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Jui Residences - art deco heritage (former National Aerated Water building) next to Kallang River
Investment bank Morgan Stanley has deemed concerns over property cooling measures and higher interest rates as "overdone" while also predicting that house prices here will shoot up next year. The American firm said that it predicts private home prices will rise by 2 per cent each quarter until the end of next year. That points to a 2 per cent rise in this quarter and an 8 per cent rise over the course of next year. Its surprisingly bullish forecast is in contrast to other research teams.
Analysts believe that Singapore will also stay relevant as a global hub, which will help attract capital inflows into the property market. A wave of mega-flagship projects, such as a new terminal at Changi Airport, highlight government efforts to enhance Singapore's competitive edge as a vibrant global city in attracting foreign capital and talent.
Morgan Stanley acknowledged that "the market remains unconvinced about the housing market's near-term outlook", but said concerns about cooling measures, interest rate hikes and an economic slowdown were "overdone". It noted that home prices rose in four of the five previous rate hike cycles between 1993 and 2007 - and rising rates "tend to coincide with improving economic growth, which supports housing demand". The firm believes investors and foreigners will still buy despite the cooling measures. It noted "healthy demand" from Housing Board upgraders and collective sale beneficiaries, adding that supply is still tight "as unsold inventory of 28,000 units (including from launches in the pipeline) is still below historical levels".
Analysts believe that Singapore will also stay relevant as a global hub, which will help attract capital inflows into the property market. A wave of mega-flagship projects, such as a new terminal at Changi Airport, highlight government efforts to enhance Singapore's competitive edge as a vibrant global city in attracting foreign capital and talent.
Morgan Stanley acknowledged that "the market remains unconvinced about the housing market's near-term outlook", but said concerns about cooling measures, interest rate hikes and an economic slowdown were "overdone". It noted that home prices rose in four of the five previous rate hike cycles between 1993 and 2007 - and rising rates "tend to coincide with improving economic growth, which supports housing demand". The firm believes investors and foreigners will still buy despite the cooling measures. It noted "healthy demand" from Housing Board upgraders and collective sale beneficiaries, adding that supply is still tight "as unsold inventory of 28,000 units (including from launches in the pipeline) is still below historical levels".
Riverfront Residences - mature estate of Hougang, enjoys 200m frontage of scenic Sungei Serangoon
Singapore to attract more tourists with revamped attractions, data analytics
Even as Singapore continues to enjoy its status as a choice destination for quality events, the island state is working to enhance its overall attractiveness as a tourist destination, Senior Minister of State for Trade and Industry Chee Hong Tat said. Speaking at the opening ceremony of travel trade event ITB Asia, Mr Chee noted that visitor arrivals to Singapore increased 7.7 per cent year-on-year to 9.2 million in the first half of 2018, with about 15 per cent of visitors here for business travel and meetings, incentive travel, conventions and exhibitions (BTMICE). Such visitors contributed S$2.2 billion or 22 per cent of Singapore's total tourism receipts, excluding receipts for sightseeing, entertainment and gaming sectors.
Singapore is working to enhance its overall attractiveness as a destination with a strategy involving three key thrusts: investing in quality attractions and reinventing tourism offerings; attracting new visitor segments and increasing their spending; and forging strong partnerships with industry stakeholders to co-create innovative solutions. To achieve the first thrust, Singapore plans to revamp the Orchard Road shopping belt to include more activities and attractions for tourists and locals alike. It may even incorporate more greenery and serve as a living lab for a new innovation district.
Plans for Sentosa Island include rejuvenating existing infrastructure and facilities. Pulau Brani, a small island located between Sentosa and Keppel Harbour, and the Greater Southern Waterfront will be developed into new tourism attractions when the container ports at Tanjong Pagar are relocated to Tuas in the next decade. Finally, STB will promote industry partnerships by funding Tourism Innovation Challenges to develop innovative solutions for industry needs. It has already done so for the hotels and travel agents sectors, and last month launched the MICE Innovation Challenge.
Even as Singapore continues to enjoy its status as a choice destination for quality events, the island state is working to enhance its overall attractiveness as a tourist destination, Senior Minister of State for Trade and Industry Chee Hong Tat said. Speaking at the opening ceremony of travel trade event ITB Asia, Mr Chee noted that visitor arrivals to Singapore increased 7.7 per cent year-on-year to 9.2 million in the first half of 2018, with about 15 per cent of visitors here for business travel and meetings, incentive travel, conventions and exhibitions (BTMICE). Such visitors contributed S$2.2 billion or 22 per cent of Singapore's total tourism receipts, excluding receipts for sightseeing, entertainment and gaming sectors.
Singapore is working to enhance its overall attractiveness as a destination with a strategy involving three key thrusts: investing in quality attractions and reinventing tourism offerings; attracting new visitor segments and increasing their spending; and forging strong partnerships with industry stakeholders to co-create innovative solutions. To achieve the first thrust, Singapore plans to revamp the Orchard Road shopping belt to include more activities and attractions for tourists and locals alike. It may even incorporate more greenery and serve as a living lab for a new innovation district.
Plans for Sentosa Island include rejuvenating existing infrastructure and facilities. Pulau Brani, a small island located between Sentosa and Keppel Harbour, and the Greater Southern Waterfront will be developed into new tourism attractions when the container ports at Tanjong Pagar are relocated to Tuas in the next decade. Finally, STB will promote industry partnerships by funding Tourism Innovation Challenges to develop innovative solutions for industry needs. It has already done so for the hotels and travel agents sectors, and last month launched the MICE Innovation Challenge.
Jadescape in Shunfu is easily accessible via 4 MRT lines and only 3 minutes walk to Marymount MRT (circle line)
Singapore ranks 2nd in updated Global Competitiveness Index
Singapore ranks second out of 140 economies in the World Economic Forum (WEF) Global Competitiveness Index 4.0, an updated version of the annual ranking. With a score of 83.5 out of a possible 100 in the ranking released, Singapore came in behind only the United States; the Republic was ranked third in last year's Global Competitiveness Index. Switzerland, ranked top in 2017, is fourth in the latest index. The countries in this year's top 10 remain nearly the same as last year's, though with some shuffling of places, and Denmark having replaced Finland. The WEF cited Singapore's openness as its defining feature and noted that it ranked first for infrastructure - one of the index's 12 pillars - with a near-perfect score of 95.7. The WEF notes, for example, that while Singapore is the most "future-ready" economy, it trails Sweden in having a digitally skilled workforce.
Singapore ranked 9th globally in wealth per adult: Credit Suisse
In terms of wealth per adult, Singapore is ranked ninth among the world's major economies, with the figure having risen 5.3 per cent to more than US$283,000 between mid-2017 and mid-2018. Credit Suisse Research Institute's 2018 Global Wealth Report, released on Thursday, has Switzerland still in pole position among the world's richest nations. Its wealth per adult stands at US$530,240, followed by Australia with US$411,060. Singapore's wealth per adult has risen by more than 146 per cent since 2000, with the increase coming mainly from high savings, asset price increases and a rising exchange rate from 2005 to 2012. Its average debt of US$53,000, accounting for 16 per cent of total assets, is moderate for a highwealth country. Singapore's total wealth is about US$1.3 trillion; this is forecast to grow by 4.6 per cent a year in the next five years to US$1.6 trillion in 2023. The number of millionaires in the Republic grew 11.2 per cent to 183,737. This is expected to go up by 5.5 per cent a year in the next five years to hit 239,640. Ultra-high-net-worth individuals, each with more than US$50 million to their name, numbered about 1,000 in mid-2018, 1.1 per cent more than the year before. Globally, wealth grew by 4.6 per cent to US$317 trillion, outpacing population growth. Wealth per adult went up by 3.2 per cent, raising global mean wealth to a record US$63,100 per adult.
