Residential

Shunfu Ville launches collective sale by tender

Located near Marymount Road, Shunfu Ville, a privatised former HUDC estate has launched its collective sale. The 358-unit residential development which has an area of 408,927 sq ft is expected to be sold for about $688 million. This translates to a land rate of about $791 psf ppr after adding an estimated differential premium of $218 million payable to the state to top up the lease to a fresh 99 years. The breakeven cost is expected to be around $1,250 psf. Under the Master Plan 2014, the residential estate has a gross plot ratio of 2.8 and could yield more than 1,100 units with an average size of 1,000 sq ft.

(Source: Business Times)

Signature at Yishun launches for sale at $750 psf

Signature, an executive condominium (EC) at Yishun, has launched for sale at an average of $750 psf—the lowest psf pricing for ECs this year. According to market experts, this reflects developers’ desire to move sales quickly, because an estimated 3,650 units could be launched in the next 15 months, said Nicholas Mak from SLP International. The Yishun residential site consists of 525 units, and its e-application period will last from 11 to 20 September. Ong Kah Seng from R’ST predicts that any EC project launched this year within the price band of $750 to $780 psf should be fairly well received as it is below the average $800 psf for new ECs sold last year.

(Source: Business Times)

August’s HDB resale prices up by 0.3% while transaction volume falls by 6.8%

According to SRX Property, HDB resale prices have increased by 0.3% month-on-month while transaction volume fell by 6.8% month-on-month to 1,447 units in August this year. This is likely to be due to the Hungry Ghost Festival, where sales are typically slow. Eugene Lim from ERA Realty noted that there was a 9% increase in resale transactions year-on-year in August. Lim believes that resale volumes may increase due to the policies, such as the Proximity Housing Grant and revised income ceiling for HDB loans and CPF grants. Under the new policy, the monthly gross household income for HDB loan or CPF Housing Grant has been raised to $12,000 from $10,000 previously. This would widen the pool of buyers, said experts.

(Source: Business Times)

Private home prices saw second-largest drop in Asia

Knight Frank’s Global House Price Index showed that Singapore saw the second-largest drop in private home prices in Asia in the last quarter. Non-landed residential prices fell 3.2% year-on-year, and 0.8% quarter-on-quarter this year. Alice Tan from Knight Frank Singapore believes that prices may continue to fall due to weak buyer sentiments. Not only so, the implementation of cooling measures continues to keep demands low. Tan predicts that the overall private non-landed home prices will continue to fall by 3 to 4% on a yearly basis by Q4 this year.

(Source: Business Times)

Commercial

Prime office rents in central region falls by 2.6% in Q2

Office rents in the central region has fallen by 2.6% in Q2 this year as more tenants opt for cheaper decentralised offices amid the uncertain economic outlook. According to Cushman & Wakefield, Grade A effective direct rents in Marina Bay have fallen to $11.01 psf per month in Q2, down from $13.22 psf per month in Q1. In Raffles Place, the rent has fallen to $10.66 psf per month in Q2 from $10.92 psf per month in Q1. Christine Li from Cushman & Wakefield predicts that there will be an overall 2% drop in prime office rents in the central region for each quarter in H2 this year.  On the other hand, Alan Cheong predicts that there will be a 3 to 5 percent drop in prime office rents in the same area, over the same period of time.

(Source: Business Times)

77 Robinson Road expected to sell for $649 million

A 35-storey office building at 77 Robinson Road has been put up for sale again. Market experts predict that it would be priced around $2,200 psf on net lettable area or $649 million based on net lettable area of about 295,000 sq ft. The building has a balance lease term of 77.5 years and has 180 car parking lots. It was acquired in 2007 for $526 million or $1,783 psf. Under the Master Plan 2014, the site has been zoned for commercial use with a plot ratio of about 11.2.

(Source: Business Times)

Commercial building at Bugis to sell for $80 million

A nine storey commercial building at Bugis, Prospex, is asking for $80 million or $1,913 psf of gross floor area. The owner has chosen to sell the entire building through an expression of interest rather than through strata sales. The site has an approved gross floor area of 41,806 sq ft. No space has been leased out yet in the property, according to the Business Times.

(Source: Business Times)

DC rate for industrial use cut by an average of 3%

Development charge (DC) rates for industrial use have been cut by an average of 3% while the rates for commercial, land and non-landed residential, hotel/hospital use have remained unchanged. The latest DC rates will apply from 1 September 2015 to February 29 next year. Twice yearly, DC rates are revised according to use groups across Singapore. Tan Tiong Cheng from Knight Frank noted that the industrial property market has been weak. This could have been factored into the revision of DC rates, said market experts.

(Source: Business Times)

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