Recent blog posts - Property Launches & Investments

Primary market sales volume pegged to hit 600-900 units in March

Posted by Property Launch Invest on Thursday, 17 April 2014 in Property News

Developers gearing up for more launches.

According to Colliers International, as developers gear up for more launches, primary market sales volume is expected to remain in the region of 600-900 units in March before improving further in the following months.

Notwithstanding the improvement in launch and sales volume in February, it appears that the market is slowly approaching a stable state following the implementation of the Total Debt Servicing Ratio (TDSR) in June 2013, cooling off from the exuberance seen in 2012 and 1H 2013.

FCT to acquire Changi City Point

Posted by Property Launch Invest on Thursday, 17 April 2014 in Property News

MAINBOARD-LISTED Frasers Centrepoint Trust (FCT) has entered into a conditional sale-and-purchase agreement to acquire City Point mall for a purchase consideration of $305 million.

The announcement came yesterday from Frasers Centrepoint Asset Management (FCAM), the manager of the trust.

The acquisition was negotiated on an arm's-length basis between FCAM, on behalf of the trustee of FCT, and the vendor, Ascendas Frasers.

Ascendas Frasers is a 50-50 joint-venture between FCT's sponsor, Frasers Centrepoint Limited, and Ascendas Development.

Why analysts are all eyes on Woodlands Regional Centre

Posted by Property Launch Invest on Thursday, 17 April 2014 in Property News

Its untapped potential is marvelous.

According OrangeTee, in line with the decentralisation strategy announced in Concept Plan 1991 to guard against congestion and over-development in the Central Business District and Marina Bay areas, Woodlands Regional Centre has become the fourth regional centre after Tampines Regional Centre in 1992 and Jurong Lake District and Paya Lebar Central in 2008.

Here's more from OrangeTee:

HPL land redevelopment 'can revive Orchard belt's sleepy end'

Posted by Property Launch Invest on Thursday, 17 April 2014 in Property News

THE plots of prime land in Orchard Road owned by Hotel Properties (HPL) could be redeveloped and turned into an integrated development or serviced residences, said property analysts yesterday.

They said the land that now accommodates the Hilton Singapore and Four Seasons hotels, Forum the Shopping Mall, Ming Arcade shopping centre and HPL House could be amalgamated to revive the sleepier end of the shopping belt. Their comments came after local tycoon Ong Beng Seng launched a bid to take HPL private through a partnership with Wheelock Properties.

Far East-Sekisui JV tops bids for Woodlands office site

Posted by Property Launch Invest on Thursday, 17 April 2014 in Property News

Strata office units set for launch towards year-end or early next year.

[SINGAPORE] A joint venture between Far East Organization, its listed unit Far East Orchard and Sekisui House that topped a state tender for the first predominantly office site in Woodlands Regional Centre intends to build two 16-storey office towers featuring both large and small strata office units for sale as well as lease.

Clermont Residence world class on price

Posted by Property Launch Invest on Thursday, 17 April 2014 in Property News

GUOCOLAND'S Clermont Residence in Tanjong Pagar has been ranked in the world's top 10 plushest high-rise apartment blocks by a website that caters to the world's rich.

Billionaire.com used a block's price per square foot and the price of its most expensive unit to come up with its premier league table.

It placed Clermont Residence, which is part of the Tanjong Pagah Centre mixed development, at No. 8, with an average price of US$2,360 (S$2,950) per sq ft (psf) and a penthouse worth US$47 million.

14th floor of Samsung Hub sold for $3,030 psf

Posted by Property Launch Invest on Thursday, 17 April 2014 in Property News

THE 14th floor of Samsung Hub along Church Street has been sold at slightly over $39.72 million or $3,030 per square foot based on its 13,110 sq ft strata area.

Word on the street is that Arch Capital Management, a Hong Kong-based private equity real estate firm with links to Ayala Group of the Philippines, is selling the whole office floor - comprising four strata units - to a mainland Chinese company. The floor is leased until year-end to a law firm.

Barclays S'pore to move more staff to CBD

Posted by Property Launch Invest on Thursday, 17 April 2014 in Property News

Barclays, the UK's second-largest bank by assets, is moving more employees to an office in Singapore's central business district from the suburbs to cut costs, people familiar with the matter have said.

Barclays will terminate its lease on about 15,500 square feet of office space at a building in Tampines, an eastern suburb, and relocate the employees to Marina Bay Financial Centre (MBFC) by July, said one of the people, who asked not to be named because the information is private. About 300 people who work in back-office roles will be affected, the person said. Barclays declined to comment in an emailed response.

Govt to raise supply of shop, factory space in next 3 years

Posted by Property Launch Invest on Thursday, 17 April 2014 in Property News

THE government will make more factory and shop space available over the next three years to ensure there is enough supply for businesses as they plan for the long term.

Minister of State for Trade and Industry Teo Ser Luck said in Parliament yesterday that an average of 500,000 sq m of multiple-user factory space will come on-stream each year for the next three years.

This, he said, is nearly double the average annual demand for such space in the last three years, and is expected to moderate industrial rentals further.

Lower sales, hefty extensaion chargesfeared to knock down Singapore's luxury segment

Posted by Property Launch Invest on Thursday, 17 April 2014 in Property News

Buyers likely to delay purchases.

According to CIMB, given supply concerns and policy curbs, it expects a buyers’ market with little pricing power for the developers in 2014-16. CIMB predicts a 10-15% drop in property prices in the next two years but expects high-end developments to be affected by a greater degree with looming extension charges and higher price sensitivity within upgraders.

Here's more:

You won't believe how much posh homes had dropped

Posted by Property Launch Invest on Thursday, 17 April 2014 in Property News

Price dropped steeply by 3.8% since peak.

