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New Private Home Sales Plunged In August

Posted by Singapore Property Launch on 23rd September 2018 in Blog
JadeScape Archi View crop

Artist’s impression of JadeScape, a new private housing development near Marymount MRT station.

Following the introduction of new property cooling measures on 6 July, new private home sales in Singapore declined sharply in August on both a monthly and yearly basis, reported Channel NewsAsia.

According to statistics published by the Urban Redevelopment Authority (URA) on Monday (17 Sept), developers sold 616 new private units last month, excluding executive condominiums (ECs).

This translates to a 50.6 percent slump from the 1,246 units taken up in August 2017 and a 64.3 percent plunge from the 1,724 units sold in July this year, when buyers rushed to purchase private homes on the evening of 5 July before the curbs took effect.

Including ECs, property developers moved 639 units in August versus the 1,587 units that changed hands a year ago and the 1,776 condos transacted in July 2018.

The latest statistics prove that the new measures are beginning to take “a significant toll” on the demand for private condominiums, said OrangeTee & Tie.

“While August is traditionally slower for sales and launches (due to the Hungry Ghost Festival), last month’s figure is in stark contrast to the same period last year where 794 new homes were launched and 1,246 units were sold.

“The tighter financing rules and increased Additional Buyers’ Stamp Duty of up to 20 percent for foreign buyers have also sent foreigners scurrying from the market,” noted the property agency.

Moreover, PropNex Realty revealed that excluding ECs, August saw the lowest volume of new private home sales over the past six months.

“It is understandable that August’s performance is slower as it is the first month right after the cooling measures were implemented, with buyers and investors still trying to understand and digest the effects (on) future pricing,” said its chief executive Ismail Gafoor.

Nevertheless, he is confident that sales of new private condos will rebound from 616 units in August to over 800 units by September due the launches of Mayfair Gardens and JadeScape.

In August, the top-selling newly-launched private condo was The Tre Ver, which sold 164 out of 200 units put up for sale at a median price of $1,551 psf.

“The success of The Tre Ver (in) moving 82 percent of units launched in August, post-cooling measures, signals silver linings for rightly priced projects,” Ismail added.

Other popular projects include Riverfront Residences and Park Colonial, where 76 and 79 condos changed hands for $1,311 psf and $1,713 psf respectively. Stirling Residences also moved 91 units at a median price of $1,757 psf.

credits: propertyguru


Laguna Park Makes Third Try At Collective Sale With $1.48b Reserve Price

Posted by Singapore Property Launch on 22nd September 2018 in Blog
Laguna Park

The 99-year leasehold condo at Marine Parade Road is near the upcoming Siglap MRT station. (Photo: Knight Frank)

After two en bloc sale attempts in 2007 and 2010, owners of former HUDC estate Laguna Park are making another bid at a collective sale, reported Channel NewsAsia.

Carrying a reserve price of $1.48 billion, the 99-year leasehold development at Marine Parade Road comprises seven blocks of 506 standard apartments, 10 penthouses and 12 commercial units.

Marketing agent Knight Frank noted that the land price translates to $1,253 psf per plot ratio (psf ppr) after factoring in a $416.1 million lease top-up premium and a $453.5 million additional differential premium.

It added that the 62,000 sq m site may be redeveloped to yield 2,487 new units averaging 70 sq m each.

“Laguna Park is possibly the first and only en bloc site to be launched for collective sale offering both panoramic sea views and the convenience of an MRT station entrance at its doorstep,” said Ian Loh, executive director and head of investment and capital markets at Knight Frank Singapore.

The nearby Siglap MRT station is set to be completed by 2023.

The tender for Laguna Park will close on 1 November.

credits: propertyguru


Close Fight For Sengkang EC Site

Posted by Singapore Property Launch on 18th September 2018 in Blog, Property
Anchorvale Crescent EC site 16Sept crop

Location map of the land parcel at Anchorvale Crescent. Source: HDB

Competition was tight for an executive condominium (EC) site measuring approximately 184,464 sq ft at Anchorvale Crescent in Sengkang, which attracted a total of seven bidders before the tender exercise closed on Friday (14 Sept).

