Financial loan rules clarified for deferred home payment

Buyers of private property taking up deferred payment schemes will not be able to borrow as much as they thought they could, following a clarification in loan guidelines.

The Monetary Authority of Singapore (MAS) issued a circular to banks last week saying such schemes should be taken into account when calculating how much a buyer can borrow.

Under deferred payment schemes, introduced for completed projects such as OUE Twin Peaks in March, buyers can move into their new homes once they have exercised the option to purchase and made a small down payment. They will then have to pay all of those other sum, generally through a financial loan, within 1-3 years, with regards to the developer’s guidelines.

Buyers in standard buys of finished properties need to pay the full total within seven to twelve weeks.

Nevertheless MAS stated deferred repayment schemes ought to be treated being a benefit for the purpose of the buyer and, therefore , be used into account when ever computing a home loan. As “the borrower may use the deferred amount for the purpose of other needs during the deferment period, for instance , investing the deferred sum for a revisit… MAS looks at this an advantage to the borrowers”, it stated.

Financial institutions need to now take these advantages from the purchase price in calculating how large a real estate loan an individual may take, added MAS, which in turn provided a formula for the purpose of banks to account for the significance of such rewards. Under existing rules, if, perhaps an 70 per cent loan-to-value ratio, a buyer will take out a $1. six million financial loan for a $2 million residence. But beneath the deferred repayment scheme, assuming 90 per cent of the purchase price is deferred for a 12 months, buyers can borrow only $1, 587, 328, said MAS.

MAS added that rental guarantees, where developers give buyers the certainty of rental income for a set period, should also be treated as a benefit and be similarly accounted for when calculating loan amounts. This would apply, for example , to Hilltops, being developed by SC Global, which offers two-year guaranteed rental returns intended for the luxury Cairnhill project.

An OCBC spokesman said home buyers should be aware that banking institutions will grant a loan based on the adjusted purchase price – that is, the price after the deduction of any discounts, rebates or benefits.

Borrowers buying under the deferred payment scheme “should be aware that their loan amounts will be reduced… (and) must be prepared for a bigger amount intended for down payment”, said Ms Tok Geok Peng, DBS Bank’s executive director of secured financing.

Said a CapitaLand Singapore spokesman: “Our stay-then-pay program remains desirable as it gives upgraders time to remove their existing residential property just before taking up a home loan for the private residence, in which case the money required will be smaller. inch

Many potential buyers in Tower system 2 equipment at Cal king Peaks currently have opted for the deferred repayment scheme although most have never yet requested loans.

In spite of the benefit charged in, the scheme nonetheless gives great returns about investment in the event the buyer rental prices the unit away, said a salesman. Some potential buyers who delay payment can be anticipating loan-to-value changes as time goes on.

Lee Foundation-linked firm sells shophouses

Several shophouse deals have been completely sealed lately.

A Shelter Foundation-linked firm has distributed a line of four freehold conservation shophouses along Outram Road with respect to S$23. almost 8 million to construction and property group Chiu Teng.

In another offer, a pair of next to shophouses for 277 and 279 Fresh Bridge Street – in which Korean BARBECUE and steamboat restaurant Manbok operates on a lawn floor — was people paid S$14. your five million.

The freehold, four-storey shophouses, which can be on a single area lot and still have a total major floor place (GFA) of around several, 450 sq ft, are purchased by FEDERAL ACT Holdings.

The customer is thought as a company connected to Singapore-based SilkRoad Property Lovers, a property expenditure management firm set up in 2012 by the past AEW Asia senior managing team led by Philip Wittendorp.

Along Boat Quay, two next-door shophouses will be changing hands in two separate bargains.

No fifty four Boat Quay is being people paid S$12. being unfaithful million with a company that may be part of the Chua Chuan Leong Group, which in turn among other things, possesses Goldbell Tower system along Scotts Road; the customer is a company not directly owned simply by Tai Ngakl Estates Sdn Bhd. Zero 53 Vessel Quay offers fetched S$13 million; it is being sold by two individuals to a Singapore-incorporated company named Heritage Circle. Both the properties are on sites with 999-year leasehold tenure and span three levels and an attic.