According to Barclays, the Urban Redevelopment Authority’s flash data for 1Q14 indicate that its index for private home prices fell 2.7 points to 211.6 in 1Q14, down 1.3% q/q and -0.8% y/y.

This is the second decline after -0.9% q/q in 4Q13, bringing the cumulative decline to 2.2% since the peak.

Here's more from Barclays:

Prices of posh homes starting to drop as developers get rid of unsold units

Posted by Property Launch Invest on Thursday, 17 April 2014 in Property News

See which developer will be badly hit.

In Barclays' report Developer fundamentals weakening of 27 September 2013, it wrote that it had expected home prices to correct up to 20% by 2015 with the luxury sector likely to be the worst hit due to the Qualifying Certificate (QC) rules. The QC rules give developers up to five years to finish building a project and two more years to sell all the units.

Here's more:

HDB resale prices edge up, strong rebound in volume

Posted by Property Launch Invest on Saturday, 12 April 2014 in Property News

RESALE prices of Housing and Development Board (HDB) flats crawled slightly higher last month as price increases in smaller units offset the declines in larger ones, going by the latest data from the Singapore Real Estate Exchange (SRX).

But transaction volumes staged a strong rebound as buyers returned to the resale market after the Chinese New Year lull.

Flash estimates by SRX showed HDB prices edged up 0.3 per cent in March from a month ago. Prices for three- and four-room units rose by 0.5 per cent and 0.8 per cent, respectively as more buyers sought units with smaller quantums, given the loan cap under the Mortgage Servicing Ratio (MSR).

Strong interest in Jurong Gateway strata-titled project, Vision Exchange

Posted by Property Launch Invest on Saturday, 12 April 2014 in Property News

Area's potential as business hub drives sales in Vision Exchange, say analysts

THE Jurong Gateway District's potential as a new business hub appears to be driving strong interest in the area's first strata-titled commercial project.

The 740-unit Vision Exchange has sold at least 70 per cent of the 250 units released at last weekend's launch, The Straits Times found when it visited the showflat at Venture Avenue on Wednesday.

Office units were sold for an average price of $2,150 per sq ft (psf), while medical and retail units went for about $4,498 psf on average, the project's developer, Sim Lian, said in a statement.

Strong take-up in office leasing market for Q1

Posted by Property Launch Invest on Saturday, 12 April 2014 in Property News

Gross average rents rise 3.9-4.5% on improved occupancy

THE office leasing market recorded another quarter of strong take-up during Q1 this year, with average gross rental rates in the central business district (CBD) rising between 3.9 to 4.5 per cent quarter-on-quarter from higher occupancy rates, according to research by DTZ.

Average monthly per square foot rents ranged between $8 in Shenton Way, Robinsons Road and Cecil Street, to around $11.50 in Marina Bay. Occupancy rates at these areas, at 97.9 per cent and 88.1 per cent respectively, were higher than the previous quarter.

Sales of New Private Homes

Posted by Property Launch Invest on Friday, 28 March 2014 in Property News

Sales of new private homes surpassed the number of units launched in February 2014, a sign that developers are pushing back new launches while focusing more on selling existing developments.

Based on URA data, developer sales increased by about 28 percent to 724 units in February. Including executive condominiums (ECs), 769 units were taken up last month compared to the 610 previously. In total, 671 homes were launched in February from 549 in January.

Rise in development charges; commercial sector sees steepest rise

Posted by Property Launch Invest on Friday, 28 March 2014 in Property News

SINGAPORE: Development charges, which have to be paid when a property site is developed into more valuable project, have been raised for selected sectors.

The steepest increase is seen in the commercial sector.

In a statement on Friday, the Ministry of National Development said the development charge (DC) rates for commercial sector will climb by an average of 15 percent.

Eunos Industrial Estate tenants to be relocated ahead of redevelopment

Posted by Property Launch Invest on Friday, 28 March 2014 in Property News

Hundreds of tenants in 26 blocks at Eunos Industrial Estate will be relocated to Ang Mo Kio as the Housing Board plans for the redevelopment of the estate.

HDB will offer tenants of the 399 affected units replacement space in a new high-rise industrial complex inAng Mo Kio Industrial Park 3.

The 4.7ha complex in Ang Mo Kio is due for completion in mid-2018. The tenants will stay at Eunos until then.

Eligible tenants will get a goodwill payment of $48,000 per relocated unit to defray relocation costs.

Ultra-wealthy prefer residential property as investment

Posted by Property Launch Invest on Thursday, 27 March 2014 in Property News

Property remains the favoured asset class among Ultra High Net Worth Individuals (UHNWIs), with almost a quarter of their investment portfolio accounted for by property, according to Knight Frank’s Wealth Report.

In its UHNWI Attitudes survey which was jointly launched with the Bank of Singapore and involved nearly 600 private bankers and wealth advisors, over 40 percent of respondents said their clients increased their allocation to property in 2013 while 47 percent expect it to rise further this year.

HDB to relocate 399 industrial units from Eunos

Posted by Property Launch Invest on Thursday, 27 March 2014 in Property News

HDB will be relocating another batch of units in the Eunos Industrial Estate under its Industrial Redevelopment Programme (IRP) to facilitate future redevelopment of the estate.

Under this 14th batch, 399 units will be relocated and affected tenants will be offered replacement units in a new high-rise Industrial Complex in Ang Mo Kio Industrial Park 3. The complex is scheduled to be completed in mid-2018.

The units involved in this relocation exercise are located in 26 blocks. The remaining units will be relocated in subsequent IRP batches.

PROPERTY LAUNCHES & INVESTMENTS

Property Launches & Investments

Area's potential as business hub drives sales in Vision Exchange, say analysts

Gross average rents rise 3.9-4.5% on improved occupancy