17th May to 23rd May 2022
A 1,216 sq ft five-room flat in Henderson Road emerged as the most expensive resale flat to date after it was sold for a record price of $1.4 million this month. Meanwhile, sales of new private homes, excluding executive condominiums (ECs), held flat in April, amid the lack of new project launches.
1) Five-room HDB flat at Henderson Road transacted for record $1.4mil
A 1,216 sq ft five-room flat in Henderson Road emerged as the most expensive resale flat to date, after it was sold for a record price of $1.4 million this month, reported The Business Times.
Located in Block 96A, the unit sits at the 41st level of the 48-storey block, providing it panoramic views of the area. The flat is relatively new as its lease only commenced in 2019.
“With construction delays due to COVID, this almost-new flat offers the opportunity for buyers to move in fast. It is also rare to have new five-room flats in mature estates,” said Huttons’ Senior Director of Research Lee Sze Teck.
Amenities within the area include a swimming pool, hawker centre, market and shopping mall. Meanwhile, Tiong Bahru MRT station is just a five-minute walk away while Alexandra Primary School is also nearby.
However, this record price may be surpassed in the coming months as another five-room flat located in the same block is listed at $1.5 million, said Lee.
In Q1 2022, 82 million-dollar HDB flats were transacted. According to the PropertyGuru Singapore Property Market Report Q2 2022, asking prices for HDB resale flat prices have continued to increase in Q1 2022, reaching a record-high. However, the price growths are likely to be muted in the coming quarter, and/or hover at this peak until the BTO supply is restored.
2) New private home sales flat in April amid lack of new launches
Sales of new private homes, excluding ECs, held flat in April, with developers selling 653 units compared to 654 units in March, amid the lack of new project launches, showed Urban Redevelopment Authority (URA) data.
Including ECs, new home sales rose 19.5% to 839 units in April from the 702 units shifted in March.
On an annual basis, new home sales, excluding ECs, declined 48.6% last month.
She noted that the Rest of Central Region (RCR) accounted for most of the sales at 44.3% or 289 units. The Core Central Region (CCR) came in second at 31.5% or 206 units, while the Outside Central Region accounted for 24.2% or 158 units.
“This is the first time in 12 months that sales in the CCR is higher than the OCR,” said Lee Sze Teck, Senior Director of Research at Huttons Asia.
Furthermore, the number of new sales to foreigners has increased, from 25 units in March to 59 units in April.
As Singapore eases Safety Management Measures and reopens her borders, expatriates have also begun returning to the city. Aside from driving up rental demand, especially in the non-landed private property rental market, they are also taking up private home units. However, foreigners buying any property in Singapore are subject to a 30% Additional Buyer’s Stamp Duty (ABSD), which serves as a deterrent for those who wish to speculate on local property.
3) URA releases three residential sites in Lentor for sale
Three residential sites within the Lentor area have been released for sale by the Urban Redevelopment Authority, with the sites expected to yield a total of 1,265 residential units.
Notably, two of the sites are launched for tender under the Confirmed List while the other one is available for application under the Reserve List of the Government Land Sales (GLS) programme for the first half of 2022.
The Confirmed List sites at Lentor Central and Lentor Hills Road (Parcel B) span 13,444.3 sq m and 10,819 sq m, respectively. The Reserved List site at Lentor Gardens, on the other hand, measures 21,866.7 sq m.
Huttons Asia’s Senior Director of Research Lee Sze Teck expects the Confirmed List sites to receive lukewarm interest – with three to five bidders and a top bid of between $1,000 and $1,050 per sq ft per plot ratio (psf ppr).
All three sites are located in the Lentor Hills estate and are served by the newly-built Lentor MRT station on the Thomson-East Coast Line (TEL). There are numerous eateries spotted around the area, with great amenities within the neighbourhood such as a supermarket and childcare facilities. As a future sustainable neighbourhood, residents will be able to enjoy the lush greenery at the upcoming linear parks.
4) Liv @ MB condo sells over 75% of units
Bukit Sembawang noted that Singaporeans residing within the immediate neighbourhood accounted for more than 90% of buyers.
Located on Arthur Road near the future Katong Park MRT, the 99-year leasehold project opened for preview on 6 May, with indicative prices ranging between $1.08 million for a one-bedder and $3.63 million for a four-bedroom deluxe unit.
“Another major project launch in 2022 has achieved more than 70% sales on launch day. This is truly remarkable against the backdrop of cooling measures in December 2021, rising interest rates, rising inflation and global uncertainties,” said Huttons Asia CEO Mark Yip.
He believes that the attractive entry price of $2,080 psf further sweetened the deal for buyers, adding that the market considers the pricing to be acceptable given the hike in construction costs.
Liv @ MB is located near several prestigious schools, such as Tanjong Katong Primary School, Chung Cheng High School (Main), Tanjong Katong Girl’s School and Dunman High School, and medical centres. Future residents can also look forward to accessing shopping malls such as KINEX and PLQ Mall easily, not to mention the countless amount of nearby restaurants and eateries.
5) Kensington Park condo up for sale for $1.28bil
Inclusive of the development charge (DC) of about $178.1 million, the price works out to a land rate of around $1,414 per sq ft per plot ratio (psf ppr). The land rate will be lowered to $1,371 psf ppr, after taking into account the 7% bonus gross floor area for balconies and the DC of about $232.1 million.
