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No Rationale For New Property Cooling Measures, Says REDAS

Posted by Singapore Property Launch on 10th July 2018 in Blog
No rationale for new property cooling measures, says REDAS

The Real Estate Developers’ Association of Singapore (REDAS) sees no rationale in imposing new property cooling measures considering that the Singapore property market is still in the “early stages of a recovery and the recovery is in line with economic fundamentals”, reported Channel News Asia.

Among the new curbs imposed by the government are a five percentage point increase in Additional Buyer’s Stamp Duty (ABSD) rates for Singapore citizens and permanent residents (PRs) purchasing their second homes and a five percentage point tightening for loan-to-value (LTV) limits for all residential property loans granted by financial institutions.

REDAS noted that Singapore’s property market began to see improved sentiments last year, on the back of brighter economic forecasts. The Singapore economy grew 3.5 percent by end-2017 and 4.4 percent during the first quarter of 2018.

Nonetheless, the sale transaction volume is not high and remained within market expectation given that the property market had been in the doldrums since 2013, it said.

This comes as buyers remained price-sensitive as the existing sizable ABSD (Additional Buyer’s Stamp Duty) and TDSR (Total Debt Servicing Ratio) continued to restrain foreign buyers and Singaporeans.

With this, the industry body feels that the property market “should be allowed time to find its own course and reach a sustained equilibrium”.

REDAS does not also see the need to impose additional measures on developers.

“As is, in the purchase of sites from the GLS (Government Land Sales) programme or private collective sites to replenish their land bank to keep operations going, developers are constrained by a confluence of financial considerations as well as tough and unfriendly business policies including the existing ABSD on developers and the Qualifying Certificate (QC) punitive conditions on majority of developers (who are deemed foreign companies),” it said.

“It is in the interest of the country to have a vibrant real estate industry and a steady growth in real estate value for home owners and investors in the long term.”

credits: propertyguru

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Hong Leong Acquires Hillview Rise Site For $460m

Posted by Singapore Property Launch on 8th July 2018 in Blog
Hong Leong acquires Hillview Rise site for $460m

Aerial view of the residential site at Hillview Rise. (Photo: URA)

A 153,881.94 sq ft private residential site in Hillview Rise that can yield about 535 homes was awarded by the Urban Redevelopment Authority (URA) on Tuesday (3 July) to Hong Leong Holdings for $460 million.

The top bid translates to about $1,044.38 psf based on the 99-year leasehold plot’s gross floor area of approximately 430,879.33 sq ft. It was submitted by Hong Leong subsidiaries Intrepid Investments and Garden Estates.

“We are pleased to be awarded the site at Hillview Rise under the Concept and Price Revenue tender system. This award recognises our experience and readiness to adopt and use innovative construction technologies and methods to achieve high construction productivity and quality outcomes for our projects,” said Hong Leong’s general manager for projects Loke Kee Yeu.

Under this tender system, bidders submit two envelopes. The ones containing the concept proposals will be opened first, followed by the envelopes containing bid prices. But only those with qualifying concept proposals will be considered, with the site going to the highest bidder.

The proposals were evaluated based on the bidder’s construction productivity plan (75 percent), construction management plan (15 percent) and track record (10 percent). The criteria required developers to use the most advanced building methods.

In fact, Hong Leong proposed to extensively adopt Prefabricated Prefinished Volumetric Construction (PPVC), and use Mass Engineered Timber (MET) for the project’s clubhouse. Aside from leveraging on BIM-based scheduling as well as QR code tracking, the developer will also utilise Virtual Design and Construction (VDC).

Overall, the Hillview Rise site was hotly contested thanks to its good attributes, with a consortium consisting of Areca Realty and CDL Constellation submitting the second highest bid of $405.889 million for the 99-year leasehold plot.

“The land parcel is very attractive, as it is close to retail amenities and is within walking distance to the MRT station. Better yet, it has the flavour of a very exclusive and private neighbourhood.  While an increase in supply is expected to come onstream, it is still of limited availability as compared to other areas,” said Knight Frank Singapore’s research head Dr Lee Nai Jia.

