Eight confirmed list sites yielding 5,160 new residential units, the highest in 10 years

Eight confirmed list sites yielding 5,160 new residential units, the highest in 10 years

SINGAPORE (EDGEPROP) - The 2H2023 Government Land Sales (GLS) Programme will contain eight development sites on the confirmed list, which can collectively yield about 5,160 new private residential units, including 560 executive condominium (EC) units.

The supply of private housing in the 2H2023 GLS Programme is 26% more than what had been offered under the 1H2023 GLS Programme, which contained 4,090 new private residential units. This means that the government would inject approximately 9,250 units for development for 2023, which it says is the highest level in a decade.

residential and commercial sites - EDGEPROP SINGAPORE

 

The reserve list, containing sites that need to be triggered for tender, comprises six residential sites (including two EC sites), one commercial site, a white site, and a hotel site. These Reserve List sites could yield 3,430 private residential units (including 855 EC units), about 1 million sq ft of commercial space, and 530 hotel rooms. (Find Singapore commercial properties with our commercial directory)

Edmund Tie’s head of research and consultancy, Lam Chern Woon, observes that most of the residential sites on the confirmed and reserve lists are in the heartlands, with some exceptions such as the plots at Orchard Boulevard, Zion Road (Parcels A and B), Pine Grove (Parcel B) and Holland Drive. “The choice of the prime sites were carefully calibrated to ensure that supply is not excessive,” he says, adding that the government continues to adopt a ‘light touch’ on commercial and hotel supply, preferring to place the bulk of supply under the Reserve List.

 

location - EDGEPROP SINGAPORE

 

In a June 21 press release, the Ministry of National Development said the latest GLS supply “will bring the total pipeline supply of private housing (including ECs) to about 63,500 units and cater to resilient demand.”

The ministry adds: “The increased confirmed list supply for 2H2023 will add to the existing pipeline supply to meet the population's housing needs. Specifically, it will bring the total pipeline supply of private housing (including ECs) to about 63,500 units, comprising 50,200 units with planning approval and 13,300 units from GLS sites and awarded en-bloc sites that have yet to be granted planning approval”. (See potential condos with en bloc calculator)

Based on submitted development plans, about 40,400 units are set to be completed between 2023 and 2025, doubling from 20,000 units completed between 2020 and 2022. “Releasing more land parcels can help assure buyers that there is sufficient private home supply, and the increase in home supply may help to moderate price increases and stabilise the market in the long run,” says Christine Sun, senior vice president of research and analytics at OrangeTee. She adds that many new land parcels are attractive, offering good housing options for future buyers.

“With the collective sales market staying anaemic, the government has stepped up its supply of land to meet the strong demand for housing,” says Lee Sze Teck, senior director of research at Huttons Asia. He adds: “The sites on the confirmed list will attract keen interest from developers. Many sites are either directly connected to an MRT station or within a short walk of an MRT station. Several are in new locations which have not seen any new supply for many years”.

 

One site on the confirmed list is a 1.57-ha plot at Lorong 1 Toa Payoh, which could yield about 775 units. According to Lee, it has been about eight years since the government released a development site for a condo in Lorong 1 Toa Payoh.

 

GLS site at Lorong 1 Toa Payoh - EDGEPROP SINGAPORE
The GLS site at Lorong 1 Toa Payoh. (Map: URA)

 

“With five-room flats at The Peak @ Toa Payoh exceeding $1 million and quite several recently MOP-ed flats exceeding $800,000, there is a sizeable pool of potential HDB upgraders,” he says, forecasting that the top bid for this site could be more than $1,200 psf ppr. (Find HDB flats for rent or sale with our Singapore HDB directory)

A 0.68ha site at Orchard Boulevard is also on the confirmed list, with the potential to house 270 residential units and 5,382 sq ft of commercial space. This site will have direct access to Orchard Boulevard MRT Station.

Sun describes the future project on this site as a potential ‘trophy project’ by developers, given its prime central location in Orchard and proximity to the Orchard Road shopping belt. “The area has not seen a new GLS site released for sale in the past five years. Thus, developer and buying interest will likely be healthy for this plot,” she says.

 

GLS site at Orchard Boulevard - EDGEPROP SINGAPORE
The new GLS site at Orchard Boulevard. (Map: URA)

 

The last GLS site released in this area was on Cuscaden Road, which SC Global developed into the luxury project Cuscaden Reserve. That site attracted nine bidders then, and the winning bid of $2,377 psf ppr was awarded in May 2018. “With the cooling measures crimping foreign demand, the unit mix, size, and quantum (of the future development) will have to cater more towards the local market. Nevertheless, it is still a very attractive site, and the top bid could be more than $1,500 psf ppr,” says Lee.

Two new residential development sites in the Springleaf area have also been featured. This neighbourhood has opened since the completion of the Thomson-East Coast Line last year. The confirmed list counts a 2.44ha site on Upper Thomson Road (Parcel A) that could yield 595 units and 21,520 sq ft of commercial space and a 3.2ha site on Upper Thomson Road (Parcel B) that could house 940 units.

A 1.51ha site with a relatively high plot ratio of 5.6 was also launched along Zion Road, and URA estimates that the site could yield 955 units and a total commercial space of 25,824 sq ft. This plot is directly connected to Havelock MRT Station on the Thomson-East Coast Line. “Mixed-use sites with a direct MRT connection are highly sought after by buyers as it offers superior convenience,” says Lee. “Homes on the higher floors will have towering views towards the south. It could see a top bid of more than $1,300 psf ppr."

 

GLS site at Zion Road - EDGEPROP SINGAPORE
The new GLS site at Zion Road. (Map: URA)

 

Neighbouring this land parcel is the former Jaik Kim Street GLS site which has been redeveloped into Riviere by Frasers Property. That GLS site attracted 10 bids, and the winning bid topped out at $1,732 psf ppr.

Another past GLS site is the land parcel at Irwell Bank Road, which has been developed into Irwell Hill Residences by City Developments. The site attracted seven bids at the time, with a winning bid of $1,515 psf ppr.

There is also one EC site on the confirmed list, a 2.01ha plot on Plantation Close in Tengah with the potential to yield 560 units. Lee says the release of this EC site is in response to the strong sales at recent EC launches like Copen Grand and Tenet. “Following the success of Copen Grand, developers may be keen to look at EC sites in Tengah to shore up their landbank. It could draw up to 8 developers and a top bid of more than $650 psf ppr.”

 

EC site at Plantation Close - EDGEPROP SINGAPORE
The EC site at Plantation Close. (Map: URA)

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[UPDATE] Investor consortium lists portfolio of 11 HDB shops and a retail unit at Peninsula Plaza for sale at $52.2 mil

[UPDATE] Investor consortium lists portfolio of 11 HDB shops and a retail unit at Peninsula Plaza for sale at $52.2 mil

SINGAPORE (EDGEPROP) - On the market is a portfolio of 11 HDB shops and a 999-year leasehold shop unit at Peninsula Plaza for $52.185 million, with CBRE as the exclusive marketing agency. The shop units have a total strata area of 17,934 sq ft, and based on the asking price, it averages out to $2,910 psf across the portfolio.

Collectively known as “The Heartland Collection”, the HDB shops are located in mature residential estates across the island, such as Ang Mo KioClementiHougangTampinesToa Payoh and Yishun, says Clemence Lee, CBRE executive director of capital markets, Singapore.

Many are corner HDB shops with prominent frontages, he adds. Others are two-storey HDB shophouses near road junctions, coffee shops, post offices, grocery stores, markets or food centres. "They enjoy prominent frontage and high footfalls," says Lee.

 

Ang Mo Kio Avenue - EDGEPROP SINGAPORE A 1,518 sq ft, 2-storey HDB shophouse at Ang Mo Kio Avenue 1 for sale at $2.205 million ($1,453 psf) [Photo: CBRE]

 

On a psf basis, the most expensive shop is the 1,033 sq ft unit at Toa Payoh Lorong 6 at $11,791 psf. It is right in the heart of Toa Payoh Central, within a short walk of the Toa Payoh MRT station and bus interchange.

The Toa Payoh shop is even more expensive than the Peninsula Plaza on North Bridge Road in the Downtown Core. The 538 sq ft Peninsula Plaza unit has a price tag of $11,320 psf.

