Tag Archives: Singapore Property

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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Singapore industrial property sector forecast to outperform all others

Posted on 25 May 2011 | Comments Off on Singapore industrial property sector forecast to outperform all others

Singapore’s industrial property sector looks to outperform residential, retail, and office property over the next few years, after a dynamite 2010 and first quarter of 2011.

Donald Han, vice-chairman of property consultants at Cushman and Wakefield, said capital values for industrial properties rose as much as 22 per cent last year.

“I think probably we’re going to see another 15-per-cent price increase this year. As long as the economy continues to do well and our manufacturing numbers continue to expand, I think we’ll have another good 24 months of steady rental increase plus capital value enhancement as well,” said Han.

Demand is also coming from investors and speculators moving into the industrial space from the residential market due to the Government’s measures to cool the market for the latter, Han added.

Another attraction is the affordability of industrial properties compared to residential ones. Han said: “You can buy very affordable units for about 1,000 to 1,500 square feet at prices of about S$300 to S$350 per square foot (US$240-280), which translates to less than S$0.5 million (US$400,000). If you look at the residential projects, for S$0.5 million you really can’t buy much, not even shoebox units.”

The Urban Redevelopment Authority yesterday launched the tender for an industrial site at Tuas View Square, Today newspaper reported. Available for sale through the Reserve List system since November, the tender was triggered when a developer committed to bid no less than S$4.9 million (US$3.9 million) for the land parcel on a 45-year lease.

The 0.4 hectare site has a gross plot ratio of 0.9 and is zoned for Business 2 development, meaning it can be developed for various facilities such as light industry, general industry, warehousing, utility or telecommunication uses. The tender closes on June 29.

Meanwhile, JTC Corp has awarded the tender for a business park site at Biopolis to Ascendas Venture, a wholly-owned subsidiary of Ascendas Land Singapore. The company submitted the highest bid of S$87.2 million (US$69.8 million) for the site, part of the fifth phase of Biopolis, which is expected to be completed in 2013.

Source : PRSEA – 25 May 2011

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