- Published on
According to the Urban Redevelopment Authority (URA), the central region comprises the towns of Bishan, Toa Payoh, Bukit Merah, Bukit Timah, Geylang, Marine Parade, Kallang, Novena, Tanglin, Queenstown including the Southern Islands and a central area consisting of, among others, the central business district and Orchard
For many Singaporeans, successfully balloting for a Build-To-Order (BTO) flat in a centrally located mature housing estate is akin to striking the lottery. Competition is stiff in the hotly sought-after estates of Toa Payoh, Geylang and Bishan, with the number of applicants per available flat sometimes veering into double digits, especially for five-room flats.
A total of 3,953 Build-To-Order (BTO) flats were launched for sale by the Housing Board on 17 Feb this Thursday, including 398 units in Kallang/Whampoa - the second project under the prime location public housing (PLH) HDB BTO model.
In central matured estate of Geylang, HDB also launched BTO project Dakota Crest in Geylang, with 443 two-room flexi, three-room and four-room flats on offer across three blocks located along Geylang River and the Geylang Park Connector, and is served by both Mountbatten MRT station and Dakota MRT station. Prices start from $352,000 for a three-room flat and $522,000 for a four-room flat estimated to be completed in the fourth quarter of 2027.
A total of 3,953 Build-To-Order (BTO) flats were launched for sale by the Housing Board on 17 Feb this Thursday, including 398 units in Kallang/Whampoa - the second project under the prime location public housing (PLH) HDB BTO model.
In central matured estate of Geylang, HDB also launched BTO project Dakota Crest in Geylang, with 443 two-room flexi, three-room and four-room flats on offer across three blocks located along Geylang River and the Geylang Park Connector, and is served by both Mountbatten MRT station and Dakota MRT station. Prices start from $352,000 for a three-room flat and $522,000 for a four-room flat estimated to be completed in the fourth quarter of 2027.
Last year's River Peaks I & II in Rochor were the first BTO flats launched under the recently announced Prime Location Public Housing (PLH) scheme by HDB. They come with a 6 per cent subsidy clawback upon resale of the homes and a 10-year minimum occupation period (MOP). Other restrictions include an income ceiling for future buyers of resale PLH flats.
These four-room PLH BTO flats in Rochor were the most popular in the latest BTO launch, and were 10.3 times oversubscribed with a total of 6,976 applications were received for 680 four-room BTO flats in Rochor. Three-room flats in the area drew far less demand, with 867 applications for 280 units.
Since 2015, there has not been a single five-room BTO flat launched outside of the Bidadari estate, which is part of Toa Payoh town. This comes even as HDB launched 9,273 four-room BTO flats in centrally located mature estates from 2015.
Due to the limited number of five-room HDB flats put out by the Housing Board (HDB) in the central region of Singapore, there are 14 times fewer five-room flats compared with four-room flats in the central region. In the towns of Bishan, Geylang, Kallang/Whampoa and other parts of Toa Payoh, four-room flats are the biggest flat type available in recent BTO projects.
According to the Urban Redevelopment Authority (URA) masterplan, the central region comprises the towns of Bishan, Toa Payoh, Bukit Merah, Bukit Timah, Geylang, Marine Parade, Kallang, Novena, Tanglin and Queenstown.
HDB feel that 4 room BTO flats in central areas were not the most in-demand BTO units this year, with flats in Bukit Merah and Hougang in earlier launches being far more popular. Four-room flats in Bukit Merah, launched in May, were 49.6 times oversubscribed, while similar sized flats in Hougang, launched in August, were 24.9 times oversubscribed.
These four-room PLH BTO flats in Rochor were the most popular in the latest BTO launch, and were 10.3 times oversubscribed with a total of 6,976 applications were received for 680 four-room BTO flats in Rochor. Three-room flats in the area drew far less demand, with 867 applications for 280 units.
Since 2015, there has not been a single five-room BTO flat launched outside of the Bidadari estate, which is part of Toa Payoh town. This comes even as HDB launched 9,273 four-room BTO flats in centrally located mature estates from 2015.
Due to the limited number of five-room HDB flats put out by the Housing Board (HDB) in the central region of Singapore, there are 14 times fewer five-room flats compared with four-room flats in the central region. In the towns of Bishan, Geylang, Kallang/Whampoa and other parts of Toa Payoh, four-room flats are the biggest flat type available in recent BTO projects.
According to the Urban Redevelopment Authority (URA) masterplan, the central region comprises the towns of Bishan, Toa Payoh, Bukit Merah, Bukit Timah, Geylang, Marine Parade, Kallang, Novena, Tanglin and Queenstown.
HDB feel that 4 room BTO flats in central areas were not the most in-demand BTO units this year, with flats in Bukit Merah and Hougang in earlier launches being far more popular. Four-room flats in Bukit Merah, launched in May, were 49.6 times oversubscribed, while similar sized flats in Hougang, launched in August, were 24.9 times oversubscribed.
Straits Times Graphics
As to why there is a limited supply of five-room BTO flats since 2015, HDB said the reason for the limited supply of five-room BTO flats in the central region was due to land constraint. “While flats in mature towns and estates are popular with flat buyers, land for new housing in central region areas is limited. Hence, more four-room and smaller BTO flats are provided to allow more families to live closer to the city.”
According to the Urban Redevelopment Authority (URA) masterplan, the central region comprises the towns of Bishan, Toa Payoh, Bukit Merah, Bukit Timah, Geylang, Marine Parade, Kallang, Novena, Tanglin, Queenstown including the Southern Islands and a central area consisting of, among others, the central business district and Orchard.
HDB had also offered around 500 five-room flats in the central region throughout the last five years under the Sale of Balance Flats exercises, Re-Offer of Balance Flats exercises - which has since been scrapped -and open booking of flats.
Whether HDB will launch five-room PLH HDB BTO flats will depend if there is demand for such units in central locations. If there are more five-room BTO flats launched in other non-central mature estates, especially near MRT stations, then demand for larger HDB flats may be drawn away from centrally located PLH areas. The demand for five-room PLH HDB BTOs will also depend if HDB relaxes the policy rules for HDB BTO flats purchased under the PLH model, such as the 6 per cent clawback and 10 year MOP period, etc.
Kiwi Lim from the 3rd largest real estate agency Huttons Asia believe another reason why HDB is not building any five-room HDB BTO flats in the central areas may be the price quantum. The selling price for a five-room HDB BTO in the central area may be priced around $700,000 to $850,000 even under the stricter PLH BTO model. These units will most probably be sold at more than $1 million in the resale market in future creating the sentiment that HDB is overpriced and no longer serving the interests of Singaporeans.
According to the Urban Redevelopment Authority (URA) masterplan, the central region comprises the towns of Bishan, Toa Payoh, Bukit Merah, Bukit Timah, Geylang, Marine Parade, Kallang, Novena, Tanglin, Queenstown including the Southern Islands and a central area consisting of, among others, the central business district and Orchard.
HDB had also offered around 500 five-room flats in the central region throughout the last five years under the Sale of Balance Flats exercises, Re-Offer of Balance Flats exercises - which has since been scrapped -and open booking of flats.
Whether HDB will launch five-room PLH HDB BTO flats will depend if there is demand for such units in central locations. If there are more five-room BTO flats launched in other non-central mature estates, especially near MRT stations, then demand for larger HDB flats may be drawn away from centrally located PLH areas. The demand for five-room PLH HDB BTOs will also depend if HDB relaxes the policy rules for HDB BTO flats purchased under the PLH model, such as the 6 per cent clawback and 10 year MOP period, etc.
Kiwi Lim from the 3rd largest real estate agency Huttons Asia believe another reason why HDB is not building any five-room HDB BTO flats in the central areas may be the price quantum. The selling price for a five-room HDB BTO in the central area may be priced around $700,000 to $850,000 even under the stricter PLH BTO model. These units will most probably be sold at more than $1 million in the resale market in future creating the sentiment that HDB is overpriced and no longer serving the interests of Singaporeans.
- Published on
Artist impression of the new King George's Heights development, under the Prime Location Public Housing Model. (Image: HDB)
The Housing Development Board (HDB) launched its 2nd Prime Location Public Housing (PLH) model BTO flats located in Kallang Whampoa in HDB's efforts to keep new public housing built in prime and central locations affordable and accessible for Singaporeans.
3,953 new Built-To-Order (BTO) flats are launched today on 17 Feb 2022 under the February 2022 BTO exercise including 398 flats under the PLH BTO project in Kallang Whampoa.
The 398 units in Kallang/Whampoa being the second project under the Prime Location Public Housing (PLH) model comprises three-room and four-room flats housed in one block with two wings of 33 and 47 storeys. Bounded by King George's Avenue, Syed Alwi Road, and Rochor Canal, the site is within a six-minute walk to the first PLH project in Rochor launched in November last year.
