Category Archives: Singapore Property News

Oxley acquires residential units for $21.53mil

Oxley Holdings, via its fully-owned subsidiary Oxley Topaz Pte. Ltd., has exercised the option to acquire eight residential units at 21 Meyappa Chettiar Road for a total price of $ 21.53 million.

Zoned for residential use, the freehold property has a land area of around 898.1 sq m.

In an SGX filling, Oxley revealed plans to “redevelop the property, subject to obtaining all the necessary approvals from the relevant authorities”.

Oxley noted it had paid a sum of $ 215,300 upon the grant of the options and another $ 861,200 during the exercise of the options. The rest of the purchase price will be paid upon the completion of the acquisition.

It plans to fund the purchase by internal resources and bank borrowings.

Oxley does not expect the acquisition to materially affect the company’s earnings per share or net tangible assets per share for the current financial year ending 30 June 2018.

 

This article was edited by Keshia Faculin.

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Lian Beng, KSH, Heeton buy Geylang properties for $60mil

Lian Beng Group Ltd, via its 42 percent-owned associated company Development 24 Pte. Ltd., has exercised an option to acquire the freehold properties known as 31 to 51 (ODD) Lorong 24 Geylang.

KSH Holdings and Heeton Holdings also holds a 48 percent and 10 percent stake in Development 24.

In a separate SGX filings, Lian Beng, KSH and Heeton said the aggregate consideration for the properties is $ 60 million, of which $ 6 million has already been paid during the exercise of the option. They noted that the balance shall be paid within 12 weeks.

Located on a total of 12 lots of land, the properties – which comprise around 26,188 sq ft of land area – could be redeveloped into an eight-storey residential development with a maximum allowable gross floor area of around 73,325 sq ft.

Lian Beng, KSH and Heeton revealed that their respective share of funds for the purchase will be financed by external borrowings and internal funds.

They do not expect the acquisition to materially affect the groups’ net tangible assets and earning per share for the current financial year.

Lian Beng added that Ko Chuan Aun, “an independent director and shareholder of the company, is also an independent director of KSH Holdings Limited”.

 

This article was edited by Keshia Faculin.

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17 buildings completed removal of non-compliant cladding

Of the 34 buildings identified to have used non-compliant cladding, 17 have already completed the removal of the cladding, said the Singapore Civil Defence Force (SCDF).

In August, SCDF announced that two models of the Alubond brand composite panel, which was used as cladding on external walls of buildings, were found to be non-compliant with Fire Code requirements.

SEE ALSO: Govt may require fire safety upgrades for old buildings

The discovery of the non-compliant cladding comes after an industrial building at 30 Toh Guan Road caught fire in May, resulting in the death of a 54-year-old woman, reported Channel News Asia.

In its update, SCDF said the 17 other buildings are in the process of removing the non-compliant cladding.

It also revealed that it has identified two more composite panel models – Bolliya and Bolli-Core FR – that may not be Class “0” certified. SCDF noted that seven buildings may be affected by the new finding.

Another two building projects may also be affected by other non-compliant models of composite panels.

“Investigations are ongoing to determine how the non-compliant composite panels which do not meet Fire Code requirements for use as cladding, came to be used for these building projects.”

Buildings with unrestricted public access are JTC LaunchPad @ one-north and Vista Point at 548 Woodlands Drive 44.

SCDF said it has contacted all affected building owners.

“All affected building owners whose cladding are found to be non-compliant with Fire Code requirements must work with their qualified persons to remove the affected cladding within 60 days, starting from the ground level.”

“In the meantime, the building owners will be required to further strengthen fire safety practices by ensuring that their fire safety systems are in good order, enhancing vigilance of their personnel, and removing fire hazards.”

SCDF added that it is working with certification bodies and qualified persons to check for other buildings with non-compliant cladding.

It is also reviewing its fire safety regulations and certification processes on “the use of composite panels as cladding with a view further tightening them”.

The result of the review will be announced in 2018.

 

This article was edited by Keshia Faculin.

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Jervois Green sold for $52.9mil, Brookvale Park up for en bloc sale

Singapore’s collective sale market continues to heat up with the sale of  Jervois Green and the launch of Brookvale Park.

