Prices and rentals of landed homes set to rise

Land scarcity in Singapore should ensure sustainable capital growth in landed housing in the medium to long term, write STEVEN MING and AVIN SEOW

LANDED homes saw their strongest price rise last year since 1994 but they have yet to catch up with their non-landed counterparts, leaving room for more capital as well as rental growth in 2008. Prices of landed homes rose 23.4 per cent last year, going by the Urban Redevelopment Authority's (URA) index of landed private residential property island-wide. This growth rate reaffirmed the upward trend, especially compared with the negligible growth in previous years - 0.6 per cent in 2004 and 2.4 per cent in 2005.











For landed homes in the suburban areas, average prices rose to $636 per sq ft, an increase of 45.1 per cent year-on-year. Landed homes in the prime districts of 9, 10 and 11 enjoyed healthy capital growth of 24.3 per cent to reach $961 per sq ft in 4Q 2007.

Good Class Bungalows (GCBs) were the star performers in 2007. According to URA numbers, average prices of GCBs surged 58.7 per cent year-on-year to $763 psf from $539 psf in 2006. The average cost of a GCB stood at $13.8 million in 2007, compared to $10.3 million in the preceding year. The trend of some GCBs being sold and resold within 12 to 18 months continued into 2007.

An example of this trend is a GCB at First Avenue that was sold for $10 million in September 2007, only to be resold at $12.5 million in October 2007, and then resold again at $16 million in December 2007. This is a whopping increase of 60 per cent in just four months.

Boasting a unique waterfront lifestyle, new 99-year leasehold homes on Sentosa Cove have redefined luxury landed living since their emergence in 2004. Expatriates and overseas investors have since lent much support to the capital growth in this segment. Average prices climbed 20.8 per cent to $1,463 psf by end-2007.

Another trend which we have observed is the increasing popularity of cluster housing. Since it resurfaced in 2000, this lifestyle concept has become ever more popular, especially among younger home owners and permanent residents. Cluster houses, offering shared facilities, blend the elements of landed property with condominium style living. Known as strata landed housing, these developments may be bungalows, terraced or semi-detached homes. Some developers have added more exclusivity to their projects by including a private swimming pool in each house. Notable launches last year were Dunsfold 18 and 8 @ Stratton in Stratton Green, both of which received good sales response.

There are several reasons for optimism across all landed housing segments this year. We believe that more capital gains can be expected this year since the price index of landed homes remains some 25 per cent below the peak of 2Q 1996. Landed homes have yet to see the sharp price rises of their non-landed counterparts. Emerging from a relatively low base, landed properties may be more appealing to investors this year.

Secondly, landed housing will always be considered a luxury in land scarce Singapore. This inherent scarcity should continue to lend support to the landed housing market. As such, GCBs look poised for yet another good year of capital value growth. It would not be surprising to see average GCB land prices cross $900 psf in 2008, due to the scarcity of such bungalows (there are an estimated 2,500 of them) coupled with the rising transacted prices on Sentosa Cove.

Similarly, landed homes on Sentosa Cove should continue to trend higher. Unlike those on the mainland, these houses have a broader market. There are no restrictions on foreign ownership of landed homes on Sentosa Cove. The continued influx of expatriates, together with the growing appetite of the rich for something unique and exclusive, is likely to fuel prices of these luxurious homes.

Rental yields are an attractive component of property investments, providing landlords with regular and stable income. Landed properties have become increasingly popular with tenants, with rents rising at their fastest pace in seven years. As at 4Q 2007, average rents of terrace houses and semi-detached houses climbed to $1.87 and $2.22 psf per month respectively, up 52 per cent year on year, while rents for detached houses rose by 23 per cent to $3.09 psf per month.

Rental growth is clearly outpacing capital growth for landed homes, and with the expectation that landed home prices will catch up this year, landed properties could offer an investor both healthy rental and capital gains in 2008 and beyond.

Given the above factors, the landed housing market should be able to attain capital gains of 10 to 20 per cent this year, notwithstanding the continued US credit turmoil. Singapore's property market remains fundamentally sound, backed by a robust job market and an expanding economy. Perhaps the most fundamental fact is the scarcity of land in Singapore which should ensure sustainable capital growth in landed housing in the medium to long term.

Steven Ming is director at Savills Prestige Homes and Avin Seow, analyst, Savills Research & Consultancy.

Source : Business Times - 27 Mar 2008

Low bids, so landed plot in Jurong not awarded

IN A keenly watched move, the Government has decided not to award a landed housing site in Jurong West after only two bids came in - both way below expectations.

The top bid for the site, from Boon Keng Development, came in at $11.8 million, or $78 per sq ft (psf) of land area - less than half of what one consultant had expected.

The only other bid for the site, in Westwood Avenue, came from Sunway Concrete Products, which offered even less at $10.33 million, or just $68.10 psf.