King George's Heights in Kallang/Whampoa under the PLH model comes with stricter buying and selling conditions, e.g. being subjected to a 10-year minimum occupation period (MOP). Additional subsidies will be clawed back by the government upon their resale as well under the new prime location public housing (PLH) model.
3,953 new Built-To-Order (BTO) flats are launched today on 17 Feb 2022 under the February 2022 BTO exercise including 398 flats under the PLH BTO project in Kallang Whampoa.
The 398 units in Kallang/Whampoa being the second project under the Prime Location Public Housing (PLH) model comprises three-room and four-room flats housed in one block with two wings of 33 and 47 storeys. Bounded by King George's Avenue, Syed Alwi Road, and Rochor Canal, the site is within a six-minute walk to the first PLH project in Rochor launched in November last year.
King George's Heights in Kallang/Whampoa under the PLH model comes with stricter buying and selling conditions, e.g. being subjected to a 10-year minimum occupation period (MOP). Additional subsidies will be clawed back by the government upon their resale as well under the new prime location public housing (PLH) model.
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 new PLH model will be implemented for public housing in prime, central locations such as the city centre and Greater Southern Waterfront area.
HDB provides additional subsidies, on top of the existing subsidies provided for other Build-To-Order (BTO) flats, to ensure these flats under the PLH model are launched at affordable prices. HDB will claw back the additional subsidies as a percentage of the resale price, also known as the "subsidy recovery", when the owner sells the unit. The subsidy recovery applies only to the first resale, and not to subsequent resale transactions. The exact percentage of the subsidy recovery will be announced next month, at the launch of the Rochor BTO project, the first site under the PLH model. It may be adjusted for other projects in the future depending on market conditions and the amount of subsidies given by HDB.
These PLH BTO flats in King George's Heights in Kallang/Whampoa comes with a 6 per cent subsidy clawback clause upon their resale and Kiwi Lim from Huttons Asia expect these PLH BTO flats to be heavily over-subscribed by young home buyers in the first HDB BTO sales exercise of the year as the location is really very attractive and centrally located, surrounded by amenities and eateries. "I expect the pricing of these PLH BTO flats in Kallang Whampoa to be similar to the Rochor PLH BTO project."
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 new PLH model will be implemented for public housing in prime, central locations such as the city centre and Greater Southern Waterfront area.
HDB provides additional subsidies, on top of the existing subsidies provided for other Build-To-Order (BTO) flats, to ensure these flats under the PLH model are launched at affordable prices. HDB will claw back the additional subsidies as a percentage of the resale price, also known as the "subsidy recovery", when the owner sells the unit. The subsidy recovery applies only to the first resale, and not to subsequent resale transactions. The exact percentage of the subsidy recovery will be announced next month, at the launch of the Rochor BTO project, the first site under the PLH model. It may be adjusted for other projects in the future depending on market conditions and the amount of subsidies given by HDB.
These PLH BTO flats in King George's Heights in Kallang/Whampoa comes with a 6 per cent subsidy clawback clause upon their resale and Kiwi Lim from Huttons Asia expect these PLH BTO flats to be heavily over-subscribed by young home buyers in the first HDB BTO sales exercise of the year as the location is really very attractive and centrally located, surrounded by amenities and eateries. "I expect the pricing of these PLH BTO flats in Kallang Whampoa to be similar to the Rochor PLH BTO project."
The first project launched by HDB under the new PLH model for public housing in prime locations will be built in Rochor and launched at the Build-to-Order (BTO) exercise in November last year.
The Rochor PLH BTO project will have a mix of 960 three-room and four-room flats, and also include 40 two-room rental flats, as part of efforts to make living in prime areas accessible to all. It will be located on two plots of land along Weld Road and Kelantan Road next to Jalan Besar MRT station. An open-air carpark next to Sim Lim Tower used to occupy one plot, while the other was vacated by the Sungei Road flea market in July 2017. Besides an MRT station at their doorstep, future residents will also be within walking distance of Berseh Food Centre and Stamford Primary School.
The Rochor BTO project is located in the city fringe sitting on two plots of land along Weld Road and Kelantan Road and is directly connected to Jalan Besar MRT station. Prices start from $409,000, without grants, for a three-room flat and $582,000 for a four-room flat, making them the most expensive units in a mature estate in this launch.
The three-room flats at Rochor BTO project were not as popular and were undersubscribed, with just 215 applicants for the 280 units on offer at the launch. Kiwi Lim from Huttons Asia believe this could be due to the longer 10 year MOP period where families may need more space with children staying with them during the longer holding period. The three-room flats have a smaller estimated unit size of 66 sqm each, compared with 88 sqm for the four-room flats. Successful home owners of this Rochor BTO project will likely be able to resell these flats only some time in 2038. "Most applicants were 2nd timers who already have a place of their own to wait out the 7 years of construction period and may have the intention for the Rochor PLH flats to be their forever home".
The Rochor PLH BTO project will have a mix of 960 three-room and four-room flats, and also include 40 two-room rental flats, as part of efforts to make living in prime areas accessible to all. It will be located on two plots of land along Weld Road and Kelantan Road next to Jalan Besar MRT station. An open-air carpark next to Sim Lim Tower used to occupy one plot, while the other was vacated by the Sungei Road flea market in July 2017. Besides an MRT station at their doorstep, future residents will also be within walking distance of Berseh Food Centre and Stamford Primary School.
The Rochor BTO project is located in the city fringe sitting on two plots of land along Weld Road and Kelantan Road and is directly connected to Jalan Besar MRT station. Prices start from $409,000, without grants, for a three-room flat and $582,000 for a four-room flat, making them the most expensive units in a mature estate in this launch.
The three-room flats at Rochor BTO project were not as popular and were undersubscribed, with just 215 applicants for the 280 units on offer at the launch. Kiwi Lim from Huttons Asia believe this could be due to the longer 10 year MOP period where families may need more space with children staying with them during the longer holding period. The three-room flats have a smaller estimated unit size of 66 sqm each, compared with 88 sqm for the four-room flats. Successful home owners of this Rochor BTO project will likely be able to resell these flats only some time in 2038. "Most applicants were 2nd timers who already have a place of their own to wait out the 7 years of construction period and may have the intention for the Rochor PLH flats to be their forever home".
- Published on
Around 42 private residential launches, estimated 5,421 units are expected to launch in 2022. Find out more here
The government announced new property curbs on 16 December 2021 to cool its housing market amid rising concern of “prices running ahead of economic fundamentals and increasing risk of a future destabilising correction” after an excellent year for 2021 property market where an estimated 13,000 units were sold by developers, 30.2% higher than 2020. This is the highest annual sales since 2013. Around 10,000 units from 24 private residential projects were launched for sale in 2021 with 12 projects in the CCR, 7 projects in the RCR and 5 projects in the OCR.
This latest round of cooling measures are seen by industry watchers as one of the most aggressive yet. Notably, Additional Buyer Stamp Duties (ABSD) for non-entities have been increased by about 5% to 15% for certain buyer types. This is higher as compared to previous rounds, where the increases ranged from only 5% to 10%. Additionally, the Total Debt Servicing Ratio (TDSR) has been tightened further from 60% to 55% as well as Loan-to- value ratios (LTV) for HDB loans have been reduced from 90% to 85%.
ABSD for foreigners was significantly increased by 10% points to reach 30%. Some consider the increase in ABSD for foreigners to have limited effect, given their small impact as foreign purchases for non-landed private residential properties made up only around 4% of demand for 2020 and 2021.
The increase in ABSD is not expected taper foreign buying demand, especially when borders’ measures are gradually relaxed, leading to the return of overseas buyers. Foreigners’ interest may be diverted to alternative asset classes such as strata retail shops, shophouses or strata offices that do not face or have limited cooling measure risk.
This latest round of cooling measures are seen by industry watchers as one of the most aggressive yet. Notably, Additional Buyer Stamp Duties (ABSD) for non-entities have been increased by about 5% to 15% for certain buyer types. This is higher as compared to previous rounds, where the increases ranged from only 5% to 10%. Additionally, the Total Debt Servicing Ratio (TDSR) has been tightened further from 60% to 55% as well as Loan-to- value ratios (LTV) for HDB loans have been reduced from 90% to 85%.
ABSD for foreigners was significantly increased by 10% points to reach 30%. Some consider the increase in ABSD for foreigners to have limited effect, given their small impact as foreign purchases for non-landed private residential properties made up only around 4% of demand for 2020 and 2021.
The increase in ABSD is not expected taper foreign buying demand, especially when borders’ measures are gradually relaxed, leading to the return of overseas buyers. Foreigners’ interest may be diverted to alternative asset classes such as strata retail shops, shophouses or strata offices that do not face or have limited cooling measure risk.
Piccadilly Grand is an upcoming mixed condo project in Northumberland Road beside Farrer Park MRT & shopping malls jointly developed by 2 heavy weight developers - City Developments (CDL) and MCL Land, exhibiting full confidence in the long-term fundamentals of the Singapore residential market.
