Over $500m of Good Class Bungalows sold in Q1: CBRE

Its analysis of URA Realis caveats shows that 29 deals are sealed.

At least $500 million worth of Good Class Bungalows (GCBs) have changed hands in the first three months of this year, according to CB Richard Ellis.
The property consultancy's analysis of URA Realis caveats shows that 29 deals were sealed in Q1 for a total of $470.33 million. In addition, CBRE director (luxury homes) Douglas Wong confirmed that he brokered a $36.3 million transaction last month which has yet to be reflected in the caveats.

Market watchers say that further caveats for deals done in March may be captured over the next few weeks.

The deal brokered by Mr Wong, for 14 Bishopsgate, would also be the biggest in dollar quantum in Q1. The single-storey conservation bungalow is over 50 years old. The land area is 32,405 square feet and the property is being sold by members of the Wong family who once controlled Tien Wah Press.

Market watchers say that transactions are continuing to stream in this month, including a $23 million sale at Victoria Park (land area of 21,190 sq ft) and at Ladyhill Road, $23.5 million (land area of slightly over 16,000 sq ft). However, market watchers generally do not expect a repeat of last year when a record $1.72 billion of GCBs were transacted, as the number of deals this year is expected to dip amid rising prices.

William Wong, managing director of RealStar Premier Property, says: 'Current GCB prices are about 10-20 per cent higher than a year ago, depending on location of the bungalows. Those in prime areas such as Tanglin have gone up as much as 20 per cent.'

Agreeing, CBRE's Mr Wong says that properties in the Jervois/Chatsworth/ Bishopsgate areas fetched about $1,000 psf in the 2007 property boom. 'Today, people are asking $1,200-1,400 psf, and even $1,500 psf.'

A spokesman for FRN Properties says that in places such as King Albert Park and Brizay Park, asking prices are $900-$1,000 psf, compared to $500-$700 psf in the 2007/2008 period.

The price appreciation has created opportunities for flipping. For instance, a property on a 15,450 sq ft plot at Swettenham Road that had sold for $13 million or $841 psf last November changed hands again for $16.3 million or $1,055 psf in February. Then, a bungalow at Queen Astrid Park that had been transacted in August last year for $24 million or $877 psf found a new owner in February for $28.28 million ($1,033 psf).

Among the interesting GCB deals done in Q1 is the $28 million sale of a property at Binjai Park. The bungalow is believed to have been sold by Amtel Group boss Sudhir Gupta to another entrepreneur, Sareen Gajendra Singh, who owns Omni United (S) Pte Ltd. Both are Singapore citizens.

GCB investor Thomas Chan is said to have picked up a property at Queen Astrid Park for about $28.3 million from Zain Fancy, formerly head of Morgan Stanley Real Estate Investing for Asia Pacific. Mr Fancy is believed to have reaped a gross profit of over $4 million.

In January, Audi distributor Premium Automobiles - controlled by Hadi Tanaga - paid $31.5 million or $1,066 psf for 4 Swettenham Road.

Island Hospital founder and Napier Properties director Mark Wee is said to have bought 36 Belmont for $18.73 million.

A property at Dalvey Estate was picked up for $20 million; the buyer is understood to be a banker who is a Singapore PR.

GCBs, with their stringent planning requirements, are the creme de la creme of the housing market, at least on mainland Singapore. There are only about 2,400 such bungalows in 39 gazetted GCB areas.

Property agents cite anecdotal evidence of high net-worth mainland Chinese, Indians and others who have become Singapore PRs/citizens and who are buying GCBs.

Newsman Realty managing director KH Tan notes that local players have also been active in the GCB market. These include those upgrading from smaller homes as well as investors who own several GCBs.

Foreigners need permission from the Land Dealings (Approval) Unit (LDAU) before they can own landed property. On mainland Singapore, the main criteria are that they are Singapore PRs and that they make an adequate economic contribution.

However, non-PR foreigners may buy landed homes on Sentosa Cove subject to LDAU approval.

Whether on the mainland or on Sentosa Cove, the landed home a foreigner is allowed to buy usually must not exceed 15,000 sq ft in land area, although in some instances, property agents say that approval has been granted for PRs to buy GCBs with land areas slightly larger than this if part of the site is 'unusable' - for instance, if there is sloping ground which cannot be built on.

Foreigners may at any one time own just one landed home in Singapore and that too for owner occupation only.

On the mainland, foreigners also have to hold the property for at least three years before they may resell it. There is no minimum holding period for Sentosa Cove.

Fri, Apr 16, 2010
The Business Times

Private home sales rise 47% on-month in March to 1,761 units

SINGAPORE: Private home sales kept up their momentum in March, with 1,761 units changing hands, according to figures from the Urban Redevelopment Authority (URA).

This was up 47 per cent on-month and also the fourth highest monthly sales recorded since the start of URA's monthly series in June 2007.

