Two good class bungalows (GCBs) at Queen Astrid Park will be auctioned together by TM Asia Life Singapore as part of its plan to dispose of non-core assets.

‘We are seeking offers in excess of $36 million, which works out to $890 per sq ft of the land area,’ said Irinn Lee, auctioneer and director at Credo Real Estate, which will conduct the auction.

‘Going by recent sales of GCBs and the condition of the houses, which overlook lower-lying bungalows, we believe they may even be knocked down at auction well above $36 million.’

The bungalows – numbers 29 and 29A Queen Astrid Park – sit on a sprawling 40,453 sq ft site.

They are for sale to one buyer as the land is yet to be sub-divided into two titles.

The bungalows were built around 1999 and each has a built-up area of about 8,500 sq ft. The auction will take place on Sept 24.

Ms Lee said that the values of GCBs in Queen Astrid Park have held up well, even during down markets.

In June last year, a 10-year-old house at No 1 Queen Astrid Gardens, on a 15,680 sq ft site, was sold for $20 million or $1,276 psf.

And in November last year, an old bungalow at No 25 Queen Astrid Park, on 38,549 sq ft of land, was sold for $31.8 million or $825 psf.

Sales of GCBs have picked up over the past few months as high-net-worth individuals stepped up purchases.

The action started in April when $56 million of GCBs were transacted. It gathered steam in May and June, when $188 million of deals were done each month.

Then in July, more than 20 GCBs changed hands for more than $300 million.

In contrast, GCB sales totalled only $27.5 million in the first quarter of this year.

GCBs are the premier form of housing in Singapore.

They are confined to 39 designated areas and there is an estimated total stock of about 2,500 units only.

Source : Business Times – 27 Aug 2009

Last month, more than 20 landed homes in Serangoon Gardens and Lorong Chuan areas changed hands, according to URA Realis database of caveats lodged. From July 24 to 31 alone, contracts were signed for 10 properties — seven terraced houses, a pair of semi-detached homes and a single-storey bungalow.

One of the oldest housing estates in Singapore, Serangoon Gardens Estate was built for British soldiers based on the island in the 1960s, and in the 1970s, it became a popular residential estate among middle-to-up-per-class Singaporeans. In recent years, it has undergone a tremendous transformation with the relocation of the Australian International School (AIS) to Lorong Chuan. The expansion of AIS — it is opening a senior wing in March — as well as the opening of Stamford American School on Aug 17, is likely to lure more expatriate families to the neighbourhood.

One of the transactions between July 24 and 31 involved a relatively new, 2½-storey terraced house, with its own lap pool, on Huddington Avenue. The 2,949 sq ft property was sold for $2.75 million ($931 psf) based on a July 31 contract date. The property last changed hands for $1.4 million ($474 psf) during the property boom in August 2007, most probably as the original house prior to redevelopment.

On Bridport Avenue, a pair of newly built semi-detached houses were sold — one, with a land area of 2,153 sq ft, fetched $1.78 million ($825 psf); the other, with a slightly larger footprint of 2,164 sq ft, $1.86 million ($862 psf). The original single-storey terraced houses were purchased by the same owner-turned developer for $1.05 million ($487 psf) in April 2008 and $1.12 million ($517 psf) in November 2007, respectively.

One street away on Tavistock Avenue, a single-storey detached house on 5,307 sq ft of freehold land was sold for $2.9 million ($546 psf), with a contract dated July 24. Prior to that, there was a caveat in April for the property for $2.08 million ($392 psf), which adds up to a 39% price appreciation in just four months. Along the same road, a 2,153 sq ft single-storey terraced house was sold for $1.22 million ($568 psf). It last changed hands 12 years ago for $1 million ($466 psf).

Meanwhile, on Worthing Road, a relatively new 2½-storey semi-detached house on 2,982 sq ft of land was sold for $2.08 million ($698 psf). The original property changed hands six years ago during the last recession for $830,000 ($278 psf), according to caveats lodged with URA Realis.

At a Colliers International auction on July 29, a single-storey, semi-detached house with a 999-year leasehold on a 4,907 sq ft site was sold for $2.5 million after active bidding, from the opening price of $2.2 million. This was attributed to the redevelopment potential for a 2½-storey bungalow.

Serangoon Gardens will continue to be a sought-after residential district for both investors and owner-occupiers, given the amenities and great food, such as those at the famous Chomp Chomp Food Centre, the Serangoon Gardens Market and Food Centre, as well as restaurants, wine bars and supermarket, says Fred Teo, head of business unit at Knight Frank Property Network. “Houses in Serangoon Gardens have always been very well traded,” he says.

Teo adds that there’s a good mix of redevelopment for leasing to expatriate families and for owners’ own stay, with most maximising the built-up area by building 2½-storey properties from the original typically single-storey homes.

Given Serangoon Gardens’ accessibility to public transport and amenities, home owners have been able to secure tenants easily, notes Teo. Newly built, nicely fitted out terraced houses can command $6,000 to $8,000 per month in rental, he says, while semidetached homes fetch between $8,000 and $12,000 per month, depending on the size of the land and quality of the home. For bungalows, rental rates are said to be $10,000 to $15,000 per month.

Source : The Edge – 24 Aug 2009

MERCHANT Square in the Clemenceau Avenue area and four freehold strata bungalows at Bournemouth Road in the Katong locale are among the latest offerings in the property investment sales market.

The guide price for Merchant Square is about $48 million – or 34 per cent lower than the $73 million sought for the property in February last year.

Its owner, carpet manufacturer Jackson Carpet, did not get its asking price then for the property, which comprises offices, some shop space and 76 car park lots.

BT understands that the latest price reflects a net property yield of close to 4 per cent, based on Merchant Square’s current passing income.

The latest $48 million guide price is about $955 per square foot, based on Merchant Square’s 50,262 sq ft net lettable area. This compares with about $1,450 psf, based on last year’s $73 million price tag.

Merchant Square was completed in 1996 and is on a site with a remaining lease of about 83 years. It comprises a four-storey office tower, two blocks of shophouses, and a couple of basement levels for carpark lots. CB Richard Ellis is marketing Merchant Square through an expression of interest exercise that closes on Oct 6.

Separately, Credo Real Estate has launched a sale through tender of four strata bungalows at 61 and 63 Bournemouth Road with a price tag of $24 million to $26 million.

The bungalows have a total freehold site area of 24,443 sq ft, and are being sold by three parties – one of whom owns two units and the other two, one bungalow each.

The sale is not being pitched as a redevelopment site as the bungalows are relatively new and in good condition; they were completed around 2000.

