michael jackson news: Singapore Property News This Week #79

Residential

6,463 BTO flats launched in 7 HDB projects, with at least another 20,000 next year

The 6,463 new BTO flats launched brought the total number of BTO flats launched in 2012 to a record-breaking 27,084 units. Including the 7,153 balance flats launched earlier in the Sale of Balance Flats (SBF) Exercises, a total of 34,237 new flats had been launched in 2012. This large number of units is likely a result of the high demand. HDB also announced its intention to launch a minimum of 20,000 BTO flats in 2013, with 3,320 BTO flats in Ang Mo Kio, Choa Chu Kang, Hougang, Kallang Whampoa, Tampines, and Yishun in January.

The seven BTO projects launched includes Fengshan GreenVille in Bedok (featuring 1,058 units), Ghim Moh Edge (1,179 flats), Toa Payoh Crest (1,007 flats), and Joo Seng Green (248 units), Compassvale Mast (928 units) and Rivervale Delta (884 units) in Sengkang, and Keat Hong Mirage in Choa Chu Kang opposite Keat Hong LRT station (1,159 flats). The first four are in the mature towns of Bedok, Queenstown, and Toa Payoh while the latter three are located in the non-mature towns of Choa Chu Kang and Sengkang. The Compassvale Mast site is expected to be the most popular with a subscription rate of 2.5 since it is the only located next to an MRT station. Inclusive of the Additional CPF Housing Grant and the Special CPF Housing Grant, the price for a five-room flat at the two Sengkang projects starts from $294,000. Pricing for a studio apartment at Toa Payoh Crest starts from $116,000 while a four-room flat at Joo Seng Green and Toa Payoh Crest and a five-room flat at Fengshan GreenVille start from $346,000 and $461,000 respectively including grants.

An overall subscription rate of between 1 and 2 is expected.

(Source: Business Times)

99-year leasehold Pasir Ris EC site attracts $207m top bid

The EC site at the intersection of Pasir Ris Drive 3 and Pasir Ris Rise attracted a total of 10 bids, with the top bid of $207 million, or $331.10 psf ppr from Hao Yuan Investment. The unexpected number of bidders and unexpected top bid was likely due to its proximity to the beach, Pasir Ris Park and Downtown East. The expected breakeven price is $600-650 psf.

(Source: Business Times)

Khaw reminds developers of the spirit of ECs

Possibly in light of the recent headlines on the record-breaking price of EC units, National Development Minister Khaw Boon Wan reminded EC developers that even when flexibility is given in the design and the pricing of ECs, they should keep the ECs affordable, since they are targeted at Singaporean families earning within $12,000 a month hoping to purchase condominium-style homes below the market rate. He also said that EC plots have a lower land price to allow developers to keep the prices relatively low. Some felt that these comments meant that there might be new measures introduced to control the prices of ECs. Nevertheless, 91% of ECs are still affordable at below $1 million.

(Source: Business Times)

Commercial

Office rents likely to fall

With an estimated 7.2 million sq ft NLA of upcoming office space in the CBD over the next five years, coupled with the uncertain economy, office rents are expected to fall. These include Duo and Marina One which would contribute almost 2.5 million sq ft of prime commercial space when completed in 2017. In the meantime, there are other prime Grade A buildings contributing 3.2 million sq ft in the CBD area which will be completed soon or in the next few years, such as the Marina Bay Financial Centre (MBFC) Tower 3 and One Raffles Place Tower 2. In addition, there are another 2.1 million sq ft of NLA from new commercial buildings outside of the CBD.

(Source: Business Times)

99-year leasehold The Index strata offices to be released

The Index, a 31-storey mixed-use development located at Robinson Road/Cecil Street near Tanjong Pagar MRT Station, is said to be releasing its strata offices starting from $2,400 psf. Offices will be located at levels 10 to 31, with the top eight levels offering large whole-floor office units of 10,548 sq ft per floor and levels 10 to 23 offering 136 smaller units of 592 sq ft to 1,442 sq ft. In addition to the strata office units, The Index will offer 50 medical suites on the third to fifth levels with sizes ranging from 613 sq ft to 1,345 sq ft. These are expected to be priced from $3,500 psf. The office units will have floor-to-floor height of 5 m while the medical suites will have a height of 4.5 m. The tower will also include space for civic and community institutional use, two lobbies for the offices and medical suites, two food-and-beverage outlets with outdoor dining areas and a shop unit, a fully sheltered landscaped plaza, carpark lots on three basement levels, and a roof garden and pool on the ninth floor.

(Source: Business Times)

Jurong Town Hall Road hotel site attracts $238.2m top bid

Tamerton Pte Ltd, a wholly owned subsidiary of Resorts World Singapore (RWS), set a record for hotel land price with its $238.2 million or $1,167.35 psf ppr bid for the Jurong site, beating out 10 other bidders. While the record bid was unexpected, many felt that there will be demand for the hotel rooms since it can cater to visitors to RWS who cannot afford for the $300-$400 rooms in Sentosa and it is located near Jurong East MRT station and other upcoming developments like Jem, Westgate.

(Source: Business Times)

JTC launches three ?Business 2? sites for sale by public tender

The first site is a 30-year leasehold 2.74 ha site located in Buroh Street, in an established industrial estate the Boon Lay region. Its 2.5 maximum permissible GPR means it can potentially yield a GFA of over 737,000 square feet. While not subject to restrictions on strata subdivision, each unit have a minimum unit size of at least 150 sq m. It is expected to draw five to nine bids, with a top bid of $40-$105 psf ppr.

The other two sites are the 22.5-year leasehold plots 30 and 32 located at Tuas South Street 6. The two 0.86-ha plots with a 1.0 maximum permissible GPR are expected to see more demand from end-users. Plot 30 is expected to be the more popular of the two, with an expected number of bidders and top bid to be eight to 13 and $60-90 psf ppr respectively. Plot 32, on the other hand, is expected to attract five to 10 bids with a top bid of $55-80 psf ppr.

The tender will close at 11am on Jan 2.

(Source: Business Times)

Tropical Industrial Building at Upper Paya Lebar sold for $31.8m

The eight-storey freehold building along Little Road, in Upper Paya Lebar near Tai Seng MRT Station had been sold to Keris Investments, a Cathay Group unit, for $31.8 million, $632 psf based on its 50,300 sq ft total strata area or $510 psf based in its 62,375 sq ft existing GFA. There are eight strata titles, one on each floor. Of these, seven are leased, with four expiring in Q1 2023 and the last in June 2014.The building sits on a site zoned for Business 1 use with a 2.5 plot ratio also offers 20 parking lots in the basement.

Separately, 700 Beach, a boutique office block located between Golden Mile Complex and Golden Mile Tower and near Nicoll Highway MRT Station, is put up on the market again with an indicative pricing of $115 million or $1,759 psf based on its 65,374 sq ft NLA. Located on a site with a 99-year-leasehold tenure that started in April 2004, the earlier offer was not successful since some leases have yet to expire. However, with the expected departure of current tenants GroupM and the offer of Hirsch Bedner to move out if the new owner prefers so, 70% of the building?s NLA could be vacant. The site could potentially be converted for hotel use.

(Source: Business Times)