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The Selective En bloc Redevelopment Scheme, or SERS for short, is an urban redevelopment strategy employed by the Housing and Development Board in Singapore to maintain and upgrade ageing public housing flats in older estates to revitalise, improve amenities and facilities for the residents in the older estates in Singapore.
For the past few weeks, SERS has been been discussed & debated fervently in the social media, at coffeshops and all across Singapore. It was even brought up in parliament on Monday (4 July) regarding the seemingly inappropriate compensation given to the affected households of the Ang Mo Kio SERS or the top-ups they need to pay when they select their brand new replacement flats that is located nearer to the MRT station.
For the past few weeks, SERS has been been discussed & debated fervently in the social media, at coffeshops and all across Singapore. It was even brought up in parliament on Monday (4 July) regarding the seemingly inappropriate compensation given to the affected households of the Ang Mo Kio SERS or the top-ups they need to pay when they select their brand new replacement flats that is located nearer to the MRT station.
In April this year, blocks 562, 563, 564 and 565 along Ang Mo Kio Avenue 3 have been chosen for the Housing and Development Board's Selective En bloc Redevelopment scheme.
Real estate professional Kiwi Lim from Huttons Asia felt that this degree of unhappiness from the households affected by SERS was unusual as SERS is supposed to bring about a TOTO effect equivalent to a private residential Enbloc scenario for public housing.
The reason why affected households are unhappy with the SERS compensation could be attributed to the high resale value that is seen in the public housing market so far and the seemingly inappropriate compensation the households get from the government's valuation of their flats for SERS.
To mitigate and compromise for a solution, the HDB announced on 2 July Saturday that all the owners of flats undergoing the Selective En bloc Redevelopment Scheme (Sers) in Ang Mo Kio will be given two more rehousing options that address their concerns about having to fork out cash for similarly-sized replacement units. Residents had previously expressed dismay at having to pay up to $100,000 for a replacement flat. HDB understands their concerns and has therefore provided the additional options to help them purchase their new replacement flats.
You may read about the two unprecedented options offered by HDB for future SERS households here.
Real estate professional Kiwi Lim from Huttons Asia felt that this degree of unhappiness from the households affected by SERS was unusual as SERS is supposed to bring about a TOTO effect equivalent to a private residential Enbloc scenario for public housing.
The reason why affected households are unhappy with the SERS compensation could be attributed to the high resale value that is seen in the public housing market so far and the seemingly inappropriate compensation the households get from the government's valuation of their flats for SERS.
To mitigate and compromise for a solution, the HDB announced on 2 July Saturday that all the owners of flats undergoing the Selective En bloc Redevelopment Scheme (Sers) in Ang Mo Kio will be given two more rehousing options that address their concerns about having to fork out cash for similarly-sized replacement units. Residents had previously expressed dismay at having to pay up to $100,000 for a replacement flat. HDB understands their concerns and has therefore provided the additional options to help them purchase their new replacement flats.
You may read about the two unprecedented options offered by HDB for future SERS households here.
How does HDB's HIP polling system work?
Some of you may be familiar with HDB’s Home Improvement Programme (HIP) program. When HDB flats age beyond 40 years, it is inevitable that some refurbishment and maintenance is needed for these flats to remain in good living condition. The Home Improvement Programme (HIP) was introduced in 2007 to focus on the common maintenance issues of ageing HDB flats.
The HIP comprises 3 components – Essential, Optional and Enhancement for Active Seniors (EASE) Improvements. If your block votes in favour of the HIP, you will enjoy Essential Improvements that are important for public health and safety. At the same time, you can opt for Optional and EASE improvements.
When your precinct has been shortlisted for HIP, you'll receive a letter from HDB. The HIP will proceed if at least 75% of a block's eligible Singapore Citizen households have voted in favour of the HIP. If you want to go for the optional improvements or EASE items, you can opt in during the polling period.
If less than 75% votes were obtained, the HIP program will not proceed for the block or blocks in the estate.
Some of you may be familiar with HDB’s Home Improvement Programme (HIP) program. When HDB flats age beyond 40 years, it is inevitable that some refurbishment and maintenance is needed for these flats to remain in good living condition. The Home Improvement Programme (HIP) was introduced in 2007 to focus on the common maintenance issues of ageing HDB flats.
The HIP comprises 3 components – Essential, Optional and Enhancement for Active Seniors (EASE) Improvements. If your block votes in favour of the HIP, you will enjoy Essential Improvements that are important for public health and safety. At the same time, you can opt for Optional and EASE improvements.
When your precinct has been shortlisted for HIP, you'll receive a letter from HDB. The HIP will proceed if at least 75% of a block's eligible Singapore Citizen households have voted in favour of the HIP. If you want to go for the optional improvements or EASE items, you can opt in during the polling period.
If less than 75% votes were obtained, the HIP program will not proceed for the block or blocks in the estate.
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As countries around the world saw their inflation figures peaking at alarming rates in 2022, especially when intensified by the Russia-Ukraine war which affected prices of oil, farm products and essential goods fueling the inflation worldwide.
While global GDP growth was strong in early 2022, overall prospects for the global economy are uncertain and hinge on the evolution of the conflict and regional pandemic situation.
Recently nations have been tightening government policies and raising interest rates, pushing the global economy into a synchronised slowdown in growth. Europe, Britain, Japan, South Korea, Australia, Canada and the United States are expected to fall into recession in 2023.
The world economy seem to be engineering a growth slowdown to rein in high inflation which is likely to persist as price pressures have spread beyond commodities to services items, rentals and wages.
The depth of recession will vary among nations and the degree of recession in US, Europe, China, Asia, India, Australia will be varied. Europe will definitely suffer much if Russia entirely cuts off gas to Europe.
While global GDP growth was strong in early 2022, overall prospects for the global economy are uncertain and hinge on the evolution of the conflict and regional pandemic situation.
Recently nations have been tightening government policies and raising interest rates, pushing the global economy into a synchronised slowdown in growth. Europe, Britain, Japan, South Korea, Australia, Canada and the United States are expected to fall into recession in 2023.
The world economy seem to be engineering a growth slowdown to rein in high inflation which is likely to persist as price pressures have spread beyond commodities to services items, rentals and wages.
The depth of recession will vary among nations and the degree of recession in US, Europe, China, Asia, India, Australia will be varied. Europe will definitely suffer much if Russia entirely cuts off gas to Europe.
The world will need to stabilise global commodity prices and resolve logistics and supply constraints as well as easing labour shortages in order to manage consumer prices amid strong demand. Singapore has been taking an aggressive approach to further tighten its monetary policy settings in 2 ways, while also raising its inflation forecast, citing fresh shocks to global commodity prices and supply chains that are adding to domestic cost pressures.