Located at 2, 4, 6, 8, 10, and 12 Kensington Park Drive, the 999-year leasehold development occupies a massive 491,000 sq ft site that is zoned for “Residential” use under the 2019 Master Plan with a gross plot ratio of 2.1 and a building height control of up to 24 storeys.
The tender for Kensington Park closes on 7 July.
According to the PropertyGuru Property Market Report Q2 2022, small- and medium-sized developments will continue to be favoured in the en bloc market. Other projects that have been put up for collective sale include Lakepoint condo and Thomson View.
6) Rising interest rates, housing supply to bring headwinds for homeowners
Rising interest rates and an impending hike in housing supply could bring headwinds for homeowners who are relying on rental income, reported The Business Times citing the Institute of Real Estate and Urban Studies (IREUS) at the National University of Singapore.
Singapore’s domestic interest rates are largely determined by global market movements, particularly the US. With inflationary pressures likely to persist, central banks across the world are under pressure to increase interest rates to rein in soaring prices.
Correspondingly, the Singapore Interbank Offered Rate (SIBOR) – a popular benchmark for floating-rate home loans – and mortgage rates are expected to increase further, putting pressure on highly leveraged homeowners.
The robust rental market for private homes provides a silver lining for investors who are renting out their properties since the rent collected could serve as a buffer for the higher mortgage payments.
But the private residential rental market’s strength will be put to the test as more housing units are expected to be completed from 2022 to 2024. About 10,401 units are set for completion from Q2 to Q4 2022, 16,978 units in 2023 and another 10,850 in 2024.
Lee Nai Jia, Deputy Director of IREUS, expects the new supply to weigh considerably on private home rents, unless a large influx of foreign workers fuels the rental demand.
7) Changi Airport Terminal 2 to reopen in phases starting 29 May
Changi Airport Group (CAG) revealed that Changi Airport Terminal 2 will reopen in phases starting on 29 May to meet the expected hike in passenger traffic in the coming months, reported Channel News Asia.
The terminal was closed for upgrading works in May 2020. Once completed by 2024, the expansion will increase the capacity of the terminal by five million to 28 million passenger movements each year.
“CAG is encouraged to see the strong pickup in travel demand and has worked closely with our partners to bring forward the progressive reopening of T2 ahead of the June travel peak to meet this demand,” said Tan Lye Teck, Executive Vice President of Airport Management of CAG.
“The start of flight operations at Terminal 2 will provide more capacity to support our airline partners, who are also gearing up to serve more passengers in the months ahead. Terminal 2 will reopen in phases over the next two years to support Changi’s recovery as a regional air hub,” he added.
8) Industrial building at 1 Ang Mo Kio Street 63 up for sale for $27mil
A three-storey industrial building located at 1 Ang Mo Kio Street 63 has been put up for sale via private treaty for $27 million, revealed exclusive marketing agent CBRE.
The development has a large loading area as well as car park for redevelopment. It also comes with an ancillary office and staff canteen.
With a total gross floor area of about 116,768 sq ft, the development occupies an 87,340 sq ft site that is zoned for “Business 2” use under the 2019 Master Plan with a plot ratio of 2.5.
“1 Ang Mo Kio Street 63 will appeal to industrialists looking for presence in an established technology cluster, industrialists in advanced manufacturing, hi-tech and semi-conductor sectors,” said Graeme Bolin, Head of Occupier and Leasing, Industrial and Logistics Services at CBRE.
Locals who are looking to buy an investment property and not incur ABSD can look towards buying a commercial property or an overseas property. Want to learn more? Read our guide on Buying Commercial Property in Singapore.
9) Far East Hospitality to introduce two new Australian brands
Far East Hospitality will bring two new Australian brands – Vibe Hotels and Adina – to Singapore as part of its effort to achieve its target of 25,000 rooms by 2025 globally, reported Singapore Business Review.
Notably, the company will rebrand two existing properties, Regency House and The Elizabeth Hotel, into an Australian brand over the next few months.
Regency House will turn into Vibe Hotel Singapore Orchard, while Elizabeth Hotel into Adina Serviced Apartment Singapore Orchard.
Featuring 256 rooms, Vibe Hotel Singapore Orchard will open in Q4 2022, seeking to serve Australians and travellers looking for a taste of the contemporary Australian lifestyle.
Adina Serviced Apartment Singapore Orchard, on the other hand, will serve corporate expatriates and leisure travellers in need of transient accommodation. Featuring 88 rooms, it is set to open in July this year.
10) IREIT secures six-year lease extension at Bonn Campus
IREIT Global has secured a six-year lease extension from its sole tenant at Bonn Campus for 100% of the property beginning May 2023.
In an SGX filing, IREIT’s manager said the revised lease agreement with GMG Generalmietgesellschaft, a unit of Deutsche Telekom, will now expire in April 2029.
The lease extension brings the weighted average lease expiry (WALE) of Bonn Campus from 1 year to 7.1 years as of 31 March 2022. It will also boost IREIT’s portfolio from 3.7 years to 4.6 years.
Looking ahead, the manager said it “will continue to focus its efforts on asset management to safeguard IREIT’s occupancy rate and future income streams, by securing new leases and lease renewals at IREIT’s portfolio properties, including Darmstadt Campus where its lease is due to expire in November 2022”.
It shared that active marketing of spaces at the Darmstadt Campus is currently ongoing.
Sahiba Banu, Editorial Intern at PropertyGuru, edited this story. To contact her about this story, email: firstname.lastname@example.org.