Tag Archives: Katong Park

Enbloc potential along TEL may ring louder

With the announcement of the Thomson-East Coast Line (TEL), there were talk about the possible rise in collective sales in the District 15 area, especially those near the designated stations.

Older developments that are 20 years or older and having less than 200 units each, in areas such as Amber Road, Katong, Marine Parade and Siglap will be especially in developers’ radars, given the smaller purchase quantum and corresponding lower risks. Some of the potential developments, which are freehold, include Amber Point, Parkway Apartments, Katong Park and Equatorial Apartments. All are more than 20 years old and given their smaller plot areas, may be palatable enough to raise developers’ interests.

Meanwhile some developments along the TEL have already made several attempts to en bloc like the following:

– Laguna Park, a 99-year leasehold development with 63 years left on its lease. The last en bloc attempt was in October 2011, where the asking price was $1.25 billion, equivalent to $954psf ppr.

– Hawaii Tower, a freehold development that last attempted to en bloc in 2011 as well with an asking price of $700 million.

So with the announcement of the TEL these two developments may now stand a better chance of finding buyer

These leasehold/freehold developments may also have potential for enbloc by the time the TEL begin construction: King’s Mansions, Costa Rhu, Pebble Bay, Mandarin Gardens, Park Shore and Casuarina Cove

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

New TEL MRT Line may perk up home sales

The upcoming Thomson-East Coast Line (TEL) will ease transport woes for many thousands of commuters and help send home prices north, consultants said.

The 13km stretch could transform the area’s prospects overnight by bringing the central business district and other parts of the island within striking distance.

“For a long time, residents in the East Coast have been relying on buses or private transport,” noted OrangeTee research head Christine Li in a report yesterday.

“With better accessibility, existing and future properties in the area will benefit positively in the long run.”

The line is set to pass through Tanjong Rhu, Katong Park, Amber, Marine Parade, Marine Terrace, Siglap, Bayshore, Bedok South and Sungei Bedok, according to a Land Transport Authority announcement last week.

It will significantly cut travelling time to the central city and the northern part of Singapore.

A resident going from Marine Parade to Shenton Way will halve his journey time from 40 to 20 minutes, for example.

Colliers International research and advisory director Chia Siew Chuin said private residential areas from Tanjong Rhu through to Marine Parade and the boutique developments in Siglap and Bayshore will enjoy the most accessibility as they do not have MRT access now.

“Moving further east to Bedok South, the impact could be less, as residents there have had some access to the Bedok and Tanah Merah MRT stations,” she added.

Ms Li said 99-year leasehold condominiums such as Casuarina Cove, Tanjong Ria Condominium and Water Place in Tanjong Rhu could be among the winners, while the freehold Meyer Residence and The Belvedere in Katong Park are near enough to benefit as well. At Amber Road, projects that may enjoy some lift are mostly small to medium-sized freehold apartments like Aalto, Amber Point and King’s Mansion, she added.

Condominiums at Marine Parade like Cote D’Azur, The Palladium and The Seaview could enjoy price gains as could projects in Siglap and Bayshore such as Lagoon View, Laguna Park, Elliot at the East Coast, Bayshore Park, The Bayshore and Costa Del Sol.

Median prices of non-landed properties near the stations ranges from $905 at Sungei Bedok to $1,547 at Katong Park, noted SLP International research head Nicholas Mak.

He estimated that some property owners may increase their asking prices by 5 to 10 per cent over the next few months – as seen when the stations were announced for the North-East Line (NEL).

“People just wanted to capitalise on the news and they knew that their property would eventually appreciate. Granted, that was when the market was more buoyant,” Mr Mak added.

But the full benefits would only be reaped when the line nears completion, he added, suggesting that the sweet spot would be a 24-month period, one year before and one after the service gets going. Mr Mak, who based his estimates on when the NEL came into operation, believes there could be a 10 to 12 per cent rise in prices over that two-year period.

Some upcoming projects in the area include CapitaLand’s 124-unit Marine Blue at Marine Parade Road, which has not yet been launched, and 109-unit Amber Skye at Amber Road, said R’ST Research director Ong Kah Seng.

Amber Skye, a joint venture between China Sonangol Land and OKP Land, had launched 28 units as at the end of last month, with five selling.

Mr Ong said the MRT stations would help sales move faster but would probably not result in developers raising their selling prices.

“If developers peg prices competitively to attract buyers, especially investors, project sales will move faster. A convenient location will make it easier for investors or landlords to rent out their property.”

But should the total debt servicing ratio (TDSR) framework stick around, projects priced at $1,400 to $2,000 psf would not have much interest as that is the price range where buyers still need a loan – a far harder task these days, he added.

– See more at: http://business.asiaone.com/news/new-mrt-line-may-perk-home-sales#sthash.OtFYODEH.dpuf