$1-billion bid for Stirling road land plot breaks record

A $1 billion bid for a piece of land at Queenstown made history as the first time a residential site under the Government Land Sales (GLS) programme scored such a high offer, almost $300 million more than the previous record.

queenspeakcondoChina-based developers Logan Property and Nanshan Group put the bid of $1.003 billion in for the 21,109 square metre plot in Stirling Road. The site had been on the GLS reserve list since 2010 and consists of a 2 adjoining land plots. It was triggered for sale only last month after a bid of at least $685.25 million was put in for the site.

But the billion-dollar bid certainly takes things to a whole new level. The previous highest ever bid was $925.7 million from MCL Land and for a pure residential site, the record stood at $682.8 million for the site where Costa Del Sol condominium now stands. At 20.6 per cent higher than the winning bid for the nearby Queens Peak condominium, the latest $1billion bid may set a new record for the Queenstown area in terms of cost per square foot. With a maximum permissible gross floor area of 954,328 sq ft, the bid will translate to $1,050 psf per plot ratio.

Commonwealth TowersThe Stirling Road site is close to Buona Vista, and placed strategically between the Central Business District and Jurong East regional business hub which makes it the prime spot for rental properties. Despite the existence of many other private properties in the area, developers do not seem intimidated, possibly as most investors of units in the area would have sold them by the time this new development is ready and will in fact be looking for new investment opportunities. There could also be a rebound of foreign investment interest following Bandar Malaysia‘s recent collapse.

Resale non-landed residential property prices hold steady in April

After 5 consecutive months of climbing figures, resale condominium prices have steadied themselves in April. Resale transactions fell by 21 per cent as a number of new launches drew the attention of buyers and investors in the past couple of months.

Thomson Impressions2Though the numbers are still shy of that during the peak of 2010 and 2013, things have been looking up for the private property market this year. Year on year, private resale prices and transaction volume were 1.8 and 48 per cent higher than in April last year. In comparison with March 2017, April’s resale private property market numbers dipped slightly. Prime district property prices fell 1.2 per cent last month while prices of units in the city fringes and suburbs rose 1.2 per cent.

In the 5 months prior, private resale prices have risen 0.6, 0.3, 0.9, 1 and 0.8 per cent from last November to March this year. The improving market sentiments seem to be reflected in the overall above-market-values which rose to $5,000 from $0 in just a month. Districts which posted the highest median above-market-values at $37,000, and had more than 10 resale transactions, were District 16 and 21. Despite higher resale activity in the city fringes, District 11 which consists of Newton and Novena, posted the highest negative median above-market-value of -$40,000.

the-crestThe year is almost at its mid-point and the latest new launches have boosted numbers in the new private home sales market, but how will the resale private property sector fare in H2?

Changes in the public housing landscape?

The ratio of home owners living in private homes versus HDB flats have been rising. The proportion of HDB flats in Singapore’s total housing stock is also smaller now compared to 10 years ago despite more public housing being made available with the government’s moves in the last few years to ramp up supply of new flats.

HDB flats STB photoPhoto credit: Singapore Tourism Board

Last year, with just slightly more than 1 million HDB units, the percentage of public housing stock stood at 73 per cent. In 2006, with 880,000 units, the proportion was 78 per cent. Respectively, the number of private condominium units and landed homes was 372,0000 and 243,000 with the percentage growing from 22 to 27 per cent within a decade.

Does this signify Singapore’s rising living standards and that more are now able to afford private housing? How has the functionality and affordability of public housing changed over the years? Recent government reports indicates that the percentage of BTO flat buyers who defer on their purchase after they have been invited to collect their keys is now less than 2 per cent. This could mean that more are now taking better stock of their finances and are able to make sustained payments for their new flats despite rising prices. The resale market could also be stabilising as more are finding it easier to sell off their existing flats within a reasonable grace period.

Bidadari HDB flats 2Photo credit: Housing Board (HDB)

National Development Minister Lawrence Wong has however reminded buyers to take into account market fluctuations when computing the financing of their new home with proceeds from sales of their existing flat. In provisional cases where buyers are unable to find buyers for or let go of their existing HDB Flat, the government does offer time extensions and exercise some flexibility for example waiving the required forfeiture payment.

More Sale-of-Balance flats units in mature estates

Aside from the large number of new BTO flats in HDB’s latest launch, many units under the Sale of Balance flats scheme will also be made available, including units in mature HDB estates such as Kallang/Whampoa and Queenstown.

SkyParcDawson3Photo credit: www.dla.com.sg


3,946 flats which remained unsold from previous launches, spread over 14 mature estates and 11 non-mature estates, were rolled out in last week’s Sale of Balance Flats launch. From the 14 mature estates which also included Pasir Ris, Tampines, Serangoon and Ang Mo Kio, the 523 and 263 units in Queenstown and Kallang/Whampoa were the most eye-catching. The proximity of these 2 HDB estates to the Central Business District (CBD) and the number of balance flats available were factors making this one of the highlights of this current launch.

SkyParcDawson2Photo credit: www.dla.com.sg

Most mature estates will only see single- or at most double-digit number of units available under the sale of balance flat scheme. The high volume of leftover units from previous launches in Queenstown could be due to leftover replacement units previously put aside for the Selective En bloc Redevelopment Scheme (SERS). Most of these units are in the SkyParc @ Dawson development which will be ready by end of 2020. These new flats and their modern designs will no doubt make them the hottest units in this launch. Priced between $454,600 and $527,200, they are more affordable than some of the newer BTO units in estates such as Geylang and Bidadari.

