Property market may heat up from QE3

With the influx of US$40 billion into the US economy each month under the QE3, there have been worries that this could lead to an influx of foreign funds into the property market in Singapore, potentially leading to more rounds of cooling measure. However, some said that it is too early to be sure of any impact that the QE3 has on the local property market, especially since recent deals sealed usually involved local buyers. The government may also have differential measures in future cooling measures so as to not penalise genuine owner-occupiers. The current demand for property is not solely due to the low interest rates, the large number of immigrants, and shoebox units with lower absolute prices also play a part.

(Source: Business Times)

Private home sales fell by 27% in August

1,421 units excluding ECs were sold by developers in August, a 27% fall from 1,946 in July. This does not come as a surprise since there tends to be slower transactions in the Hungry Ghost month. This is due to the relative lack of new launches (37% fall from July) in the month, leading to buyers turning to projects launched before August. Only a third of the 1,118 homes launched in August were from new projects, which sales took up only 14.5% of the 1,421 units sold. Sales are expected to rise in September since there will be more launches then, with around 1,600 to 1,800 units sold. There was also an increase in sales for projects in the mid- to high-end segment compared with July, with 28% of units sold at prices above $1,500 psf, compared to 18% in July while sales in the Outside Central Region (OCR), fell by 45% to 835 units and sales in the Rest of Central Region grew in August compared to July. A total of 15,295 homes have been sold this year so far, compared with 15,904 for the whole of last year. 118 EC units were sold in August, all of which were from existing projects as there were no new launches during the month, compared to the 124 units sold in July. 2,668 ECs have been sold in the year so far, 7% lower than the 2,883 ECs sold in 2011.

(Source: Business Times)

Freehold Green Lodge sold for $191.888 million to private investor

The 151,075 sq ft site at Toh Tuck Road off Jalan Jurong Kechil in Upper Bukit Timah vicinity was sold for $191.888 million or $907 psf ppr based on the 1.4 plot ratio. Taking into account the 1.4896 approved density of equivalent plot ratio based on a slighter larger original land area which would allow an 8.9% balcony space, the unit land price will be $833 psf ppr since no development charge is payable. However, an $827,000 development charge is payable if it is developed up to 10% balcony space, bringing the breakeven cost for a new development to $1,100 psf. It can be developed into a five-storey condominium. The site is located within 1 km of the popular Pei Hwa Presbyterian Primary School and 800 metres from the future Beauty World MRT Station on the Downtown Line.

(Source: Business Times)

99-year Dairy Farm Rd residential plot attracts $244.32m top bid

The 188,861.2-sq-ft private housing site on Dairy Farm Road drew a total nine bids, with the surprising top bid of $244.32 million or $616 psf ppr from a First Shine Properties and Meadows Bright Development tie-up. The site has a maximum GFA of 396,617.4 sq ft, a part-five-part-15-storey height restriction and can be developed into no more than 526 units. Its attractiveness could be due to the relative limited supply of residential sites in the Bukit Timah area, its proximity to the future Hillview MRT Station on the Downtown Line, and an expectation of increasing private property prices as a result of the QE3.

(Source: Business Times)

99-year-leasehold eCO in Bedok South Avenue 3 proved popular

Over 220 of the 262 released units at the 748-unit project has been sold at an average of $1,250 psf to mainly Singaporeans and PRs, with those who bought on the first day enjoying up to 18% discounts. The current 14% discount brings the average selling prices up to $1,300 psf. There are 246 suites, 220 Soho (small-office-home-office) apartments, 34 townhouses and 248 condominium units in the project, with prices starting at $745,000 for a 549-sq-ft suite with one bedroom. The 581 sq ft to 1,098 sq ft two-bedroom units were sold the fastest.

