29 August to 4 September 2023
SLA has released the revised Land Betterment Charge (LBC) for the next six months starting 1 September 2023, with the rates cut for non-landed residential use and increased for commercial and hotel use. Meanwhile, retail rents at Orchard Road are forecasted to increase by up to 6% year-on-year (YoY) in 2023.
1. LBC for non-landed residential use reduced
The SLA has released the revised LBC for the next six months starting 1 September 2023, with the rates cut for non-landed residential use and increased for commercial and hotel uses.
The LBC rates for non-landed residential use reduced by an average of 3.2%, with 111 out of 118 sectors witnessing declines of between 3% and 11%.
Edmund Tie’s Head of Research and Consulting Lam Chern Woon is cautiously optimistic that the reduction in LBC rates could “provide a shot in the arm for the collective sale market, which has seen only one transaction (Kew Lodge) since the April cooling measures”.
On the other hand, the LBC rates for commercial use increased by an average of 0.4%, with 12 out of 118 sectors posting increases of 3% to 4%.
Use group C (Hotel/Hospital) also witnessed an average increase of 3% as LBC rates were raised at 116 out of 118 sectors.
The LBC rates for the other use groups remain unchanged.
Related article: Guide to Buying Commercial Property in Singapore (2023)
2. Singaporeans seek properties promoting “live, work, and play”
With the rise of hybrid working, homebuyers in Singapore are no longer looking for just a place to rest, they also seek residences that could serve as “hubs of productivity and recreation”, reported Singapore Business Review.
“Buyers are increasingly drawn to properties that embody the ‘live, work, play’ ethos, where spaces seamlessly transform from workstations by day to leisure zones by night,” said Wu Chin Whee, Savills’ Senior Manager for Livethere Residential.
Developments with green spaces have also become well sought-after among Singaporean homebuyers, amid their increased awareness of overall well-being as well as the tangible benefits of having green spaces.
Homebuyers also prefer developments that are near urban amenities, such as MRT stations, shopping malls, F&B, bus interchanges, and parks. Proximity to good schools is another significant consideration for homebuyers, especially for young families.
Singaporean homebuyers also value privacy, preferring developments with spacious layouts such as LIV@MB, whose two residential blocks are quite far apart from each other.
3. Orchard retail rents to rise 6% YoY in 2023
Retail rents at Orchard Road are forecasted to increase by up to 6% YoY in 2023, revealed Savills.
The suburban area, on the other hand, is expected to see rental growth remain stable at 1% to 2% YoY.
Based on Savills’ basket of prime malls, average rents have been on an upward trend in Q2 2023, with Orchard Road rents rising 1.4% quarter-on-quarter (QoQ) to $22.10 per sq ft (PSF). Average rent in the suburban area also increased by 0.7% QoQ to $14.50 PSF during the quarter.
Savills expects demand for retail space, particularly prime units with healthy footfall and good accessibility, to remain strong amid limited new supply in the future.
It also anticipates retail spaces located at tourist spots and major shopping belts, like Marina Bay Sands and Orchard Road, to benefit from the rebound in tourism.
However, Alan Cheong, Savills Research & Consultancy’s Executive Director, noted that recovery may face challenges, and overall growth may ease in 2024 due to the weak global economy.
“Challenges such as rising operating costs and labour crunch will also put further pressure on retailers, hence reigning in their ability to accede to higher asking rents,” he added.
4. Duxton Road shophouse on sale for $9.8 million
A two-storey conservation shophouse located at 45 Duxton Road has been put up for sale via Expression of Interest (EOI) carrying a guide price of $9.8 million, revealed Huttons Asia.
Nestled on a 980 sq ft site within the Tanjong Pagar conservation area, the property has a built-up area of about 1,636 sq ft and URA approval for nightclub use on the first and second levels.
This gives the owner “the ability to ask for higher rents and potentially achieve better returns”, said Jennifer Tan, Huttons Asia’s Associate District Director.
The shophouse has a 99-year lease that started in 1988, with a balance lease of 64 years. It is zoned for commercial use under the URA Master Plan and is within walking distance of Maxwell MRT and Tanjong Pagar MRT stations.
Given its commercial zoning, the property can be acquired by companies and foreigners with no Additional Buyer’s Stamp Duty (ABSD) payable.
The EOI exercise for the shophouse closes on 4 October 2023.
5. Portfolio of strata retail and office units at New World Centre up for sale
A portfolio of 20 strata-titled office and retail units at New World Centre has been put up for sale with an indicative price of $55 million, reported Singapore Business Review citing Delasa.
The price translates to an average of $1,392 PSF based on the portfolio’s total strata area of 39,504 sq ft.
Notably, the office units on the second and third levels carry an average price of $1,265 PSF, while the prices for ground floor shops stood at an average of $2,380 PSF.
The strata-titled units can be sold as a whole portfolio to a single buyer or on an individual basis. They are offered for sale on a private treaty and first-come basis.
Built in the late 1990s, New World Centre is a three-storey development comprising around 35 strata-titled shops and offices. The development is located at the corner of Jalan Berseh and Besar and has around 70 years left on its lease.
6. JTC launches two sites in Tampines North Drive 4, 11 Tuas Avenue 18
JTC has launched two industrial sites at Plot 1 Tampines North Drive 4 and 11 Tuas Avenue 18 under the 2023 Industrial Government Land Sales (IGLS) Programme.
With an area of 1.84ha, the site at Tampines North Drive 4 has a gross plot ratio of 2.5 and a 30-year leasehold tenure. It is zoned for B2 use and is the second of the five Confirmed List sites under the 2H 2023 IGLS Programme.
The tender for the site closes on 24 October 2023.
Meanwhile, the site at 11 Tuas Avenue 18 spans 0.40ha and has a gross plot ratio of 1.4. It comes with a 20-year leasehold tenure and is zoned for B2 use. The property was made available for application via the Reserve List System under H1 2023 IGLS Programme.
The tender for the site closes on 10 October 2023.
Related article: Government Land Sales (GLS) Programme Guide (Updated With GLS Sites for 2H2023 Singapore)
7. HPL gets provisional approval to redevelop HPL house, Forum, and voco Orchard
Hotel Properties Limited (HPL) has secured provisional permission from URA to redevelop HPL House, the Forum, and voco Orchard Singapore into a mixed-use project, reported Singapore Business Review.
Located along Cuscaden and Orchard Road, the properties have a combined land area of 14,027.12 sq m or 150,986.66 sq ft.
“The approval is for a comprehensive mixed redevelopment comprising hotel, retail, office, and residential components in two tower buildings of 64 storeys and 43 storeys on a six-storey podium with a rooftop garden, a performance theatre and a basement carpark,” said HPL.
It added that a separate 29-storey building will also be constructed over the contiguous basement carpark.
The proposed mixed development has a total approved gross floor area of about 114,153.38 sq m (1,228.736.71 sq ft).
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Marcus Lee, Content Executive at PropertyGuru, edited this story. To contact him about this story, email: marcuslee@propertyguru.com.sg.
