Archive for category: Executive Condo

Read more: GLS site at Marina Gardens Lane: A gamble or an advantage for becoming first?

The affiliates of Mercatus Co-Operative, a unit of NTUC Enterprise Co-operative, have entered into a sale purchase agreement with a variety of affiliates from Link REIT to divest Mercatus 100% stake of Jurong Point as well as Swing By at Thomson Plaza for $2.16 billion.

The divestment is an outcome of a strategic analysis conducted by Mercatus is scheduled to be completed by March 31st 2023.

Mercatus will remain in the ownership of assets significant for NTUC, NTUC Enterprise and its social enterprises portfolio. Jurong Point, and Swing By @ Thomson Plaza will be sold as they are considered to be non-core.

Hong Kong listed Link REIT has been ranked as the biggest REIT in Asia that is managed through Link Asset Management Ltd (Link). As part of this divestment Link is committed to hiring all employees affected by Mercatus.

Mercatus Vice Chairman Seah Kian Peng and group CEO of NTUC Enterprise says the divestment lets the company make some money and to redeploy capital in specific areas where it could help improve the lives of families living in Singapore for example, by enhancing the provision of healthcare and education.

“We applaud Link’s efforts to keep talent in the company and will partner along with Singapore’s Industrial and Service Employees’ Union in assisting Mercatus employees during this process,” he adds.

In connection with the acquisition, Link will also enter into an property and asset property management agreement that will be at the market-standard price to AMK Hub, which will remain under Mercatus the ownership of Mercatus. Link will pay for the acquisition using its cash reserves and loans.

Read more: The government announces the most housing units since the first half of 2014

HDB prices for resales continued to increase throughout 2022, despite concerns about affordability of housing as well as government interventions.

The biggest price and demand increases were observed in non-mature estates such as Bukit Batok Sembawang, Yishun, Woodlands as well as Jurong West, says Christine Sun who is senior vice-president of data and analysis of OrangeTee & Tie.

“There were buyers searching for affordable apartments within non-mature estates. Even though the costs for apartments in this area have gone up however, they are still cheaper when compared with resales of flats in mature estates” she adds.

An increasing acceptance of hybrid work arrangements due to the pandemic has meant that more workers are working at home remotely, according to Nicholas Mak, head of research and consulting of ERA Realty.

“As this is the case, some homeowners may want larger apartments, but the total availability of five-room flats on the market is still extremely low,” says Mak. At present, the government will not be offering 5 room BTO flats in estates that are mature Mak adds. “Hence those looking to purchase a five-room apartment in an older estate may look to the resale market, even if the prices are more expensive.”

BTO timelines delay buyers

The rise in resales of HDB prices in 2018 was also fueled by a surge in the demand of buyers who were dissuaded by the lengthy timelines for completion of projects for certain BTO projects.

Based on Ismail Gafoor, CEO of PropNex Realty, most first-time homeowners usually attempt to buy an BTO flat because they are subventioned. “The demand for BTO flats is generally hard and new flats can take between three and five years to finish,” Gafoor says.

That means only those with a compelling requirement for housing will keep applying for BTO flats to be their first home, according to Gafoor. People who fail repeatedly to get the BTO flat could decide to look at the resale market, he suggests.

Construction supply chain problems in the industry delayed the time to complete for a small number of BTO projects between the years 2020-2021. The government claims that the majority of these timeline issues were solved and the projects were on track by the beginning of the year.

Furthermore the government also has made it a priority to highlight during the BTO sales launch this year to emphasize the speedier waiting times for certain BTO projects that are not in mature estates, according to Mak.

In the end, there are signs that the efforts of the government to lure more buyers from market BTO market are beginning to pay off, according to Sun. “As prices for resales of flats have continued to increase while the authorities have announced new BTO projects to sell and we’ve observed more people turning towards the BTO market over the last one year,”” Sun says.

The times to finish certain BTO projects in certain non-mature estates has dipped to between three and 4 years. She states. This includes BTO project located in Bukit Batok as well as Tengah.

In a unique move, HDB responded to rising concerns about housing affordability with an announcement to the media this month. The company reiterated its position that BTO project prices are set to be affordable and has an approach to pricing that differs from private developers because HDB does not impose an additional profit margin on the top of the cost associated with BTO projects.

Buyers resist COVs with high levels

This year also saw a increasing amount of flats that are resold that have a high cash-over value (COV). It is the amount that is the difference between the selling price of the flat being resold and its HDB appraisal.