The new cooling measures impacts all segments of buyers with tighter loan curbs with higher upfront costs due to a tightening of TDSR and increase in ABSD. First-time Singaporean and Permanent Resident (PR) private residential buyers were the least affected with ABSD rates remaining unchanged.
The impact would be more keenly felt for property investors. Singaporean property buyers now face higher ABSD of 17% and 25% for their 2nd and 3rd property purchase, respectively as compared to 12% and 15% previously. For PRs, they now have to pay 25% and 30% ABSD for their 2nd and 3rd private residential purchase from 15% previously. Coupled with TDSR tightening, investor demand is expected to cool significantly, due to potential higher upfront costs and tighter financing conditions.
The impact would be more keenly felt for property investors. Singaporean property buyers now face higher ABSD of 17% and 25% for their 2nd and 3rd property purchase, respectively as compared to 12% and 15% previously. For PRs, they now have to pay 25% and 30% ABSD for their 2nd and 3rd private residential purchase from 15% previously. Coupled with TDSR tightening, investor demand is expected to cool significantly, due to potential higher upfront costs and tighter financing conditions.
Perched atop the verdant Pearl’s Hill City Park, One Pearl Bank is set to be the tallest residential development in the Outram-Chinatown district in Central Singapore comprising two gently curving 39-storey towers linked at the roof by dramatic sky bridges featuring panoramic views extending from the Central Business District to Sentosa.
The en-bloc market which had just picked up pace in the last couple of months are expected to cool as developers become more selective and wait to see the impact on demand especially when developers are now facing significantly higher development risks given the increase in ABSD for entities. The risks to developers have been increased by 10% to 35% should they fail to sell everything within 5 years. This is onerous on developers and en-bloc hopefuls have to temper their expectations to increase their chances of a successful en-bloc. The higher ABSD rates coupled with ongoing construction uncertainties, and uncertain demand due to the new cooling measures, have increased development risks, especially for large-scale projects.
We could still see en-bloc demand for well-located smaller sites at prime districts, where buyers’ profiles tend to be very high net worth and hence may not be too impacted by higher ABSD. As developers need to ensure feasible profit margins, land bid prices are expected to moderate after factoring in higher costs and risks associated. As developers turn towards Government Land Sales (GLS) Programme to fill their empty lan banks, the government is under pressure to release more land to fill the void from en-bloc market to satisfy developer's demand for land. It remains to be seen if the government is more inclined to fill its national reserves or lower their collections from the sale of each plot of GLS if they decide to supply more GLS land. Increased supply will usually lower the bid price submitted by developers.
We could still see en-bloc demand for well-located smaller sites at prime districts, where buyers’ profiles tend to be very high net worth and hence may not be too impacted by higher ABSD. As developers need to ensure feasible profit margins, land bid prices are expected to moderate after factoring in higher costs and risks associated. As developers turn towards Government Land Sales (GLS) Programme to fill their empty lan banks, the government is under pressure to release more land to fill the void from en-bloc market to satisfy developer's demand for land. It remains to be seen if the government is more inclined to fill its national reserves or lower their collections from the sale of each plot of GLS if they decide to supply more GLS land. Increased supply will usually lower the bid price submitted by developers.
In 2022, sales of new homes will be constrained by the lack of new supply. Around 42 private residential launches are expected consisting of 5,421 units in 2022 with 21.7% in the CCR, 36.4% in the RCR and 41.9 % in the OCR. Two EC projects may be launch in 2022 - North Gaia in Yishun in Mar / Apr 2022 and another along Tengah Garden Walk probably in 4th Qtr 2022. Another EC project along Tam pines Street 62 will reach its 15th month in Nov 2022 and may be launch in 1st Qtr 2023.
Upcoming projects include Belgravia Ace, Kovan Jewel, Royal Hallmark, The Arden, Piccadilly Grand, Gems Ville, Sophia Regency, Evelyn Newton, former 10A/B & 11 Institution Hill, former 2, 4 and 6 Mount Emily Road , former Ji Liang Gardens , projects along Ang Mo Kio Ave 1 and Tanah Merah Kechil Link .
Overall , the new home market may see sales between 8,000 and 9,000 units while prices may move up to 3% in 2022 on the back of higher construction costs.
Kiwi Lim from Huttons Asia believed that due to the current very low levels of unsold inventory, developers will continue sourcing for GLS land and en-bloc smaller residential projects cautiously. Developers are also not expected to cut prices for existing launches as unsold inventory remains very limited and developers have to brace themselves with higher construction costs which may be made even higher with the prospect of an increase in GST this year.
Upcoming projects include Belgravia Ace, Kovan Jewel, Royal Hallmark, The Arden, Piccadilly Grand, Gems Ville, Sophia Regency, Evelyn Newton, former 10A/B & 11 Institution Hill, former 2, 4 and 6 Mount Emily Road , former Ji Liang Gardens , projects along Ang Mo Kio Ave 1 and Tanah Merah Kechil Link .
Overall , the new home market may see sales between 8,000 and 9,000 units while prices may move up to 3% in 2022 on the back of higher construction costs.
Kiwi Lim from Huttons Asia believed that due to the current very low levels of unsold inventory, developers will continue sourcing for GLS land and en-bloc smaller residential projects cautiously. Developers are also not expected to cut prices for existing launches as unsold inventory remains very limited and developers have to brace themselves with higher construction costs which may be made even higher with the prospect of an increase in GST this year.
- Published on
Wisteria Mall is the commercial component of mixed-use development The Wisteria, located in Yishun.
Wisteria Mall is being sold by joint venture company led by BBR Holdings and Hexacon Construction along with Santarli Venture, MUSE Capital and AHPL (Investments) to UK private equity firm Schroders, according to reporting by Mingtiandi on 25 Jan 2022. Schroders is acquiring the Wisteria Mall, which has a strata lot area of 17,328 square metres (186,517 square feet) on a 99-year leasehold site, for the equivalent of nearly S$12,004 ($8,924) per square metre.
The UK private equity firm Schroders has agreed to buy Wisteria Mall - the commercial component of mixed-use development The Wisteria, located in Yishun for S$208 million, as neighbourhood retail continues to attract property investors during the COVID-19 era. The British finance firm, which took over Hong Kong’s Pamfleet in 2020, is buying the Wisteria Mall, which forms the retail podium below the Wisteria condo complex in the Yishun area, from a unit of Singapore-listed builder BBR Holdings, which announced the sale in a filing with the Singapore Exchange.
While retail investments have lost favour in recent years with investors pursuing the e-commerce-powered appeal of warehouses, Schroders — which has a track record in the region of acquiring and repositioning less-loved assets — sees the Wisteria Mall as providing opportunities that complement online channels especially with the high density in Yishun, which is home to several large public housing estates, and the mass-transit stations encircling the Wisteria Mall, as providing a built-in catchment for the project.
The UK private equity firm Schroders has agreed to buy Wisteria Mall - the commercial component of mixed-use development The Wisteria, located in Yishun for S$208 million, as neighbourhood retail continues to attract property investors during the COVID-19 era. The British finance firm, which took over Hong Kong’s Pamfleet in 2020, is buying the Wisteria Mall, which forms the retail podium below the Wisteria condo complex in the Yishun area, from a unit of Singapore-listed builder BBR Holdings, which announced the sale in a filing with the Singapore Exchange.
While retail investments have lost favour in recent years with investors pursuing the e-commerce-powered appeal of warehouses, Schroders — which has a track record in the region of acquiring and repositioning less-loved assets — sees the Wisteria Mall as providing opportunities that complement online channels especially with the high density in Yishun, which is home to several large public housing estates, and the mass-transit stations encircling the Wisteria Mall, as providing a built-in catchment for the project.
YewTee Point is 20 metres from Yew Tee MRT station and frequented by local shoppers in Choa Chu Kang
In March 2021, Frasers Centrepoint Trust announced that it had agreed to sell the YewTee Point mall in western Singapore for S$220 million ($164 million) in a string of divestments for the SGX-listed REIT to the buyer understood to be Arch Capital, which is managing a fund on behalf of a German investor.
YewTee Point is 20 metres (66 feet) from Yew Tee MRT station and is frequented by local shoppers who rely on the Choa Chu Kang area mall for purchasing non-discretionary items such as groceries at the Fairprice supermarket that anchors the property. Other family-friendly tenants include Watsons, KFC, BreadTalk and Sushi Express.
YewTee Point is a two-storey mall with 72,382 square feet (6,725 square metres) of net lettable area. Market observers say it makes sense for the REIT to sell the low-volume but profitable YewTee Point to focus on larger investments, such as the PGIM retail portfolio recently bought by FCT.
YewTee Point is 20 metres (66 feet) from Yew Tee MRT station and is frequented by local shoppers who rely on the Choa Chu Kang area mall for purchasing non-discretionary items such as groceries at the Fairprice supermarket that anchors the property. Other family-friendly tenants include Watsons, KFC, BreadTalk and Sushi Express.
