DFG Monthly Division Meeting
DFG Monthly Division Meeting
26 Feb 2021 @
Ki Residences Showflat
Join us for upcoming DFG Division meeting cum CNY celebration on
Date: 26 Feb 2021, Friday
Time: 10am to 12noon
Venue: Ki Residences Showflat
10 Vanda link (s)287102
(Right beside Sixth Avenue MRT Station, Downtown Line)
✅ Angbao Lucky Draw for lucky participants!
✅ Lunch Provided
Register Now:
Password: dfg
Agenda
1. Awards and Promotion Presentation
2. ERA Updates
3. Upcoming DFG Training
4. Secrets Unveil: Why Ki Residences is still SO Hot!
Happy CNY! See all!
Access to ERA APAC Centre
Dear ERA DDs and Teammates
❤️Access Card Entry to ERA APAC Centre similar to MBSQ office ❤️
We are pleased to announce that entry to ERA APAC Centre is now only accessible with your Personal Access Card🎴🔐
Please note the different entry points during the following days/timings:
Weekday:
9am – 10pm: Front door access only
10pm – 9am: Back door access only
Saturday
9am – 3pm: Front door access only
3pm – 12am: Back door access only
Sunday:
24 Hour back door access only
With this new security system,
remember to wear your ID tag which act as access card to get into the office.☺️☺️☺️
OneERA
ERA Service Counters Update
Dear ERA Teammates,
Great news! From now onwards, all our Admin and HR service counters at ERA APAC Centre will be shifted to the all-new GROUND FLOOR COWORKING SPACE to serve you better. 🤗🤗🤗
The OPERATING HOURS will be as follows:
Mon – Fri: 9am – 6.30pm
Sat: 9am – 1pm
Sun and PH: Closed
☝️OneERA☝️
Specially for DFG members
Dynamic Wealth Creation is a full 3-day Advanced Training Program, suited for you if you are a Real Estate Salesperson with background in sales and have some basic knowledge in financial calculation and figures.
This Program aims to transform you and set you apart from other “Buy, Sell and Rent” salesperson.
For more details, check out the following link:
https://dynamicforce.sg/dynamic-wealth-creation/
Date: 20, 21 & 25 Jan 2021, Time: 10am to 5pm daily, Venue: APAC Center, Level 4
Max Capcity: 24 pax only (Due to social distancing requirements)
Course Fee : Free. Misc. Fee : $60 Only (Material, Rental, etc)
To register, kind use the link
PW:dfg
News Updates
Check here for more property research and insights. https://www.era.com.sg/research-insights/
8 January 2021
82 HDB resale flats sold for at least S$1m in 2020: SRX
The Business Times, 8 Jan 2021, Fri
82 million-dollar HDB resale flats sold last year in new high
The Straits Times, 8 Jan 2021, Fri
House at centre of Yang Yin saga on sale again, for $25m
The Straits Times, 8 Jan 2021, Fri
Look Ahead 2021: Defying a pandemic-induced downturn, property market set for more gains
Today Online, 8 Jan 2021, Fri
去年“百万组屋”共82间历来最多 本地10组屋单位上月以逾百万元转手
Lianhe Zaobao, 8 Jan 2021, Fri
中国籍前导游杨寅失信案要角 富婆杨厝港洋房叫价至少2500万元再推售
Lianhe Zaobao, 8 Jan 2021, Fri
Parc Central Residences 开始接受网上申购
Lianhe Zaobao, 8 Jan 2021, Fri
Please scroll down to read the full articles.
——————————
82 HDB resale flats sold for at least S$1m in 2020: SRX
The Business Times, 8 Jan 2021, Fri
THE number of Housing and Development Board (HDB) resale flats sold for at least S$1 million hit a new high last year, amid a strong showing by the market despite the Covid-19 pandemic, flash data from real estate portal SRX indicated on Thursday.
There were 82 million-dollar flats transacted in 2020, up from 64 the year before, with December adding 10 more of such transactions.
These transactions accounted for about 0.35 per cent of the total number of HDB resale flats sold last year.
SRX’s flash estimates for December also reveal that overall HDB resale prices rose for the sixth consecutive month, bringing the total price rise for 2020 to 6.4 per cent, much more than the 0.3 per cent recorded in 2019.
ERA Realty’s head of research and consultancy Nicholas Mak said this performance of the HDB resale prices and transaction volume “illustrated that the adverse impact of the pandemic and economic recession is like water off a duck’s back”.
HDB advance estimates released last week showed that resale prices rose 2.9 per cent in the fourth quarter of 2020 from the previous three months, marking the biggest quarterly increase in over nine years.
For all of 2020, resale prices rose 4.8 per cent, going by HDB’s preliminary data.
Mr Mak said: “The resale transactions of HDB flats that recently completed the five-year minimum occupation period continue to exert its influence on the HDB price index.
“These newer flats would usually be sold at higher prices than the older flats in the vicinity.”
Some of the locations with such resale flats that were transacted at higher prices are Dawson, Punggol and units in Boon Tiong Road, he said.
Meanwhile, SRX estimates put monthly sales at 2,489 units in December. That was the seventh straight month in which resale flat transactions surpassed the 2,000-unit mark, mitigating the sharp drop in sales in April and May during the circuit breaker.
Based on SRX’s figures, the string of strong monthly sales took the total resale flat volume to 23,427 units for the full year of 2020, which is 4.3 per cent higher than in 2019.
Mr Mak said the pandemic actually fuelled the expansion of the HDB resale market.
“Before Covid-19 became a household word, applicants for HDB Build-To-Order (BTO) flats may have had to wait about three years to get the keys to their new flats,” he said.
“The pandemic led to bottlenecks and delays in the construction of many public housing projects, which could add another one to two years to the completion of the flats. As a result, some potential HDB BTO applicants are turning to the resale market for their home purchases.”
He added that December is also usually a lull period in the property market, but the travel restrictions that kept Singaporeans at home meant that the HDB resale market continued to operate as normal.
OrangeTee’s head of research and consultancy Christine Sun noted that the unexpected housing boom is also likely to be “fuelled by the record-low mortgage rates, huge fiscal stimulus programmes designed to fend off an economic disaster, and the slew of policy changes made to improve the HDB market conditions over the past two years”.
Propnex head of research and content Wong Siew Ying said the firm’s market observations suggest that buying interest remains keen and the rebound in sales in recent months have prompted some sellers to raise their asking price.
“In addition, stiff competition for choice flats also saw buyers offering a higher price in order to secure the unit,” she said.
Bishan Street 24 and Dawson Road were two locations with some of the million-dollar HDB resale transactions last month.
The highest transacted price for a resale flat that month was S$1.22 million for a five-room Design, Build and Sell Scheme unit in Natura Loft in Bishan Street 24.
The HDB resale market is likely to stay strong this year, experts said.
Ms Sun said: “We anticipate that the prices of resale flats may rise further by 2 to 5 per cent.”
Resale volume may also go up by another 3 per cent to 5 per cent to between 24,000 and 26,000 units for the whole of 2021, she said.
Source: https://www.businesstimes.com.
82 million-dollar HDB resale flats sold last year in new high
The Straits Times, 8 Jan 2021, Fri
By Sue-Ann Tan
The number of Housing Board (HDB) resale flats sold for at least $1 million hit a new high last year amid a strong showing by the market despite the Covid-19 pandemic, according to flash data from real estate portal SRX released yesterday.
There were 82 million-dollar flats transacted last year, compared with 64 for 2019, after last month saw 10 more of such transactions. They make up about 0.35 per cent of the total number of HDB resale flats sold last year.
Resale prices also rose for the sixth consecutive month last month, bringing the total price rise for last year to 6.4 per cent, much more than the 0.3 per cent increase in 2019.
ERA Realty head of research and consultancy Nicholas Mak said: “The performance of the HDB resale prices and transaction volume illustrates that the adverse impact of Covid-19 and economic recession is like water off a duck’s back.”
HDB flash estimates released earlier showed that resale prices rose 2.9 per cent in the fourth quarter of last year, marking the biggest quarterly increase in more than nine years. For the whole year, resale prices rose 4.8 per cent.
Said Mr Mak: “The resale transactions of HDB flats that recently completed the five-year minimum occupation period continue to exert their influence on the HDB price index. These newer flats are usually sold at higher prices than older flats in the same vicinity.”
Read more at: https://www.straitstimes.com/
House at centre of Yang Yin saga on sale again, for $25m
The Straits Times, 8 Jan 2021, Fri
By Ang Qing
The house that former China tour guide Yang Yin nearly cheated from a rich Singaporean widow is up for sale again, at a lower price of $25 million, or about $785 per sq ft (psf) on land area.
The property was put up for sale by real estate consulting firm Edmund Tie yesterday, nearly three years after the previous tender in February 2018.
Madam Chung Khin Chun’s bungalow in Gerald Crescent, off Yio Chu Kang Road, sits on a 31,882 sq ft plot of land – about the size of half a football field. It has a 999-year lease that began in 1879.
The 2018 sale by tender by estate agency Savills Singapore was unsuccessful as neither of the two bids met the expected price of $35 million, or $1,100 psf on land area.
