3 prime apartment buildings near Orchard Road sold for $190.5m

3 prime apartment buildings near Orchard Road sold for $190.5m

Three plum residential buildings near Orchard Road have been sold to three different developers for a total of $190.5 million.

Property consultancy firms JLL and CBRE said in a joint statement yesterday that the tenders for the freehold properties in Grange Road, Cuscaden Walk and Hullet Road were launched in October with a total guide price of $185 million. The firms jointly managed the tender exercise, which closed on Nov 2, on behalf of vendors seeking offers for the buildings individually or as one lot.

In September, the three properties, owned by a group of three investment holding firms, were estimated to fetch $200 million in total. The owners were reportedly part of a trust operating in Britain.


Mr Karamjit Singh, international director and head of residential at JLL, said: “These properties attracted interest from a wide variety of parties, including long-term investors and those looking to build serviced apartments, aside from developers.”

A consortium led by Sustained Land is paying $103.8 million for 3 Cuscaden Walk – comprising 11 large four-bedroom apartment units – which has a land area of 21,560 sq ft with a gross plot ratio of 2.8.

This reflects a land rate of about $1,826 per sq ft per plot ratio (psf ppr) on the potential gross floor area, including an estimated development charge of $6.43 million.

A unit of Singapore-listed property and hospitality group Roxy-Pacific Holdings bought 120 Grange Road, an 11-storey block of 18 flats, for $48.5 million or $1,841 psf on the strata area. It has a total strata area of 26,350 sq ft, on a land area of 15,780 sq ft, with a gross plot ratio of 2.1. Roxy-Pacific Holdings executive chairman Teo Hong Lim said: “The allowable plot ratio is 2.1 times and based on the baseline which is close to 2.1, we only need to pay development charges for the bonus balconies’ gross area of additional 10 per cent. As a development site, our purchase price is estimated at $1,463.6 psf ppr.”

Roxy-Pacific also said the acquisition will be financed by internal funds and bank borrowings.

The smallest of the three properties, 8 Hullet Road, was sold for $38.2 million or $2,073 psf to Hullet Development, a consortium led by Mr Patrick Kho of Lian Huat Group.

The site has a 10-storey block of 18 apartments with a total strata area of 18,428 sq ft.

JLL noted that two apartments of 2,680 sq ft and 3,348 sq ft at The Claymore are up for sale by private treaty by the same sellers of the three properties.

Mr Jeremy Lake, executive director of investment properties at CBRE Singapore, said Hullet Development plans to build a high-end development, “given the excellent location… in the heart of Orchard Road”.

Mr Singh said that the results of the tender exercise reflect “confidence in the stability of the high-end residential market which, prior to this year, saw a steady decline in values over the preceding four years”.

Source: The Straits Times

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Posted by on January 26, 2017 in Residential


Condo resale market active in May 2016

Condo resale market active in May 2016

Resale prices of non-landed private homes rose for the third straight month in May alongside higher sales volumes – signs perhaps that sentiment in the property market is perking up.

Prices of resale private condominium units climbed by 0.4 per cent last month over April, while transactions shot up 35.7 per cent, with an estimated 840 units resold in May compared with 619 in April, SRX Property said yesterday.

“A significant contributor to the increase in volume is the greater number of resales at OUE Twin Peaks under the deferred payment scheme,” SRX noted.

May’s modest price growth follows a revised 0.6 per cent gain in resale prices in April.

Analysts told The Straits Times yesterday that prices appear to be stabilising and “astute buyers” have been active in the resale market.


Ardmore Three (centre of featured image) moved at least 19 units last month, according to analysts. Resale prices for non-landed private homes rose across the board in May from the previous month, with the core central region seeing a 0.4% gain, and prices in the city fringe and the suburbs rising by 0.3% and 0.5% respectively.

ERA Realty Network key executive officer Eugene Lim said: “The market could possibly be bottoming, as SRX figures show that resale prices have been rather stable in the past year. However, given the headwinds in the market, we do not anticipate any significant upswing in prices in the short term.”

Prices of resale private condominium units climbed by 0.4 per cent last month over April, while transactions shot up 35.7 per cent, with an estimated 840 units resold in May compared with 619 in April, SRX Property said yesterday.

PropNex Realty chief executive Ismail Gafoor said: “The increasing interest rates could also have pushed them to buy at the current lower prices as compared to waiting longer.”

The rise in resale prices last month was broad-based. Prices inched up 0.4 per cent in the core central region, and rose 0.3 per cent in the city fringe and 0.5 per cent in the suburbs from April to May.

