01 Jul Singapore Property News: 16th to 30th June 2016
Property Market Activities
Completed apartment, condominium prices in May down 0.8%: NUS (BT, 29 June 2016)
Latest flash estimates from the National University of Singapore (NUS) revealed that prices of completed private apartments and condos fell 0.8 per cent in May from the previous month, led by small units which fell 1.1 per cent and units in non-central areas which dipped one per cent.
Brexit might have done S’pore property a favour (BT, 28 June 2016)
“Brexit” might have some unintended positive consequences such as a soft landing for Singapore’s wobbly property market. Singapore’s commercial property market could see fresh inflows of capital alongside more obvious beneficiaries in continental Europe. That is more likely to prevent a slump in prices of existing assets rather than to lead to a rush by developers to build new towers.
Market watchers split on whether to jump into UK real estate (BT, 25 June 2016)
Some deem it unwise to jump headlong into the UK property market for now; others think the uncertainty has created an opportunity for gains to be made. Real-estate brokers and analysts who see opportunity for gains amid the uncertainty say they expect interest from international investors to pick up when they start to realise the currency arbitrage arising from a weaker sterling pound.
Hao Yuan’s Northwave EC likely to be priced at average S$760 psf (BT, 23 June 2016)
Hao Yuan Investment is expected to price its executive condominium (EC) project Northwave at an average S$760 per square foot (psf). E-application has started since 25 June and will end on 7 July, booking of units is expected to begin on 9 July. Property consultants deem the said average pricing at Northwave to be reasonable.
Home rents falling, but yields not plunging yet (ST, 22 June 2016)
Rents for residential properties may be falling, but yields – the annual rent as a percentage of the home’s value – have not yet plummeted like a stone as some fear. According to a study by Savills, the median gross rental yield islandwide was about 3.2 per cent last month, based on median prices of $1,223 per sq ft (psf) and median rents of $3.26 psf in the month. This was down from the gross median yield of about 3.7 per cent a year earlier, based on median prices of $1,115 psf and median rents of $3.45 psf in the month.
Low rents draw big names to Marina Bay office spaces (BT, 22 June 2016)
Several big potential office leasing deals involving relocations are in motion, as occupiers take advantage of current low rents amid a wave of new office completions to move into newer buildings in the Marina Bay area which offer greater space efficiency due to larger floor plates. However, net office demand is not expected to increase much in the absence of any “category killer” to drive office demand.
Developers’ sales of private homes hit 10-month high in May (SBT, 16 June 2016)
Developers’ sales of private homes surged to a 10-month high last month on the back of new launches Gem Residences and Stars of Kovan and steady sales in projects released earlier. The main drivers of sales at two launches were the relatively smaller units.
More developers offer deferred payment plans (ST, 16 June 2016)
Deferred payment schemes have been catching on with property developers, with two more offering the option in a bid to move units. OUE has sold about 160 units at its project since late March when the scheme was introduced. CapitaLand is saidto have sold about 20 units at d’Leedon under its version of the scheme introduced for most of the remaining units at d’Leedon and The Interlace. Developers of The Boutiq in Killiney Road and Lloyd Sixtyfive had similar plan.
Private housing rents down in May, those for HDB stay flat: SRX (BT, 16 June 2016)
Rents of private non-landed homes slipped 0.6 per cent in May while that for HDB flats remained unchanged compared to a month ago, according to SRX Property. These flash estimates reflect a divergence in how rents and prices are trending. Analysts noted that this trend of stabilising prices and falling rents is expected to continue amid the illogicality of liquidity surplus and a sputtering economy.
Government Land Sales
Only EC site on Confirmed List this year launched (BT, 30 June 2016)
An executive condominium (EC) site along Anchorvale Lane – the only EC site on the Confirmed List of the government land sales (GLS) programme for this year has been released for sale. Property consultants believe the site could draw interest from developers who have had residential projects in the north-east region, but aggressive bidding is unlikely amid a supply overhang of unsold ECs and mass-market condominiums in that region.
