What will en bloc millionaires buy next?

Transcription

1 PROPERTY PERSONALISED MCI (P) 136/08/2017 PPS 1519/09/2012 (022805) Visit EdgeProp.sg to nd properties, research market trends and read the latest news The week of December 25, 2017 ISSUE Industry Watch Residential outlook for 2018 EP2 Market Trends Collective sale momentum to continue next year EP3 Offshore Turnaround in prime Central London rents EP7 What will en bloc millionaires buy next? SAMUEL ISAAC CHUA/THE EDGE SINGAPORE From Amber Park in the East to Normanton Park in the West, new collective sale beneficiaries are assessing the property market and considering the investment options open to them. See our Cover Story on Pages 10 and 11. View of the prime Holland Road area in District 10

2 EP2 EDGEPROP DECEMBER 25, 2017 INDUSTRY WATCH EDITORIAL EDITOR Cecilia Chow HEAD OF RESEARCH Feily Sofi an DEPUTY EDITOR Lin Zhiqin WRITERS Angela Teo, Timothy Tay DIGITAL WRITER Fiona Ho COPY-EDITING DESK Elaine Lim, Evelyn Tung, Chew Ru Ju, Shanthi Murugiah PHOTO EDITOR Samuel Isaac Chua PHOTOGRAPHER Albert Chua EDITORIAL COORDINATOR Yen Tan DESIGN DESK Tan Siew Ching, Christine Ong, Monica Lim, Tun Mohd Zafi an Mohd Za abah ADVERTISING + MARKETING ADVERTISING SALES DIRECTOR, COMMERCIAL OPERATIONS Cowie Tan ASSOCIATE ACCOUNT DIRECTOR Diana Lim SENIOR ACCOUNT MANAGER Priscilla Wong ACCOUNT MANAGER James Chua CIRCULATION DIRECTOR Victor The EXECUTIVE Malliga Muthusamy, Ashikin Kader CORPORATE CHIEF EXECUTIVE OFFICER Bernard Tong PUBLISHER The Edge Property Pte Ltd 150 Cecil Street #13-00 Singapore Tel: (65) Fax: (65) PRINTER KHL Printing Co Pte Ltd 57 Loyang Drive Singapore Tel: (65) Fax: (65) PERMISSION AND REPRINTS Material in The Edge Property may not be reproduced in any form without the written permission of the publisher We welcome your comments and criticism: propertyeditor.sg@ bizedge.com Pseudonyms are allowed but please state your full name, address and contact number for us to verify. BY CECILIA CHOW Residential outlook for 2018 What will the new year bring in terms of new launches? Local property consultants offer insights. City Developments is expected to launch the 190-unit South Beach Residences next year Most property consultants are expecting new-home sales to ring in at roughly 11,000 units for This is a 38% increase from the 7,972 units registered in 2016, says Tricia Song, Colliers International head of research for Singapore. This year, 18 private residential projects with an estimated 6,000 units were launched for sale, says Ong Teck Hui, JLL national director of research. He foresees about 20 projects being launched next year, yielding 8,000 to 9,000 units. Ong s forecast for newhome sales in 2018 is 11,000 to 12,000 units. Colliers Song forecasts that new-home sales in 2018 will hit 12,600 units. We expect new-home sales to remain healthy next year amid the more positive economic outlook, rising market confidence and pent-up demand, she says. Given the spate of collective sales since 2016, Song expects a bumper crop of new launches in late 2018 to Taking into account both collective sale sites and land sold via public tenders, including projects waiting on the sidelines such as the New Futura, South Beach Residences and 8 St Thomas, Song estimates there will be 25 new private residential project launches next year, yielding a total of 15,000 to 16,000 new units. Her assumption is that only collective sales transacted before August 2017 will be in time for launch in 2018 (see tables). Resales to exceed new-home sales Both Colliers and JLL have similar projections for resale volume: 13,000 to 13,500 units in 2017, a jump of 55% to 71% compared with the range of 7,901 to 8,406 units in Resales include developers sale of balance units in completed projects such as Amber Skye, Gramercy Park, Leedon Residence and Marine Blue. The projects launched a few years ago will benefit, as the unsold stock is likely to be compressed further, notes Desmond Sim, head of research for CBRE Singapore and Southeast Asia. The last major launch of 2017 was Parc Botannia. Analysts expect the year to end with 11,000 new homes sold. In a typical year, the transaction volume of newhome sales tends to be on a par with that of resales, observes Alan Cheong, head of research for Savills Singapore. The fact that resales far exceed newhome sales in 2017 is a reflection of a dearth of new launches as a result of a moderation in the supply of new sites under the government land sales (GLS) programme in recent years, he says. The government releases sites for public tender every six months through the GLS programme, offering sites for sale on both the Confirmed and Reserve Lists. From 2H2010 to 2H2013, the government released 23 to 30 sites with the potential to yield 14,000 to 14,300 housing units. From 2H2015 to 2H2017, the number of new sites released through the GLS programme was reduced to 12 to 15, with the capacity to produce 7,420 to 8,125 units (see charts). The tapering of supply was in reaction to the slowdown in housing demand, owing to the seven rounds of property cooling measures and the impact of the total debt servicing ratio (TDSR) loan framework. Developers that purchased sites from 1H2010 to 2H2013 have already launched and sold their projects and received their sales proceeds, says Savills Cheong. With the emergence of new developers and CONTINUES ON PAGE EP16 SING HOLDINGS SAMUEL ISAAC CHUA/THE EDGE SINGAPORE

