Less optimistic outlook from Developers?

Property players are a bit less optimistic about the market than they were previously, according to an industry measures.

The sentiment index has weakened to 4.9 from 5.7, while the mood for the months ahead also slipped as compared with the fourth quarter, a likely reflection of the recent market cooling measures.

The index, which is compiled by the National University of Singapore’s Department of Real estate, consists of scores ranging from 0 – the most pessimistic – to 10, which registers a high level of optimism.

As part of the quarterly survey, developers were asked about their expectations of the new private property launches.

As a sign of weakening outlook towards the property sector, 62% of developers surveyed expect more residential units to be launched over the next six months compared with 74% in the previous quarter.

About twice as many developers – around 69% – as compared with the fourth quarter also expect prices to remain flat.

Only 35% of respondents anticipate greater interest in the collective sale market, down from 52%.

* Source: The Straits Times

So will this really translate to lesser new launches, “saner” prices at new projects and fewer en bloc sales? Watch this space!

.

NUS study: Last 2 rounds of cooling measures more effective

A study by NUS’s Institute of Real Estate Studies suggests the two latest rounds of property cooling measures on Aug 30 last year and Jan 13 this year may have been more effective in taming prices of completed non-landed private homes than the earlier two series of tightening measures in September 2009 and February 2010.

NUS’overall Singapore Residential Price Index (SRPI) has inched up about 0.19% on average per month since the January measures were introduced. It also increased only about 0.12% on average from the time the end-August 2010 measures were introduced till December last year.

In contrast, the September 2009 and February 2010 cooling measures were followed by average monthly increases in the SRPI of 1.13% and 1.23% respectively.

The index covers only completed non-landed private homes.

Average monthly sales volumes of non-landed private homes – covering transactions in both the primary and secondary markets but excluding executive condos – have shrunk to 1,391 after the latest Jan 13 cooling measures (based on URA Realis caveats data up to April 21).

The monthly sales volume following last August’s tightening package was 2,490 units, while the figure after the February 2010 cooling measures was 2,907.

NUS’s latest flash estimates for its March 2011 SRPI also showed that prices of completed apartments and condos fared better in suburban locations than in the poshest areas.

The SRPI sub-index for the Central Region, which covers district 1 – 4 and 9 – 11, dipped 1.9% month-on-month in March, according to NUS’s flash estimates. This sub-index has appreciated 2.6% since the end of last year and 8.6% year on year.

In contrast, the sub-index for the Non-Central region, where suburban mass-market condos are located, appreciated 1.7% month on month in March. The flash estimate for March was up 3.8% year to date and 14.4% year on year.

As a result, the overall SRPI rose 0.1% month on month in March; the March flash estimate reflected price gains of 3.3% year to date and 11.9% year on year.

* Source: The Business Times

.

New Project Launching: The Foresta @Mount Faber

For those who are seeking a freehold (albeit smallish) property near Mount Faber.

Project Name : The Foresta @ Mount Faber

Developer : Hoi Hup Realty Pte Ltd

Description : Proposed Condominium Housing Development Comprising 5 Storey Residential Flats (total 141 units) with an Attic, a Basement Car Park and Provision for a Swimming Pool 

Tenure : Freehold

Location : 100 – 108 Wishart Road 

District : 4

Site Area : 65,480.64 sqft

TOP (Est) : 31 June 2015 

Total Units : 141 

Car Park Lots : Basement Parking 144 lots (including 3 handicap lots)

Facing : North-South Orientation

Site Plan:

Unit Type:
• 1 Bedroom : 431sqft – 506sqft (43 units)
• 1+Study : 538sqft – 624 sqft (11 units)
• 2 Bedrooms : 667sqft – 947sqft (54 units)
• 3 Bedrooms : 1,076/1109/1,238sqft (4 units)
• 1+Study Penthouse : 775 sqft (11 units)
• 2 Bedrooms Penthouse : 958sqft (3 units)
• 2+Study Penthouse : 1,195sqft (4 units)
• 3+Utility Penthouse : 1,356/1,378/1,453sqft (10 units)
• 4 Bedrooms Penthouse : 1,755sqft (1 unit)

The wife and I understand that registration for VVIP Preview (sometime in May) has already begun. And in order to register, the following documents are COMPULSORY:
1) Particular of Purchaser form
2) Letter of Authorization
3) Photocopy of buyers’ NRIC
4) Signed cheque with payee to developer’s project account

So… we are reverting back to the good ‘o days of cheque collection. Deja vue  indeed!

