Hotel, luxury apartments at Capitol site

by May Wong
05:55 AM Feb 02, 2011

SINGAPORE - By the end of 2014, the landmark Capitol site will be transformed to boast developments including a new hotel and luxury residential apartments, each costing up to $4 million.

The Capitol site comprises the Capitol Theatre, Stamford House, Capitol Centre, and Capitol Building. Work on the 99-year lease, 1.43-hectare site, will begin in the third quarter of this year. The project's investment, including the land cost of $250 million, is estimated to hit $750 million.

The consortium - led by Mr Pua Seck Guan's Perennial Real Estate, together with Mdm Sukmawati Widjaja's Top Global and Mr Kwee Liong Seen's Chesham Properties - won the tender last October. It signed the building agreement with the Urban Redevelopment Authority (URA) yesterday.

The developers have set aside about $30 million to restore and conserve the Capitol Theatre. It will be the largest single- screen cinema-cum-performance theatre with about 800 seats. Built in 1929, the theatre screened its last movie in 1998.

The restored Capitol Theatre will see it hosting local theatre and dance groups for half the season. Cinema operator Golden Village will make use of the theatre for the remaining half to screen blockbuster movies.

Capitol Centre will be transformed into a new 15-storey building. It will house eateries, retail shops and up to 70 residential units. The two- to four-bedroom apartments will cost over $2,500 per sq ft and it could be launched as early as the third quarter of this year.

The apartments, industry watchers say, will have no shortage of buyers. Dr Chua Yang Liang, head of research, South-east Asia, Jones Lang LaSalle, said; "It's probably a good size in terms of market demand there. And being large units, again, they are pretty attractive."

Source: www.todayonline.com

Published January 29, 2011


8,430 new private homes set to be completed in 2011
URA data also shows nearly half of them will be in the core central region

By UMA SHANKARI

CLOSE to half of the estimated 8,430 new private homes that are slated to be completed in 2011 will be in the upmarket core central region, according to fresh data released by the Urban Redevelopment Authority (URA) yesterday.

The government agency has also bumped up its estimate for the projected supply of private homes due to be completed this year by 25 per cent from three months ago. In October 2010, URA estimated that 6,766 new private homes will be completed in 2011.

Sources told BT that URA has been surveying developers more closely over the last few months in a bid to compile more accurate pipeline supply figures. The agency computes the estimated supply of private housing units in the pipeline through a quarterly survey of developers.

In response to a query from BT, URA said it will continue to work closely with developers to ensure that they submit up-to-date estimations of the expected completion dates of their projects.

'URA's survey of the developers' completion (for 2011) is only starting to increase. The increase from Q3 2010's forecast for 2011 completions to Q4 2010's forecast is a significant 25 per cent. Over the next few quarters, we expect to see further upward revisions,' said Ku Swee Yong, chief executive of real estate firm International Property Advisor.

Looking at the latest completion estimates, analysts once again warned that home-buyers need to brace themselves for a very large supply of private residential units due to be completed each year from 2011 to 2015.

URA currently estimates that 8,116 units will be completed in 2012; 17,111 units in 2013; 17,421 units in 2014; and 13,453 units in 2015.

In fact, 2010's number of newly completed private homes, which stands at around 10,400 units, is already higher than the historical average annual increase in housing supply of around 6,400 private units over the last decade, Mr Ku pointed out. For 2011, a total of 3,874 homes will be added to the housing supply in the core central region, which includes the prime districts 9, 10 and 11, Marina Bay and Sentosa Cove. This will make up 46 per cent of the islandwide housing supply of 8,430 new private homes.

Another 2,265 private homes will be completed in the rest of central region, while in the outside central region, 2,291 units will be completed this year.

URA also said that as at the end of Q4 2010, there was a total supply of 65,699 uncompleted units of private housing from projects in the pipeline. Of these, 32,776 units were still unsold.


Source: www.businesstimes.com.sg

Published February 1, 2011


Ang Mo Kio industrial site up for tender
Price could exceed $130 psf ppr, say market watchers

By EMILYN YAP

THE Urban Redevelopment Authority yesterday launched a 60-year leasehold industrial site at Ang Mo Kio Street 62 for sale via public tender.

Market watchers expect to see keen interest in the plot, with its price possibly crossing $120 or $130 per square foot per plot ratio (psf ppr).

The 2.8 hectare site, with a maximum permissible gross plot ratio of 2.5, is on the confirmed list under the H1 2011 government industrial land sales programme.

The land parcel is near Yio Chu Kang MRT station and is zoned for Business 1 development, which makes it suitable for various uses such as light industry, clean industry or telecommunications.

Savills Singapore industrial director Dominic Peters believes that the site could be sold for at least $120 psf ppr, and five or more developers could be interested.

This is the first industrial site to be made available in Ang Mo Kio in a long time, he said. Also, with the government introducing more tightening measures to the residential property sector, 'industrial (properties) would be a target for investors'.

Capital values of industrial property rose last year, driven by strong end-user and investor interest. Developers also bid actively for state industrial sites. In August last year for instance, Oxley Rising paid $158.1 million or $169 psf ppr for a 60-year leasehold plot at Ubi Road 1.

Knight Frank director of business space (industrial) Lim Kien Kim expects the Ang Mo Kio site to fetch at least $130 psf ppr.

He said that the plot has a good location, though its large size might make it more attractive to developers with 'deep pockets'.

Also, cooling measures for the residential sector could have tamed bullish sentiment across the entire property market, he said. While some investors have switched their focus to the commercial sector, the government would also be wary about commercial prices rising too quickly as that would affect Singapore's competitiveness, he pointed out.


Source: www.businesstimes.com.sg

THE Urban Redevelopment Authority (URA) yesterday launched a commercial land parcel in Paya Lebar Central for sale by public tender - the first site offered for sale in that area.

The 99-year leasehold site, which is at the junction of Paya Lebar Road and Eunos Road 8, has a site area of 159,870 square feet and a maximum gross floor area (GFA) of 671,450 sq ft.

In line with the plan for Paya Lebar Central to be a major commercial centre, the upcoming development on the site will have to set aside at least 80 per cent of the total GFA for office use. The remaining GFA can be allocated for additional office use or other uses permitted under the commercial zoning.

