Singapore Property News This Week #200

Residential

Condo at Bartley will sell for $1,300 psf

A private residential project at Bartley is on salefor about $1,300 psf. The 797-unit project will consist of 200n one-bedroom units, 382 two-bedroom units and 215 three-bedroom units. Some of the two-bedroom units and three-bedroom units can be converted to dual-key units to cater to multi-generational families. The one-bedroom units are about 495 sq ft to 689 sq ft large; two-bedders are about 657 sq ft to 958 sq ft large while the three bedders are between 926 sq ft and 1,356 sq ft large. The project will be completed in 2019 and will be launched for sale starting April.

(Source: Business Times)

Feb private home sales the lowest since 2008

In February this year, 382 private homes were sold. This is the lowest since February 2008, where 174 units were transacted. Nonetheless, the sale of private homes in February is 2.1 percent higher than in January this year. Market experts believe that sales will pick up soon as several new launches are expected to hit the market starting this month. According to Eugene Lim from ERA Realty, 70 percent of the transactions made in 2014 have been below $1.5 million. This is because of loan restrictions and the additional buyer’s stamp duty. Mohamed Ismail from PropNex said that a weak leasing market coupled with an increase in home supply have kept demand for residential property low. According to JLL, developers’ full-year private home sales will be about 4,800 to 5,800 units. On the other hand, CBRE predicts that about 6,000 to 7,000 will be sold, while ERA Realty believes that 7,500 to 8,500 units will be transacted by the end of the year.

(Source: Business Times)

99-year private residential site at Tampines to be launched for tender

Locacted at Tampines Avenue 10, a 99-year private residential site has been launched by URA. Market experts expect the 168,567 sq ft site to attract 3 to 7 bids. The top bid is expected to be between $430 and $520 psf ppr. The site is expected to yield 490 homes and is expected to be situated near a big industrial estate. Ong Kah Seng from R’ST Research believes that the site may not be attractive to investors as there are many upcoming condo projects in the vicinity. Nonetheless, Ong believes that the average launch price will be around $1,000 psf. While Nicholas Mak from SLP International predicts that in order to sell quickly, the project should not be sold beyond $1,080 psf.

(Source: Business Times)

Homestay Lodge sold for $127m

Homestay Lodge, a 6,000-bed dormitory at Kaki Bukit has been sold for $127 million. There are two plots of land being sold. The total land area is about 200,000 sq ft and the sites have about 14 years of lease left. The dormitory consists of 10 blocks; two of which have dining and minimart facilities. Due to high yields, market experts believe that dormitories are a viable investment even if they have short lease term left. Not only so, the unutilised land at Homestay Lodge can be developed into recreational facilities that can increase bed rates, said the Business Times.

(Source: Business Times)

Commercial

7 industrial sites at Ubi up for sale

Seven industrial sites at Ubi industrial cluster will be sold for $550 psf or $8.7 million. The sites will be sold through tender. The tender will close on April 28. The combined strata area is about 15,726 sq ft. Single and multiple strata units are available on sale. Their sizes range from 2,024 sq ft to 2,842 sq ft. The units are column-free and have a floor-to-ceiling height of 5.3m. Located near Tai Seng MRT Station, the sites have been zoned for Business 1 development. It is also located near Paya Lebar commercial hub. According to DTZ, the prime location of the site will be a key attraction.

(Source: Business Times)

Serviced apartment-hotel near Expo is selling for $203.4m

A serviced apartment-hotel near Expo MRT Station is selling for $203.4 million or $650,000 per room. The development consists of 313 units and has a balance lease term of about 54 years. The units range from 32 sq m to 70 sq m. The mixed development includes One@Changi City. It comprises of 650,000 sq ft of net lettable area. Donald Han from Chestertons said that the prime location and tenure of the site justifies its asking price.

(Source: Business Times)

Median rent for shophouses increased by 36%

The median rent for shophouses has increased by 36 percent from below $4 psf per month before 2012 to $5.42 psf in Q4 last year. According to Colliers, the median prices, in terms of capital values had also increased by 37 percent year-on-year to $3,772 psf in Q2 last year. This is because shophouse owners have been reluctant to sell off their properties until they are able to meet their price expectation. The net yield for freehold shophouses stands at 2.5 percent to 3 percent, while shophouses with leasehold tenures yield about 3.5 percent on average. Market experts believe that more commercial tenants will be attracted to shophouses in the coming months as office and retail space rents increases. Nonetheless, Chia Siew Chuin from Colliers added that alteration restrictions that arise due to conservation guidelines may affect investors’ willingness to invest in shophouses.

(Source: Business Times)