10 th May 23 rd May Property News Summary Statutory Board News Release! Chip Eng Seng tops bids for Simei condo plot (11/05 BT) Ref:BT10-1105-01 A unit of Chip Eng Seng Corporation has emerged as the highest bidder for a 99-year leasehold condo plot near Simei MRT Station. Its top bid of $152.688 million works out to a unit land price of $522.98 per square foot per plot ratio (psf ppr). The top bid was 3.2 per cent higher than the second highest offer from Frasers Centrepoint Ltd. The tender by Urban Redevelopment Authority attracted a total 18 bids. Allgreen Properties placed the lowest bid of $113.8 million or about $389.78 psf ppr. 99-yr Simei plot draws 18 bids (12/05 ST) Ref:ST10-1205-01 Another suburban land tender has generated massive interest, with a staggering 18 developers plunging in and offering top dollar for the site. The 99-year leasehold 1.18ha site, which can accommodate an estimated 250 flats, is in Simei St 3, right across the road from Eastpoint Mall and Simei MRT station. Chip Eng Seng's CEL Development has emerged the top bidder with a much higher-than-expected bid of $152.69 million or $523 per sq ft per plot ratio (psf ppr). This price will translate to a break-even level of $860 to $900 psf, and an average selling price of around $1,000 psf if the project is launched in the first half of next year, said CBRE Research. Mr Steven Tan, executive director, residential, at OrangeTee.com, expects a slightly higher break-even and a possible final selling price of $1,100 to $1,150 psf. CBRE Research's executive director, Mr Li Hiaw Ho, said the 18 bids garnered represent 'an all- time high level of interest' not seen in government land sales tenders in the last five years for a site of this size and with a value of more than $100 million. Developers home sales surge to 2,207 units in April (17/05 BT) Ref:BT10-1705-01 Developers sold 2,207 private homes in April, up 25.3 per cent from March and the highest monthly figure since the 2,772 units they sold in July last year. Figures released by Urban Redevelopment Authority on Monday show that the bulk of the units sold in April were in Rest of Central Region (1,044), followed by 771 units in Outside Central Region and 392 units in Core Central Region. The strong sales in April were a function of the surge in launches. Developers launched a total 2,084 homes last month, up 16.4 per cent from March. 700 new flats in Yishun likely (19/05 ST) Ref:ST10-1905-01 The top bidder in a tender for a premium public housing site in Yishun said yesterday it would build 700 flats there, mainly three-room and four-room units, if it is awarded the contract. A joint venture between Guthrie (DBP) and SK Land emerged as the top bidder with an offer of $148.89 million or $179.80 per sq ft (psf) of gross floor area. The tender, under the Housing Board's (HDB) Design, Build and Sell Scheme, had attracted six bidders when the tender closed yesterday. The scheme allows private developers to design, build and sell HDB flats directly to buyers. Yesterday's top bid was within analysts' expectations of $132 million to $166 million, or $160 psf to $200 psf of gross floor area. The offer was about 5 per cent above the second highest bid from a consortium of Hoi Hup Realty, Sunway Developments and Hoi Hup J.V. Development. It had put in a bid of $142.3 million or $171.85 psf of gross floor area. Other bidders included Sim Lian Land and Chip Eng Seng's CEL Development. The Yishun plot, which has a maximum allowable gross floor area of 76,926 sq m, is at the junction of Yishun Avenue 11 and Yishun Central.
