Read more: Private residential property owners will be given a 15-month period to purchase a non-subsidised HDB resale flat
It’s been 18 years from the time Colin Low assumed the CEO position of the statutory board Singapore Land Authority (SLA). The 44-year-old was a different role before, that of the CEO for Frasers Hospitality Asset Management and Frasers Hospitality Trust Management, the manager of SLA’s listed in Singapore Frasers Hospitality real estate investment trust (REIT) for the period from July 2019 through April 2021.
With an $1.9 billion portfolio (as as of September of this year) The REIT has 14 assets as well as fourteen master lease contracts. They are spread across six countries, starting from Dresden, Germany, to Edinburgh, Glasgow and London in the UK and over the border to Kobe and Kobe in Japan, Singapore, Malaysia and Sydney and Melbourne in Australia.
“Running an REIT was about maximizing an increase in the amount of units distributed to participants, which was mainly the shareholders of the REIT” Low explains. Low. “When Covid hit, it was a major and unprecedented pandemic. A lot of people started to think about their lives. This was also true for me. And when I got the call for this job I was delighted to be amazed.”
SLA is the custodian of State property and properties and has two-700 structures and 11,000 ha (110 million square meters) of land. This is roughly 15% of the land across the island. “SLA offers a broad range of services and is focused on Singapore,” says Low. “Once you are a part of the public sector you feel an obligation to serve as those who are involved are everyday Singaporeans. Therefore, you must consider what’s best for the people in your vicinity.”
‘Balancing act’
Sometimes, it’s also about taking care of public concerns. An example of this is the recent outrage that was triggered by an Housing Development Board’s (HDB) environmental impact assessment report that recommended the clearing of 31.2ha of forested land to create the construction of the new Bayshore precinct. HDB posted their report online on November 1 and invited feedback from the public up to Nov 29.
Bordered with Upper East Coast Road, East Coast Parkway and Bedok Camp located on Upper East Coast Road, the Bayshore Precinct covers 60 ha of site. The plan is to build around 12,000 housing units, comprising 6,500 private residences and 6000 include HDB flats. The area is planned to include a main street that is pedestrianized and be serviced via two MRT stations along the Thomson-East Coast Line — Bayshore and Bedok South — by 2024.
The report on environmental impact assessment prepared by DHI Water and Environment consultant in September concluded that the effect removal of the 31.2ha vegetation will become “irreversible”. The impact is expected to be less than “minor negative” when properly controlled and measures to mitigate. However, the report states there is a risk that losing habitats for avifauna, flora and fauna in the course of construction could be an “moderate negative” impact, even with mitigation measures.
“This is a balance between conservation of nature and development,” concedes SLA’s Low. “The fact is Singapore is extremely small. Every square metre counts and there’s a for cost in all you do.”
The authorities from to the Ministry for National Development to SLA and the various other agencies, recognize the necessity of “a controlled approach to ensure the best result” He says. “If we think that housing is necessary in the area and we want consider how to approach things differently by doing an environmental assessment.”
It’s all about perception
It’s everything to do with perception, and to illustrate his claim, Low gave an analogy: “If you look at an in-depth shot of a man who is rough coming towards, and then shoving an elegant gentleman at first, you’ll think that the man was trying to hurt the latter,” he says. “But when you look further away and look at the scene from a different angle, you’ll see that the rough-looking man was trying to protect the gentleman in good clothes from falling bricks.”
In addition, he says: “If we zoom in to a specific area it’s not difficult to inquire what the reason is for something not being completed. However, if we take a look outward and consider the requirements of the entire island including infrastructure, housing like train stations, roads and railway lines and train lines, what are the alternatives?”
Another site which has been designated to be developed into a residential area could be Turf City. The site was secured to be used for this purpose in 1998’s Master Plan. SLA manages Turf City since 1999. The facility is currently leased for leisure and lifestyle purposes such as shopping, F&B, sports and recreationcentres, childcare facilities and motor vehicle showrooms.
Tenants were granted extended tenancy of 18 months until the end of December 2023. On September 1, LTA declared that one station that comprised phase 2 of Cross Island Line would be situated at Turf City. It is located at Turf Club Road, off Dunearn Road, Turf City is situated in the prestigious Bukit Timah residential enclave in District 11.
“The development of brownfield sites like Turf City will allow the Government to make the most efficient usage of its land as well as the transport system,” says URA in its September 23rd publication. URA stated that in-depth technical studies, such as environmental and heritage studies will be conducted “to make sure that the development is in harmony with the surrounding environmental conditions”.
The reuse of the former school buildings is adapted to suit
Land is “a important resource in the an area of dwindling land in Singapore”, Low sees SLA as a facilitator of place-making also. Land plots that are vacant in the state of Singapore located at Wilmonar Avenue, off Dunearn Road and Yarrow Gardens in the Siglap region, off East Coast Road, have been converted into parks and recreation areas for the community like a dog-friendly park as well as a multi-generational playground.
The declining birth rate in Singapore have caused school mergers in the last two decades. A nefarious consequence is the increase in than a few defunct schools properties given back to SLA. The SLA’s statutory board is considering the possibility of adaptive recycling of properties, “which is the most sustainable way to go,” says Low.
A former Henderson Secondary School along Henderson Road in Redhill is a prime example. It is owned by the social enterprise City Sprouts since 2020, it has received an overhaul as a 9,000 square meter (close to 98,000 square feet) restaurant and gathering center, hosting regular workshops and events. The urban farm has an allotment of farm plots to rent. The former school cafeteria was converted into a home for F&B tenants. The area is currently being renovated and restoration, the F&B space is scheduled to reopen by the end of 4Q2022.
The same location as located in the same building as City Sprouts is situated in the same premises as PAP Community Foundation (PFC) Sparkletots preschool as well as Sunnyville Nursing Home dialysis nursing center. “We were attracted by the idea of having an urban farm within the same space as a nursing home — in this instance it is between a childcare center and a nursing facility to demonstrate the possibility of farms being built anyplace with a bit of creativity,” Chee Zhi Kin co-founded City Sprouts commented.
