Residential

New projects by developers behind the strong sales for private homes in September

The new projects by developers in Outside Central Region (where mass-market developments are located), which includes 78.4% of the total 1,919 units and 81% of the 1,631 units (excluding ECs) sold in the past month, are behind the strong sales in the private home market in September. Developers sold 1,631 private homes excluding executive condos (ECs) and 433 ECs, an increase of 20.7% and 49% from August. The increase in EC sales is likely due to the increase in income ceiling for ECs. 2,064 units were sold in September, including ECs, a month-on-month increase of 25.8%. The launches in September also accounted for the strong sales, with 2,493 private homes including ECs being released.

Government to release three land parcels for private housing and one for EC

The four land parcels to be released in October includes a 99-year leasehold plot on Alexandra Road which can yield about 545 private homes, two private housing sites at Bukit Panjang and Punggol which can yield 35 landed homes and 540 apartments respectively and an executive condominium (EC) site in Sengkang which can yield 770 flats. The first (under the confirmed list of GLS) was released on Oct 17 and the latter three (the first two on the confirmed list and the last on the reserve list) will be released on Oct 27. Land parcels on the confirmed list are sold according to scheduled dates whereas those in the reserve list will only be released if an application with an acceptable minimum price is submitted.

Dunearn Gardens, Newton Lodge, Dragon Mansion and Faber Garden available en bloc

Faber Garden which is zoned for residential use and located near three MRT stations, St Nicholas Girls School and Raffles Institution, has a potential gross floor area of 958,748 sq ft, including 10% balcony space. It is asking for $830 million – $988 psf ppr based on maximum gross floor ratio of 1.6 and a $31.2 million a development charge.

Freehold Dunearn Gardens located near Newton MRT station and the Central Expressway (CTE) with a 33-storey potential, lowered its asking price from $578.5 million to between $550 million and $561 million.  Given its 95,442 sq ft land area and 2.8 maximum plot ratio, it could cost between $2,180 and $2,220 psf ppr including a $32 million development charge.

39,176 sq ft freehold Dragon Mansion at 14 Spottiswoode Park Road near CBD has an indicative price to between $132 million and $142 million. The current $1,200 – $1,290 psf ppr based on a maximum gross plot ratio of 2.8 from 2 plots of land (Dragon Mansion and a substation) is lower than its previous asking price of $1,340-1392 psf ppr.

21,409 sq ft Freehold Newton Lodge located at 41 Newton Road near Novena MRT and Novena Square is still asking for a $40 million reserve price equivalent to $1,418 psf ppr, based on a 1.4 gross plot ratio and a $2.5 million development charge.

Khaw Boon Wan: Foreign buying of private homes being monitored

In a response to MP Christopher de Souza’s questions on the foreign buying of private homes in Singapore, National Development Minister Khaw Boon Wan stated that while over 80% of private homes available are bought by Singaporeans and PRs, the number of foreign purchases have increased and that the government is monitoring the situation and actions will be taken if necessary. He also stated that the government has tightened rules to control foreign purchases. He also stated that the foreign demand for private properties is not the only factor for the increase in property prices; there are other factors such as the low interest rate in play.

Commercial

Keppel Land sells 87.5% of Ocean Financial Centre to K-Reit Asia at $1.57b

87.5% of recently developed 43-storey Ocean Financial Centre (OFC) office building in Raffles Place, with about 885,000 sqf of net lettable area and a tenure of 999 years with 850 years remaining, is sold to K-Reit Asia at $1.57 billion with a 99-year lease, meaning that Keppel Land can regain OFC once the lease ends. This price is equivalent to $2,600 psf including rental support of $170 million and $2,400 psf without. OFC is 80% occupied with average passing rent of about $9 psf per month. K-Reit proposed a 17-for-20 rights issue to raise $976.3 million, with the remaining $602.6 million coming from new debt.

One miserly bid for Payar Lebar’s second 99-year leasehold commercial site

The only bid for the site (from a UOL Group-Singapore Land equal joint venture) was $529.3 million or $565.74 psf ppr, 35% lower than what the first site, which drew 10 bids, sold for earlier this year. This is due to the technical difficulties of developing the site and restrictions on strata units and lots which affects returns from leasing and rentals. The project plan includes a retail podium and two towers – one for a hotel, another for offices (with a 20,000 sq ft floor plate) – with a 40:15:45 ratio for office, hotel and retail purposes. The site will likely be awarded since the offer is fair, despite being low.

60-year-leasehold industrial site up for sale

The 230,636 sqft 60-year-leasehold industrial site near Gambas Avenue and Woodlands Ave with a 2.5 plot ratio and a maximum gross floor area of 576,590 sq ft is zoned for Business 1 use. On the reserve list earlier, a developer has committed at least $57 million, amounting to $98.86 psf ppr. The tender will close at noon on Nov 17.

Discussions held over KeyPoint’s sale

Talks are being held over the sale of KeyPoint at Beach road after the expression of interest exercise closed. The $283 million 5.0 maximum plot ratio asset can be redeveloped to a commercial and residential project with a maximum gross floor area (GFA) of about 391,209 sq ft, where at least 60% of the GFA must be reserved for residential use and 20-40% is allowed for commercial use. The site which has a remaining lease term of 63 years had been granted an in-principle approval to top-up the current lease with another 99-year term. The developer of the site will have to pay premiums to upgrade the lease and enhance the site’s use to include residential use.

Tanjong Pagar’s Orchid Hotel asks for $250m or above

272-room Orchid Hotel Singapore built on a site with a remaining lease of 95 years is asking for $250m or above, about $920,000 per room with vacant possession. This means that hotel owner-operators or investors can acquire and rebrand it. The sale price excludes the nine strata office units on the second floor, which includes three larger units which could be converted into function rooms depending on approval from the authorities. The total area of these units is about 10,600 sq ft. The site also includes 19 strata retail units were sold earlier and are therefore not included in the sale, and carpark lots in two basement levels.

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