- Published on
Doorstep to Tanah Merah MRT with a shopping mall directly below, Sceneca Residence consist of 268 residential units of 1 to 4 bedrooms. Click to Register for Priority Viewing & Latest Updates. Most Exciting Launch in 2023.
Mass market home buyers in 2022 have accepted the new benchmark price of more than $2,100 psf for new condo launches in the heartland Outside Central Regions (OCR) giving the private residential market a boost in confidence. By the end of 2022, it is almost impossible to find a 1-bedroom unit at $1 million or lower even in the OCR new condo projects with the bulk of units in new launches priced between $1.5 million and $2 million for their 1 to 3 bedroom units even with interest rate hikes.
After bidding goodbye to 2022 this Sunday morning, today on 1 January 2023 also marks the opening launch of Sceneca Residence - a 99-year leasehold residential mixed condo development located right next to Tanah Merah MRT Station along Tenah Merah Kechil Link comprising of Sceneca Square shopping mall with more than 20,000 square feet on the ground floor and 268 residential condo units above.
Located at Tanah Merah Kechil Link, Sceneca Residence will be directly connected to the Tanah Merah MRT Station via a sheltered linkway with a mall below - Sceneca Square shopping mall. Future residents of Sceneca Residence will enjoy the ultimate convenience of having Sceneca Square shopping mall with supermarket, eateries, amenities and direct MRT access right below their home.
Jointly developed by MCC Land (Singapore), The Place Holdings, and Ekovest Development, Sceneca Residence is scheduled for sales preview a fortnight later. They have hinted that prices may starts from $1,9xx psf onwards for their sales preview expected to be on 14 Jan 2023. This will make Sceneca Residence an attractively priced project in this new condo launch market today.
Real estate professional Kiwi Lim believe residents staying in Tanah Merah will also be very excited as they will finally enjoy a shopping mall in their neighbourhood, without travelling to Tampines or Bedok. Sceneca Square shopping mall will likely become the focal point of Tanah Merah where shoppers, visitors, commuters and nearby residents can congregate and transit, thereby injecting much vibrancy and excitement into the neighbourhood.
"Sceneca Residences will be launched for sale in January. This will be followed by Blossoms by the Park, Terra Hill and The Botany at Dairy Farm" said Kiwi Lim from real estate firm Huttons Asia.
After bidding goodbye to 2022 this Sunday morning, today on 1 January 2023 also marks the opening launch of Sceneca Residence - a 99-year leasehold residential mixed condo development located right next to Tanah Merah MRT Station along Tenah Merah Kechil Link comprising of Sceneca Square shopping mall with more than 20,000 square feet on the ground floor and 268 residential condo units above.
Located at Tanah Merah Kechil Link, Sceneca Residence will be directly connected to the Tanah Merah MRT Station via a sheltered linkway with a mall below - Sceneca Square shopping mall. Future residents of Sceneca Residence will enjoy the ultimate convenience of having Sceneca Square shopping mall with supermarket, eateries, amenities and direct MRT access right below their home.
Jointly developed by MCC Land (Singapore), The Place Holdings, and Ekovest Development, Sceneca Residence is scheduled for sales preview a fortnight later. They have hinted that prices may starts from $1,9xx psf onwards for their sales preview expected to be on 14 Jan 2023. This will make Sceneca Residence an attractively priced project in this new condo launch market today.
Real estate professional Kiwi Lim believe residents staying in Tanah Merah will also be very excited as they will finally enjoy a shopping mall in their neighbourhood, without travelling to Tampines or Bedok. Sceneca Square shopping mall will likely become the focal point of Tanah Merah where shoppers, visitors, commuters and nearby residents can congregate and transit, thereby injecting much vibrancy and excitement into the neighbourhood.
"Sceneca Residences will be launched for sale in January. This will be followed by Blossoms by the Park, Terra Hill and The Botany at Dairy Farm" said Kiwi Lim from real estate firm Huttons Asia.
The property market in 2023 may see a return of foreign buyers, strong upgrading demand, higher condo prices even with higher home loan interest rates. From Apr 2022 after Singapore announced the easing of border measures for fully vaccinated travellers, the number of tourists to Singapore and correspondingly the number of foreigners buying new and resale residential properties in Singapore has risen from a low of 2.8% foreign buying in the first 3 months of 2022 to almost 5% in the next eight months.
The top 5 nationalities buying residential properties in 2022 are from China, Malaysia, India, USA and Indonesia. The number of homes in the CCR sold from April also shot up. Developers sold 361 units per month in the CCR in 1Q 2022. This jumped by almost 60% to a quarterly average of 577 units in 2Q and 3Q 2022. The resale market also saw an increase in sales of homes in the CCR, albeit at a lower 36%.
The supply of new homes will pick up in 2023 to an estimated 10,000 to 12,000 units spread over 40 launches. Based on the estimated units, 20% are in the Core Central Region, 50% in the Rest of Central Region and 30% in the Outside Central Region. Several of the major project launches in 1Q 2023 should be well-received by the market. They include 8 Shenton Way, Blossoms by the Park, Jalan Tembusu, Lentor Hill Residences, Marina View, Newport Residences, Sceneca Residences, Terra Hill, The Botany at Dairy Farm, The Continuum, The Hill@OneNorth and The Reserve Residences.
The top 5 nationalities buying residential properties in 2022 are from China, Malaysia, India, USA and Indonesia. The number of homes in the CCR sold from April also shot up. Developers sold 361 units per month in the CCR in 1Q 2022. This jumped by almost 60% to a quarterly average of 577 units in 2Q and 3Q 2022. The resale market also saw an increase in sales of homes in the CCR, albeit at a lower 36%.
The supply of new homes will pick up in 2023 to an estimated 10,000 to 12,000 units spread over 40 launches. Based on the estimated units, 20% are in the Core Central Region, 50% in the Rest of Central Region and 30% in the Outside Central Region. Several of the major project launches in 1Q 2023 should be well-received by the market. They include 8 Shenton Way, Blossoms by the Park, Jalan Tembusu, Lentor Hill Residences, Marina View, Newport Residences, Sceneca Residences, Terra Hill, The Botany at Dairy Farm, The Continuum, The Hill@OneNorth and The Reserve Residences.
HDB resale market in 2022 chalked up healthy price gains allowing HDB upgraders the liquidity boost they needed to upgrade to a private residential property. The first three launches in the OCR in 2022 – AMO Residence, Lentor Modern and Sky Eden@Bedok registered remarkable sales exceeding 70% of their units on launch day with mass market home buyers accepting the benchmark price of more than $2,100 psf on average for these heartlands Outside Central Region (OCR) condo launches.
Kiwi Lim from real estate agency Huttons Asia expect the US Federal Reserve to continue raising interest rates in 2023 but believe that interest rates may start dropping in 2024 as we may see a reduction in inflationary figures when the United States experience recessionary pressure after 2023.