Another illustration of this is the ex- Batu Berlayar School at Pasir Panjang Road. The three-story building situated on an 88,000 sq ft site is now an office space that is campus-like and a library for the community and town hall space to accommodate the 220 staff members of ShopBack. Cashback rewards for online shoppers across Asia Pacific, ShopBack was founded by Henry Chan and Joel Leong in the year 2014. The property is ShopBack’s headquarters. The first floor shares space with studio for content creation Third Space.
However this old Loyang Primary School was divided into two parts because of its size. One parcel was taken in the hands of My First Skool, which runs a preschool as well as a kindergarten on the site. The remaining parcel will be divided for different uses that are complementary to the original.
“With the majority of schools situated in residential zones, they work for a central community hub that can meet the requirements of the people living there,” adds SLA’s Low. They also work well for co-working spaces, he says.
Activating vacant properties
Another reason for under-utilized properties are former community centres. At the time of writing, at 10 Kampong Eunos, the former community centre has been leased to the social-impact organization Vivita that seeks to provide youth with robotics and artificial intelligence through interactive workshops, interactive programming camps, and competitions.
Another state-owned property located in Lorong J Telok was leased out to the charity Willing Hearts, which moved in at the close of June. It operates an onsite soup kitchen, which prepares and distributes 11,000 meals a day.
An historic structure which has recently been restored to the stables of SLA is the old Command House at 17 Kheam Hock Road. It was constructed between 1937 between 1937 and 1938, the building is on an 11.5 acres (500,940 square feet) site and was formerly the official residence of the highest-ranking British commanding officer in Malaya as well as other officials from the military. In 2007 the Command House was renamed the Command House became the UBS Business University until 2021 at which point it was moved to new location located at 9. Penang Road. The old Command House hosted the Louis Vuitton Savoir Faire 2022: The Art of Living this year. The two-week festival showcased modern pieces from designer Nicolas Ghesquiere, Virgil Abloh and Louis Vuitton’s famous trunks, as well as other luxury designs. “It illustrates that vacant state properties can be used for creative use in interim periods such as pop-up events,” says SLA’s Low.
Rejuvenating Gillman Barracks
With Dempsey Hill being established as an upscale lifestyle and F&B neighborhood, SLA has turned its focus to reviving Gillman Barracks. The former military barracks that date from 1936 are comprised of seventeen colonial-era state properties that are spread over the 6.6ha site.
The park is situated next to the connective network that runs along the Alexandra Garden Trail that links to Hort Park Labrador Park and the Southern Ridges, Gillman Barracks is an ideal place for cyclists, outdoor enthusiasts, and casual hikers, claims SLA. The barracks is also just only a 10-minute walk away to Labrador Park MRT Station. Labrador Park MRT Station.
The initial phase of competitions for the five blocks of Gillman Barracks, launched in May, resulted in 19 proposals. SLA assessed the bids on the basis of price (with 40% weightage) and the quality of the concept proposals, which were given 60% weightage. The lease term offered is also changed to a 5-year lease in advance that is renewable for a further two years. It was previously the straight 3+3+3 years.
“It’s not just the most expensive bidder that wins and the winner will be the one who has the most innovative business idea that is a novel idea which is inclusive of the community and incorporates elements of the environment,” says Low.
Two blocks were granted for two brand new F&B tenants -the Wheeler’s Estate at 9A Lock Road and The BlackBird at 8 Lock Road. Three tenders were granted to three existing tenants: Creamier at 5A Lock Road, Handlebar at 10 Lock Road and Hopscotch at 45 Malan Road, which feature updated menus and programming that are aligned in line with Gillman Barracks’ creative lifestyle position.
The second phase of the tender was announced on October 18. Two tenders were launched for sites located in Blocks 9 43, and 47. Block 43 on Malan Road has the largest gross floor area of Gillman Barracks, at more than 10,000 square feet. The blocks 43 and 47 are adorned with an exterior that is rustic and red brick. “The large floor space and the outdoor space can be used as artisanal crafts as well as health and fitness, vertical agriculture as well as family bonding and co-working areas,” says Low. The tender is due to close eight weeks after Oct 18 with a final date of 13 December. The tenders will also be evaluated based on the pricing and the quality of proposals similar to the first stage. Leases will also be made on a 5-year upfront lease with the possibility of renewing for another two years.
Geospatial technology
In addition to being a pioneer in adaptive reuse properties, SLA has been advocating for geospatial technology and its applications. Memoranda of understanding (MOUs) have been signed by the five largest real estate firms from September through December 2021. The first was PropNex and then and then ERA, Huttons Asia, OrangeTee and SRI. “The leading five residential real estate firms are able to claim 80% market share among the realtors within Singapore,” says Low. “We are trying to make it easier for people to get usage of OneMap and bring it into the mainstream.”
With 3DOneMap real estate agents are able to show prospective buyers the distance from their new residence to the closest Primary school and MRT station, with more precision. It also displays 3D images of the area surrounding it from various levels of blocks. The feature of shadow casting will aid buyers in understanding the shadows cast by different periods of the day especially when the units aren’t in the direction of north-south.
SLA has also signed MOUs with The Real Estate Developers Association of Singapore the courier services Ninja Van, Kabam robotics engineering firm , as well as The Singapore Business Federation. Low believes that geospatial technology could be used in a variety of applications in the mainstream, including education.
Geospatial technology is also utilized to aid the community. As the population ages and a map that shows accessible routes can help the elderly, people with mobility issues , and even parents of young children, he says.
SLA’s geospatial department is mapping Singapore’s solar power potential. Singapore. They are developing 3D simulation and modeling applications in conjunction with SLA’s Public Utilities Board to map the areas that are more susceptible to flooding in the inland. SLA also signed an agreement in collaboration with National University of Singapore (NUS) faculty of science in October. The aim is to utilize geospatial information and technology to conduct research on carbon estimation. Low believes that geospatial technology is “a crucial enabler for sustainability”.