The tender for the 14,098.9 sq m, 99-year leasehold site closed a week ago.

Property market watchers had been waiting with interest to see how the Government would respond to such low bids, given the recent slump in market sentiment.

After the boom times seen last year, sale volumes have fallen significantly as buyers and sellers remain on the sidelines.

Cushman & Wakefield managing director Donald Han, who had tipped that the site could have fetched $200 psf, said the Government had been wise not to award the site.

‘If you award the site, there will be a downward adjustment of the valuation in the area,’ he said.

The price would also be used as a benchmark for future tenders of such sites in the area, consultants said.

Said Knight Frank director (research and consultancy) Nicholas Mak: ‘In a market with thin volume, tenders on the confirmed list could invite opportunistic bids.’

Sites on the Government’s confirmed list are put up for tender on a specific date.

The Government also sells reserve-list sites, which are put up for sale only when a developer commits to bid a minimum price.

‘There are buyers capitalising on the weak property market but there’re no fire sales yet,’ said Mr Han.

Earlier this year, the Government also chose not to award the tender for a transitional office site in Aljunied because the only bid it received was too low.

Mezzo Development had offered to pay $7.8 million - or a unit land price of $38.35 psf per plot ratio.

Source : Straits Times - 19 Mar 2008

Jurong West landed plot not awarded

THE government yesterday said that it’s not awarding a landed housing parcel in Jurong West - because the bids were too low.

When the tender for the 151,759 square foot site closed this month, there were just two bids. And the higher of the two was a low $11.8 million - or just $77.80 per square foot - in what was taken as a sign of an uncertain property market. That bid, from Boon Keng Development, was significantly below the $200-$250 psf of land area that analysts reckoned the site could fetch.

The other bid came from Sunway Concrete Products, a unit of Malaysia-listed Sunway Holdings. It offered $10.3 million, or $68.10 psf of land area.

Property analysts said then that there was a chance the government would not award the site, as has happened before when the highest bid was too low.

In January, for example, the government decided not to sell a short-term office site at Aljunied because the sole bid was too low. The move followed a string of lower-than-expected offers for state land.

‘The decision is expected on the Jurong site, as the top bid was well below the market rate,’ Cushman & Wakefield managing director Donald Han said yesterday. ‘It would not have been justifiable to award the site, as it would have been a shockwave in terms of market value in that area.’

It is estimated that 50 to 60 landed homes can be built on the 99-year leasehold site in Westwood Avenue.

Source : Business Times - 19 Mar 2008

Whitley Road homes ooze quiet charm

Buyers love the area’s lush greenery and wide open spaces, as well as its proximity to the city.

THE escape of terrorist Mas Selamat Kastari from the Whitley Road Detention Centre has thrown the spotlight on the quiet, high-end residential area.

Previously, many people had no idea that the relatively upmarket area with many landed homes boasted a detention centre in its midst.

Still, this discovery is not expected to dent the values of properties in the area’s private estates, though interest levels could dip a bit, said a property consultant.

‘Some people are just superstitious and they don’t want to live near a prison,’ he said.

Currently, the existing residential pockets are found at the two ends of Whitley Road, with quite a few apartment blocks on the Thomson Road side.

On the Merryn Road side, there are houses and a few condominiums such as The Trevose and Trevose Park.

Black and white bungalows, whose monthly rentals range from several thousand dollars to tens of thousands, can also be found around the area. Quite a few large and exclusive units dot the peaceful, tree-lined stretch along Mount Pleasant Road.

For people who love greenery and space, there are few places like Whitley, property consultants said.

‘The area is attractive because it is only a short drive to Orchard Road and there is easy access to the rest of the island via the Pan- Island Expressway (PIE),’ said CBRE Research’s executive director, Mr Li Hiaw Ho.

Apartments in the Whitley Road residential areas were sold at $900 per sq ft (psf) to $1,300 psf in the second half of last year, said CBRE Research. At The Trevose, there were two deals in February: one for $1 million or $1,050 psf and the other for $1.5 million or $1,142 psf, based on caveats lodged.

Freehold detached houses in the area were sold for between $6 million and $11 million each. Semi-detached houses went for around $4 million each over the same period.

The location also offers the cheaper option of 99-year leasehold landed homes, which can cost $2 million to $5 million.

A check with the Urban Redevelopment Authority (URA) shows that the area is zoned mainly for residential use. The URA says there are currently no specific detailed plans for the area.

Still, a section of the Whitley Road stretch that flanks the PIE remains largely undeveloped and might be reserved for future development, said CBRE Research.

Source : Sunday Times - 16 Mar 2008

Landed housing plot draws top bid of just $77.80 psf

Only one other offer made; poor show seen as sign of uncertain market.

IN what is seen as a sign of an uncertain property market, a landed housing parcel in Jurong West drew only two bids, and a low top bid of $11.8 million - or just $77.80 per square foot (psf) - at the close of a government land tender yesterday.

