(C) URA launched more land to meet increasing demand

In fact, more individual plots of vacant land were officially launched for tender in October than any other months this year. Below outlines the information:

• (C.1.) Simon Road plot near Kovan Melody attracted fierce bidding

The URA land sale of Simon Road was awarded to Duke Development, a new property development company set up by former UOB Kay Hian brokers, amidst a fierce tender which included property bigwigs such as Far East Organization, Hong Leong Holdings, Frasers Centrepoint and Allgreen Properties.

The 190,000 sq ft site near Kovan Melody went to the top bid of $290 million or $437 psf per plot ratio. The breakeven point will be about $800 psf. To be profitable, the developer must sell above $900 psf. (3 Oct)

• (C.2.) Jurong East land parcel for tender

URA has launched the tender for a 2.2-hectare site flanked by Lakeside MRT Station and LakeHolmz condo. The site can be developed into around 680 apartments averaging 1,200 sq ft.

The site is estimated to be worth about $300 psf ppr. The breakeven cost for a new condo should be about $650 psf and the average selling price should be around $700-750 psf.

A vacant plot of land near to Lakeshore has been earmarked for an International School. That may prompt more developers to bid for the land. (18 Oct)

• (C.3.) State resumed sale of in-fill sites to meet rising demands

For the second time in history, the Singapore Land Authority (SLA) released in-fill sites at popular residential areas for private individuals to build their own dream home.

Two GCB sites in District 11 Eng Neo Avenue Good Class Bungalow (GCB) area had been auctioned off, along with Moonbeam Walk off Holland area, Bedok Close, Jalan Insaf at Bishan vicinity, and Somm Road off Petain Road. All the sites, including the pair in the GCB areas, will be granted a 99-year leasehold tenure.

In-fill sites are essentially disused state land within popular areas which have been put to economic use. They could be parks, gardens, sub-stations, or even septic tanks previously. At least four of the above sites are at a cul-de-sac (end of a no-through road).

The benefits of re-using this land within the popular and matured estates include saving resources since these sites are nearby or already connected to infrastructure and they are cheaper. (26 Oct)

• (C.4.) URA auction of Sembawang land fully taken up

12 sub-divided landed housing plots near Sembawang Beach were sold at a competitive bidding held by URA for a total $37.09 million or an average of about $285 psf. The plots can be developed into a total of 57 landed homes. (31 Oct)

Response to the auction reflected the current bullish market mood as small-time developers, contractors/engineering firms and individual investors thronged the auction venue.

Here are some facts on the winning bids.

• The only bungalow plot of 4,477 sq ft was won by an individual investor for $940,000.
• The biggest plot of land measuring 43,687 sq ft and is designated for 23 terrace houses was won by an engineering firm at $14.3 million or $327.33 psf.
• Two plots of land - one designated for 14 terrace houses and another for three terrace houses were won by Fragrance Group for $9.2 million and $1.76 million respectively. The bid prices work out to be $294 psf and $270 psf respectively.
• Another single semi-detached plot was sold to the boss of Fragrance Group for $289 psf.

(D) Price trend in October 2007

Despite a general slowdown in new home market, a few benchmark home prices were created at some areas, giving testimony that the underlying strength of the market is still strong. However, having said that, it must be pointed out that the benchmark was made before the announcement of the withdrawal of Deferred Payment Scheme.

• (D.1.) Prices of private properties rose in third quarter

According to the Urban Redevelopment Authority (URA), prices of all properties have increased from end-2006 to the end of the third quarter 2007. Below are the details:

Likewise, rentals of all properties have also increased. The details are as follows:

About 65,400 private residential units are in the pipeline, comprising the supply from projects that are already under construction and those that have been granted planning approval and will be constructed within 6 months to 2 years. (26 Oct)

• (D.2.) New benchmark prices before DPS was scrapped

All the following sales had registered a new benchmark price for the respective areas including:

• $2,772 psf for Turquoise at Sentosa Cove
• $2,888 psf for Three Buckley in Newton area
• $1,577 psf for The Rochester in the one-north vicinity
• $1,449 psf for Gardenvista on Dunearn Road in the Upper Bukit Timah area
• $1,327 psf for The Beacon Edge at Tembeling Road
• $1,044 psf for Vetro at Mar Thoma Road
• $1,080 psf for The Lakeshore in Boon Lay Way (16 Oct)
  
  
• (D.3.) New record sale price for Orchard penthouse

The new sale record for penthouse is $28 million or $5,600 psf for a 53rd storey penthouse at the Orchard Residences. The buyer of the 5,048 sq ft unit is believed to be a foreigner.

The 175-unit condo right in the heart of Orchard Road has been 73% sold, with all four penthouses already snapped up. The project sits on a 99-year leasehold land. (12 Oct)

• (D.4.) Average capital value of luxury apartment surpassed 1997 peak

In the first three quarters of 2007, the average capital value of luxury apartments in Singapore has risen 43.5% since the last quarter of 2006.

The average value of luxury apartments achieved in the third quarter this year has surpassed the 1997's peak. At $2,827 psf, it is 59% higher than the $1,778 psf achieved in 1997 before the market suddenly ground to a halt in the aftermath of the Asian currency crisis. (13 Oct)

• (D.5.) Private home prices rise unevenly

While property prices rose averagely across the board in the third quarter of 2007, the quantum of increases are uneven and the price gap between different projects at different locations and with different attributes can be quite wide. Quite a number of uncompleted private residential projects in the suburban areas are still very affordable. (See table below for information)

The number of vacant units has gone up from 11,506 units in the second quarter this year to 12,550 units. In percentage term, vacancy rate has gone up from 4.9% to 5.4%.

In the meantime, another 9,224 new units have been added into the supply line to be ready by 2011. In total, the potential new supply of condos and apartment has increased from 56,182 to 65,406 units. (26 Oct)

• (D.6.) Rents for private home continue upward trend

 According to URA’s statistics, rents for private homes have risen in the July-September period. Rents for private home are expected to go up by another 40%. The percentage increase across the island is as follows:

• Rents rose 12.2% in the core central region, which covers Orchard, Holland, River Valley, Bukit Timah, Marina Bay and Sentosa.
• Rents rose 11.9% in the rest of the central region, which covers Marine Parade, Queenstown, Geylang and Bishan.
• Rents rose 11.8% in the Outside Central Region. (27 Oct)

See “Why rents for private homes will continue to go up?” – Annex C

• (D.7.) Office rents continue to go up

Office rentals went up 14.8% in the July-September period. In the April-June period, office rents went up by 11%. From the end of 2006, office rents have gone up by 40.7%.

URA figures also showed that occupied office space rose by 645,840 sq ft in the July-September period. This was almost 54% higher than the 419,796 sq ft recorded in the April-June period.

Median rents for prime offices reached $11.89 per sq ft (psf) per month in the July-September period compared with the increase from $10.33 psf per month in the April-June period.

Median rent for general offices was up from $4.60 psf a month in the April-June period.

Vacancy rate for prime office space fell to 2.8% from 5% in previous quarter. (27 Oct)

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