The development, originally known as Sayang Villa, will be ideal for extended families, or groups of friends who would like to be neighbours, or simply investors looking to occupy one or two units and lease out the rest.

‘Should the buyer choose to redevelop the site in the medium term, he or she could build five conventional detached or strata houses,’ Credo said. The tender closes on Oct 8.

Source : Business Times – 1 Sep 2009

Good times continue to roll for the Good Class Bungalow (GCB) market, with some high-profile business personalities involved in the latest transactions. They include palm oil giant Wilmar International’s chairman and CEO, Kuok Khoon Hong, and Prima Group boss Bernard Cheng.

The latest deals have boosted the volume of GCB transactions between January and August this year to about 60 deals with a total value of around $900 million, surpassing the $830 million transacted in the whole of last year, latest figures from CB Richard Ellis (CBRE) show. The actual year-to-date numbers could be higher if caveats for some deals done in August have still not been lodged, suggest property market watchers.

CBRE’s director, luxury homes, Douglas Wong is now predicting record GCB sales totalling $1.2 billion to $1.4 billion for the whole of this year, encompassing 80-90 transactions – up from his earlier forecast of around $1.1 billion-$1.2 billion made just three weeks ago. Up to now, the highest full-year value of GCB transactions was achieved in 2006 – involving $1.23 billion across 119 deals.

Savills Singapore director of investment sales & prestige homes Steven Ming said that while the GCB market remains active, ‘buyers continue to approach purchases with measured optimism and are sensitive to price increases’.

Wilmar’s head honcho, Mr Kuok, and his wife are said to have bought two adjoining GCB properties on Victoria Park Road last month for a total of about $44.17 million. The couple paid about $24.5 million for No. 35 Victoria Park, a two-storey bungalow with a swimming pool; the price works out to $750 per square foot (psf) based on the land area of 32,688 square feet. The sellers are believed to be members of the Khoo family linked to Kimly Construction.

Mr Kuok and his wife also picked up the next-door property at 37 & 39 Victoria Park, an old single-storey bungalow, for $19.65 million or about $660 psf. The seller is said to be Ng Cheong Bian, son of the late Ng Bok Eng, dubbed ‘king of cloves’.

Both properties – Nos. 35 and 37/39 Victoria Park – have 999-year-leasehold tenure.

Bungalow market watchers say they would not be surprised if the Kuoks amalgamate the two plots for redevelopment into a plush new GCB on sprawling grounds of more than 60,000 sq ft.

DTZ is understood to have brokered the sale of both properties.

Last month, Prima Group boss Bernard Cheng is believed to have sold his freehold bungalow at Queen Astrid Park for $24 million or about $877 psf to Zain Fancy. A person bearing the same name was formerly head of Morgan Stanley Real Estate Investing for Asia Pacific and who late last year joined Och-Ziff Asia Real Estate as executive managing director and is based in Singapore. The entity is part of New York-based fund management giant Och-Ziff Capital Management Group.

Ho Tian Yee, managing director of Pacific Asset Management, is said to have picked up a bungalow at Astrid Hill in July for $20.5 million or $654 psf on its land area of about 31,360 sq ft. Meanwhile, 12 Bishopsgate, with a land area of around 16,550 sq ft, changed hands last month for slightly more than $19 million or about $1,150 psf.

The year began slowly for the GCB market with just three deals worth about $27.5 million in the first quarter. However, things soon gained momentum with around $432 million worth of deals done in Q2 and about $436 million in July and August.

GCBs are the creme de la creme of Singapore’s housing market, with stringent planning requirements. There are only about 2,400 such bungalows in Singapore’s 39 gazetted GCB Areas. ‘Liquidity, cheap financing and the general belief that the worst of the economic crisis is over are fuelling this run,’ says Savills’ Mr Ming.

‘Furthermore, it appears the wealthy are allocating a greater proportion of their investments to real estate. GCBs, being limited in nature but highly desired amongst the rich, become highly sought after.

Source : Business Times – 4 Sep 2009

Prices have more than doubled over the last decade

PRICES of good class bungalows (GCBs) have picked up strongly since early this year, topping prices fetched in the last property peak in 2007. GCBs are owned by a select group of wealthy individuals, who may well own more than one such bungalow. There are an estimated 2,500 GCBs in Singapore today. By definition, GCBs need to have a plot size of at least 1,400 sq m (15,070 sq ft) and be located in one of the areas zoned for GCBs.

Sought after: With the strong demand for GCBs, we are beginning to see a shortage of such properties for sale, especially in the prime areas

Their prices have more than doubled over the last decade, with the average price today being about $1,000 per sq ft (psf) to $1,200 psf of land in prime areas such as Tanglin. For example, a GCB in Ladyhill Road with a land area of 16,340 sq ft was sold at $8.23 million in September 2000. This works out to $504 psf. In the current market, the same bungalow would easily fetch more than $18 million, or about $1,100 psf.

Similarly, a GCB in Bishopsgate with a land area of 19,300 sq ft was sold for $11 million or about $570 psf in November 2000. A similar unit today would fetch $20-22 million.

The rising number of high net worth foreigners who become Singapore permanent residents (PR) and citizens form the bulk of prospective buyers for GCBs. Apart from this group, we are also starting to see investment companies acquiring GCBs for their portfolios.

It is generally perceived that with the pricing of premier condominiums ranging between $2,500 psf and $3,500 psf, there is a lot of upside growth for GCBs whose average price is about $1,000 psf.

With the strong demand for GCBs, we are beginning to see a shortage of such properties for sale, especially in the prime areas. GCB prices have risen steadily since the start of this year, and have climbed by nearly 25 per cent in less than a year.

Lately, we are seeing more GCB buying from new PRs and citizens. In addition, we are seeing situations where Singaporeans are prepared to buy GCBs with existing tenancies although the rental yield is generally low at about 2 per cent. GCBs can be found in popular locations ranging from districts 10 and 11 to districts 21 and 23. Of these, the most sought after GCBs are in the prime district 10.

The most expensive GCBs are located in the Nassim and Ladyhill area, followed by those in Tanglin, such as Bishopsgate, Chatsworth and Rochalie, and those in the Tanglin-Holland vicinity, such as Swettenham and Peirce roads. Bungalows around the Botanic Gardens, such as Cluny and Dalvey, are also in demand.

There is no special preference for old or new properties among GCB buyers. Generally, key deciding factors for GCB buyers are the site’s location and land specification, ie, regular shape, above or below road level, gradient, etc. This is because most buyers often rebuild the house, whether the existing one is old or new.

