Residential

Reserve-list plot in Geylang draws interest

Two 99-year private housing sites in Geylang will be launched by the government this December.  One of them, a plot along Geylang East Avenue 1 next to Aljunied MRT Station and on the government’s reserve list, is expected to draw more interest from developers. The successful applicant has agreed to bid at least $95 million or $505.28 psf ppr at tender for the site. The site is 0.62 hectare in size and is expected to have 215 units. It is reported that the bite-sized investment quantum has made it more attractive to developers, compared with a larger site in the vicinity that will also be launched for tender by the government later this month through the confirmed list. This larger site, which fronts Sims Drive, Aljunied Road and the Pan Island Expressway, has an area of 2.4 hectares and will generate an estimated 900 private homes.

(Source: Business Times)

HDB construction to taper off in 2014

According to Minister for National Development Khaw Boon Wan, the massive construction of HDB flats for the past three years will taper off in a measured way to allow the market to gradually adjust from 2014, as balance is restored between demand and supply in the market. This announcement follows the latest launch of 8,952 Build-to-Order (BTO) and Sale of Balance Flats (SBF) units last month drawing to a close, which is the largest single launch in the history of the HDB compared with the previous mark set in September 2011 of 8,262 units.

(Source: Business Times)

Tiong Seng secures $204.5m HDB deal

Construction and property development group Tiong Seng Holdings has secured a $204.5 million contract win from the Housing and Development Board (HDB) for a public housing project at Woodlands Crescent and Woodlands Rise, bringing its order book currently to $1.28 billion. The company will construct 11 blocks of 14 or 16-storey residential buildings, two blocks of multi-storey carpark, commercial and community facilities, a precinct pavilion, and an ESS or electrical substation. The deal is through Tiong Seng Holdings’ subsidiary Tiong Seng Contractors.

(Source: Business Times)

Government’s cooling measures show results

The government’s cooling measures to the residential property market are reported to show significant impacts. The Monetary Authority of Singapore Financial Stability Review 2013 said that such measures have dampened momentum in the market. Transaction volumes have decreased, new home loan sales have contracted, and loan-to-value (LTV) ratios have improved. However, the government is vigilant because price levels still remain high. For example, despite slower sales, tender prices by developers are high – two adjacent plots at Upper Serangoon View got eight bids each in its tender last month, with foreign developers continuing to outbid local players.

(Source: Business Times)

MND to impose cap on HDB flats for foreigners

The Ministry of National Development (MND) is reported to be imposing a cap on the number of flats that can be sublet to foreigners in each Housing and Development Board block (excluding Malaysians, due to their close cultural and historical similarities), but the appropriate cap has yet to be decided. According to Minister of National Development Khaw Boon Wan in his blog post titled “Preventing Foreigner Enclaves”, he said that he was mindful of the need to balance the impact on people relying on subletting for additional income, especially the elderly.

(Source: Business Times)

Median COV for resale flats lowest in 4 years

According to flash estimates from the Singapore Real Estate Exchange (SRX), median cash-over-valuations (COVs) for resale HDB flats have fallen to their lowest in more than four years, showing that the market for HDB resale flats continued to weaken. Median COVs decreased by 30.1 percent to $8,000 in November, compared with $11,444 the month before – the first time it fell below $10,000 since July 2009. COVs have also been reported to consistently falling throughout 2013 from a peak of $35,000 in January.

(Source: Business Times)

Allgreen launches SkySuites@Anson

Allgreen Properties has launched sales for its 99-year leasehold 72-storey SkySuites@Anson project in Tanjong Pagar, with prices starting from $968,000. The development, expected to be completed in 2015, will have 360 one to three-bedroom units of between 365 sq ft and 1,140 sq ft. Compared with asking prices of $1.3-1.8 million for new one-room homes in Tanjong Pagar and an average of between $1.2 million and $1.3 million for a similar resale unit in the area, the $968,000 price tag for a one-bedroom apartment at SkySuites@Anson is considered attractive to buyers.

(Source: Business Times)

Sales for Kaleido terrace houses starts on Jan 4

Sales for Kaleido, a 14-unit cluster of freehold terrace houses along Lorong K Telok Kurau, will start on Jan 4, with an average price of around $1,000 psf. Each unit has three storeys, two basement carpark lots, five bedrooms, living and dining rooms, and a lift. The units have high ceilings and rectangular layouts, with their sizes between 3,100 sq ft to 3,498 sq ft. Prices start at $3.3 million in absolute terms. The marketer for the project, Knight Frank opened the showflat for a private preview this weekend. The project is by Amerald Land, a wholly owned subsidiary of Precise Development. Amerald Land is also behind the 16-unit Shiro freehold development in Lorong H Telok Kurau.

(Source: Business Times)

Commercial

Sungei Kadut property to be sold for $8.65m

Listed outdoor furnishings specialist Sitra Holdings has obtained JTC approval to sell its Sungei Kadut property to World Furnishing Hub Pte Ltd (WFHPL) for $8.65 million. A sale and purchase agreement has been entered on Dec 2. WFHPL is a special-purpose vehicle jointly owned by tile specialist Hafary Holdings, two of its substantial shareholders and Sitra itself. WFHPL plans to redevelop the site into a property with a market value of about $55 million, and a gross floor area of about 300,000 sq ft, of which 250,000 sq ft for industrial use and the balance for commercial purposes.

(Source: Business Times)

New surveys shows conflicting views towards Singapore property market

According to the latest real estate forecast jointly published by the Urban Land Institute (ULI) and PricewaterhouseCoopers LLP (PwC), Singapore has fallen four spots to seventh place in terms of investment appeal, and dropping six spots to ninth position in terms of the development prospects front. This is the first time Singapore has fallen out of the top five spots since the report started in 2007. However, the Emerging Trends in Real Estate Asia Pacific 2014, a property forecast survey of over 250 real estate professionals, showed that Singapore is still a favoured market in Asia of considerable investment and development appeal, due to its vibrant economic growth and strong emphasis on community livability. According to PwC Singapore, investing in Singapore real estate is more expensive now due to expected higher interest rates, compressed cap rates and tighter regulations, yet there may still be room for better return with low vacancy rates and more potential for higher rentals.

(Source: Business Times)

JTC amends industrial property rules

JTC has now required industrialists and third-party facility providers such as property funds/developers who own industrial properties on JTC-leased sites to hold these properties for a longer period before they may sell them. In addition, JTC has extended the minimum occupation period for anchor tenants of third-party facility providers. With such amendments taking effect on Nov 5, JTC aims to safeguard Singapore’s scarce industrial land resources for optimal use by genuine industrialists and reduce property speculation. JTC also aims to ensure the lessees allocated for its limited industrial land in the lease contract based on their proposed business plans remain committed to the land for a sustained and reasonable period of time.

(Source: Business Times)

Join Our Weekly Newsletter

“What you must know before buying Singapore property…”

Sign up to get our free weekly newsletter with the best ideas and market updates from Singapore property experts, property transaction data and deals. Enter your email below to get our FREE Beginner's Guide and Property Buyer’s Checklist as a bonus. Save yourself thousands of dollars and lots of heartache!

Thanks for signing up! Please check your email to download your reports.