Published January 19, 2011

Plot near Bartley MRT triggered for release
99-year leasehold site can be used for condo project

By KALPANA RASHIWALA

IT'S only January and a second 99-year leasehold private housing site has been triggered from the government's reserve list for the first half of this year - a plot next to Bartley MRT Station which can be developed into a new condo project with about 620 units.


This follows the successful application for the site's release by an unnamed developer that has agreed to bid at least $191.78 million or about $288 per square foot per plot ratio (psf ppr) for the site.

Earlier this month, the government announced that a reserve list plot near Bishan MRT Station was triggered for release with the successful applicant committing to pay at least $189.8 million or $300 psf ppr.

Analysts note that while the government has ample sites on the confirmed list - where sites are released according to a prestated schedule regardless of demand - for the current half, most of them are far from the city in locations like Choa Chu Kang, Tampines, Upper Changi, Sembawang and Punggol.

So they were probably drawn to the Bishan and Bartley plots which are closer to the city and near MRT stations. 'The Bartley plot is just one MRT stop away from Nex mall,' observed Knight Frank's head of consultancy and research Png Poh Soon.

While the successful applicants for the Bishan and Bartley reserve list plots would have submitted their applications before last week's property cooling measures were announced, some analysts say they would not be too surprised if developers continue to trigger a few more sites from the reserve list. 'It could be an opportunity to replenish their landbanks with new sites bought at less aggressive prices compared with before the latest cooling measures,' suggests Credo Real Estate executive director Ong Teck Hui.

Market watchers pointed to at least two remaining sites in the reserve list - two adjoining plots at Stirling Road near Queenstown MRT Station which can be developed into condominiums - that could be on developers' trigger watchlist.

Projects on sites in or closer to the city are more likely to enjoy investment demand from buyers thinking of leasing out the units. And usually developers can carve out smaller units from such projects and thus achieve higher psf prices.

Urban Redevelopment Authority also launched yesterday a confirmed list plot facing Bedok Reservoir that can be be developed into a five-storey project with about 640 units. Allowable developments include condominium/flats and serviced apartments.

Knight Frank's Mr Png expects top bids for the plot to be in the $450-500 psf ppr range and selling prices to be about $1,000 to $1,050 psf given the site's choice location near the future Bedok Town Park MRT Station under the Downtown Line.

Credo's Mr Ong has a lower land price expectation of about $280-320 psf ppr, with the top end of that range reflecting a breakeven cost of about $700 psf - to factor in a safety margin in case of price softening following the recent cooling measures.

BT understands that nearby, Frasers Centrepoint and Far East Organization are currently selling units at Waterfront Key and Waterfront Gold at average prices just shy of $1,000 psf.

On the other side of the reservoir, Sim Lian has been selling units at its Waterview condo at about $838 psf on average. It is developing the condo on a 99-year leasehold plot bought last year for $421 psf ppr.

As for the Bartley plot, Mr Ong predicts top bids could be in the $320-360 psf ppr range - with the upper end of the range translating to a breakeven cost of about $750 psf, again to leave a 'safety margin' for potential price declines.

He estimates a new condo project on the site could today sell for an average price of about $900 psf.

'Bidders would be cautious and factor in some cushion in case of a softening in private home prices. This will result in land bids being lower than those before the cooling measures were introduced,' said Mr Ong.


Source: www.businesstimes.com.sg

Analysts say surge in private home sales reinforce the case for harsher measures

by May Wong
05:55 AM Dec 16, 2010

SINGAPORE - A surprising surge in private home sales last month - coming at a time when the Government's cooling measures were expected to take effect - has prompted analysts to predict that another round of intervention could be on the cards.

Private home sales in November jumped almost 80 per cent from the previous month, bringing the total number of homes sold so far this year to more than 15,000, surpassing the 2007 record of about 14,800 units.

According to data released yesterday by the Urban Redevelopment Authority (URA), 1,909 private residential units, excluding executive condominiums, were sold last month, up from 1,058 units in October.

Lakefront Residences in Jurong was the most popular property, selling 437 units at $1,075 per square foot (psf) last month.

The most expensive residential unit, priced at $4,358 psf, was sold at Scotts Square, a Wheelock Properties' project on Scotts Road, while the cheapest sale was at Waterview, a Sim Lian project at Tampines Avenue, for $501 psf.

The surge in sales caught analysts off-guard as it comes just three-and-a-half months after the Government took steps on Aug 30 to cool the property market, including asking banks to demand more upfront cash from homebuyers with existing mortgages.