3 EDGEPROP DECEMBER 25, 2017 EP3 MARKET TRENDS Collective sale momentum to continue in 2018 BY CECILIA CHOW & ANGELA TEO Even as the year draws to a close, sites are still being launched for collective sale. On Dec 19, the 76-unit Casa Meyfort, which occupies a prime freehold site on Meyer Road, was launched for tender. The reserve price for the 85,249 sq ft site, which has a plot ratio of 2.8, was set at $340 million ($1,616 psf per plot ratio). Edmund Tie & Co is the marketing agent. Savills Singapore plans to launch The Wilshire for collective sale at end-december. The 20-unit condo sits on a 39,130 sq ft, freehold site on Farrer Road in prime District 10 and has a plot ratio of 1.6. It can be redeveloped into a 12-storey condominium with gross floor area of about 64,310 sq ft. In early January, Savills will be launching Sixth Avenue Centre for sale. The existing development comprises seven strata shop units and 18 apartments. The freehold mixed-use complex is located on Bukit Timah Road, just 150m from the Sixth Avenue MRT station. It can be redeveloped into a new project with a 40% commercial component and 60% residential component. Collective sale sites near future MRT stations on the Thomson-East Coast Line present exciting redevelopment potential, which is likely to appeal to both developers and future homebuyers, says Colliers Tang Small, freehold sites to dominate Next year, smaller freehold sites are likely to dominate the en bloc scene, says Alan Cheong, head of research for Savills Singapore. He reckons the majority of en bloc deals done next year are likely to be less than $300 million, with just a few reaching the $500 million-to-$600 million range. In addition to The Wilshire and Sixth Avenue Centre, Savills is also the appointed marketing agent for two other freehold sites, which have garnered about 70% consensus to proceed with a collective sale, says Suzie Mok, Savills Singapore senior director of investment sales. They are the 34-unit Minbu Villas on Minbu Road in prime District 11 and the 48-unit Hollandia on Holland Road in prime District 10. Knight Frank is also handling several freehold projects that are at an advanced stage in the collective sale process: the 89-unit Kemaman Point in Balestier; 210-unit Goodluck Garden on Toh Tuck Road; 114-unit Dunearn Gardens on Dunearn Road; and 200-unit Windy Heights on Jalan Daud in the Kembangan area. SAMUEL ISAAC CHUA/THE EDGE SINGAPORE The queue of collective sale hopefuls continues to lengthen. There are 80 to 90 at various stages in the process. I won t be surprised if there are at least 100 by January 2018, says Ian Loh, Knight Frank Singapore exe cutive director and head of investment and capital markets. En bloc market still main source of sites With only six residential sites available on the Confirmed List of the 1H2018 government land sales programme and developers still trying to secure sites to capitalise on the market recovery, the en bloc market will remain the main source of land supply next year, says Ong Teck Hui, JLL national director of research and consultancy. So far this year, 33 sites with a total value of $8.63 billion have been sold en bloc. If only collective sales were included, the figure would be $7.6 billion (see chart). We could still see a strong volume of en bloc sales in 2018, but the sales volume could be affected by a mismatch in pricing expectations between buyer and seller, leading to failed transactions, says Ong. Sites near MRT stations on Thomson- East Coast Line remain popular A key trend that will influence the collective sale market in 2018 will be the ongoing efforts to enhance the public transport system, says CONTINUES ON PAGE EP17 En bloc deals so far this year NO PROPERTY NAME LOCATION TENURE BUYER(S) NO OF LAND AREA PLOT GFA PRICE PRICE PSF PURCHASE MARKETING UNITS (SQ FT) RATIO (SQ FT) ($ MIL) PPR ($) DATE AGENT 1 45 Amber Road Amber Road Freehold UOL Group NA 69, , ,063 May NA 2 One Tree Hill Gardens One Tree Hill Freehold Lum Chang Group 13 39,063 NA NA 65 1,664 May Knight Frank 3 Rio Casa Hougang Avenue 7 (HUDC) 99-year Oxley-led consortium , ,109, May Knight Frank 4 Goh & Goh Building Upper Bukit Timah Road Freehold BBR Holdings 14 30, , ,235 May JLL 5 1 Draycott Park 1 Draycott Park Freehold SDB (Selangor Dredging) 8 17, , ,474 May Savills 6 Eunosville Sims Avenue (HUDC) 99-year MCL Land , ,054, June OrangeTee 7 Lotus at Pasir Panjang 231 Pasir Panjang Road 102-year Oxley Holdings , , July JLL/C&W 8 Serangoon Ville Serangoon North Avenue 1 (HUDC) 99-year Oxley-led consortium , , July ERA 9 The Albracca Meyer Road Freehold Sustained Land 11 23, , ,409 July JLL 10 Tampines Court Tampines Street 11 (HUDC) 99-year Sim Lian Group , ,966, August Huttons 11 Sloane Court Hotel Balmoral Road Freehold Tiong Seng Holdings NA 38, , ,616 August ET&Co & Ocean Sky Int l 12 Toho Green Yio Chu Kang Road 99-year Oxley Holdings 6 14, , ,400 August NA 13 Sun Rosier How Sun Drive, off Bartley Road Freehold SingHaiyi Group and related parties , , ,325 September Huttons 14 Jervois Gardens Jervois Road Freehold SC Global Developments 17 34, , ,511 September Colliers 15 No 1 to 1E Seraya Upper Thomson Road Freehold TEE Land 6 24, , September NA Crescent 16 Nanak Mansions Meyer Road Freehold UOL Group and Kheng Leong Co , , ,429 September JLL 17 Amber Park Amber Gardens Freehold City Developments and , , ,515 October JLL Hong Realty 18 Normanton Park Normanton Park, off AYE (HUDC) 99-year Kingsford Development , ,388, October Knight Frank 19 Florence Regency Hougang Avenue 2 (HUDC) 99-year Logan Property (Singapore) , ,098, October JLL 20 Changi Garden Upper Changi Road North Freehold Chip Eng Seng Corp , , October ET&Co 21 Dunearn Court Dunearn Road Freehold Roxy-Pacific Holdings 12 19, , ,371 October Knight Frank 22 Casa Contendere Gilstead Road Freehold TEE Land 11 37, , ,638 November NA 23 Mayfair Gardens Rifle Range Road/Dunearn Road 99-year Oxley Holdings , , ,244 November Knight Frank 24 Lodge 77 Upper East Coast Road Freehold TKC 11 13, , November Knight Frank 25 How Sun Park How Sun Road Freehold SingHaiyi Group and related parties 20 54, , ,092 November Teakhwa 26 Royalville Bukit Timah Road Freehold Allgreen Properties , , ,960 December ET&Co 27 Crystal Tower Ewe Boon Road Freehold Allgreen Properties 28 60, , ,840 December ET&Co 28 Jervois Green Jervois Road Freehold Spring Court owner-led consortium 8 26, , ,601 December Colliers to 51 Lorong Guillemard Road Freehold KSH Holdings, Lian Beng Group and 6 26, , December NA 24 Geylang Heeton Holdings 30 Apartment 8 Meyappa Chettiar Road, Freehold Oxley Holdings 8 9, , ,061 December NA off Upper Serangoon Road 31 Derby Court Derbyshire Road, off Thomson Road Freehold Roxy-Pacific Holdings 18 18, , ,390 December JLL 32 Parkway Mansion Amber Road Freehold Sustained Land-led consortium 32 38, , ,536 December Colliers 33 Vista Park South Buona Vista Road, 99-year Oxley Holdings , , ,096 December Teakhwa off Pasir Panjang Road MORGAN STANLEY SINGAPORE, VARIOUS PROPERTY CONSULTANTS *Updated as at Dec 20, 2017