According to the Housing and Development Board (HDB), the highest bidder is Evia Real Estate and Gamuda (Singapore), which offered $318,888,889, which translates to a land rate of about $576 psf per plot ratio (psf ppr).

The second top bidder is Qingjian Realty, which submitted a bid of $318,888,000 ($576 psf ppr).

“This has to be the tightest bid spread ever between the top two bidders for a GLS site. Notwithstanding the fact that another tender EC site was closed 10 days earlier, this site saw strong bidding by developers,” said Huttons Asia research head Lee Sze Teck.

Colliers International’s research head Tricia Song agrees. “The top bid barely edged out the second highest bidder by just $899 or 0.0003 percent, and the tight margin of just 15 percent between the top and last bidder showed the consensus of pricing among developers.”

Land bids for Anchorvale Crescent EC site

Source: HDB

Song noted that the highest bidder is a joint venture between Evia Real Estate and Gamuda, which last teamed up for GEM Residences. Evia Real Estate is also no stranger to building ECs as it constructed Heron Bay in 2012 and Lake Life in 2013.

Song pointed out that EC sites in Singapore continue to attract strong interest from property developers. In fact, the Canberra Link EC plot tender that closed on 4 September drew nine bids, with Hoi Hup Realty and Sunway Developments offering $271 million or $558 psf ppr.

In comparison, two private residential sites in Jalan Jurong Kechil and Dairy Farm only managed to attract three and five bids respectively at the close of tender this month, following the introduction of the new property curbs in July.

Based on the $576 psf ppr top bid for the Anchorvale Crescent site, Song estimates that the EC to be built there would have a breakeven price of $900 to $950 psf ppr and an average selling price of $1,100 psf.

credits: propertyguru


Pandan Valley Seeks Record $2.6b En Bloc Asking Price

Posted by Singapore Property Launch on 15th September 2018 in Blog
Pandan Valley crop

Each owner could receive nearly $4.2 million on average if the sale goes through.

The Pandan Valley condominium has established a new record for Singapore’s highest asking price in a collective sale, after its residents voted to set the reserve price at $2.6 billion during a meeting on Saturday (8 Sept), reported TODAYOnline.

Each unit owner would pocket nearly $4.2 million on average if they succeed in selling the 623-unit development, which sits on freehold land spanning about 865,000 sq ft.

The previous record was the $2.48 billion reserve price set for Mandarin Gardens, which is currently gathering signatures of at least 80 percent of the owners to proceed with the collective sale. The 99-year leasehold project comprises a total of 1,006 units and has a land area of 1,073,226 sq ft.

Farrer Court currently holds the record for the most expensive successful en bloc sale. The 838,488 sq ft site was purchased by a CapitaLand-led consortium in 2007, and was subsequently redeveloped into the d’Leedon, a 99-year leasehold condominium with a total of 1,715 units.

During the Extraordinary General Meeting (EOGM) on Saturday, there were more than 300 residents of Pandan Valley in attendance, accounting for 40 percent of the development’s total share value.

More than 60 percent of those present voted to set the reserve price at $2.6 billion, 11 percent chose $2.86 billion, while 8.0 percent sought a higher selling price of $3 billion.

Pandan Valley’s collective sale committee will conduct a third EOGM by November to vote on how the proceeds from the sale will be distributed prior to gathering signatures from the owners.

While experts are divided on whether the $2.6 billion asking price is reasonable, Savills Singapore’s research head Alan Cheong believes the price was set high to get the owners to consent to the collective sale.

Such an amount is still high for property developers to bite, especially given the new curbs noted analysts.

“Developers are being picky… They will consider several sites before going for the kill,” said Chris International director Chris Koh, adding that Pandan Valley residents should be ready to receive offers below their reserve price.

