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As we welcome 2018 in the next few days, some developers are likely to have to reach for record prices next year in order to break even on some of those en bloc deals this year.
Analysts say the unsold stock of residential property is not all that high by historical standards. Unsold residential stock has fallen by more than half, from more than 44,000 units in 2008 to 17,421 units as at 3Q2017 according to statistics from URA.
Analysts say the unsold stock of residential property is not all that high by historical standards. Unsold residential stock has fallen by more than half, from more than 44,000 units in 2008 to 17,421 units as at 3Q2017 according to statistics from URA.
Developer sales volume reached 8,702 units in the first three quarters of 2017 and could end the year at the 10,500-to-11,000-unit level. If this buying momentum is sustained into 2018 and 2019, the unsold stock of 17,421 units would be depleted in less than two years.
Unsold inventory levels of 17,000 units are near 18-year lows, and we agree they could rise as more units — 20,000 by MAS estimates — are launched in the next one to two years. Analysts felt the pace of increase will be partially offset by home purchases, which are tracking at 12,000 units in the past 12 months.
Some market watchers suggest that developers have chosen to replenish their landbanks by aggressively bidding for en bloc sites because there has been a reduction in the number of sites released under the Government Land Sales programme in recent years.
Unsold inventory levels of 17,000 units are near 18-year lows, and we agree they could rise as more units — 20,000 by MAS estimates — are launched in the next one to two years. Analysts felt the pace of increase will be partially offset by home purchases, which are tracking at 12,000 units in the past 12 months.
Some market watchers suggest that developers have chosen to replenish their landbanks by aggressively bidding for en bloc sites because there has been a reduction in the number of sites released under the Government Land Sales programme in recent years.
The recent GLS sites released by URA for the 1st half of 2018 could result in diverting some demand away from the collective sale market but not necessarily stop land prices from getting pushed up as the surge in en bloc deals is simply a reflection of the market working as property developers sense a coming upturn in demand due to the strong pickup in sales this year.
On Nov 30, URA announced the launch of four sites for sale. Two sites, on Holland Road and Handy Road, were launched for sale under the Confirmed List. Another two sites, on Mattar Road and Canberra Drive, were made available for application under the Reserve List. Together, these four sites can yield about 1,720 residential units, URA said.
The surge in land prices was not just the result of developers needing to replenish their landbanks but also the big stock market rally as the stock market in Singapore and regionally have done well in 2017. At the end of the day, demand and supply will dictate market forces will balance the property market.
On Nov 30, URA announced the launch of four sites for sale. Two sites, on Holland Road and Handy Road, were launched for sale under the Confirmed List. Another two sites, on Mattar Road and Canberra Drive, were made available for application under the Reserve List. Together, these four sites can yield about 1,720 residential units, URA said.
The surge in land prices was not just the result of developers needing to replenish their landbanks but also the big stock market rally as the stock market in Singapore and regionally have done well in 2017. At the end of the day, demand and supply will dictate market forces will balance the property market.
Are home prices vulnerable? - December 4, 2017 - Edgeprop
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As a show of investor confidence towards future outlook for the Singapore office market, property firm Oxley Holdings announced that they are buying the iconic Raffles Place building Chevron House for $660 million, helping the local office market end the year with a bang.
The mainboard-listed company is acquiring the 32-storey building from Deka Singapore, a unit of Germany's DekaBank Group. Oxley intends to renovate the commercially zoned site. The office tower has a net lettable area of about 215,667 sq ft while the retail area is around 45,613 sq ft. The acquisition is expected to be completed by late March.
Oxley continues to expand its Singapore residential landbank; it has been awarded the collective sale of Vista Park at S$418 million, which works out to about S$1,096 per square foot per plot ratio, inclusive of an estimated S$72 million payable to the state to top up the site's lease to 99 years.
The mainboard-listed company is acquiring the 32-storey building from Deka Singapore, a unit of Germany's DekaBank Group. Oxley intends to renovate the commercially zoned site. The office tower has a net lettable area of about 215,667 sq ft while the retail area is around 45,613 sq ft. The acquisition is expected to be completed by late March.
Oxley continues to expand its Singapore residential landbank; it has been awarded the collective sale of Vista Park at S$418 million, which works out to about S$1,096 per square foot per plot ratio, inclusive of an estimated S$72 million payable to the state to top up the site's lease to 99 years.
Chevron House, formerly called Caltex House, is a high-rise skyscraper located in the central business district of Singapore at 30 Raffles Place, in the financial district of Raffles Place. Completed in 1993 with direct access to Raffles Place MRT station, it has 27 levels of office space and five for retail outlets and 96 carpark spaces in the two basement levels.
The sale of Chevron House is the last of a few major office sales in 2017 including PWC Building at S$746.8 million, GSH Plaza at S$663.5 million, Asia Square Tower 2 at S$2.09 billion and 50 per cent of One George Street at S$591.6 million.
