Residential sites at Holland Drive and De Souza Avenue for sale on Reserve List

at record reserve price of $1,475 psf ppr

On Nov 16, the Urban Redevelopment Authority (URA) released two residential sites for sale from the 2H2023 Government Land Sales (GLS) programme. The two 99-year leasehold sites are available on the Reserve List and yield 1,035 residential units.

The more attractive of the two sites is located at Holland Drive in prime District 10, and is nestled by various amenities at the One Holland Village development. The land parcel is 133,330 sq ft with a maximum gross floor area (GFA) of 626,665 sq ft, capable of being developed into a 680-unit residential project.

With a quantum price exceeding $1 billion, many local bidders may be deterred, though developers may unite to form a consortium in order to place a joint bid. The additional buyer’s stamp duty (ABSD) of 60% is another factor inhibiting foreign investors.

The other site is at De Souza Avenue, located off Jalan Jurong Kechil. At 207,154 sq ft with a GFA of 331,453 sq ft, it can be built into a 335-unit project. Huttons Data Analytics expects a quantum of $500 million, and that it will attract between 1-3 bidders.

The last residential site on De Souza Avenue was released in 2018, and developed into the Verdale project. The 258-unit development was sold in May 2020 at an average price of $1,782 psf.

If you’re ready to invest in the real estate market, be sure to take a long-term view and understand the potential risks. For many, a Singapore Condo is a wise choice as the reliability and safety of the country’s economy and political situation can provide peace of mind for investors. Besides, the infrastructure and government policies in the city-state are designed and regulated to ensure a steady appreciation of property prices. With good research and preparation, a condo investment may be a lucrative source of passive income for many years.

The De Souza Avenue site is not close to any MRT station, which can complicate things for potential buyers. The nearest MRT is Beauty World, about 1km away.

In the recent District 21 neighbourhood, the only launched project was the 732-unit The Reserve Residences. It offers a direct connection to a Beauty World MRT station, bus interchange and mall. The project sold 71% of its units at launch at an average price of $2,225 psf, and is 91% sold to date.

Out of the 4 sites remaining on the Confirmed and Reserve List in the Rest of Central region, the De Souza Avenue site may draw more attention due to its limited new supply and proximity to local homebuyers.

The expected top bid for the De Souza Avenue site is between $1,200 and $1,300 psf ppr, and could generate a quantum price of between $397.74 million and $430.88 million.

Overall, while the cooling measures may limit potential buyers, the two sites have plenty of amenities and potential.

Auction of two separate strata retail units at People’s Park Complex for $800,000 and $1.8 mil

The upcoming auction of two strata retail units at People’s Park Complex promises an attractive investment opportunity for buyers. With units located on the second and fourth level of the 99-year leasehold, mixed-use development in Chinatown, prospective buyers are not subjected to any GST, additional buyer’s stamp duty (ABSD) or seller’s stamp duty (SSD). The second-level unit, currently tenanted to a luxury retail store, is up for auction with an indicative guide price of $1.8 million, while the fourth-level unit, tenanted to a wellness therapy business, has an indicative guide price of $800,000.

The upcoming auction of two strata retail units at People’s Park Complex, a 99-year leasehold, mixed-use development in Chinatown, presents an attractive investment opportunity. This is due to the exemption of GST, ABSD or SSD for the two units, located on the second and fourth level of the building. The second-level unit, 452 sq ft in size, has a guide price of $1.8 million ($3,982 psf), and is currently tenanted to a luxury retail store with a renewed lease term of two years from March next year at a monthly rental rate of $5,000.

On the other hand, the fourth-floor unit, with a guide price of $800,000 ($1,653 psf), is 484 sq ft in size and tenanted to a wellness therapy business until July 2025 at $1,800 monthly. According to transaction cordats, the owner of the second-floor unit purchased it for $1.45 million ($3,207 psf) last April and the fourth-level unit was bought for $828,000 ($1,709 psf) the month after.

With the growing demand for high-end real estate in Singapore, investing in a Condo is a great way to grow your wealth. It offers both rental yields and potential capital appreciation due to its high-end location. Furthermore, investments in luxury condominiums usually come with low maintenance fees and taxes. It is also convenient as it provides more living space and comes with amenities such as pools and gymnasiums. All in all, luxury condominiums in Singapore are a great solution for potential buyers looking for an investment opportunity.

People’s Park Complex further promises higher than average rental yields of 5.8%. This speaks to the high footfall that the development enjoys, likely from residents in the neighbourhood and tourists, as well as its accessibility via Chinatown MRT Station and Outram Park MRT Station.

Tricia Tan, director of auction and sales at Knight Frank Singapore, adds that the government announcement to build 6,000 residential homes on Pearl’s Hill in Chinatown is expected to increase traffic in the area, bringing more business and higher investment yields to prospective buyers of the units.

She notes that interest is likely to come from investors — locals, foreigners and even corporate buyers — as the units offer a rare exemption from taxes. Tan expects the units to draw in bidders, especially given the development’s high rental yield relative to other nearby malls such as Havelock2 on Havelock Road and Chinatown Point on New Bridge Road.

