Private non-landed housing prices increased 0.4% year on year in August

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Terra Hill condo floor plan

The Singapore Residential Price Index (SRPI) increased by 0.4% m-o-m in August decreasing from 1.1% m-o-m growth recorded in July, based on the flash estimates released on September 28.

Terra Hill condo floor plan is equivalent to a land rate of $1,355 psf ppr and $1,318 psf ppr, including a 7% bonus balcony area in the GFA

The SRPI which is monitored by the Institute of Real Estate and Urban Studies (IREUS) located at NUS. National University of Singapore (NUS) tracks price changes of residential private properties within Singapore. The index is primarily based on the price of 759 residential developments which were completed between October 2003 until September 2021.

Prices for properties which do not contain smaller units within the Central region recorded a decline in the region of 0.6% m-o-m in August which was a reverse of that 1.1% growth recorded in July. Prices for properties that do not include small units in regions outside of Central recorded a 1% increase m-o-m during August slightly lower in comparison to what 1.1% increase recorded the month prior.

The prices of smaller properties did not change in August, despite that 0.8% increase recorded in July. IREUS defines small units as those with an area of 506 square feet or less.

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The Marq on Paterson Hill has sold a four-bedroom unit for $13.38 million

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Terra Hill launch price

A new record-breaking loss took place in The Marq on Paterson Hill in which the 3,089 square feet, four-bedroom apartment located on 20th Floor went on sale at $13.38 million ($4,331 per square foot) on the 7th of September. The unit had previously sold for $21.13 million ($6,840 per square foot) in November 2011. This means that the seller suffered the loss in the amount of $7.75 millions (36%), which amounts to an annualized decline that was 3.9% over almost 11 years.

Terra Hill launch price is equivalent to a land rate of $1,355 psf ppr and $1,318 psf ppr, including a 7% bonus balcony area in the GFA.

This is a record-breaking loss for the luxury condominium in addition to the largest loss of condos in the week from September 6 to 13. The previous record was set by the sale of three-bedroom apartment of 3,089 square feet on the eighth floor , for $10.28 million ($3,328 per square foot) in December of 2017. The property was bought at $15.2 million ($4,920 per square foot) on September 12, 2012. In the end, the seller was able to recover $4.92 millions ($32%), which is equivalent into an annual loss in the range of 7.2% over five years.

The Marq is among the luxurious condos located situated in Paterson Hill and Grange region. But, according to the transaction records collected from EdgeProp Singapore, The Marq has the highest average selling price psf-psf among condos within the area, having an average of $4,600 per square foot.

None of the developments in the area have had their median selling prices surpass the threshold of $4,000 per square foot. The nearest is Tomlinson Heights at $3,808 psf. In addition, Grange 1866 and Paterson and the Paterson as well as Paterson Suites are priced at approximately $2,988, $2,446 and 2,615 psfrespectively.

However, two resales at the condominium Camelot By The-Water placed at high on the list of most profit-making resales report for the week in our review.

The highest-profitable deal was the 2,745 sq. ft. four-bedroom apartment located at the top of the six floors, for $5 million ($1,822 per sq ft) on September 9. The unit had previously earned $1.98 million ($721 per square foot) during June of 2003. The seller made the seller $3.02 millions (153%), which represents an annualized gain in the range of 4.9% over 19 years.

Also on September 9th on the 9th of September, a 3,240 square feet three-bedroom apartment in the basement was offered to a buyer for $5.2 million ($1,605 per square foot). The unit was purchased at $2.96 million ($914 per square foot) on March 7, 2007. In the end, the seller made the $2.24 million (76%) profit, that’s an annual gain in the range of 3.7% over 15 1/2 years.

Camelot By-The-Water is a 99-year leasehold condo located in Tanjong Rhu in District 15. The development is located next to that of the Singapore Sports Hub, and offers an unobstructed view of The Kallang Basin.

Camelot By The Water was completed in the year 2000. The condo has had excellent numbers when it comes to the market for secondhand units over the last few years. Based on data from EdgeProp Singapore, resale prices at the condo have experienced an increase that has been continuous over the last 15 years, rising from $915 per square foot in August 2005 to $1,694 by August 20, 2022.

