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Four land parcels in the Confirmed List and 12 land parcels in the Reserve List were unveiled for 1H2016 Government Land Sales (GLS) Programme. These sites could potentially yield 7,420 private homes (including 1,460 Executive Condominium (EC) units) and 272,600 sqm gross floor area (GFA) of commercial space, a decline from 7,825 private homes (including 1,340 EC units) and 277,580 sqm GFA commercial space offered in 2H2015 GlS Programme.
Of the four land parcels in the confirmed list, three are private residential sites of which one is slated for EC development, and the remaining a mixed commercial & residential site. 1,560 private homes (including 640 EC units) and 11,000 sqm gross floor area (GFA) of commercial space could potentially be yielded from these land parcels. Strong interest from established industrial player is expected for the rare residential site at Martin Place in the Core Central Region (CCR), says Desmond Sim, CBRE head of research. "The last time a site in this area was sold through the GLS programme was in 2011, along Robertson Quay", notes Sim.
Separately, the Reserved List comprises of eight private residential sites (including 1 EC site), a mix commercial & residential site, two commercial sites and a white site which could potentially yield 5,860 private homes (including 820 EC units) and 261,600 sqm GFA of commercial space, mostly for office use.
With the market effectively competing for three private residential sites, EC sites excluded, Sim expects developers to trigger sites from reserve list to replenish their land bank. However, the overall winning margin is expected to narrow for all tenders. According to Cushman & Wakefield, vacancy rate for the private housing segment could potentially exceed 10% next year.
Of the four land parcels in the confirmed list, three are private residential sites of which one is slated for EC development, and the remaining a mixed commercial & residential site. 1,560 private homes (including 640 EC units) and 11,000 sqm gross floor area (GFA) of commercial space could potentially be yielded from these land parcels. Strong interest from established industrial player is expected for the rare residential site at Martin Place in the Core Central Region (CCR), says Desmond Sim, CBRE head of research. "The last time a site in this area was sold through the GLS programme was in 2011, along Robertson Quay", notes Sim.
Separately, the Reserved List comprises of eight private residential sites (including 1 EC site), a mix commercial & residential site, two commercial sites and a white site which could potentially yield 5,860 private homes (including 820 EC units) and 261,600 sqm GFA of commercial space, mostly for office use.
With the market effectively competing for three private residential sites, EC sites excluded, Sim expects developers to trigger sites from reserve list to replenish their land bank. However, the overall winning margin is expected to narrow for all tenders. According to Cushman & Wakefield, vacancy rate for the private housing segment could potentially exceed 10% next year.
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The Pinnacle @ Duxton is a public housing development along Cantonment Road, with 1,848 units in seven tower blocks linked with sky gardens on the 26th and 50th floors. It is within walking distance of Tanjong Pagar MRT station.
A five-room flat at the Pinnacle @ Duxton at Block 1B with a floor area of 1,162 sq ft was sold for a whopping $1,068,888 in January 2016. The sale represents the second most expensive sale of a five-room flat in Singapore, real estate website The Edge Singapore reported.
The $1.08m sale of another Pinnacle @ Duxton unit in November last year remains the record transaction for a five-room flat. Another unit at Pinnacle @ Duxton went for $1.02 million in January. In the past year, five-room units at the development have been sold for between $868,000 and $1.088 million.
When the project was launched, five-room units were priced between $345,100 and $439,400, The Straits Times reported. Owners began putting up their flats for sale at the end of 2014 after fulfilling their five-year minimum occupation period.
When the project was launched, five-room units were priced between $345,100 and $439,400, The Straits Times reported. Owners began putting up their flats for sale at the end of 2014 after fulfilling their five-year minimum occupation period.
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In April 2015, two plots of 99-year leasehold residential land parcels were released by Singapore's Housing Development Board (HDB) for sale under the Goverment Land Sales (GLS) programme at Toa Payoh and Dundee Road. As expected by most consultants, these 2 sites indeed drew a high level of response from property developers. In Jan 2016, a rare Government Land Sales program (GLS) site at Siglap Road drew 8 bids in total yesterday. Experts believe that this demand for land is due to the immediate needs for property developers to replenish their land banks that is vital for their business.