It’s difficult to imagine that Low was at first apprehensive about every acronym when he started at SLA. “There are a lot of acronyms that are used in the world of public service,” he says. However, over time, he’s developed a proficiency in them.
According to early estimates, the need for construction in 2022 will be $29.8 billion
Executive Condo, News, Real EstateThe Building and Construction Authority (BCA) believes that construction demand will “remain robust” by 2023. According to a news release it forecasts that the cost of contracts for construction that were awarded this year to be between $27 billion and $32 billion, which is similar to last year’s forecast.
Terra Hill developer Hoi Hup and Sunway Development have jointly acquired Terra Hill Condo for S$371 million ($276.1 million) through a joint venture.
BCA has also highlighted that demand for construction in 2022, which was $29.8 billion according to preliminary estimates. The figure falls within BCA’s forecast range for 2022 between $27 billion and $32 billion, and is similar to the $29.9 billion reported in 2021. The steady demand was mostly fueled by infrastructure and residential projects both in the private and public sectors.
The construction market in the public sector amounted to $17.9 billion in 2017 which was a slight improvement from $17.8 billion that was recorded in 2021. Demand was fueled by large projects like the Cross Island MRT Line (Phase 1), Jurong Region MRT Line as well as the Ministry of Healthcare’s (MOH) health facilities as well as new Build-to-Order (BTO) facilities.
Demand for construction in the private sector decreased by $12.1 billion by 2021 and $11.9 billion by 2022 in the face of “various negative economic risk factors” but the demand for residential and industrial construction projects continued to be resilient, according to BCA.
In 2023, the public sector contracts are likely to comprise around 60% of the construction demand that is between $16 billion to $29 billion. Demand from the public sector will be bolstered by a rise in the availability of Build-to-Order flats offered by HDB and the construction of institutional and industrial structures like water treatment facilities educational buildings, community clubs. Additionally the demand for civil engineering construction will continue to be boosted through MRT line construction as well as other infrastructure projects.
Demand for construction in the private sector is predicted to rise between $11 billion to $13 billion in 2023. Both industrial and residential construction demand is expected to be comparable to the previous year’s levels. Commercial construction demand is expected to grow, which is aided by the shifting of certain projects from 2022 until 2023, as well as the renovation of commercial buildings.
The total construction output, determined by the value of progress payments that are certified, is projected to grow from $30 billion to $33 billion by 2023, just a little higher than the $30.2 billion that was recorded for 2022 on the basis of preliminary data. BCA credits this to the steady growth in construction activity and a work that has been delayed by the Covid-19 epidemic from 2020.
In the near period, BCA expects total construction demand to rise between $25 billion to $32 billion annually from 2024 until 2027. Demand from the public sector is projected to be between $14 billion and $18 billion annually and the demand from private sectors is expected to be between $11 billion and $14 billion annually. The projection does not include those involved in the Changi Airport Terminal 5 development and the infrastructure associated with it and expanding two integrated resorts due to the lack of specifics like award dates and construction phasing for respective projects.
Singapore was ranked as the best Asia Pacific city for investment potential in a poll by the Urban Land Institute and PwC
Executive Condo, News, Real Estate2022 will be the year of a stronger growth for Asia Pacific (Apac) economies as the majority of countries in the region eased off the restrictions of Covid-19, triggering an economic revival. However, macroeconomic challenges that have been causing a lot of concern, such as stubborn rates of inflation, hikes in interest rates and a global slowdown that have caused a rise in worries about a recession in recent times.
Terra Hill latest news on the upcoming condo 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.
This is what has led to a more cautious attitude, particularly in the real estate industry. According to research institute Urban Land Institute (ULI) investors have taken a wait-and-see strategy in the face of increasing uncertainty. “Investors are aware that the risks are increasing but aren’t clear on the severity of the headwinds as well as how markets is likely to be affected,” ULI says in its Emerging Trends in Real Estate Asia Pacific 2023 report.
In this regard it is evident that real estate transactions in Apac have plummeted since investors shift into a holding pattern and delay making decisions. ULI’s report, released jointly with PwC and PwC, provides MSCI figures that show the Apac real estate transactions decreased by 38% from a year ago in the range of US$32.6 billion ($44 billion) -the lowest total for 3Q for a decade. It is not surprising that, of the Apac market, China saw the biggest drop of 23% in a year, which was aided by the Covid-19 restrictions which have hindered investment.
Yet, while some Apac economies are likely to see growth increase in the coming months other economies are expected to defy the trend. It is the case for China as well as Hong Kong, where Covid-19 restrictions are being relaxedin the direction of the long-anticipated growth. Furthermore, Knight Frank projects recovering demand for domestic-oriented economies like India and the emerging Southeast Asian countries to further boost growth. “Asia Pacific will continue to be the fastest-growing region in the world,” the consultancy states in its Asia Pacific Outlook Report 2023.
This could be a positive sign for this Apac housing market, where the fundamentals of the market remain solid as noted by Henry Chin, CBRE’s global head of thought leadership for investors as well as head of research. As investors face the “increasingly turbulent waters” predicted in the short future the investment strategies are being refined to capitalize on opportunities that are present within the marketplace, Chin adds. Chris Pilgrim, director, global capital markets at Colliers agrees. “In Asia Pacific, now is the best time for investors to select their assets and markets,” he says.
Rate hikes are now clear and will bring back momentum in transactions
Surveys carried out through ULI and Colliers indicate how interest rate hikes are the main issue for Apac real property investors. Since March this year, the US Federal Reserve has instituted an increasing number of rate hikes, the most recent being a 50-basis-point increase that was announced on December 14. The increase brings an increase in the US standard rate down to interval of somewhere between 4.25% and 4.5% and is the highest level since the past 15 years.
The Fed’s rate increases have swept across the majority of Apac however, except for China and Taiwan, which have reduced rates, as well as Japan in which rates are extremely low. In this changing environment the investors are more hesitant because financing is becoming more difficult to acquire and deals are more difficult to secure.