Overall resale prices for non-landed private homes rose 0.2 per cent in May over the same month last year.

OrangeTee senior manager for research and consultancy Wong Xian Yang said: “It seems to suggest that sentiment may be slowly improving. That said, buyers are still very price-sensitive, in part due to the cooling measures.”

One statistic that stood out in the latest data was the 4.7 per cent increase in resale prices in the core central region in May, compared with the same period a year ago.

ERA’s Mr Lim said this was the highest increase in resale prices for city homes since the roll-out of the total debt servicing ratio framework in June 2013. The price rise was largely driven by sales at two completed luxury projects – OUE Twin Peaks and Wheelock Properties’ Ardmore Three – after developers offered steep discounts.

Newly completed projects like these are included in the resale category after they receive their Certificates of Statutory Completion.

Based on caveats lodged in May, OUE Twin Peaks sold at least 66 units while Ardmore Three moved at least 19 units in the month, analysts said. Homes in the city have started to look attractive after a lengthy period of slow sales following a series of cooling measures.

Savills Singapore research head Alan Cheong noted: “Feedback from agents on the ground points to renewed interest in CCR (core central region) properties as many buyers feel that value is emerging in this segment of the landed and non-landed private residential market.”

Analysts expect city homes to continue to see “price support” with the upcoming launch of the City Developments luxury project Gramercy Park.

However, overall resale prices are likely to still face downward pressure owing to the cooling measures, weak economic outlook and the large supply of new homes. OrangeTee expects private resale home prices to dip by up to 3 per cent this year.

Source: The Straits Times

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Posted by on June 16, 2016 in General, Residential


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Keen interest expected for Bukit Batok site

Analysts are expecting keen competition for a mixed residential and commercial site in Bukit Batok – the first site put up for sale in the area in several years.


The 99-year-leasehold site in Bukit Batok West Avenue 6 was launched for sale by public tender yesterday by the Urban Redevelopment Authority (URA).

The 14,696.7 sq m plot could yield about 425 residential units and up to 6,000 sq m of gross floor area of commercial space, URA said in a statement.

It is one of four confirmed list sites under the Government Land Sales programme for the first half of this year.

The site is about 1km from Bukit Batok MRT station, and not far from amenities such as Millennia Institute, Bukit Batok Polyclinic and West Mall. Analysts told The Straits Times the site could garner much interest from developers and investors.

“We expect keen competition for the mixed site in Bukit Batok West Avenue 6 as there have not been any land sites that were launched for sale in Bukit Batok in the last three to four years,” said real estate agency PropNex key executive officer Lim Yong Hock.

Mr Lim added that the upcoming high-speed rail terminus in Jurong East and the transformation of the Jurong Gateway business precinct could also have a “positive spillover effect” on Bukit Batok, which is near Jurong.

Cushman & Wakefield research director Christine Li said the upcoming development of Jurong Innovation District – announced in Budget 2016 – is another draw. The district, envisioned as an industrial park of the future, will be built as part of the Government’s push to encourage innovation.

Analysts estimate the site tender to attract up to eight or 10 bids.

“The top winning bid could range between $570 and $620 psf per plot ratio… The developer could be selling the residential units from $1,150 to $1,200 psf onwards,” Ms Li added.

JLL national director for research and consultancy Ong Teck Hui expects residential units to be priced at about $1,000 psf, with a bid price of $530 to $610 psf per plot ratio.

“There should be keen interest from HDB upgraders, including those in Bukit Batok new town, as the selling price could be close to entry level for private homes.”

The tender will close on May 24.

[Source: The Straits Times]

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Posted by on April 4, 2016 in Government Land Sales


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Millions of OKH Global shares force-sold

Millions of OKH Global shares force-sold

The stock of property developer OKH Global plunged yesterday after millions of shares that its chief executive had pledged to financial companies were force-sold.

OKH Global stock had been suspended from trading last Wednesday after the Singapore Exchange (SGX) queried a 33 per cent fall in the stock that day.

When trading resumed yesterday, the stock came under immediate pressure, eventually shedding 79.7 per cent or 27.9 cents to close at 7.1 cents, with a whopping 247.4 million shares changing hands.

The firm said in an SGX filing last night that the stock price dived yesterday due to force-selling of shares that were pledged by chief executive and executive chairman Bon Ween Foong to financial institutions.

“(He) has pledged part of his share holdings to various financial institutions… some of these financial institutions have force-sold some of the pledged shares, resulting in the drop in share price of the company,” it stated.