The most lucrative resale deal thus far in Camelot By-The-Water is for a 5,834 square foot duplex penthouse. The unit was sold for $9 million ($1,543 per sq ft) at the end of May in 2001 after having been purchased at $3.73 million ($640 per square foot) during June of 2000. The seller made an all-time high profits in the amount of $5.27 millions (141%), which is equivalent to an annualized gain of nine% over the course of 10 years.

The third-highest profit resale of the week took place on the Esta Freehold condo located in The Amber Road residential neighbourhood in District 15. On the 6th of September the 1,399 square feet three-bedroom apartment was sold to a buyer for $2.86 million ($2,044 per square foot). The property was purchased for $946,000 ($676 per square foot) at the end of August. The seller made an income in the amount of $1.91 million (202%), or an annualized gain that was 7.1% over 16 years.

The area’s popularity has to do with its close proximity to schools, such as Tanjong Katong Primary School, Tanjong Katong Secondary School and Tanjong Katong Girls’ School. There is the Canadian International School (Tanjong Katong Campus) is also within the vicinity. There are numerous amenities in the area, including The Chinese Swimming Club and two MRT stations along the upcoming Thomson East Coast Line -the Tanjong Katong and Marine Parade.

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Regency Park Penthouse sold at new high price of $8.6 mil

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Terra Hill showflat location

The week from August 30 through Sept 6 was an unprecedented profit at Regency Park in District 10’s prime area. This was also the highest profitable resale during the week.

A penthouse measuring 6,415 square feet located on the 24th floor purchased at $14.1 million ($2,200 per sq ft) on August 31. The penthouse previously sold for $5.5 million ($857 per square foot) on April 28, 1998. The seller made the record-breaking income in the amount of $8.6 millions (157%) on the sale, which is an annualized profit in the range of 3.9% over 24 years.

Terra Hill showflat location in a unique hillside plot offering its residents a spectacular view to the south.

This resale transaction that is profitable surpasses the previous record of the 3,649 square feet unit on the 12th floor , which was sold at $7.3 million ($2,014 per square foot) in April of 2011. The unit was purchased at $2.8 million ($781 per square foot) on July 3, 2003. This seller took home the $4.5 million profit, which is an annual gain that was 13% over the course of seven years.

Regency Park is a freehold condominium situated along Nathan Road. The development of 292 units was completed in the year 90. The condo is situated in the area that includes the Bishopsgate as well as Chatsworth Good Class Bungalow area and is also close the Great World City shopping mall and the retail outlets along Orchard Road.

The second highest-profitable transaction of this week was the sale of a 1,970 square feet four-bedroom apartment located at Rivergate. The property was sold in exchange for $5.7 million ($2,894 per square foot) on the 1st of September. The unit was purchased at $3.5 million ($1,800 per sf) on September 9, 2009. The seller came off with an $2.2 million (61%) profit, which is equivalent to an annual gain that was 3.7% over 13 years.

Rivergate is a condo with freehold which was completed in 2009. The project has 545 units, which is two-to-four-bedroom apartments which span from 1,023 sq ft to 3,918 sq feet. Rivergate is located on Robertson Quay and is beside the Singapore River. The development is directly across from it. is the planned luxury condominium Riviere, which is being developed by Frasers Property.

This year, the highest-profit resale deal in the Rivergate area Rivergate included the purchase of 1,894 square ft four-bedder at $5.2 million ($2,739 per sq ft) the 6th of June. In the past, the unit sold for $2.6 million ($1,394 per sq ft) at the end of June in 2009. This means that the seller earned an income that was $2.5 million. This amounts into an annualised gain that was 5.3% over 13 years.

Based on resales data collected from EdgeProp Singapore, Rivergate commands one of the most expensive prices per square foot in the area. The property has an average selling price of $2,734 per square foot in the month of June. The only exception is that Rivere is able to command a higher average selling price of around $2,829 per square foot. Comparatively, nearby freehold condominiums like Roberson 100, Martin No38 and Starlight Suites recorded average selling prices of $1,973, $2.622 and $1,959 per square foot respectively.

On the other hand the least profitable resale deal this week was of a 947 sq . ft 2 bedroom unit in Scotts Square. The unit was sold at $3 million ($3,252 per sq ft) on August 30. However, it was purchased at $3.8 million ($3,969 per sq. ft.) during August 2007. So, the seller suffered the loss of approximately 680,000 (18%), which amounts to an annualised cost that was 1.3% over 15 years.

