Archive for category: Real Estate

In 2Q2023, overall occupancy rate of industry property market saw a slight rise by 0.3 percentage points over the previous quarter, to reach 89.1%, according to information published from JTC the 27th of July. This growth was driven by the multiple-user factory as well as warehouse segments, with the new demand outpacing supply.

“Although many manufacturing clusters contracted in June the occupancy levels were helped by the demand from the transport Engineering cluster” says Leonard Tay director of research and analysis at Knight Frank Singapore. Tay adds that the demand of the cluster for warehouses to store inventory and other materials due to disruptions in supply chain logistics led to an 0.7 percent increase in the occupancy of warehouses to 91%.

J’Den contractor following CapitaLand’s acquisition of the former JCube Mall, Singapore’s top property developer, this new residential complex provides homeowners with unequaled convenience.

In a y-o-y perspective the industrial property occupancy decreased by 0.9% y-o-y. JTC credits this to an impressive pipeline of new constructions in the last year, with the total stock available increasing by 12.9 million square feet which was more than the 6.5 million square feet increase in the total stock occupied.

As a result of the growth in occupancy, the rents for industrial properties showed an increase of 2.1% increase q-o-q in 2Q2023. This is the 11. consecutive period of increase and rents climbed by a total of 14.5% from the trough in 3Q2020, says Tricia Song who is CBRE’s director of research Southeast Asia. But the growth is less in comparison to what the 2.8% logged in 1Q2023.

The rent increase was primarily due to the multi-user factory segment, that grew by 3% in the last quarter, and was and then the rents for warehouses that increased by 1.4% q-o-q. In a year-over-year base, rents for industrial increased by 9.4%.

The industrial property prices also increased during the quarter, gaining 1.5% q-o-q. Lee Sze Teck, senior director of data analytics at Huttons Asia, note that this is in line with the increase that was recorded in the 1Q2023 period. “The increase in prices appears to have stabilized since investors resisted rising prices in the face of a uncertain economic outlook and an enduringly high interest rates,” he comments. On a y-o – basis, prices grew in 6.9%.

In the month of June, approximately 6.5 million square feet of industrial space was scheduled to be completed by 2H2023. The upcoming supply of space is the factory space that is used for one purpose makes up around 60% warehouse space is 22% and 17.7% is made up of multiple-user factories and business park spaces.

In the future, JTC expects demand for industrial spaces to continue to grow despite the uncertainty of the economy. “Nevertheless the new construction continues to come in the occupancy rates are expected to remain fairly steady,” it states in its most recent quarterly report.

The Knight Frank’s Tay believes that the prices of industrial properties and rents will remain stable for the remainder this year. “As an edgy open, innovative and neutral business center, Singapore’s core values allow international companies to fly-to-safety and a quality destination for expansion and investment which can help grow as stability is restored in the world economy” Tay explains.

Lam Chern Woon, head of research and consulting at Edmund Tie, cautions that the manufacturing sector – that has seen its output decrease on a y-o – basis for the past nine months – from April June – has shown very little sign of stabilisation because businesses continue to struggle with rising inflation, as well as higher cost of finance and labour. “We expect trade tensions to increase and affect the world’s trade in 2024 in the event that the US is stepping up its rhetoric against China during the election year for the president,” he adds.

He is nevertheless optimistic regarding the warehouse industry, that he believes will generate an annual increase in rental of six% and 7%. This is backed by the shortage of high-quality warehouses and facilities, as and a rising demand. “Notably the growing need from 3PL (3PLs) businesses as well as life sciences and food manufacturing industries will play an important role in driving the need to increased the logistics process,” he says.

He also has a positive outlook for high-tech industrial areas and is backed by the latest set-ups by semiconductor and biotechnology firms and a steady interest from technology and life science occupants.

Read more: UOL Group, a Singapore-listed company, and its affiliate Singapore Land Group have opened the sales gallery for their latest project

On the 23rd of July the more than the 80% homeowners of the 660-unit, privateised HUDC (Housing and Urban Development Corporation) estate Pine Grove gave their go-ahead for a collective auction. It is their fourth attempt and it is the third time that they have reached the 80% majority.

