Belgravia Ace bid price

In the SG Real Estate Agents Excellence Awards 2021 recently, 374 winners were recognized for their dedication and outstanding performances in the field. The annual ceremony is hosted through the Singapore Estate Agents Association (SEAA) the largest industry-wide representative body for realtors in Singapore. The ceremony for this year’s awards was held online on November 5 and the guest of honour was Tan Kiat How, Minister of State for Communications and Information & National Development.

Belgravia Ace showroom setting in a low-rise estate, Belgravia Ace is a nice choice for families who treasure privacy and convenience.

EdgeProp Singapore was the official media partner of the event that was live streamed. Awards entry requirements and requirements remain the same as those for the first event of the year.

The categories that are contested are The Outstanding Youths Award which recognises agents younger than age 28 The Senior Achievers Award for agents older than 60, along with the Rookies Award for new agents who started their careers following July 1, 2019. There were as well Salesperson Achievement Awards for top performers.

As per SEAA the president of SEAA Adam Wang, it was essential to create awards for the industry that were open and inclusive to agents of all kinds regardless of their age or level of prior experience. “Everyone should be recognized for their efforts and dedication to the agency at a national and international levels,” he told EdgeProp Singaporein an email interview.

The awards ceremony this year saw nine winners of the Outstanding Youths Award, 13 winners of the Rookies Award, five winners for the Senior Achievers Award, and 347 winners for The Salespersons Achievement Award, which was divided into four categories which included Diamond, Platinum Gold, Silver and Gold.

The awards are recognised by the industry’s regulatory body Council of Estate Agents (CEA). The recipients of each award are listed in their own profile on the CEA’s public register.

The award recipients were assessed by an expert panel of judges: Chong Kee Hiong, CEO of Suntec REIT manager ARA Trust Management; Fortis Law CEO Patrick Tan; and Professor Sing Tien Foo, director of the Institute of Real Estate and Urban Studies at the National University of Singapore.

Both quantitative and qualitative measures were employed to assess the applicants. In addition to assessing customer testimonials, sales performance were also considered to provide a balanced evaluation.

In his welcome remarks to the ceremony the Minister Tan felicitated all recipients of the awards. “[The award winners] demonstrated not just a good sales, but more important, they have demonstrated a high degree of professionalism that merits this award,” he says.

The 4 Ps approach

In his speech Minister Tan explained how organizations and agents can contribute to improving the quality of life by implementing what Minister Tan calls”the “4 Ps” approach : professionalism, productivity, progress and collaboration.

For productivity, particularly he cited the growing use of digital tools in the business, including online property tools for research and the digital signatures used in lease agreements. “On our side, CEA has also rolled out the brand new Advanced CEA Estate Agencies System (ACEAS) in July of this year, to replace the 10 years-old system,” he adds.

In a bid to highlight the necessity of addressing problems with online that agents have to face Minister Tan launched the Alliance for Action (AfA) on Accurate Property Listings, which will eliminate dummy or redundant property listings. “This is a problem for years that buyers [as well as property agents] always had to face when searching in search of properties,” he says. The AfA is co-led by the SEAA and the AfA, the alliance includes the five biggest property agencies: PropNex, ERA, OrangeTee & Tie, Huttons Asia and SRI. EdgeProp Singapore will be a part of the AfA as well.

A voice for agents

SEAA president Wang shares Minister Tan’s views regarding the changing technological landscape, stating that it remains an important issue for many agents, especially in the Covid-19 market. “Salespersons especially those who aren’t technologically adept aren’t always up to date with the most recent technology tools and the use of the use of social media in marketing. This puts them at risk of being marginalized by their colleagues,” he says.

To achieve this, SEAA has placed significant focus on education for its members. They have been able to offer online webinars and training sessions to instruct agents on how to utilize tools like 360-degree VRs, online signatures of lease documents as well as analysis of data property reports website launch sites for projects and push technology that allows them to reach out to prospective clients.

The initiatives taken by SEAA highlight its mission to increase competence and promote ethical conduct in the business by continuing education and creating industry standards to raise the bar for professionalism. In order to achieve this, Wang says that a united voice for the industry is essential. He is hoping that more agents recognize the benefits of joining SEAA that currently has about five hundred members.

