Residential

GCB at Swettenham Road selling at $23.52 million

A good class bungalow (GCB) at Swettenham Road is asking for $23.52 million or $1,543 psf based on the freehold land area of 15,293.53 sq ft. According to market experts, this value is lower than the seller’s previous asking price of $30 million about nine months ago. Data that was compiled by CBRE showed that in 2014, 28 bungalows totalling $626.14 million changed hands in GCB areas. This amount was lower than the $682 million that was amassed from the sale of 29 bungalows in the same area in 2013; and it was also significantly lower than the $1.17 billion that was transacted from the sale of 54 bungalows in 2012. The average price per GCB transaction fell by 5 percent to $22.36 million from 2013 to 2014, said CBRE. KH Tan from Newsman Realty added that the Total Debt Servicing Ratio framework and the additional buyer’s stamp duty have negatively affected demand for GCBs as these cooling measures makes it more difficult for buyers to finance properties.

(Source: Business Times)

SRX: resale condo prices fall by 0.2%

According to SRX Property’s flash estimates, the overall resale price index for non-landed private homes fell month-on-month in January from the previous month. On the other hand, the overall median transaction over X-value remained at a negative $10,000. Also, the overall resale price index for non-landed properties fell by 0.2 percent month-on-month in January. Eugene Lim from ERA Real Estate predicts that this downwards trend will persist for the rest of the year. He believes that non-landed private home resale prices may fall by a total of 5 to 8 percent this year, with homes in the core central region taking the biggest hit. According to data from SRX’s flash estimates, the resale price of non-landed private homes in the core central region and outside central region had indeed fallen by 1.7 percent and 1.1 percent respectively in January from the previous month. Nonetheless, prices in the rest of central region had increased by 1.5 percent. Data from URA also showed that the vacancy rate for non-landed private homes had increased by 2 percent year-on-year in Q4 2014 from 2013. Nonetheless, market experts believe that resale volumes will increase in February, said the Business Times.

(Source: Business Times)

Site at Sturdee Road released for tender

A 99-year private housing site at Sturdee Road has been released for tender by URA. The 0.6-hectare site is located near City Square Mall and Farrer Park MRT Station. It can be developed into a 30-storey high project that can house 265 units. The tender for the Sturdee Road site will close on March 24. Market experts predict that there will be between three and fifteen bids. They believe that the top bid for this site would be around $700 psf ppr, or about $161.2 million. Nicholas Mak from SLP International believes that the weak residential property market may push down bid prices. His views are echoed by Ong Teck Hui, JLL’s national director, who said that developers may be more cautious due to the weak market sentiments. Nontheless, Desmond Sim said that the site is located in an “emerging trendy enclave.”

(Source: Business Times)

New guidelines allow more flexibility to design landed homes

According to the new guidelines by the URA, home owners and developers will have greater flexibility to design landed homes, starting from May 11. Currently, landed homes must follow to floor-to-floor dimensions and basement protrusion limits set by URA. However, with the new ruling, home owners and developers will have greater flexibility when it comes to the internal configuration of their homes. Desmond Sim from CBRE said that this will allow home owners to be more creative with their home designs. Nonetheless, under the new guidelines, three-storey homes may not be higher than 15.5 meters in total, down from 17.7 meters. On the other hand, two-storey homes should not be more than 12 meters tall. This is about 2.1 meters lower than the current standard. While this new guideline will be applicable to all landed properties, it will only be enforced for new erections and reconstruction works.

(Source: Business Times)

Loan eligibility letter needed prior to booking HDB flat

According to HDB, applicants of Build-to-order (BTO) flats intend to take up loans from HDB, will have to produce a valid HDB loan eligibility letter when they book a flat. Previously, potential flat buyers are only required to produce the loan eligibility letter when they sign the agreement for lease. According to HDB, this new move will help home buyers better plan their finances. Eugene Lim from ERA Real Estate agrees with his move as it will ensure that potential home buyers are not overstretching their finances. Lim also believes that this move may encourage buyers to consider resale flats when they find out that they qualify for a higher loan quantum.

(Source: Business Times)

Commercial

First integrated industrial development launched by JTC

JTC recently launched JTC Space @ Tuas, the first integrated industrial development in Singapore. The development consists of different factory space types and supporting facilities, to cater to firms in the oil and gas; precision engineering and general manufacturing industries. The 10-storey development is about 6.4 hectares large and has a total of 128,000 sqm of industrial space. The integrated industrial development also has an on-site dormitory that can house 1,300 workers. Not only so, the development will include facilities such as a supermarket and retail outlets. Lim Hng Kiang, Minister for Trade and Industry believes that such a development will improve the productivity of firms and their manufacturing process.

(Source: Business Times)

Bids for Woodlands EC site lower than expected

An EC site at Woodlands has attracted bids that are lower than expected, according to the Business Times. The site was won by a top bid of $277.98 psf ppr. According to Ong Teck Hui from JLL, the slow EC sales may have dampened developers’ sentiments. To remain competitive in spite of lower demands for EC units, developers may have to bid more conservatively, said Ong. According to the Business Times, the Woodlands EC site will be developed into a 300-unit project. Nicholas Mak from SLP International believes that the developer’s breakeven cost will be between $600 and $640 psf.

(Source: Business Times)

Singapore leads Asia Pacific’s office growth in 2014

According to JLL, Singapore has one of the strongest growths in Asia’s office rental market, as the nation experienced an increase of 14.9 percent in 2014 from 2013. Last year, Singapore is the third most expensive locality, after Hong Kong and Beijing, said the Business Times. Nonetheless, JLL predicts that rental growth will fall by H2 this year as the supply of office spaces increases. Growth in the office rental market slowed to 0.9 percent in Q4 last year, compared with 3.5 percent in Q3, said JLL. Nonetheless, rising operating costs and a weakened demand for retail sales is expected to affect office rents.

(Source: Business Times)

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