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6 EP6 EDGEPROP DECEMBER 25, 2017 SPOTLIGHT Keppel Land confident of homebuyers interest BY LIN ZHIQIN One of the projects homebuyers can look forward to is the upcoming condominium at Serangoon Gardens that is slated to be launched in We are confident of the development s potential and interest from homebuyers, says Ng Ooi Hooi, president of Keppel Land Singapore. He expects the condo to be well-received as it is located in the established Serangoon Garden estate. Keppel Land, along with joint-venture partner Wing Tai Holdings, put in the top bid of $ million, or $965 psf per plot ratio, for the highly contested Government Land Sales (GLS) site located at Serangoon North Avenue 1 on July 27, which saw a total of 16 bids submitted. According to Keppel Land, the plan is to develop over 600 homes on the 1.7ha site, which has a 99-year lease. Families with children will appreciate its proximity to the reputable schools in the vicinity, says Ng. There is also a host of amenities in the area, including Chomp Chomp Food Centre, Serangoon Food Market, Serangoon Garden Country Club and retail mall NEX. There have also been few new condos launched in recent times in the vicinity, adds Ng. Another reason for Keppel Land s confidence could stem from the steady sales at its other projects. In 9M2017, a total of 300 units were sold at Keppel Land s projects such as Corals at Keppel Bay, Reflections at Keppel Bay, The Glades and Highline Residences. All 726 units at The Glades have been sold. The condo, which is billed as a contemporary eco-resort, won the Landscape Excellence Award at the inaugural EdgeProp Singapore Excellence Awards ceremony on Oct 23. The Glades, which won the Landscape Excellence Award, is fully sold Keppel Land also walked away with the Top Developer Award while Corals at Keppel Bay emerged as the People s Choice from the crowd of more than 30 nominated developments. Highline Residences is designed by Mok Wei Wei of W Architects, a President s Design Award laureate. The project located close to the Tiong Bahru MRT station has seen strong demand, with sales in October ringing in at 24 units and another 21 units sold in November, according to URA data on developer sales. Keppel Land says there are about 50 units still available at the 500-unit Highline Residences, as at mid-december. Investors who want to diversify overseas can also look forward to the launch of Cove Residences, which is Phase 3 of Empire City, a project in Vietnam s Ho Chi Minh City by a consortium comprising Keppel Land, private URA equity firm Gaw Capital Partners, and Vietnamese developers Tien Phuoc JSC and Tran Thai Real Estate Co. According to Keppel Land, 156 apartments at Cove Residences will be launched in 1H2018. Empire City is a mixed-use project comprising residential, retail and office components that sits on a prime 14.6ha waterfront site in the Thu Thiem New Urban Area in HCMC. Phase 1 of Empire City, the 510-unit Linden Residences, was launched in December 2016 and Phase 2, comprising the 478- unit Tilia Residences, was launched in July According to JLL Vietnam, both phases have seen strong demand, with almost all the units sold within the first few weeks of launch. According to Ng, Keppel Land sees Vietnam as a growth market. On Dec 18, the company entered into agreements to acquire two prime sites in HCMC that will yield about 1,550 homes. The projects, which have a total development cost of US$297 million ($400 million) will add to the developer s pipeline of more than 20,000 homes in Vietnam. Keppel Land says it sold a total of 1,010 homes in Vietnam in 9M2017, a fourfold increase y-o-y. About 620 apartments at SSC, which is the first phase of Saigon Sports City, are also slated for launch in 1H2018. Another of Keppel Land s growth market is Indonesia, says Ng, where we are strengthening our presence in Greater Jakarta. The Riviera, Keppel Land s latest landed housing project located in Tangerang, was recently launched. Sales of our West Vista project have also been steady, adds Ng. Besides Singapore, Keppel Land s other core market is China, where it is focusing on five cities: Shanghai, Beijing, Tianjin, Chengdu and Wuxi. Our launch-ready units are mostly from Seasons Garden in the Sino-Singapore Tianjin Eco-City, as well as Waterfront Residences and Park Avenue Heights in Wuxi, says Ng. Keppel Land sold 3,790 homes across the globe in 9M2017, an 8% y-o-y increase. The total sales value also grew to $2 billion, compared with $1.6 billion in the same period in Being geographically diversified has served Keppel Land well, says Ng. We will continue to strengthen our presence [in our existing markets], while seizing opportunities in other emerging markets and gateway cities. In addition to the site at Serangoon, Keppel Land s landbank in Singapore includes two land plots of 28,759 sq m and 43,701 sq m beside Corals and Reflections at Keppel Bay. Ng says Keppel Land is also reviewing plans for Keppel Towers and Keppel Towers 2. The towers are located close to the Tanjong Pagar MRT station and have a total net lettable area of 39,958 sq m. They could be redeveloped into a mixed-use project to capitalise on the growing demand for city living and the transformation of the Tanjong Pagar area into a premium waterfront precinct, says Keppel Land. According to Ng, Keppel Land will continue to look for more land from the GLS sites and the private market. We remain focused on seeking sites with good value propositions and will grow our landbank only if there are good risk-adjusted returns, he says. Both in Singapore and overseas, we remain open to collaborations with like-minded partners who share our commitment in developing quality projects. E ALBERT CHUA/THE EDGE SINGAPORE SAMUEL ISAAC CHUA/THE EDGE SINGAPORE SAMUEL ISAAC CHUA/THE EDGE SINGAPORE The condo at Serangoon Gardens is slated to be launched in 2018 In 9M2017, a total of 300 units were sold at Keppel Land s projects, including Corals at Keppel Bay (left) and Reflections at Keppel Bay

7 EDGEPROP DECEMBER 25, 2017 EP7 OFFSHORE Turnaround in Prime Central London rents after 18-month slide BLOOMBERG E Average rents for apartments with two bedrooms or fewer in Prime Central London rose 5% y-o-y in October and another 3% in November BY LIN ZHIQIN Following 18 months of decline, average rents in Prime Central London s mainstream rental market, which comprises apartments with two bedrooms or fewer, grew 3% y-o-y in November to reach 573 ($1,036) a week. This follows the uptick in October, when rents rose 6.4% m-o-m and 5% y-o-y, and indicates the first signs of a turnaround, according to analysis by London Central Portfolio (LCP), a residential property adviser focusing on Prime Central London. According to LCP, apartments with two bedrooms or fewer represent 87% of the rental market in Prime Central London and the increase in November has brought rents back to the March 2016 level, before the Additional Rate Stamp Duty was introduced. The ARSD resulted in a surge in rental stock as owners who struggled to sell chose to lease their properties, says LCP. The trend has begun to reverse and the balance of supply and demand in the rental market has stabilised. Not only have we seen falling numbers of available rental units, we have seen increases in transactions in the sales market, says Naomi Heaton, CEO of LCP. The 9M2017 sales volume in Prime Central London reached 5,542, representing a 15% y-o-y increase. In terms of prices, data for London also points to stabilisation, says LCP. Prices rose 8.3% y-o-y in 3Q2017 after the volatility over the last two years. It is encouraging to see the market pick up, says Heaton. The return of higher-value buyers is also evidenced in Prime Central London, where LCP has seen a trebling of clients [buying homes] in prestigious areas such as Regent s Park and Knightsbridge. While rents grew across all sectors of Prime Central London, demand for smaller properties continues to be the strongest, says LCP. Rents for studios have seen the strongest growth over the past year. The average weekly rent grew 7% y-o-y in November to reach 350. Tenants are looking for smaller properties as they seek central locations offering an easy commute to work or university at affordable prices, says Heaton. This is driving demand for small units. Tenants also continue to prefer newly renovated properties, says LCP. Within its portfolio, LCP has observed a 6.4% increase in rents for leases inked for such properties over the last 12 months. In comparison, rents are up just 1.2% for renewals from existing tenants. Despite the growth in rents, there is still a mismatch in expectations between landlords and tenants, say LCP. Over the last three months, 44.2% of rental properties were let at a rent that is 5.7% lower on average than the landlords asking price. Landlords are pushing for higher rents as they seek to recoup the entry and running costs. However, tenants are still able to negotiate down current asking levels, says Heaton. If stock levels continue to decrease into 2018, we may well see this gap closing in the landlords favour as the tenants bargaining power diminishes. E