New en bloc rules passed to protect owners' interests (19/05 ST) Ref:ST10-1905-02 Tighter rules that will give greater clarity to the process for the collective sale of homes were passed by Parliament yesterday. One major change is that after the first failed attempt at a collective sale, subsequent attempts face more stringent requirements. For instance, it will be tougher to set up a sales committee for a second try as a higher requisition level of 50 per cent - either by share value or total number of owners - will be needed. Still, before the Bill to amend the Land Titles (Strata) Act was passed, several MPs argued that it could be improved further. They suggested that the age and state of a building should be considered when deciding the level of consent required for a sale. They also wanted a reduction in the requisition level. Replying, Law Minister K. Shanmugam said the Government's task was to protect the interests of all strata unit owners, regardless of whether they were for or against the sale. Also, it should not 'micro-manage the process and prescribe too many requirements', he added. The new law to streamline the collective sale process was unveiled for debate last month. It includes: a 60-day window for the Strata Titles Board (STB) to mediate in a sale, failing which it can give the parties the option to seek redress in the High Court; and stricter rules for the members of the sales committee to declare potential conflict of interest. The law can be expected to take effect next month. Changes to en bloc rules passed by Parliament (19/05 BT) Ref:BT10-1905-01 Parliament yesterday passed changes to improve the rules on en bloc sales, but some of the proposals pushed by interested parties were excluded. With the green light given to the Land Titles (Strata) (Amendment) Bill, the Strata Titles Board which currently look into en bloc sale can concentrate more on its mediatory role. The amended Land Titles (Strata) Act will also impose stricter requirements on owners for restarting en bloc sale attempts, after failing earlier. And owners standing for election to a collective sale committee must make more disclosure of their interests - they now must disclose the extent of ownership they have in the strata development and any ownership interests held by 'connected persons'. Other changes include: A sale committee has up to one year to prepare its collective sales agreement and to get the first signature for the agreement; A general meeting called for an en bloc sale can't proceed if the meeting quorum is not met within an hour of the designated start time of the meeting; Instead of holding general meetings, simple meetings are to be held to keep owners updated on a collective sale. In moving the bill, Law Minister K Shanmugam said the government's approach - the last time it amended the Act was in 2007 - has been to do what it believed was right as between competing interests. 'Each owner has the right to live undisturbed in his flat and has the right to decide whether to sell or not to sell his flat,' he said. 'At the same time, majority views on whether there should be a sale of the development should be recognised as well. And there is public interest in intensifying developments and rejuvenating older developments.' Mr Shanmugam said these different interests need to be balanced. The latest changes seek to achieve that balance better.
Top bid for this Hougang site: $207.5m (21/05 ST) Ref:ST10-2105-01 Developers have again lodged bids above market expectations for a suburban residential site, this time at Hougang, with a top bid of $207.5 million. This works out to a bullish $456 per sq ft per plot ratio (psf ppr). However, the seven bidders competing for the 3.02ha plot in Hougang Avenue 2 were fewer in number than for some recent hotly contested sites. One recent tender in Simei attracted a sizzling 18 bids. Ngee Ann Polytechnic real estate lecturer Nicholas Mak noted that developers appear to be rather selective in their choice of sites. 'Only those development sites that are near to MRT stations attract more than 10 bidders,' he said. The site is about 10 minutes' drive from Hougang and Kovan MRT stations. When the tender closed yesterday, the top bid for the site was from MCL Land (Serangoon), the Urban Redevelopment Authority (URA) said. Largest land release for private homes (22/05 ST) Ref:BT10-2205-01 The Government has moved to meet surging demand for housing by lining up the largest ever release of state land for private homes. It has placed 18 residential or residential/commercial sites on the programme for confirmed sale in the second half of the year. There will also be 13 sites for residential use on the reserve list. These plots - of which 20 are new and not rolled over previously - could accommodate about 13,905 new homes. The plots range from areas in Jurong West to Pasir Ris and include land in mass-market areas like Hougang and Tampines. 'I hope that with this increased supply, home buyers will be assured that there is ample supply in the market and therefore... there is no need to rush,' said National Development Minister Mah Bow Tan yesterday. Real estate group unveils enhanced accreditation system (22/05 ST) Ref:ST10-2205-03 A real estate agency body has unveiled a revamped system of accreditation that allows its members to complement the Government's newly announced mandatory licensing scheme for the industry. According to the Singapore Accredited Estate Agencies (SAEA), its enhanced accreditation role for estate agencies and agents seeks to further develop the industry in collaboration with the Singapore Institute of Surveyors and Valuers (SISV) - the national real estate professional body. Under a new regulatory framework the Government announced two weeks ago, all property agents will need to be registered with the Council for Estate Agencies, a new statutory board that will also be responsible for licensing estate agencies. SAEA said the enhanced accreditation would complement the new registration system set up by the Government. 'To be registered with the Council for Estate Agencies shall be a basic entry requirement into the industry, and that is only the beginning,' said Dr Tan Tee Khoon, chief executive of SAEA. 'Having the SAEA accreditation adds value to the agency, agent or salesman as having achieved the mark of professional business practice,' he added. Accredited agencies of SAEA will get assistance in cutting business costs, developing leadership, engaging in professional upgrading courses and increasing their capabilities to compete not just in Singapore but internationally as well. The two organisations will jointly organise continuing professional development courses for SAEA members. This will help to provide a pathway to SISV membership. Govt bumps up land supply to cool market (22/05 BT) Ref:BT10-2205-01 The government yesterday dramatically increased the supply of land for the second half of this year to meet the demand for private homes. And the impact of this strong signal to the market is expected to be immediate, in terms of cooling home sales as well as dampening land bids. Prices are also expected to lose steam. A record number of at least 14,405 private homes are expected to be built from land sold this year - comprising an estimated 6,270 units from sites sold in H1 and an 8,135-unit supply from confirmed list sites that will be launched in the second half. This surpasses the previous record supply in 1997 when the government sold land for about 8,500 units.