YewTee Point is a two-storey mall with 72,382 square feet (6,725 square metres) of net lettable area. Market observers say it makes sense for the REIT to sell the low-volume but profitable YewTee Point to focus on larger investments, such as the PGIM retail portfolio recently bought by FCT.
Le Quest shopping mall is a convenience centre that is well-located & accessible, serving Bukit Batok population
A single-storey shopping mall in Bukit Batok has become Firmus Capital’s second acquisition in the city-state valuing the asset, which was Qingjian’s first commercial project in Singapore, at over $103 million in Aug 2021.
Le Quest shopping mall situated in Bukit Batok heartlands residential precinct, is the retail element of the mixed-residential Le Quest project developed by the seller, Qingjian Realty, a local unit of Chinese builder Qingjian Group.
Le Quest shopping mall is a convenience centre that is well-located, with good accessibility serving a dense and growing catchment population with a gross floor area of 64,584 square feet (6,000 square metres). Le Quest shopping mall holds potential as a last-mile fulfilment hub for retailers and restaurants offering delivery and click-and-collect services as consumers stay closer to home during the COVID-19 era.
Le Quest shopping mall situated in Bukit Batok heartlands residential precinct, is the retail element of the mixed-residential Le Quest project developed by the seller, Qingjian Realty, a local unit of Chinese builder Qingjian Group.
Le Quest shopping mall is a convenience centre that is well-located, with good accessibility serving a dense and growing catchment population with a gross floor area of 64,584 square feet (6,000 square metres). Le Quest shopping mall holds potential as a last-mile fulfilment hub for retailers and restaurants offering delivery and click-and-collect services as consumers stay closer to home during the COVID-19 era.
FRASERS Centrepoint Trust (FCT) will divest Anchorpoint shopping centre for S$110 million to third parties
Anchorpoint is a mall with a net lettable area of approximately 6,616 square metres. It comprises two retail levels (including one basement level) and an adjacent two-storey building.
In Dec 2020, FRASERS Centrepoint Trust (FCT) announced that it will divest Anchorpoint shopping centre for S$110 million to unrelated third parties by entering into two sale and purchase agreements with each of the undisclosed purchasers for the proposed sale of two strata lots (together with the accessory lots) to each buyer. These lots collectively comprise the shopping centre.
The shopping centre has 51 tenants as at Sept 30, 2020. Key tenants include household retailer Mr D.I.Y., fashion retailer Cotton On, Koufu food court, Xin Wang HK Café, as well as restaurants Sakuraya, Uncle Leong Signatures and Jack's Place. The sale consideration took into account Anchorpoint's independent appraised value of S$110 million as at Sept 15, 2020.
In Dec 2020, FRASERS Centrepoint Trust (FCT) announced that it will divest Anchorpoint shopping centre for S$110 million to unrelated third parties by entering into two sale and purchase agreements with each of the undisclosed purchasers for the proposed sale of two strata lots (together with the accessory lots) to each buyer. These lots collectively comprise the shopping centre.
The shopping centre has 51 tenants as at Sept 30, 2020. Key tenants include household retailer Mr D.I.Y., fashion retailer Cotton On, Koufu food court, Xin Wang HK Café, as well as restaurants Sakuraya, Uncle Leong Signatures and Jack's Place. The sale consideration took into account Anchorpoint's independent appraised value of S$110 million as at Sept 15, 2020.
The sale price of $108 million on the basis of Bedok Point as a redevelopment site was supported by two independent valuations, which put the mall's net property income yield at 2.5 per cent. PHOTO: FRASERS MALLS
Bedok Point is a four-storey mall located in the town center of Bedok along New Upper Changi Road, and near Bedok MRT station. Bedok Point officially opened on 26 April 2011. The mall held its soft opening on 16 December 2010. It has a range of retail units, entertainment outlets, a bookstore and food outlets.
Frasers Centrepoint Trust (FCT) announced in Oct 2020 that they now wholly own AsiaRetail Fund (ARF), having completed the purchase of the latter's remaining 63.11 per cent interest from Frasers Property therefore confirming the sale of Bedok Point mall at $108 million on the basis of Bedok Point as a redevelopment site was supported by two independent valuations, which put the mall's net property income yield at 2.5 per cent.
Kiwi Lim from the third largest real estate agency Huttons Asia believe that as Singapore gradually emerges from the pandemic, neighbourhood malls with strong fundamentals are attracting foreign investment firms and private equity firms. These firms may find our local strata shopping malls desirable as they offer a good variety of essential services to the heartland neighbourhood with some generating a reasonable property yield especially if they are surrounded by public housing estates, transportation, catchment of good schools, etc to increase shopper traffic.
Frasers Centrepoint Trust (FCT) announced in Oct 2020 that they now wholly own AsiaRetail Fund (ARF), having completed the purchase of the latter's remaining 63.11 per cent interest from Frasers Property therefore confirming the sale of Bedok Point mall at $108 million on the basis of Bedok Point as a redevelopment site was supported by two independent valuations, which put the mall's net property income yield at 2.5 per cent.
Kiwi Lim from the third largest real estate agency Huttons Asia believe that as Singapore gradually emerges from the pandemic, neighbourhood malls with strong fundamentals are attracting foreign investment firms and private equity firms. These firms may find our local strata shopping malls desirable as they offer a good variety of essential services to the heartland neighbourhood with some generating a reasonable property yield especially if they are surrounded by public housing estates, transportation, catchment of good schools, etc to increase shopper traffic.
From Mingtiandi and Straits Times
- Published on
The first residential government land sales (GLS) tender for 2022 - a plum site at Jalan Tembusu - closed on Tuesday (18 January) afternoon after attracting 8 bids and a robust bid price that showed developers' hunger for land is not dampened by the recent property cooling measure announced by the government in December last month.
The 99-year leasehold government and sale (GLS) land parcel in Jalan Tembusu, near Tanjong Katong Girls' School - offered for sale by the Urban Redevelopment Authority under the GLS programme for the second half of 2021 - is the first GLS tender to close since the government announced sweeping property cooling measures last month.
City Developments (CDL) emerged the top bidder at $768 million. This is close to market analysts predictions before the cooling measures were announced and more than 50 million higher than the second highest bid by a consortium also involving CDL.
The 99-year leasehold government and sale (GLS) land parcel in Jalan Tembusu, near Tanjong Katong Girls' School - offered for sale by the Urban Redevelopment Authority under the GLS programme for the second half of 2021 - is the first GLS tender to close since the government announced sweeping property cooling measures last month.
City Developments (CDL) emerged the top bidder at $768 million. This is close to market analysts predictions before the cooling measures were announced and more than 50 million higher than the second highest bid by a consortium also involving CDL.
The top bid of $1,302 per sqft per plot ratio (psf ppr) is within analysts' estimates before the property cooling measure was announced last month. It is also nearly $200 psf ppr higher than that of another plum GLS site in the Farrer Park area last year.
This land acquisition will ensure that CDL maintain a healthy land parcel inventory stock in Singapore. This also show that developers have full confidence in the long-term fundamentals of Singapore's residential market even after the recent property cooling measure.
The 99-year GLS leasehold land parcel at Jalan Tembusu is located in District 15 with a generous land size of approximately 210,545 sqft located strategically within 1km from Dakota MRT station on the Circle Line and 600m from the upcoming Tanjong Katong MRT station on the Thomson-East Coast Line.
This new upcoming condo will be surrounded by good schools nearby include Chung Cheng High School (Main), Tanjong Katong Girls’ School, and Tanjong Katong Secondary School. There are also lots of amenities and F&B eateries located along Tanjong Katong Road and Parkway Parade shopping mall.
This land acquisition will ensure that CDL maintain a healthy land parcel inventory stock in Singapore. This also show that developers have full confidence in the long-term fundamentals of Singapore's residential market even after the recent property cooling measure.
The 99-year GLS leasehold land parcel at Jalan Tembusu is located in District 15 with a generous land size of approximately 210,545 sqft located strategically within 1km from Dakota MRT station on the Circle Line and 600m from the upcoming Tanjong Katong MRT station on the Thomson-East Coast Line.
This new upcoming condo will be surrounded by good schools nearby include Chung Cheng High School (Main), Tanjong Katong Girls’ School, and Tanjong Katong Secondary School. There are also lots of amenities and F&B eateries located along Tanjong Katong Road and Parkway Parade shopping mall.
Diminishing private housing supply in the market and strong take-up rates in new condo launches with a lack of available land parcels for developers to replenish their land stocks ensured that land bids remain strong even after the cooling measures.
Kiwi Lim from Huttons Asia expect the developer to price this new upcoming mass market condo on Jalan Tembusu from around $2,300 psf taking into account the land cost and higher construction costs.