But, Colliers anticipates the real property market to stabilize around mid-2023, when more certainty develops about the outlook for interest rates. “Similar as 2022 and 2023, the 2023 year is an equal-sizer but the difference is that momentum for transactions will grow in the second quarter of the year, as the market adjusts to a price reset,” says Joanne Henderson, Colliers’ national director research for Australia.
David Faulkner, president of ULI Asia Pacific, agrees that the possibility of a repricing of assets could be coming up. “Rising rates of interest and the slowing of the global economy are starting to affect regional asset valuations , and are changing the way investors look at possible transactions,” he says.
Cap (cap) rates that are used to determine the value of properties and are expected to rise in Apac in the coming years, changing from the sluggish levels set over the last decade and in the wake of an expansion which is taking place across both the US in the US and Europe. “Cap rates have to rise in order for buyers to maintain an appropriate spread over the price of debt,” ULI sates in its report.
Defensive assets
When investors are navigating the volatility over the next few months, they will seek out defensive investments that could be used to protection against rising inflation says Knight Frank. “Commercial real estate that has the potential for income growth along with diversification benefits, and relative stability will experience a surge in interest,” it states in its outlook.
Offices, by vast majority of the asset classes in Apac is expected to enjoy a robust demand despite the current economic conditions that are causing uncertainties in growth in business and leasing. According CBRE’s Chin centrally-located offices that are of high-quality in cities with high growth potential are likely to provide the best opportunities, which are backed by the return to work from employees and a continuous shift to high-quality. ULI states that the returns are more stable in areas where occupant conditions favor landlords like the cities of Seoul, Singapore and Sydney.
The logistics industry will continue to be bolstered by the “seemingly inexhaustible” market that’s remained steady even though production and consumption are stagnating. Demand in the key markets, like South Korea, China and Australia remain caused by the lack of the availability with modern logistic facilities and a growing use of “China and one” strategy which allows businesses to diversify their manufacturing base outside of China is expected to spur investment flows into other markets.
ULI is also highlighting that the sub-sectors of the new economy such as cold storage, data centres, infrastructure life science facilities, and self-storage spaces are predicted to increase the demand for logistics. The research conducted by the data company Preqin reports that a total of $16 billion in funds raised in the year to October’s end, which is more than triple the amount that was raised in 2021– to fund these opportunistic strategies, which demonstrates the growing interest in these assets.
In the residential sector multifamily properties especially in Japan are considered an investment option that is able to generate long-term stable streams of income. Other residential properties like senior living and student housing have gained attention in the last few years, with 51% and 43% of% as well as 43% of investors polled by ULI having plans to invest in these segments in the next year.
Top markets
Within the Apac regions, Singapore, Japan, Australia and South Korea stand out as areas where transaction volumes and demand from investors are expected to remain strong. According to Colliers real estate investor survey, these four markets in the survey topped investors’ choices across different categories of assets, suggesting the “overwhelming” desire for cities that are established and larger which are more likely provide value in a price established.
According to ULI, Singapore is the most ranked city for potential investment opportunities, according to the survey conducted by ULI. ULI points out that the city-state continues to reap the benefits of the redirection of capital that otherwise would be directed towards China. Offices, which facilitated the flow of deals within Singapore in the past, is predicted to continue to draw attention, as evidenced by the healthy rental growth forecasts, despite the decrease in transactions during the past quarter.
In Japan investors’ enthusiasm has increased due to an easing of the yen and an improved inflation outlook. Additionally, the accommodative policies of the monetary authorities have resulted in caps remaining steady and in some instances shrinking, attracting an interest from investors, according to ULI. Japan is also appealing due to its multifamily sector, which, CBRE highlights, offers the highest cash-on-cash yield in the world.
Australia is predicted to be resilient, supported in large part by market for office space located in Sydney and Melbourne in addition to the logistics industry that is a notable asset sector for the nation in recent times. Additionally the multifamily student housing, senior and multifamily housing segments are beginning to gain popularity within the country. Additionally, South Korea has been strengthened by a robust office market, boosted by a surge in office rents following the Covid-19 and record-low unemployment, claims Colliers. In Seoul prime office rents increased 21.4% y-o-y in 3Q2022 and reached an all-time high in the research of JLL.
Every square meter matters, and everything has an opportunity cost
Executive Condo, News, Real EstateRead more: Private residential property owners will be given a 15-month period to purchase a non-subsidised HDB resale flat
It’s been 18 years from the time Colin Low assumed the CEO position of the statutory board Singapore Land Authority (SLA). The 44-year-old was a different role before, that of the CEO for Frasers Hospitality Asset Management and Frasers Hospitality Trust Management, the manager of SLA’s listed in Singapore Frasers Hospitality real estate investment trust (REIT) for the period from July 2019 through April 2021.
With an $1.9 billion portfolio (as as of September of this year) The REIT has 14 assets as well as fourteen master lease contracts. They are spread across six countries, starting from Dresden, Germany, to Edinburgh, Glasgow and London in the UK and over the border to Kobe and Kobe in Japan, Singapore, Malaysia and Sydney and Melbourne in Australia.
“Running an REIT was about maximizing an increase in the amount of units distributed to participants, which was mainly the shareholders of the REIT” Low explains. Low. “When Covid hit, it was a major and unprecedented pandemic. A lot of people started to think about their lives. This was also true for me. And when I got the call for this job I was delighted to be amazed.”
SLA is the custodian of State property and properties and has two-700 structures and 11,000 ha (110 million square meters) of land. This is roughly 15% of the land across the island. “SLA offers a broad range of services and is focused on Singapore,” says Low. “Once you are a part of the public sector you feel an obligation to serve as those who are involved are everyday Singaporeans. Therefore, you must consider what’s best for the people in your vicinity.”
‘Balancing act’
Sometimes, it’s also about taking care of public concerns. An example of this is the recent outrage that was triggered by an Housing Development Board’s (HDB) environmental impact assessment report that recommended the clearing of 31.2ha of forested land to create the construction of the new Bayshore precinct. HDB posted their report online on November 1 and invited feedback from the public up to Nov 29.