As an example at the beginning of the year, some buyers were paying COVs over $600,000 for extremely desirable flats in non-mature and mature estates. “Typically high COV is noticed in flats with several buyers who are competing for them,” Gafoor says. Gafoor.

Mak says that the majority of buyers willing to pay an expensive COV are likely to be condo downgraders who have greater cash reserves to bid higher than most first-time buyers.

However, by 2H2022, resistance to prices had been established for home buyers. In a letter to Parliament in 2018 Secretary in charge of National Development Desmond Lee shared the fact that between January and October, the percentage of homes sold with COV decreased to one-in-four flats and from one in three flats being sold in 2021.

Other market watchers are also in agreement. “In all, the buyers were less likely to pay a premium COV following Sept. 2022’s property chilling measures” Sun says. Sun. She also says that a small number of buyers might also be expecting prices to drop following the latest cycle of property market restrictions.

The September regulations included increased stress-test rates on loan applicants according to Mak. The new rules will begin to restrict the amount of home loan loans that homeowners can get, and they will have to pay the remainder from their savings, Mak says.

The September legislation included the introduction of an 15-month waiting period for private property homeowners who buy a resale flat. “These buyers who downgrade tend to have more money and are able to pay more and COV for flats of their choice. If this group of potential buyers being removed from this equation, I may expect COV to fall,” says Gafoor.

Influx of flats to MOP

An all-time high of 31,325 HDB flats are expected get to their minimum occupation time (MOP) next year. In the next year 15,784 flats are anticipated to hit MOP. This is a factor in the rise in the resales flat prices particularly with the increase in million-dollar flats being sold, according to Gafoor.

“Such MOP flats typically have higher prices due to their long balance leases and the better state in the apartment. The selling of these units has helped boost prices across the property,” Gafoor adds Gafoor.

For example, in Sembawang 3962 flats will be able to attain their MOP by close of the year. Based on the data collected by PropNex 35% of five-room and four-room flats that are resold within the estate are still under leases of over 94 years.

The average price for resales of five-room apartments in Sembawang is expected to rise to $583,000 by 2022, rising 20.4% 20.4% from that of 2021 ($484,000). The prices of four-room apartments in the area have increased to $502,000 in 2022, an increase of 20.1% from that of 2021 ($418,000) Based on the PropNex study.

Record-breaking the number of flats worth a million dollars

A greater number of resales flats were sold for over $1 million in the past few years. In 2021, 259 flats sold with a minimum value of $1,000,000the highest level since 2012.

“Most million-dollar flat transactions were through mature estates. Between January 2012 and September 2022, 13 flats purchased for at minimum one million dollars in estates that were not mature. This represents 1.6% of the total 838 million-dollar transactions that were recorded during the period.” Sun says. Sun.

The 2021 record was broken in the year that followed when 342 million dollar flats sold as of the end of November. Of the 342 units that were sold three23 flats (94.4%) are in the oldest estates, according to PropNex.

Based on HDB Resale statistics collected on December 11th, the most expensive HDB sales this year were for five- and four-room and bigger flats.

As an example, the highest expensive HDB resale of the last year came for 1,313 square feet five-room apartment located at Skyterrace at Dawson. The building, Block 92, is described as a luxury apartment loft and was sold for $1.42 million ($1,080 per square foot) in July of this year.

This price beats the previous record set in the same block. It involved a fifth-floor premium loft unit that purchased to the highest bidder for $1.33 million ($1,011 per square foot) in the month of December in 2021.

The second-highest resale took place in the adjacent City Vue @ Henderson which was one of the largest units, a 1,216 square foot five-room apartment. The flat, which is located in Block 96A, was purchased at $1.4 million ($1,151 per square foot) during May.

It was followed by a resale deal within the same block , where another 5,216 square feet was purchased at $1.38 million ($1,135 per square foot) during the same month.

While, desirable units in The Pinnacle at Duxton remain to draw some of the most expensive HDB price resales. The most expensive property was a 1,151 square foot five-room house located in Block 1F. It was worth $1.39 million ($1,206 per square foot) in March.

The block also witnessed an auction of 1000 square feet, four-room apartment in the amount of $1.23 million ($1,228 per square foot) in April of this year.

The sale of million-dollar flats aren’t the sole reason for the “unsustainable price rise” within the HDB resale marketplace in 2022, claims Lee Sze Teck, senior director of research at Huttons Asia. “But they did contribute to the perception that flats were becoming expensive.”

