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Normanton Park launched for sale, owners expecting above $800m

Posted by Singapore Property Launch on 22nd August 2017 in Blog
Normanton Park - 2

Each owner could receive between $1.6 million and $1.8 million if the sale goes through. (Photo: Knight Frank)

The huge Normanton Park site located beside Kent Ridge Park has been launched for collective sale for a second time, marketing agent Knight Frank said on Monday (21 August).

Built in 1997 for military personnel and their families, the privatised housing estate comprises 13 blocks of 488 apartments. Unit sizes range from 1,270 sq ft to 1,550 sq ft and the entire site measures approximately 660,999 sq ft.

The owners are expecting offers of above $800 million, which works out to a land rate of about $898 psf per plot ratio.

The reserve price includes the differential premium of approximately $225.3 million for intensification of the site, as well as the lease top-up of about $220.6 million to a fresh 99 years. As such, each owner could receive between $1.6 million and $1.8 million.   

Zoned residential with a gross plot ratio of 2.1 under the Master Plan 2014, the site could be redeveloped up to a maximum permissible gross floor area of 1,388,099 sq ft.

Ian Loh, Knight Frank’s executive director & head of investment and capital markets, noted that there has been a jump in the number of professionals in the area in the last five years. This, coupled with the lack of new high-rise residential projects launched within a 1.5km radius in the last 15 years, has led to low supply.

“The new high-rise development could potentially comprise more than 1,200 new residential units of 100 sq m (1,076 sq ft), and the new homeowners should be able to enjoy lush greenery views and unblocked views of the city and the sea.

“As such, we expect the property to attract strong interest in view of its exclusive location and positive attributes,” said Loh.

SS Chopra, chairman of the sale committee and a retired Navy colonel said: “It took a mere 11 days for us to reach the 80 percent consensus and a further two weeks to launch the tender today.”

“As compared to our en bloc attempt in 2015, the marketing agents this time around are far more bullish. Hence, naturally a combination of all the factors bode well for a successful en bloc sale,” he added.

Normanton Park is close to nature parks, business parks and science parks. There are also various educational institutions in the vicinity including Anglo-Chinese Junior College, the National University of Singapore and Singapore Polytechnic.

The tender exercise will close on 5 October 2017.

credits: propertyguru

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Several factors responsible for rise in EC sales

Posted by Singapore Property Launch on 21st August 2017 in Blog
Northwave EC drop off

Artist’s impression of Northwave EC in Woodlands.

UPDATED: Sales of executive condominium (EC) units picked up in July, buoyed by the quick sell-out of Hundred Palms Residences in Hougang. The project sold all 531 units within just seven hours at a median price of $843 psf.

Overall, developers sold 978 EC units last month, an increase of 301 percent from 244 units in June. 

“The strong performance of Hundred Palms Residences despite its optimistic pricing reveals that there is still demand for new ECs,” said Ong Teck Hui, National Director of Research & Consultancy at JLL.

However, he cautioned not to draw too many conclusions as there were other factors as well.

“The absence of new EC projects in the vicinity and its location in a mature housing area, transportation accessibility and proximity to amenities contributed to strong demand from buyers,” said Ong.

Previously launched ECs also saw good sales last month including The Visionaire in Sembawang which sold 65 units at a median price of $830 psf. The nearby Parc Life moved 63 units at a median price of $790 psf, while Northwave in Woodlands found buyers for 43 units at a median price of $776 psf.

JLL’s analysis of the Urban Redevelopment Authority’s data shows that developers sold 3,004 EC units in the first seven months of 2017, up 11 percent from last year.

According to analysts, the lower supply of new EC units has driven up demand.

There were 1,555 units launched between January and June, 41.5 percent less than a year ago, said Ong.

At the same time, market sentiment has improved significantly since the end of 2016 and this has spilled over to ECs, noted Wong Xian Yang, Head of Research & Consultancy at OrangeTee. “As such, unsold inventory in the EC market has dwindled significantly,” he said.

Ong revealed that the number of unsold uncompleted EC units fell by 54 percent to 1,591 units in Q2 2017 from the previous year.

He expects EC prices to increase in the coming months due to the lower supply, but not by much as buyers are still price sensitive.

Wong thinks that prices could potentially rise by one to five percent on the back of higher land prices and market demand.

Looking ahead, Ong noted that there is only one EC project at Anchorvale Lane in Sengkang in the launch pipeline, while the next EC land sale at Sumang Walk in Punggol is slated for December.

Developers Hoi Hup Realty and Sunway Developments are targeting to launch the Anchorvale Lane project in Q1 2018. Located beside Punggol Reservoir, the 2.1ha site is expected to yield over 600 units.

