Tag Archives: commercial

Real Estate 2015 Outlook Survey

Dear friends, 2015 is coming to an end.

We are conducting a short survey on the real estate outlook in Singapore. Please participate in this survey to help us consolidate response from the public with regard to Singapore’s property outlook for the near future.

Part 1 (Overall and Residential)
https://www.surveymonkey.com/r/L2ND99S

Part 2 (Commercial Real Estate)
https://www.surveymonkey.com/r/LSH3M9J

Thank You and Merry Christmas!

Paya Lebar Freehold Shops below $600K

Freehold Shop at Paya Lebar Regional Centre.
Face main road/entrance/bus-stop/water point.
Tenanted $1900 pm.

Call David for more details @ 94772121

http://www.sgbayhomes.com/19270612

Grandlink Square is a commercial property located in 511 Guillemard Road in district D14. This commercial space is primarily used for Mall Shop rental and sale. This Mall Shop space is 0.45 km away from Paya Lebar MRT Station/Interchange. The tenure of this commercial property is Freehold.

Lower than expected bids at tender for Yishun site

A HOUSING Board tender for a mixed-use commercial/residential site at Yishun Ave 4 which closed on Tuesday garnered a “muted” turnout from just five bidders.

This fell short of consultants’ earlier predicted six, to as many as 18 bidders by the most bullish of the lot.

Northern Resi and Northern Retail, both units of listed construction engineering group BBR Holdings, beat four others to offer the highest price of S$185.09 million, which translates to S$629.24 per square foot per plot ratio (psf ppr).

Again, this was below even the floor of consultants’ predictions of at least S$650 psf ppr for the highest bid.

The Yishun plot, with a gross floor area of about 27,327 square metres, is the first of two selected government land sale sites to adopt a new building method called prefabricated prefinished volumetric construction (PPVC). It has to meet a certain level of prefabrication under new government rules for the built sector.

Two Koh Brothers units, KBD Ventures and Changi Properties, put in a very close second highest bid of S$181.6 million (S$617.37 psf ppr), only 1.9 per cent less than the highest tenderer.

R’ST Research director Ong Kah Seng thus called the top bid a “chance occurrence”. When interest is high in a site, bidders would bid aggressively, resulting in a wide margin between the first and second bids, but there was notably no outlying top bid in this tender, he said.

Sim Lian (Focus) Pte Ltd put in the third highest bid of S$168 million (S$571.14 psf ppr). The fourth and fifth bidders were Wee Hur Development and KSH Land Development, respectively.

Desmond Sim, CBRE research head for South-east Asia, said it was not surprising that the tender participants were developers with a construction arm, given the site’s mandatory use of PPVC technology. “Such developers have the advantage of being able to control construction costs better, transferring potential savings into their profit margins,” he said.

But the higher construction cost using the PPVC method – which involves assembling whole rooms or apartment units complete with internal fixtures off-site, and installing them on-site Lego-style – may also have been priced into the subdued bids, SLP International executive director Nicholas Mak said.

“In a buoyant property market, the developer may be able to pass on the higher construction costs to the buyers. But this could be difficult in the current market,” he said. The alternative would thus be for the developer to lower its own land costs.

Ong Teck Hui, national research director at JLL, said the bidders also likely also took into account retail and residential competition in the vicinity.

Northpoint City, an integrated development which includes the largest mall in the north, will be completed in 2018, while Junction Nine at Yishun Ave 9 will be ready in mid-2017. There are also some 920 units for sale at Northpark Residences, and 660 units for sale at Symphony suites.

Chia Siew Chuin, director of research & advisory at Colliers, cited the requirement for the commercial component of the development to be held under a single strata lot as another reason for the low bids.

“This disallows any strata subdivision of the commercial component during the lease term, which could have prompted a more cautious bidding strategy from developers due to the more restrictive investment exit options available,” she said.

The expected breakeven price for the residential component is estimated to be S$950 to S$1,000 psf. Its selling price could range from S$1,050 to S$1,150 psf, depending on the state of the market when it launches, she said.

The retail component could also achieve monthly gross rents of S$6 to S$12 psf, she added.

http://www.btinvest.com.sg/property/local/lower-than-expected-bids-at-tender-for-yishun-mixed-site/

Rezoning of Geylang by URA

The Urban Redevelopment Authority on Tuesday (Jan 13) announced it is proposing to rezone parts of Geylang, so as to better manage the area in question and “prevent spillover of disamenities to surrounding areas”.

URA said the proposed area is bounded by Geylang Road, Lorong 22 Geylang, Guillemard Road and Lorong 4 Geylang, excluding the parcels of land zoned Road, the lots fronting Geylang Road and the sports field bounded by Talma Road and Lorong 12 Geylang. It plans to rezone this area from Residential/Institution to Commercial/Institution, according to its press release.