8 EP8 EDGEPROP DECEMBER 25, 2017 SPOTLIGHT UOL and Kheng Leong purchased Nanak Mansions for $201.1 million ($1,429 psf ppr) in September; it will be redeveloped into a 68-unit high-end condo PICTURES: JLL PICTURES: JLL UOL stays nimble BY CECILIA CHOW A year before the collective sale fever started raging, UOL Group and United Industrial Corp (UIC) quietly picked up Raintree Gardens, a privatised HUDC estate, for $334.2 million, or $797 psf per plot ratio (ppr). Then, in a private treaty in January 2017, they purchased 45 Amber Road, a 70,000 sq ft freehold site for $156 million ($1,063 psf ppr), from developer Sin Lai Huat. Fortunately, we bought these two pieces of land at relatively reasonable prices before intense competition drove land prices up, says Liam Wee Sin, deputy group CEO of UOL Group. At end-september, UOL Group purchased Nanak Mansions en bloc for $201.1 million ($1,429 psf ppr) in a joint venture with sister company Kheng Leong Co, the privately held property vehicle of the family of Wee Cho Yaw, former UOB chairman. Prices of subsequent collective sale sites in the prime District 15 neighbourhoods of Amber Road and Meyer Road have since risen. In early UOL will develop the former Raintree Gardens into a 728-unit private condo with a 20m riverfront October, Amber Park was sold for $906.7 million ($1,515 psf ppr), followed by the $ million ($1,536 psf ppr) sale of Parkway Mansion in mid-december. Disconnect between prices of land and private homes Each new en bloc sale or government land sale seems to have set the benchmark for the next tender, fuelling the escalating land prices, says Liam. He sees a disconnect between the prices of land and the end-product private homes. According to URA data, private-home prices showed an uptick of 0.7% in 3Q2017 after 15 consecutive quarters of price declines. Based on transacted prices of en bloc sites sold in prime District 15 alone, freehold land prices have soared 44.5% in terms of psf ppr over the last 12 months. Thus, Liam says, we will be more selective in bidding for sites with good attributes and where asking prices are reasonable. UOL has been buying en bloc sites over the past 20 years, starting with the one for Novena Suites in 1997, followed by the one for The Sunshine on Upper Serangoon Road and 1 Moulmein Rise in The latest acquisition was Nanak Mansions on Meyer Road. En bloc sites have been a great way to replenish our landbank and a source of freehold land, says Liam. Newton Suites is a redevelopment of an en bloc site, one of 21 purchased by UOL over the past 20 years UOL GROUP oping a 20-storey development with a total of 728 units, given its higher plot ratio of 2.8. WOHA has been appointed the architect for the project, which will capitalise on its serene surroundings and the 20m riverfront. It will be a scheme inspired by nature featuring sky gardens and lush landscaping, says Liam. WOHA was the architect behind UOL s other projects: five-star hotel Parkroyal on Pickering, Newton Suites and One Moulmein Rise, which are all award-winning projects. UOL has also engaged WOHA to design its new development at Nanak Mansions. Sitting on a prime freehold site of 109,631 sq ft off Meyer Road, the site will be redeveloped into a boutique 68-unit, high-end condo. Likewise, it will be a sustainable design with a focus on greenery, says Liam. Existing launches substantially sold The developer has also benefited from the pickup in both sentiment and buying activity in the residential market. Its 555-unit Riverbank at Fernvale, launched in February 2014, is fully sold and was completed in March this year. The 797-unit Botanique at Bartley, launched in March 2015, was 70% sold as at end-september, according to UOL s 3QFY2017 results announcement. It has since been ful- Liam: We will be more selective in bidding for sites with good attributes and where asking prices are reasonable THE EDGE SINGAPORE Launch of Amber 45, Raintree Gardens UOL plans to launch two projects next year: 45 Amber Road (Amber 45) in 1H2018 and the new development at Raintree Gardens in Potong Pasir in 2H2018. According to Liam, with a plot ratio of 2.1, the site at 45 Amber Road will be developed into a 21-storey, 139- unit residential tower. The freehold project will have full-fledged condo facilities, including a 50m swimming pool and tennis court. The project is designed by ADDP Architects, which was the architect for The Clement Canopy, UOL s condo project at Clementi Avenue 1, launched in February this year. Like The Clement Canopy, the new project at 45 Amber Road will not feature one-bedroom units; the smallest will be two-bedroom units. At Raintree Gardens, UOL is develly sold and is scheduled for completion by end At Principal Garden on Prince Charles Crescent, only three of a total of 663 units are available for sale. The project is a joint venture between UOL and Kheng Leong, and was launched in October Meanwhile, the 505-unit The Clement Canopy, a joint venture between UOL and UIC, was launched in February this year and is already 84% sold. All these projects such as Riverbank, Botanique at Bartley, Principal Garden and The Clement Canopy are 99-year leasehold condos developed on sites purchased in government land tenders. Roll-out of maiden London project Beyond Singapore, UOL is looking to launch its project in London called One Bishopsgate Plaza, a redevelopment of the former Heron Plaza, which was purchased in August The 42-storey One Bishopsgate Plaza will comprise 160 apartments and 236 hotel rooms branded Pan Pacific London. The key advantage is its location in the City of London, right next to Liverpool Station and linked to Crossrail with direct access to Heathrow Airport and Canary Wharf, says Liam. He adds that UOL is still confident about the UK market. In the micro-market of Bishopsgate, there s still scarcity in terms of both hotel rooms and apartments, he says. We believe housing demand will still be healthy. In Shanghai, UOL has a mixeduse development in the Changfeng Ecological Business Park called Park Eleven. It is a joint-venture project with Kheng Leong and UIC. The first phase of 168 units was launched in October 2016 and more than 90% was sold. UOL plans to launch the second phase next year. The development has 398 residential units and 4,000 sq m of retail space. In Singapore, Liam sees buying momentum continuing into But if developers are buying land at higher price points, they will be testing their products at higher prices, he says. So, we still have to wait and see how things pan out. E

