ANOTHER executive condo (EC) site in Punggol has been put up for sale, with experts expecting healthy interest with bids of around $320 million.

The 25,164 sq m parcel at the junction of Punggol Way and Punggol Field has a maximum gross floor area of 75,493 sq m that could yield 720 units.

The 99-year leasehold site is near the Punggol LRT and MRT stations, the bus interchange and close to the Tampines and Kallang-Paya Lebar expressways.

Experts say the success of the recent EC launch of Prive in Punggol – it is now 95 per cent sold – has been a good test for the local market.

SLP International research head Nicholas Mak said about four to seven bids can be expected, coming in at $350 to $390 per sq ft (psf) per plot ratio (ppr), or between $284 million and $317 million.

Mr Mak noted that the site is a fairly attractive one, within walking distance of the Punggol town centre.

However, bids are likely to be more measured as there are still five EC projects potentially yielding 2,800 units that have yet to be launched by the HDB, he added.

‘The review of the HDB income ceiling is also unlikely to have a large impact on the EC market as it does not mean that everyone will start buying build-to-order flats after the review… There will always be buyers interested in the EC segment,’ Mr Mak said.

Mr Png Poh Soon, Knight Frank’s head of research and consultancy, expects bids of $310 to $330 psf ppr – or $242 million to $255 million. He expects the eventual selling price of the project to range from $700 to $720 psf.

Ten EC sites have been sold since the start of last year. Those sold early last year attracted up to 11 bids each but the number of bidders has fallen since as property cooling measures were imposed, Mr Png said.

‘Despite the decrease in bidders, prices of EC sites close to MRT stations or located in well-established regional hubs held up well,’ he added.

‘For example, the last EC site awarded in April on Tampines Central 7 closed at $392 psf ppr – the highest EC site for all of 2010 and 2011 so far.’

ECs have condo-like facilities and are an upmarket hybrid of public and private housing.

Separately, 147 of the 315 units Belysa in Pasir Ris were snapped by 5pm yesterday, the first day of sales.

Source: Straits Times, 26th May 2011

The draw: Bigger buyer pool if HDB income ceiling is raised

THE impending move to raise the income ceiling for public housing could prompt more developers to target sites zoned for executive condominiums (ECs) and Design, Build and Sell Scheme projects, say industry experts.

The Government has said that it may increase the income ceiling from $8,000, which would allow households with a higher combined income to buy a Housing Board (HDB) flat.

If that happens, analysts expect the income ceiling for ECs – now at $10,000 – to be raised correspondingly.

Market experts say that developers who focus more on private residential projects may also bid for government land tenders to tap into this increased pool of buyers.

However, the increased buyer pool for HDB homes could also depress private property market prices.

Mr Png Poh Soon, head of consultancy and research at Knight Frank, said: ‘Buyers who are looking to purchase mass-market homes might be lured to buy executive condominiums and public housing now that they might qualify for it.

‘Some developers believe that potentially, mass-market home prices could become cheaper as other players adapt more competitive strategies to attract buyers in the same income bracket.’

Mr Png said that the market will be keen on the increased supply of land expected to flow from the second half of this year’s Government Land Sales programme.

‘We’ve seen strong sales figures in April and in the absence of any new cooling measures, there’s no reason why developers should shy away from tenders,’ he added.

Last month, developers sold 1,788 residential units, the highest monthy volume since November last year.

But Mr Png added that the injection of land will put pressure on companies that already have a lot of government sites in their landbanks.

He said that such developers might decide to roll out their projects earlier to reduce their risk and ensure a better cash flow.

‘But companies with fewer government sites may be more aggressive when bidding, especially when well-located plots with good amenities nearby come up for sale.’

Knight Frank released an analysis yesterday detailing the holdings by developers of government land stock.

The survey was based on sites launched from last year to the present. It recorded the number of units being developed on a site, any unsold flats or in the case of undeveloped land, estimated number of units each site could support.

The Sim Lian Group topped the list with 2,781 units, City Developments was next with 1,271 and United Engineers third with 1,101.

Source: Straits Times, 26th May 2011

FOREIGN home buyers snapped up 16 per cent of all private homes sold in the first quarter – the highest quarterly percentage since data became available in 1995.

Experts say the high foreign proportion in the market is because such buyers have been less affected by the rounds of cooling measures which have muted local interest.

The overseas impact has been telling, according to the DTZ Research report that contains the new buying figures.

