SINGAPORE - The development charge (DC) rates for redeveloping land have gone up for commercial and industrial sites, as well as plots slated for non-landed private homes, and hotels and hospitals. Land zoned for non-landed residential use saw an average increase of 9.8 per cent, the Ministry of National Development (MND) said on Friday (Aug 31) - down sharply from the 22.8 per cent hike in March. DC rates for commercial sites were raised by 8.3 per cent on average, up from a 2.7 per cent increase previously, with the average rate for hotels and hospitals up by 11.8 per cent and the average increase for industrial sites coming in at 2.1 per cent after staying flat in the previous revision exercise. The latest change comes nearly two months after surprise property cooling measures kicked in on July 6, and the new rates will apply from Sept 1, 2018 to Feb 28, 2019. The MND revises DC rates twice a year, on March 1 and Sept 1, for land use categories across 118 sectors island-wide. The rates, based on an assessment of land values that takes into account recent market deals, are paid by developers for the right to enhance the use of some sites or to build bigger projects there. The rates have been kept unchanged for landed homes, civic and community institutions, and three other land use groups, which include nature reserves, agricultural land, drains, roads, railways and cemeteries.
Developer Bukit Sembawang Estates will open the doors to its upmarket condominium at St Thomas Walk to the public this weekend. A private preview of the freehold condominium, 8 St Thomas was held over the past weekend in Singapore and Hong Kong and saw more than 20 units sold at prices averaging well above $3,000 per square foot. "The successful preview of 8 St Thomas has demonstrated that premium freehold quality developments in prime District 9 continue to be much sought after by discerning buyers," Bukit Sembawang chief executive Ng Chee Seng said in a statement yesterday. "With one- and two-bedders priced from $1.42 million and $1.78 million, respectively, savvy prospective buyers will find 8 St Thomas palatable for a premier freehold project located in a prestigious area," said marketing agent CBRE head of residential projects May Tan in a statement. Occupying almost one hectare of land, 8 St Thomas offers full condominium facilities and accommodates 250 units comprising one- to four- bedroom units, four-bedroom dual-key units and penthouses. Floor area of the units ranges from 441 sq ft to 2,659 sq ft As a newly completed development, 8 St Thomas offers buyers immediate ownership for occupation, investment and rental. Each 35-storey tower opens up to views of the city skyline from private balconies against the backdrop of Orchard Road and the Marina Bay. Designed to be eco-friendly, 8 St Thomas has been awarded the Building Construction Authority Green Mark Gold. The development is a short walk away from Somerset MRT station and the upcoming Great World City MRT Station.
A freehold cluster of three adjoining conservation shophouses located in Smith Street in Chinatown has been launched for sale via public tender. The guide price for the property is about $3,500 per sq ft (psf), or $33.25 million on a built-up area of about 9,500 sq ft, which reflects a gross yield of close to 2 per cent, said its exclusive marketing agent Savills Singapore. It said recent notable shophouse transactions include 64 Club Street, which sold for about $3,880 psf, 77 Amoy Street for about $3,500 psf and 75 Amoy Street for about $3,900 psf on built-up area. The Smith Street corner plot is located within two and five minutes' walk from the Chinatown and the upcoming Maxwell MRT stations, respectively. Zoned full commercial, the three contiguous shophouses have a total gross floor area of about 9,500 sq ft and occupy a combined land area of about 2,784 sq ft. The shophouses enjoy full occupancy with approved restaurant use on the first and second storeys, backpackers' hostel on the third storey and a traditional Chinese medicine clinic in the attic, said Savills Singapore. "Recent shophouse transactions in District 1 continue to shore up prices and lend proof to shophouses being an extremely attractive asset class," said Savills Singapore director of investment sales Donald Goh. "These three shophouses' excellent location along the Chinatown Food Street, smack in the heart of a tourist hot spot, puts it right up there among the creme de la creme of shophouses. It presents an unparalleled opportunity for the astute investor to own a rare freehold collectible in a bustling F&B (food and beverage) and tourist destination." The tender closes on Sept 25.
