Singapore Property News This Week #119

Residential

HDB pilots new multi-generation family flats

According to the Ministry of National Development and the Housing & Development Board, the government is piloting a new type of flat to house multi-generation families, the 3Gen flats. 3Gen flats will have an internal floor area of 115 sq m, four bedrooms and three bathrooms, and are slightly bigger than HDB five-room flats at 110 sq m. Applicants for 3Gen flats must form a multi-generation family with a married or courting couple and their parents. Subletting of rooms is not allowed during the five-year minimum-occupation period.

(Source: Business Times)

PRs may go after private homes following resale flat curbs

Permanent residents (PRs) are reported to be likely to have more demand for rental and private residential markets in the next three years, following tighter housing loan limits and restrictions on PRs for HDB flat purchases. Among the latest restrictions is a three-year wait before newly-minted PRs can buy a resale flat. According to SLP International, the demand for private housing is expected to increase, and hence HDB resale volumes are predicted to decrease between 15 and 25 percent in the next one or two quarters. The Urban Redevelopment Authority (URA) data shows a record 82,500 private homes are expected to make their way to the market by 2016, while the government intends to take in 30,000 PRs a year to maintain the stable number of PRs. However, PRs may be deterred from buying private residential properties due to a 5 percent additional buyer’s stamp duty (ABSD) on their first property purchase; while other PRs who cannot afford the high prices of private properties will go into the rental market.

(Source: Business Times)

New PRs likely to buy private homes under $1m

Property consultants claim that PRs, who hold their residency status for less than three years and are blocked from buying HDB resale flat, are likely to eye private homes under $1 million. Despite this, it is unlikely that the number of private-home transactions will rise significantly. The HDB resale market recorded 25,094 transactions in 2012, with a fifth of resale flats bought by PRs.

(Source: Business Times)

Heeton looking for single buyer for iLiv@Grange

Heeton Holdings is looking for a single buyer for all 30 units of its project iLiv@Grange, which is expected to receive Temporary Occupation Permit (TOP) in October. Heeton Holdings is seeking $2,200-$2,300 psf for an en bloc sale of the 16-storey tower, which translates to $129 million to $135 million based on the freehold District 10 development’s total saleable area of about 58,500 sq ft. Heeton bought the 20,325 sq ft site for $72.8 million, or $1,700-plus psf ppr, in 2007. But if Heeton cannot secure an attractive price for an en bloc sale, it may proceed to sell the units individually within two years after TOP under Qualifying Certificate conditions. Heeton’s breakeven cost for the project is estimated to be around $2,000 to 2,200 psf.

(Source: Business Times)

Commercial

Development charge expected to go up

Due to higher land prices for the past six months, development charges (DC) from September onwards are expected to go up with a possible conservative pace of hikes with the objective of promoting a stable property markets. On average, DC rates are predicted to increase by 0 to 5 percent for commercial sites. As for non-landed residential use, DC rates predictions vary: 0 to 3 per cent for Colliers, 3 to 5 percent for Jones Lang LaSalle and 10 to 20 per cent for CBRE. Regarding industrial use, DC rates could rise by 10 to 15 percent according to CBRE, sub-one percent for JLL and 0 to 3 percent for Colliers. DC rates are considered the government’s reading of property values as they could affect redevelopment sites when they are paid to the state in exchange for the right to enhance the use or build bigger projects on the sites. DC rates are revised every six months, depending on current market values.

(Source: Business Times)

FCL chief sees bottom for office rents

Frasers Centrepoint Ltd (FCL) chief executive Lim Ee Seng said that office rents could hit a bottom while suburban malls and hospitality remain resilient. FCL has benefited from stable rentals from suburban mall space of 6.8 milion sq ft, even during the SARS outbreak and global financial crisis. Hospitality is also considered stable by FLC, which is looking into a possible listing of a hospitality Reit.

(Source: Business Times)

Four industrial sites up for tender

Four industrial sites – two in Gambas Crescent in Sembawang/Woodlands area and two in Tuas South – have been released by the government for tender, the first four plots under the confirmed list of 2013 H2 Industrial Government Land Sale (GLS) Programme. Property consultants expect the Gambas sites, which are located 700 metres from Sembawang MRT station, next to the future North-South highway and mature Woodlands and Senoko industrial estate with residential catchment beneficial to businesses, to have higher winning bids than the Tuas sites. In addition, the 30-year leasehold Gambas sites are zoned for Business 1 use on this year’s Industrial GLS Programme. The zoning typically allows light and clean industrial use, and strata subdivision, with the minimum strata size set at 150 sq m gross floor area.

(Source: Business Times)

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