In the next year in the coming year, the SEAA is planning to roll out additional training programs, making sure that salespeople are up-to-date and equipped with the latest information and tools. It has also named CEO Edmund Toh, effective Nov 1st. Toh was previously an executive committee member of the SEAA.

Belgravia Ace feng shui

An industrial property located at 48 Changi South Street 1, within the Changi South Industrial Estate is available for sale for $12 million or $270 per sq ft.

The four-story building is situated on land that is approximately 44,368 sq feet which is an area gross of around 44,367 sq feet.

Belgravia Ace feng shui is located in a beautiful landlocked property that benefits from an environment that is low-rise, which reduces the anxiety one might encounter in the urban area.

The property has a the ceiling height of a double volume, which includes 27 service bays located in the production area and service area, with the capacity to load floors of 15 Kilonewtons per square meter.

The building is serviced by a car lift as well as an elevator service, as well as parking spots for cars available on site. Additionally, there are office spaces and meeting rooms within the area.

It is designated to Business 2 (Industrial) use with an average proportion of 1.0.

“Equipped completely as a full-fledged vehicle fleet maintenance facility the seller has owned the building for a long time however, it has now expanded beyond the size of the premises due to the expansion of the business. There are several options available to the buyer to purchase the premises on the basis of vacant possession or under a leaseback arrangement,” says Sammi Lim the co-founder and executive director of Brilliance Capital, who is selling the property.

The exercise to express interest will end on January 7 at 3pm.

Belgravia Ace Tong Eng Group

The owner of a unit located at the Nassim The Nassim, which is located on Nassim Hill has made the biggest gains of $2.6 million in the period of October 26 through Nov 2. The 3122 square feet apartment on the top floor purchased at $10.4 million ($3,332 per square foot) in February of 2018 and it was sold to a buyer for $13 million ($4,165 per square foot) on October 26. The seller thus made a 25% profit and an annualised gain that was 6% over the course of nearly four years.

Belgravia Ace Tong Eng Group established a number of the land parcels as properties which were leased to British troops stationed at Singapore in the early days in the history of Singapore.

It is located in District 10. The Nassim is completed 2015 and contains the freehold of 55 homes. It’s an eight-minute drive from Orchard MRT Station on the North-South Line.

The second-highest profit resale in the week under review with a 47% profit of $2 million was The Esta, located on Amber Gardens in District 15. The 3,477 square foot apartment on the 21st floor bought at $4.25 million ($1,222 per square foot) during July of 2012 and then sold at $6.25 million ($1,798 per sq ft) on the 29th of October. The seller earned an annualized income in the range of 4% over the course of nine years.

Esta includes 400 freehold units. It was completed in the year 2008. It’s just a 6-minute walk to the planned Tanjong Katong MRT Station on the Thomson East Coast Line.

A unit that was sold in the Martin Place Residences Martin Place Residences made the third highest gain of the past week, making 65% profit of $1.77 million. The 1,722 square feet apartment situated on the floor 30 was acquired by the developer in June of 2009, at $2.73 million ($1,587 per square foot) It was then the unit was sold at $4.5 million ($2,613 per sq ft) on the 27th of October. The seller thus made an annualized income of 4% for a total of nearly twelve and a half years.

Martin Place Residences located on Martin Place in District 9 includes 302 freehold units. It was completed in the year 2011. It’s just a short walk to the planned Great World MRT Station on the Thomson East Coast Line.

However, the most profitable transaction of the week was selling of a 2,530 square feet unit in Orchard View on Oct 27. After selling this property at $7.1 million ($2,807 per sq ft) the seller incurred the 18% decrease in the amount of $1.59 million. The property was bought in August of 2010 at $8.69 million ($3,434 per square foot). For a period over 11 years would translate to a loss per year of 2%.

Belgravia Ace unit for sale

The Assembly Place, a co-living and start-up in Singapore, announced that it had raised $5.55M in seed funding. It was led by Eric Low See Ching. Low, the second largest shareholder of Oxley Holdings, a Singapore-listed property company, is also its deputy CEO.

Belgravia Ace unit for sale featuring 3-storey 100 strata terrace houses and 18 strata semi-detached houses in a perfect ambience.

