Month: October 2023

The public is invited to bid on a freehold property at 255 Jalan Besar. Its guide price is $22,000,000. The three storey property has a floor area (GFA), which is approximately 7,750 sq.ft., and a site size of 3,145 sq.ft.

Accordingly, the GFA is approximately 1,685 sf.

The price of the shophouse will be $2,838/sq ft based off the GFA. Or $2,331/sq ft based off the maximum permissible floor area (9,435 sq. ft.).

Michael Tay, CBRE’s head of Singapore capital markets says, “Given these exceptional attributes such a freehold tenure with wide frontage and the potential for naming-and-signaling rights, we anticipate strong interest both from investors and owner occupants.”

Situated in Jalan Besar Secondary Conservation area the property has been zoned as commercial and is a 3.0 gross plot ratio under the Master Plan for 2019.

He also says that there has been a growing demand for the shophouses at the city’s fringe in the past year. Notable deals include the $38.5-million sale of 203 & 207 Jalan Besar in early May, and the $26-million sale of 301 Jalan Besar in earlier months.

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The deadline for 255 Jalan Besar’s tender is Nov 30, at 12pm.

Joshua Giam from CBRE’s associate director of Singapore capital markets highlights how the new owner is able to maximize the plot ratio if they build a rear addition or increase the size of the current floorplate.

The shophouse may be converted to F&B or clinics, co-living, serviced apartment, hostels, etc., with the permission of the authorities. Giam says: “These initiatives are designed to allow the new owners to maximise the capital value and rental return of their property.”

The Bencoolen office unit amalgamation will sell for 7,8 millions dollars at Knight Frank’s next auction. This is scheduled to take place Nov 16, 2016. Owner’s Sale. 99 year leasehold property. 71 years left.

Landlords can expect to enjoy an annual rental yield between 3.8% and 4.0%. This is a higher rate than many of the nearby office buildings such as Bugis Cube Buildings have respective rental yields between 3.7% – 2.9%.

Ample parking is provided in the basement and on both floors. Its proximity to the main transport infrastructure is a benefit of its location on the outskirts of town. Rochor MRT Station, Bugis MRT Stations are within less than 500m.

Sharon Lee of Knight Frank, who is the head auctioneer, states that finding an entire floorplate in this space is rare. She added: “The unit has a lift facing it, and toilets outside, so they aren’t included in the area of the floor.” The subject units, in addition, are still well maintained.”

The Bencoolen is an integrated development at 180B Bencoolen Road in District 7, which includes the office units. The complex includes three buildings: a 19 story residential tower, a 12-story office building with a 3-storey retail podium, and an underground.

The Bencoolen has sold units for $1,608 on average per sq ft, according to the caveats that were filed over the past year. In the last twelve months, rental rates for The Bencoolen ranged between $3.40 psf and $6.50 pm (or an average of 5.10 psfpm).

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The building includes 182 flats, 70 offices and 95 storeys. Amenities include a swimming pool and wading area, clubhouses, multi-purpose rooms, a tennis and gymnasium court, saunas and an exercise room.

The Bencoolen, according to caveats lodged at the URA this year had just one sale of retail space. In April, a unit of about 258 square feet was sold at approximately $1.57 Million ($6,070/sq ft). This property was purchased in 2000 by the seller for $555.582. ($2,151 per square foot) which translated to an approximate profit of $1.01million.

The 4,198-square-foot units will serve as one office up until April 30, 2019. Knight Frank had previously auctioned off the property in early April.

The building is zoned to allow for both residential and commercial uses, with an overall plot ratio of 4,2. Office units consist of a reception room, conference space, general office room, meeting room. Also included are partitioned offices and pantry.

All five offices are located at the same height, and face the lift lobby.

The market for housing has reacted in a different way to the recent rise in mortgage interest rates. The strike of home sellers then boosted interest in newly constructed homes. Homebuilders were the brightest market. The lack of inventory held prices at a high. This enabled companies to make profit with healthy margins in order to lower the mortgage rates of buyers. This no longer seems to be the case. Buying down home-loan rates to 5.5 percent – the minimum required for prospective buyers – is easier around 7 per cent rather than 8 per cent. Confidence among builders is going the way of their stock prices and profit margins. This month the National Association of Home Builders/Wells Fargo sentiment gauge dropped to its lowest point since January. Builders are likely to reduce their plans for production in the near future.

Multi-family housing starts also experienced relative stability earlier in the year, and units under construction were increasing as delays in supply chain kept projects from completion. The past two months have witnessed a notable drop-off – starts in September were down 31.5 percent year-over- the previous year. Moreover units under construction have decreased for the past two months, which suggests we’re over the top of this period. With fewer units starting and a shrinking number in construction renting will hinder growth in the economy for a long time into 2024.

The first time in a while since the Federal Reserve started raising interest rates, every part of the market for housing is poised to worsen.