Flexible working could contribute S$54.8b to Singapore economy by 2030
A study of flexible working in 16 markets has found that this non-traditional working arrangement could contribute S$54.8 billion to the Singapore economy come 2030. 73,000 more jobs are likely to be created in the flexible working category in Singapore by then. Flexible working's current contribution to Singapore's gross domestic product is valued at S$27.3 billion, or an estimated 6.1 per cent of GDP. Flexible working currently contributes to 3.2 per cent of GDP in China, 8.7 per cent in Hong Kong, 5.0 per cent in India, 8.1 per cent in Japan, 10.9 per cent in UK and 9.1 per cent in the United States.
Singapore ranks second out of 140 economies in the World Economic Forum (WEF) Global Competitiveness Index 4.0, an updated version of the annual ranking. With a score of 83.5 out of a possible 100 in the ranking released, Singapore came in behind only the United States; the Republic was ranked third in last year's Global Competitiveness Index. Switzerland, ranked top in 2017, is fourth in the latest index. The countries in this year's top 10 remain nearly the same as last year's, though with some shuffling of places, and Denmark having replaced Finland. The WEF cited Singapore's openness as its defining feature and noted that it ranked first for infrastructure - one of the index's 12 pillars - with a near-perfect score of 95.7. The WEF notes, for example, that while Singapore is the most "future-ready" economy, it trails Sweden in having a digitally skilled workforce.
Singapore ranked 9th globally in wealth per adult: Credit Suisse
In terms of wealth per adult, Singapore is ranked ninth among the world's major economies, with the figure having risen 5.3 per cent to more than US$283,000 between mid-2017 and mid-2018. Credit Suisse Research Institute's 2018 Global Wealth Report, released on Thursday, has Switzerland still in pole position among the world's richest nations. Its wealth per adult stands at US$530,240, followed by Australia with US$411,060. Singapore's wealth per adult has risen by more than 146 per cent since 2000, with the increase coming mainly from high savings, asset price increases and a rising exchange rate from 2005 to 2012. Its average debt of US$53,000, accounting for 16 per cent of total assets, is moderate for a highwealth country. Singapore's total wealth is about US$1.3 trillion; this is forecast to grow by 4.6 per cent a year in the next five years to US$1.6 trillion in 2023. The number of millionaires in the Republic grew 11.2 per cent to 183,737. This is expected to go up by 5.5 per cent a year in the next five years to hit 239,640. Ultra-high-net-worth individuals, each with more than US$50 million to their name, numbered about 1,000 in mid-2018, 1.1 per cent more than the year before. Globally, wealth grew by 4.6 per cent to US$317 trillion, outpacing population growth. Wealth per adult went up by 3.2 per cent, raising global mean wealth to a record US$63,100 per adult.
Flexible working could contribute S$54.8b to Singapore economy by 2030
A study of flexible working in 16 markets has found that this non-traditional working arrangement could contribute S$54.8 billion to the Singapore economy come 2030. 73,000 more jobs are likely to be created in the flexible working category in Singapore by then. Flexible working's current contribution to Singapore's gross domestic product is valued at S$27.3 billion, or an estimated 6.1 per cent of GDP. Flexible working currently contributes to 3.2 per cent of GDP in China, 8.7 per cent in Hong Kong, 5.0 per cent in India, 8.1 per cent in Japan, 10.9 per cent in UK and 9.1 per cent in the United States.
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Q3 growth better than expected; economists upgrade 2018 forecasts
Singapore's economy turned in a better-than-expected report card for the third quarter, which led several economists to upgrade their full-year growth forecasts. The economy grew 2.6 per cent year on year in Q3, down from 4.1 per cent in Q2, and 4.6 per cent in Q1, according to advance estimates released by the Ministry of Trade and Industry. This makes Q3 the weakest print this year, but it still managed to beat economist expectations of a 2.4 per cent expansion. For the first three quarters of 2018, the Singapore economy clocked growth of 3.8 per cent - the best 9-month performance since 2013. The manufacturing sector was still the main growth driver in Q3, but its momentum has slowed considerably as earlier anticipated, hit by base effects, a fading electronics cycle, and trade war concerns. Even with trade tensions and emerging market uncertainties casting a pall on the outlook, the economy is still on track to grow at a steady but more subdued clip for the rest of the year and 2019.
Singapore exports up 8.3%, but come in below expectations
Singapore's export growth clocked a strong showing last month, led by non-electronic shipments and supported by the volatile pharmaceuticals sector again. The Republic's non-oil domestic exports (Nodx) rose 8.3 per cent from a year ago in September, up from 5 per cent in August, with expansion in non-electronic exports outweighing a dip in electronics. This figure, however, remained below analysts' expectations of 11.1 per cent growth reflected in a Bloomberg forecast poll. Non-electronic exports grew by 11.9 per cent last month, up from a 7.8 per cent rise the month before - with pharmaceuticals, non-monetary gold and food preparations contributing the most to this. Electronic Nodx declined 0.9 per cent year-on-year as well, following a 1.5 per cent dip in August. Contributing most to this slip were shipments of personal computers, diodes and transistors, as well as parts of integrated circuits. In particular, exports to China dropped 17.8 per cent from the year before, with declines in both electronics & non-electronics. However, shipments to US jumped 41.5 per cent overall compared with a year ago.
Singapore and Indonesia deals likely to boost confidence
A planned US$10 billion (S$13.8 billion) currency swap deal and US dollar repurchase agreement between Singapore and Indonesia will boost confidence in uncertain times, say analysts. They say both would serve as a second line of defence, complementing the existing Chiang Mai Initiative, a multilateral currency swap arrangement among Asean members plus China, Japan and South Korea. The Indonesia-Singapore deals would also signal growing trust between the two neighbours. Under the planned swap that the central banks of both countries are finalising, Bank Indonesia could turn to the Monetary Authority of Singapore for up to US$10 billion worth of Singapore dollars for an equivalent amount of rupiah at the prevailing exchange rate. After a pre-determined period of time, the two central banks will return the swapped currencies to each other at the same exchange rate as when the transaction was first made. Normally, the central bank that requested activation of the swap pays interest to the counterpart central bank. Under the US dollar repurchase agreement, one central bank will provide the other with US dollars in exchange for pledged assets such as United States treasuries or government bonds. This would prevent the fire sale of assets that would exacerbate the situation in the event of a tight financial squeeze.
Singapore 3rd in global life expectancy rankings
Singaporeans are expected to remain among the longest-lived people in the world in 2040, according to a new study published in the medical journal, The Lancet. Researchers estimate the average lifespan in Singapore will go up from 83.3 years in 2016 to 85.4 years by 2040, placing it third out of 195 countries. Spain is expected to place first with an average lifespan of 85.8 years, while Japan will come in second at 85.7 years. Other countries predicted to be in the top 10 include Switzerland, Portugal, Italy, Israel, France, Luxembourg and Australia. The study also highlighted the top 10 causes of death in each country. For Singapore, the top three in 2040 are forecast to be lower respiratory infections, such as pneumonia, followed by dementia and ischaemic heart disease.
Singapore's economy turned in a better-than-expected report card for the third quarter, which led several economists to upgrade their full-year growth forecasts. The economy grew 2.6 per cent year on year in Q3, down from 4.1 per cent in Q2, and 4.6 per cent in Q1, according to advance estimates released by the Ministry of Trade and Industry. This makes Q3 the weakest print this year, but it still managed to beat economist expectations of a 2.4 per cent expansion. For the first three quarters of 2018, the Singapore economy clocked growth of 3.8 per cent - the best 9-month performance since 2013. The manufacturing sector was still the main growth driver in Q3, but its momentum has slowed considerably as earlier anticipated, hit by base effects, a fading electronics cycle, and trade war concerns. Even with trade tensions and emerging market uncertainties casting a pall on the outlook, the economy is still on track to grow at a steady but more subdued clip for the rest of the year and 2019.