A four-storey freehold development at 100A Jervois Road, Jervois Green has been sold for $ 52.9 million to investors led by Mike Ho, third-generation owner of Spring Court, one of the oldest Chinese restaurants in Singapore.

The sale price – which was 10 percent higher than the $ 48 million asking price of the owner – translates to a land rate of $ 1,601 psf per plot ratio (ppr) inclusive of a development charge of around $ 6.95 million, noted Colliers International, which brokered the deal.

With a site area of around 26,700 sq ft, Jervois Green comprises eight apartments and was held under single-ownership. As such, the sale is not subject to the approval of the Strata Titles Board/High Court.

The site is zoned for residential use under the 2014 Master Plan with a plot ratio of 1.4. Not subject to the Pre-Application Feasibility Study, it can be redeveloped into a five-storey development comprising 42 units of around 850 sq ft each, subject to approval by the relevant authorities, said Colliers.

“The future selling price for the new development is envisaged to be above $ 2,500 psf or from $ 2.1 million per unit,” it added.

Closing on 5 December, the tender for Jervois Green “drew strong interest with six bids received from a wide spectrum of investors and developers”, said Tang Wei Leng, managing director at Colliers International.

“The tight bids not only reflect the market consensus on the pricing in the locale, but also signal the positive sentiment among bidders on the back of a comeback in the residential property market.”

Meanwhile, Brookvale Park in the Sunset Way estate, off Clementi, has been put up for en bloc sale, with a minimum price of S$ 530 million, said marketing agent JLL.

Comprising 160 units, Brookvale Park was built in the early 1980’s on a 999-year leasehold site.

JLL said the 373,008 sq ft site may be “redeveloped into a residential development of up to 12 storeys, with a total gross floor area of about 656,494 sq ft, including a 10 percent bonus balcony area”. The new development could yield 550 units with an average size of 1,100 sq ft.

Inclusive of an estimated development charge of around $ 26 million, the minimum price works out to a land cost of $ 932 psf ppr, with the breakeven price at around $ 1,480 to $ 1,500 psf.

“This compares favourably with recent land sales in the vicinity, such as Royalville at $ 1,960 psf ppr, Mayfair Gardens at $ 1,244 psf ppr and the Government Land Sales sites at $ 939 and $ 1,540 psf ppr for Toh Tuck Road and Fourth Avenue respectively,” added JLL.

The tender for Brookvale Park will close on 25 January 2018.

 

This article was edited by Keshia Faculin.

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Property agents battle with the lure of earning easy money

With the growing demand for short-term accommodations, property agents in Singapore contend with the constant struggle of fending off temptations of earning additional income by listing and managing vacant rooms or units on Airbnb.

A property agent who wanted to be known only as William said requests to list and manage units or rooms on Airbnb would usually come from overseas-based property owners or Singapore homeowners who wanted to “skip the hassle of managing (the short-term rental of their units) themselves”, reported Today Online.

OrangeTee & Tie property agent Timothy Chew revealed that he receives about 10 calls in a year from people in need of short-term accommodation.

Most of the calls come from foreigners with short-term visit passes who are here in Singapore for medical reasons or Singaporeans in need of a place to stay since their homes are being renovated.

And while Chew referred them to serviced apartments, some agents would usually refer such clients to homes listed on Airbnb due to the higher rent for serviced apartments.

Agents could also earn a higher commission from such deals, since their agencies are usually cut out from the transactions.

Propnex Realty agent Aaron Lin, however, pointed: “Is it worth it to take such risks? You still have to clean up the place every two to three days.”

Moreover, errant agents could lose their licence, be sacked by their agencies, or worse, brought to court – just like what happened to Savills Residential property agents Yao Songliang and Terence Tan En Wei.

The duo, who were the first to be brought to court for violation of Singapore’s short-term stay policy, allegedly rented out four units at D’Leedon condominium in Farrer Road for short-term accommodations via Airbnb.

With this, Suntec Real Estate Consultants research director Colin Tan said property agents “should know better” than to run the risk of losing their source of livelihood for easy money.

“These people are doing it quite blatantly… it forces the authorities to come down hard on them,” he added.

 

This article was edited by Keshia Faculin.

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