The Central Business District (CBD) in the Downtown Core Planning Area is normally associated with business activities and less so with living. It is often “alive” in the day and “dead” by night. Many if not all retail and food & beverage (F&B) establishments are closed on weekends, a sharp contrast to the rest of the island where weekends are usually the busiest.

International Plaza in Tanjong Pagar was among the earliest developments in the CBD that has a residential component. It houses 210 residential units above the office and retail components. As the land parcels in the CBD were predominantly zoned for commercial use, there was hardly any new supply of residential homes for more than twenty years since the completion of International Plaza. However, all these changed with the Concept Plan 2001. The Government proposed that more homes be built in the city to revitalise and rejuvenate the ageing city core. Around 90,000 homes will be built, mostly in the Downtown Marina Bay area, thus increasing the population living in the city from 3% to 7%. Through this plan, it is hoped that there will be more buzz in the city at night.

Following that, the Government released a land parcel for sale in Tanjong Pagar in September 2001. The site was won by Far East Organization and has been developed into a 649-unit residential development with commercial on the first storey called “ICON”. ICON was the best selling project in 2003. Based on caveats, ICON was sold at an average price of $700 psf in 2003. This was followed up quickly with a “white” site in Marina Bay in March 2002. CDL was the highest bidder for the site. The developer chose to develop the entire site into a 1,111 unit residential development called “The Sail at Marina Bay”.

​When The Sail was launched in 2004, it saw overwhelming demand despite an average selling price of close to $1,000 psf. Buyers were drawn to waterfront living within the city. When news of an integrated resort (IR) will be built at Marina Bay in 2005, interest in The Sail heightened and the pace of subsales quickened. Based on caveats, there were around 600 subsales for The Sail earning each buyer $500,000 gross profits on average. The largest gross profits for The Sail was more than $6 million. 

The immense success of these two projects spurred interest in residential living in the city. A number of projects such as Lumiere and The Clift quickly followed suit. Some older office developments were demolished to make way for residential developments. Notable examples include Robina House and UIC Building. Many of these projects in the CBD are either pure residential developments or residential developments with commercial at the first storey.

However in the past five years, the trend seems to be geared towards mixed use developments such as V on Shenton, Marina One Residences, and Wallich Residence. These integrated developments offer a mix of residential, office, retail and even hospitality uses. They offer convenience to the residential occupants, office tenants and hotel guests. The varied needs of these users throughout the day ensure continued footfall within the retail components and create the much needed buzz that will last through the night. The supply of residential units in the CBD have grown by leaps and bounds since the 1970s. As of 2Q 2018, there are an estimated 6,610 residential homes in the CBD. 

​While the rest of the island have seen shrinking homes over the past twenty years, sizes of residential homes in the CBD have bucked the trend and grown bigger.

Prices in CBD on upward trajectory for more than ten years. Despite the fluctuations in islandwide property prices, resale prices of residential developments in the CBD was on a downtrend from 1996 to early 2000s. This is probably due to ageing stock, lack of new supply and concerted efforts by the Government to revitalise and rejuvenate the city. When more concrete plans to revitalise the CBD materialised after the announcement of the Concept Plan 2001, prices of residential developments in the CBD started to stir. Coupled with the news in 2005 that an IR will be built in Marina Bay, prices started to escalate.

Prices of new launches and resale homes have been on a growth trajectory for more than ten years. From its low of $700 psf in 2003, prices of new launches have jumped 290% to a record high of more than $2,700 psf in 2018 to date. Resale prices growth is even more impressive. It soared more than 450% from $350 psf in 2003 to almost $2,000 psf in 2018 to date. The explosive growth in prices in the CBD outpaced the 82% change in URA property price index over the same period.

The growth in resale prices and comparable rental showed that buyers are increasingly more willing to invest and stay in the CBD. An analysis of the profile of buyers of residential properties in the CBD revealed little change in the composition from the 1990s till now. Singaporeans still made up the core of buyers’ profile in the CBD. In 2018 to date, buyers with a private property address made up more than 70% of the transactions, little changed from the 1990s. 

Property prices in the CBD have been outperforming the rest of the island for more than ten years. Also rental yields in the CBD are comparable to islandwide yields which means that rents have kept pace with the increase in prices, pointing to increasing acceptance of city living. This is something that savvy investors have identified and have returned to the CBD scouting for good deals. Transaction volume have been increasing since 2016.

​As of 2Q 2018, the supply of completed residential units in the CBD is low at around 6,610. Currently there is no new supply of residential units in the pipeline. With limited supply and increased interest, this points to support for an increase in prices in the CBD. Based on URA’s developer sales, the number of unsold residential units as of end-August 2018 is around 700. Buyers can either look at the newly completed mixed use residential developments such as V on Shenton, Marina One Residences or Wallich Residences. If one is willing to go slightly further to the fringe of the CBD across the Marina Bay area, there is the mixed use 190-unit South Beach Residences. Rental yields in this district is similar to the CBD. Besides the great views from South Beach Residences, one can also see the Singapore Grand Prix and the National Day fireworks. These make for a choice investment for investors as well. 

​Singapore population grew 0.5% to 5.64 million as of June 2018, much faster than the 0.1% growth in the previous 12 months.

Singapore's total population rose to 5.64 million in the 12-month period ending in June this year, with an increase of about 30,000 that is driven mainly by births among Singaporeans and the addition of new citizens. This 0.5 per cent growth is an improvement on the previous period's 0.1 per cent, which is the slowest in more than a decade. Of the 5.64 million, the number of Singapore citizens went up by 1 per cent to 3.47 million, according to the annual Population in Brief report released. The rest comprises permanent residents (PRs) and non-residents, who include people who are here to work, their dependants and international students. The number of PRs remains relatively stable at 0.52 million, while non-residents make up 1.64 million. The number of marriages involving citizens, however, rose 2.3 per cent to 24,417, an annual increase that is above the past decade's average of 22,500 citizen marriages. The median age of the citizen population also inched up from 41.3 to 41.7 years. 

Investing in property has proven to be a good way to preserve, if not enhance wealth and to build up a retirement nest egg. The URA's benchmark overall private home price index in the second quarter of this year stood at 149 points, or 16.7 times the index reading of 8.9 points back in Q1 1975. Land scarcity, Singapore's phenomenal transformation from backwater to a global city that has created investor confidence, and the state's pro-home ownership policies to give a sense of belonging to the nation have all fuelled growth in the city's property prices. 