Low is the cornerstone investor. There are over 10 angel investors in this round. Many of them are well-known figures in the realty sector. Kemmy Tan is the CEO of M+S which is a joint venture between Malaysian Khazanah Nasional (Singapore) and Singapore’s Temasek Holdings. Ismail Gafoor is CEO of Singapore’s largest property agency PropNex. Wendy Tang, group managing direct of Knight Frank’s international property consultancy Knight Frank. Bruce Lye, Ken Low, managing partners at SRI, and Shaun Poh, Cushman & Wakefield’s executive director capital markets, Cushman & Wakefield, Cushman & Wakefield, Cushman & Wakefield, Cushman & Wakefield, Cushman & Wakefield, Cushman & Wakefield, Cushman & Wakefield, as well as well as well as Shaun Poh and Cushman & Wakefield’s, Cushman & Wakefield’s, Cushman & Wakefield, Cushman & Wakefield,

Entrepreneurs such as Dennis Goh (co-founder and executive chair of Lyte Ventures’ finance platform) and Sean Tan (group legal advisor for Technovator International in Hong Kong and director of True Group – one of Asia’s largest fitness and wellbeing groups) are other investors.

Eugene Lim, founder and CEO of TAP, said that the seed funding will enable TAP to accelerate growth, increase its market share and develop its technology platform. Lim served as director of marketing at Oxley Holdings, where he was for five and a half years. He resigned in July to devote his time to TAP.

Lim is new to fund-raising and only began approaching his contacts a month ago. Lim says that many of the people he approached wanted to get to know him, as he had just left Oxley to start his own business in the middle of the pandemic. “I was surprised and touched to discover that 90% of the people I met believed in me, and were willing to invest in my business.”

Oxley’s Low is more than a cornerstone investor. He is also chairman of TAP’s newly created board of advisors. Tan of M+S and Knight Frank’s Tang, as well as Lyte Venture’s Goh, are the other members of the board.

Low was an early supporter of TAP. He contributed some of his personal assets to its co-living spaces portfolio. After deducting property management fees and exempting capital expenditure, he estimates that his yields on the same assets have increased by more than 30%. Eugene adds that he has made the firm an asset-light operator. This is unlike co-living companies that take up straight leases.

Asset enhancement through the “Social Experiment”

Lim says that TAP was founded purely as an investment venture and as a “social experiment”. In May 2019, the first asset was secured: a house in Jalan Elok, near Mount Elizabeth. Lim’s friend had told him about the difficulty of renting out his house at $6,000 per month. Lim saw an opportunity to improve the asset. Lim negotiated a $5,500 monthly rent with his friend and used some of his own funds to renovate the space. Within two weeks, all six rooms were rented out.

TAP currently has over 350 rooms in Singapore, with another 200 in the pipeline. TAP has approximately 95% of its rooms under a 5-plus5 year management agreement with the property owner.

TAP currently manages assets worth more than $250,000,000. Most of these assets are owned by wealthy individuals and their families. TAP will pay for any asset enhancements or capital expenditures in fitting out the properties to be co-living spaces. This allows TAP to be called “an asset-light operator”.

TAP has been able show these asset owners higher than average returns in return for their assets compared to straight lease models. Lim says that residential yields range from 2.5% to 3.3%. “But, over the past 2 1/2 years we have shown that coliving can increase rental yields on these assets by about 4% to 5.5%.

These returns have attracted more asset owners to join the TAP team. TAP announced that it has secured four additional buildings as part of a 5-plus-5 year management contract. A 171-bed co-living hostel will be one of the key assets. It is located at 25A Perak Road. This is the refurbishment of Footprints Hostel. The three other assets will be repositioned to include residential and serviced apartments. These properties can be found at 3 Tank Road (15 Penhas Road) and 272 East Coast Road. Lim notes that the four assets will bring TAP’s portfolio up to 550 rooms in 16 co-living assets. Lim also noted that TAP is on track for 1,000 rooms by 2Q2022, with 16 more purpose-built assets.

PropNex’s Gafoor, a multi-asset owner and a veteran in real estate, saw the potential for the business right away. He says, “TAP’s business caught my attention.” He was able to see how it increased the property owner’s assets. He says that Eugene Lim, aside from the concept, is “a person who gets things done once they set their minds to them”.