Singapore is not spared either with headline inflation for January and February rising to 4.2 per cent, up from 3.7 per cent in the fourth quarter last year; core inflation, which excludes accommodation and private transport, was 2.3 per cent for the same period, increasing from Q4's 1.7 per cent. The Monetary Authority of Singapore (MAS) warned that inflation is likely to increase by "more than previously anticipated" in the quarters ahead, due to "sharply higher" global commodity prices since late February and renewed supply chain disruptions arising from the Ukraine war and the Covid-19 pandemic.
Singapore's central bank is working hard to "recentre the mid-point" of the Singapore dollar nominal effective exchange rate (S$NEER) policy band at the prevailing rate, as well as "slightly raise" the rate of appreciation of the policy band. There is no change to the width of the policy band. This is according to its latest monetary policy statement, which is typically published twice a year.
This tighter monetary policy stance, which builds on the policy moves in October 2021 and January 2022, is expected to slow the inflation momentum and help ensure medium-term price stability.
Singapore is not spared either with headline inflation for January and February rising to 4.2 per cent, up from 3.7 per cent in the fourth quarter last year; core inflation, which excludes accommodation and private transport, was 2.3 per cent for the same period, increasing from Q4's 1.7 per cent. The Monetary Authority of Singapore (MAS) warned that inflation is likely to increase by "more than previously anticipated" in the quarters ahead, due to "sharply higher" global commodity prices since late February and renewed supply chain disruptions arising from the Ukraine war and the Covid-19 pandemic.
Singapore's central bank is working hard to "recentre the mid-point" of the Singapore dollar nominal effective exchange rate (S$NEER) policy band at the prevailing rate, as well as "slightly raise" the rate of appreciation of the policy band. There is no change to the width of the policy band. This is according to its latest monetary policy statement, which is typically published twice a year.
This tighter monetary policy stance, which builds on the policy moves in October 2021 and January 2022, is expected to slow the inflation momentum and help ensure medium-term price stability.
Singapore has seen the latest surge in energy and agricultural commodity prices causing domestic inflation for electricity and gas, fuel and non-cooked food over the past year which in turn affects transportation and logistics in almost every other industry.
Strong pent-up demand for discretionary expenditure among Singaporeans and low resident unemployment rate in a tight labour market will keep employment figures well supported into 2023.
Real estate professional Kiwi Lim from Huttons Asia believe Singapore's economy will be suitably cushioned to prevent a hard landing as the island nation is well diversified in its economic umbrella and has cut down on its over reliance on America & Europe for its trade. The aggregate economic growth in Singapore’s major trading partners in Asia, China and India is expected to ease somewhat but the savings and wealth accumulated in recent years especially in Asian giants like China and India which Singapore has extensive trade and economic relations with will help cushion the deeper recessionary impact that may be seen widely in America and European countries towards the 2nd half of 2023.
Against this backdrop, Singapore's trade-related and modern services sector in 2023 may see a slower expansion or stagnation as compared to 2022, although the recovery in the domestic-oriented and travel-related sectors should "gather pace" with the relaxation of Covid-19 measures.
Strong pent-up demand for discretionary expenditure among Singaporeans and low resident unemployment rate in a tight labour market will keep employment figures well supported into 2023.
Real estate professional Kiwi Lim from Huttons Asia believe Singapore's economy will be suitably cushioned to prevent a hard landing as the island nation is well diversified in its economic umbrella and has cut down on its over reliance on America & Europe for its trade. The aggregate economic growth in Singapore’s major trading partners in Asia, China and India is expected to ease somewhat but the savings and wealth accumulated in recent years especially in Asian giants like China and India which Singapore has extensive trade and economic relations with will help cushion the deeper recessionary impact that may be seen widely in America and European countries towards the 2nd half of 2023.
Against this backdrop, Singapore's trade-related and modern services sector in 2023 may see a slower expansion or stagnation as compared to 2022, although the recovery in the domestic-oriented and travel-related sectors should "gather pace" with the relaxation of Covid-19 measures.
Extracted from Business Times online article
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Artist's impression of the replacement HDB flats for residents of the four blocks in Ang Mo Kio which that have been selected for SERS (Image: HDB)
A few months ago in April, blocks 562, 563, 564 and 565 along Ang Mo Kio Avenue 3 have been chosen for the Housing and Development Board's Selective En bloc Redevelopment scheme. The HDB had selected these blocks to be under Sers in a scheme aimed at rejuvenating older estates in Singapore. Completed in 1979, flats in the four affected blocks in Ang Mo Kio comprise mainly three- and four-room units.
The 606 households affected by the government acquisition were previously only offered replacement flats with a fresh 99-year lease in Ang Mo Kio Drive, next to ITE College Central. Owners also could not apply for the lease buyback scheme after their flats had been announced for Sers.
Subsequently, there was a big commotion among home owners affected by HDB's decision to Selective En bloc Redevelopment Scheme (Sers) their blocks of flats in Ang Mo Kio. Some owners were upset with the need to top up money for similar-sized replacement flats, HDB had promised them that they will explore 'options'.
Today on 2 July Saturday, HDB announced to all the owners of flats undergoing the Selective En bloc Redevelopment Scheme (Sers) in Ang Mo Kio that they will be given two more rehousing options that address their concerns about having to fork out cash for similarly-sized replacement units. Residents had previously expressed dismay at having to pay up to $100,000 for a replacement flat. HDB understands their concerns and has therefore provided the additional options to help them purchase their new replacement flats.
Option 1: 50-year lease
The Housing Board said it will offer affected residents at the four Sers blocks in Ang Mo Kio three-room or larger flats at the replacement sites on a 50-year lease, if the new flat is able to last the owners until they are 95. This is the first time that HDB is offering four-room flats on a shorter lease.
Option 2: Lease Buy Back Scheme
Alternatively, HDB will also offer the lease buyback scheme to those aged 65 and over at the Sers site. They can then buy a short-lease replacement flat after that, HDB said. Under the lease buyback scheme, flat owners can keep a lease that will cover them and their spouse till they are at least 95 years old, and sell the tail-end of the lease to HDB.
HDB said these two additional rehousing options will first be offered to eligible Sers flat owners in Blocks 562 to 565 Ang Mo Kio Avenue 3, and later extended to flat owners of Blocks 212 to 218 Marsiling Crescent/Lane whose flats were announced for acquisition for the redevelopment and extension of Woodlands Checkpoint.
The 606 households affected by the government acquisition were previously only offered replacement flats with a fresh 99-year lease in Ang Mo Kio Drive, next to ITE College Central. Owners also could not apply for the lease buyback scheme after their flats had been announced for Sers.
Subsequently, there was a big commotion among home owners affected by HDB's decision to Selective En bloc Redevelopment Scheme (Sers) their blocks of flats in Ang Mo Kio. Some owners were upset with the need to top up money for similar-sized replacement flats, HDB had promised them that they will explore 'options'.
Today on 2 July Saturday, HDB announced to all the owners of flats undergoing the Selective En bloc Redevelopment Scheme (Sers) in Ang Mo Kio that they will be given two more rehousing options that address their concerns about having to fork out cash for similarly-sized replacement units. Residents had previously expressed dismay at having to pay up to $100,000 for a replacement flat. HDB understands their concerns and has therefore provided the additional options to help them purchase their new replacement flats.