Interest in the luxury segment of the non-landed market is expected to continue in 2023 with more ultra-high-net-worth individuals (UHNWIs) expected to be drawn to Singapore's business-friendly environment, high quality of life and vaccination rate. Singapore's relatively low taxes, high education quality, good banking and financial laws as well as being a strong legal mediation centre are all plus points for the rich.
Global uncertainties have also elevated safe havens like Singapore as a prime location for investment properties. The Good Class Bungalow GCB market is expected to remain strong in 2023 as genuine buyers are keen to buy despite the high prices. Private residential home prices may see a slower increase of maybe up to 5% in 2023 and may see lesser transactions of around 10,000 units, lower than 2022 and 2021 as the higher interest rate may price some buyers out of the market coupled with limited supply of new condo units available in the market." said Kiwi Lim who has been studying the real estate market for more than a decade.
Kiwi Lim from real estate agency Huttons Asia expect the US Federal Reserve to continue raising interest rates in 2023 but believe that interest rates may start dropping in 2024 as we may see a reduction in inflationary figures when the United States experience recessionary pressure after 2023.
Interest in the luxury segment of the non-landed market is expected to continue in 2023 with more ultra-high-net-worth individuals (UHNWIs) expected to be drawn to Singapore's business-friendly environment, high quality of life and vaccination rate. Singapore's relatively low taxes, high education quality, good banking and financial laws as well as being a strong legal mediation centre are all plus points for the rich.
Global uncertainties have also elevated safe havens like Singapore as a prime location for investment properties. The Good Class Bungalow GCB market is expected to remain strong in 2023 as genuine buyers are keen to buy despite the high prices. Private residential home prices may see a slower increase of maybe up to 5% in 2023 and may see lesser transactions of around 10,000 units, lower than 2022 and 2021 as the higher interest rate may price some buyers out of the market coupled with limited supply of new condo units available in the market." said Kiwi Lim who has been studying the real estate market for more than a decade.
- Published on
The upcoming tallest building in Singapore is designed by world-renowned architectural design consultant Skidmore, Owings & Merrill (SOM) and local architect partners DCA Architects
On 5 August 2022, the media announced that URA granted an approval for a building height of 305m at 8 Shenton Way to be built and it is going to be the highest building in Singapore granted by the government.
The new development will be built on the site currently occupied by 50-storey AXA Tower which is currently being demolished located at 8 Shenton Way in Tanjong Pagar also formerly known as Treasury Building in 1986 as the headquarter of Temasek Holdings - Singapore's investment body.
World-renowned architectural design consultant Skidmore, Owings & Merrill (SOM) and local architect partners DCA Architects unveiled the design of this towering mixed-use, 63-storey development at a press event on 27 Oct this year.
This amazing skyscraper will be the tallest skyscraper in Singapore and it will be owned by Chinese Internet giant Alibaba and a consortium led by Singapore-based real estate company Perennial Holdings. The owners of this future towering project have already obtained approval for plans to build a 63-storey mixed-use development, with offices, mall and residential units at Shenton Way in the Central Business District. With a maximum approved height of 305m as seen in Urban Redevelopment Authority (URA) documents, the building will overtake the 284m-tall Guoco Tower built by Singapore's mega developer Guocoland as the tallest building in Singapore.
"Expected to be completed by 2028, this beautiful towering development and Guoco Tower will be the only two buildings in Singapore to exceed 280m in height." said Kiwi Lim from Huttons Asia.
The new development will be built on the site currently occupied by 50-storey AXA Tower which is currently being demolished located at 8 Shenton Way in Tanjong Pagar also formerly known as Treasury Building in 1986 as the headquarter of Temasek Holdings - Singapore's investment body.
World-renowned architectural design consultant Skidmore, Owings & Merrill (SOM) and local architect partners DCA Architects unveiled the design of this towering mixed-use, 63-storey development at a press event on 27 Oct this year.
This amazing skyscraper will be the tallest skyscraper in Singapore and it will be owned by Chinese Internet giant Alibaba and a consortium led by Singapore-based real estate company Perennial Holdings. The owners of this future towering project have already obtained approval for plans to build a 63-storey mixed-use development, with offices, mall and residential units at Shenton Way in the Central Business District. With a maximum approved height of 305m as seen in Urban Redevelopment Authority (URA) documents, the building will overtake the 284m-tall Guoco Tower built by Singapore's mega developer Guocoland as the tallest building in Singapore.
"Expected to be completed by 2028, this beautiful towering development and Guoco Tower will be the only two buildings in Singapore to exceed 280m in height." said Kiwi Lim from Huttons Asia.
Ma's Trouble With Beijing
Once China’s wealthiest and most prominent tech leader, Jack Ma retreated from the spotlight in recent years after his criticism of government regulation landed him in trouble with Beijing, causing the Alibaba Group to derail the initial public offering of fintech giant Ant Group Co - which was highly anticipated in the market to be the hottest and largest IPO in modern history. This led to huge decisions by Ant and Alibaba to separate their huge business operations as President Xi Jinping's government frowns upon concentration of power in the hands of private sector conglomerates.
For almost two years, the world did not hear any news about this legendary Chinese entrepreneur and he remained in super low profile after Beijing’s crackdown on the technology sector until recently when the media reported that Jack Ma has been living in Tokyo for nearly six months visiting hot spring and ski resorts in the countryside outside Tokyo coupled with regular low profile visits to various countries according to Financial Times.
Once the pride of Chinese, Alibaba group was seen as an innovation giant wielding immense corporate power on the global stage with some analysts even predicting the giant technological conglomerate that is involved in nearly every aspect of business to rival the world’s fifth largest economy.
Once China’s wealthiest and most prominent tech leader, Jack Ma retreated from the spotlight in recent years after his criticism of government regulation landed him in trouble with Beijing, causing the Alibaba Group to derail the initial public offering of fintech giant Ant Group Co - which was highly anticipated in the market to be the hottest and largest IPO in modern history. This led to huge decisions by Ant and Alibaba to separate their huge business operations as President Xi Jinping's government frowns upon concentration of power in the hands of private sector conglomerates.
For almost two years, the world did not hear any news about this legendary Chinese entrepreneur and he remained in super low profile after Beijing’s crackdown on the technology sector until recently when the media reported that Jack Ma has been living in Tokyo for nearly six months visiting hot spring and ski resorts in the countryside outside Tokyo coupled with regular low profile visits to various countries according to Financial Times.
Once the pride of Chinese, Alibaba group was seen as an innovation giant wielding immense corporate power on the global stage with some analysts even predicting the giant technological conglomerate that is involved in nearly every aspect of business to rival the world’s fifth largest economy.
Perched atop the verdant Pearl's Hill City Park, One Pearl Bank is set to be the tallest residential development in the Outram-Chinatown area near the Central Business District. Click to find out more
Singapore - An Obvious and Convenient Choice
Singapore has been admired by countries all around the world for being able to balance good governance with business-friendly regulations and taxes. Singapore's exceptional foresight in planning, building through pumping huge investments in public infrastructure and amenities for its people are also highly praised by urban development experts worldwide.