It is in the collective consciousness of Singaporeans that owning property is a big part of being - and getting - rich. For many families in Singapore, investing in property has proven to be a good way to preserve, if not enhance, their wealth and to build up a retirement nest egg. The Urban Redevelopment Authority's benchmark overall private home price index in the second quarter of this year stood at 149 points, or 16.7 times the index reading of 8.9 points back in Q1 1975. The staggering rise in value has made this investment asset class compelling to Singaporeans. And then, of course, there is also the so-called Asian trait of wanting to acquire property to leave for the next generation.


Space was luxury then, small is trend now

The times they are a changing - even for high-end home buyers. And luxe developer SC Global is rolling with it. The Simon Cheong vehicle, known for building "Mansions in the Sky" at The Marq, is now going small with its new collection, aptly named Petit Collectibles.

The approximately 55-unit Petit Jervois in River Valley, the first project under this new brand, will be mostly one and two-bedders spanning 800 sq ft to 1,000 sq ft, and will launch by the end of the year. The Business Times understands it is expected to be launched at around S$2,800 to S$3,000 psf range. The freehold Petit Jervois will also be its first Singapore project in three years. SC Global scooped up the former Jervois Gardens condo in September 2017 in a S$72 million collective sale. 

However some felt ​Singapore property measures may have tempered buying of small units; units below 500 sq ft, accounted for 63 units or 11 per cent of new home sales in August, below the monthly average of 100 units registered from January 2017. In addition, recently launched projects which results showed low take-up for units under 500 sq ft with The Tre Ver in Potong Pasir, having as little as 6 per cent of the total number of caveats lodged. 

Qingjian Realty sells 300 units at JadeScape at an average price of $1,700 psf

Qingjian Realty (South Pacific) Group said it has granted options for the purchase of 300 units at the JadeScape condo within 24 hours of its sale opening. The average transacted price net of discounts is S$1,700 psf, it added. Interest was balanced across all unit types. The price for a three-bedroom apartment of 1,012 sq ft averages S$1.65-1.7 million. Under the first phase of sales, Qingjian released 480 of the development's 1,206 residential units. Qingjian said details on the next phase of sales will be announced later.


Core inflation unchanged at 1.9% in August

Singapore's monthly core inflation remained unchanged at 1.9 per cent last month although the market expected it to rise. Still, the figure is a four-year high. Last month, higher retail and food inflation offset the slower rise in services inflation, said the Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry (MTI). The past two months marked the fastest rate of increase since August 2014 when core inflation, which excludes accommodation and private road transport costs, rose 2 per cent. Headline inflation picked up in line with expectations, inching up to 0.7 per cent from 0.6 per cent. MAS and MTI expect core inflation to average in the upper half of the 1 per cent to 2 per cent forecast range for the full year. 

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Singapore office rents grow for sixth straight quarter in Q3 2018 

Singapore office rents have increased for the sixth straight quarter in the third quarter of 2018, coming closer to beating the last high seen at the start of 2015, amid near-term tightening in CBD (central business district) space and strong demand from occupiers.

Gross effective rents of Grade A office space in the CBD edged up 2.3 per cent quarter-on-quarter in Q3 2018 to average S$9.93 psf per month. That is an 18 per cent increase over the six quarters, putting rents just 6 per cent below the Q1 2015 peak of S$10.56 psf per month. Rent growth in the quarter was broad-based across all sub-markets. But the pace of CBD Grade A rent growth has also been decelerating for three consecutive quarters, from a recent high of 4.2 per cent quarter-on-quarter in Q4 2017, to 2.3 per cent quarter-on-quarter in Q3 2018. Next year could also see a peak in the squeeze for space as the withdrawal of Chevron House for refurbishment will shrink the leasing stock at a time when the market is void of new completions, although the completion of the redevelopment of Park Mall and Funan located outside the CBD in 2019 could relieve some upward pressure on Grade A CBD rents. More supply will come from 2020 onwards.

ASB Tower and Afro-Asia I-Mark are due to be completed in 2020, and this will be followed by the scheduled completion of CapitaSpring and the redevelopment of Hub Synergy Point in 2021. In 2022, IOI Properties' development in Marina Bay and GuocoLand's development on Beach Road should be completed. Over the next four years (2019-2022), the CBD will see an average annual new supply of 0.8 million sq ft, slightly under the 10-year historical average net take-up of 0.9 million sq ft.

Two enbloc sites (Horizon Towers and Faber Gardens) with asking prices of more than S$1 billion closed without a sale.

The tender for Horizon Towers - the first major en bloc exercise to close after July's property cooling measures - ended on Wednesday (12 Sept 2018) without a single bid. While strong interest was not expected given the tough measures introduced on July 6, the absence of any bids from developers added to the disquiet in the en bloc market, especially big estates eyeing billion-dollar tabs.

​No bid came in when the tender period ended on Sept 12, which was extended from the original Aug 7 closing date. Owners of the Leonie Hill Road site, which has a S$1.1 billion reserve price, now have 10 weeks to seal a deal by private treaty. The 99-year leasehold project, which sits on a 1.9ha plot, launched its tender on July 5. That very night, the Government announced a fresh round of preemptive cooling measures for the housing market that took effect the following day. The unsuccessful sale of the 211-unit development - despite its prime location - puts other billiondollar en bloc candidates on notice. Among them are Laguna Park in the east, which is launching its tender on Sept 18 at a reserve price of S$1.48 billion, and the 623-unit Pandan Valley in the Holland area, whose owners have just agreed on a record asking price of S$2.6 billion. 

More locals employed in H1, but long-term jobless rate up slightly: MOM

​More Singaporeans found jobs in the first half of this year than in the first six months of 2017, with local employment growth 1.5 times higher. However, the latest Manpower Ministry (MOM) statistics also showed that the long-term unemployment rate edged up. MOM said in its latest report that local employment, which rose by 6,500, was boosted mainly by expansion in the services sector - community, social and personal services; financial and insurance services; information and communications; and transportation and storage.

