Singapore Property News This Week #147

Residential

Procedure for resale HDB transactions to be changed

The procedure for reporting resale Housing Development Board (HDB) transactionshas been changed to shift the focus from cash-over-valuation (COV) to market prices. Buyers now are required to get the option to purchase (OTP) before asking for a valuation from HDB who will not accept such requests from sellers. Thus, instead of focusing on the COV, buyers and sellers will negotiate resale prices based on the latest transacted prices. Buyers now also have 21, instead of 14, calendar days to exercise their obtained OTP. Daily prices of resale transaction will also be posted on HDB InfoWeb every day, instead of every fortnight, after they are registered.

(Source: Business Times)

Non-landed resale home volume remains low

Due to cooling measures and the Total Debt Servicing Ratio framework, non-landed private home resale volume remained low at a levels not seen since the 2008 global financial crisis. According to flash figures released by the Singapore Real Estate Exchange (SRX), resale volume decreased 18.5 percent month-on-month, standing at 242 transactions in February; and decreased 22.2 percent year-on-year, from 311 deals in February 2013. Resale prices also went down 2 percent, which was seen as a natural pullback from unsustainable price increases of the previous months.

(Source: Business Times)

EL Development wins top bid for Yishun condo site

With an offer of $278.8 million or $450.06psfppr, EL Development has won over four other bids for the Yishun Avenue 9 site. This price exceeds the expected price of $380-$431 psfppr, and makes a historical high for a Yishunresidential non-landed government land sales site compared with the previous record of $405.53 psfpprfor another Yishun sitein August 2010. Ong Teck Hui, the national director for research and consultancy at Jones Lang LaSalle, said that this winning bid is in fact the lowest price for Outside Central Region.

(Source: Business Times)

Productive technologies will not hit developers’ margins

According to some analysts, productive technologies adopted by developers for Government Land Sale (GLS) properties are unlikely to hit their margins despite increasing costs. Regina Lim, head of Singapore equity research and ASEAN property research at Standard Chartered, said that with more developers adopting prefab components, costs might decline, while it is expected that land bids by developers may slow down due to higher construction costs. Switching costs for technology and manpower upgrades are said to be passed to developers through their tender pricing.

(Source: Business Times)

Three adjoining freehold properties up for sale

Three adjoining freehold properties along Queen’s Road and Duke’s Road with a combined land area of 25,425sqft are now up for sale with an estimated price of more than $45 million or $1,430 psfppr under marketing agent Knight Frank. It has a plot ratio of 1.4, and can yield a maximum permissible gross floor area of 35,595 sqft with an expected development charge of $5.8 million.

(Source: Business Times)

Far East Organisation Centre awarded Sentosa hotel site tender

Far East Organization Centre, a member of Far East Organization (FEO), was reported to have won a hotel site tender on Sentosa to develop a cluster of conserved buildings and their repurposing into hotels. The site is planned by FEO to be called The Outpost with two hotels of 700 rooms. The Artillery Avenue site, however, has been gazetted for conservation, so FEO has to take heritage and conservation requirements into consideration during its development process.

(Source: Business Times)

Commercial

Silicon Valley-inspired LaunchPad revealed

JTC LaunchPad @ one-north, considered as Singapore’s startup valley inspired by Silicon Valley, was revealed to comprise three adjoining buildings in Buona Vista (one new, one repurposed and the startup hub Block 71), several cafes and food points, sport facilities, and indoor and outdoor collaborative spaces – the same facilities as Google and Facebook in Silicon Valley. The startup community in one-north, thus, is expected to increase to reach 500 startups with 2,000 entrepreneurs, or even 800 startups and 3,200 entrepreneurs. Exploit Technologies, Joyful Frog Digital Incubator, SingTel Innov8 Ventures and NUS Enterprise are reported to be interestedin being part of LaunchPad.

Iconic projects coming up

A group of iconic integrated mixed development projects with a value of more than $15 billion are reported to be coming up, which will enhance Singapore’s luxury residential property landscape.The group includes collaborations between Temasek Holdings and KhazanahNasional for the Marina One and DUO developments. Malaysian tycoon Quek Leng Chan’s GuocoLand is also developing TanjongPagar Centre with the tallest residences in Singapore – Clermont Residence at 290 m high. A joint venture between City Developments and Malaysian group IOI is also springing up to include two towers. Capitol Theatre, Capitol Building and Stamford House are being integrated into the Capitol Singapore project. Another project with 39 exclusive residences including Eden Residences Capitol will also be available soon. Such iconic residential projects are expected to generate monetary value, attract foreign investors and attract global high net worth talents to reside in Singapore.

(Source: Business Times)

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