Archive for category: Property Management

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

Ming Arcade at 21 Cuscaden Road has been put on sale via public tender. In a news statement issued by Savills Singapore, the sole agent of this sale this freehold commercial property includes 88 units, and an established development base of 55,046 sq feet which is equivalent to an area proportion of 4.54.

“Ming Arcade is a unusual chance for developers who want to buy a top project in the most sought-after spot in Singapore. We are sure of the fact that Ming Arcade will be sold at a price of greater than $140 million.” states Jeremy Lake, the managing director for capital markets and investment sales of Savills Singapore.

The price is $2,542 per plot ratio. Savills anticipates a huge demand from Asian ultra-high net-worth buyers as well as family offices, given this “palatable” pricing. This site is the sole commercial site that is available for sale located in the Orchard Road area, says Savills.

It is located 50m away close to the Orchard Road shopping belt, Ming Arcade sits on a 12,132 square feet site which is classified as “commercial” with the ability to control height up to 20 floors according to the most current Master Plan. According to Savills that the site could eventually be used for a hotel or residential property subject to the approval from authorities.

“The buyer will be able to adjust their plans and the ability to design an iconic mixed-use project on the best avenue located in Singapore,” says Lak.

The seven-storey structure was completed in 1982. The architectural style of the building received an award from the Singapore Institute of Architects Design Merit Award in 1983. In the 1980s, among the major features in Ming Arcade was the Rainbow Lounge which was the first theatre-disco nightclub as well as a music club in Singapore created by poet, doctor and award-winning author Goh Poh Seng.

The property has been surrounded by high-end residences and hotels, including the soon-to-be Artyzen Hotel, The Edition Hotel, Boulevard 88, Four Seasons Hotel and Four Seasons Park and St Regis Hotel & Residences.

Ming Arcade is also beside Tanglin Shopping Centre, which was sold as a group deal worth $868 million February of this year. Savills was the agent for marketing who helped broker the sale. “The successful sale of the Tanglin Shopping Centre brokered by Savills in February 2022 is a testimony to the strengths of the Orchard area,” says Lake.

The auction of Ming Arcade closes on December 15.

Read related post: The Marine Parade area could benefit as Paya Lebar Airbase moves to Changi sometime in the 2030s

A corner office building that is located in 51 Club Street is being offered for sale for an estimate cost of $120million through an expressions of interest (EOI) as per an announcement from CBRE on 17 October.

CBRE is the designated agency for marketing the property.

The five-storey 999-leasehold commercial building is built-up area of 28,876 sq feet which is equivalent to a psf price of $4,155 , based on the built-up area.

“It is located at an elegant location in the CBD and is expected to attract a broad variety of buyers, including family offices and companies, real estate boutiques and wealthy individuals,” claims Michael Tay, the head of capital markets at CBRE.

The property is situated on a 60m road with a dual-road frontage along Club Street and a roof terrace that overlooks The CBD along with the Chinatown skyline. The property was renovated extensively in the year 2011 and also has an exclusive parking area with five lots.

Corporates and foreigners are able to purchase commercial property without Extra Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD).

Investors can boost value by turning the rooftop terrace to a rooftop bar or restaurant, or retrofitting the second and fifth floors to be an elegant hotel or co-living space as per Clemence Lee, CBRE’s director of capital markets for the executive department at CBRE.

Club Street derives its name from the elite social clubs that lined the street from the latter part of the 19th century and into the early 20th century, where wealthy merchants and businessmen met. The historic district has since attracted families and wealth management companies and even associations during the morning hours. In the evening, the streets transform into a posh F&B and lifestyle hub. A brand new hotel with 19 floors is expected to be complete in the first quarter of 2023. It will add an additional 900 rooms to the region.

The government has unveiled an additional collection of property cooling measures, in which it aims to secure an prudent borrowing strategy in the face of rising prices of market rates. The latest collection of cooling measures attempts to reduce demand within the Housing & Development Board (HDB) sale market, in order to make sure that HDB flats that are resold remain affordable.

The new rules will go into effect on September 30.

The measures were issued in conjunction by HDB, The Monetary Authority of Singapore (MAS) and HDB, the Ministry of National Development (MND) and HDB in the early morning hours of September 29. The most recent series of cooling measures was announced just one year ago, on December 16, 2021.

Terra Hill enbloc acquired Terra Hill Condo for S$371 million ($276.1 million) through a joint venture.

The higher interest rate floor

In the context of these methods, MAS will assume higher interest rates when assessing the borrower ability to repay. The change reflects the increased interest rates that are anticipated in the medium-term in comparison to the period that was “exceptionally affordable rates” between 2013 and 2021.

The process will take place via two methods. For property loans provided from private banks MAS will increase the mid-term interest rate floor which is used to calculate the total debt service ratio (TDSR) and mortgage servicing ratio (MSR) by 0.5 percentage points.

This means that residential property purchase loans as well as loan equity from mortgages will have a mid-term interest rate ceiling at 4% per year (p.a.) in comparison to 3.5% previously, or the interest rate after.

The rates applicable to the non-residential property purchase loans as well as loan to withdraw mortgage equity have been increased up to 5% p.a. up from 4.5% previously.

This applies on loans to property purchase where there is an opportunity to purchase (OTP) has been granted after September 30. If there’s no OTP it will be applied to all sale and purchase agreements (SPA) which are executed at or after Sept. 30.

In the meantime, HDB will introduce an interest rate ceiling of 3% to calculate the acceptable amount of a loan for HDB home loans.

The floor on interest rates will apply to applicants in HDB’s Credit Eligibility (HLE) notice at or after September 30. According to HDB it does not impact the actual HDB discounted interest rate which will remain the same with 2.6% p.a. between Oct. 1 and Dec. 31.

“The new rates for the medium-term will ensure that homeowners borrow with caution to fund the purpose of property purchase in the high rates of interest,” reads the joint statement. “This is essential since property loan commitments are for the long term that can be the household’s biggest debt. Certain borrowers might need to adjust their plans for property loans but they’ll be better able to repay these loans in the event that the interest rates increase.”

Lower LTV limit

In addition the government will also reduce the maximum loan-to-value (LTV) amount for HDB mortgages by 80% instead of 85% before. Lower LTV limit will be applicable to flat-new applications as well as applications for resales after Sept . 30.

As per MAS, MND and HDB the new rules are not likely to affect those who are first-time homebuyers and low-income buyers because of the “significant home loans”.

The updated LTV limit is not applicable to loans made by financial institutions that are private where the LTV limit is still 75%.

Additionally, a 15-month waiting period will be set on private residential property owners and previous homeowners of residential private properties to purchase a subsidised HDB flat to satisfy low demand on the HDB marketplace for resales. The wait-out period won’t be applicable to those aged 55 years or older who have moved to a smaller or four-room flat that is being resold. This policy is said to be temporary that will be reviewed in the future, based on housing market and the conditions.

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.