1st March to 7th March 2022
The development charge (DC) rates for residential, commercial, and industrial use has been raised by the Ministry of National Development for the six months starting 1 March to 31 August. Meanwhile, PropertyGuru’s revenue for FY2021 increased 22.7% to $100.7 million.
1) Development charge rates up for residential, commercial, industrial use
The Ministry of National Development has raised the development charge (DC) rates for residential, commercial, and industrial use for the six months starting 1 March to 31 August.
The average DC rates for landed residential increased by 4.8%, while rates for non-landed residential use climbed by 0.3% on average.
Huttons said the stable DC rates for non-landed residential bodes well for the en-bloc market. It noted that the flattish rates meant costs to intensify land use remain unchanged and developers “may be more willing to look at the en-bloc market to replenish their landbank”.
Related article: Government Land Sales (GLS) Programme Guide (Updated With GLS Sites for 1H2022)
The average DC rates for commercial and industrial use also increased by 0.7% and 2.2%, respectively. DC rates for hotel use, on the other hand, decreased by an average of 0.7%.
Catherine He, Colliers’ Head of Research for Singapore, said the DC rate revisions were largely within expectations and reflected the rebound in transactions in the past six months.
The hike in DC rates was aimed towards curbing inflating commercial and residential property prices in Singapore. Meanwhile, due to fewer tourists arrivals and reduced occupancy rates, DC rates for hotel/hospital use were cut by 0.7%.
Browse all commercial properties for rent or sale on CommercialGuru.
2) PropertyGuru revenue up 22.7% in FY2021
Singapore-based real estate firm PropertyGuru Group saw its revenue for FY2021 increase 22.7% to $100.7 million from $82.1 million in the previous year, reported The Business Times.
The group noted that the figure exceeded its $97.5 million revenue forecast for FY2021 by 3.3%, adding that the hike reflects the growing confidence in the property market.
Notably, the real estate firm is preparing to go public via a merger with Bridgetown 2 Holdings, which is a special purpose acquisition company (SPAC) that is backed by Hong Kong tycoon Richard Li and billionaire Peter Thiel.
The deal includes a plan to set up a combined entity with an enterprise value of about US$1.35 billion (S$1.84 billion) and an equity value of about US$1.78 billion (S$2.43 billion).
Bridgetown 2 is set to hold an extraordinary general meeting on 15 March 2022 for its shareholders to approve the merger.
Want to keep up with the latest PropertyGuru Group news? Head over to our newsroom for more updates.
Related articles:
- PropertyGuru Delivers over S$100m Revenue in 2021, Beats Full Year Forecast
- Bridgetown 2 Announces Effectiveness of Registration Statement and EGM Date for Proposed Business Combination with PropertyGuru
3) House of Tan Yeok Nee sold to entity linked to family of Bachtiar Karim
Source: Perennial Holdings
National monument House of Tan Yeok Nee has been sold for an undisclosed amount to an entity connected to the family of Bachtiar Karim.
The Business Times reported that the property was sold below its $92 million asking price, but above $85 million.
Exclusive marketing agent Savills Singapore revealed that the response to the freehold national monument’s expression of interest has been overwhelming, with enquiries received from new to market buyers from Indonesia, China, Hong Kong, South Korea and India.
“The result is testament to the strong demand for heritage commercial assets and we are delighted to broker this transaction which marks one of the largest commercial heritage transactions in Singapore,” it said.
The only survivor of the ‘Four Mansions’ constructed by Teochew tycoons in the late 19th century, the House of Tan Yeok Nee is one of only 73 buildings within the city-state that was gazetted as national monuments and among only nine zoned for commercial use.
This concludes the sale of the property which is currently occupied by Amity Global Institute and has been listed by its owners since 2018. Since such sites are rare, tenants can benefit from the exclusivity and the advantages of being housed within a national monument and using its heritage to help its business.