Kiwi Lim from Huttons Asia expect the developer to price this new upcoming mass market condo on Jalan Tembusu from around $2,300 psf taking into account the land cost and higher construction costs.
- Published on
Data from WhereNext & URA
Record Low Supply Of New Condo Units
According to past records, an average of 9,000 new condo units are sold yearly in Singapore.
During the Covid pandemic, in 2020, more than 10,000 new condo units were sold and last year more than 14,500 new condo units were sold last year in 2021.
The current remaining unsold new condo units left available in the market are estimated at around 10,000 units. This year in 2022, we expect around 5,400 new condo units to be launched into the market with 7 mass market condos (see below table) and many other smaller sized apartment projects.
These are the 7 upcoming mass market condo projects in 2022 all expecting to launch around $2,000 psf or above. Data from WhereNext & URA
Upcoming Mass Market Condo Projects Expected Around $2,000 psf
There are only seven upcoming mass market condo projects in the pipeline for this year 2022. These projects are as shown above.
These seven mass market condo projects are expected to be launched at $2,000 psf or more on average. Once these mass market projects are launched throughout this year, it will set a new benchmark for mass market new condo pricing.
Previously five years ago, mass market condos were launched around $1,500 psf. This year's mass market condos will test the psychological barrier of mass market condo upgraders to accept $2,000 psf as the new normal.
There are only seven upcoming mass market condo projects in the pipeline for this year 2022. These projects are as shown above.
These seven mass market condo projects are expected to be launched at $2,000 psf or more on average. Once these mass market projects are launched throughout this year, it will set a new benchmark for mass market new condo pricing.
Previously five years ago, mass market condos were launched around $1,500 psf. This year's mass market condos will test the psychological barrier of mass market condo upgraders to accept $2,000 psf as the new normal.
Less Than 5% of Foreign Buyers During Covid Pandemic:
Before Covid, the percentage of foreigner buyers in Singapore's property market is around 15% on average. However during the Covid pandemic, foreigner buyers of our local property is less than 5% in 2020 and 2021 not because they are no longer interested in Singapore property but because Singapore's borders were closed to them.
Therefore, the property market demand seen in 2020 and 2021 is largely driven by domestic demand consisting of mainly Singaporeans and PRs and not influenced by foreign demand for our property in Singapore. We felt the increase in ABSD for foreigners will only serve little to reduce the demand for local property, moreover because Singapore currently has no estate tax, the 30% ABSD charged upon foreigner buyers is still lesser than the estate tax in other countries which can be as high as 45% for some making Singapore look attractive for estate planning. Once the borders open, we expect foreign buyers who are looking to home their families in a stable and safe environment in a country that is fluent in both Mandarin and English to find Singapore a very attractive place to live, work and play.
Before Covid, the percentage of foreigner buyers in Singapore's property market is around 15% on average. However during the Covid pandemic, foreigner buyers of our local property is less than 5% in 2020 and 2021 not because they are no longer interested in Singapore property but because Singapore's borders were closed to them.
Therefore, the property market demand seen in 2020 and 2021 is largely driven by domestic demand consisting of mainly Singaporeans and PRs and not influenced by foreign demand for our property in Singapore. We felt the increase in ABSD for foreigners will only serve little to reduce the demand for local property, moreover because Singapore currently has no estate tax, the 30% ABSD charged upon foreigner buyers is still lesser than the estate tax in other countries which can be as high as 45% for some making Singapore look attractive for estate planning. Once the borders open, we expect foreign buyers who are looking to home their families in a stable and safe environment in a country that is fluent in both Mandarin and English to find Singapore a very attractive place to live, work and play.
Developers May Not Be Keen On Collective Sale (enbloc)
The government's latest round of cooling measures announced last month are expected to take the wind out of the sails of the residential collective sale market.
Under the new rules, entities buying residential properties must pay 35 per cent ABSD – up from 25 per cent – if they cannot sell all their units in five years. There is also an additional non-remittable 5 per cent ABSD for developers.
Developers will have to consider the additional tax impact and buyers’ concerns about the future selling prices, as well as how these will affect demand and the take-up rate as developers will have to pay the heftier 35 per cent Additional Buyers’ Stamp Duty (ABSD) should they fail to complete and sell all units within five years – which analysts said will make developers more cautious with their land bids.
This may cause developers to probably look towards developing properties in less regulated overseas markets or join in the competition to bid for local government land sale (GLS) land parcels. Kiwi Lim from Huttons Asia feel that if developers are not acquiring land from collective sales, the government may need to significantly release much more land for sale from the government's limited reserved land parcels that they are currently holding on or we may see a much smaller supply of future upcoming condos launched yearly in Singapore's property market in the next five years of around 5,000 new condo units per year, excluding Executive Condo projects. If demand for new condo units continue to hover around 9,000 units during pre-Covid period, the supply will not be sufficient to meet demand.
The government's latest round of cooling measures announced last month are expected to take the wind out of the sails of the residential collective sale market.
Under the new rules, entities buying residential properties must pay 35 per cent ABSD – up from 25 per cent – if they cannot sell all their units in five years. There is also an additional non-remittable 5 per cent ABSD for developers.
Developers will have to consider the additional tax impact and buyers’ concerns about the future selling prices, as well as how these will affect demand and the take-up rate as developers will have to pay the heftier 35 per cent Additional Buyers’ Stamp Duty (ABSD) should they fail to complete and sell all units within five years – which analysts said will make developers more cautious with their land bids.
This may cause developers to probably look towards developing properties in less regulated overseas markets or join in the competition to bid for local government land sale (GLS) land parcels. Kiwi Lim from Huttons Asia feel that if developers are not acquiring land from collective sales, the government may need to significantly release much more land for sale from the government's limited reserved land parcels that they are currently holding on or we may see a much smaller supply of future upcoming condos launched yearly in Singapore's property market in the next five years of around 5,000 new condo units per year, excluding Executive Condo projects. If demand for new condo units continue to hover around 9,000 units during pre-Covid period, the supply will not be sufficient to meet demand.
Cost of Construction Labour and Building Materials
The cost of construction labour and building materials has escalated by 30 per cent to 50 per cent over the past few months. The tightening of foreign construction workers entering Singapore as well as the increase in their levy fees will also adversely affect the inflow of construction workers and will negatively impact the timeline of construction projects and may cause delays as the construction association - Singapore Contractors Association Limited (Scal) warned recently.
Singapore Contractors Association Limited (Scal) predicted that some sub-contractor and main-contractor companies may be forced to close and it will adversely impact some 100,000 residents working in the construction sector. The government has asked that all stakeholders - including developers to share the (increased) expenses instead of contractors taking the biggest hit by allowing the contractors to submit a higher quote for the construction costs to replace the previously signed agreements which were at a lower quote as they were prepared using the costs before Covid pandemic raised the costs. Developers therefore are unwilling to lower prices and may even have to raise prices for their unsold supply of new condo projects currently available and launched in the market.
The cost of construction labour and building materials has escalated by 30 per cent to 50 per cent over the past few months. The tightening of foreign construction workers entering Singapore as well as the increase in their levy fees will also adversely affect the inflow of construction workers and will negatively impact the timeline of construction projects and may cause delays as the construction association - Singapore Contractors Association Limited (Scal) warned recently.
Singapore Contractors Association Limited (Scal) predicted that some sub-contractor and main-contractor companies may be forced to close and it will adversely impact some 100,000 residents working in the construction sector. The government has asked that all stakeholders - including developers to share the (increased) expenses instead of contractors taking the biggest hit by allowing the contractors to submit a higher quote for the construction costs to replace the previously signed agreements which were at a lower quote as they were prepared using the costs before Covid pandemic raised the costs. Developers therefore are unwilling to lower prices and may even have to raise prices for their unsold supply of new condo projects currently available and launched in the market.
- Published on
Golden Mile Complex, with its iconic stepped form, emerged as a symbol of this rapid national development. The building synthesised the prevailing international architectural aesthetic with a young nation's ambitions of urban renewal. - BT File photo
GOLDEN Mile Complex has been put up for sale in its second collective sale attempt at a reserve price of S$800 million after the Urban Redevelopment Authority (URA) announced on Oct 22, 2021 that Golden Mile Complex will be gazetted as a conserved building in view of its historical and architectural significance. Under the conservation status, the 47-year-old complex's main building with its signature terraced facade on top of a podium block will have to be retained.
Alongside the conservation requirements, a set of planning incentives will also be offered to support the adaptive reuse and commercial viability of the building given the building owners' interest in a collective sale. The incentives include bonus floor area which will allow the building of an additional 30-storey tower within the existing site, a partial development charge waiver on the additional floor area, a development charge waiver for the enhancement in value of the conserved gross floor area, adjustment of the site boundary to be more regular, the option to top up the lease on the land to 99 years, and the flexibility to adapt the building to a mix of possible uses.
