Singapore Property News: 17th to 30th November 2015

Real Estate News

Property Market Activities

Brisk sales at launch of Potong Pasir condo (ST, 30 November 2015)

MCC Land’s The Poiz Residences, next to Potong Pasir MRT station, has notched up brisk sales on its first weekend. 260 units were sold, out of 350 units released for sale in the first phase, the condominium will have 731 units in all. About one-third of sales were one-bedroom, 36 per cent were two-bedders and 31 per cent were three- and four-bedroom units. 98% of the buyers were Singaporeans.

JTC sells Tanjong Penjuru site for $13m (ST, 28 November 2015)

It was second time lucky for a Tanjong Penjuru industrial site, after JTC accepted a bid that was significantly higher than the best bid in an earlier tender. In January, after a first tender for the site, JTC rejected all bids as being too low. The 20-year leasehold site for B2 use was relaunched for sale in August via the Industrial Government Land Sales programme. JTC had sold the 1.63ha site to Trans Eurokars for $13 million or about $29.62 per sq ft plot ratio (psfppr). This is well above the top bid the last time of $9.3 million, or about $21.19 psf ppr, by UBTS.

Ascendas clinches CPF Building for S$550m (BT, 27 November 2015)

Ascendas, which won the tender for the CPF Building at 79 Robinson Road, with its top bid of S$550 million, plans to redevelop the property into a Grade A CBD office project with supporting retail elements, the company said. The tender, which closed on 28/10/2015, drew three bids, Hong Kong tycoon Richard Li – controlled Pacific Century Regional Developments’ fully-owned unit Leapford was the second highest bidder at S$538.28 million and OUE Reef Development, the ultimate shareholders of which are OUE, Haiyi Holdings and SingHaiyi Group was the third and lowest bidder at S$280 million.

Sibor to hit more than 2% by end-2016: OCBC (ST, 12 November 2015)

OCBC is forecasting that the three-month Sibor to which many mortgage rates are pegged – could double and hit more than 2 per cent by the end of next year. OCBC Bank’s head of treasury research and strategy, Ms Selena Ling said at an OCBC Bank 2016 Outlook Briefing held on 11/11/2015 that the Fed is likely to raise rates by at least 1 to 1.25 percentage points by late next year. In its November meeting minutes, the Fed hinted strongly it will next month make its first rate hike in about a decade therefore the economy could see a “slow growth range” of between 2 and 3 per cent” for this year and next year.

Suntec office deals see revival after drought in 2014 (BT, 25 November 2015)

Suntec City has seen a revival in office transactions this year, reflecting a bridging in buyers’ and sellers’ price expectations after an absence of deals last year, when the office market was in runaway phase as one market watcher put it. Analysis of URA Realis data shows that so far this year, there have been six deals totalling S$169.12 million. In 2013, there were 12 deals that added up to S$185.85 million. In 2012 there were eight transactions at S$96.86 million. The average per square foot price achieved has risen from S$1,745 psf in 2009 to S$2,641 psf in 2013 and S$2,774 psf so far this year.

Condos on GLS sites shrinking in size (ST, 21 November 2015)

The average size of condo apartments on sites acquired via the Government has been generally declining since 2010 as developers turn to bite-sized units to deal with loan curbs. The decline in space was most apparent in new projects launched on the city fringes. In the suburbs, where most GLS condo sites were sold over the past six years, average GFA per unit fell from 878 sq ft across six condos launched in 2010 to 811 sq ft in four launches this year.

OUE not pursuing conversion of Twin Peaks condo (ST, 20 November 2015)

Property and hotel group OUE is no longer looking at converting part of Twin Peaks into serviced residences, but is keeping one of two towers at the project aside for bulk sale deals. Some talk emerged earlier this year about developers looking to convert unsold condo units into serviced apartments to avoid these penalties. OUE had flagged such a move in 2013. However, the Singapore Land Authority then clarified that the two-year sales deadline would still apply for such units. Prices are also believed to have been trimmed for its relaunch to about $2,600 per sq ft (psf), compared with an average price of about $2,870 psf when the project was launched in 2010.

Sentosa Cove bungalow fetches S$2,775 psf (BT, 19 November 2015)

A bungalow in Sentosa Cove fronting the Serapong Golf Course and overlooking the sea, has changed hands for S$23.8 million or S$2,775 per square foot (psf) on the land area of 8,576 square feet. Located along Lakeshore View, the property is on a site with a balance lease term of 89 years. The psf price is the highest for a bungalow transaction in Sentosa Cove in the past two years.

