Category Archives: Landed Property

Tussle over land in Joo Chiat Place

Two sisters in their 80s locked horns over a piece of land in Joo Chiat worth over $2 million. And last week, the High Court awarded the property to elder sister Zulaikha Bee Abdul Kader.

The disagreement centred on a deed which their mother Fatimah Sultan made in 1971, declaring that she held the land on trust for Madam Zulaikha.

There are three houses on the 688.7 sq m plot in Joo Chiat Place, and the spat involved two of them. The third is owned by Madam Zulaikha’s brother-in- law Mohamed Abdul Kader.

– See more at: http://business.asiaone.com/news/elder-sister-wins-fight-over-land#sthash.vfY09JcL.dpuf

URA changes for STRATA landed housing development

URA have revised the guidelines for strata landed housing developments to improve their compatibility with the environment of landed housing estates. This complements efforts to inject more greenery in Singapore’s urban environment in the recently announced LUSH 2.0 Programme.

There is a new set of formulae to determine the maximum number of houses allowed in various types of strata landed housing developments and new guidelines to enhance the communal facilities and greenery provision within such developments.

The Urban Redevelopment Authority (URA) has revised the guidelines for strata landed housing developments to improve their compatibility with the environment of landed housing estates. The revised guidelines also complement URA’s efforts to inject more greenery in our urban environment in the recently announced LUSH 2.0 Programme.

Under the revised guidelines, there is a new set of formulae to determine the maximum number of houses allowed in various types of strata landed housing developments. The new formulae will generally result in fewer strata landed units compared to the previous formulae. It addresses feedback from residents in landed housing estates that such developments could inject a disproportionately large number of units, causing additional traffic and parking problems as well as creating a more congested living environment.

There are also new guidelines to enhance the communal facilities and greenery provision within such developments. Developers will have to set aside at least 45 per cent of the land area for communal open space, up from the current 30 per cent. Of this, a minimum of 25 per cent has to be set aside for on-ground greenery while up to 20 per cent can be used for communal facilities like swimming pools and playgrounds.

The revised guidelines apply with immediate effect from 23 August 2014. See Annex A for an overview of the revised guidelines.

More space for more play

Commonly known as cluster housing, strata landed housing is a form of landed housing that comes with strata titles. They are allowed within landed housing estates, including Good Class Bungalow Areas.  It offers home buyers a housing option that combines landed housing living with communal facilities and greenery like those available in private condominiums.

Communal open space forms part of the common property area of strata landed housing developments and include gardens, landscaped areas and recreational facilities such as swimming pools and playgrounds for the common enjoyment of the residents. Communal open spaces safeguard the provision of communal facilities and spaces within the development, and create a sense of openness that many people desire.

By increasing the minimum communal open space to be set aside in strata landed housing developments and mandating minimum on-ground greenery coverage, we hope that strata landed housing developments will further enhance the quality of the living environment for residents.

 
 

Upcoming MRT line a boon for REITS, new condo developments and existing residences

A number of property outfits owning sites along the future Thomson-East Coast Line have been touted as likely beneficiaries of the 13km, nine-station MRT line skirting the east shoreline.

They include real estate investment trusts (Reits) and mainboard-listed developers.

“Residential developments in the vicinity will likely see 5 per cent to 10 per cent capital gains, retail malls will benefit from growth in shopper traffic, while office and industrial properties will benefit from improved tenant demand,” UOB KayHian analyst Vikrant Pandey said in a research report this week.

Potential beneficiaries include CapitaLand, Keppel Land, Roxy Pacific, Chip Eng Seng, UOL, Suntec Reit, Keppel Reit, Frasers Centrepoint Trust, Keong Hong Holdings and Ascendas Reit, he said.

Maintaining an “overweight” call on the property sector, Mr Pandey saw the new line as a long-term catalyst.

“We like deep-value and diversified property stocks, preferably those with exposure to the commercial and hotel segments.”

He added: “CapitaCommercial Trust, Suntec Reit, Keppel Land, CDL Hospitality Trusts, CapitaLand and Wing Tai are our preferred picks.”

DBS Group Research, in a report this week on the construction sector, said further rail developments in the Thomson-East Coast Line will add $24 billion worth of construction activity for the period until 2024.

Scheduled to be completed in two phases, the $6.8 billion line will run almost parallel to the East-West Line and the future Downtown Line 3, significantly cutting travel time from the East Coast to the Central Business District, Orchard Road and the northern part of Singapore.

It is also expected to bring the MRT to within walking distance of an estimated 160,000 households there.

Upon the line’s completion by 2024, properties near the new MRT stations – at Tanjong Rhu, Katong Park, Amber, Marine Parade, Marine Terrace, Siglap, Bayshore, Bedok South and Sungei Bedok – are all expected to see higher rentals, which lead to potential capital appreciation, OrangeTee senior research analyst Wong Xian Yang said yesterday.

New residential developments along the East Coast, including CapitaLand’s Marine Blue condo project in Marine Parade and UOL’s Seventy St Patrick’s, are likely to see renewed interest.

Meanwhile, developers with existing investments in the area could realise significant redevelopment potential in the medium to long term, Mr Pandey said.

These include Roxy Pacific’s Grand Mercure Roxy Hotel, and the upcoming Master Contract Services’ and Keong Hong Construction’s hotel development along East Coast Road.

Existing residential developments near the new line, including Water Place, Pebble Bay, The Waterside, Aalto, Cote D’Azur, Laguna Park, Bayshore Park, The Bayshore and Costa Del Sol, could benefit in the medium term, said Mr Pandey.

However, the ongoing property cooling measures may dampen price appreciation in the near term, he added.

