singapore property weekly issue 82

7/30/2019 Singapore Property Weekly Issue 82

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Issue 82Copyright 2011-2012 www.Propwise.sg. All Rights Reserved.
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CONTENTS

p2 How Does the 1H13 GLS Programme

Impact Property Supply?

p6 Singapore Property News This Week

p14 Resale Property Transactions

(November 28 December 4)

Welcome to the 82th edition

of the Singapore Property

Weekly.

Hope you like it!

Mr. Propwise

FROM THE

EDITOR
mailto:[email protected]://www.propwise.sg/advertise/http://www.propwise.sg/advertise/mailto:[email protected]


3/16

SINGAPORE PROPERTY WEEKLY Issue 82

Page | 2Back to Contents

By Mr. Propwise

On 14 December 2012 the Ministry of

National Development (MND) announced the

Government Land Sales (GLS) Programme

for the first half of 2013. A total of 23

residential, two commercial, four hotel, andthree mixed-use sites were announced.

These sites could potentially yield a total of

about 14,000 private residential units (6,900

on the confirmed and 7,100 on the reserve

lists respectively), including 3,100 Executive

Condominium (EC) units, and 3.4 millionsquare feet of commercial space. The amount

of supply announced is similar to that

announced in 2H12, and the four GLS

Programmes before that.

How Does the 1H13 GLS Programme Impact Property Supply?


4/16



Large upcoming supply of residential

units

The majority of the sites are located in the

Rest of Central Region and Outside Central

Region, which should lead to the development

of relatively more mass market sites. The

URA has collated a total of 93,800 private

housing units (including about 9,800 EC units)

that will be constructed over the next few

years, with about 43% or 40,000 of those

(including 3,400 EC units) still yet to be sold.

Based on the URA data collated by

PropertyMarketInsights.com, residential

completions will peak in 2015 at 23,667 units

based on the private residential supply

pipeline, or a 47% increase over the

completion expected in 2013. Despite this, the

government has kept the land supply

relatively constant, perhaps in an effort to

prevent the perception of a squeeze in the

supply of land that could lead to higher prices.

but demand is strong as well

While the large increase in supply sounds

scary, it is worth pointing out that demand has

been very strong so far this year as well.
http://propertymarketinsights.com/http://propertymarketinsights.com/http://propertymarketinsights.com/http://propertymarketinsights.com/


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Year-to-date till November 2012 there has

been an estimated total transaction volume of

37,597 units, comprising 24,970 developer

and 12,627 secondary sales (Figure 1.1.5b).

This is 118% of the annual average of 31,826

units. If demand going forward continues to

be as strong as it has in the past couple of

years then the upcoming supply could well be

absorbed without any weakness in the

market.

A weak November could be bad news for

2013

But if November sales are anything to go by,

sales could weaken into 2013. In November2012, the estimated total residential

transaction volume was 2,278 units,

comprising 1,266 developer and 1,012


6/16



secondary market sales. The total, developer

and secondary market sales fell by 44%, 52%

and 29% respectively on a month-on-month

basis, in what is a seasonally strong period

for fourth quarter property sales. The fall was

partly due to a fall in new launches by

developers, but the secondary market was

also weak.

The supply outlook is much healthier for

commercial property, with only 359 thousandsquare feet of space on the confirmed list,

which is negligible versus the 13.2 million

square feet of office and 6.7 million square

feet of retail space in the pipeline.
http://www.moneymatters.sg/


7/16


Singapore Property This Week


Residential

Freehold Whitley Residences and Village

held previews

19 freehold cluster homes at The Whitley

Residences near the upcoming Mount

Pleasant Station under the Thomson Line

were sold to Singaporeans at about $5 millioneach or $850 psf on strata area after a 12%

discount and absorption of the 3% buyer's

stamp duty at its preview. These includes 18

semi-detached houses which were sold at

$4.9 million (for a 6,125 sq ft unit) to $5.12

million (for a 6,071 sq ft unit) while the 6,620sq ft corner terrace sold for $4.85 million.

There are a total of 58 semi-Ds of 5,156 sq ft

to 7,190 sq ft, and three terrace homes (the

sold 6,620 sq ft corner terrace, another 6,448

sq ft corner terrace priced at $4.8 million and

a 4,801 sq ft intermediate terrace housepriced at $4.3 million). All units has four levels

(including a basement and attic) and offers

five bedrooms, private enclosed space lift,

void areas, a roof terrace and a car parking

area. Shared facilities include a clubhouse,

pool, gym, hot spa and playground.