Option 1: 50-year lease
The Housing Board said it will offer affected residents at the four Sers blocks in Ang Mo Kio three-room or larger flats at the replacement sites on a 50-year lease, if the new flat is able to last the owners until they are 95. This is the first time that HDB is offering four-room flats on a shorter lease.
Option 2: Lease Buy Back Scheme
Alternatively, HDB will also offer the lease buyback scheme to those aged 65 and over at the Sers site. They can then buy a short-lease replacement flat after that, HDB said. Under the lease buyback scheme, flat owners can keep a lease that will cover them and their spouse till they are at least 95 years old, and sell the tail-end of the lease to HDB.
HDB said these two additional rehousing options will first be offered to eligible Sers flat owners in Blocks 562 to 565 Ang Mo Kio Avenue 3, and later extended to flat owners of Blocks 212 to 218 Marsiling Crescent/Lane whose flats were announced for acquisition for the redevelopment and extension of Woodlands Checkpoint.
The latest announcement means that residents in the affected blocks in Ang Mo Kio and Marsiling will have a range of options, including buying the replacement flats that come with a fresh 99-year lease, almost double the lease of the existing flats by the time they move out in end-2027.
Owners who do not wish to take up a new replacement flat can choose to sell their Sers flats with the rehousing benefits on the open market.
HDB said the registration for new replacement flats in Ang Mo Kio Drive will start in early 2023 and residents will have until their flat selection appointments, estimated to be at the end of 2023 or early in 2024, to pick an option.
HDB added: "For the flat owners in Ang Mo Kio this 50-year lease length would be close to the balance lease of their existing flats when they move to their replacement flats around end-2027." To be eligible, the flat owners and their spouse need to be at least 45 years old at the point of the Sers announcement, which was in April this year, to ensure that the lease of the replacement flat can cover them until the age of at least 95, HDB said.
Flat owners who choose this option will be able to sell their flat on the resale market after meeting the minimum occupation period of five years, it added. HDB said: "Further details on the actual selling prices of the replacement flats at the designated Sers replacement site in Ang Mo Kio Drive will be made known to residents during flat selection."
Owners who do not wish to take up a new replacement flat can choose to sell their Sers flats with the rehousing benefits on the open market.
HDB said the registration for new replacement flats in Ang Mo Kio Drive will start in early 2023 and residents will have until their flat selection appointments, estimated to be at the end of 2023 or early in 2024, to pick an option.
HDB added: "For the flat owners in Ang Mo Kio this 50-year lease length would be close to the balance lease of their existing flats when they move to their replacement flats around end-2027." To be eligible, the flat owners and their spouse need to be at least 45 years old at the point of the Sers announcement, which was in April this year, to ensure that the lease of the replacement flat can cover them until the age of at least 95, HDB said.
Flat owners who choose this option will be able to sell their flat on the resale market after meeting the minimum occupation period of five years, it added. HDB said: "Further details on the actual selling prices of the replacement flats at the designated Sers replacement site in Ang Mo Kio Drive will be made known to residents during flat selection."
Real estate professional Kiwi Lim from Huttons Asia felt these additional option is fair to owners who have no financial ability to pay for the top-up of the lease for the new SERs flat. There are some owners who said they had intended to live throughout their old lease and therefore had no spare funds for SERs replacement flats. Owners will be happy to know that they no longer need to pay for top-up fees for their new flats, although their flats will see a lower value as compared to their neighbors living in the same block with 99 yrs lease. These owners of flats with shorter leases will face issues when they intend to sell in the years ahead and the values of their flats will definitely depreciate faster than their neighbors' flats in the same block with longer leases thus creating an unusual scenario.
SERS was introduced in 1995 as part of the government’s efforts to renew older housing estates. It entails the government taking back the sites, with SERS residents given a package that includes compensation and rehousing benefits, as well as the opportunity to move to a new home on a fresh 99-year lease.
Residents who have queries can also contact their Sers Journey Manager, call HDB's Sers inquiry line on 1800-866-3070 from Mondays to Fridays, 8am to 5pm, or contact HDB via MyRequest@HDB.
Extracted from Straits Times online 2 July 2022
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Prices of conservation shophouses has risen amid strong demand and limited supply which tempted shophouse owners to flip these heritage properties for quick gains resulting in 217 transactions worth S$1.53b in 2021
Even as central banks began hiking interest rates with the threat of a seeming recession, the global economy is still going strong with new businesses continuing to grow and flow. It seems any recession, if it did occur in the next few years, would be mild with little lasting global economic impact.
5 shophouses on Club Street sold for S$25.9 million
A row of 5 shophouses commanding a prominent 50-metre wide triple road frontage on 1, 3 and 5 Club Street, which are 3 storeys high with an attic, and numbers 7 and 9 Club Street, which are 2 storeys high - sitting on a combined land of approximately 3,557 square feet (sq ft), with an estimated total built-up area of 7,225 sq ft has been sold for nearly $26 million translating to S$3,582 per sq ft on the blended floor area to mainboard-listed food services and property development company ABR Holdings.
It was reported that response to the EOI for the shophouses were “overwhelming”, with enquiries from many new-to-market buyers from China, Hong Kong and Indonesia as the shophouses were on a rare island site coupled with excellent locational attributes in the Central Business District.
The past two months also saw several transactions for shophouses, e.g. 93 Tanjong Pagar Rd sold for S$13.25m, Hotel Soloha in Teck Lim Road changed hands for S$53.38 million, 3 shophouses at corner of Kreta Ayer and Keong Saik roads sell for slightly above S$44 million, etc.
The flow of hot money has brought about an increase in prices of conservation shophouses amid strong demand and limited supply which tempted shophouse owners to flip these heritage properties for quick gains resulting in 217 transactions worth S$1.53b last year.
Coffeeshops
An adjacent coffeeshop at Blk 201D Tampines Street 21 has recently been sold for S$16,800,000. The same buyer also bought a coffeeshop located at Block 201 Tampines Street 21 sold for a record S$41,682,168 with the buyer spending a total of close to S$60 million on both coffeeshops in Tampines.
5 shophouses on Club Street sold for S$25.9 million
A row of 5 shophouses commanding a prominent 50-metre wide triple road frontage on 1, 3 and 5 Club Street, which are 3 storeys high with an attic, and numbers 7 and 9 Club Street, which are 2 storeys high - sitting on a combined land of approximately 3,557 square feet (sq ft), with an estimated total built-up area of 7,225 sq ft has been sold for nearly $26 million translating to S$3,582 per sq ft on the blended floor area to mainboard-listed food services and property development company ABR Holdings.
It was reported that response to the EOI for the shophouses were “overwhelming”, with enquiries from many new-to-market buyers from China, Hong Kong and Indonesia as the shophouses were on a rare island site coupled with excellent locational attributes in the Central Business District.