The higher bid, put in by Boon Keng Development, was significantly below what analysts had said the site could fetch. Cushman & Wakefield managing director Donald Han, for example, reckoned that the plot would fetch $200-$250 psf of land area.

‘The price is really below expectation,’ said Mr Han yesterday. ‘But with the market sentiment being so weak, you can expect wild swings in prices. Developers will be sitting on the sidelines or might not want to bid their best prices.’

The other bid was put in by Sunway Concrete Products, a unit of Malaysian- listed Sunway Holdings. It offered $10.3 million, or $68.1 psf of land area.

Li Hiaw Ho, executive director for research at CB Richard Ellis, said that both bids were ‘relatively conservative’ and reflected the current cautious sentiment in the market.

The 99-year leasehold site on Westwood Avenue has a land area of 151,759 sq ft. Property analysts estimate that some 50-60 landed homes can be built on the site.

‘Nevertheless, based on the highest bid of $78 psf, terrace houses on this site could still be sold for $900,000 to $1 million each,’ Mr Li said. This is slightly higher than recent transactions of intermediate terrace houses in nearby Westwood Park and Westville, which were between $820,000 and $990,000 each.

Potential buyers, Mr Li added, could comprise locals working in the manufacturing firms in Jurong and Tuas, as well as academics at nearby Nanyang Technological University.

Market watchers, however, said that it is possible that the government might not award the site because of the low price.

The price looks especially low when considering other recent government sales of landed housing plots, Mr Han pointed out.

In October, the Urban Redevelopment Authority (URA) auctioned off 12 sub-divided landed housing plots near Sembawang Beach which can be developed into a total of 57 landed homes. The auction fetched a total of $37.09 million, which worked out to about $285 psf of land area on average.

And in January, the government decided not to sell a short-term office site in Aljunied because the sole bid offered too low a price. The decision followed a recent string of lower-than-expected offers for state land.

Source : Business Times - 12 March 2008

Westwood Avenue: Lower than expected bids for Jurong site

A LANDED plot in Jurong West that was tipped by one consultant to fetch bids of over $30 million failed to even get to half of that.

Just two offers were placed for the 99-year leasehold Westwood Avenue plot, a stark reflection of the fast-deteriorating sentiment in the property market.

The top bid of just $11.8 million, or $78 per sq ft (psf), of land area came from Boon Keng Development, with Sunway Concrete Products offering $10.33 million, or just $68.1 psf.

Cushman & Wakefield managing director Donald Han, who had tipped that the site could fetch more than $30 million, or $200 to $250 psf, said the offers were ‘defensive bids’ that would allow the developer to withstand a fallout from the global credit crunch.

CBRE Research executive director Li Hiaw Ho said the ‘relatively conservative bids’ for the Jurong site, which is in an established residential area, reflects the market’s cautious sentiment.

Assuming the tender is awarded, terrace houses on the 14,098.9 sq m site, within a 10-minute drive of the Boon Lay MRT station, could sell for $900,000 to $1.1 million each, property consultants said.

These levels are just slightly above current prices being transacted in Westwood Park and Westville, said Mr Li. Recent deals of intermediate terrace houses in Westwood Park and Westville ranged between $820,000 and $990,000, he said.

Source : Straits Times - 12 Mar 2008

Boon Keng Development puts in top bid for Westwood Ave site

Developer Boon Keng Development has put in the top bid of S$11.8 million for a landed housing site at Westwood Avenue.

The price for the 150,700 sq ft site, which is being sold on a 99-year lease, works out to be S$78 per sq ft.

Only two bids were received by the Housing and Development Board (HDB) for the plot. Sunway Concrete Products put in the lower offer of S$10.3 million.

Property consultants CB Richard Ellis said the bid amounts were conservative, reflecting the current cautious sentiment in the property market.

But it said the terrace houses to be built on the site can still fetch between S$900,000 and S$1 million each.

These prices are slightly higher than the current prices being transacted for nearby developments like Westwood Park and Westville.

Source : Channel NewsAsia - 11 Mar 2008

More landed-home owners installing lifts

Many do so to help elderly family members with mobility problems get around the house.

OFFICES, shopping malls and high-rise apartments are not the only places with lifts zipping people up and down the different levels.

More Singaporeans in landed properties are coming round to the idea of installing them in their homes as well.

While they are generally those who are better-off, having a lift at home is not always about sloth or showing off: Many have at least one family member with mobility problems.

Take 52-year-old Mr Harold Tan, an air-cargo businessman. His four-storey house in the Braddell area has a carpeted lift servicing the four levels.

He already had the lift in mind when the house was being designed, primarily because his mother - now 82 and who goes over to stay once a month - has a knee problem.

‘Now, with a lift, she and her friends can come over and they can go to any floor they want. It is not a problem like before,’ he said.

