- Published on
Source: URA
An executive condominium (EC) site in Bukit Batok West Avenue 8 that was launched for sale via public tender in Dec last year saw it breaking all previous EC records with the top bid of $266 million among nine bidders, or $661.67 psf ppr, coming from a joint venture between Qingjian Realty and Santarli Construction beating their previous record bid of $659 psf ppr for the Tampines Street 62 EC site in July 2021.
The Bukit Batok executive condo land parcel is expected to yield 375 residential units. It has a site area of 12,449.30 square metres (sq m) and maximum gross floor area of 37,348 sq m, with maximum building height of 60-70 metres. Its top bid of $662 psf ppr is 9.8% higher than that of the nearby Tengah Garden Walk EC plot, which was awarded in June 2021 to a joint venture between City Developments and MCL Land for $603 psf ppr.
ECs have always been popular among home buyers due to their more affordable prices, and tend to appeal to some first-time home owners or HDB upgraders who are least affected by the recently announced property cooling measures. This upcoming Bukit Batok executive condo is in an area where private housing supply is fairly limited, with the last private residential project there being the nearby Le Quest - a nearby mixed use development also developed by Qingjian Realty.
The Bukit Batok executive condo land parcel is expected to yield 375 residential units. It has a site area of 12,449.30 square metres (sq m) and maximum gross floor area of 37,348 sq m, with maximum building height of 60-70 metres. Its top bid of $662 psf ppr is 9.8% higher than that of the nearby Tengah Garden Walk EC plot, which was awarded in June 2021 to a joint venture between City Developments and MCL Land for $603 psf ppr.
ECs have always been popular among home buyers due to their more affordable prices, and tend to appeal to some first-time home owners or HDB upgraders who are least affected by the recently announced property cooling measures. This upcoming Bukit Batok executive condo is in an area where private housing supply is fairly limited, with the last private residential project there being the nearby Le Quest - a nearby mixed use development also developed by Qingjian Realty.
Source: URA
In the second tender, a 99-year leasehold private housing site in Dairy Farm Walk in the Upper Bukit Timah area drew seven bids, with the highest at $347 million, or $980 per sq ft per plot ratio (psf ppr), coming from a partnership between Sim Lian Land and Sim Lian Development.
The site - spanning 15,663.2 sq m, the parcel has a maximum gross floor area of 32,893 sq m and an expected yield of about 385 units, was hotly contested with the top three bids within 3 per cent of each other. Developers remain confident in the suburban residential market which is likely to see sustained demand from first-time buyers and home upgraders.
Nearby, there's a 460-unit Dairy Farm Residences which is also 95 per cent sold, with 81 units going for an average price of 1,680 psf after the new curbs were introduced.
Unsold stock in the suburbs was at an estimated record low of 3,972 units as at the end of 2021, this balance inventory of unsold mass market homes could potentially be snapped up in less than a year, based on the annual average sales of about 4,900 new OCR units between 2017 and 2021.
The site - spanning 15,663.2 sq m, the parcel has a maximum gross floor area of 32,893 sq m and an expected yield of about 385 units, was hotly contested with the top three bids within 3 per cent of each other. Developers remain confident in the suburban residential market which is likely to see sustained demand from first-time buyers and home upgraders.
Nearby, there's a 460-unit Dairy Farm Residences which is also 95 per cent sold, with 81 units going for an average price of 1,680 psf after the new curbs were introduced.
Unsold stock in the suburbs was at an estimated record low of 3,972 units as at the end of 2021, this balance inventory of unsold mass market homes could potentially be snapped up in less than a year, based on the annual average sales of about 4,900 new OCR units between 2017 and 2021.
Executive condominiums are generally not as affected by property cooling measures and wealth real estate taxes as they are for owner-occupiers and first-time buyers. With the diminishing supply of new EC units in the market, it is no surprise that nine developers fought for this piece of land as developers seek a less risky executive condo land site to add to their land inventory.
Real estate consultant Kiwi Lim from Huttons Asia estimates that at the land rate of $662 psf ppr, next year's EC buyers may expect record prices from $1,350 psf onwards starting with this upcoming Bukit Batok West executive condominium.
Developers are still trying to replenish their land banks amid the latest round of property curbs in December 2021 through government land sales (GLS) land parcels as the momentum for en bloc market slowed after the recent cooling measure raised developer's ABSD from 25% to 35% when purchasing residential properties if they could not sell all their units within five years. Developers also face an additional 5% non-remittable ABSD. Kiwi Lim believe developers will still consider en bloc if a development's location and pricing are attractive and if Government Land Sale (GLS) sites are not suitable. The current available inventory of unsold private residential units in the property market have fallen to a record low never seen since 2006.
Real estate consultant Kiwi Lim from Huttons Asia estimates that at the land rate of $662 psf ppr, next year's EC buyers may expect record prices from $1,350 psf onwards starting with this upcoming Bukit Batok West executive condominium.
Developers are still trying to replenish their land banks amid the latest round of property curbs in December 2021 through government land sales (GLS) land parcels as the momentum for en bloc market slowed after the recent cooling measure raised developer's ABSD from 25% to 35% when purchasing residential properties if they could not sell all their units within five years. Developers also face an additional 5% non-remittable ABSD. Kiwi Lim believe developers will still consider en bloc if a development's location and pricing are attractive and if Government Land Sale (GLS) sites are not suitable. The current available inventory of unsold private residential units in the property market have fallen to a record low never seen since 2006.
Source: Straits Times
- Published on
Nearly one-third of HDB blocks and 14% of HDB neighbourhoods have reached one or more of the EIP limits.