'The site is envisaged to be developed into a good-quality office development that would appeal to businesses that do not need to be located within the city centre, as it is a mere 10-minute drive from the central business district,' said URA.

The government's vision is for Paya Lebar Central to become a bustling commercial centre, with a mix of office, retail, hotel and public spaces. The precinct has about 12 hectares of land available for development and a potential commercial floor space of more than five million sq ft in total.

Analysts expect a top bid in the range of $500-600 per square foot per plot ratio (psf ppr) for the plot. The site is expected to draw good interest from developers as it offers a choice alternative for tenants who do not need to be in the central business district but find Tampines and the business park in Changi to be too far.

'This site is anticipated to receive warm interest from developers due to its strategic location and the promising outlook for the office property market, which is poised for an overall sustained gradual rental recovery supported by broad-based incremental business expansion plans,' said Ong Kah Seng, Cushman & Wakefield senior manager for Asia-Pacific research.

Observed DTZ South-east Asia research head Chua Chor Hoon: 'With the office market on the rise, the successful tenderer stands to benefit from higher rents when the development is completed in a few years' time.'

This land parcel is next to Paya Lebar MRT station, which serves the Circle and East-West MRT lines. The tender for the site closes at noon on April 21, 2011.

Published January 28, 2011
By UMA SHANKARI

Source: www.businesstimes.com.sg

Some wonder if they should wait and see if the recent cooling measures push down prices significantly

by Ong Teck Hui

05:55 AM Jan 28, 2011

The Government's latest round of measures to cool the residential property market was clearly targeted at short-term investors and speculators.

Effective since Jan 14, they include the highly punitive stamp duties which apply to the resale of residential properties within four years of purchase, the reduced loan limit of 60 per cent for buyers with one or more outstanding mortgages, as well as the 50-per-cent loan limit for buyers who are non-individuals, for example companies and trusts.

It would appear that the measures have been applied to slow down the market to avoid the growth of a property bubble, as well as to allow genuine buyers the opportunity to purchase their dream homes without runaway prices.

Genuine home buyers do form a significant demand pool, and many have planned to make their purchases in the near term. The introduction of the fresh measures has led them to wonder whether prices would soften and whether it might be worth their while to wait. Some are hoping for a substantial price correction, "maybe 20 per cent or more", before deciding to buy.



SEEING PRICE DECLINES IN PERSPECTIVE

But would the residential property market correct by that magnitude - 20 per cent or more - due to the measures alone? It would be useful for us to analyse past declines in prices to arrive at an informed conclusion on the price outlook.

The most recent price correction in the residential property market was due to the economic recession arising from the global financial crisis. From the peak in mid-2008 to trough in mid-2009, prices softened by 25 per cent, according to the Urban Redevelopment Authority's residential property price index. The impact of the new measures will certainly be nowhere as catastrophic as that of the global financial crisis.

Another benchmark is the decline in prices following the announcement of the anti-speculation measures in May 1996. The very harsh measures, which included a 20-per-cent upfront downpayment in cash for all property purchases and taxes on gains from properties sold within three years of purchase, affected the entire residential market, bringing transaction volumes down by 75 per cent. Prices eased by 8.9 per cent over a one-year period before being dragged down by a further 40 per cent by the Asian financial crisis.

In contrast, the current measures have been calibrated to discourage shorter-term investors and speculators, leaving genuine home buyers relatively unaffected.

Barring external shocks or economic downturns, the measures by themselves are unlikely to drag prices down significantly, if at all. Under the present positive market conditions, sellers are on a stable footing and under no pressure to slash prices.



BUYERS' IMPATIENCE

After the set of measures announced on Aug 30 last year, potential buyers retreated to the sidelines to watch how the residential market would pan out.

Last August, developers launched 1,165 units and sold 1,259. What potential buyers saw was a slightly slower market in September, with 1,058 units launched and 911 sold. Activity in October picked up, with 1,070 units launched and 1,066 sold, but that was the month when two new executive condominiums (ECs) were launched, generating much hype and interest. Including ECs, 2,049 units were launched in October and 1,596 sold.

The market also watched developers' response to the sale of residential sites. Tenders for mediocre residential and EC sites were met with fair response and cautious bids, while the more attractive sites saw strong competitive bidding.

The URA's property price index for 3Q2010 showed that residential property prices rose 2.9 per cent, although it would have captured primarily pre-measures pricing. Market behaviour and evidence would have led most potential buyers to conclude that the residential market was holding up well against the measures, transactional activity was resuming and prices were unlikely to soften.

By November, the residential property market picked up with a vengeance with several major launches and good take-up. Including ECs, 2,331 units were launched and 2,092 sold, making November almost the busiest month last year. The December figures for homes launched and sold (including ECs) were lower at 1,859 and 1,699, respectively, but this was expected as it was the typical year-end holiday period.

When the 4Q2010 price index was released, it showed residential property prices continuing to climb by 2.7 per cent, notwithstanding the effect of the measures. It only served to confirm potential buyers' fear that prices would continue to rise.




TO WAIT OR NOT TO WAIT?

Potential buyers' behaviour over the next few months would determine the direction of the residential property market for the rest of this year. If buying sentiment recovers in the short term, transactional activity would pick up, leading to firm prices with, perhaps, some upside. However, if the market slows without an improvement in sentiment, prices could eventually soften.

The dilemma that many genuine home buyers face is whether to continue with their intended purchases or to hold off in the hope that prices will correct significantly.

It would be worthwhile waiting if prices do eventually decline substantially, but delaying also runs two main risks: Higher interest rates and stronger measures imposed by the Government that may affect even genuine home buyers. On the other hand, higher interest rates and stronger Government measures could result in price softening, but that would mean postponing one's purchase even longer.

Historical experience may show that prices are unlikely to correct significantly due to measures such as those recently introduced. But it is what potential home buyers believe or perceive that will drive their behaviour, which will, in turn, influence the market.

The residential property market may have been jolted by the Jan 14 measures, but market fundamentals remain favourable. Together with inflation concerns, the current low interest rates and expectations of long-term capital appreciation, it appears that buyers would likely be drawn back to the residential property market after an expected period of hesitation.



