SGHOUSING.COM 新加坡房地产网

Malaysian conglomerate YTL Corporation has won the bid for Westwood Apartments with an offer of S$435 million.

Market watchers say the high price is a reflection of the continued strong demand by foreign buyers for high end luxury developments.

It is up for redevelopment but Westwood Apartments along Orchard Boulevard will still go down in history for setting a new record for en bloc sales in terms of per plot ratio.

The owners will pocket between S$8 million and S$9 million each if the sale to YTL gets the green light from the Strata Titles Board.

Out of 50 units, more than 40 agreed to the deal and this was before the new en bloc rules kicked in early last month.

The site will be redeveloped into a residential condominium of between 50 to 80 units.

Francis Yeoh, Managing Director, YTL Group, says: “It would definitely be a super luxury brand for well heeled clients high net worth clients who expect the best of the best. So today we’re commissioning the Michelangelos and Leonardo Da Vincis of today to build something relevant for today’s population, not just a classic reference for yesterday’s people.”

YTL Group plans to rope in renowned architects to create an iconic development.

Mr Yeoh says: “I hope it won’t be torn down one day (because of another) en bloc sale!”

The sale price works out to S$2,525 per square foot per plot ratio.

This is a new record, eclipsing the previous peak of almost S$2,400 set by Ardmore Park.

To make a profit, some property watchers say the new units will have to sell at more than S$3,500 per square foot.

Michael Ng, Managing Director, Savills Singapore, says: “Really the international buyers, those who really hunt for trophy residential apartments around key major cities in the world are placing a lot of emphasis in Singapore. So I think in line with that we can expect prime property prices to continue to grow. Singapore (can) expect to have a lot of very high net worth individuals to invest here.”

Market watchers say the record price of S$2,500 per plot ratio bodes well for property prices here, but more importantly, the expected luxurious development will add more prestige to the prime area on Orchard Boulevard.

Source : ChannelNewsAsia - 27 Nov 2007

S’pore and Chinese cities move up the ranks due to strong currencies, inflation

The Republic is catching up with Asia’s leading cities in one area it probably does not wish to make strides in - expatriate cost of living.

While some of the region’s most pricey cities became relatively less expensive in the past year, Singapore, along with Beijing and Shanghai, have climbed the rungs in the latest cost of living survey by ECA International.

Singapore is listed as the ninth most expensive city in Asia - behind Seoul, Tokyo, Yokohama and Kobe, as well as Hong Kong, Taipei, Beijing and Shanghai. Worldwide, Singapore ranks 122nd, but that is 10 spots higher than in the 2006 survey.

In comparison, the Japanese cities and Taipei have all dropped in the global rankings in the past year, primarily due to a weaker currency, while Hong Kong stayed put at its 79th spot. This means that the gap is closing between the two ‘traditionally competitive’ locations, Singapore and Hong Kong, says ECA.

Conducted every March and September, the cost of living survey by the Hong Kong-based HR consultancy tracks a basket of 128 consumer goods and services commonly consumed by expatriates in more than 300 locations worldwide.

Multinational firms use the findings as a guide in determining expatriate remuneration packages and allowances. But the survey excludes significant items such as housing, utilities, car purchases and school fees because, ECA says, expatriate packages usually include separate compensation for these.

Apart from the two-percentage-point hike in the Goods and Services Tax in July and overall rising inflation, the appreciating Singapore dollar is also driving up costs in Singapore ‘in a significant manner’, says Lee Quane, general manager of ECA.

‘While this is good news when sending international assignees from Singapore, those companies who need to send employees into Singapore will now have to apply higher cost of living indices to salaries to guarantee their personnel’s spending power when in Singapore.’

Seoul, Asia’s most expensive city, has climbed one rung in the global rankings to seventh in the latest findings. Tokyo, on the other hand, has dropped out of the top 10 for the first time, moving from 10th to 13th.