New private home sales up 60% in Oct (ST, 17 November 2015)

Two condo launches bolstered sales in October after the doldrums of September, which had the lowest sales of any month this year, but experts say the market will stay flat. A total of 546 new private homes were sold last month, up 60 per cent on the 341 moved in September. Success of the two projects affirmed the attractiveness of properties in the city fringes, noting how rents and prices of non-landed homes generally performed better in these areas last year and this year.

Public Housing

Higher income ceilings benefit over 2,000 BTO applicants (ST, 27 November 2015)

At least 2,100 families and 220 singles who applied for new flats this month were newly eligible due to higher income ceilings. The figures, from 11am 26/11/2015, were for the Build-To-Order (BTO) and Sale of Balance Flats exercises which closed at midnight. It was the first launch with new income ceilings of $12,000 for families and $6,000 for singles.

More Bidadari flats to meet strong demand (Today, 27 November 2015)

There were a total of 3,282 applicants vying for 151 five-room units in Bidadari – or more than 21 applicants per unit. In comparison, the four-room flats on offer in Bidadari were oversubscribed by give times while the application rates for the area’s three-room flats were 1.4. Another 1,600 flats, or almost 40 per cent of the total flats on offer, will be launched in the Bidadari estate in the next Build-to-Order (BTO) exercise in view of the strong demand for the area’s projects. The next BTO exercise will be in February – a total of 4,150 flats are on sale in Bidadari, Bukit Batok and Sengkang.

Government Land Sales

Consultants expect warm interest in Siglap residential site (BT, 27 November 2015)

Warm bidding interest for 1.93 ha residential site under Government Land Sales programme is near Mandarin Gardens and Victoria School is launched for public tender by the Urban Redevelopment Authority (URA) on 26/11/2015. The site has a gross plot ratio of 3.5 and could yield about 750 units. Among the favourable attributes of the 1.93-ha land parcel is its proximity to the future Siglap MRT station, and the popularity of the East Coast residential enclave.

2 sites launched under industrial government land sales programme (BT, 25 November 2015)

JTC launched two sites under the Industrial government land sales (IGLS) programme for the second half of 2015. Confirmed-list site in Tampines occupies 0.41 ha and is zoned for Business 2 development. It has a 20-year tenure with a maximum gross plot ratio of 1.4. The tender for this site closes at 11am on Jan 19. Reserve-list site in Woodlands Height occupies 1.61 ha and is zoned for Business 1 development. It has a 30-year tenure with a maximum permissible gross plot ratio of 2.5.

Investment Sales

Part of Eden Hall land on Nassim up for sale (BT, 24 November 2015)

Part of the garden at Eden Hall, the official residence of the British High Commissioner in Singapore, has been launched for sale by public tender by the British government’s Foreign & Commonwealth Office. It has carved out two freehold land plots from the garden land for buyers with deep pockets interested in securing some of the plummiest land in Singapore.

The indicative price for Plot A, which is about 18,620 sq ft and comes with about 36m of Nassim Road frontage, is $40.964 million, or $2,200 per sq ft (psf). The guide price for Plot B, which is about 15,634 sq ft and has a frontage of about 8m in Nassim Road, is $31.268 million or $2,000 psf.

A freehold corner shophouse at 8/8A Sixth Avenue sits on 2,451 sq ft of land, with a total gross floor area of 2,519 sq ft. It has dual-building frontages with high visibility, and comes with approval for F&B use for its ground floor space. It is now fully tenanted and enjoys strong rental income stream. The expression-of-interest exercise closes on Jan 12 at 3pm.

Jalan Besar Plaza put up for en bloc sale, with a S$390 million price tag (CNA, 23 November 2015)

Jalan Besar Plaza has been put up for collective sale for an estimated sale price of S$390,000,000, announced on Monday (Nov 23). The estimated sale price comes up to S$2,451 per square foot for the 35-year-old commercial and residential building. The 53,043 sq ft building is zoned under Commercial and Residential with a plot ratio of 3.0, under the 2014 Master Plan.

Freehold building in CBD up for sale (ST, 23 November 2015)

Tower Fifteen at 15 Hoe Chiang Road is a 29-storey office tower, which includes an annex three-storey hotel podium. The building has a site area of 39,337 sq ft and a current gross floor area of 253,453 sq ft, which comprises office and hotel space. The total existing net lettable area of the building is some 210,268 sq ft. Based on the Master Plan 2014, the site is zoned “commercial” with a plot ratio of 5.6 and a building height of up to 35 storeys. It is within walking distance of Tanjong Pagar MRT station while the future Cantonment MRT station under the full loop Circle Line will be located across the road. Potential buyers have up to Jan 27 to register their interest.

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