Read this: The URA has launched a 6.5ha master developer site to commence the development of Jurong Business District

The URA has launched a 6.5ha master developer site to commence the development of Jurong Business District

In the local property auction market has successfully sold 11 properties during the initial six months the year. A study note by Edmund Tie states that the total value of transactions for sold properties was $15.2 million.

This was the lowest value reported by auction houses since 1H2020, which was the beginning in the pandemic Covid-19 in which just one property was auctioned at $0.94 million. This is a substantial decrease from 59.7% compared to 2H2022 that saw 17 sales totalling $37.7 million.

As per Joy Tan, head of auctions and sales of Edmund Tie, the low values of sales in the 1H2023 period resulted from “the properties hammered being of low value, with the majority of them being under or near the threshold of S$1 million. There was one high-value sale that was more than $5 million”.

The “high-value deal” included a three-storey semi-detached home located on Vaughan Road that was transacted for $6.3 million. In addition seven of the winning properties that were auctioned off were industrial properties and the remainder comprised of three residential properties as well as one office property.

“Additionally due to the impact of the rate of interest that is high and the cooling measures that were announced in April, and the general uncertainty of macroeconomic conditions buyers have generally taken an open-ended stance,” says Tan.

She says that over the last few months, investors have been showing a greater acceptance of leasehold properties that have shorter leases, typically ranging from between 30 and 60 years. “This is probably due to investors’ greater risk tolerance, given that markets for financial assets remain volatile and a shift in their preferences towards investment alternatives.”

Beware of the new residential private projects that are scheduled to go on sale in the coming quarters, prospective buyers are putting off buying, according to Tan and adds external factors like the fear of a recession coming and rising rates of interest are also affecting sales.

Looking ahead, she anticipates for mortgages to start picking up in 2024 only because of the time gap between repossessing banks properties and then putting them on auction. Commercial listings are also expected to attract more buyers. “Given commercial transactions do not trigger additional buyer’s stamp duty and the increasing number of office spaces for families within Singapore offices, high-end office properties are likely to also be sought-after,” she says.

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JTC has approved an application to build an industrial site located at 11. Tuas Avenue 18 for sale through tender.

The land parcel is listed on the Reserve List of the 1H2023 Industrial Government Land Sales programme. It was made available to purchase after a buyer made a bid that was accepted from the Government.

According to JTC the application contained the commitment of a bid amount that was at least $2.8 million to purchase this 0.4ha site. The site is designated for business 2 usage with the plot ratio being 1.4 in the Master Plan. Additionally the site has a leasehold of 20 years.

The public auction on the purchase of this industrial site opens on August 29 and will run over six weeks.

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Private home sales fell in June and developers selling just 278 brand new homes, excluding executive condominiums (ECs). This is an 73.2% fall from the 1,039 units sold in May and 43% less that the 4,88 homes that were sold in June of last year.

The first decrease in sales per month this year, and the lowest so far for 2023. It’s also the lowest number of sales since December 2022, when 171 homes sold to developers According to Tricia Song, director of research for Southeast Asia, at CBRE.

The decrease comes on the heels of a lack of projects launched in the month of July and also the summer school holiday. Developers particularly those who planned for larger-scale projects that would have greater than 500 units chose to schedule their launches for July to avoid the summer vacation time, says Leonard Tay, head of research at Knight Frank Singapore.

In the end, just 31 new homes without ECs were introduced in June. The number represents 98.1% lower than the 1,595 units announced in May, and 92.2% lower y-o-y. “The 31 units that were launched in June 2023 are the record-breaking low amount of units launched since the monthly series of data was released in 2007” Tay says. Tay. The launch of new homes in June came mostly through Lavender Residence Lavender Residence the boutique development that has 17 units on Lavender Street, which is located in District 8.

The figures for June show new home sales for 1H2023 at 3,463 units, an increase of 18% per year compared to 4,222 units sold in the same timeframe in 2022. As for launches, it is estimated that 3,736 private homes are available for sale in the first quarter of the year, which is more than the 2,569 units sold in 1H2022, claims Chia Siew Chuin, the head of research and research in residential homes and consulting at JLL.

Rest of Central Region ranks high
For the third consecutive month that new home sales increased, they were lead by Rest of Central Region (RCR). The region had 147 homes sold in June, a decrease of 82.6% m-o-m. The month of May saw developers have sold 847 houses, mostly driven by the announcements of The Reserve Residences on Jalan Anak Bukit as well as the Continuum located at Thiam Siew Avenue.