SRI’s Lye, who has known Lim since Knight Frank, is also convinced by Lim’s leadership. Lye introduced Lim to some of his clients who were high-net-worth about 1 1/2 years back. He explains that they own whole blocks of buildings. Lim was able to reposition the assets and increase their yields.

Trends changing

Lye sees the growing trend of millennials in Singapore and Generations X and Y leaving their parents’ homes. Most people in Singapore stayed with their parents until the time they were married. He says that the pandemic and WFH (working at home) have caused many people to want to leave their parents and move into their own homes. Many rent in central locations to be near amenities, entertainment, and their work place. He adds that they may go back to their parents’ homes on weekends. “But most people are happy to have their space. This trend will continue.

Accordingly, Lye believes TAP’s market share will continue to grow. Lye says that TAP will likely be a market leader within the co-living industry. “I believe it’ll be a unicorn some day,” Lye said.

Knight Frank’s Tang says that property management and renting out rooms within a residential property are traditional real estate businesses. She notes that Lim gave it a new twist by creating a co-living model. Lim and his team are able to “continually adapt and innovate”, she says.

Cushman & Wakefield’s Poh initially believed that co-living might not work in Singapore because of the high homeownership rate. He says that co-living could be feasible in major Japanese cities, such as Hong Kong, where the apartments are smaller and people are more used to renting.

After listening to TAP’s business model Poh realized that it serves a niche: “The young, entry-level, or mid-tier white-collar executive from Malaysia and other countries who come here to work”. He explained: “They are the sandwiched group with incomes between $3,000 and $5,000 that have difficulty finding affordable accommodation, particularly if they rent a room.”

Lim recognized the need for affordable rental housing nine years ago. This was in his role as Knight Frank’s head of project marketing. His Malaysian colleague used to arrive at work every day in rumpled clothes. Lim, who is well-groomed and always looks good, inquired about his colleague’s wardrobe. He was shocked to learn of the Harry Potter-style accommodations of his colleague: a bomb shelter in an apartment he paid $500 per month. He had previously rented the utility room in a public housing apartment.

Affordable accommodation that offers privacy and space

Lim can now live in the same kind of accommodation as his Malaysian counterpart with TAP. TAP’s most popular property, Mill@32 in Lorong 32 Geoylang has attracted many young people, most of them from Malaysia. Lim says. The property has 150 rooms and rents for $1,200 per month for a room with shared bathroom.

James Wong is one such resident. He is a music teacher at a Singapore pre-school. Wong, a Malaysian, moved to Mill@32 in August 2013 with his girlfriend. Wong signed up initially for three months and then renewed for one year. He plans to renew his contract for another year.

Model of ‘Pay as you go’

Coliving is a great option for Singaporeans whose homes were delayed due to Covid-related disruptions. Kim Chuan, a technie at Amazon, is one example of such homeowner. Kim says that her condo at Parc Botannia was twice delayed.

TAP’s coliving space at 96 Owen Road is where the 35-year old will be staying until he receives his keys to Parc Botannia. He loves that 96 Owen Road is pet friendly, so he can bring his dog to the co-living area. He enjoys the privacy and the possibility to meet other people in the shared area.

True Group’s Tan noted that people don’t want to be tied down for two- to three-year fixed memberships. He says that boutique gyms have been adopting a pay as you go model in recent years. This appeals to young people. That’s how TAP prefers to do business.

Tan believes that co-living is a growing business. Co-living operators were worried about occupancy being affected by the closure of borders in the first months of the pandemic. They mainly catered to expatriates.

Even Lim has witnessed a shift in demographics. In his early days, 90% of Lim’s members were foreigners. Singaporeans made up only 10%. TAP members today include 30% Singaporeans.

This business is certainly gaining traction. M+S’ Tan notes that while asset-lighting is important, the business has also achieved high retention rates. This high retention rate has been maintained by the programming and partnerships that M+S has made with other service providers to serve members.

Lyte Ventures’ Goh loves the fact that TAP “built a great company very quickly with many of their users rating it highly”. Goh, who founded social media platform Hungrygowhere and financial platform Lyte Ventures, says, “I know how difficult it is to create good brands.”

