Singapore Property News: 16th to 30th November 2016

Real Estate News

Property Market Activities

Prices of completed condos flat in October (BT, 29 November 2016)

Prices of completed private apartments and condominiums were flat in October compared to September 2016, as the dip in prices of non-central units was offset by the uptick in prices of central units, according to the latest flash estimates of the NUS Overall Singapore Residential Price Index released on 28 Nov. This is an improvement over the fall in prices of completed private apartments and condos by 0.5 per cent month on month in September.

ABSD deadline fast approaching, but developers stay cool (ST, 29 November 2016)

New rules introduced in December 2011 state developers must build and sell all units in residential projects within five years of buying the site. If they fail to move the units, they face a 10 to 15 per cent levy on the site’s purchase price plus 5 per cent interest. Despite the ABSD deadline, analysts say, developers are unlikely to sell units on the cheap to clear stock, as demand for new homes has picked up. Developers expressed similar sentiments, with some confident of selling out before the ABSD deadline.

Singapore shaves growth forecast for 2016 as exports shrink (ST, 24 November 2016)

The Singapore economy is expected to grow 1 to 1.5 per cent this year, from an earlier forecast of 1 to 2 per cent. Growth next year is tipped to come in between 1 to 3 per cent on the back of a slighter stronger global outlook, the Ministry of Trade and Industry said on 24 Nov. Significant risks, including a mounting backlash around the world against globalisation could further weigh on already-weak world trade and dampen confidence, the ministry noted.

Sustainability of primary sales take-up, prices unclear: president (BT, 18 November 2016)

“It is too early to conclude that recovery in primary sales take-up and current prices will be sustainable,” said the president of REDAS. Clouding the outlook now are the substantial new supply coming onstream and the prospect of a prolonged period of slow economic growth. As at end-October, some 500 unsold units across 12 developments will be affected by QC conditions by year-end, incurring charges of about S$47 million. Some developers also expect to see fluctuations in take-up rates for upcoming launches, given that the mixed performance of recent launches.

Perk-up in developers’ private-home sales likely to continue in November (BT, 16 November 2016)

The revival in developers’ private homes sales last month – sparked by new launches Forest Woods and The Alps Residences and supported by sales from earlier launches – is expected to continue this month. An expert said developers’ sales could fall between 700 and 1,000 private residential units this month and between 500 to 800 units next month. Developers are expected to avoid launching major new projects for the rest of the year, given the start of the school-holiday season, with the lull in launches possibly stretching until the Chinese New Year in late January.

Public Housing

BTO launch: Kallang/Whampoa, Bidadari flats most popular (ST, 29 November 2016)

The biggest launch of Build-To-Order flats this year drew to a close just before midnight, with four-room flats in Kallang/Whampoa and Bidadari posting the highest demand. As of 5pm on 28 Nov, there were almost 11 applicants vying for each of the 158 four-room units in the Kallang Residences project. Over at new housing estate Bidadari, which comes under Toa Payoh town, there were just over six buyers going for each of the 587 four-room flats on offer in Woodleigh Glen and Woodleigh Village. Application rates were generally the highest among second-timers – those applying for their second subsidised Housing Board flat.

Lower property tax for HDB flat owners in 2017 (ST, 28 November 2016)

Housing Board (HDB) flat owners will pay lower property tax next year while almost all private property owners will have lower or see no change to their bills, said the Inland Revenue Authority of Singapore on Monday (Nov 28). Owner-occupiers of one- and two-room HDB flats are exempt from property tax; three-room flat owners will pay up to $18.40, four-room flat owners between $52 and $100, five-room flat owners between $83.20 to $131.20, and executive flat owners from $95.20 to $143.20 in 2017. Iras reviews the annual value of properties, on which property tax is based, every year to ensure that they reflect prevailing market rentals.

Government Land Sales

URA, JTC launch four confirmed and reserve list sites (BT, 29 November 2016)

The URA released two sites on 29 Nov, a residential with first-storey commercial site at Perumal Road under the Confirmed List, and a residential site at Toh Tuck Road under the Reserve List. The two sites can yield about 200 and 325 units respectively.

Separately, JTC also launched the 0.53-hectare Tampines Industrial Drive (Plot 1) site under its Confirmed List and the 0.47-hectare Tuas South Link 3 (Plot 24) site under its Reserve List. Both sites are zoned Business-2, with 20-year tenures and gross plot ratios of 1.4.

Two JTC tender sites awarded (BT, 18 November 2016)

Kok Tong Transport & Engineering Works, part of the infrastructure company KTC Group, beat two other bidders to clinch the Tampines site (Plot 3) for about S$3.1 million. Wellbuilt, a construction firm that specialises in structural steel work, beat five others to clinch the Tuas South Link 2 (Plot 6) site for about S$2.8 million. A spokesman said that the company plans to build an office-cum-factory on the site. Both sites are zoned Business-2, for heavier, more pollutive industrial use, with 20-year tenures and gross plot ratios of 1.4.