Madam Chung’s niece and guardian Hedy Mok, now 67, had told The Straits Times then that she had holding power to wait so she did not sell the house.
Madam Chung, now 94, had been embroiled in a bitter, high-profile dispute with Yang over her assets, including the property.
Acting as tour guide for the retired physiotherapist when she visited China in 2008, Yang moved into her bungalow a year later, brought his family to Singapore and got the widow to make a will that allowed him to inherit everything.
Yang’s crimes surfaced in September 2014 after a seven-hour stand-off between the widow and his wife.
He pleaded guilty in August 2016 to misappropriating $1.1 million from Madam Chung and falsifying receipts for a sham company to stay here and obtain permanent residency.
He was sentenced to 11 years and two months in jail.
When contacted, Madam Mok said her aunt has been living with her at her semi-detached house in East Coast for the past six years.
“She is comfortable and happy, and has come to regard my house as her home. She is aware that the bungalow is being put up for sale again,” added Madam Mok, who would not comment on the guide price of the house or the proceeds.
Property experts attributed the lower asking price of $25 million this year to several differences between 2018 and the fourth quarter of last year.
Mr Nicholas Mak, ERA Realty’s head of research and consultancy, said the housing market in the first quarter of 2018 was “quite bullish”, but housing prices fell after cooling measures were introduced in July that year.
Read more at: https://www.straitstimes.com/
Look Ahead 2021: Defying a pandemic-induced downturn, property market set for more gains
Today Online, 8 Jan 2021, Fri
By Wong Pei Ting
SINGAPORE — Despite Covid-19 roiling the economy in 2020, the year ended on a surprisingly good note for Singapore’s property market as it rebounded strongly after a slow first half of the year and did better than 2019’s results on many fronts.
- Housing and Development Board (HDB) resale prices rose a third consecutive quarter by 2.9 per cent in the fourth quarter of the year — the highest quarterly increase in about 10 years — according to HDB’s flash estimates that were released on Monday (Jan 4)
- The number of HDB flats that were sold for at least S$1 million hit a historic high. According to flash data released by real estate portal SRX on Thursday (Jan 7), there were a total of 82 million-dollar flats in 2020, eclipsing 2018’s record of 71 such deals.
- The number of private home resale transactions hit more than 9,200 units by November, surpassing the overall private home resale deals of 8,949 for the whole of 2019
- Private residential property prices grew by 2.2 per cent for the full year, according to the Urban Redevelopment Authority’s (URA) flash estimates that were released on Monday. This marks the fourth straight year of price increase
Property analysts told TODAY that the property market is gearing up for a steady recovery in 2021 as market sentiment is positive, with many banking their hopes on a successful roll-out of Covid-19 vaccines. They are even expecting the en bloc market to heat up again, while projecting the price and transaction volume of both private and HDB homes to rise moderately in the year ahead.Here’s a closer look:
Record 82 million-dollar HDB flats sold in 2020, SRX data shows1. Private residential market to remain buoyant. Demand and property prices did not dip as they normally do in a recession this time round as the employment rate was kept high with the Government’s speedy roll-out of supplementary Budgets and economic stimulus, property analysts said. Noting that the biggest dampener for the property market is a weak job market, Mr Nicholas Mak, head of the research and consultancy department at real estate firm ERA Realty, said: “When people’s job security is threatened, buying property is the last thing on their minds. “Some of them may also sell their investment properties if they lose their income, resulting in fire sales. Worse, they may have to downgrade their own homes.” He added that a downward spiral in prices was also avoided this time round as banks went easy on foreclosing on homes where homeowners had defaulted on their payments, so there was no significant batch of properties that were auctioned off at lower prices. This scenario will continue in 2021, as government support is likely to remain substantial, the analysts said.
Despite recession, 2020 sees S’poreans snapping up private property “I don’t think the Government is going to pull the rug from under the feet of most workers after such a hard-fought battle to save jobs,” said Mr Mak.
去年“百万组屋”共82间历来最多 本地10组屋单位上月以逾百万元转手
Lianhe Zaobao, 8 Jan 2021, Fri
ERA产业研究咨询部主管麦俊荣指出，新组屋项目预计延迟竣工，
本地组屋转售价整体连续六个月上升，上个月有10个组屋单位以超
新加坡房地产联合交易网SRX昨天发布的预估数据显示，以超过1
其中，碧山怡然阁（Natura Loft）的一个五房式私人组屋（DBSS）单位卖出121万8
非成熟组屋区方面，创下上月最高转售价的是后港21街的一个双层
上个月共有2489个组屋单位转手，环比增长6.8％。去年的总
业者：房贷利率创新低导致转售市场表现强劲
与11月相比，12月的组屋转售价整体上升1％，
橙易产业研究与咨询部主管孙燕清认为，组屋转售市场取得令人意外
她说：“政府推出的多个经济刺激配套为许多国人的就业机会和家庭
ERA产业研究咨询部主管麦俊荣则指出，除了因为有政府津贴，新
“冠病疫情其实推动了组屋转售市场的增长。以往，申请预购组屋的
根据博纳产业研究与内容主管黄秀莹估算，在今年和明年满五年最低
“随着更多组屋可进入转售市场，这将继续刺激需求并保持价位，让
Source: https://www.zaobao.com.sg/
中国籍前导游杨寅失信案要角 富婆杨厝港洋房叫价至少2500万元再推售
Lianhe Zaobao, 8 Jan 2021, Fri
中国籍前导游杨寅失信案轰动一时，
有分析师指出，该洋房之前3507万元的叫价是在集体出售市场热
位于杨厝港日落通道（Gerald Crescent）门牌2F的洋房，地契为999年，面积约3万
独家营销代理戴玉祥产业（Edmund Tie）昨天发文告指出，根据2019年蓝图，
戴玉祥产业执行董事徐晓芬说：“目前可重建的大型有地住宅地段已
除了有意将地段划分为多个有地住宅出售的发展商以外，
推出招标的洋房是富婆钟庆春与已故丈夫邹习经医生在1961年花
房地产分析师王伽胜接受《联合早报》访问时说，
尽管如今本地进入解封第三阶段，市场情绪开始要高昂起来，
招标活动在2月9日下午3时截止。
Source: https://www.zaobao.com.sg/
Parc Central Residences 开始接受网上申购
Lianhe Zaobao, 8 Jan 2021, Fri
今年首个推出的执行共管公寓项目Parc Central Residences即日起接受网上申购。
根据联合发展该项目的海峡实业（Hoi Hup Realty）和双威发展（Sunway Developments）昨天发表的文告，位于淡滨尼10道的
面积872平方英尺至1066平方英尺的三卧房单位，预示价从9
这个执行共管公寓（EC）项目的设计灵感取自美国纽约市的中央公
该项目原本计划在去年第三季推出，但因为疫情而推迟，地段得标尺
ERA产业研究咨询部主管麦俊荣接受《联合早报》访问时说：“E
Parc Central Residences网上申请将持续到1月19日，从1月23日
Source: https://www.zaobao.com.sg/
7 January 2021
Son of Haidilao co-founder buys $42m property
The Straits Times, 7 Jan 2021, Thu
Singapore shophouse market stays on hot streak with three new sales
The Business Times, 7 Jan 2021, Thu
Please scroll down to read the full articles.
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Son of Haidilao co-founder buys $42m property
The Straits Times, 7 Jan 2021, Thu
By Grace Leong
The family of Singapore’s richest billionaire, the co-founder of Sichuan hotpot chain Haidilao, is buying a freehold good class bungalow (GCB) in Gallop Road at the highest price per sq ft (psf) for the area.
According to documents seen by The Straits Times, the option to purchase the 21,649 sq ft bungalow, located a stone’s throw from the Singapore Botanic Gardens, was granted to Mr Zhang Hanzhi at $42 million on Dec 22.
This works out to $1,940 psf, which analysts say is the highest price psf paid for a GCB in that area.
Read more at: https://www.straitstimes.com/
Singapore shophouse market stays on hot streak with three new sales
The Business Times, 7 Jan 2021, Thu
By Kalpana Rashiwala
THE buzz in the Singapore shophouse market continues, with the sector attracting high-net-worth individuals (HNWIs) and families here and from abroad, in addition to property investment groups.
The latest deals include three adjoining conservation shophouses at 8, 9 and 10 Craig Road which went for S$29.28 million. Singapore-based property investment group 8M Real Estate is buying the three-storey shophouses from Hong Kong-based Harilela Group, founded by businessman and philanthropist Hari Harilela.
The shophouses are on three separate land lots, with balance lease terms of about 67 years. The ground floor is fully leased to three restaurants. On the upper levels, four of the six office units are leased.
8MRE is expected to find tenants for the remaining two units and do a minor renovation.
Savills Singapore brokered the deal via an expression of interest exercise that closed in October, drawing a handful of offers from private-equity funds, HNWIs and families from Singapore and overseas – mainly China and India, said Savills Singapore director of investment sales Yap Hui Yee.