Property research provided by EdgeProp Singapore shows that prices at Scotts Square have not seen an increase in value in the last few years. The prices at the condominium began to decline from $3,975 per sq ft in August 2008, to an average of $3,370 per square foot in August 2017. Prices have remained stable over recent years and only grew slightly to $3,576 per month on a monthly basis.

Thus far, the most unsuccessful deal on the books at Scotts Square was the sale of a 1,249 sq . ft 3-bedroom apartment to $3.7 million ($2,923 per sq ft) in February of 2017. The unit was previously sold for $5.2 million ($4,171 per sq ft) during August 2007. In the end, the seller lost $1.6 million (29%), which is equivalent to an annual losses that was 3.7% over nearly 10 years.

Scotts Square is a freehold condominium located on Scotts Road in prime District 9. The building was completed in. The 338-unit project includes the mix of one-to three-bedroom units ranging from 624 sq feet.

The development is situated centrally within centrally located in the Orchard Road shopping belt. The nearby developments are Shaw House, Singapore Marriott Tang Plaza Hotel, Ion Orchard and Ngee Ann City-Takashimaya Shopping Center.

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Lentor Modern preview on Sept 2 as prices start from $1,880 psf

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Terra Hill Condo Yew Siang Road

Lentor Modern, GuocoLand’s integrated development within the Lentor precinct will be launch for public previews on September 2. As per the developer this is the first condominium that is private opening in the Lentor neighborhood in two decades, and the only mixed-use integrated development within the neighbourhood.

Terra Hill Condo Yew Siang Road connectivity around the neighbourhood is enhanced. An MRT station is right at the corner from Terra Hill Condo.

Therefore, Lentor Modern is targeted to change the neighborhood. “We are proud to be an developer who can identify the potential, visit the location, and later transform the place,” says Cheng Hsing Yao GuocoLand’s CEO. GuocoLand.

It is situated on located on a 1.7ha site, Lentor Modern is an 99-year leasehold development that includes three 25-storey residential towers that comprise 605 units. The towers are located over the 96,000 square feet mall which will comprise an 12,000 sq ft grocery store and a 10,000 square foot childcare center, as well as F&B and retail options. It will also be connected to Lentor MRT Station on the Thomson-East Coast Line.

Lentor Modern offers residents a array of amenities within reach, says Dora Chng, general manager (residential) at GuocoLand. “Just by using the lift from their residence, they are able to access their MRT station, walk to the cafe and drop their kids off at the center for childcare and then go to the grocery store to stock their pantry shelves and much other things,” she says.

The Residences in Lentor Modern will include one-bedroom units that measure 527 sq feet, two-bedroom units that range from 678 to 732 sq feet 3 bedroom units ranging between 969 and 1,130 sq feet as well as four-bedroom units of 1,528 square feet. Two- and three-bedroom units comprise the majority of the units, with the rate of 231 unit (38%) and 248 units (41%) respectively.

Prices start at $1,880 per sq ft. A one-bedroom apartment starts at $1.088 million while a two-bedroom home starts at $1.388 million and a three-bedroom unit starts at $1.878 million, and a four-bedroom apartment starting at $2.918 million. Bookings for sales are expected to begin on September 17.

Two- to four-bedroom apartments in Lentor Modern will include a “flex room” where residents can modify to meet their specific preferences, like making it into an office in the home as well as a walk-in wardrobe or as a space for storage. The units will come with appliances from Smeg as well as bathroom wares from Hansgrohe as well as Roca.

The sanctuary is inspired by nature

One of the main features of Lentor Modern will be interconnected water bodies with a 200m length. This pays tribute to a freshwater stream that used be present within the site. The water bodies are a part of the garden pavilions and the pavilions located on the 4th floor.

Other facilities include two lap pool, a leisure pool, jacuzzi and spa pool Two signature lawns and tennis courts. The Grand Clubhouse has two functions rooms, a lounge for business as well as a games room and dance studio. Outdoor and indoor gyms meet the needs of exercise enthusiasts. Pavilions and dining options offer residents entertainment areas and study/work areas. Unique features include camping tents and an allotment gardening area for those who want to exercise the green fingers.