Tips on purchasing GCBs

The first thing a buyer needs to know is if the property is in an area designated for GCBs by the Urban Redevelopment Authority (URA). Not all properties with a land size of more than 1,400 sq m qualify as GCBs.

Prospective buyers should also be aware of the property conservation scheme in Singapore. Those earmarked for conservation cannot be torn down and rebuilt. This is especially true for older properties with colonial architecture.

Lastly, prospective buyers who are PRs should be aware that under Singapore property law, they are not allowed to buy a GCB that has more than one year of tenancy remaining.

In addition, Singapore PRs who want to buy a GCB have to get permission from the Land Dealing Unit of the Singapore Land Authority. The maximum size of GCBs open to PRs for purchase is capped at 1,400 sq m, although there could be waivers in some cases.

The outlook for the GCB market for the rest of the year and 2010 is good, with the buying momentum expected to continue.

By WILLIAM WONG – managing director, RealStar Premier Property Consultant Pte Ltd

Source : Business Times – 24 Sep 2009

Buyers took advantage of lower prices, which have corrected by some 20 to 30% from the peak, and low interest rates to buy their dream landed homes

A HOME these days has become more of a lifestyle statement and status symbol than just a roof over one’s head. And what could answer both aspirations better than a plot of freehold land where the owner can dictate every last detail in a custom built house?

So is it too late to go shopping for a landed property today? Let’s look at how the market has been performing this year.

The landed market has seen a recovery in transactions, with the turning point in March this year. After hitting a low in February, when only 73 units changed hands, March saw 123 units done. This figure then increased by leaps and bounds, from 247 units in May to 331 units in June and 320 in July.

Buyers took advantage of lower prices, which have corrected by some 20 to 30 per cent from the peak, and low interest rates to buy their dream landed homes. With the recovery in volumes, is a price recovery in sight?

Landed home prices had peaked between late 2007 and the first part of 2008 before trending down as the sub-prime debacle hit.

It saw a low between January and March this year but with the recovery of the stock market, sentiment improved and landed home prices began to pick up in April.

Despite the upward trend, prices as at July were still some 11 per cent below the previous peak. The only exception is detached houses, whose prices are close to the 2007 peak. We look at some of the reasons behind the demand for landed homes.

# Landed properties are seen as value for money compared to non- landed units: A landed property, when compared to a condominium in the primary market, appears better value for money. The former has a bigger built-up area, in addition to a car porch and a garden.

If one buys a typical landed terrace house for, say, $1.28 million and spends $300,000 on renovation, the total cost is about $1.6 million. This works out to about $640 per sq ft, assuming a built-up area of 2,500 sq ft. The terrace house is likely to be freehold or with a 999-year tenure, and have four to five bedrooms.

For the same price, a buyer may be able to get just a 1,300 sq ft three-bedroom leasehold condominium in the primary market. This can be seen from the recent launch of Centro, a condominium in Ang Mo Kio, with prices averaging around $1,200 per sq ft (psf).

# No maintenance charges: The owner of a landed property does not need to pay maintenance charges as opposed to someone living in a condominium. To make up for the lack of facilities in a landed property, there has been a growing trend of owners incorporating a lap pool within their homes.

# Lower construction cost: Reconstructing a property is more economical today than at the peak in 2007, as construction costs have dropped by 10 to 15 per cent over the past year.

# Custom built: Many home buyers today do not not hesitate to buy an old property, tear it down and build their dream house on the site.

In fact, some owners so enjoy dictating the design and materials for their house that they get very involved in liaising with the architect, contractor and interior designer. The completed project gives the owner an added sense of pride and satisfaction.

# Improved convenience: Landed properties had tended to cluster in estates lacking amenities or public transport. However, with the opening of MRT lines – the East-West, North-South, North-East and the Circle lines – it has become more convenient to commute from many landed housing estates.

Most are just a five- to 15-minute walk to the train station. One can also find food and retail outlets integrated with the MRT station or transportation hub. An example is the upcoming shopping mall ‘nex’, located above Serangoon MRT station and next to a bus interchange.

The accessibility has made landed properties more desirable and has changed the perception that they are not as conveniently located as apartments.

Is the demand sustainable?

Landed properties are likely to retain their popularity among Singaporeans. However, whether the transaction volume can be sustained will depend on the price expectations set by the sellers.

Despite the recovery in April, transacted volumes and prices are still below the peak. The 320 units transacted in July were about half of the 605 units done during the peak in May 2007.

Prices in the current market are still some 11 per cent (excluding detached houses) off those seen during the peak. For instance, in June this year, the average price of a landed terrace house below 2,500 sq ft was about $697 psf, compared to $796 psf seen during the peak in March 2008.

With the continued economic recovery and improved market sentiment, prices could continue to rise. However, as the economy is not yet out of the woods and wage increases are not expected to be strong, there is a cap on how much buyers can or will pay.

Price increments may slow from the 12-31 per cent registered in the earlier months of the year to a more gradual pace of 5-8 per cent in the next 12 months.

By GRACE NG – deputy managing director (agency and business services), Colliers International

West Coast/Pasir Panjang

NOT only is this area close to institutions of higher learning, such as The National University of Singapore, it is just 15 to 20 minutes’ drive to the CBD.

The opening of shopping malls such as VivoCity and West Coast Plaza has added much vibrancy to this area. The impending new Circle Line, with stations extending to Telok Blangah, Labrador Park, Pasir Panjang, Haw Par Villa, Kent Ridge and one-north, will make the area highly accessible.

Bukit Timah

BUKIT Timah is a popular choice, being close to quite a number of elite schools – Nanyang, Hwa Chong Institution, Methodist Girls’ School, Singapore Chinese Girls’ School, Anglo-Chinese School (Barker Road) and St Joseph’s Institution.

The area is currently not served by an MRT line but come 2015, the Downtown Line will have stations at Stevens, Botanic Gardens, Tan Kah Kee, Sixth Avenue, King Albert Park, Beauty World, Hillview and Cashew.

East Coast

THIS area covers Mountbatten, East Coast Road, Tanjong Katong, Siglap and Bedok. Its proximity to the beach and access to town via the East Coast Parkway has made this area popular.

Access to this area will be enhanced by the new Circle Line MRT stations such as Mountbatten and Dakota. In addition, the future Eastern Region Line will run through Tanjong Rhu to Marine Parade estates.

Source : Business Times – 24 Sep 2009

A bungalow on Chatsworth  Park with a 43,497 sq ft  area was sold for $37.5  million.