Savills also acted for Breadtalk Group in the S$17.2 million private-treaty sale of a two-storey freehold corner shophouse at 22/22A Lorong Mambong in Holland Village with Harry’s Bar as the ground-floor tenant. The upper level is leased to F45 gym. The gross yield on the transacted price is about 2.5 per cent.
Ms Yap declined to comment on the identity of the buyer, but The Business Times (BT) understands that it is an entity owned by Singaporean Cheong Sim Lam; Cushman & Wakefield acted for him.
Both properties were transacted last month.
Also changing hands is 198 South Bridge Road, which went for S$27 million. Standing prominently at the junction of Upper Cross Street and South Bridge Road, this property is being sold by an affiliate of Clifton Partners, a homegrown property investment group.
Another affiliate of Clifton also sold 89 Amoy Street for S$29.8 million in November. Both shophouses have three storeys and an attic, are on 999-year leasehold sites, and were picked up by mainland China parties. BT understands that the buyer of
89 Amoy Street is a Singapore-incorporated company owned by a Chinese citizen from Xiamen City, Fujian Province. Xu Haika, a Vanuatu citizen, is buying the South Bridge Road property.
Savills’s analysis of URA Realis caveats data downloaded on Jan 6 shows that nearly S$862 million worth of shophouse deals transacted in 2020 – not a bad showing for the pandemic-struck year.
The quarterly breakdown was S$152 million in the first quarter, S$117 million in Q2, S$179.9 million in Q3, and S$413 million in Q4.
With the strong recovery in the second half of the year, the full-year figure was just 6 per cent shy of the S$916 million total reached in 2019.
Said Ms Yap: “In the the first half of 2020, during the ‘circuit breaker’ partial lockdown, we saw some shophouse owners withdrawing their properties from the market, which shows the resilience of sellers. Since then, they have started exploring and putting their properties for sale at the right price.”
Simon Monteiro of List Sotheby’s International Realty said: “The shophouse market is heating up again as more family offices are set up here by overseas HNWIs.”
He brokered the sale of 48 Tras Street for S$9.85 million and acted for the seller in the S$14.85 million sale of 56/56A Serangoon Garden Way. Both deals were in Q4 2020.
Other deals in Q4 2020 included 77 Amoy Street, which fetched S$29.8 million; 42, 44 and 46 Smith Street (S$28.8 million), 35 Kreta Ayer Road (S$11.3 million) and 44 and 46 Changi Road (S$11.6 million). A pair of adjoining shophouses in Upper Dickson Road in Little India changed hands at S$3.6 million each.
Ms Yap of Savills expects shophouses to remain an attractive segment of the property market due to their rarity and strong capital-value preservation, amid a strong liquidity and low interest rate environment.
“I envisage that these will continue to result in positive carry and drive deals in 2021,” she said.
Read more at: https://www.businesstimes.com.
6 January 2021
Haidilao family gets option to buy S$42m bungalow in Gallop Road
The Business Times, 6 Jan 2021, Wed
CBD Grade A office rents to continue slide in 2021, but less sharply than in 2020
The Business Times, 6 Jan 2021, Wed
Zoning stays but ‘no immediate need’ for housing there
The Straits Times, 6 Jan 2021, Wed
New bus terminal for Bukit Panjang opening on Jan 23
The Straits Times, 6 Jan 2021, Wed
Please scroll down to read the full articles.
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Haidilao family gets option to buy S$42m bungalow in Gallop Road
The Business Times, 6 Jan 2021, Wed
By Kalpana Rashiwala
THE family of the Haidilao hotpot chain co-founder Zhang Yong is in the initial stages of buying a bungalow in Gallop Road next to the family’s existing villa.
BT understands that an option to purchase the property was granted last month to Mr Zhang’s son at S$42 million. This works out to S$1,940 per square foot based on the freehold land area of 21,647 sq ft. On the site is an old house that is ripe for redevelopment.
Market watchers note that reflecting the price rise in Good Class Bungalow (GCB) Areas, the S$1,940 psf on land alone in the latest deal is much higher than the S$1,700 psf the family paid in 2016 for the next door bungalow which was about four years old at the time. It sits on 15,884 sq ft of freehold land. Dubbed The Winged House, it was designed by K2LD Architects in the shape of two wings.
Mr Zhang and his wife, Shu Ping, are ranked by Forbes as Singapore’s richest with a net worth estimated at US$19 billion as at August 2020.
He is the chairman and executive director and she, a non-executive director, at Haidilao International Holding, which was floated in Hong Kong in 2018. Ms Shu is also a co-founder of the company. The couple, as well as their son, who is is in his early twenties, are Singapore citizens. Last year, Ms Shu set up a family office in Singapore to manage her wealth, Bloomberg reported.
Bungalows in the 39 gazetted GCB Areas are the most prestigious form of landed housing in Singapore, with strict planning conditions stipulated by the Urban Redevelopment Authority (URA) to preserve their exclusivity and low-rise character. While anyone can buy a non-landed private home in Singapore, one generally has to be a Singapore citizen to be allowed to acquire a landed property in a GCB Area.
Activity in the GCB market has been brisk, buoyed by purchases by naturalised Singapore citizens as well as wealthy local families who continue to pick up GCBs for their children and grandchildren.
Also among buyers of this real estate class are the newly rich whose businesses have benefited from the current crisis and some of these folks are buying their first bungalow for their own occupation, say observers.
Other recent transactions in GCB Areas include a bungalow in Cluny Hill with a view of the Singapore Botanic Gardens. It was transacted at S$38.6 million or S$2,315 psf, according to URA Realis data. Along Lermit Road, an old bungalow was sold for S$34.75 million or S$2,000 psf; it is ripe for redevelopment. Another transaction, in Mount Echo Park, was at S$32 million or S$1,712 psf.
CBD Grade A office rents to continue slide in 2021, but less sharply than in 2020
The Business Times, 6 Jan 2021, Wed
By Nisha Ramchandani
GRADE A office rentals in the Central Business District (CBD) are generally expected to remain under pressure in 2021, say property consultants, as companies scale back on space amid economic headwinds.
According to JLL’s head of research & consultancy Tay Huey Ying, CBD Grade A office rents are expected to fall in 2021, although the decline could moderate to about half the 9.3 per cent pullback seen in 2020 as the economy gets back on track.
Chris Archibold, JLL’s head of leasing, expects there will be some firms reducing office space, as has been the case with past downturns.
Mr Archibold added: “Given that technology has given occupiers the ability to work remotely, the outcome could well be in excess of that seen during the Global Financial Crisis, though we are currently at around the same level.”
Executive director at Savills, Alan Cheong, expects headline rents for Grade A office space will likely decrease, with most tenants to cut space as leases come up for renewal.
Banks such as Japanese lender Mizuho Financial Group and Citigroup are already trimming office space – both are doing so at Asia Square – and other companies could follow suit when their leases expire. Amazon is poised to take over some of the space being vacated by Citi at Asia Square Tower 1 as the e-commerce giant is reportedly set to lease around 90,000 square feet across three floors.
“Some (office market players) may, in the interest of keeping headline rents stable, be open to venturing into structured deals,” Mr Cheong said, adding that it will be hard to ascertain the magnitude of headline decline as such structures may mask the effective rent.
In net cash flow terms, new leases signed or renewed could ease by an average of about 10 per cent year-on-year, he estimates.
And while some companies are keen to reduce their office footprint, this is not the case for all; some larger occupiers are maintaining their space, Mr Cheong added.
For instance, many banks would still need their frontline staff to return to the office.
According to CBRE Research, office rents in the Grade A core CBD market are already started to feel the impact of emerging vacancy. Rents dipped 2.8 per cent quarter-on-quarter to S$10.40 per square foot per month in the fourth quarter of 2020, which translates to a sharper 10 per cent drop for the full year, CBRE calculated.
In contrast, rents grew by 6.9 per cent in 2019, said CBRE, which expects occupancies for Grade A Core CBD space to see downward pressure in early 2021 despite the limited supply of new Grade A projects coming onstream.
Colliers International offers a more sanguine forecast, that CBD Grade A rents will climb 5.5 per cent in 2021 after retreating in 2020. Head of research Tricia Song outlined factors underpinning the 2021 outlook such as limited new office completions as well as space removed from the market as some older developments are rebuilt into mixed-developments; a recovering global economy prompting companies to expand their footprint; and growing demand from occupiers in the technology sector. Ms Song expects positive net absorption in 2021 as some hard-hit sectors scale back on space but sectors that are performing well expand.
Analysts expect the main drivers for office demand in 2021 to stem from firms in the tech, social media and fintech sectors.
For instance, Chinese firms ByteDance and Tencent have indicated that they are taking up office space in Singapore amid escalating geopolitical tensions with the United States.
Rick Thomas, Colliers’ executive director and head of occupier services, said: “The influx of occupiers from the tech sector will continue to drive demand and take-up, coupled with significant shifts in free trade agreements and the rise in digital banking licences (which) will accelerate growth.”