SINGAPORE - A white or mixed-use site at Pasir Ris Central, spanning 3.8 hectares, was launched for sale by public tender on Monday (Aug 27) in a dual-envelope exercise, under the government land sales (GLS) programme's confirmed list for the second half of 2018. The Housing & Development Board (HDB) launched the 99-year leasehold site as part of Pasir Ris Town's "Remaking Our Heartland" plan. The commercial and residential development slated for the site must be integrated with a bus interchange, a polyclinic and a town plaza. The 38,003.7 square metre (409,070 square feet) land parcel next to Pasir Ris MRT station can also yield up to 600 private homes, and has a maximum permissible gross floor area of 95,010 sq m, said HDB. The proposed gross plot ratio is 2.5. Tenders received will be evaluated under a concept and price revenue system, which requires tenderers to submit their concept proposals and tender prices in two separate envelopes. Only short-listed concept proposals will go on to have their price envelopes considered. SSchools in the area include Elias Park Primary, Hai Sing Catholic School and Loyang Primary. The tender for the site closes at noon on Dec 14.
A conservation shophouse with an attic in Boon Tat Street has been put up for sale via an expression of interest exercise with price expectations of around $17 million. The shophouse in the Telok Ayer Conservation Area has permanent food and beverage (F&B) approvals granted for both floors, and houses the Michelin-starred restaurant Cheek by Jowl. The 999-year leasehold site has a land area of 1,759 sq ft and the indicative guide price is in the region of $17 million, which works out to a unit land rate of about $4,388 per sq ft (psf) on gross floor area. It is a short walk from Telok Ayer and Raffles Place MRT stations in the central business district (CBD) and accessible via the Marina Coastal and Central expressways. The property is a a well-located asset with strong tenant covenant and rental income, said Mr Clemence Lee, associate director of capital markets at marketing agent JLL. "Moreover, shophouses with F&B approval on two floors are rare as the authorities are becoming increasingly selective in granting such approvals," he added. Recent transactions for shophouses in the Telok Ayer Conservation Area include 77 Amoy Street, which sold for $25 million (about $3,500 psf) in March, and 75 Amoy Street, transacted at $18 million (about $3,900 psf) in February. Foreigners are eligible to buy the property at 21 Boon Tat Street as it is on land zoned for commercial use. No additional buyer's stamp duty or seller's stamp duty will apply to the purchase. The expression of interest exercise closes on Sept 20. Separately, Cheng Hoe House, a group of eight freehold townhouses, was launched for collective sale yesterday for $28 million, marketer Teakhwa Real Estate said. The reserve price reflects a land rate of $1,082.9 per sq ft per plot ratio (psf ppr), including a development charge of about $6.1 million. Teakhwa Real Estate said the land price would be reduced to $1,052.5 psf if the 10 per cent bonus balcony area is included. The 22,484.9 sq ft freehold residential site has a plot ratio of 1.4 and allowable height of up to five storeys. Its potential gross floor area could translate into 29 apartments with an average size of 1,076 sq ft per unit for a new development. The property at 10 Kovan Road is surrounded by mostly landed and low-rise housing and is within three minutes' walk of Kovan MRT station as well as Heartland Mall and Kovan City. Rosyth School and Paya Lebar Methodist Primary School are about two kilometres away. "The potential freehold residential development will appeal very much to owner-occupiers and first-time buyers with parents living close by the estate," said Teakhwa Real Estate managing director Sieow Teak Hwa. The tender closes on Sept 19.