Bordered with Upper East Coast Road, East Coast Parkway and Bedok Camp located on Upper East Coast Road, the Bayshore Precinct covers 60 ha of site. The plan is to build around 12,000 housing units, comprising 6,500 private residences and 6000 include HDB flats. The area is planned to include a main street that is pedestrianized and be serviced via two MRT stations along the Thomson-East Coast Line — Bayshore and Bedok South — by 2024.
The report on environmental impact assessment prepared by DHI Water and Environment consultant in September concluded that the effect removal of the 31.2ha vegetation will become “irreversible”. The impact is expected to be less than “minor negative” when properly controlled and measures to mitigate. However, the report states there is a risk that losing habitats for avifauna, flora and fauna in the course of construction could be an “moderate negative” impact, even with mitigation measures.
“This is a balance between conservation of nature and development,” concedes SLA’s Low. “The fact is Singapore is extremely small. Every square metre counts and there’s a for cost in all you do.”
The authorities from to the Ministry for National Development to SLA and the various other agencies, recognize the necessity of “a controlled approach to ensure the best result” He says. “If we think that housing is necessary in the area and we want consider how to approach things differently by doing an environmental assessment.”
It’s all about perception
It’s everything to do with perception, and to illustrate his claim, Low gave an analogy: “If you look at an in-depth shot of a man who is rough coming towards, and then shoving an elegant gentleman at first, you’ll think that the man was trying to hurt the latter,” he says. “But when you look further away and look at the scene from a different angle, you’ll see that the rough-looking man was trying to protect the gentleman in good clothes from falling bricks.”
In addition, he says: “If we zoom in to a specific area it’s not difficult to inquire what the reason is for something not being completed. However, if we take a look outward and consider the requirements of the entire island including infrastructure, housing like train stations, roads and railway lines and train lines, what are the alternatives?”
Another site which has been designated to be developed into a residential area could be Turf City. The site was secured to be used for this purpose in 1998’s Master Plan. SLA manages Turf City since 1999. The facility is currently leased for leisure and lifestyle purposes such as shopping, F&B, sports and recreationcentres, childcare facilities and motor vehicle showrooms.
Tenants were granted extended tenancy of 18 months until the end of December 2023. On September 1, LTA declared that one station that comprised phase 2 of Cross Island Line would be situated at Turf City. It is located at Turf Club Road, off Dunearn Road, Turf City is situated in the prestigious Bukit Timah residential enclave in District 11.
“The development of brownfield sites like Turf City will allow the Government to make the most efficient usage of its land as well as the transport system,” says URA in its September 23rd publication. URA stated that in-depth technical studies, such as environmental and heritage studies will be conducted “to make sure that the development is in harmony with the surrounding environmental conditions”.
The reuse of the former school buildings is adapted to suit
Land is “a important resource in the an area of dwindling land in Singapore”, Low sees SLA as a facilitator of place-making also. Land plots that are vacant in the state of Singapore located at Wilmonar Avenue, off Dunearn Road and Yarrow Gardens in the Siglap region, off East Coast Road, have been converted into parks and recreation areas for the community like a dog-friendly park as well as a multi-generational playground.
The declining birth rate in Singapore have caused school mergers in the last two decades. A nefarious consequence is the increase in than a few defunct schools properties given back to SLA. The SLA’s statutory board is considering the possibility of adaptive recycling of properties, “which is the most sustainable way to go,” says Low.
A former Henderson Secondary School along Henderson Road in Redhill is a prime example. It is owned by the social enterprise City Sprouts since 2020, it has received an overhaul as a 9,000 square meter (close to 98,000 square feet) restaurant and gathering center, hosting regular workshops and events. The urban farm has an allotment of farm plots to rent. The former school cafeteria was converted into a home for F&B tenants. The area is currently being renovated and restoration, the F&B space is scheduled to reopen by the end of 4Q2022.
The same location as located in the same building as City Sprouts is situated in the same premises as PAP Community Foundation (PFC) Sparkletots preschool as well as Sunnyville Nursing Home dialysis nursing center. “We were attracted by the idea of having an urban farm within the same space as a nursing home — in this instance it is between a childcare center and a nursing facility to demonstrate the possibility of farms being built anyplace with a bit of creativity,” Chee Zhi Kin co-founded City Sprouts commented.
Another illustration of this is the ex- Batu Berlayar School at Pasir Panjang Road. The three-story building situated on an 88,000 sq ft site is now an office space that is campus-like and a library for the community and town hall space to accommodate the 220 staff members of ShopBack. Cashback rewards for online shoppers across Asia Pacific, ShopBack was founded by Henry Chan and Joel Leong in the year 2014. The property is ShopBack’s headquarters. The first floor shares space with studio for content creation Third Space.
However this old Loyang Primary School was divided into two parts because of its size. One parcel was taken in the hands of My First Skool, which runs a preschool as well as a kindergarten on the site. The remaining parcel will be divided for different uses that are complementary to the original.
“With the majority of schools situated in residential zones, they work for a central community hub that can meet the requirements of the people living there,” adds SLA’s Low. They also work well for co-working spaces, he says.
Activating vacant properties
Another reason for under-utilized properties are former community centres. At the time of writing, at 10 Kampong Eunos, the former community centre has been leased to the social-impact organization Vivita that seeks to provide youth with robotics and artificial intelligence through interactive workshops, interactive programming camps, and competitions.
Another state-owned property located in Lorong J Telok was leased out to the charity Willing Hearts, which moved in at the close of June. It operates an onsite soup kitchen, which prepares and distributes 11,000 meals a day.
