Collective sale of Dalvey Road apartment

The latest condominium to climb on the en bloc bandwagon is the Villa D’Este on Dalvey Road in prime district 10. The freehold site currently holds 12 apartment units ranging from 3,456 sq ft to 3,949 sq ft and 10 owners have already agreed to putting the site up for sale. And the asking price? $96 million.

Villa DesteThe pros for this site is that there are no development charges and with the $96 million price tag it comes with, that works out to be about $1,730 psf for the 55,480 sq ft land site. Land acquisition moves by developers have been aggressive this year and quite a few collective sales efforts have come to fruition and more mature residential establishments are feeling confident about putting themselves out there.

Other properties which have started their en bloc sales process recently are The Albracca, Serangoon Ville and Tampines Court with the latter 2 being former HUDCs. The Villa D’Este is a private property with relatively few units on site, which could mean each owner getting $7.5 to $8 million from the sale. And its location would attract developers since it is rare to find a site so close to a Good Class Bungalow (GCB) area. This could translate to promising sales of projects eventually launched here as the area is popular with expatriates and also provides the exclusivity of ambience and address. Other private land plots which were sold this year included One Tree Hill Gardens, Goh & Goh Building, Rio Casa and Eunosville.

The Dalvey Road site holds the potential to yield 1 to 3 GCBs or 24 new apartment units sized approximately at 2,000 sq ft. There was a previous collective sale attempt in 2015 for $115 million.

Private non-landed resale property prices continue to rise in June

After a couple of quarters of positive performances, resale private home sales have continued on an upward path last month.

6DerbyshireJune’s resale condominium prices rose by 0.9%, the highest in the last 3 years. In comparison with the same month last year, it has risen by 2.2% and the resale index reached 171, comparable to that in May 2017. Though it may not be the sharp rebound industry players are hoping for, it is nevertheless a positive sign pointing towards possible market recovery.

1,065 private resale condominium units were sold last month, up 51.1% from the 705 units sold in June 2016, but down 12.5% from the 1,217 units sold in May this year. Part of the decline could be due to the June school holidays, as many families and buyers could be out of the country or occupied with other activities. Property experts are expecting the momentum which picked up at the beginning of the year to continue well into the second half of 2017.

ReflectionsKeppelBayThe core central region saw a 1.3% rise in resale values, followed by a 1.1% in the suburbs. Prices of resale units in the city fringes remained unchanged but properties in Newton and Novena received the most attention, with buyers paying up to an average of $40,000 above market value for units here. Resale condominiums in district 4 did not fare as well, with buyers paying an average of $120,000 below the median price.

The weakening rental market however continues to weigh heavily on the minds of buyers and investors as competition for tenants in the outside-central-region remains high due to the increased volume of completed properties in these districts.

Luxury property market gearing up for bigger and better H2

In less than 10 days’ time, a new luxury property in Robertson Quay will be launched, and hopefully to continued positive response from buyers.

MartinMOdernThe demand for upmarket luxury properties have been encouraging this year, after a few quarters of falling prices and lacklustre sales. GuocoLand’s Martin Modern will perhaps hit the market at just the right time as buyers have been gradually filtering back into the market. The 450-unit property is one of the larger-scale high-end residential to launch in the Robertson Quay area for the last 8 years and units are expected to be released in phases.

Projected to launch on July 22, the 99-year leasehold Martin Modern condominium is situated between Martin Place and River Valley Close. Prices of the units are expected to hover around $2,300 psf with the smallest apartments starting at $1.8 million, higher than the average transacted price of $1,969 psf for units at the neighbouring Martin Place Residences.

MartinPlaceResidencesThe development will hold two 3o-storey towers with apartments ranging from 2-bedders to four-bedders. The 150 two-bedroom units will be sized at 764 sq ft, while there are also other options such as two-bedders plus study, three-bedders, premium three-bedders and four-bedders. The largest units being the four-bedders, will range from 1,701 sq ft to 1,798 sq ft.

The targeted completion date will be in 2022, and by then the Great World MRT station on the Thomson East-Coast line, which is just a 5-minute walk away, will be ready and in action.  The developers are expecting a proportionate mix of owner-occupiers and investors picking up units at the launch.

Release of new land sites in H2 may not satisfy developer demand

After holding back for the past few quarters, 16 new land sites will be released under the Government Land Sales (GLS) programme in the second half of this year. That is in addition to other private land sites which might go on sale as well during the same period.

CUscadenResidencesDespite this ramped up supply of land plots, property analysts expect continued aggressive bidding from developers as they seem to be on the hunt for resources to replenish their land banks and especially as the demand for new homes has grown steadily in the last few months. As the nation’s population continues to grow, the authorities also recognise the need to keep up with the demand for new private housing in the years ahead.

The 16 sites from the GLS programme can potentially yield up to 8,125 private homes. And yet, analysts still consider this allocation inadequate in meeting developer demand. The sites most likely to draw the most number of bids are those in Jiak Kim StreetFourth Avenue and Cuscaden Road due to their locations. New record high bids are expected for these sites.

With  the possibilities of more joint ventures between developers and funds, the potential for higher bids for limited land plots may very well drive land prices up. Could that mean eventual increases in property prices, even if not now then sometime in the future? How would that then affect the market then?