The others in the house are his 40-year-old wife, their 20-year-old daughter and a maid.

He added: ‘Home lifts are going to become more common as people start to live longer.’

Those in the business of making lifts confirm the trend.

Otis Elevator and Hitachi Asia said they have noticed an increase in home lift installations in the past few years. And architectural firms like Interdesign Berakan started designing homes with lift shafts in 2006.

Mr Siew Yat Hung, a senior sales manager at Hitachi, said the company has seen a 50 per cent jump from 2006 in lifts installed in homes.

He put the trend down to the economy doing well and people getting older and needing help negotiating the stairs.

Often, they have a wheelchair-bound family member, and can afford the cost of this convenience.

Installing a lift costs less than people think, said Mr Siew.

‘It costs less to install a home elevator than to own a car - and many in Singapore own more than one car.’

Mr Tan, for example, spent $45,000 for his lift, which he reckoned was ‘not much’ when compared to the cost of the house. He also does not consider the yearly maintenance cost - $1,000 for four servicings - too much to pay.

Instead of moving to apartments, owners of landed properties can consider installing a lift when their weak, ageing knees start giving problems.

Mr Tan said his neighbour has already retrofitted his home with a lift shaft in anticipation of such a day.

Mr Peter Fong, a semi-retired oil and gas consultant, has also decided to install a lift so he can continue to enjoy his space as he ages.

His house in Bukit Timah is now being fitted with a $70,000 Otis lift, which he said will ‘help me keep track of my active grandchildren when they run up and down’.

Already, the three, aged from two to five, run him ragged whenever they visit, which is often.

Of course, the pragmatic Singaporean who installs a lift in his home looks far ahead as well.

Mr Tan said: ‘A home with a lift will be a draw for three-tier families if the house is ever put up for sale.’

While the lift is now a boon for his mother, he also plans to spend his own golden years in the house, without needing to worry about navigating those stairs.

Source : Straits Times - 7 Mar 2008

Chestnut Ville: Mixed landed housing site for sale

CHESTNUT VILLE (I and II), a mixed landed site at Dairy Farm Crescent, has been put up for collective sale and the indicative price for the combined plot is $90 million.

Collective sale: The indicative price for the combined plot of Chestnut Ville I (above) and II at Dairy Farm Crescent is $90 million

This represents a land price of $741 psf over the land area, inclusive of an estimated $1 million development charge.

The development currently comprises 11 townhouses and 34 walk-up maisonette units with a combined land area of about 122,677 sq ft.

Credo Real Estate, which is marketing the site, says that the site is zoned for three-storey mixed landed housing.

This means the site may yield a combination of conventional terrace houses, semi-detached and detached houses; or cluster landed housing with strata terrace houses, strata semi-detached houses and strata bungalows with communal facilities. Credo executive director Tan Hong Boon added that it commissioned a study by an architect and one of the possible schemes allows the site to be developed into 10 strata detached, 22 strata semi-detached and 27 strata terrace houses, together with another four conventional semi-detached houses and two bungalows.

Based on the indicative price of $90 million, the potential developer's breakeven price for an intermediate strata terrace house and a conventional bungalow should be about $2.1 million and $3.8 million respectively, added Mr Tan.

Credo also pointed out that according to the Land Transport Authority, the planned Bukit Timah MRT Line is slated to include a Chestnut Station and a Hillview Station, both of which could be expected to be close to the site.

Mr Tan also expects good response for the mixed landed housing site as 'they are not easily available in the market'.

Source : Business Times - 5 Mar 2008

Mix-landed site at Dairy Farm Crescent offered for en bloc sale

The private residential property market may be seeing subdued times, but that is not stopping owners of Chestnut Ville I and II from testing the en bloc sale market.

The mix-landed site at Dairy Farm Crescent, off Upper Bukit Timah Road, has been put up for collective sale by property consultant Credo Real Estate.

The owners have an indicative price of S$90 million for the combined plots. With the inclusion of an estimated development charge of S$1 million, the price works out to S$741 per sq ft of gross floor area.

The developer’s break-even price for an intermediate strata terrace house development is estimated to be about S$2.1 million.

If conventional bungalows are built, the break-even price rises to about S$3.8 million.

Chestnut Ville I and II currently comprise 11 townhouses and 34 walk-up maisonette units with a combined land area of 122,677 sq ft.

Under the 2003 Master Plan, the site is zoned for three-storey mixed-landed housing. This means the site can be redeveloped into a combination of conventional terrace houses, semi-detached houses and detached houses or cluster landed housing.

The tender for Chestnut Ville I and II closes at 2.30pm on April 8.

Source : ChannelNewsAsia - 5 Mar 2008

More landed housing sites up for auction

THE Urban Redevelopment Authority (URA) has launched the second phase of Sembawang Greenvale after auctioning all parcels in Phase One last October.