A sky club located on the 14th floor of every residential tower provides an environment that is open for relaxing and relaxing. It will feature two dining areas, two naturally ventilated work areas and a club lounge that is air-conditioned.

Lentor Modern is targeted for completion by 2026.

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Bukit Timah Plaza is up for sale at a guide price of $11 mil for a strata commercial unit

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Terra Hill condominium

A commercial strata unit that has permission to use it for restaurants in Bukit Timah Plaza has been put up for sale through the expression of interest. According to the sole marketing agency CBRE the unit is offered at a an estimated cost of around $11 million.

Terra Hill condominium development will feature around 271 units to benefit from its strategic location on a unique hillside plot offering its residents a spectacular view to the south.

The property is located in Basement Two that faces the central plaza of this retail development. It is fronted by 20m and has an area totalling about 3,391 square feet. It is currently completely leaseable.

Bukit Timah Plaza is a mixed-use development which was completed in the year 1979. It is situated at the end of an island site that is bordered with the Pan-Island Expressway, Jalan Anak Bukit and Upper Bukit Timah Road. This development is made up of retail block as well as two apartment blocks , dubbed Sherwood Towers and Sherwood Towers, which comprise 269 units of residential homes.

Clemence Lee Clemence Lee, Clemence Lee, executive director for capital markets Singapore Clemence Lee, executive director of capital markets, Singapore at CBRE is aware that strata-commercial properties within the Beauty World sub-precinct are limited in terms of availability. “Investors recognize that the supply of commercial strata properties will be restricted in the near future, when authorities start to limit further strata subdivisions of commercial components of properties that are located in the central locations,” he adds.

In this regard there is a lot of enthusiasm for the property from foreign and local buyers, including wealthy individuals, family offices , and owner-occupiers.

Additionally, Lee views that the revitalization taking place within Beauty World will likely boost the capital appreciation and rental rates for properties in the region over the long-term to medium term.

The upcoming projects include a landmark mixed-use development being developed by Far East Organization and Sino Group on Sino Group’s Jalan Anak Bukit Government Land Sales (GLS) site. The joint venture partners were awarded this 3.22ha site, located at the intersection between Upper Bukit Timah Road and Jalan Jurong Kechil, with the bid for $1.03 billion ($989 per square foot, per plot proportion) on August 21, 2021. The development will consist of an office tower and residential units, as well as serviced apartments and an upgraded transport hub.

There’s also an upcoming site in the 2H2022 GLS Program located in Bukit Timah Link. This will produce the equivalent of 160 housing units.

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Singapore office market believe that CICT is well positioned to ride on the office upcycle central commercial portfolio

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Read related article: Sevens Group buys four strata-titled units for $10.3 mil

Sevens Group buys four strata-titled units for $10.3 mil

DBS Group Research analysts Rachel Tan and Derek Tan have kept “buy” on CapitaLand Integrated Commercial Trust (CICT) since they see the REIT benefiting from the reopening of international and domestic borders.

It is viewed as a major proxy for the reopening of play.
“We think CICT could provide an estimated 6-% 2 year distribution for each unit (DPU) compound annual growth rate (CAGR) which is one of the highest growth rates among its competitors,” the analysts write.

With the strong growth trend within Singapore’s office market, CICT is in a good position to benefit from the Singapore office sector, analysts believe that CICT is well-positioned to benefit from the upswing in office prices due to its position as its largest Singapore REIT (S-REIT) and having central commercial assets in Singapore.

Furthermore, CICT is one of the few S-REITs with the potential to acquire recently finished top Singapore office assets, such as CapitaSpring’s remaining 50% part of CapitaSpring and potential additional commercial Singapore assets that are in the pipeline of sponsors.

Regarding the Mercatus portfolio, analysts believe CICT as the “strongest rival” of local retailers.

“[TheMercatus portfolio Mercatus portfolio could benefit CICT through a greater runway of assets since it expands the base of malls in Singapore that can withstand the rigors of suburban life. within Singapore,” they write.

In their research, analysts have remained with their price target of $2.70 this implies that the price would be 1.3x at 1 Standard deviation (s.d.) of the CICT’s historical range.

