Residential Market News Extract - 17 September 2012

Several bungalow deals on Sentosa Cove recently

Even as analysts debate the outlook for Singapore's luxury condo sector, there has been no dearth of bungalow transactions. Sentosa Cove, for one, is said to have seen several deals. They include two properties at Cove Drive facing the waterway and Tanjong Golf Course.

Both are said to have been sold for $15-plus million. One fetched $15.3 million, or $2,202 per square foot, based on 6,947 sq ft of 99-year leasehold land area. It is said to have been sold by a Singaporean aesthetics doctor to a Myanmar national. A foreigner, whether a Singapore permanent resident (PR) or not, is allowed to buy a landed property for own occupation on Sentosa Cove, subject to the nod of the Land Dealings (Approval) Unit. The other bungalow that changed hands on the same road is closer to the Seven Palms Sentosa Cove condo development.

There is also talk that Fragrance Group boss Koh Wee Meng recently disposed of a seafronting bungalow along Cove Grove with views of the Southern Islands at around $24 million or $2,470 psf on land area of 9,725 sq ft. The bungalow's built-up area is said to be around 11,000 sq ft, spread across two levels and an attic. It features eight bedrooms including a spacious master suite, a rooftop jacuzzi and a swimming pool. The property was believed to be Mr Koh's weekend home.

Market watchers note that the sale follows Mr Koh's purchase last year of a nearby bungalow. The hotel and property tycoon paid close to $16.8 million or slightly over $1,720 psf on land area of 9,740 sq ft for that property. This was at a loss to the seller, who forked out around $16.5 million for the land alone in 2008, say sources. The seller was Tony Chan Chun Chuen of Hong Kong, the former feng shui consultant to the late tycoon Nina Wang and who is embroiled in legal problems for allegedly forging Mrs Wang's will in an attempt to claim her multi-billion-dollar estate. That bungalow, too, spans two-and-a- half storeys, including a spacious attic, and boasts eight bedrooms and a swimming pool.

Last month, a two-and-a-half storey bungalow at Tudor Close - in the Kheam Hock Road/Dunearn Road vicinity - changed hands for $10.88 million or $1,995 psf on its freehold land area of 5,454 sq ft. It has five bedrooms, a lap pool, lift and wine cellar. Both the seller and buyer are Singapore citizens. The house is currently leased at a monthly rental of $20,000 until August 2014.

In the Meyer Road vicinity, a freehold bungalow with a driveway fronting Broadrick Road fetched $22.2 million or $1,147 psf. A two-storey property and a swimming pool are on the site, which has a land area of 19,349 sq ft. The buyer - believed to be a Singaporean hailing from a family in the construction business - is likely to live in the property.

Source: Business Times – 15 September 2012

 

Punggol waterfront sees wave of launches

The wave of property launches in waterfront Punggol that has left home buyers spoilt for choice is about to grow even bigger.

At least seven private condominiums have been launched in the past year along with five executive condominium (EC) projects since EC development Prive - the first in Punggol - was launched in December 2010.

Another mega private condo project, Allgreen Properties' 920-unit RiverSails will be launched at the end of the month while Qingjian's 383-unit Waterbay EC is expected to be open for applications next month.

On top of that, two more ECs are in the works in the area.

One EC land parcel was recently sold while another site is on the confirmed list of the Government Land Sales (GLS) programme and is slated for sale next month.

While the take-up for projects launched so far has been healthy, the increasingly stiff competition has prompted developers to pull out all the stops to differentiate their projects from others.

For instance, EC Heron Bay offers some buyers their own jacuzzi pool while RiverSails will provide a dazzling array of 50 amenities for residents, including a sky lounge and a tea party lounge.

Experts say that most of the private condos in Punggol have the advantage of either being close to transportation links or close to the area's recently opened 4.2km man-made waterway, offering a slew of recreational activities.

Source: The Straits Times – 15 September 2012

 

Cracks in Bt Timah homes near MRT worksite

The Land Transport Authority (LTA) has started temporary work to fix damage to several houses in Bukit Timah's Watten Estate, believed to be linked to nearby construction of the Downtown Line.

