Singapore Property News This Week #109

Residential

Rising interest in city-fringe homes cause May sales of private homes to increase

With the rising interest in city-fringe homes, the sales of new private homes for May increased by 5.4 percent with a total of 1,455 units sold, compared to the 50 percent drop of the previous month. 41.4 percent of the sales were taken by the Rest of Central Region (RCR). In fact, transactions within RCR have been on the rise since Q3 of 2012. In addition, RCR projects such as Corals at Keppel Bay, KAP Residences, and Bartley Ridge accounted for the top five sellers by volume for May. It was reported that the rise in sales of RCR was caused by the high selling price of mass-market homes in the Outside Central Region and the narrowing price gap between RCR and OCR homes. On the other end, the high-end market was bleak with only 125 out of 144 units launched, the lowest monthly sales recorded for the region in 2013.

(Source: Business Times)

Government to release land parcels for houses and commercial use

The government will release five sites that can yield 3,600 private and executive condominium (EC) housing units as well as commercial development. Four of the five sites have been confirmed under the Government Land Sales programme list. They consist of two EC sites and Punggol Drive and Yuan Ching Road, a residential plot at Mount Sophia and a mixed-use commercial and residential plot at Yishun Central 1. All four sites have been or will be launched for sale within next week. The fifth site, a mixed-use site at Meyappa Chettiar Road in Potong Pasir, will be on the reserve list next week.

(Source: Business Times)

Residential site on Faber Walk draws 18 bids at tender close

A 99-year leasehold 162,808 sq ft residential site at Faber Walk drew 18 bids at the close of its tender. The top bid was $156.7 million from Aspial Corp’s World Class Land, or $687.42 per square foot per plot ratio (psf ppr) for the site. This was closely followed by Keng Hoe Development’s bid of $155 million and Greatview Development with $153.8 million. Consultants said that the price difference between the top bid and second and third highest bidders is a mere 1.1 per cent and 1.8 per cent showed confidence of developers. Other factors could be the site’s exclusive location and a possible limited supply of vacant land parcels within the area for development in the future.

(Source: Business Times)

Forestville EC is to be launched

The Forestville executive condominium (EC) project will finally launch for sale this week, six months from its intended date, due to delay in contravening regulations. Hao Yuan Investment is the developer for the project. Hao Yuan had launched the 653-unit project in Woodlands for balloting on Dec 28, 2012 without having obtained the necessary approvals for adjustments made to private enclosed spaces (PES) in some units. Following this, Controller of Housing (COH) had instructed Hao Yuan to stop selling the units, hence potential buyers could only make an expression of interest instead. COH is now satisfied that necessary approvals for the project have been given. Public sales will be open next Friday.

(Source: Business Times)

CapitaLand bids $366m for Coronation Road site, topping 11 others

Capitaland’s Athens Residential Development bid higher than 11 others at the close of tender for the 99-year leasehold site at Coronation Road. CapitaLand bid $366 million or $908.17 per square foot of land, compared to the closet rival’s bid by Far East Organization unit Astor Properties at $313.3 million, or $777.49 psf of land. CapitaLand Singapore claimed that it plans to develop a prestigious landed development comprising semi-detached houses and bungalows on the site, which will be ready for launch around Q2 of 2014. The top bid was 17 per cent higher than the second highest bid was reported to illustrate CapitaLand’s confidence in this market.

(Source: Business Times)

Roxy-Pac buys freehold apartment block for $136mil

Roxy-Pacific Holdings was reported to have acquired the freehold Yi Mei Garden in Tampines Road through a collective sale for $136 million, hence $856 per square foot per plot ratio (psf ppr) including a development charge of $4 million-plus. In a statutory filing with Singapore Exchange, Roxy-Pacific said the acquisition is subject to approval of the collective sale by the Strate Titles Board (STB) or the High Court. Yi Mei Garden is a 14-storey residential block of 44 apartments and four penthouses and is located 600 meters from Kovan MRT Station. Roxy-Pacific plans to redevelop the site into a condominium project with 200 units.

(Source: Business Times)

Eunosville up for collective sale at reserve price of $688mil

Located opposite Eunos MRT Station, Eunosville has a land area of 376,712 sq ft and is planned for residential use under Master Plan 2008. Eunosville is now up for collective sale at a reserve price of $688 million. If the sale is successful, it will boost up this year’s tally of en bloc sales and works out to $799 per square foot of potential gross floor area including an estimated sum of $155 million payable to the state regarding the site’s lease from a balance term of around 74.5 to 99 years and intensifying the site’s use. The reserve price for Eunosville is expected to help Eunosville set the record to become the second largest ex-HUDC (Housing and Urban Development Company) estate sold collectively in absolute price terms as well as the largest en bloc sale in 6 years. Jones Lang LaSalle consulting group is marketing Eunosville’s collective sale through a tender exercise until July 24.

(Source: Business Times)

Commercial

Yoma’s acquisition of Yangon site delayed due to bureaucratic discussions

Bureaucratic discussions have delayed Yoma Strategic Holdings’ 80 percent acquision of a 10-acre plot of land in Yangon. The land acquisition was reported to be US$81.28 million and it would now be extended until Dec 31 this year. Serge Pun & Associates, vendor of the site, was still discussing with authorities regarding the new leasehold title of the land before the land deal could proceed. Yoma announced that it would develop the former site of the Yangon railway headquarters into a landmark hotel, condominium and commercial development costing between US$330 million and US$350 million. On top of that, Yoma had also signed a non-legally binding agreement with Hongkong and Shanghai Hotels to jointly redevelop the former Burma Railway Company building into a Peninsula Hotel.

(Source: Business Time)

22 industrial plots to be released in second half of 2013

The Ministry of Trade and Industry launched the Industrial Government Land Sales (IGLS) programme for the latter six months of the year. Under this programme, the government will make 22 plots of industrial land available to moderate land prices and provide space for industrial end-users. 19 sites will be on confirmed list and three will be on reserve list. The 22 sites have a total area of 22.84 hectares. 14 confirmed plots are in Tuas, 4 other confirmed plots in Woodlands and one at Tai Seng Street. The three reserve list sites are at Woodlands Avenue 12, Tuas Bay Close and Gambas Crescent.

(Source: Business Times)

Q2 property investment sales drop by 10%

Investment sales of property continued to drop this quarter with the tally for the second quarter is around $4.5 billion and the final number expected to be $4.9-5 billion. This is 10 percent lower than that of Q1’s $5.6 billion, which was a big drop from $8.3 billion and $9.4 billion in Q4 and Q3 last year respectively. Q3 and Q4 of last year witness huge transactions such as the flotation of Far East Hospitality Trust worth $2.1 billion, the $825 million sale of a half-stake in Nex mall in Serangoon and DBS’ $1.035 billion purchase of 30 percent stake in Marina Bay Financial Centre Tower 3. On the other hand, investment sales for this year is pretty active but relatively smaller.

(Source: Business Times)

Red House to become commercial-residential project in 2016

Red House and its five adjacent shophouses in Katong, collectively known as the Red House, are to be reborn as an integrated commercial and residential project in 2016 and managed by Muis’ investment arm, Warees Investments. Red House will include a new five-storey residential block with 42 units of between 441 and 1,206 sq ft, priced from $1,499 psf. The commercial component of the new development will be the ground floor units at the six conserved shophouses. One of the units will be used as a bakery to reserve its heritage as the place of the former Katong Bakery and Confectionary. Warees was reported to spend much time and effort to improve returns from the properties because time has taken its toll on the six shophouses.

(Source: Business Times)

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