Alongside the conservation requirements, a set of planning incentives will also be offered to support the adaptive reuse and commercial viability of the building given the building owners' interest in a collective sale. The incentives include bonus floor area which will allow the building of an additional 30-storey tower within the existing site, a partial development charge waiver on the additional floor area, a development charge waiver for the enhancement in value of the conserved gross floor area, adjustment of the site boundary to be more regular, the option to top up the lease on the land to 99 years, and the flexibility to adapt the building to a mix of possible uses.
Golden Mile Complex was completed in 1973, and its sister building Golden Mile Tower, located next door, was completed a year later. Some long-time business owners still occupy their units today, but little else has remained the same for this Brutalist icon.
In 2006, a politician described Golden Mile Complex as a "vertical slum" and a "national disgrace". Years of poor maintenance, low occupancy and low rent had caused the building's physical state to deteriorate.
The physical decline of Golden Mile Complex stems from its status as a strata-title leasehold property, which means that the building has hundreds of individual owners. At the start of the lease, everyone pools money into a fund, known as a sinking fund, which is used for building repairs. But there is no mechanism for the sinking fund to maintain the cash flow. Over time, the money dries up. The shared swimming pool has long been drained and lies unused, abandoned. Pipes often leak into residents' bedrooms and balconies.
In 2006, a politician described Golden Mile Complex as a "vertical slum" and a "national disgrace". Years of poor maintenance, low occupancy and low rent had caused the building's physical state to deteriorate.
The physical decline of Golden Mile Complex stems from its status as a strata-title leasehold property, which means that the building has hundreds of individual owners. At the start of the lease, everyone pools money into a fund, known as a sinking fund, which is used for building repairs. But there is no mechanism for the sinking fund to maintain the cash flow. Over time, the money dries up. The shared swimming pool has long been drained and lies unused, abandoned. Pipes often leak into residents' bedrooms and balconies.
The last sale attempt of the property had ended in July 2019, with the 2 tenders in the first round of the collective sale exercise closing with no bids. The reserve price for the sale remains the same as its previous attempt. Depending on the proposed mix of uses, the indicative land rate will work out to S$1,350 per square foot (psf) per plot ratio, including differential and lease upgrading premiums.
While developers keen to bid for the collective sale of Golden Mile Complex may be constrained by the building's conservation status, there are also incentives for the collective sale to take place. Kiwi Lim from Huttons Asia felt that the government also provided various carrots for developers who are keen to redevelop this beautiful project in a prime location with lots of upside potential with incentives such as increasing its gross plot ratio and waiving part of the development charge among others, making the Golden Mile Complex site much more appealing to entice developers. The upcoming potential future developments nearby will also make this future mixed development an attractive project.
While developers keen to bid for the collective sale of Golden Mile Complex may be constrained by the building's conservation status, there are also incentives for the collective sale to take place. Kiwi Lim from Huttons Asia felt that the government also provided various carrots for developers who are keen to redevelop this beautiful project in a prime location with lots of upside potential with incentives such as increasing its gross plot ratio and waiving part of the development charge among others, making the Golden Mile Complex site much more appealing to entice developers. The upcoming potential future developments nearby will also make this future mixed development an attractive project.
Business Times article on 30 Nov 2021
- Published on
The Government has been closely monitoring the property market for several quarters. The private residential and HDB resale markets have been buoyant, despite the economic impact of COVID-19. Private housing prices have risen by about 9% since 1Q2020. HDB resale flat prices are also recovering sharply after a six-year decline,1 rising about 15% since 1Q 2020. Even though House Price-to-Income ratios remain below their historical averages, there is clear upward momentum. Amid the low interest rate environment, transaction volumes in the private housing market and HDB resale market have also been high despite the COVID-19 situation
The Government announced today a package of measures to cool the private residential and HDB resale markets. With effect from 16 December 2021, Additional Buyer’s Stamp Duty (ABSD) rates will be raised, and the Total Debt Servicing Ratio (TDSR) threshold will be tightened. The Government will also tighten the LTV limit for loans from HDB from 90% to 85%. In addition, the Government will increase public and private housing supply to cater to demand.
The Government has therefore decided to implement a set of measures to cool the private and public housing markets, to promote continued housing affordability. The private residential measures are calibrated to dampen broad-based demand, especially from those purchasing property for investment rather than owner-occupation. Measures to tighten financing conditions for both public and private housing will encourage greater financial prudence. The Government will also be ramping up the supply for both private and public housing.
The Government has therefore decided to implement a set of measures to cool the private and public housing markets, to promote continued housing affordability. The private residential measures are calibrated to dampen broad-based demand, especially from those purchasing property for investment rather than owner-occupation. Measures to tighten financing conditions for both public and private housing will encourage greater financial prudence. The Government will also be ramping up the supply for both private and public housing.
Measures Applicable to All Residential Property
Raising Additional Buyer’s Stamp Duty (ABSD) Rates
The current ABSD rates for Singapore Citizens (SCs) and Singapore Permanent Residents (SPRs) purchasing their first residential property will remain at 0% and 5% respectively.
The Government will raise the ABSD rates as follows:
a. Raise ABSD rate to 17% for SCs purchasing their 2nd residential property;
b. Raise ABSD rate to 25% for SCs purchasing their 3rd and subsequent residential property, and SPRs purchasing their 2nd residential property
c. Raise ABSD rate to 30% for SPRs purchasing their 3rd and subsequent residential property and foreigners purchasing any residential property,
d. Raise ABSD rate to 35% for entities purchasing any residential property; and
e. Raise ABSD rate to 35% for developers purchasing any residential property. This 35% may be remitted under the Stamp Duties (Non-licensed Housing Developers) (Remission for ABSD) Rules and the Stamp Duties (Housing Developers) (Remission of ABSD) Rules, subject to conditions. In addition to this 35% ABSD rate, the non-remittable component remains unchanged at 5%.
Raising Additional Buyer’s Stamp Duty (ABSD) Rates
The current ABSD rates for Singapore Citizens (SCs) and Singapore Permanent Residents (SPRs) purchasing their first residential property will remain at 0% and 5% respectively.
The Government will raise the ABSD rates as follows:
a. Raise ABSD rate to 17% for SCs purchasing their 2nd residential property;
b. Raise ABSD rate to 25% for SCs purchasing their 3rd and subsequent residential property, and SPRs purchasing their 2nd residential property
c. Raise ABSD rate to 30% for SPRs purchasing their 3rd and subsequent residential property and foreigners purchasing any residential property,
d. Raise ABSD rate to 35% for entities purchasing any residential property; and
e. Raise ABSD rate to 35% for developers purchasing any residential property. This 35% may be remitted under the Stamp Duties (Non-licensed Housing Developers) (Remission for ABSD) Rules and the Stamp Duties (Housing Developers) (Remission of ABSD) Rules, subject to conditions. In addition to this 35% ABSD rate, the non-remittable component remains unchanged at 5%.
Tightening of Total Debt Servicing Ratio Threshold (TDSR)
The TDSR threshold6 will be tightened by 5%-points from 60% to 55%. The revised TDSR threshold will apply to loans for the purchase of properties where the OTP is granted on or after 16 December 2021, and for mortgage equity withdrawal loan applications made on or after 16 December 2021. Borrowers with existing property loans granted before 16 December 2021 will not be affected by the revised TDSR threshold when refinancing their loans.7
6 TDSR is applicable to both residential and non-residential property loans granted by financial institutions to individuals, sole proprietors and vehicles with no substantive genuine commercial business, set up for the purchase of properties held by individuals.
7 TDSR is currently waived for borrowers who refinance their owner-occupied housing loans. For borrowers refinancing their existing investment property loans, MAS has provided for a temporary TDSR waiver for borrowers affected by COVID-19. Otherwise, the previous 60% TDSR will apply.
Measure Specific to Public Housing
Tightening of Loan-to-Value (LTV) Limit
The LTV limit for HDB housing loans will be tightened by 5%-points from 90% to 85%. The revised LTV limit does not apply to loans granted by financial institutions, for which the LTV limit remains at 75%.
The LTV limit of 85% will apply to new flat applications for sales exercises launched after 16 December 2021, and complete resale applications8 which are received by HDB from 16 December 2021 onwards.
The TDSR threshold6 will be tightened by 5%-points from 60% to 55%. The revised TDSR threshold will apply to loans for the purchase of properties where the OTP is granted on or after 16 December 2021, and for mortgage equity withdrawal loan applications made on or after 16 December 2021. Borrowers with existing property loans granted before 16 December 2021 will not be affected by the revised TDSR threshold when refinancing their loans.7
6 TDSR is applicable to both residential and non-residential property loans granted by financial institutions to individuals, sole proprietors and vehicles with no substantive genuine commercial business, set up for the purchase of properties held by individuals.
7 TDSR is currently waived for borrowers who refinance their owner-occupied housing loans. For borrowers refinancing their existing investment property loans, MAS has provided for a temporary TDSR waiver for borrowers affected by COVID-19. Otherwise, the previous 60% TDSR will apply.
