Singapore Property News: 16th to 31st October 2015

Real Estate News

Property Market Activities

Apple seen taking up half the space at Fusionopolis Two tower (BT, 29 October 2015)

Tech giant Apple is in expansion mode in Singapore. In addition to reports of plans for its first Singapore store at Knightsbridge mall, it is said to be leasing a chunk of business park space at Innovis in Fusionopolis Two in the one-north area. According to sources, it has leased about 215,000 square feet at the 18-storey Innovis, one of the three blocks in the recently opened Fusionopolis Two project developed by JTC Corporation. With Apple occupying about half the space in the tower, the 18-storey Innovis will be fully let.

Prices of completed condos up 0.1%: NUS index (BT, 29 October 2015)

Prices of completed condominiums in Singapore inched up 0.1 per cent in September from the previous month, the National University of Singapore’s flash estimates for its Singapore Residential Price Index (SRPI) released on 28 October showed. Though this broke a streak of five straight months of price declines from April this year, coming after a 0.7 per cent month-on-month drop in August based on a revised index value, it was hardly enough evidence to alter the views of market watchers who believe downward pressures on private residential prices will continue.

Good Class Bungalow deals in Q3 down from previous quarter (BT, 27 October 2015)

Nine bungalows in Good Class Bungalow (GCB) areas were transacted at a total of nearly S$177 million in the third quarter, down from 11 deals worth S$282 million in the second. In the first nine months of this year, the GCB sale tally was 24 deals totaling S$554 million, slightly ahead of the 22 transactions worth S$511 million in the corresponding year-ago period. Data from URA Realis shows that there has been a general pick up in landed property deals, 326 landed homes changed hands in Q3 2015, up from 304 in Q2, and 246 transactions in Q3 2014.

Private home prices slide further in Q3 (BT, 24 October 2015)

Residential property prices continued to fall in the third quarter, with the year-to-date drop in the Urban Redevelopment Authority’s private home price index standing at 3.2 per cent – similar to the 3 per cent fall in the same year-ago period. In the year to date, the Housing & Development Board’s resale price index has retreated 1.8 per cent – down from a 4.6 per cent drop a year ago. The HDB index posted the smallest quarter-on-quarter (q-o-q) fall of 0.3 per cent in nine consecutive quarterly declines; on the other hand, the 1.3 per cent q-o-q drop in URA’s index was the steepest in eight straight quarters of declines.

Why collective sales slowly losing shine (BT, 24 October 2015)

Demand for collective sale sites in Singapore has nearly dried up, with only one deal done since the beginning of last year – a far cry from the 16 transactions closed in 2013. A range of factors – weak home -buying sentiment, property cooling measures, ample supply of government land sites and the complexity of selling en bloc – have suppressed developers’ appetite for such deals, analysts said. The Additional Buyer’s Stamp Duty is a big challenge for large sites because the developer has to complete the project and fully sell it within five years, or face a penalty of 15 per cent of the land price, analyst said.

Euro-Asia Apartments eyes collective sale (ST, 20 October 2015)

A collective sale tender for Euro-Asia Apartments in Serangoon Road, likely to be launched in April next year, comprises 84 units and sits on a 56,476 sq ft site with a plot ratio of 2.8. There can be up to 210 units when it is redeveloped. The reserve price for the property, opposite Bendemeer Primary School, is between $140 million and $142 million.

Not time yet to unwind property cooling measures: National Development Minister Lawrence Wong (ST, 17 January 2015)

Property cooling measures are set to stay put, at least for now, National Development Minister Lawrence Wong said yesterday. Mr Wong said “the price adjustments that we’ve seen so far have been moderate compared to the increase in prices that took place very quickly in the past few years. It’s still not time yet to unwind the cooling measures. We don’t want to risk a premature market rebound.” Mr Wong did not rule out the possibility of lifting certain measures ahead of others, but stopped short of committing to which might be the first to go.

Thomson Impressions to be launched at S$1,400 psf on average (BT, 16 January 2015)

China-based Nanshan Group is set to launch its maiden 288-unit private condominium project in Singapore at an average price of S$1,400 per square foot (psf) when it starts selling on Oct 31. Nanshan Group has lately formed a joint venture with Vico Construction Pte Ltd to develop the project, which sits on a 99-year leasehold land parcel acquired for S$173.57 million or S$731.10 psf per plot ratio in October 2014.

Public Housing

More active resale HDB market in the making (BT, 22 October 2015)

Since peaking more than two years ago, prices of HDB resale flats have been decreasing steadily. Based on the board’s third quarter flash estimate, the HDB resale price index has eased by a total of 9.9 per cent over nine straight quarters – from a high of 149.4 in Q2 2013 to 134.6. In Q3 2015 itself, the index dipped 0.3 per cent from the previous quarter, marking the smallest decrease in the nine quarters of price corrections.

More BTO flats likely next year: minister (BT, 17 October 2015)

The supply of new Housing Board flats is likely to go up next year, to meet higher demand arising from recent policy changes. “Because of the new measures that were introduced, we expect demand to go up. So I’ve asked HDB to look at supplying more BTO (Build-To-Order) flats next year in order to accommodate higher demand, but this does not mean the government is changing its tapering approach,” Mr Wong said.

Government Land Sales

HDB rejects bids for Ubi industrial site as they are ‘too low’ (BT, 29 October 2015)

The Housing & Development Board (HDB) on Thursday said that it has not accepted any bids for an industrial development site at Ubi Avenue 1 because “the prices offered were too low”. The site was launched for tender on June 30, 2015. It is zoned “Business 1”, with a site area of 6,103.3 square metres, a maximum gross plot ratio of 2.5, and a lease term of 30 years. BP-DC Pte Ltd, a subsidiary of Boustead Projects, submitted the highest bid of S$19.9 million, which translates to S$120.91 per square foot per plot ratio.

Good response expected for Clementi site (BT, 24 October 2015)

Property consultants are expecting a good response for a 99-year leasehold private residential site in Clementi Avenue 1 launched for sale, given its location in a mature estate and its proximity to several good schools. The 1.3-hectare site is estimated to yield 460 units. It is on the confirmed list of the second half 2015 Government Land Sales programme. Consultants’ forecasts came in a wide range, with expectations of 5-16 bids, with a top bid falling in the brackets of S$480 to S$692 per square foot per plot ratio.

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