4) Baode Building sold en bloc for $27mil
Source: Google Maps
Baode Building, an eight-storey residential building at 8 Lorong 35 Geylang, has been sold via private treaty for $27 million, following a relaunch of tender on 14 December 2021, announced Colliers.
With a site area of about 11,102 sq ft, the 14-unit development was acquired by Amitabha Buddhist Society (Singapore) as part of its expansion plans. Currently, the buyer occupies 2 Lorong 35 Geylang as well as 693 Geylang Road.
Colliers noted that the sale price matched the owners’ asking price, which worked out to a land rate of $1,007 per sq ft per plot ratio (psf ppr). It added that the sale is subject to the Strata Titles Board’s approval.
Upon the successful sale of the development, each unit owner will receive estimated gross sales proceeds of between $1.92 million and $1.94 million, depending on their unit’s size.
This concludes the sale of the property which was listed by its owners since 2021. A 10-minute stroll will take you to Paya Lebar MRT station, and you’ll find choice primary schools such as Geylang Methodist School and Kong Hwa School within 1km of the site. Tanjong Katong Primary School and Haig Girl’s School are also within a 2km radius.
5) 24 flats along Haig Road up for en bloc sale for $48mil
Source: One Map
A block of 24 flats at Haig Road has been put up for collective sale with an indicative price of $48 million or $1,252 per sq ft per plot ratio (psf ppr), revealed exclusive marketing agent Colliers.
The four-storey development occupies a 27,389 sq ft site that is zoned for residential use under the 2019 Master Plan with a gross plot ratio of 1.4.
Colliers noted that the freehold site can be redeveloped to offer 35 units averaging 1,100 sq ft each, subject to relevant authorities’ approval. It also revealed that no development charge is payable for the site.
The tender for the Haig Road flats closes on 7 April.
The site is well-situated and is within a 1km radius from schools such as the Canadian International School (Tanjong Katong Campus), Haig Girl’s School, Tanjong Katong Girls School, Tanjong Katong Primary School and Tanjong Katong Secondary School. The future Marine Parade MRT station is the closest MRT station to the development and will connect future residents to the Thomson-East Coast Line.
6) Singapore prime home prices increased 3.5% in 2021
Singapore saw prime home prices increase 3.5% in 2021, lower than the average growth of 8.2%, reported Singapore Business Review citing Knight Frank.
It is also well behind the overall sizeable growth registered for all Singapore private homes last year at 10.6%. This places the city-state in the 70th spot in Knight Frank’s Prime International Residential Index 100 (PIRI 100).
Knight Frank said prime home prices in Singapore did not increase as fast as other cities due to the ”decade’s worth of watchful measures” by the government. The prolonged and recurring travel restrictions also prevented foreigners from acquiring homes in Singapore. Moreover, there was a lack of new launches in Singapore’s luxury home segment for much of 2021.
For this year, Knight Frank expects prime home prices to rebound by 2% “as buyers adjust to the newly imposed cooling measures”.
As a result of the December 2021 property cooling measures, the Loan-to-Value (LTV) limit has been reduced for HDB-granted loans, the Total Debt Servicing Ratio (TDSR) lowered for private properties, and the Additional Buyer’s Stamp Duty (ABSD) raised for Singapore citizens, PRs, and foreign buyers. These measures are meant to deter individuals from speculating property in Singapore.
7) Analysts expect transaction volume at Sentosa Cove to moderate
Sentosa Cove may see transaction volumes for luxury homes moderate this year, following the government’s latest property cooling measures, which include higher Additional Buyer’s Stamp Duty (ABSD) rates, reported The Business Times.
Based on a report from ERA, transaction volumes for non-landed homes at Sentosa Cove rose 87% year-on-year to 43 units in 2020, before nearly tripling to 128 units last year. About 30 landed homes at Sentosa Cove were also sold in 2021.
But with the latest property curbs and economic malaise brought about by the Russia-Ukraine conflict, sales transactions at Sentosa Cove for this year may not be as high as that seen in 2021, said ERA’s Head of Research and Consultancy Nicholas Mak.
