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THE Urban Redevelopment Authority (URA) yesterday launched the sale of a 2.19 hectare plot of residential land at Tanah Merah Kechil Avenue.

This comes two weeks after a bid for it at $130 million triggered the site’s release from the Reserve List under the Government Land Sales Programme for the first half of this year.

The site was first made available for sale through the Reserve List system in April last year.

Located near the Tanah Merah MRT Station, the site has a 99-year leasehold tenure. With a gross plot ratio of 2.8, the site comes with a maximum gross floor area of approximately 659,343 square feet.

The URA said the winning developer could build an estimated 535 units on the site. There is a maximum height of between 49 and 52 metres above mean sea level.

‘The tender for the site at Tanah Merah Kechil Avenue will attract major developers who have the experience in developing large-scale mass market residential projects,’ said CB Richard Ellis’s executive director of investment properties, Soon Su Lin.

‘In 2005, there were no new launches of sizeable 99-year leasehold projects in the Bedok, Tampines and even Pasir Ris areas, priced at affordable levels and that cater largely to HDB upgraders or first-time home buyers. There should be some pent-up demand for affordable homes with access to MRT stations in the East of Singapore.’

Going by the minimum price of $130 million, the site works out at about $212 psf per plot ratio. Property analysts had earlier predicted bids from $200 to $250 psf.

The closing date for the site’s tender is April 11, with the eventual winner based on the tendered land price only.

Source : Business Times - 14 Mar 2006

Total transactions jump 57% to hit five-year high

The number of sub-sale deals, often seen as a gauge of speculative activity in the property market, posted bigger increases in sales volumes for the more expensive categories of private apartments and condos last year, while lower priced units posted more modest gains in sub-sale volumes.

Sub-sales refer to resales that take place before the statutory completion of a project.

The finding on last year’s trends, reflected in DTZ’s analysis of caveats captured by URA’s Realis system, is in line with the overall trend seen in the residential market last year - of the high-end segment leading the recovery.

DTZ said that the number of sub-sales for apartments and condos costing $1 million to less than $1.4 million last year was 61 units, over four times the 14 units in 2004.

The increase was even more impressive for units costing $1.4 million and above, with 78 sub-sale deals last year, nearly 8 times the 10 units in the previous year.

In contrast, sub-sales in the lower price tiers posted more modest increases ranging from 11 to 31 per cent last year, although in absolute numbers, they continued to account for the bulk of sub-sale volume.

As DTZ notes: ‘Unlike 2004, where mass market and mid-end projects predominated sub-sale purchases, close to half of the 10 major projects which attracted most sub-sales were premier projects. These include quality projects with exclusive lifestyle concepts such as The Sail @ Marina Bay and The Azure.’

‘Notwithstanding, the level of sub-sales is considerably low compared to the total units in each development,’ it added.

The total number of apartments and condos changing hands in the sub-sale market rose 57 per cent last year to hit 472. This was a five-year high. ‘Nonetheless, last year’s sub-sale level is lower than the figures in 1996, 1997 and 1999, which stood at 3,410, 1,329 and 1,850 sub-sales, respectively,’ DTZ stressed.

The average sub-sale price rose 27 per cent last year to reach $728 psf.

However, sub-sale deals accounted for only 3.7 per cent of the total 12,888 apartments and condos which changed hands last year in both primary and secondary markets, based on DTZ’s figures. For 2004, sub-sales accounted for 3.2 per cent of the total 9,280 overall apartment and condo sales.

DTZ observed that buyers with HDB addresses accounted for 43 per cent of the total number of apartments and condos that changed hands in the sub-sale market last year, down from a 56 per cent share in 2004.

‘As sub-sale prices have gone up, perhaps this has become a less attractive source of buying private apartments and condos for those living in HDB flats,’ DTZ suggested.

In contrast, foreign buyers’ share of sub-sale transactions rose from 18 per cent in 2004 to 25 per cent last year, although this is still lower than the 27 per cent share in 1997. Sub-sales of apartments and condos involving foreign buyers more than doubled from 53 units in 2004 to 116 units last year.

‘The rise in sub-sale purchases by foreigners alongside the increase in the average sub-sale price reflects their confidence about the investment potential of quality projects in Singapore,’ DTZ said.