An historic structure which has recently been restored to the stables of SLA is the old Command House at 17 Kheam Hock Road. It was constructed between 1937 between 1937 and 1938, the building is on an 11.5 acres (500,940 square feet) site and was formerly the official residence of the highest-ranking British commanding officer in Malaya as well as other officials from the military. In 2007 the Command House was renamed the Command House became the UBS Business University until 2021 at which point it was moved to new location located at 9. Penang Road. The old Command House hosted the Louis Vuitton Savoir Faire 2022: The Art of Living this year. The two-week festival showcased modern pieces from designer Nicolas Ghesquiere, Virgil Abloh and Louis Vuitton’s famous trunks, as well as other luxury designs. “It illustrates that vacant state properties can be used for creative use in interim periods such as pop-up events,” says SLA’s Low.
Rejuvenating Gillman Barracks
With Dempsey Hill being established as an upscale lifestyle and F&B neighborhood, SLA has turned its focus to reviving Gillman Barracks. The former military barracks that date from 1936 are comprised of seventeen colonial-era state properties that are spread over the 6.6ha site.
The park is situated next to the connective network that runs along the Alexandra Garden Trail that links to Hort Park Labrador Park and the Southern Ridges, Gillman Barracks is an ideal place for cyclists, outdoor enthusiasts, and casual hikers, claims SLA. The barracks is also just only a 10-minute walk away to Labrador Park MRT Station. Labrador Park MRT Station.
The initial phase of competitions for the five blocks of Gillman Barracks, launched in May, resulted in 19 proposals. SLA assessed the bids on the basis of price (with 40% weightage) and the quality of the concept proposals, which were given 60% weightage. The lease term offered is also changed to a 5-year lease in advance that is renewable for a further two years. It was previously the straight 3+3+3 years.
“It’s not just the most expensive bidder that wins and the winner will be the one who has the most innovative business idea that is a novel idea which is inclusive of the community and incorporates elements of the environment,” says Low.
Two blocks were granted for two brand new F&B tenants -the Wheeler’s Estate at 9A Lock Road and The BlackBird at 8 Lock Road. Three tenders were granted to three existing tenants: Creamier at 5A Lock Road, Handlebar at 10 Lock Road and Hopscotch at 45 Malan Road, which feature updated menus and programming that are aligned in line with Gillman Barracks’ creative lifestyle position.
The second phase of the tender was announced on October 18. Two tenders were launched for sites located in Blocks 9 43, and 47. Block 43 on Malan Road has the largest gross floor area of Gillman Barracks, at more than 10,000 square feet. The blocks 43 and 47 are adorned with an exterior that is rustic and red brick. “The large floor space and the outdoor space can be used as artisanal crafts as well as health and fitness, vertical agriculture as well as family bonding and co-working areas,” says Low. The tender is due to close eight weeks after Oct 18 with a final date of 13 December. The tenders will also be evaluated based on the pricing and the quality of proposals similar to the first stage. Leases will also be made on a 5-year upfront lease with the possibility of renewing for another two years.
Geospatial technology
In addition to being a pioneer in adaptive reuse properties, SLA has been advocating for geospatial technology and its applications. Memoranda of understanding (MOUs) have been signed by the five largest real estate firms from September through December 2021. The first was PropNex and then and then ERA, Huttons Asia, OrangeTee and SRI. “The leading five residential real estate firms are able to claim 80% market share among the realtors within Singapore,” says Low. “We are trying to make it easier for people to get usage of OneMap and bring it into the mainstream.”
With 3DOneMap real estate agents are able to show prospective buyers the distance from their new residence to the closest Primary school and MRT station, with more precision. It also displays 3D images of the area surrounding it from various levels of blocks. The feature of shadow casting will aid buyers in understanding the shadows cast by different periods of the day especially when the units aren’t in the direction of north-south.
SLA has also signed MOUs with The Real Estate Developers Association of Singapore the courier services Ninja Van, Kabam robotics engineering firm , as well as The Singapore Business Federation. Low believes that geospatial technology could be used in a variety of applications in the mainstream, including education.
Geospatial technology is also utilized to aid the community. As the population ages and a map that shows accessible routes can help the elderly, people with mobility issues , and even parents of young children, he says.
SLA’s geospatial department is mapping Singapore’s solar power potential. Singapore. They are developing 3D simulation and modeling applications in conjunction with SLA’s Public Utilities Board to map the areas that are more susceptible to flooding in the inland. SLA also signed an agreement in collaboration with National University of Singapore (NUS) faculty of science in October. The aim is to utilize geospatial information and technology to conduct research on carbon estimation. Low believes that geospatial technology is “a crucial enabler for sustainability”.
It’s difficult to imagine that Low was at first apprehensive about every acronym when he started at SLA. “There are a lot of acronyms that are used in the world of public service,” he says. However, over time, he’s developed a proficiency in them.
The purchase of three remaining land parcels of The Arden’s has been postponed
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Developer Qingjian Realty had intended to begin construction of its 105-unit exclusive condo called The Arden in the 1Q2022 timeframe. The sales gallery located on the site located at Phoenix Road was completed early this year. But, as the year is drawing to an end, the events for the launch have yet be put into motion. Yen Chong the deputy general manager of Qingjian Realty confirms that the launch was delayed.
The delay is due to the approval of the purchase of three adjacent leftover State land parcels on Phoenix Road. “It is still waiting for the approval of the authorities,” says Chong. “We are hoping to be granted it shortly.”
When approached via EdgeProp Singapore, an Singapore Land Authorities (SLA) spokesperson would reply: “SLA is reviewing the request with the relevant agencies and will make the proposal in the shortest time possible.”
Amalgamating the remnants of State properties with privately owned properties is not a new idea. Actually, developers are encouraged to buy these remnant sites for the same-sized parcel.
Qingjian Realty purchased the former Phoenix Heights en block at $42.6 million following the time of the closing of tender the 25th of July 2019. The developer has also moved forward by purchasing three remaining State parcels of land that border the site.
Delay caused by the complexities of purchasing three remnant sites
Three remaining sites is a piece of land that forms the boundary the Arden’s site across Choa Chu Kang Road. It is believed to be home to the reserve for drainage. Two other sites are located at the rear and a rectangular site is believed to be home to an underground power station, while another smaller square site is where the unused gas pipes that were used to service the previous units at Phoenix Heights are located (see EdgeProp Landlens).