The long-term unemployment rate, which measures the proportion of the resident labour force that has been unemployed for at least 25 weeks, grew from 0.7 per cent in March to 0.8 per cent in June. This remains within the range observed in the last two years. At the same time, the resident unemployment rate rose from 2.8 per cent in March to 2.9 per cent in June, after a general downward trend since June 2017. Meanwhile, the number of retrenchments declined to 5,350 in the first half of the year, lower than the 7,640 lay-offs in the first half of last year.

​Job vacancies rose to a three-year high of 56,700 in June, up from 53,900 in March. Overall labour productivity rose by 3.9 per cent, supported by the manufacturing, financial and insurance services, accommodation and food services, and wholesale and retail trade sectors. 

Private resale prices post first dip since July's property curbs

Resale prices of private non-landed homes in Singapore took their first dip last month, breaking a 12-month climb to record highs, with the latest property cooling measures having taken effect in July. Flash estimates released showed that resale prices of condominiums and private apartments declined by 0.2 per cent in August from the previous month. The property curbs also had an effect on the volume of transactions, which went tumbling the month after the latest property curbs hit.

​The number of private non-landed homes resold in August fell 35.3 per cent to an estimated 694 units, from 1,072 units in July. This was the fourth consecutive monthly fall in resale volumes, with volume now at the lowest since January 2017. Year on year, the number of resales last month was down 48.2 per cent from the 1,339 units moved in August 2017.  

S'pore retail sales down 2.6% in July on slowdown in car segment

Retail sales in Singapore fell in July, weighed down by a slowdown in motor vehicle sales, according to the latest figures from the Department of Statistics. Overall takings were down by 2.6 per cent from last year, against the revised 2.2 per cent growth seen in June, on fewer vehicles being sold. The drop is the first since March, and ends three months of retail sales growth.

​Motor vehicle sales tumbled by 15.2 per cent year-on-year. But, leaving auto sales out of the picture, turnover inched up by 0.2 per cent in July, down a tad from the 0.3 per cent growth in the month before. Month-on-month and seasonally adjusted, July retail sales slid 2.9 per cent from June, but rose by 1.1 per cent when motor vehicles were excluded.

The 1,206-unit Jadescape opened its showflat to the public last weekend and saw more than 9,000 potential property buyers thronging its showflat during its first weekend launch over the two days from Sept 8 to 9. The 22,000 sq ft sales gallery located in Bishan features Jadescape’s smart home and smart estate management features as well as its “Gold Standard” elderly-friendly units that is ideal for multi-generational residential living.. Average prices according to the developer is from $1,700 per sq ft.

Jadescape is located on the former Shunfu Ville en bloc site along Shunfu Road offering a total of 1,206 units with sizes from 527 sq ft to 4,230 sq ft. Prices start from $838,000 for the one-bedroom units, $988,000 for the two-bedders, $1.38 million for the three- bedders and $1.86 million for the four-bedders. Prices for other unit types are yet to determined.

According to visitors at the Jadescape sales gallery, they were enticed by the development’s high-tech features. These include the usage of facial recognition technology in elevator lobbies, an energy-efficient AC, a water heater system that recycles waste heat for warm showers and an integrated dishwasher with ultrasonic food washer. As Singapore’s first fully-smart project, it is also the first residential development here to adopt a Smart Estate Management System.

​The KL-SG High Speed Rail is postponed till May 2020. Regardless of the postponement, Jurong Lake District proposition as a second central business district has not dimmed, given the introduction of infrastructure such as new office spaces and shopping malls to entice people - Twin Vew condo would likely benefit from this decision due to its proximity to the future High Speed Rail. 

Singapore and Malaysia have agreed to suspend construction of the Kuala Lumpur-Singapore High Speed Rail (HSR) project until May 31, 2020, with service on the advanced train line expected to begin by the start of 2031, instead of the original end-2026 commencement date. Singapore's Coordinating Minister for Infrastructure and Minister for Transport Khaw Boon Wan and Malaysia's Minister of Economic Affairs Mohamed Azmin Ali exchanged legal documents in Putrajaya to vary the HSR bilateral agreement based on the new understanding. Under the new agreement, Malaysia will reimburse Singapore S$15 million by end-January 2019 for suspending the HSR project.

​If Malaysia does not proceed with the HSR project by May 31, 2020, it will also bear the agreed costs incurred by Singapore in fulfilling the HSR bilateral agreement. If a decision is not reached within two years, the project will be terminated, and Singapore's financial interests will be safeguarded. With the new signing, HSR services between Singapore and Kuala Lumpur are expected to commence by Jan 1, 2031, instead of the original start date of Dec 31, 2026.

​The development charge (DC) rate for redeveloping land has been hiked for non-landed private homes for the fifth straight time, although watchers said that future increases could taper off as property-cooling measures put the lid on the collective-sale frenzy. Rates for this land-use group have been raised by an average of 9.8 per cent for the next six months, in a move by the Ministry of National Development (MND) on Friday - down from the 22.8 per cent jump in March.

Developers pay the DC, which is based on an assessment of land values, for the right to enhance the use of some sites or to build bigger projects. The MND revises rates on March 1 and Sept 1 each year, in consultation with the taxman's chief valuer, for land across 118 sectors island-wide. The biggest rise in rates, to the tune of 33.3 per cent was in sector 43, spanning Tanglin Road, Cuscaden Road, Orchard Boulevard and Grange Road. The development charge rate for these areas is S$18,200 per sq m (psm) of gross floor area; in sector 67, which includes Orange Grove Road, the rate is S$16,800 psm. This indicates that projects, e.g. 120 Grange, One Draycott and 8 Hullet will see an appreciation in their property prices in the near future.

The neighbourhood hosted record-smashing deals this year, with a government land sale (GLS) in Cuscaden Road in April and the collective sale of Park House in June. Other areas faced with above-average residential rate increases include parts of Bukit Merah and Telok Blangah, where the rate went up by 27.9 per cent to S$7,700 psm. Huttons Asia research head Lee Sze Teck said that the latest rate revision is likely to be the last increase of more than 5 per cent for non-landed residential sites. He has forecast future changes of zero to 2 per cent. 