The tender for the collective sale is expected to go live in the next month, with an initial cost that is $1.95 billion. “If it is successful, it will be the largest collective sale transaction that has been completed since Farrer Court,” says Benjamin Poh, ERA senior division director as well as the designated marketer for the Pine Grove collective sale.

Formerly, Farrer Court which was which was a privatised HUDC estate comprising six18 apartments, was sold in group to a consortium led by CapitaLand to the tune of $1.3388 billion on June 7, 2007. The record price for the collective sale of the site has not been broken for 16 years.

Farrer Court has been renovated into the 1,715-unit D’Leedon designed by Late Zaha Hadid. The 99-year leasehold District 10 condominium was officially launched in the year 2010 and was finished in 2014.

Because of the scale of the project The units in d’Leedon are being traded on a regular basis, with transactions happening almost every month. Based on caveats filed in July the development has seen four units change ownership. They vary from a 635 square foot one-bedder, which was purchased at $1.35 million ($2,126 per square foot) to an area of 2,443 square feet, four-bed unit that sold for $4.55 million ($1,862 per sq ft).

Pine Grove is larger than the old Farrer Court by the number of units at the rate of 660 (compared with Farrer Court’s 618 units) and also in terms of land size at 893,219 sq feet (versus Farrer Court’s 838,488 sq feet).

located in District 21 Pine Grove is near schools like Henry Park Primary School Singapore Polytechnic and Yale-NUS College. It is also close to the amenities of Holland Village and one-north.

It is believed that the Pine Grove site can be developed into a new, 24-storey residential development with 2500 units, with an average of 915 square feet for the new units, according to Poh. The lease is 99 years old that dates back to 1984. This means it has a lease remaining for 60 years.

A few apartments located at Pine Grove have changed hands between May and July. The prices are priced between $1.455 million ($1,099 per square foot) for one-bedroom units that are 1,324 square feet up to a price of $2 million ($1,140 per sq ft) for one-bedroom with 1,755 square feet.

In Pine Grove are some 99-year leasehold condos constructed in the mid-1990s. For instance one of them was the 170-unit Astor Green which was completed in 1995 and the 254 unit Cavendish Park in 1996.

There were two sales on the market at Astor Green on July. A 980 sq feet two-bedroom unit which was sold to the value of $1.54 million ($1,572 per sq ft) and three-bedroom 1,378 sq ft unit which was purchased at $1.88 million ($1,365 per sq ft).

The property at Cavendish Park, the last two caveats that were lodged occurred in May of this year including selling a 1,270 square feet, three-bedroom property which sold for $1.8 million ($1,417 per square foot) as well as an 1,227 sq ft, three-bedroom unit which was sold at $1.8 million ($1,467 per sq ft).

Setting a new benchmark in the District 21 neighborhood is the brand new 520-unit private condominium Pinetree Hill by a joint partnership between UOL Group and Singapore Land Group (SingLand). The project was officially launched on July 14th. approximately 146 units of the 99-year leasehold condo were sold at an average of $2,383 per sq ft.

Pinetree Hill is developed on an official property sale (GLS) site at Pine Grove Parcel A, which UOL and SingLand took over in an 80/20 joint venture that had an offer for $671.5 million ($1,318 psf/plot proportion) in June of this year.
The next door neighbor next to Pinetree Hill is Pine Grove Parcel B that is scheduled to opening in August as part of the GLS program. The site will yield 565 brand new housing units.

The ERA’s Poh remains optimistic about the potential for redevelopment of the privatised HUDC estates, as they are often located on large sites. There are seven of these HUDC estates, including Pine Grove. The remaining estates include Braddell View, Ivory Heights, Lagoon View, Laguna Park, Lakeview Estate and Neptune Court.

The remaining units have been sold in a block and then redeveloped. One example is the 2203-unit Treasure located at Tampines by the Sim Lian Group, which has already been granted it’s temporary Occupation Permit (TOP). It is a renovation of the old 560-unit Tampines Court, a privatised HUDC estate that Sim Lian bought in a single transaction at $970 million the month of August.