Convenience store 7-Eleven (part of DFI Retail Group, formerly Dairy Farm International) is the tenant of seven of the 11 HDB shops on long-term leases. The leases are on a 5+5+5 year lease, with the second five-year term taking effect from August.

 

Blk 190 Toa Payoh - EDGEPROP SINGAPORE In the portfolio of 11 HDB shops, the 1,033 sq ft HDB shop at Toa Payoh Lorong 6 is the priciest on a psf basis $11,791 psf (Photo: CBRE)

 

A variety of other tenants have leased the remaining four HDB shops. An incoming owner-occupier can utilise the shops upon the expiry of the leases, says Lee. 

Separately, the 999-year leasehold strata retail shop at Peninsula Plaza faces St Andrew's Cathedral. It is accessible from the street level and adjacent to Capitol, linked underground to the City Hall MRT interchange station and neighbouring malls Raffles City, Funan and The Adelphi.

The shops are available for sale individually or collectively as a portfolio by an expression of interest (EOI) exercise that closes on Wednesday, May 10, at 3 pm.

 

Jurong West Street- EDGEPROP SINGAPORE A 1,516 sq ft, corner shophouse with dual frontage at Jurong West is on the market for $5.67 million ($3,735 psf) [Photo: CBRE]

 

Individuals will find the shops tenanted by 7-Eleven appealing as such units are only sometimes available for sale, notes Lee.

It is also rare for such a sizeable collection of HDB shops to come on the market. The last time it happened was in September 2018, when a stable of nine HDB shops was launched for sale by CBRE too. The price tag for the portfolio of nine HDB shops was $34 million or $2,548 psf based on the strata area of 13,343 sq ft.

According to Lee, one of the reasons these properties seldom surface on the market as there are only 8,500 such units across Singapore. As HDB discontinued the sale of such HDB shops in 1998, these units are only available via the resale market. "Supply for these properties is extremely limited, almost akin to conservation shophouses," he says.

 

Peninsula Plaza - EDGEPROP SINGAPORE

The 538 sq ft Peninsula Plaza unit has a price tag of $6.09 million ($11,320 psf) [Photo: Samuel Isaac Chua/EdgeProp Singapore)

 

Singapore has only 6,500 conservation shophouses, built between the early-1800s and mid-1900s.

HDB shops are open to locals and foreigners like other private commercial properties. However, for the two-storey HDB shophouses that come with living quarters on the upper floor, additional buyer's stamp duty (ABSD) is payable for the residential portion. (Find HDB flats for rent or sale with our Singapore HDB directory)

Foreigners must therefore pay a 30% ABSD for the residential part. "HDB shops, therefore, appeal more to local investors familiar with the suburban locations," says Lee. With more people working from home, even retail shops in HDB town centres are bustling across the week, not just on weekends, he adds.

Lee sees the Heartland Collection as offering investors "a rare opportunity to acquire a series of prime heartland HDB shophouses that would otherwise be challenging to accumulate".

HDB shops portfolio - EDGEPROP SINGAPORE

 

Check out the latest listings near Ang Mo KioHougangToa PayohJurong GatewayYishunPeninsula PlazaClementiTampinesToa Payoh MRT stationCity Hall MRT Interchange Station

 

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FoundOnEdgeProp: Affordable housing options for solo living

FoundOnEdgeProp: Affordable housing options for solo living

SINGAPORE (EDGEPROP) - According to data from the Department of Statistics Singapore (DOS), the number of one-person households is on the rise while there are fewer households with at least six persons.

In 2012, there were 109,500 single-person households, which surged to 217,300 households last year. On the flip side, there were 121,800 households with at least six persons in 2012, but this declined to 87,100 households last year.

The increase in single-person households has contributed to the decline in the average household size. According to DOS, the average household size in Singapore has declined from 3.5 persons in 2012 to 3.1 persons last year.

Listing single chart1 - EDGEPROP SINGAPORE

Data from DOS indicates that 77.2% of Singaporeans aged between 25 and 29 years old were single last year. The percentage drops to 38.6% for those between 30 and 34 years old and 23.2% for those who are 35 to 39 years old. The percentage drops further to 18.7% for Singaporeans who were 40 to 44 years old.

The percentage of single Singaporeans aged 30 to 34 years old inched down from 39.5% in 2012, but the percentage increased for the other age groups. The largest increase came from the 40 to 44 years age group, with singles accounting for 14.8% of them in 2012.

Singaporeans are also marrying later. According to the latest data from DOS, the median age at first marriage was 30.3 years for grooms and 28.7 years for brides in 2021. This was an increase from 2012 when the median ages for grooms and brides were 30.1 and 27.7 years, respectively.

Listing single chart2 - EDGEPROP SINGAPORE

As more single Singaporeans set up their own households, it becomes increasingly important to have affordable housing options available to them.

Budget 2023 brought some good news for singles who are first-time buyers of HDB flats. These singles will receive a grant of $40,000 (up from $25,000) if they buy a four-room or smaller HDB flat or a grant of $25,000 (up from $20,000) if they opt for a larger HDB flat. (Find HDB flats for rent or sale with our Singapore HDB directory)

However, the higher grant will only benefit singles who are at least 35 years old, as those who are younger are ineligible to buy an HDB flat. Eligible singles can only purchase resale HDB flats or two-room Build-To-Order flats. Additionally, singles are excluded from buying Prime Location Housing flats. 

At the time of writing, EdgeProp has over 20 unique listings for HDB flats with an asking price of $300,000 or below. Contrary to expectations, not all listings are for units outside the Central Region. One of the listings is for a two-room HDB flat at 50 Havelock Road, which is located in the Bukit Merah estate and the Central Region. 

The flat is extremely well-located, with a 24-hour NTUC FairPrice supermarket on the ground floor of the same block. It is also a stone's throw away from Beo Crescent Market and Food Centre, as well as being within walking distance to Tiong Bahru Plaza and Tiong Bahru MRT Station.

Listing single map1 - EDGEPROP SINGAPORE

The 462-sq ft unit has an asking price of $299,999 ($649 psf), which is higher than the average price of $552 psf for the block last year. There is no sales data available for the block this year. The asking price is also higher than the current average prices of $534 psf and $566 psf for two-room flats in Bukit Merah and the Central Region, respectively.

Listing single chart3 - EDGEPROP SINGAPORE

The age of the block and low potential for capital appreciation will make the flat a more suitable choice for elderly singles who plan to downgrade to a smaller unit, rather than young singles who are looking for their first home. Additionally, average price for the block has declined due to lease decay as the block was completed in 1973.

At the time of writing, there were four unique sales listings for HDB flats in the popular Toa Payoh housing estate.

The lowest asking price of $250,000 ($567 psf) is for a two-room HDB flat at 160 Lorong 1 Toa Payoh that was completed in 1972. The flat is a short walk from Toa Payoh town centre, Toa Payoh MRT Station, and Toa Payoh Bus Interchange. 

Listing single map2 - EDGEPROP SINGAPORE

The 441-sq ft flat is also located near Rajah Summit along Jalan Rajah, which was launched as a BTO project last month. No two-room flats are available in Rajah Summit but its 743-sq ft three-room and 1,001-sq ft four-room flats were launched at $326,000 to $443,000 and $459,000 to $631,000 respectively.

The second-lowest asking price among the listings for Toa Payoh is for a two-room 409-sq ft ground-floor flat in 120 Lorong 2 Toa Payoh. The unit has an asking price of $260,000 ($636 psf). 

A 461-sq ft two-room flat at 56 Lorong 4 Toa Payoh has a slightly higher asking price of $270,000 ($586 psf). However, the larger size of the unit at 56 Lorong 4 Toa Payoh makes it cheaper on a per square foot basis compared to the unit at 120 Lorong 2 Toa Payoh. 

Both units are located within a 1km radius of each other and are similar in age. The unit at 120 Lorong 2 Toa Payoh was completed in 1968, while the flat at 56 Lorong 4 Toa Payoh was completed a year earlier.

Listing single map3 - EDGEPROP SINGAPORE

The unit at 120 Lorong 2 Toa Payoh is within walking distance of Braddell MRT Station, Toa Payoh West Market and Hawker Centre, as well as a Giant Supermarket along Lorong 4 Toa Payoh. The flat at 56 Lorong 4 Toa Payoh is not within walking distance of any MRT station, but nearby amenities include Toa Payoh Vista Market and an NTUC FairPrice supermarket along Lorong 4 Toa Payoh.