Demand for new Punggol BTO flats far exceeds that for Yishun New Housing Board flats were launched in two northern towns, but those in Punggol garnered more attention than the ones in Yishun. As of 5pm on Monday, there were 5,608 applications for 1,221 three-room and larger flats - 4.6 times the number of flats available - in the newly launched waterfront district of Punggol Point, the most north-eastern part of the town where it meets the Johor Strait. In contrast, there were applications for just 60 per cent of the total number of four-room flats in Yishun, and 90 per cent of the five-room flats. Only three-room flats were oversubscribed 1.5 times, compared to 2.8 times for the same flat type in Punggol. Altogether, there were 6,620 applicants for 2,475 three-room and larger Build-To-Order (BTO) flats.

Hundreds of jobs will be generated from the opening of social media giant Facebook's $1.4 billion data centre in Singapore - its first in Asia and its 15th in the world. Jobs will include technical operations, electricians, air conditioning, and heating specialists, culinary, cleaning staff, logistics staff and security. The centre - to be at Tanjong Kling, formerly known as Data Center Park - aims to start operations in 2022. The 170,000 sq m, 11-storey building will feature a facade made out of a perforated lightweight material that will allow air flow and provide glimpses of the equipment inside. The centre is said to be the first to incorporate the new StatePoint Liquid Cooling system, which minimises water and power consumption. It aims to reduce by 20 per cent the amount of peak water used in climates like Singapore's. Facebook said the facility is expected to be powered by 100 per cent renewable power. US Internet giant Google announced last month that it is building a third data centre in Singapore to meet rapid user growth in the region.

This week, URA released news that developers sold 1,724 private homes in July, 2.6 times the 654 units in the previous month, and up 55 per cent from the 1,112 units in July 2017. While developers sold 1,000 units on 5 July, the fact that 700 units were transacted in the following weeks speaks volume of the strong fundamental demand in the market. Analysts believed that real estate investment sales in Singapore is expected to match last year's record of S$40 billion, thanks to bumper sales already clocked in for the first half this year even as Singapore economic growth eases to 3.9% in 2nd quarter.

New Zealand's Parliament passed a law to ban many non-resident foreigners from buying existing homes but Singaporeans are not affected. 

Sengkang hospitals will provide north-east residents with quality healthcare closer to home with the opening of the Sengkang General Hospital (SKH) and Sengkang Community Hospital (SKCH). People living in the north-east will be able to receive quality and affordable healthcare closer to home through partnerships with the National Heart Centre, Singapore National Eye Centre (SNEC) and the National Cancer Centre, among others, the SKH campus will also offer residents easy access to specialist services. These specialist centres are part of the SingHealth group to which the two hospitals belong.

Sengkang Central site goes for top bid of $777.8m A CapitaLand and City Developments Ltd (CDL) tie-up has clinched a commercial and residential site in Sengkang Central. Their winning bid of $777.78 million works out to $923.59 psf ppr for the 99-year leasehold site next to Buangkok MRT Station. In a joint statement, CapitaLand and CDL said their joint venture will transform the 3.7ha site - the largest commercial and residential site awarded since 2015 - into an integrated community hub with 700 residential apartments, meeting the needs of residents in Buangkok with amenities such as a hawker centre, community club, childcare centre, retail shops, as well as public rail and bus transport facilities sited in a one-stop location. The integrated development is targeted for completion in the first half of 2022. The winning bid was the highest of the four shortlisted tenderers for the dual-envelope (concept and price) tender. 

Residential - Borrowers feel rate hike pinch as banks step up mortgage repricing As interest rates hit a 10-year high, banks are increasingly firing off missives to home loan borrowers informing them that their loans have been repriced. For some, it will be the second repricing letter this year as interest rates continue their relentless climb. ​The key 3-month Sibor or Singapore interbank offered rate - a common benchmark used to price home loans - rose to 1.64 per cent over a week ago, back to levels last seen in September 2008. At 1.64 per cent, it has gained some 50 basis points from late last year. For many borrowers the applicable interest rate hike is between 20 and 40 basis points since the beginning of 2018, which can translate into several hundred dollars more in monthly instalments.

Rush to beat cooling measures sends developers' sales to 16-month high The knee-jerk reaction by some buyers who raced to snap up private residential properties on the night of July 5 to beat the cooling measures that kicked in the next day sent developers' sales for July to its highest level in 16 months. The 1,724 private homes developers sold in July was 2.6 times the 654 units in the previous month, and up 55 per cent from the 1,112 units in July 2017. However, no one is expecting a repeat performance this month, given the double whammy from the cooling measures - higher additional buyer's stamp duties and lower loan-to-value limits - as well as the ongoing Hungry Ghost festival, when some buyers avoid buying property.

Among the projects launched so far this month, The Tre Ver in Potong Pasir has done relatively well; it has sold 148 units at an average price of around S$1,550 psf, which is deemed "reasonable" for the area. As expected, the top three selling projects in July were Riverfront Residences in Hougang, Park Colonial next to Woodleigh MRT station and Stirling Residences near Queenstown MRT station. Their respective developers began sales on the evening of July 5. Together, the three projects accounted for 1,396 units, or just over 80 per cent of developers' sales of private homes last month, according to data released by the Urban Redevelopment Authority, based on its survey of licensed housing developers. At Riverfront Residences, 628 units were sold last month at a median price of S$1,307 psf. At Park Colonial, 429 units were moved at S$1,756 psf median price, while at Stirling Residences, 339 units were transacted at S$1,746 psf median price.

Developers cut prices after latest property curbs In a bid to attract more buyers, some property developers are lowering the prices of their residential projects by about 5 to 10 per cent after the latest round of cooling measures took effect on July 6. Daintree Residence, a 99-year leasehold condominium which opened for sale on July 28, was selling at an average price of S$1,710 psf, which is 5 per cent lower than the earlier announced price of S$1,800 psf.

At Potong Pasir, The Tre Ver — another new development launched on Aug 4 by UOL and United Industrial Corporation — sold at an average transacted price of S$1,550 psf. Park Colonial, which is located in the same district and put up for sale just before the cooling measures kicked in, was selling at an average of S$1,750 psf — indicating that The Tre Ver's launch prices are about 10 per cent less than its neighbouring project. Affinity @ Serangoon's developer Oxley Holdings was offering a 5 per cent discount for its one-bedroom units, and a 7 per cent discount for its two-bedroom ones. The discounts were limited to just the next 20 units sold from July 12 at the project in Yio Chu Kang. Guocoland was similarly offering a 5 per cent discount on July 12 for selected units at Martin Modern condominium in River Valley, which was launched slightly more than a year ago.

