30th January to 6th February 2023
An old house along Wilkinson Road in District 15 has been sold for $55.5 million, which works out to $2,161 per sq ft (PSF) based on its 25,680 sq ft land area. Meanwhile, China’s reopening has sparked demand for Singapore property, with real estate agencies witnessing more enquiries from mainland Chinese buyers.
1. Wilkinson Road bungalow sold for $55.5 million
Source: Google Maps
An old house along Wilkinson Road in District 15 has been sold for $55.5 million, which works out to $2,161 PSF based on its 25,680 sq ft land area.
Agents believe it is the highest land rate fetched within District 15 for a landed housing site of such a large size, reported The Business Times.
Boutique property agency Realstar is rumoured to have co-brokered the deal. However, its founder William Wong declined to comment on the agency’s role, saying only that the pricing was “on par with that of bungalow sites in prime Districts 10 and 11 (excluding Good Class Bungalow Areas)”.
The property, which is within an area designated for two-storey bungalows, could potentially be subdivided into three smaller plots.
However, observers suggest the buyer – Pang Sze Khai, Chairman of Octava Foundation and Executive Director of Octava Pte Ltd – may redevelop the site for his family’s own occupation.
The sellers, on the other hand, are believed to be members of the Koh family involved in the civil engineering and construction-related businesses.
2. Singapore property market braces for increased demand from Chinese buyers
China’s reopening has sparked demand for Singapore property, with real estate agencies witnessing more enquiries from mainland Chinese buyers.
OrangeTee & Tie, for instance, noted a 10% to 15% hike in inquiries in January.
Bloomberg reported that the border reopening also led to a spike in queries about migration.
In fact, investment migration consultant Henley & Partners registered a 600% jump in migration inquiries from Chinese nationals after the reopening announcement.
Despite the additional 30% tax foreign buyers have to pay on property, ERA Research and Consultancy sees more Chinese moving to Singapore to work, live and invest, primarily due to the “allure of Singapore being a safe haven, as well as their preference for real estate as a store of wealth”.
However, some Chinese buyers are held back by the city-state’s relatively high prices.
“For one house in Singapore, I can buy two houses elsewhere and still have leftover cash,” noted Jeremy Zhang.
“So of course it is not a decision I will rush into without thinking through properly,” said the 27 year-old electronic business owner from Shenzen.
Related article: Buyer’s Stamp Duty Guide for Singapore Property Buyers: What It Is and How Much to Pay (Up to 4%)
3. Rent for 4-room flat in Tiong Bahru hits $6,200 monthly
Source: Google Maps
Rental prices for HDB flats have been rapidly increasing, with a 4-room flat in Seng Poh Road, Tiong Bahru being rented out for $6,200 per month, reported Mothership.
This surpassed the $4,600 monthly rent registered for a 4-room flat at 38A Bendemeer Road in October 2022.
The Seng Poh Road unit is 73 years old and spans about 1,200 sq ft, which is sizeable by today’s standards.
HDB data showed that the number of 4-room flats that are being rented for more than $4,000 has doubled over the last two months.
Property experts interviewed by Shin Min Daily believe rents will likely remain high due to four major factors – namely fewer HDB units reaching the Minimum Occupation Period (MOP), high demand for rental, acceptance of higher rental prices and higher bank interest rates.
Nonetheless, the supply of Build-to-Order (BTO) flats and private rental units are expected to increase in 2023, which could help slow this trend of rising rents.
Related article: HDB MOP (Minimum Occupation Period): A Guide for Flat Owners in Singapore (2023)
4. Chestnut Drive GCB on sale for $38.88 million
A Good Class Bungalow (GCB) site at Chestnut Drive has been put up for sale via private treaty for $38.88 million, revealed marketing agent PropNex Realty.
Notably, a two-storey detached house with an attic and basement is being constructed on the 999-year leasehold site.
With the Temporary Occupation Permit (TOP) set to be obtained in 2024, the new property will feature six en suite bedrooms, a theatre hall, swimming pool, dry and wet kitchen, gym or entertainment area, and a lift.
PropNex pointed that the $38.88 guide price translates to around $2,677 PSF based on a 14,526 sq ft land area or around $1,996 PSF based on the upcoming bungalow’s built-up area of about 19,481 sq ft.
Situated within the Chestnut Avenue GCB area, the site is around 600m from the Cashew MRT station and is near various amenities including The Rail Mall, HillV2 mall, Hillion Mall, Junction 10 and Bukit Panjang Plaza.
Related: Temporary Occupation Permit (TOP): a Complete Guide for HDBs and Condos (propertyguru.com.sg)
5. Orchard Bel Air relaunched for en bloc sale for $587.5 million
Orchard Bel Air, a 99-year leasehold condominium along Orchard Boulevard, has been relaunched for collective sale with a guide price of $587.5 million, revealed sole marketing agent Knight Frank.
Located next to the newly-opened Orchard Boulevard MRT station, the development occupies an 8,651.70 sq m or 93,126 sq ft site that comes with a gross plot ratio of 2.8 under the 2019 Master Plan.
Knight Frank noted that the site has the potential “to be redeveloped up to its existing verified gross floor area of 25,668 sq m or approximately 276,298 sq ft at a gross plot ratio of 2.96”.
It pointed that the guide price works out to a land rate of about $2,620 PSF per plot ratio (PSF ppr) after considering an upgrading premium of about $136 million for the lease top-up. This could go lower to about $2,551 PSF ppr after factoring the 7% bonus gross floor area for balconies.
The tender for Orchard Bel Air closes on 1 March 2023.
