Pine Grove and Pea Centre’s reattempt for collective sales

The recent times have seen a spike in the real estate market of Singapore with two major properties displaying a rise in their reserve price bids. The said properties are namely the Pine Grove condominiums at Holland Road cluster and the commercial sum residential development site at 1 Sophia Road which houses the Peace Centre and the Peace Mansion.

 

On February 26, 2019, Pine Grove launched its condominiums in the market at a reserved selling price of $1.86 billion. In its current attempt to sell en block, Pine Grove has significantly raised the reserve price of the condominiums The earlier price of the property was set at $1.72 billion.

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2-Room Flexi Scheme by HDB

The Singapore Housing Development Board’s two-room flexi scheme is growing popular among the senior citizens of the country. The scheme, introduced in November 2015, allows Singapore citizen who are at least 55 years old to obtain a lease for a time range of 15 to 45 years. In addition, the flats under the said scheme come with features like grab bars on walls which make daily living conditions senior friendly.

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Singapore is aiming toward becoming a greener country

Singapore already started depositing efforts toward becoming more efficient from the point of view of the consumed energy. What does this mean? It means that some residential buildings are beginning to enjoy lower energy bills. For example, the Joo Chiat Complex enjoys a top-notch chiller system, which helped save approximately $250,000 or 1.2 million kWh when it comes to utilities. The good news that such improvements are not going to stop. One of the country’s goals is to reach an energy efficiency of 80% by the time it reaches 2020, which is great news.

 

If you go through the Central Business District, it is easy to notice an interesting structure, painted in red, at the top of the CapitaGreen building. The structure we are talking about, located above the 40th floor of the building, is actually a wind scoop. Its purpose is to take air from the outside, filtering and cooling it, and then introducing it into the buildings air conditioning system. Thus, the tall building is now capable to save energy with its cooling system while offering a pleasant environment to everybody located on the inside. Why is this necessary? Well, cooling systems are one of the main energy consumers in Singapore, eating anywhere between 40 to 50% out of the energy consumed by one single building. Paired with a double-skin layer on the building, which will keep the structure from accumulating heat, such wind scoops can help save a lot of energy that would otherwise be wasted on air cooling.

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Housing Market of Hongkong ranked least affordable

Hong Kong’s Housing market continues to be the most expensive for a record nine years in a row, reveal the annual survey conducted by Demographia, an urban planning policy consultancy. Demographia has been conducting this survey for the last 15 years with an aim to assist global economic planning. The survey seeks to highlight its core premise that smart planning can create successful cities wherein high demographic and economic growth can be achieved without abnormal housing inflation.

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Inflation in Singapore

In December 2018, Singapore’s overall inflation index rose to 0.5 per cent. The jump registered barely a month after the index had fallen to a six-month low of 0.3 per cent.

The rise in inflation rates occurred due to the inflation of prices for most services and retail goods. The country’s core inflation rose to 1.9 per cent in December. This was higher than the 1.7 per cent registered in November.

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Enbloc of Former Florence Regency

Located along Hougang avenue 2 in between the Kovan and Hougang Estate, the Florence regency was sold to Logan Property at a price of six-hundred and twenty nine million dollars towards the end of 2017. After topping up lease of the development to a 99 year tenure, the selling price of the entire land translates to $842 psf ppr (per square foot per plot ratio).

 

The reserved price of the development was set at six-hundred million dollars initially. Logan Property agreed to purchase the land at a much higher price. And each owner of the former Florence Regency will get to receive slightly above $1.8 million from the sales.

 

Florence Regency is a former HUDC and its plot area is approximately 386,000 square feet. Due to its huge land size, developer is able to build more than 1000 residential apartments within it.

 

Florence Regency will be launched in February 2019, and this project will be named as The Florence Residences. There will be 9 tower of 18 storeys and a total of 1410 residential apartments within The Florence Residences. One to Five bedroom choices will be available.

 

 

 

To find about more about the collective sales of Florence Regency, visit our link below,

https://www.straitstimes.com/business/property/florence-regency-closes-collective-sale-for-629m

Tampines

Located within the East Region of Singapore, with the Singapore Straits on its southern border, Changi and Pasir Ris to the east and north respectively and Bedok and Paya Lebar to its west, Tampines is the name of both the planning area and the residential new town. The town – at 2089 hectares – is both the third largest and third most populated new town on the island.