Ong Teck Hui is executive director of research and consultancy at Credo Real Estate.


Source: www.todayonline.com

SINGAPORE - Once living in the shadow of their inner-city and city fringe cousins, suburban residential properties are now stepping out on their own - with some of these properties located in more remote areas only accessible by feeder buses and light rail transit (LRT).

And property experts say such mass market homes remain in high demand from owner-occupiers, who are unscathed by the new round of cooling measures that target mainly speculators.

The Tennery, one of Far East Organization's newest properties, is a prime example of an outlying property hot in demand. According to Far East Organization, more than 90 per cent of the 338 units - 620 sq ft to 950 sq ft for one- and two bedroom units - have been sold.

Located at the crossroads of Woodlands Road and Bukit Panjang, The Tennery units sold at prices ranging from $1,118 to $1,317 per square foot (psf), according to December sales figures from the Urban Redevelopment Authority. The 16-storey property will be built above the Ten Mile Junction LRT station and the upcoming Junction 10 shopping mall.

A little over a year ago, a unit at another Far East Organization's property, Mi Casa in the Choa Chu Kang/Bukit Panjang area, transacted at a price of $692 psf in November 2009. Mi Casa's homes cater to families, with two- to four- bedroom units ranging from 990 sq ft to over 2,000 sq ft for the largest units.

Analysts say more home buyers and investors are looking at suburban properties, now that plans to revamp regional centres have been announced by both developers and the Government.

"Home buyers who are buying properties, especially those that are away from the city centre, are predominantly Singaporeans. Almost eight out of 10 of them will be Singaporeans. But we are also seeing an increasing number of foreigners - predominantly permanent residents - who are considering buying such properties, especially as Singapore increases its intake of immigrants," said Mr Nicholas Mak, research head at real estate consultancy SLP International.

And despite the new cooling measures, property developers are capitalising on the trend. For instance, CapitaLand is building a 24,902-sq-m mixed retail and residential property at Bedok Town Centre. The developer is also going ahead with plans to release the project's 500 units for sale this year, regardless of the new measures.

The property is located within a shopping catchment of 300,000 residents in the Bedok area, atop a new integrated bus and MRT interchange, and is a short walk from new and revamped family-friendly amenities.

Other suburban locations that may present property development opportunities is the Jurong Lake District - home to Jurong Gateway, Cleantech Park and a number of business and leisure destinations - as well as Seletar Hills, where The Greenwich retail and residential development was recently launched.

"Far-flung suburban properties tend to be more for owner occupation. If they are not very accessible to local transport, they tend to be less attractive to tenants. Therefore, investors would buy it only if they think there is good capital appreciation of some of these properties," said Mr Mak.

"Once the authorities have announced plans for a new MRT track or stations around the area, the owners of some of these properties would immediately increase their asking price," he added.

With the Government Land Sales programme set to release 10 sites on the confirmed list located near MRT stations this year, analysts expect new developments to break into these areas.

"Singapore has come a long way. In the past, if you had properties in places like Changi, it could take a long journey time of at least two hours to get to the city. But now, we have a good network of MRT and expressways in Singapore. And in that sense, some Singaporeans are looking at these properties in a better light," said Mr Colin Tan, head of research and consultancy at Chesterton Suntec International.

Investors who intend to ride on growing rentals can now look to suburban properties. As Singapore's population and economy grows, demand for rental properties in suburban areas will also be on the rise. Rentals grew by 27.5 per cent from November 2009 to November 2010.

Even buyers with deeper pockets are seeking out homes in suburban areas. Mid-tier developments such as Suites @ Eunos were sold at a median launch price of $1,339 psf, while The Lanai was sold at the latest price of $1,450 psf. Both properties are in the Outside Central Region, with Suites @ Eunos located at Jalan Yasin and The Lanai located near Hillview Avenue.

The sentiment for such homes will be affected by the new cooling measures but the effect will be short-lived, Mr Tan said.

"The market is just reeling from shock, but normal service will resume in a couple of weeks," he said.

by Jo-Ann Huang Limin
05:55 AM Jan 21, 2011

Source: www.todayonline.com

by Jonathan Peeris
05:55 AM Jan 19, 2011

SINGAPORE - Two more residential sites are now available, potentially yielding about 1,260 units that will offer homebuyers with more housing choices.

The Urban Redevelopment Authority (URA) yesterday put up for tender a land parcel at Bedok Reservoir Road, the first residential site to be sold through the Confirmed List under the Government Land Sales Programme for the first half of this year.

At about 4.6 hectares, the site will have a maximum permissible gross floor area of over 63,000 sq m and can yield about 640 housing units.

The site is well connected to major expressways and is close to the future Bedok Town Park MRT Station on the Downtown Line. The tender will close on March 3.

The URA will also make available a residential site at Bartley Road and Lorong How Sun. The tender was triggered after the URA received an application from a developer who committed to bid not less than $191.7 million. This land parcel has been on the Reserve List system since November 2009.

The site has an area of about 2.21 hectares and a maximum permissible gross floor area of over 61,000 sq m. It can potentially yield about 620 housing units.

The URA will launch the public tender for the site in about three weeks.

Source: www.todayonline.com

by Jo-Ann Huang Limin

05:55 AM Jan 18, 2011

SINGAPORE - Sales of new private homes totalled 1,332 units last month, down 583 units from November, the Urban Redevelopment Authority (URA) said yesterday.

Inclusive of executive condominiums, or ECs, the total number of units sold amounted to 1,699 units. This is a sharp fall compared to November, when new private home sales including ECs numbered 2,092 units. But experts said the fall was seasonal in nature, given that the year-end is usually a lull period for the property market.

"December is a month where you got parents rushing around for their PSLE results and you've got people going off on their holidays. Developers at the same time also launch fewer units and will have advertised less in the month of December," said Mr Ku Swee Yong, chief executive officer of International Property Advisor.

Together with units sold in November and October, a total of 4,313 new homes were sold in the fourth quarter of 2010. Assuming none of the units sold at the end of last monthwere returned to developers following the fourth round of property cooling measures effective from Jan 14, it will bring sales volume for the whole of 2010 to a record of 16,364 units, said Mr Li Hiaw Ho, executive director at property consultant CBRE. This would be 11.4-per-cent higher than the 14,688 new homes sold in 2009 and higher than the 14,811 new homes sold during the market peak of 2007, he noted.