Singapore seem to be the obvious and convenient choice for Chinese businesses looking to relocate from mainland China and Hong Kong especially with Singapore's transparent operations, legal system for arbitration, robust business ecosystem, banking system of investment managers and other service providers.
With Singapore's masterplan on developing the Central Business District (CBD), Marina South, Marina East and Straits View into an attractive live-work-play environment integrated with efficient transport and quality infrastructure with beautiful waterbodies and greenery, real estate consultant Kiwi Lim believe Alibaba's choice to relocate their HQ in Tanjong Pagar will integrate the city centre seamlessly with the Greater Southern Waterfront city and revitalise the Central Business District of Tanjong Pagar.
"If Alibaba decides to relocate it's headquarters from Hangzhou, China to Tanjong Pagar in Singapore, there will be a dynamic transformation and increased demand for properties in the CBD and surrounding areas. This year, we are already seeing a rise in numbers of foreigners taking up new launch private residential properties in The Reef at King's Dock, One Bernam, One Pearl Bank, The Landmark and I believe there will also be keen interest for the upcoming Newport Residences (formerly Fuji Xerox) expected to be launched next year." said Kiwi Lim.
Singapore has been admired by countries all around the world for being able to balance good governance with business-friendly regulations and taxes. Singapore's exceptional foresight in planning, building through pumping huge investments in public infrastructure and amenities for its people are also highly praised by urban development experts worldwide.
Singapore seem to be the obvious and convenient choice for Chinese businesses looking to relocate from mainland China and Hong Kong especially with Singapore's transparent operations, legal system for arbitration, robust business ecosystem, banking system of investment managers and other service providers.
With Singapore's masterplan on developing the Central Business District (CBD), Marina South, Marina East and Straits View into an attractive live-work-play environment integrated with efficient transport and quality infrastructure with beautiful waterbodies and greenery, real estate consultant Kiwi Lim believe Alibaba's choice to relocate their HQ in Tanjong Pagar will integrate the city centre seamlessly with the Greater Southern Waterfront city and revitalise the Central Business District of Tanjong Pagar.
"If Alibaba decides to relocate it's headquarters from Hangzhou, China to Tanjong Pagar in Singapore, there will be a dynamic transformation and increased demand for properties in the CBD and surrounding areas. This year, we are already seeing a rise in numbers of foreigners taking up new launch private residential properties in The Reef at King's Dock, One Bernam, One Pearl Bank, The Landmark and I believe there will also be keen interest for the upcoming Newport Residences (formerly Fuji Xerox) expected to be launched next year." said Kiwi Lim.
- Published on
A new agency set up by the Chinese communist government - the China Mineral Resources Group Ltd (CMRG) was officially launched in China by the country’s Vice-Premier Han Zheng to boost up supply in order to meet China's huge demand for mineral resources - in particular iron ore.
China Mineral Resources Group Ltd (CMRG) has been established with the aim of guaranteeing the supply of critical minerals by overseeing domestic and international trades, supply lines and development.
The stated scope of China Mineral Resources Group Ltd (CMRG) includes mining (excluding coal) ‘iron ore processing, import and export of commodities, the sales of metal ores, and warehouse and supply management services.
The state-owned mining giant although recently formed last month has already signed huge contracts of strategic cooperation deals with three big international rare minerals supplier - Brazil’s Vale, Australia’s BHP Billiton, and Rio Tinto, an Anglo-Australian firm at this year’s China International Import Expo in Shanghai.
China Mineral Resources Group Ltd (CMRG) has been established with the aim of guaranteeing the supply of critical minerals by overseeing domestic and international trades, supply lines and development.
The stated scope of China Mineral Resources Group Ltd (CMRG) includes mining (excluding coal) ‘iron ore processing, import and export of commodities, the sales of metal ores, and warehouse and supply management services.
The state-owned mining giant although recently formed last month has already signed huge contracts of strategic cooperation deals with three big international rare minerals supplier - Brazil’s Vale, Australia’s BHP Billiton, and Rio Tinto, an Anglo-Australian firm at this year’s China International Import Expo in Shanghai.
How Will This Impact Singapore's Real Estate?
This new move by China may upset the nearly $200 billion iron ore industry worldwide as Beijing expands its efforts to increase control over the natural resources needed to feed its economy.
China Mineral Resources Group Ltd (CMRG) is poised to become the world’s biggest iron ore buyer as soon as next year as reported by Bloomberg news agency. It is expected to begin consolidating purchases on behalf of about 20 of the largest Chinese steelmakers including leader China Baowu Steel Group Corp., according to people familiar with the situation.
Real estate consultant Kiwi Lim felt that President Xi may be trying to control the supply of raw materials, e.g. iron ore through the creation of this new agency to gain more clout with the world's powerful suppliers like Rio, BHP Group, Fortescue Metals Group, Vale, etc in order to satisfy China's immense hunger for raw materials. But this may invariably reduce the supply of iron ores and other metals worldwide to cater to the needs of other nations' infrastructural development. This may lead to more competition for raw metal materials from next year as countries around the world tries to get their hands on the remaining iron ore available in the market leading to gradual rise in prices.
"How will this impact the construction industry where steel and iron are critical and in great demand, only time will tell." said Kiwi Lim
This new move by China may upset the nearly $200 billion iron ore industry worldwide as Beijing expands its efforts to increase control over the natural resources needed to feed its economy.
China Mineral Resources Group Ltd (CMRG) is poised to become the world’s biggest iron ore buyer as soon as next year as reported by Bloomberg news agency. It is expected to begin consolidating purchases on behalf of about 20 of the largest Chinese steelmakers including leader China Baowu Steel Group Corp., according to people familiar with the situation.
Real estate consultant Kiwi Lim felt that President Xi may be trying to control the supply of raw materials, e.g. iron ore through the creation of this new agency to gain more clout with the world's powerful suppliers like Rio, BHP Group, Fortescue Metals Group, Vale, etc in order to satisfy China's immense hunger for raw materials. But this may invariably reduce the supply of iron ores and other metals worldwide to cater to the needs of other nations' infrastructural development. This may lead to more competition for raw metal materials from next year as countries around the world tries to get their hands on the remaining iron ore available in the market leading to gradual rise in prices.
"How will this impact the construction industry where steel and iron are critical and in great demand, only time will tell." said Kiwi Lim
Sceneca Residence is the first condo to be launched in 2023 - an exciting upcoming integrated lifestyle condo by MCC Land situated above a shopping mall right beside Tanah Merah MRT. Register for ebrochure and floorplan
Is China Snapping Up Iron Ore To Build More Property?
The stock of unsold new homes in many Chinese cities has hit its highest since 2019 amid fragile demand in the country’s downtrodden property market. According to China Real Estate Information Corp (CRIC) which monitors 100 Chinese cities, the number of unsold new homes in tier-three and tier-four cities is not seeing any reprieve.
