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Francine Higgins
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1 Property Club Singapore REPORT Report on Mixed Development Projects (2014) Table of Contents Definition and Regulations... 2 Increasing Popularity... 2 Pros and Cons... 3 Recent Market Changes... 3 List of Mixed Development Projects... 5 City Gate... 8 General Information... 8 Selling Prices... 9 Location Map Comments The Citron General Information Selling Prices Location Map Comments Copyrighted Material Personal Copy - Please do not circulate Page 1

2 Definition and Regulations According to URA (Urban Redevelopment Authority), mixed development are areas used mainly for mixed residential and commercial purposes, including shopping, office and residential. Building of hotels may be allowed but is subjected to evaluation. Two examples are Dorsett and Duo. There are rules from URA governing mixed development areas: 1. Commercial areas shall not be located above residential areas. 2. The minimum quantum for commercial and related uses shall be determined by the competent authority with regard to the locality concerned. 3. The commercial quantum shall not, unless otherwise allowed by the competent authority, exceed 40 percent of the maximum allowable floor area. Increasing Popularity Square Foot Research mentions in an earlier report that there is a pick-up of interest in the commercial units in mixed development projects. A constant supply of patrons from the residential units in the same complex promises good rental for highly-sought after tenants such as supermarkets, restaurants and franchise chains. In the past, mixed-use residential properties were not very popular among home buyers. Traditionally, Singaporeans prefer to buy private homes in developments purely reserved for residential use. Buyers with budget like to look for exclusivity in condominiums. However, buyers are becoming more receptive of mixed-development residential projects for the convenience of shopping for everything under one roof. A common design can be one or a few residential blocks built on top of a single-level or multi-storey shopping mall. In fact, some mixed developments have gained their prestige by positioning themselves as the icon of a prime district, especially when they are big projects comprising residential units, commercial shops, A-class offices and hotels. Duo, Clermont and Marina One are good examples. Copyrighted Material Personal Copy - Please do not circulate Page 2

3 Pros and Cons Pros Convenience of access to daily necessities Shortening of travel time and distance to shops and eateries Ideal for tenants who are non-drivers looking for easy access to amenities A plus for public transport commuters, especially if the project is built above a train station or a bus interchange Cons Loss of sense of exclusivity perceived in upscale residential projects Heavy traffic especially during weekends and festive seasons Increased security concerns when commercial and residential units are sharing the same or a nearby entrance or lift Difficulty in obtaining majority consensus in a collective sale since shop owners have more shares in a mixed development Recent Market Changes Mixed development projects were selling like hot cakes between 2011 and Below are some successful cases: 1. Residential units in Vibes at East Coast were sold out in four months time in mid-2011 even after adjusting the selling prices upwards. 2. Seventy percent of units at Katong Regency were reserved when the project was launched in April The developer UOL enjoyed a healthy pre-tax margin of 40 percent. 3. In June 2013, 142 units of KAP at King Albert Park were sold out in two weeks time at an average price of $1,705 psf. 4. In October 2013, 124 of 146 strata retail units in Junction Nine were sold during the first month of launch. 5. A long queue of eager buyers at the sales gallery snapped up 470 of 660 units in Duo within three days of launch in November Copyrighted Material Personal Copy - Please do not circulate Page 3

4 However, there is a reversal of fate for mixed development projects since 2014 when the impacts of TDSR and other cooling measures are fully felt in the market. 1. Sales in projects like City Gate, Clermont, Hillion and The Venue are slow. 2. Many projects only managed to move one to three units (or even none) in the whole month of July 2014, despite offering discounts or cash rebates to buyers. 3. Developers of new projects like One Marina and South Beach keep bidding time to find a better time to launch their mixed development project. Copyrighted Material Personal Copy - Please do not circulate Page 4

