Singapore Property News This Week #157

Residential

9,707 BTO flats to be released by HDB this year

A total of 9,707 Build-To-Order (BTO) flats will be released by the Housing Development Board (HDB) this year. Out of the 6,454 flats that are put on sale this month, 3,383 are balance flats that are offered under the Sale of Balance Flat exercise, while the remaining flats are offered under the BTO scheme. Subsequently, another 3,071 BTO flats will be released in non-mature estates such as Bukit Batok and Woodlands. According to Nicholas Mak from SLP International, two-room flats are most popular among singles at the last BTO launch. Flats in Woodlands are expected to a hot favourite among buyers as the Woodlands Regional Centre is slated to be constructed as part of the draft Master Plan 2013. Eugene Lim from ERA Realty predicts that HDB prices will smoothen as demand for resale flats stabilises.

(Source: Business Times)

Sale of Coco Palms driven by price cuts

Price cuts at the launch of Coco Palms helped to drive sales. According to the developer, 490 out of the 600 units available at its weekend launch have been sold for an average of $980 per square foot. This was marked down from its initial pricing of $1,100 to $1,200 per square foot. Located at Pasir Ris Grove neighbourhood, the joint venture between City Development and Hong Realty (Pte) Ltd consisted of a total of 944 units which are between 463 square feet for a one-bedroom unit to 3,111 square feet for a penthouse.

(Source: Business Times)

Hougang HUDC: 15th to be privatised

Joining 14 other Housing and Urban Development Co (HUDC) estates, 336 flats at Hougang Avenue 2 have been privatised after obtaining support from at least 75 per cent of the owners. The Aljunied- Hougang- Punggol East Town Council will cease managing the estate’s common properties as it will be converted into a strata-titled property. While the estate is the 15th estate to be privatised out of the 18 HUDC estates, Ong Kah Seng, R’ST Research Director, predicts that in the short run, developers may not be willing to offer a high price for the Hougang estate, due to the tight property market.

(Source: Business Times)

Buyer and investor interests in dual-key units remain undiluted

According to global consultancy Knight Frank, demand in dual-key units will persist as buyer and investor interests remain undiluted. Alice Tan, director and head of consultancy and research at Knight Frank claimed that dual-key units are popular among developers as they are easier to market as compared to similar sized non-dual key units. Introduced in 1986 to promote multi-generational living, the dual-key unit comprises of 2 sub units with two separate keys and entrances. In January and February this year, four projects were launched with dual-key units. This reflected developers’ continued interest in the dual-key model. Also, according to Ms Tan, dual-key units are popular among young families who want to stay near their parents. Nonetheless according to Ms Tan, demand for dual-key units has dipped from 100 per cent in 2011, to 84 per cent in 2012, and eventually to 58 per cent in 2013 following the implementation of the total debt servicing ratio framework.

(Source: Business Times)

Changes in ruling affected EC tender bids

New rules for executive condominium (EC) buyers have affected bidding for EC land. A pair of 99-year sites at Yishun Street 51 has been tendered to different developers—a first since the introduction of the system of simultaneous tender closings for adjacent residential sites in 2013. Parcel A at Yishun Street 51 has been sold to a City Developments Ltd-TID joint venture for $330.13 per square foot per plot ratio, while the neighbouring Parcel B is sold for $334.57 per square foot per plot ratio to JBE Holdings which is run by Patrick Lam from Hong Kong. Six bids were placed for Parcel A while Parcel B had two more bidders. According to Eugene Lim from ERA, Parcel B had more bidders as it was located nearer to Lower Seletar Reservoir.

(Source: Business Times)

Commercial

MTI: Rental hikes due to inflation

The Ministry of Trade and Industry (MTI) revealed in the latest Economic Survey of Singapore that the recent increase in rent prices observed is in line with inflation over retailers’ lease period. Not only so, for 25 per cent of retailers who renewed their leases last year, there was no increase in rents; in fact, some even renewed their leases at a lower rent. MTI refuted speculations that retail rents have been pushed up by real estate investment trusts. However, property market watchers and small and medium sized enterprises that The Business Times spoke to were unconvinced. The median cumulative increase in rental in 2013 was 5.5 per cent and 75 per cent of the leases were renewed at rental increases of 14 per cent or less. On average, rents doubled or more than doubled in one per cent of the 2,100 leases renewed each year, according to MTI.

(Source: Business Times)

Irving Industrial Building on sale for $220m

Irving Industrial Building, a 30-years-old, six-storey property near Tai Seng MRT is on sale for $220 million. Tender for the collective sale will close on July 15. The freehold building which comprises of 65,309 square foot, is selling for $1,164 per square foot of potential gross floor area (GFA) including an estimated $46 million development charge. It is expected to be redeveloped into 228,581 square feet maximum GFA, with a 3.5 maximum gross plot ratio that is zoned for Business 1- White use. Of this, 163,272 square feet GFA have been reserved for Business 1 use while the remaining 65,309 square feet is zoned for white uses. Christina Sim from Cushman & Wakefield claimed that the substantial white component of the project justifies the steep asking price.

(Source: Business Times)

Two new hotels to be run by Accor

Two hotels located along Stevens Road, which were developed by Oxley Holdings, will be run by Accor, thus bringing the hotel operator’s portfolio to nine hotels in Singapore. The hotels which are under the Novotel and Ibis brand names are expected to open by the end of 2016. The land which was acquired last March by Oxley is about 198,000 square feet and has a gross permissible floor area of about 318,000 square feet and a 103-year leasehold tenure. The new hotel, Novotel Singapore will have 254 rooms while the Ibis Singapore hotel will have 528 rooms.

(Source: Business Times)

Next generation industrial facility will be launched by JTC

JTC will be launching next generation industrial buildings that are designed to integrate land-based facilities with high-rise, multi-user factories at Tampines North. Such buildings, which are targeted to appeal to small and medium sized enterprises that are involved in heavier manufacturing, will feature higher ceilings and wide corridors. The JTC Space @ Tampines North will be a nine-storey complex that comprises of five land-based units between 1,200 and 1,900 square meter; and 105 high rise units from 160 to 260 square meter. The industrial space is expected to be completed by 2016 and will begin construction by the end of this year.

(Source: Business Times)