China’s property market has repeatedly grappled with crises since 2020 and problems worsened in August 2022 as the country saw groups of buyers at mortgage boycott gatherings and developers’ financial strains further hurt confidence in the sector. Prices of unsold properties were dragged down by weak demand especially in smaller cities coupled with halted or persistently slow deliveries by heavily-indebted property developers all over China.
Desperate to improve their cash flows, property developers in Chinese provincial capitals are struggling to find buyers with some cities reporting more than 20 million square meters of unsold new home stock each according to CRIC.
The stock of unsold new homes in many Chinese cities has hit its highest since 2019 amid fragile demand in the country’s downtrodden property market. According to China Real Estate Information Corp (CRIC) which monitors 100 Chinese cities, the number of unsold new homes in tier-three and tier-four cities is not seeing any reprieve.
China’s property market has repeatedly grappled with crises since 2020 and problems worsened in August 2022 as the country saw groups of buyers at mortgage boycott gatherings and developers’ financial strains further hurt confidence in the sector. Prices of unsold properties were dragged down by weak demand especially in smaller cities coupled with halted or persistently slow deliveries by heavily-indebted property developers all over China.
Desperate to improve their cash flows, property developers in Chinese provincial capitals are struggling to find buyers with some cities reporting more than 20 million square meters of unsold new home stock each according to CRIC.
- Published on
In March this year, the government called for a tender by developers to bid for the developing and operating of an integrated tourism development in Jurong Lake District launched by the Singapore Tourism Board (STB) to transform Jurong Lake District into a dynamic new lifestyle and tourism hub - comprising of 5 star hotels, variety of attractions, retail, F&B outlets and entertainment offerings with an emphasis on technology, "edutainment" and sustainability.
This dynamic integrated tourism development is widely expected to transform Jurong Lake District, complementing its existing nearby attractions such as the Jurong Lake Gardens and the new Science Centre and well-integrated through a network of pedestrian-friendly streets and well-designed public spaces with the entire Jurong Lake District.
The successful developer who wins the tender for this mega integrated tourism development project in Jurong Lake District will have the entire site leased to them for 60 years and the whole project must be completed within five years of the date that the proposal is accepted, estimated to be by around 2028. Bidders are also to provide comprehensive plans for content refresh over the course of the lease.
This dynamic integrated tourism development is widely expected to transform Jurong Lake District, complementing its existing nearby attractions such as the Jurong Lake Gardens and the new Science Centre and well-integrated through a network of pedestrian-friendly streets and well-designed public spaces with the entire Jurong Lake District.
The successful developer who wins the tender for this mega integrated tourism development project in Jurong Lake District will have the entire site leased to them for 60 years and the whole project must be completed within five years of the date that the proposal is accepted, estimated to be by around 2028. Bidders are also to provide comprehensive plans for content refresh over the course of the lease.
The Tender For The Integrated Tourism Development Project in Jurong Lake District
STB's tender documents to developers in March 2022 required the attractions in the development to be innovative and first of its kind in South-east Asia and / or globally, preferably with a strong focus on science, media and technology. The attractions should not compete with the adjacent Science Centre and the development should appeal to a broad range of age groups such as families with young children and active senior citizens, and said that the hotel should differentiate itself from existing hotel developments in Singapore.
There is also an additional requirement by STB that the development should attract at least one million domestic and foreign visitors a year
The plot set aside for the tourism development is located at the intersection of Boon Lay Way and Jurong Town Hall Road, next to Chinese Garden MRT station and the future Science Centre, which will move from its current premises about 1km away to reopen around 2027. STB’s marketing materials said that the target opening date for the new tourism development is mid-2028.
STB's tender documents to developers in March 2022 required the attractions in the development to be innovative and first of its kind in South-east Asia and / or globally, preferably with a strong focus on science, media and technology. The attractions should not compete with the adjacent Science Centre and the development should appeal to a broad range of age groups such as families with young children and active senior citizens, and said that the hotel should differentiate itself from existing hotel developments in Singapore.
There is also an additional requirement by STB that the development should attract at least one million domestic and foreign visitors a year
The plot set aside for the tourism development is located at the intersection of Boon Lay Way and Jurong Town Hall Road, next to Chinese Garden MRT station and the future Science Centre, which will move from its current premises about 1km away to reopen around 2027. STB’s marketing materials said that the target opening date for the new tourism development is mid-2028.
An artist's impression showing a bird's eye view of the new Science Centre. (Image: Science Centre Singapore)
No Takers At The Close Of The Tender
The March tender for the integrated tourism development in Jurong Lake District closed on the 18 Oct 2022 with no proposal received from developers. Stakeholders had reflected to STB that they were unable to submit a proposal due to geopolitical and uncertain economic environment. Developers were also concerned about rising interest rates, financial market volatility and a rise in construction costs due to supply chain constraints and tight labor shortage experienced across Asia.
The development site is close to 7 ha - equivalent in size to about 10 football fields and located next to Chinese Garden MRT station sharing a expansive 300 meter long beautiful frontage view of the beautiful Jurong Lake.
Real estate professional Kiwi Lim is not surprised by the lack of interest from developers in this project tender to develop an integrated tourism project in Jurong Lake District. Some analysts had earlier expected deep pocketed mega developers like Capitaland, CDL or Guocoland to place a bid, especially when Guocoland has plenty of experience transforming districts, e.g. with their impressive Tanjong Pagar Guoco Tower and their exciting mega project in Bugis district - Guoco Midtown.
"I believe the tender requirements by STB for the integrated tourism development in Jurong Lake District may be a bit too challenging even for mega developers to consider because most developers in Singapore has no experience in developing a huge world class theme park kind of attraction amidst a new business district outside the CBD. Developers may also find it difficult to attract experienced foreign partners without the powerful appeal of a casino licence. Most local developers are more comfortable building mixed developments or integrated projects with retail - commercial - hotel - service apartment - residential mix. But this is of a different league" said Kiwi Lim who has been observing ongoing infrastructure developments in Singapore.
"Moreover, the lease is only for 60 years and there is no option for developers to build and sell private residential apartments which will help in their cash flow."
The March tender for the integrated tourism development in Jurong Lake District closed on the 18 Oct 2022 with no proposal received from developers. Stakeholders had reflected to STB that they were unable to submit a proposal due to geopolitical and uncertain economic environment. Developers were also concerned about rising interest rates, financial market volatility and a rise in construction costs due to supply chain constraints and tight labor shortage experienced across Asia.
The development site is close to 7 ha - equivalent in size to about 10 football fields and located next to Chinese Garden MRT station sharing a expansive 300 meter long beautiful frontage view of the beautiful Jurong Lake.