This could have influenced the government’s intervention by imposing property cooling plans in the month of September according to Lee.

Are the million-dollar flats worth it?

The majority of the flats which have gone over $1 million are in central areas close to amenities, specifically MRT stations.

“Dawson, Henderson, and Toa Payoh are in the city fringe. Duxton is located in the middle of the city close to the CBD. The flats have easy access to facilities and are easily accessible from The MRT station. They are a great locational advantage,” ERA’s Mak.

OrangeTee’s Sun is in the same vein and adds the fact that “many apartments could include high floor units which offer great views. Certain flats are quite spacious flats, and flats with these dimensions are not available anymore from HDB”.

Additionally projects such as The Pinnacle @ Duxton as well as Skyterrace @ Dawson have become iconic HDB developments that feature appealing design, urban planning and award-winning architecture Mak says. Mak. For instance, Skyterrace @ Dawson and its architect, SCDA Architects, won the President’s Design Award in the year 2016. Skyterrace @ Dawson was described as an example for future housing for the public in Singapore.

Similar to that, The Pinnacle @ Duxton is a well-known public housing project located in Singapore. “With the combination of attractive features, it’s not surprising that these homes have price tags of millions of dollars,” says Gafoor.

The predominance of million-dollar flats in these areas could be related to the dearth of private residential developments in the area. An investigation conducted by PropNex in September of this year revealed that certain buyers could not locate comparable alternatives on the market for private residential which met their needs and budget, so they decided to buy million-dollar flats.

“Given that the location is central and the size of the unit the private condos within the same neighborhood will be significantly more expensive than million-dollar flats. In addition to the appealing physical features of the million-dollar homes We believe that the absence of affordable residential housing in these communities could be one factor which drove the interest in these flats,” Gafoor explains. Gafoor.

Conservative attitude that home buyers have

HDB prices for resales are predicted to experience a more modest growth by 2023.

“Due to the rising rates of interest, a more hefty the stress test rate for loans, economic uncertainty in 2023 and the most recent cooling measures, buyers of homes could become less cautious” says the ERA’s Mak.

He also says that if resales of flat prices keep rising and home buyers are unable to afford the price, their monthly income might not be sufficient to be sufficient for a mortgage to purchase the flats they are looking to purchase. “The expectation of further rates of interest and economic uncertainty could trigger an increased degree of caution in buyers of homes,” he says.

Gafoor claims Gafoor says that PropNex anticipates HDB price increases for resales of by 6% to 8% for 2023. That’s which is down from its prediction of 10%-10% to 2022. In the same way, Sun of OrangeTee & Tie anticipates that price growth will slow to 5-8% next year.

For the November 2022 BTO launches, HDB released 9,655 flats. The March 2023, and the May 2023 exercise are expected to release approximately 8,200 to 9,200 flats being released.

This increased supply might assist in cooling HDB flat demand for resales but it’s unlikely to drastically alter the development of the resale marketplace in 2023, according to Gafoor. “We are still expecting HDB prices for resales to show some slight gains in 2023, aided by the demand from first-time buyers who have urgent needs for housing and buyers who want to upgrade to a larger flat or move.”

Sun states that other elements tend to reduce demand for housing in the public sector like the local average unemployment rate, growth in income as well as economic growth and the global economic outlook. “For for instance, should the employment rate remains high and income growth is strong, the increasing quantity of BTO flats might not lower prices in the coming this year.” Sun believes.

In the future the future, buyers will be more careful when it comes to home purchases in light of the rising rates of interest in mortgage loan, the rise of inflation and economic headwinds, according to Gafoor. According to Mak that the property cooling measures announced in the months of December 2021 and September this year could impact the market.

Read more: Keong Saik Road conservation shophouse is for sale for $16 million

Keppel Corporation, on Dec 19th, announced it was planning to purchase Samhwan Building, a freehold 15-storey office tower within Seoul, South Korea, for a cost that is KRW220 billion ($228.7 million).

Keppel Land Limited, Keppel Asia Macro Trends Fund IV (KAMTF IV) and KB Bank Discretionary Fund, have signed shareholders’ contracts (SHA) in conjunction with the joint venture corporation (JVCo), Gaenari (IV) and Gaenari (IV) in connection with the acquisition plan.

KAMTF IV and KB Bank Discretionary Fund is managed through Alpha Investment Partners Limited and Keppel Investment Management Co., Ltd respectively. Alpha Investment Partners and Keppel Investment Management Co. are wholly owned affiliates that are part of Keppel Capital Holdings.