Wong reckons that the future project could command launch prices in the range of $810 psf to $840 psf. As for the Sumang Walk site, he expects to see 10 to 20 bids ranging from $340 to $370 psf per plot ratio.

credits: propertyguru

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Tampines Court set to be biggest collective sale in a decade

Posted by Singapore Property Launch on 17th August 2017 in Blog

Tampines Court set to be biggest collective sale in a decade

Built in 1985, Tampines Court sits on a huge 702,164 sq ft site. 

Following two failed attempts at a collective sale in 2008 and 2011, Tampines Court is poised to become the biggest en bloc sale of a former Housing and Urban Development Company (HUDC) estate in a decade, reported TODAYonline.

This comes after the 560-unit development received a bid of $970 million, up from the $960 million asking price, during the close of its collective sale tender exercise yesterday (15 August).

In 2007, Farrer Court was sold en bloc for $1.34 billion.

“The tender concluded with a satisfactory result above the reserve price, considering the sprawling land size Tampines Court sits on,” said Terence Lian, investment sales head at Huttons, the marketing agent for the collective sale.

If successful, each homeowner would stand to gain $1.7 million to $1.75 million.

However, Huttons declined to reveal the developer’s identity, citing ongoing talks on sale conditions.

Built in 1985, the development at Tampines Street 11 sits on a 702,164 sq ft site and has 69 years left on its 101-year lease.

With the pending sale mirroring the optimism in the property market, analysts expect more collective sales.

“This shows the confidence of the developer to take on a project of such scale … and the risks associated with it. More importantly, their optimism that the market recovery is well on track,” said ERA Realty Network key executive officer Eugene Lim.

The robust demand for land might encourage more developments to take on the en bloc route in the coming years, said Desmond Sim, CBRE’s research head for Singapore and South-east Asia.

“There are more developers than there are land parcels. In the last land sales, there were more than 10 bidders. A lot of developers are hungry for land.”

credits: propertyguru

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Surging developer sales point to further property market recovery

Posted by Singapore Property Launch on 16th August 2017 in Blog
Kembangan Residential Area in Singapore

View of private homes in Singapore.

Sales of new private homes in Singapore, including executive condominium (EC) units, almost doubled to 2,086 units in July from 1,064 units in the previous month, data released on Tuesday (15 August) by the Urban Redevelopment Authority showed.

For the first seven months of 2017, developers sold 7,147 private units and 3,004 ECs, up 50 percent and 11.4 percent from the same period last year respectively.

According to analysts, this is further proof that the property market is on the road to recovery.

“Likely, potential buyers have come to terms with the prevailing cooling measures, and recent information that a possible turn of the market in terms of pricing is here may have pushed pen to paper,” said Desmond Sim, Head, CBRE Research, Singapore and South East Asia.

Eugene Lim, Key Executive Officer at ERA Realty Network, shares a similar view. “Buyers are anticipating the market recovery to happen in 2018, and choosing to make their purchase now in hopes of catching the market on its upswing,” he said.

He also feels that the revised Seller’s Stamp Duty rule introduced in March, which reduced the holding period from four to three years, has made new projects a very attractive option for home buyers.

The best-selling project last month was Hundred Palms Residences EC at Yio Chu Kang Road, which sold all 531 units within seven hours of its launch at a median price of $843 psf.

This was followed by the 450-unit Martin Modern condominium in Robertson Quay, which moved 109 out of the 210 units released at a median price of $2,152 psf.

Previously launched projects also reported good sales, with The SantoriniSymphony Suites and iNz Residence selling 82, 73 and 65 units respectively.

CBRE’s Sim noted that the higher sales volume in July comes off the back of a marginal 0.1 percent quarterly price decline in Q2 2017 – the smallest drop seen in 15 quarters.

Looking ahead, Lim expects developers to capitalise on rising demand by launching their units in phases. These include recently launched projects such as Park Place Residences at Paya Lebar Quarter, Martin Modern and Le Quest in Bukit Batok.

For the whole of 2017, ERA predicts total developer sales to be in the range of 10,000 to 12,000 units and EC sales of 3,500 to 4,000 units.

credits: propertyguru

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Buyers and developers turn attention to River Valley

Posted by Singapore Property Launch on 15th August 2017 in Blog
Robertson Quay

View of high-end apartments in Robertson Quay. (Photo: Christopher Chitty)

Move over Marina Bay and Sentosa Cove because there is a growing number of luxury home buyers in Singapore who are turning their attention to the River Valley area in District 9, particularly the Robertson Quay stretch.