The past two months also saw several transactions for shophouses, e.g. 93 Tanjong Pagar Rd sold for S$13.25m, Hotel Soloha in Teck Lim Road changed hands for S$53.38 million, 3 shophouses at corner of Kreta Ayer and Keong Saik roads sell for slightly above S$44 million, etc.
The flow of hot money has brought about an increase in prices of conservation shophouses amid strong demand and limited supply which tempted shophouse owners to flip these heritage properties for quick gains resulting in 217 transactions worth S$1.53b last year.
Coffeeshops
An adjacent coffeeshop at Blk 201D Tampines Street 21 has recently been sold for S$16,800,000. The same buyer also bought a coffeeshop located at Block 201 Tampines Street 21 sold for a record S$41,682,168 with the buyer spending a total of close to S$60 million on both coffeeshops in Tampines.
Commercial property segment
Singapore's commercial property market is also not to be outdone as transactions continue breathing life and vibrancy in this sector. The latest deal is at Bugis Junction Towers, where Sun Venture Group is said to be doing exclusive due diligence with a view to buy the 15-storey office block for between S$675 million and S$680 million. This translates to close to S$2,720 per square foot on the net lettable area (NLA) of 248,853 sq ft estimating the net rental yield to be at around 3 per cent. Located above Bugis MRT station, Bugis Junction Towers has about 94 per cent occupancy, and monthly average rents on existing leases are at the S$8-plus psf level. The anchor tenant in the building is Enterprise Singapore.
In Peck Seah Street, Tokyo-based Kajima Corporation is paying S$111.1 million for Nehsons Building, an almost 50-year-old office building, which when redeveloped, will add to the area’s gentrification. Nehsons Building’s existing gross floor area (GFA) of around 69,240 sq ft offers a potential for Kajima to optimise Nehsons Building by redeveloping it into a mixed-used asset that includes commercial and residential components. Earlier this year, Kajima bought 55 Market Street, a 16-storey 999-year leasehold office building, from AEW for S$286.9 million (or S$3,450 psf on NLA). Research by JLL as at 28 Jun 2022 show that S$4.7 billion of Singapore office assets have been transacted in the 1st half of this year, including the Westgate Tower deal.
Over at the industrial property segment, an entity linked to LaSalle Investment Management is understood to be acquiring Victory Centre, a 7-storey ramp-up facility near the Aljunied MRT station, for S$90 million with about 50 years left on the lease. Located at the corner of Sims Drive and Aljunied Road, the light industrial building's gross floor area is close to 170,000 sq ft, reflecting the 2.5 plot ratio (or ratio of maximum GFA to land area) designated for the Business 1-zoned site under the URA Master Plan. The building’s space has been carved into more than 80 units, averaging about 1,600 sq ft each. It is almost fully occupied, with the passing rent said to average about S$2.50 psf a month.
As we face a current shortage in supply of new private residential properties, there is also a limited supply of good-quality prime CBD offices, conservation shophouses and industrial properties on sites with more than 30 years’ balance lease term.
Singapore's commercial property market is also not to be outdone as transactions continue breathing life and vibrancy in this sector. The latest deal is at Bugis Junction Towers, where Sun Venture Group is said to be doing exclusive due diligence with a view to buy the 15-storey office block for between S$675 million and S$680 million. This translates to close to S$2,720 per square foot on the net lettable area (NLA) of 248,853 sq ft estimating the net rental yield to be at around 3 per cent. Located above Bugis MRT station, Bugis Junction Towers has about 94 per cent occupancy, and monthly average rents on existing leases are at the S$8-plus psf level. The anchor tenant in the building is Enterprise Singapore.
In Peck Seah Street, Tokyo-based Kajima Corporation is paying S$111.1 million for Nehsons Building, an almost 50-year-old office building, which when redeveloped, will add to the area’s gentrification. Nehsons Building’s existing gross floor area (GFA) of around 69,240 sq ft offers a potential for Kajima to optimise Nehsons Building by redeveloping it into a mixed-used asset that includes commercial and residential components. Earlier this year, Kajima bought 55 Market Street, a 16-storey 999-year leasehold office building, from AEW for S$286.9 million (or S$3,450 psf on NLA). Research by JLL as at 28 Jun 2022 show that S$4.7 billion of Singapore office assets have been transacted in the 1st half of this year, including the Westgate Tower deal.
Over at the industrial property segment, an entity linked to LaSalle Investment Management is understood to be acquiring Victory Centre, a 7-storey ramp-up facility near the Aljunied MRT station, for S$90 million with about 50 years left on the lease. Located at the corner of Sims Drive and Aljunied Road, the light industrial building's gross floor area is close to 170,000 sq ft, reflecting the 2.5 plot ratio (or ratio of maximum GFA to land area) designated for the Business 1-zoned site under the URA Master Plan. The building’s space has been carved into more than 80 units, averaging about 1,600 sq ft each. It is almost fully occupied, with the passing rent said to average about S$2.50 psf a month.
As we face a current shortage in supply of new private residential properties, there is also a limited supply of good-quality prime CBD offices, conservation shophouses and industrial properties on sites with more than 30 years’ balance lease term.
Singapore is Asia’s top wealth management centre attracting net inflows of estimated 2,800 this year — an 87% increase compared to 2019’s figure of 1,500 putting Singapore in third place, after the UAE and Australia
Henley Global Citizens Report this year expects Singapore to attract an estimated 2,800 high net worth foreign individual (HNWI) millionaires, mainly from the rest of Asia within these two years as more HNWI are choosing to reside and invest in Singapore.
Real estate professional Kiwi Lim from Huttons Asia expect to see more non residential transactions in the 2nd half of 2022 as more overseas funds are transferred into Singapore which is favored by HNWI as a country with good governance, stable financial center with availability of good international schools and a generally bilingual population in both English & Mandarin. The absence of inheritance tax attracts wealthy businessmen to stay in Singapore to build their businesses empire for their future generations providing more employment which also benefit Singaporeans.
The UK is seen to be steadily losing its attraction as a world financial center due to Brexit and rising taxes with net outflows of 1,500 HNWI predicted for 2022. America is also losing its appeal among migrating millionaires with the threat of higher taxes and a shift in priority towards a protectionist economy.
China’s deteriorating relationships with Australia, the US and the rest of the western nations are a major long-term concern for HNWI residing in China and Hong Kong (SAR China) as HNWI families are leaving to resettle in Singapore, Canada, Portugal and a few other countries. The war in Russia and Ukraine is making these two countries less popular with HNWI. Brazil and India are also expected to see more HNWI leaving within these few years.
Real estate professional Kiwi Lim from Huttons Asia expect to see more non residential transactions in the 2nd half of 2022 as more overseas funds are transferred into Singapore which is favored by HNWI as a country with good governance, stable financial center with availability of good international schools and a generally bilingual population in both English & Mandarin. The absence of inheritance tax attracts wealthy businessmen to stay in Singapore to build their businesses empire for their future generations providing more employment which also benefit Singaporeans.
