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21 June 2012

21st June, Thursday




Tanah Merah, Bright Hill sites launched to yield 820 homes

Source: Business Times

Two residential sites, expected to yield up to 820 housing units, were launched for sale by public tender by the Urban Redevelopment Authority (URA) and the Housing and Development Board (HDB) Wednesday.

The first site, a 99-year leasehold plot located on Tanah Merah Kechil Road, has a site area of about 150,678.5 sq ft and a maximum gross floor area (GFA) of 421,901.8 sq ft. It can house around 415 homes.

"We expect developers to be less aggressive in bidding for this site since there will be more land supply for this neighbourhood under the 2H 2012 GLS (Government Land Sales) programme, including the two residential sites at New Upper Changi Road/Bedok Road (Parcel A) under the Confirmed List and New Upper Changi Road/Bedok South Avenue 3 (Parcel B) under the Reserve List," said an analyst.

Said DWG's senior manager of research and consultancy, Lee Sze Teck: "The estimated land price is between $550 and $600 psf ppr and could see up to eight bidders."

Tender for the site will close at 12 noon, on 31 July.

The second site, a 99-year leasehold plot located at Bright Hill Drive, has a site area of about 144,635.6 sq ft and a maximum GFA of 404,979.7 sq ft. It is expected to yield about 405 homes.

"With the right orientation, the future condominium development can enjoy the unblocked view of the MacRitchie Reservoir and the neighbouring landed housing estates, such as Adelphi Park Estate, Windsor Estate and Soo Chow Garden," an analyst noted.

DWG's Mr Lee said estimated bids for the site could be between $550 and $600 psf ppr, and attract between six and eight bidders.

"There could be pent-up demand in the area as there have not been new project launches for many years. Thomson Grand, which is nearer to Bishan, is 100 per cent sold as of April 2012 at a median price of $1,300 psf," he added.

The tender for the site will close at 12 noon on 7 Aug.


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Investment Sales


Big-ticket property deals are bouncing back, and the trend is likely to continue

Source: Business Times

Investment sales of property - which cover big-ticket transactions - have rebounded to about $6.4 billion in the second quarter as at 19 June, according to preliminary figures from a consultancy. Such deals had taken a hit in the first quarter, when the figure dived to $4.8 billion (from $7.9 billion in 4Q 2011).

2Q's surge has been fuelled by the residential and office markets, including sales of Tower 15 on Hoe Chiang Road, KeyPoint on Beach Road and strata office units at Burlington Square, Tung Centre and The Adelphi.

Taking into account outstanding state tenders - such as for the private housing sites at Farrer Drive and at Pheng Geck Avenue scheduled to close on 21 June and 28 June respectively - as well as other caveats for various sectors of the property market, the final 2Q investment sales tally could reach about $7 billion. This would take the figure for first-half 2012 to almost $12 billion.

According to the consultancy' figures, investment sales in the residential sector so far this quarter have reached $3.6 billion - about $1.1 billion or 46 per cent higher than 1Q 2012. A big chunk of this came from GLS sites, amounting to $2.5 billion, up 38 per cent from 1Q.

The commercial segment too posted a $914 million or 91 per cent quarter-on-quarter jump to $1.9 billion. However, investment sales of industrial properties fell 32 per cent quarter on quarter to about $766 million.

The consultancy expects investment sales to continue apace in the second half, possibly resulting in a full-year total of $21-25 billion. "This assumes macro economic conditions improve and that financing continues to be available. Availability of debt is one of the main lifelines to the real estate investment market. Absence of debt will lead to falling investment volumes," he cautions.


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