V on Shenton is situated in Shenton Way near Tanjong Pagar MRT, Marina Bay MRT and Raffles Place MRT
Urban Redevelopment Authority (URA) revealed on 15 Dec 2017 (Friday) that developers sold 785 private homes in November 2017, this figure is higher than the previous month in Oct 2017. These figures exclude executive condominium (EC) units.
The URA's data, compiled from its survey of licensed housing developers, also showed that developers found buyers for 148 EC units last month, lower than the 211 units in October and the 251 units in November last year. This could be due to lesser units of ECs available in the market.
The URA's data, compiled from its survey of licensed housing developers, also showed that developers found buyers for 148 EC units last month, lower than the 211 units in October and the 251 units in November last year. This could be due to lesser units of ECs available in the market.
Parc Botannia in Sengkang by Sing Holdings and Wee Hur Holdings sold 230 units on its first weekend of launch
Developers also moved units in earlier launched projects. Hao Yuan Investment sold 71 units last month at the Queens Peak condo next to Queenstown MRT Station at a median price of S$1,694 per square foot (psf).
Kingsford Property Development sold 38 units at its Upper Serangoon View project Kingsford Waterbay at a median price of S$1,346 psf.
GuocoLand moved 35 units at Sims Urban Oasis at a median price of S$1,508 psf.
In Lorong 5 Toa Payoh, the developers of Gem Residences transacted 34 units at a S$1,517 psf median price.
Kingsford Property Development sold 38 units at its Upper Serangoon View project Kingsford Waterbay at a median price of S$1,346 psf.
GuocoLand moved 35 units at Sims Urban Oasis at a median price of S$1,508 psf.
In Lorong 5 Toa Payoh, the developers of Gem Residences transacted 34 units at a S$1,517 psf median price.
'Oxley Holdings buys Chevron House' article on Straits Times Published on Dec 15, 2017 & 'Developers sell 785 private homes excluding ECs in Nov, up from 760 units in Oct: URA' article on Business Times - Fri, Dec 15, 2017
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The Government has decided to keep the total supply of units for 1H2018 at about the same level as the supply of units from the 2H2017 GLS Programme as they announced on 13 Dec 2017, the first half 2018 (1H2018) Government Land Sales (GLS) Programme, which comprises six Confirmed List sites and nine Reserve List sites. These sites can yield about 8,045 private residential units and 63,960 sqm gross floor area (GFA) of commercial space.
The six Confirmed List sites are private residential sites [including one Executive Condominium (EC) site] which can yield 2,775 private dwelling units (including 450 EC units) and 4,450 sqm GFA of commercial space.
The Reserve List comprises eight private residential sites (including two EC sites) and one commercial site. These sites can yield 5,270 private dwelling units (including 1,255 EC units) and 59,510 sqm GFA of commercial space, mostly for office use.
The six Confirmed List sites are private residential sites [including one Executive Condominium (EC) site] which can yield 2,775 private dwelling units (including 450 EC units) and 4,450 sqm GFA of commercial space.
The Reserve List comprises eight private residential sites (including two EC sites) and one commercial site. These sites can yield 5,270 private dwelling units (including 1,255 EC units) and 59,510 sqm GFA of commercial space, mostly for office use.
Collective sale sites with strong attributes and are well located will continue to appeal to developers
The conservative stance is partly due to the large volume of redevelopment land freed up by the rash of collective sales this year, therefore the Government is adhering to its cautious approach on the supply front.
This will be adequate to meet the purchase demand for new private housing from home buyers over the next one to two years. The land releases in the first half of 2018 provides varied options for developers in terms of location and will complement offerings on the collective sale market. Analysts believe collective sale sites that have strong attributes and are well located will continue to appeal to developers and future home buyers.
This will be adequate to meet the purchase demand for new private housing from home buyers over the next one to two years. The land releases in the first half of 2018 provides varied options for developers in terms of location and will complement offerings on the collective sale market. Analysts believe collective sale sites that have strong attributes and are well located will continue to appeal to developers and future home buyers.
The confirmed list of land parcels include a parcel in Dairy Farm Road that can generate about 500 units and 4,000 sq m of commercial space, and a plot in Jalan Jurong Kechil that can yield about 280 homes. The sole EC site on the confirmed list is in Canberra Link in the Sembawang area.
The reserve list will offer eight residential sites, including two for ECs, and one commercial plot. These can yield 5,270 private homes - 1,255 EC units among them - and 59,510 sq m GFA of commercial space. The commercial site at Woodlands Square is for a mixed-use development comprising mainly office space. This site will allow developers to initiate the development of more office space if they assess that there is demand.
The two other reserve EC sites are in Tampines Avenue 10 and Anchorvale Crescent.