The UK is seen to be steadily losing its attraction as a world financial center due to Brexit and rising taxes with net outflows of 1,500 HNWI predicted for 2022. America is also losing its appeal among migrating millionaires with the threat of higher taxes and a shift in priority towards a protectionist economy.
China’s deteriorating relationships with Australia, the US and the rest of the western nations are a major long-term concern for HNWI residing in China and Hong Kong (SAR China) as HNWI families are leaving to resettle in Singapore, Canada, Portugal and a few other countries. The war in Russia and Ukraine is making these two countries less popular with HNWI. Brazil and India are also expected to see more HNWI leaving within these few years.
From Business Times online news
- Published on
The GLS site at Dunman Road can potentially yield about 1,040 residential units. PHOTO: URA
Launched for tender in March 2022 by URA, the Dunman Road GLS site is slightly bigger than the Pine Grove (Parcel A) plot, but it comes with an even higher gross plot ratio. That’s why it has twice the estimated number of units - expected to yield about 1,040 private homes.
Located within less than 100m away from Dakota MRT, the 99 year leasehold Duman Road GLS land parcel was successfully bidded by SingHaiyi Group who placed the top bid of about S$1.28 billion - working out to around S$1,350.50 per square foot per plot ratio (psf ppr).
Compared to the Pine Grove (Parcel A) site, the Dunman Road GLS land parcel is very suitable for those who desire convenience and who don’t drive. For those who drive, they will also find it very convenient with the East Coast Parkway (ECP) just around a six-minute drive away. Real estate professional Kiwi Lim from Huttons Asia believe that SingHaiyi Group may price around $2,5xx psf for this plum land site that is less than three minutes walk to the MRT station expected to be launched next year.
"This shows China developers are still active in Singapore’s property market even as mainland China is facing intense pressure in its massive real estate industry due to Beijing reducing China developers’ reliance on debt in the last two years. China developers have been on the radar of global investors in the past year on their ability to repay their huge debts and the potential spillover which may adversely affect China’s macro economy" said Kiwi "especially considering its project size and land price amount, compounded by a 35 per cent ABSD on the developer should they not sell everything within 5 years".
Located within less than 100m away from Dakota MRT, the 99 year leasehold Duman Road GLS land parcel was successfully bidded by SingHaiyi Group who placed the top bid of about S$1.28 billion - working out to around S$1,350.50 per square foot per plot ratio (psf ppr).
Compared to the Pine Grove (Parcel A) site, the Dunman Road GLS land parcel is very suitable for those who desire convenience and who don’t drive. For those who drive, they will also find it very convenient with the East Coast Parkway (ECP) just around a six-minute drive away. Real estate professional Kiwi Lim from Huttons Asia believe that SingHaiyi Group may price around $2,5xx psf for this plum land site that is less than three minutes walk to the MRT station expected to be launched next year.
"This shows China developers are still active in Singapore’s property market even as mainland China is facing intense pressure in its massive real estate industry due to Beijing reducing China developers’ reliance on debt in the last two years. China developers have been on the radar of global investors in the past year on their ability to repay their huge debts and the potential spillover which may adversely affect China’s macro economy" said Kiwi "especially considering its project size and land price amount, compounded by a 35 per cent ABSD on the developer should they not sell everything within 5 years".
Source: URA
Meanwhile, an 80:20 joint venture between UOL Group and Singapore Land was the highest bidder for Pine Grove (Parcel A), with a bid of S$671.50 million or S$1,318.27 psf ppr. Amazingly, this was just S$800 more than the second-highest bid from Allgreen Properties’ Pine II Residential.
The Urban Redevelopment Authority has capped the maximum number of housing units for this site at 520 to manage traffic flow in the area. The adjacent Parcel B is available for application on the reserve list of the first-half 2022 Government Land Sales Programme.
With no new large projects along the Ulu Pandan and Pine Grove area in the past decade, there may be strong pent-up demand for private homes in this area. The second Pine Grove land parcel spans 25,039.2 sq m, with a maximum GFA of 52,582 sq m and is expected to yield 565 units.
The Urban Redevelopment Authority has capped the maximum number of housing units for this site at 520 to manage traffic flow in the area. The adjacent Parcel B is available for application on the reserve list of the first-half 2022 Government Land Sales Programme.
With no new large projects along the Ulu Pandan and Pine Grove area in the past decade, there may be strong pent-up demand for private homes in this area. The second Pine Grove land parcel spans 25,039.2 sq m, with a maximum GFA of 52,582 sq m and is expected to yield 565 units.
Edgeprop news on 2 June 2022
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Minister for National Development Desmond Lee announced that HDB is exploring offering open-plan BTO flats to home owners for their future HDB BTO launches to allow home owners to decide if they want their new Housing Board flat to have a home office or larger but fewer bedrooms.
The Government is currently mulling over the possibility of allowing people to choose their future home layout so that minimal hacking renovation is needed when they start collecting keys to their homes.
HDB is considering designing HDB flats with more open floor plans so home owners have flexibility to configure the various spaces according to their needs.
Land usage, waste reduction and environment conservation are critically important especially in times like this where we are faced with supply constraints due to the effects of climate change from global warming, increasingly volatile geo-politics and depleting supply of resources.
The Government is currently mulling over the possibility of allowing people to choose their future home layout so that minimal hacking renovation is needed when they start collecting keys to their homes.
HDB is considering designing HDB flats with more open floor plans so home owners have flexibility to configure the various spaces according to their needs.
Land usage, waste reduction and environment conservation are critically important especially in times like this where we are faced with supply constraints due to the effects of climate change from global warming, increasingly volatile geo-politics and depleting supply of resources.
Home & Decor features beautiful home designs for homes. Credit: Design: Asolidplan, Source: Home & Decor
Some possible advantages of open-plan flats may allow home owners to:
- efficiently plan their space for living, working from home and entertaining
- free play to test different multi-functional layouts for their homes
- potential increasing their home valuation valuation if their well designed space appeals to the new home owners
- Planning for easy flow & lighting in the house according to their lifestyle
- enjoy greater flexibility with the space
- allows increased creativity flow
Credit: Design: Space Sense Studio
Real estate consultant Kiwi Lim from Huttons Asia felt that open plan flats or apartments are 'the way of the future' as it reduces the structural stress to the building from incessant hacking of the walls that were built upon the completion of the building. Families have very different needs and a cookie-cutter layout most likely may not suit their needs fully. This will also greatly reduce renovation noise and construction waste as we see more and more home owners choosing to hack away some walls when they takeover the flat.
In fact, the government may consider going all the way to introduce fully open plan layout where there are no bedrooms and its just a huge cavernous house for the home buyers to have full control to design their own homes and for families who require extra sound proof walls, they can choose to build their own walls with extra insulation / sound proof materials.