Its analysis of caveats lodged for both new and secondary sales found that foreigners bought 1,028 units in the three months to March 31. That 16 per cent share of the market tops the previous record of 15 per cent – or 784 units – in the fourth quarter of 2007.

Foreigners were also active in the last quarter of last year when they bought 1,092 units, accounting for 13 per cent of the market.

Demand from permanent residents (PRs) remained stable at 13 per cent in both quarters.

DTZ said Chinese buyers – including permanent residents – also set a record, accounting for 24 per cent of purchases made by non-Singaporeans in the quarter. They have overtaken Malaysians for the first time.

Malaysians have held the top position since the second quarter of 2008 but have seen their market share dip from 24 per cent in the fourth quarter of last year to 21 per cent in the first quarter.

Homes in District 16 – this comprises Bedok and Upper East Coast – saw greater buying interest from foreigners compared with last year.

District 18 – including Tampines and Pasir Ris – and District 23 comprising Hillview and Chua Chu Kang were also increasingly popular.

DTZ’s head of South-east Asia research, Ms Chua Chor Hoon, said foreign interest has remained stable at about 1,000 units a quarter over the past 12 months as Singapore has maintained its reputation as a safe investment haven.

The new high is due mainly to a drop in the number of purchases by Singaporeans as the January cooling measures have had a larger impact on them, said Ms Chua, who added that interest from foreigners is expected to remain stable in the next few quarters.

‘However, local concerns about high housing prices and the influx of foreigners that were magnified during the recent general election will be a catalyst for the review of immigration and housing policies, which could dampen demand in the residential market in the coming months,’ she noted.

Other experts added that interest from foreigners has been sustained due in part to the buzz created by the two integrated resorts and the country’s growing strength as a financial hub.

Dr Chua Yang Liang, head of research at Jones Lang LaSalle South-east Asia, said that China’s moves to tighten lending policies might have led Chinese buyers to turn to Singapore while some Europeans moving here to work have chosen to buy rather than rent.

‘Regional economic conditions – in Singapore, Indonesia and Australia – are strong and this means that foreign buyers are likely to remain active here as Singapore positions itself as a global city,’ he added.

Ms Wendy Tang, Knight Frank’s director of residential services, said most foreign buyers are Asians with a long-term perspective and attracted to the stability that Singapore offers. The strengthening Singdollar also assures investors that this is a good place to park their cash.

Foreigners also bought more into the high-end market. They accounted for 21 per cent of all the homes sold for $1.5 million and above in the first quarter, up from a 17 per cent share in the previous three months.

January’s cooling measures were noted to have made an impact, mostly in the secondary sales market. The number of caveats fell by more than half in February to 745, from 1,664 in January.

But the secondary sales volume rebounded to 1,592 caveats in March as the initial reaction to the cooling measures appeared to wear off, DTZ said.

Private homes smaller than 1,000 sq ft continued to be popular with HDB buyers, with the proportion of such buyers rising from 41 per cent last year to 46 per cent in the first quarter.

Source: Straits Times, 25th May 2011

ENCOURAGING home sales continued over the weekend with MCL Land’s Terrasse in Hougang finding buyers for more than 150 apartments.

The homes at the 414-unit project in Hougang Avenue 2, whose preview started on Saturday, were sold at an average price of $950 per sq ft (psf).

The 99-year leasehold project has homes ranging from 506 sq ft one-bedders to five-bedroom penthouses of about 2,210 sq ft. Ground-level garden duplexes have yet to be released.

The Straits Times understands that a one-bedder will start from $580,000 while a five-bedroom penthouse will start from $1.85 million.

All unit types received even interest, with 90 per cent of the buyers locals and permanent residents. The rest were foreigners from countries including Malaysia and China.

Far East Organization also saw 30 units across its properties snapped up by home buyers last week, excluding sales at Eight Courtyards in Yishun.

Its Waterfront collection in Bedok Reservoir – Waterfront Isle, Waterfront Key and Waterfront Gold – sold 15 units in total while The Greenwood and Suncottages sold two units each.

Woodhaven in Woodlands and Seastrand in Pasir Ris will start sales in the first and second half of next month respectively, The Straits Times understands. Online marketing material suggests Seastrand prices will start from $850 psf. Woodhaven’s average price will range from $900 to $1,000 psf. These prices do not factor in any possible early bird preview discounts.

On the public housing front, this year’s first executive condo launch, Belysa in Pasir Ris, had attracted 520 e-applications as of 8.30pm yesterday. This is about 1.7 times the number of units in the 315-unit project at the junction of Pasir Ris Drive 1 and Elias Road, which experts say is a healthy figure.