View PDF Version Done Deals

The luxury residential segment is starting to see prices inch back to peak levels recorded in late 2007 and 1Q2008. The bellwether of luxury condos, Wheelock Properties’ Ardmore Park recently saw two units change hands in the resale market at above $3,000 psf, according to caveats lodged with URA Realis from Oct 9 to 16. Some property consultants attribute it to owners re-setting their prices to more lofty levels after SC Global’s announcement early last month that six units at its luxury Seven Palms in Sentosa Cove were sold at record prices of $11 million each, or $3,100 to $3,400 psf.

The 330-unit freehold Ardmore Park, located along Ardmore Park Drive and completed in 2001, features only four-bedroom apartments of 2,885 sq ft each and penthouses of 8,740 sq ft each.

Recently, a 27th floor apartment in one of the three towers changed hands for the third time at $9.2 million, or $3,189 psf.

The vendor had purchased the apartment for $5.25 million, or $1,820 psf, in October 1999, reaping a 75% capital gain after holding the property for a decade. The first owner had purchased the property at launch in July 1996 for $5.87 million, or $2,037 psf, which was the peak of the property boom a decade ago before the Asian financial crisis.

Another apartment on the 23rd floor of the same tower was sold for $8.8 million, or $3,051 psf. The seller had purchased the apartment just six months earlier in May for $6.45 million, or $2,236 psf, flipping it for a 36% capital gain.

This is the first time this year that apartments at Ardmore Park have crossed the $3,000 psf level. The last time was in April 2008, when an apartment on the 15th floor of another tower was sold for $8.68 million, or $3,009 psf. The record price psf achieved at Ardmore Park was for a 28th floor apartment sold in October 2007 for $10.05 million, or $3,484 psf.

Jacqueline Wong, head of residential at Jones Lang LaSalle, says the recent transactions at Ardmore Park of more than $3,000 psf is an indication that prices of luxury condos at selected projects are gradually returning to the levels seen during the peak of late 2007 and early 2008. “Apartments like Ardmore Park are the crème de la crème of the top-end market because of their quality, spaciousness and location,” she adds. “There’s not much new supply of such luxury condos right now, so buyers are looking at existing properties.”

In the landed-housing market, two Good Class Bungalows (GCBs) changed hands at $37.5 million and $27.35 million in the week of Oct 9 to 16. The $37.5 million, or $862 psf, achieved was for a conservation GCB on Chatsworth Park situated on a 43,497 sq ft freehold land area. “This GCB is sitting on a large plot of land, which is a rare find nowadays,” says JLL’s Wong. In the past, there were more GCBs with land areas of 25,000 to 45,000 sq ft but, over the years, many have been sub-divided into smaller entry-level GCB plots of 15,000 to 16,000 sq ft. Thus, investors are willing to pay a premium for such large GCB plots because of their scarcity, especially if there is potential for sub-division, Wong points out.

The site at Chatsworth Park has the potential for sub-division into two smaller GCB plots, even though the existing main house is a conservation building that has to be restored, notes Wong. While buyers of GCBs are mainly Singaporeans, increasingly, they comprise foreigners-turned-citizens or permanent residents.

The other GCB, on Belmont Road and with a sizeable land area of 29,310 sq ft, was sold for $27.35 million, or $933 psf. This is the third time the property has changed hands in as many years. The vendor in the most recent transaction had purchased the property in August 2007 for $23.3 million, or $795 psf, according to a caveat lodged with URA Realis. The previous seller had flipped the GCB after barely two months, having purchased it for $21.5 million, or $734 psf, in June 2007.

Source : The Edge – 9 Nov 2009

Interest in waterfront homes at Sentosa Cove seems to have returned in recent months, as the opening of Resorts World at Sentosa looms. Since the beginning of November, a total of six properties — three luxury condominiums and three landed homes — have changed hands in the resale market at $1,406 to $2,423 psf.

In the week of Nov 6 to 13, one of the 29 villas on Ho Bee Group’s Paradise Island — a double-storey unit on 8,105 sq ft of land — was sold for $11.4 million, or $1,406 psf. The villas were completed in May and Ho Bee sold the last one for $22 million in August. Each villa has a private berth and all rooms have views of the waterways. The owner had purchased the villa in April 2007 for $9.18 million, or $1,133, hence reaping a 24% capital gain. In early November, a 7,029 sq ft villa sold for $10.8 million, or $1,536 psf. The owner had lso purchased it at launch for $7.1 million ($1,010 psf) in April 2007 and saw the price appreciate 52% in the past 2½ years.

When the villas at Paradise Island were launched, prices ranged from $1,047 to $1,208 psf, according to the URA Realis database of caveats. Since then, prices have climbed, reaching $1,500 psf two months ago, a level last seen in October 2007.

Meanwhile, a terraced house in the 99-year leasehold Ocean 8 enclave developed by IJM Properties Sdn Bhd, a unit of the Malaysian conglomerate IJM Corp Bhd, was sold for $6.4 million, or $2,423 psf, in a caveat dated Nov 13. The 2,637 sq ft house had changed hands twice before. The original owner purchased the property in October 2006 for $2.92 million ($1,109 psf), and flipped it in January 2007 for $3.5 million ($1,326 psf), enjoying an 20% gain.

The $2,423 psf is the highest psf price achieved at Ocean 8 to date. The last time a unit in the stretch of eight terraced homes changed hands above $2,000 psf was in May last year, when two units were sold for $5.5 million each — a 2,626 sq ft unit went for $2,097 psf, while a 2,691 sq ft unit was sold for $2,046 psf.

Just up the street along Ocean Drive is the 116- unit The Azure, a 99-year leasehold waterfront condo development by Frasers Centrepoint and completed last year. The property was launched in September 2005 at around $900 psf.

According to a Nov 10 caveat, a 1,701 sq ft apartment on the third floor was sold for $2.9 million, or $1,705 psf. This is the second time this year the unit has changed hands. It was last sold in June for $2.43 million ($1,429). The original owner purchased the property in October 2005 for $1.77 million ($1,043 psf).

At the end of Ocean Drive is the 264-unit The Oceanfront @ Sentosa Cove, which is being developed jointly by TID Pte Ltd and City Developments Ltd and expected to be completed in 1Q2010. A two-bedroom apartment on the eighth floor has changed hands three times since it was purchased in August 2006. The 1,711 sq ft unit was most recently sold for $3.1 million, or $1,811 psf. The seller appears to have made a quick flip as, according to URA Realis, the previous transaction was just this September for $3 million, or $1,753 psf. The initial owner purchased the unit at launch in 2006 for $2.28 million ($1,337 psf) and sold it in April 2007 for $3.25 million ($1,899 psf), a 42% price gain.

