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Showing posts from November, 2012

City Life’s giant penthouse four times as big as a 5BR HDB causes storm of controversy

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Seriously, tax payers are paying for this over $2M luxurious property? CityLife at Tampines, which bills itself as Singapore’s first luxury hotel-style executive condominium developed by Tampines EC – a consortium comprising Amara Holdings, Kay Lim Holdings and SingXpress Land is offering a Penthouse Suite with a sprawling size of over 4,000 sft. Market observers note that assuming the penthouse costs $500 price per square foot, similar with the other units, the total cost of the unit is estimated to be above $2M well above the typical $1M price for executive condo. Tampines EC bills that the giant penthouse at City Life is likely to be the largest of its kind for ECs in Singapore. Some industry observers said that the developer defeats the purpose of executive condo which targeted young couple with combined $12,000 monthly income. Some of the comments generated include: “I think income ceiling for this kind of EC should be raised as how can a young couple w

Bishan residential site attracts 9 bids

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SINGAPORE : A residential site at Bishan Street 14 has attracted nine bids. The top bid of S$505.1 million came from Allamanda Residential Development, a wholly-owned subsidiary of property developer CapitaLand. That is about 3.1 per cent higher than the second bid jointly placed by Singland Homes, UOL Venture Investments, and ORIX Investment and Management. Analysts had expected CapitaLand to submit a strong bid for the site, which is located adjacent to a plot where its Sky Habitat project is being built. Donald Han, special advisor at HSR, said: "They would not want a competitor to get the site and undercut its pricing. It is about CapitaLand protecting its turf and protecting the pricing in the area. "With this site, they will also be able to amalgamate different concepts with Sky Habitat." The top bid for the 99-year leasehold site works out to S$853 per square foot per plot ratio. Analysts said this is almost 2 per cent lower than wh

2013 year of digestion for offices: CIMB

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6 reasons why 2013 could be “not so bad”. The Street is still largely negative on the office sector in 2013. Consensus is of the view that a slew of primary and secondary office supply could intensify the pressure on rents. But while CIMB do not see office rents improving in 2013, It retains its view that a bottoming could be in sight. Here’s why: 1) Slower pace of headline declines. Indicators in 3Q12 had started to improve. Consultant estimates show that vacancy growth rates have decelerated with rental declines also moderating. 2) Backfilling gathering momentum. Agreed, a large part of the headline improvements is due to pre-commitments for newer premises which have resulted in the double counting of office space to be vacated. We estimate that the true vacancy rate island-wide is closer to 8% (vs. 6.5-7.5% estimated by consultants) if secondary office space due to be vacated is included, and about 10% in the core CBD. However, landlords have generally been proac

Here’s how costly office rentals are in Singapore compared with Asian peers

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Rental values are almost equal to ShangHai’s. According to Jones Lang LaSalle, Average net effective rents in Raffles Place fell marginally by 1.2% q-o-q to US$700 or SGD 930 per sqm per annum in 3Q12, similar to the rate in the previous quarter. Again, there was more downward pressure on rents in buildings with higher vacancies. “While strata-title office sales remained healthy, en bloc activity was rather quiet in 3Q12. The only known major transaction was 78 Shenton Way, located in Tanjong Pagar district, which involved the sale of a 50% stake for SGD 608 million or SGD 18,148 per sqm on an NLA basis. Strata-title capital values continued to provide some support for en-bloc capital values even as a gap remains between the expectations of buyers and sellers. En-bloc capital values thus remained stable for another quarter in 3Q12 and, as a result, yields continued to compress. In Raffles Place, market yields compressed marginally by four bps to 3.6%, on the back of softening

CapitaLand outbids UOL, SingLand for Bishan St 14 site

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The $505.1m bid beat 9 other bidders. According to Nomura, post market close on 29 Nov 2012, the land tender for a 99-yr LH site (GFA 592,189sqft, c.645 units) along Bishan St 14 closed with a total of 9 bidders, whose bids had ranged from S$368-505mn. Here's more from Nomura: CapitaLand’s bid of $505.1mn or S$852.9psfppr was the highest, 3.1% higher than the second highest bid of S$490.1mn submitted by a JV which had consisted of UOL, Sing Land and Orix Investment. The above-mentioned site is adjacent to CAPL’s project Sky Habitat  (99-yr LH, 509 units, 28% sold) and of which the developer had bought earlier in 2011 for S$550.1mn / S$869.4psfppr. When the site was first launched, consultants had predicted 10-15 bidders to participate and a top bid of S$750-850psfppr. CAPL’s bid thus appears to be towards the upper end of the range. On the whole, we consider CAPL’s bid to be fair, taking into account two existing market conditions. Based on the land cost

