CategoriesProperty News

MND turns down petition to review Sers, as not many more eligible sites expected

SINGAPORE – A petition for the Selective En bloc Redevelopment Scheme (Sers) to be put on hold and thoroughly reviewed has been turned down by the Government, as it does not expect many more sites to be eligible for the “highly selective” scheme.

Most of the projects with high redevelopment potential have already been selected, and thus, an extensive review of Sers would be “unnecessary”, said the Ministry of National Development (MND) in written responses to a parliamentary committee handling the petition submitted by Progress Singapore Party Non-Constituency MP Leong Mun Wai in August.

Mr Leong had submitted the petition to Parliament on behalf of five Ang Mo Kio residents, who called for a temporary suspension of the scheme and a complete review of how compensation and rehousing options are provided for affected residents.

The Housing Board had chosen Blocks 562 to 565 in Ang Mo Kio Avenue 3 for Sers in April, and residents were unhappy at having to fork out more money to buy similar-sized replacement units in a less desirable location.

This exercise was not the first time residents affected by Sers had to top up to buy a replacement flat, said MND in its reply to the Public Petitions Committee, citing the 2003 Commonwealth Drive and 2016 West Coast Road Sers exercises as examples.

The eight-member committee, which is chaired by Speaker of Parliament Tan Chuan-Jin and includes Mr Leong, presented a report on the petition to Parliament on Thursday.

The report, which was released to the media, included three rounds of written responses from MND from Sept 16 to Monday.

Source: The Straits Times

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CategoriesProperty News

Commercial property market hits inflection point as debt cost outpaces rent

THE cost of debt on commercial property has risen so fast that it’s now more expensive to finance many real estate deals than owners currently earn from rents. About US$5.5 billion, or 28 per cent, of new commercial mortgage-backed securities had negative leverage – where the cost of debt exceeded projected returns on investments – in the third quarter, according to a report by Moody’s Analytics. Only 8 per cent of similar loans had negative leverage in the second quarter and barely 2 per cent were negative in the third quarter of 2021. Properties such as warehouses and apartments are more likely to face these issues, given prices had soared as investors bet they could generate positive returns by raising rents. Now, warehouse demand is cooling and apartment landlords are pressured as renters start to reach affordability limits.
“Ultimately, negative leverage will drive bid prices lower,” Kevin Fagan, head of commercial real estate economic analysis for Moody’s, said in an interview. “You’re either not going to buy that investment, or if it comes to refinancing, you might have to hand the keys back. You might not be incentivised to save the property.” The CMBS deals capture a limited slice – but are a representative bellwether – of all commercial real estate financing, Fagan said. The Federal Reserve has aggressively raised interest rates to combat inflation, a move that has driven up the cost of debt in areas such as real estate. Borrowing costs in CMBS deals for warehouse and industrial properties have jumped to 5.29 per cent from a recent low of 3 per cent in the last quarter of 2021, Moody’s reported. The last time a significant number of mortgages had negative leverage was before the start of the 2008 global financial crisis, which unleashed a flurry of defaults as property values plunged.
CategoriesProperty News

Freehold boutique hotel in Little India up for sale at S$35m guide price

A FREEHOLD, three-storey boutique hotel in Jalan Besar/Little India has been put up for sale at a guide price of S$35 million, said marketing agent Savills Singapore on Wednesday (Oct 26).

The sale will be conducted through an expression of interest (EOI) exercise. Foreigners and companies are eligible to purchase the property, and no additional buyer’s stamp duty or seller’s stamp duty will be imposed.

Situated along Dunlop Street and Perak Road, Sandpiper Hotel sits on a freehold land area of approximately 2,750 square feet with full “commercial” zoning and hotel approval. The property was built in 2005 and consists of 29 hotel rooms.

Part of the ground floor space is currently leased out to a food and beverage operator as an al-fresco dining area, and a small kiosk will be carved out to operate as a money exchange.

Jeremy Lake, Savills’ managing director for investment sales and capital markets, said the property stands to benefit from the recent easing of border restrictions and the potential influx of international tourists, given its location in a heritage district.