The Reserve Residences maintained its position as the top-selling residential development in June, selling the sale of 79 units at a median cost of $2,646 per sq ft. The RCR, Lavender Residence was the second-highest-selling property, with eight units being sold at an average price of $1,972 per square foot.

The Core Central Region (CCR), developers sold 112 new houses, representing a drop in the region of 26.8% m-o-m. Top-selling projects include Leedon Green which sold 14 units for the median price of $2,812 psf. then Van Holland which sold 13 units. were sold for an average price of $2,692 per sq ft.

CBRE’s Song says that the CCR’s sales are influenced by construction projects that were nearing completion when developers provided discounts and promotions. The Atelier located along Makeaway Avenue in Newton, sold 12 units in June for a median cost of $2,663 psf. It currently is at 95% sold. “Prices (at The Atelier] are about 8% to 9% less than the median of $2,916 per square foot when it was first announced and it sold four units by March 2021.” Song adds.

The Van Holland, a 69-unit development Van Holland, located on Holland Road and is currently completely sold, having moved its 13 units in the last month at an average cost of $2,692 psf. The development is expected to get its temporary occupancy permit in the month of March.

Within the Outside Central Region (OCR) in the Outside Central Region (OCR), inventory that was not sold slowed sales and the region saw only 19 units sold, which is 51.3% lower m-o-m and the third consecutive month of decrease. The most popular OCR product in the month of June was Lentor Modern with five units sold for the median price of $2125 per square foot.

The EC sector, developers sold 19 new units in June, slightly over the 17 units that were sold in May. North Gaia EC located in Yishun had the highest sales, by selling 14 units at the median price of $1,280 per square foot.

Foreigners make purchases
Private home purchases made by foreign buyers continued to decline in June, signalling the effect of the cooling measures that took effect in April 27 claims Lee Sze Teck, senior director of research at Huttons Asia. Based on URA conditions that thirteen new houses were bought by foreign buyers in June (representing 4.7% of total residential sales) as compared to the thirty transactions that were made in the month of May. In the CCR the CCR, only seven units are sold out to foreign purchasers in the last month and this is the lowest number since February 2021, in which six homes sold foreign buyers, Lee says.

Eugene Lim, key executive office manager at ERA Realty Network, adds that foreigners could be looking to become permanent residents prior to buying a home. In July, the permanent resident made up of 10.8% of new private homes sold, an increase over 9.6% in April.

A rebound in sales is expected in July
Despite the dip in June, sales are predicted to experience a significant increase in July owing to several major launches, including for example, the 408-unit It’s the Myst located on Upper Bukit Timah Road; the 598-unit Lentor Hills Residences located on Lentor Hills Road as well as 1 008 units of Grand Dunman on Dunman Road; and the 528-unit Pinetree Hill in the Pandan Valley-Pinegrove neighborhood.

“The four projects have sold more than 1,100 units in their respective launch dates on the July 8 and 15 weekend,” claims Wong Siew Ying director of content and research of PropNex Realty. She anticipates RCR transactions to lead developers sales in July, fueled by the sales at Grand Dunman and Pinetree Hill as well as The Myst and Lentor Hill Residences will provide an boost in the OCR.

Knight Frank’s Tay says that the results of recent projects indicates that homebuyer interest is “very active” especially for homes that are located in suburbs. “Demand for such homes in the remainder of 2023 will be supported by homebuyers who are buying homes for their own purposes and household balance sheets are solid,” he says.

CBRE’s Song is in agreement, noting that home sales for new homes could be able to catch up in the second part of the year when more projects are announced. She estimates that between 7,500 to 6,500 new homes for private buyers could be sold by 2023, which is on par with the 7,099 homes that were sold last year. The upcoming launches scheduled for the next weeks include Lake Garden Residences along Yuan Ching Road, Altura EC in Bukit Batok, TMW Maxwell along Maxwell Road, Orchard Sophia on Sophia Road, and The Arden on Phoenix Road.

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The weekend that the Grand Dunman launch took place (July 15-16) saw 550 of 1,008 units in Grand Dunman snapped up, which translates to a level at 54.6%. The median selling price for the 99-year leasehold condominium located on Dunman Road in District 15’s prime area was around $2,500 per sq ft.

SingHaiyi Group and CSC Land Group are co- developers of Grand Dunman. Grand Dunman is the most-sold project in 2023. It was estimated that 90% of buyers were Singaporeans and the remaining nine% Singapore Permanent Residents and 1% foreigners, claims Gary Lim, SingHaiyi Group director of marketing and sales.