Artist's Impression of Tampines North from HDB
Artist’s Impression of Tampines North (Source : HDB)

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The Rapid System Transit between Johor Baru and Singapore can be completed later than 2024

The delivery term of the Rapid System Transit or RTS between Johor Baru and Singapore was set for the 31st of December, 2024. Unfortunately, due to existent delays in the schedule, the RTS has all the chances to miss its delivery term and be completed later, somewhere in 2025. What caused the delay the officials are talking about? It appears that Malaysia failed to comply when it comes to several set deadlines. Thus, the entire project is delayed and, at the moment, the officials can’t see a way to bring everything on track.

 

The projects started with the purpose of making commuting between Bukit Chagar, in Johor Baru, and Woodlands, in Singapore, much easier. The rail is supposed to have a length of 4 kilometers and it is seen as a very important link between Singapore and Johor. But, when the Parliament asked the Transport Ministry how the project is evolving, Khaw Boon, the Transport Minister, answered that progress is not being made as they’re supposed to, since two deadlines, one in June and another in September 2018, have been missed.

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Contracts in the public sector will keep the demand in the constructions domain strong this year

According to the forecasts, the demand in the constructions sector will continue to grow, due to firm contracts from the public sector. This is great news for most companies unrolling activities in this domain. However, this year may turn out to be rather challenging for smaller companies, which will have to face a more competitive market. Considering that the past three years were far from being great when it came to constructions, the new forecast is encouraging and shows that this market niche is slowly recovering.

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Oxley selling one of their landmark projects

On January 10, 2019, renowned real estate developer, Oxley Holdings announced that they are selling their landmark projects, namely, the Mercure and Novotel hotels which is located along the Stevens Road, and had already accepted a Letter Of Intent (LOI) issued by their buyer.

 

Though the identity of the purchaser remains undisclosed, Oxley announced that the offer was made for $950 million.

 

The two hotels were opened to the public in 2017. They hold the distinction of being Oxley Holdings’ first project in their hospitality venture.

 

Situated close to the Scotts Road and shopping paradise of the famous Singapore’s Orchard Road, the Mercure Singapore and Novotel Singapore on Stevens are an urban architectural treat. Other than 254 hotel suites respectively, Novotel Singapore on Stevens also offers other facilities such as a 400-seat ballroom, an infinity pool, meeting facilities, food and beverage outlets, and a 24-hour fitness center. It was awarded the Gold in the 2018 Melbourne Design Awards for its creative, aesthetic and crowd engaging urban architecture. The hotels have attracted a steady stream of guests both for purposes of business and leisure since their opening.

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Drop in Resale HDB flats

Following the most recent round of cooling measures issued by the government in July 2018, Singapore’s property market continued its downward trend until year end. 2018 closed with 5 straight months of decline in real estate resale volumes.

 

December, which is typically the slowest month of the market year, reflected a 23.9% drop from November in the number of Housing and Development Board (HDB) flats resales. The year ended on an overall drop which superseded the 20.1 percent fall of 2017.

 

Singapore’s governing authorities have been passing cooling measures now and again over the last decade to regulate and keep a check on the country’s property market. Regular investors and new buyers are both always on the watch for sudden regulatory measures when it comes to buying and selling property in Singapore. Despite this, the July measures were introduced rather unexpectedly and they have been able to produce great results in curbing the spiralling growth of the property market.

 

Part of the reason for the decline in the resale market in the last year is the restrictions placed on loan limits by the government in July. The new measures also highly affect the depreciating value of older units on the market. In addition, most buyers and sellers go on vacation in this season. Even so, the sales this December were by far much lower than the average sales generated in December the previous year. Only 1434 flats were resold in December 2018. By comparison, the HBD had recorded a sale of 1,587 units in December 2017.

 

Moreover, the third quarter of 2017 saw a wave on en-bloc sales that heavily drove investors to the property market.

 

The July 2018 cooling measures came as a huge shock to many developers, shareholders, property investors who were looking to make investments in en bloc deals .These measures not only scrambled up the estimated investment costs, they also took the attractiveness of the property market out for the everyday buyer to a large extent. There was no urgency or incentive to invest in flats thereafter.

 

The decline in demands continued despite a decrease in HDB resale prices. The prices had dropped by 0.3 percent in comparison to November rates.

 

Although the overall resale price index of HDB has been continually registering a steady fall since July, the fall has not been uniform across segments. The market for relatively larger units like four to five bedroom flats continued to get buyers who were willing to pay the premium demanded by the market trends. This is despite the fact that the premium is currently at an over market value rate.