“The purchaser for the subject property can look at value-add potential to reposition the asset. For example, it can be converted into serviced or co-living apartments that provides longer but flexible lease terms,” he said.

Source: Business Times
CategoriesProperty News

URA revises guideline on proportion of bigger units in non-landed residential developments in Central Area

 

Singapore (EDGEPROP) – All new flats, condominiums and residential components of commercial and mixed-use developments will be required to provide a minimum of 20% of dwelling units (DUs) with a net internal area of at least 70 sq m (753.5 sq ft), according to a URA circular issued on Oct 18.

The Central Area spans 11 Planning Areas: Outram, Museum, Newton, River Valley, Singapore River, Marina South, Marina East, Straits View, Rochor, Orchard and Downtown Core. URA has observed a persistent trend in declining DU sizes for developments in the Central area, and has introduced the revised guideline to ensure a good mix of DU sizes within the Central Area.  A

s the positioning of the Central Area has shifted to live, work and play, there have been concerted efforts to introduce more mixed uses in the Central Area to encourage more live-in population and inject vibrancy.  “The threshold of 70 sq m is a reasonable size for small families, taking into account the tighter space constraints in the Central Area,” the circular says.

URA did not impose a cap on the total number of DUs within the Central Area as new developments are less likely to put a strain on local infrastructure. Meanwhile, developers are encouraged to provide a good mix of DU sizes to cater to the needs of all segments of the market, including larger families, and avoid a disproportionately large quantity of smaller DUs.

Lee Sze Teck, senior research director at Huttons, expects slightly bigger units in the future but sees the overall impact on the market as minimal. Most of the projects in the Central Area are in compliance with this new rule, he notes. Investors may have fewer choices of smaller units in the future and may have to resort to looking to the resale market, driving up prices of smaller units.

However, Lee expects some of the en bloc sites in the Central Area and the Marina Gardens Lane to be affected by the updated guidelines. Developers may re-assess potential bids for en bloc sites due to cost considerations, affecting the success rate of en bloc sites in the Central Area.

In 2018, URA revised guidelines on maximum allowable number of DUs in non-landed residential developments outside the Central Area. The maximum allowable number of DUs is derived by dividing the proposed building gross floor area by 85 sq m. URA says it will continue to monitor and review the guidelines periodically, taking into account factors such as lifestyle changes and infrastructural developments.

The latest guidelines will apply to development applications submitted to URA from Jan 18, 2023, onwards.

Source: EdgeProp
CategoriesProperty News

Residential property rents, volumes up in September amid ‘landlord’s market’

RENTAL prices for both condominium and Housing and Development Board’s (HDB) properties grew by more than 3 per cent each over the month of September, while volumes rose in tandem.

According to flash estimates by SRX Property and 99.co released on Wednesday (Oct 12), condo rentals rose for the 21st consecutive month by 3.3 per cent from August 2022, with the Rest of Central Region (RCR) registering the highest increase of 3.9 per cent.

Condo rents in the Core Central Region (CCR) and Outside Central Region (OCR) increased by 2.6 per cent and 3.3 per cent, respectively.

On a year-on-year basis, condo rental prices were up 30.9 per cent overall with rents in the RCR, OCR and CCR increasing by 31.8 per cent, 31.3 per cent and 29.3 per cent respectively.

An estimated 4,760 condo units were rented out over September compared to 4,334 units the previous month, representing a 9.8 per cent increase. This was 1.9 per cent higher when compared with September 2021, and up 5.6 per cent from the five-year average volume for the month of September.

Breaking it down by region, 38 per cent of total volumes came from the OCR, with 35.3 per cent from the RCR and 26.7 per cent from the CCR.

Source: BusinessTimes


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CategoriesProperty News

Singapore introduces property cooling measures, with stricter borrowing criteria and tighter limits for HDB loans

SINGAPORE: The Government unveiled a slew of property cooling measures on Thursday (Sep 29), aimed at moderating demand and ensuring prudent borrowing amid rising interest rates.

