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Rio Casa sold en-bloc for S$575mil

Posted by Singapore Property Launch on 28th May 2017 in Blog
Rio Casa Aerial

 

Rio Casa, a 286-unit development at Hougang Avenue 7 has been sold collectively for S$575 million to Oxley-Lian Beng Venture Pte Ltd, revealed marketing agent Knight Frank.

Coupled with an additional differential premium of around S$208 million to top up the lease to a fresh 99 years and develop the site to a gross plot ratio (GPR) of 2.8, the purchase price works out to a land price of about S$706 per sq ft per plot ratio (psf ppr), based on its maximum permissible gross floor area (GFA) of around 1,109,447 sq ft.

The property was put up for collective sale in April, after more than 80 percent of the owners agreed to the en bloc sale.

Knight Frank noted that each owner is set to receive around S$2 million in gross sale price upon the “successful completion of the sale, which is subject to several conditions being met, including an order of sale by the Strata Titles Board or Court Approval”.

Featuring seven residential towers, the former HUDC estate has a site area of 36,811.1 sq m (about 396,231 sq ft) and enjoys a 200m frontage of riverfront. It is zoned for residential use under the Master Plan 2014.

Knight Frank executive director and head of investment & capital markets Ian Loh attributed the strong interest for the estate to its positive site attributes – which include easy access to Hougang MRT stations and bus interchange, proximity to Serangoon Park Connector, vast surrounding green spaces and waterfront view.

Aside from this, no new launch is “expected within the immediate vicinity, in the short to medium term”.

“The gross development value for this project is estimated at S$1.4 billion and can potentially be redeveloped to build about 1,400 residential units, assuming an average size of 70 sq m per unit,” he added.

credits: propertyguru

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Developers pay more for sites amid fierce competition

Posted by Singapore Property Launch on 17th May 2017 in Blog
Waterway_Ridges_and_Waterway_Banks_in_Punggol_Singapore_under_construction

 

The aggressive bidding for land at public tenders this year saw developers paying an average of 29 percent more for residential sites over comparable plots sold over the last five years, reported The Straits Times.

Cushman & Wakefield noted that the figure is significantly higher compared to the 13 percent average premium that developers paid in the second half of 2016.

“This is testament to greater confidence (on the part of) developers in the residential market, bolstered by the positive response in new project launches in recent months,” it said, noting that the hike in sales was partly attributed to the lifting of some of the cooling measures in March.

The number of bidders at tenders has also increased to 13.3 in the first four months of 2017 from 8.25 in 2H 2015.

In fact, interest from foreign players has intensified, with two of four land tenders awarded to foreign companies so far this year, noted Cushman & Wakefield.

With this, analysts expect upcoming tenders for this year to be keenly contested as land-starved developers fight over a limited supply of land.

However, International Property Advisor chief executive Ku Swee Yong does not expect the government to “put more sites out in its upcoming land sales programme in view of the large number of vacant units and the weak leasing market”.

Notably, the Ministry of National Development is set to announce which sites will be available for the second half of 2017 next month.

And given the “strong liquidity-driven market”, foreign developers are expected to outbid their local counterparts, possibly resulting to more private land acquisitions, said Cushman & Wakefield.

credits: propertyguru

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CDL posts 8.4% rise in Q1 revenue

Posted by Singapore Property Launch on 14th May 2017 in Blog
CDL posts 8.4% rise in Q1 revenue

Despite a challenging market, City Developments Limited (CDL) recorded a revenue of SGD783.8 million in Q1 2017, up 8.4% from the SGD723.3 million in the same period a year ago, revealed an SGX filing on Thursday (11 May).

“The increase is attributable to improved performance from the property development segment which posted a 33.9% increase in contribution, primarily led by the progressive handover of units in Phase One of Suzhou Hong Leong City Center (HLCC) and a strong take up for Gramercy Park.”

However, net profit declined 18.9% to SGD85.5 million compared to SGD105.3 million in Q1 2016.

The lower net profit is due to various factors, such as the lacklustre performance by the group’s subsidiary Millennium & Copthorne Hotels plc and the absence of contribution from two joint venture projects completed last year — Echelon and Bartley Ridge.

Another reason is the lower income gained from the realisation of an investment in a private property fund, Real Estate Capital Asia Partners, and exchange losses incurred primarily from the repayment of a New Zealand dollar denominated intercompany loan under the group’s indirect subsidiary, CDL Hospitality Trusts (CDLHT).

Earlier this month, the group was awarded the tender for a 99-year leasehold residential site at Tampines Avenue 10 after it submitted the highest bid of SGD370.1 million. It is considering to develop a 15-storey condominium there with around 800 units.

In the second half of 2017, CDL also plans to launch New Futura, which consists of two 36-storey towers housing 124 units of freehold luxury condos.

Meanwhile, CDL Executive Chairman Kwek Leng Beng said Singapore’s housing market is starting to show some signs of recovery.

“Property prices appear to be stabilising, especially in the high-end market, and there is increased investor confidence as Singapore remains a relatively safe haven in a highly volatile marketplace.”

“Recent policy relaxations are measured and prudent, and support the aim of buying property as a form of long-term investment. We are confident that the Singapore Government will continue to monitor market conditions closely and make the necessary tweaks to the other property cooling measures as and when the situation warrants,” he added.

credits: propertyguru

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New Futura to launch amid improved market sentiment

Posted by Singapore Property Launch on 11th May 2017 in Blog
View of New Futura

View of CDL’s soon-to-be completed New Futura condominium at Leonie Hill Road.

