11th January, Friday
Residential
Private home prices set to rise further Source: The Straits Times Private home prices may keep inching up this year after the cost of suburban land rose an average of 22 per cent last year from 2011, a new report said. Developers jostled to replenish their landbanks and were prepared to bid aggressively to secure sites on offer, said the report. This sharp rise in land prices may translate to some upward pressure on selling prices for future projects in the primary market, the report said. The report expects buying sentiment to be sustained, as mortgage payments remain affordable due to the low-interest rate environment. The tight job market and rising Housing Board resale prices will also support demand from HDB upgraders.
Link to the story: http://www.straitstimes.com/st/print/741834
Investment Sales
Nod for FEO to buy six levels of AA Centre Source: Business Times The path has been cleared for Far East Organization to buy Automobile Association of Singapore's space on the first six levels of AA Centre in River Valley Road for $61.8 million after the deal was approved by AA Singapore members at an extraordinary general meeting on Wednesday night. The six levels add up to total strata area of 55,574 sq ft and will give the property giant ownership of 78.2 per cent of share value in the 14-storey freehold building and slightly more than half of the building's total strata area. This makes Far East key to any potential collective sale of the building. The deal is slated for completion in February 2014. AA Centre stands on 33,751 sq ft of land. Under Master Plan 2008, the site is zoned for residential use, with 2.8 plot ratio (ratio of maximum gross floor area to land area) and 10-storey maximum height. The 14-storey building's existing total gross floor area reflects a much higher plot ratio of about 3.78. Market watchers reckon Far East would be taking a long-term view on its acquisition of the AA Singapore's space. Next door, Far East owns a 70,637 sq ft freehold site which currently houses a sales gallery showcasing some of the group's projects. The building has some 90 basement car park lots for common use, including by the residents of the apartments/penthouses on levels seven to 14.
Link to the story: http://www.businesstimes.com.sg/print/400585
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