“Despite any potential headwinds to the company in the near term We are among the first to focus towards its future growth prospects resulting the optimisation of its portfolio and recycling of assets,” the analysts write.

“The most significant risks in our opinion include a slowdown in the economy and a long recovery and a weakening of sentiment. The repercussions of new outbreaks of the pandemic may impede the recovery of CICT,” they conclude.
Units of CICT ended the day 1 cent lower , or 0.47% down at $2.11 on August 15.

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One Pearl Bank holds twin 39-storey 774-unit project

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Read also: Final figures released as HDB resale price increase to 5.3%

Final figures released as HDB resale price increase to 5.3%

The construction of One Pearl Bank is in full swing and expected to be completed at the end of next year. The twin 39-storey 774-unit project located at the highest point the hill of Pearl’s Hill is designed by Serie+Multiply which is a joint venture of the London-based Serie Architects and Singapore-based Multiply Architects. The curving façade of both towers pay homage to the horseshoe design of the previous Pearl Bank Apartments, which was the highest residential building in Singapore at the time it was completed in the year 1976.

CapitaLand acquired the former 99-year leasehold Pearl Bank Apartments in an arrangement that cost $728 million in February 2018. The company is currently building a brand new landmark on top of Pearl’s Hill that will be more tall than the former Pearl Bank Apartments. With a height of 178m, One Pearl Bank will be the tallest residential building located in the Outram Chinatown district of Singapore’s Central area of Singapore.

The units start at the second floor of the towers. The towers are elevated 27m above the street level, it’s equivalent to the 9th or 10th floor of a typical tower. Due to its elevation the units will have views. Even the mid-level units on the 18th floors will have panoramic views, according to John Cheong, Huttons’ associate director of the district and project lead in charge at One Pearl Bank. Cheong was an invited speaker at EdgeProp’s NDP Master Plan Master Class webinar in the Outram region on the 6th of August.

The units facing north will offer 180deg views towards Clarke Quay and the city skyline The south-facing units be able to see Sentosa Island and the sea Cheong adds Cheong.

One Pearl Bankis located within a 5-minute walk of the planned Outram Park MRT Station. CapitaLand will build an enclosed walkway to protect against the harsh weather. Accessibility will be significantly improved by having Outram Park MRT Station designated as an interchange point for the three MRT routes: North East, East-West and the soon-to-be Thomson-East Coast Line, which is expected to go into operation in the near future.

The boundary of Pearl’s Hill City Park, there will be a brand-new gate that will lead directly into the park. The gate will be secured to ensure that the gate will be only accessible to those who live at One Pearl Bank. The benefit for residents of One Pearl Bank is that Pearl’s Hill City Park is getting a makeover with an addition to the park of kids’ play area and social space.

One of the most unique features is the sky allotment garden idea that CapitaLand will be introducing on the the One Pearl Bank. The bank will have 18 allotment gardens in the sky on various floors of both towers. They will have around 200 plots for residents to plant their own vegetables, herbs, and fruits. The idea is to foster bonds of community among residents.

Over 500 trees spread across 35 species and over 135,000 trees, plants and flowers that will be planted around One Pearl Bank. The greenery will cover up to 60,000 square feet (75%) of the total site area.

CapitaLand is also introducing an idea called the “Renovation-Zero concept” in which new owners are able to move in right away without having to do any work. The kitchen will be fully equipped with a swivel cabinetry and table developed from the Italian company Ernestomeda.

All kitchen appliances will come made by top-of-the-line Swiss label V-Zug. In everything from kitchen sinks and faucets all the way to bathroom tiles, flooring The materials were chosen for their longevity and easy maintenance, according to CapitaLand. The developer has provided LED lighting on all of its units. Through”The “Renovation-Zero Concept” owners are able to move into their units right away or rent their units at the time of handover without any hassle.

Its completion is scheduled by 2023’s end the Owners of One Pearl Bank will have the opportunity to take advantage of the capital gain that comes from URA Master Plan 2019. URA Master Plan 2019, that details plans to revitalize and transform central area. Central Area.

