Singapore Property Weekly Issue 151
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Transcript of Singapore Property Weekly Issue 151
Issue 151Copyright © 2011-2014 www.Propwise.sg. All Rights Reserved.
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CONTENTS
p2 Who Manages the Land Supply in Singapore?
p7 Singapore Property News This Week
p12 Resale Property Transactions
(March 26 – April 1)
Welcome to the 151st edition of the Singapore Property Weekly.
Hope you like it!
Mr. Propwise
FROM THE
EDITOR
SINGAPORE PROPERTY WEEKLY Issue 151
Page | 2Back to Contents
By Paul Ho (guest contributor)
Have you ever wondered how Singapore's
land supply is managed? Who controls the
largest land supply? You often see that the
URA and HDB launches land for sale – do
they own this land? In order to shed light on
this topic, it is important to understand the
role of each statutory body.
Urban Redevelopment Authority (URA)
The Urban Redevelopment Authority is
primarily in-charge of urban renewal,
designing Singapore's land use master plan
and various other initiatives. Their role spans
residential dwelling, entire township designs
Who Manages the Land Supply in Singapore?
SINGAPORE PROPERTY WEEKLY Issue 151
Page | 3Back to Contents
which includes commercial, industrial as well
as residential zoning and density.
The URA also acts as an agent for the State
in carrying out land sales for commercial,
hotel, private residential and industrial
developments. In addition, the URA also sells
sites for special uses, for example for heavy
vehicle parks, conservation shophouses and
recreational developments.
Housing Development Board (HDB)
The HDB as most people are already aware,
involves itself in building low cost public
homes for Singaporeans as well as
Permanent Residents. Apart from that, HDB
is also involved in many other facets of
properties.
The HDB also manages a total of close to
12,000 ready-built factories and industrial
land leases located island-wide catering to a
wide spectrum of customer needs. These
properties include low-rise workshops,
warehouses, high-rise factories with vehicular
ramps for access, specialized high-rise food
factories and motor-vehicle service and repair
complexes, and land-based properties. The
majority are for rental. Most of the trades that
can be accommodated within these
properties and developments are Clean and
Light industries and some small-scale
General industries.
It is still a puzzle why the HDB is involved in
industrial properties to begin with. The HDB
also acts as an agent for the state to sell land
for various uses, though the bulk of this land
is residential HDB or EC use, it is not
restricted to these.
SINGAPORE PROPERTY WEEKLY Issue 151
Page | 4Back to Contents
Singapore Land Authority (SLA)
The SLA helps the government to manage its
land sales system. Its role is to make sure
that the land achieves optimum returns. The
SLA also manages the land title system, and
is also in-charge of appointing sales agents
for state land. Hence it is the authority
responsible for appointing sales agents such
as the HDB, URA, JTC, and LTA and to make
sure that compliance and statutory guidelines
are adhered to for the land sales process.
Certain parcels of land are also available for
sale by the state under the SLA. These lands
are remnant lands (landed developments)
which cannot be economically used by the
state and could also be odd shaped. These
lands hold great value to the adjacent land
owners as they can extend their development
and combine it with these remnant lands to
create better economic value, or more
luxurious consumption. Other lands such as
agricultural land on short leases are also sold
by SLA to bidders.
Contrary to popular belief, SLA is a statutory
board of the Ministry of Law.
Jurong Town Corporation (JTC)
The JTC is mainly focused on building
Singapore's industrial infrastructure, and has
developed 7,100 hectares of industrial land
and 3.2 million square metres of ready-built
facilities across the entire spectrum of
industrial space.
The JTC’s role is to help Singapore
concentrate industrial and economic clusters
together by grouping the suppliers and
services close to the end users coupled with
funding and support, to promote the economic
growth of Singapore.
SINGAPORE PROPERTY WEEKLY Issue 151
Page | 5Back to Contents
JTC is also appointed to be the sales agent of
state lands, hence it launches land under the
government land sales program (GLS). JTC is
under the purview of Ministry of Trade and
Industry.
