Braddell View en bloc signing hits 80% consent

The Business Times - Feb 07
Signing of the collective sale agreement for Braddell View, the biggest of Singapore's 18 former HUDC estates, has reached the 80 per cent consensus mark.

Colliers International, the marketing agent for the collective sale, confirmed this when contacted by The Business Times on Wednesday.

Braddell View's land area is 1.14 million sq ft, making it the largest private residential site in Singapore.

The reserve price for the collective sale is S$2.08 billion, which works out to S$1,214 per square foot per plot ratio, including estimated differential premium and lease upgrading premium of S$831 million.

Tang Wei Leng, Managing Director:
The signing of the collective sale agreement for Braddell View has reached the 80% consensus mark. However, this is still subject to legal verification and the 5-day cooling-off period. Colliers will provide further update on the signing status once legal verification has been completed and after the expiry of the cooling-off period.

 

GCB market to take a breather this year?

The Business Times - Feb 07
The Good Class Bungalow (GCB) market may take a breather in 2019 from the strong showing last year, according to some observers, who highlight among other things an exceptionally high base in 2018, with several big-ticket transactions.

The total value of deals in GCB Areas climbed 16 per cent to S$1.03 billion in 2018 from S$888.6 million in 2017, based on an analysis of caveats data by List Sotheby's International Realty, Singapore (List SIR).

Market watchers told BT that on top of the S$1 billion worth of transactions for which buyers lodged caveats last year, there may be around S$400 million in deals done last year that were not caveated -- a jump from around S$100 million for 2017.

Tricia Song, Head of Research:
Based on Colliers’ research, in Q4 2018, the Good Class Bungalow (GCB) segment saw volumes declined by 28% quarter-on-quarter (QOQ) and 15% year-on-year to SGD256 million from a total of 12 transactions. This brings the full-year 2018 tally to 42 transactions in GCB Areas worth SGD1.0 billion, up 16% from 2017. Based on our research, this is the highest level since 2012 when 50 GCBs totaling SGD1.1 (USD0.8) billion were transacted.

The QOQ decline in Q4 2018 is perhaps reflective of sentiments towards cooling measures and outlook going into 2019. We expect 2019 GCB volumes and values could ease from the full-year high of 2018 as buyers turn more cautious with the uncertain economic outlook. GCB sellers are generally not in distress and reluctant to budge on prices. We expect bid-ask spread to continue to widen and volumes could decline in the near-term. Prices are however unlikely to drop, given the limited supply and potential demand from newly-minted Singapore citizens with diversified businesses.


Tulip Garden S$907m collective sale to Yanlord, MCL successfully completed

The Business Times - Feb 01
The sale of Tulip Garden for S$906.9 million on its fourth en bloc attempt has reached a happy conclusion, after market talk that the mammoth deal had hit a snag.

Back in April last year, marketing agent Colliers International announced the en bloc sale of the freehold Farrer Road condominium to Asia Radiant, jointly held by Yanlord Land Group and MCL Land. But media reports surfacing months later and that were dismissed by Colliers, said the sale might be scuppered because the number of residential units being planned by the buyer had not been approved by the authorities. 

On Friday, Colliers announced that it had successfully completed the sale on Jan 31.

Tang Wei Leng, Managing Director:
We are delighted to have closed this transaction and to have been able to help the owners fulfill their long-standing en bloc sale dream. Collective sale journeys tend to be long and information flow sensitive. There might have been some anxieties as owners await communications. We thank the owners for their trust and confidence in us throughout the whole collective sale process allowing us to deliver on the reserve price and marketing strategies that achieved their desired outcome.

The deal completion continues to affirm and reflect Colliers’ expertise in executing on major projects and delivering optimal outcomes for all stakeholders. It is a testament to its broad and deep market knowledge as well as outstanding capabilities in the capital markets and property investment sales sector.


Shopping to lifestyle destination: New plans unveiled for Orchard Rd

The Business Times - Jan 31
Orchard Road promises to be much more than the fabled shopping and entertainment strip that it already is in future.

Plans have been made to strengthen its position as a lifestyle location with more green spaces and a car-free zone.

The plans were unveiled on Wednesday by the Singapore Tourism Board (STB), Urban Redevelopment Authority (URA) and National Parks Board (NParks). Together with the Land Transport Authority, these bodies have completed a six-month review of the plans for the belt.

The plans include making Orchard Road "The Lifestyle Destination" - one with innovative retail concepts, attractions, entertainment and events, said STB, URA and NParks in a statement.

Govinda Singh, Executive Director, Valuation & Advisory Services
The recent announcement on plans to enhance Orchard Road as a lifestyle destination is a good step in the right direction but one would wonder if it is bold and creative enough to drive a much-needed longer term solution to create a truly unique and sustainable destination. 

Recently, London has similarly unveiled almost the same concept to revitalise a 200-m stretch of the Strand, and will take it further with proposed full pedestrianisation and a multi-generational offering. Have we therefore missed a trick with a short-term fix at the expense of longer term benefit? Having said that, it would no doubt have an initial novelty effect, and it would be interesting to see how stakeholders react and participate positively in enabling plans to rejuvenate Orchard Road as a must-go destination in Singapore.