31 October to 6 November 2023
Property analysts expect the public housing to be constructed at Pearl’s Hill and potentially at Bukit Timah Turf City to be categorised as Prime flats, the priciest of public housing categories. Meanwhile, Shenton House has finally been sold for $538 million to Shenton 101 Pte Ltd, which is owned by IOI Properties Group (IOIPG) CEO Lee Yeow Seng.
1. Around 6,000 new homes are to be built in Pearl’s Hill in the next 10 years
For the first time in over 40 years, new public housing will be built in the Pearl’s Hill area, with around 60,000 new homes to be progressively built over the next 10 years, revealed the Urban Redevelopment Authority (URA).
Offering unique hillside living in the city, the new homes are part of efforts to provide mixed-use spaces to transform the city centre into a vibrant and attractive place to work, live and play.
They will comprise a mix of BTO flats, rental flats and private housing units, such as serviced apartments and condominiums to cater to diverse needs as well as lifestyle preferences.
Property analysts expect the public housing to be constructed at Pearl’s Hill and potentially at Bukit Timah Turf City to be categorised as Prime flats, the priciest of public housing categories, reported TODAY.
They believe 4-room units will be offered at about $700,000, with the estimates based on current prices of similar properties, and the sites’ attributes, such as their central location and connectivity, among others.
On private property, Dr Lee Nai Jia, Head of Real Estate Intelligence, Data and Software Solutions, PropertyGuru Group predicts the price of new condominiums at Pearl’s Hill to start at around $2,700 per sq ft (PSF), assuming market conditions remain stable.
“However, it is likely that prices for select premium units may exceed $3,000 PSF, taking a cue from recent property launches,” he said, adding that units at Turf City may be offered at a similar price range.
Analysts expect the housing units at Pearl’s Hill and Turf City to witness good demand, with each site attracting different buyer profiles.
Pearl’s Hill’s proximity to the city centre and potential for rental opportunities makes the housing units attractive to investors, while the presence of popular schools at Bukit Timah makes the homes there appealing to families.
The authorities are also looking at the possibility of building public and private housing in Bukit Timah Turf City. There are also plans to build homes in Mount Pleasant and the former Keppel golf course site. These plans are exhibited at The URA Centre, with members of the public encouraged to provide their feedback until 2 February 2024.
Related article: National Day Rally 2023 Summary: Standard, Plus, Prime Flat Categories, More Single Housing Options, and More
2. HDB Flat Eligibility (HFE) letter validity extended to nine months
The validity of all existing as well as new HFE letters will be extended to nine months, up from six months currently, as revealed by the HDB.
To take effect from 7 November 2023, the extended validity period will provide both new and resale flat buyers more time to secure their home, reducing the number of subsequent applications once their existing HFE letters expire.
The HFE letter was implemented in May 2023, replacing the HDB Loan Eligibility (HLE) letter. It streamlines the flat buying process “by consolidating the different eligibility assessments for HDB flat purchases, housing grants, and HDB housing loans”.
HDB shared that it has processed over 65,000 applications from both new and resale flat buyers since its implementation in May. Of this, 60,600 had already been approved and issued HFE letters.
It added that the extension of the validity period is part of its efforts “to provide greater convenience for flat buyers in their home buying journey”.
Related article: Check Your HFE Status: 5 Steps to Apply for the HDB HFE Letter (2023)
3. HDB incurred $5.38 billion in net deficit in FY2022
HDB registered a net deficit of $5.38 billion, before government grant, during the financial year 2022, up from the $4.37 billion deficit posted in FY2021.
This comes as it spent “22% more on the Home Ownership Programme to develop BTO flats and provide housing subsidies and grants, from a total of $3.850 billion in FY2021 to $4.680 billion in FY2022”, said HDB.
HDB CEO Tan Meng Dui noted that Singapore’s property market remained buoyant in 2022 amidst the Russia-Ukraine war and the COVID-19 pandemic.
The resultant supply chain uncertainty, higher material cost and labour shortage caused construction costs to increase by around 40% since FY2019, he said.
He pointed out that HDB absorbed the increased costs by raising subsidies and grants to keep flat prices affordable.
HDB said the expected loss for flats currently under development also recorded a net increase of $2.7 billion in FY2022 compared to $2.3 billion in FY2021.
Gross loss on the sale of flats was also higher at $1.2 billion, almost doubling FY2021’s $659 million.