Residential sites expected to be sought after (22/05 BT) Ref:BT10-2205-02 The government has done its homework to make sure that the residential sites on the latest instalment of the government land sales (GLS) programme will be popular with both home-buyers and developers. Many of the 27 residential sites on the programme for the second half of 2010 are near MRT stations and some are even located right next to recently launched projects that sold well. There are also four new executive condominium (EC) sites on the confirmed list - bringing the total number of EC sites, which are in high demand, to five. In comparison, there were just two EC sites in the H1 2010 confirmed list. Sub-sales hold steady but prices are up (23/05 ST) Ref:ST10-2305-01 Investors who wish to enter the sub-sale market may have to be prepared to fork out more cash. Although the volume of sub-sale transactions of non-landed homes stayed stable at 13 per cent of total non-landed sales in the first quarter, prices have risen, said property consultancy DTZ's latest report. The median sub-sale price of non-landed private homes rose 9 per cent from the fourth quarter of last year to reach $1,190 per sq ft (psf) in the first quarter. A sub-sale takes place when a buyer buys a new apartment, then resells it before it is built. These deals are usually used as an indicator of speculative activity in the property market. To rein in speculators, the Government implemented a seller's stamp duty and lowered the loan-to-value limit for housing loans from 90 per cent to 80 per cent in February this year. Because of the extra 3 per cent that sellers have to pay for stamp duty if they offload a property within a year of purchase, they will want to push up their prices by a bit more, said Mr Joseph Tan of CBRE Research. But DTZ said that these measures would not have much impact on the market as sub-sales are already at a low level. Main Property News Release! Factory rents may rise 10%: Colliers (14/05 BT) Ref:BT10-1405-01 Rents, land values and capital values of conventional industrial space in Singapore could rise 10 per cent in the next 12 months, as the economy improves and institutional investors return, said Colliers International yesterday. The consultancy found that the market for factories and warehouses has already picked up in the six months from October last year to March this year. During the period, the average monthly gross rent for single-user factories in central Singapore increased by about 3.8 per cent to $1.35 per sq ft. Capital values for this type of property also inched up 3.6 per cent to $145 psf. Separately, warehouses in the eastern part of the island saw their average monthly gross rent rise 6.7 per cent to $1.28 psf. Their capital values also went up 6.2 per cent to $138 psf. OUE to launch first fully furnished flats (11/05 ST) Ref:ST10-1105-02 Property firm Overseas Union Enterprise (OUE) will soon launch for sale Singapore's first fully furnished apartments. Executive chairman Stephen Riady told The Straits Times yesterday that the firm is bullish on the local economy and aims to significantly increase its assets portfolio in five years or so. The firm, which released strong first-quarter results yesterday, also announced that it is proposing a one-into-five stock split to improve the counter's marketability. The firm's move into furnished flats caught many eyes yesterday. More than 90 per cent of OUE's assets are in Singapore's prime office, hospitality, retail and residential sectors. It has just one residential project in its portfolio - the former Grangeford condominium site that it purchased in a collective deal in the boom days of 2007. The showflat for the high-end project is almost ready and the launch could take place soon.