Real estate professional Kiwi Lim is not surprised by the lack of interest from developers in this project tender to develop an integrated tourism project in Jurong Lake District. Some analysts had earlier expected deep pocketed mega developers like Capitaland, CDL or Guocoland to place a bid, especially when Guocoland has plenty of experience transforming districts, e.g. with their impressive Tanjong Pagar Guoco Tower and their exciting mega project in Bugis district - Guoco Midtown.
"I believe the tender requirements by STB for the integrated tourism development in Jurong Lake District may be a bit too challenging even for mega developers to consider because most developers in Singapore has no experience in developing a huge world class theme park kind of attraction amidst a new business district outside the CBD. Developers may also find it difficult to attract experienced foreign partners without the powerful appeal of a casino licence. Most local developers are more comfortable building mixed developments or integrated projects with retail - commercial - hotel - service apartment - residential mix. But this is of a different league" said Kiwi Lim who has been observing ongoing infrastructure developments in Singapore.
"Moreover, the lease is only for 60 years and there is no option for developers to build and sell private residential apartments which will help in their cash flow."
Jurong Lake District - Singapore's Largest Business District Outside the CBD
In 2019, STB had announced plans for the development of a 6.8ha site next to Jurong Lake to become a lifestyle and tourism hub in the 410ha Jurong Lake District - Singapore's largest business district outside the Central Business District. Jurong Lake District will be the focus of development over the next two decades, with the Government set to prioritise the sale of sites within the district.
On 2 Dec 2022, the government announced that the new Science Centre is set to open in the Jurong Lake District in 2027, aiming to be a one-stop destination for the public to access science, technology, engineering and mathematics (STEM) education and experiences. Visitors can also enjoy facilities such as a new observatory to learn about astronomy and a digital fabrication lab that will support incubator programmes.
The design of the upcoming Science Centre includes five interconnected rectangular volumes defined by large "monocle" windows that offer views of neighboring Jurong Lake Gardens. Features include a network of discovery trails and an enhanced Children’s Gallery that offers twice as much room as the space provided in its predecessor. This amazing project is designed by the famous Zaha Hadid Architects
Jurong Lake District is an untested ground for large-scale tourism attractions, it has potential to be yet another tourist hub outside of the city centre, like Sentosa or Mandai, due to its accessibility, proximity to complementary attractions and an existing population that will fuel local demand for these attractions.
When fully developed, the Jurong Lake District will provide more than 100,000 new jobs and 20,000 new homes, served by four major rail lines by the early 2030s – the North-South, East-West, Jurong Region and Cross-Island lines.
In 2019, STB had announced plans for the development of a 6.8ha site next to Jurong Lake to become a lifestyle and tourism hub in the 410ha Jurong Lake District - Singapore's largest business district outside the Central Business District. Jurong Lake District will be the focus of development over the next two decades, with the Government set to prioritise the sale of sites within the district.
On 2 Dec 2022, the government announced that the new Science Centre is set to open in the Jurong Lake District in 2027, aiming to be a one-stop destination for the public to access science, technology, engineering and mathematics (STEM) education and experiences. Visitors can also enjoy facilities such as a new observatory to learn about astronomy and a digital fabrication lab that will support incubator programmes.
The design of the upcoming Science Centre includes five interconnected rectangular volumes defined by large "monocle" windows that offer views of neighboring Jurong Lake Gardens. Features include a network of discovery trails and an enhanced Children’s Gallery that offers twice as much room as the space provided in its predecessor. This amazing project is designed by the famous Zaha Hadid Architects
Jurong Lake District is an untested ground for large-scale tourism attractions, it has potential to be yet another tourist hub outside of the city centre, like Sentosa or Mandai, due to its accessibility, proximity to complementary attractions and an existing population that will fuel local demand for these attractions.
When fully developed, the Jurong Lake District will provide more than 100,000 new jobs and 20,000 new homes, served by four major rail lines by the early 2030s – the North-South, East-West, Jurong Region and Cross-Island lines.
- Published on
Prospective homebuyers are wondering if they should wait for a possible price correction in 2023
The resilience of Singapore's residential property market in spite of the higher constructions costs, manpower costs and restrictions due to Covid pandemic took many by surprise as we see a sudden increase in the number of young couples and singles wanting to own their private residential home space.
However, the recent months saw a darker economic outlook with war in Ukraine and the worst inflation the world has ever seen due to Covid pandemic, climate change and the war all combined together. This invariably cast a slightly gloomier outlook on the property market in Singapore especially when home loan interest rates in Singapore soar past 4.25% by the end of 2022 from only less than 1% in January as the Federal Reserve applied brakes on the hot inflationary economy by rising interest rates at an amazing rate never seen before.
The Singapore government also applied brakes recently in Dec last year and Sept this year to cool the local property market which saw prices soaring 10.6% last year in 2021 and an estimated 9.3% this year in 2022. After an unprecedented two sets of cooling measures were rolled out in a spate of less than 9 months to encourage prudent borrowing and to cool the hot property market in Singapore, many prospective homebuyers are wondering if they should wait for a possible price correction especially when America is arguably in a technical recession and Europe enters a blistering cold winter - literally and economically.
However, the recent months saw a darker economic outlook with war in Ukraine and the worst inflation the world has ever seen due to Covid pandemic, climate change and the war all combined together. This invariably cast a slightly gloomier outlook on the property market in Singapore especially when home loan interest rates in Singapore soar past 4.25% by the end of 2022 from only less than 1% in January as the Federal Reserve applied brakes on the hot inflationary economy by rising interest rates at an amazing rate never seen before.
The Singapore government also applied brakes recently in Dec last year and Sept this year to cool the local property market which saw prices soaring 10.6% last year in 2021 and an estimated 9.3% this year in 2022. After an unprecedented two sets of cooling measures were rolled out in a spate of less than 9 months to encourage prudent borrowing and to cool the hot property market in Singapore, many prospective homebuyers are wondering if they should wait for a possible price correction especially when America is arguably in a technical recession and Europe enters a blistering cold winter - literally and economically.
Developers in Singapore held back on launching sizeable new projects causing overall sales volumes to fall by a third in 1st Quarter 2022 while residential en-bloc activity in the market slowed noticeably after the government's cooling measure was announced in end Dec 2021.
By the second quarter of this year 2022, private home sales rebounded with a robust take-up of new project launches, such as Piccadilly Grand and Liv@MB in the Rest of Central Region (RCR), the market roared back into action leading to an acceleration of home prices in Q2 2022 where we see mass market new launches in the Outside Central Region (OCR) not only challenging but pushing beyond the psychological barrier of $2,000 psf with the launches of AMO Residence in July, then Sky Eden@Bedok and subsequently Lentor Modern - all mass market condo projects in the Outside Central Region (OCR) with prices exceeding $2,400 psf were met with positive response from potential homebuyers.