Retail Reits including Frasers Centrepoint Trust, which owns Changi City Point; Starhill Global Reit, which partially owns Wisma Atria and Ngee Ann City malls; and SPH Reit, which owns Paragon, could benefit from increased shopper traffic as a result of better connectivity.

Improving connectivity to Changi Business Park and housing estates such as Tampines, the Downtown Line will be extended with a new station, Xilin, linking Sungei Bedok along the Thomson-East Coast Line with the Expo station on the Downtown Line, Mr Pandey said.

Greater connectivity to Changi may increase demand for logistics space in Changi South and Changi Business Park, which could benefit Ascendas Reit, Soilbuild Reit, Cache Logistics Trust, Viva Industrial Trust and Mapletree Industrial Trust.

Office developments along the new line, including Marina Bay Financial Centre and OUE Downtown in Shenton Way, may see improved demand, he said.

– See more at: http://business.asiaone.com/news/upcoming-east-coast-line-boon-those-nearby#sthash.ZgEHNI8A.dpuf

More homes sold as prices slip in Q2

Buyers jumped back into the local housing market as prices of both public and private homes fell for another straight quarter, figures out yesterday showed.

A raft of cooling measures has kept a tight rein on the market, but clear evidence of softer prices is drawing buyers back.

Private property prices slipped by a gentler 1 per cent in the April to June period from levels in the preceding quarter, when they dropped by 1.3 per cent. However, the number of homes sold shot up 46.4 per cent to 4,118 units from the first quarter to the second.

A similar scenario played out in the public housing market: Prices of resale flats fell 1.4 per cent in the three months to June 30 – a slight improvement over the 1.6 per cent drop in the first quarter.

But 4,389 Housing Board (HDB) flats changed hands during the quarter, up 16.1 per cent from the previous quarter.

This was the fourth straight dip in the HDB’s resale price index, which has seen a 5.3 per cent decline since the peak in the public market a year ago.

Although buying volumes are rising, analysts say that an increasing supply of completed condo units and public flats will continue to hold prices down.

R’ST Research director Ong Kah Seng said sellers of resale HDB flats can no longer demand high prices as the mortgage servicing ratio, which caps loans for public flats at 30 per cent of a borrower’s gross monthly income, limits large home loans.

As more owners take possession of newly completed HDB flats, the number of public homes on the resale market is likely to rise, said SLP International research head Nicholas Mak.

“Buyers of Build-to-Order flats are required to dispose of their existing HDB flats within six months of taking possession,” he said. And the supply will only increase as upgraders move into new private homes.

A total of 24,893 new units, including executive condominiums, are estimated to be due for completion by the end of next year, Urban Redevelopment Authority figures showed yesterday.

Prices on the private home front fell across all segments. City-centre prices declined 1.5 per cent, while city-fringe prices fell 0.4 per cent. Prices of suburban homes dropped 0.9 per cent.

Even though developers dangled competitive offers at new launches, the overall slide was led by non-landed resale units, which fell 1.3 per cent, while new condo units saw a 0.5 per cent dip.

Ms Chia Siew-Chuin, director of research and advisory at Colliers International, said: “This could indicate that the stalemate between home owners and buyers has given way to a softer stance among sellers.”

Upcoming launches such as Keppel Land’s The Highline Residences are expected to underpin sales volumes, which are likely to be around 4,000 to 6,000 for the second half, predicted Dr Tan Tee Khoon, executive director of residential services at Knight Frank. Private home prices could moderate by 5 to 6 per cent by the fourth quarter, he said.

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Semi-Ds hit all-time high prices

Wareham sight

A curious bright spot has emerged among the dying embers of the once red-hot private home market – landed property.

Prices of semi-detached homes hit an all-time high in the second quarter this year, according to official data yesterday, although consultants say it is too early to tell whether the uptick was a blip or a sign of a longer-term rise.

Semi-detached home prices jumped 4.2 per cent from the previous three months, in stark contrast to every other segment of the private residential market, all of which posted either stagnant prices or declines.

This increase has brought the semi-detached price index almost on par with that of bungalows in the quarter – the first time that has happened since the depths of the financial crisis in 2009.

The index, computed by the Urban Redevelopment Authority, is based on prices per sq ft (psf) for transactions posted in the quarter, but it does not indicate actual psf prices.

The median price of a semi-detached was $853 psf in the three months to June 30, higher than the $784 psf for a bungalow, according to URA figures.

Overall, landed home prices fell 1.7 per cent in the second quarter from the previous three months, significantly sharper than the 0.7 per cent slide in the preceding quarter. Bungalow prices fell 3.1 per cent and terrace house prices dropped 4 per cent.

Consultants said yesterday that semi-detached prices may have moved up in the second quarter as people change their buying targets.

More people who may have wanted to buy bungalows still find these too expensive and go for semi-detached homes instead, they said.

“Those people looking to sell bigger houses such as bungalows are still holding their prices, since they have higher holding power,” said market expert.

It is noted that even if the average psf prices of semi-detached homes approach those of bungalows, the total price of a bungalow would still be a lot higher due to its larger size.

“We haven’t seen firesales in bigger units so far. For those with the capacity to upgrade to landed, the next best would be semi-Ds.”

There was a limited supply of semi-detached homes due to a dearth of new landed homes being built, which could have contributed to the segment’s price rise. However, he said it still remains to be seen whether the price rise was a one-off.

One market analyst agreed, noting that the semi-detached price index has been quite volatile over the past few years. The small number of transactions could skew price statistics.

There were only five semi-detached homes sold in the second quarter, and only one bungalow, according to URA data.

Given that, the price increase was more likely to be a blip than a sign people are “abandoning other landed housing types and rushing to buy semi-Ds… I won’t be surprised if it drops next quarter”.

Straits Times Jul 26 2014