Tag Archives: URA

Upper Thomson site draws 18 bids

Posted on 11 Oct 2014 | Comments Off on Upper Thomson site draws 18 bids

The tender for a residential site at Lorong Puntong near Upper Thomson Road closed yesterday after attracting a stunning 18 bids, according to the Urban Redevelopment Authority (URA).

lorptng-aerialview.ashx_-300x145

Launched for sale in August, the 10,502.8 sqm site has a maximum permissible gross floor area (GFA) of 22,056 sqm.

The highest bid was submitted by China-based Nanshan Group, with an offer of $173.6 million. That translates to around $7,870 psm on the GFA.

This was followed by a $161.9 million bid from SL Capital Ventures. The lowest bid was from Tee Vista at $108 million.

Property analysts had expected strong demand for the 99-year leasehold site due to its small size which commands a smaller quantum of below $200 million.

“Generally, the bidders were probably also encouraged by the good attributes of the site. The site is located in a mature estate, supported by a comprehensive network of amenities and renowned schools,” said Desmond Sim, Research Head for CBRE Singapore.

He added: “The future Thomson Line will certainly be a selling point because the site is situated in-between two future MRT stations.”

With previous projects in the area selling well, this would have further boosted developers’ confidence in the plot, noted Sim.

“The bidders have also benefited from studying the market for a longer period post-TDSR and now have a better sense of price levels.”

Photo by URA

Comments Off on Upper Thomson site draws 18 bids

Posted in Government, Land Sales

Tagged , , , , , , , , ,

Potential sellers unlikely to lower price expectations

Posted on 3 Oct 2014 | Comments Off on Potential sellers unlikely to lower price expectations

Prices of private homes in Singapore continue to cool but at a slower pace as shown by Urban Redevelopment Authority (URA)’s flash estimate for Q3 2014.

According to Colliers International’s Director of Research and Advisory Chia Siew Chuin, many sellers are not in any urgent need to dispose their properties as many have already gained from earlier property trades. Some may even be still sitting on paper profits if they made their investments in the earlier up-cycle.

“Many owners of private residential properties today have benefitted from the robust capital appreciation since 2005. Except for the short blip during the global financial crisis, which did not take long to recover, property owners/investors have generally enjoyed more than attractive profits in the last nine years or so,” she said.

As potential sellers expect there is still some time before interest rates increase, and due to their current financial muscle, they are unlikely to lower their price expectations. At the same time, these sellers are likely to time their exit in order to minimise or to avoid paying Seller’s Stamp Duties (SSD).

Additionally, developers have enjoyed the gains in the residential property price run-up from 2005. Chia said, “With the amount of profits made during the boom years, some of them have the financial power to maintain current prices or else offer moderate discounts. Potential buyers are well aware of the current downtrend in prices and they refrain from making purchases now, in expectation of even lower prices in the near term.”

These factors explain this price stalemate in the current market, she said, as reflected in URA’s latest flash estimates.

Comments Off on Potential sellers unlikely to lower price expectations

Posted in Property Market / Real Estate

Tagged , , , , ,