Residential

Jewel@Buangkok draws strong response

203 out of the 280 units at 616-unit Jewel@Buangkok were sold. Average selling price was about $1,150 psf which includes an early-bird discount. 84% of buyers are Singaporeans, many were young couples, PMEBs (professionals, managers, executives and businessmen) and HDB upgraders. 16% of buyers were foreigners and PRs from Malaysia, China, Indonesia, Taiwan, Hong Kong, Australia, the United States and Japan. Jewel@Buangkok, the six towers with heights of 15-17 storeys includes one to five-bedroom apartments, dual-key units and penthouses with a size of 463 sq ft to 1,701 sq ft. 2 out of 5 penthouses of the project were sold. Jewel@Buangkok is conveniently located near Buangkok MRT which is close to various shopping malls, parks and schools.

(Source: Business Times)

Possibility of oversupply for private housing land

Some property consultants are expecting the Ministry of National Development (MND) to maintain the land supply for private housing at a similar level to the current H1 2013 slate as the demand from the “sandwich class” is stable. Others anticipate MND to cut down the land for executive condos (ECs) by allocating a higher proportion of total private housing land (including ECs) on the reserve list than in the confirmed list to create flexibility for land sales and avoid oversupply. MND may release more commercial sites in the suburbs for its decentralization plans in Jurong East, Paya Lebar, Woodlands and near to the Circle Line MRT stations. It’s unlikely for the state to release any large office sites in the CBD through the confirmed list. There may be release of hotel sites in the reserve list.

(Source: Business Times)

Construction sector crucial in co-piloting ‘soft-landing’: Khaw

In his blog post, Mr Khaw (MND) wrote that ramping up the supply of HDB flats and private residential units is a key strategy in achieving a “soft-landing” which needs the cooperation from local construction companies.  HDB’s building contractors had completed 6,000 units as at the end of last month and the remaining 7,600 units by the end of the year despite the tightening of foreign labor. 3,500 private residential units were completed by end-April this year while the remaining 14,900 private residential units can be completed within this year. 13,600 HDB flats and 18,400 private residential units are scheduled to be completed this year. HDB has also arranged for BTO projects such as Treegrove@Woodlands to be completed in phases, which allows buyers to receive their keys earlier by a couple of weeks. HDB will launch another 25,000 flats this year and deliver between 26,000 and 29,000 flats in each of the next two years.

(Source: Business Times)

8,000 Sale of Balance Flats (SBF), Build-to-Order (BTO) flats up for sale

4,900 BTO units in 8 projects across 5 non-mature estates (Choa Chu Kang, Hougang, Jurong West, Sembawang and Woodlands) will be offered; 3,100 SBF flats are spread across 26 mature and non-mature estates. For the BTO projects, Keat Hong Crest will offer 682 three-room to five-room flats priced at $140,000 -$308,000. In Hougang, Golden Mint will offer 292 studio apartments priced from $76,000; Hougang Crimson will have 314 three-room and four-room units priced at $171,000 – $268,000. In Jurong, Spring Haven@Jurong offers 478 two-room to four-room flats priced at $94,000 – $260,000. In Sembawang, three projects were launched namely EastBank @ Canberra, EastBrook @ Canberra and EastWave@Canberra where total of 2,116 two-room to five-room units are up for sale at $82,000 – $314,000. The final project in the latest BTO exercise is Woodlands Pasture I and II offers 1,018 three-room to five-room flats from $133,000 to $276,000. SBF flat prices vary from a $145,000 two-room flat in Pasir Ris to a $760,000 executive flat in Queenstown alongside with 3 new updates. First, the Parenthood Priority Scheme is now extended to married couples expecting their first child and are buying their first flat. Secondly, HDB has doubled the quota of two- and three-room flats in non-mature estates. Thirdly, HDB will set aside half the studio apartments from its launches for elderly buyers who wish to downsize from their current home nearby or to be near their married children.

