Archive for category: Property Management

HDB has made changes to the way it conducts its business for evaluating the income of flat-buyers and whether they are eligible for housing subsidies beginning on May 9.

The changes are in conjunction with the launch of a brand new HDB flat-eligibility (HFE) letter, which replaces the current HDB loans eligibility document. The HFE letter will inform flat buyers of their eligibility for an upcoming or resale flat purchase, and how much HDB housing loans as well as CPF grant for housing they are able to get.

TMW Maxwell CEL have successfully acquired a tender for TMW Maxwell development through a joint venture.

Housing grants eligible for eligibility will be divided between the applicants and occupiers of a household or core nucleus regardless if the applicants are Singaporean nationals or residents permanent (PR). In the case of a nucleus made up of two people, a Singaporean citizen and an PR each applicant will be awarded half of the amount of grant. Prior to this, the entire grant amount was only distributed to the applicant who was flat that was who is a Singaporean citizen.

The revised disbursement guidance also applies to households whose principal nucleus is comprised of two applicants and one core occupier, both of whom are Singaporean citizens. Housing grants are now distributed equally to both as opposed to earlier, when the grant was only distributed for the person who applied.

The period of income assessment for buyers of flats has been extended to 12 months rather than one or two months. This change allows for more uniform and precise assessment of income levels for applicants, HDB says.

Lee Sze Teck, senior director of research at Huttons Asia, highlights that in the case of households with one applicant and a core occupier, only the part of the grant given to the applicant may be used to pay for the cost of purchasing the property, whereas the portion for the core occupant is deposited in their CPF account.

For instance, in the household receiving $50,000 in grant and the principal applicant is able to apply $25,000 towards the cost of purchasing the resale property, while the tenant who is the sole occupier will get the additional $25,000 charged to their normal account. “While the announcement of a double of the housing grant in February of 2023, the total grant is able to be used to buy the resale property only if both of the parties in the central group are listed as candidates,” Lee adds.

He believes that the changes in the guidelines for disbursement could cause some confusion in the HDB resale market as there are not many households that can use the entire grant amount to fund the purchase. “It might dampen the enthusiasm generated by the doubled amount of the housing grant,” he says.

In the income assessment period Lee believes that the change will be beneficial to workers who earn commissions who have a monthly income that fluctuates.

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Lendlease Global Commercial REIT (LREIT) has announced an increase in distributable income in the range of 95.9% y-o-y to $56 million for its 1HFY2023 that ended in December, which translates to an average in the range of 2.45 cents.

The revenue from the period nearly tripled up to $101.7 million, primarily through Jem’s acquisition in Jem in the month of April 2022 as well as the improved performance of 313@Somerset’s operating department. This resulted in a higher income from net property earnings of $76.4 million in 1HFY2023.

At December 31, 2022, LREIT’s total borrowings were $1.45 billion, with the ratio of gearing at 39.2%. Approximately 62% of LREIT’s borrowings are sustainability-linked financing, which are expected to generate net interest savings to its unitholders.

The average maturity of debt was 2.6 years. This was accompanied by the weighted average expense at 2.35% per annum. LREIT is a company with an interest-coverage ratio that is 5.5 times.

LREIT’s portfolio’s committed occupancy stood in 99.8% with a weighted average lease expiry (WALE) of 8.3 years by net lettable area (NLA) and 5.3 years of Gross Rental Income (GRI). Leases that expire in the year were reduced up to 5.9% from 8% earlier through NLA in addition to 9.6% from 14.5% earlier by GRI.

The Retail portfolio’s operating rate was at 99.5% as at Dec 31st, 2022. This was accompanied by positive retail rental reversion of around 2%.

As of the time of the closing at the end of the period, tenant sales and visits surpassed the pre-Covid-19 average levels, rising by five percent and 2.8 times per year, respectively in 1HFY2023.

The retail portfolio boasts good tenant retention rates at 72.4% with essential services comprising the bulk of transactions at around 58% according to GRI.

In addition, the office portfolio of LREIT reported a positive increase in rental growth about 4% and a WALE of 12.4 years as per NLA as well as 15.3 years according to GRI.