Treasure at Tampines began to be officially launched in March of 2019, with the initial installment of units that were sold at an average of $1,280 per square foot. The entire 2,203 units within the project were purchased over the course of three years and the project being sold in February 2022.

The month of July saw five apartments of Treasure at Tampines were sold on the marketplace for resales. Prices varied from $770,000 ($1,664 per square foot) for four63 square feet of one-bedder unit to $1.7 million ($1,645 per square foot) for 1 033 square feet three-bedroom apartment in accordance with caveats that were lodged.

Formerly, 488 units Normanton Park, another private HUDC property, was purchased in a single transaction through Chinese developer Kingsford Huray Development for $830.1 million in October of 2017.

Kingsford kept its Normanton Park name and launched its new development, which will include 1,862 residential units as well as eight commercial units from strata in January 2021.

Over 550 units in Normanton Park were sold on the weekend of the opening weekend (Jan 15-16 2021) for an average of $1,759 per sq ft. The entire project was sold 18 months later, in the month of July 2022. The project has been awarded the Building and Construction Authority’s High Quality Mark for each unit, and TOP.

A recent sub-sale, which took place in the month of May witnessed a square feet two-bedroom apartment located at Normanton Park change hands for $1.55 million ($2,000 per square foot).

Since Covid the homebuyers have favored larger-scale and “mega developments” (those that exceed 1,000 units) because of the amenities and appealing maintenance costs in comparison to smaller developments, ERA’s Poh observes.

“We believe this is a good moment for a collective sale of Pine Grove,” Poh adds.

Read also: According to a Turner & Townsend survey, construction expenses in Singapore average $3,307 per square meter

In his profession, Singaporean Kevin Liang is the CEO and founder of EPS Consultants, a technology recruiting, executive search talent management, IT outsourcing firm. He is also a fervent and prolific property investor. through his corporations the owner of office buildings owns strata-titled commercial buildings throughout the CBD through a variety of businesses that range from SBF Centre located on Robinson Road (where his office is located) up to Shenton House on Shenton Way, International Plaza on Anson Road and High Street Centre located on North Bridge Road.

Liang also owns a number of apartments located in and around the CBD by way of his own investment vehicle. They include properties in The Sail @ Marina Bay, SkySuites @ Anson and Icon at Tanjong Pagar. “These are investments for the long term,” he says. They give him a solid foundation on his knowledge of the property market, especially CBD, CBD and the remainder of the Core Central Region (CCR).

Within the CBD, Shenton House is among the last remnants from the 1970s, still in use on Shenton Way. The 25-storey strata-titled commercial property situated at 3 Shenton Way has 40 shops, 163 offices, and an underground parking space with 225 spaces. The property is located on an size of 36,350 square feet and has a 99-year lease that began June 2 1969. Thus the property is left with 45 years in the lease.

“Even although my company owns various office spaces in Shenton House, I wasn’t involved in the last collective sale exercise,” says Liang.

But, he’s now in charge of the committee for collective sale (CSC) for Shenton House’s most recent attempt to en bloc. “It was just 3 1/2 months to achieve the 80% agreement between the owners,” the chairman says.

Past collective sale attempts
It was more different from Shenton House’s previous efforts. The fourth collective sale exercise that took place in 2017-2019 with a reserve value of $536 million didn’t succeed because it failed to get the required 80% approval of the property’s owners.

The third attempt at a collective sale resulted in an 80% owner agreement, and the property was offered to be sold with a price of $530 million on March 12, 2012. However, no buyer emerged.

The second attempt to sell collectively between 2007 and 2008 was aimed at a price of $500 million but was a failure due to the start in the Global Financial Crisis. The first attempt at a collective sale in 2005 with the target price of $500 million was never successful. People were much more concerned with investigating the possibility of swapping their current ownership to new units during the next renovation.

CBD Incentive Scheme, commercial zoning
The CBD Incentive Scheme also fueled Shenton House’s latest collective sales attempt, as per Liang.

Shenton House has commercial zoning and a plot ratio of 11.2. Under the URA’s CBD Incentive Scheme launched in 2019 Shenton House can be redeveloped into a hotel or mixed-use development that has a greater Gross plot ratio 14.0 or the possibility of 25% larger gross floor area (GFA).