(Source: Business Times)

Developers upbeat for Executive Condominiums (EC)

The healthy participation rate and the robust competition among the top bidders signify that developers are still upbeat towards the EC market. The range of bids was quite tight, with the highest bid being only 24% above the lowest. A 99-year EC site in Anchorvale Crescent drew a top bid of $330.65 per square foot per plot ratio (psf ppr) from Qingjian Realty (South Pacific) Group. Another Woodlands EC site plot concluded with a top bid of $341.21 psf ppr amongst seven bids. Qingjian’s bid was 3.2% higher than the next highest offer of $320.45 psf ppr placed by City Developments unit Bellevue Properties. Kheng Leong partnered Low Keng Huat to bid at $316.68 psf ppr. Frasers Centrepoint’s unit FCL Place and Hytech Builders joined forces, offering $308.30 psf ppr. The two other bids were from EL Development ($275.75 psf ppr) and Teambuild Land unit Ecco Development, which offered $266.59 psf ppr for the site, which can yield an estimated 690 units. The $331 psf ppr top bid surpassed the $296.48 psf ppr for the Sengkang West Way site last November by 11.5%. With Qingjian’s breakeven cost at about $650 psf, the average selling price for the project could be in the $730-780 psf range. It will be launching its next EC development, the 512-unit Ecopolitan, at Punggol Way next month. The group has two earlier EC projects – RiverParc Residence and Waterbay – both of which are under construction in Punggol, and fully sold.

(Source: Business Times)

Johor property tax hike unlikely to affect demand from S’pore

Despite higher taxes, properties in Johor will remain a choice investment for Singaporeans. Demand for the 147 new homes at Afiniti Residences in Medini Iskandar Malaysia has not been affected. As of 31 May, the developer had received another 1,570 purchase applications, 60% come from Malaysians, 32% from Singaporeans, 8% from Indonesia, South Korea and the UK. Units at Afiniti Residences are priced at RM 850 to RM 1,000 psf or at least RM 500,000 (S$202,000) for a 484-square-feet studio apartment. In Johor, foreigners can only buy properties above RM 500,000 and selected buyers at the balloting session must put down a RM 30,000 deposit.

(Source: CNA)

Significant drop in sub-sales of private residential properties

The level of speculative activities has dropped substantially in the past few years, sub-sales of private residential properties hit a six-year low of 4.5% in Q12013. The government’s increase of tax and holding period have helped bring down sub-sales over the last 3 years. The average holding period of private homes has increased from 6 years to 10 years. The sub-sales number is expected to remain low, unless there is a severe economic downturn forcing owners to sell.

Resale non-landed private property prices in the city area dropped 0.5 % over the previous month, those in the city fringes declined 0.4%, while resale suburban private prices increased 0.3 %. Rental prices for non-landed private residential in May slipped 0.6% from April. Cash-Over-Valuation (COV) for HDB flats dropped S$4,000 to reach S$26,000 – the lowest level since July 2012. HDB resale prices dropped 0.1% in May. 1,300 HDB resale transactions are expected to be closed in May, a 10% drop compared to April, 35% lower compared to the same period last year. Overall HDB median rents dropped by S$50 to end at S$2,350 in May 2013, after remaining constant at S$2,400 since June 2012.

(Source: CNA)

GCB transactions making a comeback

Knight Frank is selling a freehold bungalow in Peel Road in the Ridout Park GCB Area. It has also sold a bungalow at 82 Meyer Road for $30.7 million via public tender, with the price working out to $1,203 psf on its 25,525 sq ft land area. Simon Cheong, the boss of high-end developer SC Global, is selling his home in Cornwall Gardens for $42.5 million which works out to $2,051 psf on the land area of 20,719 sqft. Other recent transactions in GCB Areas include a property in Chancery Lane, which changed hands for $28.5 million or $1,378 psf on about 20,688 sq ft, a nearby bungalow in Bukit Tunggal Road fetched $17.5 million or $1,664 psf on land area of 10,516 sq ft. In April, a bungalow in Brizay Park was sold for $24.5 million or $1,017 psf on land area of 24,090 sq ft, a property in Oei Tiong Ham Park traded at $20 million or $1,445 psf on land area of 13,843 sq ft. A negotiation is underway for Wing Tai chairman Cheng Wai Keung’s 84,839-sq-ft site in Nassim Road, with prices likely between $2,500 and $3,000 psf.

Commercial

Commercial site in CBD up for sale

The land parcel of 0.8ha was made available for sale through the Reserve List system on 19 December 2012 at minimum bidding price of $623,730,000. The land parcel is strategically located at Cecil Street / Telok Ayer Street near to Tanjong Pagar MRT Station. It is allowed to be developed up to 50 storey height, has an office zoning with a potential GFA of 77,000 square meters.

(Source: SBR)

CBD’s office vacancy rate dropped to 10.2%

Office vacancy rate fell to 10.2% in 1Q2013, the lowest level in more than three years, due to strong demand from occupiers. Despite the weaker business outlook, improving market sentiment is likely to limit the decline in office rents throughout 2013 to less than 5%.

(Source: SBR)

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