30 sites for private homes

GOVERNMENT LAND SALES PROGRAMME FOR PRIVATE RESIDENTIAL, COMMERCIAL AND HOTEL DEVELOPMENTS FOR FIRST HALF OF 2011

30 sites for private homes

After Aug 30 moves to curb demand, Govt now focusing on increasing supply: Analysts

The Government is releasing more land for private residential development in a move that analysts say is targeted at containing froth in the property market.

The Ministry of National Development yesterday announced it would place 17 sites on the so-called “Confirmed List” of the Government Land Sales (GLS) programme in the first half of next year.

The MND said the sites, which comprise 16 residential sites, including three executive condominium (EC) sites, and one mixed commercial-and-residential location, could yield about 8,100 residential units and would ensure a strong supply of private housing to meet demand.

Another 13 sites will join the “Reserve List”, comprising 12 residential sites including one EC site, and one mixed commercial-and-residential location. Together, they could yield about 6,200 residential units.

In total, the GLS programme for the first half of next year will have 30 sites for residential development, which can generate about 14,300 private residential units. This is higher than the 13,900 private residential units made available in the GLS programme for the second half of this year, the MND said. The increase is due mainly to an increase of 400 units in the Reserve List supply.

Of the 30 sites, 17 are new while the remaining 13 sites are carried over from this year.
Reluctant to take further measures to curb property demand too close on the heels of its Aug 30 measures to cool speculation, the Government is focusing its efforts on replenishing the supply pipeline of new homes, analysts say.

The number of unsold units rose to 33,771 in the third quarter from 32,630 units in the second quarter.

“This is equivalent to about three years of supply, based on an average take-up of about 11,300 units per year over the last three years,” the Monetary Authority of Singapore noted yesterday.

“The placement of so many residential sites on the Confirmed List, as well as the continued provision of residential sites on the Reserve List, show the Government’s intention to ensure that supply keeps up with demand, even as the economy strengthens,” said Mr Li Hiaw Ho, executive director of CBRE Research.

“The sites in close proximity to MRT stations will prove to be popular and are likely to be hotly contested, as are the ones that are situated closer to the city.”

The Government is also releasing more commercial land on the Confirmed List to meet demand for office space. It is releasing two commercial sites: One in Robinson Road, to cater to demand in the central business district, and the other in Paya Lebar Road, which it hopes will facilitate the early development of Paya Lebar Central into an attractive commercial hub to complement the Central Business District.

In addition, a commercial site in Sims Avenue and Tanjong Katong Road will be added to the Reserve List to provide for the growth of Paya Lebar Central into a sizeable and sustainable commercial node, the MND said.

Analysts expect the government to release more land for office use in the Marina Bay area if appetite remains strong after the Grade A office complexes that are currently under construction are taken up.

Two new hotel sites will also be added to the Reserve List.

The first is in Race Course Road, near Little India. The second hotel site is at Kallang Riverside, in an area that has been identified as a new waterfront lifestyle precinct near the coming Sports Hub, which is scheduled to be completed in 2014.
Source : Today – 26 Nov 2010

GLS 1H2011

25 November 2010

Government land sales for first half of 2011

Confirmed List
Residential Sites
1	Sengkang Square / Compassvale Road	Jan-11	HDB
2	Bedok Reservoir Road / Bedok North Road	Jan-11	URA
3	Choa Chu Kang Drive (EC) (3)	Jan-11	HDB
4	Bendemeer Road / Whampoa East (3)	Feb-11	HDB
5	Tampines Central 7 (EC) (3)	Feb-11	HDB
6	Sembawang Road / Jalan Sendudok (3)	Mar-11	URA
7	Buangkok Drive / Sengkang East Drive (3)	Mar-11	HDB
8	Jalan Loyang Besar / Pasir Ris Drive 4 (3)	Mar-11	URA
9	Woodlands Avenue 2 / Rosewood Drive (3)	Apr-11	URA
10	Flora Drive(3)	Apr-11	URA
11	West Coast Link / West Coast Crescent	May-11	URA
12	Choa Chu Kang Road (3)	May-11	URA
13	Punggol Way / Punggol Field (EC) (3)	May-11	HDB
14	Punggol Field / Punggol Field Walk (3)	Jun-11	HDB
15	Serangoon Garden Way (3)	Jun-11	URA
16	Upper Serangoon Road / Pheng Geck Avenue (3)	Jun-11	URA

