1st September, Saturday
General
Commercial DC rates see a surprise hike Source: Business Times The development charge (DC) rates for commercial use were raised steeply, taking many market watchers by surprise. DC rates for industrial use also went up sharply, but the market had been bracing itself for this. Effective 1 September, average DC rates for commercial use will go up 9 per cent, while those for industrial use will rise 14.3 per cent. The buoyant hotel industry will also see DC rates climb an average of 10.8 per cent. In contrast, the average DC rates for non-landed residential use rose only mildly. They were left untouched for landed residential use. DC is payable to the state in exchange for the right to enhance the use of certain sites or to build bigger projects on them. They are revised every six months taking into account current market values.
Links to the story: http://www.businesstimes.com.sg/archive/saturday/print/213612 http://www.straitstimes.com/st/print/449112 http://www.todayonline.com/Print/Business/EDC120901-0000049/DC-rates-up-for-all-save-landed-homes http://www.channelnewsasia.com/stories/singaporebusinessnews/print/1223249/1/.html
Residential
COVs for resale flats rising again Source: The Straits Times Cash premiums for HDB resale flats are slowly inching upwards again after falling and stabilising for most of this year. Fresh data from the larger property firms revealed that the overall median COVs, or amount paid above the valuation of a flat, was about $30,000 for the previous two months. Analysts say the rebound is due in part to a stronger buyer sentiment, coming on the back of flagging premiums. The overall median was about $26,000 in the first two quarters this year, down from about $34,000 in the fourth quarter last year, according to agency estimates. Overall, analysts expect cash premiums to stay at this level for the rest of the year, although resale flat prices will continue to inch upwards. According to Dennis Wee Group senior manager Lee Sze Teck, the number of resale transactions could also slow down. "The flat launches in popular estates this month could lead to buyers waiting on the sidelines instead to try their luck," he said. The Housing Board plans to put about 6,700 flats on offer this month. These will range from new flats in Ang Mo Kio, Kallang/ Whampoa and Tampines, as well as balance flats that were unsold in previous sales exercises.
Link to the story: http://www.straitstimes.com/st/print/449283
More condo units returned this year Source: Today More buyers are returning their condominium units. Figures from a Singapore property research firm show the number has doubled in the first half of this year, compared to the same period last year. Between January and July this year, more than 720 units have been returned. The figure was 488 during the same period last year. Buyers who return units forfeit 1.25 per cent of the property value. Analysts cite two main reasons for the spike. In the past six months, some property prices have exceeded S$1,800 per sq ft. Some buyers who purchase on impulse may later regret and pull out. Another reason could be (that) some buyers are unable to secure a bank loan.
Link to the story: http://www.todayonline.com/Print/Singapore/EDC120901-0000094/More-condo-units-returned-this-year
Rentals go up near international schools Source: Today Residential properties near international schools are seeing an increase in rental prices. Over the past four years, the international student population has grown some 25 per cent, from 32,000 to 40,000. Property companies said rental prices of premises near international schools, such as in Ulu Pandan and Woodlands, often peak just before the school term begins in August. In July this year, rental prices for non-landed properties were 7 per cent higher than the monthly average. For landed properties, the increase was 2 per cent.
Link to the story:
Industrial
JTC launches two industrial sites for sale Source: Business Times JTC Corporation has made available two industrial sites at Sunview Road and Tuas South Street 8 under the industrial government land sales programme. Both plots are zoned for Business 2, which allows for clean and light development. The 2.81-ha site at Sunview Road has a lease of 30 years and a maximum permissible gross plot ratio of 2.5. "The future development is restricted to food production space as the site sits among a cluster of land plots zoned for food industries. This site should therefore be relatively popular among developers, due to the limited supply of food factories in Singapore," said an analyst. He expects top bids in this land tender to range from $80 to $100 per sq ft per plot ratio (psf ppr), and attract four to eight bids. The other plot at Tuas South Street 8 is smaller and has a shorter lease. JTC said it is targeted at industrialists who need to custom-build their own facilities. The 0.46-ha site has a 22-year lease and a maximum permissible gross plot ratio of 1.0. Analysts said the smallish site is likely to be hotly contested, and expects the site to fetch between $60 and $90 psf ppr. The tender for both sites will close at 11am on 12 October.
Links to the story: http://www.businesstimes.com.sg/archive/saturday/print/213102 http://www.straitstimes.com/st/print/449084 http://www.channelnewsasia.com/stories/singaporebusinessnews/print/1223315/1/.html
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