However, not all developers would see the need to bring down their prices yet, as pointed out by Mr Lee Sze Teck, head of research at property firm Huttons Asia. Some of them have managed to sell units without discounts due to the project's location, architectural design and layout. Mr Lee believes that prices will not fall further in the coming months. Mr Lee said that there is little room for developers to move prices since projects overheads are locked in, such as land and construction costs. Last month, the Urban Redevelopment Authority reported that prices of private homes went up by 3.4 per cent quarter-on-quarter from April to June. 

This effectively presents an ideal opportunity for buyers to enter the market right now to enjoy the discounts that would not have been available for them before the ABSD increase. 

​Hong Kong may be hit by perfect storm

US-China trade spat, strong currency, rising interest rates could hurt more than expected A perfect storm of rising interest rates, a strong currency and trade war blues could be circling Hong Kong, and preparations for the worst are in order so the city can ride out the choppy waters. To set the context, Hong Kong's economy has had a strong showing - its economy outperformed forecasts to grow 3.8 per cent year-on-year in 2017. The growth was just 1.9 per cent in 2016. In the first quarter of this year, the economy continued on its upbeat momentum, clocking 4.7 per cent growth year-on-year and the government was bullish in its May forecast, estimating the growth rate to be 3 to 4 per cent this year despite concerns over a trade war between the United States and China. Many analysts remain relatively upbeat, believing the strong balance sheet will help Hong Kong weather the headwinds in the second half of the year - and that may well be true. But the combination of an impending interest rate hike and a strong Hong Kong dollar could end up hurting more than expected. 

Property sector sentiment down, but underlying demand still exists 
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​The real estate industry's business sentiment plunged after the latest round of property cooling measures, but the outlook of the services sector continued to hold firm even as manufacturing optimism waned. For firms in the services sector, a net weighted balance of 9 per cent expect more favourable business conditions, up marginally from the 8 per cent recorded in the previous survey. The net weighted balance is the difference between the proportion of optimistic and pessimistic firms. Real estate was the only industry within the services sector where firms felt that business conditions for the rest of the year would be less favourable, with a net weighted balance of -13 per cent compared to 9 per cent a quarter ago. In particular, real estate developers expect recent property cooling measures including the Additional Buyer's Stamp Duty and Loan-to-Value limits to slow down the property market.

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Private home price increases to moderate rest of the year
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​The property cooling measures will tame the upswing in private residential prices in the first half of the year and moderate growth in the rest of the year, but as the pipeline of units eases in the near term, rentals and occupancy rates will find firmer footing, analysts said. Private residential prices in Q2 rose 3.4 per cent, its fourth straight quarter of increase. Transaction volumes soared to a five-year high, according to second-quarter real estate statistics released on Friday by the Urban Redevelopment Authority (URA). With that, private home prices rose by a cumulative 7.4 per cent in the first half of 2018. Landed properties led the way by rising by 4.1 per cent, compared with the 1.9 per cent increase in the previous quarter, while prices of non-landed properties rose by 3.2 per cent, compared with the 4.4 per cent increase in the previous quarter. 

SP Setia moved 50 of the 80 apartments launched at Daintree Residence over the weekend, in the private property market's first new launch since latest cooling measures kicked in earlier this month. The first phase of the 327-unit Daintree's launch achieved an average selling price of $1,710 per sq ft (psf), the developer told The Business Times on Sunday, with two-bedders making up the bulk of apartments sold, followed by three-bedroom homes. The price tag at Daintree was slightly under the S$1,800 psf that Mr Neo quoted ahead of the launch. But that's not to say that the developer is holding a fire sale. Next-door neighbour The Creek @ Bukit sold out for less last year, at S$1,630 psf. Malaysia's SP Setia snagged the Toh Tuck Road site in a government tender last year at S$265 million, or S$939 psf ppr. The decision to hold back the rest of the units could reflect the expectation that rivals will go in with higher prices, as the nearby Goodluck Garden condominium was sold en bloc at S$1,210 psf in March. 

Court gives go-ahead for Albracca en bloc sale

The Albracca condo at Meyer Road was granted a sale order by the High Court on Friday afternoon, following proceedings last month to decide on the fate of its collective sale. The 11-unit development was sold for S$69.1 million to Sustained Land last July, but one owner - who represented himself in court - had objected to the sale. The Business Times understands the court ordered costs against the objector, who has to pay the legal fees and disbursements of the other owners. It is not known if the owner will appeal Friday's decision.

Fragrant Gardens up for collective sale at $65m

Fragrant Gardens, located off Upper Paya Lebar Road, has put itself on the market for a collective sale with a reserve price of $65 million. This translates to a land rate of approximately $1,204 psf ppr, said its marketing agent. With no development charge payable, and with the inclusion of a 10 per cent bonus balcony gross floor area, the land rate works out to about $1,094 psf ppr, subject to the authorities' approval. The 37-unit freehold development occupies a 38,576 sq ft plot, with a gross plot ratio of 1.4 and a maximum gross floor area of about 54,005 sq ft, the site can be redeveloped into 71 new units averaging 70 sq m each. 

URA nod for 4,107 units at Tampines Court, Normanton Park

The Urban Redevelopment Authority (URA) granted provisional permission for several residential projects in the second quarter of the year. These include two large projects with well over 1,000 units each on sites sold through collective sales. Sim Lian won URA's provisional nod in June to develop a 2,225-unit condo on the Tampines Court site. In the same month, Kingsford Huray Development was granted approval for a 1,882-unit project on the Normanton Park site - comprising 1,863 apartments and 19 strata terrace houses. Normanton Park is near Science Park and Kent Ridge Park. In Q2 this year, URA also granted provisional permission to some developers for their projects on sites clinched at state tenders. Notably, Frasers Property received approval to develop a residential and serviced apartments project totaling 500 units on the former Zouk site in Jiak Kim Street. Market watchers note that Frasers Property's project combines developing apartments for sale with a long-term investment approach by also including a serviced residences component which the group is likely to retain for recurring income. In May, URA granted provisional permission to City Developments Ltd (CDL) to develop the 718-unit Whistler Grand on a site in West Coast Vale that the group clinched at a state tender earlier this year. 

