Singapore Property News This Week #188

Residential

More properties sold at auctions in Q4

According to JLL, properties at auctions sold at a faster rate in Q4 as compared to the previous quarters. JLL said that as buyers’ and sellers’ expectations converge, property sales at auctions have picked up in 2014. In its report, JLL said that to meet buyers’ expectations, sellers have been more willing to lower their prices. In Q4 this year, the proportion of properties sold during their first auction listing has increased to 90 percent from 80 percent in Q3. As such, $13.7 million worth of properties were sold at auctions in Q4 this year. However, this year, the total sales value of properties sold at auctions fell by 27 percent from that in 2013 to $72.5 million. Nonetheless, Mok Sze Sze from JLL is optimistic about property sales at auctions in the coming year. She believes that there will be a steady increase in mortgagee sales. Despite the weak leasing market, buyers’ investment sentiments have not been affected, added Mok.

(Source: Business Times)

Commercial

Centurion and LianBeng Group collaborates to build workers’ dorm

In collaboration with Centurion Corporation, LianBeng Group will build a 7,900-bed dormitory at JalanPapan. This dormitory will be catered to workers from the process industry, and it will include a 3,000 sq metre training centre for residents of the dormitory. The dormitory is expected to be about 1.5 ha and should be completed by 2016. It will be located near Jurong Island so that workers may commute to work easily. The tender for the dormitory was awarded by Association of Process Industry (Aspri), which aims to increase productivity of workers through skills upgrades and other training.

(Source: Business Times)

Two tenders awarded for industrial sites

An industrial site at Tuas South Street 9 and another at Tampines North Drive 1 has been awarded by JTC Corporation to Prospaq Group and Goldprime Land respectively. The former plot was awarded for $6.88 million while the latter plot of land was awarded for $64.4 million. The industrial site at Tuas is zoned for Business 2 use and has a gross plot ratio of 1.0. It is 8,369 sq metres large and has a 20-year-and-8-months tenure. On the other hand, the industrial site at Tampines is larger at 27,395.2 sq meters. It has a gross plot ratio of 2.5 and its tenure will last 30 years.

(Source: Business Times)

DTZ expects rental demand for small retail units to fall

According to DTZ, rental demand for smaller retail units may fall as competition from e-retailers heightens. Furthermore, DTZ predicts the low labour supply and tough operating environment will affect rental demands for such retail units. Nonetheless, capital values of strata retail space increased by 1.3 percent in 2014 from 2013 in Orchard/Scotts Road and other suburban areas, said the Business Times. This is despite the implementation of the total debt servicing ratio. However market experts caution that rentals for retail space may fall further in Q4 this year due to reduced shopper traffic particularly in the financial districts. According to DTZ, the gross fixed monthly rental value for Orchard/Scotts Road has fallen by 0.3 percent to $30.03 psf in Q4 this year from the previous quarter. Similarly, the rental value of units in the other city areas have also fallen by 0.7 percent quarter-on-quarter to $17.98 psf in Q4 from Q3 this year. Ong ChoonFah from DTZ said that the limited supply of new units in the Orchard/ Scotts Road area may have contributed to the relatively better retail rents compared to retail units in the other areas. Not only so, Orchard Road is a known tourist destination and as such is expected to command a higher rent compared to the suburban areas.

(Source: Business Times)

Gross floor area for medical clinics to be capped at 20%

Medical clinics that are located in commercial developments will not be allowed to expand beyond 3,000 sq meters or 20 percent of the total floor area that has been approved for commercial use, whichever is lower. This new guideline has since been effective according to a circular issued by the Urban Redevelopment Authority (URA) and the Ministry of Health (MOH). Nonetheless, existing medical clinics and formal planning applications that were submitted before Dec 23 this year will not be affected by the new guidelines. This new guideline aims to prevent commercial buildings from turning into de facto medical centres. According to the circular, medical centres need to be located at sites that are zoned for that specific use. Nicholas Mak from SLP International said that this new guideline will help to regulate the supply of medical centres in commercial buildings and will help to optimise the use of the space.

(Source: Business Times)

Bid for TanjongPenjuru site won by UBTS

A logistic and warehousing company, UBTS Pte Ltd won the highest bid for a site at TanjongPenjuru at $9.3 million. The 1.6 ha site has a 20-year tenure and is zoned for Business 2 use. It also has a plot ratio of 2.5. Nicholas Mak from SLP International believes that UBTS will be relocating its operations to the new site. Other tenders that have closed recently include a site at Tuas South Street 9 that was won by Asiaone Logistics and Warehousing Pte Ltd for $78.13 psfppr; and another site at Tampines North for $87.34 psfppr.

(Source: Business Times)