Khaw cautions against buying beyond means

Minister for National Development Khaw Boon Wan advises against buying homes against financial means and taking up loans with 50-year loan terms. He also noted that first-timers are more successful in their BTO applications for flats in non-mature estates and that second-timers can also rely on the government for help, adding that he would be focusing on second-timers and improving their chances on getting new flats.

(Source: Business Times)

20,000 new flats to be launched in 2013

HDB will be building at least 20,000 new flats in 2013, in addition to the 8,000 new flats and 3,000 balance flats that will be launched by the end of 2012. First-timer application rates for the July BTO launch was similar that of May’s at 1.7, while the second-timer application rate has increased from 9.5 to 11.4. Since the first-timer application rates remained below 2.0, it meant that almost all first-timers will get the chance to select a flat when they apply, especially in non-mature estates. 11,634 applications have been submitted for the July BTO launch, including studio apartments.

(Source: Business Times)

99-year-leasehold Bright Hill Drive private residential plot attract top bid of $291.5 million

The top bid of $291.5 million or $719.9 psf ppr from UVD Pte Ltd, a joint venture company between Singapore Land and UOL Group, exceeded the earlier expectations of a $550-$620 psf ppr top bid. The 144,635.6 sq ft site with a maximum GFA of 404,979.7 sq ft is zoned for condominium; or flats; or a combination of flats and strata landed houses subject to approval. Despite the high bid, there were only a modest six bids for the site (probably as a result of the irregular layout and narrow access), though the site has attractive attributes such as the view of MacRitchie Reservoir, proximity to amenities like Thomson Plaza and Ai Tong School, the affluent neighbourhood, and the lack of supply. UVD plans to build a 20-storey, 420-unit condominium on the site with a breakeven price of around $1,100 psf, and possibly an average selling price of around $1,250-$1,300 psf.

(Source: Business Times)


Expression-of-interest exercise for 60-year leasehold Toa Payoh industrial site

The 44,906 sq ft site located along Lorong 5 Toa Payoh is asking for $23 – 25 million. A four-storey light industrial building with an 83,342 sq ft GFA and a 58,194 sq ft NLA sits on the site, which is zoned “Business 1” with a 2.5 gross plot ratio and a 112,265 sq ft allowable GFA. The site’s attractiveness lies in its proximity to the Toa Payoh MRT station and bus interchange, and the residential areas, as well as its 850m frontage along Lorong 5 Toa Payoh which can be used for display purposes. The exercise closes at 3pm on Sept 18.

(Source: Business Times)

Cautious market sentiment in Q2

According to the latest survey by the Real Estate Developers’ Association of Singapore (Redas) and the National University of Singapore (NUS), the market sentiment has improved slightly. The Composite Sentiment Index, which indicates the overall real estate market sentiment, increased from 4.6 in Q1 to 4.7 in Q2, while the Current Sentiment Index which compares the current overall Singapore real estate market conditions with the conditions six months earlier, and the Future Sentiment Index which overall property conditions over the next six months both increased by 0.1 to 4.9 and 4.5 respectively in Q2. The survey results also indicated the top three potential risks that may adversely impact market sentiments – a slowdown in the global economy and oversupply of new property launches and new development land.  There is a general cautious market sentiment though the hotel sector has a net positive sentiment of 33% while the office sector has a net negative sentiment of 31 per cent.

(Source: Business Times)

Tuas South industrial sites popular with bidders but Mandai Link site less so

The tender for the four plots zoned for Business-2 development closed with mixed results with the 30-year leasehold 240,745.62 sq ft plot with 2.5 GPR at Mandai Link drawing only two bids and the three Tuas South sites drawing eight to 13 bids. The top bid of $45.29 million or $75.25 psf ppr for the Mandai Link site is from Soilbuild Group.

Meanwhile, the three 23-year plots at Tuas South Street 7 and 8 have done well. 48,987.63 sq ft Plot 13 at Tuas South Street 7 attracted 12 bids, with the highest bid of $3.82 million or $77.84 psf ppr from Chip Eng Seng Contractors. 32,680.31 sq ft Plot 15 on Tuas South Street 8 attracted 13 bids with the top bid of $1.79 million or $54.72 psf ppr from Transco-Pac Transport & Environmental Pte Ltd while the 32,679.23 sq ft Plot 17, also on the same street, attracted eight bids with the top bid of $1.49 million or $45.58 psf ppr from P-One.

Most bids are from end-users who are actively bidding for these sites since such sites are in limited supply. The relative lack of developers is likely due to the shorter leases.

(Source: Business Times)

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