Investment Sales

Cityvibe in Clementi sold for S$71m to Zhao family from China (BT, 30 November 2016)

The four-storey commercial building near Clementi MRT Station, with a balance lease term of about 60.5 years, has been sold in a deal that values the property at S$71 million. Based on rental income from the existing leases, the price reflects a net yield of slightly above 4 per cent. Cityvibe has a gross floor area of 46,557 square feet; this works out to about 2.98 times the site area of 15,597 sq ft, and its current lettable area is slightly under 29,000 sq ft.

More collective sales in store next year (BT, 28 November 2016)

Among at least eight collective sale hopefuls, owners of Lakeside Towers in Jurong have set up a collective sale committee, which has invited 14 property consultancies and seven legal firms to submit their proposals for consultancy services to execute the collective sale process. The site at Yuan Ching Road, which houses 144 apartments, spans 153,237 sq ft with a plot ratio of 2.1 and has a balance lease of 58 years.

Other collective sale hopefuls include Cairnhill Mansions in District 9, the 12-unit Villa D’Este on Dalvey Road, the 330-unit Eunosville near Eunos MRT station, Rio Casa, a privatised HUDC estate with 286 units at Hougang Avenue 7, 12-unit freehold Dunearn Court in prime District 11, and One Tree Hill Gardens, a 13-unit freehold project in prime District 10.

Penthouse at Bishopsgate Residences sold for S$20.68m (BT, 26 November 2016)

Kajima Overseas Asia has sold a penthouse at Bishopsgate Residences in District 10 for S$20.68 million, or S$3,462 psf based on the strata area of 5,974 square feet. The buyer is a Singapore-incorporated company owned by two Japanese citizens.

A second transaction, off Bukit Timah Road, is the sale of an old two-storey GCB along Third Avenue. Its price of S$20.7 million works out to nearly S$1,066 psf based on the freehold land area of 19,420 sq ft. The buyer is understood to be Suresh Nair, an obstetrician and gynaecologist who specialises in advanced fertility treatment.

3 prime residential properties off Orchard Road sold for S$190.5m (BT, 25 November 2016)

Sustained Land, controlled by Douglas Ong, paid S$103.8 million for a 21,560 square feet plot at 3 Cuscaden Walk, which has a gross plot ratio of 2.8. This represents S$1,826 per square foot per plot ratio on the potential gross floor area, including an estimated development charge of S$6.43 million payable upon redevelopment.

Singapore-listed Roxy-Pacific Holdings snapped up the property at 120 Grange Road, which spans 15,780 sq ft of land area with gross plot ratio of 2.1, for S$48.5 million or S$1,841 psf on existing strata area. Roxy-Pacific group plans to build 40-50 units on the site, which will translate to S$1,463psf ppr on maximum strata GFA.

The property at 8 Hullet Road with 10,733 sq ft in land area went to Hullet Development, a consortium led by Patrick Kho, managing director of Lian Huat Group, for S$38.2 million or S$2,073 psf on existing strata area.

CLSA Capital Partners bags 77 Robinson Road for S$530.8m (BT, 22 November 2016)

CLSA Capital Partners has inked a deal to buy the 35-storey office tower for S$530.8 million or S$1,810 per square foot based on an NLA of 293,269 square feet. SEB ImmoInvest fund, the seller, acquired the property from an earlier CLSA-managed fund in April 2007 for S$526 million. Once known as SIA Building, the office development is on a site with a 99-year leasehold tenure that started on Feb 18, 1994; the balance lease tenure is about 76 years.

Lian Beng, KSH, KOP consortium looking to dispose shares of indirect associated firms linked to Prudential Tower (BT, 21 November 2016)

The consortium, Epic Land Pte Ltd, has served a non-binding letter of intent to an interested purchaser which is an unrelated third party, the companies announced in three separate but similar filings to the Singapore Exchange on the evening of 21 Nov. The purchaser has been given an exclusive period of eight weeks to conduct due diligence review for the proposed disposal. More details on the proposed disposal will be shared after the sale and purchase agreement has been signed.

Site where iconic Queenstown cinema once stood sold for S$78m (BT, 3 November 2016)

The price of the prime commercial-zoned piece of vacant land located a stone’s throw from Queenstown MRT Station with a balance lease term of 57 years works out to around S$756 per square foot per plot ratio. Market watchers say a new commercial development on the site could breakeven at about S$1,800-1,900 psf.

GSH Corp said to have bought the top floor of GSH Plaza for S$31m (BT, 2 November 2016)

GSH Corporation is understood to have bought up all nine strata office units on the top floor of the 28-storey GSH Plaza for nearly S$31 million, which works out to an average price of S$3,192 per square foot (psf) on a strata area of 9,709 square feet. Formerly known as Equity Plaza, The Exchange and The Quadrant, the property is on a site with a balance lease term of about 72 years.

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