Property curb prompting developers, especially smaller players to rethink strategy

The halting of an en bloc purchase by Tee Land reflects the turn in sentiment among property developers in Singapore who have begun redoing their sums on the back of the latest cooling measures, industry observers told Channel NewsAsia. Singapore-listed Tee Land said it has decided not to exercise its option to purchase Teck Guan Ville via a collective sale that would have been worth S$60 million, forfeiting its 1 per cent deposit to “adopt a more prudent and circumspect approach towards new projects” to the impact of recent property curbs on market sentiment and purchasers’ interest. Experts have said that the unexpected policies announced on Jul 5 fuelled two worries for property developers. First, the prospect of higher land acquisition costs given an extra non-remissible five per cent Additional Buyer's Stamp Duty (ABSD) for residential land purchases. Second, the fear of a demand slowdown as home buyers face a hike in ABSD rates and tightened loan-to-value (LTV) limits. This worries developers, particularly due to an increase in the remissible ABSD rate to 25 per cent, which can only be waived if they sell all their units within five years. 

Takashimaya Singapore rises to the challenge

​Takashimaya Singapore, which is celebrating the 25th anniversary of the opening of its department store on Orchard Road, looks to achieve a 3 to 4 per cent increase in sales this year, after posting flat growth last year. For the year ended Dec 31, 2017, the operator of the popular Orchard Road department store saw sales inching up 0.3 per cent or S$2 million to S$644 million from the previous year. In both years, tourists accounted for a quarter of the store's sales - with Indonesians having the biggest share, followed by Chinese, Malaysians and Vietnamese. Takashimaya Singapore's operating profit rose 10 per cent to S$44 million last year from S$40 million in 2016. 


Google opens third data centre in Singapore's Jurong West

US Internet giant Google announced on Wednesday that it will build a third data centre in Singapore to meet rapid user growth in the region, bringing its total long-term investment in such facilities here to US$850 million. A Google spokesman told The Business Times that this latest data centre adds another US$350 million to its spending in Singapore. The company said in a blog post that it has begun construction on the third facility in Jurong West, just down the road from its first two centres. Google said that its latest centre, expected to come online in 2020, will be built on a plot of land the size of the first and second centres combined. 


​Singaporean family puts Crowne Plaza resort on sale

Tourism complex Crowne Plaza Surfers Paradise in Australia has been put on the market by its owners - a Singaporean family - for more than A$100 million. Standing on a 1.2-hectare site, the resort complex comprises the 269-room Crowne Plaza Hotel currently operated by IHG, management rights for the 104-room Gold Tower, retail space, a tavern, 15 function venues and multiple food and beverage outlets, including Queensland's only revolving restaurant. The offering also comes with a development site which already has approval for 234 apartments in a 46-level tower. According to Australian media, the hotel is being sold by Xgenesis, a fund anchored by a Singaporean family office. 

A freehold development in District 10 development - Park House at 21 Orchard Boulevard successfully sold for S$375.5 million on 13 June 2018 translating to a record collective sale price of S$2,910 per sq ft per plot ratio (psf ppr) on the maximum allowable gross floor area of 129,035 sq ft, excluding the 10 per  cent bonus for balconies. 

Park House is a rare freehold 60-unit development, comprising 56 apartments and four shop units. Each apartment unit owner stands to receive a gross payout of about $6.1 million and each shop unit owner, $8.1 million.

Park House enjoys a prominent yet exclusive location on Orchard Boulevard with good accessibility to the Orchard Road shopping belt and a short walking distance to Orchard Boulevard MRT when it is completed in 2021.

The public tender for Park House was awarded on June 1 to Shun Tak Cuscaden Residential, a wholly-owned subsidiary of Hong Kong-listed Shun Tak Holdings. Zoned as residential under the 2014 Master Plan, the 46,984 sq ft site has a plot ratio of 2.8. Shun Tak Holdings intends to redevelop the site into a luxury residential development with expected completion by 2023.

“The response from local and foreign developers was overwhelming; we conducted more than 20 site inspections with developers from Hong Kong, Malaysia, Singapore, China and Indonesia,” said CBRE managing director of capital markets Jeremy Lake, the agency that sealed this enbloc deal.

This new benchmark price beats the previous peak of S$2,526 psf ppr, which Hong Kong's Swire Properties paid for the Hampton Court collective sale site at Draycott Park in 2013.

Meanwhile, Lakeside Apartments in the Jurong Lake District has been put up for en bloc sale on the market with a reserve price of $240 million - the latest to wade into the wave of collective sales here. More than 80 per cent of owners at the 134,176 sq ft site in the Jurong Lake District area have agreed to sell and the tender was launched on Tuesday (12 June 2018). This means each of the owners at the 120-unit development stands to pocket $2 million.

​The site in Yuan Ching Road is zoned residential with a plot ratio of 2.1. It comprises two tower blocks of 15 storeys, and has 58 years left on its 99-year lease. An enhancement premium of $55.56 million will have to be paid for both the lease top-up premium and land use intensification of the site. The 120-unit development comprises two 15-storey tower blocks on a large 134,176 sq ft site. The tender for Lakeside Apartments closes on 24 July 2018.

Market watchers are seeing an increased demand for the Singapore residential property market from foreign investors and house hunters after the successful Trump-Kim summit held in Singapore on 12 June 2018 with many observers and academics calling the Trump-Kim summit a turning point and a historical moment for the world.

This greatly boosted the prospects of finally seeing peace in the Korean Peninsula and marks the eventual removal of the decades of constant threat of a devastating nuclear war in Asia.

This will mean market recovery and stability for many Asian countries with foreign investors from Europe and Americas looking southwards towards Asia and South-East Asia, Property markets are set to benefit from foreign investor's attention as Asia has seen a robust performance as compared to Europe, North America and South America as well as the Middle East. 

High-net-worth foreigners and foreign investment firms are beginning to scan Asian cities for properties to invest in and one of the prime destination is Singapore for its safe investment environment and stable political climate. 