By the second quarter of this year 2022, private home sales rebounded with a robust take-up of new project launches, such as Piccadilly Grand and Liv@MB in the Rest of Central Region (RCR), the market roared back into action leading to an acceleration of home prices in Q2 2022 where we see mass market new launches in the Outside Central Region (OCR) not only challenging but pushing beyond the psychological barrier of $2,000 psf with the launches of AMO Residence in July, then Sky Eden@Bedok and subsequently Lentor Modern - all mass market condo projects in the Outside Central Region (OCR) with prices exceeding $2,400 psf were met with positive response from potential homebuyers.
Lowest Stock Of Unsold Private Residential Property Under Construction (BUC)
Based on information compiled by ERA Research and Consultancy with reference to URA data, the stock of unsold private residential property under construction (BUC) has been dropping for nine straight quarters to a fifteen year low of an estimated 5,320 units (excluding executive condo units) and is not expected to increase much next year according to the Business Times article on 12 Dec 2022.
The current level is the lowest since 3rd Quarter 2007 where unsold stock hits 4,666 units - during the property bull run of 2004 to 2008 when developers sold many private housing units. Looking back two years ago in 2nd quarter 2020 unsold private residential property under construction (BUC) was 20,919 units (excluding executive condo units).
Real estate professional Kiwi Lim believe that property prices may continue to rise next year in spite of the economic outlook with impending recession and war in Ukraine but the rise in prices is expected to be tapered downwards to around 2% to 3% in 2023 with an estimated 12,500 new private residential property under construction units (excluding executive condo units) expected to be launched next year with around 40 upcoming new apartment and condo private residential projects (excluding executive condo projects).
Based on information compiled by ERA Research and Consultancy with reference to URA data, the stock of unsold private residential property under construction (BUC) has been dropping for nine straight quarters to a fifteen year low of an estimated 5,320 units (excluding executive condo units) and is not expected to increase much next year according to the Business Times article on 12 Dec 2022.
The current level is the lowest since 3rd Quarter 2007 where unsold stock hits 4,666 units - during the property bull run of 2004 to 2008 when developers sold many private housing units. Looking back two years ago in 2nd quarter 2020 unsold private residential property under construction (BUC) was 20,919 units (excluding executive condo units).
Real estate professional Kiwi Lim believe that property prices may continue to rise next year in spite of the economic outlook with impending recession and war in Ukraine but the rise in prices is expected to be tapered downwards to around 2% to 3% in 2023 with an estimated 12,500 new private residential property under construction units (excluding executive condo units) expected to be launched next year with around 40 upcoming new apartment and condo private residential projects (excluding executive condo projects).
Land Acquisition Price and Land Betterment Charge (LBC)
Property developers are unlikely to lower prices in spite of intensifying headwinds such as soaring interest rates and slowing economic growth due to high land acquisition prices and the recent announcement by SLA of the significant hikes in land betterment charge (LBC) rates for non-landed residential, landed residential, commercial and industrial use groups from the previous rates to reflect the generally robust performance of the local property market.
The biggest hike announced by SLA was for non-landed residential use, for which the LBC rates for the period Sep 23, 2022 to Feb 28, 2023, have been raised by an average of 12.9 per cent, compared with a 0.3 per cent increase during the previous revision that took effect on Mar 1, 2022. The latest rate hike was the sharpest since the 22.8 per cent spike in March 2018 which took developers by surprise as it will increase their costs for developing the land parcel.
"Sceneca Residence will be the first project to be launched in 2023 by a consortium led by developer MCC Land and is expected to be an important litmus test of market sentiment when the developer launch the project next month in January next year. Real estate market analysts and property developers will be closely watching this first launch of 2023 and I expect around 80% to be sold on the preview date due to its attractive pricing and ultra convenient location offering residents of Sceneca Residence an integrated lifestyle with a shopping mall and Tanah Merah MRT entrance at its doorstep." said Kiwi Lim from Huttons Asia
Property developers are unlikely to lower prices in spite of intensifying headwinds such as soaring interest rates and slowing economic growth due to high land acquisition prices and the recent announcement by SLA of the significant hikes in land betterment charge (LBC) rates for non-landed residential, landed residential, commercial and industrial use groups from the previous rates to reflect the generally robust performance of the local property market.
The biggest hike announced by SLA was for non-landed residential use, for which the LBC rates for the period Sep 23, 2022 to Feb 28, 2023, have been raised by an average of 12.9 per cent, compared with a 0.3 per cent increase during the previous revision that took effect on Mar 1, 2022. The latest rate hike was the sharpest since the 22.8 per cent spike in March 2018 which took developers by surprise as it will increase their costs for developing the land parcel.
"Sceneca Residence will be the first project to be launched in 2023 by a consortium led by developer MCC Land and is expected to be an important litmus test of market sentiment when the developer launch the project next month in January next year. Real estate market analysts and property developers will be closely watching this first launch of 2023 and I expect around 80% to be sold on the preview date due to its attractive pricing and ultra convenient location offering residents of Sceneca Residence an integrated lifestyle with a shopping mall and Tanah Merah MRT entrance at its doorstep." said Kiwi Lim from Huttons Asia
- Published on
2022 saw a number of successful collective sales, with owners of some private residential enbloc developments willing to accept an offer below the reserve price, for example Golden Mile Complex on Beach Road, where its owners accepted a $700 million bid which is 12.5% below the $800 million reserve price from a consortium made up of Perennial Holdings, Far East Organization and Sino Land.
In July, owners of Chuan Park condo at Lorong Chuan also agreed to reduce their reserve price to $890 million at 5.11% lower than the guide price of $938 million to sell to Kingsford Development and MCC Land during the private treaty period, after the tender closed in April.
This year 2022 may see collective sale quantum of close to S$4 billion nearly doubling last year's S$2.2 billion from the 11 collective sale deals for the whole of 2021.
Real estate professional Kiwi Lim believe owners of ageing, 99 years leasehold commercial and / or private residential properties are generally more motivated to sell and are willing to consider reducing their reserve price for their collective sale attempts when compared to owners of prime, freehold private residential developments as seen in both enbloc sales of Chuan Park condo and Golden Mile Complex."
"I think the collective sale market will remain healthy in 2023 possibly matching this year's collective sale quantum as private property owners look to cash out from their ageing leasehold private residential developments in a seller's market, especially those private apartment status developments in smaller land parcels. However, developers are also mindful of possible headwinds from economic recessionary pressures in Europe and America after 2023. said Kiwi Lim
In July, owners of Chuan Park condo at Lorong Chuan also agreed to reduce their reserve price to $890 million at 5.11% lower than the guide price of $938 million to sell to Kingsford Development and MCC Land during the private treaty period, after the tender closed in April.
This year 2022 may see collective sale quantum of close to S$4 billion nearly doubling last year's S$2.2 billion from the 11 collective sale deals for the whole of 2021.
Real estate professional Kiwi Lim believe owners of ageing, 99 years leasehold commercial and / or private residential properties are generally more motivated to sell and are willing to consider reducing their reserve price for their collective sale attempts when compared to owners of prime, freehold private residential developments as seen in both enbloc sales of Chuan Park condo and Golden Mile Complex."
