Real Estate and Property Market Update – Week 14

HDB Application Process under Review - 5th April 2008
Singapore’s National Development Minister, Mr Mah Bow Tan, announced yesterday that the Housing Development Board (HDB) is reviewing its application process. The main driver for this was that the volume of applications have little correlation with the actual flat take-up rate.

For example, at one of HDB's more recent launches for City View at Boon Keng it received 3,500 applications but only sold 250 of the 714 units! This in turn meant that some people in the queue may have lost out on getting their flat as they were lower down in the queue.

Mr Mah has requested the HDB to evaluate options to ensure buyers at the front of the queue actually book the flat.

Jurong Set For Largest Out of Town Hub - 5th April 2008
Under new plans announced by Mr Mah Bow Tan, Singapore’s National Development Minister, Jurong is set for a major new commercial hub.

The new Jurong Gateway will cover 70 hectares near to the Jurong East MRT station and will house 8 million square feet of office and retail (shops, restaurants and entertainment) space, as well as 1,000 new homes and 2,800 hotel rooms.

In addition, Jurong Lake will be transformed into a new major leisure area over the coming 10 to 15 years. The facelift will include new hotels, a brand new food and retail village as well as upgrading and moving the ‘Science Centre’ to the Chinese garden, adding additional facilities near the Chinese and Japanese gardens,

The lake will be made more accessible, and will see the addition of new boardwalks, fishing areas and wetland features and is expected to play host to dragon-boating and kayaking events.

The new Jurong Lake village will be connected to Jurong Gateway via a series of walkways.

Ten Mile Junction Attracts Just 2 Bids - 4th April 2008
The government owned Ten Mile Junction site received only 2 bids with the highest at $61million from Kheng Leong and the other at $45.68 million from Sim Lian Land. This equates to $162.40 per square foot for the highest bid against an expected $200-$250. Break even prices for the development would be approximately $400 per square foot, given higher construction costs.

A Jurong West plot was recently not awarded as the bids were too low. The same may happen here.