With JLL as sole agent for marketing, Shenton Way’s newest collective sale was announced in February 2023, with the amount of $590 million. However, the auction ended on April 11 with no bid.

The sale was revived on June 26 with the same price as the reserve at $590million. Although the relaunch process is taking place, the participants have signed a joint agreement that will reduce reserves to 8.8% to $538 million. As of now, around 60% of owners have signed on the basis of the value of shares and 70% on the basis of the area of strata, according to JLL. The minimum requirement for strata area and share value to be over 80%. The closing date for tenders for this round is August 1.

The price of $538 million is based on a land price of $1,898 per plot proportion (ppr) after adjusting for an increased proportion of 14.0 in the CBD Incentive Scheme. The cost of the land unit comprises an estimate of $427 million expense for the land improvement charge and lease top-up fee to renew a 99-year lease.

The site’s commercial zoning plan for mixed-use development permits 60% from the GFA for commercial use, and forty% in residential properties. Minimum 20% for residential homes need to have an internal net area of 70 square meters (753.5 sq feet). When the 7% additional GFA on balconies added and the land rate is less than $1,878 per sq ft per.

“The benefit of commercial zone is that developers don’t have for ABSD (additional buyer’s stamp tax) when they buy the site,” says Tan Hong Boon Tan Hong Boon, chief executive officer of capital markets for JLL.

As per Tan, developers have become “very beware” concerning the premium condo market due to the recent property cooling measures that took effect on April 27, when foreign buyers are now hit with a 60% ABSD on residential property purchase, up from 30% before.

Mixed-use within the CBD
Shenton House has a prime frontage of 80m across Shenton Way, with another 37m of frontage on Park Street and Shenton Lane at the rear.

The mixed-use development that is being built, featuring a frontage with an enviable view and office space of Grade-A with big floorplates, is expected to draw corporate tenants, Tan says. Tan.

“The office component could be used as a long-term option for investment” Tan adds Tan. “Alternatively one could hold this office portion for a number of years before selling it off in the near future to REITs or a property money fund.”

A good example of this is Asia Square Towers 1 and 2 located at Marina View, directly behind Shenton House. The towers were developed in the past by private equity firm MGPA and property financial advisory company MGPA (now an affiliate of BlackRock) The towers were developed by Australian architect company Dentons Corker Marshall and Singapore-based Architects 60 and were completed in 2011.

The 43-storey office building located at Asia Square Tower 1 was transferred by the Qatar Investment Authority in June 2016 for $3.4 billion. CapitaLand Commercial Trust acquired the office portion in Asia Square Tower 2 for $2.094 billion in September of 2017.

The hotel with 305 bedrooms Westin Singapore is located on the 33rd and 46th floors in Asia Square Tower 2, was transferred in 2013 to Japanese developer and hotelier developer Daisho Group for $468 million in 2013, only one month after it opened. It’s $1.5 million each for keys.

Two streets to the west is the former PIL Building on Cecil Street which TE Capital Partners and LaSalle Investment Management bought together at $323.8 million in February 2022. The new office project, Solitaire on Cecil was officially launched to the market in January of this year. The 15 floors of strata-titled office space within the office tower of 20 stories and two retail/F&B units located on the top floor of Solitaire on Cecil were sold in just five months. The offices in the strata office tower were sold at prices ranging from $4,100 to $4,300 per square foot. In contrast, the first retail unit was valued at $5,400 per square foot and the second retail unit was close to $6,000 per square foot.

“The rates achieved in Solitaire on Cecil represent owners and investors trust in the quality of commercial assets within the CBD,” says JLL’s Tan.

Future luxury hotel?
Another option is that Shenton House can be redeveloped to become a commercial property that will have the potential for 95% hotel rooms and the remaining 5% retail spaces. An upscale hotel like The Westin Singapore and the 233-room Sofitel Singapore City Centre presents an attractive option as JLL’s Tan.

Based on the assumption of 95% hotels and five% retail and a room size of 30-40 sq meters (323 or 431 sq feet) The new luxury hotel may have 729 to 973 keys estimates JLL.