Source : The Edge – 7 Dec 2009

The property unit of Straits Trading Company will be developing a cluster of freehold bungalows at the prime Chancery Lane area as the mainboard-listed company is acquiring the original developer, Tertius Development.

The project, called Chancery Five, will have 12 bungalow units and sits on a land plot of 27,600 square feet. The size of the bungalows will range between 4,800 square feet to 6,500 square feet each.

Each of the two-storey bungalows will have five rooms, an entertainment room, an attic, a private basement car park, a swimming pool and a lift.

Eric Teng, chief executive officer of Straits Trading, said the Chancery Five project is in line with its overall strategy of developing properties that are both exceptional and of high quality.

While the company did not disclose the value of the development, property analysts estimate it to be worth about S$58 million.

Based on the project’s estimated worth, Cushman & Wakefield’s regional managing director Donald Han said that the bungalows would be priced at slightly less than S$1,000 per square feet (psf).

This means each unit would be priced at about S$4.8 million, which he said is “a fair price for a bungalow on Chancery Lane”.

Mr Han added that its close proximity to top schools such as the Anglo-Chinese and Singapore Chinese Girl’s schools, as well as to Orchard Road, makes it a hit with families and sub-letters.

Meanwhile, Nicholas Mak, real estate lecturer at Ngee Ann Polytechnic, said that based on similar properties in the vicinity, Chancery Five should fetch about S$500 to S$600 psf.

“With the largest unit at about 6,500 square feet, I have a feeling that they will price it above S$4 million per unit,” said Mr Mak.

“Landed property will always have a place with investors. It has the highest price increase in 2009 compared to other types of properties,” said Mr Han.

Source : Channel NewsAsia – 2 Mar 2010

THE Straits Trading Company (STC) is taking over a private developer and its cluster bungalow project at Chancery Lane.

It said on Monday that it would pay an aggregate of some $13.9 million for the proposed acquisition of Tertius Development Pte Ltd, including the assignment of specified shareholders’ loans. The vendors are two individuals.

With the deal, STC will gain control of Chancery Five, a project with 12 freehold strata bungalows at 5 Chancery Lane. The development is next to Anglo-Chinese School (Primary) and Anglo-Chinese School (Barker Road).

Each bungalow will have five rooms, an entertainment room, an attic, a private basement car park, a private swimming pool and a lift spread across two levels. The homes will range from 4,800 square feet to 6,500 sq ft in size.

Tertius’ commitment to the project – including land cost, development cost and incidental selling costs – up to 2012 is estimated by the purchaser at about $58.24 million.

Eric Teng, chief executive of STC’s property arm, told BT that his unit has been looking out for opportunities in the property market. He has not set a date for the launch of Chancery Five. The project is under construction and could obtain temporary occupation permit in April next year.

According to caveats lodged with the Urban Redevelopment Authority, a detached house at Chancery Lane changed hands at $900 per sq ft in November last year.

STC’s acquisition is expected to be completed in April. The company does not foresee the purchase having a significant impact on its financial position for the year ending Dec 31, 2010.

STC shares rose five cents yesterday to close at $4.15.

Source : Business Times – 3 Mar 2010

one-north site may turn into hedge-fund capital

THE cluster of 16 black-and-white bungalows in Buona Vista was once home to British troops stationed in colonial Singapore. But the rustic area, called Nepal Hill, may soon turn into the country’s newest financial district.

JTC Corporation – the agency developing and marketing Nepal Hill – said in a statement yesterday that it is in talks with investment managers about the site.

‘Nepal Hill is one of the heritage areas within one-north,’ it said. ‘It is also an alternative location for investment managers which is envisioned to strengthen Singapore’s value proposition as a premier asset management centre in Asia.’

Bloomberg News reported yesterday that Singapore is planning to create its own hedge-fund capital modelled after Greenwich, a town in the United States with a high concentration of hedge funds.

Hedge funds are large privately-run investment funds that have increasingly dominated the global investment scene in recent years.

Bloomberg said the Monetary Authority of Singapore and JTC Corp had courted fund managers by inviting them to visit Nepal Hill at a networking event in January.

The site is part of one-north, JTC Corp’s 200 ha innovation and research hub, which includes science and technology research centre Fusionopolis and biomedical hub Biopolis.

JTC Corp said two years ago that the bungalows – commonly referred to as black-and-whites due to their white-washed walls and black frames – were being refurbished for ‘adaptive use’.

But the rare and lush enclave, just a 14-minute train-ride from Raffles Place and across the road from trendy dining spots in Rochester Park, could offer hedge funds and other high-end financial service providers an alternative to concrete skyscrapers downtown.

With Asia leading the global economic recovery, Singapore continues to be an attractive location for firms looking to expand in the region.

JTC Corporation, the agency developing and marketing Nepal Hill, said it is in talks with investment managers about the site. The cluster of 16 black-and-white bungalows at the lush enclave, part of JTC Corp’s one-north development, was once home to British troops stationed in colonial Singapore. — ST PHOTO: CAROLINE CHIA

The proposed increase in regulation by Western authorities, coupled with tax and regulatory incentives here make it more appealing for hedge funds to operate in the Lion City.

Details are still sketchy as far as rental rates and how the site will be further developed are concerned, but the response from hedge funds have been mixed so far.

Aisling Analytics’ Michael Coleman told Bloomberg his firm will look at Nepal Hill as a potential location when its lease at Suntec City is up for renewal. ‘I’ve visited and think it’s a very interesting development and a great alternative to a traditional office,’ said the hedge fund managing director.

‘You’re surrounded by greenery, have your own garden to enjoy and the area is rapidly developing.’

However, Man Investments’ executive director Timothy Peach, who has also visited the site, feels that Nepal Hill would not work for his company, which is based at One George Street. ‘Almost all of our clients are based in the CBD, and we have to be close to them,’ said Mr Peach, who lives in a black-and-white off Tanglin Road.

‘It’s a nice little idea but definitely not suitable for us because we’re one of the largest hedge fund companies in the world employing some 1,500 people globally.’

Source : Straits Times – 6 Mar 2010

NEW LEASE OF LIFE The bungalows, formerly housing British army personnel, are near to Biopolis

SINGAPORE is planning to create its own hedge-fund capital modelled after Greenwich, Connecticut, in a cluster of ex-British army homes called Nepal Hill, a 15- minute cab-ride from the city-state’s main banking district.