Will you prefer future BTO flats / condos to offer open plan layouts?
Share your suggestions & views below.
In fact, the government may consider going all the way to introduce fully open plan layout where there are no bedrooms and its just a huge cavernous house for the home buyers to have full control to design their own homes and for families who require extra sound proof walls, they can choose to build their own walls with extra insulation / sound proof materials.
Will you prefer future BTO flats / condos to offer open plan layouts?
Share your suggestions & views below.
Straits Times online 30 May 2022
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New replacement flats located at Woodlands Street 13. (Image: Immigration and Checkpoints Authority, Housing and Development Board, Singapore Land Authority)
Nine Housing Board (HDB) blocks of flats - Blocks 210 to 218 at Marsiling Crescent and Marsiling Lane have been selected to be acquired by the HDB to make way for a further expansion of the Woodlands Checkpoint to address traffic congestion and meet a projected 40 per cent increase in traffic volumes by 2050.
The expansion will include the addition of “flexi-lanes” that can clear both cars and motorcycles, reducing travel time by as much as four times, the agencies said. This means a clearance time of 15 minutes, down from 60 minutes, during peak periods.
The Bukit Timah Expressway will be extended and enhanced to channel traffic directly to and from the Old Woodlands Town Centre extension. The immediate and surrounding local road networks will also be upgraded. The flat acquisition and subsequent redevelopment of Woodlands Checkpoint will be carried out progressively to minimise disruption to residents.
The expansion will include the addition of “flexi-lanes” that can clear both cars and motorcycles, reducing travel time by as much as four times, the agencies said. This means a clearance time of 15 minutes, down from 60 minutes, during peak periods.
The Bukit Timah Expressway will be extended and enhanced to channel traffic directly to and from the Old Woodlands Town Centre extension. The immediate and surrounding local road networks will also be upgraded. The flat acquisition and subsequent redevelopment of Woodlands Checkpoint will be carried out progressively to minimise disruption to residents.
Nine Housing Board (HDB) blocks of flats - Blocks 210 to 218 at Marsiling Crescent and Marsiling Lane have been selected to be acquired by the HDB to make way for a further expansion of the Woodlands Checkpoint
Owners of the sold flats at these affected blocks will be offered the same rehousing benefits as those offered under the Selective En bloc Redevelopment Scheme (Sers), including compensation based on the market value of their flats and the option to buy a new flat with a fresh 99-year lease. The existing flats at Marsiling Crescent are currently around 40 years old.
Residents and tenants of the 732 sold flats, 53 rental flats, one rental kiosk, six rental shops and one rental eating house will have to move out by the second quarter of 2028.
Among the housing benefits is compensation based on the market value of their flat at the date of the acquisition and the option to purchase a new flat with a fresh 99-year lease at a subsidised price. Flat owners may also receive a grant of up to S$30,000 and take out a housing loan from HDB for the purchase.
To help defray the expenses incurred in the move, HDB will also provide flat owners with a removal allowance, as well as stamp and legal fees. Eligible flat owners who do not wish to purchase a new flat can choose to sell their existing flats with the rehousing benefits on the open market.
Even though these flats enjoy the benefits under the Selective En bloc Redevelopment Scheme (Sers) which is aimed at rejuvenating older estates, HDB clarified that the project does not fall under the Sers programme which usually select old HDB estates in city fringe or prime locations.
Residents and tenants of the 732 sold flats, 53 rental flats, one rental kiosk, six rental shops and one rental eating house will have to move out by the second quarter of 2028.
Among the housing benefits is compensation based on the market value of their flat at the date of the acquisition and the option to purchase a new flat with a fresh 99-year lease at a subsidised price. Flat owners may also receive a grant of up to S$30,000 and take out a housing loan from HDB for the purchase.
To help defray the expenses incurred in the move, HDB will also provide flat owners with a removal allowance, as well as stamp and legal fees. Eligible flat owners who do not wish to purchase a new flat can choose to sell their existing flats with the rehousing benefits on the open market.
Even though these flats enjoy the benefits under the Selective En bloc Redevelopment Scheme (Sers) which is aimed at rejuvenating older estates, HDB clarified that the project does not fall under the Sers programme which usually select old HDB estates in city fringe or prime locations.
The offered precinct at Woodlands Street 13, indicated in yellow, will comprise five residential blocks. (Image: Immigration and Checkpoints Authority, Housing and Development Board, Singapore Land Authority)
Residents are surprised that their flats near the Woodlands Checkpoint could enjoy the opportunity to move to a brand new flat with a fresh 99 years lease. They felt the new location of the replacement flats is much better as they can now live beside the beautiful Marsiling green park - a big relief from the daily smog and dust at Woodlands Checkpoint. With Marsiling MRT station only a 10 minute stroll from their future new home, residents will also enjoy the convenience of nearby existing shops and eating houses.
Flat owners have the option of purchasing these new flats with better design and fittings, located within a precinct with modern and comprehensive facilities. There will be five blocks of new replacement flats at Woodlands Street 13 between 23 to 34 storeys high, comprising two-room Flexi, three-room, four-room and five-room flats. Eligible flat owners may receive a SERS grant of up to S$30,000 and take out a housing loan from HDB for the purchase of their new flat.
Flat owners have the option of purchasing these new flats with better design and fittings, located within a precinct with modern and comprehensive facilities. There will be five blocks of new replacement flats at Woodlands Street 13 between 23 to 34 storeys high, comprising two-room Flexi, three-room, four-room and five-room flats. Eligible flat owners may receive a SERS grant of up to S$30,000 and take out a housing loan from HDB for the purchase of their new flat.
Channelnewsasia online 26 May 2022
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Market expectations are rife that the U.S. Federal Reserve will hike interest rates to a high of 3 percentage points by the end of 2022 this year. If this happens, it would be the most aggressive hike by the US central bank since 2005 to control widespread inflation that is widely believed to be caused by the relentless printing of money to solve America's problems during the past 5 years. Their total liabilities is estimated to be more than $9 trillion mostly in the form of bonds.
The Federal Reserve had been massively printing money to purchase longer-term Treasury securities, e.g. bonds to keep interest rates low and money flowing through the economy during the pandemic as part of their efforts to support the economy through quantitative easing. Those purchases inject money into the economy to lower interest rates and therefore encourage lending and investment but the surge in prices has forced The Federal Reserve to dramatically rethink their monetary policy.
The federal funds rate sets how much banks charge each other for short-term lending, but also is tied to a variety of adjustable-rate consumer debt. Along with the strategic move to raise interest rates, the central bank also indicated it will begin reducing asset holdings on its $9 trillion balance sheet.
The Federal Reserve had been massively printing money to purchase longer-term Treasury securities, e.g. bonds to keep interest rates low and money flowing through the economy during the pandemic as part of their efforts to support the economy through quantitative easing. Those purchases inject money into the economy to lower interest rates and therefore encourage lending and investment but the surge in prices has forced The Federal Reserve to dramatically rethink their monetary policy.