And while co-working operators – a key driver of new office space in recent years – might be more circumspect about expansion going forward, they are not expected to go anywhere anytime soon, thanks to the flexibility they offer companies. Flexible workspace operators may adopt a more cautious stance when it comes to growth and instead work on enhancing occupancy, especially for new locations, highlighted Ms Song.
Previously committed leases for co-working spaces set to open in 2021 include The Great Room at Afro-Asia i-Mark and The Work Project at CapitaSpring.
On the supply side, about 900,000 sq ft of CBD Grade A office space was completed in 2020, up from 100,000 sq ft in 2019, JLL estimates.
Among the notable projects in 2020 are 79 Robinson Road and 30 Raffles Place (formerly known as Chevron House), analysts said.
JLL’s Ms Tay projects that about one million sq ft of space will come onstream in 2021, from Afro Asia i-Mark, CapitaSpring and 21 Collyer Quay – less than the 10 year average annual new completion of 1.1 million sq ft.
In addition, more than half the total new supply for 2021 has been pre-committed, she pointed out, which should alleviate some of the downward pressure for rents.
Savills’ Mr Cheong highlighted that some buildings are expected to be taken off the market for redevelopment, such as AXA Tower and Fuji Xerox. While net effective rents could come down 10 per cent year-on-year in 2021, the decline could be cushioned if there is robust demand from displaced tenants as well as new-to-market companies, he reckons.
Meanwhile, JLL forecasts that the CBD Grade A office vacancy rate will maintain at about 6.5 per cent to 7 per cent over the next 12 months. As at end- 2020, the consultancy estimates the vacancy rate will stand at 6.8 per cent, up from 4.1 per cent as at end 2019.
Ms Song projects the vacancy rate for the CBD Grade A office market to clock 5.2 per cent for end-2020, before narrowing to 5 per cent at end-2021.
Where shadow space is concerned, there is about 900,000 sq ft of business space across Singapore that occupiers are looking to dispose of, according to Mr Archibold. This cuts across various industries, notably firms which have felt the full brunt of the pandemic, such as those in the hospitality and travel sectors. Shadow space refers to excess space on an existing lease obligation that a tenant would like to give up by finding a replacement tenant for the landlord.
“In any given market, there is always an element of space – about 150,000 sq ft – that occupiers are looking to dispose of for one reason or another,” added Mr Archibold.
Based on Urban Redevelopment Authority data, Singapore’s island-wide office market saw negative net absorption of about 871,875 sq ft in the first nine months of 2020. In contrast, 2019 saw positive net absorption of about 1.66 million sq ft.
URA’s island-wide office vacancy rate eased to 12 per cent at the end of the third quarter of Q3 from 12.1 per cent at the end of the second quarter of 2020; this is up from 10.5 per cent at the end of Q4 2019.
Zoning stays but ‘no immediate need’ for housing there
The Straits Times, 6 Jan 2021, Wed
By Linette Lai
Clementi Forest will continue to be earmarked for residential use, but there is “no immediate need” to develop the site for housing, said National Development Minister Desmond Lee yesterday.
In a written response to Dr Tan Wu Meng (Jurong GRC), Mr Lee noted that the site has been zoned for residential use since 1998.
“We will… retain the zoning of the site, while giving our future generations the option of deciding whether to use it for housing, if the need arises,” he said.
Read more at: https://www.straitstimes.com/
New bus terminal for Bukit Panjang opening on Jan 23
The Straits Times, 6 Jan 2021, Wed
By Christopher Tan
A new bus terminal for Bukit Panjang will open from Jan 23, but passengers will not be able to use it just yet.
The Gali Batu Bus Terminal, located in Woodlands Road, replaces the Bukit Panjang Temporary Bus Park, said the Land Transport Authority (LTA) in a Facebook post on Monday.
It is built on the rooftop of the Gali Batu MRT depot – and is the second bus terminal to be constructed this way to optimise land use.
Read more at: https://www.straitstimes.com/
5 January 2021
HDB resale prices up 2.9% in Q4 2020 – the biggest quarterly rise in 9 years
The Business Times, 5 Jan 2021, Tue
Singapore private home prices may rise in 2021 amid reviving economy
The Business Times, 5 Jan 2021, Tue
HDB resale prices up 2.9% – biggest quarterly rise in over nine years
The Straits Times, 5 Jan 2021, Tue
Private home prices up 2.1% in third straight quarterly gain
The Straits Times, 5 Jan 2021, Tue
S’pore economy shrinks less than expected
The Straits Times, 5 Jan 2021, Tue
HSR termination will not affect overall plans for Jurong: Ong
The Straits Times, 5 Jan 2021, Tue
近10年最大季度增幅 组屋转售价上季起2.9％今年仍看涨
Lianhe Zaobao, 5 Jan 2021, Tue
本地私宅第四季环比上扬2.1%
Lianhe Zaobao, 5 Jan 2021, Tue
Please scroll down to read the full articles.
——————————
HDB resale prices up 2.9% in Q4 2020 – the biggest quarterly rise in 9 years
The Business Times, 5 Jan 2021, Tue
THE Housing and Development Board (HDB) resale market has remained strong despite macroeconomic uncertainties caused by the Covid-19 pandemic and an increasing supply of flats.
HDB resale prices rose 2.9 per cent in the fourth quarter of 2020, up from a 1.5 per cent increase from the previous three months, said the latest HDB flash estimates released on Monday.
It is the third consecutive quarter of increase and the biggest quarterly increase in nearly 10 years; the last high recorded was in Q3 2011, when these resale prices climbed 3.8 per cent over three months.
For the whole of 2020, resale prices rose 4.8 per cent – higher than the 0.1 per cent growth in 2019 and the 0.9 per cent decline in 2018.
The fourth quarter of 2020 has also recorded the steepest yearly increase in prices since Q3 2013, with a 6.5 per cent rise from the last three months of 2019.
The final figures, with more detailed public housing data, will be released on Jan 22.
OrangeTee & Tie’s head of research and consultancy Christine Sun said that the HDB resale market’s recovery can be attributed to the slew of policy changes made over the past two years to make public housing more affordable and enhance the attractiveness of older flats.
This includes allowing buyers greater flexibility in using their Central Provident Fund (CPF) savings to buy older flats, as well as the introduction of the Enhanced CPF Housing Grant (EHG) for eligible buyers, which has a raised income ceiling and simplified grant structure.
“Many new flats which command higher prices were transacted over the past few months, which may have uplifted the overall price index in the last quarter,” said Ms Sun.
A record 72 HDB resale flats were sold for over S$1 million in the first 11 months of 2020.
This exceeded the previous full-year record of 71 units transacted in 2018 and 64 units in 2019.
Singapore private home prices may rise in 2021 amid reviving economy
The Business Times, 5 Jan 2021, Tue
By Nisha Ramchandani
PRIVATE home prices in Singapore could climb again this year as a recovering economy lifts sentiment after the private residential property index shrugged off the impact of a global pandemic to clock a 2.2 per cent gain in 2020.
According to the Urban Redevelopment Authority’s (URA) flash estimate on Monday, prices of private homes in Singapore rose 2.1 per cent quarter-on-quarter in Q4 2020 in the highest quarterly increase since the 3.4 per cent notched in Q2 2018 before the last round of cooling measures kicked in. This comes on the heels of a 0.8 per cent increase in Q3 2020.
In 2019, the private residential property index grew by 2.7 per cent.
The surprising turnaround in the private property market comes in a year where the local economy contracted by 5.8 per cent, based on the government’s advance estimates.
Maybank Kim Eng economist Chua Hak Bin pointed to supporting factors such as the collapse in mortgage rates – which has been a plus for the property market – while fiscal support, wage subsidies and hiring incentives from the government have also helped where jobs are concerned.
“This recession has been very uneven, it’s hit the lower-wage sectors a lot more,” he went on to say, adding that there are still certain sectors in the economy that continue to expand. “At the same time, one of the peculiarities about this recession is the surge in the personal savings rate, (with) the higher income segment not being able to spend on a lot of services, including travel. Some chose to plough it back into property.”
Ismail Gafoor, chief executive of PropNex, said: “We saw the sales momentum and price resilience in Q3 2020 carrying through to the final quarter of the year, as market sentiment and consumer confidence picked up steadily. In Q4 2020, market confidence got a shot in the arm on the prospect of Phase 3 as well as positive news around Covid-19 vaccines.”
Driven by the Rest of Central Region (RCR) and Core Central Region (CCR), prices of non-landed properties went up 3.2 per cent quarter-on-quarter in Q4 after edging up 0.1 per cent in the prior quarter.
By region, prices of non-landed homes in the CCR, or prime areas, rose 3.3 per cent in Q4, reversing from a 3.8 per cent decrease in Q3.
Noting that CCR had underperformed with its index shedding 3.4 per cent in the first three quarters of 2020, JLL’s senior director (research & consultancy) Ong Teck Hui, said: “The lower prices could have attracted buyers and contributed to the price increase in Q420. The rise in the CCR index was accompanied by an increase in the proportion of high value transactions of S$2,700 per square foot (psf) and above during the quarter.”