In Outram Road, Chiu Teng, which is picking up four shophouses at Nos 265, 267, 269 and 271, is expected to do additions and alterations work on the four-storey house, which is zoned residential with commercial use at the first storey.

The property is in the Tiong Bahru Secondary Arrangement conservation area.

Chiu Teng’s price displays S$1, 482 per square foot based on the existing GFA of 16, 061 sq ft. There is potential to increase this space by 2, 314 sq ft to achieve the maximum 18, 375 sq ft allowed, based on the 3. 0 plot ratio indicated for the 6, 125 sq ft site in the Urban Redevelopment Authority’d (URA) Master Strategy 2014.

The properties are understood to be more than 50 years old although they have been spruced up. Chiu Teng’s price reflects about 3 per cent gross deliver based on the asset’s current rental money. All four sell units for street level as well as 15 of the doze apartments previously mentioned have been rented.

Most of the rents run out inside the the primary and second quarters of next year which in turn would make that timely with regards to the buyer to embark on a serious refurbishment of your asset.

The residential part may be reconfigured into small units and installing a good start would enhance their rental require.

In addition , the property’s distance to the well-liked Tiong Bahru area means it is in a really leasable position for both rental rentals or probably serviced rentals.

The ground-floor units can be spruced up and rented to superior eateries.

Pulau Properties, which can be selling the shophouses, is certainly owned by the Lee Foundation and people of the Lee family.

In September, a fully-owned unit of Lee Rubber, which is also controlled by the Lee family, offered a standalone block of 11 adjoining shophouses in Lavender Road for nearly S$55. 56 million. In that deal, the Lee Rubber subsidiary carved out a 99-year leasehold interest for the buyer, Broadway Textile.

Kuik family member will buy GCB with S$16m in Oct once 60 arrived units marketed

A member on the Kuik relatives that founded the Sim Lian Group snagged a fantastic Class Pavillon (GCB) last month in Saying Drive just for S$16 mil while Nasrat Muzayyin, a director and shareholder of several petroleum trading businesses here, found a pavillon in Section 11 just for S$22. twenty-four million.

They were among a few 60 caveated landed non commercial transactions really worth S$336. 76 million last month.

This adopted a exciting third one fourth that noticed 375 arrived homes changing hands just for S$1. six billion as a whole, after a few 321 offers were transacted for S$1. 34 billion in the second quarter.

The aggregate value in Q3 symbolized an 18. 8 % increase within the preceding one fourth and a 36. six per cent leap from a year ago.

Bungalow authorities note that the continued decline in landed house prices have made it more attractive just for buyers to commit. Arrived home prices have been strike harder than non-landed prices, with a steeper 14. almost eight per cent land from the optimum in Q3 2013, depending on official stats.

Now, prices are cost-effective and tempting to those looking for landed homes for the past one to two years to come in.

With this latest order by Kuik Sin Pheng, a daughter of Sim Lian Group founder and executive chief Kuik Oh Han, the Kuik relatives now has a total of three GCBs in the Saying area, among the rare GCB zones in District twenty three. The purchase price more than gross floors area works to over S$1, 700 per square feet (psf) for the property, which has a built-up area of about 9, 000 square feet.

Mr Kuik does not hold executive roles in the recently delisted group. But he has been a director of several private operating entities of Sim Lian Holdings, a private vehicle of the Kuik family.

Given that the two-storey house sitting on the 1, 449 sq ft plot is relatively new, it could be renovated instead of being redeveloped. The Business Times understands that the property is most likely for family use.

The seller of this GCB, a US citizen, had bought the property in 2008 for S$8. 58 million and redeveloped the house.

Since a rule change in the second half of 2012, only Singaporeans can buy landed homes in GCB areas. Previously, foreigners who are Singapore permanent residents could buy such homes if the land area did not exceed 15, 000 sq ft – subject to the nod of the Land Dealings (Approval) Unit.