The priciest unit sold last month was at the Ritz Carlton Residences in Cairnhill at $4,307 per sq ft, while Punggol EC Prive sold the most number of units at 326.

Analysts said the latest round of cooling measures should stamp out speculation, especially in the mass market segment. The measures included seller stamp duties imposed at 16, 12, 8 and 4 per cent, respectively, for homes sold in the first, second, third and fourth year from purchase, as well as the lowering of the loan-to-value ratio to 60 per cent for individuals with outstanding mortgages.

Experts projected that new home sales volume for this month should fall by about 10 per cent as a result.

"We will probably see a knee jerk reaction so I expect that January numbers and probably February numbers to be nowhere as strong as what we have seen for December," said Mr Ku.

Source; www.todayonline.com

Published January 18, 2011

After red-hot December, property braces for chill
Private home sales sizzled before cooling measures; 2011 expected to be a more sobering story

By KALPANA RASHIWALA

(SINGAPORE) December may have been chilly in the rest of the world, but for Singapore's property market, it was simply sizzling. The latest numbers underscore the backdrop against which authorities introduced last week's cooling measures.




Developers sold 1,332 private homes (excluding executive condos) in the traditionally slow month, exceeding the combined figure for the three preceding Decembers. This took the total for 2010 to a fresh high.

But property consultants expect the numbers to drop dramatically this year from the 16,364 private homes that developers sold in 2010 - in the face of the latest cooling measures.

Forecasts for developers' private home sales this year range from 8,000 to 12,000 units. Prices too are expected to drop with one consultant pegging the dip at 5 per cent for the mass market in the first quarter.

Speculators may now turn their attention to shoebox industrial units and strata offices and shops as non-residential property has been spared under the latest cooling package, observers say.

The 2010 sales number was 11.4 per cent above 2009's 14,688 units and surpassed the previous high of 14,811 units set in 2007, according to figures released yesterday by the Urban Redevelopment Authority.

The secondary market has also been buoyant.

Knight Frank's analysis of URA Realis caveats data shows a 23 per cent increase in the number of private homes (excluding ECs and en bloc sale units) sold in the resale market last year to 18,468 units. In addition, 3,264 caveats were lodged for private homes traded in the subsale market in 2010, close to the 3,838 units in 2009.

The 2010 resale and subsale figures are expected to increase as more caveats are lodged in the coming weeks. Resales refer to secondary market deals in projects which have received Certificate of Statutory Completion while subsales involve secondary market transactions in projects that have yet to receive CSC.

DTZ's South-east Asia research head, Chua Chor Hoon, forecasts that this year, developers may sell about 8,000-10,000 private homes. Knight Frank's number is 10,000-12,000 units.

Ms Chua reckons that prices would decline this year but not in the first quarter, when transactions are likely to thin amid a standoff between buyers and sellers. 'When sellers see demand is not coming back, those who need to sell will have to be more open to negotiation. I think prices in the mass and mid-market segments are likely to fall more as the lower loan-to-value (LTV) limits will hit those on a tighter budget.'

Knight Frank consultancy and research head Png Poh Soon foresees an up to 5 per cent price decline in Q1 for the mass-market segment while prices remain flat in the mid and luxury markets. 'Developers of mass-market projects, which are typically bigger, may be more inclined to price their projects attractively to draw buyers.'

Mr Png also reckons that sales of shoebox apartments would plunge as these have drawn many speculators, who are expected to be affected by the stiffer penalties for short-term trading now.

The government last week hiked the seller's stamp duty rate to as high as 16 per cent for private homes sold within the first year. The LTV limit for new home purchases by individuals servicing one or more existing housing loans has been lowered from 70 per cent to 60 per cent.

Ms Chua said that strong primary market sales for two consecutive years reflect 'a lot of speculative and investment demand'. 'Now, with the clampdown on the residential sector, a lot of investors will look at other property sectors as well as overseas properties.'

Savills Singapore senior manager Christine Sun said: 'Small investors may switch from buying 'mickey mouse' apartments to small strata industrial and office units, or HDB shophouses which still command attractive yields without bearing the brunt of the property measures.'

URA's figure of 1,332 private homes sold by developers in December was 30.4 per cent lower than November's 1,915 units but significantly above sales of 481 units in December 2009, 131 units in December 2008 and 305 units in December 2007.

Including ECs, the trend was similar, with the sales tally at 1,699 units for December 2010, more than the 940-unit total for the preceding three Decembers.

Including ECs, developers sold 17,438 private homes last year, up from 14,688 units in 2009 and also surpassing the 2007 figure of 14,967 units.

The Outside Central Region (OCR), where mass-market projects are located, made up 45 per cent of private homes (excluding ECs) sold by developers in December. The number of units they sold in Core Central Region (CCR), which includes the prime districts, CBD and Sentosa Cove, doubled from 218 in November to 449 in December.

'Reflecting the pick-up in investor confidence in CCR, where the price rise has lagged, 75 non-landed homes were transacted at above $3,000 psf in December, up significantly from 11 units in November and the most deals in this price-band since the 103 units sold in December 2007,' said Colliers director Tay Huey Ying

December's priciest deal was $4,307 per square foot, for a unit at The Ritz-Carlton Residences Singapore Cairnhill, followed by Nassim Park Residences ($3,833 psf) and Tomlinson Heights ($3,643 psf). Last month's best selling project was Prive, an EC in Punggol (326 units), followed by The Tennery in Choa Chu Kang (220 units), D'Leedon at Farrer Road (180 units) and Robinson Suites (157 units

Source: www.businesstimes.com.sg

SINGAPORE: Sales of private home properties moderated in December, but still came in above the 1,000 units level. Data released on Monday by the Urban Redevelopment Authority (URA) shows that 1,332 private homes were sold last month.

That is a 30 per cent on-month drop from the 1,915 units sold in the previous month.

Including Executive Condominiums, the total sales would have reached an even higher figure of 1,699.

Chalking up the best sales was Prive at Punggol Road, which sold 326 units for a median price of S$704 per square foot.