The statement added that Mr Bon is “deemed to be interested” in about 22 million shares pledged to UBS AG Singapore, 3.2 million shares pledged to Bank Julius Baer and 30 million shares pledged to Credit Agricole (Suisse). All the shares are registered under his name.

The firm had announced last Friday that it was in discussions with Zana Investor, the holders of redeemable convertible preference shares, on a “potential disposal of certain assets which is expected to be a disclosable transaction”, and also to vary the terms of the preference shares. No details were provided.

NRA Capital research director Liu Jinshu told The Straits Times that the preference shares likely matured early this month, “with payment due around now”.

“But the company announced last week about discussions with investor(s) to change the terms. Hence, the risk of heftier redemption terms or even a potential default is higher,” Mr Liu noted.

OKH Global reported a net loss of $2.1 million for the second quarter ended Dec 31, compared with a net profit of 34.8 million a year before, while revenue fell 98.6 per cent to $3.3 million.

It attributed the sharp fall in turnover to “an absence of any income from property development and a reduction in third party construction contracts”.

OKH Global posted a net loss of $7.8 million for the first six months of the year on revenue of $5.9 million.

In January, OKH Global said Mr Bon had an Interpol “red notice” issued against him.

This stated he was wanted by Indonesian authorities in connection with a charge of “providing false statement for official document”.

The company stated then that Mr Bon told OKH Global that the notice relates to a commercial dispute that started in 2012 between himself in a personal capacity and a former business partner in Indonesia in connection with a company known as PT Alliancz Asia Pacific.

The Singapore-based developer said it has no interest in PT Alliancz Asia Pacific and is not involved in that dispute.

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Posted by on March 23, 2016 in Others


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EC site up for bidding in final 2015 sale

The last residential site for this year was launched for sale yesterday, rounding off a quiet year during which developers tried to clear stocks in Singapore while eyeing better prospects overseas.

Moderate interest is expected for the 1.84ha executive condominium (EC) plot, which can yield about 520 units, in Yio Chu Kang Road.

Yio Chu Kang EC gls

The site is the only EC parcel on the confirmed list for this half of the year. The only one on the reserve list for this half – a 2.71ha plot in Sumang Walk in Punggol – was also released for application yesterday. However, it is unlikely that this site, which can yield about 820 units, will be triggered for sale, given its size and the increasing number of unsold EC units, experts said.

There was a total of 3,555 launched but unsold EC units as at Nov 30, with a further 3,200 homes expected from EC projects that have not yet been released, noted R’ST Research director Ong Kah Seng.

“EC land prices generally fell this year to about $280 per sq ft per plot ratio (psf ppr), much lower than the average of about $350 psf ppr last year.”

Still, yesterday’s launch must have been welcome for developers, given that the Government has been trimming land supply across both condo and EC segments.

The total number of private homes offered via sites in the Government Land Sales (GLS) programme fell 24 per cent from last year to about 16,590 this year.

The GLS programme will offer about 7,420 private homes in the first half of next year – the lowest in nine years.

Developers have been showing a keener interest in tenders, given the reduced amount of land on offer and their dwindling land banks.

The nine GLS condo tenders held this year saw an average of 10 bids lodged, up on the average of eight submitted at nine tenders last year.

There was an average of seven bids for EC sites in both years – the 10 held last year and the three this year – prior to yesterday’s launch.

“Demand for condo sites tends to be stronger, especially in cases where there are few new developments in the area. EC supply is more visible,” said Mr Nicholas Mak, executive director of research and consultancy at SLP International. While the last EC site tender – held in June for a Choa Chu Kang parcel – fetched a surprising 11 bids, Mr Mak considered this an outlier and the quality of bids was poor.

The Yio Chu Kang EC site is not near an MRT station but very accessible by road and also close to amenities, including Hougang 1 mall and Rosyth School, said Mr Ong Teck Hui, national research director at JLL. It is surrounded by mature HDB estates that could provide a catchment of potential EC buyers, he added.

“With numerous EC projects still holding many unsold units, we may expect cautious bidding, with the top bid coming in between $260 psf ppr and $300 psf ppr, and some four to eight parties contesting,” said Mr Ong.

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Posted by on December 31, 2015 in Government Land Sales


Property market perking up

The mood in the real estate sector has been mostly gloomy for a while but sentiment has clearly improved from this time last year with talk that prices could start bouncing off the bottom.

There were 5,510 private property resales in the 11 months to Nov 30, up 20.8 per cent from the same period last year, according to data from the Urban Redevelopment Authority (URA).

Public housing resales are up as well with about 19,000 transactions expected for this year, around 10 per cent ahead of last year, said PropNex Realty.


