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.

Status quo for landed property market this year

Though figures from the last quarter indicated that landed home prices have risen 0.9 per cent, that was following a 2.7 per cent fall in Q3. Property analysts are careful not to yet call it a market rebound as 2017 may pose a difficult year for the economy.

bishopsgateThe landed housing market may continue to feel the pressure this year as cooling measures remain and the economic outlook seems uncertain. In a year-on-year comparison with Q3 of 2013, prices have fallen 14.8 per cent. Overall landed home prices fell 4.4 per cent last year and 4.1 per cent in 2015. The lowered prices could however have been a factor in bringing buyers back. Should sales volume and landed home prices continue to stabilise, the price index may inch up albeit gradually.

There were several considerable transactions in the detached landed house segment and this could have boosted numbers in Q4. One notable sale was for a property in Bishopsgate, at $26.8 million and a couple of others in Holland Park and White House Park at $25.5 million each. Though the Total Debt Servicing Ratio (TDSR) framework implemented in 2013 has limited buyers for private properties across the board, it has more effect on the higher-priced property segments as investors here may have more financial commitments.

whitehouseparkDespite a muted landed housing market last and possibly this year, landed homes remain much sough-after and investors in these segments may be bolder in their attempts to close deals this year.

New citizens new buyers of Good Class Bungalows

Buyers and sellers of Good Class Bungalows (GCB) seem to be gradually meeting on the same page as the price gap between them narrows and more transactions were recorded thus far this year – 19 to be exact, valued at a total of $438.17 million. In 2015, 33 GCBs valued at a total of $714.78 million were sold and 28 totalling $626.14 million in 2014. Analysts are predicting up to 30 GCB sales in 2016.

Leedon Road GCBEven though prices of these rare properties have not fallen much at all, investors’ interest seems to not have waned. Developer OUE have just picked up 2 sites from the British government in Nassim road at $1,652 psf for $56.58 million, a steal considering the median price of the area stands at $2,000 psf.

An increasing number of GCB buyers are new citizens, buying over these massive-sized properties from Singaporeans moving between property transactions and investment deals. These buyers see the potential in prime properties and the slightest of price adjustments will spike their interest in their search for property upgrades and prestigious addresses. Recent sales included a $27 million GCB in Gallop road and currently on the market are a $38 million Bukit Tunggal Road GCB sized at 14,000 sq ft and a $30 million Dalvey Road property on a 15,211 sq ft site.

 

Strata strategy – Landed homes with benefit

Though owning your own piece of land may seem the ultimate goal in terms of local property, but the maintenance fees, property taxes and other extras it comes with are often mentioned and considered much lesser than they should be.

Eight Riversuites condominium in Whampoa East.

Eight Riversuites condominium in Whampoa East.

And it is this market gap which cluster housing and strata-landed homes fill so well. These landed properties, though mostly leasehold, come with condominium facilities and amenities, not to mention the security of a gated community. In fact, so residents of me cluster housing developments even manage to foster long and meaningful relationships with one another.

Eight Riversuites is one of the latest additions to the sector and they have 19 three-storey terrace strata landed houses, each with their own roof terraces and bdedicated asement parking spaces. Some units even come with jacuzzis. Some other popular landed strata homes include those in Thomson Grand, Whitley Residences and Belgravia Villas

Strategically situated near Boon Keng MRT station in the Bendemeer and Whampoa districts, it is in a hip up-and-coming city-fringe area and is but just 3 MRT stops away from the town centre. There are a number of schools in its vinicity and value of properties around it have risen over the past few years. As MRT stations reach completion, values of properties in their vicinity will no doubt increase as well. Prices of units currently start at $850psf. 

 

West Coast soon abuzz with new properties?

Without question, the west coast has a vibe of its own. A sense of excitement, freedom; a buzzing undercurrent of work and play. So the government’s recent release of a 16, 378 sq m land site on West Coast Vale could potentially mean an even more vibrant district in as soon as half a decade’s time.

AYEPhoto credit: LTA

The plot of land released for sale is under the government’s reserve list, which also means the sale will only go through if the bids meet the minimum set by the government. With its prime location near the Ayer Rajah Expressway and West Coast Highway, and schools such as Nan Hua Primary School, The Japanese School and Commonwealth Secondary School, the area is ripe for a new residential condominium or strata landed housing project.

The neighbouring Parc Riveria may be a good gauge of the potential this new site holds. The land which Parc Riveria stands on was acquired only last year and another private condominium nearby is The Trilinq.

