01 Apr Singapore Property News: 16th to 31st March 2018
Property Market Activities
Farrer Park to make way for redevelopment (ST, 31 Mar 2018)
By the end of next month, the Singapore Amateur Boxing Association will vacate the gym at Farrer Park to move into a space at the Bedok Sports Hall. The move is the first step in the eventual transformation of the Farrer Park fields – a hallowed ground for sports from the 1930s through to the 1980s – into a residential area.
Developers send Q1 property investment sales to new high (BT, 31 Mar 2018)
Investors snagged some 26 residential land parcels (excluding sites yielding more than 20 per cent of gross floor area in other uses) worth S$7.27 billion in the first three months of this year. The top residential deals in the first quarter include Pacific Mansion, which was acquired for S$980 million; and Park West, which was snagged for S$840.89 million.
Amber Park, Royalville en bloc sales pushing up prices in vicinity (BT, 30 Mar 2018)
Resale prices of existing condos and private apartments in District 15, which includes the Katong and Amber Road areas, as well as District 10 have risen significantly following news of the Amber Park and Royalville collective sales last year. Analysts say resale prices of existing homes are being driven up by strong demand for replacement homes by cash-flush individuals and families who have sold their homes through collective sales in the nearby areas, among other factors.
SPH, Kajima break ground on landmark Bidadari project (BT, 29 Mar 2018)
The first private residential-cum-retail project in the new Bidadari estate will offer some 680 residential units and close to 28,000 sq m of retail gross floor area. OrangeTee & Tie is one of the appointed marketing agents for the two to four-bedroom condos in The Woodleigh Residences.
Cluster housing is hot again (BT, 29 Mar 2018)
The limited supply of cluster houses will preserve the value of such properties, making them even more exclusive and rare. With their attractive price tag and good capital yield, demand for cluster houses will likely rise in the coming months. As demand is likely to pick up further, we can expect prices to climb by 3 to 5 per cent this year, barring any unforeseen events.
New condos can cost up to 13% more than existing neighbours (BT, 29 Mar 2018)
Based on the prices paid for residential sites in the OCR, it is estimated that the prices of new condominiums to be launched in 2018 and 2019 could potentially be 7 per cent to 13 per cent higher than the condominiums that are currently offered for sale in the vicinity of the land parcels sold.
Proptech – the emerging disruption in real estate (BT, 29 Mar 2018)
The real estate industry ITM will leverage technology to address complaints from buyers and developers about the long transaction processes and regulatory hurdles. It is certain that there will be an impact on traditional business models. Whether this impact turns out to be positive or negative depends largely on how real estate players will use proptech to their advantage.
Return of foreign buyers to S’pore property scene (BT, 29 Mar 2018)
An industry player anticipates more foreign buyers with varied profiles returning to Singapore’s housing market. They could be professionals who have worked in Singapore for some years and are willing to purchase homes outside the prime districts or younger professionals working in the IT and banking sectors, who have built their wealth in the new economy.
Singapore factory output beats expectations; grows 8.9% in Feb (BT, 27 Mar 2018)
Singapore’s factory output continued to put up a laudable performance in February. But despite the surprise upside in manufacturing numbers, the outlook over the next few months still appears clouded as talk about an impending US-China trade war escalates.
315 units of The Tapestry in Tampines snapped up (BT, 26 Mar 2018)
Some 315 units, or 70 per cent, of the 450 units released of The Tapestry were snapped up over the weekend. The average price per square foot is S$1,310. The project’s developer CDL said all unit types had a “good take-up rate”, particularly the one-bedder and two-bedroom units.
Non-oil exports shrink 5.9% in Feb, far below economists’ expectations of 4.8% expansion (BT, 17 Mar 2018)
An unexpected decline in Singapore’s exports last month surprised economists who were hoping for another month of growth amid the ongoing global economic upturn. But it is too soon to tell if the contraction points to slowing export momentum. Still, most economists were already expecting exports to grow at a more sedate pace this year.
CDL to launch new Tampines condominium (BT, 16 Mar 2018)
CDL is launching a new condominium project in Tampines, starting from S$596,000 for a one-bedder. CDL expects a “good take-up” from new home buyers, upgraders and investors.
CNY lull, absence of launches cause 28% drop in Feb new home sales (BT, 16 Mar 2018)
Singapore developers sold 377 private homes – excluding EC units – in February, a 28 per cent drop from the 524 units sold in January, as developers held back from launching new projects during the Chinese New Year festivities, amid a depleting inventory of units for sale in the market.
JTC launches 2 sites under Industrial Government Land Sales Programme (BT, 27 Mar 2018)
The 0.88 hectare site at Woodlands Industrial Park E7/E8 is zoned for Business-2 development and has a 20-year tenure with a maximum permissible gross plot ratio of 2.5. The 0.45 hectare site at Tuas South Link 3 (Plot 19) is zoned for Business-2 development and has a 20-year tenure with a maximum permissible gross plot ratio of 1.4.
Far East-led consortium places 3 of total 15 bids for Holland site (BT, 21 Mar 2018)
The URA’s first dual-envelope tender in eight years drew a strong turnout on Tuesday. In all, 15 bids were received from 10 consortiums. According to an expert, the huge capital outlay with a land price possibly exceeding S$1 billion and the necessary experience in developing and managing the non-residential component would have led to the tie-ups.