A prior written permission (WP) given URA URA on November 20, 2021 indicated that it was in the process of obtaining the abolition of two State land parcels located at lots MK10-01494M as well as MK10-01654C.
Based on the revised WP which was submitted on March 1st 2022. The 105 unit residence development will comprise three blocks that span five floors as well as an underground carpark, a swimming pool , and common facilities situated at Plot 1, which is the principal site.
The developer must give Public Utilities Board (PUB) access to the drainage reserve located at Plot 2, “without the State paying any money or offering any kind of consideration for it, and with vacant possession, and free of restrictions prior to the issuance certificate of statutory completion from the Building and Construction Authority”.
According to the sources, a different issue could be related to the ownership of the former site which includes that electrical substation. The site is in the possession by Singapore Power, which is now a corporatised company. The land needs to be returned to SLA.
Thus, as of today it is the only one of the three remaining sites is successfully amalgamated. It is the one with gas pipes that have been discarded and been used to supply the apartments of 24 and the 12 shops in the Phoenix Heights. Phoenix Heights.
“While it’s common to have several agencies involved in the purchase of remaining sites however it’s quite unusual for approval to take such a long time,” says a source who refuses to identify himself. “Perhaps it’s the purchase of three remaining lots, instead of just one that’s causing the complexityand slow approval process for this purchase SLA because it must collaborate with the various agencies.”
In the event that Qingjian submitted an application to purchase the three remaining sites before September 1st, 2022, the acquisition price would be determined by the prior price that was 50% of the land’s total value, which is determined using a factor that is 5/7 times the land betterment charge rate, according to SLA in the press release. Since Sept. 1, the acquisitions of remaining State property will be determined by the 100% of the value of the land site.
The Arden’s land rates is equivalent with GLS sites for ECs currently
The opening The Arden The Arden is anticipated to occur in 2023. This is one year longer than the developer was hoping for. The clock is ticking toward the deadline of 5 1/2 years for the cancellation of 35% additional stamp duty for buyers. In the case of Qingjian Realty, that date is believed to be the year’s end in January 2025. This means that the developer will have about two years in order to market the 105 units of residential homes located at The Arden.
Alongside the extension of six months to the sale period up to five and a half years project’s deadline for completion was delayed by 12 month, to November 2025 as a an element of the relief measure Covid-19 that are available to developers.
In retrospect the Qingjian Realty’s price for the site located on Phoenix Road is attractive compared to the prices for land on the government-owned land sale (GLS) sites today. The 63,000 square foot site is an agreement for 99 years that began in 1969. This implies that the developer is required to pay a premium differential for an increase in lease. The purchase price is $42.6 million, which is equivalent to approximately $630 per plot ratio (psf ppr).
It represents 38.5% below the $1,024 PSF price per square foot the Far East Organization and Sekisui House paid for the GLS site at Hillview Rise at the close of the tender on November 3. The $630 psf and ppr is also 53% lower than the $1,343 per person which Bukit Sembawang Estates paid for the GLS site at Bukit Timah Link which is adjacent to the entry point to the entrance of Beauty World MRT Station. This tender was for Bukit Timah Link was also shut on November 3rd.
The $630 psf per-psf rate is the same as the cost for GLS sites that are executive condominium (EC) construction sites in the present, says Lee Sze Teck, senior director of research at Huttons Asia. In the middle of September, City Developments Ltd (CDL) paid $626 per sq ft per ppr in exchange for an EC site located at Bukit Batok West Avenue and Qingjian Realty paid $662 psf per person in exchange for an EC site located at Bukit Batok West Avenue in March of this year.
What price will The Arden be priced at?
EC projects that were launched in this year have already had prices that have surpassed $1,300 per square foot. For example six39 units of Copen Grand project in Tengah Garden Walk, launched jointly by CDL and MCL Land in September, had four85 units (75.9%) sold to the date, at an average of $1,337 per sq ft. CDL along with MCL Land had paid $603.17 per square foot to purchase Copen Grand site at the time of its launch in April 2021.
The consortium comprised of Qingjian Realty, Santarli Realty and Heeton Holdings is launching the 618-unit Tenet EC in Tampines North on Dec 3. The estimated average price is set at $1,331 per sq ft. In Qingjian Realty’s consortium, they paid $659 per person in exchange for an EC site located in Tampines North, in the month of July.
Suburban 99-year leasehold condominiums were launched in the last year with prices that average just over $2100 per square foot, for instance Amo Residence in Ang Mo Kio Rise in July in which the 98% (372) units sold in the weekend following launch; Sky Eden@Bedok with 75% of the 158 units sold by the first week of September. Lentor Contemporary which has a market share of the 85% of units had been sold by Nov 21.
“Qingjian Realty paid $630 per per square foot for the site which is the most appealing land price in the present – they could cause an uproar within the marketplace by the launch of The Arden for sale at a cost equal to fresh launches for ECs as well as suburban condominiums. It will be arousing interest,” says Huttons Asia’s Lee.
The building that is adjacent to The Arden adjacent to The Arden is Hillsta which is an apartment block of 416 units, 99-year leasehold development that consists of Soho’s, condominiums and townhouses. The project was designed through Far East Organization, the project was completed in the year 2012. The most recent median price at Hillsta is $1,241 per square foot which is based on transactions between June through November 2022.
Further down Phoenix Road and separated from The Arden by the Phoenix Park playground is the Phoenix Residences, a 74-unit development. Phoenix Residences by OKP Holdings. It was launched in December of 2020. around 95% (70 apartments) of the development has been sold at an average cost of $1,554 per square foot. Based on caveats filed between June and November 20, 2022. The median cost is $1,626 per sq ft.
On November 7, the three-bedroom apartment sold for $3.6 million ($1,900 psf)
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The auction of a 1,894 sq . ft unit in Pebble Bay, which is a 99-year leasehold property situated on Tanjong Rhu in District 15 is the most profitable deal that was recorded in the week from Nov 1-8. The three-bedroom property that was sold in exchange for $3.6 million ($1,900 per square foot) on November 7, was purchased from the vendor for $1.48 million ($781 per sq ft) in November of 2006 which translates to a profit of $2.12 million which is the equivalent of 143% over the period of 16 years.