.

Enbloc News: 2nd try for Laguna Park

The Straits Times today reported that the sales committee at Laguna Park has secured the 80% mandate for a collective sale last Thursday. This is two years after an earlier bid was called off.

While the asking price has not been fixed yet, it is believed owners of the 258 units have been told they could receive up to $2.3 million per unit.

That would make the price for the 99-year leasehold estate in Marine Parade around the $1.2 billion they demanded in 2009.

A potential deal for the former HUDC estate then was called off when the sales committee was too pressed for time trying to get the minimum consent level from owners for a proposed lower price.

Sources say the tender for the 677,463sqft site could possibly be rolled out as early as the middle of next month.

There have been a number of large estates put up for sale en bloc in the past three months.

Pearl Bank Apartments at Outram was put on the market for $750 million while the owners of Pine Grove condominium in Ulu Pandan are asking $1.7 billion.

The tender for Pine Grove closed on April 19, but the marketing agents have not revealed the outcome.

The tender for Pearl Bank closes on May 25.

Hawaii Tower and Tulip Garden, with reserve prices of $700 million and $650 million, respectively, have yet to seal any concrete deals.

Property market observers doubt any concrete deal will surpass the $1 billion mark this year.

The East Coast area has seen some success but on a smaller scale. Two condominiums near Laguna Park – Marine Point and Amber Glades – were sold earlier this year for under $120 million each.

Some analysts say developers may be shying away from larger sites, preferring smaller, more affordable plots that carry a lower risk if the market turns.

Again, this is one that the wife and I would not be holding our breath for. And come May 25, we have this strange feeling that it’ll be all quiet at Pearl Bank too…

.

More new homes in mature estates – Government says

The Government has announced plans to inject thousands of new homes into mature estates. Under the plan, more than 10,000 new private and public homes will be built in Commonwealth, Queenstown and Bishan in the next 10 to 15 years.

The Government aims to use high-rise housing to help increase the population density in these areas.

Some undeveloped sites in the Bishan and Queenstown estates have been made available through the first half of this year’s Government Land Sales (GLS) programme.

Two prime plots in Stirling Road have been set aside under the reserve list.

But this could also mean prices for private homes in those areas could be significantly higher with developers bidding competitively for a slice of the action.

In February, a plum site next to Bishan MRT station attracted 19 bids. The plot was acquired by CapitaLand for $550.1 million, or $869psf ppr.

The wife and I are quite convinced that the apparent spike in resale prices for projects such as Clover by the Park over the past 2 months can partly be attributed to the CapitaLand bid.

And speaking of the two Stirling Road plots, these bring back fond memories for yours truly, as it is in one of the 3-room HDB flats located on Parcel A that I have lived through my early childhood and primary school years.

The block I used to stay in (Block 175) was directly across the road from Queens (a condominium project completed in 2002). The 12-storey block sits on elevated ground and back in the old days before Queens, offers unblocked view even from the 5th floor. The block was demolished in 2006 along with several other blocks located behind it, and the plot became what is now known as Parcel A & B.

.

Thinking about a home loan?

The WEEKEND TODAY ran an article on what you should look out for when shopping for a home loan.

Below is information that we find particularly helpful:

1. For every 1% increase in interest rate, the monthly instalment will rise by about $500 for a $1 million loan stretched over 30 years.

2. Ideally, home owners should have a holding power of at least two to three years and ensure that monthly loan repayments are not more than 35% of the gross monthly household income.

3. While the current low SIBOR (Singapore Interbank offer Rate)/SOR (Swap Offer Rate) -pegged home loans allow home buyers to capitalise on lower interest rates, such loans are more volatile in nature. Borrowers’ monthly instalments will vary with the constant changes in cost of funds and would be first to be affected by higher repayments in a rising interest rate environment.

4. Floating board-rate loans offer more stability as the mortgage rates do not vary with SIBOR/SOR. In addition, packages with no lock-in periods give home owners the flexibility to do partial repayments at no additional cost, without having to time the partial repayment at the SIBOR/SOR re-pricing date.
In a rising interest rate environment, such packages are advantageous over loans pegged to SIBOR/SOR as the impact on the cost of funds is not immediate.

