Residential

Strong top bid for Jurong West EC site

Despite the latest rule changes affecting the executive condo market, an EC site in Jurong West drew 12 bids with the highest bid at $381.81 psf ppr from a Koh Brothers-Heeton Homes partnership. The second highest bid was only 0.45 percent lower, from a joint venture between City Developments and TID. This highest bid is near the top end of the predicted range at the site launch in late October. This could reflect that demand for ECs would remain strong. Despite the optimistic top bids, the bottom half of the bids were generally cautious and below expectations.

(Source: Business Times)

The Premiere sellers not likely to have profitable resale prices

Residents at The Premiere who think that their units’ better location and fittings would help them with a good resale price may not get what they hope, even though these units in the five-year-old pilot Design, Build and Sell Scheme (DBSS) project in Tampines Avenue 6 are ripe for the resale market. The asking prices for five-room units, available in 1,173 sq ft, 1,184 sq ft and 1,227 sq ft configurations, are between $720,000 and $850,000. A scan of the advertisements on marketing platforms shows that these sellers are asking for higher prices than consultants think the market will accept.

(Source: Business Times)

Hillford’s 60-year lease an obstacle to investors

Although the first retirement resort in Singapore – The Hillford – could offer potential buyers a chance to buy into the highly desired Bukit Timah address cheaply, its 60-year leasehold could limit its demand. There is no age limit on potential buyers for the project. It includes 281 units, with a mix of one-, two- and two-bedroom dual-key units equipped with built-in elder-friendly features. Indicative prices for its units start from $980 psf or about $388,000 for a one-bedroom unit, $498,000 for a two-bedroom unit and $648,000 for a two-bedroom dual-key unit. Key pull factors for the project include its attractive quantum and location. However, its 60-year leasehold cap could make it harder for investors to finance the property since it may be harder to get bank loans for a shorter lease, and also harder for investors to unload the property in the resale market due to its limited remaining tenure.

(Source: Business Times)

HDB median value down for first time since Q4 2009

Data from the Singapore Real Estate Exchange (SRX) shows that the median price for a Housing and Development Board (HDB) flat has decreased for the first time since Q4 2009. The median valuation for an HDB unit in Q4 2013 was $435,000, a 0.7 percent decrease from Q3 2013. Jeremy Lee, co-founder of StreetSine, the company behind SRX said that this decline is the first one they registered after the global financial crisis, and is pulled down by the lowering of the COV (cash over valuation) and overall resale prices coming down. Ong Kah Seng, director at R’ST Research said that median HDB valuation prices had been expected to fall in end of 2013, because valuations depend on comparable recent flat sales and resale flat prices have trended downwards since H2 2013.

(Source: Business Times)

Commercial

Singapore properties draw $4b foreign investments

A report from property consultancy DTZ shows that Singapore properties have drawn $4.1 billion from foreign investors in 2013, 30 percent higher than 2012. Nearly 90 per cent of these foreign investments are from Asia, especially from China with $2.9 billion from Chinese investors. Notable deals involving China players include Bright Ruby Resources’ purchase of Grand Park Orchard for $1.2 billion, Kingsford Development’s winning of two adjacent private residential sites at Upper Serangoon View, and Qingjian Realty (South Pacific) Group’s acquisition of two executive condominium sites at Woodlands Avenue 5/Avenue 6 and Anchorvale Crescent. In addition, Japan investors contributed another $468 million.

(Source: Business Times)

Kim Chuan Drive industrial site up for sale

A freehold 34,729-sq-ft industrial site at Kim Chuan Drive is up for sale by tender at an indicative price range from $44 million to $46 million. The plot is located at 47/A to 65/A Kim Chuan Drive, with a three-storey development comprising 10 shophouses and 10 homes. It is zoned for Business-2 development with a plot ratio of 2.5, making heavy industrial use possible on the plot. The plot can be redeveloped into a factory or warehouse of 49 strata units of 1,500 sq ft in size each.

(Source: Business Times)

Shop unit price to moderate this year

According to analysts, the price growth for strata-titled retail property is likely to moderate this year, after its spiraling for the past two years with new records set. This is because the total debt servicing ratio (TDSR) curbed investors’ ability to purchase. However, as investors are still interested in shopping space which has been untouched by the property cooling measures, the number of sales transactions may hold up to the levels of last year. According to Savills Singapore, prices for strata-titled retail property increased 11.7 percent in 2013, after a 10.5 percent increase in 2012, but much of the price increase took place before the TDSR was introduced. DTZ said that there were 974 transactions in 2013, a 30 percent decrease from 2012.

(Source: Business Times)

Eminent Plaza and next-door Lavender Food Square to be redeveloped

Eminent Plaza and the next-door Lavender Food Square are reported to be torn down and redeveloped later this year by two associated companies of Tong Eng Group into a 16-storey project with office and retail units. Some of these units would then be up for sale. The two associated companies of Tong Eng Group built the development back in the 1980s. The new development called ARC 380 will have 167 strata units consisting of 23 retail units on ground level and 144 office units on levels five to level 16. 71 units will be released for sales (52 office units, 19 retail units). Hawkers at the famous Lavender Food Square will move out in six to nine months.

(Source: Business Times)

Long House Food Centre sold for $45.2m

Long House Food Centre along Upper Thomson Road has been sold for $45.2 million to TEE Ventures, a subsidiary of the mainboard-listed TEE Land, in a deal brokered by Knight Frank. A family-held asset, Long House is on a 1,575 square metre freehold site designated for commercial and residential use under the 2008 Master Plan. TEE Land is reported to redevelop the property into a commercial-cum-residential development.

(Source: Business Times)

A makeover for TripleOne Somerset

After its acquisition of TripleOne Somerset for $970 million last month, a consortium led by retail mall veteran Pua Seck Guan is planning to spend $150 million to give the property a makeover. This includes increasing retail offerings, improving the quality of the 17-storey building’s office towers, and a possible creation of an underground pedestrian link between the building and Somerset MRT. TripleOne Somerset has two office towers and two floors of retail space, with a total gross floor area of 766,550 square feet and an annual net property income at about $40 million.

(Source: Business Times)

Industrial rents to continue upward trend in 2014

Property consultancy DTZ said that industrial rent would rise in 2014, continuing its upward trend since Q4 2013. This trend is attributed to an uptick expected in manufacturing activity, and a moderate supply of available space this year. The manufacturing sector grew 3.5 percent year- on-year in Q4 2013, and is expected to gain further this year. The rental market for industrial real estate also mostly grew in line with the increased manufacturing activity.

(Source: Business Times)

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