Tenders launched for parcels at Mattar Road, Silat Avenue (BT, 17 Mar 2018)
The land parcel at Mattar Road, which is under a 99-year lease, has a site area of 6,230.2 square metres with a maximum gross floor area (GFA) of 18,691 sq m. It can yield an estimated 250 units. The site at Silat Avenue, also under a 99-year lease, occupies an area of 22,851.6 sq m and with a GFA of 84,551 sq m. It can yield a maximum of 1,125 housing units. The site is zoned for residential and residential with commercial at the first storey.
Singapore property auction sales in Q1 up 31% (BT, 30 Mar 2018)
The number of properties sold in auction sales rose to 11 units in the first quarter of 2018, from eight in the corresponding quarter a year ago. This was despite the number of new properties put up for sale staying unchanged year-on-year at 63 units in both periods.
8M buys shophouses, commercial building for S$82.5m (BT, 28 Mar 2018)
Homegrown investment property company 8M Real Estate has bagged a portfolio of nine conservation shophouses and a commercial building in District 1 near the Singapore River for a total of S$82.5 million. Based on the S$45.5 million caveat lodged for the Boat Quay/Circular Road cluster, the blended price works out to about S$3,150 psf on GFA.
Oxley Holdings snaps up freehold Ampas Apartment for S$95m (BT, 27 Mar 2018)
Located at 5 Jalan Ampas, the property consists of a land area of around 2,809.3 square metres (sq m). Factoring in the development charge, the acquisition cost will amount to some S$1,073 per square foot per plot ratio, inclusive of balcony area.
Mandarin Gardens condominium approves asking price of S$2.48b (BT, 25 Mar 2018)
In addition to the asking price, potential buyers would have to pay an estimated S$325.4 million as a top-up for a fresh lease, as well as an estimated S$1.28 billion for development charges. This could bring the total tab to close to S$4.09 billion, which translates to S$1,236 psf ppr.
Far East Group to sell Lavender Street property for S$27m (BT, 25 Mar 2018)
The four-storey building situated at 112 Lavender Street is a freehold estate and serves as the regional headquarters of the group’s operations. Far East said that it has issued a conditional option to purchase agreement to Chang Hua Construction, an independent and unrelated third party.
Makeway View sold to Bukit Sembawang Estates unit for S$168m (BT, 23 Mar 2018)
The sale price reflects a land rate of S$1,626 per square foot per plot ratio (psf ppr), including an estimated development charge of about S$21.26 million. Owners of the estate’s 28 apartments and four penthouses are expected to receive gross sale proceeds of between S$3.86 million and S$10.74 million per unit.
Good Class Bungalow deals start to rev up (BT, 22 Mar 2018)
A few big ticket deals in GCB Areas were sealed recently. Year to date, seven deals totalling S$181.6 million have been sealed in GCB Areas; this is higher than the five deals totalling S$116 milion in Q1 2017. An expert said that he is confident that the total value of sales in GCB Areas in 2018 will surpass last year’s figure.
More commercial sites hop onto collective sale train (BT, 22 Mar 2018)
Among them is Singapore Shopping Centre at Clemenceau Avenue, which has only 29 years left on its tenure. Elsewhere in Tanjong Pagar, owners of freehold Realty Centre have also appointed their marketing agent. But so far this year, there has been no commercial collective sale sites sold, with all 14 collective sale sites sold being residential developments. The public tenders of ICB Shopping Centre, Jalan Besar Plaza and Chinatown Plaza have closed without a sale being concluded.
Olina Lodge, Verdun House up for collective sale for S$220m, S$60m respectively (BT, 21 Mar 2018)
Olina Lodge’s reserve price translates to a land rate of S$1,631 psf ppr. There is potentially no development charge payable due to a high development baseline for the 7,830.7 sq m freehold site. Separately, Verdun House’s asking price of S$60 million translates to S$2,100 psf ppr.
Peak Court up for en bloc sale with asking price of S$106m (BT, 20 Mar 2018)
The District 11 condominium with 20 maisonette units can be redeveloped into “an upscale resort-like boutique condominium project with about 106 units.” With a gross plot ratio of 1.4, the asking price translates to a land rate of $1,398 psf ppr.
Kwek and Quek entities secure Pacific Mansion for S$980m (BT, 20 Mar 2018)
The acquisition of Pacific Mansion marks the biggest collective sale in a more than a decade and the second-highest on record. Their winning bid represents a 4.5 per cent premium to the apartment owners’ reserve price of S$938 million. It works out to S$1,987 psf ppr, based on the verified existing GFA of 493,222 sq ft.
En-bloc fever may be cooling (BT, 17 Mar 2018)
The pace of redevelopment sales has started to show signs of slowing, with recent government measures helping dampen the euphoria, including an increase in stamp duty for home purchases of more than S$1 million. Traffic impact studies are now required to ensure redevelopment will not trigger congestion. The development levy for enhancing sites or building bigger projects on them was raised by an average of 22.8 per cent – the biggest increase in a decade.
Bukit Sembawang Estates secures Katong Park Towers for S$345m (BT, 17 Mar 2018)
Bukit Sembawang Estates has successfully tendered for the en bloc sale of Katong Park Towers at a price tag of S$345 million – 20 per cent above its reserve price of S$288 million. This translates to a land rate of S$1,280 per sq ft per plot ratio up to the development baseline, taking into account an estimated S$60 million for the lease upgrading premium.