The federal funds rate sets how much banks charge each other for short-term lending, but also is tied to a variety of adjustable-rate consumer debt. Along with the strategic move to raise interest rates, the central bank also indicated it will begin reducing asset holdings on its $9 trillion balance sheet.
The 50 basis point rate hike by The Federal Reserve on 4th May 2022 that pushed the federal funds rate to a range of 0.75%-1% shocked the market as most were only expecting a 25 basis point hike by the central bank.
However, the Federal Open Market Committee (FOMC) minutes released by The Federal Reserve on Wed 25 May 2022 mentioned “Most participants judged that 50 basis point increases in the target range would likely be appropriate at the next couple of meetings,”. In addition, Federal Open Market Committee (FOMC) members indicated that “a restrictive stance of policy may well become appropriate depending on the evolving economic outlook and the risks to the outlook.”
The Federal Reserve officials had earlier this month stressed the need to raise interest rates quickly and possibly more than markets anticipate to tackle a burgeoning inflation problem, minutes from their meeting released Wednesday showed.
However, the Federal Open Market Committee (FOMC) minutes released by The Federal Reserve on Wed 25 May 2022 mentioned “Most participants judged that 50 basis point increases in the target range would likely be appropriate at the next couple of meetings,”. In addition, Federal Open Market Committee (FOMC) members indicated that “a restrictive stance of policy may well become appropriate depending on the evolving economic outlook and the risks to the outlook.”
The Federal Reserve officials had earlier this month stressed the need to raise interest rates quickly and possibly more than markets anticipate to tackle a burgeoning inflation problem, minutes from their meeting released Wednesday showed.
The FOMC holds eight regularly scheduled meetings during the year and other meetings as needed. Real estate consultant Kiwi Lim believe that the minutes released yesterday imply that future Federal Reserve rate hikes this year may no longer be 25 basis point hikes but 50 basis point hikes. As of now, it seems the FOMC has approved half percentage point hikes in their plan to reduce the central bank’s $9 trillion balance sheet consisting mostly of Treasurys (bills, notes, bonds and securities issued by the United States Dept of the Treasury are Treasurys) and mortgage-backed securities starting from next month in June 2022 in their desperate attempt to pull down inflation running at a 40-year high.
From the FOMC minutes, Kiwi Lim expects home loan interest rates in Singapore to reach 3% by the end of this year, slightly earlier than market prediction of next year. Even at 3% interest rate, Kiwi Lim believe home owners in Singapore have holding power as our current TDSR for property buyers taking bank loans used the worst case scenario of 3.5% int rate to approve home loans. In addition to that, the TDSR also assumes that the borrower took a huge pay cut of 45%. Any borrower who passed this stringent TDSR stress test probably has the means to hold. Moreover, the LTV for the loan is maxed at 75% and not 90% like previously in 2005 therefore greatly limiting loan exposure.
From the FOMC minutes, Kiwi Lim expects home loan interest rates in Singapore to reach 3% by the end of this year, slightly earlier than market prediction of next year. Even at 3% interest rate, Kiwi Lim believe home owners in Singapore have holding power as our current TDSR for property buyers taking bank loans used the worst case scenario of 3.5% int rate to approve home loans. In addition to that, the TDSR also assumes that the borrower took a huge pay cut of 45%. Any borrower who passed this stringent TDSR stress test probably has the means to hold. Moreover, the LTV for the loan is maxed at 75% and not 90% like previously in 2005 therefore greatly limiting loan exposure.
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About 4,500 flats and two new projects under the Prime Location Public Housing (PLH) model will be launched in the May 2022 Build-to-Order (BTO) exercise as HDB plans to launch up to 23,000 new flats this year in a bid to ease the housing crunch in Singapore. The Bukit Merah projects originally planned for launch in May 2022 will be shifted to August 2022 to allow more time to review the project and to better spread out the location of projects in mature and non-mature estates at each launch.
There will be a good mix of new flats coming up in five towns - Bukit Merah, Jurong West, Queenstown, Toa Payoh and Yishun. The increased supply of flats will provide more housing options for young couples planning to start their marriage and parenthood journey, as well as for second-timer families, multi-generation families, the elderly, and singles.
There will be 2 PLH BTO projects in the mature estates of Bukit Merah and Queenstown, said the Housing and Development Board (HDB) on 23 May (Monday). As expected, there will be no 5 room flats avail in both projects as all 1,660 units in Bukit Merah and 860 units in Queenstown will comprise 3-room and 4-room flats.
Flats under the PLH model come with stricter buying and selling conditions, including a 10-year minimum occupation period and a subsidy clawback at the first resale transaction.
Buyers who want one of these flats on the resale market in future will also have to meet the prevailing eligibility conditions for buying a flat directly from the HDB . These include having at least one applicant who is a Singapore citizen, meeting the household income ceiling of $14,000 and not holding a private property or sold any in the last 30 months.
Singles above 35 years old will not be allowed to buy these PLH flats in the resale market in future. This is in contrast to current rules that do not place limitations on singles above the age of 35 buying resale flats.
The current new PLH model will be implemented for public housing in prime, central locations such as the city centre and Greater Southern Waterfront area.
There will be a good mix of new flats coming up in five towns - Bukit Merah, Jurong West, Queenstown, Toa Payoh and Yishun. The increased supply of flats will provide more housing options for young couples planning to start their marriage and parenthood journey, as well as for second-timer families, multi-generation families, the elderly, and singles.
There will be 2 PLH BTO projects in the mature estates of Bukit Merah and Queenstown, said the Housing and Development Board (HDB) on 23 May (Monday). As expected, there will be no 5 room flats avail in both projects as all 1,660 units in Bukit Merah and 860 units in Queenstown will comprise 3-room and 4-room flats.
Flats under the PLH model come with stricter buying and selling conditions, including a 10-year minimum occupation period and a subsidy clawback at the first resale transaction.
Buyers who want one of these flats on the resale market in future will also have to meet the prevailing eligibility conditions for buying a flat directly from the HDB . These include having at least one applicant who is a Singapore citizen, meeting the household income ceiling of $14,000 and not holding a private property or sold any in the last 30 months.
Singles above 35 years old will not be allowed to buy these PLH flats in the resale market in future. This is in contrast to current rules that do not place limitations on singles above the age of 35 buying resale flats.
The current new PLH model will be implemented for public housing in prime, central locations such as the city centre and Greater Southern Waterfront area.
HDB noted that it has increased the supply of new flats in recent years – launching around 14,600 BTO flats in 2019 to about 17,100 in 2021. The planned launches of up 23,000 new flats a year in 2022 and 2023 mark a 35 per cent increase from 2021’s figure.
Demand for public housing has increased “significantly” in recent years, with the overall number of applications received per BTO flat up from 3.7 times in 2019 to 5.5 times in 2021. This is due to more marriages as the larger cohorts of those born in the late 1980s to 1990s reach marriageable age, as well as the growing trend of smaller households. COVID-related factors and the buoyant resale market have also spurred demand for BTO flats.