The Monetary Authority of Singapore and JTC Corp – the government agency developing and marketing the project in Nepal Hill – quietly asked hedge fund managers in January to visit the district’s so-called black-and-white bungalows, named for their white-washed walls and dark timber frames, according to a copy of the invitation obtained by Bloomberg News.

Singapore is seeking to attract firms planning to expand in the region as Asia leads the global economic recovery and the US and Europe increase regulation. The proposed cluster follows tax and regulatory incentives that have made it easier for funds to set up shop on the island than in Asian cities such as Hong Kong and Tokyo, helping the industry grow from near zero in 1997 to almost 140 firms today.

Aisling Analytics Pte will ‘certainly look at it as a potential location’ when its lease at Suntec City, next to the central business district, comes up for renewal, said Michael Coleman, the hedge-fund firm’s managing director.

‘I’ve visited and think it’s a very interesting development and a great alternative to a traditional office,’ he said. ‘You’re surrounded by greenery, have your own garden to enjoy and the area is rapidly developing.’

The downside is that it’s ‘off the beaten track’ for investors used to meeting in Singapore’s main office districts, Mr Coleman said. Aisling manages the US$1.6 billion Merchant Commodity Fund and the Merchant Equity Fund.

Rents in Singapore, the most expensive in Asia after Tokyo and Hong Kong, fell 46 per cent, on average, in the fourth quarter, the steepest decline in the region from a year earlier, according to Boston-based commercial real estate company Colliers International. The average top-grade office monthly rental in Singapore’s central business district fell to an average of $6.29 (US$4.50) per square foot in the last quarter, Colliers said in a report last month.

JTC could lure managers by making rents at Nepal Hill ‘very attractive, at least at the beginning’, said Stephane Pizzo, who set up his hedge-fund investing firm, Lotus Peak Capital, last year. He said that he has yet to view the proposed enclave because the space offered was ‘too large’ for his business. He currently works from a refurbished shophouse in Chinatown where more than half a dozen Italian restaurants are within walking distance of his office.

‘The hub idea on paper is great, but it needs to be encouraged,’ Mr Pizzo said. ‘The more people and incentives to move there, the better.’

Nepal Hill is part of a development called ‘one-north’, referring to Singapore’s location one degree north of the equator, that is already home to industry clusters including Singapore’s biomedical research hub, Biopolis. The 180-hectare area will be developed in stages within the next 20 years, JTC said in the invitation to managers.

The bungalows, which formerly housed British army personnel and their families, are remnants of Singapore’s history under British colonial rule. The proposed enclave is across the road from the Rochester Park dining hub, where restaurants such as Min Jiang, which serves Szechuan cuisine, and bars including Da Paolo Bistro Bar are also housed in colonial bungalows.

The island-state’s hedge fund industry has grown to 138 single-strategy hedge-fund managers employing more than 800 professionals from near zero in 1997, according to a survey by the local chapter of the Alternative Investment Management Association.

The industry oversees at least US$34.9 billion, excluding assets managed by several of the large global firms, it said, making it Asia’s second biggest behind Hong Kong.

Source : Business Times – 6 Mar 2010

DOMESTIC helpers or hostel managers? When it comes to some maids working in several private houses surrounding the Mt Elizabeth Hospital, the distinction is often not so clear.

One such maid, who gave her name as Madam Kartini, cooks, does the dishes and irons the laundry for 71-year-old ‘Lina’ and her son in a two-storey house in Jalan Lada Puteh.

When she is not cleaning, she acts as the concierge for the illegal budget accommodation at her employer’s house.

Madam Kartini’s contact details, as well as photographs of the house, are listed on a website advertising the house as a hostel for Indonesian visitors. Charges are between $60 and $110 for a night, depending on the number of guests.

As the contact person for the business, Madam Kartini liaises with the largely Indonesian clientele in their native tongue – overcoming the language barrier faced by her Mandarin-speaking employer.

‘She handles everything. She’s the one who handles telephone bookings, prepares the rooms, hands over the keys and settles payment,’ explained a 47-year-old Indonesian businessman who has helped several of his friends book rooms from Madam Kartini over the last three years.

‘Once, my friend arrived past midnight and she was at the house waiting for him,’ he added.

According to Madam Kartini, her employer lives there, but is usually not around during the day. Her son lives in a terrace house across the road, where the doors are also open to foreigners.

It is a similar story at the stretch of private houses along the nearby Jalan Elok where, residents told The Straits Times, maids acted as the contact points for their respective houses.

The owners of these houses – on the other hand – were rarely seen, said residents, and some do not even live there. One resident sees her neighbour only occasionally dropping off her laundry.

‘The maids run the show – they will even dress properly to fetch tenants from the hospital,’ said a resident who declined to be named. One of the maids even handed out a name card with her name, contact number, and the heading ‘Rental Room With AC’. AC stands for air-conditioning.

These maids seem unaware that their activities are illegal. Under the Ministry of Manpower’s regulations, maids are allowed to perform domestic duties at only their employers’ residences.

Employers violate work permit conditions when they use their maids to perform non-domestic work, or to work outside of employers’ residences. If convicted, employers can be fined up to $5,000 or jailed up to six months, or both.

Source : Straits Times – 8 Mar 2010

Homes near Orchard Rd hospital found illegally offering budget lodging to patients, travellers

Tourists entering a terrace house along Jalan Elok. At least eight houses within a two-minute walk of Mt Elizabeth Hospital welcome foreigners on a short-term basis for a fee. — ST PHOTO: NG SOR LUAN

SEVERAL terrace house owners in the quiet lanes near Mount Elizabeth Hospital are opening their doors to medical tourists and travellers seeking budget accommodation in the heart of Orchard Road.

They charge between $50 and $120 per room a night, depending on the number of guests and whether it is peak season.

A room in a hotel in that area could cost at least three or four times more. For the price they pay, tenants get a bed, bathroom access, air-conditioning and housekeeping services. Rooms with bathrooms are pricier. These ‘hostels’ are often fronted by the owners’ maids, usually Indonesians, who can communicate better with these overseas patients, many of whom are also Indonesians.

The owners, however, appear to be breaking the Urban Redevelopment Authority’s (URA) rules, which state that private properties cannot be converted to other uses such as workers’ dormitories or boarding houses. The Straits Times found at least eight terrace houses within a two-minute walk of Mount Elizabeth Hospital where foreigners can stay on a short-term basis for a fee.

Most are in Jalan Elok, between the hospital grounds and York Hotel, but there are also a few along Jalan Lada Puteh, which is behind the hospital and next to Lucky Plaza.