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10 EP10 EDGEPROP DECEMBER 25, 2017 COVER STORY PICTURES: SAMUEL ISAAC CHUA/THE EDGE SINGAPORE Members of the Amber Park collective sale committee (from left): Eric Ang, Koh Piak Chang, Lim Lian Seng (chairman of the committee), Richard Lee and Haja Mohideen What will en bloc millionaires buy next? From Amber Park in the East to Normanton Park in the west, new collective sale beneficiaries are assessing the property market and considering the investment options open to them BY CECILIA CHOW Retired chartered surveyor and valuer Lim Lian Seng was chairman of the collective sale committee for the third time at the freehold Amber Park condominium when it was sold for $906.7 million ($1,515 psf per plot ratio) in October. The price paid by the top bidder joint venture partners City Developments and Hong Leong Holdings at the close of the tender reflected an 18% premium to the reserve price of $768 million. We didn t expect Amber Park to fetch such a premium, says Lim. Amber Park comprises 200 units, 192 of which are identical 1,744 sq ft, three-bedroom units and eight of which are double-storey, 3,789 sq ft penthouses. The reserve price was initially set at $3.2 million for the typical units, but there was great reluctance among the owners to sell. To make it more palatable, the reserve price was adjusted twice to $3.5 million and subsequently $3.7 million before it obtained the 80% consensus required for a collective sale. JLL was the appointed marketing agent for the Amber Park collective sale, launched at end-august, with the tender closing on Oct 3. Beyond expectation Lim recalls the moment when the collective sale committee members opened the first envelope at the close of the tender: It contained the top bid of $906.7 million. There was a collective gasp. We couldn t believe our eyes, he says. Top five residential en bloc dealmakers of 2017 PROPERTY NO OF SALES VALUE CONSULTANCY DEALS ($ BIL) JLL * Knight Frank Huttons Asia Edmund Tie & Co OrangeTee *Includes Pasir Panjang, which JLL marketed jointly with Cushman & Wakefield PROPERTY CONSULTANCIES REPORTED TRANSACTIONS For the owners of the three-bedroom units, the $906.7 million meant a payout of $4.376 million for each of them, 2.1 times higher than the last transacted price of $2.08 million prior to the collective sale. Owners of the eight duplex penthouses will walk away with $8.3 million each. While Lim is happy with the success of the collective sale, he is feeling a little sad too: Amber Park has been his home for 31 years. We were the pioneers of this place and among the first residents to move in when the condo was completed in 1986, he recalls. I m sad that we have to relocate but happy that we are getting such a good premium that we can still buy a condo in the Amber Road neighbourhood. Lim is considering buying an HDB flat. HDB announced on Dec 15 that it was releasing 17,000 new public housing flats under the build-to-order scheme in It will depend on the price and the property itself, he says. If the price is right, we would even consider buying a landed property, but farther out in the east. Asking prices artificially inflated Richard Lee, a fellow collective sale committee member at Amber Park, went house hunting soon after Amber Park was sold. He purchased a 1,200 sq ft, two-bedroom unit at Vertis, a boutique, freehold 42-unit condo adjacent to Amber Park. The asking price of the unit was $1.62 million, but he negotiated for a better price and secured it for $1.6 million. While Lee feels that the asking price for the unit at Vertis is certainly higher than what he would have paid prior to Amber Park s collective sale, he feels it s not bad. More importantly, his wife and daughter like the boutique condo, as it is a newer development, having been completed in He and his family like the convenience of the Amber Gardens location. Lee says it is well serviced by buses and, by 2023, there will be a new Tanjong Katong MRT station on the Thomson-East Coast Line located just a short walk from their future home. Haja Mohideen, another resident and collective sale committee member at Amber Park, has been monitoring asking prices in the vicinity over the past two months. I wrote down

11 EDGEPROP DECEMBER 25, 2017 EP11 COVER STORY all the asking prices and, compared with two months ago, owners are asking for prices that are $300,000 to $400,000 higher, he laments. Asking prices in District 15 are now artificially inflated by 15% and are unrealistic. In District 16, asking prices are at least 10% higher. Mohideen reckons the real test for these asking prices will come when owners of Amber Park receive the actual payout at the completion of the collective sale. Wealth redistribution As at Dec 20, a total of 33 en bloc deals had been concluded, with a total sales value of $8.63 billion. With $8.6 billion in wealth being redistributed, a lot of millionaires are being created across Singapore, says Desmond Sim, CBRE head of research for Singapore and Southeast Asia. Owners of projects that have been successful in collective sales see it as an opportunity to unlock some value, says Sim. He points out, however, that they might not want to park all that capital back into property. If they do invest in real estate, it might not even be in Singapore but overseas. Most of the prices of collective sales this year were done at premiums of 40% to about 100% to market prices, says Ian Loh, Knight Frank Singapore executive director and head of investments and capital markets. With resale prices rising as well, the collective sale premium could be compressed next year, he adds. Karamjit Singh, CEO of Showsuite and senior consultant at JLL, has been a veteran of the collective sale market for more than two decades. In the last collective sale wave of 2005 to 2007, the firm he founded, Credo Real Estate, topped the charts in terms of the number of deals and deal sizes. They included the biggest collective sale deal so far: that of the privatised HUDC estate, Farrer Court, for $ billion. It has since been redeveloped into the 1,715-unit d Leedon. Credo was acquired by JLL in Many firms are hoping to get a slice of the collective sale pie. In this year s en bloc boom, JLL is in the lead, with seven deals totalling $2.1 billion, followed by Knight Frank Singapore with six deals worth $1.85 billion (see table). More cautious What JLL s Karamjit has observed in this recent collective sale boom is a difference in the general profile and investment behaviour of the beneficiaries versus a decade ago. I see a bigger percentage looking to downgrade or choosing to make a lateral move rather than upgrade, he says. Karamjit also observes greater caution when it comes to reinvesting the newfound wealth. They are less willing to put everything into one property, he notes. There s a chance that they might split the capital across two properties and make sure they have set aside enough cash for their retirement and their children s education. The recent en bloc wave is a boon for the beneficiaries who are middle-income salaried households, especially those in their 40s and Chopra (pictured with his family) is chairman of both the Management Corp Strata Title committee and the collective sale committee of Normanton Park 50s, adds Karamjit. Economic and job prospects are not very rosy for this group, owing to disruption taking place across different sectors, he says. Anecdotally, we hear more of such beneficiaries choosing to downgrade rather than plough the capital into a bigger property and taking on a bigger mortgage to finance a higher standard of living. The natural tendency for some would be to look at other options to preserve capital and generate recurring income. That might be the case for some of these en bloc beneficiaries, says Karamjit. Alternative investment options Then, there are those who already own more than one property and are therefore in no hurry to buy another. That is certainly the case for Colonel Sukhvinder Singh Chopra. Chopra, 56, is chairman of the collective sale committee at Normanton Park, which is overseeing the sale of the estate to Chinese developer Kingsford Development for $830.1 million. Chopra says the price offered by Kingsford Development for Normanton Park is fair. For owners of the 488-unit development, it translates into a gross payout of $1.68 million to $1.86 million each. Chopra and his family live in a 144 sq m (1,550 sq ft) apartment and would, therefore, be looking at gross proceeds of $1.86 million from the collective sale. He has no intention of buying another property for now but is instead looking at investing his collective sale proceeds very conservatively, hoping to re- ceive an interest of 2.5% to 5.5% a year. The interest return would be sufficient to rent another property, he says. The retired colonel with the Singapore Armed Forces (Singapore Navy) is now managing director of Civica Singapore, a global software solutions company, where he has been for the past three years. Normanton Park was built by the Ministry of Defence in 1977 for Singapore Armed Forces officers. Chopra and his family have been living there since 1990 and he has been elected chairman of the Management Corp Strata Title (MCST) committee every year since While it is unusual for the MCST chairman to be collective sale chairman as well, Chopra occupied that position because of owners request. I ve a very good relationship with the owners, many of whom I ve known for many years, he says. Knight Frank was the marketing agent for Normanton Park in its second and successful collective sale attempt. The first attempt was in October Shopping for a new home H K Tan, an entrepreneur in the manufacture of leather goods, is a collective sale beneficiary of the 336-unit privatised HUDC estate, Florence Regency on Hougang Avenue 2. It was sold to Chinese developer Logan Property (Singapore) for $629 million on Oct 20. Each owner will get $1.84 million to $1.89 million each. Tan has been a resident of Florence Regency for the past 18 years, and his home is an apartment of more than 1,700 sq ft. It s a good and safe neighbourhood, he says. There are good food stalls around the Kovan area, just a 10-minute walk from the condo. He is considering reinvesting in property. While he views prime District 15 as a good bet because it is highly sought after, Tan is open to considering District 19, such as the Yio Chu Kang area. My folks are more familiar with the area around District 19, he says. Although Tan does not consider the collective sale proceeds a windfall, he recognises that it s a rare opportunity to cash out of the leasehold property as the lease recedes. As such, I welcome it, he says. For many owners in ageing 99-year leasehold private condos especially, there is a greater urgency to sell, notes CBRE s Sim. Many of the residents tend to be retirees. For them, a collective sale would be an opportunity to monetise their single-largest asset, he says. E Tell us your en bloc story: KNIGHT FRANK ALBERT CHUA/THE EDGE SINGAPORE The 488-unit Normanton Park was sold for $830.1 million to Kingsford Development Florence Regency was sold to Logan Property in its first collective sale attempt, for $629 million