Demand for high-end homes may lose steam (13/05 ST) Ref:ST10-1305-01 Celebrations for the much-anticipated full comeback of the luxury end of the property market this year might just have to be put on hold. The sector's nascent recovery is looking a little shaky as investors grapple with lingering fears over the Greek debt crisis and general uncertainty still plaguing the global economy. Analysts say that despite increasing demand and rising prices for upmarket residences since last year, investors might be starting to get wary again as the shaky European economy raises doubts as to whether the global recovery can be sustained. 'It is a fairly uncertain situation. We don't know if the crisis is really over or if other countries like Spain and Portugal could require more money,' Ngee Ann Polytechnic real estate lecturer Nicholas Mak said. '(The Greek debt crisis) puts a damper on sentiment, and if it continues affecting the global financial market, it could impact investors' available funds.' The recovery so far has been impressive. The high-end sector with homes in the core central region (CCR) was the star performer this year with first-quarter sales numbering 1,927 - or 44 per cent of total new homes sold - and a 4.4 per cent increase in prices. 2010 still likely a banner year for private property (17/05 ST) Ref:ST10-1705-01 The private homes market has slowed in the past fortnight but experts feel 2010 will still emerge as a banner year for the sector. They say sales of new private homes will come close to matching levels seen in the boom days of 2007, but transaction values are likely to be higher given the rise in prices. According to a report by consultant CB Richard Ellis (CBRE), the total value of new home sales this year is expected to reach a level between the $16.22 billion transacted in 2007 and the $23.52 billion recorded last year. CBRE's executive director for residential properties, Mr Joseph Tan, said in the report that the residential market at the start of this year reflected 'a followthrough of the momentum begun last year'. The numbers so far certainly point to a similar boomtime result. Developers sold 4,380 new homes - landed and non-landed - in the first quarter. That suggests momentum for similar full-year transactions of around 14,000 achieved last year and in 2007, the report said. Developers brace for muted May after active April (18/05 BT) Ref:BT10-1805-02 April was a good month for developers, with private homes sales surging 25.3 per cent month-onmonth to a higher-than-expected 2,207 units. This is the highest monthly figure in nine months and takes the sales tally for the first four months of this year to 6,587 units, nearly 45 per cent of the figure for the whole of last year. But far from opening the bubbly, industry players are watching how home buyers react to ongoing stock market jitters and fears about a contagion effect in Europe from Greece's problems. Developers' sales activity is expected to fall in May as there have been few launches so far this month. But projects such as The Minton in Hougang are expected to be launched next week. Allgreen is also previewing The Cascadia at Bukit Timah this week to retail buyers, after selling 187 of the project's 536 units to two funds a few years ago.
Hillview Terrace site up for collective sale (19/05 BT) Ref:BT10-1905-01 A smallish site in Hillview Terrace is up for collective sale with unanimous consent from the owners. The site - which covers numbers 12 to 24, even numbers only - is expected to fetch almost $49 million, or $617 per sq ft per plot ratio. A Development Charge payable, based on March 2010 rates, is estimated at $15.2 million. Marketing agent DTZ says the property, off Hillview Avenue, is being sold through a tender that closes on June 22 at 3 pm. The freehold site covers 4,567.5 sq metres (49,164 sq ft). According to the Master Plan 2008, it can be developed into a 10-storey condominium with a gross plot ratio of 1.92. This translates into total gross floor area of 103,835 sq ft including additional 10 per cent balcony area, or about 100 apartments averaging 900 sq ft. New survey shows buyers positive about property (19/05 BT) Ref:BT10-1905-02 Three out of four potential home-buyers feel that the prices of private homes and resale HDB flats in Singapore are too high, a new survey has found. But this has not put them off; 75 per cent of active property seekers still hope to buy a home within the next two years. The survey, which was commissioned by property website PropertyGuru, also found that 58 per cent of the more than 2,200 people surveyed feel that the government is not doing enough to keep property prices in Singapore affordable. Steve Melhuish, chief executive and co-founder of PropertyGuru, said that this was 'surprising' as the survey was conducted in April and May this year - after two sets of cooling measures were already introduced by the government in September 2009 and late February this year. Overall, the survey showed that investor confidence in the property market remains strong after a bullish 2009. Call to release office sites to avert supply crunch (19/05 BT) Ref:BT10-1905-03 The time is ripe for government to introduce some sites for office development in the second half 2010 confirmed list to avert a potential supply crunch in future, suggest property consultants. However, while some think these new office sites should be in prime CBD areas such as Marina Bay, others suggest the government could also be looking at city-fringe locations as well as land near the Paya Lebar and Jurong East MRT Stations which has been earmarked for development into new commercial hubs. 'We'll need to be ahead of the curve by getting land through the confirmed list in H2 2010, bearing in mind that it can take up to four years from inception to completing a new building,' says CB Richard Ellis executive director of office services Moray Armstrong. 'We could be facing a relative shortage of new office space completion in 2013-2014, assuming the current surge in positive occupier demand continues. Slightly more than 50 per cent of the 5 million sq ft-plus of Grade A new office space completing in 2010-2012 is already pre-let.' 'Strong Singapore GDP growth anticipated this year will underpin continued healthy take-up to 2011 and 2012. There are lots of positive employment pointers leading to expansion in office demand. Banks are recruiting vigorously, especially in the private wealth and asset management sectors,' he added. $320m bid seen for North Buona Vista Drive site to be tendered (20/05 BT) Ref:BT10-2005-01 JTC Corporation (JTC) announced on Thursday that an application from a developer was accepted for the 1.8ha, 99-year lease North Buona Vista site to be put up for sale via a public tender. JTC said the developer, which was not named, has committed to bid at a price of not less than $320 million (US$229 million). The site has a potential yield of 111,565 square metre (sqm), with 2000 sqm being set aside for retail use. It is located within the biomedical hub of one-north, Singapore's 200 ha innovation and R&D hub. The site will be developed into a high-rise commercial building, providing office space outside the central business district for the business support companies of the research institutes at one-north. JTC said located next to the site is the business and lifestyle hub of one-north.