As for the bungalow snagged by Mister Muzayyin for Narooma Street in Center 11 via an estate sales, the old residence is likely to be destroyed and redeveloped.

When approached, Mr Muzayyin declined to comment nevertheless BT is aware of he is ordering for purchase purposes.

Mister Wong via Realstar The best noted that the 1, 435 sq feet plot, which in turn now has a built-up part of about your five, 000 sq ft, could possibly be redeveloped in to three fresh bungalows.

The property is within a two-minute travel to Raffles Town Club, and a 10-minute travel to Hwa Chong Company and Nanyang Girls’ High school graduation.

Mr Muzayyin, an American-turned-Singaporean, is a overseer of a lot of private firms including PHOTOVOLTAIC Oil Singapore (the Singapore trading left arm of PetroVietnam), Concord Strength Oil airport terminal, Amity Green electricity provider and Source Capital, depending on searches about corporate-information system Handshakes.

His family workplace, Sebrina Groupe Pte Limited, which this individual helms when CEO, possesses stakes in private firms Concord Strength, Atlas Strength, and Sebrina Holdings Investment capital, Handshakes’ info as of November 2 displays. According to Sebrina Holdings’ website, the firm has got investments throughout oil and gas, company finance, properties and investment capital. Its across the world real estate collection is worth more than US$60 mil as of 2015.

There seems to become a pick-up in activity via individuals trying to find landed homes and programmers seeking potential plots for the purpose of landed trends.

While arrived transactions inside the fourth one fourth should nonetheless hold up, 2017 will be more unsure depending on the way the interest rates problem pans away.

Some of the GCBs are going listed below S$20 mil so it causes it to be quite appealing for those who are taking into consideration.

GCBs will be the most esteemed type of arrived housing in Singapore as a result of planning restrictions imposed. There is a minimum terrain area of you, 400 rectangular metres (15, 069 sq ft) and cannot be created more than two storeys huge (plus a loft and a basement).

Confident bids expected for Fernvale site: consultants

Bidders for the residential site at Fernvale Road will most likely be looking to emulate the success of the nearby High Park Residences, a gigantic 1, 390-unit project that is nearly fully sold.

The site, launched for sale by public tender by the Urban Redevelopment Authority (URA) on Tuesday under the confirmed list of the H2 2016 government land sales (GLS) programme, can yield about 605 units.

The site area is about 17, 196 square metres, with a maximum gross floor area of 51, 590 sq m. The lease period is 99 years.

Keen competition is expected, with consultants generally expecting five to 10 bids, ranging fromS$440 to S$490 per square foot per plot ratio (psf ppr).

An analyst said that fairly good response from developers in bidding for this site can be expected due to the success of High Park Residences as well as positive market sentiments.

Located almost adjacent to High Park Residences, the subject site could potentially enjoy the winning formula of providing affordable homes near amenities such as the shops and eateries in Jalan Kayu and Seletar Shopping center, schools, the Thanggam LRT station and straightforward accessibility to the Tampines Highway.

High Playground Residences released 1186 gadgets in Come july 1st 2015 and and has got sold 1169 units. Their strongest capability is their affordable charges, at about S$989 psf, which in turn would serve mainly to entry-level individual home customers.

When CEL Development’s partnership bidded for the purpose of the Huge Park Homes land package (which consists two closest plots) that kicks off in august 2014, this managed to get all of them on the affordable – for S$438 and S$448 psf ppr correspondingly.

Developers are usually likely to consider the possibility which the residential companies are bottoming out, and so bidding will probably be firm and competitive. The winning put money on is likely to be a shade more than the Huge Park Homes site, for between S$430 and S$490 psf ppr, with five to twelve parties contesting.

A property experienced further remarked that there are only a few upcoming mass-market private condo projects however to be released in the Sengkang area.

This individual calculated that for product sales transactions via January 2016 to Come july 1st 2016 in nearby real estate (High Playground Residences, H20 Residences, Riverbank@Fernvale, Rivertrees Residences), most of the gadgets were made at S$970 psf to S$1, 060 psf.