Singapore exports up 8.3%, but come in below expectations
Singapore's export growth clocked a strong showing last month, led by non-electronic shipments and supported by the volatile pharmaceuticals sector again. The Republic's non-oil domestic exports (Nodx) rose 8.3 per cent from a year ago in September, up from 5 per cent in August, with expansion in non-electronic exports outweighing a dip in electronics. This figure, however, remained below analysts' expectations of 11.1 per cent growth reflected in a Bloomberg forecast poll. Non-electronic exports grew by 11.9 per cent last month, up from a 7.8 per cent rise the month before - with pharmaceuticals, non-monetary gold and food preparations contributing the most to this. Electronic Nodx declined 0.9 per cent year-on-year as well, following a 1.5 per cent dip in August. Contributing most to this slip were shipments of personal computers, diodes and transistors, as well as parts of integrated circuits. In particular, exports to China dropped 17.8 per cent from the year before, with declines in both electronics & non-electronics. However, shipments to US jumped 41.5 per cent overall compared with a year ago.
Singapore and Indonesia deals likely to boost confidence
A planned US$10 billion (S$13.8 billion) currency swap deal and US dollar repurchase agreement between Singapore and Indonesia will boost confidence in uncertain times, say analysts. They say both would serve as a second line of defence, complementing the existing Chiang Mai Initiative, a multilateral currency swap arrangement among Asean members plus China, Japan and South Korea. The Indonesia-Singapore deals would also signal growing trust between the two neighbours. Under the planned swap that the central banks of both countries are finalising, Bank Indonesia could turn to the Monetary Authority of Singapore for up to US$10 billion worth of Singapore dollars for an equivalent amount of rupiah at the prevailing exchange rate. After a pre-determined period of time, the two central banks will return the swapped currencies to each other at the same exchange rate as when the transaction was first made. Normally, the central bank that requested activation of the swap pays interest to the counterpart central bank. Under the US dollar repurchase agreement, one central bank will provide the other with US dollars in exchange for pledged assets such as United States treasuries or government bonds. This would prevent the fire sale of assets that would exacerbate the situation in the event of a tight financial squeeze.
Singapore 3rd in global life expectancy rankings
Singaporeans are expected to remain among the longest-lived people in the world in 2040, according to a new study published in the medical journal, The Lancet. Researchers estimate the average lifespan in Singapore will go up from 83.3 years in 2016 to 85.4 years by 2040, placing it third out of 195 countries. Spain is expected to place first with an average lifespan of 85.8 years, while Japan will come in second at 85.7 years. Other countries predicted to be in the top 10 include Switzerland, Portugal, Italy, Israel, France, Luxembourg and Australia. The study also highlighted the top 10 causes of death in each country. For Singapore, the top three in 2040 are forecast to be lower respiratory infections, such as pneumonia, followed by dementia and ischaemic heart disease.
The Gazania - new freehold condo (former Sun Rosier) located at How Sun Drive next to Bartley MRT Station
Bigger average unit size expected to temper condo prices
The average size of new private dwelling units (including executive condominiums) in the Outside Central Area will have to be at least 85 sq m, a regulatory change that will cut the number of units allowed in a project - something that developers say would sound the death knell for en bloc deals and moderate condo and land prices in the affected areas.
This comes as the URA has observed smaller unit sizes in new private housing projects, which in turn could put pressure on local infrastructure. The revised maximum number of allowable dwelling units will help to manage potential strains on local infrastructure and safeguard the liveability of residential estates, while encouraging developers to provide a more balanced mix of unit sizes to cater to the diverse needs of homebuyers. The 85 sq m and 100 sq m limits reduce the number of units in a development by 18 per cent and 30 per cent respectively, curbing developers' ability to prop up profit margins by launching smaller units. The number of shoebox units entering the market will also come down in the longer term.
New private dwelling units in nine areas (Marine Parade, Joo Chiat-Mountbatten, Telok Kurau-Jalan Eunos, Balestier, Stevens-Chancery, Pasir Panjang, Kovan-How Sun, Shelford and Loyang) will face a stricter criteria of 100 sq m • This will reduce the number of dwelling units by 18% and 30%, respectively
New guidelines may price some buyers out of market: Redas
The revised rules to cut the maximum number of private housing units allowed in a project outside the central area may make private properties out of reach for millennials and retirees and price these buyers out of the market, said the Real Estate Developers' Association of Singapore (Redas). With developers expected to build fewer and bigger units, the overall average prices of new private apartments may rise on reduced future supply, analysts say. The rules kick in for new development applications submitted on or after Jan 17. The move will curb the proliferation of shoebox units and is aimed at reducing potential strains on infrastructure.
New rules on condominium balcony size and width
n the light of a growing trend of oversized condominium balconies, the Urban Redevelopment Authority (URA) moved on Oct 17 to cap balcony sizes for the first time. The URA will impose a limit on the sizes of condominium balcony size in private homes to no more than 15 per cent of the internal floor area of the unit. Balconies must also now have a minimum width of 1.5m so that the outdoor space can be used meaningfully by residents. There are no such limits currently. The rules will come in for new condos with development applications submitted after Jan 16 next year, and do not apply to units that are already built.
The average size of new private dwelling units (including executive condominiums) in the Outside Central Area will have to be at least 85 sq m, a regulatory change that will cut the number of units allowed in a project - something that developers say would sound the death knell for en bloc deals and moderate condo and land prices in the affected areas.
This comes as the URA has observed smaller unit sizes in new private housing projects, which in turn could put pressure on local infrastructure. The revised maximum number of allowable dwelling units will help to manage potential strains on local infrastructure and safeguard the liveability of residential estates, while encouraging developers to provide a more balanced mix of unit sizes to cater to the diverse needs of homebuyers. The 85 sq m and 100 sq m limits reduce the number of units in a development by 18 per cent and 30 per cent respectively, curbing developers' ability to prop up profit margins by launching smaller units. The number of shoebox units entering the market will also come down in the longer term.
New private dwelling units in nine areas (Marine Parade, Joo Chiat-Mountbatten, Telok Kurau-Jalan Eunos, Balestier, Stevens-Chancery, Pasir Panjang, Kovan-How Sun, Shelford and Loyang) will face a stricter criteria of 100 sq m • This will reduce the number of dwelling units by 18% and 30%, respectively
New guidelines may price some buyers out of market: Redas
The revised rules to cut the maximum number of private housing units allowed in a project outside the central area may make private properties out of reach for millennials and retirees and price these buyers out of the market, said the Real Estate Developers' Association of Singapore (Redas). With developers expected to build fewer and bigger units, the overall average prices of new private apartments may rise on reduced future supply, analysts say. The rules kick in for new development applications submitted on or after Jan 17. The move will curb the proliferation of shoebox units and is aimed at reducing potential strains on infrastructure.
New rules on condominium balcony size and width
n the light of a growing trend of oversized condominium balconies, the Urban Redevelopment Authority (URA) moved on Oct 17 to cap balcony sizes for the first time. The URA will impose a limit on the sizes of condominium balcony size in private homes to no more than 15 per cent of the internal floor area of the unit. Balconies must also now have a minimum width of 1.5m so that the outdoor space can be used meaningfully by residents. There are no such limits currently. The rules will come in for new condos with development applications submitted after Jan 16 next year, and do not apply to units that are already built.