5 List of Mixed Development Projects The table below shows a total of 28 mixed development projects launched in recent years and are ready for occupation in the next five years. Table: Mixed development projects ready for occupation in 2015 to 2019 Project Name Street Name Developer Former Building Locality District Tenure No. of Storeys Site Area (sq ft) Commercial Units Residential Units Residential Launch Price ($psf) Launch Date Expected TOP Balestier Road Quest Homes Pte Ltd (Tong Aik) n.a. RCR 12 FH 12 11, ,470 Mar 2014 Dec 2017 City Gate 371 Beach Road Bayfront Ventures Pte Ltd (Fragrance Group and World Class Land) Keypoint RCR 7 99-year 30 78, ,800 Jul 2014 Oct 2019 Clermont Residence 3 Wallich Street Belmeth Pte Ltd/Guston Pte Ltd/Perfect Eagle Pte Ltd (GuocoLand Ltd) n.a. CCR 1 99-year ,709 n.a ,050 Dec Dorsett Duo Floraview Hillion 333 New Bridge Road 1, 3 Fraser Street Ang Mo Kio Street 66 8, 10, 12 Jelebu Road Tang Suites Pte Ltd n.a. RCR 2 99-year 6 Ophir-Rochor Residential Pte Ltd (Malyasian Khazanah and Singapore Temasek Holdings) n.a. CCR 7 99-year 49 Oxley YCK Pte Ltd n.a. OCR 28 FH 4 Sim Lian JV (BP Retail) Pte Ltd/Sim Lian JV (BP) Pte Ltd n.a. OCR year 23 46, ,270 61, ,000 n.a > ,800 2,000 1,300 1,300 Aug 2010 Q Nov 2013 Dec 2017 Jun 2014 Dec 2018 Mar 2013 Sep 2018 Copyrighted Material Personal Copy - Please do not circulate Page 5

6 Project Name Street Name Developer Kallang Riverside Kap Katong Regency Kensington Square Marina One Midtown NeWest Nine North Park Novena Regency 51 Kampong Bugis 9, 11 King Albert Park 13, 15, 17 Tanjong Katong Road 2 Jalan Lokam 21, 23 Marina Way 1187 Upper Serangoon Road Singapore Johore Express Pte Ltd Oxley Sanctuary Pte Ltd UOL Property Investments Pte Ltd/UOL Residential Development Pte Ltd Kensington Village Pte Ltd (Fragrance Group and World Class Land) M+S Pte Ltd (Malyasian Khazanah and Singapore Temasek Holdings) Oxley-Lian Beng Pte Ltd 1 West Coast Drive Oxley Viva Pte Ltd 18 Yishun Avenue 9 Yishun Central 1 275, 277, 279 Thomson Road CEL-Yishun (Commercial) Pte Ltd/CEL-Yishun (Residential) Pte Ltd North Gem Development Pte Ltd/FC North Gem Trustee Pte Ltd (Fraser Centerpoint Ltd) Fragrance Realty Pte Ltd (Fragrance Group Ltd) Former Building Singapore Johore Factories Building King Albert Park Lion City Hotel Tai Keng Court Locality District Tenure No. of Storeys RCR 12 FH 30 RCR 21 FH 7 RCR 14 FH 16 OCR 19 FH 5 n.a. CCR 1 99-year 34 Hougang Plaza Hong Leong Garden Shopping Centre OCR year 12 RCR year n.a. OCR year 14 n.a. OCR year 10 Novena Ville 12 CCR 11 FH 5 Site Area (sq ft) 74,523 59, , , ,490 57, ,000 95, ,234 52,675 Commercial Units Residential Units Residential Launch Price ($psf) Launch Date Expected TOP ,130 Jun 2014 Dec n.a n.a ,700 1,660 1,400 2,600 1,400 1,350 1,070 May 2013 Dec 2018 Apr 2012 Dec 2015 Sep 2013 Sep TBC TBC ,300 Nov 2017 Aug 2018 May 2013 Dec 2018 May 2013 Dec 2018 Oct 2013 Jun 2017 Apr 2013 mid Aug 2017 Copyrighted Material Personal Copy - Please do not circulate Page 6

