Tag Archives: 2018

Roxy-Pacific to launch six sites for sale in 2018

Roxy-Pacific bought Harbour View Gardens for $ 33.25 million in 2016. (Photo: Colliers International)

Roxy-Pacific Holdings reported a revenue of $ 43.3 million during the fourth quarter of 2017, down 53 percent from $ 93.1 million over the same period in 2016. Net profit also fell 39 percent to $ 7.3 million from $ 11.9 million in Q4 2016.

For the full-year 2017, revenue fell 36 percent to $ 246.8 million, while net profit dropped 41 percent to $ 29.4 million.

The property development segment remained the key revenue driver of the group, accounting for 78 percent of total group revenue in FY2017.

Roxy-Pacific noted that the segment’s comparatively lower revenue in FY2017 of $ 191.8 million from 2016’s $ 326.6 million was “mainly due to the absence of revenue recognised in FY2016 on projects that had completed in 2016 and early 2017”.

Meanwhile, Roxy-Pacific revealed that it currently counts 10 development sites in Singapore as its land bank. Of these, it plans to launch six development sites for sale this year, including The Navian and development sites at Grange Road, Upper Bukit Timah Road, Guillemard Lane as well as Harbour View Gardens at Pasir Panjang and River Valley.

Comprising a total of 440 units, these projects are expected to positively contribute to the earnings of the group progressively from the first quarter of 2019.

“Over the last couple of years, we’ve progressively accumulated predominantly freehold sites at attractive prices amidst the property downturn,” said Roxy-Pacific executive chairman and CEO Teo Hong Lim.

“Now that prices and sales volumes are picking up, we are well positioned to ride on this turnaround with six property launches planned for this year. We’ll continue to prudently strengthen our land bank while focusing on execution to ensure sustainable long-term growth.”


Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

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Residential land sales could reach $16b in 2018

Developers are bidding more aggressively for land amid estimations that they are sitting on a $ 22.9 billion war chest. (Photo: Nikki De Guzman)

Property consultancy Cushman & Wakefield thinks that land purchases in Singapore by real estate developers could hit $ 16 billion this year, with more record land deals emerging, reported Bloomberg.

This is because Cushman’s research director Christine Li believes that developers have accumulated plenty of cash since the housing market was previously weak.

Now that the sector is recovering, they are bidding more aggressively for land, she explained, estimating that home builders are sitting on a $ 22.9 billion war chest from selling homes and as loans from banks.

“Against this backdrop, land deals could continue to set record prices in 2018, especially for sites with little competition in the vicinity,” she said.

Last December, Frasers Property bought a residential site in Jiak Kim Street near the Singapore River for $ 955.4 million ($ 1,733 psf), the highest in terms of psf.

Furthermore, if the $ 16 billion overall tally is achieved for 2018, it will exceed the $ 12.8 billion worth of residential investment sales involving en bloc and public land deals in 2017 as revealed by Colliers International.

“With the residential market on the cusp of a sustained recovery, developers are likely to continue replenishing their land banks, via public land tenders and private collective sales,” noted Tricia Song, Colliers International’s director and research head for Singapore.


Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

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HDB resale prices could bottom out in 2018

Analysts expect resale flat prices to remain flat this year.

HDB resale flat prices fell by 0.2 percent in Q4 2017 from the previous three-month period. For the whole year, prices dropped by 1.5 percent, revealed more complete data released by the Housing Board on Friday (26 January).

Resale flat transactions also fell by 1.2 percent to 5,738 cases in Q4 2017 from the previous quarter. However, the figure was up 14.5 percent from the same period in 2016. In addition, resale transactions rose by 6.1 percent to 22,077 cases in 2017 from the previous year.

Commenting, Eugene Lim, Key Executive Officer at ERA Realty, said prices are expected to bottom out due to spillover effects from the private housing market’s recovery.  

“For 2018, we are expecting resale HDB prices to remain flat. Any price increase is likely to be very moderate and would not exceed 1.0 percent for 2018,” he said.

Meanwhile, there was some growth in the HDB rental market with 53,750 units rented out as at 31 December 2017, an increase of 0.6 percent over Q3. Year-on-year, the number of approved applications to rent out flats was 5.6 percent higher.  

“For the more budget conscious tenant, HDB flats remain the accommodation of choice due to their combination of location and budget,” said Lim.

Looking ahead, HDB said it will launch about 17,000 new flats for sale in 2018. The next BTO exercise takes place in February, with about 3,600 flats offered in Choa Chu Kang, Geylang, Tampines and Woodlands. There will also be a concurrent re-offer of balance flats exercise.

SEE ALSO: Ultimate BTO guide


Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

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News Roundup (January 2018)

Our top Singapore property stories.

Report: Average home prices could rise by 17% over 2018-2021 

The prospects for the Singapore property market are bright, with investment volumes to remain strong and home prices forecast to rise, revealed a 2018 Asia Pacific Property Outlook report released by Colliers International recently.  

On the back of strong economic growth seen in 2017, property investment sales in the city-state are likely to remain robust this year. 

There was a slew of transactions in 2017 which amounted to an estimated $ 40.2 billion, up 54 percent from the previous year. The majority (54 percent) were residential deals due to the strong demand for sites via public tender and the collective sale market. According to Colliers, this was the highest annual investment sale value since the 2007 property boom. 