In the city fringe or RCR, prices increased 4.8 per cent quarter-on-quarter in Q4 2020, compared to 2.5 per cent in the previous quarter. Meanwhile, in the suburbs or outside central region (OCR), prices were up 1.7 per cent in Q4 2020, similar to the 1.7 per cent increase seen in Q3.
Analysts said that the higher prices in the RCR in Q4 were likely due to new projects that were launched in the fourth quarter. Notably, 108 units at The Landmark were sold at a median price of S$2,137 psf and 119 units were picked up at The Linq@Beauty World at a median price of S$2,171 psf – above the S$1,813 psf median price for all new non-landed homes in RCR in 2020.
Head of research & consultancy at OrangeTee & Tie, Christine Sun, highlighted that prices have also increased at many previously launched projects, including Fourth Avenue Residences and Kopar at Newton.
For 2020 as whole, prices of non-landed homes in CCR dipped 0.2 per cent, while prices in RCR and OCR rose by 5.1 per cent and 3.1 per cent respectively.
Meanwhile, the prices of landed properties fell 2.1 per cent in Q4, compared to a 3.7 per cent increase in Q3. For 2020, prices of landed homes edged up 0.6 per cent year-on-year, estimates Leonard Tay, head of research at Knight Frank Singapore, who reckons that demand will pick up this year. Mr Tay added: “Upgraders from large-sized condominiums in prime districts will likely take the chance to meet sellers’ price expectations sooner than later before any substantial price increase is observed in 2021 as the economy recovers.”
Given ample liquidity, a low interest rate environment and improving buyer sentiment, there is room for private home prices to head upwards in 2021, say analysts. The eventual easing of border control measures could also translate to more foreign buyers returning to Singapore.
With a number of “blockbuster launches” likely in the luxury and city fringe areas, “overall private home prices may rise by one to 4 per cent, while prices of new homes may grow at a faster pace of between 2 and 5 per cent in 2021,” said Ms Sun. She added: “We anticipate demand for resale homes to pick up further this year, while resale prices may increase around one to 4 per cent for the full year.”
Knight Frank estimates that overall private residential prices could go up by around 5 per cent this year, while PropNex forecasts home prices could climb a further 2 to 3 per cent, owing to a better market outlook and a decreasing supply of unsold units.
Huttons Asia’s director of research Lee Sze Teck expects private home prices to rise by up to 3 per cent in 2021, with up to 20 new projects to launch in H121. He said: “Selling prices are expected to edge up because of recent firm land tender prices and higher construction costs because of Covid-19 safety management measures.”
HDB resale prices up 2.9% – biggest quarterly rise in over nine years
The Straits Times, 5 Jan 2021, Tue
By Michelle Ng
The Housing Board resale market has remained strong despite macroeconomic uncertainties caused by the Covid-19 pandemic and an increasing supply of flats.
HDB resale prices rose 2.9 per cent in the fourth quarter of 2020 from the previous three months, according to the latest HDB flash estimates released yesterday.
It is the third consecutive quarter of increase and the biggest quarterly increase in over nine years – the last high recorded was in the third quarter of 2011, when HDB resale prices climbed 3.8 per cent over three months.
Read more at: https://www.straitstimes.com/
Private home prices up 2.1% in third straight quarterly gain
The Straits Times, 5 Jan 2021, Tue
By Michelle Ng
Private home prices defied the pandemic-induced recession to rise again in the final three months of 2020 – the third consecutive quarter of increase.
The price index climbed 2.1 per cent in the final three months of last year, well ahead of the 0.8 per cent increase in the third quarter, noted Urban Redevelopment Authority flash estimates yesterday.
This was the steepest quarterly increase since the second quarter of 2018, when private home prices rose 3.4 per cent before cooling measures hit in July that year.
Read more at: https://www.straitstimes.com/
S’pore economy shrinks less than expected
The Straits Times, 5 Jan 2021, Tue
By Ovais Subhani
Singapore closed its worst year of economic performance on an optimistic note with the economy shrinking less than expected.
Gross domestic product (GDP) contracted by 5.8 per cent last year amid disruptions from the pandemic, noted Ministry of Trade and Industry (MTI) advance estimates yesterday.
The full-year growth is an improvement on the MTI’s earlier forecast of a contraction of 6.5 per cent to 6 per cent made last November and much lower than its previous estimate of a 7 per cent to 5 per cent shrinkage.
Read more at: https://www.straitstimes.com/
HSR termination will not affect overall plans for Jurong: Ong
The Straits Times, 5 Jan 2021, Tue
By Toh Ting Wei
The termination of the proposed high-speed rail project will not affect overall plans for the Jurong Lake District (JLD), said Transport Minister Ong Ye Kung yesterday.
He told Parliament that the Ministry of National Development had started planning to transform Jurong as early as 2008, as part of a broader effort to develop urban centres outside the Central Business District.
The plans for the JLD were therefore developed well before Malaysia proposed the current HSR project, Mr Ong said.
Read more at: https://www.straitstimes.com/
近10年最大季度增幅 组屋转售价上季起2.9％今年仍看涨
Lianhe Zaobao, 5 Jan 2021, Tue
疫情无阻组屋转售市场价格的升势，
房地产分析师指出，整体转售价攀升与更多较新组屋转手有关，
建屋发展局昨早公布了去年第四季的预估数据，完整数据将于本月2
综合最新预估数据，组屋转售价在去年第一季后就逐季上涨，
总体而言，去年全年组屋转售价明显高于前年0.1％的增幅，
橙易产业研究与咨询部主管孙燕清指出，
政府前年推出额外安居津贴，为首次购屋者提供多达16万元的补贴
市场对转售组屋的需求维持强劲，ERA产业研究咨询部主管麦俊荣
数据显示，去年10月和11月共有4771个单位转手，
去年的百万元组屋交易同样创下新高，首11个月累计的这类交易量
博纳产业研究与内容主管黄秀莹认为，
她补充说：“组屋转售市场或也受益于住房提升者和降级者，
今年转售价料升2％至5％
鉴于宏观经济料将从今年下半年逐渐复苏，
另一方面，建屋局计划今年推出约1万7000个预购组屋单位供申
其中，建屋局下个月将率先在武吉巴督、加冷黄埔、
鉴于冠病疫情造成经济不明朗，
Source: https://www.zaobao.com.sg/
本地私宅第四季环比上扬2.1%
Lianhe Zaobao, 5 Jan 2021, Tue
(早报讯）本地私宅价格连续三个季度上涨，
根据市区重建局周一（1月4日）早上发布的预估数据，
代表中档私宅的其他中央区（RCR）非有地私宅增幅最大，环比上
表高档私宅的核心中央区（CCR）非有地私宅上升3.3%，扭转
代表大众化私宅的中央区以外（OCR）的价格增幅则维持在1.
若以全年来看，核心中央区的价格下跌0.2%，
有地私宅却没有受惠于交易活跃的非有地私宅市场，
Source: https://www.zaobao.com.sg/
4 January 2021
HSR termination could slow increase in Jurong property prices
The Business Times, 2 Jan 2021, Sat
Normanton Park in Kent Ridge to open for preview
The Business Times, 1 Jan 2021, Fri
Economy stabilising, but not yet out of the woods: PM Lee
The Business Times, 1 Jan 2021, Fri
Tough 2021 for residential landlords as rent budgets, foreign workforce shrinks
The Business Times, 4 Jan 2021, Mon
Please scroll down to read the full articles.
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HSR termination could slow increase in Jurong property prices
The Business Times, 2 Jan 2021, Sat
By Uma Devi
THE lack of a major catalyst like the Kuala Lumpur-Singapore High Speed Rail (HSR) project which was terminated on Friday may help slow the increase in property prices in the Jurong area, but experts are choosing to focus on the broader plans to decentralise the central business district (CBD) and longer-term outlook for the area.
Back in May 2015, Jurong Country Club’s (JCC) land was gazetted for acquisition for the site to be developed into the Singapore terminus of the HSR link. In January 2017, the government announced that Raffles Country Club will also make way for the HSR project, as well as a depot and stable for the Cross Island MRT line.
Savills Singapore executive director Alan Cheong told The Business Times that prices of commercial and residential properties in the Jurong district will continue to move upwards in the long run, but at a slower pace now.
The termination of the project could ease off pressure on prices in the region, and have trickle-down effects on the rest of Singapore.
“If the government wants to release more land for private residential development, that’s going to bring breakeven prices equal to or slightly above current resale prices in the Jurong East or Clementi area,” he said.
ERA Realty’s head of research and consultancy Nicholas Mak said that while the HSR project was one of the items that could create economic benefits for the area, other factors such as the overall masterplan for the rejuvenation of Jurong as the second CBD and its well-developed infrastructure could deliver benefits as well.
In 2019, the government had also unveiled a seven-hectare land area in the Jurong Lake District that could be developed into an integrated tourism project that include attractions and a hotel.
“Although the latest development on the HSR Terminus is not what some property owners in the Jurong area would desire, the impact of this news would be short-lived and it would not diminish the pull factors and potential of the Jurong-Lakeside area,” said Mr Mak.
But the negatives of the termination of the HSR project cannot be ignored.