4. The first phase of the Singapore Rail Test Centre is up and running
The Land Transport Authority (LTA) has completed the Singapore Rail Test Centre’s (SRTC) first of three planned tracks, reported CNA.
Notably, it will be Southeast Asia’s first rail testing facility.
The straight 3km high-speed testing track can test MRT trains’ performance at various speeds, before being rolled out to serve passengers.
The two other tracks in the works comprise a 3km endurance looped track which comes with an uphill section for testing train performance and a 2.8km circuit for integrating new trains and systems into the rail network.
Also being built at the facility include an administrative building, an operational control centre as well as refurbishment and maintenance workshops.
The centre will also come with energy savings features such as solar panels, LED lighting, and a hybrid cooling system.
On track for completion in 2025, the SRTC will reduce Singapore’s reliance on overseas testing, while freeing up hours on the main rail lines to conduct maintenance.
5. New Jurong Town Hall bus interchange to open on 26 November 2023, offering more inclusive facilities
The new Jurong Town Hall bus interchange is set to open on 26 November 2023, offering more inclusive public transport facilities as well as a new bus service, reported CNA.
Located along Venture Drive, the interchange will complement the Jurong East bus interchange and Jurong East MRT station.
LTA said the interchange has been designed to be more accessible for seniors, families with young children and those with mobility challenges. It features barrier-free access at entrances, priority queue zones with seating at boarding berths, wheelchair-accessible toilets, a baby care room and a commuter care room for individuals needing a “quiet and calming space”.
To enhance connectivity, the new interchange will be linked to Jurong East bus interchange and Jurong East MRT station via a pedestrian overhead bridge, which will be fitted with lifts, and covered linkways.
There will also be a new bus service – 870 – which will connect Tengah residents to key amenities in Jurong East town centre.
LTA said the new bus service will ply along corridors like Jurong East Central as well as Bukit Batok West Avenues 3 and 6.
Related article: Jurong Lake District, Tengah: 4 Most Exciting Features Coming to the West Side of Singapore By 2033
6. Shenton House sold to IOI Properties boss for $538 million
Shenton House has finally been sold for $538 million to Shenton 101 Pte Ltd, which is owned by IOI Properties Group (IOIPG) CEO Lee Yeow Seng, reported The Business Times.
This is the property’s third attempt at a public tender since April 2023.
Lee explained that he went to bid for the property in his personal capacity rather than the Malaysia-listed IOIPG due to the subject acquisition’s size and the collective sales committee’s tight timeline.
“This purchase demonstrates my continued confidence in Singapore’s prime office sector and residential rental market,” he said.
With a gross floor area (GFA) of over half a million sq ft, Lee plans to develop the Shenton House site into a Grade A office and luxury branded serviced residences.
Zoned for commercial use, the site is eligible for a 25% bonus GFA under the CBD Incentive Scheme.
Tan Hong Boon, Executive Director for Capital Markets at JLL, described Shenton House as the last remaining redevelopment opportunity along the prime Shenton Way thoroughfare.
“Given the limited supply of new Grade A offices in the core of CBD, as occupiers look to locate to low-carbon modern office space as well as the limited availability of luxury rental housing in the area, the Shenton House site will fill these gaps timely and further contribute to the rejuvenation of Shenton Way,” said Tan.
7. Genting Singapore to develop 21,243 sq m of retail space, 700 hotel rooms at Resorts World Sentosa
Genting Singapore’s indirect wholly owned subsidiary has secured provisional permission (PP) from URA to develop 21,243 sq m GFA of retail space as well as 700 hotel rooms at Resorts World Sentosa (RWS).
The Business Times noted that the retail space translates to 228,658 sq ft.
The scheme is part of Genting Singapore’s pledge in 2019 to invest $4.5 billion for the expansion of its RWS integrated resort. Currently, RWS has five hotels with around 1,600 rooms.
Genting Singapore’s subsidiary was one of several parties granted PP by URA in Q3 2023.
Separately, Singapore United Estates, a wholly owned subsidiary of Bukit Sembawang Estates, has been granted PP by URA to develop a landed housing project within the Luxus Hill Heights-Seletar Green Walk area. The project will feature 136 terraced homes, 18 semi-detached homes and two bungalows.
URA has also granted provisional approval to another fully owned unit of Sembawang to develop a 155-unit condo project in Bukit Timah Link.
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Marcus Lee, Content Executive at PropertyGuru, edited this story. To contact him about this story, email: marcuslee@propertyguru.com.sg.
