Tag Archives: CB Richard Ellis

Executive condos return to the spotlight

Posted on 26 May 2011 | Comments Off on Executive condos return to the spotlight

Executive condos (EC), a hybrid of private and public housing, are now returning to the spotlight.

On 26 May, the government launched the 11th EC site since 2010, a plot in Punggol that can house around 720 homes.

Meanwhile, Chip Eng Seng and NTUC Choice Homes recorded rapid first-day sales for their Belysa project in the Pasir Ris / Elias Road area. Of the 315 units, 147, comprising three- and four-bedroom units, have been sold at around S$670 psf each.

“There is a big market for EC units priced between S$600,000 and S$700,000,” said Joseph Tan, CB Richard Ellis (CBRE) Executive Director (Residential), adding that the price gap between 99-year leasehold suburban private condos and EC projects has widened once again.

Mr. Tan noted that the typical price gap was around 25 to 30 percent when ECs were launched in 1996. This gap narrowed over the years due to weak suburban condo prices, which resulted in dwindling demand for ECs.

However, the sharp recovery of 99-year mass market condo prices has reinforced the demand for ECs.

“Today, 99-year mass market condos which are not near an MRT station could be priced around S$900 to S$950 psf on average, while an EC project in a similar location would be around S$650 to S$700 psf,” Mr. Tan said.

Most analysts expect the monthly household income ceiling for ECs to be increased from S$10,000 to S$12,000 or above, assuming the government proceeds to raise the ceiling for those purchasing new Build-To-Order (BTO) flats from the HDB from S$8,000 to S$10,000, pending a review.

“That will create more realistically-priced alternatives for the sandwich class and siphon off some demand from 99-year mass-market private condos,” said Mr Tan.

Many real estate analysts anticipate top bids for the recent EC site at Punggol Way / Punggol Field to be within the S$300 psf to S$350 psf ppr range and the average selling price to be approximately S$700 psf to S$750 psf.

Ong Teck Hui, Credo Real Estate Executive Director, noted that some EC developers may be more careful about bidding for the site if they are concerned that the income ceiling for EC buyers will be unchanged while that for HDB BTO flats will increase. Consequently, more people will qualify for HDB flats and this will lower demand for ECs.

Source : PropertyGuru – 26 May 2011

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Posted in HDB, Property Market / Real Estate

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Singapore Good Class Bungalow sales picking up

Posted on 6 May 2011 | Comments Off on Singapore Good Class Bungalow sales picking up

Despite a slow first quarter, sales of Good Class Bungalows (GCBs) in Singapore are on the rise again.

URA Realis and Real Star Premier Properties both had significant sale increases in April, according to the Business Times.

Caveats of URA Realis reveal two sales totalling S$65 million (US$52.6 million). Meanwhile RealStar managing director William Wong reported two freehold sales of S$99 million (US$80.2 million).

The URA Realis property transactions were an Astrid Hill property of 22,012 sq ft that sold for S$35 million (US$28.3 million), and a Belmont Road property on 32,626 sq ft of land that sold for S$30 million (US$24.3 million).

RealStar had a sale in Ewart Park for S$38.6 million (US$31.3 million), or S$1150 (US$931) per sq ft of land area.  Its other sale was in the Yarwood area and neared S$60 million (US$48.6 million), or S$860 (US$696) per sq ft.

According to a recent analysis by CB Richard Ellis of URA Realis caveats data, in the first quarter of this year, some 16 GCB properties totalling about $338 million (US$273.6 million) changed hands – down from 30 deals amounting to S$623 million (US$504 million) in Q4 last year, and 31 transactions worth S$516 million (US$418 million) in Q1 2010.

Still, the average per square foot price on land area in Q1 2011 showed no sign of weakening. It has instead crept up 3.4 per cent from S$1,218 (US$986) psf in Q4 last year to S$1,260 (US$1020) psf in Q1.

RealStar’s Mr Wong predicts price upside of about 10 per cent for the whole of this year.

In addition to the S$99 million (US$80.1 million) of GCB deals his firm brokered in April, RealStar also handled the sale of about S$110 million (US$89 million) of other landed homes (mostly bungalows in districts 10, 11 and 21, as well as the eastern districts 15 and 16), taking the total value of landed homes brokered by the firm last month past the S$200 million (US$161.9 million) mark. This is double the tally for April last year, of just above S$100 million (US$80.9 million).

Meanwhile, DTZ is launching for sale by tender 20 Victoria Park Road. The ‘target price’ for the 999-year leasehold property is S$60 million (US$48.6 million), which reflects S$1,870 (US$1,513) psf on the land area of 32,077 sq ft. On the site are two bungalows and an outhouse.

The owner, believed to be a seasoned investor in the Singapore bungalow market, is said to have bought the property in 2007 for S$29.5 million (US$23.9 million) and attempted to sell it in 2009 for about S$38.7 million (US$31.3 million), but that deal was aborted.
20 Victoria Park Road is on an elevated site above road access level and has unobstructed views of the surrounding location.

One of the two bungalows on the site is a ‘modern design’ property with two storeys and an attic, while the other is a two-storey ‘black and white styled’ bungalow which is about 30 years old, says DTZ. The property has a swimming pool. The tender for 20 Victoria Park Road closes on May 27.

Source : PropertyReport – 6 May 2011

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Posted in Luxury Property, Property Market / Real Estate

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