There was a wide range of units that ranged between one three-bedroom, two- and three-bedroom and even dual-key units were sold, according SingHaiyi’s Lim. The majority of% all units that were sold valued at $3 million or less.

“Grand Dunman’s outstanding performances make it the top-selling project in 2023 in terms in units that were sold” declares Ismail Gafoor the PropNex’s CEO. PropNex. “As the largest project in the world with more than thousand units in total, it offers buyers with a wider range of unit types and sizes.”

The Grand Dunman will also be the most-sold project since the 1,862 units Normanton Park, which sold around 600 units during its opening weekend in January 2021 claims Mark Yip, CEO of Huttons Asia. “This is what makes Grand Dunman the top-selling property in the last 2.5 time,”” Yip says.

“Being the sole mega-project to launch with more than 1,000 units by 2023 Grand Dunman generated much excitement during its opening weekend that attracted around 10,000 people,” Yip observes.

Grand Dunman’s closeness to Dakota MRT station located on the Circle Line, just a two-minute walk away, is a important draw for owners as well as investors. “Not only are home buyers drawn by the convenience, but investors can rest assured of renting potential,” Gafoor says. Gafoor.

The other features in its location include its closeness to the CBD as well as it’s close to CBD and the Old Airport Road Food Centre and the Katong heritage area, and is within 1km of Kong Hwa School, a well-known primary school, according to Ken Low, managing partner of SRI.

“The high-volume demand in Grand Dunman over the weekend resulted in a ripple effect across The two additional projects that District 15 which were announced earlier in the year including The 638-unit Tembusu Grand in April and the 816-unit The Continuum in May,” Low adds.

The units in Grand Dunman that command the most premium prices are those facing south which overlook the exclusive private estate that is Mountbatten as well as the Meyer area as well as in addition to the East Coast Park and the sea, according to Marcus Chu, CEO of ERA Singapore.

The Myst e brochure

The Good Class Bungalow Area (GCBA) of Oei Tiong Ham Park which is located just off Holland Road in prime District 10 is a group consisting of 10 bungalows located on Jalan Harum. Since May three bungalows located on the street have been sold off.

The Myst e brochure shows how good of an investment potential in a desirable location with excellent access to the city centre and Orchard Road

The latest one, with an exception lodged on July 4 will be for the purchase of a bungalow that was on a freehold site that covers 8,726 square feet that was purchased to the value of $22.8 million. The transaction price equates to $2,613 psf on the area of land. “It is the highest price per square foot for bungalows located in Oei Tiong Ham Park so far,” says William Wong who is the co-founder of Realstar Premier Group, which is a specialist in landed property deals.

Realstar representatives represented buyers and sellers in the transaction. Martin Goh, associate marketing director at Realstar is believed to represent the seller, but is unable to speak about the deal.

According to an property title lookup, the buyer has been identified as Irving Tan Yew who is executive vice-president for worldwide operations for Western Digital. A graduate from Nanyang Technological University Singapore, Tan was honored in the Nanyang Alumni Awards 2022 which took place on November 11, 2022 at Nanyang Auditorium. Nanyang Auditorium.

The bungalow Tan purchased was built in the 70s. It is currently rented. The new owner will remove the old structure and transform the property into a brand new bungalow.

Three months before, another home located on the same street bought at $32.8 million, in accordance with a caveat issued on April 11 2023. The double-storey home was constructed in 1977 and is situated on land of 14,211 square feet. The cost of purchase equates to a land cost of $2,308 per square foot.

Up until the latest deal in July of $2,613, this sale was the record-holder for the most expensive psf value for a bungalow within Oei Thong Ham Park’s GCBA. Realstar is the seller in this transaction. According to an property record search Singaporean professional Ong Iong Sheunn was the buyer.

The property was sold in May of 2022. the neighboring bungalow was sold for $18.18 million, or $2,106 per square foot Based on the area of the land, which is 8,633 square feet. The property is believed to be built in the past 50 years. Realstar is believed to represent both the seller and buyer in this transaction.

With the Good Class Bungalow (GCB) prices have risen dramatically and are the most sought-after address in District 10 Nassim Road, currently averaging $4,500 per square foot, “those with a budget of $20-$30 million cannot have the money to buy the cost of a GCB” according to Realstar’s Wong.

