Singapore Property News This Week #11

RESIDENTIAL

Sales update for Seastrand, Woodhaven, and Jool Suites

In Pasir Ris, 232 out of the 269 released units at the 475-unit Seastrand condo project have been sold at an average of $895 psf. At Woodlands, 202 out of the 242 released units in the 337-unit Woodhaven condo project have been sold at an average of $957 psf. Over at Sing Joo Walk, around 18 units have been sold in the 52-unit Jool Suites project at an average price of $1,500 psf.

About one-quarter of 748-unit euHabitat sold at the preview

At Jalan Eunos, 181 units were sold in the 99-year residential 748-unit euHabitat at a preview of the project. Located on a 444,000 sq ft site, the project consists of suites, condo apartments, SOHO units, and four-storey townhouses with a roof terrace and basement. A 538 sq ft one-bedroom suite starts from $541,000, 517 sq ft one-bedroom SOHO-styled apartment starts from $593,000, 1,012 sq ft two-bedroom condo apartment begins at $918,000, and 3,380 sq ft townhouses begins at $2.94 million. The developers will bring forth the official launch of the project to Aug 19 due to the positive responses from the preview.

6,488 sq ft redevelopment site at Geylang Road up for sale

A 99-year-leasehold 6,488 sq ft redevelopment site at 693 Geylang Road (Geylang Conservation area) is up for sale via a tender. The site, which has a gross plot ratio of 2.8, has a two-storey building that was a former association clubhouse sitting on it. Given future developments in the area, such as the implementation of Circle Line, Colliers International suggested that a successful buyer could develop the plot into a seven-storey residential project with 30 units of about 600 sq ft each. The tender for the site ends on September 6.

URA will implement new home marketing rules for developers after receiving feedback

Responding to respondents’ feedback from a public consultation that aims to help potential home buyers to make better decisions, URA will implement new rules that will change the way developers advertise and share information about residential projects. One of the feedback from respondents is asking URA to list the developers that breached provision under the HDBLA or HDR on the URA website. URA is finalizing the details for some of the proposals and will implement the changes by the end of the year.

Grand Tower sold at $88.5 million in a collective sale

Located at Moulmein Rise, 21,742 sq ft freehold Grand Tower was sold to 27MR Pte Ltd in a collective sale at $88.5 million (approximately $1,376 psf of potential GFA) with no DC payable. The 33-year-old site can be redeveloped into a high-rise apartment development that consists of over 70 apartments of 800 sq ft on average, and a maximum GFA of around 64,310 sq ft. The breakeven cost for the new development is around $1,900 psf to $2,000 psf. Current owners of the 28 apartments of around 1,873 sq ft will each receive around $3.16 million ($1,688 psf) on strata area from the sale.

COMMERCIAL

Wheelock’s net profit decreased 55.7% in Q2

Wheelock Properties (Singapore) reported a 55.7% year-on-year decrease in net profit to $37 million, and a 61.8% decline in revenue to $67.6 million in Q2. Wheelock’s H1 net profit improved by 33.3% to $89.4 million, whereas revenue decreased 40% to $170.4 million. Wheelock attributed the decrease in revenue in Q2 and H1 to the completion of Ardmore Two and Orchard View, and lower revenue generated by Scotts Square due to ongoing construction works. However, Wheelock Properties, which has began developing a showflat for its Ardmore Three Project, had an increase in revenue and profit from investments in Q2 and H1.

Singapore developers will be building more office space in suburban area as more companies shift operations away from downtown to cut costs

Suburban office space supply is estimated to increase to 920,000 sq ft in 2014, five times more than the 190,000 sq ft that is going to be finished this year, as more companies such as Credit Suisse plans to shift its operation away from downtown to reduce costs. By shifting its operation to One@Changi City, Credit Suisse will pay a rent of about $4 psf, which is about one-third the amount paid for its current location at downtown. Government data showed that rents in the CBD are 2.3 times more than those in the suburban areas.