Ministry of National Development (MND)
This is the ministry where Minister Khaw Boon
Wan sits. This is the hottest seat. The MND
develops the land use planning for Singapore
and pushes through various visions such as
the “endearing home and global city" initiative.
As such, the MND has purview over national
well-being, namely food (via Agri-Food &
Veterinary Authority, AVA), safety of dwellings
(via the Building and Construction Authority,
BCA), housing (via HDB), housing
transactions and orderliness (via the Council
of Estate Agencies, CEA), nature and
enjoyment (via the National Parks, NParks)
and land use planning, zoning and land user
master planning (via the Urban
Redevelopment Authority, URA), and aims to
provide a superior living environment for
Singapore citizens, Singapore PRs as well as
other nationalities.
The URA is often appointed as the sales
agent for government land sales relating to
private condominiums and commercial
properties, but less so in other property
segments. The SLA helps to appoint sales
agents for the government land sales (GLS)
program for sales of state land. The URA,
HDB, JTC, LTA as well as SLA can be
appointed sales agents for state land. The
MND overlooks the URA and HDB, the
Ministry of Trade and industry (MTI) overlooks
JTC, the Ministry of Transport overlooks the
LTA, and the Ministry of Law overlooks the
SLA.
SINGAPORE PROPERTY WEEKLY Issue 151
Page | 6Back to Contents
Hence for any researcher to do a
comprehensive research of property and land
supply, he cannot overlook any of the above
organizations.
For example, if there is an over-supply in
condominiums (private properties), but an
under-supply in commercial properties, it is
possible for condominiums to be converted to
commercial properties by paying a Differential
Premium (DP) to the Singapore Land
Authority (SLA) for change of use. Hence
often we cannot analyze any particular
property segment in isolation of the other
segments.
Is HDB veering too far off?
And some statutory boards such as the HDB
seem to be more enterprising and even have
industrial properties under management for
rental, which is weird considering its mission.
Perhaps it has veered a little off its original
aim of providing housing for the masses.
What do you think? Leave a comment below
to let us know what you think.
By Paul Ho, holder of an MBA from a
reputable university and editor of
www.iCompareLoan.com, Singapore’s first
Cloud-based Home Loan reporting platform
used by Property agents, financial advisors
as well as Mortgage brokers.
SINGAPORE PROPERTY WEEKLY Issue 151
Singapore Property This Week
Page | 7Back to Contents
Residential
Condo project The Sorrento to be
launched at Easter weekend
The freehold five-storey condominium project
The Sorrento (the former Regent Gardens)
by Allgreen Properties at West Coast Road
will be launched on the Easter weekend of
April 19. The indicative pricing was between
$1,380 and $1,600 psf. The project is on a
site of 78,100 sq ft, and has 131 one to three-
bedroom units of between 441 sq ft and
1,808 sq ft. The marketing agent for the
project is CBRE, which said that the pricing is
considered attractive compared to other
nearby developments.
(Source: Business Times)
Resale condo prices up in March
The resale prices of non-landed private
homes in March 2014 increased 0.2 percent,
alongside an increase in transaction prices in
the Rest of Central Region (RCR), compared
with the 3.1 percent decline in resale prices in
February. The number of resale transactions
in March also went up to 451 transactions,
which is the highest figure since October
2013, and is 82.6 percent higher than the
previous month and 22.5 percent lower than
that of March, 2013. Analysts said that this
recovery shows the higher demand in March
from buyers after the festive January and
February, but it will be too early now to cheer.
(Source: Business Times)
SINGAPORE PROPERTY WEEKLY Issue 151
Page | 8Back to Contents
HDB resale prices go up slightly
Data from the Singapore Real Estate
Exchange (SRX) shows that the resale prices
of HDB flat has slightly increased for 0.3
percent in March, as price increases in
smaller units balanced the declines in larger
units. Prices for three- and four-room units
went up 0.5 percent and 0.8 percent, as
buyers looked for units with smaller quantum
due to the loan cap of the Mortgage Servicing
Ratio (MSR). Transaction volumes also
significantly went up since buyers returned
after the festive months of January and
February.
