Issue 151

Copyright 2011-2014 www.Propwise.sg. All Rights Reserved.

CONTENTS
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Who Manages the Land Supply in Singapore?
Singapore Property News This Week Resale Property Transactions (March 26 April 1)

FROM THE

EDITOR

Welcome to the 151st edition of the Singapore Property Weekly. Hope you like it!

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SINGAPORE PROPERTY WEEKLY Issue 151

Who Manages the Land Supply in Singapore?

By Paul Ho (guest contributor) Have you ever wondered how Singapore's land supply is managed? Who controls the largest land supply? You often see that the URA and HDB launches land for sale do they own this land? In order to shed light on this topic, it is important to understand the role of each statutory body. Urban Redevelopment Authority (URA)

The Urban Redevelopment Authority is primarily in-charge of urban renewal, designing Singapore's land use master plan and various other initiatives. Their role spans residential dwelling, entire township designs

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SINGAPORE PROPERTY WEEKLY Issue 151 which includes commercial, industrial as well as residential zoning and density. The URA also acts as an agent for the State in carrying out land sales for commercial, hotel, private residential and industrial developments. In addition, the URA also sells sites for special uses, for example for heavy vehicle parks, conservation shophouses and recreational developments. Housing Development Board (HDB) The HDB as most people are already aware, involves itself in building low cost public homes for Singaporeans as well as Permanent Residents. Apart from that, HDB is also involved in many other facets of properties. The HDB also manages a total of close to 12,000 ready-built factories and industrial land leases located island-wide catering to a wide spectrum of customer needs. These properties include low-rise workshops, warehouses, high-rise factories with vehicular ramps for access, specialized high-rise food factories and motor-vehicle service and repair complexes, and land-based properties. The majority are for rental. Most of the trades that can be accommodated within these properties and developments are Clean and Light industries and some small-scale General industries. It is still a puzzle why the HDB is involved in industrial properties to begin with. The HDB also acts as an agent for the state to sell land for various uses, though the bulk of this land is residential HDB or EC use, it is not restricted to these.

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SINGAPORE PROPERTY WEEKLY Issue 151 Singapore Land Authority (SLA) The SLA helps the government to manage its land sales system. Its role is to make sure that the land achieves optimum returns. The SLA also manages the land title system, and is also in-charge of appointing sales agents for state land. Hence it is the authority responsible for appointing sales agents such as the HDB, URA, JTC, and LTA and to make sure that compliance and statutory guidelines are adhered to for the land sales process. Certain parcels of land are also available for sale by the state under the SLA. These lands are remnant lands (landed developments) which cannot be economically used by the state and could also be odd shaped. These lands hold great value to the adjacent land owners as they can extend their development and combine it with these remnant lands to create better economic value, or more
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luxurious consumption. Other lands such as agricultural land on short leases are also sold by SLA to bidders. Contrary to popular belief, SLA is a statutory board of the Ministry of Law. Jurong Town Corporation (JTC) The JTC is mainly focused on building Singapore's industrial infrastructure, and has developed 7,100 hectares of industrial land and 3.2 million square metres of ready-built facilities across the entire spectrum of industrial space. The JTCs role is to help Singapore concentrate industrial and economic clusters together by grouping the suppliers and services close to the end users coupled with funding and support, to promote the economic growth of Singapore.

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SINGAPORE PROPERTY WEEKLY Issue 151 JTC is also appointed to be the sales agent of state lands, hence it launches land under the government land sales program (GLS). JTC is under the purview of Ministry of Trade and Industry. Ministry of National Development (MND) This is the ministry where Minister Khaw Boon Wan sits. This is the hottest seat. The MND develops the land use planning for Singapore and pushes through various visions such as the endearing home and global city" initiative. As such, the MND has purview over national well-being, namely food (via Agri-Food & Veterinary Authority, AVA), safety of dwellings (via the Building and Construction Authority, BCA), housing (via HDB), housing transactions and orderliness (via the Council of Estate Agencies, CEA), nature and enjoyment (via the National Parks, NParks) and land use planning, zoning and land user master planning (via the Urban Redevelopment Authority, URA), and aims to provide a superior living environment for Singapore citizens, Singapore PRs as well as other nationalities. The URA is often appointed as the sales agent for government land sales relating to private condominiums and commercial properties, but less so in other property segments. The SLA helps to appoint sales agents for the government land sales (GLS) program for sales of state land. The URA, HDB, JTC, LTA as well as SLA can be appointed sales agents for state land. The MND overlooks the URA and HDB, the Ministry of Trade and industry (MTI) overlooks JTC, the Ministry of Transport overlooks the LTA, and the Ministry of Law overlooks the SLA.
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SINGAPORE PROPERTY WEEKLY Issue 151 Hence for any researcher to do a comprehensive research of property and land supply, he cannot overlook any of the above organizations. For example, if there is an over-supply in condominiums (private properties), but an under-supply in commercial properties, it is possible for condominiums to be converted to commercial properties by paying a Differential Premium (DP) to the Singapore Land Authority (SLA) for change of use. Hence often we cannot analyze any particular property segment in isolation of the other segments. Is HDB veering too far off? And some statutory boards such as the HDB seem to be more enterprising and even have industrial properties under management for rental, which is weird considering its mission.
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Perhaps it has veered a little off its original aim of providing housing for the masses. What do you think? Leave a comment below to let us know what you think. By Paul Ho, holder of an MBA from a reputable university and editor of www.iCompareLoan.com, Singapores first Cloud-based Home Loan reporting platform used by Property agents, financial advisors as well as Mortgage brokers.