Last year in 2021, more than half of Singapore’s 24 HDB towns clocked million-dollar resale flat transactions. Real estate consultant Kiwi Lim from Huttons Asia believe the trend will continue to grow with more million dollar HDB resale transactions and is convinced almost 70% of HDB estates across Singapore may fall under PLH model within 5 years. Kiwi Lim felt that classifying more estates under the PLH BTO model may be the government's plan to manage soaring HDB resale prices across the island in future.
Demand for public housing has increased “significantly” in recent years, with the overall number of applications received per BTO flat up from 3.7 times in 2019 to 5.5 times in 2021. This is due to more marriages as the larger cohorts of those born in the late 1980s to 1990s reach marriageable age, as well as the growing trend of smaller households. COVID-related factors and the buoyant resale market have also spurred demand for BTO flats.
Last year in 2021, more than half of Singapore’s 24 HDB towns clocked million-dollar resale flat transactions. Real estate consultant Kiwi Lim from Huttons Asia believe the trend will continue to grow with more million dollar HDB resale transactions and is convinced almost 70% of HDB estates across Singapore may fall under PLH model within 5 years. Kiwi Lim felt that classifying more estates under the PLH BTO model may be the government's plan to manage soaring HDB resale prices across the island in future.
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Award-winning developer Bukit Sembawang Estates Limited launched their latest private residential development - LIV@MB this weekend to an astounding success selling an estimated 78% by the end of of its preview weekend at 7pm on Sunday 22 May 2022 at an average selling price of $2,387 psf for this 99 year leasehold development with over 90% of buyers being Singaporeans. Over 1,200 cheques were collected as expressions of interest ahead of the weekend launch, which showed LIV@MB was four times over-subscribed. Satisfied with their launch performance, Bukit Sembawang decided that the sales gallery and showflat “will be temporarily closed until further notice” after today.
Located in district 15, along Arthur Road - LIV@MB was formerly The Katong Park Towers site in one of the best locations in eastern Singapore well-known for its idyllic and upmarket lifestyle. Katong Park Towers, a 99-year leasehold condominium was sold enbloc to a unit of Bukit Sembawang Estates who bought the estate for $345 million following a competitive tender which attracted a total of 10 bids and all were above the reserve price.
Katong Park Towers, which comprises 111 standard apartments, five penthouses and two commercial units, sits on a land area of 140,758 sq ft. It is located about 200 metres from the future Katong Park MRT Station, which is slated for completion in 2023. At the sale price of $345 million, the land rate for Katong Park Towers translates to $1,280 per sq ft per plot up to the development baseline, taking into account an estimated $60 million for the lease upgrading premium.
Located in district 15, along Arthur Road - LIV@MB was formerly The Katong Park Towers site in one of the best locations in eastern Singapore well-known for its idyllic and upmarket lifestyle. Katong Park Towers, a 99-year leasehold condominium was sold enbloc to a unit of Bukit Sembawang Estates who bought the estate for $345 million following a competitive tender which attracted a total of 10 bids and all were above the reserve price.
Katong Park Towers, which comprises 111 standard apartments, five penthouses and two commercial units, sits on a land area of 140,758 sq ft. It is located about 200 metres from the future Katong Park MRT Station, which is slated for completion in 2023. At the sale price of $345 million, the land rate for Katong Park Towers translates to $1,280 per sq ft per plot up to the development baseline, taking into account an estimated $60 million for the lease upgrading premium.
Just two weeks ago, City Developments Ltd (CDL) and MCL Land launched the preview sale for the 407-unit integrated city fringe condominium Piccadilly Grand on 7 May 2022 (Saturday) to a roaring success with 315 units out of the whole 407 unit project sold - making up approximately 77% of its total number of units. Piccadilly Grand is the first condo launch (developments with condo facilities) for 2022 and is expected to be closely watched by the market to gauge sentiment and demand from homebuyers.
Piccadilly Grand achieved average prices of about $2,150 psf, which has set a new benchmark for District 8 with more than 90% of the buyers consisting of Singaporeans while the remaining 10% of buyers are Permanent Residents and foreigners from China, India, Malaysia, the USA, Hong Kong, and Indonesia.
Piccadilly Grand achieved average prices of about $2,150 psf, which has set a new benchmark for District 8 with more than 90% of the buyers consisting of Singaporeans while the remaining 10% of buyers are Permanent Residents and foreigners from China, India, Malaysia, the USA, Hong Kong, and Indonesia.
The next upcoming condo project to be launched estimated around next month in June will be AMO Residence by a powerhouse joint venture group of developers - United Venture Development, a 60:20:20 joint venture (JV) between UOL Group, Singapore Land Group, and Kheng Leong.
United Venture Development (2021) was awarded the tender for a private housing site in Ang Mo Kio Avenue 1 in June last year (2021) for $381.4 million, or $12,031 per sq m of gross floor area or around $1,118 psf ppr. The JV partners say they will develop a 24- or 25-storey project of more than 370 units on this plum land parcel site, capitalising on the unblocked views towards Bishan-Ang Mo Kio Park and Lower Pierce Reservoir Park.
There are only a handful of remaining upcoming mass market condo projects in the pipeline this year - Lentor Modern, Tanah Merah Kechil condo and Jalan Anak Bukit condo.
Real estate professional Kiwi Lim from Huttons Asia believe these upcoming mass market condo launches can easily achieve more than 70% sales on preview day as long as developers maintain an affordable price range of between $2,200 psf to $2,400 psf due to a severe shortage in supply of new condo units in the current market. With at least 70% of existing new condo projects already seeing more than 80% of their total units sold, developers are once again hungry for land. Faced with limited choices of government land parcels up for sale, developers will have to consider paying more to enbloc older residential developments which will then drive up the price further.
United Venture Development (2021) was awarded the tender for a private housing site in Ang Mo Kio Avenue 1 in June last year (2021) for $381.4 million, or $12,031 per sq m of gross floor area or around $1,118 psf ppr. The JV partners say they will develop a 24- or 25-storey project of more than 370 units on this plum land parcel site, capitalising on the unblocked views towards Bishan-Ang Mo Kio Park and Lower Pierce Reservoir Park.
There are only a handful of remaining upcoming mass market condo projects in the pipeline this year - Lentor Modern, Tanah Merah Kechil condo and Jalan Anak Bukit condo.
Real estate professional Kiwi Lim from Huttons Asia believe these upcoming mass market condo launches can easily achieve more than 70% sales on preview day as long as developers maintain an affordable price range of between $2,200 psf to $2,400 psf due to a severe shortage in supply of new condo units in the current market. With at least 70% of existing new condo projects already seeing more than 80% of their total units sold, developers are once again hungry for land. Faced with limited choices of government land parcels up for sale, developers will have to consider paying more to enbloc older residential developments which will then drive up the price further.