Another option, Wong adds, is to buy smaller bungalows with dimensions of around 10,000-10,000 sq ft located in the GBAs at Oei Tiong Ham Park or in Raffles Park located in District 11. Bukit Timah enclave of District 11.

The property is located at Raffles Park GCBA, a bungalow on Linden Drive sitting on a freehold site that covers 11,314 square feet that was purchased to a buyer for $24million ($2,121 per sq ft) in accordance with an agreement signed in June of this year.

The Myst layout

City Developments Ltd (CDL) via its subsidiary wholly owned by CDL CDL Hotels (Korea) is the company that purchased the Nine Tree Premier Hotel Myeongdong II in Seoul, South Korea, for KRW140 billion ($143.9 million). The hotel’s 408 rooms were acquired by Shinhan Nine Tree Real Estate Investment Trust. The purchase price is around $353,000 for each key.

The Myst layout is 16,630 sq ft and is in a prime location. It has a plot ratio of 2.1, is zoned residential, and is set to offer 1, 2, 3, and 4-bedroom units.

The hotel is located in the Myeondong-Euljiro district of commercialization it was inaugurated in 2017. It is located within walking distance to well-known shopping areas, such as The Myeongdong Walking Street, Lotte and Shinsegae departmental stores and street food and restaurants, as well as entertainment and business venues. It’s also a short walk from the Euljiro 3ga subway station.

Kwek Leng Beng CDL chief executive officer, claims the group is constantly looking for new ways to invest in Korea after the divestment of Millennium Hilton Seoul and the adjacent land site in February 2022. The properties were transferred by IGIS Asset Management for KRW1.1 trillion.

“This acquisition shows our commitment to invest and investing Korea one of the Asia’s most vibrant economies, with solid market fundamentals,” Kwek adds.

The Myst Upper Bukit Timah price

SingHaiyi Group will preview its 1,008-unit Grand Dunman condo on July 1st, and its launch is scheduled for one week later the 15th of July.

“Grand Dunman” is the only mega-development with more than 1,000 units this year” claims Mark Yip, CEO of Huttons Asia.

In the District 15 neighborhood, which is one of the most sought-after located in the East, Grand Dunman will be the third new project launched in the year. It was preceded by the 638 unit 99-year leasehold Tembusu Grand by City Developments Ltd (CDL) and MCL Land. On the weekend of its launch in April the 53% from the apartments were sold for the average price of $2,465 per square foot. Based on caveats that were lodged in conjunction with URA Realis, 362 units (close to 57%) were snapped up.

The Myst Upper Bukit Timah price acquired for S$126.3 million, the residential development is 16,630 sq ft and is in a prime location.

In the Continuum The Continuum, which was launched in the early months of May 229 units have already been sold for an average price of $2734 per square foot. The freehold, 816-unit condo is a renovation of homes that are located along Thiam Siew Avenue through joint venture owners Hoi Hup Realty and Sunway Group.

“We benefit from having the opportunity to see the debut of The Continuum and Tembusu Grand,” says Raymond Chia chief executive officer of SingHaiyi Group. “We will need to determine the response during the preview phase before deciding about the cost. We will however price the project in a way that those who are looking for a place in the East will be able to be able to consider Grand Dunman.”

Chia Chia, who is currently the chief executive officer of the Chip Eng Seng was appointed the position as SingHaiyi Group CEO on April 1st. Chia’s appointment was prompted by property developer SingHaiyi’s withdrawal from Singapore Exchange’s principal board on January 31, 2022. He also delisted from Chip Eng Sung Corp’s removal on April 11 2023. Both companies have common shareholders -the former Celine Tang, her spouse Gordon the tycoon Gordon Tang.

Chia is the chief executive in both of the firms, Chia intends to pool departments like administration, human resource and business development to gain economics of scale. Chia says that the other departments, like project management are still operating independently.

“There is no redundant,” he says. “It’s more about the exchange of knowledge and experience.”

Chia adds: “We will keep them separated for the time being. Both teams are working on their own projects.”

Joint ventures
Prior to the time that the Tangs privatized Chip Eng Seng, they purchased the original Lim family’s 29.73% stake in the company for $201 million on October 2018. Celine Tang then became the chairman non-executive of the company Chip Eng Seng.

This was the time that Chip Eng Seng and SingHaiyi started to work together to compete on sites together. For instance, the old Maxwell House en block site was bought at $276.8 millions by a group of Chip Eng Seng, SingHaiyi and Chua Investments in May 2021.