Alice Tan, head of consultancy at Knight Frank Singapore, said the HSR could have been a chance for both countries to expand their tourism and business opportunities.
“The absence of the HSR would mean strategies to grow the tourism sector would have to be recalibrated for the longer term post-Covid, such as expanding new tourist target markets, exploring modes of connectivity and enhancing alternative modes of partnerships with Malaysia and other countries,” said Ms Tan.
“It is envisaged that urban planners would have to review their master plans, rework the details where necessary and to plan for new supporting economic activities in replacement of the HSR.”
With the HSR project axed, some might worry if plans to rejuvenate Jurong Lake District could also be shelved, which could trigger a correction in property prices as buyers turn their attention to other residential areas.
Associate director for research at Cushman & Wakefield Wong Xian Yang said he does not see a significant impact on residential prices around the area as there are other “game changing developments” in the pipeline that would underpin residential prices in the Jurong area, including the Tuas mega port and Jurong innovation district.
Mr Wong also said the cancellation of the HSR project will not affect the decentralisation of commercial activities away from the CBD as this has been going on for several years amid a “flight to value trend” in the market.
“The decentralisation story remains very relevant, and given the increased adoption of flexible working arrangements and new ways of working, we could see higher demand for decentralised space as companies review their workspace strategy and potentially look to provide multiple satellite offices near to their employee’s homes.”
In his view, it is “very unlikely” that the cancellation would have a large impact on the long-term vision of the Jurong Lake District, although there could be some tweaks in terms of planned hospitality and tourism related aspects.
Normanton Park in Kent Ridge to open for preview
The Business Times, 1 Jan 2021, Fri
By Fiona Lam
ALMOST two years after its developer was slapped with a no-sale licence, the Normanton Park private residential project can now proceed to market.
However, there are several conditions tied to the sale of its units, to protect the interests of homebuyers, the Urban Redevelopment Authority (URA) told The Business Times (BT).
The development, situated in District 5 and next to Kent Ridge Park, will open for public preview on Jan 2, 2021, said Kingsford Huray Development in a statement on Thursday.
Normanton Park will likely be the largest project launch in 2021, going by its total of 1,862 residential units, which are equipped with smart-home features, the Chinese property developer added.
It is expected to obtain its temporary occupation permit (TOP) in 2023.
Kingsford was issued a no-sale licence in January 2019 for the project, which prohibited it from selling units before obtaining the TOP although it could still begin construction.
That came after the Building and Construction Authority (BCA) found that some building works such as windows and barriers at the company’s other project – Kingsford Waterbay along Upper Serangoon View – had deviated from regulatory requirements. Angry residents there reportedly took the Chinese firm to task over poor construction work.
Feedback received from buyers of another condominium, Kingsford Hillview Peak near the Hillview MRT station, was also taken into consideration at the time, BT reported.
Kingsford Waterbay was ordered to stop building works in December 2017, and that was lifted after rectification works were done. Separately, the developer was fined S$130,000 in July 2017 for repeated safety lapses at the Hillview Peak work site.
The no-sale ban was lifted on Nov 30 for Normanton Park, according to the Urban Redevelopment Authority’s (URA) website. A sales licence was issued instead.
A URA spokesperson told BT on Thursday that in issuing the sales licence for the project, the Controller of Housing had taken into consideration the fact that Kingsford had completed the Waterbay project “satisfactorily” with the certificate of statutory completion (CSC) and titles issued.
The Hillview Peak condominium also received its CSC and titles, and the developer “has also taken steps to resolve the issues previously raised by the homebuyers”, URA added.
For Normanton Park, one of the sale-licence conditions imposed is that all its units must pass the BCA’s Quality Mark assessment before Kingsford can apply for a TOP.
Kingsford noted on Thursday that Normanton Park will seek to obtain the 100 per cent Quality Mark certification, which measures the quality of workmanship in every dwelling unit of a newly completed private residential project. URA told BT in 2019 that in general, such a requirement is “so that homebuyers can be assured that their housing units are constructed and finished to a reasonable standard of quality”.
Normanton Park has 1,840 one to five-bedroom units and penthouses across nine 24-storey towers encircling swimming pools. The apartment sizes range from 45-65 square metres (sq m) for one bedroom units to 150-167 sq m for five-bedroom units.
On the ground floor are 22 two-storey, 196 sq m strata terraces with direct adjoining pool access and a private parking lot each.
In addition, there are eight commercial units: seven 43-44 sq m shops and one 104 sq m restaurant.
The indicative prices begin in excess of S$700,000 for the condominium one-bedroom apartments, S$1 million for the two-bedroom units, about S$1.5 million for the three-bedroom units, S$2 million for the four-bedroom units, and nearly S$2.8 million for the five-bedroom apartments.
The strata terrace houses carry indicative price tags starting from around S$3.4 million, while the commercial units are priced from S$2 million onwards.
The development is near the Southern Ridges green corridor, which includes Kent Ridge Park, HortPark and Mount Faber Park. Also in close proximity to it are business centres such as Singapore Science Park 1 and 2, Mapletree Business City, Fusionopolis and Biopolis.
The mega project’s five marketing agencies are ERA Singapore, Huttons Asia, OrangeTee & Tie, PropNex and SRI. The sales gallery and show suites are located at 1 Normanton Park; visits are by appointment only.
Kingsford is owned by Chinese-citizen-turned-
Source: https://www.businesstimes.com.
Economy stabilising, but not yet out of the woods: PM Lee
The Business Times, 1 Jan 2021, Fri
By Lee U-wen
AFTER experiencing the “most severe downturn” since independence 55 years ago, Singapore’s economy is on track for a rebound in 2021, said Prime Minister Lee Hsien Loong on Thursday.
He cautioned, however, that the recovery will be uneven and activity will likely stay below pre-Covid levels “for some time”.
“Economically, we are not yet out of the woods, but we are beginning to see signs of stabilisation. Employment has picked up, and MNCs are making significant new investments in Singapore,” he said in his annual New Year Message.
Mr Lee said the government “has gone all out” to support workers and companies in order to prevent huge job losses and business failures.
He noted that five Budgets were passed in 2020, totalling nearly S$100 billion. The government had to dig deep into the country’s past reservers to help companies and workers via initiatives such as the Jobs Support Scheme, the Self-Employed Persons Income Relief Scheme, and the Covid-19 Support Grant.
New channels, both virtual and physical, were set up to help match job seekers to employers that were still hiring, he noted.
Mr Lee said full credit should go to the government’s tripartite partners too in this national effort to save jobs and help as many people as possible.
“Employers did their best to keep their workers employed, and pressed on with transforming their businesses and re-designing jobs for their workers. NTUC (National Trades Union Congress) and the unions did their utmost to help workers hold on to their jobs, learn new skills, and find new jobs if they lost their existing ones,” said Mr Lee. “We will continue to make sure that in these difficult times, Singaporeans get the appropriate support they need.”
Giving his latest assessment of the Covid-19 situation, Mr Lee said that through “enormous effort and sacrifice”, the pandemic has stabilised here, even as the virus continues to spread in other parts of the world.
Singapore, he said, has achieved the primary objective to protect lives and keep people safe, while keeping the fatality rate “very low”. There have been 29 deaths to date.
He said the number of new local infections has come down to a handful a day, and zero on many days.
There are some imported cases – mainly Singaporeans and permanent residents returning from abroad, and construction and foreign domestic workers who are essential for new housing projects and to take care of people.
“These have generally been isolated on stay-home notices, and thus pose less danger of spreading the virus to our community, although that can still happen,” said Mr Lee.
With Singapore now in Phase 3 and the vaccination process already under way, Mr Lee stressed that “it will still take some time” for enough people to be inoculated before the country is safe from another major uncontrolled outbreak.
“In the meantime, we must maintain discipline, and continue with safe distancing and all the other precautions that we have been taking,” he noted.
“Now is not yet the time to celebrate. That time will come. Meanwhile, I ask for your support to keep up our efforts, and not to falter in this final stretch.”
Mr Lee said what has stood out in the nation’s response to Covid-19 is the trust that Singaporeans have in the system and in one another.
He pointed out how, in many other countries, the virus has deepened old fault lines and created fresh tensions.
Singapore, on the other hand, has avoided major divisions among the population, as well as the pessimism and loss of trust that has occurred elsewhere, according to Mr Lee.
“Trust in our system remains high. Singaporeans have cooperated with the government and complied with the Covid-19 rules, because the government has been open and upfront about the facts, and justified your faith that it is doing its very best to deal with the crisis,” he said.
Mr Lee said that voters returned the People’s Action Party government to power at the July 2020 general election because they were “confident” that this team could see Singapore through the crisis.
“My team and I will strive to continue deserving your trust, to keep on strengthening our social compact, to sustain the promise of Singapore as a fair and just society, and to help you achieve your hopes and dreams,” he said.
“We are determined to give every Singaporean equal opportunity to do well, to prepare you to take advantage of opportunities in a different world, and to help you deal with life’s inevitable setbacks.”
