Major developers vie for Sengkang Central site

The Business Times - June 22
The commercial and residential site at Sengkang Central drew interest from major developers that submitted seven bids at the tender closing on Thursday. Most of them joined forces in joint ventures for the government land sale (GLS) site, which was launched for sale via the dual envelope system.

They include a joint bid from CapitaLand Singapore and City Developments Ltd (CDL), as well as from Wing Tai Holdings and Keppel Land. Perennial Singapore and Qingjian Realty also tabled a bid together. Singapore Press Holdings tied up again with Japanese developer Kajima Development; Chinese developers MCC Land and Grantral Land, which is headquartered in Guangzhou and owns Grantral Mall in Singapore, jointly submitted a bid.

Far East Organization, which recently won the Holland Road site tender that was also launched under the Concept and Price revenue tender system, is again contesting for the Sengkang Central site. It submitted two separate tenders with different concept proposals.

Tricia Song, Head of Research: 
We view the participation as a decent turnout for one of the rare integrated residential/transport hub/retail development sites in the suburbs, given the stringent criteria.  At least 60% of the maximum Gross Floor Area (GFA) of 78,299 sqm shall be for residential use and can yield around 700 homes. At least 13,615 sq m (or 17%) of GFA would be allocated for a community club, a hawker centre, a bus interchange and a child care centre.  Not more than 12,000 sq m (15%) GFA can be for retail. The most recent example is the Bidadari mixed development that sold for a record price of SGD1.132 billion or SGD1,181 psf ppr in June 2017. Private residential projects near Buangkok MRT Station such as The Quartz and Jewel@Buangkok transacted at SGD900-1250 psf over the past 12 months. We expect top bids of SGD760-840 million, which translates into SGD900-1,000 psf ppr.


JTC to launch 6 industrial sites for sale in H2 2018, 7 other sites on Reserve List

The Business Times - June 26
Six industrial sites will be launched under the Confirmed List of the Industrial Government Land Sales (IGLS) Programme by government agency JTC for the second half of this year. Another seven sites will be made available for application under the Reserve List, said the Ministry of Trade and Industry (MTI) on Tuesday. 

All in, the land area of these 13 sites, which are zoned for Business-2 use, add up to 12.59 hectares. 

All six sites on the Confirmed List, which total 4.09 hectares, have a land tenure of 20 years each and a gross plot ratio (GPR) of 1.4 or 2.5. Four sites on the Reserve List have a land tenure of 30 years each and a gross plot ratio of 2.5.

Tricia Song, Head of Research:
Year to date, there had been only three IGLS sites awarded, as the rest of the site tenders closed with no bids or bids below reserve price. In view of the lukewarm response to the IGLS, JTC is keeping the Confirmed List and Reserve List for H2 2018 fairly similar to H1 2018 in terms of the number, total size, land tenure, location spread, and use. This time round, all sites offered are zoned for Business-2 use, compared to one zoned for Business-1 use in Braddell Road on the Reserve List for H1 2018 which was triggered and launched on 30 May 2018, with tender closing on 11 July. Overall industrial property activities have picked up but rents appear to remain soft due to ample supply in particular segments.


Marina One Residences launching tower at average S$2,700-S$2,800 psf

The Business Times - June 22
Come July, the developer behind the mega mixed-use project Marina One will find out whether its strategy four years ago of holding back half its 1,042 residential units from the market has paid off.

M+S Pte Ltd, the joint-venture firm by Malaysia's Khazanah Nasional and Singapore's Temasek Holdings, will release 30 per cent of its 521-unit Garden Tower for sale, with the rest expected to be released in the remainder of the year.

Prices at Garden Tower will start at S$2,400 per square foot (psf) and stand at an average S$2,700 psf to S$2,800 psf. Units in the other residential block, Park Tower - which also has 521 units - were released for sale at the start of 2014. M+S chose to hold back the launch of Garden Tower until the temporary occupation permit (TOP) was obtained for the development in 2017.

Tricia Song, Head of Research:    
It is interesting to note that the recent sales at Marina One Residences were for larger units of median floor size of 140 sqm and were done at higher price per square foot compared to 2014’s launch, bringing average price quantum to over SGD3.7 million. This also brings the median price quantum in the Marina Bay/ Shenton Way to the highest since the launch of luxury-sized Marina Bay Suites in 2010.

This reflects increasing acceptance of larger family homes in the city. The 50:50 foreigner-non-foreigner buyer mix in the Park Tower sales also reflects foreigners’ confidence in prime city living. It is our view that infrastructural changes that would shape the skyline (port relocation, development of the Greater Southern Waterfront) and accessibility (new MRT lines and stations) should enhance the attractiveness of city living in the next decade.