Residents of the terraced and semi-detached houses across from the site of the upcoming Tan Kah Kee MRT station said they began noticing hairline cracks in walls inside and outside their homes one to two months ago.

They complained when the cracks began widening in recent weeks. At least 40 homes in the upscale neighbourhood, where home prices start in the millions, are believed to be affected.

The LTA told The Sunday Times that following the complaints, it checked the houses together with an independent engineer and found them to be structurally safe.

Last week, it carried out interim works to prop up car-porch roofs and shifting walls, and helped some residents move gates that could no longer open.

"LTA and our contractor will continue to monitor the situation very closely and ensure the houses remain safe," its spokesman told The Sunday Times.

"When the basic structural works are completed at the MRT station worksite, expected to be around end-2013, LTA and the relevant agencies will repair the cracks."

The LTA said that it was also taking action to stabilise the ground in the area.

The area's Member of Parliament, Transport Minister Lui Tuck Yew, also visited some of the affected homes yesterday evening and spoke with about 50 residents.

The sinking and cracking are related to water seeping out of the underlying soil, residents recounted later.

They said Mr Lui told them that this is not common, but had happened before, in Arab Street.

In 2004, shophouse owners there noticed cracks on their walls.

Residents said Mr Lui also told them that he had asked the LTA to write to them to confirm that their houses were safe, and to visit periodically to make certain that this remained so.

Source: The Straits Times – 16 September 2012

 

Industry watchers assuage over-supply concerns

Even as a large pipeline of residential units in Punggol has sparked market chatter over a possible over-supply, other areas in Singapore, including the Kovan/Lorong Ah Soo/Hougang belt, Pasir Ris, and Bukit Panjang/Upper Bukit Timah too face substantial upcoming supply.

That being said, these areas are relatively well supported by amenities in the region, and healthy take-up by HDB upgraders.

Pasir Ris is arguably a self-contained township, given that leisure options (Pasir Ris Beach and Downtown East) supplement job opportunities (employment hubs listed above, including Pasir Ris Industrial Drive/Loyang).

The Bukit Panjang/Upper Bukit Timah/Cashew/ Chestnut Avenue belt on the other hand, which can expect some 3,920 private units coming on-stream from 2014, will have its "hibernating potential" unlocked with the completion of new MRT stations in the Downtown Line 2.

While there are no employment hubs within the vicinity, it is within the range of Jurong East, which is envisioned to be Singapore's largest regional hub outside the city centre.

The Hougang/Lorong Ah Soo/Kovan area on the other hand can expect rejuvenation, through the spate of new projects lined up, including mixed use developments with strata malls which will renew the residential identity.

Indeed, a buyer's profile analysis through caveats lodged for projects launched over the past two years show that most of the areas surveyed have a larger share of buyers who are HDB dwellers, with Punggol, Sembawang, and Yishun having the highest average share of purchasers with HDB addresses, at 73 per cent.

Source: Business Times – 17 September 2012

 

Record $1.28m for HUDC unit

A new record has been set for an HUDC flat.

The 1,680 sq ft maisonette along Shunfu Road was sold in July for $1.28million, topping last year's $1.22million sum for a 1,668 sq ft HUDC flat in the same area. This works out to about $762 per sq ft for the new record.

The sale was listed by data-crunching firm Singapore Real Estate Exchange (SRX), which collates sales by major property agencies. It accounts for about 85per cent of resale transactions.

Last Thursday, a Queenstown executive flat sold for $1 million, beating a record set by a Bishan executive maisonette when it sold for $980,000 a week earlier.

HUDC units have been attracting ever-larger bids due to their roomy interiors. The average HUDC flat is about 1,650 sq ft. A standard HDB five-room flat is smaller, at around 1,200 sq ft.

SRX records show that in the past two years, for example, the majority of sales above $1 million for yet-to-be privatised HUDC estates were from the six blocks of flats in Shunfu Ville, near Marymount MRT station.

Farrer Court estate, privatised in 2002, was sold for a jaw-dropping $1.34billion in 2007 - a collective sale record. Each owner at the 618-unit estate pocketed about $2.1million on average.

Analysts said buyers of such flats are paying for the larger sizes, nearby amenities and a possible windfall in the coming years.