The current average price for two-room HDB flats in Toa Payoh is $568 psf, which is higher than the asking price for the unit at 160 Lorong 1 Toa Payoh but lower than the other two listings in Toa Payoh. The current average prices for two-room flats in the Central Region and Singapore are $566 psf and $628 psf, respectively.

Listing single chart4 - EDGEPROP SINGAPORE

Among the listings for Toa Payoh above, the unit at 160 Lorong 1 Toa Payoh might be the best buy due to its lower than average asking price and close proximity to numerous amenities and public transport nodes.

There is also a listing for a three-room flat at 12 Lorong 7 Toa Payoh with an asking price of $299,000 ($421 psf). The 710-sq ft unit was completed in 1970. 

The main drawback of this unit will be the lack of nearby MRT stations. The nearest MRT station is Toa Payoh, and it is about 1.2km away. Some buyers may also dislike being located beside Toa Payoh Industrial Park.

However, the unit could be an affordable option for a couple with a young child. First Toa Payoh Primary School and Pei Chun Public School are within a 500m radius of the unit. Kim Keat Palm Market and Food Centre are located across the road. There are also two 24-hour supermarkets (Giant and Sheng Siong) within a 1km radius.

Listing single map4 - EDGEPROP SINGAPORE

At the time of writing, there was no available sales data for 12 Lorong 7 Toa Payoh this year. However, the average price for the block was $422 psf last year, which is on par with the asking price for the unit. The average price for the block is also trending below the average prices for three-room flats in Toa Payoh ($596 psf) and Singapore ($599 psf).

 

Listing single chart5 - EDGEPROP SINGAPORE

At the time of writing, there were four listings of condominium units with an asking price below $600,000. Singles who have a larger housing budget or are ineligible to buy HDB flats could consider these units.

Le Regal and Treasures @ G20 have listings with asking prices below $600,000 each. Both freehold condominiums are located in Geylang and are within a 500m radius of each other. Each development has less than 100 units and obtained Temporary Occupation Permit (TOP) in 2015.

Nearby amenities include a Sheng Siong supermarket along Geylang Road. However, the nearest MRT station – Aljunied - is not within walking distance.

Listing single map5 - EDGEPROP SINGAPORE

The listing for Le Regal is for a mid-floor 365-sq ft unit with one bedroom. The asking price of $588,000 ($1,611 psf) is much higher than the current average price of $980 psf for the development. 

Le Regal - EDGEPROP SINGAPORE

The listing for Treasures @ G20 is also for a one-bedroom unit, but it has a lower asking price of $550,000 ($1,310 psf) and a larger size of 420 sq ft. There are no sales transactions for Treasures @ G20 this year, but the average price for the development was $1,237 psf last year, which is lower than the asking price for the available unit.

Listing single chart6 - EDGEPROP SINGAPORE

The average price for freehold condominiums in Geylang has been on an upward trend, growing 33% since 2013 to reach $1,418 psf this year. The transformation of nearby Paya Lebar and the redevelopment of Paya Lebar Air Base (after it starts to relocate in the 2030s) will have spillover benefits for Geylang and boost housing prices in the area.

In this case, Treasures @ G20 appears to be a better buy because the unit is larger and has a lower asking price. Moreover, interested buyers may need to engage in less intense negotiation because the gap between the asking price for the unit and the overall average price for Treasures @ G20 is much narrower compared to the listing for Le Regal.

At the time of writing, there were two listings for Kovan Grandeur with asking prices of less than $600,000. Kovan Grandeur is a 74-unit development that obtained TOP in 2010.

The 99-year leasehold condominium is located within a 500m radius of Xinghua Primary School and Yuying Secondary School, as well as a Sheng Siong supermarket along Hougang Street 32. Kovan MRT Station, Heartland Mall Kovan, and Kovan Hougang Market and Food Centre are about 800m away.

Listing single map6 - EDGEPROP SINGAPORE

One of the listings for Kovan Grandeur is a 366-sq ft ground floor unit with an asking price of $588,000 ($1,607 psf). The other listing is for a high floor 388-sq ft unit with an asking price of $599,000 ($1,544 psf). Both listings have only one bedroom.

Kovan Grandeur - EDGEPROP SINGAPORE

Last year, the average price for Kovan Grandeur was $1,303 psf, which is lower than the asking prices for both listings. There is no sales data for the leasehold development this year. The asking prices for both listings are also higher than the current average price for leasehold condominiums in District 19 ($1,386 psf) and the North East Region ($1,317 psf). Keen buyers will have to engage in negotiations to close the gap between the asking prices and the average price for the development.

Listing single chart7 - EDGEPROP SINGAPORE

 

Check out the latest listings near Le Regal, Treasures @ G20, Kovan Grandeur, Havelock Road, Tiong Bahru MRT Station, Toa Payoh MRT Station, Braddell MRT Station, First Toa Payoh Primary School, Pei Chun Public School, Kovan MRT Station

 

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Row of six HDB shophouses in Toa Payoh for sale at $15.86 mil

Row of six HDB shophouses in Toa Payoh for sale at $15.86 mil

SINGAPORE (EDGEPROP) - A row of six HDB shophouses at 8 Lorong 7 Toa Payoh has been put up for sale in an expression of interest exercise, with a guide price of $15.86 million. (Find HDB flats for rent or sale with our Singapore HDB directory)

Read also: Ascendas REIT to acquire Philips APAC Center at Toa Payoh for $104.8 million

According to a press release on Nov 1 from Shophouse Collective, the appointed marketing agents and a group under PropNex Realty, the owners of these shophouses have banded together to collectively sell their properties.

These properties have a total built-in area of 8,501 sq ft. At the current guide price, this translates to $1,865 psf on the floor area. Four of the shophouses are adjoining units and each has a ground-floor strata area of 743 sq ft.

The neighbouring fifth unit is a corner unit with an additional ground-floor strata area of 1,506 sq ft. But it does not contain a second floor. Three units away from this corner unit is the sixth unit, which has a ground-floor strata area of 753 sq ft and 646 sq ft of living quarters on the second floor.

“Therefore, it is possible for a single buyer to subsequently combine the four adjoining shops and the corner adjacent unit into one larger retail shop or supermarket, subject to relevant authorities’ approval,” says Agnes Low, an agent with Shophouse Collective.

She adds that the properties also enjoy an estimated rental yield of about 3% based on the existing rental income.

All the commercial spaces on the ground floor are tenanted, as well as the residential units on the second floor. The existing tenants comprise a laundromat, a spa, a clinic, a pet grooming business, a tuition centre, and a traditional Chinese medicine business.

The second floor is accessible by a lift lobby that leads to a common corridor. This enables the residential spaces to be leased separately from the commercial spaces.

As the units are classified as commercial properties, foreign buyers are eligible to purchase them. The additional buyer’s stamp duty only applies to the second-floor residential spaces, which Shophouse Collective says comprises a “smaller percentage of the valuation”.

The expression of interest exercise for the sale of these properties will close on Dec 2.

 

Check out the latest listings near 8 Lorong 7 Toa Payoh

 

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Ascendas REIT to acquire Philips APAC Center at Toa Payoh for $104.8 million

Ascendas REIT to acquire Philips APAC Center at Toa Payoh for $104.8 million

SINGAPORE (EDGEPROP) - Ascendas REIT plans to acquire Philips APAC Center at 622 Lorong 1 Toa Payoh from Philips Electronics Singapore Pte Ltd, for $104.8 million.

Read also: HDB towns that buck the price trend

The independent market valuation of the property as of May 31 2022 is $111.5 million.

Philips APAC Centre was redeveloped in 2016 into the high-tech campus for Philips’ ASEAN Pacific headquarters and innovation centre. The six-storey building comprises laboratory, research and development, warehouse and ancillary office space over a gross floor area (GFA) of 37,975 sqm (408,763 sq ft).

Philips, a health technology company listed in Amsterdam and New York, and intends to leaseback more than two-thirds of the property’s GFA. The building will continue to serve as its APAC headquarters.  