In the first phase, 12 sub-divided landed housing plots near Sembawang Beach were auctioned for a total of $37.09 million, which works out to about $285 per square foot (psf) of land on average.

Phase Two comprises 11 land parcels for a total of 90 dwellings. Most of these will be terrace houses.

Knight Frank director (research and consultancy) Nicholas Mak says new terrace houses in the area are now selling for $1.7 million to $2 million.

The median unit price for landed housing in District 27, where Sembawang is located, increased 12 per cent quarter-on-quarter in Q4 2007, he said. ‘Therefore, in terms of bidding price, we expect the average land price of Greenvale Phase Two will be higher than that of Phase One.’

Mr Mak expects that terrace plots will fetch about $320-380 psf of land, and semi-detached plots about $300-350 psf of land.

Cushman and Wakefield managing director Donald Han believes demand for landed property will stay sound this year. But he also reckons current sentiment - hurt by the US sub-prime crisis - could see potential bidders for Sembawang Greenvale Phase Two discount their offers in the light of rising risks.

As such, he thinks bids could be 5-10 per cent below those received for Phase One.

Mr Han still believes there will be interest in the parcels, especially those that can yield more units, as developers will be able to ‘average down’ construction costs and increase profit margins.

Separately, URA said yesterday it has launched an industrial land parcel at Ubi Avenue 4/Ubi Road 2 for sale by public tender, after a developer committed to bid at least $14 million in early February.

Colliers International managing director Dennis Yeo estimated earlier that bids for the site could come in at $70-80 psf per plot ratio, translating to a breakeven cost of about $230-250 psf.

Source : Business Times - 1 Mar 2008

URA auctions 11 land parcels in Sembawang

The Urban Redevelopment Authority (URA) is auctioning 11 land parcels along Sembawang Road/Andrews Avenue as part of its plans for a landed housing estate in the area.

The plots constitute the Phase 2 development of the Sembawang Greenvale project, and can accommodate 90 dwellings, comprising of one bungalow, 16 semi-detached houses and 73 terrace houses. Phase 1 of the project, which consists of 12 plots along the same stretch of road and accommodates 57 dwellings, was fully sold last October.

Property watchers said yesterday’s announcement of the URA tender would likely draw interest from small property developers, contractors and engineering firms, despite projected slower economic growth and a volatile stock market.

“The landed segment is still a very stable market and the sites are targeted at local buyers, especially displaced owners from collective sales. But there is a strong chance that developers will factor in the current market uncertainty, and this will translate into a lower price,” said Mr Donald Han, managing director of Cushman and Wakefield.

Mr Han expects prices to be 5 to 10 per cent lower than those transacted at last year’s auction, which fetched an average $285 per sq foot of land.

Mr Nicholas Mak, director of research and consultancy at Knight Frank, however, is more optimistic. He noted that the median unit price for landed housing in the area had increased 12 per cent in the fourth quarter of last year from the previous three months.

Mr Mak expects prices in Phase 2 to be higher than those of Phase 1, and fetch $320 to $380 psf for terrace plots, $300 to $350 for semi-detached plots, and $200 to $260 for L-shaped bungalow and semi-detached plots.

Source : Weekend Today - 1 Mar 2008

$95m tag for 16 terrace houses up for collective sale

FORT Terrace, a row of 16 terrace houses at Fort Road in the East Coast has been put up for collective sale with an indicative price of $95 million. The site, which is being marketed by Colliers International, has an area of 47,886 sq ft and a 2.1 plot ratio.

Colliers executive director (investment sales) Ho Eng Joo said the successful bidder has to take into consideration an estimated development charge of $23 million, as well as the cost to alienate some 10,964 sq ft state land, which would be about $6.4 million. With this, the site would cost $1,238 per sq ft based on potential gross floor area.

Mr Ho said collective sales of landed properties are rare. Unlike strata-titled apartments and condominiums, all the owners of the landed houses have to agree to any sale.

But Mr Ho added: ‘With 100 per cent owners’ consensus, the collective sale of Fort Terrace is not subject to the approval of the Strata Title Board, resulting in a possibly shorter time for sale completion.’

The site can be redeveloped to accommodate a high-rise condominium, with 67 units of 1,500 sq ft each. Based on the unit price of $1,238 psf per plot ratio, Mr Ho estimates the break-even price for future development at $1,718 psf.

He also pointed out that new developments nearby on Meyer Road are currently selling for between $2,100 and $2,200 psf.

The market price for the individual homes at Fort Terrace ranges between $2.1 million and $2.3 million. Mr Ho estimates that owners of the 16 terrace houses could each get $4.8 million per house if the houses are sold collectively.

Source : Business Times - 27 Feb 2008

2 good class bungalows on Leedon Road up for sale

A PAIR of recently completed Good Class Bungalows at 37 and 39 Leedon Road are being launched by their developer George Lim. His asking price is about $35 million for each bungalow. The plots' land areas are 22,000 square feet and 21,000 sq ft respectively.

