138-unit West Coast development up for collective sale
956-year leasehold Hong Leong Garden Shopping Centre, which has an area of 150,816 sq ft, has been put up for collective sale. Marketing agent Credo Real Estate mentioned that the site can be expanded up to 164,298 sq ft, with a total GFA of around 262,877 sq ft. With the inclusion of land premium and DC, the current owners expect offers to fall between $160 million and $170 million ($752 to $794 psf ppr). The tender ends on September 19, 2.30pm.
Developers are pushing out more units at smaller sizes: Savills Singapore
A study by Savills Singapore shows that some developers have been launching more units than initially planned in the past few years on plots bought at state land tenders. The total number of private houses built on these plots will surpass GLS Programme’s estimation by approximately 11%. Savills also noticed that a number of the developing units are under 800 sq ft, or even 500 sq ft. For example, 47% out of the 118 units at Allgreen’s Suites at Handy Road are less than 800 sq ft. The tendency of developing smaller units is linked to developer’s need to keep lump sum home prices affordable amid high land prices.
While on average developers are building smaller, some are building larger units
While some developers are building about 50% more units than the number stated under the GLS Programme, some developers are building fewer units than what the GLS Programme had estimated. For instance, the 361-unit Thomson Grand does not have any one-bedder units; instead, the project incorporated strata terrace houses with area of 5,102 sq ft to 6,566 sq ft. The number of units developed for Thomson Grand is about 10% below the 400-unit potential supply for the site as stated under the GLS Programme.
Permai Court and Midlink Plaza up for tender sale
Freehold residential Permai Court at Kampong Bahru Road was put up for tender sale with an asking price between $20.5 million and $21 million. This price works out to about $982 psf ppr to $1,003 psf ppr, with the inclusion of approximate DC and the payable $2.26 million for the adjacent state land. When combined with the adjacent state land, the site will have a land area of approximately 8,009 sq ft and a total land size of approximately 10,033 sq ft. Over at the intersection between Middle Road and Queen Street, a nine-storey commercial building Midlink Plaza is put up for sale with expected price between $120 million and $130 million (approximately $1,292 psf to $1,399 psf). The building has a total GFA of 128,076 sq ft and currently houses 79 strata-titled retail and office units.
HDB and URA launched two private housing sites and two EC plots that can yield up to 1,885 units in total
HDB and URA put four residential sites—two 99-year leasehold sites for private housing and two for EC development – up for sale; the sites can yield around 1,885 units in total. The two private housing sites are located at the junction of Jalan Loyang Besar and Pasir Ris, and Flora Drive respectively. The former is a 1.7 ha plot that can house about 355 residential units, while the latter is a 3 ha site that can house around 415 residential units. The top bid for the site at the junction of Jalan Loyang Besar and Pasir Ris is expected to fall between $350 psf ppr and $460 psf ppr, while the site at Flora Drive might fetch around $300 psf ppr to $350 psf ppr. One of the EC sites released by HDB is located at the junction of Pasir Ris Drive 3 and Pasir Ris Rise and top bid for the site is expected to fall between $240 psf ppr and $320 psf ppr. The other EC site is at the junction of Yishun Avenue 7 and Canberra Drive and top bid might fall between $240 psf ppr and $290 psf ppr.
Industrial site at Kaki Road 4 put up for sale by the URA
URA has added an industrial site at Kaki Road 4 to the confirmed list of the H2 2011 Industrial GLS Programme and the site will be up for sale via a tender. The site, which is offered on a 30-year leasehold term, has an area of approximately 2.6 ha and a maximum permissible gross plot ratio of 2.0. Zoned for Business 2 use, the site can be developed to accommodate industries such as light industry and telecommunications. Colliers International predicts that the tender for the site will receive about eight to 10 bids, with offers falling between $39.1 million and $78.2 million (approximately $70 psf ppr to $140 psf ppr).
Centrepoint mall’s leasehold site may be up for collective sale and may fetch about $1,700-$1,800 psf ppr
The 44,700 sq ft L-shaped leasehold plot at the rear of Centrepoint mall alongside several 66 apartments might be put up for collective sale. The plot, which has remaining lease tenure of 67 years and is zoned for commercial use, has an existing GFA of approximately 190,100 sq ft. Although it is too early for marketing agent Credo Real Estate to reveal the pricing details, some market analysts have predicted that the plot may fetch a price between $1,700 psf ppr and $1,800 psf ppr; the current owners will then receive about $300 million and the breakeven cost for a new shopping centre project on the site will then be around $3,800 psf to $3,900 psf.
Lend Lease Group put up 25% stake in 313@Somerset for sale
Lend Lease Group has put 25% of its stake in 313@Somerset, a shopping mall that is 98.5% occupied and has a NLA of 289,106 sq ft, up for sale. Lend Lease is said to be expecting at least $1.2 billion ($4,150 psf on NLA) from the sale of the stake. Although some existing mall owners or managers might be discouraged from bidding for the stake as Lend Lease might request to remain as the asset manager for 313@Somerset, potential buyers might still be attracted to bid for the stake due to 313@Somerset’s prime location.