Measure Specific to Public Housing
Tightening of Loan-to-Value (LTV) Limit
The LTV limit for HDB housing loans will be tightened by 5%-points from 90% to 85%. The revised LTV limit does not apply to loans granted by financial institutions, for which the LTV limit remains at 75%.
The LTV limit of 85% will apply to new flat applications for sales exercises launched after 16 December 2021, and complete resale applications8 which are received by HDB from 16 December 2021 onwards.
From MND
- Published on
The most expensive flat sold last month in November 2021 was a $1.268 million five-room Design, Build and Sell Scheme unit at City View @ Boon Keng. Photo: Lianhe Zaobao
November's record high number of million-dollar resale flats sold comes in the same month as the launch of the first Build-To-Order (BTO) project under a new prime location public housing (PLH) model, which subjects buyers to stricter home ownership criteria.
Housing Board resale flat prices rose for the 17th consecutive month, climbing at a faster pace of 1.3 per cent in November compared with October, according to flash data from real estate portals 99.co and SRX on 9 Dec 2021 (Thursday).
Home prices are pushing new boundaries as demand outweighs supply in many locations. The market exuberance has been propped by a recovering economy, low mortgage rates and new buyer demand as a result of construction delays of Build-To-Order (BTO) flats.
Housing Board resale flat prices rose for the 17th consecutive month, climbing at a faster pace of 1.3 per cent in November compared with October, according to flash data from real estate portals 99.co and SRX on 9 Dec 2021 (Thursday).
Home prices are pushing new boundaries as demand outweighs supply in many locations. The market exuberance has been propped by a recovering economy, low mortgage rates and new buyer demand as a result of construction delays of Build-To-Order (BTO) flats.
High floor 4 room DBSS for sale below $1 million in matured estate of Toa Payoh minutes walk to 3 MRT lines
Stricter restrictions for the Rochor BTO flats under the PLH model may have turned some potential buyers away from this type of flats to the resale market, inadvertently contributing to the increase in million-dollar HDB flats transactions.
Property analysts are widely expecting the robust performance seen in the HDB resale market to continue into 2022, largely on the back of fears of further construction delays in BTO projects after the detection of the Omicron variant. The emergence of Omicron has shown that the Covid-19 pandemic will take much longer than expected to resolve, which may further boost prices of HDB resale flats.
In November this year, a total of 2,586 HDB resale flats changed hands, an increase of 3.2 per cent from the month before. Some buyers may have turned to the HDB resale market as the completion periods can be "quite long" for some of the new BTO launches, especially projects in the mature estates as buyers feel uncertain about the completion periods of BTO project.
Property analysts are widely expecting the robust performance seen in the HDB resale market to continue into 2022, largely on the back of fears of further construction delays in BTO projects after the detection of the Omicron variant. The emergence of Omicron has shown that the Covid-19 pandemic will take much longer than expected to resolve, which may further boost prices of HDB resale flats.
In November this year, a total of 2,586 HDB resale flats changed hands, an increase of 3.2 per cent from the month before. Some buyers may have turned to the HDB resale market as the completion periods can be "quite long" for some of the new BTO launches, especially projects in the mature estates as buyers feel uncertain about the completion periods of BTO project.
In November's BTO sales exercise, the Rochor BTO project is expected to take around six years to be completed. In the August sales exercise, Queen's Arc in Queenstown is estimated to take more than five years to be ready. HDB has said that the longer build time for these project is due to site constraints and the tall building heights. The latest curbs on new applications for workers holding S Passes or work permits to enter Singapore via the vaccinated travel lanes may also have a knock-on effect on the construction time of ongoing BTO projects and may turn more people to the HDB resale market.
Between 29,000 and 30,000 flats is expected to change hands this year, with prices up by another 2 per cent to 2.5 per cent in the last quarter of 2021 bringing the overall average price increase for the whole of 2021 to more than 11 per cent, the biggest jump since 2010. Kiwi Lim from Huttons Asia noted that the increase in resale HDB prices are also seen across non-mature estates, for example the highest transaction price in non-mature estates was $970,000 for a five-room loft unit at Treelodge @ Punggol according to SRX.
The increase in HDB resale flat prices is caused by the mismatch in supply and demand, which, in turn, is caused by the supply chain disruption and delays in the construction industry that are induced by the pandemic, unless the construction delays of BTO flats are resolved, the mismatch can cause HDB resale flat prices to rise by at least another 7 per cent in 2022.
Between 29,000 and 30,000 flats is expected to change hands this year, with prices up by another 2 per cent to 2.5 per cent in the last quarter of 2021 bringing the overall average price increase for the whole of 2021 to more than 11 per cent, the biggest jump since 2010. Kiwi Lim from Huttons Asia noted that the increase in resale HDB prices are also seen across non-mature estates, for example the highest transaction price in non-mature estates was $970,000 for a five-room loft unit at Treelodge @ Punggol according to SRX.
The increase in HDB resale flat prices is caused by the mismatch in supply and demand, which, in turn, is caused by the supply chain disruption and delays in the construction industry that are induced by the pandemic, unless the construction delays of BTO flats are resolved, the mismatch can cause HDB resale flat prices to rise by at least another 7 per cent in 2022.
Straits Times article on 10 Dec 2021
- Published on
The lucky owners of La Ville is expected to receive between $3 million and $5.9 million per unit - Straits Times
As developers grapple with a shortage of land parcels for developing future private residential condo / landed projects, they are quietly on the prowl looking for good enbloc projects to acquire. According to JLL's calculations, seven projects were successfully sold via a collective sale so far this year, up from four in 2020. Of the 24 collective sale projects launched this year, a couple of tenders are still ongoing.
La Ville sold for $152 million to Hong Kong-listed property firm ZACD Group
La Ville’s third collective enbloc sale attempt saw the 40 unit residential development located at Tanjong Rhu sold for $152 million to Hong Kong-listed property firm ZACD Group translating to a land rate of $1,540 psf per plot ratio (ppr). After factoring in an additional 7% bonus gross floor area (GFA), the unit land rate will be about $1,477 psf ppr.
Built in the 1980s, the 40-unit La Ville sits on a freehold land area of 47,012 sq ft. The site is zoned residential with a plot ratio of 2.1 under the 2019 Master Plan. The site has the potential to be redeveloped into a new 107-unit condominium project based on an average size of 85 sqm (915 sq ft). The lucky owners of La Ville is expected to receive between $3 million and $5.9 million per unit.
La Ville sold for $152 million to Hong Kong-listed property firm ZACD Group
La Ville’s third collective enbloc sale attempt saw the 40 unit residential development located at Tanjong Rhu sold for $152 million to Hong Kong-listed property firm ZACD Group translating to a land rate of $1,540 psf per plot ratio (ppr). After factoring in an additional 7% bonus gross floor area (GFA), the unit land rate will be about $1,477 psf ppr.
Built in the 1980s, the 40-unit La Ville sits on a freehold land area of 47,012 sq ft. The site is zoned residential with a plot ratio of 2.1 under the 2019 Master Plan. The site has the potential to be redeveloped into a new 107-unit condominium project based on an average size of 85 sqm (915 sq ft). The lucky owners of La Ville is expected to receive between $3 million and $5.9 million per unit.
Peace Centre / Peace Mansion successfully sold to group of Singapore-listed companies for $650 million
Peace Centre and Peace Mansion at 1 Sophia Road sold for $650 million
Built around 1977, Peace Centre and Peace Mansion are two properties that sit on a single commercial site at 1 Sophia Road comprising 319 strata units, with 232 commercial units, 86 apartments and a carpark with 162 lots.
Peace Centre and Peace Mansion, two properties that sit on a single commercial site at 1 Sophia Road have been sold for $650 million in a collective sale to a joint venture (JV) comprising CEL Development, SingHaiyi Crystal, and Ultra Infinity subject, among others, to the joint offerors obtaining a sale order approving the collective sale, meeting planning criteria and getting the lease topped up.
The joint venture group will apply to top-up the lease and also seek approval from the URA to redevelop the property into a mixed-use commercial and residential development. The site, which spans 7,118 sq m, is currently zoned "commercial", near shopping amenities such as Bugis Junction with six MRT stations within 1km distance and near educational institutions such as Singapore Management University, the School of the Arts, Lasalle College of the Arts, Nanyang Academy of Fine Arts.
At the sale price of S$650 million, based on a new development comprising 60 per cent commercial and 40 per cent residential quantum, the unit land rate after including an estimated lease top-up premium is approximately S$1,426 per sq ft per plot ratio, or S$1,388 per sq ft per plot ratio after factoring in an additional 7 per cent bonus gross floor area for the residential component.
Built around 1977, Peace Centre and Peace Mansion are two properties that sit on a single commercial site at 1 Sophia Road comprising 319 strata units, with 232 commercial units, 86 apartments and a carpark with 162 lots.