Assuming a brand new development that is 40% commercial and 40% hotel, assuming a new development with% commercial space and 60% hotel rooms and the average size of 323 to 431 square feet The new luxury hotel could be equipped with 460 to 614 keys, as per JLL.

Chee Hok Yuan Asia Pacific president of HVS which is a global consultancy firm that specializes in the hospitality industry believes that hotels with a luxurious feel like The Westin and Sofitel Singapore City Centre charge rates of between $400 and $500 per night. an average occupancy of 75%.

The latest hotel deal within the CBD was the sale of the old So/Singapore Hotel in May last year to Ho Chi Minh’s Viva Land through its Singapore-based subsidiary Viva Ventures So Holdings. Singapore developer Royal Group sold the hotel’s 134 rooms for $240 million, or $1.8 million for each keys, an all-time record for Singapore’s premium hotel sector. The property is now changed to Hotel Telegraph.

“The minimum cost for the most luxurious accommodation within the CBD is currently $ 1.5 million at present and for hotels with luxury that are more expensive than 2 million dollars per key” Chee says. Chee.

In addition, the worth of luxury business hotels such as Oasia Downtown, Carlton City Hotel, M Hotel and Amara Singapore, is $1 million to $1.2 million per key, according to Chee. The room rates at these hotels is $250 to $350 per night with an average occupancy rate of 70% according to Chee.

Then, further along Shenton Way is OUE Downtown owned by Singapore-listed real estate group OUE. OUE Downtown is a hotel with a serviced apartments component, which was previously managed by Oakwood and transferred in a joint venture comprised of Hong Kong property developer Far East Consortium and Hong Kong investment bank AMTD Group for $289 million in the year 2019. The hotel is now changed to Dao from Dorsett and consists of 268 studios with one and two bedroom apartments.

The improvement in Singapore’s hospitality sector following Covid also means that investors who invest in hospitality assets – -including co-living apartments, serviced apartments and luxury hotels with four stars are likely to see gross rental yields that range from three% or 4% dependent on the tenure, grade and the condition of the property, Chee estimates.

This month Midtown Properties, related to the Worldwide Hotels Group and Hotel 81 chain, bought the hotel with 542 rooms Parkroyal Kitchener Hotel in Little India for $525 million from UOL Group. The hotel’s value is $969,900 per key.

Gentrification of the older CBD
Redevelopment is underway in the vicinity of Shenton House. Its neighbors, predecessors from the 1970s, including The former Robina House (built in 1971) located at 1 Shenton Way and the old UIC Building (built in 1973) located at 5, Shenton Way, have been removed and transformed into towers that are gleaming new.

One Shenton by City Developments is a 341-unit residential development featuring a sparkling 43 and 50-storey silver and gold twin towers conceived by the renowned Canadian Uruguayan designer Carlos Ott. The towers of apartments were completed in the year 2011 and were sold out completely.

Based on the most recent restrictions, the most recent transaction in the last transaction at One Shenton was for a 1,098 square feet two-bedder on the 39th floor which was sold at $1.92 million ($1,749 per sq ft) during June. Prior to that one, a 1,141 sq. ft two-bed apartment located on the 29th floor sold for $2 million ($1,753 per square foot) in May 2023.

The UIC Building, which was previously the UIC Building has given way to the brand new UIC Building, a 23-storey office tower and the 54-storey, 510-unit condominium building V Shenton which is owned from Singapore Land Group (SingLand). These two buildings were developed in the hands of Dutch designer Ben van Berkel of UN Studio and was completed in 2017.

at V on Shenton The most recent transaction consisted of a 1.528 square foot three-bedder at the 22nd level that was purchased in the amount of $2.91 million ($1,904 per square foot) during May. In the beginning of May, a 484 square one-bed unit was purchased at $1.13 million ($2,333 per sq ft).

SGX Centre 1 and 2, both completed in 2000, are located directly across the street across the road from Shenton House. Kajima Overseas Asia developed the twin towers that house Singapore Exchange. Singapore Exchange. Based in New York, Kohn Pedersen Fox designed and built the towers along with Singapore-based Architects 60. Singapore Exchange sold its space to United Overseas Bank (UOB) through a lease-and-sale contract for 7 years back in 2007. The towers are owned jointly and operated by UOB together with SingLand.