"I think the collective sale market will remain healthy in 2023 possibly matching this year's collective sale quantum as private property owners look to cash out from their ageing leasehold private residential developments in a seller's market, especially those private apartment status developments in smaller land parcels. However, developers are also mindful of possible headwinds from economic recessionary pressures in Europe and America after 2023. said Kiwi Lim
What should investors be mindful of?
Investors looking to buy a private residential / commercial property with enbloc potential hoping to make a windfall must remember two critical points:
1. It is difficult to predict exactly which private development will successfully enbloc and calculate how much they can profit from it. This is because for a collective sale attempt to take shape, 80% or more of the owners must agree to the collective sale with many other conditions and regulations to process. Some smaller developments may find difficulty in getting 80% of the owners to agree to the enbloc attempt simply because it may take only a handful of owners who love their homes so much that they are reluctant or unwilling to sell therefore killing off the collective sale dream of their neighbors.
If the development does not enbloc, the investor will be left holding onto an ageing private property in need of high maintenance costs with a severe lease decay if its a leasehold development. This may be a nightmare for investors.
2. It is also difficult to time the enbloc sale and predict when exactly it would occur for a private development because if the enbloc happened within the time frame for the Seller’s Stamp Duty (SSD) period, then it may seriously reduce the amount of profit the investor can take away from the collective sale.
The seller's stamp duty (SSD) was revised on 11 Mar 2017 to impose a sales tax of between 4% to a hefty 12% on the sale price payable to IRAS. The seller's stamp duty (SSD) tax payment usually have to be made to IRAS before the seller can collect the enbloc money from the developer.
Investors looking to buy a private residential / commercial property with enbloc potential hoping to make a windfall must remember two critical points:
1. It is difficult to predict exactly which private development will successfully enbloc and calculate how much they can profit from it. This is because for a collective sale attempt to take shape, 80% or more of the owners must agree to the collective sale with many other conditions and regulations to process. Some smaller developments may find difficulty in getting 80% of the owners to agree to the enbloc attempt simply because it may take only a handful of owners who love their homes so much that they are reluctant or unwilling to sell therefore killing off the collective sale dream of their neighbors.
If the development does not enbloc, the investor will be left holding onto an ageing private property in need of high maintenance costs with a severe lease decay if its a leasehold development. This may be a nightmare for investors.
2. It is also difficult to time the enbloc sale and predict when exactly it would occur for a private development because if the enbloc happened within the time frame for the Seller’s Stamp Duty (SSD) period, then it may seriously reduce the amount of profit the investor can take away from the collective sale.
The seller's stamp duty (SSD) was revised on 11 Mar 2017 to impose a sales tax of between 4% to a hefty 12% on the sale price payable to IRAS. The seller's stamp duty (SSD) tax payment usually have to be made to IRAS before the seller can collect the enbloc money from the developer.
In April this year, I wrote an article expressing my confidence that Chuan Park will successfully enbloc
The Enbloc Of Chuan Park
"In April this year, I wrote an article expressing my confidence that Chuan Park condo will successfully enbloc and received feedback from many that they do not think developers will be interested due to various reasons." said Kiwi Lim from one of the top real estate agencies - Huttons Asia. Click the above image to read the article on Chuan Park condo in April.
Towards the end of July, a joint venture of two Chinese developers Kingsford Development and MCC Land successfully secured Chuan Park condo in District 19 for $890 million in the collective sale attempt. Chuan Park condo has 444 condominium units and two commercial units sitting on a sprawling land area of 400,588 sq ft with a plot ratio of 2.1. Based on the closing price of $890 million, the land rate works out to $1,256 psf per plot ratio after taking into consideration the differential premium of $192.62 million to top up the lease to a fresh 99-years.
Even though majority of the owners agreed to sell, but they are also sad to leave Chuan Park condo as its located in a serene quiet matured private and landed residential estate enjoying the ultimate convenience of having the Lorong Chuan MRT station on the Circle Line right at its doorstep and the bustling Nex Shopping Mall within a short walking distance.
Chuan Park condo is also within close proximity to top schools such as CHIJ Our Lady of Good Counsel, Maris Stella High School and Raffles Girls’ School (Secondary). Chuan Park condo was rapidly ageing and in need of high maintenance and quite a few of its units has water seepage issues affecting the quality of the residents' daily lives.
Investors who bought Chuan Park condo for its enbloc potential in 2019 paid an average of $980 psf for a condo unit there and may have successfully avoided the seller's stamp duty. Those investors who bought within three years of this enbloc sale may see themselves being slapped with a sellers stamp duty from IRAS of between 4% to 12% tax on their respective unit's enboc sale price.
"In April this year, I wrote an article expressing my confidence that Chuan Park condo will successfully enbloc and received feedback from many that they do not think developers will be interested due to various reasons." said Kiwi Lim from one of the top real estate agencies - Huttons Asia. Click the above image to read the article on Chuan Park condo in April.
Towards the end of July, a joint venture of two Chinese developers Kingsford Development and MCC Land successfully secured Chuan Park condo in District 19 for $890 million in the collective sale attempt. Chuan Park condo has 444 condominium units and two commercial units sitting on a sprawling land area of 400,588 sq ft with a plot ratio of 2.1. Based on the closing price of $890 million, the land rate works out to $1,256 psf per plot ratio after taking into consideration the differential premium of $192.62 million to top up the lease to a fresh 99-years.
Even though majority of the owners agreed to sell, but they are also sad to leave Chuan Park condo as its located in a serene quiet matured private and landed residential estate enjoying the ultimate convenience of having the Lorong Chuan MRT station on the Circle Line right at its doorstep and the bustling Nex Shopping Mall within a short walking distance.
Chuan Park condo is also within close proximity to top schools such as CHIJ Our Lady of Good Counsel, Maris Stella High School and Raffles Girls’ School (Secondary). Chuan Park condo was rapidly ageing and in need of high maintenance and quite a few of its units has water seepage issues affecting the quality of the residents' daily lives.
Investors who bought Chuan Park condo for its enbloc potential in 2019 paid an average of $980 psf for a condo unit there and may have successfully avoided the seller's stamp duty. Those investors who bought within three years of this enbloc sale may see themselves being slapped with a sellers stamp duty from IRAS of between 4% to 12% tax on their respective unit's enboc sale price.
- Published on
High Court Overturns Strata Titles Board Ruling To Recognise Palm Gardens As 'Mixed-Use Development'
The Dispute
The dispute centred on whether the owner of a minimart located inside a condominium development in Choa Chu Kang can automatically became a member of the property's management council without the need to be nominated at the AGM every year.
Palm Gardens is a 99-year leasehold condominium development located along Hong San Walk, off Choa Chu Kang Avenue 1 in District 23. Palm Gardens is situated within a short distance to Keat Hong Shopping Centre and Lot One Shoppers' Mall. Palm Gardens is a 19 storey condo consisting of 694 residential units comprising of 2, 3 or 4 bedrooms and a separate commercial shop unit.