On December 20, 2021 Chip Eng Seng and SingHaiyi joined the forces of the listed firms KSH Holdings and SLB Development and construction company Ho Lee Group to purchase Peace Centre and Peace Mansion located at 1. Sophia Road for $650 million. The cost is $1,388 per plot ratio (psf ppr).

On April 20, 2022 Chip Eng Seng and SingHaiyi bought 21% stake in 8 Shenton Way (formerly AXA Tower). It is the developer of the mixed-use building is an joint venture with Alibaba Group and Perennial Holdings.

The brand new 99-year leasehold, mixed-use project situated on the site will rise to 305m above the ground, making it the tallest building in Singapore. The project was designed in collaboration with SOM (Skidmore Owings Merrill) which is the same architecture firm that designed The 64-storey Wallich Residence as well as the Guoco Tower, currently the tallest building within Singapore in terms of 290 m.

The 63-story tower of Perennial Holdings and Alibaba is located at the intersection between Anson as well as Prince Edward Roads. It will have 215 luxurious homes, including a deluxe penthouse at the top. The luxurious residences are referred to as Skywaters Residences.

‘Transformer apartments’
The leasehold of 99 years Maxwell House in Tanjong Pagar will be transformed as TMW Maxwell. The new project will be an 20-storey block that includes an edifice of three floors and eleven commercial buildings. On the upper floors, there will be 324 housing units. TMW Maxwell is targeted for launch in the 3rd quarter of 2023.

“The position for our TMW Maxwell project is very different from Skywaters Residences,” says Chia. “Given its position close to the conservation shophouses on Tanjong Pagar Road, we will concentrate on the local lifestyle.”

Close by to the Maxwell Food Centre which houses bars, restaurants and nightclubs in areas such as Tanjong Pagar, Ann Siang and Chinatown regions. “The areas will be planned as transformers that can be used for many applications,” says Chia. “In the daytime the furniture will be used for working. Later in the evening you can turn it into a space to host guests, and at night, it can become the bedroom of your dreams.”

Solo bid
In The Grand Dunman site, SingHaiyi offered the highest of two offers for the 271,622 sq. ft 99-year leasehold site in an Government Land Sales tender that ended at the end of June in 2022.

SingHaiyi’s offer of $1.284 billion ($1,350 per psf per price per share), 20.3% above the $1.067 billion ($1,122 per psf) made through CDL, Hong Leong Group and TID.

The development will comprise seven residential blocks that are 18 floors. The homes are available in one-bedroom apartments of 442 sq ft up to six-bedroom units with dual-keys. “We are able to serve an array of owner-occupiers and investors,” says Gary Lim SingHaiyi Group’s director of marketing and sales.

There are five commercial stratas situated on the top level in Grand Dunman, which SingHaiyi will hold to regulate the mix of tenants.

All units in Grand Dunman will be north-south facing. These facing Dunman Road will have views of the swimming pools as well as landscaping. The ones facing south will have views of the land estate which is located on Mountbatten Road and Meyer Road towards the ocean beyond, according to SingHaiyi’s Lim. Lim adds to the Dakota MRT Station is a two-minute walk from Grand Dunman.

According to Huttons”Yip,” The CBD as well as the Sports Hub are just minutes away by car or train. Grand Dunman is also within 1km of famous schools such as Kong Hwa Primary School and Tanjong Katong Primary School.

Close proximity to MRT station Schools, MRT station
Based on the land price of $1,350 per square foot per acre to Grand Dunman, Ismail Gafoor the director of PropNex believes that SingHaiyi will probably estimate the cost of the project “very similar to or slightly more that Tembusu Grand”.

The majority of units in Grand Dunman are one- or two-bedroom homes, which will appeal to buyers as well as investors who been unable to access the smaller units in Tembusu Grand, notes Gafoor. One-bedroom units start at 452 sq ft, with two-bedroom units beginning at 667 sq feet. Three-bedrooms can be as large as 980 square feet. There are 34 dual-key two-bedroom units of 721 sq ft and 775 sq ft and 36 triple-bedroom dual-key units of 1,044 and 1,055 sq feet.

Based on Eugene Lim, ERA Realty Network’s chief executive officer, Grand Dunman’s closeness to its proximity to the Dakota MRT Station sets it above the two other condo developments. “As as a result, we might not experience a saturation of the market in District 15 even a bit,” he says. “We anticipate a rapid demand for two-bedroom apartments since they’re desired by many buyers.”

