Property consultants Credo Real Estate has launched the tender of Culford Garden at Siglap with an asking price of between S$37 million and S$40 million.

At that price, each unit owner can expect to get between S$1.54 million to S$1.66 million from the en bloc deal.

The collective sale site has a land area of 44,000 sq ft and comprises 24-units which are mainly three-bedroom apartments.

The site is zoned for residential development up to a Gross Plot Ratio of 1.4 and an allowable height of five storeys.

The total Gross Floor Area or GFA allowed is about 68,000 square feet and it can be redeveloped into approximately 65 apartment units with an average size of 1,000 square feet.

Managing director of Credo Real Estate Karamjit Singh said the asking price for the en bloc sale translates to about S$545 to S$589 per square foot on potential GFA, including balconies.

He added that at this price range, a developer may expect to break-even at about S$950 to S$1,000 per square foot.

The tender for Culford Garden closes on April 8 at 2.30 pm.

Source: Channel News Asia, 17 Mar 2010

A RESIDENTIAL site facing Bedok Reservoir that failed to be sold 18 months ago after attracting only one bid of $84.6 million is now sought after by eight developers, with one offering $302 million.

The Tampines site was a victim of the financial meltdown when it closed for tender in August 2008, but the property market rebound has brought it back into favour.

Sim Lian Land lodged the highest bid for the 99-year leasehold plot, which would be suitable for mass market housing – the property industry’s hottest sector these days.

Sim Lian’s offer – $302 million or $420.90 per sq ft per plot ratio – topped seven others for the land at the junction of Tampines Avenue 1 and Avenue 10.

The huge rebound in price follows a similar tender last month when a site at the junction of Choa Chu Kang and Woodlands roads above Ten Mile Junction attracted a top bid of $164 million, yet in 2008 it drew a top bid of $61 million and was therefore not sold.

The Sim Lian offer was above the $300 to $400 pricing tipped by some experts but within the $410 to $470 psf ppr range forecast by Ngee Ann Polytechnic lecturer Nicholas Mak.

The second-highest bid from a venture between Far East Organization and Frasers Centrepoint came in just 4.3 per cent lower at $402.80 psf ppr.

Other bidders included MCL Land, Allgreen Properties and GuocoLand, according to the Urban Redevelopment Authority yesterday.

A unit of CapitaLand Residential was in seventh place with a bid of $179.4 million or $250 psf ppr, while Boon Keng Development was last with a bid of $234.20 psf ppr.

The tender is ‘another demonstration of developers’ interest in the mass market segment’, said Mr Joseph Tan, CBRE’s executive director, residential. Of the eight bids submitted, the first six were very close to one another, he noted.

DTZ’s South-east Asia research head, Ms Chua Chor Hoon, concurred, saying the results showed that developers were still very eager to replenish their land banks and optimistic about the market outlook.
Sim Lian Group executive director Diana Kuik told The Straits Times: ‘Our bid is competitive but not very aggressive. Land prices in general have gone up.’

Also, the site is in a mature estate and it offers a nice living environment, she said.
‘We are looking to build 600 to 650 units with a range of sizes, from small two-bedroom units to four-bedroom units as well as penthouses,’ she added.

CBRE estimates a break-even level of around $700 psf, based on the top bid.

It pointed out that caveats lodged for sales in new projects in the Bedok Reservoir area, such as Waterfront Key and Waterfront Waves, have ranged from $700 psf to $850 psf in the past four to five months.
‘When the new project is ready for launch in six to eight months’ time, we would expect it to be launched within the same price range or higher, subject to market conditions,’ said Mr Tan.

Sim Lian as a contractor would be able to manage its development costs and so may be able to sell units for around $800 psf, based on its bid, said Ms Chua.

The Tampines site, which has a maximum gross floor area of 66,655 sq m, is the fourth residential site launched for sale on the confirmed list this year.