6. Construction works for Elias MRT station to start in Q2 2023
The Land Transport Authority (LTA) has announced that construction works for Elias station and tunnels along the Cross Island Line-Punggol Extension (CPe) are expected to commence in the second quarter of 2023, with service set to start in 2032.
The civil contract for the design and construction of Elias station and tunnels was awarded to a joint venture between CES_SDC and Chip Eng Seng Contractors (1988).
“The contract, valued at around $562 million, completes the appointment of contractors for all four CPe stations,” said LTA.
The 7.3km-long CPe will feature four stations – namely, Elias, Riviera, Punggol and Pasir Ris – providing “better rail connectivity and greater accessibility for those living in eastern areas such as Pasir Ris and Tampines North as well as north-eastern areas such as Punggol and Sengkang”.
LTA expects the CPe to benefit over 40,000 households.
7. The Tanamera owners gunning for collective sale
Source: Knight Frank
Owners of The Tanamera condominium have joined the en bloc hopefuls, having started the collective sale process in the fourth quarter of 2022.
In fact, the collective sale committee will begin collecting signatures from the requisite 80% of unit owners soon, reported The Business Times.
If a collective sale tender is launched for the 99-year leasehold development, marketing agent Knight Frank expects the reserve price to exceed $500 million, pending finalisation.
Situated at Tanah Merah Kechil Road, the 288-unit condominium occupies a 236,778 sq ft site with a gross plot ratio of 2.1 under the 2019 Master Plan.
The Tanamera’s collective sale committee chairman Desmond Teo believe it is an ideal time for them to sell now, “especially with the success seen at the recent launch of Sceneca Residence”.
“With our decaying tenure, it makes sense for owners to sell sooner rather than later,” said Teo. “Who knows when the chance will come again if we miss it this time round?”
8. Government files motion reaffirming commitment to keep public housing affordable
National Development Minister Desmond Lee has submitted a motion in Parliament reaffirming the commitment of the Government to “keeping public housing affordable and accessible while protecting the interests of both current and future generations of Singaporean”, reported TODAY.
The motion comes in light of growing concerns over the red-hot property market.
Senior Minister for State for National Development Sim Ann clarified that this motion is different from the one submitted by Progress Singapore Party (PSP) Non-Constituency MPs Leong Mun Wai and Hazel Poa.
“Implicit in the PSP’s motion is the claim that the Government has not done enough to deliver affordable and accessible HDB flats, strengthen the owner-occupation intent of public housing, protect retirement adequacy or keep public housing inclusive. We disagree with this claim,” she said.
Separately, resale condo transactions continued to decline for the third consecutive month in December 2022, with 661 units sold, reported The Business Times.
Property data showed that this was a 14% drop from the previous month and a 49% decline over the same period in 2021.
Analysts attributed the drop in sales to cooling measures and the mismatch between buyers and sellers’ price expectations.
9. Investment sales drop 1% year-on-year to $24.7bil in 2022
Real estate investment sales in Singapore dipped 1% to $24.7 billion in 2022 from $24.9 billion in 2021, revealed Savills Research.
The residential sector emerged as the largest contributor, accounting for 49.9% of total investment sales value, despite a sharp 64.4% quarter-on-quarter decline to $1.40 billion in the fourth quarter of 2022.
The office sector, on the other hand, saw investment sales increase 45.8% year-on-year to $7.52 billion in 2022. On a quarterly basis, the commercial sector rose 28.4% to $1.02 billion in Q4 2022, following two consecutive quarterly drops.
Overall, total investment sales volume fell to $2.81 billion in Q4 2022 from $4.40 billion in the previous quarter – the lowest since Q2 2020 when investment sales hit $2.14 billion.
“Despite unfavourable economic and interest rate climate, given the openness of the economy and a positive perception of Singapore, total investment sales value should still be afloat in 2023,” said Savills Research Executive Head Alan Cheong.
Total investment sales value for 2023 is forecasted to range between $24 billion and $25 billion.
10. Guoco Midtown office tower achieves 80% pre-commitment take-up rate
Source: GuocoLand
GuocoLand’s Guoco Midtown office tower saw 80% of its 709,000 sq ft space pre-committed, inclusive of deals in advanced stages of negotiation.
Singapore Business Review reported that interested global multinational firms drove the strong take-up rate in the 30-storey Grade A office tower.
The strong take-up has enabled Guoco Midtown to obtain a TOP.
“At Guoco Midtown, we will have tenants from multiple sectors, just as we currently do over at Guoco Tower,” said Valerie Wong, Managing Director of Asset Management at GuocoLand.
Meanwhile, GuocoLand CEO Cheng Hsing Yao noted that Guoco Midtown’s phased completion will grow the company’s portfolio of investment properties as well as boost its recurring income.
“Like how Guoco Tower transformed and uplifted Tanjong Pagar, Guoco Midtown will in time also do the same for the Beach Road-Bugis area. This will enhance GuocoLand’s track record as an expert in urban rejuvenation,” he said.
11. Freehold shophouse at Kitchener Road on sale for $12 million
A three-storey freehold shophouse along Kitchener Road has been launched for sale via expression of interest (EOI) with a guide price of $12 million, reported The Business Times.
Situated across City Square Mall, the shophouse occupies a 1,440.2 sq ft site that is zoned for commercial use under the 2019 Master Plan with a gross plot ratio of 3.0. The property is currently leased to a restaurant and office.
Marketing agents say buyers can potentially increase the property’s floor area to around 4,321 sq ft, with the rear extension built up to six storeys.
Experts say that Kitchener Road presents an opportunity for investment and owner-occupiers seeking a well-located freehold F&B shophouse.
The EOI exercise for the shophouse closes on 11 April 2023.
