Residential

Half of Panorama’s units sold in first release

In its first release on Jan 19, half of the 120 units released for sale at The Panorama condominium were booked. Prices of the units were from $650,000 for the one bedroom units to nearly $2.4 million for the five bedroom units. Most of the units sold were two and three bedroom types from 678 sq ft to 1,130 sq ft in size. The Panorama, developed by Wheelock Properties, is located at Ang Mo Kio Avenue 2, and is Wheelock’s first 99-year suburban condo project here in two decades. Most buyers were reported to be owner-occupiers with young families aged from thirties to fifties.

(Source: Business Times)

Cooling measures not likely to be relaxed: poll

Although home sales and home prices have dropped, a poll by the Business Times for CEOs and industry-group leaders revealed that cooling measures for the property sector are unlikely to be rolled back. Data showed that home sales dropped to the lowest since Jan 2009, and URA’s overall private housing price index decreased 0.8 percent in Q4 2013. Yet it would be premature to say the property market is stabilizing because more time is needed to assess if the cooling measures have sustained their objective of managing property speculation. Market watchers also applaud the Total Debt Servicing Ratio (TDSR) which has effectively shown that low-cost financing has been a catalyst for property purchases.

(Source: Business Times)

Chinese buying of Singapore private homes still holds up

Despite a 35 percent drop in private home purchases by non-Singaporeans in 2013, mainland Chinese buyers had the smallest drop among the top four nationalities. DTZ analysis showed that the Indians’ buying dropped 54.5 percent from 2012, but the mainland Chinese only bought 16.9 percent fewer than that of 2012. The Malaysians’ buying was also down 36 percent. DTZ revealed that 65 percent of the 1,479 homes bought by the mainland Chinese were priced below $1.5 million, 62 percent were bought from developers, and more than 80 percent were outside the traditional prime districts of 9, 10 and 11.

(Source: Business Times)

Geylang site draws $146m top bid

A plot at Geylang East Avenue 1 has drawn 16 developers’ bids, with the highest bid at $ 145.9 million, or $775.96 psf ppr from Sustained Land’s SL (Serangoon). Nicholas Mak, executive director at SLP International said that this is the second highest number of bids that a government land sales (GLS) tender has attracted until now in the GLS programme for 2013. The top position is the condominium site at Faber Walk in Clementi, which drew 18 bids. The high number of bids is because many developers are now more selective of the development sites they would acquire, and they prefer well-located sites that are relatively small.

(Source: Business Times)

HDB resale flat prices hit record low

Housing & Development Board (HDB) resale flat prices hit a record low in Q4 2013, the first annual price decline in eight years. Transaction volumes of 2013 reached the lowest level since HDB started compiling the data in 1997, and sales continued to weaken in the last three months of the year. Property consultants are expecting an even wider fall in prices in 2014.

(Source: Business Times)

Private home and industrial space markets sandwiched between rising supply and cooling demand

Nearly all indicators in the Urban Redevelopment Authority’s (URA) Q4 2013 figures for the private housing market point towards weakening. Official statistics show that the private residential property and factory space markets have been affected by both the weight of supply and the property cooling measures including the total debt servicing ratio (TDSR) framework. However, the office market is appearing to witness a gradual rent recovery.

(Source: Business Times)

3,139 BTO flats up for sale

Some 3,139 new flats have been launched in the HDB’s first build-to-order (BTO) exercise of 2014. These new flats are in six projects in the non-mature estates of Bukit Batok, Jurong West, Punggol and Woodlands and the mature estate of Serangoon, and are expected to be fairly well received, especially from cost-sensitive applicants, young couples who can afford to wait, and buyers constrained by the cap on their mortgage servicing ratio (MSR) from purchasing more expensive resale flats.

