RECALLING: October 8 2007

By EdgeProp

/ EdgeProp |

October 7, 2017 9:30 AM SGT

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Office hikes meet resistance

Demand for office space remains strong despite the recent financial market turmoil, but rent hikes are meeting resistance, reports CB Richard Ellis (CBRE). The financial and banking sector continues to dominate large space requirements. More companies are prepared to explore lower-cost locations and alternative premises options such as business parks and hi-tech spaces. Prime office rent averaged $12.60 psf/month in 3Q2007, rising 16.7% q-o-q and 82.6% y-o-y. Prime rents have gone past the historical peak in 1990 ($11.50 psf/ month). Grade A office rent averaged $14.90 psf/ month (96% y-o-y rise). The average capital value for prime offices was estimated at $2,900 psf in 3Q2007 (115% increase y-o-y).

Amara wins heritage award

The Amara Sanctuary Resort Sentosa has won the prestigious 2007 URA Architectural Heritage Awards Category A, which recognised efforts in building conservation. The five-star resort on top of a hillock in the central lush green zone of Sentosa Island had its soft opening in May. Included in the 121-room redevelopment on 3.5ha are two double storey military barrack blocks built in the 1920s. The jury noted that the project was an outstanding demonstration of how army barracks could be cleverly transformed into an upmarket hotel. The URA awards were launched in 1995 to recognise owners, professionals and contractors who go beyond the basic essentials to lovingly restore monuments and conservation buildings to their former glory for today’s use.

Freehold sites for collective sale

Two freehold residential sites have been launched by Colliers for collective sale by tender. The first site, at 18A/B, 20A/B Hertford Road and 21A/B, 23A/B Bristol Road, has 11,527 sq ft with a dual-road frontage. Zoned residential, the property has a gross plot ratio of 1.4 and allowable height of five storeys. The site, off Keng Lee Road, is occupied by Hertford Mansion, a three-storey walk-up block of 12 apartments. Owners are looking for around $12 million ($744 psf/ppr). The successful bidder could build a five-storey block with 20 units averaging 900 sq ft. The second site, at 5 Holland Hill (Holland Hill Lodge) (below left), is 9,000 sq ft and has a plot ratio of 1.6. It is expected to fetch $16 million ($1,108 psf/ppr). The tenders for Hertford Mansion and Holland Hill Lodge close on Oct 29 and Oct 31, respectively.

Source: Colliers

Duke pays $290 million for Simon Road

The URA has awarded the tender for the residential site at Simon Road to Duke Development. The company submitted the highest of six bids — $290 million ($437 psf/ppr). CB Richard Ellis said this price translated to a break-even of around $800 psf. Selling prices for apartments on the 189,817 sq ft site along Upper Serangoon Road and adjacent to Kovan MRT station would be $850 to $950 psf. Nearby Kovan Melody (778 units) has sold out. Apartments here are being resold at more than $800 psf.

MI-REIT buys Yishun warehouse

MacarthurCook Industrial REIT (MI-REIT) has paid $16.8 million for 541 Yishun Industrial Park A. The 75,091 sq ft property at Yishun industrial precinct has a four-storey office and warehouse facility with a gross floor area of 107,642 sq ft. Leading synthetic manufacturer and distributor King Plastic, which sold the property, will lease it back for 12 years. MI-REIT now has 15 assets with a total value of $472.9 million.

Middle Road office site for tender

Colliers is putting up for sale through public tender a six-storey office building at 23 Middle Road. The 999-year leasehold site, which is within walking distance of the Bugis MRT station, is 4,945 sq ft with a total gross floor area of 23,499 sq ft and net lettable area of 17,314 sq ft. The gross plot ratio is 4.2 with a maximum allowable height of six storeys. The closing date for the tender is 3pm on Oct 30.

New/resale price gap widens in 3Q

The premium between new sales and the resale market is expected to breach the historic average of 30%, according to Jones Lang LaSalle (JLL). The preliminary analysis of the URA caveats lodged in prime districts shows the premium reached a record high of more than 60% in 3Q2007. JLL data from 3Q2007 shows that resale prices of prime projects climbed 9.2% q-o-q to close at $2,600 psf. Resale prices for typical prime developments increased 12% q-o-q to $1,260 psf. JLL believes the gap will probably narrow as buyers opt to buy more affordable quality resale homes rather than new developments.

OFFSHORE

Singapore house prices booming

Singapore has the highest house price growth in Asia and the fourth fastest in the world, according to the Global Property Guide. Prices soared 21% y-o-y to 2Q2007, up from 6% growth to 2Q2006, as the market recovered from an eight-year slump. Elsewhere in Asia-Pacific, the Philippines rose 14%, Hong Kong 8.7%, Japan 7.7%, Australia 9.5% and New Zealand 12%. But Thailand saw its home prices drop 3.4%. House price growth in the Baltics, led by Latvia, Bulgaria and Lithuania at 25%-plus, topped the chart.

Keppel adds fifth Vietnam project

Keppel Land has expanded its portfolio of developments in Vietnam with a new site in Ho Chi Minh City. The company, through wholly owned subsidiary Corredance, has signed a joint venture with Hong Quang to develop waterfront homes on a 5ha site in District 2. This is the fifth residential project in Vietnam this year for Keppel, which has built more than 20,000 homes in the country. The new project will have 1,500 units. The site is expected to yield a potential gross floor area of 2.64 million sq ft, which will include around 1,500 apartments. The sales launch of the first phase will be in early 2009. The total investment capital for the project is around $208 million.

Milestone for InterContinental

InterContinental Hotels and Resorts will open its 150th hotel next month — the 500-room Dubai Festival City in the United Arab Emirates. A few days later, the brand will open its first hotel in Vietnam — the 359-room Hanoi Westlake. The company has opened 11 new hotels in six countries over the past 12 months, including two in Greater China — Shenzhen and Jiuzhai Paradise — and Japan’s first two co-branded ANA InterContinental properties, both in Tokyo.

Source: Clarion

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