HDB resale prices has fallen 11.7% from 2013 peak

The resale volume for Housing Board (HDB) flats fell by 11.6 % last month from May, with 1,753 HDB resale flats were sold last month (June), compared with 1,984 in May.

At the same time, resale prices last month fell slightly, by 0.1 %, compared with May. The resale prices for the types of flats are as follows:
– three-room flats slipped 0.2 %.
– four-room flats fell by 0.3 %.
– five-room HDB flats fell by 1.5 %
– executive flats rose by 1.7 %

Across the board, HDB resale prices have fallen by 11.7 % since their peak in April 2013. Since June last year, prices have fallen slightly, by 0.2 %.

In June, HDB resale prices in mature estates rose by 0.8 % from May, compared with a 0.9 % dip in non-mature estates.

Q2 Landed homes sale highest since 2012

538 landed homes were sold in the second quarter – this is the highest quarterly volume since the fourth quarter of 2012. Overall, the number of landed homes sold has increased, driven by falling prices and limited supply of landed homes. URA flash estimates released recently indicated that prices of landed residential properties fell further by 0.4 % for Q2, down from a 1.8 % drop in the previous quarter.

The market for good class bungalows (GCBs) is lukewarm although the market for smaller bungalows in GCB areas is on a rise. Good class bungalows (GCBs) are the most prestigious segment of landed property in Singapore.

Geylang Lor 3 to be returned to state

In a first for residential properties in Singapore, 191 private terraced houses in Geylang Lorong 3 will be returned to the state when their leases run out at the end of 2020, with no extension allowed.

For the 33 home owners who are still residing there, time is running out. They will have to hand back vacant units to the Singapore Land Authority (SLA) when their leases run out in 31/2 years, with no compensation.

Only 33 units are owner-occupied. The remaining units are used for religious activities or are rented out to foreign workers when the homes’ original owners moved out over the years.

This is the first time that a residential plot of land will reach the end of its lease. The 2ha plot of land in Geylang Lorong 3 will be earmarked for future public housing, but the SLA did not give a timeline for when the redevelopment process will start or be completed.
 

112 Katong mall expecting to fetch $500M

Keppel Group has put 112 Katong, a mall in Katong/Joo Chiat area, up for sale, expecting offers around $500M. The mall, which is on a site balance of 61 years, has NLA of 207,160 sqft of retail space, plus 300 plus car park lots in the basement. The mall was first put in the market in April, with an asking price of $559M. The occupancy rate is 84%, with some units left vacant for possible refurbishment.

Make Singapore land Great again! Courtesy of 38 Oxley Road

38 Oxley Road is the top Singapore address in the media right now. What is the big deal about centre of dispute of Singapore’s first Family? How much does this plot of land worth?

More HUDC Estates in heat for enbloc sales

After the 2 recent enbloc deals involving HUDB estates being successfully sealed, namely Rio Casa and Eunosville, two more privatised HUDC estates are in the midst of launching tenders for collective sales process. Rio Casa in Hougang sold last month for $575 million and Eunosville in Sims Avenue sold for $765 million in a deal finalised this week.

The 560-unit Tampines Court may launch its tender in July, while 336-unit Florence Regency in Hougang is in the early stages. Tampines Court owners are seeking at least $960 million for the large Tampines Street 11 site, spanning over 702,000 sq ft.

Built in the 1980s and privatised in 2002, Tampines Court has 14 blocks, with 432 maisonettes and 128 apartments. Its first try of $405 million was dismissed by the Strata Titles Board in 2008. In 2011, it failed to obtain the required level of approval from residents. This is its third bid for a collective sale.

Another privatised HUDC project, Florence Regency in Hougang Avenue 2, will also start its collective sale process soon. It is the first attempt for the development, with about 71 years left on the lease.

Since the 1970s, 18 projects were built under the HUDC or Housing and Urban Development Company scheme. All have since been privatised and nine have been sold, including Shunfu Ville and Raintree Gardens last year.

HUDC sites are said to appeal to developers owing to their location in mature estates and the potential to be further intensified, given their layout and the size of units. However, the huge size of their land plots may put off some bidders, owing to rules requiring developers to build and sell all units within a designated time frame or face huge fines.

Some other potential HUDC Estate for collective sales
1. Braddell View (618K sqft land, 918 units)
2. Chancery Court (123K sqft land. 136 units)
3. Ivory Heights (825K sqft land, 654 units)
4. Laguna Park (677K sqft land, 528 units)
5. Lakeview Estate (242K sqft land, 240 units)
6. Pine Grove (893K sqft land, 660 units)
7. Serangoon Ville (296K sqft land, 244 units)

Eunosville sold enbloc at a premium

The collective sale market here is powering ahead with the sale of privatised HUDC estate Eunosville for $765 million. The price of $765 million at a premium of more than 17 per cent over the $643 million to $653 million the owners had asked for when the site was launched for tender in April.

The 330-unit Eunosville, built in the 1980s, could make way for as many as 1,399 units in a new project. The site has been sold to a Jardine Matheson Group unit, MCL Land, at the second-highest price ever for former HUDC estates, after Farrer Court was sold for about $1.34 billion in 2007. It was the estate’s second try at a collective sale after an unsuccessful bid in 2013.

The purchase costs, which includes the sale price and an additional $194 million of government charges, works out to a land rate of $909 per sq ft per plot ratio. The charges are payable to the state to intensify land use to a gross plot ratio of 2.8 and to top up the lease to a fresh 99 years.

Built in the late 1980s, the project has about 71 years left on the lease. It has 255 maisonettes over six residential blocks and four walk-up apartment blocks with 75 units. Each owner stands to get about $2.25 million to $2.41 million upon completion of the deal, subject to sale conditions.

The site could be rebuilt into a 1,399-unit development with an average apartment size of 70 sq m. The new units could be sold for an average of about $1,700 to $1,750 psf.

The latest deal came after the recent sale of Rio Casa estate in Hougang and mixed-use development Goh & Goh Building in Upper Bukit Timah Road, and One Tree Hill Gardens in the prime District 10. It is the fourth successful collective sale this year amid recovering sentiment and developers’ optimism over residential property.

The four collective sales year to date total slightly over S$1.5 billion. For the whole of 2016, there were three collectives sales – Raintree Gardens in Potong Pasir, Shunfu Ville in Marymount area and Harbour View Gardens in the West Coast area. The total value added up to slightly over S$1 billion. In 2015, the solo collective sale transaction was the S$380 million sale of the commercial/residential Thong Sia Building in Bideford Road. The peak year for en bloc sales was 2007, with 88 deals amounting to S$11.5 billion.

The collective sale fever cooled when the property market tanked during the 2008 global financial crisis though things started to revive again in 2010, when there were 38 collective sales, followed by 51 transactions the following year before activity began to wane again amid a price gap between owners of en bloc properties and developers.

Between 2014 and 2016, only five sold during this period out of 25 collective sale sites launched; implying that the other 20 sites were priced above what the market could bear.

 

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