Said Colliers International director of research and advisory Tay Huey Ying: "It just goes to show that a lot of investors are still viewing property as a safe place to park their wealth in spite of the high exposure to policy risks."

Ms Tay noted that another "driving factor" could be foreign purchases that were "diverted from the HDB resale market" as well as from Hong Kong and China, which introduced property curbs in recent months.

The suburban market led the pack in November, with 1,229 units sold outside the prime central region; the core central region, by comparison, saw just 213 transactions, with the remaining 467 units getting sold in the rest of the central region.

Analysts said that buyers are rushing to take advantage of low interest rates amid concerns about overleveraging.

In the latest annual Financial Stability Review, MAS said that while "household balance sheets continue to be strong, supported by conducive economic conditions" household credit exposures "need to be closely monitored and the risks appropriately managed".

According to URA, 2,329 units were launched last month. Industry watchers expect between 800 and 1,300 units to be sold this month as developers will likely launch fewer properties during Christmas and New Year.

Industry watchers say yesterday's figures have buttressed the case for another, harsher set of cooling measures, such as a tax on profits from property sales, in the next few months.

Chesterton Suntec International head of research and consultancy Colin Tan said: "What's going to happen if the buying doesn't stop? While we may not feel the impact now, the consequences may come a year or two later, and they can be pretty adverse."

Source: www.todayonline.com

Published November 29, 2010

Good take-up seen at home launches
CapitaLand sells 48 units at d'Leedon preview


By EMILYN YAP


(SINGAPORE) Property developers continued to log sales at their residential projects over the past week.


During the weekend, CapitaLand sold 48 units at d'Leedon - where Farrer Court used to be - for an average price of $1,680 per sq ft. It previewed the project only to former Farrer Court owners and 266 households visited the show gallery.

Units sold included one-plus-study units, two-bedders and three bedders. The former residents were able to choose from 200 units of various sizes across all floors in two towers.

The 99-year leasehold d'Leedon will have 1,703 apartments spread over seven towers and 12 semi-detached houses. Official sales will start this Thursday.

'We are very happy with the sales response,' said CapitaLand Residential Singapore CEO Wong Heang Fine. 'We expect more response from owners who could not make it for this preview.'

Another developer, UOL Group, has sold a total of 252 units out of 320 launched at the freehold Spottiswoode Residences. Selling prices ranged from $1,720 to $2,270 psf.

Sales at the project near Tanjong Pagar have been brisk. It was first launched about two weeks ago and 130 units were taken up during a three-day preview, out of 150 released then. The highest price achieved for those 130 units was $2,150 psf.

Over at Tampines, Sim Lian Group has sold 375 units at Waterview at an average price of $838 psf. It has launched 500 units in the 99-year leasehold project so far.

Sales have risen from last Monday, when the developer said that it sold 332 units.

Weekend sales figures for both Spottiswoode Residences and Waterview were not available. It is therefore unclear if the pace of home buying has slowed after more measures to keep the property market stable were announced last Thursday.

Concerned that hot money and low interest rates would send private home prices rising too quickly, the government pledged to release more land next year. Sites which can yield a record 14,310 new homes will be available under the H1 2011 land sales programme.

On Saturday, National Development Minister Mah Bow Tan also stressed that the government will introduce more measures to curb property prices if necessary.


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

Published November 19, 2010

Some 200 units sold at Waterview condo
Sim Lian has so far released 348 units of the development

By KALPANA RASHIWALA

SIM Lian Group is understood to have sold about 200 units at its Waterview condo at Bedok Reservoir since it began previewing the project on Tuesday this week. The average price is $838 per square foot.

On the other side of Bedok Reservoir, along a stretch boasting a more scenic view of the water, Frasers Centrepoint and Far East Organization are selling units at their Waterfront Gold project at about $980 psf and at Waterfront Key at around $1,000 psf.

Sim Lian has so far released about half or 348 units of the 696-unit Waterview condo.

The 99-year leasehold project will be officially launched today, accompanied by an advertising campaign.

Units in the 15-storey development range from two- to four-bedders; there are also six-bedroom penthouses. Sizes range from 786 sq ft for a two-bedroom apartment to 4,768 sq ft for a penthouse.

The project is at the corner of Tampines Avenue 1 and 10, next to The Tropica.

Sim Lian is developing the project on a site that it clinched at a state tender in March this year for $421 psf of potential gross floor area.

Most of the units in the Waterview's 12 blocks face the reservoir, Tampines Quarry or swimming pools in the development.

The condo's walls will be washed white and have blue glass windows to reflect the water theme for the project.

Source: www.businesstimes.com.sg