GUOCOLAND will open the sale of units in its freehold condominium Meyer Mansion on Sept 13. The public preview will be held on Saturday (Sept 7).
Prices are unavailable but PropNex Realty’s head of luxury team Dominic Lee noted that the purchase price would translate to a break-even price of about $2,400 per square foot (psf).
GuocoLand bought the former Casa Meyfort residential site through a collective sale for S$319.88 million last year. The price works out to about S$1,580 per square foot per plot ratio (psf ppr), including an estimated development charge of S$57.2 million.
Eugene Lim, key executive officer of marketing agent of ERA Realty, estimates prices to “possibly be higher” than Amber Park, which has moved 157 units at a median price of S$2,475 psf as of Q2. This is due to the fact Meyer Mansion offers direct frontline seaview, he said.
Located at the former Casa Meyfort along Meyer Road, the development is a 25-storey residential tower comprising 200 units. It offers a range of units from 484 square foot (sq ft), one-bedroom apartments to 2,142 sq ft, four-bedroom premium unit.
Higher floor units of the condo boast unblocked panoramic views of the sea while lower floor units offer views of Meyer Mansion’s own gardens, said the developer. It is located in District 15, touted as a prime seafront residential district.
Said GuocoLand group managing director Cheng Hsing Yao: “It is extremely rare for a high-rise freehold site along Meyer Road to become available, and it will be increasingly so in the future. An opportunity like Meyer Mansion will be very hard to come by going forward.”
The development is a 450-metre walk via an underpass to East Coast Park, with Changi Airport a 10-minute drive away. The upcoming Thomson-East Coast MRT Line is also set to open in 2023 for prospective residents to access Katong Park MRT station within six minutes by foot.
Limited supply of freehold developments is likely to drive demand, said PropNex Realty’s Mr Lee.
“There has not been much freehold development so it will be quite sought after and the sea view is a big draw point for people who are looking out for projects in this area,” he said.
Lee Nai Jia, head of research at Knight Frank, shared similar sentiments.
“Buyers are actually willing to pay a premium for freehold units in good locations as we have seen in some of the recent developments like Amber Park,” said Mr Lee
Other upcoming developments nearby include UOL’s and Kheng Leong’s MeyerHouse (the former Nanak Mansions) on Meyer Road and Bukit Sembawang Estates’ former Katong Park Towers site.
Meyer Mansion is expected to be completed in 2024.
Looking ahead, Mr Cheng said that GuocoLand will be focussing its efforts on the commercial front with its recent development of Guoco Midtown. The mixed-development features a 30-storey office block, a residential tower with more than 200 units and a range of public spaces across a gross floor area of almost 1 million sq ft.
“We are now pushing along the leasing of the office block and the interest has been very strong among prospective tenants,” said Mr Cheng.
Original Article from Straits Times.
Entities controlled by Singapore property tycoon Kwek Leng Beng and his Malaysian billionaire cousin Quek Leng Chan have joined forces for the $980 million purchase of a freehold site in Singapore’s upscale River Valley precinct.
Their acquisition of Pacific Mansion in District 9 marks the biggest collective sale in more than a decade and the second-highest on record, according to CBRE, which brokered the deal.
Singapore-listed GuocoLand, controlled by Mr Quek, announced yesterday that it has successfully tendered for the site with Intrepid Investments and Hong Realty.
Both Intrepid Investments and Hong Realty are majority-owned by Hong Leong Investment Holdings (HLIH), which is effectively controlled by Mr Kwek, though other family members also own stakes in these companies.
GuocoLand and Intrepid Investments each hold a 40 per cent stake in the project, while Hong Realty owns a 20 per cent interest.
The latest deal marks the largest transaction in the current collective sale cycle, exceeding Tampines Court’s $970 million and Amber Park’s $907 million, and is surpassed only by the sale of Farrer Court for $1.34 billion in 2007.
CBRE director of capital markets Galven Tan said that the tender for Pacific Mansion drew interest from a handful of local and foreign developers.
Consultants estimate that the land cost for the Pacific Mansion site may translate to a break-even price of $2,530 to $2,800 per sq ft (psf), and a potential selling price of $3,000 to $3,200 psf for the upcoming project.
In just the first three months of this year, 14 collective sales have clocked total proceeds of $5.6 billion, which is already 64 per cent of the total proceeds of $8.7 billion from 30 collective sale sites for the whole of last year.
As HLIH is deemed a substantial shareholder of GuocoLand, Intrepid Investments and Hong Realty are deemed interested persons of GuocoLand under Singapore Exchange’s listing rules.