After a dispute that arose from the management council elections in November last year in 2021, six aggrieved home owners challenged the condo's managing agent's position that the property was a mixed development and thus, one council seat was reserved for the minimart owner and brought the case to Strata Titles Board arguing that the decision to reserve a council seat for the shop owner was wrong in law.
The case centred on the interpretation of the term “mixed-use development” in a provision of the Building Maintenance and Strata Management Act. Under the Act, at least one council seat must be reserved for each class of use in mixed-use developments.
Thus, the argument is centred on whether a residential condo with only a single shop unit instead of a number of shops within a designated mall area within the development is still considered as a mixed-use development.
The dispute centred on whether the owner of a minimart located inside a condominium development in Choa Chu Kang can automatically became a member of the property's management council without the need to be nominated at the AGM every year.
Palm Gardens is a 99-year leasehold condominium development located along Hong San Walk, off Choa Chu Kang Avenue 1 in District 23. Palm Gardens is situated within a short distance to Keat Hong Shopping Centre and Lot One Shoppers' Mall. Palm Gardens is a 19 storey condo consisting of 694 residential units comprising of 2, 3 or 4 bedrooms and a separate commercial shop unit.
After a dispute that arose from the management council elections in November last year in 2021, six aggrieved home owners challenged the condo's managing agent's position that the property was a mixed development and thus, one council seat was reserved for the minimart owner and brought the case to Strata Titles Board arguing that the decision to reserve a council seat for the shop owner was wrong in law.
The case centred on the interpretation of the term “mixed-use development” in a provision of the Building Maintenance and Strata Management Act. Under the Act, at least one council seat must be reserved for each class of use in mixed-use developments.
Thus, the argument is centred on whether a residential condo with only a single shop unit instead of a number of shops within a designated mall area within the development is still considered as a mixed-use development.
Palm Gardens is not considered as a mixed-use development - STB
The three-member Strata Titles Board (STB) agreed with the six aggrieved home owners and decided that the Palm Gardens is not considered as a mixed-use development and ordered the condo's management corporation to pay the six "justifiably aggrieved" home owners a total sum of $1,600 in costs in Sept 2022.
The Strata Titles Board (STB) disagreed that the presence of both residential units and a commercial unit in the property made it a mixed-use development and added that such "ancillary shops" in condominiums are allowed to operate only under limited circumstances. As the shop is not open to the public, the Strata Titles Board declared the contention that the property is a mixed-use development is not supported.
Palm Gardens' management corporation subsequently lodged an appeal to the High Court over the proper interpretation of the relevant provision under the Act.
The three-member Strata Titles Board (STB) agreed with the six aggrieved home owners and decided that the Palm Gardens is not considered as a mixed-use development and ordered the condo's management corporation to pay the six "justifiably aggrieved" home owners a total sum of $1,600 in costs in Sept 2022.
The Strata Titles Board (STB) disagreed that the presence of both residential units and a commercial unit in the property made it a mixed-use development and added that such "ancillary shops" in condominiums are allowed to operate only under limited circumstances. As the shop is not open to the public, the Strata Titles Board declared the contention that the property is a mixed-use development is not supported.
Palm Gardens' management corporation subsequently lodged an appeal to the High Court over the proper interpretation of the relevant provision under the Act.
High Court Reversed Strata Title Board (STB) Ruling
On 28 November 2022, the High Court reversed the decision by the Strata Titles Board and ruled that it was not wrong for the owner of a minimart in Palm Gardens condominium to get a seat on the property’s management council without having to be elected.
Justice Kwek examined the replies given by URA and the Building and Construction Authority (BCA) to queries from the parties. He noted that a BCA deputy director had told the managing agent to refer to the written permission issued by URA to check what class of use the shop came under. Instead, the Strata Titles Board relied on a reply from a more junior BCA officer, who said the condo was registered as a residential development, without specifying what the registration related to.
The High Court therefore rejected arguments by the six home owners that a shop operating on land that has been zoned as “residential” does not fall under the “commercial” class of use saying this went against the plain words of the relevant provision in the Act.
In written grounds of decision issued on Monday, 28 November 2022 - Justice Kwek Mean Luck found that Palm Gardens, which has 695 separate strata units – 694 residential units and a shop unit – met the criteria of being a “mixed-use development”.
Justice Kwek referred to the planning permission issued by the Urban Redevelopment Authority (URA) on Dec 14, 2000. “In my view, the fact that Palm Gardens was authorised to have both residential units and a shop unit meant that Palm Gardens was authorised under the Planning Act for two classes of use – residence and commercial,” said the judge.
Some may wonder if the High Court's judgement will benefit the owners of Palm Gardens if this condo development is classified under 'mixed-use development site'. Developers usually may place a higher value on a plot of land if they are able to develop the land as a mixed-use project with a shopping mall below the residential homes especially if its located very near to an LRT or MRT station. Palm Gardens is located within less than 1 minute walk to Keat Hong LRT station surrounded by thousands of households that will likely welcome a new mall in the vicinity.
On 28 November 2022, the High Court reversed the decision by the Strata Titles Board and ruled that it was not wrong for the owner of a minimart in Palm Gardens condominium to get a seat on the property’s management council without having to be elected.
Justice Kwek examined the replies given by URA and the Building and Construction Authority (BCA) to queries from the parties. He noted that a BCA deputy director had told the managing agent to refer to the written permission issued by URA to check what class of use the shop came under. Instead, the Strata Titles Board relied on a reply from a more junior BCA officer, who said the condo was registered as a residential development, without specifying what the registration related to.
The High Court therefore rejected arguments by the six home owners that a shop operating on land that has been zoned as “residential” does not fall under the “commercial” class of use saying this went against the plain words of the relevant provision in the Act.
In written grounds of decision issued on Monday, 28 November 2022 - Justice Kwek Mean Luck found that Palm Gardens, which has 695 separate strata units – 694 residential units and a shop unit – met the criteria of being a “mixed-use development”.
Justice Kwek referred to the planning permission issued by the Urban Redevelopment Authority (URA) on Dec 14, 2000. “In my view, the fact that Palm Gardens was authorised to have both residential units and a shop unit meant that Palm Gardens was authorised under the Planning Act for two classes of use – residence and commercial,” said the judge.
Some may wonder if the High Court's judgement will benefit the owners of Palm Gardens if this condo development is classified under 'mixed-use development site'. Developers usually may place a higher value on a plot of land if they are able to develop the land as a mixed-use project with a shopping mall below the residential homes especially if its located very near to an LRT or MRT station. Palm Gardens is located within less than 1 minute walk to Keat Hong LRT station surrounded by thousands of households that will likely welcome a new mall in the vicinity.
Extracted from Straits Times News Online - 30 November 2022
