30th August to 5th September 2022
While the damage caused by a landslide that occurred near the construction site of a Clementi Build-to-Order (BTO) project is “fairly extensive”, Member of Parliament Sim Ann does not expect it to delay the collection of keys for the new flats. Meanwhile, the Housing and Development Board (HDB) has launched 4,993 BTO flats in the August 2022 BTO launch, including two projects in Bukit Merah under the Prime Location Public Housing (PLH) model.
1) Landslide damage unlikely to delay key collection at Clementi BTO project
While the damage caused by a landslide that occurred near the construction site of Clementi NorthArc is “fairly extensive”, Member of Parliament Sim Ann does not expect it to delay the collection of keys for the new flats, reported CNA.
“At the moment, HDB sees no reason to delay key collection beyond the dates that they have already communicated to the buyers,” said Sim, who also serves as Senior Minister of State for National Development. “But of course, we will be monitoring the situation very carefully.”
Originally, Clementi NorthArc’s completion date was supposed to be in Q3 2022, but buyers were informed in April that this would be pushed back. The latest update indicated that buyers could collect their keys in December at the earliest, noted Sim.
Meanwhile, National Development Minister Desmond Lee said the recovery, as well as the construction efforts to repair the damage caused by the landslide, “may take a few months”, reported CNA.
“In the meantime, safety remains our priority. We will continue to check the instrument readings deployed within and around the site, to closely monitor structural safety throughout the entire recovery process,” said the minister in a Facebook post.
2) HDB launches 4,993 BTO flats, including two Bukit Merah projects under PLH model
The two PLH projects in Bukit Merah – Havelock Hillside and Alexandra Vale – offer a total of 1,651 units.
Some analysts expect these two projects to receive good take-up rates given that previous PLH projects showed that many Singaporeans do not mind the longer Minimum Occupancy Period (MOP) and stringent selling criteria of such flats.
“Therefore, we expect these two projects to be similarly oversubscribed this time around,” said Christine Sun, Senior Vice President of Research and Analytics at OrangeTee & Tie.
“However, the subscription rate may not be as high as the first two launches as 5,544 units (including this BTO exercise) units have been released over the past year,” she added.
The Tampines August 2022 BTO launch is likely to be the most popular project for this round of launches.
3) URA launches Bukit Timah Link, Hillview Rise sites for sale
Two 99-year leasehold sites at Bukit Timah Link and Hillview Rise have been launched for sale by the Urban Redevelopment Authority (URA) under the Confirmed List of the 2H2022 Government Land Sales (GLS) Programme.
The land parcel at Bukit Timah Link spans 4,611.1 sq m and could yield about 160 housing units, while the Hillview Rise site measures 10,395.2 sq m and could generate about 335 units.
“As these two plots are smaller than the upcoming launches at Tampines Avenue 11 (5.07 ha and estimated 1,190 units) and Marina Garden Lane (1.23 ha and estimated 795 units), developers may be keener to acquire these two plots given the lower risks and costs involved,” said OrangeTee & Tie.
Huttons Asia expects up to 10 bidders for the Bukit Timah Link site, with the top bid of $1,200 to $1,300 per sq ft per plot ratio (psf ppr). The Hillview Rise plot, on the other hand, “may attract up to eight bidders and a top bid between $1,000 and $1,110 psf ppr”, it added.
The tender for both sites closes on 3 November.
4) SLA updates charging framework for remnant land
The Singapore Land Authority (SLA) has updated the charging framework for remnant land to better reflect the economic value that landowners can derive from combining remnant land with their adjoining private land.
Currently, the rate for remnant land parcels, which are small and/or irregularly-shaped plots of land that are incapable of independent development but can potentially enhance the adjoining sites, is based “on 50% of full land value, determined by applying the factor of 5/7 to the applicable Land Betterment Charge (LBC) rate”.
From 1 September, remnant land will be valued for sale based on 100% of the full land value for commercial, residential, and industrial uses or where the sale of such land would result in gross floor area transfer.
However, remnant land “will continue to be valued for sale based on 50% of the full land value” for places of worship as well as civic and community institution use.
Meanwhile, the rate for remnant lands with synergistic value will be based on the higher of 50% of the enhancement in land value of the combined site as assessed by the chief valuer; or 100% of the full land value as determined by applying the 10/7 factor to the applicable LBC rate.
5) GuocoLand opens Lentor Modern project for preview, with prices starting at $1,880 psf
Nestled on 1.7ha site, the 99-year leasehold development comprises three 25-storey residential towers atop a mall with a 12,000 sq ft supermarket, 96,000 sq ft of F&B and retail shops as well as a 10,000 sq ft childcare centre.
Lentor Modern offers 605 residential units, of which nearly 80% are two- or three-bedders. GuocoLand noted that the two- to four-bedroom units all come with an additional “flex room” to cater to buyers’ diverse needs.
Prices for one- and two-bedroom units start from around $1.1 million and $1.4 million, respectively, while three- and four-bedroom units go from $1.9 million and $2.9 million, respectively.
Set to be completed in 2026, the development will be the first private condominium launch within the Lentor neighbourhood in over two decades.
6) Rents for high-end non-landed private homes rise to their highest since Q1 2014
Singapore saw rents for high-end non-landed private residential projects increase 7.6% quarter-on-quarter to $4.79 per sq ft (psf) in the second quarter of 2022 – which is the highest since Q1 2014.