Already an established residential enclave with several exclusive projects such as Martin Place Residences, Rivergate and Martin 38, its proximity to the Central Business District (CBD) in Raffles Place and the Orchard Road shopping belt makes it a much sought-after address among high-income expatriates.

Over the years, this has led to greater vibrancy in the area with new shops, cafés and restaurants offering alfresco dining and boutique hotels.

“River Valley is popular among investors because it is in a more affordable part of the prime districts, yet enjoying proximity to the CBD, Orchard Road and abundant amenities,” said Ong Teck Hui, National Director, Research & Consultancy at JLL.

“These attributes also help to attract tenants which augurs well for investors as they could lease their units more competitively.”

Aggressive land bids

Not surprisingly, property developers continue to bid aggressively for land sites in River Valley. In June 2016, GuocoLand outbid 12 other bidders for the Martin Modern site at Martin Place, submitting the top bid of $595.1 million, or $1,239 psf per plot ratio (psf ppr).

Launched for sale last month, the 99-year leasehold project is the first large-scale condo there in the past eight years.

To date, 110 out of the 450 units (24 percent) have been sold at an average of $2,009 psf to over $2,500 psf, said a spokesperson for GuocoLand. The developer noted that buyers “appreciate the chic lifestyle at Robertson Quay”.

“The area is also growing and transforming, especially with two new MRT lines and upcoming MRT stations at Great World and Fort Canning, as well as redevelopment of the Kim Seng Road corridor,” said GuocoLand.

Waterfront living

In addition, the presence of the nearby Singapore River means that new projects, including the future one located at Jiak Kim Street, will offer waterfront views.

Formerly home to the popular Zouk nightclub, the 99-year leasehold site measuring about 145,123 sq ft was made available for application in June under the reserve list of the first half 2017 Government Land Sales programme.

It could be triggered for sale in the coming months if a developer submits a minimum bid that’s acceptable to the government.

According to the Urban Redevelopment Authority, its prominent river-fronting location offers developers the opportunity to create an iconic landmark of up to 36 storeys high, which could yield more than 500 homes and commercial space on the ground floor. Three conserved warehouses built in 1919 will be integrated with the development.   

Ong expects the project, which is about 0.5km away from the upcoming Great World MRT station on the Thomson-East Coast Line, to see strong demand from buyers and investors.

“Its uniqueness is the river and promenade frontage with amenities along the Singapore River and the Havelock area within easy reach. We expect 10 to 14 bidders if there is a tender. (The) top bid is estimated at $1,350 to $1,500 psf ppr.”

Premium price tag

Meanwhile, Roxy-Pacific Holdings is expected to launch a much smaller residential project close to Great World MRT station along River Valley Road in Q3 2018. The developer purchased the prime freehold site measuring 28,798 sq ft for $110 million earlier this month.

“The future development will definitely command a premium price and be well sought-after by both foreign property investors and local buyers,” said Mohamed Ismail, CEO of PropNex Realty.

“We foresee there to be around 60 to 80 units and since this is a freehold residential site, the price based on current market conditions would be around $2,800 psf.”

credits: propertyguru

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Greater Southern Waterfront project may start sooner than expected

Posted by Singapore Property Launch on 14th August 2017 in Blog
Greater Southern Waterfront

Artist’s impression of the Greater Southern Waterfront. Source: URA

PSA Singapore’s decision to move from Tanjong Pagar Terminal to Pasir Panjang Terminal earlier than expected has sparked speculation of the Greater Southern Waterfront project kicking off faster, reported the Straits Times.

Three times the size of Marina Bay, the 1,000ha development is set to be built on land freed up once the ports in the city, which includes Pasir Panjang and Tanjong Pagar, are relocated to Tuas.

The move allows the government to set aside some land for release earlier, depending on market demand and conditions, said Alice Tan, Knight Frank’s research head.

“With real estate needs changing rapidly along with consumer and business trends, it could make sense for land use planning to evolve more flexibly ahead of changing needs.”

Desmond Sim, CBRE research head for Singapore and South-east Asia, however, believes it is still too early to say if the Greater Southern Waterfront project will start earlier.

“It is a huge project, and there is still a lot of elasticity in land supply today, especially at Marina Bay. So, there is no need to rush and trigger plans for the waterfront area,” he said, adding that both the state planner and PSA would benefit if the land is vacated prior to the end of the lease.

“This would give PSA more buffer time to sort out any teething problems and ensure the handover goes smoothly. For the state planners, getting control of the land earlier… allows them to have more flexibility with planning.”

Tanjong Pagar Terminal’s lease will expire in 2027, while Pasir Panjang’s lease will run out in 2024.

Sim believes that the “prime piece of land” would be best used if it is primarily set aside for mixed developments.

credits: propertyguru

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