The measures, which come into effect from Sep 30, include tightening the maximum loan quantum limits. For HDB loans, the loan-to-value (LTV) limit has been lowered from 85 per cent to 80 per cent.

To moderate demand in the HDB resale market, there is now a 15-month wait-out period for private homeowners buying HDB resale flats.

It is a temporary measure which will be reviewed in future depending on overall market conditions and housing demand,”

said HDB, the Monetary Authority of Singapore (MAS) and the Ministry of National Development (MND) in a joint press release issued slightly after 11.40pm on Thursday.

Source: CNA
CategoriesProperty News

New definitions of floor area could eat into developers’ saleable area – and margins – for condo projects

EARLIER this month, the Urban Redevelopment Authority (URA) issued a circular on harmonisation of floor area definitions to be adopted by 4 government agencies: URA, Singapore Land Authority (SLA), Building and Construction Authority, and Singapore Civil Defence Force.

The changes, which will take effect on Jun 1, 2023, have the laudable objective of improving productivity for the built environment profession. However, they will also have implications for private housing developers, resulting in a reduction in saleable area for condominium projects.

This is because under the new standardised definition, all strata areas will have to be…

Source: Business Times
CategoriesProperty News

Six more MRT stations will be built in Phase 2 of Cross Island Line; to open by 2032

The stations are Turf City, King Albert Park, Maju, Clementi, West Coast and Jurong Lake District, forming Phase 2 of the Cross Island Line. 

SINGAPORE: Six more stations on the Cross Island Line (CRL) will be built and are slated to open in 2032, Transport Minister S Iswaran announced on Tuesday (Sep 20).

Spanning 15km, the stations will improve connectivity for residents in the west, including areas such as Sunset Way and West Coast that are not currently served by an MRT line, said the Land Transport Authority (LTA).

 

Two of the stations will be interchanges, with King Albert Park linking to the Downtown Line and Clementi to the East-West Line.

Location of Turf City MRT Station along the second phase of the Cross Island Line. (Image: LTA)
Source: CNA
CategoriesProperty News

Euro-Asia Park up for en bloc sale at S$500m

DISTRICT 13 freehold condominium Euro-Asia Park will be put up for collective sale via public tender on Tuesday (Sep 13) with a guide price of S$500 million, said exclusive marketing agent OrangeTee Advisory on Monday.

The low-rise development was built in 1996 and has a total of 163 units. It has a land area of about 129,793 square feet (sq ft) and is zoned for residential use with a gross plot ratio of 2.8 under the Urban Redevelopment Authority Master Plan 2019. 

Developers can expand up to its maximum allowable gross floor area of 338,860 sq ft — which includes an additional 7 per cent bonus floor area for private outdoor spaces. This will bring the land rate per square foot per plot ratio to S$1,520, taking into account an estimated land betterment charge of S$71.5 million.

Source: Business Times
CategoriesProperty News

GuocoLand to set new benchmark with launch of Lentor Modern, ‘the only integrated development’ in Lentor area

SINGAPORE (EDGEPROP) – GuocoLand’s Lentor Modern, the first project and the only integrated development in the up-and-coming Lentor Hills estate, will preview on Sept 2. The development will have 605 residential units across three 25-storey residential towers as well as a retail mall. The entire development will be linked underground to the Lentor MRT Station on the Thomson-East Coast Line.

The 96,000 sq ft retail space at Lentor Modern has a prominent frontage at street level. Due to the slope of the terrain, the mall has one floor at one end and three floors at the other end. While the shops and F&B outlets are on the first level, a 12,000 sq ft supermarket sits on the second level and a 10,000 sq ft childcare centre is on the third. “The project is designed such that residents can have direct access to all the amenities in under one minute — from the MRT station to the shops, groceries, dining options and the childcare centre,” says Dora Chng, GuocoLand general manager (residential).

The Lentor area is an interesting, affluent neighbourhood, surrounded by private housing estates, It’s close to nature, but what it doesn’t have is a hub, a centre where the surrounding community can gather.”

 says Cheng Hsing Yao, CEO of GuocoLand.

Source: EdgeProp