Measured bid counts in latest Government Land Sales tenders for private housing

The Business Times - Sep 05
Bidding turnouts at two of three state tenders that closed on Tuesday were noticeably subdued, reflecting developers' sentiment following the latest property cooling measures.

Just five bids competed for the plot on Dairy Farm Road. Over at Jalan Jurong Kechil, three offers were submitted, far fewer than the record 24 bids submitted last year for a nearby Toh Tuck Road plot that has since been developed into Daintree Residence.

The executive condominium (EC) market, however, continues to register healthy interest amid a shortage of supply. A site along Canberra Link pulled in nine bids, said the Housing and Development Board (HDB) on Tuesday evening.

These were the first state tender closings since the property cooling measures kicked in on July 6.

Tricia Song, Head of Research:
It appears that the fresh cooling measures have been effective in tempering bullish land bids. Both the number of bids and top price for the Government Land Sales sites have mellowed. We note that the bidders this time are mainly developers who have not accumulated significant landbank over the past year and now see an opportunity to buy land on the cheap. The environment has become less competitive following the introduction of new property cooling measures on July 06, and these players probably feel that they now stand a better chance of acquiring land at a less aggressive price. 

In view of the more punitive additional buyer’s stamp duty, developers have become more cautious about site purchase. However, residential sites that are well-located with fewer competing projects nearby should remain relatively attractive to developers.


Facebook to build S$1.4b data centre in Singapore - its first in Asia

The Business Times - Sep 07
Facebook will build a S$1.4 billion data centre in Singapore, its first such facility in Asia and its 15th in the world. To be located in Tanjong Kling in Jurong, it will support "hundreds of jobs" and add to Facebook's "growing presence" in Singapore and the region, the social networking company announced on Thursday.

The centre is targeted to start operations in 2022, after which construction will continue for a few years, because it is a huge project, The Business Times has learnt.

When complete, the centre will be a 170,000 sq m, 11-storey building featuring a facade made out of a perforated lightweight material, which will facilitate air flow and provide glimpses of the mechanical equipment inside.

Dominic Peters, Senior Director, Industrial Services:
Singapore continues to be a key location for the deployment of data centres in Asia. With the rapid rise in the Internet-Of-Things, big data, cloud computing, use of smart devices and Singapore’s Smart Nation push, we foresee further growth in the data centre sector here as data centre operators seek to keep up with increasing bandwidth demands. The rollout of 5G technology in the years ahead could also change data centre operations, with a likely surge in the data centre services market. Increasingly, there would be greater focus on data centre space with high specification – such as dual power supply – to meet the evolving market needs.


2 adjoining 4-storey Amoy Street conservation shophouses up for sale with S$3,415 psf guide price

The Business Times -Sep 05
A pair of adjoining prime four-storey conservation shophouses along Amoy Street has been launched for sale via public tender.

The guide price for 87 and 88 Amoy Street is S$3,415 per square foot (psf), or S$50 million over a gross floor area of about 14,641 square feet. The property, zoned for commercial use within the Chinatown (Telok Ayer) Conservation Area, has a combined land area of about 5,375 square feet.

The property has a passenger lift and reinforced concrete staircases, and there are about 14 metres of road frontage with high visibility. An open air public car park is located right in front of the shophouses and public on-street parking lots are available along Amoy Street and the adjacent streets.

Tricia Song, Head of Research:
Demand for shophouses could benefit from the leasing upcycle in the office sector as well as the cooling measures directed at the residential sector. This asset appears to be attractively located in a prime Central Business District location near amenities, with immediate income stream. The quantum sum of SGD50 million would be palatable to boutique investors.

We are seeing increased transaction activity, especially for shophouses in the CBD and Chinatown, from local and foreign high net worth individuals as well as property funds and investment companies. Based on Colliers’ research, shophouse transactions with value of SGD5 million and above grew 13.4% year-on-year to SGD305.7 million in Q2 2018. Click here for investment sales report.