Residential

EC scheme to be changed

The executive condominium (EC) scheme has been changed by the Ministry of National Development to bring the terms for ECs closer to public housing terms and to support a stable EC market. Three changes will be made following a review of feedback from the Our Singapore Conversation, including the adjustment of the Mortgage Servicing Ratio (MSR) which is for EC housing loans from financial institutions for units bought directly from developers. The MSR will now be capped at 30 percent of gross monthly income and will apply to purchases with the option-to-purchase is granted from December 10, 2013 onwards. This has been seen as an effective move to cool demand for ECs, as the MSR did not apply to ECs previously.

(Source: Business Times)

2014 likely to be quieter year for property market

Compared with year 2013 which had policies to cool the property market and a number of firsts in public housing, 2014 may be a quieter year. According to consultants, it is unlikely that the government will roll out any new policies in 2014, despite some possible tweaking of existing measures. Chua Yang Liang, head of research, South-east Asia, at Jones Lang LaSalle said that any possible policy changes will depend on the pace of economic growth and the response from the property market. He predicted that the government would be comfortable with a healthy long-term growth rate of 1-2 percent a quarter on the Property Price Index.

(Source: Business Times)

Eunosville and Jervois Gardens launched for collective sale

After its maiden collective sales attempt was thwarted by the introduction of the total debt servicing ratio (TDSR) framework, the 330-unit Eunosville opposite Eunos MRT Station is now back on the market. In addition, Jervois Gardens would join Eunosville to be launched for collective sale by tender. Similar to its collective sale attempt in June, Eunosville is being put for a minimum price of $688 million or about $806 psf ppr on the potential gross floor area (GFA), which includes estimated differential premiums of $163 million payable to top up the site’s lease from a balance term of around 74 years to 99 years and intensification of use.

(Source: Business Times)

Marina Bay to become the new financial and residential district

According to the recent Urban Redevelopment Authority (URA) Draft Master Plan 2013, Marina Bay would soon become the new financial and residential district in the urban city centre. The Marina Bay Financial Centre (MBFC) with its second phase completed earlier this year is the only development on the new Marina Bay site as of now. MBFC includes two residential and three commercial buildings, and is designed as a landmark development that artistically merges the older part of the business district with future developments by Marina Bay to create a strong profile on the Singapore skyline.

(Source: Business Times)

Commercial

Far East is top bidder for third site in Gambas Avenue

Following its acquiring of Parcel 1 and Parcel 2, property giant Far East Organization has continued to win the bid for the third plot of land in Gambas Avenue in the Woodlands/Sembawang area at a state tender. The group’s unit Grow-Tech Properties’ winning bid for the third plot was $102.20 psf ppr, which is lower than the $137.90 psf ppr it paid for Parcel 1 and $127.19 psf ppr for Parcel 2 at an Urban Redevelopment Authority tender in October. As Parcel 2 is beside Parcel 3, the group is expected to do a combined project for both plots. Far East is planning to include a range of industrial product types – such as ramp-up, flatted and terrace factories – for sale and lease for all three sites. Parcel 4, currently on the reserve list, is also highly expected to be launched.

(Source: Business Times)

Atrium shop lot at Sim Lim Square on sale

The only atrium shop space of 2,756 sq ft on the ground floor of Sim Lim Square is now launched for sale by expression of interest by CBRE, the sole marketing agent for the sale. CBRE is reported to expect strong offers in excess of $48 million or $17,417 psf for the shop lot. Previously in March, a ground floor shop located along the second corridor was transacted at $10,719 psf. As Sim Lim Square shops are under the commercial property zoning, both locals and foreigners are eligible to purchase it with no additional buyers’ stamp duty imposed.

(Source: Business Times)

Stable outlook for S-Reits in 2014

As Moody’s 13 rated S-Reits are expected to grow by 4 percent along with a larger asset base and rent increases on existing properties, the outlook for Singapore real estate investment trust sector is stable for 2014. Overall occupancy and rental rates are expected to remain stable, but the warehousing segment may have weakness from a spike in the supply of new warehouse space, although 40 percent has been pre-committed by end-users and thus may mitigate the impact of the enlarged supply. Office landlords are expected to have more pricing power due to a limited supply of new office space in the core central business district (CBD).

(Source: Business Times)

Industrial segment the hardest hit in S-Reit fall

According to MayBank Kim Eng’s latest report, the industrial segment was the hardest hit in the recent decline of the Singapore-listed real estate investment trust market. The industrial segment decreased 3.4 percent over five days, while the overall S-Reit market fell 2.7 percent. In addition, healthcare Reits decreased 3.2 percent, both office and retail Reits decreased 2.8 percent, and hospitality Reits decreased 0.4 percent. The increase in industrial property prices over the past four years to reach record levels since the global financial crisis of 2007-2008 is probably an unintended consequence.

(Source: Business Times)

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