Reserve List
Residential Sites
1	Jalan Jurong Kechil	Already Available	URA
2	Bishan Street 14		HDB
3	Buangkok Drive / Sengkang Central		URA
4	Tanah Merah Kechil Road / Tanah Merah Kechil Link		URA
5	Alexandra Road		URA
6	Stirling Road (Parcel A)		URA
7	Stirling Road (Parcel B)		URA
8	Bartley Road / Lorong How Sun		URA
9	Elias Road / Pasir Ris Drive 3		HDB
10	Hillview Avenue (3)	Apr-11	URA
11	Sengkang Square / Compassvale Drive (3)	Apr-11	HDB
12	Upper Serangoon View / Upper Serangoon Road(EC) (3)	Jun-11	HDB

 

Farrer Court Development Info

D'LEEDON

 SOLD: $762 psf ppr

NEW DEVELOPMENT: $1548 psf average

(as of Dec 2010)

Feast your eyes on what is going up on the the old Farrer Court site! This one will be interesting to follow ... easily another $2 -3 billion bonanza project.

D'Leedon

Developer : CapitaLand Address: 151 King's Road Tenure : Leasehold 99 Years Land Area : 838,488 sqft with full condominium facilities Number of units : 1,715 units Number of blocks : 7 Tower Blocks of 36 Storeys each, 12 Villas Expected TOP: 2014

Buyers back in October, sales rebound from September low
Monday, 22 November 2010

© 2010 - The Edge Singapore

Latest salvo from the Pariah

WHO'S THE IDIOT Part 1

WHO'S THE IDIOT Part 2

WHO'S THE IDIOT Part 3

Pine Grove Reserve Price & 80% Approval

Pine Grove to en bloc, $1.7b reserve price: report 
THE 99-year leasehold Pine Grove in Ulu Pandan could be up for collective sale again with an estimated reserve price of US$1.7 billion, said Channel NewsAsia yesterday.

The deal, if successful, would be the largest in the collective sales market since Farrer Court changed hands for US$1.34 billion in 2007.

Channel NewsAsia said that property agents have been gathering residents' signatures since November last year, and they have amassed 80 per cent of votes for the collective sale to start. A cooling period is now in place in case residents change their minds.

The 660-unit Pine Grove is a former HUDC estate. Several discussions had taken place between agents and residents to sell the estate in the last few years. The en bloc fever was particularly strong in 2007 as the property market heated up and developers snapped up several estates. But not all residents in Pine Grove were keen on a deal then. A 'Save The Pine Grove' group was even formed to stop the sale process.

The collective sales market took a breather during the financial crisis and has revived recently, but deals have involved mostly smaller estates with more affordable price tags.
Business Times - Fri 19 Nov 2010

Pine Grove’s high price tag may deter property developers: analysts

Pine Grove residents may be sitting on an enbloc gold mine, but analysts have said realising the dream of a collective sale may be fraught with hurdles.

With a hefty asking price of S$1.7 billion and with more land sites launching soon, developers may pass on the 660-unit property.

Situated along Ulu Pandan Road, Pine Grove has an 80 per cent approval for its third enbloc tender.
And with its location in the prestigious district 21, analysts said an iconic mid-tier to luxury residence complex is an obvious choice.

But creating opulent luxury in a sprawling 890,000-square foot property may be too costly for investors.

Colin Tan, Head of Research and Consultancy at Chesterton Suntec International, said: “If I am the developer, I would be going for big units. The problem is not the dollar per square foot, it is the quantum. The absolute amount may go into millions, so how many individuals can really afford that amount or are willing to risk it just on one project?”

Analysts said Pine Grove’s gross plot ratio of 2.1 will yield too few units for developers to maximise their returns.

By comparison, Laguna Park, with an enbloc reserve price of S$1.14 billion, offers a plot ratio of 2.8.
But despite the red flags, analysts said developers with a longer-term view could look favourably at Pine Grove.

Christina Sim, Director of Investment Capital Markets at Cushman & Wakefield, said: “Our Singapore market is so small and so responsive to external stimulus. And there is also a huge foreign demand out there. It is ideal if a developer buys this maybe for land banking, because the truth is if you take a mid- to long-term view of the real estate market in Singapore, nothing is really very expensive now.”

However, with more land being released under the Government Land Sales (GLS) programme, developers are currently spoilt for choice.

The tendering for such land sites is also more straightforward, compared with enbloc tenders.
Ms Sim said: “Certainly for collective sales, the gestation period and the time to have 100 per cent ownership is certainly very long, unlike those developers going for GLS sites; they bid for the site, prepare for it and sell.”

However, analysts said Government land sites no longer offer the prime location and massive size that Pine Grove has.