Individually, some buyers or programmers may be seeking other sites, particularly the Upper Serangoon site, and can not take part or created a competitive bid.

The commercial and residential internet site along Higher Serangoon Street right alongside Woodleigh MRT Station will be launched on the confirmed list in December this year.

Another consultant said that the launch of this offer is on time as it gives a window of opportunity for the purpose of developers to shore up their area banks. Critical indicators point out the market approaching its trough – the unsold share is at a list low as well as the recent selling price index shapes show rates have reached a stable state.

Like the Fernvale Street site, just three household sites will be confirmed accessible in this second half of 2016. This will undoubtedly nudge builders to put money on for this website.

Jurong Point put on market with over S$2b price tag

Singapore’s biggest provincial shopping middle, Jurong Stage, has been created for sale using a price tag going above S$2 billion dollars.

This calculates to a lot more than S$3, 500 per rectangular foot depending on the industrial net lettable area of regarding 658, 500 sq feet that is available for sale simply by an equal partnership between Guthrie GTS and Lee Betty Tah Groupe, both of which were delisted.

For over S$2 billion, the high cost translates to a sub-4 % net produce, Michael Leong, director of sole advertising agent Mixture Realty, informed The Business Circumstances.

Guthrie and Lee Betty Tah will be divesting an overall total net lettable area of 702, 000 sq ft — including forty-four, 000 sq ft of space beneath the government’s Community/Sports Facilities Program (CSFS) which can be currently being utilized by occupiers including NTUC Primary Campus Co-operative’s My Primary Skool and voluntary well being organisations.

We have a further space of about fifty nine, 000 sq ft underneath three strata retail equipment divested simply by Lee Betty Tah and Guthrie regarding two decades before to Great Village, NTUC FairPrice and POSB — taking the total net lettable area in Jurong Point out 761, 500 sq feet.

Guthrie and Lee Betty Tah are offering their 702, 000 sq ft in the mall through the sale of shares in companies that personal this space. “The two partners possess owned the property for many years and want to look at pursuing new interests and opportunities, ” said Mr Leong. Lee Kim Tah was delisted in early 2015 and Guthrie in November 2013.

Most stockmarket analysts might think that a net yield of 3-plus per cent based on Guthrie and Lee Kim Tah’s asking price is too low to make for a yield-accretive purchase by Singapore mall Reits (real estate investment trusts).

However , Jurong Point is expected to appeal to a broad range of other institutional investors including sovereign wealth funds, pension funds and insurance groups.

Rarely do stabilised assets of this scale become available. There have been no comparable sales of a suburban retail house of this size on the open market for more than a decade in Singapore’s tightly held retail sector; other large sales have been either related party transactions including listed Reits or sales of partial interests.

A high-performing mall, Jurong Point is regarded as “fortress retail”. This, combined with the powerful growth planned for the Jurong area, will ensure a broad range of interest at the indicated pricing.

Jurong Point is seamlessly linked to the Boon Place MRT Train station and Bus Interchange. It currently draws an average month-to-month visitorship of six million and has a catchment of 150, 000 households within a five-km radius, with potential for growth because the new town planned in Tengah is progressively developed.

Major tenants for the space at Jurong Point possessed by Guthrie and Lee Kim Tah include FairPrice Xtra, Process of law, Harvey Grettle, Uniqlo and Kiddy Building in addition to 3 foodcourts. Signing up for ranks in the near future will be BHG, which will wide open a nearly 65, 000 sq ft mall on 3 levels in December; element of this space was previously populated by Kim Little.

The mall is virtually fully permit.

Jurong Level stands about two sites; one has an equilibrium lease term of about seventy six years plus the other, fifth there’s 89 years. All their combined area area is certainly 557, 288 sq foot.

The original Jurong Point was completed in 95 and ranges four degrees of retail space (Basement one particular to Level three). The CSFS space is about Levels some, 5 and 6.