The next road down there is 8 Shenton Way (former AXA Tower). It will be developed into Skywaters Residences which will be the highest tower located in Singapore with a height of 305m. The 63-storey building will have 215 luxury apartments on the top floors as well as an assortment of office and commercial space in the basement floors. The project is being developed of Perennial Holdings and Alibaba.

It’s not too late to start
The clock is moving in the case of Shenton House, not just due to its lease expiring but also due to the imminent expiration of CBD’s incentive scheme on the date of November 26th, 2024. This is five years after the date that it was announced that the Master Plan 2019 was gazetted according to JLL’s Tan.

Buildings that are getting older, such as Shenton House, which is now more than fifty, also facing pressure to sell en group. “After an amount of years, buildings will have issues, for example, the concrete spalling,” declares CSC Chairman Liang. “The lobby is in good shape since we renovated it a few years ago.”

Things that require to be replaced or upgraded within the building include lifts as well as elevators. “It will cost a lot,” says Liang. “Maintenance costs could exceed the triple or even quadruple from the present cost. Therefore, it is more beneficial to sell the building in a group rather than retaining the structure.”

Therefore, the owners who own Shenton House are motivated sellers according to Liang. In the latest study Liang also notes that close to 90% were in favor of the sale.

As a property owner with multiple strata-titled properties throughout within the CBD, Liang sits on the management corporation’s strata title (MCST) committees of several and is aware of the issues they have to face. Liang is the Chairman of the MCST at the SBF Centre and Secretary of the MCST at International Plaza and an MCST committee member at Icon and The Sail. In addition, Liang was also the general sale chairman of International Plaza in the 2021-2022 exercise, with a reserve value that was $2.7 billion.

Residential rental demand
Based on his own and corporate portfolio of investments, the interest in apartments within the CBD remains high, according to Liang. The Sail @ Marina Bay is one of his properties. the Sail at Marina Bay, he recently contracted to lease his 614 sq ft studio apartment for an annual rental that was $5200, or $8.50 per square foot. The two-bedder, 883 sq ft is available for lease at the monthly rent of $6,800, or $7.70 per sq ft. Both tenants are foreigners working at the CBD.

At SkySuites at Anson, Liang recently let a 365 sq ft studio to an Chinese student who is pursuing university studies. The monthly rental amount that was agreed upon of $3,850 which is $10.50 per square foot. According to Liang the owner, he was offered two offers to lease the identical unit. The second was the higher rate of rent per month of $4,000. However, he picked the Chinese student since the lease term was longer than the other one, which was only six months, he claims.

Liang also anticipates that the two bedder at Icon to earn the minimum rent of $6,000 per month when the lease expires to renew in a couple of months.

“Rental need for smaller office spaces in the CBD region has been booming since the Covid incident,” he adds. “Our portfolio of more than 20 office units is 100% lease.”

According to Liang Liang, office spaces at International Plaza can still command $7 per month in rent The rental rates for SBF Centre that is a more recent building, range from $9 to $10 per month.

JLL’s Tan believes it Shenton House “presents an interesting idea” considering its location within District 1 and the CBD as well as District 1. The units on the upper floors offer views of the ocean as well as the city’s skyline. “On a clear day there is a view of Indonesia,” he says.

Shenton House is also well-connected because of the proximity of Four MRT stations. Shenton Way MRT Station on the Thomson-East Coast Line is located across the street, and Downtown MRT Station on the Downtown Line is also within walking distance. Tanjong Pagar MRT Station (East-West Line) and Marina Bay MRT Interchange Station (for the North-South, Thomson-East Coast and Cross Island Lines) are close by. The development planned for this site will be linked to neighbouring buildings through covered linkways at the second floor.

“The Shenton House site is perfect for redevelopment as an ideal mixed-use development that includes Class A office space, luxurious homes, a posh hotel, or serviced apartments” Tan adds. Tan.

“I believe there is no other site within the CBD that’s more affordable cost-effective,” he adds.