En bloc sales take centre stage this year

Yet another former HUDC estate has been put up for collective sale. Serangoon Ville situated in Serangoon Ave 1 has been made available for en bloc sale and the selling price is expected to be between $400 million and $430 million. The costs will be high for this land site as an additional $200 million to $220 million is required to intensify the land and to refresh the land lease by 99 years. The estate was privatised only in 2014 and has 69 years of lease left.

SerangoonVillePhoto credit: Google Maps Singapore

Property players and watchers are expecting developers to bid efficiently for this land site that averages out to be $720 psf per plot ratio, particularly since recent sales of ex-HUDCs such as Eunosville and Rio Casa were closed successfully and above asking prices. Currently, Serangoon Ville houses 7 blocks of 244 apartment units, including some maisonettes, with sizes ranging between 1,625 sq ft and 1, 733 sq ft. One redeveloped, the 296,913 sq ft plot could potentially yield 750 to 900 units.

2 other former HUDCs – Tampines Court and Florence Regency – are already in the process of putting their estates up for sale. The latter is planning to commence signing of their collective sale agreement in July this year. This year’s healthy new home sales has possibly boosted developers’ confidence in the market’s stabilisation and future recovery.

But with the number of private land sites being sold and private estates sold en bloc, one cannot but help to wonder how Singapore’s real estate sector will look like in 3 to 4 years’ time. Add the Bidadari township into the mix, the market might be seeing a huge entry of public and private housing within the next 5 years. Rents have been sliding due to the increased number of completed and available properties in the recent couple of years, how will the market react then?

2 months of declining new private home sales nothing to fret about

The roller coaster ride of the real estate market has hit a gentle slope with regards to the new private home sector as sales volume fell for the 2nd month in a row since April, mainly due to the lack of new launches in recent months.

MartinModernWith 1, 024 homes sold directly by developers in May, the number of new private homes sold registered a 34 per cent drop from the 1,558 units sold in April. This follows a 12.5 per cent fall from March. The year-on-year figure also showed fewer homes were sold last month than in May 2016. To be fair, only 339 new units were launched in May compared, about 5 times less than the 1,616 units launched in April and no new executive condominium (EC) units were launched last month.

The 2 months of declining sales are nothing to fret too much about as the number of new private homes sold in the first 5 months of the year has surpassed that in the same period last year. 5,723 units were sold from January to May this year. Property analysts expect the buying momentum which began in the earlier part of the year to carry on through the rest of H2 as buyers are beginning to realise that the market has probably reached or is nearing the bottom after 3 years of declining prices.

HundredPalmsPhoto credit: hundredpalmsresidences.com

June however could be a challenging month for the market since it is the school holidays. But H2 looks to be promising with the expected launch of a number of new projects including the executive condominium development Hundred Palms Residences, Martin Modern and Le Quest.

Freehold residential land in Orchard sold for $72 million

Land in Singapore seems to be selling like hotcakes in recent months. As the flow of plots made available under the government land sales (GLS) programme languishes, developers have been eyeing and snapping up plots sold privately. En bloc deals have been monopolising the real estate scene and the latest private land sale was of 1 Draycott Park to Selangor Dredging to the tune of $72 million.

DraycottPark

Photo credit: Google Maps.

What currently stands at the 17,422 sq ft site is a 7-storey apartment block with 8 apartments ranging from 860 to 6,200 sq ft. After a development charge of $15.3 million, the sale translates to $1,787 psf. As the site is zoned for residential development, it could potentially yield 36 new storeys of new apartment units.

Situated in the exclusive yet primely located Claymore Hill and Ardmore Park enclave, near Orchard road and the American Club, the new properties to be built on site are likely to go for between $2,700 and $2, 800 psf just to break even. Thus it will not be unusual to expect prices starting from $3,300 psf, about 10 per cent above recent transacted prices in the area, from the future launch of the new project.

TheClaymoreWhile foreigners account for about 50 per cent of the luxury property transactions in Singapore, the stamp duty rate which now stands at 15 per cent has somewhat kept demand at bay. However, from developers’ recent responses to en bloc and private land sales, the prices they are willing to fork out may signify a quicker than expected recovery to the high-end property segment.

2 more HUDCs try their hand at en bloc sales

On the back of successful collective sales this year, 2 more private residential developments are trying their hand at the process. Tampines Court and Florence Regency are both previous HUDCs, similar to the 2 other properties which sold recently – Rio Casa and Eunosville.

TampinesCourtThe lack of land sites made available under the government land sales (GLS) programme may be the reason behind the success of these recent en bloc sales. Developers’ hunger for land has been reflected in the the high prices paid for recent en bloc deals, and the latter could also be precisely what is bolstering the courage of residents of Tampines Court and Florence Regency.

There are a total 18 HUDC projects built since the 1970s and all have been privatised, with 9 sold thus far, including Shunfu Ville and Raintree Gardens last year. Shunfu Ville could essentially be what got the en bloc ball rolling and more successes were recorded this year. Rio Casa sold for $575 million and Eunosville for $765 million.

RioCasaHUDC HougangFlorence Regency is situated in H0ugang and has a land area of 389,000 sq ft. While it is still in the early stages of the en bloc process, Tampines Court on the other hand already has secured consent from 82 per cent of its residents. The asking price is currently set at $960 million for the 702,000 sq ft plot. At the moment, the property holds 432 maisonettes and 125 apartments. This is however not their first attempt at the collective sale process. The first attempt at $408 million was in 2008 and the second attempt in 2011. Property analysts expect home owners to seek higher prices following recent successes, but also warn against pricing too high as it may discourage developers from bidding.