Meanwhile, the most expensive property sold in December was at The Ritz Carlton Residences at Cairnhill Road, where a unit was sold at a median price of S$4,307 per square foot.

-CNA/ac

Source: www.channelnewsasia.com

05:55 AM Jan 07, 2011

SINGAPORE - The Urban Redevelopment Authority (URA) yesterday launched the tender for a 99-year leasehold hotel site at Robertson Quay.

The land parcel has been available for sale through the Reserve List system since last April. The tender was triggered after a developer committed to a bid of not less than $51.5 million. The 0.45-hectare site can generate a maximum permissible gross floor area of over 12,000 sq m (129,167 sq ft).

It is located within Robertson Quay, along the historic Singapore River, amid a well-established hotel cluster comprising developments such as Studio M Hotel, Park Hotel Clarke Quay and The Gallery Hotel. It enjoys direct access to the Singapore River promenade, with many popular entertainment, food and beverage and lifestyle outlets along Robertson Quay, Clarke Quay, Boat Quay and Mohamed Sultan Road.

The tender for the site will close at noon on March 8.

On Wednesday, the URA announced that Royal Group Holdings had submitted the highest bid of $86 million for a hotel site at Robinson Road and Boon Tat Street. The URA had closed the tender after receiving eight bids.

Royal Group's bid translates to about $11,543 per sq m. The next highest bid of $72 million came from developer Oxley Vibes. The 1,800-sq-m site is being offered for sale on either a 30-year or 60-year lease.

The URA said it would decide on the winning bid at a later date.

Source: www.todayonline.com

SINGAPORE - Prices of private residential properties hit new highs in the fourth quarter of last year, capping a year of spectacular surge in private home prices.

According to flash estimates from the Urban Redevelopment Authority (URA) yesterday, the price index for private residential property jumped 17.6 per cent last year - a 10-fold spike in the rate of increase compared to the recession-hit 2009, when overall prices of private properties rose by 1.7 per cent.

The spot of good news for private home hunters is that the increase in prices appears to be moderating: Prices rose 2.7 per cent between October and December, compared to a 2.9 per cent increase in the third quarter.

With private home prices already surging past their 1996 peaks, property analysts believe there is little room for further increase; and as prices stabilise, they noted that the Government may not need to introduce new measures to curb overheating any time soon.

Cushman & Wakefield vice- chairman of property brokerage Donald Han said: "If you look into the price increases we saw both for HDB and private property, the price increases were in the comfortable range, between 2 per cent and 3 per cent quarterly ... Alarm bells will ring if you see a quarter-to-quarter increase of between 5 and 6 per cent, or even in excess of that."

For the whole of 2010, private home prices surged 14.3 per cent, 17.5 per cent and 14.5 per cent in the central, city-fringe and suburban regions, respectively.

Property analysts said increases of similar magnitude are unlikely to be seen this year as economic growth moderates.

Singapore's economy is expected to expand between 4 and 6 per cent this year, compared to an estimated 14.7 per cent growth last year.

Prices of non-landed residential properties in the core-central region increased 2.3 per cent in the fourth quarter, more than any other region. The city-fringe area recorded a 1.7-per-cent rise, while the suburban areas witnessed a price increase of 1.6 per cent in the same period.

Analysts expect private home prices to rise between 8 and 12 per cent this year, with high-end homes - which are yet to reach their 2008 peak - leading the price increases. They noted that foreigners will continue to favour mid-tier housing.

Said Ms Tay Huey Ying, director of research and consultancy at Colliers International: "In view of uncertainties still lurking in the larger global economies, by and large, foreign demand would continue to look to contain their risk exposure in the property sector by focusing their purchases in the more affordable range in the mass market and the mid-tier."

She added: "When these homes are eventually completed and there is a lack of rental demand, this may not bode well for the market."

Ms Tay said that developers may be keeping "aggressive pricing strategies at bay", following the Government's cooling measures in August and its ramping up of land supply.

But Mr Han, for one, was not ruling out further Government intervention should prices increase "beyond economic fundamentals". Mr Han added that should the Government be forced to act, it could tweak the loan-to-value ratio for homeowners' second and subsequent properties which stands at 70 per cent currently.

by Jo-Ann Huang Limin
05:55 AM Jan 04, 2011

Source: www.todayonline.com

Published December 24, 2010


Robertson Quay hotel site up for tender
Industry watchers expect to see keen demand for the land parcel

By EMILYN YAP

THE Urban Redevelopment Authority (URA) will be putting a hotel site at Robertson Quay up for tender, after a developer committed to pay at least $51.5 million or $378 per square foot per plot ratio (psf ppr) for it.

Industry watchers expect to see keen demand for the site, even as several other hotel plots enter the market.

Interest in hotel development has grown this year along with swelling tourism numbers and a smooth economic recovery.

The 99-year leasehold land parcel at Robertson Quay is 0.45 hectare big and has a maximum gross floor area of 136,174 sq ft. URA estimates that it can yield 350 hotel rooms.

The site is near the Singapore River and is located within a hotel cluster which includes developments such as Gallery Hotel and Studio M Hotel. It is also next to residential projects such as Rivergate and Robertson 100.

In addition, food and beverage and entertainment outlets at Robertson Quay and Clarke Quay are within walking distance.

URA will launch the tender for the hotel plot in two weeks' time. Cushman & Wakefield Singapore vice- chairman Donald Han believes there will be a 'healthy dose of demand' for the site, with bids going up to $750-$800 psf ppr.

That estimate comes close to the price fetched by a hotel site nearby at the junction of Clemenceau Avenue and Havelock Road in August. The top bidder had paid $101.1 million or $813 psf ppr.

The Robertson Quay plot does not enjoy the same road frontage as the one at Clemenceau Avenue/ Havelock Road, but that may make the former suitable for building some residential units, and the residential play could enhance the value of the site, Mr Han said.

Under zoning guidelines, developers can use up to 40 per cent of a hotel site's total floor area for commercial or residential use, subject to official consideration.

Although developers have triggered the sale of a number of hotel sites this year, demand should stay strong if the economy does well and visitors keep coming, Mr Han said. He added that several hotel operators are still trying to gain a foothold in Singapore.