(Source: Business Times)
Hillview House up for sale
The freehold Hillview House is now up for
sale with an asking price of $55 million, or
$875 psf based on its potential gross floor
area including an $18.2 million estimated
development charge payable to the state –
the same price as of last round when it was
offered in a tender exercise closing in July
2013. This time’s tender closes on May 12. Its
owner will offer the site in a vacant state, after
having pulled down the old Hillview House
industrial building to meet the Urban
Redevelopment Authority's Feb 23, 2014
deadline of ceasing industrial activities and
clearing the site for the qualified 1.92 plot
ratio, including a 0.3 additional plot ratio.
(Source: Business Times)
Sky Habitat to be relaunched at lower
prices
CapitaLand's Bishan project Sky Habitat is
reported to be relaunched at lower prices of
$1,370 psf on April 19, according to its
marketing agent Knight Frank.
SINGAPORE PROPERTY WEEKLY Issue 151
Page | 9Back to Contents
At the project’s first launch in 2012, the prices
was from $1,435 to $1,893 psf, and the
average selling price was about $1,650 psf
with the initial 3 per cent discount given to all
buyers. 36 percent of 509 units have been
sold as the project is near its temporary
occupation permit in 2015. The relaunch price
of one-bedroom cum study could be from
$1.05 million or $1,485 psf, compared with
the previous price of $1,600 psf.
(Source: Business Times)
Commercial
Frasers Centrepoint Trust purchases
Changi City Point
Frasers Centrepoint Trust (FCT) was reported
by its manager Frasers Centrepoint Asset
Management (FCAM) to have reached a
conditional sale-and-purchase agreement for
Changi City Point mall for a possible $305
million. The decision of acquisition was
negotiated on an arm's-length basis between
FCAM and the vendor Ascendas Frasers,
which is a 50-50 joint-venture between
Frasers Centrepoint Limited and Ascendas
Development.
(Source: Business Times)
Far East-Sekisui House joint venture wins
highest bids for Woodlands office site
The joint venture between Far East
Organization, its listed unit Far East Orchard
and Sekisui House was reported to have had
the highest bid of nearly $634 million, or
$906.29 psf of the potential gross floor area
for the office site in Woodlands Regional
Centre in a state tender. The venture is
planning to build two 16-storey office towers
on the site with large and small strata office
units for sale and lease.
SINGAPORE PROPERTY WEEKLY Issue 151
Page | 10Back to Contents
Some retail space will also be expected for
the venture’s long-term investment. The
second highest bid was $887.42 psf ppr by
CapitaLand units Mahogany One and
Mahogany Two.
(Source: Business Times)
14th floor of Samsung Hub sold for $39.72
million
The 14th floor of Samsung Hub was sold at
$39.72 million, or $3,030 psf on its 13,110 sq
ft strata area. It has also been speculated that
Arch Capital Management is selling the whole
office floor of four strata units to a mainland
Chinese company, but the floor is still leased
until the end of 2014 to a law firm. If this
happens, Arch Capital will be leaving the 999-
year leasehold office tower, as it had already
sold its 13,110 sq ft space on the 13th floor in
late 2012, early 2013 for prices between
$2,920-$3,150 psf.
(Source: Business Times)
CapitaGreen has its first tenant
The new 40-storey Grade A office tower
CapitaGreen, which will be completed in Q4
2014, has landed its first tenant, as Cargill
has signed a lease of 50,000 sq ft on two
floors with the monthly rents of $9 psf. Swiss
private bank Bordier & Cie may be the next
tenant as it could be signing a lease for
11,000-12,000 sq ft - or half a floor in the
tower as it leaves its current location at GB
building along Cecil Street. A serviced office
operator could also be in negotiation to lease
a floor at the building.
(Source: Business Times)
SINGAPORE PROPERTY WEEKLY Issue 151
Page | 11Back to Contents
Hotel room rates increase in early 2014
Initial figures from the Singapore Tourism
Board (STB) showed that average room rates
(ARR) increased 2.5 percent year-on-year to
$260.10 in January and February 2014,
painting an optimistic outlook for the industry.
