Singapore Property News This Week #41

Residential

A slew of projects awaiting their launches

The slew of projects waiting to be launched include both residential and office projects.

First up for the residential projects is Tuan Sing’s Seletar Park Residence located in Seletar. The 99-year leasehold 276-unit, five-storey condominium development consists of 93 one-bedroom, 113 two-bedroom, 46 three-bedroom and 24 four-bedroom units to be sold at around $1,244 to $1,512 psf. Other upcoming projects by Tuan Sing include a 99-year leasehold 312-unit condominium project next to Potong Pasir MRT Station and a freehold 63-unit low rise development located near the Botanic Gardens MRT Station. They are expected to be launched in end-June and end-September this year.

62-unit cluster housing Greenwood Mews located in the Bukit Timah, 416-unit Hillsta condo in Choa Chu Kang, and Palm Isles condo at Flora Drive in the Upper Changi area are also waiting in the wings.

Meanwhile, office projects would include PS100, a mixed hotel-strata office project developed by Far East Organisation located at Peck Seah Street near Tanjong Pagar MRT Station. The 27-storey tower comprises 314-room Oasia Downtown Hotel for its hotel component and 100 units of 402 – 507 sq ft strata office units with a higher-than-usual five-metre floor-to-floor height spanning from levels seven to eleven. It is to be completed in 2013.

Mass-market sector bounces back from ABSD decline

According to NUS’ Singapore Residential Price Index (SRPI), prices of completed properties in the Central Region declined by 1.9% in the past month and prices of small apartments (up to 506 sq ft) declined by 1% from December. This reflects the effect of ABSD in the Central Region where buyers tend to be foreign-based or companies or investors. On the hand, the sub-index for Non-Central Region (excluding small apartments) increased by 1% on a month-on-month basis in January.

The overall SRPI fell by 0.4%, showing the effects of the 25% fall in sales volume of the secondary market in 2011 and the 27% fall in the secondary market for property in the Central region, where ABSD hits the hardest, given that there are more foreign buyers in this region.

Average DC rates for non-landed residential use has been lowered by 3%

This is the first cut since September 2009 and the first cut since the increase of 12.2% in the previous revision. The average was derived from a combination of both decrements and increments of DC rates for different locations. The highest decrements of 14.3% were from the geographical sectors that include covering Punggol; Braddell/Bartley/Upper Aljunied; and Bishan/ Kovan. The DC rates for Pasir Ris/Loyang, Seletar and Tuas/Choa Chu Kang has also been lowered by 13.2%, 11.1% and 10.8% respectively. DC rates for prime locations Ardmore/ Draycott, Orchard, Cairnhill, Tanglin/Cuscaden, One Tree Hill, Leonie, Oxley, Sentosa Cove and Orchard has also been lowered by up to 6.9%. 66 of the 118 geographical sectors have their DC rates unchanged.

The average DC rates for commercial and hotel uses, however, have been raised by 6% and 15% respectively. For commercial use, the rates for 60 sectors (including Raffle Place, Marina Centre and Marina Bay) remained unchanged while the rates for the other 58 sectors increasing by 4.2% to 51%, with the highest increment of 51.5% from the geographical sector that comprises Seletar and Sengkang West Avenue. The rates for the sectors covering Punggol, Bukit Batok /Petir Road increased by 36.4% while the rates for the sectors covering Tuas/Choa Chu Kang/ Jurong and Sembawang/ Woodlands are seeing increments of 33.3%.

For hotel use, all geographical sectors except for two saw an increase in the DC rates, with the highest of 29% in the sector including Pasir Ris/Loyang, and 28.6% in the Alexandra sector and its surrounding areas. The Orchard and Singapore River areas and some parts of the financial district saw the smallest increase of 7.1%.

The rates for industrial use and landed residential use remained unchanged.

In addition, the revision also included ‘community and sports and fitness buildings’ under use group E which covers ‘place of worship, community building, educational and institutional uses, government building’ to differentiate these facilities from similar facilities for commercial use, which goes under group A.

Bungalow on Sentosa Cove sold for a record $39m

A seafronting bungalow at Cove Drive in Sentosa cove was sold for a record of $39 million, breaking the previous record of $36 million for a bungalow on Paradise Island. The price translates to $2,448 psf based on the 15,929 sq ft land area on which the bungalow with five bedrooms, a spacious living area and an entertainment room is built on. After the initial decline in demand for bungalows as a result of the ABSD, the market has since picked up, including property in Sentosa Cove.

Upper Serangoon EC site closes with 7 bids, top bid at $303 psf ppr

The 133,388.4 sq ft site at Upper Serangoon has a plot ratio of 3.5 and is expected to yield 435 units.  It attracted 7 bids, with the top bid of $303 psf ppr from Ho Lee Group and Evia Real Estate Management. The estimated break-even cost is between $550 to $650 psf, with an estimated selling price between $670 and $720 psf. If awarded the tender, the plan is to build around 400 units of various sizes and to launch it in late March.

Commercial

Fall in rents for CBD Grade A office space in Q4 2011

From Q3 to Q4 2011, the rental rates for CBD Grade A office space fell by 1.6% to $8.93 psf per month, resulting in a year-on-year growth of 13% compared to 2010’s 24.5%. Despite the expected further decline of rents by around 10-15%, analysts are optimistic given that firms are expected to retain their offices in Singapore to take advantage of Asia’s growth.

Competitive bidding expected for Tai Seng industrial site under reserve list

The 58-year leasehold 1.18-hectare industrial site with a maximum permissible gross plot ratio of 3.5 is located at Tai Seng Street next to Tai Seng MRT station, the reason for its attractiveness to developers. However, this location would also mean that developers cannot strata sub-divide the development in the first 10 years after the project is completed, leading to it fetching a potential $250 to $260 psf ppr, 25% less than what it could have fetch before the implementation of this regulation.

Located in the centre of the Paya Lebar iPark, a lifestyle park, the mixed use development will likely have a basement leading to Tai Seng MRT station and 28% of its floor area for retail and food & beverage purposes. Given its attractiveness, this site is likely to be triggered for sale.

Leave a Reply

Your email address will not be published. Required fields are marked *