Singapore Property News: 16th to 31st July 2015 | Jack Sheo

Singapore Property News: 16th to 31st July 2015

Real Estate News

Property Market Activities

Shunfu Ville poised for en bloc sale launch (BT, 28 July 2015)

Shunfu Ville at Marymount Road, a privatised former HUDC estate, has achieved the minimum consent level required for the site to be launched. The owners stand to receive unit land price in the low-S$800 per square foot per plot ratio range, inclusive of two payments that the buyer will have to make to the state. Under the Urban Redevelopment Authority’s Master Plan 2014, the Shunfu Ville site is zoned for residential use with a 2.8 plot ratio – which means a potential project of 1,280 units based on an average unit size of 850 sq ft and can rise up to 36 storeys.

Private property prices fall again (ST, 25 July 2015)

Private property prices fell again in the second quarter – the seventh consecutive quarter of decline. While the declines have been persistent, experts feel they have not been large enough to prompt the Government to tweak cooling measures. Prices fell 0.9 per cent in the second quarter after easing 1 per cent in the first quarter, according to Urban Redevelopment Authority data recently. They are now down 6.7 per cent from their recent peak in the third quarter of 2013.

Record private home completions in Q2 send vacancies to a high (BT, 25 July 2015)

Even as its overall private home price index slipped for the seventh consecutive quarter, the volume of private home transactions in both primary and secondary markets rose substantially in Q2 over the preceding quarter, based on data from the Urban Redevelopment Authority. The widely-watched market barometer eased 0.9 per cent quarter-on-quarter in Q2, after shedding 1 per cent in Q1; the index is now 6.7 per cent below its recent peak in Q3 2013.

Too early to lift property curbs: MAS Chief (CNA, 22 July 2015)

“Property prices have softened somewhat, but like I said last year, in the context of the price increase that had occurred – 60 per cent over three years – the softening we have seen is really not all that much. So, it’s still premature to consider removing any of the cooling measures that are in place,” Mr Menon said on Monday (Jul 20) at the media briefing to release the central bank’s annual report. In spite of the continual decrease in prices of private residential properties, prices have corrected less than 7 per cent from their peak, and hence, the cooling measures introduced in 2009 are unlikely to be rolled back.

158 Cecil Street being sold for S$240m (BT, 21 July 2015)

Alpha Investment Partners, the fund management arm of Keppel Land, grants purchase option to a company linked to low-profile Singaporean Denis Jen, who owns malls in Australia. The price works out to about S$2,100 psf based on the 14-storey building’s net lettable area of around 115,000 sq ft and a balance lease term of around 65 years. Alpha acquired the property for S$235.5 million in 2007 from KPO Properties, which agreed to complete a major refurbishment before delivering the property in 2009 to Alpha.

Strong sales at High Park Residences (ST, 20 July 2015)

Interest was strong on the first weekend of sales for High Park Residences in Sengkang, with nearly 1,100 units snapped up out of a total of 1,390 units, translates to a 78 per cent of units sold. The new project, which includes nine commercial units, has seen all of its studio, “one plus study”, shop and bungalow units snapped up by buyers.

Eden Hall vacant land could go on market (BT, 17 July 2015)

Expectations are running high that the British government could offer for sale part of the vacant freehold land at its Eden Hall site, possibly two plots of land may be carved out for sale. The minimum land area stipulated by Urban Redevelopment Authority (URA) for a GCB is 1,400 square metres. Expert estimates that the plot with Nassim Road frontage could fetch at least S$2,500 per square foot (psf) on land area while the land parcel behind it would go for a lower price, possible S$2,250 psf, reflecting a price dilution on account of the long driveway.

Sharp drop in sales of new private homes (ST, 16 July 2015)

Sales of new private homes suffered a sharp decline in June amid the absence of new launches and a mid-year holiday lull. Developers sold 375 units, about 42 per cent down on May. There were no new private residential launches in either month, although Westwood Residences Executive Condominium (EC) was launched in May. The deals included Botanique at Bartley, which sold 59 units at a median price of $1,301 per sq ft (psf), and Lakeville in Jurong, where 25 units were sold at a median price of $1,320 psf.

Leasing woes for private non-landed, public housing (ST, 16 July 2015)

Rents for private condominiums and apartments edged down 0.5 per cent last month compared with May, according to flash estimates released by SRX Property. Year on year, rents last month were down 6.5 per cent from June last year, 12.4 per cent lower since their peak in January 2013. Rents in May have been revised from a 0.6 per cent decrease to a 0.8 per cent drop. Rents in the city and suburban areas declined by 0.8 per cent and 0.7 per cent, respectively, while those in the city fringe areas saw no change.

Public Housing

HDB resale prices expected to reach bottom of price cycle soon (ST, 28 July 2015)

With figures from the Housing & Development Board (HDB) confirming a 0.4 per cent drop in HDB resale prices here in the second quarter, property market watchers believe that the public housing market is on track to reach the bottom of the price cycle soon. The price fall during the second quarter was most moderate across the eight straight quarters of decline and followed a one per cent drop in resale prices during the first quarter. Lower prices has drawn buyers, with resale transactions jumping 27.8 per cent quarter-on-quarter to 5,286. A slower rate of price decline and an increase in resale transactions could be signs that the HDB resale market is expected to reach the bottom of the price cycle, according to property analysts.

Government Land Sales

Choa Chu Kang executive condominium site draws strong interest (CNA, 31 July 2015)

The Choa Chu Kang EC site attracted the highest number of bids for an EC site since the tender for a site at Anchorvale Crescent in February 2014. The tender for the 99-year-leasehold site in Choa Chu Kang Avenue 5 closed on the 28th of July. The top bid, from Qingjian Realty (Residential), Suntec Property Ventures and Bohai Investments (Sengkang), was S$156 million, or S$295 per square foot per plot ratio (psf ppr). The second highest bid, from TID Residential, was S$275 psf ppr. But despite the number of bids, a market watcher said bid prices continue to stay low, below S$300 psf. The site can yield about 490 units.

JLL confirms en bloc sale of Thong Sia to Sin Capital (BT, 31 July 2015)

Broker confirmed that a member of Sin Capital Group, a private investment group in Asia, has signed a deal to buy Thong Sia Building, a 26-storey building located along Bideford Road opposite The Paragon. The purchase price of S$380 million translates to S$2,430 per square foot (psf) over the existing gross floor area for the freehold building. The price makes it the second largest collective sale over the last seven years after Serangoon Plaza, a fully commercial development, was sold for S$400 million in 2013.

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