The ERA’s Lim says that properties located within walking distance of MRT stations are sought-after because of their ease of use and accessibility. “Grand Dunman is likely to draw a mix from homeowners, investors along with HDB upgrading enthusiasts,” he adds.

“The million-dollar HDB flats that were resold in the Geylang estate 1H2023, as per HDB’s classifications, are located in the Dakota precinct” Lim observes. “This is great news for HDB homeowners looking to upgrade to private condominiums in the same neighborhood.”

‘Rare plot’
The Grand Dunman site is a rare parcel It is an extremely rare plot, according to Ken Low, SRI managing partner. “The two condos that are available in the area include Waterbank as well as Dakota Residences,” he states. A 616-unit development called Waterbank located at Dakota was opened in the year 2010 and sold completely and completed by 2013.

The units at Waterbank are a good rental investment because of its city-fringed location as well as its proximity close to Dakota MRT Station, says Low of SRI. He anticipates Grand Dunman enjoying similar attributes.

Inside Grand Dunman are two tiers of units. There is a gold block that has 100 units, which are made up of huge three- to five-bedroom apartments. Three-bedroom units within this block start at 1,475 square feet, four-bedroom units starting from 1,787 sq feet and five-bedroom units start at 2,131 sq feet.

There are only 10 penthouses available in the whole development. Five-bedroom penthouses span between 2,336 and 2,756 sq feet; while penthouses with six bedrooms vary from 3,057 up to 3,068 sq ft.

Grand Dunman aims to achieve the Green Mark Platinum Super Low Energy rating. Around 65% of the project uses prefabricated, prefinished volumetric construction. Its developer will install solar panels onto rooftops and fan-like ceilings in the living areas of each unit and double-glazed windows in west-facing units.

Due to its efficiency in energy use, SingHaiyi is providing Samsung refrigerators to all units at Grand Dunman. The units will also come with Gessi showers and taps in bathrooms, as well as Kohler toiletries, due to Kohler’s commitment to eco-friendly methods of production.

Upcoming launches
One month after SingHaiyi purchased its Grand Dunman site, Chip Eng Seng along alongside KSH Holdings and SingHaiyi, together acquired Park View Mansions located on Yuan Ching Road in July 2022 for $260 million ($1,023 psf per ppr). The 99-year leasehold condominium site has a view of Lakeside Gardens in Jurong.

A month prior, in May 2022 Wing Tai Holdings purchased Lakeside Apartments in Jurong for $273.9 million ($1,250 to 1,260 psf per ppr).

Based on a psf ppr based, Chia reckons, the Chip Eng Seng consortium’s land cost is around 20% less. Therefore, Chia plans to start the redevelopment process of the old Park View Mansions sometime at the close of the year or during 1Q2024.

The Myst sales gallery

The government has launched the next stage of its plan to develop this Jurong Lake District into a new business district that would compete with Central Business District. Central Business District.

The 22nd of June was the day it announced the huge 6.5ha white site available for tender.

This tender comprises three parcels of land that, once constructed, will connect the existing commercial center in Jurong East station of the MRT to the precinct that is being built and the planned Jurong Lake District Station that will be on the soon-to-be completed Cross Island Line.

The Myst sales gallery makes it a good option for homebuyers and investors looking for a new condo in Singapore’s coveted Bukit Panjang district.

A concept-and-price approach to tenders is used to assess tenders, and tenderers will submit their preferred concept ideas and tender prices in separate submissions.

The government is expected to select concept plans submitted which include “a distinctive, extremely sustainable mixed-use project with well-designed accessible public spaces and amenities that serve the needs of business or local residents”.

Only “compelling” concepts that are shortlisted will be considered by their cost, URA says.

Based on the estimate of URA the whole development site will yield 1.57 million square feet or office area, around 1,700 residential units and 785,480 square feet to be used for additional uses, such as restaurants, shops entertainment, hotels, and other uses for the community.

The government is expecting that after the contract is awarded it will take anywhere from 10-15 years to allow the entire extent of development to be completed, and support the burgeoning residents there.

While the potential for short-term risk is compelling, there are risks in the short-term.

The conditions of the bid will require the winning bidder to build at minimum 753,200 square feet of office space, and at minimum 600 housing units as part of the initial development phase.

The master developers will be able to reduce the remaining stock in accordance with the current market demand and as outlined by an option plan formulated by URA.

