More Singapore houses are opening up to short-term rentals
A growing number of Singaporeans are catching up with the short-term home rental trend and opening up and renting their houses to strangers. The rent for a shared room in a HDB flat starts from US$15 per night and the sole use of a 2,250 sq ft penthouse condo in Newton can start from US$800 per night. Although home owners are free to decide the rent for their houses, short-term home rental website Roomorama advises owners to set a price that is about 30% to 40% lower than the prices that hotels in the vicinity of their homes charge.
Singapore Property unit Allgreen Properties will preview 102-unit Riviera 38 next Thursday
Located at Mar Thoma Road, units at 999-year leasehold 102-unit Riviera 38 will start previewing next Thursday. The unit sizes range from 452 sq ft for a one-bedroom apartment to 1,980 sq ft for a penthouse with three bedrooms and a personal swimming pool. Allgreen Properties announced that prices for a 452 sq ft one-bedder will begin at $530,000. Although not all pricings have been confirmed, market speculated that average price will be around $1,200 psf. Apart from 20 one-bedder and 21 one-bedder-plus-study-units, Riviera 38 will also consist of two-bedders, two-bedders-plus-study-units, three-bedders, and penthouses.
SRPI index showed rise in price for small units and units in Non-Central region: NUS
NUS’ data showed that SRPI in the Central region (exclusive of small units) decreased 0.7% from July to August; the SRPI in August was also 2.08% lower than the peak seen in May 2011. However, prices for units in Non-Central district and small units islandwide were experiencing rapid increase in August. The SRPI for units in Non-Central district increased 0.5% from July to August, while small units islandwide experienced a 3.1% hike. To date, the SRPI for 2011 in the Central region has increased by merely 3.2%, the SRPI in Non-Central region has increased by 10.5%, and the price index for small units has increased by 12.3%.
Mass-market continues to be the main focus in Q3 amid economic uncertainties
Amid the economic uncertainties, mass-market properties achieved an average transacted price of $941 psf in Q3 2011, and the 2.5% hike for suburban houses (non-landed private residential properties which excludes ECs) was higher than the 1.7% hike in the OCR property price in Q2 2011. Knight Frank noticed that prices of mass-market houses were reaching $1,000 psf and an average price of $1 million. Rents in the high-end and mass-market segments increased by 1.9% and 0.4% q-o-q respectively, while rent in the mid-market segment increased by 2.3%. For Q4, Knight Frank expects sales volume (excluding ECs) to reach at least 16,000 units.
Sources said that the minimum industrial unit size that URA is likely to approve is 90 sq m
The minimum industrial unit size that is likely to be approved by URA is about 90 sq m (approximately 969 sq ft). However, URA mentioned that a minimum size is not imposed on industrial units. Instead, URA will look at the development proposals and discuss with developers and architects on how to improve on the development, making it suitable for industrial purposes. Some developers have been developing units that are below 800 sq ft and thus posed a fear that developers might use these sites as office space rather than as industrial unit. Several developers have voluntarily added a new clause in the S&P contract of their industrial projects, stating that their properties are solely for industrial use.
Rental for Grade A office increased by 4.3% in Q3
CBRE figures showed that the average gross monthly rental value for Grade A office in Q3 was $11.10 psf, a 4.3% hike from Q2. However, the vacancy rate for Grade A office increased from 9.48% in Q2 to 10.96% in Q3; it is also the highest seen in the last seven years. CBRE mentioned that the vacancy rate is due to the completion of new offices this year, and is positive that the new offices will be occupied within the next six months.
Four-storey freehold Henderson Industrial Building up for sale
Located at the junction of Henderson Road and Jalan Bukit Merah, four-storey freehold Henderson Industrial Building has been put up for sale; the owners expect a price that falls in the range of $120 million ($575 psf of potential GFA). The 83,454 sq ft site has a strata area of 120,287 sq ft and can potentially be redeveloped into a site with a GFA of 208,635 sq ft based on the 2.5 plot ratio. No DC is payable and the breakeven cost for the site might fall between $800 psf and $900 psf. Zoned for Business 1 use, the tender for the building ends on 25th October.
Prime retail rents in Orchard/Scott Road area increased by a mere 0.5% to $40.20 psf pm in Q3: DTZ Research
DTZ Research showed that the average gross fixed rent of prime first-storey space in Orchard/Scott Road area increased to $40.20 psf pm in Q3, a mere 0.5% q-o-q hike. The average gross fixed rent of prime first-storey space in city areas outside of Orchard/Scott Road area remained at $24.05 psf pm, while rent in suburbs remained at $33.70 psf pm; the stability is due to new supply of retail space brought about by the completion of malls such as Rochester Mall, Scotts Square, Changi City Point, and 112 Katong in Q3. Despite the upcoming new supply in suburban areas such as Jurong, DTZ assured that prime first-storey space in Orchard/Scott Road area will continue to remain strong due to limited supply.
Office rents continue to cool: CBD Grade A office increased by only 2% q-o-q in Q3 2011: Colliers International
Colliers International showed that Singapore’s office property market continued to cool in Q3 amid the economic uncertainties. According to Stanchart’s property, prime and Grade A office rents are expected to remain unchanged at $9 psf pm and $11 psf pm till 2014 respectively. Colliers also showed that the overall CBD Grade A office rent in Q3 increased by only 2% q-o-q to $9.08 psf pm, the lowest q-o-q growth since Q2 2010. Furthermore, the average occupancy rate for CBD Grade A office continues to fall, from 93.5% in Q2 to 92.6% in Q3, the lowest occupancy rate in six quarters.
Rio Tinto will be occupying 70,000 sq ft at MBFC’s Tower 3 sometime in Q2 2012
Rio Tinto will stop occupying its current premise at Centennial Tower and will be occupying 70,000 sq ft at MBFC’s Tower 3, which is expected to be completed in Q2 2012. Rio Tinto will be occupying at least 3 storeys in the mid-rise levels of the 46-storey MBFC’s Tower 3. Apart from Rio Tinto, other tenants in MBFC’s Tower 3 include DBS (which will occupy over 600,000 sq ft), Clifford Chance, Ashurst LLP, McGraw-Hill, and WongPartnership. The MBFC’s Tower 3 is currently 60% leased.
Collective sale for Tanglin Shopping Center called off for the second time
The collective sale for the freehold 68,512 sq ft Tanglin Shopping Center has been called off because a buyer was not secured. The indicated price for the collective sale was $1.25 billion (approximately $4,000 psf of potential GFA). The site, which contains a retail podium, a 12-storey office tower, and carpark facilities, has a strata area of approximately 380,000 sq ft and can build up to 20 storeys.