Market Updates (23 Aug 2011)

Market Updates (23 Aug 2011)

 

Some property sites pack them in, some leave more breathing space

Five projects on sites sold under the 2006-2010 state land sales programmes will yield at least 50 % more units than the state's estimates for these sites indicated in the respective Government Land Sale (GLS) Programmes, shows a study by Savills Singapore.At the other end of the spectrum, there are sites whose developers are building fewer units than the numbers indicated in the GLS Programme, including two projects from Hong Kong tycoon Li Ka-shing's Cheung Kong Holdings - The Vision in the West Coast area and Thomson Grand at Upper Thomson Road.

Two Far East Organization projects will also yield fewer units than the estimate in the GLS Programme - Mi Casa condo at Choa Chu Kang Drive and the recently released Boathouse Residences at Upper Serangoon View. The latter is a joint venture with Frasers Centrepoint and Sekisui House. Far East has stronger representation in the list of projects that will yield more units than estimated in the GLS Programme - with projects such as The Tennery in Bukit Panjang, The Greenwich in Seletar, Woodhaven in Woodlands and euHabitat at Jalan Eunos. All four projects have substantial proportion of total units between 500 sq ft and 800 sq ft, in some cases in what is dubbed SoHo-style one-bedders. In June and July this year, the property giant unveiled two condo projects, Woodhaven and euHabitat, which not only have SoHo-style apartments and normal condo units but also incorporated strata townhouses. 'These different housing options . . . cater to the varying needs of home buyers,' Mr Chia said. Market watchers note that foreigners (including Singapore permanent residents) may purchase strata landed homes within developments with condominium status without seeking approval from the Land Dealings (Approval) Unit. Said Mr Chia: 'Our townhouses at Woodhaven and euHabitat have seen demand from both Singapore permanent residents and foreigners.'

- The Business Times, P4

West Coast development put up for collective sale

Hong Leong Garden Shopping Centre, a 138-unit development at West Coast Way, has been put up for collective sale. Marketing agent Credo Real Estate said the development, located next to the Hundred Trees condominium, currently comprises 72 apartments and 66 shop units built in the 1980s by the Hong Leong Group.

The 956-year leasehold site has an area of 150,816 square feet. Under the 2008 Master Plan, the site is zoned 'Residential with Commercial at 1st Storey' with a gross plot ratio of 1.6, and an allowable height of up to 12 storeys. Credo said in its press statement yesterday that the Singapore Land Authority (SLA) has also granted in-principle approval for the amalgamation of the adjoining state land parcel of about 13,482 sq ft.This means that the sale site can potentially be enlarged to 164,298 sq ft with total gross floor area at about 262,877 sq ft. The sellers are expecting offers of between $160 million and $170 million, or about $752 to $794 psf per plot ratio, after factoring in the estimated land premium for the state land parcel and a development charge. Tan Hong Boon, Credo's deputy managing director, said: 'The appeal of the subject site lies in the flexibility of the commercial and residential mix in the new development. 'Depending on the creativity of the developer and subject to approval from the authorities, the site may be transformed into a condominium development with a trendy self-contained hub that offers an array of amenities and dining options to the residents in the development as well as to the resident catchment in the neighbouring housing estates.' The tender closes at 2.30pm on Sept 19.

- The Business Times, P30

- Also quoted in Straits Times, B23

More units cranked out as home sizes shrink

A study by Savills Singapore has put some hard numbers to the big lure of small apartments. Developers have been squeezing out more units on sites bought at state land tenders in recent years than was initially estimated.  Savills' study shows that the supply from projects on each of eight sites exceed the supply estimate in the GLS Programme by more than 40 %. Savills found that a substantial portion of units in these developments are below 800 sq ft, and in some cases, even under 500 sq ft.

DTZ South-east Asia chief operating officer Ong Choon Fah observed that over the past 15-20 years, the typical size of a three-bedroom apartment has shrunk from about 1,600 sq ft to 1,200 sq ft, with compact three bedders at 1,000-1,100 sq ft. 'This trend has been driven by the increase in land prices and pressure to keep lumpsum home prices affordable, as well as population increase, smaller family sizes, advent of small home appliances - even vacuum cleaners are smaller these days - and changes in lifestyle patterns with the Gen Y wanting their own place,' said Mrs Ong.

- The Business Times, P1

Luxury homes go off the boil across region

The heat is going out of the luxury home market here and across the region, hit by factors from tighter mortgage lending to higher interest rates. The slowdown is affecting markets to different degrees but the trend shows prices softening across the region, with even red-hot Hong Kong coming off the boil. Prices in Singapore declined 1.7 % in the three months to June from the quarter before, according to a report from property consultancy firm CB Richard Ellis (CBRE) yesterday. Rents of upscale homes also dipped 1.9% in the same period. Competition from new buildings in non-prime locations was one factor for the price slide, the firm said. It added that prices for posh homes are falling slowly, although other property segments are likely to remain stable.

-  The  Straits Times,  B24

-  Also quoted in The Business Times , P30, “ Price rise of Asian luxury homes easing ”