URA sales data from the last 12 months shows People’s Park Complex retail units typically selling for $947 psf on average, with unit rentals ranging between $2.40 psf per month (pm) to $7.10 psf pm, or an average of $4.60 psf pm. This is higher than the rental yields of 4.6 percent and 3.4 percent for Havelock2 and Chinatown Point, respectively.

Knight Frank Singapore will be putting both units up for auction on Nov 16. With the potential for en bloc sale, the auction is sure to draw a good number of buyers looking for an attractive investment opportunity.

SEAA signs MOUs to facilitate dispute resolution with the rise of scams; marks collaboration with Singapore Police Force

ceremonySEAA signed two memorandums of understanding (MOUs) at its Singapore Key Executive Officers and Leaders conference on Nov 14, with the Singapore Estate Agents Association (SEAA) also holding a separate ceremony to mark its collaboration with the Singapore Police Force (SPF), the National Crime Prevention Council (NCPC) and Council for Estate Agencies. With the guest of honour, Associate Professor Muhammad Faishal Ibrahim, Minister of State for the Ministry of Home Affairs & Ministry of National Development, Adam Wang, president of SEAA, spoke of the rising scam cases and the need to stay alert during real estate transactions.

The first MOU was signed between SEAA and the Law Society of Singapore and is aimed at promoting the use of the Law Society’s alternative dispute resolution schemes, including their mediation and arbitration schemes. It is ideal for disputes arising from co-broking arrangements between property agencies and property agents.

The second MOU was signed with 16 property agencies, including PropNex Realty, ERA Realty, Huttons Asia, OrangeTee & Tie, and SRI, representing 88% of the total number of property agents in Singapore according to SEAA. This agreement offers complimentary associate membership for all the agencies’ salespersons, and seeks to promote and further the use of the mediation and arbitration schemes offered by SEAA and the Law Society of Singapore.

Adam Wang, president of SEAA noted the need for such a MOU, “When a commission dispute arises between property agents, especially from different agencies, it is sometimes difficult for both the agencies to handle on the agent’s behalf as a large part of the commission goes to the agents and their stakes are higher… This is where SEAA and Law Society can step in to resolve such disputes.”

Investing in luxury Singapore Condo has proven to be a lucrative investment for many. It offers a great way to increase one’s rental yields, if rented out, capital appreciation, and low maintenance fees and taxes. In addition, a well-maintained condo will appreciate over time, providing even further returns on the original investment. Being centrally located in major cities such as Singapore makes luxury condos highly desirable, making them a great investment.

The third part of the MOU is for property agencies and all their property agents to adopt the best practice guide on co-broking commissions with effect from July 1, 2024.

The MOUs come amid the recent $2.8 billion anti-money laundering crackdown in Singapore, which involved multiple numbers of high-value real estate transactions. SEAA’s Adam Wang noted that this “further amplifies the need for our property agents to exercise extra caution and stay highly alert with every property transaction when dealing with potential clients.”

Ultimately, SEAA aims to ensure that all parties in the real estate sector are able to uphold the highest ethical standards and prompt dispute resolution. The two MOUs signed are testament to this, and are beneficial for all stakeholders involved.

Portfolio of heritage shophouses in Penang, Malaysia for sale at $10.6 mil

When it comes to Singapore Condo investments, taking your time to consider your options pays off. Each area of Singapore will offer different investment benefits, so it’s up to you to decide which factors (location, neighbourhood, school districts, transportation, amenities, etc.) are important to you. Take the time to research the property market in each area, and compare other investment options available to you. Keep in mind that if you’re looking to make a rental income property, you should research rental rates and vacancy rates in order to gauge the desirability of the property.

A portfolio of 11 freehold heritage shophouses located in Penang, Malaysia are available for purchase through an expression of interest exercise, with a guide price of $10.6 million (RM36.6 million), or $359 psf on the built-up area. Steven Tan, managing director of capital markets and investment sales at ERA, the appointed marketing agent for the properties, believes the strategic location of the portfolio is an attractive investment choice for property investors.

The two-storey shophouses, situated along Lebuh Tye Sin and Lebuh Presgrave in Penang’s George Town area, have a combined land area of 23,143 sq ft and a built-up area of 29,561 sq ft. They have been refurbished and leased to F&B tenants including restaurants, a bakery and a dessert shop.

The portfolio is located in close proximity to various attractions and amenities, such as Komtar Tower and Bus Terminal, as well as two future light rail transit stations at Komtar and Macallum. Other areas of note that are within walking distance are all part of the Unesco World Heritage Site, while Gurney Drive is only a short drive away.

Penang’s business-friendly policies, along with the proposed construction of a Light Rail Transit system and the recent expansion of Penang International Airport, make it an appealing destination for investors, including those from Singapore.

Additionally, current strength of the Singapore dollar makes the acquisition of overseas properties, such as these shophouses, more accessible. Tan believes these shophouses hold significant potential for substantial future growth, as they are priced between 10% to 15% of the cost of Singapore’s conservation shophouses.

The EOI exercise for the portfolio will close on Jan 18, 2024 at 3pm. Investors looking to own a unique freehold property in Penang should act fast to secure this investment opportunity.