(Source: Business Times)

Secondary-market deals lowest since 2004

According to a caveats analysis by DTZ, the number of resale private homes in the secondary market dropped from 15,678 units in 2012 to 7,695 units in 2013, the lowest volume in 2004. This drop is much larger than the 31.3 percent decrease in the number of private homes sold by developers in the primary market to 13,372 units in 2013. DTZ said that the drop might be due to the fact that those who own multiple properties are not in a hurry to sell their properties, as their replacement cost is now higher, with the higher additional buyer’s stamp duty (ABSD) and the total debt servicing ratio (TDSR) framework in implementation. Individual owners are also less able to offer incentives or discounts to entice buyers.

(Source: Business Times)

Commercial

Record bid for former Joo Chiat police station site

A new record bid for Government Land Sales (GLS) hotel site has been established for a 99-year leasehold site along East Coast Road housing the former Joo Chiat police station. Out of 8 bidders, a consortium comprising Master Contract Services and Keong Hong Construction had the highest bid of $352.8 million, or $1,326.11 psf ppr. This record has eclipsed the previous price of $1,303.24 psf ppr for a plum site at Havelock Road last November by an unnamed developer. Ong Kah Seng, director at R’ST Research said that this shows the implementation of the TDSR caused the private residential sentiment to cool and investors are shifting interest to hotel development.

(Source: Business Times)

Japan’s Parco to vacate Millenia Walk after losing millions

Japanese mall and department store operator Parco is reported to quit its 83,000-square foot premises at Millenia Walk in Feb, following its losses of millions there since it moved to the mall in 2010. In 2011, it made a loss of $8.7 million and in 2012, made another loss of $3.4 million. Parco’s lease would end in March, and it is looking to continue its operations in another mall with smaller scale of about 10,000 sq ft of space to accommodate its food, cafe and restaurant operations – the only part that Parco is doing well. Pontiac Land Group, which owns and manages Millenia Walk, is working out plans for the space that Parco will leave behind to focus on a renovation and enhancement exercise.

(Source: Business Times)

Raffles Medical buys Raffles Hospital’s adjacent site

Integrated private healthcare provider Raffles Medical Group is reported to be acquiring from the Singapore Land Authority a 1,978.1 sq ft site adjacent to Raffles Hospital for $105.2 million by internal resources and bank borrowings. The site has a plot ratio of 5.6 and would yield a GFA of 11,077.36 sq m. The total development cost of the project, including the purchase of the site, construction costs and improvement works, is estimated to be about $310 million.

(Source: Business Times)

Industrial space prices and rentals moderate in Q4 2013

Prices and rentals of industrial space were reported to have moderated in Q4 2013, and are expected to carry on for the next few years, especially that JTC Corporation plans to double the yearly average supply of industrial space to two million sq m between 2014 and 2016. JTC Corp has also released the latest quarterly report on the industrial property market – the first time since it took charge of collecting and disseminating industrial property data from the Urban Redevelopment Authority (URA) last October.

(Source: Business Times)

All 52 strata office units at ARC 380 sold

All 52 strata office units for sale at the 16-storey freehold ARC 380 project in Lavender Street/Jalan Besar were sold, but only nine out of 19 retail units were sold. Two office floors were sold during a VIP preview before that, one at $22.6 million and the other at $23.1 million, or $2,410 psf and $2,464 psf respectively. The ARC 380 project is undertaken by two companies associated to Tong Eng Group, and will come up on the current Eminent Plaza and next-door Lavender Food Square site, near the upcoming Bendemeer MRT Station on the Downtown Line.

(Source: Business Times)

The Arcade up for sale by tender

The 20-storey commercial development in Collyer Quay, the Arcade, is now up for sale through marketing agent Colliers International by its owners including property developer City Developments. The Arcade is a 999-year leasehold development with a maximum allowable gross floor area of 303,657 sq ft, and the total existing strata area of 157,325 sq ft. The site is said to have huge redevelopment potential as the existing plot ratio has not been fully maximized. Under the 2008 Master Plan, the 21,909 sq ft site on which the Arcade now sits is zoned for commercial use with its allowable plot ratio being 13.86, which allows a building up to 50 storeys high.

(Source: Business Times)

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