Parc Esta is an upcoming new condo formerly Eunosville HUDC. Located 3 mins walk to Eunos MRT
Companies eye Singapore for data centre storage, cloud leasing
More companies are looking to lease existing buildings for data storage, and some tech companies are building their own facilities. With the announcement from Google and Facebook that they are setting up data centres here, this burgeoning new sector has been thrust into the limelight. Across the Asia-Pacific, the data centre market is expected to grow by 27 per cent annually, , and Singapore is set to be a key beneficiary. This wave of demand presents excellent opportunities for investors, creates jobs, and elevates Singapore's status as a tech hub. South-east Asia's rising Internet and social media use, as well as the growth of e-commerce mean that the city-state is becoming a hotbed for tech companies looking to use it as a gateway to enter other markets. Singapore is one of the "Big Four" in the region when it comes to data centres, along with Hong Kong, Sydney and Tokyo. While both Hong Kong and Singapore are popular choices for companies looking to set up headquarters, Singapore has an edge with its stable geopolitical climate, supportive regulatory environment and relatively cheaper land costs. The Singapore government has also prioritised diversity of locations and greenfield availability for data centres, allowing the market to evolve and meet demand.
Skilled workforce key in shaping future of manufacturing in Singapore
Singapore's approach towards Industry 4.0 is "not simply about technology", said Senior Minister for Trade and Industry Koh Poh Koon. At the heart of its manufacturing strategy is how the city-state can better organise itself, and how the workforce and companies can respond more nimbly to rapidly-changing economic and technological trends. One instance of collaboration is the Industrial, Internet of Things, Innovation (I3) Platform established by A*Star as a consortium to develop and accelerate the adoption of Internet-of-Things technologies and solutions by the industry. To date, some 17 companies, including Rolls-Royce and local SME Genesis Networks, have signed a memorandum of understanding (MOU) to establish long-term partnerships with I3. The platform will focus on developing and integrating smart manufacturing technologies such as sensors, industrial data analytics, and cybersecurity.
3D printing facility to be set up at PSA's Pasir Panjang Terminal
The world's first 3D maritime printing facility will be built at PSA's Pasir Panjang Terminal, to create parts that can be used for port equipment. The Maritime and Port Authority of Singapore (MPA) signed an agreement to set up the facility. It will feature state-of-the-art printers and use a specialised maritime digital cloud supported by blockchain technology for increased security of file transfers. With additive manufacturing, customised ship parts such as propellers previously produced by original manufacturers at specific locations can now be printed whenever and wherever needed, at ports-of-call or even on-board ships.
More companies are looking to lease existing buildings for data storage, and some tech companies are building their own facilities. With the announcement from Google and Facebook that they are setting up data centres here, this burgeoning new sector has been thrust into the limelight. Across the Asia-Pacific, the data centre market is expected to grow by 27 per cent annually, , and Singapore is set to be a key beneficiary. This wave of demand presents excellent opportunities for investors, creates jobs, and elevates Singapore's status as a tech hub. South-east Asia's rising Internet and social media use, as well as the growth of e-commerce mean that the city-state is becoming a hotbed for tech companies looking to use it as a gateway to enter other markets. Singapore is one of the "Big Four" in the region when it comes to data centres, along with Hong Kong, Sydney and Tokyo. While both Hong Kong and Singapore are popular choices for companies looking to set up headquarters, Singapore has an edge with its stable geopolitical climate, supportive regulatory environment and relatively cheaper land costs. The Singapore government has also prioritised diversity of locations and greenfield availability for data centres, allowing the market to evolve and meet demand.
Skilled workforce key in shaping future of manufacturing in Singapore
Singapore's approach towards Industry 4.0 is "not simply about technology", said Senior Minister for Trade and Industry Koh Poh Koon. At the heart of its manufacturing strategy is how the city-state can better organise itself, and how the workforce and companies can respond more nimbly to rapidly-changing economic and technological trends. One instance of collaboration is the Industrial, Internet of Things, Innovation (I3) Platform established by A*Star as a consortium to develop and accelerate the adoption of Internet-of-Things technologies and solutions by the industry. To date, some 17 companies, including Rolls-Royce and local SME Genesis Networks, have signed a memorandum of understanding (MOU) to establish long-term partnerships with I3. The platform will focus on developing and integrating smart manufacturing technologies such as sensors, industrial data analytics, and cybersecurity.
3D printing facility to be set up at PSA's Pasir Panjang Terminal
The world's first 3D maritime printing facility will be built at PSA's Pasir Panjang Terminal, to create parts that can be used for port equipment. The Maritime and Port Authority of Singapore (MPA) signed an agreement to set up the facility. It will feature state-of-the-art printers and use a specialised maritime digital cloud supported by blockchain technology for increased security of file transfers. With additive manufacturing, customised ship parts such as propellers previously produced by original manufacturers at specific locations can now be printed whenever and wherever needed, at ports-of-call or even on-board ships.
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Convenience is king among property buyers in Singapore, this much is clear. They want a place to call home, but so much the better if home is part of a larger development where they can shop, run errands and seamlessly connect to the MRT as well. Property buyers are prepared to pony up premiums for projects with that extra value and accessibility, to the tune of anywhere between 7 per cent and 19 per cent within their launch year, compared to new sales of leasehold projects in the same district.
The average selling prices and rents of seven such projects - all leasehold projects - launched since 2007 were studied. All commanded premiums over other leasehold projects in their districts. (Marina One was excluded due to insufficient comparables.) These projects make up less than three per cent of the entire private non-landed residential stock in Singapore of about 294,000 units in Q2, going by Urban Renewal Authority (URA) figures, the report said. Rents also often fetch a premium going by the data in Q2. For instance, the median rent at Orchard Residences in Q2 was S$6.73 psf a month, much higher than the overall median rent of non-landed homes in district 9, which was S$4.42 psf per month.
Resale prices of two of the projects studied - Bedok Residences and The Orchard Residences, both already sold out - have also stayed above the median. For instance, Bedok Residences, which is integrated with Bedok Mall and Bedok MRT, fetched a median resale price of S$1,447 psf between Q1 and Q3 this year; leasehold projects in the area went for S$1,089 psf. Orchard Residences' median resale price was S$3,731 psf - above the S$1,849 psf recorded for leasehold projects in that district.
The average selling prices and rents of seven such projects - all leasehold projects - launched since 2007 were studied. All commanded premiums over other leasehold projects in their districts. (Marina One was excluded due to insufficient comparables.) These projects make up less than three per cent of the entire private non-landed residential stock in Singapore of about 294,000 units in Q2, going by Urban Renewal Authority (URA) figures, the report said. Rents also often fetch a premium going by the data in Q2. For instance, the median rent at Orchard Residences in Q2 was S$6.73 psf a month, much higher than the overall median rent of non-landed homes in district 9, which was S$4.42 psf per month.
Resale prices of two of the projects studied - Bedok Residences and The Orchard Residences, both already sold out - have also stayed above the median. For instance, Bedok Residences, which is integrated with Bedok Mall and Bedok MRT, fetched a median resale price of S$1,447 psf between Q1 and Q3 this year; leasehold projects in the area went for S$1,089 psf. Orchard Residences' median resale price was S$3,731 psf - above the S$1,849 psf recorded for leasehold projects in that district.
Exciting new condominium along Upper Serangoon Road integrated with shopping mall & Woodleigh MRT Station
The potential supply of these developments may not meet the demand of buyers in the coming years, given that there are only three projects in the pipeline.