“With the successful bid of the site, it is likely we will witness more of such two-envelope bidding for upcoming Government Land Sales (GLS) sites,” he added.

credits: propertyguru

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Horizon Towers Up For En Bloc Sale For $1.1b

Posted by Singapore Property Launch on 6th July 2018 in Blog
Horizon Towers en bloc crop

The reserve price works out to a land rate of $1,964 psf per plot ratio. (Photo: JLL)

Horizon Towers, a 211-unit residential development at Leonie Hill in District 9, has been launched for collective sale with a reserve price of $1.1 billion.

Including the lease top-up premium of about $220 million, the price works out to a unit land rate of about $1,964 psf per plot ratio (psf ppr), revealed marketing agent JLL.

Since there is no development charge or differential premium for site intensification “even for the 10 percent bonus gross floor area due to a high development baseline, the reflected unit land rate is $1,786 psf ppr”, it said.

JLL noted that Horizon Tower’s unit land rate compares favourably with the recent Government Land Sale site at Cuscaden Road, which was sold for $2,377 psf ppr, Park House en bloc sale site at $2,910 psf ppr, the Nassim Road site at $2,744 psf ppr; Pacific Mansions site at $1,987 psf ppr; as well as the Cairnhill Mansions and adjoining sites at $2,311 psf ppr and $2,132 psf ppr respectively.

Built in the late 1970s, the 211-unit development sits on a 1.9ha site, which is zoned residential under the 2014 Master Plan with a height limit of up to 36 storeys. The 99-year leasehold property has an “as-built” gross plot ratio of about 3.28 and may be redeveloped into a high-rise residential development.

It is located near the upcoming Great World MRT station, the Orchard MRT Interchange (Thomson-East Coast Line) as well as Ngee Ann City and Kim Seng Park.

JLL capital markets regional director Tan Hong Boon expects the site to attract “very keen interest from large developers and consortiums…given its unparalleled attributes for a potential residential masterpiece at reasonable pricing”.

“Given the premier address, a sprawling ground in the Orchard Road neighbourhood and its high-rise attributes, it is compelling for a discerning developer and its architect to deliver a luxurious masterpiece with comprehensive amenities and facilities, complete with bespoke services for its future well-heeled residents,” he said.

The tender for Horizon Towers closes on 7 August.

credits: propertyguru

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Private Home Prices In Singapore Up 7.4% In First Half Of 2018: URA

Posted by Singapore Property Launch on 5th July 2018 in Blog
Singapore Condominiums

The property market continues to be driven by high demand from buyers, robust en bloc activity and confident land bids by developers, said PropertyGuru.

Private home prices in Singapore continued to grow in Q2 2018 with a 3.4 percent increase from the previous quarter, according to flash estimates of the Urban Redevelopment Authority’s price index released on Monday (2 July).

“This is the fourth consecutive quarter of increase in the URA Property Price Index since Q3 2017 and following the 3.9 percent increase in Q1 2018,” said Eugene Lim, key executive officer at ERA Realty.

He also noted that private home prices increased by an estimated 7.4 percent in the first half of 2018.

URA data shows that all segments of the market registered positive price changes in Q2, with the Core Central Region witnessing a 1.4 percent increase, the Rest of Central Region (5.7 percent) and the Outside Central Region (2.9 percent).

PropertyGuru’s chief business officer Lewis Ng said this is line with the latest PropertyGuru Property Index, which saw asking prices rise for the fourth straight quarter, by 3.4 percent to 102.6.

“The property market continues to be driven by high demand from buyers, robust en bloc activity and confident land bids by developers,” he said.

With market sentiment still very positive, ERA’s Lim believes the continued increase in prices “signals that the market is on an upswing trend”.

He said more buyers “are buying now for fear of further price increases going forward”, while sellers have taken this opportunity to revise their asking prices upwards.

Average prices at Park Place Residences at Paya Lebar Quarter, for instance, now stand at $2,022 psf, up 12 percent from $1,806 psf during last year’s Phase 1 launch.

Twin Vew at West Coast Vale was launched at $1,399 psf, 19 percent higher than the $1,176 psf launch price of next door’s Parc Riviera in 2016. Meanwhile, Margaret Ville in Queenstown was launched at $1,887 psf, up 16 percent from the launch price of the nearby Queens Peak at $1,632 psf last year.

Buoyed by en bloc sellers in search of replacement homes and the relatively lower prices compared to new launches, the resale market was also very active during the second quarter, said Lim.

In fact, there were 3,879 caveats lodged for resale and subsale transactions from April to 22 June. The figure is already higher than the 3,828 resale transactions in Q2 last year.

