31st May to 6th June 2022
Analysts have urged the Government to make the launches of projects under the Prime Location Public Housing (PLH) flats less frequent while ensuring that they are located within the city centre and offer bigger units. Meanwhile, the tender closing for two state-owned sites showed developers being cautious about their land acquisitions, amid the sombre economic outlook as well as the rising prices and interest rates.
1) Government urged to make launches of prime location flats less frequent
Analysts have urged the Government to make the launches of projects under the PLH model less frequent while ensuring that they are located within the city centre and offer bigger units, reported TODAY.
This comes after the latest PLH projects registered modest take-up rates compared to the first two launches under the new scheme in November 2021 and February this year.
“Some people may not mind the longer minimum occupancy period and other more stringent selling criteria because they may feel that such flats are exclusive, well-located and potentially can fetch quite good capital appreciation or rental returns in the future,” said Orange Tee & Tie’s Senior Vice-president of Research and Analytics Christine Sun.
“However, when there are many of these flats being released at such a short period and in close succession, some people may feel that these flat types may not be as exclusive as earlier expected.”
Huttons Asia’s Senior Director of Research Lee Sze Teck believes that buyers were not sold on the idea of PLH flats outside the city centre.
River Peaks I & II was the first BTO project launched under the PLH model. The Nov 2021 Central (Rochor) BTO flats saw an overall application rate (non-elderly applicants) of 10.3 for 4-room flats. In comparison, the overall application rate (non-elderly applicants) for the Bukit Merah and Queenstown May 2022 launches was half that, at 5.4 and 4.4 respectively for 4-room flats.
2) Prime location projects see weaker-than-expected demand
Analysts attributed the popularity of the Build-To-Order (BTO) flats in Yishun and Jurong West to the shorter waiting times of only 39 months and attractive locations. Notably, both projects are near MRT stations.
The new PLH projects, on the other hand, are located further from the city centre and have waiting times of up to five years.
The launches of multiple PLH projects in quick succession may have taken away the projects’ “exclusivity” in the eyes of potential buyers.
In this May 2022 BTO exercise, the Yishun launch was the most sought after project; the overall application rate (non-elderly applicants) for 4-room flats was 12.2. The Toa Payoh and Jurong West launch saw overall application rates (non-elderly applicants) of 10.9 and 7.4 respectively for 4-room flats.
3) Pine Grove GLS site attracts five bids, Dunman Road site gets two
The tender closing for two state-owned sites showed developers being cautious about their land acquisitions, amid the sombre economic outlook as well as the rising prices and interest rates.
With an area of 22,534.7 sq m, the land parcel at Pine Grove received five bids. According to the URA, the top bid was $671.5 million or $1,318 per sq ft per plot ratio (psf ppr) submitted by an entity of UOL. It was higher by just $800 than the second-highest bid – making it one of the closest fights in state land tenders.
“The close bids reflect the need from developers to quickly replenish their landbank with attractive sites, especially in an area where there has not been a launch in more than ten years,” said Huttons Asia.
The larger 25,234.3 sq m site at Dunman Road, on the other hand, received two bids, with the top bid of $1.28 billion or $1,350 psf ppr coming from Sing-Haiyi Jade.
Once launched, both projects are expected to achieve average selling prices of more than $2,300, said Edmund Tie’s Head of Research and Consulting Lam Chern Woon.
The government has released the Confirmed and Reserve sites for the 2H2022 Government Land Sales (GLS) Programme. There are six sites on the Confirmed List: Bukit Timah Link, Hillview Rise, Lentor Gardens, Marina Gardens Lane, Tengah Plantation Loop (EC), and Tampines Avenue 11. The size, location, and use of the sites are varied, giving developers much choice.
4) Jansen Mansions up again for collective sale, price increased to $18.9mil
The owners of Jansen Mansions made their third attempt at a collective sale, with the reserve price increased from $18.5 million to $18.9 million, revealed marketing agent PropNex Realty.
Located at 25 Jansen Road, the 12-unit development occupies a 1,541.5 sq m (16,592.7 sq ft) site and has a gross floor area (GFA) of around 2,158.1 sq m (23,229.8 sq ft). The 999-year leasehold site is zoned for “Residential” use under the 2019 Master Plan with a plot ratio of 1.4.
The new reserve price works out to a land rate of $855 per sq ft per plot ratio (psf ppr), after factoring in the development charges and the 7% bonus balcony space.
The tender for Jansen Mansions closes on 28 June.
The closest MRT station to Jansen Mansions is Kovan MRT station on the North-East Line; the station is a 15-minute walk away. Residents can access nearby shopping malls Heartland Mall and NEX shopping mall for various amenities and F&B options. Parents with young children can send their offspring to Yangzheng Primary School, Zhonghua Primary School, St Gabriel’s Primary School, and/or Rosyth School.
5) Clementi Polyclinic to be redeveloped
The Ministry of Health (MOH) has announced that the current polyclinic at Clementi will be redeveloped at a new site, along Commonwealth Avenue West, which is about 650 m away from the existing location.
Set to be ready by 2027, the standalone development will be larger “and incorporate more elderly-friendly and accessibility features for the convenience of the patients”.
