Simei and Tampines, and District 20, including EC projects like Bishan Loft and Nuovo in Bishan and Ang Mo Kio, have the lowest price gap of just 10 per cent.
Experts said this is likely due to the string of new EC launches and sites being sold in the north-eastern estates that provide stiff competition to existing ones.
The price gap is also expected to narrow further as ECs cement their reputation as being on a par with private condos.
The SRX collates transactions by major property agencies, which account for more than 80 per cent of the market.
Source: The Straits Times –1 December 2012
Pasir Panjang the next waterfront living belt?
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.
The largest new project in the district is the Mapletree Business City, a huge 1.7 million sq ft office and business park.
Completed in 2010, the business hub could be a significant source of office and residential tenants.
Pasir Panjang is also close to Singapore Science Parks I and II and Alexandra Technopark, giving it access to an estimated 100,000 workers and residents in the vicinity, he said.
Also, the recent completion of the Haw Par Villa and Pasir Panjang MRT stations - both on the Circle Line - has helped to boost accessibility to the area.
But one might be forgiven for wondering if there is much space for many homes in the district.
After all, Pasir Panjang Terminal occupies the south and the National University of Singapore sits in the north-west of Pasir Panjang, along with large greenery belts formed by West Coast Park and Kent Ridge Park.
It is unlikely that many more new homes will be built here, consultants said, noting that there were no government land sale sites available in the Pasir Panjang area for the second half of this year.
Mr Eugene Lim, key executive officer at ERA Realty, said the scarcity of new launches in the area meant prices should "remain stable".
The residential area in Pasir Panjang is mainly private homes located along Pasir Panjang Road, stretching from the university to the MRT station.
Only a handful of new residential properties have been launched over the past two years.
Two- and three-bedroom units at 72-unit freehold Horizon Residences, which is expected to obtain its temporary occupation permit (TOP) next year, were launched at prices between $1,300 and $1,400 per sq ft in mid-2010. Ninety per cent of the units have been sold to date.
Other recent launches include 10-unit freehold Ria Apartments, 50-unit freehold Luxe Villa and Viva Vista, a freehold mixed development with 144 residential units and 106 commercial shops.
These are all expected to get TOPs between next year and 2014.
The homes at Viva Vista are mainly shoebox units and one-bedders, and were launched at $1,300 to $1,350 psf for larger units and $1,400 to $1,600 psf for shoebox units. All have been sold.
But both the private resale market and the rental market are fairly active.
Total resale transactions accounted for 52 per cent of all new sale, subsale and resale transactions in the last four years.
One bonus is that Pasir Panjang is cheaper than its neighbour, Telok Blangah. The average price of new sale and resale private homes in Pasir Panjang is estimated to be about 25 per cent and 22 per cent lower, respectively, than those in Telok Blangah.
As for the rental market, rents at freehold condo Parc Imperial, completed in 2010, range from $3,100 to $3,300 a month for a shoebox unit of 420 sq ft, translating to a gross yield of about 5 per cent.
Mr Lim said the residential projects in Pasir Panjang would likely appeal to buyers who prefer developments with fewer units.
But he noted that smaller projects tend to have higher maintenance fees and may not have full condo facilities, making them less appealing to tenants.
Source: The Straits Times –1 December 2012
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.
Launches that could be pushed out by the year end, market conditions willing, include The Whitley Residences in Whitley Road, Liberte in Sarkies Road, Kingsford @ Hillview Peak, Village @ Pasir Panjang, Echelon near Redhill MRT station, Michaels' Residences in Chestnut Avenue, Trilinq in Clementi and Spottiswoode Suites in Spottiswoode Park Road.
At least three other executive condominium projects - CityLife @ Tampines, Forestville in Woodlands and The Topiary in Sengkang - are also expected this month alone.
The launches range from landed to non-landed homes, and mass market to high-end apartments, so home buyers with a range of budgets and preferences will be spoilt for choice.
Marketing materials for freehold strata-landed housing project The Whitley Residences in district 11, for instance, put prices at $850 per sq ft (psf) and above.
The Hoi Hup Realty development consists of 58 semi-detached homes of 5,199 sq ft to 7,104 sq ft and three terraced houses of between 4,801 sq ft and 6,620 sq ft.
The 700-unit suburban executive condominium project The Topiary will have units ranging from 753 sq ft to 2,476 sq ft. Prices range from $580,000 for a two-bedroom unit while penthouses are expected to fetch at least $1.28 million.
Online applications opened last Friday while sales will start on Friday.
SP Setia's 483-unit Eco Sanctuary along Chestnut Avenue in Bukit Panjang recorded almost 200 sales since its preview two weekends ago, and is expected to be officially launched over the weekend. Prices start from $900 psf, say marketing agents.
But some developers have chosen to delay their launches until next year.
Tuan Sing Holdings' Sennett Residence in Potong Pasir will be released next month, said chief financial officer Chong Chou Yuen, although marketing agents are already collecting interest.
He cited the slower festive and school holiday period as part of the reason for the later launch.
Sennett Residence will have 338 units comprising one- to five-bedders and penthouses. It will also have three 18-storey towers and a five-storey block with an Olympic-size pool at the top. Market watchers expect prices to start from about $1,400 psf.
Experts note that developers are keen to ride on the wave of robust new home sales this year.
There were 19,507 private homes sold in the first 10 months of this year - easily eclipsing the record of 16,292 sold in the whole of last year.
Source: The Straits Times –3 December 2012
COMMERCIAL MARKET
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.
Designed by Kohn Pedersen Fox Associates and Architects 61, the building will be completed in 2016 and will be three times the height of the existing tower.
Robinson Towers' redevelopment is part of Tuan Sing's expansion strategy here. The group holds a 50 per cent stake in two Australian hotels and since late 2010, has been making bids at state tenders in Singapore. It has clinched two 99-year leasehold private housing sites, in Seletar and next to Potong Pasir MRT Station.
Tuan Sing is expected to launch a 332-unit condominium, Sennett Residence, on the Potong Pasir site in January.
The counter closed one cent higher at 31.5 cents yesterday.
Source: Business Times –1 December 2012
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.
The top bid for the recent Jurong Town Hall Road hotel site was $1,167 psf ppr, and another close by Victoria Street/Ja- lan Sultan site was $994 psf ppr.
The tender for the site on Jurong Town Hall Road closed earlier this month, and drew a record top bid on a per-square-foot basis for a hotel site here.
The bid was submitted by Tamerton, a subsidiary of Genting Singapore, which tendered $238.2 million for the 97,164.7 sq ft plot near Jurong Country Club.
The land parcel is located near the Ophir-Rochor Corridor, a new growth area envisioned to become a mixed-use cluster with office, hotel, retail, entertainment and residential uses. It is close to the main Bugis shopping area, the Kampong Glam Conservation Area, and the upcoming mixed development DUO by M+S Pte Ltd, which comprises hotel, Grade A office, residential and retail uses.
It is situated a short walking distance from the existing Bugis MRT Station and the upcoming Bugis Downtown Line that is slated to be ready next year.
Source: Business Times –1 December 2012
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