Residential

Freehold Kismis Lodge sold for $84m

Kismis Lodge located near Toh Tuck Road has been sold collectively at $84.18 million, or $1,198 psf based on its 70,283 sq ft land area. Zoned for a three-storey mixed landed development, it has can potentially be redeveloped into 43 terrace houses or 32 semi-detached houses, subject to approval. There are currently 64 units in the two blocks of walk-up apartments.

(Source: Business Times)

PR’s share of private property purchases fall in February

Following the latest increase in ABSD rates, PR’s share of private home purchases (both primary and secondary markets) have fallen by a 5.7 percentage point to a 12.7% share of 789 caveats lodged for private home transactions in February from 18.4% of the total 2,876 caveats in January. Singaporean’s share of purchases, however, saw a 5.5 percentage point increase to 76.6% in February from 71.1% in January while non-PR foreigners’ share remained similar at 10.1% in February, a mere 0.1 percentage point increase from 10% in January. The number of caveats lodged by PRs, non-PR foreigners and Singaporeans fell by 81.1%, from 530 in January to 100 in February, 72.3% from 289 to 80 and 70.5% from 2,046 to 604, respectively. Nevertheless, PR’s share of purchases is expected to recover for those buying for occupation.

(Source: Business Times)

Freehold Meyer Rd bungalow up for sale

The freehold bungalow sits on a 25,525 sq ft regular-shaped site located at Meyer Road near East Coast Park is asking for $35 million or $1,371 psf ppr. Zoned for “residential – two-storey bungalow” use, it can be potentially redeveloped into conventional or strata bungalows. The tender will close on April 23.

(Source: Business Times)

Prices of completed condos fall in February

According to NUS’s SRPI, prices of completed non-landed private homes excluding ECs fell by 1.4% in February from January. Specifically, the sub-index for Central Region (excluding small units) fell by 3.7% while the sub-index for Non-Central Region (excluding small units) increased by 0.5%. This may a result of some investors shifting their interest from the Central to Non-Central Region. Meanwhile, the sub-index for prices of completed small apartments and condo units (up to 506 sq ft) islandwide fell by 0.1% in February.

While both the primary and secondary market was affected by the cooling measures and Chinese New Year season in February, the primary market is recovering faster than the secondary market since developers are offering attractive incentives and buyers do not have to make an upfront payment unlike in the secondary market. Further, owners in the secondary market are less willing to settle for a lower price since they may be affected by the ABSD or lower LTV limit if they were to purchase a replacement property. Resale transactions excluding ECs fell from 879 in January to 248 in February.

(Source: Business Times)

Three 99-year leasehold residential sites released

THREE 99-year leasehold sites with a potential 845 private homes and ECs have been released for sale, this include a site at Coronation Road and a site at Woodlands Avenue 5 under the reserve list and a site at Jalan Bunga Rampai under the Reserve List.

The 403,000 sq ft site at Coronation Road in a private landed estate near Nanyang Primary School and Hwa Chong Institution can yield 140 landed homes and is expected draw 5-17 bidders with bids around $1,400 psf ppr given its location and the scarcity of such sites.

The Woodlands Ave 5 EC plot, however, can yield 590 units with its 633,000 sq ft maximum GFA, and is expected to draw 4-8 bids of $300-340 psf ppr. While any project on the site can only be launched 15 months from the award of the sites or after foundation works are completed, whichever is earlier, it is likely to benefit from being part of the future North Coast Innovation Corridor, an area of economic growth in the recent Land Use Plan.

The Jalan Bunga Rampai site with a maximum GFA of about 105,000 sq ft can yield around 115 units and is expected to draw 5-12 bids of $520-575 psf ppr.

The tenders for the Coronation Road and Woodlands Ave 5 sites will close on June 20 and May 9, respectively.

(Source: Business Times)

Commercial

Q1 sees 42% fall in property investment sales

The investment sale of properties has fallen by 42% from $8.88 billion in Q4 2012 to $5.13 billion in Q1 2013 so far. Nevertheless, the year-end total is expected to be at the same level as 2012’s or even higher, with $31.39 billion or more. The fall in this quarter can be attributed to the traditional slower Chinese New Year season, fall in state land tender awards, and response to the latest cooling measures. Investment sales in the residential sector fell by 31% to $2.3 billion with transactions falling from 50 deals ($835 million) in Q4 to 27 deals ($456 million) in Q1. Three collective sales have also been transacted at a total of $247.8 million. The commercial sector saw a 46% fall to $1.6 billion in Q1 while the industrial sector aw an 8% increase to $608 million in Q1.

(Source: Business Times)

7th and 8th floor of One Sims Lane up for sale

The seventh and eighth floors of eight-storey One Sims Lane, a freehold Business 1 zoned development located along Lorong 23 Geylang has been put up for sale by expressions of interest. Each offers a 22,500 sq ft strata floor area, with a combined strata area of 48,739 sq ft. The building offers parking on the first two levels, three passenger lifts, two goods lifts and two loading bays. It is located near Aljunied MRT station, and fairly accessible from the CBD and the airport, making it also fairly accessible. It can also potentially be strata-subdivided in the future. The two floors are currently fully leased $3 psf. The expressions of interest exercise will close at 4pm on April 26.