The opening is part of the brand new Thomson-East Coast Line on the entrance of One Pearl Bank; the new Singapore General Hospital (SGH) facility, set to become the most prestigious medical facility in Singapore and The Greater Southern Waterfront, with its 10-km promenade along the coast and the possibility of adding more amenities to the area. From the Outram region, Chinatown, the CBD, Orchard Road, Robertson Quay and Tiong Bahru are all within the distance of a few minutes and MRT ride.

Cheong from Huttons expects a potential large rental pool that originates out of Huttons sees a potential strong rental pool coming from the SGH campus over the near future as the campus is flooded with medical experts. In the past, prior to One Pearl Bank, the most recent new development was launched about a decade ago . It was the Dorsett Residences, a 68-unit complex that was launched in October of 2010. All units were purchased within a single day for an average of $1,800. The project, which is connected with Dorsett Hotel, was completed in 2013.

One Pearl Bank was introduced in July 2019 and has had over the 84% sold as of today with an average of $2,425 per square foot. The development offers a broad selection of different types of units that range from studios, one-bedroom units and even sky villas with four bedrooms. There are just four basicx sky villas on the 38th level, featuring four bedrooms each, with sizes of 2 626 sq ft up to 2,788 sq feet. Prices for sky villas start at $8.42 million ($3,206 per square foot).

Studios start at $1.229 million One-bedroom units begin at $1.664 million and two-bedroom units up to $1.917 millions, and three bedders start at $2.866 million, and four-bedders cost at minimum $3.437 million. Prices start at $2,416 per square foot.

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Sky Everton six-bedroom unit was sold for $7.59 million

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Read related post: Actual sale site of Sceneca Residence at Tanah Merah Kechil Link

Actual sale site of Sceneca Residence at Tanah Merah Kechil Link

A penthouse with six bedrooms located at Sky Everton fetched a new price per square foot. The 2,228 square feet unit was offered through developer SL Capital — an entity that is a combination of Sustained Land, Ho Lee Group, Kwong Lee Land and Penjuru Capital — for $7.59 million on the 26th of July which is equivalent to $3,406 per sq ft.

Sky Everton is an open-hold development that is situated in Everton Road in District 2. The development consists of a 36-storey building which will be home to 262 residents. The units are comprised of one-to four-bedroom units with sizes ranging from 463 sq ft up to 1,345 sq feet. Additionally, there are four penthousestwo five-bedders that measure 1,819 sq ft , and two six-bedders that measure 2,228 square feet.

The development went on sale in June 2019 with over forty% of homes sold on the launch weekend, with an average cost of $2,500 per square foot. Based on analysis of EdgeProp Singapore’s research tool the development has seen regular sales and prices have steadily increased by an average $2865 psf during the past 12 months of August.

The penthouses of three in Sky Everton were sold this year which included the penthouse with 2,228 square feet that was sold on the 29. The second 2,228 sq ft penthouse was sold on March 31, at $7.11 million ($3,189 per square foot) which was the most expensive transaction ever reported by Sky Everton at the time. In addition, one of the two penthouses of 1,819 square feet was sold on January 30th for $5.69 million ($3,127 per square foot). Sky Everton is within walking distance from the planned Cantonment MRT Station on the Circle Line and is scheduled to be completed in 2023.

Another planned development, One Bernam, also had a new psf highest after a single-bedroom unit that was 452 square feet at the top of 26th was bought through developer developer to a buyer for $1.37 million ($3,039 per square foot) on July 25.

One Bernam is an 99-year leasehold mixed-use project situated on Bernam Street which is located just off Anson Road in District 2’s Tanjong Pagar area. This is a joint-venture venture that is a partnership between MCC Land and Hao Yuan Investment. Alongside 351 housing apartments, One Bernam comprises a two-storey retail platform comprising 15,726 square feet as well as an upper floor that houses serviced apartment units that have 13 keys.

The residences at One Bernam was launched to the market in May of last year. So far, 121 homes (34%) have an average price of $2,467 per sq ft according to caveats that were lodged. The units in One Bernam comprise a mix of oneto three bedroom unitsthat range in size between 452 and 1,421 sq feet. There are two penthouses with three bedrooms that measure 1,744 sq ft and 1,948 sq ft and the biggest penthouse is home to five bedrooms and covers 4,306 square feet. It is situated just a few steps away from Tanjong Pagar MRT Station on the East-West Line.