Pacific Mansion comprises 288 apartments and two commercial units. Owners representing more than 80 per cent of the strata area and share value of the development have consented to the collective sale. Each residential unit owner will stand to receive a gross payout of $3.26 million to $3.48 million. The shop units will receive between $2.2 million and $4.5 million.
Retiree Peter Chia, 60, who has been living in Pacific Mansion for the past 10 years, welcomed the news of the collective sale.
“It is a good price,” he said, adding that he has not decided where he will live in the future.
He said a new development could help breathe new life into the area, noting that the ageing property was not well-maintained.
But not everyone is glad. A resident, who wanted to be known only as Mr Lim, said he bought a three-bedroom apartment in Pacific Mansion in 2016 and would incur a 12 per cent seller’s stamp duty (SSD).
He said he has failed to get an SSD waiver from the authorities even though he did not sign on the collective sales agreement. The SSD, estimated to be $384,000, would have to be paid even before he receives the sale proceeds. “This defeats the purpose of the SSD because I am not a speculator,” said Mr Lim, adding that he spent $40,000 to $50,000 on renovations.
Original Article from straitstimes.com published on 2nd Mar 2018.
SINGAPORE – FEC Properties, an indirect wholly-owned subsidiary of Hong Kong-listed Far East Consortium International, has secured a collective sale site in Singapore’s Holland Road in District 10 for S$183.38 million.
The sale price for Hollandia translates to a land rate of SS$1,703 per square foot per plot ratio (psf ppr), according to the marketing agent Savills Singapore.
In a regulatory filing with the Hong Kong stock exchange, Far East Consortium said it plans to redevelop the site into a high-end residential development with total gross floor area (GFA) of about 10,000 sqm.”The acquisition is consistent with the company’s regionalisation strategy and is a great addition to the development pipeline in Singapore following Artra which was successfully launched last year,” it said. Artra, a 400-unit development near Redhill MRT station is jointly developed by FEC Properties and New World Development.
Occupying a corner plot at the junction of Holland Road and Queensway, the freehold site of 4,970.8 sqm lies within a popular residential enclave of landed homes and high-end condominiums. It is served by public transport plying Holland Road and is near Holland Village MRT. Sitting on the site now is Hollandia, a six-storey block of 48 apartments built in the mid-1980s.
Under the 2014 Master Plan, the site is zoned for residential use with a gross plot ratio of 1.6. Subject to planning approvals from the relevant authorities, the land may be developed up to 12-storeys with an allowable GFA of 10,004.56 sq m.
Owing to its high development baseline with an equivalent gross plot ratio of 2.01, no development charge is payable including the additional 10 per cent gross floor area for balconies.”Undoubtedly, this freehold plot will benefit from the successful tender of the highly attractive mixed-use government land sale (GLS) site located at the heart of Holland Village,” said Suzie Mok, senior director of investment sales at Savills Singapore, who brokered the deal.
The last major transacted collective sale site in the Holland vicinity was in December 2011 for Henry Park Apartments at Holland Grove.
At the agreed sale price, owners of Hollandia could expect to receive gross sale proceeds ranging from S$3.3 million to S$4.2 million, which works out to over S$2,000 psf on strata area.
Original Article from Todayonline by Angela Teng.
Buyers of residential properties valued at more than S$1 million acquired on or after Feb 20 will have to pay higher stamp duties.
The Buyer’s Stamp Duty (BSD) rate is computed on the purchase price or the property’s market value, whichever is higher. A new 4 per cent BSD will be imposed on the price or value of homes in excess of S$1 million, Finance Minister Heng Swee Keat announced on Monday (Feb 19) during his Budget statement.
For residential properties where the option to purchase has been granted and will be exercised within 3 weeks of the announcement, a “transitional provision” will be granted and current rates will apply.
The existing BSD rates for residential properties are 1 per cent for the first S$180,000, and 2 per cent for the next S$180,000. For properties valued at more than S$360,000, the next S$640,000 will be subjected to 3 per cent BSD. Following Monday’s announcement, a higher rate will apply to the remaining amount in excess of S$1 million.
Property analysts interviewed felt that the revised BSD rates were unlikely to have a significant impact on the recovering property market.
In light of the current market upswing, developers are unlikely to lower their prices as a result to try and attract buyers, they added.
“Given the upsurge in land prices in 2017 and positive market sentiments, private property prices are expected to grow by 5 to 7 per cent in 2018, and a 1 percentage point increase in BSD is unlikely to deter buying demand,” said Ms Christine Li, head of research at Cushman & Wakefield Singapore.
She added: “Given the heightened interest in the residential market, the government has timed the increase of the BSD well, as prices and transaction volumes could return in vengeance after Chinese New Year with more new launches in the pipeline.”