5. Fixed rate loans offer the most stability. However, such loans come with a premium and home owners could be tied to a higher fixed rate while cost of funds remains low. These loans are suitable for owner occupiers and those with a longer investment horizon as partial repayments are generally restricted with penalty.

6. Home owners may consider splitting their loan into a fixed rate loan and a floating rate loan to hedge against any increase in interest rates and allow greater flexibility in repayment under the floating rate loan.

7. Other factors to consider include penalties for partial prepayment or redemptions and conditions for refund of legal fee and valuation fee subsidies granted during loan take-up.

The wife and I certainly find the need to “time the partial repayment for SIBOR/SOR loan at the re-pricing date” somewhat of a hassle. First you have to know/remember when these dates occur (e.g. loan pegged to 3-month SOR will be re-priced at the end of every 3 months), then make a note to give the bank 1 – 3 months’ notice of partial repayment (depending on the contract terms) prior to that date. More often than not, you will find yourself missing the re-pricing date… at least we did, twice!

.

Are you living in the Pine Grove area?

The wife and I found this rather interesting report by Kim Eng Research while scouring the web for certain information about Cavendish Park & Astor Green.

Kim Eng Research (14042011)http://www.scribd.com/embeds/53602534/content?start_page=1&view_mode=list&access_key=key-si4f1vow7v48h4t60ww(function() { var scribd = document.createElement(“script”); scribd.type = “text/javascript”; scribd.async = true; scribd.src = “http://www.scribd.com/javascripts/embed_code/inject.js”; var s = document.getElementsByTagName(“script”)[0]; s.parentNode.insertBefore(scribd, s); })();

We now know that there is over 3,300 private apartments around the Pine Grove area. Included in the report are the secondary market prices for developments in the area over the past 12 months (only 2 resales for The Trizon??).  It also provided information about the existing land banks of some of the major developers in Singapore. But conspicuously misssing from the list is Far East.

While on the subject of Cavendish Park and Astor Green, we believe the plot ratio for both is 2.1 (similar to Pine Grove). But can anyone tell us what is the land size for these two developments respectively?

.

d’Leedon (Review)

.
District:   10
Location:   Farrer Road/King’s Road/Leedon Heights
Developers:   CapitaLand/HPL
Tenure:   99-year Leasehold wef 8th April 2010
No. of Blocks:   7 Blocks of 36-storey each
No. of Units:   1715 residential units (including 12 villas) + 8 retail shops
Expected TOP:   2015

The wife and I first visited the sales gallery of d’Leedon about 3 weeks ago, and have since posted photos of the Garden House and 3-Bedroom showflat in our blog. However, we were dragging our feet abit in writing our thoughts on the project.

So to ensure that we still have our facts right, we decided to go down to the showflat again yesterday to refresh our memories.

d’Leedon warrants little introduction, as most of you would have heard of this iconic mega project designed by world-renowned architect Zaha Hadid.  It sits on a humongous site of more than 840,000sqft formerly occupied by Farrer Court. The project started previewing in Nov 2010 and only 2 out of the 7 blocks (i.e. Block 11 & 13) are released for sale at the moment.

d’Leedon offers a full range of 1- to 4-bedroom units and penthouses. In addition, there are also “Garden House” units (which consist of 3-levels: basement, ground and first) and twelve semi-detached “Garden Villas”.   

Facility-wise, d’Leedon is probably second to none. You will find everything you expect of a full-facility development (including 3 tennis courts and even a basketball court!) and more. Two of the offerings that particularly caught our eyes are:

• The 5 “Themed Gardens”
• Mini Race track – for all you remote-control car fanatics

Parking lots are all in the basement, with the standard ‘1 parking lot per household’ applies. This is with the exception of the Garden Houses and Villas, which come with 2 dedicated parking lots.

There are 2 entrances into d’Leedon – the main entrance is along Leedon Heights, while a second entrance is along King’s Road. A covered walkway that leads to a side gate will bring you to the Empress Road Market/Food Centre and the upcoming Farrer Road MRT station, both of which are located just outside the development.
 

For our review purpose, we will stick to the 4-bedroom showflat. This is a 1744sqft Type D1a unit.

