Singapore Property News This Week #144

Residential

New launches to boost private housing sales

New property launches are expected to give a boost to developers’ private housing sales in February and March, after only 565 units being sold in the primary market in January 2014. Although this figure for is higher than the 259 private homes sold in Dec 2013, it decreased 72 percent year-on-year, and is also the lowest figure recorded for the month of January since the 108 units in January 2009 after Lehman’s collapse. Developers were thought by market watchers to hold back launches before Chinese New Year due to the weak sentiment since the introduction of the Total Debt Servicing Ratio (TDSR) in June 2013. The top-selling project last month was the 281-unit The Hillford in Jalan Jurong Kechil in the Upper Bukit Timah area with a median price of $1,105 psf.

(Source: Business Times)

Good Class Bungalow market recovering

The Good Class Bungalow market is reported to recover with at least 6 transactions since the start of the year which total about $170 million. Along Margoliouth Road off Stevens Road, an old two-storey bungalow was sold by a retiree couple to Imelda Tanoto for $30.8 million, or $1,696 psf on its land area of 18,161 sq ft. Tanoto is reported to own an adjoining bungalow while her parents own another bungalow nearby.

(Source: Business Times)

Cooling measures to stay in place

Finance Minister Tharman Shanmugaratnam declared last week that it is now too early to start relaxing the property cooling measures given the run-up in prices in the last four years, and that the government will continue to monitor the property market in the coming quarters and adjust the measures when necessary. Property developers and consultants had called for a rolling back of the seven rounds of property cooling since 2009, including the seller’s stamp duty (discouraging short-term trading in property), additional buyer’s stamp duty (targeting property investors and foreign buyers) and lower loan-to-value limits (for those taking their second or subsequent home mortgages).

(Source: Business Times)

Rivertrees draws strong buyer interest

The waterfront condominium project in Sengkang, Rivertrees Residence, received 585 cheques from interested buyers prior to its official launch on Feb 22. It attracted both owner-occupiers and investors across apartments of different sizes. The project is jointly developed by Frasers Centrepoint, Far East Orchard and Sekisui House. In the initial phase, 300 out of 495 units will be launched with the average pricing ranging from $950 to $1,150 psf – at a premium of $50-100 psf to its next-door competing project, Riverbank @ Fernvale by UOL Development.

(Source: Business Times)

Development in Moulmein up for collective sale

Despite expectations of a quiet en bloc market in 2014, residents of a freehold Moulmein Road development have put the site up for sale by public tender at more than $40 million, or $1,687 psf ppr for the 16,936 sq ft site with a plot ratio of 1.4. The 16-apartment development is located at 165-165Q Moulmein Road, and is marketed by CBRE.

(Source: Business Times)

Commercial

200 ha of golf course freed for other uses

The government announced that some 200 hectares of golf course land will be freed up for other uses after the land leases for Keppel Club, Marina Bay Golf Course and the Orchid Country Club expire in 2021, 2024 and 2021 respectively. The leases for both Keppel Club and Marina Bay will not be renewed, while the Orchid Country Club’s lease will be renewed for nine years until 2030 after which there will be no further extension. Parts of the fairways at Tanah Merah Country Club (TMCC) and National Service Resort and Country Club (NSRCC) will be acquired by end of 2014 for the expansion of Changi Airport. One of Singapore Island Country Club’s (SICC) golf courses will be made public, and SICC can decide which golf course to give up.

(Source: Business Times)

Singapore’s prime office rents up 19% in 2013

Singapore’s office rents in the central business district (CBD) were reported to increase 19 percent in 2013. However, office space in Singapore is still considered more affordable compared to other major financial centers. Singapore’s 803 Euros (S$1,389) psm per year was lower than London’s West End’s 2,122 Euros, Hong Kong’s Central district’s 1,432 Euros, Tokyo CBD’s 1,003 Euros, and New York Madison and 5th Avenue’s 993 Euros. Cushman & Wakefield said that rental growth in Singapore was demand-driven and led by the professional services and technology sectors. Its increases were also tempered by tenants’ aggressive focus on reduced budgets and operational expense discipline. Yet rents will remain competitive due to the Singapore government’s strong urban planning and a healthy supply pipeline.

(Source: Business Times)