40 over units of the 80 released units at the

148-unit five-storey condo project, Village at

Pasir Panjang, have also been sold at its

preview. Typical apartments with no private

enclosed space or roof terrace are sold at an

average price of $1,650 psf. The project

consists of two to four-bedroom units, and

penthouses.

SINGAPORE PROPERTY WEEKLY I 82


8/16



Meanwhile, 230 units at the 700-unit The

Topiary in Seletar have been sold at an

average of $720 psf, with all 16 penthouses in

the development ranging from 1,970 sq ft to

2,476 sq ft and priced from $1.3 million to$1.5 million sold within the first one-and-a-half

hours.

E-applications for Forestville EC at

Woodlands Avenue 5 next to the La Casa EC

will also be open from Dec 21 to 26 with an

average price of over $700 psf. 30% of the

653 units are dual -key units, and 29 units will

be penthouses in the range of 1,550 sq ft to

2,756 sq ft. To attract buyers, the developer is

offering "a holiday bonanza" package,

absorbing the first-year maintenance fees,

and offering free fibre-optic broadband

service, a basic cable TV package and a

fixed-line service for the first three years in a

tie-up with Starhub.

(Source: Business Times)

Private home sales may fall by 25% in

2013

Private home sales may fall by over 25% as aresult of the increase in supply from

completions and new launches, leading to a

fall in units transacted from 20,000 units sold

his year to 16,000-18,000 units in 2013

though prices are expected to continue

increasing by 10-15% for the mass-marketnon-landed properties and 3-5% for the luxury

properties as a result of increased land costs

and increased demand. The average unit

price of luxury condos increased by 2% from

$2,350 psf in Q3 to $2,395 psf in Q4, a 5%

increase from 2011s $2,286 psf. With thequantitative easing in the US and low interest

rates, there could be an increased foreign

demand though this will be moderated by the

ABSD.

SINGAPORE PROPERTY WEEKLY I 82


9/16



ECs will likely see much demand given the

current trend, with nearly 3,500 EC units sold

by October this year and possibly 4,000 by

year end. Demand for shoebox units also fell

to 7%, possibly due to the governmentalregulation though the smaller supply could

drive up the median prices of such units.

Prices of shoebox units hit $1,474 psf in Q4

this year, a 6% increase from Q3 and 10%

increase from 2011.


99-year Alexandra View residential site

attracts $332.7m top bid

The site at Alexandra View attracted a total of

six bids with the top bid of $332.7 million, or

$970.18 psf ppr from Singland Homes. The

developer plans to develop a 43-storey

residential tower with mainly 800-1,000 sq ft

two-bedrooms or two-plus-one units with a

breakeven cost of $1,500 psf and a selling

price of $1,700 psf. The site is located near

the Redhill MRT station and the town area.


Investment sales of property to hit $28.7bin 2012

Investment sales of property (transactions of

$10 million and above) in Q4 (up to Dec 11)

hit $6.9 billion, compared to $9.3 billion in Q3,

likely due to the fall in private sector deals to

$3.7 billion in Q4 so far from $7.2 billion in

Q3. On the other hand, deals in the public

sector rose to $3.2 billion in Q4 so far from

$2.2 billion in Q3. This is attributed to the

aggressive bidding by developers at GLS

tenders. The total investment sales of

property in Q4 are expected to hit $7.6 billion,

bringing the total for the year to $29.5 billion.

Investment sales are likely to fall to $25-$27

billion next year, a result of the economic

conditions and the present wide bid-ask gap,



10/16



though the government is likely to continue

releasing a large number of GLS sites.

Meanwhile, the en bloc sale market has seen

only 24 transactions at a total of around $2

billion, compared to 51 transactions at $3.2

billion last year. This is attributed to a lack of

supply. However, the relatively poor

performance is likely to improve next year,

with more developers turning their attention

from GLS sites to en bloc sites, and the

recent changes in rules regarding en bloc

sites.

The residential sector accounts for $13.1

billion or 45% of the $28.7 billion transacted

year-to-date, and could potentially hit $13.5

billion by year end while the commercialsector (office $4.9 billion and retail $2.3

billion) accounts for $7.5 billion compared to

$8.2 billion in 2011. The investment sales of

hospitality assets including both private and

public sectors increased from $1.6 billion in

2011 to $3.8 billion and industrial property

transactions fell from $4 billion in 2011 to $3.4

billion so far.


