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Govt to release 7 sites for executive condos and flats built by private developers.

IF THE property pundits are right, Bishan and Toa Payoh will be the next areas to be buzzing with hot property market action.

A plot in each location is about to go on sale, and both are earmarked for public housing to be built by private developers.

The exact locations of the two choice sites were released yesterday, along with those of two others in Simei and Bedok slated for the same kind of development.

They were part of a package of more than 7,000 new HDB flats and seven land plots, meant for a mix of higher-end public housing and executive condominiums, to be released between now and June.

They also include 1,162 new flats on Bukit Panjang Ring Road and Punggol Road that were put up for sale yesterday.

The four sites for developer-built public housing can yield 1,900 homes. They will be put up for tender progressively, starting from next month until June.

Meanwhile, another three plots meant for executive condominiums - at Yishun, Jurong West and Sengkang East Avenue - will be put on the reserve list in the first half of next year. This means they will be put up for tender once an interested buyer submits a minimum bid acceptable to the Government.

Property consultants and analysts contacted by The Straits Times did not think this move would lead to any oversupply in the market. There was healthy demand for new HDB flats, they said, and this was supported by economic growth.

Citigroup economist Chua Hak Bin said: ‘The market has to pay a price for the sites, has to feel comfortable that there is a demand, so it is still market-driven.’

There was a general consensus that developers would make a beeline for the plots in Bishan and Toa Payoh when they were put up for tender.

The Bishan site, which can fit about 390 homes, will be put on the market next month. It is at Bishan Street 24, near public housing blocks and schools, and a short walk from Bishan North Shopping Mall.

The other, to be put up for tender in April, is located at Lorong 1A Toa Payoh. It sits between the Braddell and Toa Payoh MRT Stations and is also a stone’s throw from the bustling HDB Hub.

Developers who bag the sites will have to build flats according to the general rules of public housing, which means their common spaces will have to be easy to maintain, for example.

While they are free to design, build and price the flats, they can sell the properties only to families who earn not more than $8,000 a month, and they must maintain an ethnic quota within the estate.

The first such hybrid housing project, developed by Sim Lian Land in Tampines, was launched to overwhelming response last year. The second, to be developed by a Hoi Hup Realty-led consortium in Boon Keng, is expected to be launched soon.

The tender for a third such plot in Ang Mo Kio closed earlier this week with a higher-than-expected top bid of $212.40 per sq ft (psf) per plot ratio. This means flats there could be launched from $580 psf.

Mr Ku Swee Yong, the director of business development and marketing at Savills Singapore, predicted an even better response to the Bishan and Toa Payoh projects. He said: ‘Selling prices of the finished units could hit $600 psf or even more, which means HDB prices may reach the levels of private 99-year leasehold condos.’

PRICIER FLATS

‘Selling prices of the finished units could hit $600 per sq ft or even more, which means HDB prices may reach the levels of private 99-year leasehold condos.’

MR KU SWEE YONG, Savills Singapore’s director of business development and marketing, on the prices of the HDB flats that private developers are to build on the Bishan and Toa Payoh plots.

Source : Straits Times - 29 Nov 2007

ALLCO Commercial Real Estate Investment Trust (Reit), which owns commercial buildings in Singapore, Australia and Japan, has cancelled a plan to raise up to $150 million, citing market conditions.

The trust said it was not proceeding with its plan to raise capital by offering up to 175.2 million new units to existing unit holders.

‘There is no pressing need for Allco Reit to be raising capital at this time,’ said Mr Nicholas McGrath, the chief executive of Allco Reit’s manager.

The Reit had meant to use capital raised from the offering to pay off some of the debt taken on when it bought properties in Singapore and Japan.

‘However, given current market conditions, the manager has concluded that it is not prudent to raise equity at this time,’ the Reit said in a statement.

Earlier this month, Saizen Reit - which owns properties in Japan - saw the price of its units plunge 13 per cent on its debut.

As well, APL Japan Trust - which has a portfolio of residential buildings in 12 Japanese cities - postponed its initial public offering.

It said that it was concerned about post-listing weakness amid poor market sentiment.

Source : Straits Times - 29 Nov 2007

TO CATER to the burgeoning demand for new flats, the Housing and Development Board (HDB) has announced it will offer another 6,000 flats under the Build-To-Order (BTO) system — bringing the total number of new flats to be released over the next seven months to more than 10,000.

This comes in addition to some 1,162 BTO units that National Development Minister Mah Bow Tan launched yesterday.

The projects, Segar Meadows in Bukit Panjang and Compassvale Beacon in Sengkang, comprise two-, three-, and four-room flats. Applications are open until Dec 18.

Mr Mah reiterated the Government’s commitment to home ownership and ensuring a steady supply of new flats for first-time buyers such as young couples — but urged these buyers not to be too picky.

Citing recently-raised concerns from some first-time buyers who said they had gone through several rounds of balloting in vain, Mr Mah said he had investigated at least one such case of a buyer who emailed him.

He found that the potential buyer had been offered a flat, but had given it up as he did not want one below the sixth floor.

Mr Mah said buyers should “be realistic”.

“It is really not possible for HDB to be able to provide a flat in the exact location, in the exact flat type, on the exact floor, in the right size (that you want), and so on,” he said.

“We will build more flats, we will give you more chances to own a flat. If you do get a flat, it’s best that you think carefully. Even if it’s not ideal, if you need a new flat … take it up and then, over time, you may want to upgrade your flat,” he said.

HDB statistics from BTO launches in August and September show that 92 per cent of first-time buyers are shortlisted for new flats. In total, the HDB has launched 4,800 BTO units this year, double the number for last year.