Analysts said demand for new homes remains strong, despite more government measures to cool the market in February.

The prime and outlying areas showed the highest level of market activities. New homes in the prime districts accounted for 720 units of total sales. Projects in the outlying areas accounted for 776 units transacted, while city fringe areas accounted for 265 units sold.

The top two best selling developments were both in the suburbs. The Vision saw 236 units sold, while The Estuary had 212 units transacted. The third and fourth best sellers were 76 Shenton in the downtown area, which saw 202 units sold, and The Laurels, which moved 115 units.

Of the top five best selling projects in March, only the Coralis was in the city fringe area.

According to Colliers International, 44 per cent of sales in March were to HDB flat owners, up from 34 per cent in January and 33 per cent in February.

Colliers said this may be due to HDB upgraders rushing to lock in their private property purchases for fear of being caught in a double whammy situation, where private property prices rise beyond their means and HDB resale flat prices fall after the government stepped in to curb speculative activity in the HDB resale flat market in early March.

Going ahead, analysts said the sales volume and prices in the residential market are expected to continue to expand, fuelled by the expected growth in the regional economies and investment confidence.

The expected gradual appreciation of the Singapore dollar may also result in higher demand for Singapore assets by foreign investors which would include real estate here.

Ngee Ann Polytechnic real estate lecturer Nicholas Mak said in the absence of any market shock such as the introduction of a property capital gains tax, the number of private homes sold by developers could reach 13,000 to 15,000 units in 2010.

He also expects the robust buying demand of private suburban homes to lead to more land sales by the government. He said that in the short term, such land sales would sustain the market activities and even contribute to the growth in property prices.

Colliers expects the improved economic environment to give property market sentiment and confidence a further boost.

It expects April's launch and sales volume to stay robust at above the 1,000-unit level, but it said price-resistance - particularly at the mass-market level - may moderate sales from the strong performance in March.

Colliers also expects the strong buying momentum to continue at least into the second quarter. - CNA/vm

Singapore's GDP expands strongly by 13.1% on-year in first quarter

SINGAPORE: Singapore's GDP expanded strongly by 13.1 percent on a year-on-year basis in the first quarter of 2010.

It grew by 32.1 percent on a seasonally-adjusted quarter-on-quarter annualised basis.

In advance estimates released on Wednesday, the Ministry of Trade and Industry (MTI) said it expects the Singapore economy to grow by 7.0 to 9.0 percent in 2010.

MTI said growth was led by the manufacturing sector, which expanded by 139 percent in the first quarter of 2010 compared to a contraction of 29.0 percent in the fourth quarter last year.

It attributed this to a robust expansion of electronics production and a stronger-than-expected surge in biomedical manufacturing output.

The construction sector grew by 11.3 percent on a year-on-year basis in the first quarter, supported by sustained public sector civil engineering activities and an increase in the number of residential construction projects.

MTI said the services-producing industries also expanded, registering a growth of 8.4 percent on-year. Expansion was driven largely by wholesale trade, following sharp increases in exports of electronic goods.

Growth in the transport and storage, hotels and restaurants, as well as financial and business services also contributed to improved performance for the services sector.

In its external outlook, MTI said the global economy had shown further signs of improvement.

In the United States, the economic recovery has gradually broadened with growth in the manufacturing and services sector.

More importantly, MTI said it noted that the US labour market is also beginning to show signs of a turnaround with strong employment growth in March 2010. It said these developments would help shore up the recovery of private sector demand in the US.

Within Asia, economic growth is expected to remain firm, supported by China's buoyant demand for electronics goods and commodities. - CNA/de

New project selling well; 3rd en bloc site sold

The private homes market remains buoyant, with more than 200 units sold at a new launch.

THE private homes market remains buoyant, with more than 200 units sold at a new launch and the year's third collective sale site sealed.

UOL Group said it has sold more than 200 units of Waterbank at Dakota in Dakota Crescent at a preview that started on Wednesday. Prices ranged from $1,000 per sq ft (psf) to $1,300 psf.

With 616 units, it is the first project here without bay windows and planter boxes. Industry sources said there was stronger take-up for the smaller, more affordable units. Units range from a 484 sq ft one-bedder to a 2,820 sq ft penthouse.

Meanwhile, Culford Garden in Siglap has been sold en bloc to Fragrance Properties for $39 million, making it the third collective sale to be sealed this year.

Marketer Credo Real Estate said the land rate is about $632 psf per plot ratio, or $574 psf ppr, based on a gross plot ratio of 1.54, which includes balcony space. The tender, which closed on Thursday, attracted four offers, all of which were within the asking range of $37 million to $40 million.

The owners of the 24 units stand to reap an average of $1.625 million each.

The year's first collective sale was a Balestier industrial site that can be converted to residential use. The second was a cluster of 16 terraces in Fort Road.


By Joyce Teo
Mon, Apr 12, 2010
The Straits Times