Based on this scheme The successful master developer will be required to pay in advance for the land to be developed in the initial development phase. The master developer is then required to pay an option fee which is proportional to the duration of the option period which can range from five to eight years for the option to purchase the remaining site.

This scheme of choice will assist developers to reduce the risks associated with the long-term nature of a project as per Wong Siew Ying, head of content and research of PropNex Realty. “The possibility of choosing the period of option will allow developers the flexibility to plan masterfully and building the site in line with their own assessments of market demands and risks,” she says.

Based on Tay Huey Ying, the head of research and consulting of JLL Singapore, the phased expansion of office spaces located in areas like the Jurong Lake District area will assist in alleviating the limited availability of high-quality office space anticipated to develop within the coming years.

“The site has garnered substantial interest from developers as well as those from foreign since it was added on the GLS confirmed 1H23 schedule in 2022.” Tay says. Tay she adds that developers and potential tenants are optimistic regarding the long-term prospects of this area. Jurong Lake District area to be the most commercially-oriented area in Singapore beyond the CBD.

She warns, however, that it may be difficult to get occupiers interested in leasing the office space which will be built in the initial phase. This is due to the fact that a majority of the transportation infrastructure, like Cross Island Line and the Jurong Regional Line and Cross Island Line stations won’t be fully operational until the end of the year.

The cost of land could go over $5 billion

Recent greenfield sites purchased by the federal government, which also has offices of a significant size were located in the CBD. The most recent one was the GLS site in which Guoco Midtown is in the process of being constructed that was sold for $1.62 billion which is equivalent to $1,706 per sq ft per in October 2017. The site is expected to yield 700,000 square feet of offices.

The planned IOI Central Boulevard Tower will bring about 1.26 million square feet of office supplies to the market. This GLS site was bought at $2.57 billion which is $1,689 per sq ft ppr in November 2016.

According to CBRE the development cost of the land to develop this Jurong Lake District master development site is likely to be around $1,300 per square foot per acre. That means, based on an overall GFA of about 3.93 million which means that the total cost for land could be higher than $5 billion.

“We believe that Phase 1’s minimum need to be 35% of the total area, which is why it could cost anywhere from $1.8 billion to $2.5 billion. The office component will comprise at minimum 40% of the development, whereas residential development is limited to 45% of total development” states Tricia Song, the head of research Southeast Asia, CBRE.

She says: “With this focus on the development of offices decentralised we believe there should be a small number of greenfield office sites within the CBD accessible through GLS. GLS soon. In the future the CBD will undergo a rejuvenation thanks to old office buildings being transformed to mixed-use development”.

Stringent development conditions

The long-term goal of Jurong Lake District. Jurong Lake District is transform the region into the area of a “model sustainable district” where all new developments would achieve net zero emissions in 2045. The entire area will feature various new mixed-use development, curated public spaces, as well as community facilities to support the local and business communities that are expected to be established there.

The winner of the bid to be the one who takes on the development masterplan for the site is responsible for develop and manage the phases of development and also adopt district-level urban solutions such as district cooling systems as well as an automated waste transport system.

Additionally to the above demands in addition, the principal developer will also have to deal with a variety of other planning requirements, including less car parking or green building certificates and this can affect the potential bid prices, says Tay from JLL.

“We anticipate the substantial expenditure and long-term commitment in the medium to 10 to 15 years will restrict bidders to large-scale experienced mixed-used developers with a large amount of cash that are likely to join together to take part in the tender so that they can share the risks of development,” says Tay.

“With a 20% weighting tied to the performance of tenderers master-planning mixed-use and sustainable projects on similar size (locally or internationally) The result is to reduce the amount of competition to any developers with a solid track of financial leverage and a track record,” says Lam Chern Woon the head of research and consultancy for Edmund Tie.

He agrees that not greater than four or three bids can be made and that consortiums or joint ventures could be a method to pool knowledge and reduce the risk of development.

But, he expects the bidding process to be competitive due to the obvious first-mover advantage the development of this node for commercial use. “It is more appealing if there is a brighter outlook for the return of an expressway that is high-speed that runs between Singapore to Kuala Lumpur,” says Lam.

Tenders for the master-development site will be closed on the 26th of March next year.

The Myst location

The total number of office space that is flexible across the Asia Pacific region reached 87 million square feet in March, which is the 6% rise over September 2022, according to a report from CBRE.

The Myst location offers a perfect range of amenities, connectivity, and comfort.

