7th February to 13th February 2023
Luxury development Terra Hill opened for preview on 10 February 2023, with a 2-bedroom unit priced from $1.5 million. Meanwhile, property analysts expect the relocation of Anglo-Chinese School (Primary) from Barker Road in Newton to Tengah in 2030 to boost home prices within the new school location.
1. Terra Hill condo opens for preview, prices start at $1.5 million
Source: Terra Hill
Terra Hill, a freehold luxury development in Pasir Panjang, opened for preview on 10 February 2023, with a 2-bedroom unit priced from $1.5 million, reported The Business Times.
Sizes for the 2-bedroom units range from 624 sq ft to 807 sq ft.
2-bedroom apartments, measuring between 904 sq ft and 1,335 sq ft, are offered from $2.3 million, while 4-bedders ranging from 1,302 sq ft to 1,862 sq ft are priced from $3.4 million.
Meanwhile, prices for the development’s 1,894 sq ft 4-bedders, which come with private lifts, start from $5 million.
Located near Pasir Panjang MRT station, right next to the Greater Southern Waterfront, Terra Hills is being jointly developed by Sunway Developments and Hoi Hup Realty as a low-density project, featuring 270 condo units spread across nine five-storey blocks.
2. ACS (Primary) relocation may push Tengah property prices up by 10% to 15%
Property analysts expect the relocation of ACS (Primary) from Barker Road in Newton to Tengah in 2030 to boost home prices within the new school location, reported CNA.
Some even predicted that the prices of homes within 1km of the school in Tengah will fetch 10% to 15% more than the district average price.
However, not everyone is in agreement of when the impact on property prices may be immediately felt, since Tengah is still under development.
Nonetheless, Lee Sze Teck, Senior Director of Research at Huttons, said the relocation may also boost the application rates of flats in Tengah in the upcoming 2023 Feb BTO season.
3. JCube to be redeveloped into 40-storey residential development
JCube mall in Jurong East will cease operations from 7 August 2023 to make way for a new residential development, which will also feature commercial space on the first and second levels.
In a release, CapitaLand Development (CLD) revealed that it has obtained provisional permission from the Urban Redevelopment Authority (URA) to redevelop the JCube site into a 40-storey apartment block. The company expects the development to be launched for sale in 2H 2023.
CLD noted that the new development, which is targeted for completion in 2027, will “complement the Government’s plans to bring new homes – alongside new businesses, recreational facilities and amenities – to the Jurong Lake District (JLD)”.
With this, CLD is providing JCube tenants with necessary support to help with the transition.
4. Braddell Heights bungalow sold for $19 million
A single-storey bungalow in Clifton Vale within the Braddell Heights estate has been sold for $19 million to ABN Holding Pte Ltd.
The purchase price works out to around $1,210 per square foot (PSF) on the land area of about 15,705 sq ft.
The freehold site is zoned for residential use and is within an area designated for 2-storey bungalow landed housing.
The freehold property was put up for sale in December 2022, carrying a guide price of $23 million. The tender closed on 18 January 2023.
Future developments built on the elevated land will potentially come with good views.
5. Lakeside Towers goes en bloc again at $350 million
Lakeside Towers, a 144 unit condominium at Yuan Ching Road on the fringe of the Jurong Lake District (JLD), has once again been put up for en bloc sale, with a reserve price of $350 million – which is higher than its $305 million asking price in 2018, reported The Business Times.
The collective sale tender comes after CLD’s announcement that it will redevelop JCube into a 40-storey residential property and the sale of neighbouring condos at a premium.
Comprising two 16-storey blocks, Lakeside Towers occupy a 14,236.1 sqm site with a gross plot ratio (GPR) of 2.1. However, JLL noted that its as-built gross floor area (GFA) is equivalent to a GPR of 2.35953.
With this, its $350 million reserve price works out to a land rate of around $1,244 PSF ppr, after considering an estimated lease top-up premium with no land betterment charge.
The land rate will go down to about $1,196 PSF ppr, after factoring in the 10% bonus GFA and including a land betterment charge and a lease top-up premium.
The tender for Lakeside Towers closes on 12 April 2023.
6. Singaporeans need not worry of affordable homes, says PM Lee
Prime Minister Lee Hsien Loong has assured Singaporeans of the Government’s commitment to provide affordable homes, reported Singapore Business Review.
“Rest assured that Singaporeans, now or in generations to come, will not have to worry about having an affordable home to call their own,” wrote Lee on Facebook.
His assurance comes after the Parliament debated two motions on affordable housing.