Looking ahead, DTZ expects the momentum for the sub-sales markets to strengthen on the back of the property market recovery, and continued interest in several good quality projects launched in late 2005 - such as The Sail @ Marina Bay (second tower) and The Azure at Sentosa Cove - and some high profile projects to expect in 2006.

Analysts say that Hong Leong Group’s St Regis Residences and City Developments’ and TID’s condo on a landmark site in Sentosa Cove are among the upmarket launches this year that can be expected to feature strongly on the sub-sale list.

Source : Business Times - 13 Mar 2006

Foreign buyers now include Europeans, Americans, Australians, Mainland Chinese and Indians: study

Total transactions of private apartments and condos in the traditional prime districts 9, 10 and 11 soared to a six-year high of 3,774 units last year, reflecting a 74 per cent jump from 2004, shows the latest caveats analysis by DTZ Debenham Tie Leung.

In contrast, total caveats lodged for apartments and condos outside the prime districts rose a smaller 28 per cent last year to 9,114 deals.

Says the firm’s executive director Ong Choon Fah: ‘This trend has been happening not just in Singapore but across Asia. In Singapore, we’ve seen that the high-end market has taken off, partly because this is the segment which has seen more launches and hence, new products.

‘And looking at the profile of foreign buyers, they’re no longer just the traditional buyers from the immediate region like Indonesians, Malaysians and Hongkongers. The spread of foreign buyers is becoming more international, including Europeans, Americans and Australians, mainland Chinese and Indians.

‘And during a market upturn, it’s usually the prime segment that takes off first. We’re also seeing some Singaporeans cashing in on this by selling their residences outside the prime district and moving to a prime area,’ she added.

DTZ’s analysis, which was based on caveats captured by the Urban Redevelopment Authority’s Realis system, shows that last year’s increase in prime district apartment and condo sales was seen in both the primary and secondary markets.

In the primary market, developer sales in the prime districts rose 92 per cent last year to hit a 10-year high of 1,864 units. This surpassed the last peak of 1,689 units in 2002, when developers adopted competitive strategies to clear stock.

DTZ attributed last year’s sharp rise to several attractive launches by developers like 8 @ Mt Sophia, Parc Emily, Park Infinia at Wee Nam, and Watermark condo at Robertson Quay, which were last year’s top-selling projects in the prime districts.

‘This was also partly due to increasing investor interest upon early signs of recovery in the property market, including ’specuvestors’ who bought with the intention of disposing the properties when market conditions are favourable,’ DTZ said.

In the secondary or resale market, the number of apartments and condos which changed hands in the prime districts rose 60 per cent last year to 1,910 units. Part of the reason for the increase was continued interest in various relatively new completions like Amaryllis Ville.

Belmond Green and Amaryllis Ville topped the sales charts for prime district developments in the resale market, with 41 and 32 units, respectively, changing hands.

They were followed by The Arcadia (31 units), Valley Park (29 units) and The Tessarina (25 units). DTZ said another reason for the rise in prime district resale deals was the numerous collective sales in the prime districts last year.

Source : Business Times - 13 Mar 2006

Latest freehold plot at Skyline Angullia expected to fetch at least $100m

PROPERTY agents continue to rush launches of prime residential sites. Cashing in on its recent successful sale of Angullia Mansion, DTZ Debenham Tie Leung is releasing another plot in the location for sale - Skyline Angullia.

The latest property, with a 35,810 sq ft freehold land area, should fetch at least $100 million, working out to $1,073 psf per plot ratio (psf ppr) inclusive of a development charge (DC) of about $7.6 million.

Angullia Mansion, sold last month to Far East Organization, fetched about $1,060 psf ppr including DC. That was a collective sale, whereas Skyline Angullia, completed in 1992, is held by a single party, Skyline Investment Holdings Pte Ltd, controlled by Kang Swee Liat and his wife.

They developed the property, completing it in 1992 and have kept it since for rental income. The boutique property group also developed houses along Barker Road in the 1980s.

The existing Angullia Skyline is a 14-storey tower comprising 22 apartments and two penthouses. It has achieved ‘very high occupancy since its completion in 1992′, DTZ said.