 

In comparison there has been a dip in buyers for executive and one to three bedroom flats. The sales of flats have also garnered different results in different districts. Sengkang and Punggol for instance, have already reached their minimum occupation period and are beginning their resale phase.

 

Most flats in these areas have sold for good prices. Part of this could be attributed to the fact that these are completely new flats and have been well-designed with the latest state of art facilities at affordable rates. That the government is trying to build the areas up as digital districts may also have influenced buyers’ choices of investment in these areas.

 

In addition, it has been noted that the prices of flats in non-mature estates have registered an increase of 0.2 percent in December. In contrast, flats in mature estates have recorded a dip by 1 percent.

 

https://www.straitstimes.com/singapore/housing/hdb-resale-flat-prices-down-03-in-december-2018-sales-volume-drops-by-239-srx

 

 

New launches in the North East of Singapore

Redevelopment of the iconic Golden Mile Complex

The iconic Golden Mile Complex may turn into an important integrated development project if it manages to find an en bloc buyer, says the Urban Redevelopment Authority (URA). This was announced on January 8, 2019, in response to an application submitted for redeveloping the existing complex with an additional block.

 

The Golden Mile Complex, situated on the Golden mile stretch between Nicoll Highway and Beach Road. It holds historic importance as the Urban Renewal Department of the Housing and Development Board’s first Sales of Site programme. The programme was conceptualized as part of a redevelopment project of Singapore’s Central Area.

 

Completed in 1973, the 16-storeyed Golden Mile Complex used to be one of the highlights of the area. Built at an original cost of S$18 million, the complex integrated several functionalities including shopping malls, clubs, ticketing centers besides housing units. The property has a land area of 1.3 hectares approx and was designed with a step-terraced architectural layout. The complex is considered to be one of the earliest mixed-use developments in Singapore’s urban landscape and has been redeveloped in minor ways time and again since.

 

However, in the recent past, the complex has turned into an urban slum owing to personal development and extensions carried out by individual owners within the site. Much of these personal add-ons and constructions have been carried out without a thought to others around the apartments and this has turned the site into an eyesore. The Golden Mile complex has been critiqued several times in recent times for turning into a source of national disgrace.

 

The complex has been on a 99-year-old leasehold since 1969. But owing to its current dilapidated state the URA decided to put it up on en bloc sale with an $800 million reserve price. More than 80% of the current owners signed an agreement to this effect in August 2018.

 

At the current reserve price, the current residential owners, who are 68 in number, stand to get a gross payout of between $1.27 million and $6 million each. The 418 shop units may get a payout anywhere between $200,000 and $7 million each, dependent on the size, location and other specifics of their units. The gross payout for the 227 office units is similarly estimated to be between $360,000 and $3 million each.

 

As of now, if an en-bloc buyer is found, the URA has agreed to consider an estimated 86,000 sqm of the complex space for mixed-use development with facilities like offices, serviced apartments, hotels and retail spaces as part of the plan. This is subject to the buyer’s willingness to conserve the historic main building of the complex which has rightfully become a landmark in Singapore’s urban history.

 

It is hoped that a buyer is found soon and the new Golden Mile Complex will turn into an essential part of the redevelopment of the Beach Road corridor. This would indeed be a unique opportunity for preservation and incorporation of an iconic site into a new development if the selling goes through smoothly.

 

Depending on the buyer’s proposals for the land use, a new premium and lease upgrading premium will be made effective. It is hoped that the new buyer will top the lease up to 99 years as well. The tender exercise for the sale will be closed on January 30, 2019, at 3 pm SGT.

 

https://www.straitstimes.com/business/property/if-iconic-golden-mile-complex-is-conserved-ura-will-consider-86000-sq-m-for-mixed

 

 

New launch Condo in the city fringe / city

A higher number of HDB homeowners can now enjoy a buyback of their remaining leases

The HDB allowed some homeowners to obtain their money back on the remainder of their leases, if they wanted to move out of the homes they bought at one point. But, unfortunately, not all homeowners were able to enjoy this buyback scheme until recently. This led to the appearance of numerous senior citizens that are living in large apartments, which can generate rather considerable costs. Mr. Tang Lum Sui, for example, is one of those seniors. He is a widower and living in a large apartment, with 5 rooms. For quite a while now he’s been trying to obtain access to this scheme, but without any success.

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