Peace Centre and Peace Mansion, two properties that sit on a single commercial site at 1 Sophia Road have been sold for $650 million in a collective sale to a joint venture (JV) comprising CEL Development, SingHaiyi Crystal, and Ultra Infinity subject, among others, to the joint offerors obtaining a sale order approving the collective sale, meeting planning criteria and getting the lease topped up.
The joint venture group will apply to top-up the lease and also seek approval from the URA to redevelop the property into a mixed-use commercial and residential development. The site, which spans 7,118 sq m, is currently zoned "commercial", near shopping amenities such as Bugis Junction with six MRT stations within 1km distance and near educational institutions such as Singapore Management University, the School of the Arts, Lasalle College of the Arts, Nanyang Academy of Fine Arts.
At the sale price of S$650 million, based on a new development comprising 60 per cent commercial and 40 per cent residential quantum, the unit land rate after including an estimated lease top-up premium is approximately S$1,426 per sq ft per plot ratio, or S$1,388 per sq ft per plot ratio after factoring in an additional 7 per cent bonus gross floor area for the residential component.
Chuan Park in private talks after close of $938m collective sale tender PHOTO: LIANHE ZAOBAO
Chuan Park condominium currently "in a private treaty negotiation process"
Chuan Park condominium has closed its tender and is currently "in a private treaty negotiation process" after the 400,588.72 sq ft residential development received some interest from developers in its enbloc collective sale attempt.
Located beside Lorong Chuan MRT, Chuan Park condominium comprises 444 residential apartments, a food and beverage space not currently occupied, as well as a supermarket. Developed by Golden Developer, a unit of Far East Organization, the property has a 99-year lease which began in 1980. The lease will expire on June 5, 2079, or in about 58 years.
In 2018, Chuan Park condominium tried for a collective sale with an asking price of $900 million, but could not secure the necessary 80 per cent consent of owners. This came even after the asking price was raised from its initial $790 million. More than 80 per cent of the owners consented to the tender in October this year with an indicative price of $938 million.
Chuan Park condominium has closed its tender and is currently "in a private treaty negotiation process" after the 400,588.72 sq ft residential development received some interest from developers in its enbloc collective sale attempt.
Located beside Lorong Chuan MRT, Chuan Park condominium comprises 444 residential apartments, a food and beverage space not currently occupied, as well as a supermarket. Developed by Golden Developer, a unit of Far East Organization, the property has a 99-year lease which began in 1980. The lease will expire on June 5, 2079, or in about 58 years.
In 2018, Chuan Park condominium tried for a collective sale with an asking price of $900 million, but could not secure the necessary 80 per cent consent of owners. This came even after the asking price was raised from its initial $790 million. More than 80 per cent of the owners consented to the tender in October this year with an indicative price of $938 million.
Pre-war bungalows along both sides of Thiam Siew Avenue. (Image source: Google Maps)
Thiam Siew Avenue set the record as the largest land sale in 2021
Situated between Tanjong Katong Road and Haig Road, two freehold development sites at Thiam Siew Avenue in District 15 have been sold for S$815m via public tender, which closed on 18 November 2021.
Thiam Siew Avenue is flanked on both sides by single-storey, pre-war semi-detached houses and bungalows making the 263,794 sq ft area the largest land sale recorded in 2021 so far. A joint venture between Hoi Hup Realty and Sunway Developments secured the plum sites consisting of 22 plots of smaller freehold residential development sites zoned as “residential”, with a plot ratio of 2.8 based on the URA Masterplan 2019.
For the Thiam Siew Avenue sites, they are within walking distance to 2 MRT stations (EW8/CC9 Paya Lebar Interchange MRT station and CC8 Dakota MRT station), so their proximity to the Paya Lebar Central precinct could mean greater buyer demand when the sites are fully developed. They are also within 1km of Kong Hwa, Haig Girls’ and Tanjong Katong Primary Schools.
Based on the sale price of $815 million, and a further estimated development charge of approximately $284 million, the land price works out to about $1,488 psf per plot ratio (psf ppr). If the price includes an estimated $39.3 million for 7% balcony space, the land price works out to $1,440 psf ppr.
Situated between Tanjong Katong Road and Haig Road, two freehold development sites at Thiam Siew Avenue in District 15 have been sold for S$815m via public tender, which closed on 18 November 2021.
Thiam Siew Avenue is flanked on both sides by single-storey, pre-war semi-detached houses and bungalows making the 263,794 sq ft area the largest land sale recorded in 2021 so far. A joint venture between Hoi Hup Realty and Sunway Developments secured the plum sites consisting of 22 plots of smaller freehold residential development sites zoned as “residential”, with a plot ratio of 2.8 based on the URA Masterplan 2019.
For the Thiam Siew Avenue sites, they are within walking distance to 2 MRT stations (EW8/CC9 Paya Lebar Interchange MRT station and CC8 Dakota MRT station), so their proximity to the Paya Lebar Central precinct could mean greater buyer demand when the sites are fully developed. They are also within 1km of Kong Hwa, Haig Girls’ and Tanjong Katong Primary Schools.
Based on the sale price of $815 million, and a further estimated development charge of approximately $284 million, the land price works out to about $1,488 psf per plot ratio (psf ppr). If the price includes an estimated $39.3 million for 7% balcony space, the land price works out to $1,440 psf ppr.
Built around 1983, Watten Estate Condominium now houses 104 units of townhouses and apartments.ST PHOTO
A joint venture between UOL Group and Singapore Land Group (SingLand) has won the tender for Watten Estate Condominium in Bukit Timah with a $550.8 million bid about 10 per cent higher than the minimum price of $500 million, enabling UOL and SingLand to replenish their residential land banks as most of UOL Group's projects are substantially sold.
Spanning 220,241 sq ft, the Shelford Road property is located in the prime residential enclave at Watten Rise, which is within 1km of two popular primary schools: Nanyang Primary School and Raffles Girls' Primary School. Watten Estate Condominium is also about 650m away from Tan Kah Kee MRT station. In its vicinity are Coronation Shopping Plaza, King's Arcade Shopping Centre, Crown Centre, Serene Centre, Cluny Court and Adam Road Food Centre.
UOL Group has plans to develop a luxury condominium project on the site "with about 200 larger format units on elevated ground.
Built around 1983, Watten Estate Condominium is zoned residential with a gross plot ratio of 1.4 and an allowable height of up to five storeys now houses 104 units of townhouses and apartments.
The winning bid was submitted by an 80:20 joint venture between United Venture Investments (UVI), a wholly owned subsidiary of UOL Group, and Singland Residential Development (SRD). UVI will pay 80 per cent of the purchase price or $440.6 million and SRD will fund the remainder.
Real estate professional Kiwi Lim from Huttons Asia believe more developers may turn to the collective sale market to replenish their land banks given the conservative supply from the Government Land Sales programme and with unsold inventory easing to around 15,000 units by the fourth quarter of this year, we are seeing the lowest supply of available new condo units in the market since 2006. Next year's upcoming launches may include another 5,000 new condo units in the market but the Singapore real estate market is now currently seeing around 10,000 new condo units sold a year on average driven by strong domestic demand. As the borders slowly re-open, we may see more foreign buyers entering the market and buying the avail new condo units in the RCR and CCR regions.
Spanning 220,241 sq ft, the Shelford Road property is located in the prime residential enclave at Watten Rise, which is within 1km of two popular primary schools: Nanyang Primary School and Raffles Girls' Primary School. Watten Estate Condominium is also about 650m away from Tan Kah Kee MRT station. In its vicinity are Coronation Shopping Plaza, King's Arcade Shopping Centre, Crown Centre, Serene Centre, Cluny Court and Adam Road Food Centre.
UOL Group has plans to develop a luxury condominium project on the site "with about 200 larger format units on elevated ground.
Built around 1983, Watten Estate Condominium is zoned residential with a gross plot ratio of 1.4 and an allowable height of up to five storeys now houses 104 units of townhouses and apartments.
The winning bid was submitted by an 80:20 joint venture between United Venture Investments (UVI), a wholly owned subsidiary of UOL Group, and Singland Residential Development (SRD). UVI will pay 80 per cent of the purchase price or $440.6 million and SRD will fund the remainder.
Real estate professional Kiwi Lim from Huttons Asia believe more developers may turn to the collective sale market to replenish their land banks given the conservative supply from the Government Land Sales programme and with unsold inventory easing to around 15,000 units by the fourth quarter of this year, we are seeing the lowest supply of available new condo units in the market since 2006. Next year's upcoming launches may include another 5,000 new condo units in the market but the Singapore real estate market is now currently seeing around 10,000 new condo units sold a year on average driven by strong domestic demand. As the borders slowly re-open, we may see more foreign buyers entering the market and buying the avail new condo units in the RCR and CCR regions.
Source: Straits Times articles