Belysa – illumination in Swedish – will offer only three- and four-bedroom apartments to cater to three-generational living. Priced at an average of $670 psf, the indicative price of an 829 sq ft three-bedder starts from $574,000 while a 1,335 sq ft four-bedder starts from $882,000. Sales bookings for units will start tomorrow.

Experts say buying interest is still healthy for projects that are reasonably priced and in a good location.

PropNex chief executive Mohamed Ismail said buyers have begun to accept that prices – especially in mature estates, even in suburban areas – can be about $1,000 psf. ‘This demand is coming from owner-occupiers and mid- to long-term investors… There is also a good number of HDB upgraders in the market,’ he added.

Source: Straits Times, 24th may 2011

BUKIT Sembawang Estates paid a heavy price for write-backs in the fourth quarter, with net profit falling 34.4 per cent.

Earnings came in at $27.5 million for the three months to March 31, down from the $41.9 million in the previous quarter.

The hit came mainly from lower writeback of foreseeable losses on properties.

The write-back of allowances for foreseeable losses amounted to $13 million for the fourth quarter, compared with $40 million for the same period last year. A write-back is basically the process of restoring or increasing the value of an asset after a previous write-off or write-down.

But there were positive signs, with revenue for the quarter up 264.9 per cent to $76.6 million over a year earlier, fuelled by more property sales.

The full-year numbers were better, with revenue for the 12 months rocketing 658 per cent to $500 million.

Full-year net profit was also up 221.9 per cent to $170.5 million, attributable to more sales at Paterson Suites and Temporary Occupation Permits obtained for Parc Mondrian and Paterson Suites.

The increased earnings were down to higher profit recognition on Verdure, The Vermont on Cairnhill and Luxus Hills Phases 1, 2 and 3.

Earnings per share for the fourth quarter fell to 11.02 cents from 17.52 cents a year ago, while net asset value per share rose to $3.82 as of March 31, from $3.21.

The company said the property cooling measures in January have ‘moderated’ private housing prices. It said Luxus Hills Phase 1, which has 78 units, is expected to be completed during the first half of the financial year ending 2012.

‘The group will continue to closely monitor the property market and will time the launches of Luxus Hills Phase 5 and the new condominium project along Telok Blangah Road in the current financial year,’ it added.

Source: Straits Times, 24th May 2011

If successful, it will be Singapore’s second-largest collective sale

Knight Frank says the development, with a plot ratio of 2.8, is a ‘rare and sizeable’ plot of land with a more than 300m span of sea frontage.

If former HUDC estate Laguna Park’s latest bid goes through, each resident stands to get between $2.35 million for a 1,453 sq ft apartment and $4.5 million for a 3,369 sq ft penthouse unit. The 677,493 sq ft site comprises 516 residential apartments and 12 commercial units. — ST PHOTO: LIM SIN THAI

FORMER Housing and Urban Development Company (HUDC) estate Laguna Park is set to become Singapore’s second-largest collective sale, if a developer is willing to pay the $1.33 billion asking price.

The sale tender for the huge site on Marine Parade Road, with commanding sea views, was launched yesterday by marketing agent Knight Frank.

The record for a collective sale is held by Farrer Court, another former HUDC estate, which sold for $1.34 billion in 2007. This worked out to about $762 to $783 per sq ft per plot ratio (psf ppr) for the 838,488 sq ft plot.

Laguna Park comprises 516 residential apartments and 12 commercial units on a somewhat smaller 677,493 sq ft site. This means the price psf ppr for the asking price is quite a bit higher at $975.

The asking price includes about $250 million to top up the 99-year lease and a development charge of almost $269 million to enhance the property’s use.

Laguna Park was previously put up for sale at $1.2 billion in 2009. A possible sale fell through as the sales committee ran out of time trying to get the minimum consent level from owners for a lower price.

If the latest bid comes off, residents of the 34-year-old condo each stand to receive between $2.35 million for a 1,453 sq ft apartment and $4.5 million for a 3,369 sq ft penthouse unit.

Last month, new homes in nearby development Silversea hit an average selling price of $1,726 psf. Units in another nearby project Cote D’Azur averaged a selling price of $1,094 psf during the same period.

All 12 of Laguna Park’s commercial units are 1,636 sq ft and are owned by the HDB, which stands to receive a total of $22.2 million from the development’s sale.

Knight Frank says the development, with a plot ratio of 2.8, is a ‘rare and sizeable’ plot of land with a more than 300m span of sea frontage.