Goh adds that TAP’s rapid growth and foundation have given him great confidence. Lim says that TAP’s goal is to be a dominant player in Singapore and the region.

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The guide price for Tanjong Pagar’s three-storey shophouse is $8.9 million. It is located at 57 Duxton Road.

The shophouse is situated on approximately 1,144 square feet of land, with an estimated built-up of 3,407 square feet.

The property is zoned for commercial use. The ground floor unit is currently rented to an F&B operator, while the upper floors can be rented as office space.

It is located between Duxton Hill, the F&B enclave and the Keong Saik Area. Access to Outram Park Interchange Station is also possible.

Yap Hui Yee is the director of investment sales & capital market at Savills Singapore. He says that “Given the precinct’s still undergoing urban revitalizion, this offers an exceptional value-add opportunity to the buyer to explore different potential uses for the shophouse, and ride on the growth transformation of the precinct.”

The expression of interest will close at 3 p.m. on December 10.

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Noel Neo has been appointed head of Singapore’s mid-markets by JLL Hotels & Hospitality Group on Nov 8, in an effort to provide better service to clients who are looking to expand their investments in this sector.

Neo will be responsible for the investment sales, leasing, and operator selection of midmarket Singapore hospitality assets. He will also maintain and grow a network of operators, investors, and owners of hospitality assets. Additionally, he will assist in the execution and fulfillment advisory mandates to help facilitate growth in this sector.

Neo will report to Nihat Ercan (the group’s head for investment Sales, Asia Pacific), and will work with a wider team of professionals in Singapore as well as regionally.

Ercan says, “Investors are more likely to access diverse capital pools that can be used for localized assets. This is reflected in brewing interest in mid-market segments in gateway locations and acceleration of newer hospitality themes like co-living.”

“We are delighted to welcome Noel into the team during a time when Singapore’s hospitality market is recovering from the pandemic. He adds that his unique combination of international and local investor networks, and deep understanding of Singapore’s hospitality market will be a benefit to our clients.”

Neo founded K Hotel Group, which built a portfolio consisting of 13 properties in Singapore over a period of two years. He was also responsible for regional research at the Asia Pacific Real Estate Association and investor interface, and managed asset management and investment in Southeast Asia at Pacific Star Holdings.

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Courts (Singapore), which is a wholly owned subsidiary of the Nojima Corporation will officially open its flagship Courts Nojima store at Orchard Road, on Nov 6.
The store’s Nov 6 opening is ahead of its previously announced timeline for the first quarter next year.

Only the first three floors will be open. The remaining floors, including levels four and five as well as B1, will be open as planned in the first quarter next year.

Courts will open this flagship store in Tampine, following the Courts MegaStore in Tampine.
Robinsons The Heeren occupied the Orchard store’s premises before it closed down in December 2020.

Named after the Nojima Corporation, the new store is named after it. It will also aim to provide service that is up to the standards of Japan to Singapore.

The Orchard flagship will offer a wide range of IT, furniture, and electrical products. There is also a large premium bedding collection that includes brands such as Sealy, Simmons, Serta and Sealy. The store will also offer unique products such as Itoki (a 130-year-old Japanese workplace furnishing company) and Bertazzoni’s premium Heritage Series ovens.

Orchard’s flagship store will offer experiential concepts, such as an e-sports gaming area, four premium sound rooms, and a robot vacuum.

The new Courts store, which spans 189,000 square feet over six floors of The Heeren’s retail podium will be the largest in Singapore when it is fully open.

All existing Somerset offerings will be moved to the Courts Nojima location.
The Courts Tampine MegaStore will continue to operate as it is.

“Despite facing many headwinds, uncertainties, due to the ongoing Covid-19 epidemic, we are extremely encouraged to be opening Courts Nojima flagship shop ahead of schedule,” Hoang Duc Thanh Matt, country chief operating officer of Courts Asia Limited, and Courts Singapore Country CEO, says.

“The Courts Nojima new store will be looking for more staff across its retail floors. We are thrilled to have the chance to create employment opportunities in the sector. He says that the opening will bring some holiday cheer to Singaporeans as the year winds down, and help to revive the vibrancy and spirit of Singapore’s retail sector.