Explaining the decision, URA Group Director for Physical Planning Hwang Yu-Ning said in the proposal that Geylang is a “rich and colourful neighbourhood” interspersed with associations, clans, places of worship, shops, offices and residential uses. It is also a traditional red-light area, she noted.

“The various entertainment and eating outlets in the area give rise to activities of a certain colour and vibrancy,” Ms Hwang said. “With more new residential developments in the area, there has been an increasing spillover of disamenities and friction on the ground.

“In our assessment, the growth of new residential community in the area of Lorongs 4-22 Geylang needs to be re-balanced and moderated.”

If the rezoning gets the go-ahead, residential units will no longer be approved in this area. She added the new residential developments in the area, which have been approved will not be affected and can proceed to be built.

A Geylang resident Channel NewsAsia spoke to welcomed the rezoning proposal.

“All these are red light areas. And if they could take this away and put it into more commercial use, like running a legal business that would be fine. It’s good to have commercial properties around your estate so that it’s convenient for everybody to go shopping or to do things or have an office near your home,” he said.

The area’s Member of Parliament (MP) said it is useful not to have more residential developments in the area.

Said Mr Edwin Tong, MP, Moulmein-Kallang GRC: “There are not many residential units there anyway. And much of the area that is being rezoned is already largely commercial, with a good mix of clans and associations. I think it is also useful to not have further residential developments there in an area where traditionally there are not just commercial properties there but also more nightclubs and bars which probably don’t co-exist suitably with residential units. ”

The URA said members of public can submit their feedback, objection or representation to the proposal in writing to the Permanent Secretary, Ministry of National Development, 5 Maxwell Road, Singapore 069110, by Feb 11, 2015.

More information on this proposal can be found on the URA website.

http://www.channelnewsasia.com/news/singapore/ura-proposes-rezoning/1586882.html

Shop for sale @ District 7

https://sgbayhomes.wordpress.com/2014/06/23/shop-for-sale-at-district-7/

A rare #01 shop along Jalan Sultan/North Bridge Road.

Property Details
Use: Shop  Size: 1997 sqft
Tenure: 99 years since 1970
Ceiling Height: 2.7m
Potential uses*: Financial institutions, F&B outlets, Retails Shops, Pubs, Furnishings and design showflats
(* subject to the approval of relevant authorities)
Sales Price: $Price on application

Brief Description

This prime #01 shopspace is facing the main road of Jalan Sultan. With substantial human traffic during both office hours and off-peak times, it is an ideal location for F&B, finance, design and other high-value businesses.

With waterpoint installed in the premises, the potential is great for this shopspace. Ideal for business operators as well as investors.

Call David King @ 9477-2121 for more details. TC shop details

Paya Lebar Site review

In a CNA news article yesterday, it was reported that though Paya Lebar area lacks character and a core focus, but that could change when a commercial site next to the MRT is released for sale in October.

http://www.channelnewsasia.com/news/singapore/paya-lebar-site-may-cost/1165722.html

SINGAPORE: A commercial site along Paya Lebar Road that is expected to be launched for sale later this year could set the tone for the development of the Paya Lebar regional centre. That is according to some property analysts, who also say that any developer keen on the site may have to cough up more than a billion dollars, just in land cost alone.

In October, the Government is expected to release a 4-hectare commercial site next to the MRT station for sale. Some analysts estimate that the potential “Grade A” development could offer about one million square feet of net lettable space, with office space taking up about 50 to 60 per cent. About 440 residential units can also be built there.

However, the site will not come cheap. “The land cost alone will be S$1 billion or even more, and that increases the risk to any single developer who wants to take a bite of this,” said Mr Alan Cheong, Senior Director of Research & Consultancy for Savills Singapore. He believes that developers will come in as a consortium for this particular site.

“This project itself, with more than 130,000 sq metres of gross floor area commercial space, together with Paya Lebar Central, will set a tone for this area,” he added. “There is no character right now for Paya Lebar.”

Once a sleepy industrial estate, Paya Lebar was earmarked for development as a commercial hub outside the city centre under the 2008 Masterplan, as part of the government’s decentralisation strategy. But some property-watchers say that the area — with its mix of workshops and industrial premises — seems to lack a core focus right now, compared to regional centres in Jurong and Tampines., and believe more can be done to attract more companies to locate here.

Said Century 21 CEO Ku Swee Yong: “SingPost is obviously not sufficient now to bring in a lot more demand for office space, or fill up the industrial B1 space in the Paya Lebar area. But if, for example, we have a Government ministry that is willing to relocate there with about 70,000 sq ft of space – that could be a trigger, a catalyst that would bring other SMEs and service-providers to Paya Lebar Regional Centre.”

According to Savill, the average office rental rate at Paya Lebar is currently around $6.50 per square foot per month, compared to S$5.50 in Tampines, and S$7 to S$8 for some of the newer commercial projects in Jurong. Analysts add that Paya Lebar could potentially appeal to firms in the IT, telecom and multimedia industries.