Contrary to most analysts’ view, JLL expects no excess in housing supply in 2014 and 2015
JLL is confident that there will be no excess in housing supply in 2014 and 2015 due to stable demand. Although the average of approximately 50,000 HDB flats and private houses that will be completed in 2014 and 2015 equals 2.5 times the average annual stock completed since 2001, JLL does not see this as an issue as housing prices remained stable in 1998 when there was high supply. Furthermore, a higher demand is expected as population growth has exceeded the growth physical housing stock over the past few years. Also, JLL predicted that property prices will increase by an average of 7.5% annually from 2011 to 2015.
Ceylon Flats is put up for collective sale at $25.75 million to $27.39 million
At 22-28C Ceylon Road, three-storey 21-unit walk-up residential development Ceylon Flats is put up for collective sale via a tender with an asking price between $25.75 million and $27.39 million (around $800 psf ppr to $850 psf ppr). Judging from the asking price, each owner can receive about $1.22 million to $1.3 million from this sale. The 999-year leasehold property, which currently sits on an approximate 23,168 sq ft plot, can potentially be re-developed into a five-storey residential project that houses 50 units of 650 sq ft each or 29 units of 1,100 sq ft each. The tender ends on October 12.
MND amended its policy: Income ceiling of $12,000 to be extended to all EC projects
MND has decided to extend the income ceiling of $12,000 to all EC projects after looking at the appeals that it received after its announcement that the income ceiling of $10,000 to $12,000 will not be applicable for projects that are launched for public sale before August 15. MND mentioned that this decision will allow a larger group of intended potential buyers to have more projects to choose from. Although this decision benefits both buyers and sellers, ERA Realty believes that the decision will not have much impact on the sales of current EC projects due to the current economic uncertainty.
Secondary market showed a slowdown
With investments slowing down and January’s cooling measures setting in, the secondary market has become prominently gloomy. The number of caveats lodged for the resale of private houses (excluding ECs) in January to July 2011 dropped 21.2% to 9,149, while subsale caveats decreased 24.2% to 1,601 as compared to the same period in 2010. The gloomy situation in the secondary market can also be attributed to the increase in supply and attractive prices of new launches in the primary market.
HDB and URA launched four condo sites; these sites can yield up to 1,955 units in total
Government agencies URA and HDB launched four 99-year leasehold condo sites, which can house up to 1,955 units in total, for sale via a tender. 3 sites, which are located in Punggol Central/ Edgedale Plains, Yishun Avenue 1/Miltonia Close, and Bishan Street 14, are launched by HDB. The plots at Punggol and Yishun, which measure 20,256.1 sq m and 16,900 sq m respectively, were put up for sale under the GLS program, while the Bishan plot is placed under the reserve list for H2 2011. Similarly, URA also put an 18,700 sq m residential site at Chestnut Avenue up for sale.
CapitaLand plans to launch its condo project at Bishan by Q1 2012 at a minimum of $1,450 psf
CapitaLand intends to launch its 99-year leasehold suburban condo project in Bishan Central by Q1 2012 at a minimum price of $1,450 psf. The breakeven cost for the project will fall around $1,300 psf, CapitaLand mentioned. Although units in Bishan and Upper Thomson areas fall between $1,300 and $1,400, CapitaLand is confident that buyers will be attracted to the condo’s wonderful design. The condo project will consist of approximately 500 apartment units in two 38-storey towers.
Property consultants predict that private home sale will reach 15,000 to 16,000 by year-end
Several property consultants predict that the sales for private houses (excluding ECs) will hit 15,000 to 16,000 by the end of 2011, close to the 16,292 units sold by developers in 2010. Data from URA showed that developers sold 1,348 private homes in August, a 3.6% decrease from the 1,398 units sold in July. However, Credo Real Estate is confident that demand for property market is still strong, and ascribed the fall in August to the Hungry Ghost Festival and start of the stock market slip.
Greenwich V reached full occupancy ahead of its estimated TOP
Far East Organisation mentioned that the new lifestyle hub Greenwich V in Seletar is fully leased ahead of its estimated TOP. The main attraction of Greenwich V for retailers is its location: retailers are likely to build a strong customer base and remain competitive as there was no central shopping mall in Seletar district. Some of the tenants for the shopping mall include Cold Storage and Kopitiam.
UBS renews its lease for around 150,000 sq ft space in Suntec Tower 5 for three years
UBS, who is the current occupant of the entire top two floors and some areas in other floors of 18-storey Suntec Tower 5, has renewed its lease for three years. A property agent from Savills Singapore mentioned that UBS might be paying a rent of around $7 to $8 psf pm at Suntec Tower 5, which is higher than the estimated $4 psf pm that UBS has to pay if they were to relocate to suburban areas like Changi. Although rents have begun to stabilize, it remains high amid the gloomy economic outlook due to high occupancy.
Developers’ cautiousness set into industrial market: industrial plot at Woodlands Avenue 12 drew only four bids
A 60-year leasehold industrial plot at Woodlands Avenue 12 drew a top bid of $142 psf ppr (approximately $71.84 million) from OKH Development, 6.6% lower than the $152 psf ppr OKH paid for a neighboring plot in June 2011. Additionally, the tender drew only four bids as compared to the nine bids the tender in June drew. The tender’s result showed that developers’ cautiousness for residential sites have extended to the industrial sector. CBRE mentioned that commercial, residential and industrial sites will experience equal level of cautiousness from developers amid economic uncertainty.