Tag Archives: Shenton Way

New homes on the rise in the CBD

Posted on 21 May 2012 | Comments Off on New homes on the rise in the CBD

Singapore’s central business district (CBD) is evolving from a traditionally corporate location, with more buyers looking for prime residential properties in the area.

According to Savills Singapore, more than 4,600 new homes will likely be completed in the district by end-2015. A number of these homes will be located in Shenton Way, Robinson Road and Tanjong Pagar. This is expected to boost the population of the CBD by 14 times since 2007, according to Alan Cheong, Research Head at Savills.

Meanwhile, various upcoming projects are seeing strong interest from buyers despite the high prices.

For instance, Far East Organization’s The Clift has sold 250 out of the 312 units available, with the smallest unit going for around S$2 million. The condo development along McCallum Street offers one- to two-bedroom units priced at S$2,579 psf on average.

At the same time, the 62-storey Altez condo in Tanjong Pagar has sold 213 of the 280 units on offer at an average price of S$2,206 psf.

Over at 70 Shenton Way, the upcoming mixed development Eon Shenton has sold 95 units of the total 132 at a median price of S$2,400 psf. The 99-year project is jointly developed by Fission Group, Macly Group, Roxy-Pacific Holdings, Pinnacle Assets and architect-turned-developer Chee Hsian Sing.

Other notable projects such as Robinson Suites, the mixed-use Oxley Tower and Skysuites @ Anson will complement earlier developments such as Marina Bay Residences, The Lumiere and Icon.

The new projects will draw in the crowds even after office hours, in line with the government’s plan to transform the CBD into a place to work, live and play.

“The city is finally a hip place to be seen and live and no longer just a place for a quick beer after work,” said Sulian Tan-Wijaya, Senior Director for Retail and Lifestyle at Savills Singapore.

Dr Chua Yang Liang, Research Head at Jones Lang LaSalle South-east Asia, noted that downtown living could be popular, specifically with younger professionals.

“In other mature cities like New York, downtown living is part of the city fabric. In fact, in some cities in the US, the silver population will move back into the city because of the amenities.”

Source : PropertyGury -21 May 2012

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S’pore’s office vacancy rates expected to rise

Posted on 10 May 2012 | Comments Off on S’pore’s office vacancy rates expected to rise

Singapore’s office vacancy rates are expected to rise further across all grades and micro markets, with a peak expected in 2013, according to property consultant CB Richard Ellis (CBRE).

In the first quarter of 2012, island-wide vacancy in Singapore increased to 7.3 per cent in the first quarter of the year.

In the core central business district, which covers Raffles Place, Marina Centre, Shenton Way and Marina Bay, the vacancy rate increased to 9.3 per cent from 8.8 per cent the previous quarter.

Grade A rents have declined, falling 3.6 per cent quarter-on-quarter to S$10.60 psf/month.

The quarterly net absorption rate, a key demand indicator, stands at a positive 587,000 square feet, boosted by the high 70 per cent pre-commitment level at the Marina Bay Financial Centre Tower 3 project in March.

Moray Armstrong, CBRE’s Executive Director of Office Services, said: “We are seeing strong leasing interest from the energy/commodities, professional and legal sectors. Whilst rents are expected to trend slightly downwards, we do not foresee a significant rental correction as compared to previous cycles.

“Our medium to long-term outlook is that Singapore is ideally placed to capitalise on the shift of economic power to Asia. The lower office cost base that will emerge from this cycle is likely to further improve Singapore’s competitive edge.”

In Asia Pacific, overall office occupancy declined in the first quarter of 2012. But this trend is likely to end in the second quarter, due to slowing occupier demand and oncoming supply all across the region.

8.3 million square feet of new office stock was completed across the Asia Pacific in the first quarter, 33 per cent above the 10 year quarterly average. Completions are expected to exceed 45 million square feet in 2012, a 30 per cent jump year-on-year. This is likely to result in a supply overhang which might push selected projects to 2013.

Dr Nick Axford, Executive Director and Head of CBRE Research (Asia Pacific), said: “A combination of weakening demand and limited availability of development finance is slowing the pace of construction activity.

“Nevertheless, considerable new supply will still hit the market in 2012, which means newer and better quality products for those occupiers looking to secure alternative space this year.”

Source -CNA: 9 May 2012

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Posted in Office / Retail / Industrial

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