“At $2.6 billion, I don’t think one single developer will bid for something so big… In a way, it’s putting a lot of eggs in one basket,” added ZACD Group executive director Nicholas Mak.

credits: propertyguru


Private Developers May Be Needed For VERS

Posted by Singapore Property Launch on 14th September 2018 in Blog, Property
PGNV 114

Redevelopment works of older HDB towns will keep to the aim of providing affordable and quality homes for Singaporeans.

Private developers may have a role in the Voluntary Early Redevelopment Scheme (VERS), said Minister for National Development Lawrence Wong in Parliament on Monday (10 September).

In responding to a query from MP Cheryl Chan, Wong revealed that he “will not rule out the possibility of having private developers involved and we will study her suggestion carefully”.

“But let’s be very clear. Our aim is to redevelop public housing estates, so we will ensure that any redevelopment is done in a way that preserves the character of our HDB towns and supports HDB’s mission to provide affordable and quality homes for Singaporeans.”

He noted that the scheme, which was introduced last month by Prime Minister Lee Hsien Loong during the National Day Rally, will be launched in about 20 years’ time in order to pace out the redevelopment of older towns.

But unlike the Selective En Bloc Redevelopment Scheme (SERS), which is limited to precincts where there is high development value to be unlocked, compensation for VERS will be less generous as the authorities would be redeveloping land that is more built up.

Several MPs have raised questions related to VERS, such as the computation of the compensation package, which precincts are eligible for it, and the options for residents who failed to secure VERS for their flats.

To this, Wong said the authorities need more time to work out the scheme’s many details, such as the extent of its coverage and computation of compensation.

“In particular, we will ensure that we implement VERS in a fiscally sustainable way, so that it does not become a burden for the next generation,” he said.

Wong noted that the government has set out ambitious housing plans for the next few decades, “whether they come to pass depends on our external, economic and financial situation”.

credits: propertyguru


Seniors Have Options To Unlock Value Of HDB Flats

Posted by Singapore Property Launch on 13th September 2018 in Blog
Seniors have options to unlock value of HDB flats

Seniors may choose to rent our a spare bedroom or sell part of their lease back to HDB.

HDB flats provide a nest egg to seniors for their retirement needs, and the authorities have introduced many schemes and programmes to monetise such properties by then, according to National Development Minister Lawrence Wong.

“For example, seniors can rent out a spare bedroom or right-size to a smaller flat and apply for the Silver Housing Bonus (SHB). They can also sell part of their lease to HDB under the Lease Buyback Scheme (LBS). We recently announced the extension of LBS to five-room and larger flats so that more Singaporeans can benefit from the scheme.

“Government upgrading programmes will also help to maintain the value of the HDB flats, and ensure they remain safe and liveable through their lifespan,” said Wong during a parliamentary session on Monday (10 Sept).

In line with this, he revealed that the authorities will carry out the Home Improvement Programme (HIP) for the next batch of HDB flats constructed from 1987 to 1997. They will also implement a second round of HIP upgrading when the properties are 60 to 70 years old.

Wong said this in response to Marsiling-Yew Tee GRC MP Alex Yam Ziming, who asked whether the ministry can clarify what HDB flat owners at different life stages should do to ensure they have a home for life and also an adequate nest egg for retirement, in light of the various new initiatives on public housing.

Wong noted that the authorities have put in place policies to help Singaporeans meet their housing needs at different life stages.

For instance, the government provides generous housing grants to young citizens buying their first HDB flat, and such homes are sold at subsidised prices. Thereafter, some families may opt to move to a bigger flat, or live close to their children or parents.

“They should be in a good position to do so, as they would have enjoyed some appreciation from their first flat.  We also have schemes to help them live near their parents or married children, such as the Proximity Housing Grant, which was enhanced earlier this year,” added Wong.

credits: propertyguru