The top 4 bids received were all above the S$800 per square foot per plot ratio (psf ppr) mark, which strongly suggested the aggressive demand for land resources and the potential growth of the real estate market in the near future.
The bidders include mega developers, i.e. Fraser Centrepoint, City Developments, GuocoLand, UOL and Hoi Hup. The highest bid came from a joint-consortium which comprises of Fraser Centrepoint, Sekisui House (who are also the developers for two other very popular projects - North Park Residences and Rivertree Residences) and Keong Hong Holdings, at S$624.18m or S$858 psf ppr.
The price of S$858 psf ppr for this Siglap Road GLS site rivals that of the GLS site next to Redhill MRT Station at S$851 psf ppr won by Tang Skyline Pte Ltd in November 2015.
The bidders include mega developers, i.e. Fraser Centrepoint, City Developments, GuocoLand, UOL and Hoi Hup. The highest bid came from a joint-consortium which comprises of Fraser Centrepoint, Sekisui House (who are also the developers for two other very popular projects - North Park Residences and Rivertree Residences) and Keong Hong Holdings, at S$624.18m or S$858 psf ppr.
The price of S$858 psf ppr for this Siglap Road GLS site rivals that of the GLS site next to Redhill MRT Station at S$851 psf ppr won by Tang Skyline Pte Ltd in November 2015.
This exciting 1.93-hectare Siglap Road GLS land parcel offering unparalleled sea view may consist of 850 residential units expected to launch around end of 2016.
http://www.latestprojectlaunch.com/siglap-road-gls-land-parcel.html
http://www.latestprojectlaunch.com/siglap-road-gls-land-parcel.html
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The new year has barely began and developers are anxious to get the land sales ball rolling. The Urban Redevelopment Authority (URA)'s reserve site was triggered for sale on 7 Jan 2016 - a 2.44ha site that can build Around 570 homes at the junction of New Upper Changi Road and Bedok South Avenue 3.
An unnamed developer has committed to a minimum bid of $320 million, or about $580 per sq ft per plot ratio (psf/pr), the URA said. Triggering a site so soon in the year, and amid gloomy economic news, suggests that developers must simply keep their businesses going. "It's all about forward planning. If you are a developer, you need that continuity of business and the biggest raw material in the equation is land," said Mr Desmond Sim, CBRE research head for Singapore and South-east Asia.
The bid lodged comes less than four months after a reserve-list site in Lorong Lew Lian was triggered and sold last year. The Lorong Lew Lian sale surprised some, as it was the first such reserve parcel released in about 21 months, and it flew in the face of a somewhat-moribund market. Experts said they expect some reserve plots would be triggered, given the Government Land Sales slate for this half of the year.
"There's been a significant pullback in confirmed-list sites and a top bid for this one would probably be less than $400 million, a palatable amount," said Mr Sim. "Definitely, there is still pressure on prices and unsold stock at the moment. But (a developer who buys a site now) would still have a few years to plan and sell units."
More reserve plots will likely come on sale in the next six months, as the number of developers far outweighs that of development sites, he added.
While many Singapore developers have ventured overseas, there is a need for them to continue doing projects in Singapore to occupy their project staff, said Mr Lee Liat Yeang, Rodyk & Davidson partner in real estate. "With many projects completing since last year and into next year, the developers of the well-sold ones will have the financial appetite, after collecting more payments, to take on new projects."
The site trigger also shows that developers have confidence in the mid- to long-term potential of the local real estate market, he added.
Two smaller reserve-list parcels could be triggered in coming months - a 0.48ha one in Margaret Drive that can host 275 units and a 0.47ha plot in Bartley Road that can accommodate 115 units, said Mr Eugene Lim, ERA Realty key executive officer. A mixed-use 2.3ha Holland Road site that can yield about 570 residential units is also a possibility. "Developers would look out for site attributes, such as closeness to an MRT station, or a proven location where projects sell well," he added.