One is the 667-unit Woodleigh Residences developed by Kajima Development and Singapore Press Holdings, which owns The Business Times. Woodleigh Residences will be linked to a 28,000 sq m retail mall, the Woodleigh Village hawker centre, Alkaff Lake and Heritage Walk; it will also offer direct access to Woodleigh MRT station and to Singapore's first air-conditioned underground bus interchange. The only integrated development in District 13 is likely to command a price premium over the vicinity's new launches.
Also upcoming are the Sengkang Central site won by a Capitaland-CDL joint venture, and a 3.8 ha mixed-use white site in Pasir Ris Central, which is up for tender now. Together, these three projects will generate a potential supply of about 2,000 units that could be sold to end-users over the next few years. Such projects are estimated to cost 5 to 10 per cent more for the convenience offered by their "package of amenities", compared to those in the rest of the district, especially those more than a 10-minute walk away.
One is the 667-unit Woodleigh Residences developed by Kajima Development and Singapore Press Holdings, which owns The Business Times. Woodleigh Residences will be linked to a 28,000 sq m retail mall, the Woodleigh Village hawker centre, Alkaff Lake and Heritage Walk; it will also offer direct access to Woodleigh MRT station and to Singapore's first air-conditioned underground bus interchange. The only integrated development in District 13 is likely to command a price premium over the vicinity's new launches.
Also upcoming are the Sengkang Central site won by a Capitaland-CDL joint venture, and a 3.8 ha mixed-use white site in Pasir Ris Central, which is up for tender now. Together, these three projects will generate a potential supply of about 2,000 units that could be sold to end-users over the next few years. Such projects are estimated to cost 5 to 10 per cent more for the convenience offered by their "package of amenities", compared to those in the rest of the district, especially those more than a 10-minute walk away.
Park Colonial conveniently located beside Woodleigh MRT, future shopping mall & aircon bus interchange
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The top-selling project was JadeScape on the former Shunfu Ville site near the Marymount MRT station
Buyers returned to the market for new private homes, after the immediate hit from the latest cooling measures and with new projects launched after the Hungry Ghost month. Developers sold 932 units in September, up 51 per cent from the 617 units sold in August and nearly 42% higher than the 657 units booked in September last year. The figures were released by the Urban Redevelopment Authority (URA) on Monday (Oct 15), based on its survey of licensed housing developers.
Last month’s top-selling project was the 99-year leasehold JadeScape, which is on the former Shunfu Ville site near the Marymount MRT station, with 327 units sold at a median price of $1,669 per sq ft (psf). Selangor Dredging’s freehold Jui Residences in Serangoon Road - 31 units were transacted at a median price of $1,704 psf. Oxley Holdings sold 82 units at Mayfair Gardens in Rifle Range Road near King Albert Park MRT station had a median price of $1,945 psf. At The Jovell along Flora Drive in the Loyang area, Tripartite Developers moved 41 units at a median price of $1,259 psf last month.
The September sales numbers shows that buyers' knee jerk reaction from the recent ABSD hike in July may have been over since this year's September sales are the highest September new home sales since 2013 and given that the Hungry Ghost Festival continued into the early part of September this year because some buyers avoid entering into property transactions during the festival.
Market confidence seems to have improved with seven new private residential projects launched in September. Previously launched projects such as Stirling Residences, Park Colonial and Riverfront Residences are selling reasonably well at current price levels. September’s number brings total new private homes sales for the first three quarters of the year to a good figure of 7,220 units.
While demand exuberance is restrained by existing measures, developers are also observed to be phasing out their launches, drip-feeding the market with supply so as to react to market movements accordingly as the tighter financing rules and higher additional buyers’ stamp duty (ABSD) of up to 20 per cent for foreign buyers have clipped foreign buying interest further.
Last month’s top-selling project was the 99-year leasehold JadeScape, which is on the former Shunfu Ville site near the Marymount MRT station, with 327 units sold at a median price of $1,669 per sq ft (psf). Selangor Dredging’s freehold Jui Residences in Serangoon Road - 31 units were transacted at a median price of $1,704 psf. Oxley Holdings sold 82 units at Mayfair Gardens in Rifle Range Road near King Albert Park MRT station had a median price of $1,945 psf. At The Jovell along Flora Drive in the Loyang area, Tripartite Developers moved 41 units at a median price of $1,259 psf last month.
The September sales numbers shows that buyers' knee jerk reaction from the recent ABSD hike in July may have been over since this year's September sales are the highest September new home sales since 2013 and given that the Hungry Ghost Festival continued into the early part of September this year because some buyers avoid entering into property transactions during the festival.
Market confidence seems to have improved with seven new private residential projects launched in September. Previously launched projects such as Stirling Residences, Park Colonial and Riverfront Residences are selling reasonably well at current price levels. September’s number brings total new private homes sales for the first three quarters of the year to a good figure of 7,220 units.
While demand exuberance is restrained by existing measures, developers are also observed to be phasing out their launches, drip-feeding the market with supply so as to react to market movements accordingly as the tighter financing rules and higher additional buyers’ stamp duty (ABSD) of up to 20 per cent for foreign buyers have clipped foreign buying interest further.
The Jui Residences is the latest freehold condo launch at Serangoon Road (District 8), near to Potong Pasir MRT
Singapore outclasses Hong Kong when it comes to average home size
Singapore issued on Wednesday (17 Oct 2018) stricter guidelines raising the average size of private flats to 85 sq metres from 70 sq metres. Singapore puts Hong Kong to shame with average home sizes in the private market that are three times larger, or 915 sq ft, compared with the 300 sq ft stipulated by Hong Kong’s Urban Renewal Authority.
Hong Kong desperately needs a restriction on the minimum size of flats according to Hong Kong's citizens. Hong Kong’s tiniest flats start at 123 sq ft – less than the size of a parking space – prompting some to call on Chief Executive Carrie Lam Cheng Yuet-ngor to stop the practice.
In Hong Kong, many developers in recent years have started building tiny flats, often less than 200 sq ft, as home prices rose. Some experts feel that “such small spaces do not match the government’s intention to create a liveable city of high density. It also raises the question whether we have made good use of our land resources”. Developers in Hong Kong, the world’s most expensive property market, are building smaller flats as home prices rose to an average HK$13,561 a square foot, compared to a median monthly income of HK$16,800.
Singapore issued on Wednesday (17 Oct 2018) stricter guidelines raising the average size of private flats to 85 sq metres from 70 sq metres. Singapore puts Hong Kong to shame with average home sizes in the private market that are three times larger, or 915 sq ft, compared with the 300 sq ft stipulated by Hong Kong’s Urban Renewal Authority.
Hong Kong desperately needs a restriction on the minimum size of flats according to Hong Kong's citizens. Hong Kong’s tiniest flats start at 123 sq ft – less than the size of a parking space – prompting some to call on Chief Executive Carrie Lam Cheng Yuet-ngor to stop the practice.
In Hong Kong, many developers in recent years have started building tiny flats, often less than 200 sq ft, as home prices rose. Some experts feel that “such small spaces do not match the government’s intention to create a liveable city of high density. It also raises the question whether we have made good use of our land resources”. Developers in Hong Kong, the world’s most expensive property market, are building smaller flats as home prices rose to an average HK$13,561 a square foot, compared to a median monthly income of HK$16,800.
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Parc Esta - upcoming new condo formerly Eunosville HUDC located around 3 mins walk from Eunos MRT
S'pore is ranked best place globally for expats
Singapore has topped the rankings as the best place for expatriates to live and work for the fourth year in a row. It secured the top spot by doing well in the three main categories - coming third for economics, fifth for families and sixth for experience. The annual HSBC survey polled 22,318 expats around the world, including about 500 here, in March and April. It found that 45 per cent of those in Singapore said they initially moved here to progress their careers, higher than the global average of 35 per cent, while 38 per cent did so to improve their earnings.
