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29 June 2012

29th June, Friday




Prices of suburban condos above 506 sq ft most resilient

Source: Business Times

Prices of completed apartments above 506 sq ft in the Non-Central Region or suburban areas have been the most resilient year to date (up to May) followed by small units islandwide. Big apartments in the Central Region have fared the worst, show data from NUS.

Based on NUS's Singapore Residential Price Index (SRPI) series, which tracks prices of completed apartments and condos, the sub-index for the Non-Central Region (excluding small units) rose 1.9 per cent between December last year and May this year.

Over the same period, the sub-index for small units (up to 506 sq ft) islandwide dipped 0.1 per cent, while the sub-index for the Central Region (excluding small units) slipped an even bigger 2 per cent. Central Region is defined as Districts 1-4 (which include the financial district and Sentosa Cove) and the traditional prime residential districts of 9, 10 and 11.

The pattern is similar to trends in the past two years. In 2011, the Non-Central Region sub-index (excluding small units) rose 11.3 per cent, higher than a 10.6 per cent increase for small units islandwide and 5.1 per cent hike for Central Region (excluding small units)

In 2010, the three indices posted gains of 14.9 per cent, 13.8 per cent and 7.7 per cent respectively.

NUS's May 2012 flash estimates released yesterday show that the overall SRPI increased 1.5 per cent in May over the preceding month. This is double the 0.7 per cent month-on-month hike in April. The sub-index for small apartments islandwide posted a 0.9 per cent month-on-month rise in May, against a drop of 0.8 per cent in April.

The sub-indices for the Central Region and Non-Central Region, both excluding small units, were up 0.8 per cent and 2.2 per cent respectively month on month for May.

The SRPI series, minted by NUS's Institute of Real Estate Studies, tracks prices of completed private apartments and condos (excluding executive condos).


Links to the story:,5-last-month



Top bid for Potong Pasir housing plot beats expectations at $115m

Source: The Straits Times

A residential site in Potong Pasir attracted 13 developers, with Santarli Corporation topping the bidders with an offer that beat expectations.

The investment holding company lodged a bid of $114.8 million or $628.2 per sq ft per plot ratio (psf ppr) for the plot in Pheng Geck Avenue.

OUE Reef Development was next at $113.75 million, just $1.05 million behind.

The 4,850 sq m plot can be used for condominiums, flats or serviced apartments and possibly some strata-titled landed homes. The development can go as high as five storeys with a maximum of 242 units.

Consultants said the top bid works out to an estimated breakeven price of between $1,000 and $1,100 psf with selling prices estimated at $1,200 to $1,400 psf.

Experts said the strong interest was due to the plot's good location.

An analyst noted: 'The site attracted 13 bids primarily because of its city fringe location and the fact that it is near St Andrew's Village and the Stamford American School just down the road.'

DWG's senior manager of research and consultancy, Mr Lee Sze Teck, added that recent development activity nearby could have pushed up its appeal. 'The Potong Pasir area is undergoing a rejuvenation in the past two years with new residential project developments,' he said. 'Projects in the area have also done well, with Nin Residence almost 85 per cent sold and 18 Woodsville 77 per cent sold as of May 2012.'

This is the third site in Pheng Geck Avenue that the Government has sold in the past two years - and also the priciest in terms of psf ppr.


Links to the story:$114,8m-bid





JTC Corporation launches Surface Engineering Hub

Source: Business Times

JTC Corporation has launched a new $50 million hub to serve the surface engineering industry.

Dubbed as the Surface Engineering Hub (SEH), this high-rise multi-tenanted manufacturing facility located on a 1.88 ha site at Tanjong Kling will host an integrated ecosystem of companies in the surface engineering industry. This integration will promote the sharing of know-how to drive collaborative growth opportunities. The companies include surface finishers and plating technology researchers. Tenants of the SEH will benefit from a centralised wastewater treatment plant that will reduce their space requirements and upfront capital investment on top of accelerating the start-up of their operations.

This facility, which is expected to achieve the Temporary Occupational Permit in the second half of 2013, will comprise 63 units totalling 20,360 sq m in production area. It will also house complementary businesses such as testing and certification companies as well as chemical solution suppliers and laboratories. Thirteen companies are understood to have taken up 40 per cent of the space in the hub.


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Industrial sites draw new players

Source: The Straits Times

The buzzing industrial property market has attracted unfamiliar developers in recent months as the residential market slowed after recent cooling measures.

Examples of entrants not usually associated with the industrial sector include contractor Hock Lian Seng Holdings, which won a site in the Kaki Bukit area two weeks ago with a top bid of $27.3 million. Another is Fragrance Biz Space, which in April won a site at Sims Drive/Aljunied Road for $43.4 million. It is a unit of hotel and residential property player Fragrance Group.

SCB Terraform and Alexis Development are other less familiar names to have won industrial plots recently.

Industry insiders said a hot market segment awash with opportunities is bound to attract new players to the scene. Industrial sites are also usually smaller, thus more manageable, than residential sites. A smaller total price minimises the risk for firms.

But veteran developers warned new players might find the going tough. A company managing director, who did not want to be named, said: 'They might not fully understand the market. Industrial property is not as standard as the residential market.

'You really have to know how to suit the end-users... the layout of the place, height needed, power requirements, and how those will affect your cost.'

Some, like EL Development, adopt a cautious outlook, especially given the recent crackdown on unauthorised use of industrial space. So EL Development's managing director, Mr Lim Yew Soon, is focusing on developing several residential properties for now.

'I don't foresee the industrial sector going up further... it'll probably stagnate and won't drop much. But if something comes along that fits our business model, I will take it,' he said.


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Investment Sales


Faber Drive bungalow up for sale, guide price set at $12.5m

Source: Business Times

A bungalow at Faber Drive has been put up for sale by expression of interest, with a guide price of $12.5 million. The guide price translates into nearly $1,067 per sq ft (psf), based on land area of about 11,719 sq ft.

A two-storey bungalow with a build-up of 4,400 sq ft stands on the site. It also has a swimming pool.

The site is within close proximity of The Clementi Mall, Clementi Bus Interchange/ MRT Station, and the National University of Singapore. Its land size is capable of being subdivided into two plots for smaller houses which require a minimum size of 4,305 sq ft.

The expression of interest will close on 20 July at 3pm.


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