Victoria St/Ophir Rd hotel site's sales conditions released

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SINGAPORE: The Urban Redevelopment Authority (URA) released detailed sales conditions for a hotel site at Victoria Street/Ophir Road on Friday. With a land area of 0.8 ha, the site is expected to accommodate a hotel development yielding about 32,019 square metres of gross floor area. According to the URA, the land parcel at Victoria Street/Ophir Road is made available for sale under the Reserve List of the Government Land Sales Programme for the second half of 2012. This means that the government will release the site for sale if the criteria for triggering the site is met and if it receives sufficient market interest for the site. When the land parcel is put up for tender, a tender period of about eight to 12 weeks will be allowed before tender closes. The site is located near the Ophir-Rochor corridor, which is set to be a mix-use cluster with office, hotel, retail, entertainment and residential uses. The land parcel is also near the historic districts Kampo

Be a proud owner of this magnificent modern bungalow off Holland Rod

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Good Class Bungalow for sale. It’s up for sale for only $30M. Location : Off Holland Road Land Area: Approx 16,000sqft Built-up Area: Approx 10,000sqft Bedrooms: 4 bedrooms + Huge Entertainment/Family Room Guide Price: $3X M (in excess of S$30M ) Tenure: Freehold. Completed in 2009. Brief description/ key features Tucked in a quiet exclusive enclave off Holland Road, this modern Good Class Bungalow thrills you with pleasant surprises from the entrance to each level of the exquisite interior architecture. Swim your laps in your own private pool ; soak and rejuvenate with your family in your outdoor Jacuzzi or perhaps immerse in your reading pleasures from your spacious study with a expansive view of your pool and garden - the exclusive lifestyles that befit your achievements and status as a proud Good Class Bungalow owner in Singapore.      Martin Koh | 86666 944 | R020968Z Sherry Tang | 9844 4400 | R020241C Senior Sales Direct

CapitaLand arm inks 75:25 deal with Mitsubishi Estate Asia

Allamanda Realty boosts share capital. Accoridng to a release, CapitaLand Limited announced the establishment of a 75:25 joint venture, Allamanda Realty Pte. Ltd. between CapitaLand and Mitsubishi Estate Asia Pte. Ltd. to explore potential business opportunities. CapitaLand’s 75% interest (75 ordinary shares) in Allamanda Realty is held through its wholly-owned subsidiary, CRL Realty Pte Ltd (“CRL Realty”). MEA is unrelated to CapitaLand. The establishment of the joint venture was made by Allamanda Realty increasing its issued and paid up share capital from S$1 (comprising one ordinary share) to S$100 (comprising 100 ordinary shares) (the “Share Increase”) by allotting an additional 99 ordinary shares as follows: (a) 74 ordinary shares for a cash consideration of S$74 to its existing shareholder, CRL Realty; and (b) 25 ordinary shares for a cash consideration of S$25 to MEA. Allamanda Realty continues to be a subsidiary of CapitaLand. The establishment of the

Tough call on H1 2013 residential land supply

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The Business Times Friday, Nov 30, 2012 SINGAPORE - It will be a tough call for Ministry of National Development (MND) to determine the supply of land for private housing development for H1 2013, as it balances the risks of looming oversupply amid an economic slowdown with record home sales by developers and their voracious appetite for land. One school of thought reckons that clipping land supply could be the medicine to cure property binging, as current strong home sales are supply-led, ie, by developers' launches - at a time of negative real interest rates, strong liquidity and as investors seek a safe anti-inflation hedge in property. "The quandary the authorities will face is that in the short run, demand chases supply. However, in the long run, the laws of supply and demand do influence prices, especially when the supply becomes physically completed," said Savills Singapore research head Alan Cheong. Some have thus argued a bearish case from 20

Rents for Grade A offices slip 3%

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Find out what property firms predict. According to OCBC, Singapore Grade A office rents have continued to fall this quarter. The average monthly rental value for Grade A  office space has fallen by 2-3% compared to Q3, estimates from CBRE, Jones Lang LaSalle and Colliers International show. All three firms predict Grade A rents will remain flat next year.  Martin Koh | 86666 944 | R020968Z Sherry Tang | 9844 4400 | R020241C Senior Sales Director Email: marshe_inc@yahoo.com.sg DTZ Debenham Tie Leung (SEA) Pte Ltd (L3006301G) | www.marshe.sg | www.marsheproperties.com.sg | www.hudcsg.blogspot.com | | www.hausatserangoon.sg | www.8riversuites.com | www.newagents.sg |