The global average was 24 per cent. It was not all the lure of money though - around 25 per cent said they moved here simply because they wanted a challenge. As far as pay goes, the highest expat salaries were in Switzerland, the United States and Hong Kong. Expats here earned an average of US$162,200 (S$224,000), about US$56,000 more than the global average, placing Singapore in fifth place. Sweden was top for family; while New Zealand, Spain and Taiwan scored highest in the experience category.
MAS watching property market after curbs
Singapore's central bank is keeping a close eye on the property market after the city-state took a "decisive set of measures" three months ago to cool things down. "It's too early to tell what the implications from the last round of tightening measures are," Ravi Menon, managing director at the Monetary Authority of Singapore, said. "It will take at least two to three quarters for the full implications to be understood. So we are watching that closely." The extra measures appear to be taking effect, with home prices growing at the slowest pace in five quarters in the three months through September, while bulk sales of condominium buildings have collapsed. Singapore has one of the world's highest rates of home ownership at about 90 per cent.
Russian cybersecurity firm Group-IB to move global HQ to Singapore
Moscow-based firm Group-IB has spent close to a decade fighting and investigating cybercrime in countries all over the world. Now, the company is training its sights on Singapore as the catalyst for an expansion into South-east Asia. In fact, Group-IB is so confident of Singapore's potential that by the end of this year, the city will be where the new global headquarters is based. The company is in the midst of moving its intellectual property to Singapore, and the plan is to have 90 staff - comprising 15 from Moscow and the rest hired locally - here in two years' time. It is also targeting to hit a 100 per cent year-on-year growth in international revenue once it announces a new technology in Singapore next year. The new technology will offer a different perspective on cyber detection methods and reduce costs for organisations.
US telco CenturyLink to open security ops centre in S'pore
American telecommunications company CenturyLink said that it will be opening a new security operations centre in Singapore by early next year. This is part of efforts to better address the cyber security needs of its Asia-Pacific enterprise customers. CenturyLink operates seven security operations centres around the world in locations including Denver in the United States and London. The one coming up in Singapore will be its eighth.
Singapore has topped the rankings as the best place for expatriates to live and work for the fourth year in a row. It secured the top spot by doing well in the three main categories - coming third for economics, fifth for families and sixth for experience. The annual HSBC survey polled 22,318 expats around the world, including about 500 here, in March and April. It found that 45 per cent of those in Singapore said they initially moved here to progress their careers, higher than the global average of 35 per cent, while 38 per cent did so to improve their earnings.
The global average was 24 per cent. It was not all the lure of money though - around 25 per cent said they moved here simply because they wanted a challenge. As far as pay goes, the highest expat salaries were in Switzerland, the United States and Hong Kong. Expats here earned an average of US$162,200 (S$224,000), about US$56,000 more than the global average, placing Singapore in fifth place. Sweden was top for family; while New Zealand, Spain and Taiwan scored highest in the experience category.
MAS watching property market after curbs
Singapore's central bank is keeping a close eye on the property market after the city-state took a "decisive set of measures" three months ago to cool things down. "It's too early to tell what the implications from the last round of tightening measures are," Ravi Menon, managing director at the Monetary Authority of Singapore, said. "It will take at least two to three quarters for the full implications to be understood. So we are watching that closely." The extra measures appear to be taking effect, with home prices growing at the slowest pace in five quarters in the three months through September, while bulk sales of condominium buildings have collapsed. Singapore has one of the world's highest rates of home ownership at about 90 per cent.
Russian cybersecurity firm Group-IB to move global HQ to Singapore
Moscow-based firm Group-IB has spent close to a decade fighting and investigating cybercrime in countries all over the world. Now, the company is training its sights on Singapore as the catalyst for an expansion into South-east Asia. In fact, Group-IB is so confident of Singapore's potential that by the end of this year, the city will be where the new global headquarters is based. The company is in the midst of moving its intellectual property to Singapore, and the plan is to have 90 staff - comprising 15 from Moscow and the rest hired locally - here in two years' time. It is also targeting to hit a 100 per cent year-on-year growth in international revenue once it announces a new technology in Singapore next year. The new technology will offer a different perspective on cyber detection methods and reduce costs for organisations.
US telco CenturyLink to open security ops centre in S'pore
American telecommunications company CenturyLink said that it will be opening a new security operations centre in Singapore by early next year. This is part of efforts to better address the cyber security needs of its Asia-Pacific enterprise customers. CenturyLink operates seven security operations centres around the world in locations including Denver in the United States and London. The one coming up in Singapore will be its eighth.
Park Colonial is beside Woodleigh MRT in the new satellite town of Bidadari opposite an upcoming shopping mall
Singapore tops World Bank human capital study
The World Bank launched its inaugural Human Capital Index, which ranks countries according to how well they are developing their human capital based on five indicators: the probability of survival to age five, a child's expected years of schooling, test scores, adult survival rate and the proportion of children aged under five who suffer from stunted growth. Singapore topped the ranking: children born in the Republic today can be expected to fulfil 88 per cent of their potential to be productive when they grow up, given that they get a full education and enjoy good health. The Human Capital Index found that around 56 per cent of all children born today will lose more than half of their potential lifetime earnings if governments do not take appropriate steps to prepare for healthy and educated populations.
S$105.3m Nassim deal is highest for GCBs
In what is believed to be the biggest transaction in absolute price terms in a Good Class Bungalow (GCB) Area, a two-storey bungalow in Nassim Road near the Botanic Gardens was transacted earlier this year for S$105.3 million. This works out to S$2,477 psf on the freehold land area of 42,515 sq ft in the plush locale. The buyer is Tony Tung, the Singaporean chairman of Winson Group, which is involved in oil trading, marine bunkering and oil storage and terminal facilities. Based on caveats data, 13 properties in GCB Areas have been sold for a total of nearly S$354 million in the third quarter of this year - higher than the S$169 million in Q2 this year and S$123 million in Q3 last year. For the first nine months of this year, the tally stands at S$773 million - surpassing the S$587 million in the same period of 2017. Industry players note that for the first nine months of 2018, in addition to the S$773 million in caveated deals, there have been at least S$215 million in transactions completed in the same period for which caveats were not lodged by buyers.
Lim Kim San estate sells Dalvey Rd GCB site for S$93.9m
The estate of the late Lim Kim San has sold a freehold Good-Class Bungalow along Dalvey Road for S$93.9 million - or S$1,804 psf based on the 52,059 sq ft land area. The elevated site is large enough to be redeveloped into three bungalows. The buyer is understood to be a Singaporean member of the Tsai family of Taiwan. The family controls Homax Equity, a vehicle that its founder, billionaire Tsai Tseng Yu, has used to make real-estate investments since he struck out on his own in 2010, after having sold his shares in Cathay Financial Holding to his brothers. The Dalvey Road deal takes the tally to 13 transactions totalling about S$354 million in GCB areas in the third quarter of this year - higher than the eight transactions adding up to S$169.1 million in Q2 this year; in the year-ago quarter, there were seven deals amounting to S$123.1 million. The tally for the first nine months of this year is S$773.1 million - and this excludes a string of deals in GCB areas that were completed this year without caveats being lodged by their respective buyers.
The World Bank launched its inaugural Human Capital Index, which ranks countries according to how well they are developing their human capital based on five indicators: the probability of survival to age five, a child's expected years of schooling, test scores, adult survival rate and the proportion of children aged under five who suffer from stunted growth. Singapore topped the ranking: children born in the Republic today can be expected to fulfil 88 per cent of their potential to be productive when they grow up, given that they get a full education and enjoy good health. The Human Capital Index found that around 56 per cent of all children born today will lose more than half of their potential lifetime earnings if governments do not take appropriate steps to prepare for healthy and educated populations.