“We believe that the retail assets of LREIT will profit from China’s reopening to boost foot traffic and sales from tenants for the retailer properties,” says CEO of the manager Kelvin Chow.

Units of LREIT ended the day at an unchanged 73.5 cents on February 7.

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The sales gallery was reopened at Klimt Cairnhill on Jan 3 — following closing for six weeks, which saw the three showflats being renovated the showflats Low Keng Huat Low Keng Huat, one of the property developer in the 138-unit luxury condominium located on Cairnhill Road has closed on 18 sales. The total in units sold at 25 (28.4%) out of the 88 units that have been released up to date. The median price was $4,061 as of Jan 31st.

Alvin Teo, executive director of Low Keng Huat, says Singaporeans comprised 25% of the buyers and permanent residents accounted for another 10%. A further twenty-five% is foreign-owned buyers coming from Southeast Asia, namely Indonesia, Cambodia, Myanmar and Vietnam.

But, it was Chinese nationals that drove the growth in Klimt Cairnhill since the start of the year. They made up 40% of buyers, according to Teo. There’s been a rise in the interest of Chinese buyers after travel restrictions were lifted in China on January 8 following a three-year Covid-19 lockdown.

“Many among these Chinese buyers are relatively new in Singapore,” says Dominic Lee PropNex’s director of its luxury department. “They require large apartments that have freehold tenure as well as an ideal district address. There’s not much new stock of these properties available at present. That’s why many of the huge, four-bedroom apartments located at Klimt Cairnhill were taken up by Chinese buyers.”

Since Covid-19, the demand for larger homes has grown. The last time Klimt Cairnhill previewed in August 2021, it was only the larger units that included threeand four-bedroom apartments as well as penthouses — were offered to the market for auction.

Big units in demand
There are two penthouses in Klimt Cairnhill There is a 4,898 square feet six-bedroom duplex located on the 36th floor and a 5,290 square foot duplex with six bedrooms located on the 35th floor and the 36th floors.

The simplex penthouse was auctioned off at the end of November in 2021 to a buyer who paid $26million. With a price of $5,309 per square foot basing it on the floor area it established a new record for the area of development.

Two parties are competing for the 5,920 square feet duplex penthouse: a local and one Chinese national. The penthouse is priced above $5,300 per square foot The price of the total ticket of the penthouse will be greater than 30 million. PropNex handled the transaction.

Low Keng Huat offered multiple-unit buyers the possibility of combining two four-bedders that are on floors to meet the growing demand for spacious units with more than 4,500 sq ft of area. Both units include six bedrooms with ensuites and will be serviced by an internal staircase and private lift. In addition, Klimt Cairnhill offers two kinds of four-bedroom units ranging from 2,056 sq ft and 2 368 sq ft — the combined units will be duplexes with 4,112 sq feet and 4,736 sq ft and 4,736 sq ft, respectively.

Seven of the four-bedroom units that were sold were to buyers who bought multiple units, including those who purchased the units with family members. Certain buyers were offered the option of combining their units. The buyers were mostly Chinese or Southeast Asian buyers, says Low Keng Huat’s Teo. As of now no one has accepted the offer to combine the two units.

Ken Low, the managing partner of SRI Ken Low, who is the managing partner of SRI, has no reason to be surprised by the interest in the four-bedroom apartments at Klimt Cairnhill after the firm sold the first unit, which was 2,056 sq feet on the 33rd level to $7.72 million ($3,755 per square foot) on the 7th of January. The buyer is also believed to originate from China. “Attention has been paid towards Klimt Cairnhill after the large units in Park Nova, which is a 54-unit complex Park Nova was closed,” says Low. In fact, the Les Maisons Nassim which is home to only 14 units which have the smallest sizes with a floor area of 6,049 sq feet and prices starting from $35 million has sold 11 units so far. The most recent sale on the market at Les Maisons Nassim was for an area of 6,179 square feet on the second level , which sold for $36 million ($5,827 per sq ft) in accordance with the caveat that was lodged.