Knight Frank chairman Tan Tiong Cheng said: ‘The proposed new development will enjoy breathtaking sea views, a dramatic city skyline and lush surroundings, all within visual range.’

The site is located near well-established schools such as Tao Nan School, Victoria Junior Collage and St Patrick’s School. Recreational facilities such as those at East Coast Park are within walking distance.

Plans are in place to build an Eastern Region MRT Line to link residential estates in the east such as Tanjong Rhu, Marine Parade and Upper East Coast to the Marina Bay area.

Laguna Park joins the list of mega collective sale sites that have come up for sale in recent months. Many including Tulip Garden and Hawaii Tower have failed to sell.

Launched in March, the $1.7 billion tender for Pine Grove condominium in Ulu Pandan closed last month.

Marketing agents for the 893,219 sq ft site say they are in discussion with some parties. Under collective sale rules, a 10-week period is allowed after the tender closes for private treaties to be ironed out. Pine Grove’s 10-week period ends on June 27.

Laguna Park may find it difficult to buck the trend of attempted sales that fail, say market observers.

Dr Chua Yang Liang, head of research at Jones Lang LaSalle, said an anticipated oversupply of residential units set to hit the market over the next few years may have led developers to take a more cautious approach.

Buying such a big site would mean taking on a bigger risk, said Dr Chua. ‘It’s more likely that the bigger property developers might take part in this tender. But I don’t rule out smaller developers or even foreign property players coming together through joint ventures to make a bid for the land.’

Source: Straits Times, 24th May 2011

EC site in Punggol also to be launched; 3 plots will yield about 1,415 units in all

TWO residential sites, one in Choa Chu Kang and the other in the West Coast area, have been put up for sale – and could yield about 695 new homes in total.

This is part of the Government’s drive to offer more affordable private housing outside the central region.

Also set to boost the supply of homes is another executive condo (EC) site, in Punggol, slated for launch later this month.

Developers are invited to bid for a 1.27 ha site opposite West Coast Park at the junction of West Coast Link and West Coast Crescent. The 99-year leasehold site has a maximum gross floor area (GFA) of 35,456 sq m and can yield about 360 units. The tender closes on June 23.

The 1.54ha Choa Chu Kang plot, at the junction of Choa Chu Kang and Phoenix roads, has a maximum GFA of 32,310 sq m. It could yield 335 homes and is within walking distance of Phoenix and Teck Whye LRT stations. Tenders for the site, also a 99-year leasehold plot, close on June 30.

Details of the tenders were released by the Urban Redevelopment Authority (URA) yesterday. The two sites are offered under the confirmed list.

The Housing Board will release the EC site at the junction of Punggol Way and Punggol Field under the confirmed list later this month.

Together, the three sites can provide about 1,415 units.

Property market observers say the two URA sites could attract healthy interest of five to 10 bids each, and fetch top bids of about $220 million each.

Mr Li Hiaw Ho, executive director of CB Richard Ellis (CBRE) Research, said in the case of the West Coast site, West Coast Park and Clementi Woods would offer a lot of greenery and open space for residents.

The location is also popular with the Japanese community, given the nearby Waseda Shibuya High School and The Japanese Supplementary School, he added.

Units in the nearby Blue Horizon condominium were transacted on the resale market at $825 to $990 per square foot (psf) between February and April, Mr Li said.

Assuming a selling price of about $1,000-$1,100 psf for the new project, he estimates bids of between $214 million and $221 million – or $560 to $580 psf per plot ratio (ppr).

As for the Choa Chu Kang site, SLP International research head Nicholas Mak said a reasonable bid could range from $425 to $500 psf ppr – or $148 million to $174 million. ‘There are not many new condominiums in the vicinity of this site… The newest launch was The Tennery, which was transacted at an average price of $1,160 psf,’ he said.

CBRE’s Mr Li expects bids of $208 million to $222 million – or $600 to $640 psf ppr. ‘The site… is flanked by the landed homes of Pavilion Park on one side and Phoenix Heights Estate on the other. This location is on the fringe of Choa Chu Kang and Bukit Panjang HDB estates and will benefit from the amenities and facilities there,’ he added.

The URA said that as of the first quarter, about 68,887 private homes are in the pipeline and expected to be completed within the next few years. Of these, the inventory of unsold units totalled about 34,266.

Source: Straits Times, 6th May 2011

EXECUTIVE condominiums (EC) are making a strong comeback after a quiet five years, accounting for almost 20 per cent of the 3,678 new private homes sold in October and last month.