PropNex chief executive Mohd Ismail said: “Prices are generally consolidating. People are confident that even with all the cooling measures in place, the property market is not going to correct very much more.”

The figures indicate that most of the price declines appear to have occurred last year.

Resale prices of non-landed properties dropped 1.2 per cent in the first 11 months of this year, according to flash estimates from SRX Property yesterday.

In comparison, they fell 4 per cent over the whole of last year.

Resale prices even rose 0.6 per cent last month over October, following a 0.6 per cent month- on-month decrease in October.

While last month’s change could be a monthly fluctuation and prices may fall this month, it does not negate the fact that there is a “notable turnaround of events”, noted Savills research head Alan Cheong.

“Many analysts expected resale prices to continue falling well into next year… (but) buyers are coming back to the resale market, probably seeing value for money after waiting for two years for prices to crash, and they did not.”

Similarly, HDB resale prices moderated by less than 2 per cent for the year so far, compared to the full-year fall of over 6 per cent last year.

They rose about 0.4 per cent last month from October, thanks to a 0.5 per cent rise for four-roomers and an increase of 1.4 per cent for five-room homes, according to SRX estimates last week.

“HDB prices may not even fall next year and could grow as much as 1 per cent for the year,” said Mr Ismail. “With increased transactions, there is no reason for prices to continue to slide.”

Private home resales were up across all three regions – they rose 31 per cent year-on-year to 1,226 units in the core central region for the first 11 months, according to URA data.

Mr Cheong of Savills noted that this area’s strength, which began in December last year, began to taper off in August when the haze sent foreign buyers shopping for properties elsewhere.

However, resale volumes were also up elsewhere. Transactions rose 21.5 per cent to 1,650 units in the city fringes and 16.1 per cent to 2,634 units in the suburbs, in the first 11 months.

Many buyers are purchasing for their own use and have come to appreciate that resale properties tend to be larger, said Mr Eugene Lim, ERA Realty key executive officer.

Take a buyer with $1.2 million. He could get a three-bedroom unit at 1,300 sq ft in older 99-year leasehold condos, but the same amount could buy a three-bedroom unit of just over 900 sq ft at a new launch at Adana or Thomson Impression.

Many are buying near schools or their workplaces and are increasingly showing interest in regional centres, including Jurong and Tampines, Mr Lim added.

There could be an even higher number of resale transactions next year, while any more price declines should be marginal, experts said.

(Source: The Straits Times)

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Posted by on December 10, 2015 in General, Residential


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Principal Garden – 663-unit condo to come up on city’s fringe

Principal Garden – 663-unit condo to come up on city’s fringe

The Principal Garden condominium on the city fringe in the Alexandra area will be launched at the end of the month with average prices of around $1,600 per square foot.

The 663-unit project in Prince Charles Crescent has four 24- storey blocks and is next to the Alexandra Park Connector that extends 4km towards the Central Business District. It is also within a 10-minute walk from the Redhill MRT Station.

It comprises 182 one-bedroom, 304 two-bedroom and 69 three- bedroom units, as well as 66 three- to five-bedroom apartments with private lifts.

The smaller units in the 99-year leasehold project are seen as being particularly appealing to investors, according to the joint developers, UOL Group and Kheng Leong Company.

“Being near the city, the investment angle is strong and some parents (living nearby) may want to get a unit for their children,” UOL deputy group chief executive Liam Wee Sin said at a showflat viewing yesterday.

The one-bedders range from 484 to 506 sq ft, the two-bedroom units are 764 to 807 sq ft while three-bedders are between 1,076 and 1,195 sq ft. Units with private lifts range from 1,238 to 2,347 sq ft.

Prices are around $1,600 per sq ft, making one-bedders cost around $770,000, two-bedders around $1.18 million, and three-bedders around $1.7 million.

The showflats for Principal Garden will be open for public viewing from next Saturday, for about two weeks.

Mr Liam said the units will be launched in phases, with around 250 being made available initially.

“We secured the Prince Charles Crescent site last year at a reasonable bid price (at $821 psf per plot ratio), by which we are now able to pass on value and savings to buyers,” he said.

“We believe buyers can see the strong upside potential.”

Analysts noted that the development has attributes that could sit well with investors – competitive pricing, a good location as well as a large number of smaller units, especially the popular two-bedders.

“At $1,600 psf, it’s cheaper than its next-door neighbour The Crest, which has a median price of $1,688 psf based on the reported transaction prices from January to October this year,” said Mr Nicholas Mak, executive director at SLP International.

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Posted by on October 13, 2015 in Others

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