Savills attributed the hike in rents to a lack of significant completions islandwide, particularly within the prime districts, allowing landlords to dictate rents.
“Although the central scenario is for rents to continue barrelling up, global recessionary conditions could dampen the super bull cycle,” said Savills Singapore’s Executive Director of Research Alan Cheong.
Meanwhile, leasing volume for high-end non-landed homes also declined 8.7% to 19,545 transactions in Q2 2022, marking it the first quarter when rental volume dropped below 20,000 since Q2 2020.
The drop in transactions was evident across all three market segments, especially in Core Central Region (CCR), where transactions fell 13.3% quarter-on-quarter to 5,780.
“The moderated contraction in the city-fringe and suburban areas, as compared to that in the prime districts, may be due to more available stock to meet demand,” noted Savills.
7) Price gaps, limited supply fuelling demand for million-dollar flats
Property analyst OrangeTee expects sales of million-dollar HDB flats to reach a new high this year, as 231 resale flats have been transacted for over a million dollars during the first eight months of 2022, reported Singapore Business Review.
It is believed that demand for such flats is driven by the widening price gap with new suburban private condominiums.
Notably, the price gap between four-room million-dollar flats and new condominiums within the suburbs is 53.6%. As such, some buyers find it more affordable to acquire million-dollar flats since the median price for four-room million-dollar flats stands at $1.13 million compared to $1.72 million for new condominiums.
OrangeTee also points to the limited supply of large flats within mature estates as another reason for the high demand for such flats.
“Even as more BTO flats have been launched in mature estates under the Prime Location Public Housing model recently, all the units are three-room and four-room flats, possibly to keep prices affordable,” noted OrangeTee.
8) 77% of Singaporeans prefer to live in green buildings
A survey by Schneider Electric showed that more Singaporeans now prefer to live in green buildings at 77%, up from 47% last year, reported Singapore Business Review. This comes as most Singaporeans have become environmentally cautious at 90%.
Of those who want to live in green spaces, 46% are also willing to shell out more money to live in such buildings.
It noted that most Singaporeans observe climate efforts in their homes such as reducing electricity use (89%). They are even keen on installing simple and affordable solutions to monitor their daily energy consumption (98%).
Meanwhile, 78% of Singaporeans are supportive of increasing renewable energy sources within the state, even if it means higher electricity bills. When choosing an electricity plan and provider, 80% of Singaporeans also check if the provider uses renewable energy sources.
9) Nine strata retail units at Far East Plaza up for sale at $23.6mil
A portfolio of nine freehold strata retail units at Far East Plaza has been put up for sale via expression of interest (EOI) with a guide price of $23.6 million, revealed marketing agent Knight Frank Singapore.
The portfolio comprises five retail units on level two and four units on level three. Unit sizes range from 300 sq ft to 333 sq ft, with the combined area at 2,862 sq ft.
Knight Frank noted that the freehold units are available for sale on an individual or collective basis, with unit prices ranging between $2.1 million and $5.6 million, depending on the unit’s size and location within the development.
“The nine retail units face either the main concourse or atrium, allowing them to enjoy maximum visibility and high shopper traffic. They are currently tenanted by established concepts and will appeal to value-seeking buyers looking for shops with capital appreciation and recurring income,” said Mary Sai, Executive Director for Capital Markets at Knight Frank Singapore.
The EOI exercise for the nine retail units closes on 29 September.
10) Strata office floor at 15 Scotts Road on the market for $52.5mil
A strata office floor located at 15 Scotts Road has been launched for sale via expression of interest (EOI) with an indicative price of $52.5 million, revealed exclusive marketing agent CBRE.
It has a strata area of 13,734 sq ft, which represents about 12.7% of the development’s total strata area. This means the indicative price works out to about $3,822 per sq ft (psf) on the total strata area.
The property is currently fully occupied by a mix of tenants, allowing the incoming owner to enjoy immediate rental income.
“Freehold strata office floors housed in good quality office developments in Orchard Road are tightly held and rarely made available,” said Clemence Lee, Executive Director of Capital Markets, Singapore at CBRE.
“As such, these assets are highly sought after by a wide range of owner-occupiers and investors such as family offices, boutique real estate funds, local companies and high-net-worth individuals.”
The EOI exercise for the office floor closes on 6 October.
11) Six-storey shophouse in Boat Quay on sale for $45mil
52 Boat Quay, a 999-year leasehold six-storey shophouse within the Boat Quay conservation area, has been put up for sale via expression of interest (EOI) with a guide price of $45 million, revealed exclusive marketing agent Savills Singapore.
Occupying a 1,119 sq ft site, the shophouse has an estimated total built-up area of about 6,446 sq ft and is the tallest conservation shophouse along the Singapore River. It was fully refurbished in 2015, which included a lift installation.
The shophouse is fully leased, with the top two levels occupied by Michelin-starred Italian restaurant Braci. The first level, on the other hand, is occupied by an Izakaya bar, while the second to fourth levels are leased out as office space.
With freehold shophouses within the Boat Quay precinct tightly held, Yap Hui Yee, Director of Investment Sales and Capital Markets at Savills Singapore, expects the shophouse to receive “strong interest from investors, family offices and high-net-worth individuals seeking wealth preservation for years to come”.
The EOI exercise for the shophouse closes on 7 October.
Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email: firstname.lastname@example.org.