Colliers takes over leasing and management of 183 heritage bungalows
By Timothy Tay
/ EdgeProp |
The Singapore Land Authority (SLA) has appointed Colliers International to the task of leasing and managing 183 heritage bungalows in Singapore. The real estate consultancy was appointed from the second quarter of this year and has closed more than 40 lease transactions for this portfolio of properties. So far, fewer than 30 of the blackand- white houses are still available for lease.
The restored properties feature colonial designs with white-washed walls and columns, clay pitched roofs, dark timber finishes and spacious, well-ventilated interiors. “Colonial bungalows are highly sought-after properties, owing to their iconic design, rich history, prestige factor as well as generous land space and large private gardens,” says Andy Oon, director of real estate management services at Colliers International.
Colliers International will manage and lease SLA’s portfolio of black-and-white bungalows, such as this one on Adam Park (Pictures: SLA)
The properties, ranging from 8,611 to 142,083 sq ft, are located in various landed residential neighbourhoods, including those at Adam Drive, Holland Road, King Albert Park, Tanglin Road and Watten Estate Road. “The properties Colliers manages are largely located in the Core Central Region,” says Tang Chee Charn, head of real estate management services at Colliers International. Tenants are usually a mix of locals and expatriates drawn to these properties because of the large land area, heritage value and prime locations in prestigious residential areas, he adds.
Lease terms start from a minimum of two years. Most of the 40 bungalows already leased by Colliers have rental periods of two to three years, says Oon. Rental rates vary, depending on each property’s location and site attributes. Most of the bungalows leased by Colliers have monthly rents averaging $2.8 psf per month (pm), says Oon.
This is comparable to rental rates of detached houses in the Central Region this year, says Tang. According to URA Realis data, the average monthly median rent for detached residential properties in the Central Region was $2.97 psf pm in 3Q2018, compared with $2.95 psf in the same period last year.
One of the bungalows located in Watten Estate
According to SLA’s website, at least one of the black-and-white bungalows managed by Colliers was successfully rented through the government agency this year via a bidding exercise. A six-bedroom bungalow on Marang Road on Mount Faber was rented for $11,111 pm for two years. The two-storey house, with a gross floor area (GFA) of 4,338 sq ft, occupies a 10,387 sq ft site.
Another bungalow that was successfully leased is on Nassim Road. The two-storey house, which has five bedrooms and a separate two-bedroom annex, has a GFA of 5,264 sq ft and occupies an 83,421 sq ft site. The bidding for its lease closed on Oct 12, but the results had yet to be released at the time of publication. The highest rental bid placed was $40,800 pm, followed by a bid of $26,800 pm and then $20,100 pm.
This heritage house on Maidstone Road is one of the 183 properties
The rental index for landed properties has climbed 4.1% since bottoming in 1Q2018, and the vacancy rate has stabilised at 5% in the last two quarters, says Oon. “We expect demand for detached houses in the Central Region to continue to improve because of the limited supply [of such houses in the market] and rising wages.”
Leasing enquiries for the remaining bungalows have been “healthy”, but Oon expects leasing activity to slow down towards the end of the year, as most prospective tenants are away during the holiday season. Leasing opportunities for this type of houses are expected, however, to remain “fairly positive” over the next year, he adds.
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