“Larger than average unit sizes’
The units at Klimt Cairnhill, it is not only the four-bedroom apartments that are large, however, the three- and two-bedroom apartments are “larger than the average” according to Teo. The two-bedroom apartments at Klimt Cairnhill are sized at 829 square feet, and two bedrooms plus study units that are 893 square feet. Three-bedroom units come in two sizes: 1,432 sq feet and 1,496 sq feet.

Since the beginning of the year Teo reports that there’s increased interest for two-bedroom apartments from local buyers, particularly young couples or families with children. Teo attributes this to Klimt Cairnhill’s location near schools which include Anglo-Chinese Schools (Junior) situated within a distance of 1km; Eton- House International Preschool, just two minutes away, as well as Anglo-Chinese school (Barker Road), St Joseph’s Institution and Singapore Chinese Girls’ School just a short drive away.

Given the increased interest in the two-bedroom types, Low Keng Huat is releasing all 50 units of two- and two-bedroom-plus-study apartments when it relaunches Klimt Cairnhill on Feb 6.

Two-bedroom units will cost from $3,200-$3,600 per square foot. The total cost of 829 sq feet, two-bedroom apartments start at $2.65 million for the floor with the lowest price to below $3 million on the top floor. The two-bedroom plus study units with 893 sq feet will have prices ranging between $2.86 million to $3.2 million.

The return to the ultra-rich Chinese?
The high demand for large apartments and penthouses in most desirable areas was evident in 3 Orchard By the Park. According to reports the report states that a Chinese buyer bought two duplex penthouses within the Prestige Penthouse Collection. Each duplex measures 6,092 square feet and features five bedrooms and the pool. The interiors are created by Formwerkz to the cost of $1.7 million per.

The buyer is planning to merge the two penthouses duplex. The price of the purchase is thought to be in the vicinity of $60,000 for each penthouse that is the price per unit that ranges from $4,963 to $5.029 psf. According to sources in the market, ERA was the broker for the sale.

“This may be the time in which the luxury market will see more notable deals thanks to the return of super-rich Chinese,” says Mark Yip the CEO of Huttons Asia. “This could not be included in the caveats since it isn’t required to file an objection. Certain deals be governed by a different arrangement or are bought under an international passport.”

Foreign buyers, particularly those from China are seeking to buy units for personal for their own use, according to Doris Ong, deputy CEO of ERA Singapore. “They are looking for units that they can live in within a short time. A majority of them have completed their research prior to when arriving in Singapore. They’re pretty sure they have an idea of what they would like to purchase. The buying decision is much quicker.”

Narrowing price gap draws Singaporean value-seekers
ERA’s Ong believes that the two-bedroom units are attractive to those looking for to be part of District 9. The two-bedroom units offer an entry cost that is more affordable for young couples or those who are looking to be near relatives, she adds. “Their parents could afford to purchase the unit for them or help in the down amount.” She also says the higher rates of interest will not be a major reason for those who are buying in this market.

Another reason for the increase in interest in condominium developments within Central Region (CCR) is the fact that Core Central Region (CCR) is the decreasing price gap in comparison to city fringe or Rest of Central Region (RCR) projects. In the entire this calendar year, median cost for RCR developments was at $2,242 per square foot as compared to CCR project was at $2,806 per sq ft. This shows a gap of 25.2% in 2022, contrasted with 42.7% over the past decade, from 2012 until 2021, according to Huttons Asia.

In December, brand new RCR projects were sold at the median price of $2,648 per sq ft as opposed to CCR projects were valued at $2,886 per sq ft which brought the price difference in between these two groups reducing to 9%. “If prices remain at a steady level in 2023, this dwindling gap in price would remain as there would be more buyers seeking to purchase a unit from CCR projects. CCR project, as it could provide better value,” says Huttons’ Yip.

This may be the reason for the increase in sales of other freehold developments in the CCR which were launched earlier. A good illustration can be found in the Perfect Ten located in Bukit Timah, which was launched three days following the December 2021 round in cooling procedures. The 230-unit freehold project located on Bukit Timah Road, in District 10’s most sought-after district is more than 81.3% sold to date. The average price between December 2021 through December 2022 was $2.995 per sq ft. In the 10 units that were sold this year the average price jumped to $3,207 per fsf.