12 EP12 EDGEPROP DECEMBER 25, 2017 SPOTLIGHT The new development on Gilstead Road will have unobstructed views JAMES CHUA/EDGEPROP Boutique developer TEE Land s competitive advantage BY ANGELA TEO One month after acquiring the 3,528 sq m site at 35 Gilstead Road, Singaporelisted boutique developer TEE Land is busy reviewing architectural plans and preparing for the project s launch, which will take place by 3Q2018, says Jonathan Phua, CEO and executive director at TEE Land. We turn around projects fast and sell them fast, he says. That is our competitive advantage as a boutique developer. The freehold site, formerly occupied by the 11-unit Casa Contendere, was acquired by TEE Land in an en bloc sale in November for $72 million. The redevelopment project will have about 70 units in three five-storey blocks, says Phua. Units at the Gilstead Road development will be north-south facing, says Fanny Cheng, assistant general manager at TEE Land. The site is at the highest point of Gilstead Road, which means residents will have unobstructed views, she adds. It is also near good schools such as Anglo-Chinese School (Primary). The project will be designed by Singapore-based architectural firm Metaphor Design + Architecture, says TEE Land. The practice designed Kismis Residences in Bukit Timah, as well as TEE Land s 24 One Residences in Pasir Panjang, which was fully sold in just four months. According to URA data on developer sales, buyers snapped up 17 units at the 24-unit project at a median price of $1,761 psf when it was launched in August. At Sembawang Hills Estate, TEE Land is redeveloping the site previously occupied by six terraced houses (1 to 1E Seraya Crescent) that it bought for $25.74 million in September. The project is also slated to be launched by 3Q2018. TEE Land is working with home-grown architectural practice AGA Architects, which also designed J Gateway and The six terraced houses on Seraya Crescent will be torn down to make way for a new development with about 50 units Phua: We turn around projects fast and sell them fast. That is our competitive advantage as a boutique developer. the 305-unit Sturdee Residences, on the redevelopment project, which will have about 50 units, says Phua. My passion is in design to make it as unique as possible, he notes. For Seraya Crescent, I am looking for something that blends in with nature yet stands out. TEE Land is currently selling the 44-unit Rezi 35, the third project in Geylang in its portfolio. The developer and joint-venture (JV) partner KSH Holdings bought the site on Lorong 35 Geylang in July 2016 for $20 million. The development was more than 30% sold as at Dec 15, says Phua. According to developer sales data from URA, 12 units at Rezi 35 were sold in November at a median price of $1,595 psf. Sales are encouraging, considering the lack of publicity, says Phua. There was no official launch and the units were sold through word of mouth, he explains. We don t have a showflat, just a small rented shophouse on Lorong 32 Geylang, where we have the model and put up floor plans. TEE Land previously leased the shophouse to market the 65-unit Rezi 3Two, which is also located on Lorong 32 Geylang. The eight-storey residential project, which sits on a 13,282 sq ft site, was jointly devel- Cheng: We ve sold out nearly everything, but TEE Land will not be rushed into acquiring sites PICTURES: ALBERT CHUA/THE EDGE SINGAPORE oped with KSH Holdings and Heeton Holdings. The project was previewed in March 2014 and fully sold in June 2017, around the time it was completed, according to URA data. TEE Land, KSH Holdings and Heeton Holdings also jointly developed the 106-unit Rezi 26 on Lorong 26 Geylang, the first Geylang project in TEE Land s portfolio. The JV partners purchased the 26,625 sq ft site in October 2010 for $28 million. Rezi 26 was launched in October 2011 and completed in According to URA data, the development was sold out less than a year after its launch in May TEE Land also has a mixed-use development on Upper Thomson Road called 183 Longhaus. According to Phua, the residential component of the project, which has 40 apartments and 10 strata commercial units, was sold out at a median price of $1,500 psf. The project was launched in We ve sold out nearly everything, says Cheng. However, TEE Land will not be rushed into acquiring sites, she says. Everyone is looking to replenish their landbank. Tender prices are high now. She estimates that there are at least 60 developments attempting a collective sale, so there will be opportunities. Artist s impression of the 44-unit Rezi 35, which was more than 30% sold as at Dec 15 On Dec 20, TEE Land announced that the net proceeds of about THB million ($13.1 million) from the disposal of its entire 31.88% stake in Chewathai, a developer incorporated in Thailand, would be reallocated and invested in property development in Singapore. According to Phua, TEE Land will continue to look for sites with freehold tenure or a 999-year lease. And we believe in the adage that location is key. We look for locations where we can add value [and] we have said to our shareholders that we will build projects in which TEE Land is the major stakeholder, he says. For the Gilstead Road redevelopment, TEE Land is partnering with privately held developer TG Development. The companies were JV partners for the 52-unit condominium The Cairnhill I as well as the adjacent The Cairnhill II, which has 60 units. Both projects are freehold and located in the prestigious Cairnhill enclave near the Orchard Road shopping belt. While TG Development was the majority stakeholder in the two Cairnhill projects, this time around, TEE Land is taking the lead for the Gilstead Road project. E TEE LAND