A strengthening yuan against the US dollar, along with soaring oil, food and grain prices, have added to living costs in the Chinese cities, including ’second-tier’ ones. According to ECA, living costs for foreigners in Chongqing, for instance, have risen by 12 per cent, or twice as much as in Beijing.

Luanda in Angola emerged as the world’s most expensive city for expatriates. Two other African cities - Kinshasa and Libreville - also feature in the top 10. European cities, led by Oslo and Moscow, make up most of the top spots.

Source : Business Times - 27 Nov 2007

Some projects being launched overseas first, others struggle to finish showflats.

Developers here are holding back residential launches due to poor market sentiment - and in some cases are choosing to launch their projects overseas first as they wait for market sentiment here to recover.

Launches are also being held back as showflats are being delayed amidst a construction squeeze, market watchers said.

Major launches that can be expected over the next few months include City Developments’s Wilkie Studio and The Quayside Collection, Far East Organization’s Floridian and Cairnhill View, GuocoLand’s Goodwood Residences, the Lippo Group’s Marina Collection and Wing Tai’s Belle Vue and L’VIV.

While several upcoming projects have most of the necessary approvals to launch in place, some of them are being held back in anticipation of a market recovery, BT understands.

‘Currently, we don’t know if Singaporeans will be willing to fork out that kind of money,’ said one developer who has yet to start selling the company’s project in Singapore. However, the luxury condominium in question is already being marketed abroad, with about half of the units sold to foreigners at prices exceeding $2,500 per square foot (psf).

In a recent report, UBS Investment Research also noted that several projects have obtained permission to launch in the past three months, but the launches were delayed due to the weak market sentiment.

‘Some projects with permits to launch in August and September have been held back due to weak sentiments,’ said the investment bank’s research unit in a recent note. ‘We expect these to be launched in late November or early 2008.’

Others point out that while some of the delays can be attributed to the poor market sentiment, showflats for some of the projects are not yet ready.

‘Sentiment is one reason for the quiet market,’ said Ku Swee Yong, director of marketing and business development at Savills Singapore. ‘But even if the market sentiment is good, some developers still can’t launch their projects because the showflats aren’t ready.’

One example is Lippo’s Marina Collection, Mr Ku said. The showflat for the 124-unit project is yet to be completed, he said. The project was supposed to have been launched last month.

Some developers are choosing to launch their projects overseas first. United Engineers, which is developing the 40-unit Sui Generis in the Balmoral area through a joint venture with Japan-based Kajima Corporation, recently said that it has sold 17 apartments via overseas previews in Indonesia and Hong Kong over the past two months.

The Singapore launch, on the other hand, is only planned for next year although the showflat is ready, BT understands.

Similarly, other developers are also waiting for next year to market their projects.

The weaker market sentiment also means that fewer projects are applying for permits to launch.

In October, for example, just three new projects received permits to launch, UBS said - City Developments’s Shelford Suites, Hayden Properties’ Ritz-Carlton Residences and a condominium at Kim Yam Road by Frasers Centrepoint.

However, industry players are confident that the market will recover soon - bringing with it a whole slew of project launches in the new year.

Some projects that went ahead with their planned launches recently did well. At Ritz-Carlton Residences, which started selling over the weekend, take-up was good and prices hit $5,000 psf, sources said.

Source : Business Times - 27 Nov 2007

Mountbatten and Aljunied sites follow those at Scotts Rd and Tampines.

The Urban Redevelopment Authority has launched two transitional office sites at Mountbatten Road and Aljunied Road/Geylang East Avenue 1 for sale by tender.

This follows the recent sale of two transitional office sites at Scotts Road and Tampines for $219 per square foot per plot ratio (psf ppr) and $80.65 psf ppr respectively.

The land parcel at Mountbatten Road has a site area of about 2.12 hectares and can yield a maximum gross floor area (GFA) of 20,000 square metres. It is also next to the future Mountbatten MRT station.