Another project that was launched at the beginning of the year with a brand-new showroom and sales gallery. It is the Cairnhill 16. It has 39 units. Cairnhill 16.. Since the 5th of January 8 units were sold. The majority of buyers are believed to be local Singaporeans purchasing to move into the project is scheduled to completion in the 4th quarter of 2023. The units sold on average were $2,682 per square foot according to caveats that were lodged. “Cairnhill 16 has smaller unit sizes , and is more affordable quantum costs that attracted Singaporean homeowners and investors,” says SRI’s Low.

He attributes a portion of the increased demand for housing at Cairnhill 16 Perfect Ten and Klimt Cairnhill due to the change to the ministry of education’s principal one-school registration process this year. “With the fewer spaces available to children in the Phase 2A which includes alumni, parents who wish their children to go to their old school might have decided to purchase an apartment in a condominium within a radius of 1km from the school to boost the likelihood of their children attending,” adds Low.

In the wake of Chinese wealthy and Singaporean buyers scouting properties in the CCR Low Keng’s Teo believes that “the timing of the launch of Klimt Cairnhill is much better for buyers” because of the less time-consuming project’s completion time and the Temporary Occupation Permit expected by the late 2024 or 2025.

Deals for investment in industrial real estate decreased in 4Q2022 due to a more uncertain economic outlook and a decline in business confidence, according to the Knight Frank Singapore 4Q2022 industry and logistic research study.

In total, $715.1 milllion in commercial sales were recorded in the 4Q2022 period. Based on Knight Frank, this is the lowest volume for a quarter since 2Q2020 when $324.8 million of sales were registered at the beginning of the pandemic.

TMW Maxwell in Maxwell Road will also benefit from the planned rejuvenation of Tanjong Pagar and the planned developments of the Greater Southern Waterfront precinct.

The most notable transactions of this quarter comprised selling Enterprise Logistics Centre, a two-storey ramp-up warehouse located in Tuas in the city of Tuas, at $120.6 million during November and the selling of two industrial sites at 10 , 12 and Mandai Estate at $100 million during December. Knight Frank highlights that other deals in the quarter were mostly smaller, with 97.2% of the caveats that were filed during 4Q2022 being transactions that were less than $10 million.

The drop in transaction volumes is due to a slowdown in manufacturing. In 4Q2022, growth in GDP in the manufacturing industry slowed by 3% in contrast to previous 1.4% growth recorded in the preceding quarter. “The decline in the global demand for semiconductors has impacted the electronics sector and the overall , declines in the chemicals and biomedical clusters hindered development in the 2nd quarter of the year.” Says Norishikin Khalik. director of strategy and solutions for occupiers in Knight Frank Singapore.

The lower growth of manufacturing and concerns about recession have weighed on business optimism. According to the Singstat 4Q2022 business Expectations Survey, Knight Frank says that more manufacturing firms that were surveyed expect a less favorable business outlook for the period between the months of October 2022 and March 2023 as compared with the prior quarter’s survey. Furthermore the Singapore Purchasing Managers Index (PMI) is which is a monthly survey of purchasing managers from private manufacturing companies and companies, reported an eighth consecutive month of decline during December of 2022.

However, despite the fact that sales decreased, leasing transactions for industrial use continued to be relatively steady in the months of November and October 2022. driven by companies that specialize in general production, manufacturing related to construction transportation engineering as well as precision engineering. Median rents of multi-user factories has increased by 8.7% y-o-y to $1.94 per sq ft per month, which equates to 1,571 tenancies, according to Knight Frank.

Despite the headwinds, Singapore continues to attract fixed asset investment to industry. Manufacturing fixed asset investments decreased between $3.6 billion at the end of 2Q2022 and $411 million in 3Q2022, a number of manufacturing facilities that are new are currently in the pipeline. The most notable is an $600 million semiconductor plant located in Tampines through Applied Materials and a $571 million extension of Soitec’s Wafer Fab Park in Pasir Ris.

In the future, Norishikin anticipates industrial prices and rents to be stable with a modest growth of one% up to% in 2023. “In the logistics industry in which supply is scarce and warehouse space is in high demand, the rent for high-quality warehouse space could rise up to three% up to% over the next year,” she adds.