Confirmed list sites are tendered out on scheduled dates, without the need for developers to indicate interest.
The Tampines plot is next to The Tropica condominium and about five to 10 minutes’ drive from Tampines Central and Tampines MRT station.

Only one firm, Boon Keng Development, bothered to bid for the site when it was first offered for sale in August 2008.

Source, Straits Times 17 March 2010

FIRMS registered with the Singapore Accredited Estate Agencies (SAEA) will need to have professional indemnity insurance before they can renew their accreditation.

A minimum limit of indemnity of $500,000 is recommended under the new rule that comes into effect on April 1.

The move by the SAEA is to make consumers more confident when they engage estate agents.

All commission agreements and exclusive appointments are now signed between the consumer and the estate agency through the agent.

Professional indemnity insurance, which is regarded as a form of risk management in professional business practice, offers protection in case of negligence.

The SAEA has worked with AVA Insurance Brokers and Royal & Sun Alliance Insurance to devise options tailored for small and medium-sized estate agencies, which make up 70 per cent of the 400 agencies under SAEA. There are about 1,700 estate agencies in Singapore. Most of them are boutique-size firms.
SAEA chief executive Tan Tee Khoon said: ‘The mega estate agencies accredited by the SAEA already have existing cover at competitive rates. However, the boutique-size firms may not have the financial muscle to do the same and yet they too need it. The SAEA has negotiated what I believe to be the best available deal for these accredited real estate agencies.’

More information will be sent to the accredited agencies and a seminar will be held on March 25 to address the issue.

Accreditation by the SAEA is on a voluntary basis.

Source, Straits Times 17 March 2010

THE Housing Board has launched two build-to-order (BTO) projects that will deliver 828 new flats to the market.

The developments – Fernvale Ridge in Sengkang and Sembawang RiverLodge in Sembawang – comprise 266 three-room, 436 four-room and 126 five-room units.

Another 126 two-room flats in Sembawang RiverLodge will not be offered for sale. They will be set aside for lower-income families at a later date, said the HDB yesterday.

This is the first time the HDB has set aside flats. It said that two-room flats generally received fewer applications in BTO launches but they were central in helping families in financial difficulties get suitable housing.

The low-income group was placed in the spotlight recently during this month’s Budget debate with several MPs asking whether this group had inadvertently been left out in the pursuit of growth and if substantial government support had been provided for them.

Yesterday’s launch is part of a broader HDB plan to offer at least 12,000 new flats this year. So far 3,653 flats have been offered this quarter with a further 1,200 BTO units to be launched in Punggol next month. Future launches have been earmarked for estates such as Yishun and Woodlands. Construction on BTO projects is triggered once a certain level of sales has been achieved.

Sembawang RiverLodge comprises 86 three-roomers and 220 four-roomers and will be built along Sembawang Drive. Fernvale Ridge, bounded by Sengkang West Way and Fernvale Link, will offer 180 three-room units, 216 four-roomers and 126 five-room units.

Three-roomers of 65 sq m at Sembawang RiverLodge are priced between $128,000 and $166,000 while those at Fernvale Ridge will go for between $128,000 and $171,000.

Four-room flats of 90 sq m in Sembawang RiverLodge are going for between $212,000 and $268,000 while those at Fernvale Ridge will cost $216,000 to $271,000.

Five-roomers of between 110 sq m and 113 sq m in Fernvale Ridge in Sengkang will sell for $281,000 to $352,000.

PropNex chief executive Mohamed Ismail said the developments will be huge hits as the number of units offered this time around is only about half the 1,534 units offered during last month’s BTO, even as buyer demand remains strong.

He expects both projects to be oversubscribed by at least eight times given their ‘very attractive pricing’ and close proximity to schools, a key selling point for young couples with children on the horizon.

‘Recent BTOs have offered studio apartments which do not make much sense to a young couple who are looking to start a family, as they will be locked into the BTO flat for a further five years after collecting their keys,’ he added.