7 Project Name Street Name Developer Former Building Locality District Tenure No. of Storeys Site Area (sq ft) Commercial Units Residential Units Residential Launch Price ($psf) Launch Date Expected TOP OKIO One Dusun Tanjong Pagar Pavilion Square South Beach The Citron The Oxley - The Venue East Coast 262 Balestier Road Tiara Land Pte Ltd n.a. RCR 12 FH 18 1 Jalan Dusun LVND Homes Pte Ltd (Nobel Design Holdings, 2E Capital and Lian Huat Group) n.a. RCR 12 FH Kee Seng Street Heeton Holdings Ltd n.a. RCR 2 FH Geylang Road 38 Beach Road 1 Marne Road Pollux Treasures Pte. Ltd. South Beach Consortium Pte Ltd (City Developments Ltd and IOI Group) Goodland Assets Pte Ltd (The Goodland Group) n.a. RCR 14 FH 5 n.a. CCR 7 99-year 23 n.a. RCR 8 FH 6 71, 73 Oxley Rise Oxley Rise Pte Ltd n.a. CCR 9 FH 10 Tai Thong Crescent 308 Telok Kurau Road Crescent View Developments Pte Ltd (City Development Limited and Hong Leong Holdings) n.a. RCR year 18 Oxley Module Pte Ltd n.a. RCR 15 FH 5 22,285 34,227 14,781 7,430 34,959 18,303 25,630 88,268 25, n.a ,650 1,540 2,400 1,500 3,000 1,500 2,400 1,450 1,340 Sep 2011 Nov 2015 Aug 2012 Dec 2017 Sep 2013 Apr 2013 TBC Mar 2018 Mar /20 16 Aug 2014 Dec 2019 Jun 2014 Dec 2019 Oct 2013 Sep 2017 May 2011 Dec 2015 Balestier Watertown 520 Balestier Road Punggol Central Techkon Commercial Pte Ltd Emerald Star Pte Ltd/FC Retail Trustee Pte Ltd (Far East, Frasers Centrepoint and Sekisui House) Leong On Building RCR 12 FH 12 n.a. OCR year 14 22, , n.a ,600 1,180 Jul 2014 Dec 2017 Feb 2012 Dec 2017 Copyrighted Material Personal Copy - Please do not circulate Page 7

City Gate General Information Location : 371 Beach Road District : 07 (Rest of Central Region) Developer : Bayfront Ventures Pte Ltd (Fragrance Group and World Class Land) Tenure : 99-year Leasehold

8 City Gate General Information Location : 371 Beach Road District : 07 (Rest of Central Region) Developer : Bayfront Ventures Pte Ltd (Fragrance Group and World Class Land) Tenure : 99-year Leasehold from 25 Apr 2014 Expected TOP : 31 Oct 2019 Launch Date : Jul 2014 Launch Price : S$1,800 psf Units : Two 30-storey blocks with 181 shops and 311 residential units Unit Type No. of Units Area (sq ft) 1-bedroom bedroom bedroom dual-key bedroom dual-key bedroom penthouse bedroom penthouse ,464 3-bedroom penthouse 3 1,604 1,819 Copyrighted Material Personal Copy - Please do not circulate Page 8

9 Selling Prices Below are the recent caveats lodged published by URA: Price ($) Area (Sqft) Floor Level Price ($ psf) Date 798, to 15 1,853 Aug , to 15 1,881 Aug , to 10 1,826 Aug , to 20 1,923 Aug , to 15 1,828 Aug , to 20 1,968 Aug , to 25 1,997 Aug-14 1,011, to 15 1,806 Aug-14 1,046, to 20 1,869 Aug-14 1,103, to 25 1,934 Aug , to 10 1,725 Aug-14 1,179, to 10 1,739 Aug-14 1,211, to 15 1,786 Aug-14 1,203, to 15 1,774 Aug-14 1,214, to 15 1,763 Aug-14 1,182, to 10 1,716 Jul-14 1,219, to 10 1,743 Aug-14 1,235, to 10 1,766 Aug-14 1,355, to 25 1,937 Aug-14 1,302, to 15 1,833 Aug-14 1,555, to 15 1,720 Aug-14 1,659, to 20 1,813 Aug-14 1,560, to 10 1,705 Aug-14 1,650, to 15 1,803 Aug-14 Average Price psf 1,821 Copyrighted Material Personal Copy - Please do not circulate Page 9

Below are the prices quoted by the marketing agent at the sales gallery on August 27, 2014: Type Unit No. Price ($) Area (Sqft) Price ($psf) 1BR #15-01 822,000 431 1,907.

93 Location Map Comments City Gate is conveniently connected to the Nicoll Highway MRT station through an overhead bridge.