SINGAPORE PROPERTY WEEKLY Issue 151

Singapore Property This Week

Residential
Condo project The Sorrento launched at Easter weekend to be Resale condo prices up in March The resale prices of non-landed private homes in March 2014 increased 0.2 percent, alongside an increase in transaction prices in the Rest of Central Region (RCR), compared with the 3.1 percent decline in resale prices in February. The number of resale transactions in March also went up to 451 transactions, which is the highest figure since October 2013, and is 82.6 percent higher than the previous month and 22.5 percent lower than that of March, 2013. Analysts said that this recovery shows the higher demand in March from buyers after the festive January and February, but it will be too early now to cheer. (Source: Business Times)
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The freehold five-storey condominium project The Sorrento (the former Regent Gardens) by Allgreen Properties at West Coast Road will be launched on the Easter weekend of April 19. The indicative pricing was between $1,380 and $1,600 psf. The project is on a site of 78,100 sq ft, and has 131 one to threebedroom units of between 441 sq ft and 1,808 sq ft. The marketing agent for the project is CBRE, which said that the pricing is considered attractive compared to other nearby developments.

(Source: Business Times)

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SINGAPORE PROPERTY WEEKLY Issue 151 HDB resale prices go up slightly Data from the Singapore Real Estate Exchange (SRX) shows that the resale prices of HDB flat has slightly increased for 0.3 percent in March, as price increases in smaller units balanced the declines in larger units. Prices for three- and four-room units went up 0.5 percent and 0.8 percent, as buyers looked for units with smaller quantum due to the loan cap of the Mortgage Servicing Ratio (MSR). Transaction volumes also significantly went up since buyers returned after the festive months of January and February. (Source: Business Times) Hillview House up for sale The freehold Hillview House is now up for sale with an asking price of $55 million, or $875 psf based on its potential gross floor
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area including an $18.2 million estimated development charge payable to the state the same price as of last round when it was offered in a tender exercise closing in July 2013. This times tender closes on May 12. Its owner will offer the site in a vacant state, after having pulled down the old Hillview House industrial building to meet the Urban Redevelopment Authority's Feb 23, 2014 deadline of ceasing industrial activities and clearing the site for the qualified 1.92 plot ratio, including a 0.3 additional plot ratio. (Source: Business Times) Sky Habitat to be relaunched at lower prices CapitaLand's Bishan project Sky Habitat is reported to be relaunched at lower prices of $1,370 psf on April 19, according to its marketing agent Knight Frank.
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SINGAPORE PROPERTY WEEKLY Issue 151 At the projects first launch in 2012, the prices was from $1,435 to $1,893 psf, and the average selling price was about $1,650 psf with the initial 3 per cent discount given to all buyers. 36 percent of 509 units have been sold as the project is near its temporary occupation permit in 2015. The relaunch price of one-bedroom cum study could be from $1.05 million or $1,485 psf, compared with the previous price of $1,600 psf. (Source: Business Times) Commercial Frasers Centrepoint Changi City Point Trust purchases million. The decision of acquisition was negotiated on an arm's-length basis between FCAM and the vendor Ascendas Frasers, which is a 50-50 joint-venture between Frasers Centrepoint Limited and Ascendas Development. (Source: Business Times) Far East-Sekisui House joint venture wins highest bids for Woodlands office site The joint venture between Far East Organization, its listed unit Far East Orchard and Sekisui House was reported to have had the highest bid of nearly $634 million, or $906.29 psf of the potential gross floor area for the office site in Woodlands Regional Centre in a state tender. The venture is planning to build two 16-storey office towers on the site with large and small strata office units for sale and lease.
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Frasers Centrepoint Trust (FCT) was reported by its manager Frasers Centrepoint Asset Management (FCAM) to have reached a conditional sale-and-purchase agreement for Changi City Point mall for a possible $305
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SINGAPORE PROPERTY WEEKLY Issue 151 Some retail space will also be expected for the ventures long-term investment. The second highest bid was $887.42 psf ppr by CapitaLand units Mahogany One and Mahogany Two. (Source: Business Times) 14th floor of Samsung Hub sold for $39.72 million late 2012, early 2013 for prices between $2,920-$3,150 psf. (Source: Business Times)