Recognized, which was designed in 2008, includes three sell floors — Basement one particular and Amounts 1 and 3.

Regarding 1, 1000 carpark a lot in Jurong Point are around for use by simply shoppers.

The mall’s total gross floorboards area (GFA) is 1 ) 07 , 000, 000 sq foot; there is no unutilised GFA.

Jurong Lake Area: From backwater to growing hub

The remaking of Jurong Pond District — earmarked mainly because the second Central Business Location – had taken another step forward last week with all the shortlisting of five planning teams to help develop its masterplan.

They were selected from 35 teams that submitted concepts after the City Redevelopment Expert (URA) create a demand proposals to transform the area into a “district in the future”, with a new business precinct and High Speed Rail terminus.

One of the five teams will be appointed because consultant by January, and will work with the URA and relevant companies to flesh out a detailed plan for Jurong Lake Area that will feature car-lite, innovative urban spaces and a mix of commercial and residential advancements.

The blueprint to revamp the area, unveiled in 2008, now has 220, 000 sq m of office space and 216, 000 sq m of selling space. When fully developed, Jurong Lake District could support 175, 000 jobs, the URA said.

“Companies within Jurong Lake Area can also influence and produce synergies with complementary businesses in the production, logistics and support solutions in Jurong West, Tuas Port and the upcoming Jurong Innovation Area to grow their procedures, ” said Mr Lee Wai Family member, group representative for proper planning for URA.

Jurong will keep pace with emulate the achievements of Singapore’s first of all regional middle in Tampines in the east, and see on its own evolve in a thriving business hub. The dramatic improvement of Tampines Regional Middle started in the 1990s, to the back of the Government’s attempt to move business activities to other parts belonging to the island to help relieve congestion preventing over-development inside the central place.

Since then, even more regional zones have come about: Jurong Pond District, Woodlands Regional Middle and Seletar Regional Middle. Together, the four local centres — each using a distinct name – will assist you to sustain Singapore’s competitiveness by simply supporting further more growth in order to meet the business, retail, and housing requires. Woodlands Local Centre, for example, is imagined as Singapore’s Northern Entrance, with a cross-border link — the Johor-Singapore rapid flow system — being organized.

The URA said Woodlands Regional Middle has 15, 000 sq m of office space and 88, 1000 sq meters of sell space, considering the potential to gradually provide about 100, 1000 jobs when ever its improvement is completed.

If the new MRT stations in Woodlands, within the Thomson-East Shoreline Line, happen to be completed, builders, investors and tenants might increasingly check out Woodlands mainly because an efficient and attractive edge town.

The newest stations — Woodlands North and Woodlands South – under the Thomson-East Coast Series will additional boost connection when they are completed in 2019.

The development of Woodlands Regional Centre got off the ground with all the sale in April 2014 of its first commercial site, which is being jointly developed into an integrated commercial project, Woods Square, by Far East Organization, Sekisui House and Far East Orchard.

“This is usually our seventh project in Woodlands, following four home and two industrial advancements… We have been taking part in the Woodlands story since the late 1990s with our 1st project, the Woodgrove Bungalows, ” Ms Shaw Lay down See, main operating officer for home sales at Far East Business, told The Straits Instances.

Woods Square will be ready by 2021, and Far East Organization is usually slated to become a major occupier as it plans to relocate staff presently there.

The development of the fourth regional centre at Seletar is still some way off – set to begin after 2030. “Located next to the Seletar Aerospace Park, it has the potential to grow to two instances the size of Tampines Regional Centre, ” said URA’s Mr Lee.

Analysts say careful long-term planning will ensure the regional centres meet the needs of Singapore’s future advancement. The gestation period for just about any regional centre can be as lengthy as 20 to 30 years and their advancement should be phased to help with all the economy at different stages.

Apart from the four key regional centres, a few business clusters and perimeter centres as well supports expansion in main sectors and emerging companies, including one-north for the biomedical and infocomm and media corporations.

