Singapore Property News: 16th to 29th February 2016

Real Estate News

Property Market Activities

Wandervale EC more than 40% oversubscribed (BT, 29 February 2016)

Sim Lian Group has received 750 e-applications for the 534 available units at the Wandervale executive condominium (EC) as at 5pm on Feb 28. According to the group, the Choa Chu Kang EC – which is the first EC to be launched this year – is more than 40 per cent oversubscribed. The Wandervale showflat, which is on Choa Chu Kang Ave 3, saw more than 5,000 visitors.

S$1,030 – 1,050 psf average price for The Wisteria (BT, 25 February 2016)

The Wisteria, at the corner of Yishun Avenue 4 and Yishun Ring Road, will be launched soon. Half or 108 of the project’s 216 residential units will be offered in the initial launch at an average price of S$1,030 – 1,050 per square foot (after a 5 per cent early bird discount). 80 of the 108 units in the initial launch, will be priced below S$1 million each. The preview starts on Feb 27 with sales slated to begin on March 12.

CBD leasing market set for tough times (ST, 22 February 2016)

Landlords this year will contend with a rise in supply even as some tenants cut back on their real estate footprint. Guoco Tower, which is due to be completed this year, has found tenants for only about 10 per cent of its 890,000 sq ft of office space. However, landlords will take heart that there is not too much shadow space being created for now, CBD Grade A office market saw an estimated 28 per cent fall of shadow space at the end of last year.

Resale condos going for under $1m – and not all are shoebox units (ST, 22 February 2016)

Bargains can be found in the private home resale market – at $1 million or even less, and not all are shoebox units. Some larger units in good locations such as Bayshore Road have been selling for this amount. However, buying a resale property also means financing kicks in immediately, which means a buyer who is an investor must contend with the soft leasing market.

Private housing resale market shines as buyers get off sidelines (Today, 21 February 2016)

SRX data shows that by the end of last year, resale prices of non-landed private residences had fallen 7.8 per cent from the recent peak in Jan 2014. Analysts said compared with new launches sold directly by developers, some sellers in the resale market have been more willing to price down their properties to secure buyers. Transaction volume in the resale private homes segment grow by 24.1 per cent to 6,160 sales last year from the previous year, showed statistics by the Urban Redevelopment Authority (URA).

Time to ease property curbs, say developers (ST, 19 February 2016)

The head of the property developers’ body here says it is time to wind back property cooling measures given an oversupply of housing and a fragile economy. Stepping up similar calls he made last year, Mr Augustine Tan said the measures had already succeeded in reducing home prices and sale volumes – and that it was timely to look at calibrating them. Supply glut and the current economic situation cited as reasons.

Pressure mounts over unsold units (ST, 19 February 2016)

Developers already struggling in a weak market face more pressure with 700 unsold homes at 13 projects set to be hit by fees of nearly $100 million, the Real Estate Developers’ Association of Singapore said. Developers unwilling to fork out the hefty sum have looked to creative ways to get off the hook. Others are looking at bulk sales to clear unsold units.

Developers log worst January sales since 2009 (Today, 16 February 2016)

January’s new private home sales skidded to its slowest start in seven years, as stock market blues affected buyer sentiment and developers refrained from launching new properties in the seasonally slow period ahead of the Chinese New Year holidays. Developers sold 322 private residential units in Jan, according to Urban Redevelopment Authority (URA) data, down 16.1 per cent from the 384 units in Dec 2015.

Public Housing

Second-timers dominate demand for Bidadari units (Today, 26 February 2016)

As of 5pm on Feb 25, there were 1,039 applicants vying for the 236 five-room units at Alkaff Oasis — among the second batch of public housing in Bidadari launched for sale — with second-timers overwhelmingly dominating the applicant pool with a subscription rate of 34.1 times. In comparison, the application rate for first-timers was 3.

9,000 flats in mature estates for this year (ST, 25 February 2016)

Half of all new public flats offered this year will be in mature estates, to help meet high demand for these locations. This means that around 9,000 Build-To-Order (BTO) flats will be launched in towns such as Ang Mo Kio, Bedok and Bukit Merah, where amenities and transport nodes are usually better developed.

Government Land Sales

Consultants see good interest in ‘palatable’ Sembawang site (BT, 26 February 2016)

A public tender for a 0.7-hectare residential site at Jalan Kandis in Sembawang was launched by the Urban Redevelopment Authority on Mar 25. Consultants expect the small site to generate good interest among developers, given that it would not require a huge capital outlay. The site is 7,045.6 square metres, with a maximum permissible gross floor area of 9,864 sqm. It has lease tenure of 99 years.

Chip Eng Seng unit puts in top bid for site near Tanah Merah MRT (BT, 24 February 2016)

A Chip Eng Seng unit has put in the highest bid for a residential site at New Upper Changi Road/Bedok South Avenue 3 (Land Parcel B) – S$419.38 million or S$761 per square foot per plot ratio (psf ppr). It beat seven others to the top spot. Allgreen Properties was a very close runner-up with a bid of S$415.89 million (S$754 psf ppr); China Construction (South Pacific) Development was third with a bid of S$395.92 million (S$718 psf ppr).

Industrial sites at Tampines and Tuas launched for sale (CNA, 23 February 2016)

One Confirmed List site at Tampines North Drive 3 (Plot 3) and one Reserve List site at Tuas South Link 1 (Plot 1) have been launched for sale by public tender, JTC announced on Feb 23. The 0.58 ha site at Tampines North Drive 3 (Plot 3) has a 20-year tenure with a maximum permissible gross plot ratio of 2.5. The 3.33 ha site at Tuas South Link 1 (Plot 1) has a 30-year tenure with a maximum permissible gross plot ratio of 2.0.

Hoi Hup’s top bid for Hougang EC site near high end of expectations (BT, 19 February 2016)

The 99-year leasehold site is not near any MRT station but is considered attractive as it is nestled in an established HDB estate, which provides a catchment of potential buyers for the future EC project, and is near amenities. It is also a stone’s throw from the popular Rosyth School, which runs the Gifted Education Programme. Hoi Hup Realty’s top bid of S$183.8 million, or S$331.02 per square foot per plot ratio, was 6.1 per cent higher than the next highest bid of S$312 psf ppr from Nanshan Group Singapore.

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