 

“We’ve been operating in Singapore for more than 70 years and our commitment to Singapore and the region remains as strong as ever,” said Caroline Clarke, CEO and executive vice president, Philips ASEAN Pacific, in a statement. “The strategic divestments of the Signify and Domestic Appliances businesses were part of our transformation towards becoming a health technology leader, and the next logical step is to change our ownership of the APAC Center to reflect its multi-tenanted nature. This does not change our business operations in any way and Singapore will remain an important market for Philips and a thriving regional hub for our business, innovation and stakeholder collaboration.”

As at 30 June 2022, the property is leased to a total of four tenants, has an occupancy rate of 95.7% and a long WALE of 4.5 years.

According to Ascendas REIT, the first year net property income yield of the acquisition is around 7.2% and 6.8% pre-transaction costs and post-transaction costs respectively.

“The acquisition of APAC Center is a natural addition to the portfolio, strengthening our technology and biomedical customer base and improving the overall resilience of the portfolio with its high occupancy of 95.7% and long WALE [weighted average lease expiry] of 4.5 years,” says William Tay, executive director and CEO of the Ascendas REIT manager.

Upon completion of the proposed acquisition, Ascendas REIT will own 229 properties comprising 96 properties in Singapore, 36 properties in Australia, 48 properties in the United States and 49 properties in Europe.

According to Ascendas REIT, Singapore remains a key market for Ascendas Reit, making up 60% of its total assets under management.

The proposed acquisition is expected to complete in the second half of 2022, and will be funded by internal resources.

 

Check out the latest listings near Lorong 1 Toa Payoh

 

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HDB towns that buck the price trend

HDB towns that buck the price trend

SINGAPORE (EDGEPROP) - In Singapore, close to eight out of every 10 persons live in an HDB flat. Prices of HDB resale flats has increased steadily over the past two years. In 2021, the HDB resale price index jumped 12.7% y-o-y, which was the highest annual rate of growth in the past decade. Since the start of the Covid-19 pandemic, prices of public housing in Singapore have grown 18.4%.

Read also: ANALYSIS: Pros and cons of the Build-To-Order sites to be launched in May 2022

The rapid rate of price growth of HDB resale flats was due to the combination of a few factors. The supply chain disruption and lock-downs due to the pandemic had led to shortages of materials and manpower in the local construction industry. As a result, the construction of HDB flats was disrupted and delayed. Some HDB homebuyers who could not afford the long wait chose to buy completed HDB flats from the resale market.

This led to a sharp increase in demand for resale flats. About 31,000 HDB resale flats changed hands last year, 25.3% more than the previous year. That led to a spike in prices.

Despite the rising prices in public housing, is it still possible to find affordable HDB flats? The objective of this report is to examine where the cheapest HDB flats are located. (Find HDB flats for rent or sale with our Singapore HDB directory)

 

HDB BUKIT BATOK EAST TOH GUAN MRT JURONG EAST FLYOVER - EDGEPROP SINGAPORE

Bukit Batok is ranked 6th among the HDB towns with the most affordable 3-room flats, and 7th among the most affordable 4-room flats in terms of median prices over the past 12 months from July 2021 to June 2022 (Photo: Samuel Isaac Chua/EdgeProp Singapore) 

 

This study will identify the HDB towns with the lowest median transacted prices of four commonly traded HDB flat types. The median transacted prices are based on the available data for the period from July 2021 to June.

For each type of HDB flats examined in this study, the 10 towns with the lowest median transacted prices of each type of flats will be identified and ranked in ascending order.

Although there are seven types of HDB flats based on their sizes, this study will examine the prices of four of the most commonly traded HDB flats, namely the three-, four-, five-room and executive flats.

The total number of one-room, two-room flats and studio apartments only made up less than 4% of the entire population of resale flats island-wide. There is insufficient transaction data of these three types of smaller flats for this study. By contrast, the number of four-room flats alone is more than 10 times the combined number of these three types of flats.

 

Jurong West - EDGEPROP SINGAPORE

Jurong West (pictured) was among the top five towns with the cheapest three-room HDB resale flats in the time period of this study (Photo: Samuel Isaac Chua/EdgeProp Singapore)

 

Based on the median transacted resale prices of HDB flats, the top five towns with the cheapest three-room HDB resale flats in the time period of this study were Geylang, Toa Payoh, Jurong West, Woodlands and Bedok. The ranking of the towns with the cheapest three-room flats based on the median transacted prices in ascending order is shown in Table 1.

The lowest median prices of resale for three-room flats was in Geylang at $305,000 while the median price of the seventh to tenth towns with the lowest prices of such flats ranged from $345,000 to $348,000.

Four of the 10 towns with the lowest median prices of three-room flats were HDB mature estates. They were Geylang, Toa Payoh, Bedok and Ang Mo Kio.

 

TABLE 1 - EDGEPROP SINGAPORE

Source: ERA Research & Consultancy, HDB

 

It may seem unusual for these popular mature estates to offer some of the cheapest HDB three-room flats in Singapore. Toa Payoh, Ang Mo Kio and Geylang are mature estates located near the city area. Toa Payoh and Ang Mo Kio are centrally located while Geylang is only a 10-minute drive to the CBD.

A key reason for the relatively cheap three-room HDB resale flats in these four mature towns was the age of these flats. The median age of the three-room flats in these mature towns were older than the median age of the three-room flats in the other six non-mature towns in the list.

The median year of lease commencement of the transacted three-room flats in these four mature estates were before 1981, while the median year of commencement of the lease in the non-mature towns started after 1981.

 

Toa Payoh is one of the four mature HDB estates with the lowest median prices of three-room flats (Photo: Samuel Isaac Chua/EdgeProp Singapore)

 

The HDB town with the lowest median price of four-room HDB flats was Woodlands at $435,944. It was followed by Sembawang, Jurong West, Yishun and Jurong East in the second to fifth position respectively, based on the ranking of the towns with the cheapest median prices of four-room flats in ascending order.

 

TABLE 2 - EDGEPROP SINGAPORE

Source: ERA Research & Consultancy, HDB

 

Among the 10 towns with the cheapest median transacted prices of four-room flats, Bedok was the only mature HDB estate. Not surprising, the median age of the four-room flats in Bedok was relatively older than the others. The median price of the seventh to tenth towns with the lowest prices of such flats ranged from $460,000 to $475,000.

The median price of four-room HDB flats island-wide was $490,000. The median prices of four-room flats in these 10 towns were still lower than the island-wide median price for such flats, illustrating the affordability of such flats in these towns.

 

The HDB town with the lowest median price of four-room HDB flats was Woodlands at $435,944 (Photo: The Edge Singapore)

 

Sembawang was ranked first among the HDB towns with the most affordable five-room flats at $510,000, which was 13.6% cheaper than the island-wide median price of $590,000 for such flats.

Among the 10 HDB towns with the lowest median prices for five-room flats, Pasir Ris was the only mature HDB town and it is ranked in the eighth position.

 

TABLE 3 - EDGEPROP SINGAPORE

Source: ERA Research & Consultancy, HDB

 

The median prices of the five-room flats in the top eight towns were still cheaper than the islandwide median price of this flat type, which stood at $590,000. This indicates that homebuyers have a more than 50% chance of finding five-room flats in these eight towns that are cheaper than the islandwide median price.

At the median price of $600,000, Punggol was ranked last among the ten most affordable HDB towns. This is because generally, the five-room flats in Punggol are the newest among similar flats in the list of the 10 towns.

 

HDB PUNGGOL - EDGEPROP SINGAPORE

The five-room flats in Punggol are among the newest flats in the list of the 10 towns (Photo: Samuel Isaac Chua/EdgeProp Singapore)

 

Executive flats are the largest type of HDB flats and hence, could be counted as the most expensive type of public housing flats. Currently, there are about 65,000 such flats, making up 6% of the total population of HDB flats in Singapore.

Over time, executive flats will gradually made up a smaller proportion of the total stock of flats island-wide. Such flats are the rarest among the four types of flats in this report. They are a favourite among homebuyers who prefer spacious homes.

 

TABLE 4 - EDGEPROP SINGAPORE

Source: ERA Research & Consultancy, HDB

 

The town with the lowest median price of transacted executive flats was Sembawang at $589,000. Ranked from the second to fifth positions for the cheapest median prices of executive flats were Jurong West, Punggol, Sengkang and Choa Chu Kang respectively.