Slow property auction market in 2012

Only 24 of the 377 properties put up for

auction were sold in 2012, with a total sales

value of $62.4 million, a 35% fall from 2011s

$95.6 million. However, the market situation is

expected to improve a little next year, with a

total sales value of $70 million predicted,

driven by liquidity and low interest rates in H1

2013. There is still demand for property in the

auction market since properties are

considered good hedges against inflation,

especially demand for landed properties and

those located in prime districts. There may

also be more mortgagee sales in H2 2013 if



11/16



the economy worsens or unemployment rate

increases, with some being industrial

properties. The slower auction market is

attributed to the cooling measures in the

residential sector, which affected thesecondary market (with owners reluctant to

sell and buyers unwilling to purchase at high

prices) and demand for luxury properties.

Residential properties account for $29.7

million or 48% of the auction sales, retail

properties account for $8.1 million whileindustrial properties account for $10.1 million.


Rents of luxury homes to fall

Rents of luxury homes are likely to continue

falling, with a fall of 5-10% to below $5 psf per

month predicted for 2013, given smaller

budgets and increased supply. In Q4, rents of

high-end condos fell from Q3 by 7.4% to

$4.88 psf per month, compared to the $5.27

psf per month in the same period in 2011.

According to the URA, over half of the 91,869

new homes to be released to the market in

the next five years have been sold. This,

coupled with the current rise in vacancy rateto 7.9% in Q3 2012 (compared to the five-

year average of 7.5%), will result in a fall in

rental rates, particularly when owners move

to their homes, leading to the increase in

shadow spaces.

However, the mass market rental market is

expected to remain resilient in 2013, with the

increase in demand and smaller rental

budgets leading to higher per-sq-ft rents. The

island-wide median rents for condos and

apartment units excluding ECs reached $3.75

psf per month in October, a 7% increase from

a year ago. The median rates for houses

however, fell by 0.4% in October to $2.65 psf

per month.



12/16



The total value of all leasing transactions from

January to October 2011 was $208 million

and is likely to exceed the 2011 record of

$218 million.


MND announces GLS private housing

sites for H1 2013

The confirmed-list sites can generate up to

6,935 private homes (45% of which or 3,110

are ECs) while the reserve-list sites can

potentially generate 7,100 private homes.

Most of the sites in the confirmed list are in

the Outside Central Region or Rest of Central

Region where private housing is more

affordable. The confirmed lists has some

choice sites such as the ones on Coronation

Road, Kim Tian Road and Mount Sophia

which accounts for 16% of the supply in the

confirmed-list, while choice sites on the

reserve list includes the ones in Siglap Road,

Stirling Road, Alexandra View (Parcel A) and

Prince Charles Crescent (Parcel B) which

accounts for 3,055 private homes or 43 per

cent of the reserve list's supply.

The landed housing site in Coronation

Road/Victoria Park Road next to the Victoria

Park and Rebecca Park GCB Area which can

generate about 140 landed homes will be

launched in March while the 2.4-ha site on

Mount Sophia which can be developed into a

505-unit low-rise condo will be launched in

June. There will also be another low-rise

condo site at Faber Walk in the Ulu Pandan

area with a potential of 210 units that will be

launched in April. These are all on the

confirmed list. In addition, there are also two

mixed commercial-residential plots available

which are expected to be popular the

Yishun Central site next to the MRT station,

bus interchange and Northpoint Shopping

Centre on the confirmed list and the plot next



13/16



to Potong Pasir MRT Station on the reserve

list.

Meanwhile on the commercial end, there will

be 33,360 sq m GFA made available under

the confirmed list and another 281,320 sq m

GFA under the reserve list, compared to

80,280 sq m and 308,200 sq m respectively

currently. Three sites for office developments

under the reserve list - at Marina View/Union

Street in the new Downtown, Cecil Street and

Sims Avenue - are from the H2 2012 reserve

list. There is currently about 1.17 million sq m

(12.6 million sq ft) GFA of upcoming office

supply. Hotel room supply (only on the

reserve list) has fallen from 3,655 rooms to

1,740 rooms though the Havelock Road hotel

site that can generate potentially 35 hotel

rooms is expected to be highly popular.