List Sotheby’s International Realty (LSIR) Research also expects the housing sales momentum at Sentosa Cove to ease this year, especially in the first half of 2022, as investor demand is impacted by the higher upfront costs as well as more stringent financing conditions from the new cooling measures.
2021 was a good year for Sentosa properties. Demand for Sentosa properties was driven by the preference of having larger, comfortable homes away from the city centre, the attractive pricing of Sentosa non-landed private properties as compared to similar property types in District 4 and the Rest of Central Region (RCR), and spillover effect from the luxury property market.
Want to read the full insights? Read the article: 4 Reasons Why Sentosa Cove is Making A Comeback in 2021
8) Thomson Grand’s developer, contractors brought to court over alleged defects
Thomson Grand’s Management Corporation Strata Title (MCST) has filed a case against the condominium’s developer, Luxury Green, as well as two contractors over alleged defects at the condominium’s common property, reported The Business Times.
The two contractors are Jinyue Aluminium Engineering and Paul Y-Lian Beng joint venture (JV). Luxury Green is a unit connected to Hong Kong developer CK Asset Holdings.
In its Statement of Claim, which was filed in October 2021, the MCST claimed that “numerous defects have become manifestly apparent” at the development.
The alleged defects – which ranged from water seepage to debonding of tiles – were seen at common areas such as the carpark and driveways, lap pool, staircases, lift lobbies, the roof of certain blocks and certain homes.
Located at Sin Ming Walk, the 99-year leasehold development comprises 361 units across nine 20-storey housing blocks and 22 two-storey strata terrace houses.
Developers are generally liable for up to 15 years following the completion of a project. However, there is no guarantee the developer will reimburse the cost or assume responsibility for any defects.
9) Developers need not fear redeveloping large en bloc sites
Developers are expected to be very cautious in acquiring en bloc residential sites amid the lower demand for homes due to the recent cooling measures which include higher ABSD rates.
However, the recent property curbs “need not kill the prospect of developers snaring big sites”, reported The Business Times (BT).
Developers looking at acquiring large en-bloc sites should be encouraged by the healthy sales at large new projects such as Normanton Park and Treasure at Tampines, it said.
Related article: Top 10 Best-selling Condos in Q4 2021: Why Are They So Popular?
Urban Redevelopment Authority data on private homes sales for January showed that Normanton Park sold 85% of its 1,862 units, while Treasure at Tampines moved over 99% of its 2,203 units.
“Perhaps developers need not fear redeveloping large existing developments such as Mandarin Gardens in the East Coast or Braddell View into new projects that can have over 2,000 homes each,” said BT.
It pointed out that Mandarin Gardens’ large frontage to the sea is a major selling point, while Cashew Heights’ 999-year land lease tenure can be appealing.
According to the PropertyGuru Singapore Property Market Report Q1 2022, a cool down in the en bloc property market can be expected in the coming year, after we saw the en bloc market pick up steam in the second half of 2021. While it is predicted that developers are likely to favour small to medium sites, perhaps consortiums/collaborations may form to take on larger property projects.
10) Two ground floor retail units at EastGate on sale for $23.8mil
EastGate foyer. Source: Savills
Two ground floor adjoining commercial units at EastGate have been put up for sale via expression of interest (EOI) with a guide price of $23.8 million, revealed exclusive marketing agent Savills Singapore.
Enjoying dual frontages along East Coast Road and Brooke Road, the freehold retail units have a total strata area of 6,358 sq ft and represent 11% of the total share values in EastGate. Based on the strata area, the guide price works out to about $3,685 per sq ft (psf).
The property, which comes with permanent “restaurant” approval, is currently fully leased to supermarket and medical/healthcare tenants.
The EOI exercise for the ground floor units closes on 28 March.
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Benjamin Su, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this story, email: benjaminsu@propertyguru.com.sg