On one Tuesday afternoon, The Straits Times spotted a group of six Indonesians dragging their suitcases behind them and entering one of the houses along Jalan Elok. When approached, one said they were in Singapore on vacation and had heard about the lodging from a friend back home. The group booked two rooms for $120 a night.

Moments after the group entered, a woman in a blue sports car pulled up just outside the house. Madam S.L. Chong, 64, identified herself as the owner but said the group who had just walked in were her Indonesian husband’s relatives.

The housewife said she charged them a minimal fee, as she was ‘unemployed and needed to make a living’. She claimed that she had approval from the URA to do this.

However, a check with the authority showed that this was not true. Its spokesman said it would investigate the possible infringement. The URA usually issues a warning notice to offenders and, if the unauthorised use does not stop, they can be charged in court and face fines of up to $200,000 or jail of up to a year, or both.

Two doors away from Madam Chong’s house, Madam Lily Lim told a similar story – that those staying temporarily in her house were her in-laws from Indonesia.

However, when The Straits Times contacted Madam Lim as an interested customer to inquire about lodging, she offered a room in her house at $50 a day.

When asked about this, Madam Lim insisted these rates were only for her relatives and said she did not require government approval for this.

Like Madam Chong, she said she could not afford to house them for free.

Business appears brisk at these ‘hostels’. The housekeepers of two of such houses said all their six bedrooms were fully occupied, for the next eight days for one of them.

A 47-year-old Indonesian businessman who has helped friends book accommodation at these houses said that, during the Formula One race season or other peak periods, these ‘hostels’ charged almost double the usual rates to cash in on the hotter demand.

Two houses at Jalan Elok even had an additional room built in the parking space, he said. It is understood that some houses have also repartitioned their bedrooms. ‘You can tell; some of the walls sound hollow,’ said the businessman.

Unauthorised repartitioning with the purpose of operating a boarding house is also illegal, said the URA.

Some of the owners of these terrace houses do not even live there, said other Jalan Elok residents. Indonesian housekeepers, allegedly employed as maids, are left in charge of a host of additional responsibilities such as providing housekeeping services to tenants.

Such accommodation, though illegal, do cater to the need for affordable short-term stays, filling a gap between hotels and hostels, which are usually run-down.

Several guests The Straits Times approached said they were in Singapore either to seek medical help or to visit relatives in hospital. Some were private students from countries such as Vietnam and China.

Mr Jim Chen, 40, a tenant from the Philippines, ditched his initial plans of staying at a serviced apartment at the nearby Lucky Plaza because it was ‘just too crowded and too noisy’. The fitness centre manager, who is in Singapore for physiotherapy, settled for a room in a Jalan Elok house, where he found the environment more tranquil.

An Indonesian maid, who gave her name as Madam Kartini and who advertises a house on Jalan Lada Puteh with rooms for rent on a website, said: ‘Most of them are here for medical treatments. We rarely have tourists.’

She added that most patients and their relatives stayed for a couple of days but some, such as cancer patients undergoing chemotherapy, would stay much longer, sometimes for more than a month.

Apart from the convenient distance from one of the region’s largest private hospitals, the main draw of these ‘hostels’ is their affordability. ‘Medical expenses are already so costly, and everything else in Singapore is also very expensive,’ said Madam Kartini. ‘At least they can now save on lodging.’

A hotel room in this prime area goes for between $200 and $600 a night.

Some residents in the area, though, are unhappy.

A resident in her 30s, who declined to be named, is disturbed by how such businesses have ’spoilt the neighbourhood’. She complained of shady characters. ‘It is no longer the case where I can let my son play outside,’ she added.

Mr Woo Chan Joo, a 77-year-old retiree, lives across a house where rooms used to be rented out until a fire there two months ago put an end to that. He said: ‘There were many people coming and going, some of them were in wheelchairs, some bandaged… It’s more peaceful now.’

Source : Straits Times – 8 Mar 2010

With relatively few landed home launches, buyers are always keen on older houses in the resale market, writes HAN HUAN MEI

WHEN private home prices made their sterling recovery in the second half of 2009, landed homes didn’t miss out on the action. The Urban Redevelopment Authority (URA) price indices for detached, semi-detached and terrace houses recovered by 22-26 per cent in 2H 2009, after falling some 18-21 per cent from the market peak in the second quarter of 2008 to Q2 2009.

This upward trend is likely to continue because of the scarcity of landed homes in Singapore. Out of a total housing stock of 1.14 million units, only 69,500 or 6.1 per cent are landed homes.

While new landed projects are limited, home buyers are always willing to buy older properties in the resale market. On average, 380 new landed homes and 2,800 resale landed homes changed hands annually between 2004 and 2009.

Moreover, there is also a certain degree of speculative activity in the landed market. An analysis of the caveats lodged for subsales of new landed properties in the past year shows a gain of 5.5 to 34 per cent from their original prices two to three years ago.

Landed properties offer a certain prestige to homeowners in the middle to high-income groups. Nowadays, well-heeled homebuyers in their mid-30s are especially attracted to entry level bungalows with a land area of 4,000-5,000 sq ft and costing $4-$5 million. Some of these can be found in Lynwood Grove and Cotswold Close.

Equally popular are strata bungalows like Goodman Crest and Bellaville which have the same built-up area as the average bungalow but cost less – around $2.5-$3.5 million – because of the shared ownership of land and communal facilities like swimming pool and landscaped garden.

Similarly, cluster terrace houses are seen as value for money as opposed to condominiums because of their generous built-up areas of over 3,000 sq ft. These also come with communal facilities which appeal to families with young children.

However, the downside of cluster terrace developments is the rather crowded conditions within the compound and the higher volume of vehicular traffic they generate in the neighbourhood.

At the top of the Singapore housing pyramid are the good class bungalows (GCBs) which are the most prestigious and expensive type of housing. In just the first two months of 2010, some 14 GCBs were transacted, compared with just three in the first quarter of 2009.

Among the 14, the most expensive GCB was a Swettenham Road house, which sold for $31.5 million in January. It has a land area of 29,569 sq ft.

In 2009, the highest priced GCB was sold in October at $38.67 million. It is located in Victoria Park Road and has a land area of 32,077 sq ft.

Over at Sentosa Cove, Kasara villas, which range from 9,000 sq ft to over 14,000 sq ft, were sold at $14-$22 million in November 2009. These villas come with designer finishes and top quality fittings.

The reason why leasehold landed homes in Sentosa Cove can fetch prices equivalent to, if not higher than, their freehold counterparts on the mainland is because of the resort island status, foreigners’ eligibility to buy and above all, limited supply of around 400 units. Foreigners are not allowed to buy landed properties on the mainland and even permanent residents need special approval from the authorities to buy one.

