Tag Archives: Sales

En bloc sales soars by over 4-fold, says MND

An aerial view of Rio Casa, a 286-unit development at Hougang Avenue 7. (Photo: Knight Frank Singapore)

Collective sales have surged from around 600 units for the whole of 2016 to about 2,700 existing private homes so far this year, revealed the Ministry of National Development (MND) during a parliamentary session on Monday (6 November).

MND thinks that the strong sales growth is due to two primary factors.

“First, more developers are keen to replenish their land banks.  There has been a healthy increase in the sales of new units in the first three quarters of the year, which in turn means that the unsold supply in the pipeline has come down. To illustrate, there are about 17,200 units as at Q3 2017, down from about 40,000 units in 2012. “

“Second, successful en-bloc sales in 2016 may have encouraged more owners of ageing residential projects to initiate the en-bloc sale process this year to monetise their assets.”

These are MND’s responses to the queries of MP for Nee Soon GRC Dr Lim Wee Kiak regarding the main driving forces for the recent spike in en bloc sales.

He also asked if whether there is a need to increase the number of residential sites offered under the Government Land Sales (GLS) programme, and what is the effect of the robust en bloc sales on the property market’s outlook over the next six months.

In reply, the MND said that the en-bloc residential sites sold since last year are expected to be launched for sale in the next one to two years. And these upcoming units and other key factors like population and income growth as well as prevailing market conditions will be taken into account before deciding the number of state land to be made available for sale.

Specifically, it noted that the GLS programme is updated on a half-yearly basis, with Confirmed List sites designated to be released for sale within the next six months, while Reserve List plots will be triggered for sale once a developer has committed to a minimum bid price. This implies that the latter will only be purchased by home builders if they feel that there exists underlying demand.

The authorities will also continue to closely monitor market trends and take necessary actions to ensure that the property sector is stable and sustainable, said the MND, adding that the details of 1H 2018 GLS programme will be announced by year-end.


This article was edited by Keshia Faculin.

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Land sales to hit $14b, a sign of property market resurgence

Pearlbank Apartments in Outram is a 37-storey horse-shoe shaped building that comprises 280 apartments and eight commercial units. (Photo: Colliers International)

More than $ 3.3 billion worth of land deals, including en bloc sales, are expected to be completed in Singapore during this quarter, boosting the total for the whole year to $ 14 billion, reported Bloomberg, citing data from Cushman & Wakefield Inc.

This is the highest figure since 2011, said the property consultancy, adding that this indicates that the city-state’s real estate sector is set to recover significantly by next year.

“Singapore’s residential and office market has passed its inflecion point, embarking on an exciting recovery journey,” said Cushman & Wakefield’s Research Director Christine Li.

“With brighter economic prospects and improved market sentiment in the next two to three years, developers are increasingly sourcing land sites to ride the wave of growth for the rest of the decade.”

Among the top land deals set to be closed in Q4 2017 is the ‘Reserve List’ site in Jiak Kim site formerly occupied by iconic nightclub Zouk. Zoned residential with first-storey commercial use, the site has a maximum gross floor area of 51,231 sq m and can yield 525 houses.

The government is offering the land for a minimum bid price of $ 689.353 million, but Cushman & Wakefield estimates that it could fetch $ 870 million.

Another is the anticipated collective sale of the 288-unit Pearlbank Apartments in Outram for a reserve price of $ 728 million. This translates to a land cost of $ 1,505 psf ppr after factoring in a $ 195 million premium for topping up the lease for the site with a GFA of around 57,000 sq m.

In addition, the 33,358 sq m Reserve List site in Fourth Avenue is expected to yield about 445 homes. The state is selling it for at least $ 448.8 million, but Cushman & Wakefield believes that the winning buyer could get it for $ 505 million.

The public tender for the Jiak Kim and Fourth Avenue sites will close on 5 December, while the Pearlbank Apartments en bloc sale is expected to be transacted by year-end.

Meanwhile, experts from BNP Paribas, Morgan Stanley and UOB Kay Hian forecast that residential prices here could increase by up to 10 percent in 2018.

JLL Singapore’s Research Head Tay Huey Ying is also confident that residential units and Grade A office space in the city-state will remain sought-after by investors next year.


This article was edited by Keshia Faculin.

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Home sales via auction soar to record high

Auction sales of residential properties in Singapore hit a one-year record high of $ 31.9 million in Q3 2017, according to a new report from Knight Frank.

By value, this respectively translates to a 40.3 percent and 166.8 percent surge from the prior quarter and same period a year ago. By number, 15 homes were successfully sold compared to six in Q2 2017. These comprise three landed and 12 non-landed houses, with three landed and seven of the latter accounting for mortgagee sales.

Overall, the number of mortgage listings here rose 26.7 percent quarter-on-quarter and 14.8 percent year-on-year to 209 units during the three-month period.

“The residential sector remained the major contributor of the total number of properties put up for auction (106 units out of 209 units). This represented an increase of 24.7 percent from 85 units in Q2 2017 or a six percent year-on-year increase from 100 units in Q3 2016,” said the property consultancy.

Looking ahead, it expects between 160 and 180 units to be placed under the hammer in Q4 2017, surpassing the figure for the same period last year.

With the rebounding housing market, Knight Frank noted that residential units put up for auction under owner sales could drop this quarter and next year. More owners could also delay the release of their properties in the open auction market amidst the anticipated price hike, in light of rising land costs and record bids for en bloc deals and government land sales.


This article was edited by Keshia Faculin.

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Sales of posh high-rise homes to grow further

Demand for upscale apartments located in high-rise buildings in prime locations here have risen over the past three and a half years, according to Leong Boon Hoe, CEO of List Sotheby’s International Realty (LSIR), Singapore.

Citing URA and LSIR data, he pointed out that sales of non-landed homes costing over $ 5 million have increased from 135 units in 2014 to 161 units and 244 units in 2015 and 2016 respectively. For 2017, 203 units have been purchased during the first seven months, with the overall figure expected to surpass last year’s.

During the period, about 50 percent of such upscale dwellings in Singapore were purchased by foreigners, with those from China accounting for the largest share at around 20 percent, followed by Malaysians and Indonesians.

Moreover, Leong noted that Singapore’s capacity for high-rise luxury homes has yet to reach its full potential. This is because the relocation of Paya Lebar Air Base in 2030 will free up 800ha of land for more skyscrapers, and this area is larger than Ang Mo Kio.

In addition, he revealed that the Wallich Residence in Tanjong Pagar Centre emerged as the world’s 9th most luxurious apartment, with psf price of $ 3,227. It is also Singapore’s tallest building with a height of 290 metres.

“Owning an abode in Singapore’s coveted tall residential buildings are huge draws, but more importantly Singapore’s high-rise luxury apartments are competitively priced when compared to similar apartments in other global cities,” he said.

Notably, LSIR has been appointed to market the posh apartments in Wallich Residence across the globe, with exclusivity in the US and Hong Kong. These units include the 21,108 sq ft super penthouse, which is the largest of its kind here.

Meanwhile, Opus Hong Kong and London’s One Hyde Park secured the top two spots in LSIR’s ranking at $ 14,659 psf and $ 13,545 psf respectively in Singapore dollar terms.

Completing the top five are Monaco’s Tower Odeon ($ 12,170 psf), as well as 432 Park Avenue ($ 9,219 psf) and One57 ($ 8,204), both in New York.


This article was edited by Keshia Faculin.

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