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14 EP14 EDGEPROP DECEMBER 25, 2017 SPOTLIGHT KALLANG DEVELOPMENT Brooks Springside is the 13th phase of the freehold residential estate Kallang Development s heritage project BY TIMOTHY TAY The latest phase at The Springside by Kallang Development was completed last year and 68 (60%) of the 114 landed houses have been sold, says Margaret Bong, senior general manager of marketing at Kallang Development. Named Brooks Springside, this is the 13th phase of the freehold residential estate. The first phase was completed two decades ago in 1997 and there are only two remaining phases to be developed, adds Bong. Brooks Signature comprises 114 3½-storey, terraced houses with five bedrooms. It was launched for sale in 2014 and the most popular are the inter-terrace houses, which have a built-up area of 3,681 sq ft on land plots of about 1,765 sq ft. The average price is $1,500 to $1,600 psf based on land area and about $700 psf based on built-up area, according to Bong. The only remaining units of this size are five corner-terraced houses, as well as a furnished inter-terrace that was a show unit, she says. According to Bong, Brooks Signature is popular with upgraders, typically parents, who buy the houses and have their children move in with them three-generation families are very common in the estate. She adds that many buyers are attracted to the project because of its freehold tenure and the houses come with their own land titles instead of being strata-landed. Residents therefore own the land and can pass it to the next generation indefinitely. Interest from buyers began to pick up last year, when many estates were initiating their collective sale attempts, says Bong. Some en bloc beneficiaries had even expressed their interest before they could be certain that the collective sale of their condo would be successful. Bong expects sales to pick up further, as it is usually easier to sell landed houses when they are completed, because people can see and feel the space. Some of the terraced houses at Brooks Signature have been designed with a more modern façade and layout to appeal to younger buyers, says Bong. These have a built-up area of 3,907 sq ft and land plots of about 1,744 sq ft. They also come with five en suite bedrooms but have smaller wet kitchens to accommodate a larger backyard. According to Bong, the younger buyers love the staircase, which serves as a focal point in the design. The dining area, which is located beyond the staircase, has a triple-volume ceiling that extends through the Some of the houses have been designed with a more modern layout that appeals to younger buyers PICTURES: ALBERT CHUA/THE EDGE SINGAPORE house. The houses at Brooks Signature have been designed to accommodate home lifts for the elderly, adds Bong. The most affordable houses at Brooks Signature are the four-bedroom terraced units, which sit on land plots measuring from 1,679 sq ft and have a gross floor area of 3,864 sq ft, according to Bong. They are priced from $2.796 million. Kallang Development is also offering 12- and 24-month deferred payment schemes. The Springside is built on former plantation land, which has been held by the developer since before Singapore gained independence. Kallang Development was able to convert the land lease into residential use and retain its freehold tenure. Over the years, Kallang Development has built parks and community spaces in The Springside, in addition to the homes, says Bong. The row of houses on Springside Walk is possibly the friendliest neighbourhood, she says. The residents will close off the street, decorate it together and host street parties during festivities such as the Mid-Autumn Festival, she says. The estate is located off Sembawang Road and between Upper and Lower Seletar Reservoirs. Unlike some other landed estates, which are surrounded by tall buildings, Springside Estate is serene and surrounded by greenery, says Bong. In addition to landed houses, Kallang Development also developed a pair of four-storey mixeduse buildings on Sembawang Road. Named Brooks I and II, the freehold properties comprise 34 retail units and 61 residential units. The residential component was launched for sale in April. A mix of one- to three-bedroom units are available, measuring 571 to 1,066 sq ft, as well as two- and three-bedroom penthouses from 1,152 to 1,400 sq ft. According to URA caveats, 22 units (36%) have been sold and the most recent unit transacted was a 710 sq ft, two-bedroom unit on the second floor that sold for $905,000 ($1,274 psf) in November. Most units have sold at an average of $1,250 psf, says Bong. Brooks I and II received their Temporary Occupation Permit last year. The developer has yet to launch the strata retail units for sale, which may be leased out for recurring income. Kallang Development is curating the tenant mix to ensure it serves the needs of the residents. E The Springside is a peaceful neighbourhood surrounded by greenery A 603 sq ft, one-bedroom-plus-study at Brooks I An 818 sq ft, two-bedroom unit with activity space at Brooks I

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16 EP16 EDGEPROP DECEMBER 25, 2017 INDUSTRY WATCH Sales momentum to build up in 1H2018 BUKIT SEMBAWANG ESTATES Residential Confirmed and Reserve Lists (number of housing units) COLLIERS INTERNATIONAL RESEARCH Residential Confirmed and Reserve Lists (number of sites) COLLIERS INTERNATIONAL RESEARCH Riding on the sales momentum, Bukit Sembawang is expected to launch 8 St Thomas next year FROM PAGE EP2 the fewer number of sites released under the GLS programme, Cheong notes that there has been aggressive bidding for land sites and, because fewer GLS sites were launched, some developers turned to collective sale sites as an alternative. This was seen in Bank of mum and dad Even as prices of land are being pushed up, the real test will come when developers launch the projects off-plan, says Cheong. With demand mainly fuelled by domestic buyers, and the TDSR and other property cooling measures still in place, young people will be depending on the bank of mum and dad to fund their new-home purchases, he reckons. But how deep are the reserves of that bank? That remains to be seen. Sales momentum is likely to build up in the first three quarters of 2018, Cheong adds. If the new sale prices are deemed to be high, demand will spill over to the resale market. He therefore foresees resale transactions once again overtaking new-home sales in This year, overall sentiment in the residential market has improved. Some homebuyers have entered the market out of fear of missing out, while others want to lock in interest rates before they rise further, notes CBRE s Sim. The new units that have moved have been those priced reasonably at $2 million, which is still the sweet spot, he adds. New launches from government land sale sites NO SITE DEVELOPER SITE AREA SITE TENURE GROSS FLOOR NO OF (SQ FT) AREA (SQ FT) UNITS** 1 Rivercove Residences, Anchorvale Lane # Hoi Hup Realty and Sunway Developments 226, year 678, Margaret Drive MCL Land 51, year 238, Toh Tuck Road S P Setia International 201, year 282, Perumal Road Residences Low Keng Huat 41, year 173, Twin Vew, West Coast Vale CSC Land* 176, year 493, Tampines Ave 10 (Parcel C) City Developments 233, year 654, Stirling Road Nanshan Group and Logan Property (Singapore) 227, year 954,336 1,100 8 Bidadari site (mixed-use development) Singapore Press Holdings and Kajima Development 273, year 958,450 >600 9 Woodleigh Lane Chip Eng Seng, Heeton Holdings and KSH Holdings 210, year 631,212 > Serangoon North Avenue 1 Keppel Land and Wing Tai Holdings 185, year 462, # Executive condo *CSC Land is the property development arm of China Construction **Estimated number of residential units New launches from collective sale/en bloc sites NO SITE DEVELOPER SITE AREA SITE TENURE GROSS FLOOR NO OF (SQ FT) AREA (SQ FT) UNITS* 1 45 Amber Road UOL Group 69,858 Freehold 146, Shunfu Ville (former HUDC estate) Qingjian Realty 408, year 1,200,996 1,000 3 Harbour View Garden Roxy-Pacific Holdings 30,742 Freehold 43, Raintree Gardens (former HUDC estate) UOL Group and United Industrial Corp 201, year 563, Rio Casa (former HUDC estate) Consortium led by Oxley Holdings 396, year 1,109,447 1,475 6 Serangoon Ville (former HUDC estate) Consortium led by Oxley Holdings 296, year 831,356 1,200 7 Eunosville (former HUDC estate) MCL Land 376, year 1,054,479 1, Draycott Park SDB (Selangor Dredging) 17,442 Freehold 48,838 >60 *Estimated number of residential units URA, DEVELOPERS, COLLIERS INTERNATIONAL, JLL, KNIGHT FRANK COLLIERS INTERNATIONAL, JLL, KNIGHT FRANK, DEVELOPERS FINANCIAL REPORTS Prices projected to increase 8% to 10% Sim forecasts an 8% to 10% rise next year on a psf basis. He sees higher land prices starting to come into play next year as developers try to keep the majority of units in their new projects at the sweet spot, which means smaller units and higher price psf. Tempering the market, the Ministry of National Development noted in its release on Dec 13 that, while demand for sites by prop- erty developers is still strong and home transactions have picked up, there is a large potential supply of around 20,000 units from awarded en bloc sale and GLS sites that have not yet been granted planning approval, on top of the [roughly] 18,000 unsold units that already have planning approval. In addition, more than 30,000 private housing units remain vacant, according to MND. E New launches held back from before NO PROJECT NAME DEVELOPER SITE TENURE GROSS FLOOR NO OF AREA (SQ FT) UNITS 1 8 St Thomas Bukit Sembawang Estates Freehold 291, New Futura City Developments Freehold 248, South Beach Residences City Developments 99-year 391, COLLIERS INTERNATIONAL, JLL, KNIGHT FRANK

