Property cooling measures introduced last year have contributed to a slowdown in sales momentum.

New private home sales in Singapore is forecasted to decline by about 20 percent year-on-year to 7,500 to 8,500 units for the whole of 2019, while prices of such properties could drop by up to 3.0 percent, according to a recent report from DBS Group Research.

For 2018, the transaction volume is expected to hit 10,000 to 11,000 units, with the 11-month tally already reaching around 9,300 units.

More: Private Home Prices Rose 7.9% In 2018

The research house noted that since the new cooling measures were introduced in July 2018, primary sales momentum has moderated to 500 to 800 units per month, which it believes to be the “new normal” going into 2019.

Worsening the situation are the new rules on the average unit size for non-landed housing projects outside Singapore’s central region and the nearly 40,000 units in the pipeline slated for launch despite a slowing market.

Moreover, DBS thinks that displaced en bloc buyers are unlikely to significantly increase private home sales for the whole of 2019.

“Market expectations of a boost in sales volumes from displaced en bloc households up to middle of 2018 might not materialise. Assuming that these homeowners are paid nine months after the close of en bloc tenders, we estimate that only c.11 percent of the total 8,500 en bloc households will receive their monies in H1 2019.

“Therefore, we believe that most of the buying from these displaced households will already be done before that (period) and will not be a significant boost to sales volumes in 2019.”

Furthermore, although the demand for replacement units from successful en bloc sellers is expected to be robust in the near term, such demand is not sustainable for the long term, added DBS.

Get more details on the property market outlook for 2019 here

 

Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

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The asking price works out to $2,595 psf ppr before factoring in balconies. (Photo: CBRE)

HighPoint, a freehold residential development at the highest point of the Mount Elizabeth-Orchard district, has been launched for en bloc sale with a guide price of $550 million, revealed marketing agent CBRE.

The price works out to $2,595 psf per plot ratio (psf ppr) or $2,509 psf ppr after taking into account the seven percent bonus gross floor area (GFA) for balconies.

More: Over 30 En Bloc Sites Fail To Secure Buyers

Located at 30 Mount Elizabeth Road, the development comprises 57 apartments and two penthouses. It sits on a cul-de-sac plot of land measuring about 47,606 sq ft.

The site is zoned for residential use under the 2014 Master Plan, with a height limit of up to 36 storeys. Its existing GFA of about 211,976 sq ft is equivalent to a plot ratio of 4.45. Assuming an average unit size of 100 sq m, the site could yield up to 196 units.

Just a short walk to the Orchard Road shopping belt, the freehold site is also near other ultra-luxurious residential developments such as The Ritz Carlton Residences and The Scotts Tower, as well as hotels like The Grand Hyatt Hotel, Goodwood Park Hotel and Grand Park Orchard Hotel.

“A site with attributes like HighPoint rarely becomes available. The potential 36-storey height will offer unblocked panoramic views featuring the lush greenery of Goodwood Hill and the CBD skyline,” said Galven Tan, executive director of capital markets at CBRE.

“Its exclusivity presents immense potential to create a one-of-a-kind Orchard Road landmark which will attract ultra-premium developers.”

In fact, the site has received “positive feedback from a number of foreign developers”, he said.

“At $2,595 psf ppr (before factoring in balconies), the site is very attractively priced. Overall supply in the ultra-luxurious segment of the market remains very limited, and we believe the interest and pricing will continue to hold firm,” noted Tan.

The tender for HighPoint closes on 26 February.

More: Understanding The En Bloc Process (August 2018)

 

Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

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The iconic development has been put up for collective sale at $800 million. (Photo: ET&Co)

The landmark Golden Mile Complex may be developed into an integrated development with a gross floor area (GFA) of 85,977.5 sq m, provided its main building is conserved, according to the Urban Redevelopment Authority (URA).

This comes after the property’s marketing agent Edmund Tie & Company filed an outline application to retain the existing 16-storey building and to add a new block next to the building.

“The planning advice from URA indicates that under the existing commercial zone, the property may be developed as an integrated development comprising uses such as retail, office, residential, serviced apartments and hotels.”

More: Over 30 En Bloc Sites Fail To Secure Buyers

With a land area of about 1.3ha, the iconic development is located within the Beach Road/Ophir-Rochor Corridor, near the Nicoll Highway MRT station on the Circle Line and just outside the ERP zone.

