Here’s our summary of the important residential, commercial and industrial news this week. We hope this helps you to save time catching up on the news!


Grand Tower at Novena up for sale at $88.8 million

21,742 sq ft Grand Tower located in Novena is up for sale with an asking price of $88.8 million ($1,381 psf ppr). The freehold residential site, which currently houses a 33-year-old tower block with 28 apartments of approximately 1,873 sq ft each, can possibly be redeveloped into a luxurious lifestyle development with permissible GFA of 5,974.64 sq metres (approximately 64,310 sq ft). Savills mentioned that the site can house 74 apartments of 800 sq ft each on average. Judging from the asking price, the project breakeven cost of the site is around $1,900 to $2,000 psf, with no DC payable.

DBSS scheme under review thanks to $880,000 unit at Centrale 8

The high asking price for DBSS flats came under the spotlight when the asking price for a unit at Centrale 8 reached $880,000. According to Minister Khaw, the DBSS scheme is being reviewed and upcoming DBSS land sales have been withheld. For example, HDB has withdrawn the tender for a 2.3 hectare DBSS site at Sengkang which was launched last month and expected to end on July 20. Also, HDB will not be putting the DBSS site in Bendemeer up for sale as was previously planned. However, old tenders and DBSS sites sold last year, which includes the Centrale 8 site, will still begin their sales in the upcoming months.

Tender for Laguna Park closed; Crystal Tower and Daisy Apartments up for en bloc sale

The tender for Laguna Park collective sale with an indicated price of $1.33 billion was closed as a private treaty is being negotiated. Residents can likely receive around $2.2 million each if a deal is reached. At Ewe Boon Road, Crystal Tower is up for collective sale at a stated price of $155 million. Sitting on a 60,482 sq ft freehold site with a gross plot ratio of 1.6, the breakeven cost for Crystal Tower is estimated to be around $2,200 to $2,300 psf with no DC payable. Owners are likely to receive about $5 million to $10 million each from the sale, given the $1,600 psf ppr stated price. Similarly, Daisy Apartments that sits on a 13,000 sq ft plot is up for sale and expected to fetch a price that exceeds $14.5 million.

Mandopop Singer JJ Lin purchased Twin Peaks 571 sq ft one-bedder unit

The 99-year leasehold Twin Peaks project, which consists of 462 units in two identical 35-storey towers, has again attracted a celebrity buyer. Apart from Jackie Chan and Wakin Chau, Singapore-born singer JJ Lin also purchased a 571 sq ft one-bedder unit in Twin Peaks. Twin Peaks units are trading at around $2,850 psf and the development is estimated to complete by 2014. Developer OUE has sold about 60 units when the project was launched last year, and the highest price fetched is $3,170 psf. When a new showflat is ready later this year, OUE will likely relaunch the project.

Average investment deal size in Q2 was 17.9% higher than Q1 with foreigners accounting for 17.6% of all deals transacted: DTZ

The investment sales transacted in Q2 was around $8.3 billion, a slight increase from the $8 billion achieved in Q1. DTZ noticed that the number of foreigners responsible for all property investment deals in Q2 was 17.6%, an increase from the 10.5% in Q1. Sales of GLS sites, which made up 55% of total investment sales at a total of $4.6 billion, was the largest portion in Q2 investments; the 16 sites awarded from GLS programme in Q2 doubled the amount in Q1. Also, the average deal size in Q2 was 17.9% higher than that of Q1.

Sales result for units in Skyline Residences, Blossom Residences EC, Thomson Grand Condo, and a project opposite Singapore Island Country Club

In Telok Blangah area, 80 out of 100 units of freehold Skyline Residences have been sold at $1,800 to $1,900 psf on average. The cheapest unit, which was sold at approximately $950,000, is a 484-sq-ft-one-bedder unit. Over at Bukit Panjang, around 150 units of 99-year leasehold Blossom Residences EC have been sold at an average price of$685 psf. A two-bedroom unit costs at least $548,000 and a four-bedder unit costs at least $841,000. Along Upper Thomson Road, the first 50 units at Thomson Grand Condo that were set aside for first day preview have all been snapped up at an average price of $1,330 psf. Also, the 99-year-leasehold project opposite Singapore Island Country Club sold 11 out of its 22 strata terraces; the highest price fetched was $4.1 million.

A Punggol EC site attracted only 3 bids while 150 units were sold for Blossom Residences EC on its first day of sale

A Punggol EC site attracted only three bids and the top bid of $270.08 psf ppr was below market expectations of $300 psf ppr to $350 psf ppr. CBRE estimated that the breakeven cost for a project at the site will fall between $570 psf to $600 psf. Over at Segar Road, about 150 units of the 602-unit Blossom Residences EC were sold on its first day of sales at an average price of $690 psf. Prices for two-bedders fall between $548,000 to $590,000, ‘compact’ three-bedders starts from $659,000, normal three-bedders starts from $723,000, four-bedroom dual-key unit starts from $931,000, and penthouses range from $1.088 million to $1.276 million.


Office rents increased in Q2 but growth will probably slow down when supply for office space increased

DTZ noticed that the average gross rent of offices in Raffles Place and Harbourfront increased 5.4% to $9.80 psf pm and 4.3% to $7.30 psf pm over the quarter in Q2 respectively. According to CBRE, overall rents for Grade A offices increased 2.9% over the quarter to $10.60 psf pm while prime office rents increased 2.3% to $8.80 psf pm in Q2. CBRE predicted that about 8.4 million sq ft of office space would be built from 2H 2011 to 2015; CBRE is positive that demand for office space will increase and rate of rental growth will then be moderated. Similarly, DTZ predicted that average office rent in Raffles Place will increase by 15% to 18% in 2011 while rate of growth will slow down in future with increased supply.

Strong growth for industrial leasing and sales market in Q2

Prime ground-floor factory space average monthly gross rent in Q2 increased 7.1%, more than the 3.4% hike in Q1, to $2.25 psf; prime ground-floor warehouse space average monthly gross rent increased 6.4%, more than the 4.8% hike in Q1, to $2.34 psf. Also, the industrial sales market also looks optimistic. Developers are launching several projects such as the Oxley Bizhub in Ubi. Colliers noted that the average capital value for prime freehold ground-floor factory space saw a 3.2% hike to $574 psf from Q1 to Q2, while prime freehold ground-floor warehouse space increased 7.5% to $571 psf over the same period.

Office micromarkets in Tanjong Pagar and Cecil Street/Robinson Road fetch high prices as office investment sales continue to rise

In Tanjong Pagar, a 12-storey freehold office building RCL centre with existing NLA of approximately 92,500 sq ft was sold for around $175 million ($1,890 psf), higher than the $1,476 psf paid for nearby Genting Centre this February. Also, the $2,600 psf price paid for two office spaces at Samsung Hub recently is higher than the $2,125 psf paid for four floor floors in the building last August. 13-storey freehold 135 Cecil Street with NLA of 85,431 sq ft is said to have received a $2,200 psf offer, setting a new price record in Cecil Street area. Similarly, nearby freehold Finexis Building has received an offer close to $2,000 psf while Robinson Point has attracted a price of $2,250 to $2,300 psf.

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