Tag Archives: Residential

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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Oxley now holds the largest residential land bank

After a flurry of overseas ventures, Oxley Holdings now holds the biggest residential land bank in Singapore by the number of dwelling units at almost 4,000 units, reported Business Times.

This comes after the Singapore-listed developer acquired huge en bloc sites such as Rio Casa and Serangoon Ville via a consortium last year. It also acquired large en bloc sites Vista Park and Mayfair Gardens as well as smaller sites Apartment 8 and Toho Green.

Hong Kong-listed Chinese developer Logan Property Holdings came in second place with more than 2,000 units.

Other Chinese developers with sizeable residential land bank, following a ramping up of their exposure in Singapore last year, include Qingjian Realty, Kingsford Development and SingHaiyi Group.

Frasers Centrepoint Ltd, Allgreen and MCL Land, which have been operating within the city-state for a long time but are considered foreign due to their controlling shareholding, also went on to significantly bump up their residential land bank in 2017.

Oxley executive chairman and CEO Ching Chiat Kwong noted that his company’s average land cost is, nonetheless, relatively cheaper compared to its peers since the sites have been selectively acquired in good locations, allowing Oxley to sell more affordable apartments.

“Hence, we remain optimistic for the next two years,” he added. “Furthermore, with so many en bloc deals going on, residents will need to buy houses as well when they surrender their properties.”

In terms of value, however, City Developments Ltd (CDL) remains on top. Given the number of luxury projects on its books, CDL’s inventory has the highest gross development value at around S$ 4 billion, said DBS Research Group.

Market watchers expect developers to continue replenishing their land bank albeit in a more selective manner as more than 22,000 new units are forecasted to enter the market in 2018 to 2019.

“While they acknowledge their declining land banks and are cognisant of a price recovery, most are unwilling to be too aggressive on pure residential sites in view of subdued single-digit margins, their inability to differentiate the end-product unlike integrated or mixed-use projects, and higher internal hurdle rates,” said JPMorgan property analyst Brandon Lee.

 

This article was edited by Keshia Faculin.

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Knight Frank names new residential head for Asia Pacific

Knight Frank has appointed Victoria Garett as head of residential for Asia Pacific, based in Singapore.

Garrett, who spent four years in Dubai as Knight Frank’s head of the new homes team, relocated to Singapore in August 2017, focusing on the residential business in China. This saw her setting up residential teams in Shenzhen and Guangzhou.

In view of Knight Frank’s plan of growing and developing its Asia Pacific residential business, Garrett will oversee the marketing of overseas and local developments, sales and leasing.

“In this new year, we are looking at engaging with our clients on a more intimate level, particularly so where wealth preservation and inter-generational wealth transfer issues take centre stage for high-net-worth investors,” said Garrett.

“Providing clients with an integrated regional perspective on the opportunities developing across the region and beyond is how we would like to differentiate our services to our clients.”

 

This article was edited by Keshia Faculin.

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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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URA to launch tender for residential site at West Coast Vale

The Urban Redevelopment Authority (URA) has accepted an application from a developer to put up the residential site at West Coast Vale for sale by public tender.

This comes after the developer committed to bid a price of not less than S$ 379.988 million in the tender for the site.

“As the minimum price committed by the developer is acceptable to the government, the site will be released for sale by public tender,” said the URA.

With a maximum permissible gross floor area of 54,857 sq m, the 1.9ha site was made available for sale on the reserve list of the second half 2017 Government Land Sales Programme.

Tricia Song, head of research for Singapore at Colliers International, noted that the West Coast Vale site has been triggered for sale despite the abundance of new and upcoming supply within the area.

“We think this is probably due to the brisk sales chalked up at 752-unit Parc Riviera which is now 87 percent sold as of October 2017, at a median price of S$ 1,250 psf, since it was launched in November 2016,” she said.

“Next to the Parc Riviera site is a new, yet-to-launch project Twin Vew – which can yield 570 units – that was sold in February 2017 to China Construction at S$ 592 psf per plot ratio (ppr).”

Song expects the top bid for the site to stand at “about S$ 443 million to S$ 472 million (S$ 750 to S$ 800 psf ppr), with a selling price of S$ 1,300 to S$ 1,375 psf”.

The trigger price of S$ 379.988 million translates to S$ 643.5 psf ppr, she added.

Meanwhile, the URA revealed that the public tender for the land parcel will be launched in about two weeks, while the tender period for the site will be about six weeks.

This article was edited by Romesh.

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