Source : Channel NewsAsia – 19 Nov 2010

Pine Grove gets 80% vote for en bloc

It could be third time lucky for Pine Grove estate along Ulu Pandan Road.
MediaCorp understands that the condominium’s third attempt at an en bloc sale received the necessary 80 per cent majority approval last Saturday.
According to residents, the reserve price is set at S$1.7 billion, setting the stage for Pine Grove to become Singapore’s largest residential collective sale, beating the 2007 record for Farrer Court.
“It’s a good time to sell because the estate is getting old, and it will be expensive to upgrade the old lifts, sewerage pipes and wiring in future,” said a resident, who declined to be named.
The next stage of the en bloc attempt is the preparation of tender documents, but the votes have to be first audited by the appointed law firm Lee & Lee.
There is also a “cooling off” period where residents who had signed can withdraw their consent to sell within a week.
MediaCorp understands that Jones Lang LaSalle, which is the marketing agent, is unlikely to launch a sale this year, and will likely wait for more favourable market conditions.
“Since 2008, most en bloc sales have been less than S$100 million,” said Nicholas Mak, Executive Director of Research and Consultancy, SLP International. “This shows that developers are now more cautious and the risk appetite is not so high.”
Analysts believe that potential buyers are likely to take a consortium or joint-venture route so as to spread the risk.
A collective sale also faces challenges from a successful Government Land Sales programme.
“Developers sometimes prefer the straight forward government sale of sites,” said Donald Han, vice chairman, Cushman & Wakefield, Singapore. “The collective sale process on the other hand can become protracted.”

Signatures for the sale have been collected from Pine Grove owners over various sessions since 15 November 2009.

The reserve price of S$1.7 billion could work out to between S$2.1 million and S$2.75 million per unit, depending on the size of the apartment and the development charge.
There are 660 units at the former HUDC estate, which covers over 893,000 square feet of land area.
The current record for an en bloc sale is held by Farrer Court, located along Farrer Road, also a former HUDC estate. It was sold in 2007 for S$1.34 billion, and had a development charge of about S$500 million.
Observers said Pine Grove could attract a similar development charge.
Source : Channel NewsAsia – 16 Nov 2010

Are we in business?

An owner in Tampines Court has alerted me to the following article:
Tampines Court wins tender for Woodgrove Avenue residential site

SINGAPORE : The Housing and Development Board (HDB) has awarded the land parcel at Woodgrove Avenue to Tampines Court, a unit of Far East Organization, for S$105.12 million.

The developer has submitted the highest of the six bids received at the close of the tender on November 4.

The land parcel, which is meant for strata landed or condominium development, has a site area of over 20,900 square metres and a maximum allowable gross floor area of about 29,300 square metres.

Located within Woodlands Town, the site is near Woodlands MRT as well as Woodgrove shopping centre and Causeway Point shopping mall.

The site was launched for public tender on September 22 and has a lease period of 99 years.

The project, which can have an estimated 265 dwelling units, has to be completed 60 months from the date of acceptance of the tender.  

.

Far East top bidder at Woodlands site

.

So, has Tampines Court suddenly developed a business wing none of us know anything about? Are we expanding our portfolio and moving into the property development business? Has, perhaps, the MC gone completely mad with our sinking fund??

.

Well, before you get too excited I have to tell you no, nothing of the kind.

If you cast your minds back to March 2007; you will recall how Tampines Court was undersold to a company called ORCHARD MALL PTE LTD. Now this company was registered on 24 April 2006 in the early days of our first en bloc attempt (a coincidence, don't you think). Well, at the time of it's registration it didn't have any shareholders and had a paid up capital of  $1m dollars. 

After the S&P was signed, two new companies were formed:

1) TAMPINES COURT PTE LTD

Registered 11 May 2007 with a paid up capital of $2.00 

Shareholder: Golden Development Pte Ltd

2) FCL TAMPINES COURT PTE LTD

Registered 21 May 2007 with a paid up capital of $2.00

Shareholder: Frasers Centrepoint Limited

Both these newly formed companies subsequently became the shareholders of Orchard Mall.

So, even though these companies bear our name they have nothing whatsoever to do with us. Tampines Court is not a trade name and even if you think it  bad form for them to continue using these $2 dollar companies registered in our name, as far as I know, there is nothing illegal here.

Remember how Gillman was sold for a song....

 SOLD: $363 psf ppr

 NEW DEVELOPMENT: $1039 psf

 (at of Dec 2010)

 See Developers Windfall

 

 

The Interlace hits high of $1,323 psf

Prices of units at The Interlace hit an all time high of $1,323 psf in October, with apartments released in the first two phases almost sold out. So far, more than 90% of the 590 units released have been sold. In the first phase, 360 units were put up for sale in September last year, and in the second phase, 230 units were released in April this year. In the first phase, prices ranged from $850 to $1,150 psf, and in the second phase, prices ranged from $850 to $1,300 psf.