CBRE Hotels Asia-Pacific executive director Robert McIntosh believes that the site will fetch a 'good price' and attract some five to 10 bidders.

Hotel room rates and occupancies in Singapore have been rising this year and the outlook remains 'pretty positive' even with more supply coming on stream, he said.

According to a CBRE Hotels report, revenue per available room gained 24 per cent to about $181 in the first nine months of this year, and room rates rose 11 per cent to around $211.

With sentiments improving, developers have gotten hungrier for hotel sites this year. Two other hotel sites are still up for tender - one at Gopeng Street/Peck Seah Street and another at Ogilvy Centre.

Sites with a mandatory hotel component have also been sold this year, such as that at Peck Seah Street/ Choon Guan Street and another at Stamford Road/ North Bridge Road.


Source; www.businesstimes.com.sg

Published December 16, 2010

11,849 homes left unsold in launched private projects
Twenty eight projects have more than 100 unsold units each

By UMA SHANKARI

DEVELOPERS are sitting on close to 12,000 unsold units in private residential projects that have already been launched.

Data compiled by The Business Times using information from the Urban Redevelopment Authority (URA) shows that as at end-November this year, developers had a stockpile of 11,849 units in projects that they have already started marketing - that is, projects in which at least one unit has been sold.

While some developments have just a handful of units left unsold, a total of 138 launched projects scattered across the island have 10 or more unsold units left. And of these, 28 projects have more than 100 unsold units each.

The more recently-launched projects include Kheng Leong's The Minton; Frasers Centrepoint's Flamingo Valley; and City Developments' Residences At W Singapore Sentosa Cove - all of which were put on the market in the first half of this year when sentiment was buoyant.

But six projects with more than 100 unsold units each have been on the market for at least three years. These include prime developments such as Keppel Land's Reflections at Keppel Bay; SC Global Developments' Hilltops; Allgreen Properties' The Cascadia; and Wheelock Properties' Scotts Square.

The 11,849 units are held by the entire range of both big and small developers and include landed projects, though the majority are condominium developments.

Market observers say the stockpile could have been accumulated as developers typically roll out units in large developments in phases.

Those with strong holding power may also hold back some units in their projects as part of a larger marketing strategy. Keppel Land, for instance, did this with its Caribbean At Keppel Bay condominium.

But the ample supply of ready-to-buy homes should show prospective homebuyers that there is no need to rush to pick up units in new launches, said another industry veteran.

Homebuyers snapped up 1,909 new private homes in November even as developers launched a strong supply of 2,329 new homes for sale. The strong demand from buyers took the total sales volume for 2010 to a record 15,025 units - even higher than the then-record 14,811 homes sold in 2007 during the last property boom.

'The fact that we have recovered so quickly from the financial crisis has given a lot of false confidence to many people with money,' the industry veteran said. 'They think that it is the right time to jump into property.'

In October, URA said that at the end of Q3 2010, there was a total supply of 64,358 uncompleted units of private housing from projects in the pipeline. Of these, 33,771 units were still unsold. The numbers include both launched and unlaunched projects.

But data compiled using URA's monthly update on the number of units launched, sold and unsold in residential projects in Singapore, released yesterday, showed that as at end-November, there were 11,849 units left unsold in launched projects

Source; www.businesstimes.com.sg

Tuan Sing unit top bidder in strongest tender response in six months

by Jo-Ann Huang Limin 05:55 AM Dec 15, 2010SINGAPORE - A residential land parcel at Seletar Road attracted a whopping 11 bids at the close of the Urban Redevelopment Authority's (URA) public tender yesterday.

This is the highest number of bids for a Government Land Sales site since the 15 bids for the Upper Serangoon Road/Pheng Geck Avenue tender that closed more than six months ago.

The top bid for the Seletar Road site of $123 million came from Asplenium Land, a wholly-owned subsidiary of Singapore-listed property developer Tuan Sing Holdings. This works out to $468 per square foot per plot ratio for the 99-year leasehold site.

The second highest bid of $122.1 million, just 0.7-per-cent below the top bid, was from Fragrance Global.

The remaining bids ranged from $88 million to $115.8 million.

Located beside Seletar Hills, a private residential enclave, the site has an area of 17,455 square metres and a maximum allowable gross floor area of 24,439 sq m. Ideal for a low-rise housing development, the site is within 10 minutes drive of Yio Chu Kang and Sengkang MRT stations and close to Seletar Reservoir, Yio Chu Kang Sports Stadium as well as a number of country clubs.

Mr Nicholas Mak, executive director of research at SLP International, said the site could potentially be developed into landed housing.

"The strong demand for landed housing, which is expected to continue next year, probably attracted developers to this tender," he said.

To maximise on the allowable gross floor area, the developer may choose to build a low-rise apartment complex.

"The top-bidder may develop this site into an apartment project with about 270 units," said Mr Mak.

He added: "With a land price of $468 psf ppr and assuming the developer will build a five-storey apartment project, the breakeven price is estimated to be between $800 and $830 psf. The new condominium on this site can potentially be sold between $850 and $900 psf."

CBRE Research executive director Li Hiaw Ho said the future development would likely attract middle-income households and investors targeting those who work at Seletar Aerospace, an aerospace industrial park due for completion in 2018.

Source: www.todayonline.com

Published December 7, 2010

URA explains why DPS is still available for exec condos

By EMILYN YAP

PROPERTY developers can continue to offer the deferred payment scheme (DPS) for executive condominiums (ECs) because eligibility and ownership rules keep speculation in such projects at bay.



But homebuyers hoping that the interest absorption scheme (IAS) and interest- only housing loans (IOL) will also be available for ECs are in for a disappointment. The withdrawal of these two schemes in September last year applies to all types of private residential projects.

The Urban Redevelopment Authority (URA) issued clarifications on the various payment schemes in response to queries from BT.

Many in the property industry thought the government had scrapped the DPS for all types of uncompleted private homes in 2007 to curb speculation. It was not until last week that they realised DPS would still be available for ECs.

The news spread when developers of Prive - an EC in Punggol - said they would offer the scheme.

As at 5pm yesterday, 823 applications had poured in for the 680 apartments available in Prive.

