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Report: Average home prices could rise by 17% over 2018-2021
The prospects for the Singapore property market are bright, with investment volumes to remain strong and home prices forecast to rise, revealed a 2018 Asia Pacific Property Outlook report released by Colliers International recently.
On the back of strong economic growth seen in 2017, property investment sales in the city-state are likely to remain robust this year.
There was a slew of transactions in 2017 which amounted to an estimated $40.2 billion, up 54 percent from the previous year. The majority (54 percent) were residential deals due to the strong demand for sites via public tender and the collective sale market. According to Colliers, this was the highest annual investment sale value since the 2007 property boom.
“This positive momentum should carry into 2018, with a strong start anticipated in the residential sector,” said Tricia Song, Singapore research head at Colliers International. “As at January 10, there are 11 residential collective sale tenders closing in the next five weeks, including City Towers in District 10, and four GLS (Government Land Sales) tenders due on January 30.”
The property consultancy also expects private home prices to recover further due to demand from displaced sellers of collective sale projects and the large capital gains.
“Average home prices may rise by 17 percent over 2018-2021, supported by higher GDP growth, falling physical completions and ongoing collective sale deals,” noted Colliers.
Hollandia up for collective sale
The 48-unit Hollandia residential development located at the junction of Holland Road and Queensway in District 10 was recently launched for collective sale, marketing agent Savills Singapore said.
The owners are expecting offers in the range of $163.15 million, which translates to a land rate of $1,515 psf per plot ratio.
Built in the mid-1980s, the freehold property sits on a 53,505 sq ft site. The plot is zoned for residential use with a gross plot ratio of 1.6.
Subject to approvals from the relevant authorities, the site may be redeveloped into a 12-storey project with an allowable gross floor area of 107,688 sq ft. No development charge is payable.
Hollandia is located close to Holland Village MRT station as well as eateries at Dempsey Hill and Holland Village.
“It has been a while since a freehold redevelopment plot has been put up for sale in the Holland area,” said Suzie Mok, senior director of investment sales at Savills Singapore.
“Hollandia will draw interest as it is attractively positioned near Holland V. The widely anticipated sale of the mixed-use Government Land Sale Parcel right smack in the heart of Holland V and its forthcoming rejuvenation and transformation will be a key catalyst and potential booster of real estate values in the vicinity,” she added.
The tender for Hollandia will close on 28 February.
S’pore start-up launches tiny homes
Local start-up Big Tiny has come up with an innovative idea of building small homes on wheels, which it plans to install in rural areas with breathtaking scenery.
At nearly the size of a shipping container, these homes can accommodate up to four persons and has a length of 4.8, 6.0 or 7.2 metres.
However, these houses are not yet available in Singapore. These will be initially installed in Australia, close to the Blue Mountains or Mornington Peninsula. Currently, the firm has two units down under, but plans to increase the number to 50 units by end-2018. It also intends to expand into New Zealand.
“Tiny house is part of an international movement where people are downsizing their houses to simplify their lives” and reduce resource consumption, said Adrian Chia, who founded the firm with his friends Jeff Yeo and Dave Ng.
These units will be listed on Airbnb by February, with rents ranging from $150 to $250, under a profit sharing scheme with land owners, particularly farmers.
Made from metal and recycled materials, each home is equipped with a bed, kitchenette and common space. It also comes with a heater and air-conditioning. Aside from having secure digital locks, each unit features a rainwater collection system and solar panels, while the waste that goes into the toilet is turned into compost energy.
Each unit, which costs around $80,000 to build, can generally withstand bad weather and can last up to 20 years.
New Futura condo sells 18 units at average price of $3,200 psf
New Futura, City Development Limited’s (CDL) luxury condominium project at Leonie Hill Road, received positive response from buyers, with 18 units sold at an average price of $3,200 psf during its first day of launch on 18 January.
CDL revealed that only 25 units were released during the private viewing, while the units sold comprised two, three and four-bedroom units.
It noted that a third of the buyers were Singaporeans, while two-thirds were Singapore permanent residents and foreigners.
Just a 10-minute walk to Orchard Road, the freehold development is nestled on an 87,000 sq ft site, featuring 124 residential units as well as 253 carpark lots, including 30 supercar lots.
CDL acquired the site in a collective sale for $287.3 million in 2006, which works out to a land rate of $1,179 psf.
“Given the scarcity of brand new developments in the area, we are confident that New Futura will continue to attract savvy buyers looking for luxury living in the heart of town with good investment potential,” said a CDL spokesperson.
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