The median transacted price of executive flats in Singapore was $718,000 in the last twelve months. Attesting to the high prices of executive flats, the median prices of such flats in towns that were ranked in the ninth position onwards were higher than the island-wide median price of this flat type, illustrating such flats are not the most affordable public housing in Singapore.

 

Choa Chu Kang - EDGEPROP SINGAPORE

Choa Chu Kang (pictured) is among the towns with the lowest median price for executive flats (Photo: Samuel Isaac Chua/EdgeProp Singapore)

 

An analysis of the data reveal some interesting results. Table 5 shows the ranking of each type of flats in the respective HDB towns.

If the HDB town is among the 10 towns with the lowest median prices of a particular flat type, its ranking for that flat type will be displayed in Table 5.

 

TABLE 5 - EDGEPROP SINGAPORE Source: ERA Research & Consultancy, HDB

 

First, the most affordable bigger flats, such as the four-room, five-room and executive flats could be found in Sembawang. This town in the north region occupied the first position in the ranking of lowest median prices for five-room and executive flats, and the second position for four-room flats. Therefore, homebuyers who are looking for affordable bigger flats should explore the Sembawang resale market.

Second, three towns appeared in the top 10 ranking for the lowest median transacted prices for all four types of flats. They were Jurong West, Woodlands and Yishun. This shows that homebuyers could have a better chance to find affordable resale flats of different sizes in these three towns.

Third, among the three towns mentioned above, Jurong West had the most affordable flats of different sizes as it was ranked within the top three lowest median prices for all the four flat types. This means that house hunters could have even more opportunities to buy the cheapest HDB flats of various sizes in Jurong West than in the other towns.

Fourth, Ang Mo Kio only appeared once in the top 10 list which the median price of the three-room flats ranked in the seventh position. This means that other than the three-room flats in Ang Mo Kio, all the other types of flats are not the most affordable.

 

Ang Mo Kio and Bedok - EDGEPROP SINGAPORE

Ang Mo Kio and Bedok (pictured) had relatively low median prices for three- and four-room flats, while Pasir Ris was ranked eighth and ninth in terms of five-room and executive flats respectively (Photo: Albert Chua/EdgeProp Singapore)

 

Ang Mo Kio and Bedok had relatively low median prices for three- and four-room flats, while Pasir Ris was ranked eighth and ninth in terms of five-room and executive flats respectively.

These three mature towns were not ranked within the top five cheapest median prices for all the four flat types, illustrating that they are not the towns with the most affordable flats in Singapore. However, homebuyers who are hunting for affordable HDB flats in mature estates could search the resale market in these three towns.

 

Although HDB flats are the most affordable housing in Singapore, the prices of such real estate can differ widely depending on the location, age and size of the flats.

Typically, the cheaper flats could be found in the non-mature estates located further away from the city centre. However, it is still possible to find affordable flats in centrally located mature estates if the buyer does not mind that such flats are usually older.

 

Nicholas Mak - EDGEPROP SINGAPORE

Nicholas Mak is head of research and consultancy department at ERA Realty Network (Photo: ERA)

 

Check out the latest listings near Toa Payoh, Bedok, Jurong West, Bukit Batok, Geylang, Woodlands, Ang Mo Kio, Sembawang, Pasir Ris, Punggol, Yishun

 

 

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ANALYSIS: Pros and cons of the Build-To-Order sites to be launched in May 2022

ANALYSIS: Pros and cons of the Build-To-Order sites to be launched in May 2022

SINGAPORE (EDGEPROP) - There is strong demand for Build-To-Order (BTO) flats as seen in the 24,748 applications received for 3,953 BTO flats launched in February 2022. This translates to an application rate of 6.3; up from 4.4 achieved during the BTO exercise in November 2021.

Of the six sites launched in February, King George’s Heights and Dakota Crest were the most over-subscribed. Both are in mature estates and King George’s Heights is the second Prime Location Public Housing (PLH) site. Interestingly, the application rate for Dakota Crest (17.4) is higher than King George’s Heights (13.3) despite not being PLH and launching more expensive 4-room flats. Launch prices for 3-room flats were similar for both sites.

The resale HDB market enjoys some spillover benefits from the buoyant BTO market because some unsuccessful BTO applicants divert their attention to the resale market. Additionally, some buyers change their buy intent from suburban condominiums to HDB resale flats after the recent cooling measures. The increased demand gave a boost to HDB resale prices which is now at a record high of $512 psf; significantly higher than the previous peak of $469 psf in 2013. BTO Graph1 - EDGEPROP SINGAPOREHighly anticipated

The BTO exercise in May 2022 is closely watched because of the bumper crop of flats offered in the central region. Of the 5,330 flats across six sites that will be launched, 3,680 flats across four sites are in a central location. The two sites in Bukit Merah are also expected to be under the PLH model.

The two sites in Bukit Merah with 2,440 flats are expected to see the strongest demand due to their excellent location and proximity to an MRT station.

However, potential buyers should note that both sites are expected to be launched under the PLH model which means a longer Minimum Occupation Period (MOP) of 10 years instead of the usual five years. The longer MOP could make the flats less suitable for buyers who plan to sell their flats in the near future to fund their retirement or buy a larger home to accommodate their expanding family.

In addition, first buyers of such flats will have to refund a percentage of the sale price to HDB upon sale of the flat. This means that owners will have to sell their flat at a higher price to account for the refund or contend with a lower profit. (Find HDB flats for rent or sale with our Singapore HDB directory)

Demand for surrounding non-PLH flats could get a boost when unsuccessful applicants turn to the resale market. Despite the higher prices and lease decay, the resale market is worth considering because there is no construction delay as the flats are already built. Buyers can consider Telok Blangah Parcview along Telok Blangah Street 31 which achieved MOP last year or Toa Payoh Apex along Toa Payoh East which will achieve MOP in July. 

Unsuccessful applicants with less financial means and no urgent need for a roof over their heads will be glad to know that there will be another 1,500 BTO flats in Alexandra. However, HDB has yet to announce the launch date. 

 BTO Map - EDGEPROP SINGAPORE

BTO Map - EDGEPROP SINGAPORE

BTO Table1 - EDGEPROP SINGAPORE

BTO Map3 - EDGEPROP SINGAPORE

BTO Table2 - EDGEPROP SINGAPORE

BTO Map4 - EDGEPROP SINGAPORE

BTO Table3 - EDGEPROP SINGAPORE

BTO Graph2 - EDGEPROP SINGAPORE

Over the last 10 years, prices for resale HDB flats in Bukit Merah grew the most (13%) with Toa Payoh bringing up the rear (8%). Despite flats in Queenstown having the highest average price of $675 psf in 2022, it is actually a decline from $698 psf in 2021. Prices for Bukit Merah and Toa Payoh increased during the same time period. It is noteworthy that the current average prices for all three towns are significantly higher than the islandwide average of $512 psf.

Taking reference from current resale prices, the BTO flats in Toa Payoh are likely to be launched at lower prices compared to the other three sites; making it most suitable for buyers who are keen on a central location but have a modest budget. However, buyers will face intense competitive for the small number of launched flats in Toa Payoh.

Queenstown would be a good choice for families with young children because of the numerous reputable schools in the neighbourhood. It will also appeal to young couples who enjoy the bohemian vibe of nearby Holland Village. Buyers who work in one-north will also appreciate the short commute. However, families with many children will find it a tight squeeze as only 3 and 4-room flats are launched.

The two sites in Bukit Merah are likely to be launched under the PLH model and hence expected to be the most expensive. Hence, Bukit Merah is a good choice only if buyers have sufficient budget and have no plans to sell in the near future.

Tiong Bahru Market - EDGEPROP SINGAPORETiong Bahru Market (Picture: Samuel Isaac Chua/EdgeProp Singapore)

 

The west region of Singapore is gaining popularity with Jurong East designated as Singapore’s second CBD. The completion of four huge malls near Jurong East MRT station; namely Westgate, JEM, JCube and IMM, added to the attractiveness of the region.BTO Map5 - EDGEPROP SINGAPORE

BTO Table4 - EDGEPROP SINGAPORE

BTO Graph3 - EDGEPROP SINGAPORE

 

Buyers with a tight budget should consider Jurong West. Resale HDB prices for the town is consistently lower than the west region and the whole of Singapore. Jurong West also has the lowest average price for resale flats among all towns in this BTO exercise. Despite its lower rate of price growth, owners with an eye towards investment should not dismiss Jurong West because it will become more important in tandem with the growth of Jurong East as the second CBD. The opening of the Jurong Region Line in phases from 2027 will also improve connectivity. 