Asked why developers can still offer the DPS for executive condominiums, URA said that ECs 'are different from other private residential developments' as they are meant for owners to live in and are subject to eligibility criteria and ownership conditions. For instance, EC buyers must form a family unit and they have to occupy their units for five years before selling them in the open market.

In addition, the subsale of booked ECs is not allowed.

'With these conditions, there is no need to remove DPS for ECs,' URA said. The 2007 move was meant to 'discourage excessive property investments in a buoyant market'.

According to URA, when the DPS was cancelled in October 2007, it had informed the Real Estate Developers' Association of Singapore, the Law Society of Singapore and all licensed developers in writing that the withdrawal would not apply to ECs and flats under the design, build and sell scheme.

Developers which intend to offer DPS for ECs have to seek the Housing and Development Board's approval to vary the terms in the standard sales and purchase agreement.

Then what about the IAS and IOL, which the government disallowed last year for all private residential projects to also discourage speculation? The news release made no mention of ECs then.

URA said that the ban on IAS and IOL 'is effected via the Monetary Authority of Singapore's housing loan rules for financial institutions', which apply to all residential properties, including ECs

Source: www.businesstimes.com.sg

Published November 16, 2010


Primary market shrugs off impact of cooling measures as Oct sales rise; industry watchers wonder if this will prompt new steps from govt

By KALPANA RASHIWALA

(SINGAPORE) After September's slump came October's rebound. This turnaround, reflected in the latest developer sales figures revealed yesterday, has prompted some industry observers to say that another round of demand-cooling measures may follow, as those announced on Aug 30 do not seem to have had a strong or lasting impact.

Developers sold 1,058 private homes excluding executive condominium (EC) units in October, up 16.1 per cent from September's sales volume of 911 units, according to primary-market sales data released by the Urban Redevelopment Authority yesterday. In addition, developers sold 529 ECs in October (no ECs were sold in September), taking total developer sales (including ECs) for October to 1,587 units.

The number of private homes sold in the $2,000 to $2,500 per square foot price band in October was 207 units, or about eight times the 26 units developers sold in September. The increase was partly due to the release of The Glyndebourne (along Dunearn Road) and Suites at Orchard (at Handy Road).

Excluding ECs (which are a hybrid of public and private housing), developers had sold 1,259 units in August before the cooling measures pushed this number down to 911 in September. It climbed back to 1,058 in October.

Said Knight Frank chairman Tan Tiong Cheng: 'Gauging by new sales, I suppose what government is trying to do doesn't seem to have had a severe impact on the market.

'The market is still buoyant; it's hard to say it's not. It would seem to me that if the government feels that current price levels are still high, we can expect more measures to cool the market.'

In the first 10 months of this year, developers sold 13,109 private homes excluding ECs - against 14,688 units for the whole of last year. Property consultants reckon the full-year tally may reach 14,700-15,000 and could surpass the record 14,811 units sold in 2007.

DTZ executive director (consulting) Ong Choon Fah said: 'Demand is still liquidity driven; it goes beyond the property market. It's an overall market phenomenon.'

She also pointed to the emergence of a two-tier market, with new projects launched by developers commanding a price premium of 20 per cent or more to earlier developments in the area.

The number of private homes (excluding ECs) sold by developers in the Core Central Region and Rest of Central Region rose, but sales in Outside Central Region (where mass-market homes are found) fell about 25 per cent.

In tandem with this trend, Colliers International's analysis shows that the number of private homes (excluding ECs) costing up to $1,000 psf sold by developers declined from 427 units in September to 183 last month.

Some of the demand in the low-price band was probably siphoned off to the two new EC projects released last month - Esparina Residences in Buangkok and The Canopy in Yishun - the first EC launches in five years, with sales of 425 units (at $761 psf median price) and 104 units (at $658 psf median price). Developers also continued to roll out smallish units to drive up sales and per square foot prices, such as Suites @ Sims, RV Point along River Valley Road and Kovan Grandeur.

The most expensive new home sold by a developer last month was a $4,800 psf unit at Boulevard Vue, a 33-storey freehold development at Cuscaden Walk. BT understands that the deal involved a 4,500 sq ft high-floor apartment, amounting to $21.6 million.

Other high-priced deals in October included Tomlinson Heights ($3,416 psf), Marina Bay Suites ($3,328 psf), Paterson Suites ($3,133 psf), Alba in Cairnhill Rise ($3,100 psf), Twin Peaks in the Leonie Hill area ($2,885 psf) and Seascape in Sentosa Cove ($2,838 psf).

In terms of sales volume, October's top-selling primary market projects included the two new ECs. The total of 979 units in these two projects boosted total units launched by developers in October to 2,049 units.

Excluding ECs, developers released 1,070 private homes in October, slightly above the 1,058 units in September.

Other projects that sold well last month include The Glyndebourne (112 units at $2,149 psf median price), NV Residences in Pasir Ris (81 units at $831 psf), Suites at Orchard (80 units at $2,140 psf) and Vacanza @ East (77 units at $1,081 psf).

Source: /www.businesstimes.com.sg

Published November 3, 2010

Behind those gyrating home supply estimates

As projected supply of homes fluctuates, URA says it's based on developer inputs


By UMA SHANKARI


(SINGAPORE) A recent presentation on the estimated supply of private housing units in the pipeline has reignited the debate about the accuracy of official estimates.

The presentation - by real estate firm International Property Advisor (IPA) - highlighted the fact that the number of private homes that are projected to be completed each year has fluctuated broadly over time. The Urban Redevelopment Authority (URA) compiles the number on a quarterly basis.

Take, for example, the projected supply of private homes due to be completed in 2010. In the URA's Q1 2006 publication, the agency said 6,115 units would be completed in 2010. But over the next several quarters, the number grew steadily and, by Q3 2007, it was estimated that up to 21,451 units would be completed in 2010 - a climb of 251 per cent in the forecast over just 18 months.

And when market sentiment dipped in 2008, the numbers were revised downwards. Anticipated completions for 2010 plunged to a low of 5,394 units in Q2 2009 - down 75 per cent over 21 months - before climbing again to 10,536 in Q3 2010.

IPA chief executive Ku Swee Yong, who made the presentation at a luncheon hosted by the Real Estate Developers' Association of Singapore (Redas), said the fluctuation in the projected supply for 2010 was especially pronounced.