Each five-bedroom, two-storey freehold house has a basement garage for up to five vehicles.

The exteriors are clad in natural sandstone, while inside there is AMX movie-on-demand hardware.

Mr Lim launched his maiden project in 2005 with three Good Class Bungalows built on a 50,000 sq ft site in the Belmont area.

Source : Business Times - 22 Feb 2008

SLA puts 6 houses up for rent

THE Singapore Land Authority (SLA) is releasing four bungalows and two semi-detached houses on its open bidding system from Feb 18.

This follows SLA’s January open bidding exercise which saw 75 bids for five state-owned residential properties . One of these properties , a bungalow at Hyderabad Road, was awarded at a monthly rent of $20,258, 50 per cent or over $6,700 above SLA’s guide rent.

SLA deputy director of land lease (private) Teo Cher Hian said: ‘The keen response to the launch of the open bidding system for residential state properties shows that the rental market for residential properties is still buoyant.’

Four of the six properties being made available this month are in the Seletar Airbase vicinity. Guide rents for a semi-detached house, with 127 sq m of built-up area, is $1,800 a month while guide rents for a bungalow with 197 sq m of built up area is $3,400 a month.

There is also a larger house with 670 sq m of built-up area available on Gibraltar Crescent in the Sembawang area with a guide rent of $6,600 a month and a smaller house at Lornie Road with 206 sq m of built-up area with a guide rent of $3,900 a month.

Giving an idea of possible bid rents, Knight Frank head of corporate leasing (residential) Ervin Scully said that the semi-detached house could see bids come in at between $2,300- $2,800 a month. This is assuming that the new tenant will have to install his own appliances, lights, window treatments, air-conditioning units, wardrobes and the like.

Assuming the house at Gibraltar Crescent has three-bedrooms, servants quarters and land area of about 12,000 sq ft, Mr Scully estimates the winning bid could be between $8,000 - $9,000.

Mr Scully said that generally, the rental market has stabilised since last year. ‘We are not seeing the same kind of frenzy anymore,’ he added.

While there is still demand for rental homes, Mr Scully said expectations were also more, ‘realistic’. He added that generally, rents could continue to rise by about 10 per cent this year.

SLA expects to put out eight more properties for rent in March and about 36 units in total by the first half of this year.

Viewing for the February batch of properties is on 16 Feb. More details on the schedules and guide rent can be found at SLA’s SPIO website.

Source : Business Times - 6 Feb 2008

More colonial bungalows up for rent

Demand for these state-owned buildings is strong due to relatively low rentals.

ANYONE with a hankering for a home with lots of nature and space, and does not mind living some distance from town might want to take note.

The Singapore Land Authority (SLA) will be leasing out four of these colonial bungalows this month, along with two semi-detached houses.

The properties are in Maida Vale and Brompton Road in Seletar, Gibraltar Crescent in Sembawang and Lornie Road near Bukit Timah.

This comes on the heels of a sizzling response to five similar properties the SLA put on the bidding block last month. They drew 75 bids in all and were rented out for about double the guide rents.

All these form part of the SLA’s stock of 2,360 black-and-white homes - properties ranging from apartments to bungalows dating back to the 1930s and are inherited from British colonial days.

Demand for these state-owned buildings has traditionally been very strong, partly because of relatively low asking rentals.

Monthly guide rents for the latest batch of homes, for example, start at $1,800 for a 1,367 sq ft semi-detached house in Brompton Road. They go up to $6,600 for a Gibraltar Crescent bungalow with 7,212 sq ft of built-up area and 16,145 sq ft of land.

Mr Ku Swee Yong, director of business development and marketing at Savills Singapore, thinks the homes can fetch even more.

‘These guide rents are extremely attractive. Normally, you would be able to get at least double the price, if the properties are in good condition,’ he said.

Last month, the SLA rented out three apartments in Clemenceau Avenue North at between $1,856 and $2,500 - double their guide rents of $960 to $1,110. Two more bungalows in Alexandra Road and Dover were let for $20,258 and $15,100, also about twice the guidance.

The guide rents are decided by the SLA’s valuers, who take into account the property ’s last rental, location, condition and whether it comes with a swimming pool, air conditioning and furnishings.

All the properties are in move-in condition and are regularly maintained by SLA-appointed managing agents.

The homes, which come either unfurnished or partially furnished, are located in areas such as Sembawang, Alexandra Park, Adams Park, Telok Blangah, Bukit Timah and Woodleigh Park.

The SLA will put another eight properties up for rent next month, including in Bukit Timah and Newton. Another 11 are in the pipeline between April and June.

Monthly rents range from $400 for a small apartment to more than $20,000 for a black-and-white bungalow.

About 91 per cent of the homes are currently occupied, a rise of about 6 per cent over a few months ago. Most are let for two years, although tenants are normally allowed to renew their leases when they lapse.