While no one knows for sure what the world will look like post-Covid, Mr Lee stressed that Singapore “must emerge strengthened” by the shared experience of this crisis.
“Whether we indeed become a more vibrant economy and resilient society will depend on us, and on the decisions that you and I make in this crisis and beyond,” he added.
Tough 2021 for residential landlords as rent budgets, foreign workforce shrink
The Business Times, 4 Jan 2021, Mon
By Siow Li Sen
IT’S going to be another gloomy year for private residential landlords as cuts to tenants’ rental budgets continue while more foreigners lose their jobs in Singapore.
And don’t hold out for the Chinese tech companies which are expanding in Singapore to fill the increasing number of empty homes, as it’s far from clear how many expats they will send here.
The vacancy rate is estimated to rise to 7 per cent and 8-9 per cent for full-year 2020 and 2021, respectively.
At end-Q3 2020, the vacancy rate was 6.2 per cent, and there were 23,171 units of vacant private residential units (both landed and non-landed). It was up from 5.4 per cent in Q2 2020 and 20,182 vacant units.
The highest vacancy rate since 2010 was in Q2 2016 when it hit 8.9 per cent, which resulted in 30,310 homes standing empty.
Hardest hit will be posh homes which could see rents fall 2-3 per cent for 2020 and by another 3-5 per cent in 2021 as rental budgets get cut, said Savills Singapore executive director Alan Cheong. Rents of non-landed properties in the core central region (CCR) fell by 2.1 per cent from Q2 2020 to Q3 2020.
“The vacancy rate for 2020 is estimated at about 7 per cent. For 2021, we estimate a vacancy rate of 8 per cent to 9 per cent,” said Mr Cheong.
Wong Xian Yang, associate director, research, Cushman & Wakefield projects a vacancy rate of 6.5 per cent for 2020.
“Despite poor economic conditions, we don’t expect vacancy rates to rise sharply given limited new supply due to construction delays due to the pandemic situation. Only around 3,000 new residential units are expected to complete in 2020,” said Mr Wong.
“For 2021, vacancy rates could move up to around 7.5 per cent by the end of the year given an increase in supply and muted demand due to poor economic conditions and air travel restrictions,” he said.
As for rents, he expects private non-landed rents to fall by about 0.5 per cent for the whole of 2020.
“For 2021, we expect the decline in rents to continue, albeit gradually, given limited supply of new units in 2021. Overall rents could fall by -2 per cent to -1 per cent in 2021,” said Mr Wong.
“The private rental market is perhaps one of the ‘greater casualties’ of the pandemic when compared to other property segments,” said Christine Sun, head of research & consultancy at OrangeTee & Tie.
As a result of strong government support for local employees, residents were relatively less vulnerable to redundancies than foreigners.
“New foreign employment shrank significantly amid a grimmer hiring outlook,” said Ms Sun.
Non-residents took the biggest hit during the pandemic, according to a Ministry of Manpower report released in December.
It found that the total number of people working, excluding foreign domestic workers, fell by 158,700 from January to the end of September. Non-residents made up 139,100 of this.
In the third quarter alone, non-resident employment declines were most evident in construction, manufacturing, transportation and storage, and administrative and support services.
The government policy is to attract certain highly skilled workers to Singapore, such as in the IT and the pharmaceutical industries, said Nicholas Mak, ERA Realty head of research & consultancy. “But these workers are also in high demand in other countries. Some will come to Singapore,” said Mr Mak.
The expansion of Chinese tech companies in Singapore such as Alibaba, Tencent and ByteDance could provide a little relief, but beleaguered landlords should not bank on this.
Of the four digital banks licences awarded in Singapore, two were nabbed by Ant Group and a consortium comprising Greenland Financial Holdings, Linklogis Hong Kong and Beijing Co-operative Equity Investment Fund Management.
“In China, what companies typically do for out of city employees is to rent a multi-bedroom apartment to house them,” noted Mr Cheong.
“Its still early days to predict the outcome as to how many foreigners Chinese tech and social media companies will (bring) to Singapore. Chief amongst which is the question of why spend so much more on staffing and accommodation costs when work can be done from China and then electronically dispatched out?” he said.
“Presently, it seems that there is a lot of hype and people are putting the cart before the Chinese tech horse. All this could end in disappointment,” said Mr Cheong.
There is a sizable proportion of mainland Chinese tenants in Singapore, and their budgets are quite varied and their income range can be quite wide, said Ms Sun.
“It also depends on whether they are here for study or work,” she said.
For those who are here to work, many prefer to rent near their offices in locations such as Kovan, Jurong, Clementi, Punggol and Tampines, she said. “Many have also rented HDB resale homes,” said Ms Sun.
Savills’ Mr Cheong said Caucasians with families usually cluster around schools which offer their home countries’ education.
The Australians and French with children tend to congregate around the Serangoon Gardens and Lorong Chuan area. Americans either rent near the Singapore American School in Woodlands or around District 10 to be close to the American Club, a major focal point for their social activities, he said.
The British are spread out throughout the island while more South Koreans would be found around the Hillview/Bukit Batok area. Japanese would be in the West and the East as Japanese schools have campuses in these respective areas. The Germans would be around the Upper Bukit Timah/Dairy Farm area. The South Asians would cluster around the East Coast area and of late, are increasingly seen in condominiums around Upper Bukit Timah/Bukit Panjang.
Mr Cheong said that those without families would rent studios or co-share homes that are often either within the CBD or at the fringe. Other areas in favour are around East Coast/Joo Chiat. Tenants working in Changi Business Park tend to look around Bedok/Tanah Merah while those living in Holland and Queenstown would likely work in the CBD or One-North.
As expats downgrade, rentals in the rest of central region (RCR) for 2020 are expected to remain flat, said Mr Cheong.
“However, with more new completions in 2021 and the trickle down effect of rental budgets being slashed, rents for the RCR in 2021 is expected to fall by 3 per cent,” he said.
The only region to do well is the outside central region, or OCR, where rents rose one per cent in Q3 versus Q2.
“Rents in the OCR in 2020 is forecast to rise 2 per cent as this region is the backstop for all those who wish to rent private residential properties. For 2021, we also expect rents in the OCR to rise, albeit marginally by one per cent to 2 per cent,” said Mr Cheong.
Cushman & Wakefield’s Mr Wong said some tenants who used to share spaces might have opted to look for their own space given the on-going pandemic and fear of infection.
The best places to be a landlord?
It’s Red Hill and Tiong Bahru in District 3 where rental rates grew 7 per cent year-on-year (yoy) in Q3, according to ERA’s Mr Mak who analysed the median rental of all the 28 postal districts.
Next is District 14’s Geylang and Eunos with gain of 6.2 per cent yoy, while High Street and part of Beach Road in District 6 enjoyed a rental rise of 5.9 per cent.
On the other hand, the homes which fared the worst were in Tanjong Pagar and Anson in District 2 where the rental rate plunged 7.8 per cent yoy. The rental rate decline in Little India, Farrer Park and Jalan Besar in District 8 was 6.8 per cent yoy, while it was down 6.4 per cent in District 21’s Upper Bukit Timah, Clementi Park and Ulu Pandan.
31 December 2020
Normanton Park gets green light to sell, but with conditions
The Straits Times, 31 Dec 2020, Thu
HDB to trial smart parking system at Punggol Northshore
The Business Times, 31 Dec 2020, Thu
1,190 families get keys to first smart-enabled HDB homes here
The Straits Times, 31 Dec 2020, Thu
Please scroll down to read the full articles.
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Normanton Park gets green light to sell, but with conditions
The Straits Times, 31 Dec 2020, Thu
By Grace Leong
Normanton Park, a 1,862-unit leasehold condominium project that was hit with a no-sale licence nearly two years ago, has got the green light to sell its units, but with conditions.
The largest and first new launch for next year will open for public preview on Saturday.
Normanton Park comprises 1,840 condo units, 22 strata terraces and 8 shop units.
To ensure that the interests of home buyers are protected, the Controller of Housing (COH) has required that the sale of the units be subject to sale licence conditions.
One of the conditions requires developer Kingsford Huray Development to complete a Quality Mark assessment for all units before applying for a temporary occupation permit (TOP), a spokesman for the Urban Redevelopment Authority (URA) told The Straits Times.
Essentially a voluntary scheme, the Quality Mark measures the quality of workmanship in each unit of a newly completed private project. But the COH can stipulate the Quality Mark assessment as a condition in a sale licence, where necessary.
The ban on sales of Normanton Park condos was applied in January last year after a raft of complaints from owners about shoddy workmanship and poor amenities at the developer’s other projects, including the Kingsford Waterbay.
Developers with a no-sale licence can begin construction, but cannot sell units off-plan without approval from the COH.
The URA said the order was imposed because the developer had failed to meet requirements for certain building works at Kingsford Waterbay, such as its windows, barriers and common-storey shelter.
The Building and Construction Authority had found that some building works at Kingsford Waterbay “deviated from requirements under the Building Control Act and regulations”, the URA said.
Feedback about shoddy workmanship from owners of another development, Kingsford Hillview Peak in Bukit Panjang, was also taken into consideration.
