Retail rental falls due to weak demand

According to data from DTZ, retail rental fell in Q1 due to weak demand. Vacancies have also climbed that quarter as occupancy fell 1.6% from 2015 to 91.9%. The average monthly first-storey rents have dropped 1.2% quarter-on-quarter to about $30.15 psf in Q1 this year, which is the fourth quarter of decline since Q2 2015. Year-on-year, rentals have been down by 7%. According to DTZ, increase in visitor arrivals in Orchard/ Scotts Road area had increased by 0.9% in 2015. However market experts pointed out that this increase was because of the low base in 2014, following a series of aviation accidents. Experts added that rents were affected by weak business sentiments and also the large impending supply of retail spaces that were slated for completion.

(Source: Business Times)

HDB resale prices remain flat in March

SRX Property’s flash estimates for March showed that its HDB resale price index fell by just 0.1% month-on-month despite a 37.6% month-on-month increase in the number of HDB resale transactions to 1,651 units. Market experts believe that resale prices will continue to remain flat for the rest of the year. Since April 2013, the HDB resale price index has fallen by 11%. Due to the slowing economy and loan curbs, experts believe that prices will continue to stabilise in the coming months. ERA expects that the official HDB resale price index will fall about 1% this year compared to the 1.6% drop last year. According to SRX, HDB resale prices have fallen by 0.3% month-on-month in March in mature estates while the index remained unchanged for non-mature estates. Prices have however increased by 0.3% year-on-year in mature estates and 0.1% in non-mature estates in that same time period.

(Source: Business Times)

OUE offers 15% discount for Twin Peaks condo

Located near Leonie Hill Road, a high-end condo project, Twin Peaks is on sale. After a discount of 15%, prices now begin at $2,300 psf for units on the lower floors. To attract more buyers, a deferred payment scheme was also set up to allow buyers to defer payment of the balance sum, which is 80% of the total price, by 2 to 3 years. Buyers will have to pay another $1,000 to exercise the option to purchase (OTP) within 2 weeks and pay relevant stamp duties and $1,000 to take vacant possession of the unit within 8 weeks from the option date. In another scheme, buyers may exercise their OTP by the end of this year. Both schemes are offered under private treaties as the project has already received its Certificate of Statutory Completion.

(Source: Business Times)


Plum site at Cuscaden Road for sale

A 25,741 sq ft freehold site located at Cuscaden Road has been put up for sale and owners are expecting offers between $160- 170 million. The site is flanked by St Regis Residences Singapore and Tanglin Shopping Centre. It has been zoned for hotel use with a 4.2 plot ratio under the 2014 Master Plan. According to JLL, the marketing agent for the property, URA may consider other redevelopment proposals. Market experts predict that interest will be strong due the prime location. Also, the site may be redeveloped into a mid-scale to upscale hotel with around 300 rooms, added market experts.

(Source: Business Times)

CBD office rents fall by 3.9% in Q1

Quarter-on-quarter, office rents in the CBD have fallen by 3.9% in Q1 to $9.90 psf per month for the third consecutive quarter. Market experts believe that this is due to the global economic slowdown. According to the Business Times, Marina Bay office rents were the most affected as prices decreased 5% quarter-on-quarter to $11.90 psf per month. Office occupancy also fell by 0.4% to 93.9%. This is likely because tenants have moved out of Marina Bay and also due to the 1.9 million sq ft of office space at Marina One which is expected to be completed within these 2 years. Rents for Grade B offices in Shenton Way and Tanjong Pagar area had fallen 4% to $7.30 psf per month. Rents in that area however had only fell by 2.3% to $10.50 psf per month. According to DTZ, this was due to the area’s high occupancy rate of 97.4% and a lack of new office supply.

(Source: Business Times)

Sembawang Park site won for $51.07 million

A 99-year leasehold 0.7-ha private housing site near Sembawang Park has attracted 9 bids in a tender. The site’s highest bid stood at $51.07 million or $481 psf ppr. This was higher than the expected top bid of $470 psf ppr. The site may be developed into a part-three storey and part-seven storey project. The site may also yield 130- 140 units. The average selling price is expected to be between $1,000- 1,100 psf. While the site is not located near transportation nodes or amenities, market experts believe that it is still attractive as it is the only non-landed project within a 2-km radius in a precinct that is predominantly landed.

(Source: Business Times)

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