SINGAPORE - Cheng Hoe House, a group of eight freehold townhouses, was launched for collective sale by tender on Monday (Aug 20) for $28 million, marketer Teakhwa Real Estate said. The reserve price reflects a land rate of $1,082.9 per sq ft per plot ratio (psf ppr), including a development charge of about $6.1 million. Teakhwa Real Estate said the land price would be reduced to $1,052.5 psf if the 10 per cent bonus balcony area is included. The 22,484.9 sq ft freehold residential site has a plot ratio of 1.4 and allowable height of up to five storeys. Subject to approval from the relevant authorities, the potential gross floor area (GFA) could translate to about 29 apartments with an average size of 1,076 sq ft per unit for the new residential development. The property is located at 10 Kovan Road, surrounded by mostly landed and low-rise housing and within three minutes' walk of Kovan MRT station, Heartland Mall and Kovan City. It is also within 2km of Rosyth School and Paya Lebar Methodist Primary School. "The potential freehold residential development will appeal very much to owner-occupiers and first-time buyers with parents staying close by the estate," said Sieow Teak Hwa, managing director of Teakhwa Real Estate. The tender for Cheng Hoe House will close on Sept 19, 2018 at 2pm.
A CapitaLand and City Developments Ltd (CDL) tie-up has clinched a commercial and residential site in Sengkang Central. Their winning bid of $777.78 million works out to $923.59 per square foot per plot ratio (psf ppr) for the 99-year leasehold site next to Buangkok MRT Station. In a joint statement yesterday, CapitaLand and CDL said their joint venture will transform the 3.7ha site - the largest commercial and residential site awarded since 2015 - into an integrated community hub with 700 residential apartments, meeting the needs of residents in Buangkok with amenities such as a hawker centre, community club, childcare centre, retail shops, as well as public rail and bus transport facilities sited in a one-stop location. The integrated development is targeted for completion in the first half of 2022, they added. The winning bid was the highest of the four shortlisted tenderers for the dual-envelope (concept and price) tender, said the Urban Redevelopment Authority, which awarded the site yesterday. The other three shortlisted bids came from: â€¢A tie-up between Perennial Singapore and Qingjian Realty, which bid nearly $682 million; â€¢A Singapore Press Holdings and Kajima Development tie-up, which bid $636.39 million; and â€¢A Wing Tai Holdings and Keppel Land tie-up, which bid $608.9 million. These four bids were shortlisted from seven bids submitted by six tenderers; one of the tenderers submitted two concept proposals. All bidders were required to submit their concept proposals and tender prices in two separate envelopes. At the first stage of the tender process, those concept proposals that had substantially satisfied the evaluation criteria were shortlisted to proceed to the second stage of tender evaluation. At the second stage, only the price envelopes submitted by the tenderers of the four shortlisted concept proposals were opened for consideration. The site was then awarded to the tenderer with the highest bid. The proposed mixed-use development will have an integrated community and transport hub with a bus interchange on the first storey, a hawker centre on the second storey and a community club that spans across three storeys. "CapitaLand looks forward to partnering CDL to shape and transform the site into a landmark development that will be an identity marker and new focal point for the Buangkok neighbourhood," CapitaLand president and group chief executive Lim Ming Yan said. "We see tremendous potential in this site which has exceptional attributes," CDL group chief executive Sherman Kwek said. "Various amenities and recreational facilities such as a hawker centre, childcare centre and civic plaza will be right at the residents' doorstep, giving rise to a vibrant and bustling community."
The Regalia, a freehold condo located at 2 River Valley Close, has been put up for public tender. The District 9 property sits on a freehold site of 63,371 sq ft and commands "prominent corner dual road frontages" of about 150m along River Valley Close and River Valley Road, according to CBRE, the exclusive and sole marketing agent for the collective sale. The owners have indicated a guide price of $403 million, reflecting a land price of $1,892 per sq ft per plot ratio (psf ppr). Taking into consideration the 10 per cent bonus gross floor area for balconies, the land price will be $1,814 psf ppr, said CBRE. The site is zoned "residential", with a plot ratio of 2.8 and height control of up to 36 storeys, going by the 2014 Urban Redevelopment Authority (URA) Master Plan. Based on URA's gross floor area (GFA) verification, the site's existing GFA is higher at 213,052 sq ft, or equivalent to a plot ratio of 3.36. This means no development charge is payable if a new development is built up to the existing GFA, including bonus area, CBRE added. The maximum allowable GFA after taking into account the 10 per cent bonus area on balconies is 234,357 sq ft. The site can potentially be redeveloped into a residential development of 302 units. The Regalia currently has 112 apartments and four penthouses. CBRE said the most recent collective sale site transacted in River Valley was Pacific Mansion in March. Located next to The Regalia, Pacific Mansion was sold by CBRE in March to a tripartite joint venture among GuocoLand (Singapore), Intrepid Investments and Hong Realty for $980 million. This translates to $1,987 psf ppr before taking into account the bonus area for balconies.
