Residential

November new home sales: buyers more selective on location and pricing

November’s sales figures for new private homes show that buyers are now more selective on location and attractive pricing. According to data from the Urban Redevelopment Authority (URA), developers moved 1,228 units (excluding executive condominiums) in November, which is a 15 percent increase from the figure of 1,070 in October. This translates to a take-up rate of 95 percent for the 1,293 new private homes launched in November. Since the total debt service ratio (TDSR) framework was introduced in late June, developers sold just 481 private homes in July, compared with 1,806 units in June. But November’s sold units prove that buyers are still having interest to attractively priced and well-located projects.

(Source: Business Times)

Five residential sites to be launched this month

Under the H2 2013 Government Land Sales Programme, five 99-year leasehold residential sites which are estimated to yield about 3,000 homes will be launched for sale this month. These sites are: two executive condominium (EC) sites at Choa Chu Kang Grove, a site at Yishun Ave 9, a plot at Geylang East Ave 1, and a site at Sims Drive. The two EC sites at Choa Chu Kang are about 177,120 sq ft each, with maximum gross floor area (GFA) of about 619,920 sq ft and would yield about 575 units each. These EC sites are the first to be launched after the latest measures including a cap on the mortgage servicing ratio at 30 per cent of gross monthly income, and the introduction of a resale levy for second-timer applicants buying EC units directly from developers.

(Source: Business Times)

TDSR: the game changer in 2013

Introduced in late June by the Monetary Authority of Singapore (MAS), the total debt servicing ratio (TDSR) framework applied to all property loans granted by financial institutions to individuals, and was reported to be a game changer for the property market in 2013. In July, just a month after the TDSR was introduced, private home sales declined from 1,806 units in June to only 481 in July, excluding executive condominiums (ECs). The number of homes launched also decreased to 557 in July from 1,768 units in June. Elaine Chow, head of research at Chesterton Singapore, said that compared with the series of cooling measures imposed previously, the TDSR single-handedly chilled the private residential market. Christine Li, head of research at OrangeTee, said that it was only after TDSR that developers started to reduce their selling prices.

(Source: Business Times)

HDB survey: residents support Sers renewal plan

The latest survey by HDB shows that residents strongly support the Selective En bloc Redevelopment Scheme (Sers), which is part of the government’s Estate Renewal Strategy for the older public housing estates. Sers allows residents to have an opportunity to move from their old flats to newer flats without having to move out of their familiar neighbourhood, which matches 99 percent of the surveyed households’ strong sense of belonging to their town/estate. The newer subsidised flats are equipped with modern facilities and fresh 99-year leases. Financial concessions are also given to residents to ease cash flow and facilitate relocation.

(Source: Business Times)

Government cuts down on land sales

The Ministry of National Development (MND) is scaling back the Government Land Sales (GLS) Programme for private housing, commercial and hotel sites for the first half of 2014 under weight of supply for a soft landing. The government will launch only 4,630 private homes  (including 2,165 executive condominiums) from its confirmed list in H1 2014, which is 22.3 percent lower than that of the current H2 2013, and is also the lowest half-yearly quantum since H1 2010 of 2,925 units. The confirmed list for H1 2014 would add to the existing large pipeline supply of about 97,400 private housing units (including ECs). In addition, supply on the reserve list will decrease 15.1 percent to 6,955 units (including 605 ECs) in H1 2014 from 8,195 units (inclusive of 535 ECs) as of now.

(Source: Business Times)

Older sites to steal limelight in H1 2014 GLS

Although Ministry of National Development (MND) introduced seven new sites on the confirmed and reserve lists for the H1 2014 Government Land Sales (GLS) Programme, older sites of H2 2013 slate are reported to steal the limelight. These sites include the highly anticipated 2.5-hectare land parcel at Prince Charles Crescent (Parcel B) for private condo. The land parcel can generate about 655 homes, and is next to Wing Tai’s The Crest condo project. As for EC sites, the land parcel in Choa Chu Kang Drive is likely to attract a higher number of bids due to the demand from upgraders living in the Choa Chu Kang area.

(Source: Business Times)

Commercial

Grade A CBD rents to rise in 2014

Although big office leasing deals this year are mostly in decentralised locations, activities in CBD area is set to rise due to very limited supply of future new projects outside the city next year. CBRE predicted that pre-leasing activity would be concentrated in higher-quality buildings, and Grade A CBD rents will grow. Particularly, the average monthly rental value for Grade A (CBD Core) offices will increase about 8 percent next year, followed by stronger growth of 10-plus percent in 2015, with limited new supply and a broad-based recovery in demand. On the other hand, this year is likely to end with a 2 percent rent increase in the average monthly rental value for Grade A (CBD Core) office space to $9.75 psf, following the value of only $9.55 psf in the first three quarters of 2013. CBRE’s Grade A (CBD Core) basket covers the best-quality office buildings in Raffles Place, Marina Bay and Marina Centre.

(Source: Business Times)

Office project in Woodlands Regional Centre up for tender

The first predominantly office project in the Woodlands Regional Centre has been launched by URA for tender. The winning bid for the project is widely predicted from only $500 psf ppr to $1,100 psf ppr. The project is on a 99-year leasehold site next to Causeway Point. It is reported that at least 90 percent or 629,602 sq ft of the 699,557 sq ft maximum gross floor area (GFA) for the site must be for offices, and a further minimum 5,382 sq ft must be for childcare centre use. The rest of GFA can be used for additional office or retail, food and beverage and/or entertainment, but residential use is not allowed.

(Source: Business Times)

Changi Airport’s Project Jewel costs $1.47b

Project Jewel, the mixed-use development aiming to boost Changi’s capacity and cement its position as a leading air hub, is reported to cost $1.47 billion including land costs and will be launched by end of 2018. The project is developed by Changi Airport Group (CAG) and CapitaMallsAsia (CMA). It will be constructed on the existing 3.5-hectare carpark site in front of Terminal 1 that has a lease term expiring in 2073. The multi-storey complex will span a total gross floor area of about 134,000 square metres, of which 17,000 sq m is for airport operations, 5,000 sq m for hotel space, 90,000 sq m for retail space and 22,000 sq m for attractions such as a large indoor garden and 40-metre waterfall. The net lettable area of the retail space is 53,500 sq m. Project Jewel adds a passenger handling capacity of three million to Changi’s current 66 million per year, and expands space in T1 for taxi bays and baggage claim.

(Source: Business Times)

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