Former HUDC estate Braddell View to launch en bloc sale with S$2.08b reserve price

The Business Times - March 19
Singapore's largest private residential site - Braddell View - will be launched for collective sale by public tender on March 27 at a reserve price of S$2.08 billion, with residential owners standing to receive between S$2 million and S$4 million each, marketing agent Colliers International said on Tuesday.

This comes after 80 per cent of the owners, by both share value and strata area, agreed to put the development on the market.

The reserve price works out to a land rate of S$1,199 per square foot per plot ratio, inclusive of the differential premium to intensify land use, and to top up the lease to a fresh 99 years which is estimated at S$795.1 million.

Tang Wei Leng, Managing Director: 
Given that this is a sizable development, it is likely to see interest coming from a consortium of developers. We expect interested parties to conduct extensive due diligence on the site and we will do our best to gather as much information as we can to help prospective tenderers assess the merits of the plot, as well as minimise potential risks and lower the level of uncertainty.

We note that the site has an advantage in that it has two land lots and this could make it easier for developers to come together to jointly bid for Braddell View. Under current collective sale rules /guidelines, the selling entity comprises the owners of the entire development and hence the sale of the two land plots has to be done together.

This site has all the makings of a great residential estate, with its prime location on raised land in the heart of Central Singapore, generous land area, as well as proximity to top schools, healthcare facilities and several MRT stations. It is also within walking distance to MacRitchie Reservoir Park – a gateway to Singapore’s lush nature reserves. These excellent attributes make the Braddell View site stand out from the rest and will present developers with an opportunity to create a signature project that will elevate their profile throughout the region.

Fatter commissions, Cross Island Line help boost Feb condo sales

The Business Times - 16 March

Higher commissions to incentivise property agents may have worked some magic in helping to bolster private property sales numbers in February, which saw 455 homes sold, an increase of 4.4 per cent from January. This was despite the Lunar New Year festive lull and the absence of new launches.

A check with property agents suggested that certain projects such as Affinity at Serangoon, Garden Residences and The Tre Ver are offering average commission rates of over 3 per cent. Generally, commissions for new launches are said to range from 1.6 to 2 per cent.

In addition, the prospect of the Cross Island Line could also have lent a boost as a few of the top-selling projects last month are located near upcoming stations.

Tricia Song, Head of Research: 
February’s sales figure was positive, up 4.4% month-on-month and 18.5% year-on-year despite no new launches and ongoing cooling measures, reflecting underlying genuine demand. This brought year-to-date sales to 891 units, 2% below the same period in 2018. We expect sales to pick up with the major launches coming up in the rest of the year, with a full year takeup of 9,500 units. In general, developers are unlikely to cut prices just to move inventory given the still-comfortable three to four years’ headroom to the five-year ABSD timeline, but higher commissions to agents, selected incentives such as discounts, lucky draws could still motivate the homebuyers.    

2,203-unit Treasure at Tampines up for preview

The Business Times - March 15
Treasure at Tampines, the 2,203-unit condominium coming up on the site of the former Tampines Court HUDC estate, is available for preview from March 15, with sales slated to start later this month at an average price of approximately S$1,280 per square foot (psf).

Developer Sim Lian Group, which acquired the collective sale site for S$970 million in 2017, said the condominium will be Singapore's largest in terms of number of units. The site spans close to 650,000 sq ft, with 40 per cent currently built up.

Treasure at Tampines is one of a few mega projects launching in 2019, and is expected to receive its temporary occupation permit by 2023.

Tricia Song, Head of Research:
The pricing at Treasure at Tampines, starting at SGD1,100psf or SGD578,000 for a one-bedroom unit and below SGD1 million for a three-bedroom unit, would likely be the most affordable for new launches in Singapore. Located at about 600 metres from Simei MRT station, this project offers an attractive value proposition as well. The high percentage of land dedicated to landscaping and the low maintenance costs (spread over the largest number of units) are likely to be a draw to most homebuyers as well. A good takeup in this project will boost sentiment and pave the way to better sales for 2019 over 2018.  We expect full year developer takeup at 9,500 units, up 8% over 2018’s 8,795 units.