Singaporean, other AsiaPac REITs facing dampened tenant demand: S&P

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Rental growth will pick up only by late-2013. Asia-Pacific real estate investment trusts (REITs) will be wrestling with dampening tenant demand due to subdued business and consumer confidence arising from the expected slowdown in the region's economies in the next few months, according to a new Standard & Poor's Ratings Services report card titled, "For Asia-Pacific REITs, Weak Regional Economy Will Keep A Lid On Rental Growth". "Nevertheless, we forecast that a pick-up in regional growth in the later part of 2013 will gradually boost demand from tenants," said S&P. "We expect the major real estate markets of Australia, Hong Kong, Japan, Singapore, and Taiwan to generally see economic pressures suppressing rental growth in the short term," Standard & Poor's credit analyst Craig Parker said. "Nevertheless, we expect rated Asia-Pacific REITs to maintain their credit quality due to the sound foundations they have b

New study ranks Singapore 3rd top investment for real estate

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You won't believe the country which topped the list. Real estate investor sentiment in the Asia Pacific property sector remains relatively positive, despite continuing global economic uncertainty, according to Emerging Trends in Real Estate® Asia Pacific 2013, a real estate forecast jointly published by the Urban Land Institute (ULI) and PricewaterhouseCoopers (PwC). However, while steady economic growth, rising incomes, and stable or increasing property values are contributing to an overall sense of optimism, the outlook is tempered by concerns among investors that prime assets in key real estate markets in the Asia Pacific region are becoming overpriced. As a result, the report finds that markets outside core cities are increasingly attractive for investment and development. This is reflected in Jakarta, Indonesia, being named the top choice for both investment and development prospects for 2013. “With high rents, high capital values, low yields, and an abundance

CapitaMall's JCube officially opens on Saturday

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On top of the opening is some charity works. JCube, the latest mall in Singapore’s West, will be officially opened by Dr Amy Khor, Minister of State, Ministry of Health and Ministry of Manpower, and Mayor of South West District, this Saturday (December1). In conjunction with its official opening, JCube has raised donations for Students Care Service, which provides support for underprivileged children. JCube is home to Singapore’s first Olympic-size ice rink and the first IMAX theatre in the suburbs. Martin Koh | 86666 944 | R020968Z Sherry Tang | 9844 4400 | R020241C Senior Sales Director Email: marshe_inc@yahoo.com.sg DTZ Debenham Tie Leung (SEA) Pte Ltd (L3006301G) | www.marshe.sg | www.marsheproperties.com.sg | www.hudcsg.blogspot.com | | www.hausatserangoon.sg | www.8riversuites.com | www.newagents.sg |

Real estate industry changes have only just started: Khaw

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SINGAPORE - National Development Minister Khaw Boon Wan has said in a blog post that the transformation of the real estate industry has only just begun. He said what used to be regarded as a "cowboy" industry is now characterised by a more systematic and professional process of proper registration and licensing of property agents by the Council of Estate Agencies (CEA), adding that of the more than 100,000 property transactions each year, complaints made up 1 per cent of the cases. He also said the findings showed that the regulatory body, that just turned two recently, has not fared too badly, and that the real estate industry is a dynamic one and that agents will need to embrace continuous learning to stay relevant and bring value to their clients. Mr Khaw was commenting on the Public Perception Survey released by the CEA. CHANNEL NEWSASIA Martin Koh | 86666 944 | R020968Z Sherry Tang | 9844 4400 | R020241C Senior Sales Director Email: marshe_inc@y

80% of customers satisfied with their property agents: survey

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SINGAPORE - The first Public Perception Survey by the Council for Estate Agencies (CEA) has found that most consumers are satisfied with their property agents. Eight out of 10 said they were satisfied with the conduct and services provided, and seven out of 10 planned to recommend their agents to others. The survey showed that most consumers felt that their agents performed well in terms of service excellence with agents being contactable, responsive to queries and courteous at all times, but most also said that the agents could show more knowledge and expertise about the real estate industry. Consumers felt that the agents should improve their knowledge so that they can advise customers on property transactions, which include financial matters and accurate and up-to-date information related to the property. Most consumers, more than 70 per cent, said they were aware of key industry practices and regulations, however the awareness level among potential consumers cam

Property tax for HDB flats to increase from Jan

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AsiaOne Tuesday, Nov 27, 2012 SINGAPORE - Owner-occupiers of three-room HDB flats or bigger are set to face an increase of $40 to $50 in property tax in 2013. Lower and middle income owner-occupiers of such flats will be given a one-off rebate of $40 to mitigate the increase in property tax. This will be automatically offset against the property tax payable in 2013. The increase in property tax comes after the January 2013 revision of Annual Values (AVs) of HDB flats to reflecting the rise in market rentals. This rebate will not apply to flats which are not owner-occupied. These are currently taxed at 10 per cent. The AV, which is calculated by the Inland Revenue Authority of Singapore (IRAS) annually, is used as a basis to compute the property tax payable. It is based on the estimated annual market rent of a property if it were to be let out. For owner-occupied homes, property tax is calculated based on concessionary tax rates of zero per cent for the