The 6 confirmed list sites are launched according to schedule regardless of demand. However, the 9 reserve-list sites will only be launched only upon successful application by a developer or when there is sufficient market interest in a site.
The reserve list will offer eight residential sites, including two for ECs, and one commercial plot. These can yield 5,270 private homes - 1,255 EC units among them - and 59,510 sq m GFA of commercial space. The commercial site at Woodlands Square is for a mixed-use development comprising mainly office space. This site will allow developers to initiate the development of more office space if they assess that there is demand.
The two other reserve EC sites are in Tampines Avenue 10 and Anchorvale Crescent.
The 6 confirmed list sites are launched according to schedule regardless of demand. However, the 9 reserve-list sites will only be launched only upon successful application by a developer or when there is sufficient market interest in a site.
No change in land supply for private homes in first-half 2018 - Straits Times Online, 13 Dec 2017
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As of today, there are currently a handful of enbloc developments awaiting tenders to close and to know which developer are keen to buy over their development for rebuilding. We have identified top 5 enbloc developments with the most attractive locations among available enbloc sites currently in the market:
Jervois Green
JERVOIS Green is going enbloc with a S$48 million asking price for the freehold development, sitting on a 27,356 sq ft site, works out to S$1,373 per sq ft (psf) per plot ratio (ppr). The eight-apartment project could be turned into a 43-unit redevelopment, subject to approval. A development charge of S$9.865 million is payable for the site at 100A, Jervois Road, which is zoned for residential use with a plot ratio of 1.4.
Derby Court
Owners of the Derby Court condominium near the Novena neighbourhood have launched a public tender for collective sale, with a reserve price of S$62 million. The reserve price works out to S$1,168 per square foot (psf) per plot ratio (ppr). This is based on an 18,506 square foot site with a gross floor area of 53,094 sq ft, representing an equivalent plot ratio of 2.869 times, more than the 2.8-times gross plot ratio allowed under the 2014 zoning Master Plan.
The 20-unit development, comprising 18 apartments and two penthouses, sits along Derbyshire Road. It is across the road from St Joseph's Primary Institution (Junior), and also close to Anglo-Chinese School (Junior). The site can be redeveloped into a 70-apartment project, subject to approval.
The 20-unit development, comprising 18 apartments and two penthouses, sits along Derbyshire Road. It is across the road from St Joseph's Primary Institution (Junior), and also close to Anglo-Chinese School (Junior). The site can be redeveloped into a 70-apartment project, subject to approval.
Vista Park
Vista Park en bloc committee are eyeing at least $350 million for the 209-unit Vista Park in South Buona Vista Road. Located at the edge of Kent Ridge Park and facing the sea. The land rate is estimated to be $932 per sq ft per plot ratio (psf ppr), spanning 319,250 sq ft and has about 61 years left on its lease. The site has a plot ratio of 1.4 and allowable height of up to five storeys, translating to a potential GFA of about 446,951 sq ft, with the potential to yield around 530 apartments of about 800 sq ft per unit for the new residential development, subject to approval. The tender closes on 13 Dec 2017.
Riviera Point
The en bloc sale of Riviera Point located at 2 Kim Yam Road set an asking price of $75m or $1,522 psf ppr. The site area is located in the Central Area. It has a land area of 14,579 sqft and a gross floor area of 45,265 sqft. It was marked for residential use and allowed to have 36 storeys. The site is 600m away from Great World MRT Station (TE15). The tender closes on 18 Dec 2017.
Pearl Bank Apts
Pearl Bank Apts is a beautiful 37-storey development in the Outram neighbourhood, has a reserve price of S$728 million or about S$1,505 per square foot (psf) per plot ratio (ppr), after factoring in an upgrading premium of approximately S$195 million for the lease top-up. There is no development charge payable.
Pearlbank is an iconic horsehoe-shaped building located on a beautiful hill - with elevated natural forest grounds amid the lush greenery of Pearl's Hill City Park, and is next to Outram Park MRT Interchange It is also conveniently located near the Central Expressway in the central business district (CBD) area.
Pearl Bank Apts is an extremely rare development within 3 minutes walk to three different MRT lines (North East Line, East West Line and Upcoming Thomson East Coast Line) at Outram Park MRT station. Location wise, there seem to be no other development that can match Pearl Bank.
Pearlbank is an iconic horsehoe-shaped building located on a beautiful hill - with elevated natural forest grounds amid the lush greenery of Pearl's Hill City Park, and is next to Outram Park MRT Interchange It is also conveniently located near the Central Expressway in the central business district (CBD) area.
Pearl Bank Apts is an extremely rare development within 3 minutes walk to three different MRT lines (North East Line, East West Line and Upcoming Thomson East Coast Line) at Outram Park MRT station. Location wise, there seem to be no other development that can match Pearl Bank.