Despite this, the government has maintained all the property cooling measures – except for the shorter holding period of three years for the Seller’s Stamp Duty and the strict property financing rules.

Committed to maintaining a sustainable housing market, the government has shown “that it will intervene if necessary to cool the market, and the possibility remains that it may do so in the future; should price increases be excessive and we see the onset of property speculation”.

While uncertainty in the stock market, rising interest rates and the possibility of a trade war between the US and China may slow down the recovery of the property market, Lim still expects to see an overall price increase of 10 to 12 percent this year.

PropertyGuru’s Ng also predicts further rises in property prices in 2018. But he cautioned that there are potential market risks, including rising interest rates and an elevated vacancy rate. “As such, buyers need to be careful not to overstretch their finances,” he said.

credits: propertyguru

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Over 7,000 Visited Riverfront Residences Showflat

Posted by Singapore Property Launch on 26th June 2018 in Blog
Riverfront Residences preview crowd crop

Crowds braved the rain for the opening of Riverfront Residences over the weekend.

More than 7,000 people visited the Riverfront Residences showflat, a 1,472-unit residential project with six retail shops in Hougang Avenue 7, after it opened for preview over the weekend (23 – 24 June).

“The response has been very encouraging and the crowd was especially strong on Saturday despite the heavy downpour,” said a spokesperson for the Oxley-led consortium developing the project.

“Due to the overwhelming response, we will be opening the showflat on weekdays and this coming weekend for those who may have missed visiting this project due to the June holidays.”

The 99-year leasehold condominium is situated on the former site of Rio Casa, which was acquired last May through an en bloc sale valued at $575 million.

Buyers can choose from one- to five-bedroom apartments from 463 sq ft to 1,905 sq ft, along with four-bedroom strata terrace houses measuring 2,109 sq ft.

Prices range from $578,000 for the one-bedders to $1.97 million for the five-bedders, with the strata terrace houses going for $2.35 million each.

Expected to be completed by 2024, the project has a large land area of about 396,231 sq ft and a plot ratio of 2.8, enabling the developers to build over 100 facilities.

These include three clubhouses each with different amenities such as a co-working and study space, a gym and KTV/movie room, and a fully-equipped kitchen. The developers will also offer dockless sharing bikes for residents.

In addition, there is a park connector in front of the project that links to the nearby Punggol Park.

Oxley intends to officially launch Riverfront Residences in July. This follows the launch of Affinity at Serangoon earlier this month, which saw 112 of the 300 units released sold at an average price of $1,575 psf.

credits: propertyguru

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Rochor Centre Demolition To Begin On 26 June

Posted by Singapore Property Launch on 24th June 2018 in Blog
Rochor Centre demolition to begin on 26 June

The government announced in 2011 that it would acquire Rochor Centre to make way for the North-South Corridor. 

The demolition of Rochor Centre will commence on 26 June and is set for completion by April 2019, announced the Land Transport Authority (LTA) on Wednesday (20 June). This is in preparation for the construction of the North-South Corridor (NSC).

The demolition of the iconic rainbow-coloured estate will start from the top floors, with the structure progressively brought down floor-by-floor using machinery.

“For the convenience of pedestrians during the works, temporary sheltered walkways have been erected at alternative routes around the site. There are also signages at public access areas to redirect pedestrians,” said LTA.

It noted that the work area was enclosed by the contractor with dust screens and noise barriers to minimise the impact of dust and noise. A water spraying system will “also be used to suppress airborne dust particles during the demolition”.

It also requires the contractor to monitor and comply with the permissible noise level stipulated under the prevailing regulations.

“LTA will continue to work closely with the contractor to monitor and minimise inconvenience to the public,” it said.

Works to construct the section of NSC near Rochor Centre will follow after the completion of the demolition works and site preparatory works, LTA added.

The government announced in November 2011 that it would acquire Rochor Centre to make way for the NSC, reported Channel NewsAsia.

Told to move out by end-2016, residents of the estate were offered relocation benefits similar to those given under the Selective En Bloc Redevelopment Scheme.

Aside from the opportunity to move to a new 99-year leasehold flat, the residents were given an acquisition package comprising compensation and rehousing benefits.

As part of the package, they were assured of a replacement home at Kallang Trivista.

credits: propertyguru