S$105.3m Nassim deal is highest for GCBs
In what is believed to be the biggest transaction in absolute price terms in a Good Class Bungalow (GCB) Area, a two-storey bungalow in Nassim Road near the Botanic Gardens was transacted earlier this year for S$105.3 million. This works out to S$2,477 psf on the freehold land area of 42,515 sq ft in the plush locale. The buyer is Tony Tung, the Singaporean chairman of Winson Group, which is involved in oil trading, marine bunkering and oil storage and terminal facilities. Based on caveats data, 13 properties in GCB Areas have been sold for a total of nearly S$354 million in the third quarter of this year - higher than the S$169 million in Q2 this year and S$123 million in Q3 last year. For the first nine months of this year, the tally stands at S$773 million - surpassing the S$587 million in the same period of 2017. Industry players note that for the first nine months of 2018, in addition to the S$773 million in caveated deals, there have been at least S$215 million in transactions completed in the same period for which caveats were not lodged by buyers.
Lim Kim San estate sells Dalvey Rd GCB site for S$93.9m
The estate of the late Lim Kim San has sold a freehold Good-Class Bungalow along Dalvey Road for S$93.9 million - or S$1,804 psf based on the 52,059 sq ft land area. The elevated site is large enough to be redeveloped into three bungalows. The buyer is understood to be a Singaporean member of the Tsai family of Taiwan. The family controls Homax Equity, a vehicle that its founder, billionaire Tsai Tseng Yu, has used to make real-estate investments since he struck out on his own in 2010, after having sold his shares in Cathay Financial Holding to his brothers. The Dalvey Road deal takes the tally to 13 transactions totalling about S$354 million in GCB areas in the third quarter of this year - higher than the eight transactions adding up to S$169.1 million in Q2 this year; in the year-ago quarter, there were seven deals amounting to S$123.1 million. The tally for the first nine months of this year is S$773.1 million - and this excludes a string of deals in GCB areas that were completed this year without caveats being lodged by their respective buyers.
Riverfront Residences - attractively priced new condo in Hougang matured estate overlooking Serangoon River
En bloc sales in Singapore cool after July property curbs
Singapore residential-property investment sales have fallen after the latest round of housing curbs put the brakes on en bloc redevelopment deals. Just two redevelopment sales worth S$353 million were completed in the third quarter, down from S$3.8 billion of transactions the previous quarter. Commercial and industrial property helped prop up investment sales. Office sales rose 54 per cent to S$2.1 billion last quarter, and industrial property deals jumped 73 per cent to S$1.2 billion.
Tulip Garden sale proceeding
The marketing agent for Tulip Garden, has quashed speculation that the S$906 million en bloc sale of the Farrer Road project has hit a speed bump. The market talk centred on the sale being scuppered because the number of residential units being planned by buyer Asia Radiant had not been approved by the authorities. In an announcement in April this year when the bid was awarded, China developer Yanlord said the site could yield up to 670 residential units with a plot ratio of 1.6. The redeveloped project is slated for completion by 2023. The deal marks Yanlord's maiden entry into Singapore's prime freehold residential property market.
Lafe Corp calls off Fairhaven deal, forfeiting deposit in aborted collective sale
Developer Lafe Corp has backed out of efforts to buy the Fairhaven condominium, on factors such as property cooling measures and expectations of interest rate hikes. Lafe Corp, which picked up the 15-unit freehold project in Sophia Road in a S$57 million collective sale in March, is forfeiting its deposit. The sellers have already been informed of the company's decision. Lafe Corp is not the first buyer to drop out of a collective sale after the cooling measures kicked in. Tee Land decided in July that it would not exercise its option to purchase Teck Guan Ville for S$60 million, and instead cut its losses with the forfeiture of a one per cent deposit.
People's Park Centre owners to vote on collective sale bid
People's Park Centre owners will be voting on whether to accept a reserve price of $1.3 billion, which analysts say is the highest so far for a mixed-use collective sale in this cycle. At an extraordinary general meeting (EOGM) on Oct 23, they will decide whether to accept the reserve price and method of apportionment for their first collective sale attempt. The development, which has 120 apartments, 256 offices, 324 shops and a carpark, has 51 years left on its lease. Apartment owners each stand to get between $1.83 million and $4.07 million; office owners, between $419,000 and $3.129 million; and shop owners, from $139,000 to $15.9 million. The owner of the carpark stands to get $55 million.
Rochor's Golden Wall Centre hits en-bloc market again
Golden Wall Centre has launched its second attempt at a collective sale, with a reserve price of S$260 million - little changed from what the strata unit owners wanted in a 2016 bid. This works out to a land price of S$2,194 psf ppr for the freehold commercial property at 89, Short Street in Rochor, which is zoned for commercial use. The building, which is slightly more than 100 metres from Rochor MRT station, occupies a 24,239 sq ft site with a gross floor area of about 118,488 sq ft, for a plot ratio of 4.88. The tender closes on Nov 23.
59 shop units in Ming Arcade up for sale en bloc at $51m
Dozens of shops in a commercial building in the prime Orchard area are up for collective sale. The guide price for the 59 units in Ming Arcade - a freehold strata-titled block near the junction of Orchard and Cuscaden roads - is $51 million, or about $4,470 per sq ft. Ming Arcade, which was completed in the 1980s, has a total of 88 units on 10 floors, including three basement levels. Located in the Orchard Road shopping belt, it is near a number of private medical facilities, including the Camden and Gleneagles medical centres. The 59 units make up nearly a third of the development's total share value. The units range in size from 140 sq ft to 334 sq ft, and their combined strata floor area is about 11,410 sq ft. Ming Arcade is on a 12,132 sq ft site, with a gross plot ratio of 4.2 and a maximum height of 20 floors. No development charge is payable up to the approved gross floor area of 55,046 sq ft for commercial use.
Singapore residential-property investment sales have fallen after the latest round of housing curbs put the brakes on en bloc redevelopment deals. Just two redevelopment sales worth S$353 million were completed in the third quarter, down from S$3.8 billion of transactions the previous quarter. Commercial and industrial property helped prop up investment sales. Office sales rose 54 per cent to S$2.1 billion last quarter, and industrial property deals jumped 73 per cent to S$1.2 billion.
Tulip Garden sale proceeding
The marketing agent for Tulip Garden, has quashed speculation that the S$906 million en bloc sale of the Farrer Road project has hit a speed bump. The market talk centred on the sale being scuppered because the number of residential units being planned by buyer Asia Radiant had not been approved by the authorities. In an announcement in April this year when the bid was awarded, China developer Yanlord said the site could yield up to 670 residential units with a plot ratio of 1.6. The redeveloped project is slated for completion by 2023. The deal marks Yanlord's maiden entry into Singapore's prime freehold residential property market.
Lafe Corp calls off Fairhaven deal, forfeiting deposit in aborted collective sale
Developer Lafe Corp has backed out of efforts to buy the Fairhaven condominium, on factors such as property cooling measures and expectations of interest rate hikes. Lafe Corp, which picked up the 15-unit freehold project in Sophia Road in a S$57 million collective sale in March, is forfeiting its deposit. The sellers have already been informed of the company's decision. Lafe Corp is not the first buyer to drop out of a collective sale after the cooling measures kicked in. Tee Land decided in July that it would not exercise its option to purchase Teck Guan Ville for S$60 million, and instead cut its losses with the forfeiture of a one per cent deposit.