Moderate, calibrated industrial land supply in H2 (BT, 29 June 2016)
In line with its policy of ensuring adequate land supply for industrialists without exacerbating the risk of an oversupply, the government is rolling out seven industrial sites on the Confirmed List totalling 3.99 hectares in site area. Another five sites spanning 7.71 hectares are placed on the Reserve List, to be triggered for public tender when there is a minimum acceptable bid. The 12 sites combined have a total area of 11.7 hectares.
Quek Leng Chan pips S’pore cousin to top bids at URA tender for Martin Place condo site (BT, 29 June 2016)
A unit of Malaysian tycoon Quek Leng Chan’s Singapore-listed GuocoLand bid S$595.1 million, which works out to S$1,239 per square foot per plot ratio (psf ppr) 1.2 per cent higher than the second bidder, for the plot at the corner of Martin Place and River Valley Close. Both bids exceeded S$930–S$1,200 psf ppr range The Business Times polled in late April. The site drew a total of 13 tender bids, reflecting the upbeat mood among developers.
OCBC puts Bukit Pasoh shophouses on market (BT, 30 June 2016)
OCBC is putting up a pair of freehold conservation shophouses along Bukit Pasoh Road, near Keong Saik Road, and a stone’s throw from Outram MRT Station. The guide price for 11 and 13 Bukit Pasoh Road is in the region of S$20 million, which works out to about S$2,350 per square foot based on the gross floor area (GFA) of 8,503 sq ft.
OCBC puts Robinson Rd office block on market (BT, 28 June 2016)
OCBC has put up for sale a 12-storey freehold office block at 110 Robinson Road, with an indicative price of S$45 million. The price translates to about S$3,162 per square foot based on the building’s net lettable area (NLA) of 14,233 square feet. Currently the occupancy rate is 76 per cent and the average passing rent on existing leases is about S$4.80 per square foot a month. Based on the property’s current income, S$45 million price reflects a gross yield of 1.38 per cent. The tender for 110 Robinson Road closes on July 26.
Property investment sales up 18.2% to $9.6b in first half (BT, 24 June 2016)
Property investment sales have risen 18.2 per cent to $9.56 billion over the same period last year, according to CBRE. Foreign investors were more active buyers, accounting for 59.5 per cent of the deals by value, or about $5.68 billion. The market saw a few new entrants making their first foray in the Singapore market, including Qatar Investment Authority (QIA) and Hong Kong-based Shun Tak Holdings.
77 Robinson Road back on market – again (BT, 23 June 2016)
The 35-storey building – which has a net lettable area of some 293,269 sq ft – has been relaunched for sale at a guide price of about S$575 million, or S$1,960 per sq ft (psf). Situated on a site with a balance lease term of 77 years, the building has an occupancy rate of close to 90 per cent. The main tenants include Adidas, Dentsu, DVB Bank and Sojitz. At its guide price, the property will offer potential buyers a net yield of about 3.5 per cent in one year.
Eden Hall GCB plots up for sale again (BT, 21 June 2016)
The relaunch sees guide prices being slashed by about 20 per cent, comes after bids during the initial tender period, which closed in January, failed to meet the guide price. The front plot, approximately 18,618 sq ft, is priced at S$1,700 psf, 23 per cent down from Jan. The rear plot, approximately 15,634 sq ft, is priced at S$1,630 psf, 18.5 per cent down from Jan.
Katong Shopping Centre put up for collective sale for a third time (CNA, 16 June 2016)
Katong Shopping Centre has been put up for collective sale for the third time. The reserve price is set at S$630 million. This translates to a land price of S$2,248 per square foot per plot ratio. The mall, which contains 425 units, sits on a freehold plot of nearly 87,000 square feet. Situated along Mountbatten Road, it houses among others, offices, employment agencies, printing and tailoring services shops, and eateries.