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HDB to maintain a steady supply of flats next year, Wong

Posted by Singapore Property Launch on 16th December 2017 in Blog

The Housing and Development Board (HDB) will maintain a steady supply of around 17,000 new flats in 2018, comparable to the 17,584 flats launched this year, revealed Minister for National Development Lawrence Wong.

“We will continue to calibrate our flat supply carefully, taking into account underlying demand and the stability of the HDB resale market,” he said in a blog post.

Wong noted that around 1,000 flats will be launched in Yishun, Sembawang and Sengkang in the second half of 2018. The flats will have shorter waiting periods of around 2.5 years, instead of the usual three to four years for most other Build-to-Order (BTO) projects.

New flat buyers can expect a “good spread of projects across mature and non-mature estates, including flats in the new Tengah town”.

For this year, Wong said the government focused on helping first-timer families acquire their own home.

To help such couples better afford a flat in the open market, the government raised the Central Provident Fund Housing Grant from $30,000 to $40,000 or $50,000 in February 2017.

The enhanced grant has benefitted close to 6,900 first-timer households, said Wong.

The government also raised the rent subsidies for the Parenthood Provisional Housing Scheme (PPHS), benefiting around 840 households who are waiting for their new flats to be ready.

In August 2017, the government also launched the first Re-offer of Balance Flats (ROF) exercise for those with urgent housing needs or who are not so particular about location.

“While the flat selection exercise is still ongoing, about 800 households have already managed to book a flat,” shared Wong.

“All these mean that young couples will have even more affordable and accessible housing options to start their marriage and parenthood journey early.”

credits: propertyguru

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Derby Court sold to Roxy-Pacific unit for $73.88mil

Posted by Singapore Property Launch on 14th December 2017 in Blog
Derby Court

Third time’s a charm for Derby Court, which was sold for $73.88 million to Roxy-Pacific subsidiary, RH Developments Two Pte Ltd.

Based on the development’s “as built” gross plot ratio of 2.872, the sale price translates to a land rate of around $1,390 psf per plot ratio, said Tan Hong Boon, regional director at JLL, which is the property’s sole marketing agent.

JLL noted that owners of the development stand to receive between $3.36 million and $6.65 million in gross sales proceeds per unit, reported Business Times.

Nestled on an 18,506 sq ft freehold site, Derby Court comprises two penthouses and 18 apartment units. It is located along Derbyshire Road within the Novena locale, near the Anglo-Chinese School (Junior) and just across the road from St Joseph’s Primary Institution (Junior).

In an SGX filing, Roxy-Pacific revealed that it intends to finance the acquisition by bank borrowings and internal funds.

It added that the acquisition is “not expected to have a material impact on the group’s consolidated earnings and net tangible assets per share of the company for the current financial year ending 31 December 2017”.

credits: propertyguru

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Home prices to rise 8% in 2018: Morgan Stanley

Posted by Singapore Property Launch on 13th December 2017 in Blog
Singapore Condominium

With an “up-cycle” for Singapore property expected to last until 2020, Morgan Stanley sees home prices rising by as much as eight percent next year, reported Bloomberg.

Signs of a revival in the property market include the first hike in home prices in four years, record land deals, and the first gain in office rents in two-and-a-half years.

And while the Monetary Authority of Singapore has tempered the buoyant sentiment by flagging the risk of rising vacancies on the back of slowing population growth, Singapore developers are still expected to extend their share rally into next year.

Morgan Stanley property analyst Wilson Ng, who has “overweight” ratings on City Developments (CDL) and CapitaLand, noted that developers’ valuations are attractive based on discounts to net asset value as well as price-to-book ratios.

Morgan Stanley expects CDL and CapitaLand’s shares to jump by 24 percent and 42 percent respectively in the next 12 months.

Analysts believe that the risk of a housing oversupply may not be imminent due to the lead time needed to finish projects.

The government has only started to increase land supply recently, noted Raj Vaswani, director of the Tolaram family office in Singapore. As such, the resulting developments are not expected to enter the market before 2020.

His firm, which manages US$500 million (S$676 million), owns shares in Singapore-listed developers CapitaLand, GuocoLand and Frasers Centrepoint.

However, not everyone is bullish on the housing market.

KGI Securities (Singapore) trading strategist Nicholas Teo said many factors could weigh on home prices’ sustainable rally, such as weakness in rental demand, rising vacancy rates, and the prospect of increasing global interest rates.

Aside from this, some stringent home purchase restrictions are still in place in Singapore, which could limit the possibility of runaway house prices.

credit: propertyguru

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Park West up for en bloc sale for S$818mil

Posted by Singapore Property Launch on 10th December 2017 in Blog
Park West up for en bloc sale for S$818mil

After two failed attempts at a collective sale in 2007 and 2011, Park West condominium near Clementi MRT station has once again been put up for en bloc sale with an asking price of S$818 million, reported Channel News Asia.