Commercial

Freehold 79 Anson Rd expected to be sold

at over $400m

Both German fund manager SEB and CentralProvident Fund Board (CPFB) are said to be

selling their space at the 23-storey 79 Anson

Road near Tanjong Pagar MRT Station at an

expected price of $1,400 psf based on the its

GFA of 289,185 sq ft or over $405 million.

This translates to $2,000-2,050 psf based onits current NLA of around 200,000 sq ft. The

buyer could possibly redevelop the site when

the existing leases run out in 2016. The

current GFA however, is higher than the

236,566 sq ft GFA based on the 8.4 plot ratio

designated for the 28,163 sq ft site zonedcommercial with a 35-storey height restriction

under the Master Plan 2008 though it might

potentially be redeveloped up to its existing



14/16



GFA without having to pay any development

charge. The buyer could also retain it for

rental income. The building offers a 145-lot

carpark on the second to the fourth levels.


Allianz Group leases 90,000 sq ft at Asia

Square

Allianz Group is said to be leasing 90,000 sq

ft of space on levels 13, 14 and 15 of the 46-

storey Asia Square Tower 2, and may alsolease level 12, bringing the total to 120,000

sq ft. When completed, there will be 790,000

sq ft NLA of Grade A offices on levels 6-31, a

305-room Westin hotel on levels 32-46, and

40,000 sq ft of retail space on the first two

levels, of which a third has been pre-

committed. While rents in Tower 2 are

determined on a case-by-case basis, the

monthly rents for the 43-storey Tower 1 is

around $12-15 psf. 82% of Tower 1's 1.25

million sq ft NLA has been leased, with levels

36 to 39 and some other space scattered

throughout still available. There is also a

Food Garden in Tower 1.