The industry-wide occupancy also increased
0.8 percent to 86 percent. The revenue per
available room (RevPAR), a performance
indicator based on ARR and average
occupancy went up to $223.60. Luxury,
upscale and mid-tier hotels were all reported
to slightly increase in their ARR and RevPAR.
However, economy hotels lost 4.7 percent in
ARR to only $95.80, while its RevPAR
declined 8 percent to $76.20.
(Source: Business Times)
SINGAPORE PROPERTY WEEKLY Issue 151
Page | 12Back to Contents
Non-Landed Residential Resale Property Transactions for the Week of Mar 26 – Apr 1
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
1 THE SAIL @ MARINA BAY 614 1,520,000 2,477 99
1 THE SAIL @ MARINA BAY 614 1,290,000 2,103 99
1 EMERALD GARDEN 926 1,750,000 1,890 999
3 RIVER PLACE 786 1,200,000 1,527 99
3 ALESSANDREA 1,098 1,480,000 1,348 FH
4 CARIBBEAN AT KEPPEL BAY 1,335 2,158,000 1,617 99
5 LANDRIDGE CONDOMINIUM 1,765 1,970,000 1,116 FH
7 SOUTHBANK 958 1,565,000 1,634 99
8 CITY LOFT 344 613,000 1,780 FH
9 MARTIN NO 38 969 2,665,000 2,751 FH
9 RIVERGATE 1,841 4,045,000 2,198 FH
9 RIVERGATE 1,755 3,780,000 2,154 FH
9 ROBERTSON 100 1,033 1,900,000 1,839 FH
10 LATITUDE 1,615 3,700,000 2,292 FH
10 MUTIARA VIEW 1,345 1,950,000 1,449 FH
10 THE TRIZON 2,067 2,960,000 1,432 FH
10 HOLLAND RESIDENCES 1,755 2,000,000 1,140 FH
11 M21 1,066 1,531,000 1,437 FH
12 AIRSTREAM 334 550,000 1,648 FH
12 RIO GARDENS 1,152 1,250,000 1,085 FH
12 MOONSTONE RESIDENCES 1,238 1,300,000 1,050 FH
15 THE SEAFRONT ON MEYER 1,066 1,920,000 1,802 FH
15 ESPIRA SUITES 441 728,500 1,651 FH
15 DE CENTURION 1,044 1,220,000 1,168 FH
Postal
DistrictProject Name
Area
(sqft)
Transacted
Price ($)
Price
($ psf)Tenure
15 PEACH GARDEN 2,766 3,050,000 1,103 FH
16 COSTA DEL SOL 1,313 1,858,000 1,415 99
16 WATERFRONT WAVES 1,259 1,460,000 1,159 99
16 THE BAYSHORE 1,012 1,058,888 1,047 99
16 RICH EAST GARDEN 2,573 2,600,000 1,011 FH
17 COASTAL BREEZE RESIDENCES 1,184 1,166,000 985 99
17 LOYANG VALLEY 1,873 1,100,000 587 99
18 EASTPOINT GREEN 969 900,000 929 99
19 KOVAN GRANDEUR 570 680,000 1,192 99
19 KOVAN MELODY 1,152 1,200,000 1,042 99
19 CASA ROSA 1,130 1,060,000 938 99
19 SUITES @ PAYA LEBAR 1,249 938,000 751 FH
19 HOUGANG GREEN 1,141 790,000 692 99
21 THE BLOSSOMVALE 1,324 1,888,000 1,426 999
21 PARC PALAIS 1,389 1,380,000 994 FH
22 THE MAYFAIR 1,163 950,000 817 99
23 GUILIN VIEW 861 800,000 929 99
26 THE CALROSE 1,238 1,600,000 1,293 FH
26 THE CALROSE 1,238 1,580,000 1,276 FH
NOTE: This data only covers non-landed residential resale property
transactions with caveats lodged with the Singapore Land Authority.
Typically, caveats are lodged at least 2-3 weeks after a purchaser
signs an OTP, hence the lagged nature of the data.