Also, from next month until June, the board will release sites that will contribute another 1,860 Design, Build and Sell Scheme (DBSS) flats and 1,300 Executive Condominiums (EC) to the pool.

The DBSS flats are alternatives to HDB-built flats as the private sector will be involved in developing the public housing.

Last week, the HDB announced it would require EC developers to reserve at least 90 per cent of units for first-time buyers in the first month of sale. Also, second-time buyers who buy a new EC will no longer have to pay the resale levy.

Apart from the new units coming on tap, there will be additional balloting exercises for surplus new flats.

Mr Mah said the HDB will not over-supply the market with new flats as it would not ensure a healthy resale market in the long run.

“A person who is a buyer today is also going to be a seller tomorrow,” he said. “If we don’t have a healthy resale market, then I think down the road … we’re going to have problems.”

The increase in supply, however, has not quelled the anxiety of first-time buyer Alice Lim, who has been looking for a flat with her fiance since June.

She has taken part in balloting exercises twice but did not even get to view the flats as she was too far behind in the queue.

“We can’t wait for BTO flats because we want to get married and start a family soon,” the 31-year-old procurement officer said. “We are not fussy, but even in places like Sengkang and Punggol, there are no new flats readily available and resale flats are just too expensive.”

And new flat prices are expected to rise if resale flat prices continue their upward trend. This is because HDB flat prices are pegged to resale flat valuation prices, even if they are not dependent on construction costs.

Mr Mah assured home-buyers: “We will always make sure that the new prices will be affordable.” This will be achieved by ensuring the mortgage repayment paid out per month is not more than some 30 per cent of the household income. 
 
Source : Today - 29 Nov 2007

The Housing and Development Board (HDB) is building up the supply of new flats by 10,362 units over the next seven months to meet rising demand.

These will cut across different flat types and suit different budgets, said National Development Minister Mah Bow Tan.

For a start, two new Built-To-Order (BTO) projects have been launched in Sengkang and Bukit Panjang.

The new Compassvale Beacon in Sengkang will offer 750 flats, comprising 2, 3 and 4-room units, while the other BTO project is the 412-unit Segar Meadows in Bukit Panjang.

The BTO exercise will end on December 18.

Priced between S$69,000 and S$231,000, the two projects will help address housing needs, especially those of young couples.

This is good news for 26-year-old Mohammad Harris, who is looking to buy his first flat but could not afford a resale unit.

He said: “As long as I can get a house for myself and my family, it’s okay. But my wife will consider the journey time to her workplace.”

“The new flats will give me more options and I can select based on my budget,” said Chong Poh Ying, also a first-time flat buyer.

Separately, the HDB plans to build another 6,000 units under its BTO system in the first half of next year.

The total number of flats offered under BTO this year is 4,800 units, double that of last year.

The National Development minister urged buyers not to be too choosy when offered a new flat.

“Be realistic about the chances of getting a flat. If you need a new flat, please take up the new flat even if it’s not something you like, even if it’s not ideal for you. Take it up and then gradually over time, you may upgrade to the flat that you like,” said Mr Mah.

Those looking for premium flats will also have more choices.

Given its success, the HDB will release four more sites for its Design, Build and Sell Scheme for about another 1,900 new units.

The first, at Bishan Street 24, will be launched next month. Those in Simei Road, Lorong 1A Toa Payoh and Bedok Reservoir Crescent will be offered next year.

In addition, another three executive condominium sites comprising some 1,300 units will be progressively released under the Reserve List of the government land sales programme.

These will be in Yishun Avenue 11, Jurong West Street 42 and Seng Kang East Avenue.

Mr Mah also addressed concerns about flat prices.

“For HDB, the market has moved in recent months, but it hasn’t moved to the extent of the private (market). Just looking at the numbers, I don’t see any bubble forming at the HDB market. For a start, it’s a bigger market and it’s a much more stable market. The growth that we are seeing is a healthy one, in the resale market,” said the National Development minister.

In view of the construction boom, Mr Mah said the rising construction costs will not have a direct impact on the prices of new HDB flats, as they are pegged to the average resale market prices. He also assured that the HDB flats will remain affordable.

As for the lower income families, Mr Mah said they’ve been helped by various schemes.

Among them, the Additional CPF Housing Grant which has provided S$50 million to 4,100 households.

Source : ChannelNewsAsia - 28 Nov 2007

A SITE at Yishun Avenue 6 has been put up for sale for industrial development.

The land parcel is one of the four new industrial sites that were scheduled for release on the reserve list under the Government Industrial Land Sale Programme for the second half of 2007.

The 1.43-hectare site has a plot ratio of 2.5 with a lease period of 60 years. It is zoned for a Business 1 development and can be developed for a range of clean and light industrial and warehouse use, the Urban Redevelopment Authority said.

Savills Singapore director of industrial business space Dominic Peters said that he believes the site could attract bids of about $30 per square foot per plot ratio (psf ppr). ‘Demand is still likely to be strong,’ he said.

In October, an industrial site at Sin Ming Lane was sold for $68.9 million, or about $50 psf ppr. The site was more centrally located and larger.

Mr Peters said that potential bidders could be interested in developing strata-titled units on the Yishun site for sale. Real estate investment trusts (Reits) or developers targeting Reits may be less keen.

According to a Savills report on the industrial sector, Reits were the major players in the industrial market in the third quarter.

Mapletree Logistics Trust acquired six properties for a total of $62.4 million, Cambridge Industrial Trust purchased three properties for $108.5 million and the recently listed MacArthurCook Industrial Reit added two properties worth $109.3 million to its portfolio.

In the first nine months of this year, more than 25 acquisitions were made by Reits, taking the total transaction value to $503 million, up 27.3 per cent year-on-year.

Source : Business Times - 28 Nov 2007