UPDATED: Property developer City Developments Limited (CDL) is gearing up to launch its New Futura condominium at Leonie Hill Road in prime District 9 sometime in the second half of 2017.

Located close to the Orchard Road area, the luxury freehold project will comprise two 36-storey towers with a total of 124 units. Construction is expected to be completed later this year.

It was previously reported that CDL jointly purchased the collective sale site with El-Ad Group for $287.3 million ($1,179 psf) in late 2006, but the Israel-based American firm later sold its 50 percent stake to CDL.

There will be a range of unit types, including two- to four-bedroom apartments and five-bedroom penthouses from 1,098 sq ft to 7,825 sq ft. All apartments will have private lift access.

Wong Xian Yang, Head of Research & Consultancy at OrangeTee, said not much information is currently available about New Futura, but he estimates average selling prices to be upwards of $2,700 psf.

He explained that supply of new projects in the Core Central Region (CCR) remains relatively limited, as most completions in recent years have been concentrated in the Outside Central Region (OCR).

 

New Futura

New Futura is located close to the Orchard Road shopping belt. Source: CDL

 

Aside from New Futura, the only other major project to be launched in the CCR this year is GuocoLand’s 450-unit Martin Modern condominium in Robertson Quay, which is expected to have a lower average price of about $2,300 psf.

In terms of pricing, Wong thinks the luxury property market may stabilise sooner as prices in the CCR have not increased as much compared to the other submarkets during the last property boom.

“During the property boom of 2009 to 2013, CCR prices only rose 48 percent, whereas RCR (Rest of Central Region) and OCR prices rose 61 percent and 75 percent respectively over the same period.

“The implementation of the Additional Buyer’s Stamp Duty and loan curbs hit the high-end market harder compared to the other submarkets due to their higher prices and higher proportion of foreign demand in the CCR,” he said.

Echoing similar sentiments, a spokesperson for CDL noted that prices in the high-end market are showing signs of bottoming out, with increased buying interest for luxury developments.

“Analysts have indicated that with liquidity aplenty and waning concerns over the supply situation, buyers are more optimistic and coming back to the market.

“For certain premium upmarket projects like CDL’s Gramercy Park, we have even seen a pick-up in pricing from over $2,600 psf to $2,800 psf,” said the spokesperson, adding that to date, 74 units (85 percent) of the 87-unit North Tower have been sold, while 13 (65 percent) of the 20 released South Tower units have found buyers.

According to Wong, prices in the CCR could potentially lead the next price rally if the property cooling measures are gradually removed.

credits: propertyguru

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One Tree Hill Gardens sold for $65m in first en bloc sale of 2017

Posted by Singapore Property Launch on 8th May 2017 in Blog
One Tree Hill Garden

The sale price is less than the over $72.8 million that owners initially expected. (Photo: Knight Frank)

One Tree Hill Gardens off Orchard Boulevard has been sold for $65 million to a subsidiary of construction and property development company Lum Chang Group, said marketing agent Knight Frank on Friday (5 May).

The sale price translates to a land rate of approximately $1,664 psf, which is less than the over $72.8 million ($1,864 psf) that owners initially expected.

According to Knight Frank, this is the first en bloc deal of 2017, and the first involving a freehold landed-zoned site since Milton Court in June 2013.

The approximately 39,063 sq ft site, which currently houses a three-storey building comprising six maisonettes and seven apartments, was put up for sale in January this year. Under the Master Plan 2014, the site is zoned for residential, two-storey semi-detached use.

“During the course of marketing, the development received considerable interest from developers as well as contractor-developers, as this is the only sizable landed redevelopment site within close vicinity of Orchard Road,” said Ian Loh, Executive Director & Head of Investment and Capital Markets, Knight Frank Singapore.

The agency will now focus its attention on marketing Rio Casa, a privatised HUDC estate along Hougang Avenue 7. Launched for collective sale last month, the owners of the 286-unit river-fronting estate are expecting offers above $450.8 million.

The tender for Rio Casa will close on 23 May 2017.

credits: propertyguru

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Vast majority of HDB flats not qualified for SERS

Posted by Singapore Property Launch on 6th May 2017 in Blog
Vast majority of HDB flats not qualified for SERS

Prices of HDB resale units may not increase as sharply as during 2006 to 2012.

National Development Minister Lawrence Wong revealed that most public housing are not eligible for the Selective En Bloc Redevelopment Scheme (SERS), whereby the government purchases homes at prevailing market rate, while the residents are offered discounted new units in another development, reported the Singapore Business Review.

HDB flats not qualified for SERS are recovered by the Housing Board once the building’s tenure has lapsed, according to the HDB Market Pulse report from OrangeTee.

“Besides the remaining lease, there are other factors which affect the resale price of an HDB, such as current economic conditions, local supply and demand dynamics, availability of nearby amenities, upgrading works etc.”

“For example, the prices of old three-room flats in Bukit Merah have seen an uptrend in prices from 2001 to 2013 despite their declining lease,” said the property agency.

While the effect of Wong’s statement is expected to be marginal as most old HDB flats have remaining leasehold tenure of more than 50 years, OrangeTee advised people to exercise prudence when purchasing one as HDB resale units may no longer post a sharp increase in prices similar to what was witnessed in 2006 to 2012.

credits: propertyguru

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