MOH noted that the existing polyclinic will continue to serve the residents until the new clinic is operational.
Meanwhile, the ministry also revealed that the new Taman Jurong polyclinic will be built at the site of the former West Point Hospital.
“Singaporeans can look forward to ten new polyclinics over the coming years, in Bidadari, Bishan, Kaki Bukit, Khatib, Sembawang, Serangoon, Taman Jurong, Tampines North, Tengah, and Yew Tee,” said MOH.
“With these new polyclinics, we will expand our network of polyclinics to 32 by 2030,” it added.
6) SLA, REDAS ink MOU to spur adoption and innovation of geospatial technology
The Singapore Land Authority (SLA) has inked a Memorandum of Understanding (MOU) with the Real Estate Developers’ Association of Singapore (REDAS) to drive the adoption of geospatial technology and spur geospatial innovation in Singapore.
The MOU will see SLA and REDAS jointly promoting awareness of geospatial technologies and organising joint events and capability development programs “that can address the challenges faced by the real estate and related industries”.
Moreover, SLA will explore working with property developers “to place 3D models of their newly launched projects on OneMap to showcase the views at different building vantage points to consumers”.
The MOU marks the first industry-specific engagement aimed at showcasing how geospatial data and technology could address the challenges facing the real estate development industry across the entire cycle of pre-development, development as well as post-development stages.
7) CapitaLand Investment commits to net-zero by 2050
CapitaLand Investment Limited (CLI) aims to achieve net-zero emission by 2050 by reducing its “absolute scope 1 and 2 greenhouse gas emissions by 46%”, which is up from 28%, by 2030.
The new targets are validated by the Science Based Targets Initiative to reduce global warming to 1.5°C, in compliance with the Paris Agreement’s goals.
It also builds on existing sustainability targets, which include improving water conservation and resilience, expediting the transition to low-carbon business, and enabling a circular economy.
CLI’s carbon mitigation strategy to achieve its net-zero target will prioritise the reduction of energy use and improving energy efficiencies through innovative building designs and engineering solutions; intensifying deployment of on-site renewable energy where feasible; purchasing green power while using renewable energy certificates as a last resort.
“We are cognisant of our responsibility to not only contribute to Singapore’s Net Zero carbon goals, but also transition to a low-carbon business in the communities we operate in across the world,” said Lee Chee Koon, Group Chief Executive Officer at CLI.
8) Two-storey shophouse off Pasir Panjang Road on the market for $7.98mil
A two-storey freehold shophouse off Pasir Panjang Road has been put up for sale via expression of interest (EOI) with a guide price of $7.98 million.
This works out to about $1,911 per sq ft (psf) based on the total floor area of 388 sq m (4,176 sq ft), said exclusive marketing agent Knight Frank.
Nestled on a 201.7 sq m (2,171 sq ft) site, the shophouse is tenanted by a café and bistro on the ground floor as well as a co-living space operator on the upper floor.
Mary Sai, Executive Director of Capital Markets at Knight Frank Singapore, expects the shophouse to attract keen interest.
“The subject property has capital appreciation potential and provides stable rental income with a healthy yield of close to 4%. On top of that, there is further upside for rental growth and redevelopment potential as its plot ratio of 3 is not fully utilised,” she said.
The EOI exercise for the shophouse closes on 30 June.
9) Singtel, Lendlease to jointly redevelop Comcentre
Singtel and Lendlease have entered into a joint venture (JV) to redevelop Singtel’s Comcentre headquarters into a $3 billion world-class sustainable workplace. The telco will hold a 51% stake in the JV and Lendlease the remaining 49%.
Notably, the JV company will buy the land from Singtel for $1.63 billion in or around 2024, with Singtel “responsible for the differential premium payable on the redevelopment”.
With a total gross floor area of over 110,000 sq m, the new development is expected to be completed in 2028. Singtel will be its anchor tenant, occupying around 30% of the development’s total space.
“The redevelopment of Comcentre is in line with our capital recycling strategy to unlock the latent value of our assets and invest the proceeds in growth areas where we can achieve higher returns,” said Singtel Group CEO Yuen Kuan Moon.
“This is a strategic move that will further strengthen our financial position, bring about an exciting next-generation workplace for our employees, and contribute to the rejuvenation of the Orchard Road precinct,” he added.
10) Prime retail rents show signs of stabilising
After declining for two years, prime retail rents in Singapore show signs of stabilising, with monthly rents in the Orchard area rising 0.4% quarter-on-quarter to $21 per sq ft (psf) in the first quarter of 2022, reported Singapore Business Review citing Savills.
Prime retail rents in the Suburban areas, on the other hand, climbed 0.5% to $22.90 psf.
But with most of the COVID-19 safe management measures still in place in Q1 2022, retailers remained cautious amid uncertainty on the pace of recovery.
“Footfall and sales in the Central Business District have yet to return to normal levels as most offices were still either operating remotely in whole or adopting hybrid arrangements, resulting in a decline in catchment densities for retail space in the Downtown Core Planning Area,” said Savills.
Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email: firstname.lastname@example.org.