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Upgraders dominate the housing market, says Wing Tai

Posted by Singapore Property Launch on 26th August 2017 in Blog
East Coast Singapore

 

A “strange phenomenon” has occurred in the housing market, in which home upgraders dominated the market, while foreign buying and speculative investment remains suppressed, reported the Straits Times.

The phenomenon comes as upgraders pushed prices in new townships and traditional areas nearer to those in the fringe area around Orchard Road, said Cheng Wai Keung, chairman and managing director of Wing Tai Holdings.

Prices within the fringe area or Rest of Central Region, on the other hand, have not witnessed the same increase due to the absence of speculative and foreign investment, he noted.

With the recovery looking like a two-speed one, Cheng revealed that he remains uncertain of the market outlook.

“This is a very different and difficult period in my 40 years in the property market. It has stabilised but you are not sure if it will continue to be like that,” he said during the group’s results briefing.

“But that does not mean that we do not look at property that will give us value.”

Wing Tai and Keppel Land submitted the highest bid of S$446.3 million for a land parcel at Serangoon North Avenue 1 last month.

Wing Tai saw its fourth quarter net profit soar 406 percent year-on-year to S$9.5 million.

For the 12 months to 30 June, net profit jumped 184 percent to S$20.1 million, while revenue dropped 52 percent to S$263.2 million.

Full-year earnings per share increased from 0.91 Singapore cents to 2.59 cents and net asset value per share rose to S$4.07 as at 30 June.

With this, the company declared a first and final dividend of three Singapore cents per share as well as a special dividend of three cents per share – similar to last year.

credits: propertyguru

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Sim Lian to build 12-storey condo at Tampines site

Posted by Singapore Property Launch on 25th August 2017 in Blog
Tampines Court Singapore

 

Sim Lian intends to develop a condominium project with over 2,000 units on the Tampines Court site, which it acquired for S$970 million, reported Business Times.

This makes Tampines Court the biggest collective sale since 2007, when Farrer Court was sold for S$1.3388 billion.

Exceeding the initial reserve price of S$952 million, the S$970 million price works out to a land rate of S$676 psf per plot ratio, inclusive of the differential premium of S$359 million for site intensification and topping up the lease to 99 years, said Terence Lian, head of investment sales at Huttons Asia, which brokered the sale.

The owners are set to receive between S$1.71 million and S$1.75 million each.

Nestled on a 702,164-sq-ft site, Tampines Court comprises 560 units spread across 14 blocks. The site can accommodate a maximum gross floor area of around 1.97 million sq ft, based on its plot ratio of 2.8 under the Urban Redevelopment Authority’s 2014 Master Plan.

A sought-after estate, Tampines is poised to become more exciting with the Changi Airport’s expansion, noted Sim Lian Holdings managing director Ken Kuik.

“This, combined with the fact that new MRT stations are coming up in the Tampines area, will attract more residential property buyers as well as enhance the investment proposition for the area.”

The group is making the purchase via Sim Lian (Treasure), a joint venture between Sim Lian Land and Sim Lian Development. It will also handle the construction of the project.

“We’re looking at a 12-storey project with easily over 2,000 units, ranging from one-bedders to four or even five-bedders,” said Kuik.

A market watcher expects Sim Lian’s breakeven cost to stand at around S$1,200 psf, after factoring in an anticipated increase in DC rates come 1 September and other costs.

The en bloc sale will be subject to the Strata Titles Board’s (STB) approval and if necessary the High Court, unless the owners’ unanimous approval is obtained.

To avoid paying additional buyer’s stamp duty on the land price, Sim Lian will have to finish developing the project and sell all units in five years starting from the date the collective sale order is granted by the STB or the court.

credits: propertyguru

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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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