Nature-lovers should give this site serious consideration because it is next to Jurong Lake Gardens; offering buyers the opportunity to own a home with unblocked views of greenery. The site is also ideal for families with young children because it is near many schools. Buyers working in Jurong East or the nearby industrial area will appreciate the short commute.

Yishun has the undeserved reputation of being the town where weird things just happen. However, buyers should not let that deter them from considering Yishun. The BTO site is near many amenities such as malls and schools. Residents can also go for a jog at the nearby Yishun Pond.

The site to be launched in the May BTO exercise is nearer to an MRT station than the nearby site launched in February. Taking reference from the BTO exercise in February, 4 and 5-room flats were launched at prices (excluding grant) starting from $270,000 and $385,000 respectively. The flats at Yishun for the current BTO exercise are expected to be launched at similar affordable price levels.

BTO Map6 - EDGEPROP SINGAPORE

BTO Table5 - EDGEPROP SINGAPORE

BTO Graph4 - EDGEPROP SINGAPORE

During the last 10 years, HDB resale prices for Yishun grew 15%; a tad faster than Woodlands (14%) but slower than Sembawang (17%). Yishun takes the middle ground again when it comes to current average price; providing buyers an affordable choice with some growth potential. 

Northpoint City - EDGEPROP SINGAPORENorthpoint City (Picture: Samuel Isaac Chua/EdgeProp Singapore)

Those who are unsuccessful in the May BTO exercise should turn their sights to the BTO exercise in August when 6,300 to 6,800 flats will be launched across six sites. At the time of writing, HDB has yet to announce the details for each site.

There is a site each in Bukit Merah and Queenstown. As per the BTO exercise in May, only 3 and 4-room flats are available; making them less suitable for large families. However, Ang Mo Kio will have 3-Gen flats which should interest large families.

The west region also has two sites. The Jurong East site is likely to be near Singapore’s second CBD so it might appeal to those working in area. The lack of 5-room flats in the Jurong East site might encourage large families to consider Choa Chu Kang which is further from the CBD but will have 5-room flats.

For the north region, there is a site in Woodlands. The average price of resale HDB flats in Woodlands is lower than its counterparts in the north so the BTO flats is likely to be very affordable. There is also potential for price growth as Woodlands is slated to be a regional hub.

 

Check out the latest listings near Toa Payoh, Queenstown, Bukit Merah, Holland Village, Jurong West, Jurong East, Yishun, Jurong East MRT station

 

 

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ERA: From ‘mega agency’ to full-fledged real estate services provider

ERA: From ‘mega agency’ to full-fledged real estate services provider

SINGAPORE (EDGEPROP) - Once a gaudy orange and yellow, ERA APAC Centre’s facade is now a sleek white. Solar panels have just been installed on the rooftop to power some of the building’s energy needs. Refurbishments are underway at the four-storey rectangular block that houses the headquarters of one of Singapore’s biggest real estate agencies, ERA Singapore and its Singapore-listed parent company APAC Realty.

Read also: Marcus Chu to step up as APAC Realty CEO

The building had begun life as Toa Payoh Cinema in 1972 and was then turned into Toa Payoh Entertainment Centre in the late 1990s. The cinema had shuttered in late 2010 and a year later, Hersing Corp purchased the building, which was renamed Hersing Centre and later ERA Centre. In 2018, APAC Realty purchased it for $72.8 million and renamed it ERA APAC Centre.

 

ERA APAC Centre - EDGEPROP SINGAPORE

Renovations are underway at ERA APAC Centre – once upon a time Toa Payoh Cinema - with new solar panels installed, and a Green Mark certification in the offing (Photo: Samuel Isaac Chua/EdgeProp Singapore)

 

Late last year, after its restaurant tenant exited from its first level space, ERA converted it into a new office space for its agents’ use. The unit next door that had previously been occupied by a beauty salon is now a training room. Hence, ERA has chosen adaptive reuse of its building rather than redeveloping it. Its efforts have been recognised, with the building to be conferred a Green Mark certification by the Building and Construction Authority. “We’re in the real estate business and we believe in adding value to our own asset,” says Marcus Chu, CEO of ERA Singapore and APAC Realty.

The lobby area on the first level of APAC Centre was renovated last year. It now has a co-working space, a lounge area, booths for video conference calls, a soundproof podcast room and a photo booth. “These are value-added services for our agents,” explains Chu.

 

ERA APAC CENTRE PODCAST BOOTH - EDGEPROP SINGAPORE

The soundproof podcast booth available for agents’ use (Photo: Samuel Isaac Chua/EdgeProp Singapore)

 

ERA is celebrating its 40th anniversary this year, having been in Singapore since 1982. It’s a momentous year for Chu too. He became CEO of ERA Singapore and APAC Realty last July. He joined ERA as a sales associate in 1996, vaulted to senior vice-president in 2005 and skyrocketed to the COO position in 2013 before landing on the CEO seat last July.

Chu is not content with just being a “mega agency”, which in his definition, is an agency with a sales force of at least 5,000. ERA has long passed that benchmark and now has 8,299 agents as at Jan 28, based on the Council for Estate Agencies public register. Across Asia Pacific, APAC Realty has more than 20,300 agents in 10 countries. “This has surpassed our vision in 2021,” says Chu.

He wants to increase ERA’s sales force in Singapore to over 10,000 and more than 25,000 across the region by 2024. APAC Realty has established a presence in 10 countries. While the ERA companies in Indonesia, Malaysia, Thailand and Vietnam are subsidiaries, those in Cambodia, China, Japan, South Korea and Taiwan operate as franchisees.

 

ERA APAC CENTRE - EDGEPROP SINGAPORE

Co-working space includes soundproof booths for video conferencing on the first level (Photo: Samuel Isaac Chua/EdgeProp Singapore)

 

ERA’s market share of the private housing resale market in Singapore stood at 45% last year, estimates Chu. The firm brokered 43% of the resale transactions in the HDB segment last year. Its market share of new home sales was one-third (33%).

Over the next three years from 2022 to 2024, ERA aims to grow its presence in the resale market for both HDB and private homes to 50%. The target he wants to achieve for new home sales is 40%. ERA wants to grow its share in the private leasing market to 30% from 23% last year. (Find HDB flats for rent or sale with our Singapore HDB directory)

Before Covid, Singapore contributed to 80% of APAC Realty’s revenue and profit, with the other markets in the region making up 20%. Last year, Singapore contributed to more than 95% of APAC Realty’s revenue and profit. “Covid had affected the overseas markets quite severely, while Singapore has adapted well to digitalisation,” observes Chu.  

 

ERA APAC CENTRE CO WORKING SPACE - EDGEPROP SINGAPORE

Vending machines at the pantry area of the co-working space (Photo: Samuel Isaac Chua/EdgeProp Singapore)

 

Although the regional markets’ contribution was less than 5% last year, Chu believes these markets “hold great promise and untapped potential”. He believes that the overall revenue contribution should be enhanced with further overseas expansion once vaccinated travel lanes are expanded. “We have franchise rights for 17 countries, so we will expand beyond the 10 existing countries,” he says.  

 

Chu’s ambition is to turn ERA into “a full-fledged, professional real estate services provider”. As such, he recently launched ERA’s new capital markets and investment sales business, headed by Steven Tan, its new managing director. Tan was formerly executive director of capital markets and investment sales at Colliers International.

Tan didn’t come alone. He brought three other colleagues, namely Donald Goh, Tay Liam Hiap and Desmond Lim. Collectively, they have about 100 years’ worth of experience and have transacted over $4.7 billion worth of deals.

 

STEVEN TAN - EDGEPROP SINGAPORE

Tan: It’s a good time for us to set up this capital markets department now (Photo: Samuel Isaac Chua/EdgeProp Singapore)

 

“In the past, collective sales were done by our agents, but we never had a dedicated team that focused on it,” says Chu. “We have decided to take a professional approach, and have our own corporate team.”