The TrilinqThe government has been more cautious of late with the  release of land for sale under the government land sales programme as the market is becoming more saturated. What may hold developers back from bidding for this site is its distance from MRT stations and other amenities. It may however mean quieter and more exclusive environments which young couples or families looking for a property near schools in its vicinity.

Bungalow of Tan Tock Seng’s descendant sold for $145 million

Is paying $145 million for a landed house over the top? Well, there is a first for everything.

The recent sale of a 25,741 sq ft freehold bungalow at 9 Cuscaden road is the first foray into Singapore’s property market for Hong Kong tycoon, Stanley Ho who has made billions through the gambling industry. The bungalow was put up for sale by Tan Tock Seng’s descendants and the site is zoned for hotel redevelopment with a plot ratio of 4.2. The bungalow was originally the family home of Tan Tock Seng’s great-grandson, Tan Hoon Siang and was put up for sale for between $160 to $170 million just last month. Named Villa Marie, it was presumably named after Mr. Tan’s second wife, Marie Windsor.

BungalowsStanley Ho’s Shun Tak Holdings paid $145 million for the prime site, the highest ever paid for a landed property and at $2,145 psf, it is all eyes on what is eventually built. Because of how it was zoned, the transaction was made sans the Additional Buyers’ Stamp Duty (ABSD), which could be a real positive, considering how much the deal cost. Though zoned for hotel redevelopment, there is also the possibility of building residential units up to 20 storeys high. Could Orchard road be seeing a new residential block or hotel in its midst? Will other landed properties possibly be seeing more activity soon?

 

Promising year ahead for landed properties?

At least in the Good Class Bungalow (GCB) segment apparently. Property analysts are predicting a 5 per cent price growth this year following promising response in the first quarter alone.

Despite economic slowdown and stock market volatility earlier in the year, this luxury landed property sector has seen a pick-up in sales volume as Singaporean investors are turning their sights on home ground once more, after a few seasons of investing in overseas propeties. Property agents have reported buyers making serious offers as compared to just a quarter ago in the latter part of 2015.

Leedon Road GCBRecent sales of GCBs included one at Swettenham Close at $1,354 psf. A total of 33 GCBs were sold in 2015, a similar number is expected for this year. Perhaps property owners have lowered their expectations and asking prices, and buyers are also enticed by the rarity and land area these bungalows provide. Many are upgraders or investors while sellers tend to be those whose children have flown the coop and are looking to downsize to more manageable properties. Rental yields for these large-sized properties have been diminishing, and these properties also tend to have higher property taxes and maintenance requirements.

Buyers may be more willing to take the bite this year as prices have already fallen 15 per cent since its peak in 2013, and further price declines will be unlikely. As these landed properties are also far and few in between, they may be quicker to pounce on a deal as it will not be easy finding similar options.

Waterfront living from East to West

Waterfront living is no longer restricted to those living at Sentosa or by the coastal lines mainly in the eastern districts. With a number of lakes being developed all across the island, waterfront living is becoming more possible than ever before.

In North-east, there is the Punggol Waterway; in the West, Jurong Lake; and in the East, there is the Bedok Reservoir area which has already seen the development of 3 massive private condominium establishments – Waterfront Gold, Waterfront Key and Waterfront Isle.

WaterfrontFaberNow, there is Waterfront@Faber near Sungei Ulu Pandan – a 210-unit private residential development boasting a wide variety of units including increasingly popular dual-key apartments and strata houses. The property consists of 11 such landed houses and 5 high-rise apartment blocks and holds a substantial amount of potential value in terms of its location near the future Singapore-Kuala Lumpur Speed Rail Terminus, as well as its current proximity to the Clementi MRT station and bus interchange. The latter makes it easy for travel to The International Business Park, JTC Summit, National University of Singapore and neighbouring towns and industrial hubs in Jurong and Bukit Batok.

Families will also be happy to know that the property is surrounded by a number of good schools including Nan Hua Primary and High School, The Japanese School Singapore, United World College, Singapore Polytechnic, Ngee Ann Polytechnic and SIM University. There is also no lack of medical facilities as the Ng Teng Fong General Hospital, Jurong Community Hospital and the National University Hospital are all just a stone’s throw away.

No longer does the East have monopoly of well-amenitized townships and waterfront living. It seems the West is doing well in cultivating well-rounded environments for their old and new residents.