Moreover, as BSD rates are progressive, the effective increase would be less than 1 per cent for most properties above S$1 million but below S$1.5 million, Ms Li noted.
Taking a S$1.5 million property as an example, the current BSD payable is S$39,600. With the change, the new amount payable will be S$44,600 — or just S$5,000 more, said Mr Ong Teck Hui, national director of research and consultancy at JLL.
“As the bulk of residential transactions are below S$1.5 million, the effect of the BSD change on market demand is expected to be mild,” he said.
Nevertheless, buyers of more expensive residential properties are likely to feel the pinch, Mr Ong added. Agreeing, Ms Li felt that the increase in BSD rates would shift demand from buyers towards smaller units or properties in the suburban areas.
Mr Desmond Sim, head of CBRE Research for Singapore and South East Asia, said the higher rates may affect foreign investors more, and deter them from buying luxury properties here in prime locations. Still, he noted that overall, foreign investors pay less in property taxes and duties in Singapore, compared to place such as Hong Kong and Australia.
ZACD Group executive director Nicholas Mak said: “Over time, buyers and sellers will get used to the new BSD (rates) and it would just become a part of the property transaction costs.”
Original article from the Straits Times published on 8th Jan 2018.
Wallich Residence Condo:A New Way of Living at Wallich Residence
A refreshingly integrated lifestyle awaits residents of Wallich Residence, an exclusive collection of 181 homes that make up the tallest luxury apartments in Singapore.
And this is not happenstance, but is a result of vigorous planning to drive synergies across the different components within the mixed-use project Tanjong Pagar Centre.
Its developer GuocoLand points out that the users’ perspective is of utmost importance. Users can enjoy private and exclusive spaces, while having various amenities offered by the integrated project within reach.
One example is how the developer ensures that the hotel, office tower and the residence are integrated in design, but have their own arrival areas and identities.
The project’s master planner and design architect Skidmore, Owings & Merrill (SOM) has been pivotal in steering the outcome. It is one of the most influential architectural and engineering practice in supertall buildings in the world.
“The design for Tanjong Pagar Centre balances diverse functional requirements with a strong, unified building profile that will add an iconic presence to Singapore’s skyline,” says Mustafa K. Abadan, design partner at SOM.
“Residential units on the upper floors of the tower will provide unparalleled views to the sea and the city, while a series of retail spaces at lower floors and landscaped public parks will position the development as a new urban destination.”
According to List Sotheby International Realty, five out of the top 10 luxury apartments globally are above 200m and Wallich Residence is the only property in Singapore to be among the top 10.
The limited residential collection comprises one- to four-bedroom units, four penthouses and one super penthouse. Each home is finished with top-of-the-line materials and fittings.
Wallich residents get to enjoy bespoke concierge services, managed by GuocoLand’s concierge team in partnership with Sofitel Singapore City Centre. Their guests can be treated to an intimate dining experience at The Wallich Room with a private chef.They can also choose from an eclectic mix of F&B options – from casual dining, chic dining concepts to fine dining right within Tanjong Pagar Centre.
A sky observatory at 270m-high offers residents and their guests unrivalled views of the city and the sea.
The office and retail spaces at Tanjong Pagar Centre are mostly filled. GuocoLand notes that these tenants are mainly drawn to the amenities, convenience of having seamless connection with the Tanjong Pagar MRT station, and the profile of other tenants in the building.
“Some of the senior executives of our office tenants tell me that they feel like they live here, rather than work here,” says GuocoLand Singapore group managing director Cheng Hsing Yao.
“Work is intense for them, but every now and then, they get to go to the urban park to take a breather and recuperate, or go to the gym for quick work-out. They even come back to the complex with family and friends for coffee or meals,” Mr Cheng says.
As a testament to its success, Tanjong Pagar Centre has often been cited as a demonstration project in the mixed-use category to foreign delegates.
At the Property Guru Asia Property Awards this year, GuocoLand was awarded Best Developer under the Asia and Singapore categories; Tanjong Pagar Centre clinched Best Mixed Use Development (Singapore) and Best Green Development (Singapore) awards while its office, hotel, retail and luxury condominium components each snagged individual titles of being the best development.
GuocoLand was also conferred Honorary Award in Landmark Development Leadership in the Singapore’s Built Enviroment Industry (BEI) Asia Awards 2017.
Jonathan Stein, managing partner at SOM says: “Wallich Residence Singapore is a project that stands apart, not just by its sheer height, but also by the quality of the life one experiences here. It is the crowning jewel of this ambitious and dynamic vertical city.”