Deirdre Dempster, for instance, is planning to extend her lease at a black-and-white bungalow at Goodwood Hill when it runs out in August. The 40-year-old, who is in marketing, has been living there for four years with her banker husband and two kids.

‘I love it. I wouldn’t trade this house for anything,’ she said. ‘What attracted me was the area and the grounds, and there’s a lot of character and history attached to these properties . I hope they don’t tear them down.’

Interested tenants can bid for this month’s properties via the SLA’s new open bidding system. An open house will be held for the homes, and bids will be accepted for a week after the date of the viewing.

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‘I love it. I wouldn’t trade this house for anything… There’s a lot of character and history attached to these properties .’

MS DEMPSTER, who is in marketing, on her black-and-white bungalow at Goodwood Hill

‘Normally, you would be able to get at least double the price, if the properties are in good condition.’

MR KU, of Savills Singapore, who believes monthly guide rents for black-and-white homes are now extremely attractive.

Source : Straits Times - 6 Feb 2008

SLA offers 6 state homes for rent through open bid

The Singapore Land Authority (SLA) is offering another six residential state properties for rent.

They comprise four bungalows and two semi-detached properties in Seletar, Sembawang and Lornie Road.

They are being offered through an open bidding system from 16 February.

The system is more transparent than the previous first-come-first-served procedure under the waiting list or balloting system.

Bidders can submit their bids at SLA's office on Monday, 18 February, following the Open House on Saturday.

Currently, SLA manages about 2,360 residential state properties.

It will progressively place those with available tenancies of at least two years on the open bidding system.

SLA has projected that it will place eight more properties for rent in March and about 36 units in total by the first half of the year. - CNA/so

Source : Channel NewsAsia - 5 Feb 2008

More black-and-white homes for rental, spurred by keen response

About 36 units will be made available by first half of this year.

RESPONSE to the open bidding for black-and-white bungalows and apartments has been so keen that Singapore Land Authority is offering more such state properties for rent this month.


Four bungalows and two semi-detached in Seletar, Sembawang and Lornie Road will be put up for bidding from next weekend. The rents start at $1,800 a month for the semi-detached and between $3,400 and $6,600 for the bungalows.

Bidders can submit their bids at SLA's office on Feb 18, after the open house on Feb 16.

This follows a successful launch in January, which saw 75 bids for five residential properties comprising two black-and-white bungalows and three apartments.

There was keen interest with over 200 prospective tenants attending the open house at Clemenceau Ave North, Hyderabad Road, and Dover Road, said SLA in a statement on Tuesday.

The winning bids ranged between $1,856 per month for an apartment at Clemenceau Avenue North, with a built-in floor area of about 53 sqm, and $20,258 per month, for a bungalow at Hyderabad with a built-in floor area of 369 sqm.

'SLA has received positive response to the open bidding. The open bidding system enhances transparency compared to the previous 'first-come-first-serve' under a waiting list or balloting system,' said the land authority. 'The public has access to a wide choice of properties and the process is also more efficient.'

SLA currently manages about 2,360 residential state properties and will make progressively place those with available tenancies for at least two years on the opening bidding system.

It plans to put up eight more properties for rent in March and about 36 units in total by the first half of this year.

Said SLA's Deputy Director of Land Lease Private, Mr Teo Cher Hian: 'The keen response to the launch of the open bidding system for residential State properties shows that the rental market for residential properties is still buoyant. This is evident even for the smaller apartments, which are very popular with singles and those with small families.'

The appeal of living in a heritage black-and-white building is shared by many. Lush greenery, unique and heritage architectural designs and most of all, the ideal location near many public amenities, were often cited as reasons for their penchant for heritage State buildings.

For 47-year-old Mr Quah Jin Kok, it appeared to be an obvious choice. A second-time bidder, he liked the new system as it allowed him to bid for the next available apartment if he was not successful in the previous round.

'When I first saw a picture of the apartment, I was attracted to its simple structure and its peaceful environment. It is in a building built in the early 60s. I like its resemblance to an old colonial building with old style windows,' said Mr Quah, a business analyst, who is renting a third -storey apartment at Clemenceau Ave North, after an unsuccessful bid for another on the eighth floor. He put in the top bid of $2,500 per month for a two-year tenancy.

Previously, Mr Quah was renting a HDB flat at Waterloo Street. 'Most of the State properties that I am aware of are old but well-preserved.'

Besides Mr Quah, another first-time bidder Ms Norfalizah Bte Sowtali also managed to get the apartment she wanted. Ms Norfalizah, 29, a personal trainer, was looking for a place near her workplace at Novena, and which has public amenities nearby such as a MRT station and a food centre. The unit at Clemenceau North hence suited her needs.

The results of the bidding showing the top five bids will be published on SLA's State Property Information Online (SPIO) website at www.spio.sla.gov.sg within hours of the close of bidding.