Read related post: Q Investment Partners closes a multifamily housing fund worth $50 million

The most unprofitable resale transaction during the week of June 20 to 27 was the sale of a 2,788 sq ft, four-bedroom-plus-studio unit at Marina Collection on Cove Drive. The property was sold at $4.52 million ($1,622 per square foot) on the 27th of June. The previous owner bought the unit at $6.97 million ($2,500 per psf) in January 2010. This is why the latest purchase cost is 35% lower, which amounts to the loss that is $2.45 Million over 13 1/2-year period.

The Marina Collection is a 99-year leasehold with 124 units. Marina Collection is adjacent to the One Degree 15 Marina at Sentosa Cove, and most units are directly viewed towards the marina. Certain units overlook the marina as well as the ocean beyond.

Marina Collection was designed through Indonesian group Lippo Group, and the project was completed in. The 124-unit low-rise development comprises three blocks of four stories comprising three to five bedroom units that range from 1,873 to 4,725 square feet.

Prices have dropped in the Marina Collection since its completion 12 years ago. The month of July 2011 the median cost was around $2,270 psf however, it has dropped to $1,784 this month.

Five resales have occurred of the Marina Collection so far this year, and four of them have resulted in losses that range between $1.6 millions up to $4.65 million. The least profitable transaction thus far was for a 3,272 square feet, three-bedroom apartment that was sold at $4.65 million ($1,421 per square foot) the 3rd of April. The buyer paid $9.29 million ($2,841 per square foot) for the property in March 2008. The result was that they lost $4.65 millions (50%), which amounts to an annualised profit that was 4.5% over 15 years.

On the other hand one of the highest-profitable resales sale during the last week took place in the auction of a 3671 square 4 ft, four bedroom unit located at Starpoint located on Pasir Panjang Road for $4 million ($1,090 per square foot). The property was purchased at $1.5 million ($409 per square foot) at the end of April in 2002. This resulted profits in the amount of $2.5 millions (167%), which amounts to an annualized increase that was 4.7% over around 21 years.

Starpoint The Starpoint a luxury, 10-unit condo which was completed in the year 1980. The freehold development consists of an apartment building with a 10 storey height. It is situated at the outskirts of the NUS’s Kent Ridge campus as well as Singapore Science Park II off Pasir Panjang Road.

There have been only a handful of sales of resales at Starpoint. The most recent time units were sold within the condo was the year 2010 and before the year 2009 in accordance with caveats filed. According to caveats the 1,819 square foot property was purchased to a buyer for $1.2 million ($660 per square foot) during July of 2009. Then, there was an offer of 1,819 square ft unit at $1.3 million ($715 per square foot) in July of 2010. There were no caveats that match for these two transactions.

The purchase of a 2,056 square feet 3 bedroom unit in Costa Rhu for $3.08 million ($1,498 per square foot) on June 23rd was the second most profitable resale of the week. Prior to that, the unit been sold for $1.05 million ($512 per square foot) in February. The seller earned an income that was $2.03 millions (193%), which is equivalent to an annualized gain that was 6.4% over 17 1/2 years.

Costa Rhu is one of only a handful of condos along Tanjong Rhu with unblocked riverside views of the Kallang Basin. In contrast to other riverside condominiums like Pebble Bay, Casuarina Cove, and Camelot-by-the-water that face to the National Stadium, Costa Rhu is the only condominium on Tanjong Rhu to face Beach Road and Nicoll Highway. The view from the city is comprised of landmarks like Suntec City, South Beach and Guoco, as well as the planned Guoco Midtown, The Gateway, and The Concourse.

This 99-year leasehold Costa Rhu was completed in 1997. The condominium is also the biggest in that Tanjong Rhu area based on the number of units comprising 737 units, which range from two-to-four-bedroom units with a range of 990- 2,648 square feet, in addition to penthouses that are over 3,000 square feet.

The prices for selling in Costa Rhu have swelled in the past few years, ranging from $1,275 per square foot in July 2020 to $1,572 per square foot in the month of. The most expensive property in absolute terms that changed ownership at Costa Rhu was a 5,253 sq ft penthouse with three bedrooms which sold for $6.25 million ($1,190 per square foot) during August of 2020. The penthouse was bought at $5.75 million ($1,095 per square foot) at the beginning of January in 2016. This means that the seller made profits in the amount of $5000 (8.7%), which amounts to an annualised income in the range of 1.83% over four years.