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Since early 2022, the resale housing market has been sagging as sellers are unwilling to surrender their mortgage rates that are low. New houses had offered buyers some relief. There was no need to worry. Homebuilders have been shattered by the recent rise in mortgage rates, which could reach as high as 8 percentage. Since profit margins are declining they’ll most likely reduce their building in the coming months. Construction of apartments has also been rolling into the past few months as developers are afflicted by the combination of slow rent growth and high financing costs.

The discontent of potential buyers is well known. What are the macroeconomic implications? Because of the significance of housing to overall activity, subdued residential construction should restrict the rate at which the economy can expand however not enough to cause a recession over the next few quarters. To the extent that the brutal sell-off in Treasuries has been in response to hotter-than-hoped-for economic data, a paralysed housing sector will offer some respite.

Investors need to be aware of this as the recent decline in Treasuries is a major shock. This is due to a robust consumer market and high expectations of real GDP growth during the third quarter. JPMorgan Chase. estimates that the economy grew by nearly 4 per cent last quarter. The bulk of the growth comes from housing, which should add to GDP growth in the first time since the beginning of 2021 thanks to this summer’s pickup in single-family home begins. This is unlikely to last into the coming quarter, or perhaps 2024, until interest rates decrease.

The return of student loan repayments as well as the United Auto Workers’ strike and the union that represents television and radio actors are just a few of the factors that could influence consumption.

The convergence may give investors some respite from the run of hot economic data, which has been weighing on both stocks and bonds as it bolsters the prospects of further monetary policy tightening. If that proves not to be the case, it could indicate that the economy and consumers have even more momentum than appreciated and is an unsettling scenario given that the highest costs for borrowing since mid-2000 have broken one market.

The former Tanglin Halt Neighbourhood Centre will become the new site for the development. This centre houses the Tanglin Halt Market, and the Commonwealth Drive Food Centre.

Tan Kiat How said that, on Thursday, the redevelopment would provide housing for future generations. It will also allow young families to be near their parents.

In 2014, the estate of 3,480 houses was designated for the Selective En bloc Redevelopment Scheme. The majority of former residents have moved into new homes in Dawson. The old buildings are also being demolished.

Housing Board plans to redevelop Tanglin Halt in Queenstown, one of Singapore’s oldest estates, will result in the construction of up to 5,500 flats.

Housing Board revealed on Thursday that the estate will have an integrated development where HDB apartments will be linked to shops, a market and a local hawker centre. The Queenstown Polyclinic at Stirling Road, which is currently located in Stirling Road, will be moved to the new complex.

The integrated development construction will be divided into two phases. Starting with the former Commonwealth Drive Food Centre, the first phase of construction is scheduled for the second half in 2024.

As soon as the first phase is complete, stallholders will be able to move from the adjacent Tanglin Halt Market and begin construction on the vacant market. HDB explained that the move was made to minimize disruptions to the market stallholders.

The Straits Times was told by HDB that the rest Tanglin Halt will be redeveloped within the next 10-15 years.

Mr Tan said that the authorities will implement redevelopment projects with care and respect the history and heritage of the estate.

HDB says the integrated development design will incorporate elements such as the hexagonal shape of Tanglin’s Halt Market and the barrel vault form of the food centre. It will also feature courtyard spaces similar to the former neighbourhood center.

Tanglin Cascadia – the first Build to Order project in the estate – was launched during the October sales event under the Prime Location Public Housing Model (PLH). The 973 unit project had an application rate for first-timers of less than 1, meaning that all first time home buyers will get the chance to pick a property.

HDB has said that, for example, the Commonwealth Drive blocks 69 & 70, built by Singapore Improvement Trust (now defunct), could be converted into community spaces, as part of a new park.

Queenstown’s facelift will begin in 2025 with the introduction of new parks and exercise trails. Cycling paths and therapeutic garden are also planned.

There will be landscaping and recreational amenities along the Rail Corridor, which runs alongside the Tanglin Halt. In addition, there will be a park that will serve as a space for community and a pitstop for the residents.

HDB says the plans for Tanglin Halt compliment broader revitalization plans for Queenstown.

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HDB has announced plans to rejuvenate the fourth group of towns in the Remaking Our Heartland program – Ang Mo Kio, Bukit Meah, Choa Chu Kang, and Queenstown.

Around 79,000 residents of Queenstown and Farrer Road will benefit from these improvements.

Commonwealth Drive, which will become a pedestrian-friendly area with bicycle and pedestrian footpaths, will be converted into a pedestrian zone.

Mr Tan responded that authorities are considering the possibility of renting out flats in Tanglin Halt. He also said that they are aiming for a neighbourhood with a mix of social groups.

In September, including ECs 335 units have been sold and 68 units launched. In August, 649 units had been sold and 950 launched.

The rising geopolitical tensions around the world and the possible effects of the conflict in the Middle East may also dampen the mood in the market for real estate.

One new project was launched in September the leasehold of 999 years The Shorefront at Jalan Loyang Besar in the Outside Central Region (OCR) and had three units sold with a median value of S$1,902 psf.