Updated, Dec 19, 2017, 12:07 a.m., to specify that observations made were based on caveats lodged with URA as at Dec 12.
On Dec 1, a three-bedroom unit on the penthouse floor at Ardmore Three sold for $4,439 psf, a new high for the project, according to caveats lodged with URA Realis as at Dec 12.
According to Dominic Lee, head of The Luxury Team at PropNex Realty, prices for luxury properties will continue to soar. “[In this property cycle,] we could easily see prices surpass $5,000 psf in more than one project,” he says.
Those who bought at luxury developments such as OUE Twin Peaks, Gramercy Park, Leedon Residence and Martin Modern early on would be sitting on profits right now, says Lee. He likens luxury properties to blue-chip stocks — there is always demand.
Ardmore Three is not done setting record prices. Prices reached $4,439 psf on Dec 1, the highest among District 10 non-landed properties sold so far this year (Credit: Samuel Isaac Chua/The Edge Singapore)
Owners who hold on to their luxury property for 10 years or more would have an opportunity to exit at a profit some time along the way, he says. “I can only remember two occasions (1997 and 2007) where the owners took a longer period to make a decent profit,” comments Lee.
The potential rate hikes by the US Fed are unlikely to dampen luxury property prices, reckons Lee. “Singapore has unbelievably low interest rates compared with our peers in the region,” he says.
High-net-worth individuals, the typical buyer of luxury properties, usually do not take on high levels of housing debt, says Desmond Sim, head of CBRE Research for Singapore and Southeast Asia. “Additional Buyer’s Stamp Duty will continue to have a larger impact,” Sim says. “That’s the first hurdle.”
Ardmore Three is not the only luxury property to have seen a record price recently. A week ago, prices hit $4,000 psf for the first time at the 181-unit Wallich Residence, the high-end residential component of GuocoLand’s mixed-use project Tanjong Pagar Centre, based on caveats lodged with URA Realis as at Dec 12.
Elsewhere in District 10, where the Ardmore Series is located, The Nassim saw a unit sold at $3,423 psf on Nov 30. It was the second-highest price psf achieved at the development, according to URA caveat data.
This article appeared in EdgeProp Pullout, Issue 810 (Dec 18, 2017).
Developers sold 785 private homes in November, slightly higher than the 760 units sold the previous month, but lower than the 860 units sold in November last year.
Original article from Channel News Asia published on 5th Dec 2017.
Tenders for two residential land parcels at Jiak Kim Street and Fourth Avenue closed on Tuesday (Dec 5), with the former receiving a top bid of S$955.4 million and the latter drawing a top bid of S$552.96 million, according to the Urban Redevelopment Authority (URA).
The land parcel at Jiak Kim Street, which is the former site of popular nightclub Zouk, drew a total of 10 offers while the site at Fourth Avenue drew a total of seven bids.
The sites at Jiak Kim Street and Fourth Avenue were launched for public tender on Oct 19 and Nov 2, respectively. Both sites were offered for sale on 99-year leases.
The highest bid for the 13,482 sq m site at Jiak Kim Street, which works out to S$1,732.55 per square foot per plot ratio (psf ppr), came from Frasers Centrepoint Limited. It is the highest unit land price achieved on a per square foot basis for government land sites sold (excluding commercial and white sites).
The highest bid for the 18,532 sq m Fourth Avenue land parcel was from Allgreen Properties, reflecting a land rate of S$1,540 psf ppr. The developer secured the freehold sites at Royalville and Crystal Tower last Friday, and is now eyeing a third site along the same Bukit Timah stretch.
The sites at Jiak Kim Street and Fourth Avenue were originally on the Reserve List of the Government Land Sales Programme.
“Both the Jiak Kim and Fourth Avenue sites were hotly contested with benchmark prices set for both locations,” said Christine Li, research director at real estate firm Cushman & Wakefield.
“The developer is probably pricing in a slight appreciation of around six to seven per cent for the selling prices of the future development. This is somewhat in line with the market expectation that prices of new homes will rise by around five to 10 per cent next year,” Ms Li added.
Head of research and consultancy Tay Huey Ying at real estate agency JLL said: “Of interest is that local developers continue to maintain their hold on the prime district market, pipping foreign developers such as China’s CSC Land and Hong Kong tycoon Li Ka-shing’s Japura Pte Ltd for the two sites at Jiak Kim Street and Fourth Avenue, respectively.”
URA accepted applications for the sale of the two sites at Jiak Kim Street and Fourth Avenue on Sept 29 and Oct 31 respectively.
A decision on the award of the tenders will be made after the bids have been evaluated.
For a personal consultation or assistance in any aspect of your ownership at Wallich Residence, please contact us.