In the SHA, Keppel Land and KAMTF IV will subscribe for shares in the JVCo as well as have shares of 55.93% and 44.07% respectively. Each of Keppel Land as well as KAMTF IV will also extend shareholders’ loans totalling approximately US$113.2 millions ($153.8 millions) towards the JVCo and will make an additional commitment to fund approximately US$4.84 million, proportional to their shareholding in the purchase of the property.

Following the successful completion of the deal and is expected to take place at Christmas Keppel Land will hold a 39.5% effective interest in Samhwan Building, while the remaining 31.1% and 29.4% effective stakes will get acquired through KAMTF IV and KB Bank Discretionary Fund respectively.

After the property is acquired and the necessary regulatory approval has been obtained, Keppel will conduct asset enhancement initiatives (AEIs) that include an extension horizontally, which will extend the building’s office space. The renovation of the existing space will also be carried out in an effort to boost the value of the property.

Samhwan Building currently has a total gross floor area (GFA) of 31,403 square meters. It is situated within Seoul’s Central Business District (CBD) located in Jongno-gu and is surrounded by Korean palaces that are on The UNESCO World Heritage List. The hotel has unbeatable views of the surrounding area. It’s just a 3-minute walk to the Anguk Station on the Seoul Subway line 3, and just 30 minutes from the other important commercial areas in Gangnam in Seoul and Yeouido located in Seoul.

Keppel in its announcement in its statement, states that it will incorporate sustainable features, like high-performance facades for buildings, energy-efficient heating and cooling systems and smart lighting systems. monitors of indoor environment quality, as well as intelligent building controls to increase the efficiency and performance.

“Keppel Land is thrilled to grow to South Korea through the acquisition of Samhwan Building in partnership with the private funds of Keppel Capital. This investment partnership does more than leverage Keppel’s strengths in real estate and asset management, but will also strengthen Keppel’s asset-light business model that leverages the funds of third parties to grow,” says Louis Lim as the chief executive officer of Keppel Land.

“When the refurbishment work is completed, Samhwan Building will be the centerpiece within South Korea of Keppel Land’s Sustainable Urban Renewal capabilities, which utilizes digital technologies to retrofit, ensure future-proofing and extend the life span of commercial buildings.” Lim adds.

“As the main financial and business center in South Korea, Seoul has experienced a rise in demand for office space of high quality within the city. We are thrilled to partner with Keppel Land in the purchase of Samhwan Building, a uniquely situated prime asset within the central business district which is well-positioned to take advantage of the increasing demand. Keppel Capital has managed close to $3.4 billion worth of assets with a gross floor space of 6.2 million square feet within South Korea since 2004, and we’re confident that our knowledgeable team with active asset management in the field and robust value-creation strategies will allow us to earn high returns for our fund as clients,” says Christina Tan who is the chief executive officer of Keppel Capital.

Keppel Corp. Shares Keppel Corp closed at $7.33 on December 16.

The government launched 1H2023 of the Government Land Sales (GLS) program on December 8, with seven sites that are on the Confirmed List and nine sites on the Reserve List. Together 16 sites will provide 7,715 residential units for private residences and 199,750 square meters (over 2.15 million square feet) and commercial areas as well as the hotel room capacity of 530.

Kassia showflat have access to a full range of services, including a swimming pool, sky terrace, and indoor gym.

“The increase in GLS housing supply, which is which is the most housing units listed on the Confirmed List since the 1st of January 2014 was in line to market demand since private demand for housing has outpaced unsold inventory over the last time,” claims Ismail Gafoor the CEO of PropNex.

The seven sites listed on the Confirmed List are able to be converted into 4,090 housing units. This is just 16.7% higher than the amount of units made available in the 2H2022 GLS program according to Nicholas Mak, head of the research and consulting department at ERA Singapore. In the GLS program for 1H2022 and 2H2022, the possible number of housing units grew to 39.3% and 25.9% in the previous period the expert says.

“Although it is the case that government officials are increasing its supply of land for private dwellings as part of the GLS program 1H2023 but the rate of growth has slowed,” Mak says. Mak. “A possibility behind the slower rate of growth in the housing supply could be the fact that the government is trying to balance expanding the supply of private housing and being aware of the possibility of a slowdown in economic growth in 2023.”

“Based on the last five years’ figures the average volume of transactions is estimated to be between 10,000-11,000 per year,” says Steven Tan who is the chief executive officer of OrangeTee & Tie. “The rise in supply for 1H2023 to around 4000 residential units will ensure that there is enough supply to meet the demand, after taking into consideration supply from the market that is en bloc. This will result in a stabilising impact on the cost of homes.”

