Tag Archives: Thomson-East Coast Line

URA launches sale of River Valley site

Martin Place residential site resize

Location of the land parcel at Martin Place.

A prime residential site at Martin Place in River Valley has been launched for sale by public tender, according to the Urban Redevelopment Authority (URA).

Released under the confirmed list of the first half 2016 Government Land Sales (GLS) Programme, the approximately 171,535 sq ft site has a maximum gross floor area of 480,307 sq ft. It could potentially yield about 450 condo units.

The 99-year leasehold site is located close to the future Great World MRT station on the Thomson-East Coast Line. Nearby condominiums include Martin Place Residences, Rivergate and Martin 38.

Desmond Sim, Head of CBRE Research in SEA, said: “This is a site that is expected to draw much interest due to its prime location. The last time a site was made available in the vicinity was back in March 2011 at Robertson Quay ($938 psf ppr). In addition, the last site awarded in District 9 was the Mount Sophia site back in September 2013 ($1,157 psf ppr).

“This shows that sites in the prime area from the GLS Programme are far and few between. As such, CBRE Research will not be surprised if the site garners eight to 12 bids, which will come from established property developers as well as a handful of joint ventures. CBRE Research expects the top bid to be in the region of $1,000 psf ppr.”

The tender for the land parcel will close on 28 June 2016, said the URA.

Martin Place sale site

Aerial view of the sale site. (Photo: URA)

Advertisements

Marina Bay taking on residential tone

Experts say restrained prices mean deals there will pay off in the long term.

THE appeal of living near the Central Business District (CBD) will get a major test next weekend with the launch of the 1,042-unit Marina One Residences.

The area, best known as a fast-growing office centre, is shaping up as a significant residential precinct as well.

And while rents in the vicinity have fallen over the past year, investors may find the area a good buy now that cooling measures have restrained overly high prices, consultants say.

Marina One Residences – with one-, two-, three- and four-bedders – is part of the larger Marina One development, also including Marina One offices and The Heart, a retail podium set around a 65,000 sq ft park.

Developer M+S said it is looking to price Marina One at an average of $2,600 per sq ft (psf).

“We believe that there will always be discerning buyers who will seize a good investment opportunity as long as a development offers quality attributes – even through the peaks and troughs of the market,” said M+S chief operating officer Kemmy Tan.

Marina One Residences is one of the rare CBD residential developments with a freehold title, said OrangeTee senior research analyst Wong Xian Yang.

“Given current market conditions, its initial selling price may crowd out a considerable group of potential buyers… (But) in the longer term, Marina One will likely see more active deals due to its advantageous location and good designs, which are highly valued by busy owners and tenants.”

Nearby project V on Shenton, launched in August 2012, sold 354 of 510 units as at the end of July.

In the past year, average resale prices in the area ranged from $1,945 psf at three-year-old One Shenton to $2,694 psf at one-year-old Marina Bay Suites.

On average, resale prices fell by about 8 per cent in the past year, said R’ST Research director Ong Kah Seng. A major reason for the fall is weakening leasing demand by expatriates, he said. “(They) have more or less decentralised to the city fringes to save on accommodation costs, as most companies have been strict in their housing allowances.”

However, he said, investors, especially those owning small units in the area, can expect keen leasing interest from mid- to senior-level expats who may still want a conveniently located property.

With cooling measures such as the total debt servicing ratio (TDSR) framework, buyers may now find properties here at attractive prices, which could “allow them to have a share of future price appreciation or recovery”, Mr Ong added.

“Prior to the TDSR, however, most locality upsides and rejuvenation plans were quickly priced in by owners and developers.”

In the past year, average rents in the area ranged from $4.40 psf a month at Marina Bay Suites to $8.10 psf a month at three-year-old The Clift.

While rents have fallen by an average of 6 per cent over the past year, this is in line with weakening leasing conditions islandwide, especially rents of high-end residential properties, said Mr Ong.

But the investment outlook is promising beyond the short term, said Mr Wong.

Better infrastructure is expected in the next few years, such as the Thomson-East Coast Line which will be linked to Marina Bay MRT station.

“The precinct’s unique setting and high accessibility will appeal to people working in the CBD who have tight daily schedules. Barring any major deterioration in the global economy, the rental market should also see good support in tandem with the maturation of adjacent office properties,” said Mr Wong.