Flats in Geylang and Bidadari available in HDB’s latest BTO Launch

HDB’s latest sales launch of Build-to-order (BTO) and Sale of Balance (SBF) flats will include 1,273 units in Geylang and 1,355 Bidadari (Toa Payoh HDB estate).

BidadariHDBflatMAy17May’s launch may not be huge considering it will span 14 mature estates and 11 non-mature estates, but the inclusion of many flats in popular estates such as Ang Mo Kio, Bedok, Clementi and Kallang/Whampoa will draw the crowds for sure. 5 applicants per unit is expected for Geylang as the area has not had a launch for the past 3 years.

The government is however attempting to shift applicants’ focus to non-mature estates up North, namely in Woodlands and Yishun. Up to 2,000 new BTO flats will be launched in these 2 HDB towns with prices considerably lower than those in mature estates. For example, a 2-room flexi HDB flat in Geylang will cost $179,000 while the same in Woodlands will cost more than $100,000 lesser at $73,000. In Bidadari, a 2-room flexi unit will cost $169,000. A 3-Gen flat in Bidadari will be priced at $622,000 while the same in Woodlands costs slightly over half of that at $320,000.

DakotaHDBflatMAy17Bigger 4- and 5-room flats will also be made available in the current launch. But be prepared to pay $489,000 for a 4-bedroom unit in Geylang while a 5-bedroom flat in Yishun will set you back only $331,000. Plans to establish Woodlands as an area for regional businesses is on the way, though it will take some time before it becomes a full-fledged hub. Infrastructure that is being developed includes new MRT stations, a terminus connecting Woodlands to Johor Bahru and the North-South corridor. More HDB launches can be expected in the Woodlands estate in future.

In the meantime, the mature estates are expected to dominate the latest launch. Applications close on Wednesday, May 24. HDB’s next launch will be in August and it will include 3,850 new BTO flats in Bukit Batok and Sengkang.

*Photo credit: HDB

Success of collective sales continues

2017 continues to be a good year for the collective sales market with Shunfu Ville given the go-ahead from the Court of Appeal last week and the sale of One Tree Hill Gardens site for $65 million this year.

OneTreeHillGardensThe Lum Chang Group has purchased the latter freehold landed residential development site near Orchard Road at $1,644 psf. Its proximity to Orchard Road makes it a prime site that is rare also because of its freehold status. It is of sizeable land ratio and developers have expressed considerable interest. The site was initially put up for sale at $72.8 million. Despite the $7.2 million shortfall, individual owners of the 6 maisonettes and 7 apartments will still receive $4.3 to $9.1 million depending on the size of their units.

Under a 2014 masterplan, the freehold site is zoned for 2-storey semi-detached residential use within a 39,063 sq ft land area. What it could potentially yield are 8 semi-detached houses, 5 bungalows or 10 semi-detached homes and 3 bungalows. With such landed properties near Orchard Road a scarcity, the freehold homes will no doubt receive much interest from investors and high net-worth buyers.

venturaheightsWhile the market is still tender from the previous years of slow growth, developers are beginning to replenish land stock and collective sales may be their means to the ends as the government has recently cut back on the release of land plots. Though price-sensitivity continues to rule developers’ bids, the collective sale market will be active this year especially with more home owners enquiring about en bloc sales and the sale of Eunosville and Rio Casa last month.

Prime sites may yield high-demand homes

Should the sites currently earmarked for future residential use be put up for sale, the public can expect some juicy baits from developers as these sites are in prime locations near the city centre.

Tanglin ResidencesThe 2 sites which are particularly beguiling are the former Ministry of Home Affairs Phoenix Park site in Tanglin road and the former Overseas Family School plot in Paterson road. Both sites are under governmental ownership and while the location of these sites will excite developers and buyers alike, the government is unlikely to put them up for sale anytime soon. They have in fact been holding back on the release of land sites possibly contributing to the increased number of successful en bloc sales in recent months.

Paterson SuitesThese sites with their exclusive addresses are currently put up for interim use though should they eventually be placed for sale, they are likely to yield 450 to 700 homes in the Paterson road site and 850 to 1000 units averaging 800 to 1,000 sq ft on the Phoenix Park site. The latter is currently tenanted by LHN Facilities Management who will have the option of renewing till the end of 2020. The proximity of this site to various embassies in the Tanglin area will however mean restrictions may be placed on the height not to mention possible heritage conservation regulations.

 

New 153,000 hectare township near KL planned for next 30 years

There are big plans for a big project spanning 153,000 hectares in Negeri Sembilan, just beside the administrative capital of Putrajaya. At twice the size of Singapore, the township will launch its first phase which at 11,000 hectares is 22 times the size of Sentosa, in Q3 this year. 

MVV ipropertyMYThe Malaysia Vision Valley (MVV) is a major township development which encompasses the Seremban and Port Dickson districts near the Kuala Lumpur International Airport (KLIA) and just an hour’s drive away from downtown Kuala Lumpur. The masterplan is managed by 2 government-linked entities – Sime Darby Properties and Kumpulan Wang Persaraan – and  is reflective of the Iskandar Malaysia development in Johor. The MVV will consist of 5 main clusters, namely: a Central Business District (CBD), residential estates, a nature city, an education and technology hub and a tourism and wellness precinct.

SenadaResidencesSimeDarbyPhoto credit: Sime Darby Properties

The residential offerings in this new township is expected to be at lower costs in comparison with the higher property prices in KL city. There seems to be future plans for an eventual merging of KL and Seremban within the next 2 decades and the current impetus is for the development to accrue RM290 million (S$93.9 billion) in investments and to become the hotbed of potentially 1.38 million job opportunities. The federal government has also put aside RM560 million to develop transportation infrastructure that will serve the MVV district.