Source : Straits Times - 5 Feb 2008

Freehold GCB site off Holland Road on sale for $41m

A FREEHOLD good class bungalow (GCB) development site at 11 Ford Avenue has been put up for sale and the indicative price is $41 million.

This works out to about $893 per square foot for the 45,894 square feet site which is off Holland Road.

A single-storey bungalow currently sits on the site, which is being marketed by Colliers International.

Ho Eng Joo, executive director of investment sales at Colliers, says that the buyer of the site is likely to redevelop it, as up to three GCBs of around 15,000 sq ft can be built there. ‘Good class bungalows are in high demand in land scarce Singapore,’ he added.

Mr Ho estimates that at the indicative price of $41 million, and construction cost of between $1.5 million and $2 million for a bungalow, the breakeven price for a single bungalow is about $16 million.

Prices of prime landed property has been increasing.

Recent benchmark transactions include $25.5 million or $1,899 psf for a house in Nassim Road in October 2007.

In August 2007, a conservation bungalow at White House Park sold for $28.8 million or $1,308 psf.

Closer to Ford Avenue, Mr Ho said, recent transactions of GCB land include sites at Ridley Park for around $1,000 and Chatsworth for around $950 psf.

He said that given the strategic location of the site, which is within walking distance of Holland Village and not far from the Orchard/Scotts Road shopping belt, he expects to see keen interest from developers and high net worth individuals.

Source : Business Times - 15 Jan 2008

Demand for bungalow sites expected to rise

Landed home prices likely to continue last year’s surge and jump by up to 15% this year, say analysts

PROPERTY analysts believe this will be the year for mid- and mass-market properties to shine - but they say demand for landed homes should also remain favourable.

They expect prices of landed homes to climb by 10 per cent or even as much as 15 per cent this year.

That sort of rise may not be spectacular but is still substantial as it comes off a high base last year, when prices of such homes are estimated to have risen 25 per cent to 27 per cent, according to property consultancy Knight Frank.

A year earlier, in 2006, the price climb was just 6.7 per cent.

‘The landed home sector was a laggard compared with non-landed homes,’ says Knight Frank director of research and consultancy Nicholas Mak. ‘It started to pick up last year when people noticed that it was slightly undervalued.’

Good-class bungalows, in particular, attracted strong demand as wealthy homebuyers zeroed in on these large and exclusive houses in prime districts.

But demand for smaller bungalows remains fairly strong too as such properties are limited in supply, says Ms Grace Ng, the deputy managing director of agency and business services at Colliers International.

And what supply there was has dwindled. Many have been redeveloped into semi-detached and terrace houses as a result of the favourable property market conditions of the past two years, she said.

Bungalow sites do not come along often, but there are a few available at this month’s auctions.

Ms Ng said Colliers has a distinctive bungalow that will be put up for sale this month. Located in the Siglap area, the two-storey bungalow has an ‘English cottage’ architectural design and is one of the few bungalows in the area.

The design was inspired by the houses the owner and her late husband saw during their postgraduate years in Britain.

The 4,695 sq ft property - in its original condition - was built in the 1950s and has an indicative price of $3.6 million or $766 per sq ft (psf).

Recent transactions in the same area - district 15 - ranged between $650 psf and $780 psf for two-storey detached houses.

Two large bungalow sites aimed at small developers or investors are also up for auction, at other houses.

One is in Branksome Road, off Tanjong Katong Road. It has a land area of 12,847 sq ft and an indicative value of $900 psf to $950 psf.

Ms Mok Sze Sze, the head of auctions at Jones Lang LaSalle, said this site has the potential to be redeveloped into a conventional landed project or a cluster housing project with six to eight units.

Cluster bungalows in the area are going for about $3.6 million to $4 million each, she said.

Knight Frank too will be auctioning a landed property , at the end of the month: a 14,170 sq ft site in Clacton Road off Meyer Road. It has an indicative value of $1,000 psf to $1,200 psf and can be redeveloped into three bungalows, said the firm’s executive director (auctions), Ms Mary Sai.

Recently, demand for landed homes has also come from those who pocketed lump sums in cash from collective sales, said Mr Mak.

‘Landed homes have always been a different class because foreigners can’t buy them,’ he said.

The market is much smaller than that for condominiums and apartments, which also means it will not be as liquid, said Mr Mak.

In addition, buyers nowadays are not prepared to pay too high a price above valuation, said Ms Ng of Colliers International.

This is due to high construction costs, cautious market sentiment, and the steep price increase over the past two years, she said.

Strong interest

‘The landed home sector was a laggard compared with non-landed homes. It started to pick up last year when people noticed that it was slightly undervalued.’ MR MAK, on the surge in demand for landed homes that began last year and is estimated to have pushed prices 25 per cent to 27 per cent higher.

Source : Sunday Times - 13 Jan 2008