To ensure that the interests of home buyers are protected, the Controller of Housing has required that the sale of the units be subject to sale licence conditions. One of the conditions requires developer Kingsford Huray Development to complete a Quality Mark assessment for all units before applying for a temporary occupation permit (TOP), a spokesman for the URA said.
But the ban was lifted on Nov 30 and a sales licence for Normanton Park was issued to Kingsford Huray after it “completed the Kingsford Waterbay with certificate of statutory completion (CSC) and titles issued”, the URA said.
“The Kingsford Hillview Peak project has also been issued with CSC and titles, and the developer has also taken steps to resolve the issues previously raised by the home buyers,” the URA added.
For the Normanton Park project, the developer will have to “budget at least 12 months to complete the Quality Mark assessment across all 1,862 units”, a spokesman for the Kingsford Group told ST yesterday.
The scope of the assessment includes the workmanship standards of internal finishes of the flooring, internal wall, ceiling, door, window and fixtures like wardrobes and kitchen cabinets, among other things. It will also include water ponding tests for the bathrooms and toilets, said the spokesman.
“There will be inspection fees, preparatory costs and additional construction costs incurred to… ensure adherence to workmanship standards,” the spokesman added.
Kingsford Huray, which bought the plot in a collective sale in October 2017 for $830.1 million, has to finish selling the units by early 2023 or risk incurring additional buyer’s stamp duty (ABSD).
Developers must sell all units in any new project within five years of buying a site to qualify for upfront remission of ABSD on the land purchase price. If a developer fails to do so, it must pay the ABSD, with interest. The levy was 15 per cent for sites acquired from Jan 12, 2013, and this was raised to 25 per cent in July 2018.
To attract early-bird buyers and incentivise agents, Kingsford Huray is dangling carrots including 10 Mercedes-Benz cars in a lucky draw. Buyers of the first 800 units and the agents involved will be eligible for the draw.
Five property agencies – ERA Singapore, Huttons Asia, OrangeTee & Tie, PropNex and Singapore Realtors – have been appointed to market the massive project.
HDB to trial smart parking system at Punggol Northshore
The Business Times, 31 Dec 2020, Thu
By Fiona Lam
STARTING on Jan 4, 2021, Singapore’s Housing and Development Board (HDB) will conduct a trial of a smart parking system at Punggol Northshore.
This system, Parking@HDB, is the latest addition to the suite of smart features in the waterfront district, where smart-enabled Build-To-Order (BTO) flats have just been completed.
For a start, the trial will be carried out at one car park, PL80, said HDB in a press statement on Wednesday.
PL80 has 1,000 lots, serving the flat owners of smart-enabled housing precincts Northshore Residences I and II. Both precincts span 12 residential blocks with 1,402 flats.
Among the first four features to be tested is the seamless entry and exit. The car park will not have gantry barriers; instead, vehicle plates are registered via cameras.
In-app notifications will also be included in the trial. Motorists who park short-term will receive these alerts in real time for the start and end of parking sessions, and on parking charges incurred.
Those who park in an unauthorised lot will receive an automated alert informing them to shift their vehicles, if they have downloaded the app. They will face a fine if they do not remove their vehicles. Smart cameras are installed in the car park to detect motorists who park illegally.
Also to be trialled is the option to pay parking fees with credit or debit cards through the Parking@HDB app.
Parking charges will be automatically deducted when a vehicle exits, without the need for motorists to manually activate the app. This means they do not need to insert cash cards into the in-vehicle unit or worry about insufficient funds.
Moreover, the trial will include overhead colour-coded light indicators which signal availability of lots.
Other features will be introduced progressively, HDB said. For instance, based on usage data collected, the system will allocate lots to meet varying demands on a real-time basis.
Motorists who download and use the Parking@HDB app can park for free for their first three sessions at PL80.
HDB will later extend the trial to other car parks in the Northshore district in tandem with the completion of the BTO developments.
Residents and motorists are welcome to submit their feedback with HDB. Based on the trial’s results and feedback, the statutory board will then explore the feasibility of implementing the smart parking system beyond Punggol Northshore.
HDB on Wednesday also announced that Northshore Residences I and II have been completed.
About 85 per cent, or 1,192, of homeowners at the two BTO projects have collected their keys as at Dec 14.
These flats are equipped with smart distribution boards and smart sockets, which help residents monitor their energy consumption, including for specific home appliances.
These built-in fittings also enable homeowners to more easily adopt smart home solutions. In other words, any appliance – lights, fans or coffee makers – that is connected to a power source can be controlled with a mobile app. The smart distribution board replaces the conventional distribution board in HDB flats.
Beyond the flat, residents can also look forward to more reliable estate services. Sensors will monitor and issue alerts when the maintenance of common amenities such as lights and lifts is required.
Estate management is expected to be more efficient as well, given new technologies such as smart lighting at common areas that adjust lighting levels based on human traffic patterns.
“The completion of the first smart precincts in Punggol Northshore is a major milestone in HDB’s smart journey which started in 2014,” said the housing authority’s chief executive officer Cheong Koon Hean.
The two precincts are the first batch of smart-enabled BTO flats to be rolled out by HDB. Punggol Northshore is the country’s first public housing district to test smart technologies right from the design stage.
“As HDB enters its seventh decade, it will continue to tap on smart solutions and adopt bold ideas to create the best possible homes for Singaporeans,” Dr Cheong added.
Source: https://www.businesstimes.com.
1,190 families get keys to first smart-enabled HDB homes here
The Straits Times, 31 Dec 2020, Thu
By Michelle Ng
More than 1,400 households will be able to monitor electricity usage across appliances in smart-enabled flats in Punggol Northshore.
As at Dec 14, 1,192 home owners who have collected the keys to their flats – about 85 per cent of the total – are the first in Singapore to live in such smart-enabled Housing Board flats, the HDB said yesterday.
The 1,402 units in total are in 12 residential blocks spread across two Build-To-Order (BTO) projects, Northshore Residences I and II. These flats are equipped with smart power sockets and high-tech distribution boards, which enable occupants to transform them into smart homes.
Read more at: https://www.straitstimes.com/
30 December 2020
Show-flat for first assisted living HDB units opens
The Straits Times, 30 December 2020, Wednesday
JTC launches site at Jalan Papan for tender
The Business Times, 30 December 2020, Wednesday
Single-owner plots, older CBD office sites in focus as home sales keep pace
The Business Times, 30 December 2020, Wednesday
Spotlight on single-owner plots, older CBD offices
The Straits Times, 30 December 2020, Wednesday
Please scroll down to read the full articles.
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Show-flat for first assisted living HDB units opens
The Straits Times, 30 December 2020, Wednesday
Published by Michelle Ng
A show-flat for Singapore’s first assisted-living public housing is now open at HDB Hub, a week ahead of schedule.
To be located in Bukit Batok West Avenue 9, the Community Care Apartments are targeted at those aged 65 and above who wish to live on their own and yet enjoy some care, support and communal activities.
Yesterday, seniors who visited the show-flat told The Straits Times that they were attracted to the new concept, which allows them to forge close relationships with other people in their age group.
Read more at https://www.straitstimes.com/
JTC launches site at Jalan Papan for tender
The Business Times, 30 December 2020, Wednesday
Published by Michelle Zhu
JTC on Tuesday launched an industrial site Plot 7 at Jalan Papan for tender, marking the last of three confirmed list sites under the second half of Singapore’s 2020 industrial government land sales programme.
Spanning almost 0.9 hectare, the site has a gross plot ratio of 1.4 and comes with a 20-year tenure. It is zoned B2 for heavy industrial use.
Tenders for the site will close at 11am on Feb 23, 2021. Interested parties may purchase tenderer’s packets at S$107 inclusive of GST, through the online purchase form available on JTC’s website.
Read more at https://www.businesstimes.com.
Single-owner plots, older CBD office sites in focus as home sales keep pace
The Business Times, 30 December 2020, Wednesday
Published by Vivienne Tay
SINGLE-OWNER plots and older central business district (CBD) offices are now in the spotlight as residential property developers eye strong residential sales.
Cushman & Wakefield (C&W) expects more buzz in residential investment activity in the early part of 2021 as residential sales continue to keep pace, it said in its market outlook 2021 series.
C&W executive director of capital markets Shaun Poh said the recent sale of the Guillemard-Jalan Molek site at S$93 million has sparked a wave of interest by residential developers, particularly mid-sized ones, to look at sites that will help them ride the current cycle.
Spotlight on single-owner plots, older CBD offices
The Straits Times, 30 December 2020, Wednesday
Single-owner plots and older central business district (CBD) offices are now in the spotlight as residential property developers eye strong residential sales.
Cushman & Wakefield (C&W) expects more buzz in residential investment activity in the early part of 2021 as residential sales continue to keep pace, it said in its market outlook 2021 series.
C&W executive director of capital markets Shaun Poh said the recent sale of the Guillemard-Jalan Molek site at $93 million has sparked a wave of interest among residential developers, particularly mid-sized ones, to look at sites that will help them ride the current cycle.
Read more at https://www.straitstimes.com/
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