“Golden Mile Complex is a national icon that has shaped the visual character of our built landscape. We are proud to present this rare opportunity for adaptive reuse,” said Swee Shou Fern, senior director of investment advisory at Edmund Tie & Company.

“Its distinctive architecture and worldwide iconic status will offer tremendous potential to transform the property into an exciting work-live-play destination in this growth area.”

Golden Mile Complex is up for collective sale at $800 million.

Edmund Tie & Company noted that the differential premium and lease upgrading premium to intensify the land use and to top up the lease to a fresh 99 years respectively would depend on the proposed land use mix by the developer.

The tender exercise for Golden Mile Complex closes on 30 January.

More: Understanding The En Bloc Process (August 2018)

 

Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

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Location map of the future funeral parlour complex at Ang Mo Kio. Source: NEA

The National Environment Agency (NEA) revealed on Tuesday (8 Jan) that it plans to progressively launch four new funeral parlour (FP) sites for development in the next 10 years.

The FP sites will be located along Mandai Road near the existing Mandai Crematorium and Columbarium, at Ang Mo Kio Street 63 close to the SBS Transit bus depot, an industrial area in Bukit Batok Street 23, and Woodlands Industrial Park E8.

More: Outlook 2019: Private Housing Supply In Singapore To Surge In 2019

These areas were identified via an inter-agency planning process, and are situated in different parts of Singapore to provide a better distribution of such facilities for bereaved families and their guests.

These aim to meet the rising demand for such facilities due the forecasted increase in mortality rate. Based on data from Immigration and Checkpoints Authority, the number of deaths increased 4.4 percent year-on-year from 20,017 to 20,905 in 2017. But this is forecasted to rise to about 40,000 by 2040.

“After-death facilities are an important public infrastructure that accord dignity to the deceased, as well as comfort to bereaved families, in accordance with religious and cultural practices and preferences,” said NEA.

“While funeral wakes are mostly held at HDB void decks and multi-purpose pavilions today, there is also increasing demand for wakes held in purpose-built funeral parlours.”

Moreover, the agency said the facilities will be carefully designed and managed to reduce their impact on nearby areas. These could include installing visual barriers to keep funeral activities discreet, and limiting rituals and processions within the site whenever possible. Another is to ensure there are adequate parking facilities at the complexes and their vicinity, in addition to properly managing the traffic situation in the said areas.

For this purpose, the agency will gather the feedback of neighbouring stakeholders, and include their comments and proposals in the development plans for the respective sites.

“As a small and densely populated city-state, there will always be competing needs for space to meet Singapore’s various development needs. Some of these developments may require Singaporeans to make some adjustments and accommodation.”

“Through advance notice, careful planning and by taking the necessary mitigation measures, agencies will make the best effort to minimise any inconveniences and dis-amenities arising from these developments as much as possible,” added NEA.

To know more about the property hotspots for 2019, check out PropertyGuru AreaInsider

 

Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

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The asking price works out to a land rate of $1,100 psf. (Photo: Savills)

A pair of semi-detached homes within the Braddell Heights residential enclave has been put up for sale via expression of interest (EOI), revealed marketing agent Savills Singapore.

Located at 22 & 24 Jalan Lateh off Sommerville Road, the properties carry a guide price of $12.28 million, or $1,100 psf on the combined land area of 11,136 sq ft.

More: How To Buy Landed Property In Singapore

Savills revealed that the semi-detached homes, which come with a built up area of about 5,000 sq ft each, may also be sold separately on an “as is” basis.

Zoned for two-storey mixed landed residential use under the 2014 Master Plan, the freehold site could be redeveloped into a pair of semi-detached or detached houses or a row of three terraces with a gross plot ratio of 2.072.

It is well-served by public transport as it is near Serangoon Bus Interchange and the Serangoon Interchange MRT (North East and Circle Lines). The site is also within proximity to Nex, the upcoming Woodleigh Mall as well as various schools including St Gabriel’s Primary School, CHIJ Our Lady of Good Counsel, Cedar Primary School, Australian International School, Paya Lebar Methodist Girls’ School (Primary), Lycee Francais De Singapour and Stamford American International School.

“Freehold landed plots with redevelopment potential in well-established and convenient residential neighbourhoods will remain attractive due to its increasing scarcity,” said Savills Singapore investment sales senior director Suzie Mok.

“The landed housing segment which is also unmatched in terms of exclusivity, privacy and size will remain a sought-after asset class with the professionals, mid and upper-mid income Singaporean owners,” she added.