July’s new home sales get over June tranquillise, tranquillize, calm down, quiet, quieten

The individual housing market obtained some energy last month, when developers distributed 1, 091 private homes (excluding professional condominiums), more than double the 536 models sold in June.

Consultants feature the noticeable increase to the pick-up after the mid-year lull. June is when buyers tend to hold off buying and developers hold back new launches due to the school holidays. But consultants say July’s performance also points to some regained confidence among developers to launch new projects.

Not all, though. CapitaLand was cautious with its landed Victoria Park Villas project, launching just six out of its 109 models in its initial launch, although it sold almost all six models at a strong S$4. three or more million to S$4. 9 million each. This indicates eager interest in landed homes which are limited in supply.

The boost in July’s sales also has to do with the larger release volume of 624 units in July, more than twice June’s 234 launched units.

The primary market remains strongly launch-driven, evident in the robust sales in March and could this year, which were respectively motivated by the commences of Cairnhill Nine and Gem Houses.

The one particular, 091 individual homes bought from July was your highest per month sales in 2016. This kind of suggests that industry outlook, which in turn turned confident in the earlier portion of the year, appears to be carrying through past mid-year.

The spike in key home revenue in September was essentially in response for the sensitive rates of the simply major individual property unveiling in the month, Lake Significativa, which reignited buying fascination and made up more than 50 per cent of your total number of units available.

MCL Land’s Lake Significativa was the best selling private household projects in July, going 464 sections out of the five-hundred launched for a typical price of S$1, 368 per rectangular foot (psf). This symbolizes a 93 per cent take-up rate, and is also testament to the growing benefit of the Jurong Lake Location vicinity.

Several buyers can also have improved drastically their acquire decisions in July to avoid buying in the inauspicious Hungry Ghost Month in August.

Including ECs, a private-public housing hybrid, some 1, 486 units were launched (versus 234 in June), and 1, 921 sold (versus 768 in June).

The EC market was energetic in July, with the release of Sim Lian’s Cherish Crest and Hao Yuan Investment’s Northwave, as well as constant sales at several launched EC projects that continued to be actively promoted.

In all, 830 EC devices were sold in July. The best-selling EC projects in July were Treasure Crest, Bellewaters and Sol Quadrat (see table).

The total quantity of new private homes sold in the 1st seven weeks of 2016 stands at close to five, 000 devices, 6 per cent lower than the same period last year. The drop is largely due to the colossal release of most from the units at the 1, 390-unit High Park Residences as well as strong take-up last year.

The primary market is showing signs of stabilisation, with July’s new home prices staying resilient, without any substantial drop in prices across projects. Analysis also showed that sales coming from previously launched projects increased about 22 per cent in the January-July period, compared to a year ago.

This lends strength to the proposition the primary market may possess bottomed and is in recovery. But it is hard to envisage a V-shaped recovery considering that cooling measures remain in place and the economic system remains weakly. Barring a sudden deterioration inside the global economic system, the primary marketplace is likely to secure around current levels.

Consultants generally anticipate sales functionality to float at about five-hundred to seven-hundred units monthly for the rest of the season, culminating within a total revenue volume of six, 000 to eight, 000 sections for the whole years, excluding ECs.

August needs to be quiet amongst the Famished Ghost Month and not enough launches, i have heard it said. Two key projects, Cl?ture Riviera for West Shoreline Vale by simply EL Creation, and the Forest Woods in Serangoon by simply City Trends, are expected to launch in September.

Shareholders confident of S’pore’s long lasting potential


Value: $3. 38 billion

Sale of the 43-storey retail and office building in June by global investment firm BlackRock to Qatar Investment Authority’s sovereign wealth fund set the record of being the largest single-asset and office transaction in the Asia-Pacific region.

This indicates foreign investors’ confidence in the Singapore office market and anticipates long-term positive growth. More foreign investors from all around the world are expected to continue chasing large assets here in 2017.


Value: $2. 57 billion

Malaysian plantation and real estate tycoon Lee Shin Cheng blew away the competition for the Marina Bay site last month with a super bullish top bid that set a record for a mixed-use site in the Government Land Sales programme.

