(E) Foreign interest in top-tier properties in Singapore still strong
- (E.1.) Hilltops sold for $3,900 psf
The District 9 Cairnhill Circle estate is now one of the most expensive prime estates in Singapore, with prices of the posh Hilltops condo by SC Global going between $7million and $12 million.
In all, the freehold 20-storey condo has 240 apartments. So far, 30 units have been launched since October. Of the 30 units, 28 were sold for around $3,900 psf.
Three-bedroom units command nearly $7 million, while four-bedroom and larger units could sell for up to $12 million.
Consistent with the trend in Orchard area, buyers of Hilltops units are primarily foreigners.
- (E.2.) Helios sold for $3,900 psf
Nearby, the 140-unit Helios Residences sold 69 units at an average of over $3,000 psf each.
Though the market has quietened down a little, interest for luxurious properties is still strong as more funds are being channelled into Singapore to take advantage of a stronger Sing dollar against the US dollar.
- (E.3.) 90% buyers of Sui Generis at Balmoral foreigners
In District 9 Balmoral area, 16 of 23 units released at the 40-unit Sui Generis were sold through road shows in Indonesia and Hong Kong in the past two months.
Prices fetched ranged from $2,300 psf to $2,580 psf. About 90% of the buyers were foreigners.
- (E.4.) CDL-Wachovia buy two blocks at District 9 Cliveden
Grange 100 Pte Ltd, a joint venture between City Developments Ltd (CDL) and US-based Wachovia Development Corporation is buying two blocks, or a total of 44 units, at CDL's freehold Cliveden at Grange condo for $432.4 million or $3,750 per sq ft (psf).
CDL’s move has been widely seen as a precursor to its plan of a residential real estate investment trust (Reit) to which it could spin off apartments held for investment.
Many analysts reckon that the CDL-Wachovia joint venture would divest the two blocks to a residential Reit.
In this joint venture, Wachovia holds the majority share of 60% while CDL takes the rest. The
- (E.5.) 60% of Amber Residences condo sold
More than 70 of the 114 units at Amber Residences in Amber Road were sold during a private preview on 18 November 07 at an average price of $1,650 per square foot (psf) with some high floor unit being sold for more than $1,800 psf.
The Amber residence has a single tower block of 21 storeys. It is made up of mainly two; three and four-bedroom apartments, there are also six penthouses.
So far, the sales were done by private invitation only and most of the buyers were locals.
Given the lull season of the year, the 60% sold performance is considered impressive.
(F) News on Government Land Sale (GLS) Programme
The market mood took a sudden change after the Deferred Payment Scheme was scrapped. Developers were more cautious and there was no jostling, though buying activities still continued tentatively.
However, by late November, bidding activities seemed to pick up a bit of momentum. By then, more quality land parcels under the reserved list were upgraded to the confirmed list after some small-timer developers put in bid at slightly higher than government’s reserved price to trigger a public tender exercise to be called.
By 28 November, property analysts were quoted as ‘being surprised’ by the winning bid of $134 million for an Ang Mo Kio residential site. Here are the roll-down.
- (F.1.) First land tender after the withdrawal of DPS drew only 2 bids
The first land sale tender exercise after the withdrawal of the deferred payment scheme told much about how local developers felt about the government’s move.
The tender for a 99-year leasehold residential site at Enggor Street behind the Icon development drew just two bids on 1 November 2007. Far East Organisation offered to pay $233.8 million or $852 psf per plot ratio while GuocoLand offered $150.98 million or $550 psf ppr for the land.
- (F.2.) Developers are buying mass market lands quietly - taking advantage of the lull
First an unnamed developer put in a bid of $220,700,000 for the reserved site opposite Tanglin Regency to trigger the public tender for the site in late November.
Then within a week, a Woodlands Ave 2 condo site attracted 8 bids and was eventually awarded to a new-comer developer.
Around the same time, an unknown developer entered a bid of $187 million for a 3.2ha, 99-year leasehold residential site at Simei Street 4, triggering a public tender which will be launched in early December.
The price offered by the developer works out to $235 psf ppr. The site has a 2.3 plot ratio - giving it a maximum gross floor area of 797,400 sq ft. However, the good location of the plot would definitely attract much higher tender prices later.
The difference between confirmed sites and reserved sites is this: the Government will only release a site for sale if an interested party submits an application for the site to be put up for tender with an offer that is higher than the Government’s reserved price. But, confirmed sites are released for tender at a pre-determined date, without the need for the sale to be triggered by an application.
- (F.3.) Condo site near Braddell MRT station available
A 150,211 sq ft 99-year leasehold site at the corner of Toa Payoh Lorong 2/3 has been made available under the reserve list.
The suburban site has a plot ratio of 4.2 and can be developed into a 530-unit condominium project. The site is within walking distance from Braddell MRT Station.
Analysts are divided on how much a brand new condo project in Toa Payoh would fetch in terms of psf price given the current tentative market mood and the site’s mass market tag.
Given the historic record bid by Far East Organisation in September 2007 for a similar site near Ang Mo Kio MRT station, some analysts reckoned that Far East might submit a similar bid of around $601 psf per plot ratio.
- (F.4.) Ang Mo Kio site nets $134m bid
The public tender for the third public housing site slated for Design Build and Sell Scheme (DBSS) has been won by Greatearth Development who put in the top bid of $134.2 million. The second DBSS site at Boon Keng Road was successfully awarded in June 2007.
The site has a site area of 16,789.1 sq m and an allowable storey height of 36. The new blocks can accommodate 550 flats.
The winning bid works out to be $212.4 per sq ft (psf) per plot ratio. The break-even price should be about $500 psf and the developer may launch the flats from $580 psf or at starting price of $560,000.
The high bid price caught some property analysts by surprise but reflects developers' confidence in the demand for public housing and suburban condominiums.
- (F.5.) Bishan residential site up for sale
The Housing Development Board will release a residential site at Bishan Street 14 for sale by tender. The 99-year leasehold site has a land area of 129,200 sq ft and a plot ratio of 4.9.
The site is considered ‘good’ as it is very near to Junction 8. It is facing the Bishan ITE college and Bishan Stadium.
Private apartments in the Bishan area are now selling for about $800 psf in the resale market. Construction costs for mass market condos now stand at about $300 psf.
- (F.6.) More than 7,000 new flats expected over next 7 months
In the wake of exorbitant asking prices of resale HDB flats across the island, the Housing Development Board (HDB) has taken a decisive move to signal to Singaporeans in general that there is no need for panic as there will be sufficient supply of new flats.
More than 7,000 new HDB flats will be released for sale over the next half-a-year. It will launch seven residential land plots that could yield another 3,200 flats, ranging from two-room flats for the low-income group and privately-designed flats (DBSS) and executive condominiums (EC).
The land slated for DBSS projects will be in choice locations such as Bishan, Simei, Toa Payoh and Bedok. The EC sites to be made available next year will be in Yishun, Jurong, and Sengkang.
Two build-to-order projects were launched yesterday:
- Segar Meadows in Bukit Panjang Ring Road, comprising 412 three- and four-room flats.
- Compassvale Beacon in Punggol Road, comprising 750 two-, three-, and four-room flats.
Recent response to HDB’s flat-selection exercises has been overwhelming, primarily from newly-weds. HDB received almost 8,000 applications for 400 flats in Telok Blangah and more than 1,600 applications for 516 homes in Punggol.
The 4,800 applications to buy HDB's build-to-order flats have more than doubled the number launched last year.
Prices of resale HDB flats grew by 11% in the first nine months of this year, while prices of private homes shot up 22.9%.
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