High-profile homebuyers at The Interlace include CapitaLand’s group CEO Liew Mun Leong, who purchased a penthouse on the 23rd floor for $3.7 million ($1,092 psf), and his son and daughter- in-law, who bought a four-bedroom unit on the 16th floor for $2.4 million ($996 psf) this year. The 1,040-unit condominium, which sits on a sprawling site of over 800,000 sq ft, is set to be an iconic development. Designed by star architect Ole Scheeren, a former partner at the Office for Metropolitan Architecture, The Interlace comprises 31 six-storey apartment blocks stacked to form eight courtyards. Jointly developed by CapitaLand and Hotel Properties Ltd (HPL), The Interlace is built on the former Gillman Heights HUDC estate and is expected to be completed in 2015. The 99-year leasehold condo sits next to the Ayer Rajah Expressway on one side and is just a short walk from the 9km green belt, which makes up the Southern Ridges, covering Mount Faber Park, Telok Blangah Hill Park and Kent Ridge Park.

Andrew Choi, a marketing agent with ERA, notes that the project is popular with families, both Singaporeans and expatriates, given that the units are larger than most new projects these days. The development is near popular educational institutions such as International School Singapore (high school campus) and the National University of Singapore and offices at Telok Blangah Industrial Estate. It is also near the upcoming Labrador Park MRT station on the Circle Line.

The project contains a mix of unit types, starting from two-bedroom apartments of 807 sq ft to penthouses of 6,308 sq ft. Penthouses range from 3,154 to 6,308 sq ft. All the two-bedroom units have been snapped up, according to CapitaLand’s spokeswoman. Choi says he is marketing several two-bedroom units in the sub-sale market at prices ranging from $1,200 to $1,300 psf.

There were three transactions in the week of Oct 5 to 12, two of which were sub-sales in the secondary market, while the other was a new sale from the developer. The new sale was for a 1,001 sq ft unit on the 10th floor of one of the blocks, which was sold for $1.197 million ($1,197 psf).

Meanwhile, one of the sub-sales was for a 2,454 sq ft unit on the 11th floor that changed hands for $2.5 million ($1,030 psf), according to a caveat lodged with URA on Oct 7. The seller had purchased the unit for $2.198 million ($896 psf) from the developer in January this year, representing a 15% capital gain in less than a year.

The second sub-sale involved an 807 sq ft, 12th floor two-bedroom unit that changed hands for $1.068 million, or $1,323psf. The first owner had purchased the property for $944,800 ($1,170 psf) just a year ago, hence seeing a 13% gain.

In terms of average price, $1,323 psf is the highest achieved so far for the project. The last time a unit crossed the $1,300 psf level was for the sale of another 807 sq ft, two- bedroom unit on the 11th floor, which was sold by the developer for $1.05 million ($1,305 psf) in April.
Source : The Edge – 1 Nov 2010

THE INTERLACE HAS ONLY SOLD 433 UNITS SO FAR OUT OF A TOTAL OF 1040. THEY BOUGHT GILLMAN AT $363 PSF PPR AND NOW THEY ARE SELLING AT OVER $1300 PSF. 

A PERFECT EXAMPLE OF AN INCOMPETENT SALE COMMITTEE AND A CLUELESS MAJORITY WHO DID NOT APPRECIATE THE TRUE VALUE OF THE LAND ON WHICH THEIR ESTATE STOOD. IT IS NOT ABOUT AGE, OWNERS SHOULD NOT BE UNDULY WORRIED ABOUT THE LEASE TOP -UP, IT IS NOT A REASON TO SELL RASHLY. THE DIFFERENTIAL PREMIUM IS EASILY ABSORBED - WHAT IS $90M TO THE DEVELOPER WHEN HE IS GOING TO MAKE PERHAPS 2 BILLION IN THE END?

Is you condo going en bloc?
Jones Lang LaSalle
En bloc sales this year hit $975m, gain momentum
Today - 4 Nov 2010

TC CHART

What can be deduced from the above chart?

• There was an unprecedented avalanche of units put up for sale post en bloc in 2009 - 2010. 
• A large supply would normally depress the market price but even so, TC worked against this trend and saw a 63% increase since the pre-en bloc high of $520k in Oct 2006.
• With supply now showing signs of tapering off; the price should rise even further. 
• 2010 is not over, and perhaps the $900k threshold will be reached by New Year.
• TC is not losing value as it ages as there are mitigating influences which push the price upward, namely: size, location, low maintenance fee, convenience and environment and, even though I hate to say it, that elusory 'en bloc potential'.