Buona Vista site triggered (21/05 ST) Ref:ST10-2105-02 On the commercial property front, JTC said yesterday that a 1.8ha site next to the Buona Vista MRT station will be launched for sale soon. Located in the one-north biomedical hub, it was made available for sale on the reserve list in April 2008 but has only just been triggered by a developer which pledged to bid no less than $320 million. The 99-year leasehold site has a potential yield of 111,565 sq m, with 2,000 sq m to be set aside for retail use. It is to be developed into a high-rise commercial building. Cushman & Wakefield managing director Donald Han is expecting bids to come in between $300 to $320 per sq ft per plot ratio (psf ppr). The trigger bid works out to $266.50 psf ppr. His expectations are a lot lower than the numbers of $350 to even $500 psf ppr that analysts had forecast in April 2008. Poh Lian wins S$58.5 mln residential project (21/05 BT) Ref:BT10-2105-01 United Fiber System Limited (Unifiber) announced on Friday that its subsidiary, Poh Lian Construction (Pte.) Ltd, has been awarded a $58.5 million contract by Prime Residential Development Pte Ltd, a subsidiary of Kajima Overseas Asia Pte Ltd. The contract is for the construction of one block of Part 2/ Part 5-storey and 1 block of 5-storey apartment block (total: 29 units) and a pair of 2-storey strata semi-detached houses complete with basement carpark, swimming pool and other ancillary facilities ('the Project') at the up-market residential area located near Nathan Road and Bishopgate junction. The project will commence on 27 May 2010 and is scheduled to be completed on 26 March 2012. Private home market stays firm in Q1 (21/05 BT) Ref:BT10-2105-01 The private home market stayed firm in the first quarter of the year, with transaction volumes on the rise and more expensive units changing hands. According to property consultant DTZ's analysis of caveats lodged, 8,159 private residences were sold in Q1, up 22 per cent from the previous quarter and more than double the number a year ago. More homes were bought by those with private addresses. HDB upgraders accounted for 34 per cent of all transactions in Q1, taking the same share as they did in Q4 last year. When the property market was just reviving in Q1 2009, buyers with HDB addresses were involved in as much as 56 per cent of all deals. 'HDB upgraders are gradually taking a backseat' as home prices climb, DTZ said in its report. And climb they did. The median price of non-landed private homes in subsales went up to $1,190 in Q1, just a shade lower than the previous peak of $1,246 in Q3 2007. Bukit Sembawang stages strong revival (22/05 ST) Ref:ST10-2205-01 Property developer Bukit Sembawang Estates has posted a hefty $41.9 million fourth quarter net profit in a strong comeback from a $61.4 million net loss in the same period last year. This was despite higher expenses, mainly the higher construction and land costs of the company's development projects. For the full year ended March 31, Bukit Sembawang posted a $53 million net profit, reversing a $48.4 million net loss in the year before. This was partly attributable to a write-back of allowance for foreseeable losses amounting to $40 million, arising from an increase in the valuation of the group's Fairways development project. Fourth quarter revenue more than quadrupled to $21 million from $4.9 million in the same period a year earlier. Full-year revenue was $66 million, up 5.4 per cent from the previous year's figure
Mover and Shakers! Dragon Mansion en bloc sale approved (11/05 ST) Ref:ST10-1105-01 The Strata Titles Board (STB) approved the $100.8 million collective sale of Dragon Mansion yesterday. It is the only collective sale site to have achieved a sale price above $100 million since the global economic crisis unfolded, says the deal's broker, CKS Property Consultants. The tender for the collective sale of Dragon Mansion was launched in July last year, marking the first such sale offering of the year. Owners of the 72-unit condominium initially wanted $120 million, or $1,020 per sq ft (psf) per plot ratio. This was significantly above collective sale prices racked up in the 2007 boom. Their sale tender closed on Aug 11 last year with no firm bids. A deal was eventually struck with RL Developments, a subsidiary of boutique developer Roxy-Pacific, for $100.8 million last December.