It may be of interest to note that only 2 out of the 10 units of 4-bedders in each block are Type D1a, while the rest are of Type D1. And the main differences between the two unit types are:

• Type D1a is slightly bigger in size – 1744sqft versus 1615sqft for Type D1

• Type D1a has an open terrace next to the Junior Suite, which is missing from Type D1

• The walkway from the main door to the living/dining area for Type D1a is almost twice the length of Type D1 (to accommodate the open terrace). So you lose out more on the walkway space for the former.

All the 4-bedroom units are located between the 25th – 34th floors of both blocks.

As you enter the unit, the first thing you see is the kitchen. Unlike the 4-bedders in many other projects, you do not get a dry kitchen. The kitchen is a rectangular strip of space, which is spacious enough for two (or even three) people to work in, It comes furnished with “Bosch” hood/hob/oven and “Hansgrohe” faucets. All the kitchen cabinets/drawers are fitted with “anti-slam” mechanism.

The Yard area is located at the far end of the kitchen around the corner. This is a square-shaped area with barely enough space for doing your laundry/ironing. A large window provides good ventilation and natural lighting to this area. The developers have included an additional sink here, which is especially useful if you have stuff that needs to be hand-washed.

The yard also houses a bathroom and utility room. The utility room is quite small and narrow, with a pillar that sticks out on one side taking up quite a bit of space. So if you intend this to be the maid’s room, you will probably have to custom-fit the bed. But one thing we really like about the utility is that it actually comes with a window. This is unlike apartments with home shelter that is fully enclosed, which can be rather claustrophobic for the maid.

The living/dining area is L-shaped and seems quite small for a 1700+sqft unit. The developers have deliberately converted one of the adjoining common bedrooms into the dining room, which will at least gives you a decent-sized living and dining area. And as per CapitaLand/HPL ‘s other mega project – The Interlace – you only get homogenous-tile flooring in the living/dining area, which is rather disappointing for a project that has generated so much hype for its avant-garde design.  The balcony/planter area is quite small compared to current standard (less than 100sqft?). And from the floor-plans, it seems like the balcony/planter area for Type D1 is actually bigger than Type D1a.

The common bedrooms are small and the bay windows make it a double-whammy. This is probably why the developers have resorted to a “mini” Single-bed, which will allow for more space in the room but probably rather uncomfortable to sleep on. All the bedrooms come with timber-strip floors and your standard-size (read: small) wardrobe.

The common bathroom is spacious. You get homogenous tiles for the floors and walls, “Bravat” wash basin/toilet bowl and “Hansgrohe” bathroom fittings. A window within the shower stall (which is a standard feature for all the bathrooms in the unit) provides ventilation and natural lighting to the bathroom. But more importantly, it helps dissipate the stale smell that normally associates with fully-enclosed bathroom – a “flaw” (if you can call it that) we found in the 4-bedroom showflat at The Interlace.

The Junior Suite is located across from the other bedrooms, separated by the living/dining area. The room is good-sized, so you still get quite a fair bit of space after fitting a Queen bed inside.

 

The attached bathroom is again quite spacious and looked almost like a replica of the common bathroom.

The Master Bedroom is rather odd-shaped and with bay windows on 2 sides. However, it is surprisingly huge compared to many other recent projects that we have seen.

The Master Bathroom is again irregular shaped but spacious. You do not get a long-bath even for the 4-bedder, and thus have to make do with the huge standing shower-stall. We like the nice egg-shaped toilet bowl but disappointed with the tiled walls/floors.

Pricing wise, here is a sample of prices for the 4-bedroom units that we believe are still available:
• Block 11, #26-30 (1744sqft Type D1a, faces Bukit Timah) – $3,278,100 or $1,879psf
• Block 11, #27-30 (1615sqft Type D1, same facing) – $3,131,000 or $1,938psf
• Block 13, #26-47 (1744sqft Type D1a, faces Farrer/Holland Road) – $3,278,100 or $1,879psf
• Block 13, #27-47 (1615sqft Type D1, same facing) – $3,131,000 or $1,938psf

Some may say that it is not an “apple to apple” comparison, but units of around 1700 – 1800sqft at the neighboring Waterfall Gardens (completed in 2011) and Parvis (TOP in 2013) have been selling at $1,700+psf & $1,600+psf respectively. And both of these developments are freehold!