The 4,090 units listed on the Confirmed List will increase the pipeline of housing for private use (including ECs) to about 65,000 units. From these, around 33,600 units will be built in the coming two years, much more that the 11500 homes that have been completed in 2021. “These homes that are completed will allow owners to meet rental needs in the near long term,” says URA.

Two of the sites in the Confirmed List are white sites located at Marina Gardens Crescent and Jurong Lake District and the other two of them are residence sites located at Champions Way in Woodlands and Media Circle in one-north. Three remaining residential sites that are located situated at Jalan Tembusu Tampines Street 62 (the executive condo or EC site located at Parcel B) and Lentor Central — were carried by the 2H2022 Reserve List and were added to The 1H2023 Confirmed List.

However, despite being subject to property cooling measures introduced in December 2021 and close of September “housing demand was still outpacing supply as Singapore adjusted to the pandemic era” claims Leonard Tay, head of research at Knight Frank Singapore. As there was a rise in the URA Private Residential Rental Index increased by 20.8% in the first nine months of 2022 and The Price Index gained 8.2% in the same time period according to Tay.

Tay anticipates that the residential site located at Champions Way to see strong interest from developers. The site will produce 345 residential units. It is located close to the Woodlands South MRT station on the Thomson-East Coast Line. The site is situated in Woodlands Regional Centre. Woodlands Regional Centre, new facilities within the region include the forthcoming integrated healthcare complex, which will comprise the hospital for acute treatment, a community nursing home and hospital due to be opened gradually in the coming two years.

The last residential private site in Woodlands offered for sale under the GLS program was nearly a decade earlier (in July 2011). This was the site located at Rosewood Drive, off Woodlands Avenue 2 which is now being transformed as the 689-unit Parc Rosewood, which is owned by Fragrance Group and Aspial Group.

Another residential suburban site that could be a draw for developers who are interested in the 1H2023 GLS program would be Tampines Street 62, an EC site located at Tampines Street 62 (Parcel B). The 2.8 ha could be transformed into 700 units of EC project. The land parcel is close to Tenet the 618-unit EC created jointly with Qingjian Realty, Santarli Realty and Heeton Holdings. It was launched on the 3rd of December. Tenet was able to sell the sale of 447 units (72.3%) sold at an average price of $1,360 per square foot. The price average is new record for ECs.

It is just a few steps away from the soon-to-open Tampines North MRT station on the Cross Island Line, the EC land parcel could attract bids of between $474 million and $500 million in the event of the station’s launch, which is between $630 and $664 per square foot per person, according to Mak.

“The GLS site at Media Circle is among the most attractive sites in the 1H2023 Confirmed Listing,” says the ERA’s Mak. The site is situated just 10 minutes from the One-north MRT station as well as only five minutes from the Ayer Rajah Expressway (AYE) which is one the most important highways in Singapore. “In addition it is also a site can be surrounded with a variety of restaurants, gyms, fitness centers, and other facilities that are sure to attract young couples and families,” he adds.

The site located at Media Circle can yield 355 units, and is located near the office buildings of Mediapolis, Biopolis and Fusionopolis in one-north. “It is in line with the government’s policy to build homes close to workplaces, and to create self-contained communities.” is Tay of Knight Frank’s Tay.

ERA’s Mak believes the location at Media Circle will appeal to the younger, chic and tech-savvy homebuyers who may benefit from the proximity to these business parks and those who enjoy a vibrant and modernised neighbourhood.”Furthermore, the future development may attract a pool of investors due to its high rentability potential from the white-collar workers in the precinct.”

The white site located at Marina Gardens Crescent can be transformed into a mixed-use project including a 775-unit residential building and 65,000 square feet GFA retail space that will provide amenities for residents, according to the Knight Frank’s Tay. Once completed, the houses in Marina Gardens will have views of the CBD, Gardens by the Bay, Marina Reservoir and sea views “at at the very least until other sites in the vicinity are constructed” Tay adds.

Developers are selling their inventory of residential units for private sale has diminished significantly in the last few years, as per Mak. “This is among the main reasons behind the continuous increase in the prices of private homes.”

The new housing development constructed on sites which were previously sold as part of the 1H2023 GLS program, which was launched to be sold only in the following 1H 2024, they will not have a significant impact on housing prices for the next year, says Mak.