10 Below are the prices quoted by the marketing agent at the sales gallery on August 27, 2014: Type Unit No. Price ($) Area (Sqft) Price ($psf) 1BR # , , BR # , , DK # ,262, , DK # ,251, , DK # ,614, , Location Map Comments City Gate is conveniently connected to the Nicoll Highway MRT station through an overhead bridge. It is surrounded by conservation shophouses, Sultan Plaza, Textile Centre, The Concourse and Golden Mile. While Duo was launched at an average selling price of $2,000 psf in November last year, units at City Gate are deliberately priced lower at $1,800 psf to attract buyers. Copyrighted Material Personal Copy - Please do not circulate Page 10

The 188 shops located on B1, 1 st and 2 nd storey are marketing between $3,600 to $4,200 psf. The foodcourt was bought by a party from China at $18 million. Carpark is built on 3 rd to 6 th storey.

11 The 188 shops located on B1, 1 st and 2 nd storey are marketing between $3,600 to $4,200 psf. The foodcourt was bought by a party from China at $18 million. Carpark is built on 3 rd to 6 th storey. There are 311 residential units between 7 th and 30 th storey marketing between $1,700 to $2,00 psf. The onsite marketing agent claimed that half of the units have been sold by the end of August. 1. Site Plan The best facing units are 03 and 04. If buyers don t mind the traffic at Nicoll Highway, the southeast facing balconies will enjoy an open view of Kallang Basin and Tanjong Rhu. For unit 05 and 06, depending on the level, the view of the units may be blocked by the Concourse and high-rise condominium Skyline. Copyrighted Material Personal Copy - Please do not circulate Page 11

The layout City Gate offers four types of layout: 1-bedroom, 2-bedroom, 2-bedroom dual-key and 3- bedroom dual-key units.

12 Unit 07, 08, 09, 10 and 11 will oversee rows of low-rise shophouses and have a nice city view. However, the units have west sun. Avoid unit 12 since the whole stack of units face a mosque and the master bedrooms are too close to the two old buildings Sultan Plaza and Textile Centre. 2. The layout City Gate offers four types of layout: 1-bedroom, 2-bedroom, 2-bedroom dual-key and 3- bedroom dual-key units. The estimated maintenance fees for 1, 2 and 3 bedroom units are estimated to be $270, $345 and $420 respectively. Developers like to say that the selling point of dual-key units is the ability of buyers to own two units while paying only one stamp duty. This is based on the assumption that the owners will rent the unit out to two tenants, with each holding the key to their own sub-unit. The marketing agent claimed that the 2- bedroom dual-key units can fetch a total rent of $4,000 (with $2,000 from each tenant) while the 3-bedroom dual-key units can be tenanted at a total of $6,000 ($4,000 from the 2- bedroom and $2,000 from the studio). The studio unit in the 2-bedroom and 3- bedroom dual-key unit is a long narrow shape with a big balcony. The usable area of the studio looks no more than 200 sq ft which is less than half the size of a hotel room. Furniture need to be either built-in or customized by an interior designer and contractor. After putting a double bed in the bedroom, there is no space left. It is difficult to imagine how a Caucasian tenant can move around in this tiny cell. Copyrighted Material Personal Copy - Please do not circulate Page 12

3-metre for the developer to build a furniture deck (optional) for one of the bedrooms. This is basically a loft concept with a flight of wooden staircases going up to the upper deck.

13 3. The finishing One bedroom units will come with all parquet flooring and a hotel-style mini fridge in the open kitchen. For two and three bedroom units, buyers will find 3 x 1 marble flooring for the halls and parquet flooring for the bedrooms. The units has a high ceiling height of 3.3-metre for the developer to build a furniture deck (optional) for one of the bedrooms. This is basically a loft concept with a flight of wooden staircases going up to the upper deck. A mattress can be placed on top to be used as a bed while the lower deck can be a study area or a wardrobe. Young children may find this fun but most adults may rather sleeping in a normal bed. Copyrighted Material Personal Copy - Please do not circulate Page 13

The Citron General Information Location : 1 Marne Road District : 08 (Rest of Central Region) Developer : Goodland Assets Pte Ltd (The Goodland Group) Tenure : Freehold Expected TOP : 31 Dec 2019

14 The Citron General Information Location : 1 Marne Road District : 08 (Rest of Central Region) Developer : Goodland Assets Pte Ltd (The Goodland Group) Tenure : Freehold Expected TOP : 31 Dec 2019 Launch Date : Aug 2014 Launch Price : S$1,500 psf Units : 6-storey block with 36 shops and 54 residential units Unit Type No. of Units Area (sq ft) 1-bedroom 8 388/431 2-bedroom bedroom dual-key /731/829 3-bedroom 6 818/915/1119 Shop Copyrighted Material Personal Copy - Please do not circulate Page 14