(Source: Business Times)

90% of units at freehold Gambir Ridge sold at preview

70 of the 77, or 90% of the units (ranging from one- to four-bedroom units) at Gambir Ridge, a freehold condominium at Bartley Road, were sold at above $1,400 psf at their preview. There are one-bedroom units (570-732 sq ft), two-bedroom units (710-1,130 sq ft), three-bedroom units (915-1,119 sq ft), four-bedroom units (1216-1,442 sq ft) and penthouse units (1,119-1,938 sq ft) in two five-storey blocks of residential units and a basement car park in the development, which also features barbecue terraces, a rooftop lap pool, a jacuzzi and a gym. Its appeal is attributed to its attractive pricing, its proximity to Bartley and Woodleigh MRT stations, as well as Nex Mall, Heartland Mall and myVillage (formerly Serangoon Garden Village).

(Source: Business Times)


CPF Board to sell its space at freehold 79 Anson Rd

CPF Board is selling its 88,636 sq ft NLA of space (office space from levels 16-23 and a ground-floor retail unit facing Anson Road) at 23-storey 79 Anson Road, which is located 250 metres from Tanjong Pagar MRT Station, through an expression of interest exercise closing on Oct 23. It is expected to achieve price of $200 million or $2,000 psf on the 100,007 sq ft strata area, which comprises 17 strata titles. Most levels have two separate strata titles of about 4,746 sq ft and 6,339 sq ft each. The remaining 117,423 sq ft strata area consisting of 22 strata titles on levels 1 and 5-15 may also be sold by owner SEB. Its existing 289,185 sq ft GFA exceeded the 275,369 sq ft GFA based on the 8.4 plot ratio designated for the 32,782 sq ft site zoned for commercial use under Master Plan 2008. The site can be built up to 35 storeys. However, even if a buyer purchase the both the space offered by CPF Board and SEB’s space, the property cannot be redeveloped immediately as an anchor tenant that occupies around 75% of CPF Board’s space recently renewed its lease till early 2016. The space offered by CPF Board is currently fully leased at an average of $5.84 psf per month, a 3% net yield. The development also offers 145 car park lots on levels 2-4.

(Source: Business Times)

Mandarin Orchard Singapore and Mandarin Gallery may be sold

Owner of the two properties, Overseas Union Enterprise (OUE), is said to have given exclusivity to a potential buyer to perform due diligence. Mandarin Orchard Singapore (valued at $1.18 billion at the end of last year) and the adjoining Mandarin Gallery (valued at $520 million at the end of last year) both sits on a site with a remaining lease term of about 44 years. The 1,051-room Mandarin Orchard Singapore comprises a 37-storey tower and a 39-storey tower while Mandarin Gallery has a 152-metre long frontage on Orchard Road and a 196,337 sq ft GFA.

(Source: Business Times)

Freehold Upper Paya Lebar industrial building up for sale

Eight-storey Tropical Industrial Building at 14 Little Road off Upper Paya Lebar Road, has been put up for sale with an indicative price of $32 million, or $513 psf ppr. There are eight strata-titled units with 50,289 sq ft total strata floor area and a total GFA of 62,375 sq ft in the building. No development charge is payable to redevelop the 22,126 sq ft site to its full potential of 62,375 sq ft GFA, based on its 2.5 plot ratio. It is likely to appeal to end-users seeking a standalone property and developers seeking industrial sites for strata development. The site is expected to be popular since it is centrally located, near residential areas and eateries at the shophouses at the junction of Upper Paya Lebar Road and Little Road.

(Source: Business Times)

URA to launch 0.66 ha “white” site at Thomson Rd

The “white” site at Thomson Road/Irrawaddy Road which can be put to commercial, residential or hotel use was triggered by a commitment of $211.3 million, or $700 psf ppr. However, at least 30% of its 301,852 sq ft maximum permissible GFA must be set aside for hotel use. It is expected to draw five to eight bids, all above $1,000 psf ppr, given its proximity to Novena MRT Station, medical centres such as Tan Tock Seng Hospital, Novena Medical Centre and Mount Elizabeth Novena Hospital, and commercial developments such as Velocity @ Novena Square, United Square and Square 2. The site will likely be developed into a project with serviced apartments, hotel, and retail to cater to the medical facilities in the area. The public tender will be launched in two weeks and last for eight weeks.

(Source: Business Times)

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