Pebble Bay Pebble Bay is a 510-unit condominium situated in Kallang which is located in with the Kallang Basin. It was built in 1997. The condominium was developed by CapitaLand is situated near The Singapore Sports Hub, Kallang Wave Mall, Bay East Garden and East Coast Park. It’s just a five-minute stroll to the new Tanjong Rhu MRT Station on the Thomson-East Coast Line.
The unit that was sold on November 7 was the most expensive PSF price ever sold in the building. The most profitable transaction on the market at Pebble Bay occurred in July when a 2,626 square foot unit located on the 13th floor was sold to the tune of $4.89 million ($1,862 per sq ft). The unit was bought at $1.82 million ($693 per square foot) during July of 2002. The seller made an income in the amount of 3.07 millions (169%), which is an annualized income that is 5.1% over a holding time of approximately 20 years.
The secondand third most profitable transactions of the week were both in Pandan Valley. On November 7 the three-bedroom apartment measuring 2,131 square feet located on the 5th floor auctioned off to a buyer for $2.8 million ($1,314 per sq ft). The seller purchased the property for $860,000 ($404 per square foot) in August of 2004, and thus earned the $1.94 million (225.6%) profit on the deal after keeping this property over 18 years.
Additionally, a 2,088 sq feet, three-bedroom property located at Pandan Valley was transacted on Nov . 2 with a price of $2.95 million ($1,413 per square foot). The seller bought the fifth floor apartment at $1.16 million ($555 per square foot) at the beginning of January in 2000. That results in the buyer $1.79 Million (154.3%) over almost 23 years.
Pandan Valley was completed in 1979 and contains 605 units. The freehold condominium, which is 14 stories high, is situated on Ulu Pandan Road in District 21. It was constructed through the previous DBS Realty (now CapitaLand).
The development is situated near Pine Grove (Parcel A) that covers 242,564 square feet. It is a 99-year leasehold government land sale site which is being sold to joint-venture of UOL Group and Singapore Land Group for $671.5 million ($1,318 per plot ratio psf) at the end of June. A new condominium with around 500 units is anticipated to be constructed within the site.
The least profitable transaction reported this month of November was the auction of a 4-bedroom property located at the Orchard Residences situated just above Ion Orchard in prime District 9. The first day of November the property, which was 2,852 square feet situated on 34th Floor sold for $9.1 million ($3,190 per square foot). The seller purchased the property for $10 million ($3,506 per square foot) in March 2010. This resulted in an expense of 9% which is $900,000 over the period of twelve and a half years.
The unit was one of many resales units that were sold at prices below the purchase price over the past two years, as per data collected through EdgeProp Research. EdgeProp Research tool. The least profitable transaction within the development was in July 2020 when another 2,852 square feet of space was purchased for $9.68 million ($3,394 per square foot) and the seller losing $3.3 million.
Orchard Residences Orchard Residences is the residential element of the retail and residential development jointly designed through CapitaLand as well as Hong Kong property developer Sun Hung Kai Properties. The 99-year leasehold development consists of eight levels of Ion Orchard and The Orchard Residences.
With a height of 56 storeys, The Orchard Residences has been completed in the year 2010 and houses 175 units. Apartments located at The Orchard Residences vary from 1,808 square feet for three-bedders up to 2,465 sq feet for four-bedders. Penthouse units start at 4,273 square feet.
Ming Arcade, a freehold business, is for sale for more than $140 million
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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.
Lim will direct Investment suggestions for the Asia Pacific market and supervise the research team
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Regina Lim has taken up the new position of director and director of property research Asia at M&G Real Estate. She will be reporting to Jing Dong Lai, CEO and CIO of M&G Real Estate Asia.
“The inclusion to the team of Regina in the group builds on the momentum that the Asia team has created in the region. Asia continues to attract international investors, and we aim to provide our partners and clients with local knowledge and expertise to make gains and realize them for our clients,” says Lai.
In her new position, Lim will lead and supervise the research team to develop investment recommendations for market trends in the Asia Pacific market. She will be working in close collaboration with Lai along with Jose Pellicer, global head of investment strategy, and Richard Gwilliam, global head of research.
Lim holds more than twenty years experience in the real estate sector. She joins from JLL which she headed for strategic advice and research on capital markets for Asia Pacific and Southeast Asia. She previously been employed in Standard Chartered Bank, UBS as well as the URA.
“I am delighted to be joining M&G as it has built itself up as a reputable and dependable player in the marketplace. Asia Pacific is an exciting region, and it is one where M&G is well placed, thanks to its track record and expertise. I am thrilled to be a part of this adventure,” Lim adds. Lim.
51 Club Street is up for sale with a suggested price of $120 million
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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.
On October 4, Cortina Holdings declared that it had been given the right to purchase the entire fourth level of 15 Scotts Road
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Cortina Holdings announced on Oct 4, that it had been granted the right to purchase the entire fourth floor in fifteen Scotts Road. The area is 1,276 square meters (13,735 sq feet) and the price will be $49 million. The company that is selling it will be the Singapore Institute of Management.
“Currently our offices in Singapore are located in leased offices Some leases are due to expire in the near future. We also anticipate an organic growth for the Group over the next future which will make it more difficult for us to find office space. Instead of leasing office space, we’ve thought about purchasing the identical.
The Property will be able to fulfill our Group’s requirements to have office spaces in the short future after the current tenancies for which it Property is subject will expire at the expiration of their term,” Cortina says.
The acquisition will lead to the net tangible asset value to increase by one cent to $1.90 as well as for net profit to rise to $69.096 million, up from $68.773 million on the basis of pro forma.
Private residential property owners will be given a 15-month period to purchase a non-subsidised HDB resale flat
Executive Condo, News, Property Management, Real EstateThe 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.