1st February to 7th February
Two freehold residential redevelopment sites in Gilstead Road changed hands, with Peak Vista, which Kheng Leong Company wholly owns, buying two bungalows for $70 million. Meanwhile, Singapore’s youth want their future living environment to be sustainable with more trees, nature parks and urban-centred greenery.
1) Kheng Leong acquires Gilstead Road sites for $70mil
Gilstead Road saw two freehold residential redevelopment sites change hands, with Peak Vista – which is wholly owned by Kheng Leong Company – buying two bungalows with a combined area of 43,457 sq m for $70 million, reported The Business Times (BT).
Located between Newton and Novena MRT stations, the District 11 site is zoned for residential use under the 2019 Master Plan with a plot ratio of 1.4. A back-of-the-envelope calculation by BT indicates that the price works out to around $1,643 per sq ft per plot ratio (psf ppr) inclusive of development charges.
An entity owned by Fission Group Founder Melvin Poh and his brother Jason also purchased an old house in Gilstead Road for $17 million or $1,618 psf based on its 10,504 sq ft land area. Melvin Poh shared that the site will be redeveloped into two bungalows, each with six bedrooms and a swimming pool.
The demand for and prices of landed properties in Singapore saw strong growth in 2021. Year-on-year, landed homes prices climbed 13.3%. Despite the introduction of the Dec 2021 property cooling measures, prices climbed 3.9% quarter-on-quarter, up from the 2.6% growth recorded in Q3 2021. Demand was fuelled by wealth from new-economy sectors like tech.
Related article: Who Are Buying Good Class Bungalows (GCBs) in Singapore? (2021)
2) Young Singaporeans want greener, more inclusive living environment
Bishan-Ang Mo Kio Park.
Singapore’s youth want their future living environment to be sustainable with more trees, nature parks and urban-centred greenery.
They also want the city-state to be adaptable and resilient by staying up-to-date with technological trends and inclusive by having more facilities that cater to the needs of the differently-abled.
These findings were part of the Urban Redevelopment Authority’s (URA) long-term plan review, in which they engaged over 1,200 youths in partnership with the National Youth Council (NYC).
During the final youth conversation of the review, the participants discussed “how the creation of a sustainable and high-quality home that fulfils the needs of all Singaporeans, including youth, would require careful deliberation of how land is used and the trade-offs that would take place,” said URA.
In line with the Singapore Green Plan 2030, we can expect more cycling paths and ‘chio’ green gardens and eco-friendly features built into HDB projects. To complement this vision, there is also a push for more MRT stations and lines being built, so that 8 in 10 Singaporeans will live a 10-minute walk away from the nearest station.
Related article: HDB Flats near MRT Stations in Singapore: Exactly How Much More do they Cost? (2021)
3) Singapore real estate market to continue recovery in 2022
CBRE expects Singapore’s real estate market to continue its recovery in 2022, albeit growth in some sectors may ease, reported Singapore Business Review.
The office sector is among the sectors forecasted to continue expansion, led by the Grade A market within the Core Central Business District (CBD), where rents are anticipated to increase 6.9% to $11.55 per sq ft (psf) per month by end-2022, said CBRE.
CBRE also expects the retail sector to register a 1.4% broad-based growth in islandwide prime floor rents in 2H 2022. The investment sector will also see investment volumes grow 10% in 2022.
Meanwhile, the upward momentum of the residential sector is expected to taper in 2022 as buyers “re-evaluate their potential buying decisions” following the government’s introduction of its latest cooling measures.
While the logistics sector will continue to see an upward cycle this year, the pace of its rental growth is expected to ease to 5% in 2022 from 6.5% last year.
4) Auction listings up in 2021 amid spike in owner sales
Auction listings in Singapore jumped 35.4% year-on-year to 670 in 2021 due to a hike in owner sale listings which almost doubled year-on-year to 352 from 180 in 2020, revealed Knight Frank.
Notably, owner sale listings improved across all sectors, with strata retail units growing by almost sixfold to 101 in 2021 from only 17 in 2020.
For Q4 2021, auction listings dropped 23.3% quarter-on-quarter to 115. This comes as both owner and mortgagee sales listings declined during the quarter, falling 28% to 72 listings and 9.5% to 38 listings, respectively.
During auctions, overall success rates improved to 4.8% in 2021, translating to 32 sales, up from 3.6% in 2020.
With this, gross sales value almost tripled to $85.9 million as larger ticket properties were sold under the hammer last year.
5) No certainty Orchard Towers’ $1.6bil en bloc sale will proceed
Hiap Hoe, which owns 38 offices and 21 shops at Orchard Towers, has advised its shareholders that there is no certainty that the planned collective sale of the mixed-use development will proceed or be completed.
In an SGX filing, the property developer noted that there is no certainty that the collective sale committee will secure the requisite 80% consent of unit owners.
Notably, the collective sale committee has recommended setting the Orchard Towers’ reserve price at $1.6 billion.
“Accordingly, shareholders are advised to exercise caution in dealings with the shares of the company, to read this announcement and any further update announcement(s) released by the company carefully,” it said.
6) Marina Bay Sands expansion to complete in 2026
Marina Bay Sands is set to put in about $4.4billion to expand the integrated resort.
Las Vegas Sands expects the US$3.3 billion (S$4.4 billion) expansion of Marina Bay Sands to be completed in 2026, or a year after its original 2025 deadline, reported Channel News Asia.
Rob Goldstein, CEO and Chairman of Las Vegas Sands, revealed that Marina Bay Sands’ hotel properties are also undergoing a US$1 billion (S$1.34 billion) renovation.
He added that the company’s confidence in long-term opportunities within the city-state remains “deep”, citing the vaccinated travel lanes’ (VTL) demand as a positive indication of recovery.
“It’s a real predictor of what’s going to happen when (Singapore) opens back up. Hopefully, we see it in the first half of the year,” he said.
7) Suntec City Office Towers bag Green Mark Platinum Award
Suntec City Office Towers have been conferred the Green Mark Platinum award by the Building and Construction Authority (BCA), revealed Suntec REIT in an SGX filing.
The award reflects the various initiatives rolled out at Suntec City Office Towers, including efficiencies achieved in waste and energy management, the use of green materials and the implementation of SMART facility management.
With the award, the whole Suntec City is now “fully Green Mark compliant with the retail and convention components having achieved Green Mark Gold earlier,” said Chong Kee Hiong, CEO of the REIT’s manager.
“This recognition is testament to Suntec REIT’s commitment to lower our carbon footprint, in-line with the objectives of the Singapore Green Plan 2030,” he added.
Related article: PropertyGuru Green Score: 5 Most Eco-Friendly Districts in Singapore
8) Retail properties put up for auction soar in 2021
Those who live in Midtown Residences can access a bevy of shopping and dining options at their doorstep.
The number of retail units placed under the hammer soared in 2021 as growth in the retail sector was stunted by recurring COVID-19 restrictions.
Knight Frank revealed that the retail sector saw mortgagee listings increase from 52 in 2020 to 84 in 2021, while owner sale listings surged from just 17 in 2020 to 101 in 2021.
A ground-floor shop unit in The Midtown, for instance, went for $1.07 million or around $3,654 psf, which was 2.8% below the unit’s opening price.
The industrial sector saw mortgagee listings drop from 97 units in 2020 to 65 last year, as expanding small and medium-sized enterprises bolstered demand for owner-occupied industrial space.
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Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email: cheryl@propertyguru.com.sg.