The number of private home sales decreased in September because of the lack of new projects launched during the ill-lucky Hungry Ghost Festival.

It’s not too surprising that home sales fell following the Hungry Ghost Festival, which ended in mid-September.

The sales of property in the OCR fell by 64 percent month over month, to 70 units. In the Rest of Central Region, it dropped 33 percent from month to month.

Due to the vast array of products available on the market, consumers are becoming more selective when it comes to their choices.

In addition buyers’ mood remained “cloudy and somewhat cool”, thanks partly to the cool measures that were rolled out in April.

In the days leading up to the festival, old beliefs lead some people to avoid home purchases. Developers also tend to avoid launching new ventures during this period.

The latest sales report for September that excludes executive condominiums (ECs) are just a quarter of 987 units sold in the same month of 2022. This is the lowest monthly sales figure in the entire year and the lowest since December 2022, in which developers sold 170 units the previous month.

The number of homes sold in 2023 are expected to be 5,407 homes, which is 15,6% less than the 6,409 homes that were sold during the same time period the previous year. The figure for the nine months is the lowest since 2016, when 5,656 units were sold.

The increased Additional Buyer Stamp Duty (ABSD) as well as the widespread inflation and economic uncertainty, and the growing variety of housing options that are public like Build-to-Order, for instance, are all factors that buyers are weighing against.

The major projects on the horizon will mostly be concentrated within the OCR. The 265-unit Lentoria and the 474-unit Hillock Green are both part of the new Lentor Hills Estate. In Jurong, the J’den Condo, which is located in the former JCube Mall, will feature 368 units. The 440-unit Sora condominium, located at Yuan Ching Road, will also be constructed. The 341-unit Hillhaven at Hillview Rise.

Market watchers are predicting that the number of private home sales without ECs and ECs, will be between 6,000 and 7,000 this year – a tad less than the 7,099 homes sold last year.

The freehold Pullman Residences Newton came in the second-highest, having 21 units sold for a median price of S$3,258 psf. Core Central Region (CCR), out of the three segments was “relatively” better than other segments. The 76 units that CCR sold comprised 35 percent of private and condominium sales during September.

Looking ahead, analysts expect developers’ sales to be subdued, and buyers’ sentiment to remain tense amid increasing macroeconomic uncertainty as well as rising interest rates.

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The sole bright spot was the EC market with an increase of 118 units in the this month. The demand for ECs has been strong, since buyers with a tight budget are looking for the next best alternative to a private home. EC buyers are also eligible to get ABSD upfront remission.

According to the data published on Monday (16th October) by the Urban Redevelopment Authority, developers sold 217 homes for sale in September. This is a drop of 44.9 percent compared to the 394 units that were removed in August.

Altura Bukit Batok was the only EC project to be that was launched in the year 2000. Altura’s total sales topped 88 percent. Altura was also ranked as the top-selling project in September, with units selling at a median of S$1,473 psf.

Developers could decide to hold off launches until 2024, when rates will stabilize and sentiment increases, due to weaker sentiment and still high interest rates and because of the Christmas holiday season.

Altura also set the benchmark price for the EC market in the last month, with the sale of a unit measuring 980 square feet for S$1.6m or S$1,585 psf. This is higher than the previous psf price record set by Copen Grand, which stood at S$1,499 psf.

Developers will need to be cautious about pricing these forthcoming launch dates to ensure the volume of sales. However, there will not significant price reductions since developers had committed to earlier capital expenditures.

Noel Building is a freehold property located at 50 Playfair Road, in the Tai Seng district, and it’s up for sale collectively with a price guide of $70 million. The eight-storey structure occupies 26,791 square feet of land zoned “Business 1 – White” with a plot-ratio of 3.5. The Circle Line MRT Station Tai Seng is located 400m from the building.

Swee Shou Fern is the head of Edmund Tie’s investment advisory, and she’s marketing this property. She believes that the property located at 50 Playfair Road presents a unique opportunity to owner-occupiers who are looking to custom-build and develop their corporate headquarters. One option is to convert the property into strata-factories for light industrial use.

Edmund Tie says that the site can be redeveloped with a maximum floor area of 93.770 sq ft. This can include a business 1 use or if you prefer, light industrial. The remaining 26.791 sq. ft. can be used for “White”. This zoning allows for the use of shops, restaurants, showrooms offices, associations, and recreational clubs.

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Noel Building’s guide price is based on a land rate between $776 and $986 per square foot (psf) per plot ratio.

Swee notes that strata factories near MRT stations and with amenities are still highly desired. She says that the AZ@Paya Lebar, a strata factory completed in 2014 near the AZ@Paya Lebar, has seen prices increase by 6%, from $1,389/sq ft on average in 2H2022, to $1,472/sq ft for 1H2023.

Swee says that in the private sector, the last notable deal for a “Business 1 – White” zoned site was the sale of Citimac. This is now Grantral Mall at MacPherson. In 2017, the site was sold as a whole for $430.1 millions ($1.047 per square foot ppr). Edmund Tie mediated the deal.