17 EDGEPROP DECEMBER 25, 2017 EP17 MARKET TRENDS FROM PAGE EP3 Tang Wei Leng, managing director of Colliers International. I expect developers to assess collective sale sites based on the opportunities created by upcoming infrastructure developments such as the Thomson-East Coast Line. Collective sale sites near future MRT stations on the Thomson-East Coast Line present exciting redevelopment potential, which is likely to appeal to both developers and future homebuyers, adds Tang. The changing demographic profile of the population is another trend that could shape the collective sale market in 2018, she continues. Sites near good schools will continue to find favour with developers, as the future development will be attractive to homebuyers with school-going children. Tang sees good collective sale opportunities in prime District 10, especially the Holland Road/Bukit Timah area, where homes can be resized to cater to demographic changes. More hurdles for large, leasehold sites So far this year, six privatised HUDC estates have been sold en bloc for a total of $4.3 billion, the largest of which is Tampines Court, sold to Sim Lian Group for $970 million and considered the largest collective sale this year in terms of deal size and number of units involved (493 units). Most of the large privatised HUDC estates sold were in the Serangoon and Hougang areas in District 19: Florence Regency ($629 million), Rio Casa ($575 million) and Serangoon Annual residential collective sale values (2005 to 2017 YTD) 14 $ bil Ville ($499 million). Two freehold sites in the northeast region that were sold en bloc were How Sun Park ($81.09 million) and Sun Rosier ($271 million). Part of the reason for [the high number of en bloc deals in the northeast region this year] is the improvement in infrastructure, regeneration taking place in the neighbourhoods, and new train stations on the Circle Line that help connect to the North-East Line, making the residential areas more accessible, says Knight Frank s Loh. Ten years ago, all these amenities were not in place yet. For people living in the Hougang, How Sun and Serangoon areas, it means greater connectivity and convenience, which is reflected in the property prices, especially for the en bloc sale beneficiaries. While the collective sale fever this past year was stoked by the 99-year leasehold sites in YTD the suburbs, the chief valuer has caught up by raising development charges of up to 29% in areas in the northeast region such as Hougang, Tampines Road and Punggol, notes Desmond Sim, CBRE head of research for Singapore and Southeast Asia. Developers have to take into consideration the differential premiums payable for topping up the lease too, he adds. Traffic feasibility study increases uncertainty for developers On Nov 13, URA announced that, with immediate effect, it was mandatory for all buyers of collective sale sites to submit a pre-application feasibility study on traffic impact, along with their outline development applications for the site. This could curb developers demand for large privatised HUDC estates, adds Savills Cheong. It may therefore be difficult to pull URA, JLL RESEARCH, AS AT DEC 19, 2017 More collective sales brewing off one of those en bloc deals the size of Rio Casa or Eunosville, which can yield about 1,400 units. This will have a chokehold on developers in terms of the number of units they can develop on the site, and will crimp their profits. One of the first to be affected by the preapplication traffic feasibility study is Pearl Bank Apartments, which was put up for tender at end-october at a reserve price of $728 million. The collective sale tender closed on Dec 19. It is said to have attracted keen interest from developers. The collective sale committee is now evaluating its options and taking into account the concerns raised by interested parties. Developers concerns include uncertainties arising from the pre-application feasibility study on traffic impact, which will affect the number of units that can be built on the site and the approach to pricing land, as well as apprehension over whether they would be compelled to conserve the iconic development in the future, says Colliers Tang. As such, the collective sale committee of the development has instructed Colliers, its marketing agent, to enter into private-treaty negotiations with interested parties. According to laws governing collective sales, the owners may enter into a private-treaty contract with a buyer within 10 weeks from the close of the public tender, adds Tang. If a leasehold site is in a good location and the asking price is realistic, developers are likely to remain keen, says Ong Choon Fah, CEO of E Edmund Tie & Co.

18 EP18 EDGEPROP DECEMBER 25, 2017 INTERIOR DESIGN What to look for in an interior designer BY WILSON TEH A MOST practical first step before embarking on a renovation is to ask your family members and friends whether they have engaged an interior designer before. They can give you valuable insights into the renovation process. Otherwise, there is always the internet. STEPS TO TAKE Extensive research; Ensure the interior designers and renovation contractors are licensed and HDB-certifi ed; Read reviews, testimonials and forums; Shortlist fi ve interior designers/ renovation contractors at most; and Meet all fi ve and compare their design proposals and quotations. Renovating your home may feel like a huge undertaking in terms of financial commitment and time, but it can be extremely satisfying when it is well executed. To ensure a smooth working relationship with your interior designer: Be clear about the theme and design you want; Be specifi c about your requirements; Teh: Rezt & Relax Interior offers customers a lifetime warranty so that they will not need to incur additional cost of repair Be realistic about expectations; and Set a budget you are comfortable with, and a buffer for contingencies. ADVANTAGE OF A LIFETIME WARRANTY Most warranties are typically for only two years. However, most homeowners would generally not be able to enjoy the advantage of a two-year warranty, as most wear and tear takes place after two years. Rezt & Relax Interior offers customers a lifetime warranty so that they will not need to incur additional cost of repairs. Renovating your home may feel like a huge undertaking in terms of financial commitment and time, but it can be extremely satisfying when it is well executed CASE TRUST-RCMA ACCREDITATION The CaseTrust-RCMA Accreditation for Renovation Businesses was launched in February 2016 and is a joint accreditation scheme by the Consumers Association of Singapore (CASE) and the Renovation Contractors and Material Suppliers Association (RCMA). The accreditation scheme recognises renovation businesses that are committed to maintaining a high level of good business practices. Rezt & Relax Interior was among the first to obtain the accreditation. CaseTrust-RCMA-accredited companies on-site workmanship is assessed in accordance with the Building and Construction Authority (BCA) standards and their contractors are obliged to uphold ethical practices and accurate knowledge. By obtaining the CaseTrust accreditation, these companies demonstrate that they strive to put their customers first and ensure that their customers get what they have paid for. ADDED SECURITY An added security for customers is the requirement for a CaseTrust- RCMA-accredited business to protect a customer s deposit payment through the purchase of a deposit performance PICTURES: REZT & RELAX INTERIORS bond. This bond will safeguard customers deposits against closure, winding up and/or liquidation. A CaseTrust Standard Renovation Contract will also be adopted to ensure cost transparency and accountability for listed deliverables in a renovation project. In case of disputes, the CASE Mediation Centre will carry out an unbiased resolution. As home renovation is a large investment for most Singaporean homebuyers, it is understandable that they would want to look for a renovation company that is able to meet their renovation needs. This will ensure that they have the peace of mind that the company is able to deliver what has been promised. So, make sure you choose a CaseTrust-RCMA-accredited renovation company. Wilson Teh is Executive Director of Rezt & Relax Interior ( com; facebook.com/reztnrelax). Established in 2000, Rezt & Relax Interior is a home-grown company specialising in interior design and renovation of HDB flats, condominiums, landed houses and commercial spaces. It is an HDB-accredited, ISO-certified and a CaseTrust-RCMA-accredited company that provides the industry s first and so far only lifetime warranty on workmanship.

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