Singapore Property News This Week #222

Residential

Private home sales in July increased to 1,594 units

Up from 375 units in June, 1,594 private home units were sold in July. This figure excludes executive condominium units. According to the Business Times, 73% of the sale was from the High Park Residences in Fernvale Road sale, where 1,169 units were sold. Sales were brisk for that condominium because of its attractive pricing strategy, added the Business Times. Not only so, it is conveniently located at the Thanggam LRT Station. Despite the large volume of sales in July, market experts believe that sales will fall in the subsequent month due to the Hungry Ghost Festival. Furthermore, Desmond Sim from CBRE added that limited major projects with more than 300 units would be released in the coming months. On the other hand, there has been an increase in sales for private executive condominiums. 495 units were sold in July, up from 110 in June this year. Chua Yang Liang from JLL predicts that developers will sell 6,500 to 7,500 private homes this year, while Ismail Gafoor from PropNex believes that about 8,000 to 9,000 units may be sold.

(Source: Business Times)

More HDB lease options for the elderly

The elderly will have more flexibility with the new flexi scheme for the sale of two-room HDB flats. Under the new scheme, elderly buyers have short-lease options ranging from 15 to 45 years, instead of a fixed 30-year lease option as before. The purchase of these flats must be financed through cash or CPF savings. Subletting and resale are not allowed. By barring the sale of two-room flats with short leases on the open market, the buyer will not be able to enjoy the possible capital appreciation from the flat in future. This ensures that HDB flats function as homes and not investment assets. Mohamed Ismail from PropNex said that the greatest benefit of the scheme is that it allows seniors to commit to a purchase of a two-room flat and unlock more cash from the sale of their existing flat. According to HDB, in the next five years, more than 70 BTO projects across Singapore will be launched with two-room Flexi flats. HDB added that about 300,000 flats in Singapore are owned by citizens aged 55 and above.

(Source: Business Times)

Binjai Rise GCB sold for $13m

Located next to the Pan Island Expressway, a partially completed good class bungalow (GCB) at Binjai Rise has been sold for $13m or $763 psf based on a land area of 17,035 sq ft. In April, the property was put up for auction at $19.5 million. In a second auction, the bid price was lowered to $16.575 million. Yet, there were still no bids. Eventually, the property was put up for a tender that closed in July. The uncompleted bungalow has two storeys, a basement and an attic. According to the Business Times, it may cost another 1 to 2 million to complete the construction.

(Source: Business Times)

Commercial

Kim Chuan Drive sold for $40 million

An industrial site located at Kim Chuan Drive was sold for $40 million or $460 psf ppr. The freehold site has a land area of about 34,730 sq ft. The property which is three storeys high has been vacated after the tenancy agreement for the units were not renewed. The site has been zoned for Business 2 use for heavy industries under the URA Master Plan 2014. It also has a 2.5 plot ratio.

(Source: Business Times)

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