The site is zoned for 36-storey residential use with a 2.8 plot ratio (ratio of potential gross floor area to land area). The site may be redeveloped into a new project with about 45 units averaging 2,000 sq ft, according to DTZ.

Property agents are racing to launch collective sales and other residential sites in Singapore’s prime districts, as they ride on developers’ current large appetite to replenish landbank in these areas. This is being fuelled by strong demand led by foreigners in the luxury housing sector.

Earlier last week, DTZ launched the tender for Hilltops Apartments in Cairnhill Circle and some adjacent terrace houses.

CB Richard Ellis is expected to launch soon the collective sale of Beverly Mai, an 80,000 sq ft freehold site in the Orchard Boulevard area, having secured the requisite minimum consent levels from owners. Sources said that the owners are hoping to achieve close to $250 million or $1,190 psf per plot ratio including DC.

And in the Grange Road area, BT understands that collection of signatures from Lucky Tower owners’ is at an advanced stage. Astoria Apartments at Cairnhill Rise and Futura at Leonie Hill are among the other prime district sites expected to be launched this year.

DTZ director Tang Wei Leng said: ‘There’s a race to push out all the high end sites as we may not achieve our reserve prices as the market reaches saturation point.’

Competition among sites in the prime districts is set to intensify. ‘Run of the mill sites will come under greatest pressure, whereas sites with some unique selling points may have some room still to ride on sentiment,’ she added.

However, CB Richard Ellis executive director Jeremy Lake reasons that the profile of bidders for different-sized sites varies. ‘Somebody who might bid for a $40 million site may not be interchangeable with a developer who can bid for a $200 million site. So while there may be quite a few sites, they may not necessarily be in direct competition for the same buyers,’ he said.

‘But clearly, developers faced with more choice may prefer to be slightly less aggressive than in the past. Buying interest is still quite strong, but going forward, the sites that will be successful will be the ones that are more desirable. If your site is less desirable, or overpriced, you may get left behind,’ added Mr Lake.

Source : Business Times - 13 Mar 2006

ANOTHER choice site in the Orchard Road area is set to be sold en bloc, hot on the heels of two record-breaking collective sales this year.

Skyline Angullia, a 14-storey development with 24 apartments, is located behind The Parisian, which is across the road from Wheelock Place.

Property consultancy DTZ Debenham Tie Leung believes Skyline Angullia’s prime position will result in another jackpot price for the owners, similar to that fetched by Angullia Mansion.

Angullia Mansion, which is opposite the Skyline Angullia, was sold early last month for $120 million, or $1,060 per sq ft per plot ratio (psf ppr). This was above the $1,020 psf ppr price achieved for the prime Orchard Turn plot.

‘Prices are likely to better Angullia Mansion…Skyline Angullia should fetch at least $100 million after allowing an amount of $7.6 million for development charge,’ said Ms Tang Wei Leng, DTZ Debenham Tie Leung’s director for investment advisory services.

‘Given the strong bidding at Eng Lok Mansion, Skyline Angullia presents another choice site that developers should not miss out on.’

The freehold Eng Lok Mansion in Napier Road made history as the priciest collective sale ever when it was sold early this month for a hefty $1,218 psf ppr or $138 million.

Skyline Angullia has a site area of 35,810 sq ft and a maximum plot ratio of 2.8.

The successful bidder can develop a 36-storey condominium with about 45 units of 2,000 sq ft each.

Skyline Angullia, whose tender will close on April 11, is one of many collective sale sites aiming to be sold en bloc.

Collective sales and launches have continued at a furious pace this year following the record transactions last year.

Twelve collective sale sites have been sold since Jan 1, with developer Bukit Sembawang snapping up two last week.

It bought The Vermont off Cairnhill Road for $75 million, or $750 psf ppr, after paying $54 million, or $625 psf ppr for Chez Bright Apartments at St Thomas Walk.

Huge former HUDC estates such as Pine Grove in Ulu Pandan are keenly preparing to go for sale en bloc, while the 583-unit Waterfront View in Bedok Reservoir is getting the required signatures from owners so that it can launch a tender for sale.

It revised its reserve price downwards after the one written offer and two verbal ones from listed developers were below its initial asking price of $450 million.

Source : Straits Times - 13 Mar 2006