The plot triggered yesterday is a case in point: It is opposite Tanah Merah MRT station, with nearby amenities including Bedok Market Place and Changi General Hospital. Developers would also bear in mind the upcoming The Glades condominium right next door, which has sold about 50 per cent of 726 units. A defensive bid is possible.
A top bid could come in at $600 to $700 psf/pr, less than the $791 psf/pr for the site of The Glades, which was sold in a more buoyant market in October 2012, said Mr Ong Teck Hui, JLL national research director.
For more information on the Tanah Merah land parcel, you may click this link below:
http://www.latestprojectlaunch.com/tanah-merah-gls-land-parcel.html
Article appeared on Straits Times online - 8 Jan 2016
An unnamed developer has committed to a minimum bid of $320 million, or about $580 per sq ft per plot ratio (psf/pr), the URA said. Triggering a site so soon in the year, and amid gloomy economic news, suggests that developers must simply keep their businesses going. "It's all about forward planning. If you are a developer, you need that continuity of business and the biggest raw material in the equation is land," said Mr Desmond Sim, CBRE research head for Singapore and South-east Asia.
The bid lodged comes less than four months after a reserve-list site in Lorong Lew Lian was triggered and sold last year. The Lorong Lew Lian sale surprised some, as it was the first such reserve parcel released in about 21 months, and it flew in the face of a somewhat-moribund market. Experts said they expect some reserve plots would be triggered, given the Government Land Sales slate for this half of the year.
"There's been a significant pullback in confirmed-list sites and a top bid for this one would probably be less than $400 million, a palatable amount," said Mr Sim. "Definitely, there is still pressure on prices and unsold stock at the moment. But (a developer who buys a site now) would still have a few years to plan and sell units."
More reserve plots will likely come on sale in the next six months, as the number of developers far outweighs that of development sites, he added.
While many Singapore developers have ventured overseas, there is a need for them to continue doing projects in Singapore to occupy their project staff, said Mr Lee Liat Yeang, Rodyk & Davidson partner in real estate. "With many projects completing since last year and into next year, the developers of the well-sold ones will have the financial appetite, after collecting more payments, to take on new projects."
The site trigger also shows that developers have confidence in the mid- to long-term potential of the local real estate market, he added.
Two smaller reserve-list parcels could be triggered in coming months - a 0.48ha one in Margaret Drive that can host 275 units and a 0.47ha plot in Bartley Road that can accommodate 115 units, said Mr Eugene Lim, ERA Realty key executive officer. A mixed-use 2.3ha Holland Road site that can yield about 570 residential units is also a possibility. "Developers would look out for site attributes, such as closeness to an MRT station, or a proven location where projects sell well," he added.
The plot triggered yesterday is a case in point: It is opposite Tanah Merah MRT station, with nearby amenities including Bedok Market Place and Changi General Hospital. Developers would also bear in mind the upcoming The Glades condominium right next door, which has sold about 50 per cent of 726 units. A defensive bid is possible.
A top bid could come in at $600 to $700 psf/pr, less than the $791 psf/pr for the site of The Glades, which was sold in a more buoyant market in October 2012, said Mr Ong Teck Hui, JLL national research director.
For more information on the Tanah Merah land parcel, you may click this link below:
http://www.latestprojectlaunch.com/tanah-merah-gls-land-parcel.html
Article appeared on Straits Times online - 8 Jan 2016
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The GLS plot of land for a new EC in Yio Chu Kang
The last land parcel for an EC residential site for 2015 was launched for sale on 29 Dec 2015 by the HDB. Developers welcome the news given that the Government has been trimming land supply across both condo and EC segments.
Moderate interest is expected for the 1.84ha executive condominium (EC) plot, which can yield about 520 units, in Yio Chu Kang Road because this Yio Chu Kang EC site is not near an MRT station but very accessible by road and also close to amenities, including Hougang 1 mall and Rosyth School. It is also surrounded by mature HDB estates that could provide a catchment of potential EC buyers. With numerous EC projects still holding many unsold units, developers may be cautious in their bidding, with an expected top bid coming in between $260 psf ppr and $300 psf ppr, and some four to eight parties contesting.
