Residential

Freehold Tai Keng Court up for sale with asking price of $130m

Tai Keng Court consists of 56 strata apartments and 23 commercial units in the two blocks sitting on the103,798 sq ft site with a 1.4 gross plot ratio. It can potentially be amalgamated with a 4,988 sq ft state land to yield a site with a 152,301 sq ft GFA. This combined site can built up to five stories, yielding 121 950 sq ft residential units and 30 700 sq ft commercial units. The site is on the market with a $130 million price tag and $1.325 million for the development charge, equivalent to $903 psf ppr based on the GFA of the un-amalgamated site.

Developers can redevelop the site into an integrated development that has proved to be popular in recent launches with a commercial component since the plot is zoned for commercial and residential use. The site is also well located, being near MRT stations such as Serangoon MRT and shopping malls like the NEX Mega Mall as well as schools such as Cedar Primary and Cedar Girls Secondary schools. The tender closes on March 21.

Sharp increase in private home sales in January

A total of 1,872 private homes, excluding ECs, were sold in January, almost three times the 632 units sold in December in 2011. 205 EC units were also sold in January, around five times the 38 sold in the previous month. The sharp increase in sales was a surprise since there is a tendency for the sale figures to fall in the Chinese New Year Month. Furthermore, the ABSD is expected to deter some buyers from purchasing private homes. However, the strong sales could be due to the demographics of the buyers, who are first-timers or buyers investing in a second home, and therefore are not affected by the ABSD. Furthermore, the strong sales are driven by two mixed developments with locations – Watertown and The Hillier.

The market for homes in outside core region (OCR) is doing well, with 1,975 units released and 1,761 units sold in January, compared to the 764 released and 489 sold in December 2011. The market for homes located in the core central region (CCR), however, has no launches and only 17 units sold in the same month. The proportion of ‘$1,000 psf and under’ units sold decreased from 36.9 per cent in November 2011 to 24.3 per cent in January 2012, while the proportion of ‘more than $1,000 psf to $1,500 psf’ units sold increased from 51.9 per cent in November 2011 to 71.4 per cent in January. This may be a result of developers increasing the prices as the demand for such units is strong.

Three out of the four 99-year leasehold sites released for sale are EC sites

The four 99-year leasehold sites which are expected to yield a total of 2,070 units, consists of three EC sites (one under the reserve list) and one site for strata landed housing or condominium development.

Some analysts feel that the increase in EC supply will cause the prices to fall by around 5%, citing the predicted buyers’ shift to BTO flats as a result of the increase in BTO supply and potential increase in percentage allocated to second-timers, and the multitude of choices buyers now have that allow them to wait for other EC launches as reasons. Others feel that the increased supply may be to match the expected increase in demand as the number of eligible buyers increase with the raising of the income ceiling from from $10,000 to $12,000 in August 2011.

The first on the confirmed list is a 142,533 sq ft site located at Punggol Central/Edgefield Plains. Its 3.0 plot ratio allows for a maximum GFA of 427,600 sq ft that can potentially yield 395 units. The site is expected to attract four to eight bids with a top bid of between $280-$320 psf ppr.

The 236,804 sq ft site located at Fernvale Lane with its 3.5 plot ratio and 828,816 sq ft GFA has a potential yield of 770 units. The site is expected to draw four to 10 bidders, with a top bid between $270-$310 psf ppr.

The tenders for the sites at Punggol Central and Fernvale Lane will close on March 29 and April 3 respectively.

The third EC site is on the reserve list. The 201,327 sq ft site located at Punggol Way/Punggol Walk has a GPR of 3.0 which allows it to yield potentially 560 units. However, with the abundant supply in the market, the site may not be triggered. Nonetheless, if triggered, the site could go for $157 million to $181 million, or $260-$300 psf ppr.

A non-EC site released on the confirmed list is a 251,036 sq ft site located at Elias Road/Pasir Ris Drive 3. The site zoned for strata landed housing or condominium/flats has a plot ratio of 1.4 and can potentially yield 345 units. With its good location (near a landed housing estate, Elias Mall and Pasir Ris Park), a top bid of $420-$470 psf ppr with eight to 12 bidders is predicted.

The tender for the site will close on April 11.

Ultra Mansion up for collective sale with an asking price of $170m

The 13-storey residential development sitting on a 45,512 sq ft site near Novena MRT station is asking for $170 million or $1,334 psf ppr based on the maximum GFA of 127,433 sq ft from its 2.8 gross plot ratio. If the additional 10% balcony space and $8 million development charge, the price will be $1,270 psf ppr. It is expected to be popular, since it is located in Novena Hub and not too large. The site could be potentially developed into a lifestyle studio apartments development or SoHo development since there are not many such developments in the region.

The tender for this site will close on March 22.

Commercial

Competitive bidding for Aljunied industrial site predicted

The 0.63-heactare industrial site at the junction of Sims Drive and Aljunied Road is expected to attract many developers despite being next to Aljunied MRT, a location which prevents strata sub-dividing of the development in the first 10 years after the project is completed. Even after the 10 years, the condition for strata sub-dividing requires a minimum strata unit size of 1,615 sq ft gross floor area (GFA). Without these new conditions, the site could have fetched $240 and $290 psf ppr, compared to the $160 to $200 psf ppr it is predicted to fetch now.

Nevertheless, the good location of the site (being near the MRT station and the Kallang Distripark) and its size may still attract 10 bidders. The 67,944 sq ft site has a gross plot ratio of 2.5 and is zoned ‘Business 1’.

The tender for the site closes on April 10.

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