Besides collective sales, the capital markets team will handle other “big ticket” deals, ranging from the sale of a row of shophouses to hotels, industrial buildings or office blocks. This allows ERA to expand beyond its core market of homeowners, investors and developers. It will now be able to tap institutional investors including REITs, private equity firms, real estate funds, family offices and ultra-high net worth investors.

Following the recent property cooling measures on Dec 16, more investors have switched their attention to industrial and commercial properties as these assets are not subject to additional buyer’s stamp duty (ABSD). “It’s a good time for us to set up this capital markets department,” says Tan. (Find Singapore commercial properties with our commercial directory)

 

INDUSTRIAL BUILDINGS NEAR INTERNATIONAL ROAD - EDGEPROP SINGAPORE

Besides collective sales, the capital markets team will handle other “big ticket” deals, ranging from the sale of a row of shophouses to hotels, industrial buildings or office blocks (Photo: Samuel Isaac Chua/EdgeProp Singapore)

 

A real estate veteran with almost 30 years’ experience, Tan has brokered more than $1.8 billion of investment properties. Recent deals he brokered included the sale of a freehold industrial building at 190 Macpherson Road for $88 million in 2020. His other notable deals included the collective sale of an apartment and commercial block on Phoenix Road for $42.6 million to Qingjian Realty in 2019, which will be redeveloped into the 105-unit The Arden. Tan also brokered the sale of a food factory at 200 Pandan Loop for $56.8 million last year.

Even though the ABSD for developers buying residential sites has been increased to 35% from Dec 16, “the collective sale market isn’t totally dead”, says Tan. “Developers are still interested in the small sites in the $100 million to $200 million range. They still need land as the unsold stock is at an all-time low. Larger collective sale sites above $500 million, however, could be a challenge.”

He expects developer interest in collective sale sites in the Rest of Central Region (RCR) and Outside Central Region (OCR) to remain. “Developers need to reassess their risks given higher ABSD and construction costs before they put in a bid for a site,” he adds.

 

Team members of ERA - EDGEPROP SINGAPORE

The new capital markets and investment sales department at ERA include (left to right) Donald Goh, Steven Tan, Tay Liam Hiap and Desmond Lim (Credit: ERA)

 

Collective sales in the Core Central Region (CCR) may not take off as home buyers in this high-end segment tend to be foreigners or property investors with multiple properties already, both of whom have been slapped with higher ABSD, he cautions.

Joining Tan at ERA is Tay, the new managing director of investment sales. He is said to have brokered $1.5 billion worth of deals, including the collective sales of City Tower, Flamingo Valley, Fairways Condominium and Pacific Plaza. Tay is also a licensed valuer.

Goh, the new director of capital markets and investment sales, is said to have a wide-ranging experience from commercial and industrial properties to residential developments including Good Class Bungalows. Lim, the newly appointed director of capital markets and investment sales, workplace & culture, will be handling commercial and industrial leasing, which is complementary to capital markets, according to Tan.

 

Team members of ERA Auction Sales Department - EDGEPROP SINGAPORE

ERA's auction and sales department (left to right): Yvonne Lau, Alison Lee, Carol Quek and Irene Song (Credit: ERA)

 

Prior to capital markets and investment sales, ERA had also entered the auction market in 2016 and imported a team from Colliers International. Since then, the auction department’s business has increased from $12.94 million in 2016 to $70.79 million in 2020.

During the pandemic, virtual property auctions were conducted by streaming on Facebook Live. Its first virtual property auction featured a landed property that received multiple bids and was sold at its guide price of $3.4 million. With the combination of property cooling measures, rising interest rates and expiry of relief measures for borrowers, ERA’s Chu foresees more mortgagee sales to surface at auctions this year.

 

More than growing headcount, Chu wants to increase the per capita performance of his agents. “It’s about investing more in training and development to build the competencies of our agents so they can provide a positive transaction experience for their clients,” he says.

 

ERA APAC CENTRE AGENT PHOTO BOOTH - EDGEPROP SINGAPORE

Photo booth for agents on the first level of ERA APAC Centre (Photo: Samuel Isaac Chua/EdgeProp Singapore)

 

Chu is well aware of the shift in market dynamics. “A new generation of home buyers has entered the market: those born in the 1990s, and who are buying their first property,” he observes.

ERA has therefore been rolling out initiatives to empower its agents to cater to this new generation of buyers. He is introducing “social media hacks”, content creators who have gained a big following on Instagram or TikTok, to teach his agents how to leverage these social media platforms and tools. “We have to move with the changing times,” says Chu. “It’s important to track how consumers interact in social media and digital platforms.”

Last August, the company rolled out RealtyWatch, an app for consumers offering both property and financial tools, that will allow them to access property market information, the latest mortgage rates and new project launches on the market. “We want to connect ERA agents with consumers,” says Chu. “Agents can host their existing and prospective clients on the platform, which acts as a digital customer relations management system.”

 

MARCUS CHU - EDGEPROP SINGAPOREChu: The ability to provide full-fledged services is very important to us. In the past, collective sales were done by our agents, but we never had a dedicated team that focused on it. We have decided to take a professional approach, and have our own corporate team (Photo: Samuel Isaac Chua/EdgeProp Singapore)

 

In an era where consumers already have access to market information online, Chu believes that ERA can differentiate itself through its digital tools, such as iERA, which offers analytical tools and insights, so agents can offer home buyers options based on their budget and preferred locations. Another app, Robo Advisor, empowers even new agents to generate different investment options that meet their clients’ needs.

A New Launch app for agents will include information on available units for sale, a daily update on the number of transactions and the commission rate. The app also allows for project comparisons as well as past transactions dating back to the year 2000. He intends to roll out another app for landed property, which includes URA planning decisions and plot dimensions.  

He believes that the expansion of ERA’s suite of apps and tools will go towards building the firm into a real estate firm with “full-fledged services”.

 

Check out the latest listings near The Arden

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5-room DBSS flat at Toa Payoh sold for record $1.238M

5-room DBSS flat at Toa Payoh sold for record $1.238M

SINGAPORE (EDGEPROP) - A 5-room DBSS flat at Block 138A Lorong 1A Toa Payoh measuring 1,227 sq ft, was transacted for $1,238,000 ($1,009 psf) last week, the highest recorded transaction for public housing in Toa Payoh.  This transaction also broke the psychological $1,000 psf mark for a HDB unit for the very first time in this town.

DBSS flat - EDGEPROP SINGAPORE

Souce: Google Map

The high-floor unit located between 40th and 42th storey is part of The Peak @ Toa Payoh, a DBSS (Design, Build and Sell Scheme) development launched in 2009 and was completed in 2012.

The previous recorded high for this development was for a 1,259 sq ft unit that changed hands in June 2021 for $1,160,000 ($921 psf).  The unit is located between 37th and 39th storey at Block 139A.  

The Peak @ Toa Payoh - EDGEPROP SINGAPORE

5-room units at The Peak @ Toa Payoh can command a rental rate between $3,000 - $3,400 per month, based on recent transactions.  This translates to a gross rental yield of approximately 3.3%.

rental transactions - EDGEPROP SINGAPORE

The DBSS was first introduced by then Minister for National Development Mah Bow Tan in 2005 to involve private developers in the building of public housing and to offer buyers with a wider variety of housing. 

Because of their better design and finishes, DBSS projects usually command a higher premium than built-to-order and resale HDB flats. The sale of DBSS sites was discontinued in 2011, following a public outcry over the hefty price tags.

Click to search for listings for sale or rent at The Peak @ Toa Payoh

Click to search for listings for sale or rent for HDBs at Toa Payoh

Click here to look at past transactions for The Peak @ Toa Payoh (Block 138A, Block 138B, Block 138C, Block 139A, Block 139B)

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The complete list of million-dollar HDBs and where to find them

The complete list of million-dollar HDBs and where to find them

SINGAPORE (EDGEPROP) - Since 2020, there have been 136 million-dollar HDBs being transacted (up till Mar’21).  Although this is still a relatively small portion (0.4%) of the entire market, the numbers have been increasing.  In Q1’2021 alone, there were 53 million-dollar HDBs being transacted, compared to only 14 in Q1’2020 and 17 in Q1’2019.