“This positive momentum should carry into 2018, with a strong start anticipated in the residential sector,” said Tricia Song, Singapore research head at Colliers International. “As at January 10, there are 11 residential collective sale tenders closing in the next five weeks, including City Towers in District 10, and four GLS (Government Land Sales) tenders due on January 30.” 

The property consultancy also expects private home prices to recover further due to demand from displaced sellers of collective sale projects and the large capital gains. 

“Average home prices may rise by 17 percent over 2018-2021, supported by higher GDP growth, falling physical completions and ongoing collective sale deals,” noted Colliers.

Hollandia up for collective sale 

The 48-unit Hollandia residential development located at the junction of Holland Road and Queensway in District 10 was recently launched for collective sale, marketing agent Savills Singapore said.     

The owners are expecting offers in the range of $ 163.15 million, which translates to a land rate of $ 1,515 psf per plot ratio. 

Built in the mid-1980s, the freehold property sits on a 53,505 sq ft site. The plot is zoned for residential use with a gross plot ratio of 1.6. 

Subject to approvals from the relevant authorities, the site may be redeveloped into a 12-storey project with an allowable gross floor area of 107,688 sq ft. No development charge is payable. 

Hollandia is located close to Holland Village MRT station as well as eateries at Dempsey Hill and Holland Village. 

“It has been a while since a freehold redevelopment plot has been put up for sale in the Holland area,” said Suzie Mok, senior director of investment sales at Savills Singapore. 

“Hollandia will draw interest as it is attractively positioned near Holland V. The widely anticipated sale of the mixed-use Government Land Sale Parcel right smack in the heart of Holland V and its forthcoming rejuvenation and transformation will be a key catalyst and potential booster of real estate values in the vicinity,” she added. 

The tender for Hollandia will close on 28 February.

S’pore start-up launches tiny homes 

Local start-up Big Tiny has come up with an innovative idea of building small homes on wheels, which it plans to install in rural areas with breathtaking scenery. 

At nearly the size of a shipping container, these homes can accommodate up to four persons and has a length of 4.8, 6.0 or 7.2 metres. 

However, these houses are not yet available in Singapore. These will be initially installed in Australia, close to the Blue Mountains or Mornington Peninsula. Currently, the firm has two units down under, but plans to increase the number to 50 units by end-2018. It also intends to expand into New Zealand. 

“Tiny house is part of an international movement where people are downsizing their houses to simplify their lives” and reduce resource consumption, said Adrian Chia, who founded the firm with his friends Jeff Yeo and Dave Ng. 

These units will be listed on Airbnb by February, with rents ranging from $ 150 to $ 250, under a profit sharing scheme with land owners, particularly farmers. 

Made from metal and recycled materials, each home is equipped with a bed, kitchenette and common space. It also comes with a heater and air-conditioning. Aside from having secure digital locks, each unit features a rainwater collection system and solar panels, while the waste that goes into the toilet is turned into compost energy. 

Each unit, which costs around $ 80,000 to build, can generally withstand bad weather and can last up to 20 years.

New Futura resized

New Futura condo sells 18 units at average price of $ 3,200 psf 

New Futura, City Development Limited’s (CDL) luxury condominium project at Leonie Hill Road, received positive response from buyers, with 18 units sold at an average price of $ 3,200 psf during its first day of launch on 18 January. 

CDL revealed that only 25 units were released during the private viewing, while the units sold comprised two, three and four-bedroom units. 

It noted that a third of the buyers were Singaporeans, while two-thirds were Singapore permanent residents and foreigners. 

Just a 10-minute walk to Orchard Road, the freehold development is nestled on an 87,000 sq ft site, featuring 124 residential units as well as 253 carpark lots, including 30 supercar lots. 

CDL acquired the site in a collective sale for $ 287.3 million in 2006, which works out to a land rate of $ 1,179 psf. 

“Given the scarcity of brand new developments in the area, we are confident that New Futura will continue to attract savvy buyers looking for luxury living in the heart of town with good investment potential,” said a CDL spokesperson.

  The PropertyGuru News & Views   This article was first published in the print version PropertyGuru News & Views. Download PDFs of full print issues or read more stories now!

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Private home prices expected to rise by 3-10% in 2018

Property prices in Singapore could rise at a median rate of 5.5 percent.

Analysts believe Singapore’s private housing market has indeed rebounded, with prices increasing for two straight quarters following a four-year slump.

In fact, a Bloomberg survey of 11 property experts revealed that private residential prices here are forecasted to rise at a median rate of 5.5 percent, or between three percent and 10 percent for the whole of 2018.

Moreover, the market recovery bodes well for the city-state’s home builders, which are set to report their financial statements next month. For instance, City Developments Limited (CDL) is expected to post an annual profit of $ 563.4 million, while UOL Group’s full-year net income is projected to rise by 9.4 percent.

“Despite the strong run last year, valuations are not yet stretched, particularly in comparison with past periods of a property upcycle,” said Janus Henderson Investors investment analyst Low Xin Yan, adding that the strong performance of property stocks will continue.

Meanwhile, Maybank Kim Eng Securities analyst Derrick Heng reckons that it is “far too early to be worried” over a potential supply glut due to ongoing en bloc sale frenzy, as the homes to be built on such sites won’t enter the market until 2020 at the earliest.


Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

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