In 2009, a landed project in Seletar Hills estate called Luxus Hills was launched. The first phase of 78 terrace houses was sold within a few weeks. In the second phase, another 30 units sold quickly at a similar price range. The terrace houses fetched $1.7-$2 million while the semi-detached houses fetched $2-$2.2 million.

Estrivillas, a cluster housing project in Jalan Lim Tai See comprising 38 semi-detached and one detached house, was launched in November 2009. By January this year, 24 of the 39 units had been sold at $3.5-$3.8 million.

In the resale market, transactions in January and February this year show that the median price of semi-detached and terrace houses was $2.5 million and $1.5 million respectively. A year ago, the corresponding median prices were $1.76 million and $1.16 million.

Developers marketing landed properties should emphasise the limited land resources and hence, the value of landed properties in the long-term. Secondly, owners do not have to pay maintenance fees for houses, unlike condominiums. Unless a house is very old, the upkeep is generally inexpensive. Spending money on one’s own property beats contributing $3,000 to $4,000 a year to a condo management or sinking fund.

Landed homes are also attractive as investments as they can fetch good rentals. Proximity to premier schools, international schools and embassies is definitely an advantage.

At the top, GCBs in Bukit Timah can be leased out at $18,000 to $25,000 a month while standard detached houses can fetch $12,000 to $18,000, depending on their size and condition. Semi-detached houses can command a monthly rent of $8,000 to $12,000 while terrace houses can achieve $3,000 to $7,000.

Limited supply results in the relatively inelastic prices of landed homes, and increasingly, those who hold such properties will find them a boon as more often than not these are assets that appreciate in value over time.

The writer is associate director, CBRE Research

Source : Business Times – 25 Mar 2010

A terrace housing development in Serangoon Gardens has become the first landed residential estate to achieve the Building and Construction Authority’s (BCA’s) top-tier Green Mark Platinum award.

HAUS@SERANGOON GARDEN, which comprises 96 landed terrace houses located at Serangoon Garden Way, is developed by City Developments Limited (CDL) and is slated for launch in the middle of the year.

The development uses both passive and active green building approaches to ensure that a comprehensive sustainable design is incorporated from the beginning.

Each house is equipped with state-of-the art green technology for energy and water efficiency.

It is the first landed housing development in Singapore to have a one kilowatt-peak photovoltaic (PV) system.

The solar power generated by the PV system helps to offset the grid electricity consumption by the refrigerator and reduces utility bills.

Rainwater will also be collected for gardening use.

The project also features an innovative air-conditioner heat recovery system, in which waste heat generated by the air-conditioner is used to provide house owners with hot water in the bathrooms.

Approximately four per cent of the total construction cost was invested into the development of the estate’s green innovations, which is expected to result in up to 40 per cent energy savings for each house.

Mr Kwek Leng Joo, managing director of CDL, said, “HAUS@SERANGOON GARDEN is a landmark residential development for us as we are able to deliver significant measurable and direct cost benefits to individual homebuyers over a long-term period.

“Through the extensive “greening” of each and every house within HAUS@SERANGOON GARDEN, we seek to create an integrated community of green homes that will inspire greater eco-consciousness across the larger Serangoon Garden residential enclave.”

Commenting on HAUS@SERANGOON GARDEN, Dr John Keung, CEO of BCA said, “This is a first time we have awarded the Green Mark Platinum rating to a landed housing estate in Singapore.”

“We are indeed encouraged to see developers like CDL and Hong Realty making the effort to bring environmentally sustainable designs to not only high-rise buildings but individual landed homes.”

“This project would serve as a good prototype for green landed housing in future and even for reference by existing homeowners who are looking to retrofit and improve the energy efficiency of their landed homes,” he added.

Source : CNA – 2012 May 22

Three adjoining landed properties at Amber Road in the East Coast district have been put up for sale by tender.

Marketing agent Credo Real Estate said the three plots of land are owned by separate owners, who have consented to sell collectively in a joint tender exercise.

The freehold sites have a combined land area of approximately 28,400 square feet (sq ft).

Credo said the sellers are expecting offers in the region of S$73 million to S$80 million.

This reflects a land rate of about S$1,243 to S$1,318 per square foot per plot ratio (psf ppr) for redevelopment up to a gross plot ratio of 2.8 and after factoring an estimated development charge in the region of S$25 million.

Credo’s executive director, Yong Choon Fah, said the “entire plot may be redeveloped into a high-rise residential development of over 20 storeys with partial sea views”.

She added that the potential gross floor area of about 79,500 sq ft may accommodate some 75 apartments with an average size of 1,000 sq ft.

According to Ms Yong, these three plots at Amber Road are the last standing landed properties in the area, which is a well-known address for high-rise condominiums that have command views of the sea.

Ms Yong added: “District 15 has always been a traditional favourite amongst both foreign and local homebuyers due to its proximity to the airport, East Coast Park, reputable schools and established amenities at Parkway Parade and East Coast Road.”

The tender closes at 2.30pm on June 22.

Source : CNA – 2012 May 23

The Good Class Bungalow (GCB) market showed improved performance in Q2 2012 following an initial slowdown in Q1 due to the introduction of the additional buyer’s stamp duty (ABSD) which was launched in December.

According to caveats analysis by CBRE, the number of transactions done in GCB Areas grew from nine in Q1 to 18 last quarter while transaction values climbed 60 percent to S$359 million from S$224 million.

Looking ahead, the trend is expected to continue in Q3.

For instance, a buyer was said to have exercised the option to buy a two-storey bungalow at Oei Tiong Ham Park off Holland Road for S$17.5 million or S$1,614 psf on a 10,844 sq ft freehold land site.

At the same time, a bungalow at Olive Road was reportedly transacted for S$30 million or S$1,185 psf recently. The two-storey bungalow sits on almost 25,320 sq ft of land in the Caldecott Hill GCB Area and features a pool and an outhouse.

Another two-storey bungalow on Peirce Hill may also be changing hands for S$25 million or S$1,650 psf on a 15,150 sq ft land area.

CBRE’s analysis also revealed that the average transaction price in GCB Areas for 1H2012 rose seven percent to S$1,370 psf.

Douglas Wong, Director for Luxury Homes at CBRE, expects around 50 to 55 deals to be completed by year-end amounting to around S$11.1 billion which is almost similar to the 57 deals or S$1.16 billion last year.

Source : PropertyGuru – 27 Jul 2012