(Source: Business Times)

Minimum average size of retail units set at 50 sq m

To prevent the rise of small units that may not serve their intended purpose and cause disamenities, URA has set the minimum average size for retail units at 50 sq m (538 sq ft). In addition, the minimum corridor widths for retail developments were also set at two to 2.4 m for single loaded corridors, and 2.4 to three m for double-loaded corridors. These measures were not meant to cool the strata retail market but to ensure a good shopping environment since small shops may be targeted at investors rather than most retailers that need a bigger space. A narrow corridor may also not be able to handle pedestrian traffic at busy times. The new guidelines are welcomed since the small units may not be a sustainable investment. The latest guidelines are likely to result in a fall in rental rates and rental returns, since smaller units usually fetch a higher psf rent. Land bids for mixed-use developments may also fall as a result.

(Source: Business Times)

All 93 Pavilion Square retail units sold

All 93 retail units in Pavilion Square, a mixed development in Geylang Road has been sold at a range of prices from $2,000-2,400 psf for third-floor units with open terraces and “flat roof” space above to $10,879 psf for a 118 sq ft street-fronting F&B unit on the first level. Six other F&B units at the same level were sold at above $10,000 psf, with other units at the same level sold at above $8,000 psf. Unit sizes range from 86 to 926 sq ft with most at 108-129 sq ft. Its apartments, however, has not one as well, with only 15 of the 42 apartments sold at prices ranging from $1,400 to $1,600 psf. Sizes start from 398 sq ft for a one-bedroom unit, with the biggest unit being an 818 sq ft two bedroom-plus-study unit.

(Source: Business Times)

Office demand supported by lower rents in Q1

Supported by lower rents, vacancy rates for offices fell by 0.7 percentage points to 5.1% in Q1 from 5.8% from the last quarter, with net absorption increasing from 272,000 sq ft in Q4 2012 to  375,000 sq ft in q1 2013. Grade A offices saw a 0.3 percentage point fall to $9.55 psf per month in Q1 while vacancy rates inmproved to 7.1% from 8.8%. For Grade B offices, rents also fell by 0.3 percentage points to $7.09 psf per month while vacancy rates improved to 5.4% from 5.9%. In the pipeline for 2013 are around 2.5 million sq ft of office space supply from Metropolis and Nexus@ one-north, JEM in Jurong East and Asia Square Tower 2 in the CBD among others. As projects such as Metropolis and JEM have pre-commitment levels of 70% and 100% respectively, rents are expected to remain steady in decentralised areas while rents in the CBD are likely to fall in 2013, given the much lower pre-commitment levels of 12% at Asia Square Tower 2.

(Source: Business Times)

Restored three-storey Chinatown shophouse up for sale

The three-storey restored shophouse sits on a 999-year 1,316 sq ft site at 81 South Bridge Road, near the junction with North Canal Road.  Zoned for commercial use with the first storey for activity-generating uses, it has a 5,656 sq ft GFA. It features include a mezzanine floor and an open roof terrace, and a column-free design and en-suite bathrooms on every floor after restoration. The currently vacant property is asking for $13.8 million. It is expected to see strong demand given its location and the scarcity of such property. The expression of interest will close at 3pm on April 25.

(Source: Business Times)

Lian Beng unit Wealth Development bought Changi Road freehold commercial plot

Wealth Development, a wholly owned subsidiary of Lian Beng Group, has purchased a freehold commercial plot at Changi Road for $68 million and is intending to redevelop the property with two partners Kim Seng Heng Realty and Development 16 – wholly owned subsidiaries of KSH Holdings Ltd and Tee International, respectively. The developer is said to be developing the 17,974 sq ft site with a GPR of 3 into a mixed-use development that will have both office and retail space.

(Source: Business Times)

30-year Loyang Way industrial site up for sale

The 222,092 sq ft industrial site located at Loyang Way for sale by public tender. Zoned for Business 2 development, it has a 2.5 GPR and can be strata-subdivided. It is expected to see much interest given the scarcity of such sites in the area and assuming no restrictions on the strata title. Some expect top bids of $100 psf to over $130 psf ppr while others predict a top bid of $50-70 psf ppr, citing its irregular L-shape and narrow length. The tender will close on May 9 at 11am.

(Source: Business Times)

Property auctions market picks up

The total sales value of the property auctions market excluding those sold by statutory boards in Q1 2013 was $76.08 million from a total of eight properties, more than the full-year figure of $62.44 million in 2012. At least $150 million worth of transactions is expected to be completed by this year. The strong performance was despite the latest round of cooling measures in the secondary market, since there were four high-value sales accounting for a total sales value of $70.1 million or 92.1% of total sales value in Q1. These include two shophouses which usually offers yield of 2-4% per annum, and a GCB plot at Chee Hoon Avenue near Botanic Gardens MRT station which was sold for $22.9 million. More high-value properties are expected to be put up for auction since it reaches out to more buyers with generated publicity though transactions are likely to be mainly from the industrial and commercial segment given the cooling measures in the residential segment.

(Source: Business Times)

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