Moderate interest is expected for the 1.84ha executive condominium (EC) plot, which can yield about 520 units, in Yio Chu Kang Road because this Yio Chu Kang EC site is not near an MRT station but very accessible by road and also close to amenities, including Hougang 1 mall and Rosyth School. It is also surrounded by mature HDB estates that could provide a catchment of potential EC buyers. With numerous EC projects still holding many unsold units, developers may be cautious in their bidding, with an expected top bid coming in between $260 psf ppr and $300 psf ppr, and some four to eight parties contesting.
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11 Dec 2015 - After much anticipation and excitement, The Urban Redevelopment Authority (URA) has decided to award the tender for a residential land parcel at Clementi Avenue 1 to reputable developers Singland Homes and UOL Venture Investments, after receiving the highest bid submission of $302.1 million from the developers. This will translate to approximately $6,620 per square metre or equivalent to $615 per square foot per plot ratio.
The tender for this plum land parcel of 99-year leasehold site measuring 140,339 sq ft closed on the 9th of December 2015 after attracting six bids. With a maximum permissible gross floor area of 491,190 sq ft, the land parcel could yield 460 homes.
Located in the western region of Singapore, the land parcel site is close to the National University of Singapore (NUS), Clementi Sports Hall and Jurong Lake District, which is just one station away from Clementi MRT station. This makes this residential land parcel at Clementi Avenue 1 an attractive choice for potential home owners.
http://www.latestprojectlaunch.com
The tender for this plum land parcel of 99-year leasehold site measuring 140,339 sq ft closed on the 9th of December 2015 after attracting six bids. With a maximum permissible gross floor area of 491,190 sq ft, the land parcel could yield 460 homes.
Located in the western region of Singapore, the land parcel site is close to the National University of Singapore (NUS), Clementi Sports Hall and Jurong Lake District, which is just one station away from Clementi MRT station. This makes this residential land parcel at Clementi Avenue 1 an attractive choice for potential home owners.
http://www.latestprojectlaunch.com
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On 1 Dec 2015, Reuters reported that Australia unveiled new investment rules to crack down on foreigners who unlawfully own residential properties as well as to improve scrutiny on acquisitions of farmland from overseas.
Australia also plans to fine and even jail foreigners who violate rules to purchase existing homes instead of new launch residential properties or buildings under construction.
Real estate prices in Australia have skyrocketed over the years, especially in Melbourne and Sydney, with growing concerns that cash rich foreign buyers, particularly those from China, have inevitably inflated the market greatly. In order to protect their own domestic market, the Australian government has new laws to punish foreigners illegally buying Australian real estate of up to three years imprisonment or fines of A$135,500 for foreign individuals and A$675,000 for foreign companies.
New civil penalties supporting divestment orders and ensuring people who break the rules do not profit from their actions also come into effect, including forfeiting any capital gains made on divestment of a property and fines for third parties who knowingly assist foreign investors to break the rules.For the first time, fees on foreign investment applications will also be levied. Australia also tightened scrutiny and transparency on foreign ownership of agricultural production amid concerns of valuable assets going to foreigners, therefore foreign buyers must be screened by the national regulator.
Australia also plans to fine and even jail foreigners who violate rules to purchase existing homes instead of new launch residential properties or buildings under construction.
Real estate prices in Australia have skyrocketed over the years, especially in Melbourne and Sydney, with growing concerns that cash rich foreign buyers, particularly those from China, have inevitably inflated the market greatly. In order to protect their own domestic market, the Australian government has new laws to punish foreigners illegally buying Australian real estate of up to three years imprisonment or fines of A$135,500 for foreign individuals and A$675,000 for foreign companies.
New civil penalties supporting divestment orders and ensuring people who break the rules do not profit from their actions also come into effect, including forfeiting any capital gains made on divestment of a property and fines for third parties who knowingly assist foreign investors to break the rules.For the first time, fees on foreign investment applications will also be levied. Australia also tightened scrutiny and transparency on foreign ownership of agricultural production amid concerns of valuable assets going to foreigners, therefore foreign buyers must be screened by the national regulator.