What we like:
• All seven blocks are well-spaced apart to offer unblocked view from the living room of your apartments. The actual “view” that you get will largely depend on how “high” your unit’s at, but at least you will not be staring into the unit of the guy living in the opposing block.

• More thoughts have gone into the apartment designs too – we like the spacious and functional kitchen and bathrooms, the smaller balcony (which translates into more interior living space), the windows in the bathrooms/yard that allows for ventilation and even windows for the utility room. If our memory serves us right, the common bathroom for the 4-bedder unit at The Interlace is fully enclosed, which may result in some rather interesting smell after awhile.

• Location – 15 minutes’ drive to CBD, 5-minutes’ to Orchard Road and even less to Holland Village. In addition, the Empress Road Market & Food Centre and upcoming Farrer Road MRT are right at your doorstep!

• Parents with primary school-heading children will be pleased to know that both Nanyang Primary (co-ed) and ACS (International) are within 1-km of d’Leedon. However, you probably still need to ballot for places at Nanyang and pay through your nose if you are thinking about ACS (International).

What we dislike:
• The living/dining area and the common bedrooms are too small for our liking. And if you do sacrifice one bedroom for the dining area, your unit effectively becomes a 3-bedder!

• For an “iconic” project such as d’Leedon and especially given the price, the wife and I are rather disappointed with the furnishing/fittings that are provided. What’s with the homogenous floor tiles in the living/dining area and less than impressive kitchen appliances?!

We recalled being similarly unimpressed with The Interlace – the other mega project by CapitaLand/HPL. Then again, the price at that time (Dec 2009) was $1,000psf not $1,900psf!

• The wife and I were told that blocks 11 and 13 have a total of 300+ apartments each. We can appreciate the reason why (else how to fit 1,700 units into 7 blocks?!) but 300 units is like the entire estate in many other developments! We wonder if anyone has considered the fire-hazard aspect of housing so many units within a single 36-storey block…

In summary, the wife and I have mixed-feeling about d’Leedon. There are certainly aspects of the project that we really like (the iconic design, the facilities, the location, MRT at your doorstep etc) but these are not compelling reasons enough for us to consider shelling $3+ million for a 1700+sqft apartment. This is especially when you take into account of the quality seen in the showflats, the 99-year leasehold status and having to cope with 1,700 other households living in the same (albeit huge) estate.

We believe the same amount of money will probably get us better buys at some of the other projects (freehold even) nearby. Maybe this is also the reason why only 50% of units in the 2 blocks are sold thus far, after the initial euphoria at the private preview…

.

The Boutiq: 75% of unit released sold at soft launch

.
HEETON Holdings, KSH Holdings and TEE International have sold 39 apartments at their high-end Killiney Road residential project, The Boutiq, at an average price of $2,350psf.

The companies said yesterday that 75% of the 52 units released in the first phase of sales have been sold in a soft launch. The freehold District 9 project near Somerset MRT station has 130 units in all.

Heeton chief operating officer Danny Low said that the developers are now giving buyers a discount of about 10% off the list price. Prices will go up when subsequent phases are launched as the discount is scaled back and more choice units are released.

“With its prime location, five-star hotel facilities such as porte-cochere (coach gate), concierge, welcome lounge, and well-designed lifestyle spaces, The Boutiq will be a compelling proposition for young professionals and cosmopolitan globe-trotters – anyone who appreciates the finest things in life,” said Mr Low.

The architectural design of The Boutiq draws inspiration from chic boutique hotels around the world. The project’s architect is Broadway Malayan Asia.

Units in The Boutiq range from 506sqft to 2,853sqft in size. The bulk of the units are one and two-bedroom apartments.

Heeton, KSH and TEE hold stakes of 45%, 35% and 20% respectively in the development project. The three partners bought the site of the former Mitre Hotel in 2009 for $121 – 122 million – or almost $1,100psf ppr including a development charge.

*Source: The Business Times

.

Enbloc News: Latest on Pine Grove

According to the TODAY paper, the marketing agent Jones Lang LaSalle declined to comment if any bids were received for the tender, or when the results of the tender will be released. This is after the tender for Pine Grove – possibly the most expensive property to go en bloc – closed yesterday.

Are we being too presumptuous to think that if a bid was received at the $1.7 billion asking price, someone would have made an announcement by now….?

.