While resales in Costa Rhu have seen an rise in recent times however, the average cost is $1,494 per square foot that’s a bit lower than certain condos that are located nearby. For instance, Pebble Bay commands an average price of $1715 psf which is the highest price within the Tanjong Rhu area, while Sanctuary Green and Water Place are both priced at $1,534 per sq ft and 1,598 per sq ft and 1,598 psf, respectively.

Read also: According to a recent poll conducted by multinational workplace design firm Unispace, the primary reason for this reluctance to return to the office

The government has opened two sites available for sale in the 1H2023 Government Land Sales (GLS) Programme. The first is white site located at Marina Gardens Crescent and a commercial and residential site located in Media Circle in the precinct of one-north.

Its 1.73ha white site located at Marina Gardens Crescent is estimated to produce 775 housing units and 64,560 sq feet of commercial space. It has a the gross plot ratio being 4.2. The development will connect to the planned Marina South MRT Station on the Thomson-East Coast Line, and adjacent to Marina South Pier Station on the North-South Line.

This recently launched site is located next to another site located on Marina Gardens Lane that was granted to a Kingsford Group-led consortium of developers on the 27th of June. The site is classified as “residential which includes commercial space at the 1st storey”. The tender that was accepted for the site was $1.034 billion, resulting in an average land value of $1,402 in plot proportions (ppr).

“As as with similar to the (Marina Gardens Lane site) we anticipate developers to be wary of (Marina Gardens Crescent) site.” (Marina Gardens Crescent) site, given that the higher additional buyer’s stamp tax (ABSD) rates for foreigners and investors, as well as the absence of schools within the area could affect the demand for houses to be built on this site,” says Wong Siew Ying the director of content and research for PropNex Realty.

She also says the pipeline for private residential developments within downtown CBD along with the Downtown area have yet to come on the market. In the near future, projects in the region comprise Newport Residences, Skywaters Residences and Marina View, a project. Marina View, which was granted in September 2021.

However the developer who can secure the site will have a first-mover advantage in providing the needed commercial amenities that will help support the growing working and resident community in the region, according to Justin Quek, deputy CEO of OrangeTee & Tie.

He says that there are there are no new GLS sites within the Marina South precinct were announced in the 2H2023 GLS program. “This implies that it could be a while before the next plot is offered to tender,” he says.

“While developers will likely take their price as a reference of that of the Marina Gardens Lane plot that ended on the 27th of June We estimate that the most expensive bid for this plot could be in the range of $1,400-$1,500 per sq ft, considering the appeal of this site being the very first site within this area. Marina South area,” Quek says. Quek.

Wong has a similar prediction in which he suggests the site could draw three bids, with the highest price of around $1.14 billion. This is a land-based rate of $1,450 psf per ppr.

Another GLS site has also been inaugurated in Media Circle in the one-north precinct. The 114,420 square feet site is an average plot-to-plot proportion that is 2.9 and is classified as “residential and commercial on the 1st storey”. It is expected to produce 355 residential units as well as 4,304 square feet of commercial spaces. The development site is located near several bungalows in black and white on Portsdown Road.

The GLS site may attract small developers who are hesitant to risk taking on the risk of developing a larger site according to Wong. She also says that a few new sites on 2H2023 on the 2H2023 GLS list offer a medium-sized to large size with more than 500 housing units each.

Lee Sze Teck, senior director of research at Huttons Asia, says the new development will profit from a strong demand for tenants coming from companies located that are located nearby in Mediapolis.

He also mentions that the site is also a bit distant from public transportation and amenities. The nearest MRT station is located at one-north Station located about 980m away. So, he anticipates this site to be closed with less than five bids and a highest price of not more than $1,100 per psf per. Contrarily, Quek estimates this site could receive seven to 10 bids, and the highest bid could be between $1,150 psf per person to $1,250 per psf per.

The auction for the sale of Media Circle and the Marina Gardens Crescent site and Media Circle site will close on January 18, 2024.