The Aljunied Road/Geylang East Avenue 1 land parcel has a site area of about 1.88 ha and a maximum permissible GFA of 18,885 sq m. The site is adjacent to the Aljunied MRT station. Both sites will be sold on short-term leases of 15 years and are expected to be low-rise developments of about three storeys.

On estimated land prices, Cushman & Wakefield managing director Donald Han said: ‘We are likely to see developers taking a defensive play in terms of pricing.’

He added that this strategy was adopted by developers resulting in lower than expected prices for Tampines Concourse transitional site and the Marina View parcel B tender plot.

Given the Mountbatten site’s attributes, including a regular shape and the prospect of the future Sports Hub nearby, Mr Han expects bids to fall in the range of $140-150 psf ppr.

The Aljunied site is next to the MRT but the site is elongated and Mr Han believes this could be a constraint in terms of building design.

Noting that the neighbourhood is also relatively mixed, he said that bids for the Aljunied site could come to $120-130 psf ppr.

On likely bidders, CBRE Research executive director Li Hiaw Ho said: ‘Given the short tenure and rapidly rising construction costs today, such parcels would appeal to owner occupiers or a tie-up between an investor and an end-user.’

He also pointed out that there could be keen interest in the Aljunied Road/Geylang East Ave 1 parcel due to the existing MRT station and offices in the Paya Lebar micro-market.

Knight Frank director (research and consultancy) Nicholas Mak also highlighted that although the Mountbatten site was closer to the city, the Mountbatten MRT station may only be open between 2010 and 2012.

Adding that there is lack of amenities such as F&B premises, he estimates that the site could attract bids of about $27-28 million while the Aljunied Road site, which is in a relatively more established residential and light industrial area, could attract bids of $30.5-32.5 million.

Source : Business Times - 27 Nov 2007

Three prime sites - one zoned for commercial use and two for residential use - went on the market yesterday.

The Riverwalk near Clarke Quay is offered through a collective sale, said property firm Jones Lang LaSalle (JLL) which is marketing the project.

Market watchers reckon that the project could fetch about $700 million or $1,735 per square foot (psf). The 82,317 sq ft site has a 4.9 plot ratio. It can be redeveloped into a commercial building with a gross floor area of 403,351 sq ft, subject to approval and payment of development charge (DC) of about $3 million and premium for topping up the lease.

The Riverwalk is now zoned for residential and commercial use. It comprises 181 commercial units ranging from 54 sq ft to 20,161 sq ft, 118 apartments ranging from 818 sq ft to 3,821 sq ft and 290 parking lots.

‘The potential purchaser may redevelop the property into a part commercial/part residential development or a Soho development,’ said JLL regional director Lui Seng Fatt. ‘The options available for this site are extensive.’

Elsewhere, Cairnhill Mansion and a separate adjoining site are being offered for sale. Cairnhill Mansion is being offered through a collective sale and the adjoining site is being offered by an individual owner, said Knight Frank, which is marketing both sites.

The guide price for Cairnhill Mansion is $443.6 million. As there is no DC payable, the price works out to $2,800 psf per plot ratio (ppr). The guide price for the adjoining site is $139.4 million. Including a DC of about $16 million, this works out to $2,800 psf ppr. Together, the sites add up to 62,903 sq ft.

The successful developer of the combined sites could build 100 units averaging 2,000 sq ft each, Knight Frank said.

‘Strong demand for high-end, luxury condominium developments coupled with the rosy outlook for the property market, should increase the site’s attractiveness to developers.’

The Cairnhill area, being a stone’s throw from Orchard Road, is attracting super-luxury developments like The Hamilton and Ritz Carlton Residences.

Selling prices for these projects are expected to start from at least $4,000 to $4,500 psf, said Knight Frank. Recent launches like Hilltops are already achieving prices in the mid to high $4,000s psf, it said.

The tenders for both sites closes at 4pm on Jan 15 next year. The tender for The Riverwalk closes at 3pm on Jan 22.

Source : Business Times - 27 Nov 2007