Housing and Development Board (HDB) announced on 8 March 2022 (Tuesday) that flat owners constrained by the Ethnic Integration Policy (EIP) who face “genuine difficulties” selling their homes will be able to sell them back to the Housing and Development Board (HDB) at “a fair price”.
Under the EIP, introduced in 1989, quotas are set for flats owned by each racial group in an HDB block or neighbourhood to avoid concentrations of any ethnic group. When a limit is reached, there can be no further sale of flats to the affected group, unless the seller and buyer are from the same ethnic group.
Minister for National Development Desmond Lee has repeated the need for the Ethnic Integration Policy (EIP) remaining an “important” part of combating racism and building racial harmony as it ensures “inclusive and diverse neighbourhoods” preventing ethnic concentrations to form in different areas, while noting that some owners may face difficulties selling their flats with these limits.
Under the EIP, introduced in 1989, quotas are set for flats owned by each racial group in an HDB block or neighbourhood to avoid concentrations of any ethnic group. When a limit is reached, there can be no further sale of flats to the affected group, unless the seller and buyer are from the same ethnic group.
Minister for National Development Desmond Lee has repeated the need for the Ethnic Integration Policy (EIP) remaining an “important” part of combating racism and building racial harmony as it ensures “inclusive and diverse neighbourhoods” preventing ethnic concentrations to form in different areas, while noting that some owners may face difficulties selling their flats with these limits.
Current assistance given to flat owners trying to sell their flat facing challenges due to the Ethnic Integration Policy (EIP) includes giving them more time to sell their flat, or waiving the EIP limits in “exceptional circumstances”. But it would not be sustainable to keep doing so as it would "erode the very objectives the EIP seeks to achieve".
After studying various ideas, including giving grants to households who have to sell their flats at significantly lower prices, he said the "most feasible" option would be to buy back the flats.
Minister for National Development Desmond Lee explained that this is not a decision the government make lightly, because it requires significant government resources. But the government believe it is the right thing to do, because the EIP is good for Singapore, helping to foster a more cohesive society.
After studying various ideas, including giving grants to households who have to sell their flats at significantly lower prices, he said the "most feasible" option would be to buy back the flats.
Minister for National Development Desmond Lee explained that this is not a decision the government make lightly, because it requires significant government resources. But the government believe it is the right thing to do, because the EIP is good for Singapore, helping to foster a more cohesive society.
From Mar 8, HDB will buy back flats from eligible EIP-constrained flat owners who are unable to sell their homes at a reasonable price.
This includes owners who bought their flats from HDB and the resale market, regardless of whether the flat was EIP-constrained at the time of purchase. HDB and the Ministry of National Development said requests will be assessed on a case-by-case basis, considering criteria such as whether they have fulfilled the Minimum Occupation Period and owned the flat for at least 10 years.
Owners should also have made regular genuine attempts to sell their flat over a continuous period of at least six months at a reasonable asking price while constrained by one or more EIP limits.
To set a “reasonable asking price”, sellers can take reference from recent transaction prices for flats located within 200m of theirs, and make adjustments to account for attributes such as storey height and orientation.
In addition, owners should keep monthly records of their marketing attempts throughout this period and submit them to HDB when seeking assistance. These records include online or print property listings detailing the asking price and listing date, and records of flat viewings.
“EIP-constrained flat owners who do not fulfil these criteria, but who face extenuating circumstances, may seek special consideration from HDB,” said the release.
This includes owners who bought their flats from HDB and the resale market, regardless of whether the flat was EIP-constrained at the time of purchase. HDB and the Ministry of National Development said requests will be assessed on a case-by-case basis, considering criteria such as whether they have fulfilled the Minimum Occupation Period and owned the flat for at least 10 years.
Owners should also have made regular genuine attempts to sell their flat over a continuous period of at least six months at a reasonable asking price while constrained by one or more EIP limits.
To set a “reasonable asking price”, sellers can take reference from recent transaction prices for flats located within 200m of theirs, and make adjustments to account for attributes such as storey height and orientation.
In addition, owners should keep monthly records of their marketing attempts throughout this period and submit them to HDB when seeking assistance. These records include online or print property listings detailing the asking price and listing date, and records of flat viewings.
“EIP-constrained flat owners who do not fulfil these criteria, but who face extenuating circumstances, may seek special consideration from HDB,” said the release.
For owners who are assessed to be eligible, HDB will appoint a professional licensed valuer to value their flat. The valuer will then make their assessment based on “established valuation principles”.
HDB will then determine the buyback price and make an offer for the flat at a fair price,” said the authorities. Flat owners have up to three months to decide if they want to accept the buyback offer. If they reject it, they will not be eligible for the assistance for 12 months after the offer lapses. The flats bought back by HDB will become part of its housing stock and be offered for public sale again through the Sale of Balance Flats exercises or open booking.
As with all flats sold through Sale of Balance Flats exercises or open booking, HDB will apply a significant subsidy to the assessed market value of the flat to determine the sale price. After that, a household’s eligibility to book the flat will depend on the prevailing ethnic proportions in the block and neighbourhood when they are invited to select a flat.
HDB will then determine the buyback price and make an offer for the flat at a fair price,” said the authorities. Flat owners have up to three months to decide if they want to accept the buyback offer. If they reject it, they will not be eligible for the assistance for 12 months after the offer lapses. The flats bought back by HDB will become part of its housing stock and be offered for public sale again through the Sale of Balance Flats exercises or open booking.
As with all flats sold through Sale of Balance Flats exercises or open booking, HDB will apply a significant subsidy to the assessed market value of the flat to determine the sale price. After that, a household’s eligibility to book the flat will depend on the prevailing ethnic proportions in the block and neighbourhood when they are invited to select a flat.
Above is extracted from Channelnewsasia 8 March 2022 online article
