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Farrer Drive site receives highest application bid

Posted on 22 May 2012 | Comments Off

The Farrer Drive residential development site on the reserve list of the GLS programme received an application bid of $823 psf per plot ratio, triggering the release of the site for public tender. This is the highest application bid in terms of price psf ppr in the history of the programme, notes Nicholas Mak, executive director of research and consultancy at SLP International. Despite its irregular land shape, the site is attractive because of its location in prime district 10, close to Holland Road and within walking distance of the Farrer Road MRT station.

The site can be developed into a 120- to 150- unit residential project. The developer that triggered the tender of the reserve list site submitted a high application bid “perhaps in the hope that it would discourage other developers from participating in the tender”, notes Mak. “The developer that will eventually win this tender is likely to pay a high land price and thus would be building mostly small apartment units to maximise the sale price on a psf basis.” He estimates the range of bids for this tender at $89 million to $94 million, or $825 to $870 psf ppr.

Source: TheEdge – 2012 May 22

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Posted in Government, Property Market / Real Estate

Tagged Farrer Drive site, Farrer Road MRT station, GLS Programme, Government Land Sales, Singapore Residential Property

Hot opportunities in an even hotter market

Posted on 21 May 2012 | Comments Off

While many analysts see Singapore’s property market as being too hot to handle, some have highlighted its potential, especially for long-term equity investors.

Over the last three years, the government has introduced measures to cool the market. The most recent of which is the ABSD (additional buyer’s stamp duty) on foreign buyers to curb investment demand.

Meanwhile, data from the Urban Redevelopment Authority (URA) showed that private home prices moderated by 0.1 percent in Q1. Sub-sale transactions, an indication of speculative activity, also dropped significantly.

In general, it appears that efforts to stabilise the property market are working, despite the on-going demand for housing. Low interest rates and high liquidity pushed sales to a near three-year high in April, which could result in more policy intervention.

Daniel Martin, an economist at Capital Economics Asia, noted that the government faces a crucial test in bringing down prices over the coming year.

“If prices don’t start to cool in the next year, then we’re going to be in a fairly dangerous situation where there’s risk of a sharp fall,” he said.

“My sense is they’ll go a little further and (require) more down payments on mortgages and standard capital requirements on banks — other macro-prudential measures that make it a little more difficult to buy a house.”

Kristy Fong, portfolio manager at Aberdeen Asset Management, said that while share prices have re-rated this year, the firm is “still happy, and positive on our stocks long-term, because property tends to be a reflection of the economy, and we’re generally quite optimistic about the Asian region”.

Source : PropertyGury -21 May 2012