http://propertymarketinsights.com/


15/16



Non-Landed Residential Resale Property Transactions for the Week of Nov 28 Dec 4

Postal

DistrictProject Name

Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

1 ONE SHENTON 538 1,180,000 2,192 995 THE GRANDHILL 1,066 1,338,000 1,256 FH

8 KENTISH GREEN 1,076 1,076,000 1,000 99

9 SCOTTS 28 1,636 3,600,000 2,200 FH

9 RIVERGATE 1,550 3,400,000 2,194 FH

9 TRIBECA 1,367 2,700,000 1,975 FH

9 YONG AN PARK 3,434 6,250,000 1,820 FH

9 EMILY RESIDENCE 549 990,000 1,803 FH

9 ONE OXLEY RISE 1,098 1,968,000 1,792 FH

9 2 RVG 893 1,580,000 1,769 FH

9 THE INSPIRA 936 1,650,000 1,762 FH

9 ORCHARD SCOTTS 1,873 3,255,000 1,738 99

9 CAIRNHILL CREST 2,637 4,450,000 1,687 FH

9 ASPEN HEIGHTS 1,604 2,560,000 1,596 999

9 ASPEN HEIGHTS 1,324 2,060,000 1,556 999

9 WATERFORD RESIDENCE 1,475 2,250,000 1,526 999

9 CAVENAGH HOUSE 1,701 2,460,000 1,446 FH

10 GALLOP GREEN 3,714 7,353,720 1,980 FH

10 ONE JERVOIS 1,733 2,859,450 1,650 FH

10 ONE JERVOIS 1,981 3,200,000 1,616 FH

10 VALLEY PARK 1,216 1,950,000 1,603 999

10 SOMMERVILLE PARK 1,948 2,950,000 1,514 FH

10 VALLEY PARK 818 1,230,000 1,504 999

10 DORMER PARK 1,668 2,500,000 1,498 FH

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

10 SYLVAN LODGE 797 1,180,000 1,481 FH10 THE LEGEND 1,485 2,180,000 1,468 FH

10 C HARMING GARDEN 1,808 2,600,000 1,438 999

10 CORONATION ARCADE 1,281 1,620,000 1,265 FH

10 THE HERMITAGE 2,067 2,450,000 1,185 FH

11 SOLEIL @ SINARAN 581 1,280,000 2,202 99

11 NEWTON IMPERIAL 1,938 3,800,000 1,961 FH

11 SKY@ELEVEN 2,713 5,019,050 1,850 FH

11 THE AXIS 398 715,000 1,795 FH

11 NEWTON ONE 1,216 2,120,000 1,743 FH

11 IRIDIUM 764 1,280,000 1,675 FH

11 ROCHELLE AT NEWTON 1,356 2,192,000 1,616 99

11 THOMSON 800 1,399 1,860,000 1,329 FH

11 GREENDALE COURT 1,765 1,970,000 1,116 FH

11 THE ARCADIA 3,735 3,850,000 1,031 99

12 THE ARTE 1,528 2,060,000 1,348 FH

12 PARC HAVEN 1,378 1,600,000 1,161 FH

14 LE CRESCENDO 915 1,038,800 1,135 FH

14 THE SUNNY SPRING 1,195 1,230,000 1,029 FH

14 SIMSVILLE 980 933,000 953 99

15 THE SEA VIEW 1,518 2,580,600 1,700 FH

15 CAMELOT BY-THE-WATER 3,035 4,552,500 1,500 99

15 TIERRA VUE 1,259 1,700,000 1,350 FH

15 BLU CORAL 506 682,000 1,348 FH



16/16

S G O O ssue 8


NOTE: This data only covers non-landed residential resale propertytransactions with caveats lodged with the Singapore LandAuthority. Typically, caveats are lodged at least 2-3 weeks after a

purchaser signs an OTP, hence the lagged nature of the data.

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

15 SANCTUARY GREEN 775 1,012,500 1,306 99

15 MALVERN SPRINGS 980 1,230,000 1,256 FH

15 CENTRINA 775 892,000 1,151 FH

15 STILLZ RESIDENCE 1,012 1,155,000 1,142 FH

15 COSTA RHU 1,399 1,520,000 1,086 99

15 COSTA RHU 1,399 1,500,000 1,072 99

15 CHELSEA LODGE 1,195 1,260,000 1,055 FH

15 SPRING GARDENS 1,959 1,780,000 909 FH

16 BREEZE BY THE EAST 2,077 2,450,000 1,179 FH

16 SUNBIRD VIEW 1,302 1,090,000 837 FH

17 EDELWEISS PARK CONDOMINIUM 947 910,000 961 FH

17 BALLOTA PARK CONDOMINIUM 1,711 1,380,000 806 FH

17 LOYANG VALLEY 1,012 808,000 799 99

17 BALLOTA PARK CONDOMINIUM 1,442 1,100,000 763 FH

18 MELVILLE PARK 958 805,000 840 99

18 ELIAS GREEN 1,518 1,090,000 718 99

19 KOVAN MELODY 1,216 1,398,000 1,149 99

19 RIVERVALE CREST 1,141 970,000 850 99

19 RIVERVALE CREST 1,195 972,000 814 99

19 REGENTVILLE 1,152 900,000 781 99

20 BRADDELL VIEW 1,615 1,560,000 966 99

20 BISHAN PARK CONDOMINIUM 1,270 1,210,000 953 9921 BUKIT REGENCY 1,399 1,530,000 1,093 FH

21 GOODLUCK GARDEN 1,701 1,840,000 1,082 FH

21 SOUTHAVEN II 1,044 1,088,000 1,042 999

21 SIGNATURE PARK 1,076 1 ,040,000 966 FH

22 THE CENTRIS 1,066 1,275,000 1,196 99

Postal


Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

22 THE LAKESHORE 947 1,090,000 1,151 99

22 THE CENTRIS 1,302 1,370,000 1,052 99

22 THE MAYFAIR 1,184 1,020,000 861 99

23 THE DAIRY FARM 1,593 1,900,000 1,193 FH

23 HAZEL PARK CONDOMINIUM 980 1,124,000 1,147 999

23 HAZEL PARK CONDOMINIUM 980 985,000 1,006 999

23 DAIRY FARM ESTATE 1,281 1,281,000 1,000 FH

23 HAZEL PARK CONDOMINIUM 1,012 999,999 988 999

23 CHANTILLY RISE 1,518 1,470,000 969 FH

23 HILLVIEW REGENCY 1,195 1,100,000 921 99

23 GUILIN VIEW 1,259 1,155,000 917 99

23 REGENT GROVE 1,173 900,000 767 99

23 THE PETALS 3,251 2,400,000 738 FH

23 REGENT GROVE 1,195 880,000 737 99

25 CASABLANCA 1,130 888,000 786 99

26 CASTLE GREEN 947 850,000 897 99

28 SERENITY PARK 1,324 1,380,000 1,042 FH

singapore property weekly issue 82

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