Owners of St Thomas Ville, off River Valley Road, are eyeing bids in excess of $58 million for their District 9 property in a collective sale. More than 80 per cent of the owners have consented to the sale, sole marketing agent JLL said in a media statement yesterday. The freehold 12-storey site in St Thomas Walk comprises 23 apartments built on a regular-shaped plot. The 11,407 sq ft site is zoned "residential" under the Urban Redevelopment Authority's (URA) 2014 Master Plan, with a gross plot ratio of 2.8 and an allowable height of up to 36 storeys, JLL said. The asking price works out to about $1,816 per sq ft per plot ratio (psf ppr), or $1,754 psf ppr after factoring in the 10 per cent bonus balcony and corresponding estimated development charge of around $3.6 million. The site is within walking distance of Great World City and the Orchard Road shopping district, and is about 600m away from the upcoming Great World MRT station on the Thomson-East Coast Line. Places like Robertson Quay, Boat Quay, Liang Court and Chinatown are a short drive away. JLL said the site is not subject to a pre-application feasibility study. Such a study requires potential buyers to engage an experienced traffic consultant to assess the transport impact and recommend a development proposal that is car-lite in nature, according to the URA website. The agent added that as the site is also located within the central area, the guidelines on minimum average size of 70 sq m are not applicable. "The site's excellent locational attributes would appeal to small and mid-sized developers looking for smaller development plots in prime areas," said Mr Tan Hong Boon, regional director of capital markets at JLL. The tender closes on Sept 10.
The Windy Heights condominium in Kembangan is having another stab at a collective sale, with some owners ready to cut the reserve price to attract buyers in a cooling market. The move comes hot on the heels of a failed bid for the freehold District 14 development that ended in April without a successful tender being lodged. It also comes after tough new property cooling measures kicked in on July 6. The $806.2 million reserve price is unchanged from the earlier attempt, but marketing agent Knight Frank Singapore said yesterday that "owners are going through a re-signing process to revise the reserve price". If enough owners agree, the price tag will drop by 6.97 per cent to $750 million. The revised price would work out to $1,089 per sq ft per plot ratio (psf ppr), including a bonus balcony gross floor area of 10 per cent, subject to approval. This is down from the original land rate of $1,171 psf ppr, or $1,288 psf ppr without the balcony area. No development charge is payable. Windy Heights, which is at Jalan Daud, comprises 192 apartments, eight penthouses and two commercial units on a 23,291 sq m (250,702 sq ft) site. Knight Frank said the plot could be redeveloped into as many as 581 new homes, at 100 sq m on average for each unit. Mr Ian Loh, Knight Frank's executive director and head of investment and capital markets, said there "isn't much impending supply in the Kembangan and Bedok area... hence new launches in the area are likely to be sought after". Windy Heights launches its new sale bid in a market that is still weighing up the new cooling measures. These included a 10 percentage point hike in the remissible Additional Buyer's Stamp Duty (ABSD) to 25 per cent for entities and a new, non-remissible 5 per cent ABSD. Some projects, such as Horizon Towers in Orchard's Leonie Hill Road, have extended their tender deadlines. Mr Alan Cheong, senior director of research and consultancy at Savills, said the situation has changed since a collective sale drought in 2014 and 2015 when owners were reluctant to cut reserve prices despite market conditions. "Most will refuse to budge, but some will be more flexible because they know it's different this time round," he noted. Mr Cheong predicted that sellers gunning for up to $350 million may shave off at least 5 per cent to absorb the non-remissible ABSD for developers. But bigger sites could need discounts of 10 per cent to 15 per cent to woo developers, he said, adding that having more owners meant higher chances of having more people who would not budge. The new tender for Windy Heights closes at 2.30pm on Sept 7.