The EOI exercise for the semi-detached homes closes on 18 February.

Meanwhile, the Straits Times reported that Leonie Gardens was relaunched for collective sale last month at the same reserve price of $800 million. This comes after its first en bloc attempt closed in June with no bids received.

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Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

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Experts feel that developers are no longer land hungry and are more concerned about selling existing projects.

Real estate experts believe that en bloc residential sites in Singapore costing at least $1 billion are unlikely to find a willing buyer amidst the new market situation, reported Bloomberg.

“Billion-dollar en bloc deals will be very hard to get through,” said ZACD Group executive director Nicholas Mak. “Developers are no longer land hungry and are more concerned about selling existing projects.”

More: Over 30 En Bloc Sites Fail To Secure Buyers

He said this after Horizon Towers, a 99-year leasehold residential project near the Orchard Road shopping belt, was relaunched for collective sale last week at the same reserve price of $1.1 billion following two failed attempts.

Built in 1984, the 211-unit condominium at Leonie Hill was first put up for sale 10 years ago for $500 million, but the deal was scrapped after a court ruled the en bloc process was improperly handled.

Subsequently, it made another collective sales attempt on 5 July. But given the ill timing of the tender launch as the government announced new property cooling measures that took effect the next day, the project failed to attract a buyer even though the tender’s closing date was extended from 7 August to 12 September.

On 6 July, the authorities raised the Additional Buyer’s Stamp Duty (ABSD) and tightened loan-to-value (LTV) limits for those buying private homes. Subsequently, market sentiment was dampened further by the new higher average unit size of 85 sq m or 100 sq m for non-landed residential projects outside Singapore’s central region.

Taking effect on 17 January 2019, the new average size rule will not only limit the number of shoebox apartments, but also reduce the maximum number of condos developers are allowed build in a single project by 18 percent.

“As the government moves in with more restrictive measures to curb both demand and supply, we expect developers to focus on clearing inventories rather than adding more,” said DBS Group analyst Derek Tan.

More: Understanding The En Bloc Process (August 2018)

 

Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

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People’s Park Centre consists of 120 apartments, 256 offices and 324 shops. (Photo: Smuconlaw, Wikimedia Commons)

People’s Park Centre, a mixed-use project along Upper Cross Street in Outram, has increased its reserve price from $1.3 billion to $1.35 billion for its first collective sale attempt, reported the Straits Times.

The new price translates to a 45 percent premium over valuation compared to 41 percent previously. This comes after the majority of the unit owners who took part in the extraordinary general meeting (EGM) on Wednesday approved the higher price and the method of apportionment.

More: Over 30 En Bloc Sites Fail To Secure Buyers

“We have one year from 9 January 2019 to get the 80 percent mandate. But our target is to get it within four months. If we are able to do so, the tender will be launched by the middle of the year,” said the collective sale committee’s spokesperson Lee Chin Chee.

“The method of apportionment is structured as such: 80 percent is based on the valuation of the units, 10 percent on the area of the units, and 10 percent on share value.”

With the new price, Lee revealed that apartment owners can expect to pocket between $1.885 million to $2.683 million. Shop owners can get $267,000 to $16.4 million, $432,000 to $4.431 million for office owners, while the carpark owner can receive $56.7 million.

People’s Park Centre consists of a carpark, 120 apartments, 256 offices and 324 shops. Built in 1970, the 99-year leasehold project has a remaining lease of over 50 years. It has a gross floor area (GFA) of about 820,000 sq ft and stands on a 96,000 sq ft site that is intended for commercial use under the current masterplan.

However, some of the unit owners rejected the en bloc sale due to some disagreements over the price. “Only 62 shop units had their sales proceeds adjusted higher by a total of $9 million. The other 639 units remained unchanged. That is the main (cause of) disgruntlement among those objecting. Some also think the reserve price is too low,” Lee noted.

Although mixed-use developments in Singapore remain sought-after, some commercial properties that were launched for en bloc sale last year failed to attract buyers. Among them are Verdun House and Jalan Besar Plaza.

Since the new property curbs were imposed on 6 July, Colliers International revealed that 35 en bloc tenders (including relaunches) have lapsed without a deal. Collectively worth close to $8.8 billion, these assets comprise two commercial properties, two mixed-use projects and 31 housing developments.

More: Understanding The En Bloc Process (August 2018)

 

Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

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