About 700 EC units were sold, largely at two new projects. Esparina Residences in Sengkang had sold 509 of its 573 units by the end of last month, while The Canopy in Yishun moved 185 of its 406 units.

ECs are a hybrid of public and private housing subject to Housing Board (HDB) rules, such as a minimum five-year occupation period. They cater to households with a monthly income ceiling of $10,000.

‘Because of the restrictions, they often attract genuine home buyers,’ said Mr Png Poh Soon, associate director and head of research and consultancy at Knight Frank.

The Government is also happy to see a strong take up of ECs, said Mr Ong Teck Hui, head of Credo Real Estate’s research and consultancy.

‘This means (the Government) has been correct in implementing the property measures and people who are not able to buy private units now have the opportunity to do so,’ he said.

Five EC projects, including Austville in Sengkang, will be launched, adding an expected 2,440 flats to the market.

‘While (developers) are certain of demand, they would not want to hold back and will strike while the iron is hot,’ said Mr Ong.

Four additional sites – in Tampines, Chua Chu Kang, Punggol and Upper Serangoon – have been earmarked for ECs in the Government Land Sales Programme for the first half of next year.

These will provide 2,290 homes.

Source: Straits Times, 16 Dec 2010

Prior to the start of balloting, analysts have already been expecting a good turnout for the project which is located near the Punggol MRT.

They said the 680 two- to four-bedroom units offered will appeal to buyers known as the “sandwiched class”.

The project was launched earlier this month.

The market has seen renewed interest in executive condos, which is a hybrid of private and public housing, after a five-year hiatus.

Prive is jointly developed by NTUC Choice Homes and CEL Development.

The units are priced at $660 to $690 per square foot.

It is the third executive condominium project launched this year.

The other two projects, the Esparina and the Canopy, were launched in October.

Source: Channel News Asia, 10 Dec 2010

AN EXECUTIVE condominium (EC) site in Pasir Ris has drawn healthy interest, with six bids put in by developers by the time the tender closed yesterday.

The 15,142 sq m site, at the junction of Pasir Ris Drive 1 and Elias Road, is expected to yield about 320 housing units.

The top bidder was ChoiceHomes Investment and CEL Developments at $89.88 million or $263 per sq ft (psf).

Buying interest was strong when the first new EC to go on sale in five years, Esparina Residences near Buangkok MRT station, was launched earlier this month.

ECs are the grandest form of public housing and include some condo facilities. Like other HDB flats, they are subject to a minimum five-year occupation period. Then they can be sold only to Singaporeans and permanent residents. They become private property after 10 years, and can then be sold to foreigners.

The second highest bid for the Pasir Ris site, just a notch lower, was EL Development’s $89.33 million or $261 psf.

The two lowest were below $80 million. Ecco Development’s $61 million or $178 psf offer was the lowest.

Hoi Hup Realty, Sunway Developments and S.C. Wong Holdings jointly bid for the land at $78.87 million or $231 psf.

The bids show developers are fairly confident about the site, said executive director of CBRE Research Joseph Tan.

He added that the site is about 15 minutes’ walk from White Sands mall and Pasir Ris MRT station and bus interchange.

Knight Frank senior manager of consultancy and research Png Poh Soon told The Straits Times that demand for ECs was still good, ‘in particular for this site’, given the favourable reception of nearby private condo NV Residences.

Mr Tan added: ‘Given that NV Residences – a private condominium – has sold 400 units at the median price of $869 psf since September, there will be a market for this new EC project if it is priced at a differential of 20 to 25 per cent lower.’ He expects the break-even cost for development to be $560 psf to $600 psf.

Consultants also say the bidding for the Pasir Ris site reflects growing caution in the property market.

Head of research at Jones Lang LaSalle in Singapore, Dr Chua Yang Liang, said developers have become more realistic given moderating market sentiment.

‘When the market is bullish, the variation between the top and second bidders can be quite large,’ said Dr Chua.

The relatively restrained bids may in part be because the site was released on Sept 8, soon after the Government’s cooling measures, senior manager for Asia-Pacific research at Cushman & Wakefield Ong Kah Seng told The Straits Times.

‘Home buyers are on the sidelines and developers are increasingly cautious in this period, which is less than two months from the announced measures,’ he said.

He added that in the first half of this year, land prices for ECs reached record highs to average more than $300 psf.

The HDB said it will announce the successful bidder within two weeks.

Source: Straits Times, 22 Oct 2010