The HDB said that this year’s BTO supply will be supplemented by flats under the Design, Build and Sell Scheme (DBSS) as well as executive condominiums (ECs) to cater for higher-income buyers.

Besides the two EC sites offered for sale in January, the HDB will tender out another land parcel in Yishun Avenue 11 under the DBSS for a potential yield of 700 flats by next month. Applications for the new BTO flats can be made online at www.hdb.gov.sg until March 29.

Source, Straits Times 17 March 2010

PERMANENT residents looking to buy an HDB flat may have to widen their search beyond popular areas as some parts of the island have already reached the limits set out in the new quota system.

PRs will not be able to buy flats in certain areas in Jurong West, Choa Chu Kang, Sembawang, Sengkang or Bukit Batok unless they are prepared to pay a premium over the asking price in the hope of enticing other PRs to sell.

The areas have long been popular with PRs but some neighbourhoods and blocks are at the limit outlined by the Singapore Permanent Resident (SPR) quota introduced earlier this month.

It sets a cap for PR households of 8 per cent in each block and 5 per cent within each neighbourhood to prevent enclaves of foreigners forming in the heartlands.

The HDB’s website showed that certain addresses in these areas have reached their PR quota. The addresses include Admiralty Drive and Canberra Road in Sembawang, Anchorvale Link in Sengkang, Choa Chu Kang Avenue 5, Bukit Batok East Avenue 3, Woodlands Avenue 6 and Jurong West Central 1.

A non-Malaysian PR, for example, is eligible to buy a flat from any seller in Clementi Avenue 6. But he can buy only from a fellow non-Malaysian PR at Bukit Batok East Avenue 3 because the quota for the proportion of non-Malaysian PRs in that area has already been reached.

In some blocks, the market is even tighter after throwing the ethnic quota into the mix. For example, if an Indian non-Malaysian PR wants to buy a unit at 313C Anchorvale Road, he would have to buy a unit from an Indian non-Malaysian PR seller to maintain the balance.

PRs comprise about 14 per cent of the population in HDB flats, according to 2009 figures.
Property experts say the quota system might cause greater disparities in prices, not just among neighbourhoods, but within a block as well.

The Ethnic Integration Policy – which sets ratios for ethnic groups to ensure a balanced mix in housing estates – has also had a similar effect.

PropNex chief executive Mohamed Ismail said that PRs selling HDB flats in neighbourhoods or blocks that have reached their quota will be able to quote a higher price when selling to other PRs.

‘Assuming PRs can afford it, they might be willing to pay for a flat that might be nearer to good schools or the MRT, or to get a good view. But if the quota is reached they won’t be able to buy unless they offer a higher price.’

However, this effect is not expected to be big enough to affect general market trends, said Chesterton Suntec International’s research and consultancy director, Mr Colin Tan. ‘Some people will be willing to pay more to live with those from their country, but how much more is very subjective,’ he said.

Property agents say being near others of the same nationality is not a major pull factor for PRs. Cost and distance from their workplace weigh more heavily.

PRs from Myanmar like Jurong West because they work in nearby shipyards, offices and factories while Filipinos choose Jurong West, Simei and Bukit Panjang for the relatively cheaper prices.

PRs from Malaysia and China are scattered islandwide. Their key considerations are mainly cost and proximity to work, transport options like an MRT station or bus interchange and facilities such as schools and supermarkets.

Mr Jeffrey Hong, HSR International Realtors’ executive director of agency, said some PRs might consider moving elsewhere if the asking price over valuation is too high.

The Jurong estate, for example, has seen a 15 per cent rise in HDB prices over the past nine months, he said.
Chinese PRs might move from Jurong to areas like Yishun and Woodlands while Indian PRs might move from Serangoon to nearby Hougang and Lorong Ah Soo if quotas were soon to be reached.

‘These places are less pricey and also not that far from their ideal location,’ Mr Hong said.

Source, Straits Times 17 March 2010