Singapore Property News This Week #183

Residential

20% of TRE Residences have been sold

50 out of 250 units at TRE Residences have been sold since its launch. On average, a unit was sold for $1,416 psf after a 5 percent discount. Most units that have been sold are either one-bedroom or two-bedroom units. The condominium is located at Aljunied MRT station. Mohamed Ismail from PropNex believes that developers of TRE Residences will continue to cut prices. Ong Kah Seng from R’ST Research added that investors will be able to decrease rental prices due to the lowered launch prices.

(Source: Business Times)

HDB new ruling will benefit married children who want to live near parents

According to an announcement by the Housing and Development Board (HDB), 30 percent of new flats will be reserved for first-timer families, and up to 15 percent will be reserved for second-timer families. The Married Child Priority Scheme (MCPS) has also been revised to benefit parents and married children who apply for a flat to live together; and parents who own a flat in a mature estate and who apply for a BTO flat in a non-mature estate so as to live near a married child. Previously, families who wish to stay near each other were given extra ballot chances. However, the MCPS will be quota-based instead of chance-based starting from November’s BTO and SBF exercises.

(Source: Business Times)

Cooling measures need to be adjusted to slow down fall in property prices

The property market has taken a hit due to the implementation of cooling measures. While the government is not ready to lift these measures, market experts believe that these measures need to be readjusted in order to slow property price declines. Lee LiatYeang from Rodyk& Davidson LLP said the Total Debt Servicing Ratio should be relaxed such that 100 percent of a borrower’s monthly rental income can be considered as part of his gross monthly income, instead of the current 70 percent. The Loan-To-Value limit should also be relaxed. Home buyers who prefer to purchase a new home before selling existing home should be allowed to obtain larger amount of loan, said Lee. Currently, married couples with at least one Singaporean spouse are allowed to obtain a refund of the Additional Buyer Stamp Duty that was paid with the purchase of additional residential property. Lee added that this concession should also be extended to Singaporeans who are not married.

(Source: Business Times)

Two new residential sites released for tender

A mixed-use site in Yishun and an executive condominium site in Anchorvale Crescent have been released for tender. Both sites are 99-year leasehold sites and are expected to yield a total of 700 residential units. Eugene Lim from ERA Realty predicts that both sites will attract a large number of bids and a high bid price due to the size of the plot. He predicts that there will be between 6 to 8 bidders for the 27,327 square meter plot at Yishun. Nicholas Mak, on the other hand, believes that the plot will attract at least 11 bidders and would fetch a price between $750 psfppr and $816 psfppr. Mak also added that the EC site at Anchorvale Crescent is expected to yield about 525 units.

(Source: Business Times)

Commercial

Reitas welcomes 42 members

The Reit Association of Singapore (Reitas) has welcomed 42 members. This includes Singapore Reit managers who manage more than 70 percent of market capitalisation of Reits in Singapore (S-Reits). Reitas has held its first forum on October 14, after the Monetary Authority of Singapore issued its consultation paper. The aim of Reitas is to improve the regulatory environment for S-Reits, said Chua TiowChye, the association president.

(Source: Business Times)

Retail rent at Orchard Road is the 7th most expensive in Asia

According to a report by Colliers International, retail rents at Orchard Road, which stands at US$348 psf per year, is the 7th most expensive in Asia. On the other hand, Hong Kong’s Queen Road Central has the highest retail rents as it costs US$2,073 psf per year to rent a space there. Canton Road and Causeway Bay in Hong Kong came in slightly behind Queen Road Central. West Nanjing Road in Shanghai and Wangfujing in Beijing have also made the list as the 5th and 6thmost expensive retail rental space respectively. Chia SiewChuin from Colliers International said that retail rents are high in Singapore due to a high demand for rental space. Nonetheless Chia expects that retail rents in Singapore will remain flat in the coming year as retailers face strong competition and lower profit margins.

(Source: Business Times)

Singapore’s office rental growth the highest in Asia

For a year since September 2013, prime office rentals in Singapore have increased by 19 percent—the highest growth recorded in Asia. According to JLL, Taipei, Wellington and Auckland trail behind with growth rates between 8 to 10 percent. The vacancy rate fell by 1.9 percent quarter on quarter to 2.5 percent in Q3 this year. Not only so, the average rent in the CBD area increase by 3.1 percent in Q3 from the previous quarter. Across Asia, Q3’s leasing market was the highest in the last two years, especially in Tier 1 office markets.

(Source: Business Times)

JTC may increase industrial land space in Woodlands

JTC may be increasing industrial land space in Woodlands to provide affordable rental space to manufacturing-related companies that do not have an industrial production in Singapore. JTC is expected to build a new building for that purpose. This comes as a response to previous feedback from trade associations that said that there was not enough rental space for businesses that do not qualify for premises that are for B1 use. After the Urban Redevelopment Authority (URA) had strengthened polices against the use of industrial space for non-industrial purposes, some companies have found it hard to rent affordable spaces. Market experts believe that rental in the upcoming Woodlands building will be higher than premises zoned for B1 use. Ong ChoonFah from DTZ said that as business models change, there is a need for the government to adjust its definition of B1 use so that more companies will be able to find affordable rental spaces in Singapore.

(Source: Business Times)