His bid was 16. 4 per cent above the second-highest bid by Mapletree, and reflects confidence that currently lacklustre office rents will recover to their 2015 peak by 2021, when the project is expected to be completed.


Value: $1. 78 billion

In the biggest industrial property deal of the year, Mapletree Commercial Trust bought an office tower and three business park blocks at the Pasir Panjang integrated office and business park complex in July.

Despite the blockbuster price, analysts judged it a good buy because of the expected healthy yield and the location, which is popular with multinational corporations and government agencies.


Value: $960 million

CapitaLand Commercial Trust Management acquired the remaining 60 per cent stake in the office tower CapitaGreen that it did not already own for $383 million in August.

The value of the stake in the 40-storey building on the site of the former Market Street Car Park was $960 million, based on an agreed market value of $1. 6 billion.

The trust manager said that the deal will improve the portfolio for long-term growth.


Value: $560 million

Indonesian tycoon Tahir is buying the 28-storey Straits Trading Building in the Central Business District from Sun Venture Group.

Mr Tahir is the founder of Indonesia’s Mayapada Group. He also bought a 12-storey office block at 110 Robinson Road for $45. 1 million. His $560 million purchase works out to a price of about $3, 250 per sq ft – a new record for the psf price in the area.

Professional rents can dip 6-8% in Q4

Average commercial rents island-wide could street to redemption 6-8 % year on year inside the fourth one fourth of 2016, as industrialists continue to consider bold loan consolidation and moving steps to manage challenging organization conditions. Leases have gone down 4. some per cent cumulatively for the first 50 % of this year, regarding to public data via JTC. Leasing statistics just for the third one fourth are not unveiled yet.

Nevertheless according into a property agency, overall commercial rents fell 1 . 2 per cent quarter on quarter (q-o-q) in Q3 to S$2. 08 per square foot per month (psf pm). The decline was broad-based, across most locations.

The report said some industrialists are relocating to lower-rent locations even if the locations are not as attractive. Some used car traders and parallel car importers are also moving to smaller showroom premises amid weaker car sales.

With softened demand and strong pipeline supply of industrial space in the market concurrently, the double- whammy situation is expected to weigh upon industrial rental prices further. This can be in exemption to freehold industrial gadgets where require and rental prices are likely to stay resilient offered the limited supply.

In the transaction side, the agency also needs average rates for leasehold factory and warehouse gadgets to street to redemption 4. your five per cent to six. 5 % year on year (y-o-y), and those for the purpose of freehold plant and storage place units to fall zero. 5 % to two per cent y-o-y in Q4.

The moving of greater oil and gas products and services companies can be expected to effects smaller promoting companies inside the Pioneer-Tuas bunch especially. More compact companies giving supporting products and services in the gas and oil industry and ecosystem are required to face better headwinds inside the coming 2 to 3 quarters, seeing that oil rates continue to street to redemption and with large international oil and gas products and services companies McDermott and Subsea 7 transferring most of their very own operations away of Singapore to Kuala Lumpur, Malaysia. The companies got made the decisions recording, with McDermott citing closeness to local clients seeing that the inspiration for the move, although Subsea several is proposed to have chosen so for the purpose of cost factors.

A subsequent wave of consolidation can be expected amongst these small enterprises, and this is going to lead to even more weakness inside the demand for space in the Pioneer-Tuas industrial bunch. In particular, openings of places of 1, five-hundred sq ft or less, which meet the needs of such smaller businesses, is expected to rise.

The Pioneer-Tuas cluster in fact suffered the largest rental decline of 9. 6 per cent q-o-q in Q3 among all the regions, mainly due to the under-performing oil and gas industry, related offshore and marine services, and general manufacturing that dragged down the activities of related and supporting trades in the Business-2 cluster for heavier industrial use.