Download our latest Q1’2021 HDB Report for a full assessment of the HDB resale market.

HDBs - EDGEPROP SINGAPORE

Source: EdgeProp Shortlist Tool

The majority of these are located in the central districts, with Pinnacle @ Duxton in Tanjong Pagar contributing 36 units, to the million-dollar list in Q1’2021.  The rest are transacted in 10 other towns, namely Queenstown (23), Bishan (21), Bukit Merah (16), Toa Payoh (15), Kallang/Whampoa (8), Clementi (7), Bukit Timah (6), Ang Mo Kio (2), followed by Serangoon and Geyland with one each.

Beyond the convenience of being centrally located, size is the other major contributing factor to the rise in these million-dollar HDBs.  As the work-from-home phenomena is likely to continue for the foreseeable future, the demand for space to serve the hybrid function of working and living will skyrocket.  HDBs are probably the least expensive asset class to serve this purpose.  For example, a 5-room HDB in Tanjong Pagar costs $850 psf on average.  A similar size condo at nearby Icon, a leasehold condo completed in 2002, will cost you an average of $1,650 psf, almost twice the price.  The same scenario can be seen in other towns.

The delays in the completion of projects, public or private, due to the shortage of workers in the construction space, will also nudge property seekers to venture into the secondary markets and hunt for completed HDBs.

The combination of convenience, size, relative affordability and urgency are the key reasons behind the rise of million-dollar HDBs.  And this trend will likely continue in the coming months.  Besides, if you have a $1M budget today, needs at least 1,000 sqft of space to occupy soon in a somewhat central location, what other options are there?

Download our latest Q1’2021 HDB Report for a full assessment of the HDB resale market.

The Complete List of Million-dollar HDBs for Q1'2021

Address Town Unit Property Type Model Area Sqft Transacted Price Unit Price PSF
273B Bishan Street 24 Bishan 28 to 30 5-Room Dbss 1291  $              1,220,000  $                         945
273A Bishan Street 24 Bishan 25 to 27 5-Room Dbss 1291  $              1,210,000  $                         937
2 Toh Yi Drive Bukit Timah 13 to 15 Executive Maisonette 1657  $              1,210,000  $                         730
275A Bishan Street 24 Bishan 34 to 36 5-Room Dbss 1291  $              1,160,000  $                         899
150 Mei Ling Street Queenstown 04 to 06 Executive Maisonette 1582  $              1,138,800  $                         720
1B Cantonment Road Central Area 34 to 36 5-Room Type S2 1162  $              1,138,000  $                         979
1D Cantonment Road Central Area 46 to 48 5-Room Type S2 1130  $              1,128,000  $                         998
3 Toh Yi Drive Bukit Timah 10 to 12 Executive Maisonette 1571  $              1,128,000  $                         718
8 Boon Keng Road Kallang/Whampoa 31 to 33 5-Room Dbss 1259  $              1,125,000  $                         894
139B Lorong 1A Toa Payoh Toa Payoh 37 to 39 5-Room Dbss 1259  $              1,122,000  $                         891
1B Cantonment Road Central Area 46 to 48 4-Room Type S1 1022  $              1,120,000  $                     1,096
1E Cantonment Road Central Area 43 to 45 5-Room Type S2 1130  $              1,120,000  $                         991
126A Kim Tian Road Bukit Merah 22 to 24 5-Room Improved 1216  $              1,100,000  $                         905
440C Clementi Avenue 3 Clementi 34 to 36 5-Room Improved 1205  $              1,095,000  $                         909
138A Lorong 1A Toa Payoh Toa Payoh 34 to 36 5-Room Dbss 1227  $              1,095,000  $                         892
446 Bright Hill Drive Bishan 07 to 09 Executive Maisonette 2615  $              1,092,888  $                         418
440C Clementi Avenue 3 Clementi 31 to 33 5-Room Improved 1205  $              1,080,000  $                         896
7 Boon Keng Road Kallang/Whampoa 19 to 21 5-Room Dbss 1280  $              1,080,000  $                         844
1G Cantonment Road Central Area 37 to 39 5-Room Type S2 1151  $              1,068,888  $                         929
8A Upper Boon Keng Road Kallang/Whampoa 16 to 18 5-Room Premium Apartment 1248  $              1,068,000  $                         856
86 Dawson Road Queenstown 34 to 36 5-Room Premium Apartment 1119  $              1,060,000  $                         947
93 Dawson Road Queenstown 04 to 06 5-Room Premium Apartment 1313  $              1,060,000  $                         807
139B Lorong 1A Toa Payoh Toa Payoh 34 to 36 5-Room Dbss 1259  $              1,055,000  $                         838
1A Cantonment Road Central Area 16 to 18 5-Room Type S2 1162  $              1,050,000  $                         904
22 Ghim Moh Link Queenstown 40 to 42 5-Room Improved 1216  $              1,050,000  $                         863
138C Lorong 1A Toa Payoh Toa Payoh 31 to 33 5-Room Dbss 1227  $              1,050,000  $                         856
139B Lorong 1A Toa Payoh Toa Payoh 19 to 21 5-Room Dbss 1227  $              1,050,000  $                         856
150 Mei Ling Street Queenstown 13 to 15 Executive Maisonette 1571  $              1,050,000  $                         668
6 Toh Yi Drive Bukit Timah 04 to 06 Executive Maisonette 1571  $              1,050,000  $                         668
138C Lorong 1A Toa Payoh Toa Payoh 31 to 33 5-Room Dbss 1227  $              1,048,888  $                         855
139B Lorong 1A Toa Payoh Toa Payoh 31 to 33 5-Room Dbss 1227  $              1,045,000  $                         852
139A Lorong 1A Toa Payoh Toa Payoh 31 to 33 5-Room Dbss 1259  $              1,045,000  $                         830
275A Bishan Street 24 Bishan 13 to 15 5-Room Dbss 1291  $              1,045,000  $                         809
311C Clementi Avenue 4 Clementi 37 to 39 5-Room Dbss 1130  $              1,038,000  $                         919
2 Toh Yi Drive Bukit Timah 10 to 12 Executive Maisonette 1571  $              1,038,000  $                         661
1G Cantonment Road Central Area 19 to 21 5-Room Type S2 1140  $              1,033,000  $                         906
1G Cantonment Road Central Area 46 to 48 4-Room Type S1 1001  $              1,032,000  $                     1,031
50 Commonwealth Drive Queenstown 13 to 15 5-Room Improved 1227  $              1,030,000  $                         839
273B Bishan Street 24 Bishan 10 to 12 5-Room Dbss 1291  $              1,030,000  $                         798
1A Cantonment Road Central Area 37 to 39 4-Room Type S1 1022  $              1,028,000  $                     1,006
134 Bishan Street 12 Bishan 01 to 03 Executive Apartment 1550  $              1,028,000  $                         663
18D Holland Drive Queenstown 19 to 21 5-Room Improved 1259  $              1,020,000  $                         810
3 Toh Yi Drive Bukit Timah 07 to 09 Executive Maisonette 1571  $              1,020,000  $                         649
1C Cantonment Road Central Area 28 to 30 4-Room Type S1 1044  $              1,018,000  $                         975
1G Cantonment Road Central Area 16 to 18 5-Room Type S2 1130  $              1,015,000  $                         898
126 Bukit Merah View Bukit Merah 22 to 24 5-Room Model A 1506  $              1,010,888  $                         671
1C Cantonment Road Central Area 13 to 15 5-Room Type S2 1140  $              1,010,000  $                         886
7 Boon Keng Road Kallang/Whampoa 13 to 15 5-Room Dbss 1280  $              1,008,000  $                         788
1E Cantonment Road Central Area 31 to 33 4-Room Type S1 1011  $              1,000,000  $                         989
1B Cantonment Road Central Area 37 to 39 4-Room Type S1 1022  $              1,000,000  $                         978
126A Kim Tian Road Bukit Merah 10 to 12 5-Room Improved 1216  $              1,000,000  $                         822
232A Serangoon Avenue 2 Serangoon 13 to 15 Executive Apartment 1506  $              1,000,000  $                         664
2 Toh Yi Drive Bukit Timah 04 to 06 Executive Maisonette 1614  $              1,000,000  $                         620

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