The Singapore housing sector has recently rebounded after home prices fell 12 per cent from the last peak in 2013. At the same time, household income has improved, resulting in housing affordability - measured by private home price-to-income ratio - falling to a 20-year low. The high-end residential segment, especially, would find itself the centre of foreigners' interest again, he said. This segment is the most dependent on foreign demand and has suffered the brunt of existing curbs. Prices have fallen so much that their median per square foot prices are now at a 62 per cent premium over mass market condominiums - near a 10-year low. 

During the 1970s and 1980s, the government catered to the public demand for larger sized and fancy designed public housing as a housing option for middle-income citizen families by introducing HUDC flats on sprawling land parcels in HUDC estates. HUDC was a good scheme for people who could not afford private property but wanted something better (than public housing).

However, HDB decided to phase out the building of HUDC flats in 1987 as their demand declined and as land scarcity issues surfaced on our tiny Singapore island. There are therefore a total of 18 HUDC estates comprising 7,731 residential and 23 shop units by the time the government decided to stop building new HUDC estates in Singapore.

From 1995, the government gradually privatised the HUDC estates to meet the rising aspirations of Singaporeans to own private properties and by March 2017, all 18 HUDC estates were privatised into private residential developments where the HUDC home owners have to form their own residents council and contribute to their own sinking and management funds to take care of their private estates.  

Since the gradual privatisation of the HUDC estates from 1995 into private housing estates, thirteen out of eighteen of these private housing estates had been collectively sold to private developers through various enbloc exercises creating thousands of new millionaire households.

AMBERVILLE HUDC estate was snapped up in 2006 at the price of $183 million and became the first former HUDC estate to be sold collectively. Its price translates into $396 per square foot per plot ratio (psf ppr), after accounting for a development charge of about $35.2 million and a differential premium of $23.8 million to top up the lease from 71 years to 99 years. AMBERVILLE has been developed into a beautiful condo project called Silversea.

FARRER COURT HUDC estate  was sold above the owners’ reserve price of $1.2 billion but below their asking price of $1.5 billion to CapitaLand at an awesome $1.34 billion for the sprawling Farrer Court estate in 2007. Owners at the 618-unit complex will get about $2.15 million each, depending on the size of their flats, which range from 1,453 to 1,615 square feet. FARRER COURT HUDC estate has now been transformed into a grand condo project called d'Leedon

GILLMAN HEIGHTS HUDC estate was acquired by CapitaLand for S$548 million in 2007. There are 607 apartments in GILLMAN HEIGHTS HUDC estate – about 1,700 and 1,950 square feet each, and one shop unit. Based on a S$363 per square foot per plot ratio, the residents will be compensated between S$880,000 to S$950,000 per unit. The amount is inclusive of a differential premium of S$90 million to top up the lease to 99 years & maximise the use of the plot ratio from the present 1.65 to 2.1. GILLMAN HEIGHTS HUDC estate is now the very beautifully unique condo development called The Interlace.

MINTON RISE HUDC estate was sold to Kheng Leong, a privately owned property group controlled by the family of banker Wee Cho Yaw for $209 million in 2007. Minton Rise has 342 apartments in total and owners of the privatised HUDC estate will receive about $611,000 on average. MINTON RISE HUDC estate is now a condo with amazingly beautiful facilities called The Minton.

WATERFRONT VIEW HUDC estate in 2006 was acquired by Far East Organization and Frasers Centrepoint's maiden joint venture, which bought the privatised former HUDC estate facing Bedok Reservoir, for $385 million. This price works out to a land price of $241 psf per plot ratio inclusive of an estimated $102.2 million payment to the state for lifting title restriction to enhance the site’s plot ratio, and upgrading the site’s lease to 99 years for this sprawling 809,037 sq ft site. Due to its huge land size,  WATERFRONT VIEW HUDC estate is now divided into 4 condo developments: Waterfront Waves, Waterfront Gold, Waterfront Key and Waterfront Isle.

SHUNFU VILLE HUDC estate was sold for S$638 million in May 2016, marking the third largest en bloc by quantum in Singapore. Each owner of the 358-unit condo, which lies less than 200 metres from Marymount MRT Station, stands to get around S$1.78 million. The 358-unit project was first put on sale in September with an asking price of at least $688 million or $791 per sq ft (psf) per plot ratio. The tender closed last October with no formal bids but two letters of interest. It was relaunched for tender at the same price in late January. Shunfu Ville sits on a huge 408,927 sq ft land site with a plot ratio of 2.8.

A beautiful new condo development will be launched soon on this site called: Jade Scape. Register for the soft launch invite, updates and floorplans for Jade Scape here.

RAINTREE GARDENS HUDC estate in Potong Pasir was sold in Oct 2016 for $334.2 million, after more than five developers bid for the site. Many unit owners of the 175-unit privatised HUDC estate will walk away with about $1.9 million per unit after being sold to UVD (Projects), a joint venture of UOL Group and United Industrial Corporation. The price works out to about $797 per sq ft per plot ratio (psf ppr), including the premium paid to top up the lease to a fresh 99 years and for redevelopment of the site to a gross plot ratio of 2.8.

The location is near the very popular Bidadari estate and UVD is looking to develop the 201,405 sq ft site to house about 750 units. This HUDC site will be developed into an exciting project called: The Tre Ver, register for the soft launch invite, updates and floorplans here.

RIO CASA HUDC estate Rio Casa, a privatised HUDC estate, has been sold for S$575 million to a joint venture company Oxley-Lian Beng Venture. The JV partners are KSH Development, Oxley Holdings, Lian Beng Group and Apricot Capital. Rio Casa in Hougang Avenue 7 comprises seven blocks of 286 apartment and maisonette units. It has a site area of 36,811.1 square metres. Each owner stands to receive a gross sale price of about S$2 million upon the successful completion of the sale. 

A new upcoming condo development will be launched soon called: Riverfront Residences. Register for the soft launch invite, updates and floorplans here.

Privatised HUDC estate Serangoon Ville in Serangoon North Avenue 1 has been sold to an Oxley Holdings-led consortium for $499 million in July 2017 well above the $400 million to $430 million the owners had been expecting. The buyer, joint venture firm Oxley Serangoon, comprises partners including Oxley Holdings, Lian Beng Group, Apricot Capital and entities of KSH Holdings and Heeton Holdings with the purchase price working out to a land rate of $835 per sq ft per plot ratio. Serangoon Ville comprises 244 apartments and maisonettes across seven blocks, with sizes ranging from 1,625 sq ft to 1,733 sq ft. Each owner will receive about $2 million from the sale.