Rents in certain clusters that are considered more established industrial hubs were more resilient. These include the Kaki Bukit, Ubi, Paya Lebar, Eunos cluster and Kallang, Geylang, Bendemeer cluster, which respectively improved by 2 . 6 per cent and 1 . 3 per cent q-o-q.

These venues also have amenities such as food centres, and are supported by improved accessibility thanks to the near completion of stage-three Downtown Collection by 2017 which covers stations such as Bendemeer, Ubi and Kaki Bukit.

As for business park rents, they also moderated downwards by 4. 1 per cent q-o-q to S$4. 22 psf pm in Q3, despite earlier talk that this hi-tech space will be better able to preserve its rental values. Nonetheless, business park space equipped with flexible layout, ready amenities, good connectivity, and clustering effect remain well-occupied, the report said.

On the transaction side, average price of upper-floor strata-titled factory units rose in Q3 despite the number of transactions falling. In the first two months of Q3, there were only such 84 transaction caveats, making up just over a third of the 222 caveats lodged in the whole of Q2.

For the purpose of warehouses, normal prices of upper-floor strata-titled units fell into tandem with softening require. There were just five tricks lodged inside the first 8 weeks of Q3 – regarding 30 % of the seventeen caveats stuck in the whole of the preceding one fourth. But freehold assets, especially in the central region, continued to be highly preferred, evident in the quarter-on-quarter improvement with their transaction rates over the past two quarters.

Hougang project most popular that kicks off in august BTO physical exercise

Contrary to expected values, new Real estate Board houses in Tampines were not the most notable draw in this kind of month’s Build-to-Order (BTO) introduction, which closed down at midnight.

Rather, Buangkok Woods in Hougang was the most popular project, with 4. 4 applicants for each three-room flat and 4. a few for each four-room flat as of 5pm yesterday.

There were 1 . 3 to 2 . a few applicants for each available unit in Tampines, depending on flat type. This was also generally lower than application rates in the non-mature estates of Yishun and Sembawang.

Mature towns, as classified by the HDB based on when they were developed, are usually the most popular in BTO launches due to their generally more central locations and established amenities.

In May, for example , applications for flats in Ang Mo Kio and Bedok far outstripped those intended for flats in Bukit Panjang and Sembawang.

Experts said the high supply of Tampines flats might explain the lower application rates this time.

There were 2, 736 units launched in Tampines and 1, 325 models – not including two-room flexi flats – across three non-mature estates.

First-timer application rates intended for Tampines are still oversubscribed despite the high supply, pointing to relatively good demand for flats in Tampines.

One first-timer is Mr Fang An Da, 27, who applied for a Tampines four-room flat with his wife. Said Mr Fang, who is self-employed: “It is a little bit expensive but the location is nice, that is why we chose it. ”

Also, the absolute number of applicants is highest for Tampines. Mature estates will continue to be more popular due to the lack of available land for new housing units.

For some buyers, price is a factor.

“I would have liked Tampines, but it is more expensive since we are getting a four-room flat, ” said technician Abdul Hadi Ali, 28, who applied for a Hougang four-room unit.

The starting price for a four-room flat before grants is $289, 000 in Tampines, but $255, 000 in Hougang.

Mr Yeo Boon Kwee, 64, is applying for a two-room flexi unit in Hougang as it is more affordable than a larger flat. Such models start at $79, 000 just before grants. “Hougang is more central than Yishun, ” this individual said.

Two-room flexi equipment remained well-known in this month’s BTO work out, with 6 and installment payments on your 5 people per device in Hougang and Yishun respectively. These kinds of units have been around in high demand seeing that singles had been first permitted to buy them in July 2013.

Buyers able to pay more could be waiting for apartments in Bidadari, which is even more central.

One of these is entrepreneur Peter Quah, 72, exactly who said: “Tampines is so far. ” He’s waiting for another BTO in November rather.

Apart from two, 180 apartments in Punggol, the Nov launch offer homes in three an adult estates: you, 660 in Bedok, you, 000 in Bidadari — which is thought to be part of Toa Payoh — and two hundred fifty in Kallang/Whampoa.