In his post, Lee noted that Singapore’s public housing system works, with over eight in 10 Singaporeans owning the HDB flats they live in.
More families are also becoming flat owners as more than 20,000 new flats are completed each year, he said.
He added that the Government is also working hard to cool the resale market, increase the supply of flats and keep HDB flats accessible and affordable for Singaporeans, reported The Straits Times.
“We are working hard at the problem, and are confident we will solve it,” said Lee.
7. ‘Generosity’ of Voluntary En Bloc Redevelopment Scheme (VERS) helps address lease expiry concerns
In addressing concerns raised by opposition members regarding the expiry of HDB flat leases, Senior Minister of State for National Development Sim Ann pointed to the “generosity” of the VERS, reported CNA.
In her response, she thanked Assoc Prof Jamus Lim (WP – Sengkang) for making the point for her that HDB flats are very difficult to sell once they reach the tail end of their lease, at around 20 or 30 years left.
“That is the generosity of the VERS scheme – that the Government comes in as the purchaser of last resort when no one else would actually purchase and give the flat owner the remaining value of the lease,” said Sim.
Under VERS, the Government takes back HDB flats once they reach around 70 years of age and compensate the owners and help them secure another flat to live in.
8. More developers becoming conservative in pricing residential projects
A quarterly survey showed that developers are becoming more conservative in pricing residential projects, with 71% of developers polled in Q4 2022 expecting new launch prices to hold firm over the next six months.
This is a significant increase by 38 percentage pojnts from the previous quarter, reported The Business Times. Meanwhile, 29% of respondents anticipates new launch prices to moderately increase.
Conducted by the National University of Singapore’s (NUS) Institute of Real Estate and Urban Studies (IREUS), the survey found that 47% of developers expect a moderate or substantial increase in the number of units to be launched over the next six months.
Developers unanimously cited rising inflation or interest rates as the top potential risk factor that could adversely affect sentiment in the next six months.
In Q4 2022, the composite Real Estate Sentiment Index – which comprises Current Sentiment Index and Future Sentiment Index – held firm at 5.1%.
The Current Sentiment Index, which tracks sentiment in the last six months, fell to 5.3% in Q4 2022 from 5.4% in Q3 2022. Meanwhile, the Future Sentiment Index, which measures sentiment for the next six months, climbed to 4.9% in Q4 2022 from 4.8% previously.
9. More Singapore properties may be auctioned in 2023
Knight Frank expects more homes to go under the hammer this year, given the rise in bankruptcy petitions, reported CNA.
This comes amid rising interest rates, reduction of pandemic support measures and higher costs of living, said the real estate consultancy.
Based on Ministry of Law data, 3,648 people filed for bankruptcy in 2022, up 15% from 2021’s 3,160 applications.
With this, Knight Frank expects the 420 auction listings, including repeat listings, in 2H2023 to grow by 40% to 50% to around 600 this year.
Aside from homes, more commercial and industrial properties are also expected to be auctioned as the number of small- and medium-size enterprises (SMEs) exiting their business increase amid a bleak economic outlook.
Edmund Tie, on the other hand, also foresees an increase in auction listings but only towards the 2H2023, noting that banks take several months to repossess the properties.
10. Parliament rejects PSP’s motion for “reset” of public housing policy
Parliament has rejected a motion filed by Progress Singapore Party (PSP) members, which calls for a “reset” of public housing policy – with 82 Members of Parliament (MPs) voting against it, while 11 were in favour, reported CNA.
Meanwhile, Desmond Lee, Minister for National Development, motioned to affirm the Government’s commitment to accessible and affordable public housing was passed. 82 MPs voted in its favour, while 11 voted it down.
Parliament also rejected an amendment filed by Opposition Leader Pritam Singh calling for the intensification of the Government’s efforts on “keeping public housing affordable and accessible while protecting the interests of current and future generations of Singaporeans”.
In his closing speech, Lee described PSP’s claim that the system is “fundamentally broken” as unacceptable.
“By no means are we saying through this motion that all is well and good, and that nothing needs fixing, it is a perfect system,” said the minister.
“Our system is far from perfect but it has achieved through the generations the outcomes that we have laid on the table today,” he added.
With this, Lee revealed plans aimed at improving affordability and accessibility of HDB flats, which include the launch of more flats with shorter waiting times from 2024, said CNA.
He added that his ministry is also looking at measures to lower the high rejection rate for BTO applications, ensuring that “those with genuine and urgent housing needs” are prioritised.
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Marcus Lee, Content Executive at PropertyGuru, edited this story. To contact him about this story, email: marcuslee@propertyguru.com.sg.