In the meantime, One Meyer -an apartment that is freehold in Meyer Place within District 15, which is located on the Marine Parade — saw the lowest price of cost as a 926 square feet 3-bedroom apartment was purchased to a buyer for $2.24 million ($2,419 per square foot) on the 28th of July. The sale marks the final residence at the boutique development of 66 units through Sustained Land, which means it’s 100% sold. The project, which went up on the market in March 2019 it saw its units being sold for an average of $2,580 in the last three years.

The units at One Meyer are comprised of smaller one-, two and three-bedroom homes in sizes that range between 614 and 1,033 sq feet. The project, which is scheduled to be completed by mid-2023 and is situated right between Katong Park and Katong Park MRT Station on Thomson East Coast Line, set to begin operating in 2024.

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Cost of construction materials in Singapore is expected to increase by 5%-8% this year

Read more: Residential sales down 64% in June due to lack of new launches

Residential sales down 64% in June due to lack of new launches

The ongoing shortage of labour and the rising costs for construction materials are the constant challenges facing the construction industry this year, as per market research by International project management company Turner & Townsend.

The consulting firm notes that the mood between construction firms that are based in Singapore in the current year has been an optimistic one due to the economic recovery that is spreading and an ongoing pipeline of private and public sector projects.

However, the consulting firm states that the uncertainty around supply chain issues as well as inflationary pressures are increasing the risk project participants are exposed to.
Construction outlook close to levels prior to pandemic

In the words of Khoo Sze Boon, managing director of Singapore and Vietnam of Turner & Townsend, construction activity in Singapore is at levels that are comparable to pre-pandemic. The industry ended 2021 with a booming performance with construction demand in the amount of $29.9 billion. states. This represents an increase of 42% more than the previous year.

Public sector investment projects like infrastructure projects and residential development made up around sixty% of the total work load last year.

This year it is predicted to continue to be responsible for about 40% of the work load according to Khoo. It’s too early to know whether the latest cycle of property cooling measures, which were introduced in December 2021 can dampen the demand for residential developments by private developers in the coming year, he adds.

“Most construction companies in Singapore entered 2022 with the goal of getting the majority of their projects free from the delays in project timelines which have plagued them for the past two years” Khoo says. Khoo. “For the construction companies this means they have more capacity to begin taking on new projects in the coming year.”

He says that the projects that were facing delays in the construction phase in 2020-2021 are now expected to be completed by the time scheduled. This is around eighty% of the totality of construction projects currently underway in Singapore. Some of the remaining construction projects that have some issues comprise a mixture of construction and infrastructure projects, he adds.

Based on the data of The Building and Construction Authority, the total construction demand for 2022 is predicted to be between $27 billion and $32 trillion. The figure is based on projects which are scheduled to receive funding this year, rather than payments made in installments to ongoing projects, according to Khoo.

Research conducted by Turner & Townsend estimates that the demand for public sector construction this year could be between 16% to $19 billion in contrast to $17.8 billion in construction spending in 2021. In contrast, private-sector construction projects could be worth between $11 and $13 billion, as compared to $12.1 billion in the previous year.

“Based upon our interactions with construction companies in Singapore it appears that most companies are interested in exploring commercial opportunities in the coming year. But I do believe that the pandemic has altered how stakeholders (in construction] interact with vendors and contractors,” Khoo says. Khoo.

He says the capacity of the majority of companies is over-extended, so the majority of construction firms will be more selective in deciding which projects to tackle this year.
Cost pressure that persists

Instretched border controls at the peak that the disease was raging of Singapore in 2021 resulted in the construction industry suffered from restrictions on the movement of workers who were migrant workers to the country. This led to a deterioration in the construction industry which eventually led to project delays and an increase in costs for labour.

The government came in by introducing a scheme to retain workers in September 2021 which “somewhat reduced” the situation in the workplace, Turner & Townsend says. However, the program ended February of this year.

“In the 2022-23 year and after it will be a long time before we can handle the shortage in resources (in the construction industryas well as the labour shortage likely to continue for a long time,” the consultancy notes in its report on the market.

Yet, Khoo notes that in general, the availability of labour migrants has improved recently, and has contributed in easing the strain on the workforce that construction companies are experiencing. “Overall the labor situation is certainly better when compared to last year’s situation,” he says.