CapitaGreen has its first tenant

The new 40-storey Grade A office tower CapitaGreen, which will be completed in Q4 2014, has landed its first tenant, as Cargill has signed a lease of 50,000 sq ft on two floors with the monthly rents of $9 psf. Swiss private bank Bordier & Cie may be the next tenant as it could be signing a lease for 11,000-12,000 sq ft - or half a floor in the tower as it leaves its current location at GB building along Cecil Street. A serviced office operator could also be in negotiation to lease a floor at the building. (Source: Business Times)

The 14th floor of Samsung Hub was sold at $39.72 million, or $3,030 psf on its 13,110 sq ft strata area. It has also been speculated that Arch Capital Management is selling the whole office floor of four strata units to a mainland Chinese company, but the floor is still leased until the end of 2014 to a law firm. If this happens, Arch Capital will be leaving the 999year leasehold office tower, as it had already sold its 13,110 sq ft space on the 13th floor in

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SINGAPORE PROPERTY WEEKLY Issue 151 Hotel room rates increase in early 2014 Initial figures from the Singapore Tourism Board (STB) showed that average room rates (ARR) increased 2.5 percent year-on-year to $260.10 in January and February 2014, painting an optimistic outlook for the industry. The industry-wide occupancy also increased 0.8 percent to 86 percent. The revenue per available room (RevPAR), a performance indicator based on ARR and average occupancy went up to $223.60. Luxury, upscale and mid-tier hotels were all reported to slightly increase in their ARR and RevPAR. However, economy hotels lost 4.7 percent in ARR to only $95.80, while its RevPAR declined 8 percent to $76.20. (Source: Business Times)

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SINGAPORE PROPERTY WEEKLY Issue 151

Non-Landed Residential Resale Property Transactions for the Week of Mar 26 Apr 1
Postal District 1 1 1 3 3 4 5 7 8 9 9 9 9 10 10 10 10 11 12 12 12 15 15 15 Area (sqft) 614 614 926 786 1,098 1,335 1,765 958 344 969 1,841 1,755 1,033 1,615 1,345 2,067 1,755 1,066 334 1,152 1,238 1,066 441 1,044 Transacted Price ($) 1,520,000 1,290,000 1,750,000 1,200,000 1,480,000 2,158,000 1,970,000 1,565,000 613,000 2,665,000 4,045,000 3,780,000 1,900,000 3,700,000 1,950,000 2,960,000 2,000,000 1,531,000 550,000 1,250,000 1,300,000 1,920,000 728,500 1,220,000 Price Tenure ($ psf) 2,477 99 2,103 99 1,890 999 1,527 99 1,348 FH 1,617 99 1,116 FH 1,634 99 1,780 FH 2,751 FH 2,198 FH 2,154 FH 1,839 FH 2,292 FH 1,449 FH 1,432 FH 1,140 FH 1,437 FH 1,648 FH 1,085 FH 1,050 FH 1,802 FH 1,651 FH 1,168 FH

Project Name THE SAIL @ MARINA BAY THE SAIL @ MARINA BAY EMERALD GARDEN RIVER PLACE ALESSANDREA CARIBBEAN AT KEPPEL BAY LANDRIDGE CONDOMINIUM SOUTHBANK CITY LOFT MARTIN NO 38 RIVERGATE RIVERGATE ROBERTSON 100 LATITUDE MUTIARA VIEW THE TRIZON HOLLAND RESIDENCES M21 AIRSTREAM RIO GARDENS MOONSTONE RESIDENCES THE SEAFRONT ON MEYER ESPIRA SUITES DE CENTURION

Postal District 15 16 16 16 16 17 17 18 19 19 19 19 19 21 21 22 23 26 26

Project Name PEACH GARDEN COSTA DEL SOL WATERFRONT WAVES THE BAYSHORE RICH EAST GARDEN COASTAL BREEZE RESIDENCES LOYANG VALLEY EASTPOINT GREEN KOVAN GRANDEUR KOVAN MELODY CASA ROSA SUITES @ PAYA LEBAR HOUGANG GREEN THE BLOSSOMVALE PARC PALAIS THE MAYFAIR GUILIN VIEW THE CALROSE THE CALROSE

Area (sqft) 2,766 1,313 1,259 1,012 2,573 1,184 1,873 969 570 1,152 1,130 1,249 1,141 1,324 1,389 1,163 861 1,238 1,238

Transacted Price ($) 3,050,000 1,858,000 1,460,000 1,058,888 2,600,000 1,166,000 1,100,000 900,000 680,000 1,200,000 1,060,000 938,000 790,000 1,888,000 1,380,000 950,000 800,000 1,600,000 1,580,000

Price Tenure ($ psf) 1,103 FH 1,415 99 1,159 99 1,047 99 1,011 FH 985 99 587 99 929 99 1,192 99 1,042 99 938 99 751 FH 692 99 1,426 999 994 FH 817 99 929 99 1,293 FH 1,276 FH

NOTE: This data only covers non-landed residential resale property transactions with caveats lodged with the Singapore Land Authority. Typically, caveats are lodged at least 2-3 weeks after a purchaser signs an OTP, hence the lagged nature of the data.

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