The new condo development that will be built on this plot of land is called: Affinity at Serangoon. Register for the soft launch invite, updates and floorplans here.

TAMPINES COURT HUDC estate was successfully sold to property developer Sim Lian for a cool $970 million in Aug 2017 as the collective sale market here continues to sizzle. It is the largest such deal for a former Housing and Urban Development Company property in a decade since Farrer Court changed hands for $1.34 billion in 2007. The enbloc price for the 560-unit development, in Tampines Street 11, works out to about $676 per sq ft (psf) per plot ratio with each owner standing to gain about $1.71 million to $1.75 million. The 702,164 sq ft site could be turned into a project of about 2,000 to 2,100 new units - or as many as 2,600 units, if the site is stretched to its limits. You may follow this project's future developments here.

Eunosville, a former HUDC estate, has 330 units - comprising 255 maisonettes and 75 apartments. It was sold in June 2017 to Hongkong Land's fully-owned unit MCL Land through a collective sale, at a price of S$765.78 million, working out to a land price of S$909 per square foot per plot ratio (psf ppr) inclusive of an estimated S$194 million payable to the state to enhance the intensity of the site to a gross plot ratio (ratio of maximum gross floor area to land area) of 2.8 and to top up the site's lease to 99 years. Owners stand to receive a gross sale price of about S$2.25 million to S$2.41 million per unit upon the successful completion of the sale. Eunosville will be developed into a beautiful condo project. Find out how this estate will be developed in future by registering your interest here.

Florence Regency finally closed a collective sale deal under private treaty after Chinese developer Logan Property (Singapore) agreed to match the independent valuation of $629 million for the property in Hougang Avenue 2 in Oct 2017. Each owner of the 336-unit former Housing and Urban Development Company (HUDC) estate will receive gross proceeds of between $1.84 million and $1.89 million.

The 389,236 sq ft site is zoned residential with a gross plot ratio of 2.8 and could yield around 1,000 units. The land price works out to $842 per sq ft (psf) per plot ratio (ppr) after factoring in the estimated differential premiums of $288.6 million to top up the lease to a fresh 99 years and develop the site to the gross plot ratio of 2.8.

Florence Regency is one of the last few privatised HUDC estates in the north-east region. The future development will enjoy unblocked views, located next to landed housing estates and across the Hougang Stadium and the sports and swimming complex. Find out how this estate will be developed in future by registering your interest here.

CHANCERY COURT, a privatised HUDC estate with 136 residential and eight strata commercial units across the road from Anglo-Chinese School (Barker Road), has fetched $401.78 million - a highly sought-after development among parents who want to register their children into Anglo Chinese School, given that the ACS Barker Road campus is located just across the road. Upon successful conclusion of the collective sale following Strata Title Board approval, owners of the residential units can expect proceeds of $1.8 million to $3.5 million, while the owners of the strata commercial units will walk away with $934,000 to $4.7 million, depending their unit size. The Chancery Court HUDC estate will be developed into a new condo development. Find out how this estate will be developed in future by registering your interest here.


With the sale of Chancery Court, only five of 12 former HUDC estates remain for now - Ivory Heights, Pine Grove, Laguna Park, Braddell View and Lakeview. All five are in various stages of the collective sale process.

THE Urban Redevelopment Authority (URA) and the Housing & Development Board (HDB) have released three sites with residential components for sale at Dairy Farm Road, Sims Drive and Tampines Avenue 10 under the first half of the 2018 Government Land Sales (GLS) Programme.

For sale is one Confirmed List site at Dairy Farm Road launched for residential development with commercial uses at the first storey. This land parcel has a site area of 19,647.5 square metres (sq m), with a 99-year lease period, and a permissible gross floor area (GFA) of 41,260 sq m. The project completion period is five years, and tender for this development will close at 12 noon on 4 Sept 2018. 

The Dairy Farm Road plot's most attractive attributes are its proximity to the Bukit Timah Nature Reserve and partial unblocked views over the landed residential plots. The site's proximity to Hillview MRT station and major expressways as well as strong rental demand from expatriates in the locality are reasons why the site may prove to be popular with developers.

The last time a residential GLS site was sold in the area was in 2012, to a consortium led by TA Corporation for S$616 per square foot per plot ratio (psf ppr) and developed into The Skywoods. Nearby, there is an older condo development - The Dairy Farm which is now in the process of gathering the requisite consensus for its collective sale with an asking price of over S$1.68 billion, or a land rate of at least S$1,100 psf ppr inclusive of the development charge.

The current record GLS land rate (S$805 psf ppr) in the Bukit Panjang/Hillview/Dairy Farm/Bukit Batok locality is now held by the land parcel where Hillion Residences and Hillion Mall stand. Units in Hillion Residences have commanded average prices of S$1,496 psf this year.

Separately, URA also announced another residential site at Sims Drive made available for application under the Reserve List. This means developers can trigger the tender of these sites if they indicate interest with bid commitments acceptable to the URA.

The development at Sims Drive has a site area of 16,225.3 sq m, with a lease period of 99 years, and a permissible GFA of 48,676 sq m.

This GLS land parcel at Sims Drive is sited right beside the beautiful condo development that has recently achieved TOP status called Sims Urban Oasis, developed by the very reputable Singapore listed developer - Guocoland. There are still a small handful of three bedroom units, 'rare' four bedroom dual-key and 5 bedroom units available for sale at Sims Urban Oasis, find out more about this project by clicking the project image above.

In addition to the above two land parcels, URA also announced a HDB executive condominium site at Tampines Avenue 10 that is available for application under the Reserve List as well. This plot of land for development of an executive condominium at Tampines has a site area of 2.56 hectares (25, 600 sq m), and a proposed gross plot ratio of 2.8. 

Beside this plot of land is a recently launched new condo development called The Tapestry, developed by another very reputable locally listed developer - City Developments Limited or CDL. This project is a private condo project and features good sized layouts in their interior floorplan designs that appeal to both home owners and investors alike. You may click on the project image below to visit The Tapestry website to find out more.

Collectively, the three GLS land parcels released by URA as shown above can yield an estimated total of 1,880 residential units.