Flex office space had occupied approximately 4% of the overall regional office inventory by 1Q2023’s end. In addition, the percentage of spaces flex-based that are located in Grade A office space was also up, going to 3.1% in 3Q2022 to 3.5% in 1Q2023. This is due to the increasing demand from operators of flex spaces looking to upgrade their facilities to Grade A structures, says CBRE. The top three regional users of flexible office space are companies in the field of technology (35%), business services (16%), and finance-related firms (12%).

In Singapore the percentage of flex office usage in the office market overall is around 5.4%, which translates to around 4 million sq ft of city state. CBRE states that the ongoing uncertainty in the economy has increased the importance of portfolio flexibility, and triggering an increased focus on cost management, which is driving occupier to seek out flexible space.

Based on a poll of office owners in the region More than half respondents feel that the percentage of office spaces that are flexible in their portfolios isn’t being properly allocated and they plan to make more utilization of it in the upcoming months.

The report from CBRE says that tech companies continue to be the largest users of flexible office space this year. In addition, concerns about capital expenditure have led to a rise in demand for specialized workspaces. Also, there is a growing demand for event spaces as well as access to offices. Workstations on-demand (pay per usage) options are predicted to grow this year.

The Myst contractor

Waterfall Gardens topped the list of condos that reached new psf-price records during the period from May 19 through 23. This is due to the sale of a 1,830 square foot three-bedroom unit at the fifth floor $3.98 million on May 19, which amounts to $2,175 per square foot. The price is more than the previous record of $2150 per square foot, which was recorded in November 2022, when the penthouse with four bedrooms measuring 4,037 square feet sold for $8.68 million.

The person who sold the property in the transaction of May 19 had bought the property in August of 2015 for $2.75 million ($1,503 per square foot). This is an $1.23 million (45%) gain on the sale.

The Myst contractor City Development Limited (CDL) has acquired the The Myst condo at 798 and 800 Upper Bukit Timah Road, Bukit Panjang.

Waterfall Gardens is a freehold development with 132 units in Farrer Road in District 10. It was developed by MCL Land, it was completed in the year 2010. It is comprised of three towers with 12 floors each. The residents are comprised of three and four-bedroom homes that range from 1,829 to 2,583 sq feet. There are also 12 penthouse units, ranging between 3,380 and 4,844 sq feet.

Bartley Ridge is another condo that set a new psf record when a 1,173 sq feet property at the 15th level was sold at $2.2 million ($1,875 per square foot) on the 23rd of May. The three-bedroom plus study unit is more than the previous record of $1843 psf that was set in February, when the 1,302 sq. ft. apartment on the 5th floor sold for $2.4 million.

Bartley Ridge is an apartment located situated on Mount Vernon Road, off Bartley Road in District 13 that was completed in the year 2016. The project was jointly constructed by City Developments, Hong Leong Holdings and TID (a joint venture with Hong Leong Group and Mitsui Fudosan) The 99-year leasehold condo has 868 units distributed over nine towers of residential. The units are comprised of one-to four-bedroom units between 441 to 2,121 square feet.

Affinity at Serangoon also surpassed the new high of psf prices during the review period. This comes with the sub-sale of a two-bedroom-plus-study unit measuring 732 sq ft for $1.35 million ($1,844 psf) on May 22. It is higher than the previous record established in August 2022 through selling a 624 square foot unit at $1.15 million or $1,842 per square foot.

Affinity at Serangoon is a 99-year leasehold condominium situated in Serangoon North Avenue 1 in District 19. The 1,052-unit development was created by a group of local developers that is led by Oxley Holdings that includes KSH Holdings, SLB Development and Apricot Capital. It is a renovation of Serangoon Ville, a former HUDC (Housing and Urban Development Co.) estate. The units comprise one-to four-bedroom apartments of 474 to 1,711 square feet as well as 10 penthouses that range from 1,550 to 1,701 square feet. Additionally, 40 townhouses that range from 2,056 to 2,347 sq feet.

The project was announced on the market in June of 2018 and has been able to see 1044 (99%) units taken up for sale with an average price of $1,494 per square foot, according to caveats that were lodged. It is expected to be completed by the end of in the year, Affinity at Serangoon has seen a rise of sub-sale sales. Since the beginning of the year there have been 23 transactions for sub-sales in the development. The units sold range from 474 to 1,152 square feet, with prices ranging between $780,000 to $1.97 million on a per-unit basis or between $1,635 and $1.844 on the basis of psf prices.

There were no new lows for the psf recorded during the time period of the review.