The construction industry in Singapore is in a difficult spot because of the country’s dependence on imports for all construction materials. Khoo says that supply chain problems are still in place despite an increase in global demand, and supply chain bottlenecks and shortages continue to raise the cost of construction materials.

“In general over the course of 2021 we witnessed an increase in the cost of construction materials that was approximately 15% according to an array of construction materials we monitor. However, this year we expect an increase of around 5-% or 8%,” says Khoo.

For instance, the cost of steel bars rose 36.7% from $808.52 per tonnes in December 2020 to $1,105.5 per ton by December 2021. In the same way, the price of cement increased from $85.7 per tonne in December 2020 , to $97.5 per ton in December 2021, which is an increase of 13.8% increase.

According to Khoo the report, this could result in an upsurge in basic price of construction within Singapore over the next couple of months. “Pre-Covid the mass-market residential development could have the construction cost to be between $260 to $280 per sq ft. However, based on the rising price of building materials, it is possible that we may have the base construction costs rise to $300 per sq ft, depending of the site and the kind of project” he adds.

The industry is changing

In order for the construction industry to successfully tackle these challenges it is necessary to shift to a more cooperative attitude between contractors and other clients and stakeholders like developers or architects according to Khoo.

Typically, contractors begin to become more involved in a project at the construction phase. this happens after the client has collaborated on the layout of the project with architects as well as other consultants.

But, Khoo claims that it must develop into more of a collaborative approach to contracting which ensures that all stakeholders, such as contractors and builders are fully engaged in every aspect of the process.

This will enable us to manage risk more effectively and in a way that is fair across all parties. In the long run this method will increase the strength that the construction industry to stand up to the volatility of markets, he adds.

Looking forward, Khoo says that much of the foundations to ensure that the construction sector can flourish in the long-term is set out within the Industry Transformation Map, the government’s strategy to transform the industry of built environment, which includes the construction industry and incorporates technology to make it more interconnected.

Another aim of the map’s transformation is to educate 80,000 new professionals to work in the built environment industry. This emphasis on the development of capabilities in the construction sector is essential for ensuring a quicker rate of the adoption of technology and digitalization and the widespread utilization of more efficient methods of construction, within the local construction industry, according to Khoo.

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For sale is a ground-floor commercial unit with 27-metre dual road frontage along Greenwood Avenue and Hillcrest Road

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Read related article: 20 strata townhouse that are linked to the edge of Thomson Plaza

20 strata townhouse that are linked to the edge of Thomson Plaza

A ground floor F&B property at 2 Greenwood Avenue in prime District 11 is up for sale at a cost of $15 million. The freehold property will be offered in an exercise to express interest and is currently being marketed by CBRE.

The property is located in the highly sought-after Bukit Timah neighborhood located in the prestigious Bukit Timah neighbourhood, the property is the ground floor commercial component of a semi-detached two-storey house. It has excellent street-level visibility because of its 27-metre-long dual road frontage on Greenwood Avenue and Hillcrest Road.

In accordance with the current Master Plan, the entire structure is classified as “residential with commercial at the first storey”. The commercial space is licensed to be used as a restaurant and is currently being leased to an Mediterranean restaurant. It covers a total strata space of 2,670 sq feet.

“Within the entirety of the Hillcrest zone of development in the Bukit Timah area of planning just a tiny fraction of 27 shophouses have been designed to commercial uses on the first floor. In addition, with the URA not giving new F&B approvals in the area, buildings with approval for restaurants are limited,” says Clemence Lee executive director of Capital Markets, Singapore, at CBRE.

So, he anticipates that the property to draw a lot of purchasing interest from both local and foreign buyers with high net worth families, as well as F&B operators. Foreign buyers are eligible to purchase the property and there will not be additional buyer’s or seller’s stamp duty charged upon this purchase.

The new owner has the possibility of subdividing the unit into three separate unitsdue to its large frontage. This will allow owners to rent more units, and thus increase rent, according to Lee.

“Given the dearth of retail and malls in Bukit Timah area, smart investors recognize the huge need for premium restaurant spaces in the region. There isn’t a additional retail outlet that is expected to be built in the vicinity,” he says.

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