'The estimates for 2010 were first published in Q1 2006. And since we were four-and-a-half years away from 2010, we would be right to expect that most developers would not have planned for projects so far ahead yet,' Mr Ku said. 'However, from 2009 onwards, as we progressed to within 12-24 months from the end of 2010, the completion numbers should have become more and more precise.'

But this was not the case, he said. In Q3 2009, URA's publication said just 5,737 units would be completed in 2010; in Q4 2009, the figure was 7,584.

In its latest (Q3 2010) publication, URA said 10,536 private homes would be completed this year. More than 8,300 units have already been completed in the first three quarters.

Mr Ku added: 'If some investors had made a decision to buy, thinking the supply (for 2010) was lower than the historical average (of 8,000 units), they could have since decided that they had made a wrong decision. They may find it tougher to get tenants due to the high number of new units that are being completed this year.'

In response to a query from The Business Times, URA said the estimated supply of private housing units in the pipeline is computed based on the expected completion dates of projects with planning approval (either provisional permission or written permission), which is obtained through URA's quarterly survey of developers.

'The expected completion dates of projects are estimated by the developers, and not projected by URA,' said a URA spokesman. 'The progress of the construction of various projects may be faster or slower than earlier estimated by the developers, who may revise the expected completion dates of their projects.

'New projects which are issued with planning approval every quarter may also be added on. Similarly, projects for which planning approvals lapsed in the reference quarter are removed.

'As a result, the estimated supply of new units that are expected to be completed over the next few years may change every quarter.'

The spokesman added that as the pipeline supply figures are published every quarter, the market is regularly updated of the changes, if any, so that they can make informed decisions.

Mr Ku likewise said that the estimated completion numbers for 2010, 2011 and 2012 probably fell sharply during URA's 2008 publications as developers' sentiment nosedived.

But analysts said that what is cause for concern now is that there are no pipeline figures for 2011 and 2012 that can be taken to be reasonably accurate - at a time when the sentiment in the real estate market is uncertain and more government measures to cool the property market could be on the horizon.

BT understands that the Ministry of National Development (MND) takes into consideration the pipeline supply when it plans its half-yearly government land sales (GLS) programme.

Analysts BT spoke to said they use URA's estimated supply of private housing units in the pipeline as a 'base' to arrive at their own projections, which often vary significantly from those provided through official channels.

Market consensus is that as the end of 2010 approaches, Singapore can expect another climb in the number of expected completions for both 2011 and 2012.

The estimated supply of private homes due to be completed in 2011 has already fluctuated greatly since end-2006. In Q4 2006, URA said 5,876 new private homes would be completed in 2011. The estimate rose to 20,492 in Q1 2008 before dropping sharply to 9,196 in Q4 2009. In Q3 this year, an estimated 6,766 homes were expected to be completed in 2011.


Source: http://www.businesstimes.com.sg/

Published November 2, 2010

Hotel site in Tanjong Pagar area up for sale
Tender for reserve list plot triggered after minimum bid


By KALPANA RASHIWALA

THE Urban Redevelopment Authority (URA) will put a hotel plot in the Tanjong Pagar area on the reserve list for tender after a successful application from an unnamed developer that has agreed to bid a minimum price of about $94.05 million or $450 per square foot per plot ratio (psf ppr).

The 99-year leasehold plot, at Gopeng Street/Peck Seah Street, was made available for application through the reserve list system in February 2008.

The plot can generate about 330 hotel rooms and 31,215 sq ft gross floor area of commercial space, according to information listed in the second-half 2010 Government Land Sales Programme.

URA will launch the public tender for the site in about two weeks.

The land parcel is a stone's throw from two earlier hotel sites sold by URA in 2007. One plot was sold for $123 million or $573 psf ppr to Carlton group, and the other was sold for $97.07 million or $562 psf ppr to Chng Gim Huat of CGH Group.

Cushman & Wakefield Singapore's managing director Donald Han predicts the top bid for the latest plot could be in the $650-750 psf ppr range (or about $136 million to $157 million in terms of absolute bid prices).

URA in its release noted that the Tanjong Pagar area is home to several hotels which have been established to serve the business community and tourist visitors. These include business hotels like the Amara and M Hotel, as well as award-winning hotels such as Berjaya Hotel and The Scarlet.

'The successful sale and on-going development of several new office, high-rise residential and hotel sites in the area will further enhance the vibrancy and activities of the Tanjong Pagar commercial district,' it added.

Source: http://www.businesstimes.com.sg

by Travis Teo
05:55 AM Oct 29, 2010

SINGAPORE - The private landed-property sector shows no sign of cooling, with nearly a hundred developers vying for a piece of the Sembawang Greenvale site.

Held by the Urban Redevelopment Authority yesterday (URA), the auction saw fierce bidding for the 14 land parcels at the site.

Winning bids fetched between $2.25 million and $26.15 million at URA's first landed-property land-sales auction in more than two years.

The land parcels range from 417 sq m to nearly 3,800 sq m and can potentially yield about 115 landed housing units.

On average each parcel received about 50 bids, with each bid adding between $20,000 and $50,000 to the price.

Analysts said that winning prices were higher then they had expected.

They said this is due to strong pent-up demand from developers in the landed-property segment.

"From today's auction's results we can see that some of the small developers are very confident of the landed housing market in the months ahead," said Mr Nicholas Mak, executive director of research and consultancy at SLP International.

"Going forward, this segment of the market will be quite resilient, even with the recent government cooling measures," he added.

The winners were mostly smaller developers and construction firms.

They were drawn to the sites as they have the flexibility to pre-design and manufacture the homes off-site and put them together on-site.

"We are going to use a pre-cast concept, so that we can come up with the building in a very short period," said Mr Vincent Chua, managing director of Techcom Construction & Trading, adding that he aimed to complete the project in six to nine months.

Analysts said developers will build terrace houses that will likely fetch up to $2.2 million, while bungalows will fetch up to $4 million each.

Industry watchers expect private home prices to rise by 32 to 38 per cent this year.

In light of the highly favourable response, analysts expect the URA to organise more private land-sales auctions, if more land becomes available.

Source: http://www.todayonline.com