Selling Prices Below are the recent caveats lodged published by URA: Price ($) Area (Sqft) Floor Level Price ($psf) Date 755,700 431 01 to 05 1,755 Aug-14 1,027,600 657 01 to 05 1,565 Aug-14

15 Selling Prices Below are the recent caveats lodged published by URA: Price ($) Area (Sqft) Floor Level Price ($psf) Date 755, to 05 1,755 Aug-14 1,027, to 05 1,565 Aug-14 1,037, to 05 1,555 Aug-14 The developer has chosen a few star buy units for buyers visiting the sales gallery. Below are the prices of these units quoted by the onsite marketing agent on September 3, 2014: Type Unit No. Price ($) Area (Sqft) Price ($psf) 2-BR # ,031, ,546 2-BR # ,044, ,566 2-BR # ,104, ,509 2-DK # ,150, ,595 Location Map Copyrighted Material Personal Copy - Please do not circulate Page 15

Comments Located in Little India, the Citron is only 3 minutes walk to Farrer Park MRT. It is also a stone's throw away from City Square Mall and Mustafa Centre.

16 Comments Located in Little India, the Citron is only 3 minutes walk to Farrer Park MRT. It is also a stone's throw away from City Square Mall and Mustafa Centre. City Square Mall is a quiet shopping mall, especially on weekdays, due to the lack of HDB estates and offices in the surrounding areas. However, City Square are popular with tenants, especially single expatriates. A 560-sqft studio can be rented out at $3,400 per month. Its proximity to town, an MRT station and a shopping mall are the plus points. The Citron is a 90-unit building comprising of 36 shops on the ground floor and 54 apartments from 2 nd to 6 th storey. Shops are marketing at $2,000 to $2,400 psf while residential units are selling at an average price of $1,500 to $1,600 psf. All 1-bedrooms have been sold out. For security, residents can use their access cards to go up to their units using the two resident lifts. However, residents and shoppers driving are using the same entrance. There are only 60 carpark lots and 2 handicap carpark lots. Visitors must be prepared to park on the roadside or at the nearby City Square Mall. 1. Site Plan Copyrighted Material Personal Copy - Please do not circulate Page 16

17 The Citron is a low-rise 6-storey building. Except the bedrooms in units 10 and 11 facing Petain Road may be blocked by the taller blocks of Kerrisdale, all units are surrounded by low-rise developments in the area. Unit 01, 02, 05, 06, 07 and 11 can enjoy a more open view, with a southeast facing to avoid the west sun. 2. The layout The Citron offer four types of layout: 1- bedroom, 2-bedroom, 2-bedroom dual-key and 3- bedroom units. In a smaller development, maintenance fees are expected to be higher with 2-bedroom units charging at around $400 per month. All layout plans of the residential units are squarish in shape. With the absence of balcony, bay window or planted box, it maximizes the usable area of the apartments. Similar to other new condominium projects, the long shape of the combined living and dining area means that only a squarish or rectangular-shaped dining table (not a round one) is possible in the dining room. One and two-bedroom units have open kitchens. For the more spacious 3-bedroom units (818 sq ft or 915 sq ft with no PES), there is an enclosed kitchen. There is also a master bedroom with decent size for the owner to put a king-size bed there. 3. The finishing There is no sales brochure for visitors at the sales gallery. It is difficult for potential buyers to get the details of all the building materials, fixtures, etc. for the project. Buyers can only hope that what-you-see-is-what-you-get at the showflat. And hopefully upon TOP, there will be similar compressed marble flooring for the halls and timber strip flooring for the bedrooms upon as shown in the showflat. Copyrighted Material Personal Copy - Please do not circulate Page 17

PROPERTY ANALYSIS REPORT - SUMMARY. #13-09, Pebble Bay, 132 Tanjong Rhu Road, (S)

PROPERTY ANALYSIS REPORT - SUMMARY. #13-09, Pebble Bay, 132 Tanjong Rhu Road, (S) - SUMMARY This report is designed to help buyers, sellers and industry experts to make better informed property decisions. It includes detailed analysis of the property, sales prices, rental prices, investment