People's Park Centre owners to vote on collective sale bid
People's Park Centre owners will be voting on whether to accept a reserve price of $1.3 billion, which analysts say is the highest so far for a mixed-use collective sale in this cycle. At an extraordinary general meeting (EOGM) on Oct 23, they will decide whether to accept the reserve price and method of apportionment for their first collective sale attempt. The development, which has 120 apartments, 256 offices, 324 shops and a carpark, has 51 years left on its lease. Apartment owners each stand to get between $1.83 million and $4.07 million; office owners, between $419,000 and $3.129 million; and shop owners, from $139,000 to $15.9 million. The owner of the carpark stands to get $55 million.
Rochor's Golden Wall Centre hits en-bloc market again
Golden Wall Centre has launched its second attempt at a collective sale, with a reserve price of S$260 million - little changed from what the strata unit owners wanted in a 2016 bid. This works out to a land price of S$2,194 psf ppr for the freehold commercial property at 89, Short Street in Rochor, which is zoned for commercial use. The building, which is slightly more than 100 metres from Rochor MRT station, occupies a 24,239 sq ft site with a gross floor area of about 118,488 sq ft, for a plot ratio of 4.88. The tender closes on Nov 23.
59 shop units in Ming Arcade up for sale en bloc at $51m
Dozens of shops in a commercial building in the prime Orchard area are up for collective sale. The guide price for the 59 units in Ming Arcade - a freehold strata-titled block near the junction of Orchard and Cuscaden roads - is $51 million, or about $4,470 per sq ft. Ming Arcade, which was completed in the 1980s, has a total of 88 units on 10 floors, including three basement levels. Located in the Orchard Road shopping belt, it is near a number of private medical facilities, including the Camden and Gleneagles medical centres. The 59 units make up nearly a third of the development's total share value. The units range in size from 140 sq ft to 334 sq ft, and their combined strata floor area is about 11,410 sq ft. Ming Arcade is on a 12,132 sq ft site, with a gross plot ratio of 4.2 and a maximum height of 20 floors. No development charge is payable up to the approved gross floor area of 55,046 sq ft for commercial use.
The add+ition apartment is a rare freehold city fringe project within 3 mins walk to Potong Pasir MRT
Punggol residents to get integrated town hub in 2021
Punggol residents can look forward to new amenities, such as a hawker centre and regional library, coming under one roof when the Punggol Town Hub opens in 2021. Other amenities include a childcare centre and healthcare facilities. In addition, there will be a revamped Punggol Vista Community Centre, which will be about seven times the size of the current void deck community centre. The hub will be located opposite Waterway Point shopping mall and next to the upcoming Punggol Regional Sports Centre. When completed, it will be connected to Punggol MRT station via a linear green park, and to the Punggol Regional Sports Centre via a pedestrian overhead bridge. The cycling path around the hub will also integrate with the larger cycling network in Punggol.
HDB ethnic quota: Tough sell for owners of minority race
When account director Vijeshwariee Yoganathanput her five-room flat in Redhill Road up for sale in October last year, she thought she would have no problem selling it within a few months, given that it was opposite an MRT station and on the 26th storey. However, after 10 fruitless months, only one offer came in. Ms Vijeshwariee, 37, eventually sold her flat at $813,000 last month - more than $60,000 below the average price of about $880,000 that other five-room flats on high floors in the vicinity had fetched over the past five months. She believes the reason is that her block had reached the ethnic quota for Chinese residents. That meant she was able to sell the flat to only people from minority races, a factor that significantly reduced the pool of potential buyers. More attention is being focused now on home owners like her who have been affected by the Ethnic Integration Policy (EIP), which specifies the proportion of units in an HDB block and precinct that can be owned by a particular racial group to ensure a balanced mix. More minority flat owners could be facing such issues now. An analyst noted that 30 per cent of HDB blocks had reached at least one ethnic quota as of July this year, up from 27.9 per cent in 2016 and 24.4 per cent in 1989, when the EIP was implemented.
Mixing rental and purchased flats
The Straits Times understands that at least five rental blocks that are integrated into a neighbourhood have been built since 2008. Two are in Tampines, and the other three in Bishan, Punggol and Pasir Ris. Opportunities to encourage social mixing across classes, and reduce class stigma, are set to expand with Build-To-Order (BTO) project Marsiling Greenview in Woodlands Street 13, which was completed a few months ago. It is the only public housing project here that integrates rental and sold flat units in the same block, with two other BTO projects - in Bukit Batok and Sengkang - due to be completed in the next few years. ST interviewed 20 residents of rental blocks that are integrated into the community and found mixed views about such attempts at integration. Nine of them believe that mixing has benefits. The rest of the residents interviewed were either against such integration, or had mixed feelings.
Punggol residents can look forward to new amenities, such as a hawker centre and regional library, coming under one roof when the Punggol Town Hub opens in 2021. Other amenities include a childcare centre and healthcare facilities. In addition, there will be a revamped Punggol Vista Community Centre, which will be about seven times the size of the current void deck community centre. The hub will be located opposite Waterway Point shopping mall and next to the upcoming Punggol Regional Sports Centre. When completed, it will be connected to Punggol MRT station via a linear green park, and to the Punggol Regional Sports Centre via a pedestrian overhead bridge. The cycling path around the hub will also integrate with the larger cycling network in Punggol.
HDB ethnic quota: Tough sell for owners of minority race
When account director Vijeshwariee Yoganathanput her five-room flat in Redhill Road up for sale in October last year, she thought she would have no problem selling it within a few months, given that it was opposite an MRT station and on the 26th storey. However, after 10 fruitless months, only one offer came in. Ms Vijeshwariee, 37, eventually sold her flat at $813,000 last month - more than $60,000 below the average price of about $880,000 that other five-room flats on high floors in the vicinity had fetched over the past five months. She believes the reason is that her block had reached the ethnic quota for Chinese residents. That meant she was able to sell the flat to only people from minority races, a factor that significantly reduced the pool of potential buyers. More attention is being focused now on home owners like her who have been affected by the Ethnic Integration Policy (EIP), which specifies the proportion of units in an HDB block and precinct that can be owned by a particular racial group to ensure a balanced mix. More minority flat owners could be facing such issues now. An analyst noted that 30 per cent of HDB blocks had reached at least one ethnic quota as of July this year, up from 27.9 per cent in 2016 and 24.4 per cent in 1989, when the EIP was implemented.
Mixing rental and purchased flats
The Straits Times understands that at least five rental blocks that are integrated into a neighbourhood have been built since 2008. Two are in Tampines, and the other three in Bishan, Punggol and Pasir Ris. Opportunities to encourage social mixing across classes, and reduce class stigma, are set to expand with Build-To-Order (BTO) project Marsiling Greenview in Woodlands Street 13, which was completed a few months ago. It is the only public housing project here that integrates rental and sold flat units in the same block, with two other BTO projects - in Bukit Batok and Sengkang - due to be completed in the next few years. ST interviewed 20 residents of rental blocks that are integrated into the community and found mixed views about such attempts at integration. Nine of them believe that mixing has benefits. The rest of the residents interviewed were either against such integration, or had mixed feelings.
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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.
V On Shenton in the heart of Tanjong Pagar at District 02, recently TOP in 2017 is ideal for city dwellers
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”.
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”.
Marina One Residences - multi- award winning iconic luxury development in the heart of 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.
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.
South Beach Residences - luxurious condo beside Suntec City with unrivalled connectivity - ultimate city living.
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.
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.
Own a luxury home in Singapore's tallest residential condo in the heart of Tanjong Pagar - Wallich Residences
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.
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.
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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.
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.
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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.
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.
Jade Scape (formerly Shunfu Ville) is an upcoming condominium at Shunfu Road by Qing Jian Realty
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.
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.
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.
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.