"Most buyers go for the rarity of the flat, the large space, location and possibly renovation works done," said ERA Realty key executive officer Eugene Lim.

A Housing Board spokesman yesterday said prices of these flats, transacted in the open market, are a private matter between a willing buyer and seller.

"From time to time, there will be such high resale prices due to unique individual characteristics.

"But they are the exceptions rather than the norm," she said.

Source: The Straits Times – 17 September 2012

 

Over 1,000 DBSS flats still unsold since scheme's suspension

More than 1,000 Design, Build and Sell Scheme (DBSS) flats have been sitting unsold since the scheme was suspended last year.

Experts say demand for these pricier homes has likely been dampened by the bumper fresh supply of build-to-order (BTO) flats since both have a monthly income ceiling of $10,000.

Six DBSS launches have been rolled out since the 806-unit Adora Green in Yishun - now fully sold out - entered the market in February last year.

Some DBSS projects have similarly enjoyed healthy sales.

EL Development's 888-unit Trivelis in Clementi is 90 per cent sold, while CEL Development's 488-unit Belvia in Bedok has found buyers for 400 units.

But other projects have seen more modest sales. Pasir Ris One, for instance, has sold only about a quarter of its 447 units, while 195 units are still up for grabs at 680-unit Parkland Residences along Upper Serangoon Road.

There are also still 206 flats at 682-unit Lake Vista @ Yuan Ching in Jurong up for grabs.

DBSS flats are a hybrid form of public housing. Designed and sold by private developers, they typically come with fittings and better finishings than standard BTO flats.

However, the scheme was suspended in July last year following a public outcry over a Centrale 8 DBSS unit bearing an initial price tag of $880,000. This was subsequently lowered, with the priciest unit selling at $778,000.

The National Development Ministry said last week that it was not rushing to finish the scheme's review as its current priority was to ramp up supply of BTO flats and executive condominiums (ECs).

Its reply came in response to a question from MP Ang Hin Kee on on whether the ministry had completed the review and if the review was looking into how it would impact owners of DBSS flats.

Experts say that the ramp up in BTO launches and the slew of new ECs have placed further pressure on this hybrid segment as they all target primarily first-time buyers.

They add that DBSS projects launched earlier and in areas without a huge ramp up of housing supply have typically fared better.

ERA Realty key executive officer Eugene Lim noted that with BTO flats and ECs cannibalising the demand for DBSS flats, developers will now take longer to move units.

"DBSS flats do offer buyers an alternative as they are priced between BTO flats and ECs. But because of the many alternatives that buyers have now, they are no longer as in demand," he said.

If DBSS flats cost $600,000 to $700,000 in an estate, EC units would cost about $800,000, while private condo units might fetch $1 million, Mr Lim added.

Source: The Straits Times – 17 September 2012

 

12 of 18 HUDC estates already privatised

HUDC units were introduced in the 1970s for middle-income families who could afford bigger flats. There were 18 HUDC projects, comprising 7,731 units. All were on 99-year leases.

The Housing Board stopped building them in 1987 after private property prices fell and interest in HUDC units dwindled.

In 1995, privatisation was introduced for these estates, to give the owners control over their homes. The process of privatisation is by way of public announcement and designation in the Government Gazette.

Once owners of at least 75per cent of the flats support privatisation, the leases can be converted to strata titles.

HDB's lease conditions are then lifted, effectively making them private property.

The process of legally transferring the title from the Housing Board to flat owners takes about 21/2 years to complete.

Of the 18 estates, 12 have been legally privatised, while five have obtained the required 75 per cent mandate for privatisation.

The 12 privatised estates are: Farrer Court, Amberville, Lakeview, Chancery Court, Laguna Park, Gillman Heights, Pine Grove, Ivory Heights, Minton Rise, Waterfront View Estate, Tampines Court, and Eunosville.

The five pending legal privatisation are Bishan (Shunfu), Serangoon North, Hougang North N3, Hougang North N7 and Potong Pasir.

Braddell View is the only estate that has not been privatised.

It was built in two phases, and each development was issued a separate state lease with a different expiry date.

Source: The Straits Times – 17 September 2012