This comes after over 80 percent of the owners have agreed to the sale, revealed marketing agent Huttons Asia.

It noted that the asking price works out to “an attractive land rate of S$788 psf per plot ratio (ppr), compared to the land rate of S$969 psf ppr for Normanton Park which was sold in October this year”.

Spanning 633,644 sq ft, Park West comprises four shops and 432 residential units.

Residential owners stand to gain S$1.4 million to S$2.3 million from the sale, while each shop owner could receive S$1.2 million to S$1.8 million.

With a lease balance of around 63 years, the 99-year leasehold site is zoned for residential use and has an allowable gross plot ratio of 2.1. It could yield around 1,330,653 sq ft of gross floor area once redeveloped.

“Strong interest is expected for the plum site, judging from the high popularity of units at the neighbouring project The Trilinq and nine strong bids received for GLS site at West Coast Vale at the start of the year,” said Terence Lian, head of investment sales at Huttons Asia.

Huttons Asia said developers could build 1,200 to 1,700 units, ranging from an average size of 750 sq ft to 1,100 sq ft.

The public tender for the site will close on 11 January 2018.

credits: propertyguru

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URA closed tender for Jiak Kim Street and Fourth Avenue sites

Posted by Singapore Property Launch on 9th December 2017 in Blog
Jiak Kim Street

View of the land parcel at Jiak Kim Street. (Photo: URA)

Two residential plots in Jiak Kim Street and Fourth Avenue attracted a total of 17 bids with the combined top bid amounting to nearly $1.51 billion, after the Urban Redevelopment Authority (URA) closed the tender for both Reserved List sites on Tuesday, 5 December.

The 13,481.7 sq m land parcel in Jiak Kim Street drew 10 bids. Compared to the minimum bid price of $689.35 million, FCL Residences Pte Ltd submitted the highest offer of $955.41 million or $18,649 psm based on its maximum permissible gross floor area (GFA) of 51,231 sq m.

The 18,532.2 sq m plot in Fourth Avenue saw seven bids. In comparison to the minimum bid price of $448.8 million, Allgreen Properties submitted the top price of $552.96 million or $16,576 psm based on its GFA of 33,358 sq m.

“The strong showing and competitive bidding at the top end for both Jiak Kim Street and Fourth Avenue site clearly reflect the bidders’ confidence in a recovering private residential market amid the positive economic outlook,” said Tricia Song, Colliers International’s Research Head for Singapore.

Both 99-year leasehold plots are zoned for residential, but the developer is allowed to build commercial space on the 1st level of the Jiak Kim Street site.

In particular, Song estimates a break-even price of $2,400 to $2,450 psf and an average price of $2,600 to $2,700 psf for the larger site. That for the Fourth Avenue plot is around $2,200 psf, with an average selling price of $2,400 to 2,500 psf.

Meanwhile, JLL’s Research Head for Singapore Tay Huey Ying noted that the batching of tender closings has helped spread competition as each site attracted a different set of bidders. She also pointed out that home builders from the city-state have trumped their overseas rivals for both plum sites.

“Local developers continue to maintain their hold on the prime district market, pipping foreign developers such as China’s CSC Land and Hong Kong tycoon Li Ka-Shing’s Japura Pte Ltd for the two sites at Jiak Kim Street and Fourth Avenue, respectively,” she added.

The complete tender results for Jiak Kim Street site is available here, while that for Fourth Avenue can be viewed here.

credits: propertyguru

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Home sellers raising their prices by 4% in some areas: PropertyGuru Index

Posted by Singapore Property Launch on 25th November 2017 in Blog
Singapore skyline

The CBD and its surrounding areas saw the highest increase in asking prices.

Home sellers are already starting to price their units higher following recent signs of a property market recovery in Singapore.

This according to the PropertyGuru Property Index launched on Thursday (23 November), which shows a 3.2 percent price increase in Q3 2017 from the quarter before, reflecting an inflection point after a steady decline from Q3 2015.

PropertyGuru said that sellers are “future-pricing” their homes in anticipation of the market recovery gaining strength in 2018, following the recent en bloc fever and growing confidence amongst developers.

The highest increase of four percent was in the city centre and the surrounding areas. This was followed by the suburbs in northern and western Singapore, which saw asking prices grow by 2.5 and 2.2 percent respectively.

The Index uses data from over 200,000 listings on PropertyGuru’s website, and is benchmarked against price levels as of Q1 2015.

At the same time, the supply of homes put up for sale fell by 4.5 percent in Q3 from the previous quarter in anticipation of higher prices next year.

“There is light at the end of the tunnel now that the market sentiment has finally taken a positive turn after two consecutive years of low seller confidence,” said Hari V. Krishnan, CEO of PropertyGuru Group.

“On the other hand, consumers looking to buy homes should consider closing on their property purchases and lock in prices at the current level.”

credits: propertyguru

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