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City Developments (CDL), has been awarded the 2021 Terra Carta Seal by Prince of Wales via his Sustainable Markets Initiative on Nov 3.

CDL was the only Singapore-based company among 45 global companies to receive the seal. This seal recognizes global companies that are innovative and demonstrate commitment towards building truly sustainable markets.

“The Terra Carta seal recognizes organisations that have taken a serious commitment towards a more sustainable future and put nature, people, and the environment at the core of their economy. The Prince of Wales released a press release saying that all people need to make positive changes in order to protect the planet for their children and grandchildren.

Sherman Kwek is the CEO of CDL Group and says that the company is honored to be given the seal by the prince. We share the same commitment to connect People with the Planet by recognising the intrinsic value and promoting it. He says that in this decade of urgent action we will continue to push for our ESG integration efforts to increase the value and resilience our business.”

CDL, a real estate developer in Singapore, was the first to sign the World Green Building Council (WorldGBC), Net Zero Carbon Buildings Commitment. This commitment required CDL to reduce its operational carbon emissions by zero by 2030.

The company was also recognized as Global Sector Leader, Overall Regional Sector Leader, and Global Sector Leader in the Global Real Estate Sustainability Benchmark 2021 Diversified — Office/Retail 2. category. CDL has maintained its GRESB 5-Star rating, which recognizes entities that are in the top 20% of this benchmark.

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This year, Singapore’s star performer in the housing market has been HDB public flats. Here, four out of five Singaporeans live in HDB housing flats. Of those, 90% own their homes.

The HDB resale prices index saw a 2.9% increase in q-o-q during 3Q2021, marking its ninth quarter-end growth. The index is now at 150.6, surpassing its previous peak of 149.4 in 2Q2013. Nicholas Mak, head research at ERA Realty, stated that HDB resale values have increased by 15% since 3Q2019 based on the index. On Nov 1, he spoke at the ERA EdgeProp webinar, where the theme was “Does upgrading now make sense for the future?”

Mak says that the major contributor to skyrocketing HDB resale values is the shortage of construction materials and delays caused by the pandemic. He says that delays in building HDB Build-To-Order flats (BTOs) have led some first-time buyers to the HDB market.

Every year, between 20,000 and 25.000 families are created. The majority of these families choose to live in an HDB flat for their first home. Mak says that this creates a steady pool of housing demand.
Between 2017 and 2019, HDB resale volume was between 22,000 to 25,000 flats per year before the pandemic. With the ongoing pandemic, there were 24,748 resale transactions in 2020. Mak predicts that this year will end with between 30500 and 31500 HDB resale transactions.

Mak notes that this year’s transaction volume will be the highest since 2010. Mak notes that if it weren’t for the pandemic, there wouldn’t be such a surge in resale transactions volume.

Eugene Lim, ERA’s chief executive officer, says that the rise in HDB resale and prices is not due to the pandemic. He also attributes it to “confidence” in Singapore’s economic recovery, as well as the very low (around 1%) bank housing loan rates. Lim says that confidence and low borrowing rates have attracted more buyers to the HDB resale market, as well as private residential markets.

According to Mak, another factor that could contribute to HDB’s resale prices inflation is the number of flats that have exceeded their minimum occupancy period (MOP), in the last two to three years. HDB data revealed that 25530 flats had reached their five year MOP in 2021. This is an increase of 24,163 units from last year.

Why spend a million dollars on HDB flats when you can have them for a fraction of the price?
According to Lim, ERA, a record 192 HDB flats sold for at least $1million in October, an all-time high. Many of these flats were either beautifully renovated or have a great view.

A five-room HDB in Bishan was sold for $1.36million. Lim says that it is the most expensive HDB apartment ever sold.

Bishan is an established HDB community and home to top schools such as Raffles Institution, Ai Tong School, and Kuo Chuan Presidency Primary School. Mak says that this contributes to the high demand. ERA Research found that HDB towns in the Central area have the highest number of million-dollar transactions. These include Pinnacle @ Duxton and Bishan, Toa Payoh, Bukit Merah, Toa Payoh, Pinnacle @ Duxton and the Dawson flats in Queenstown. Mak believes that the rise in million-dollar flats is not due to the pandemic, but rather to the premium attached certain Central areas like Bishan.

Affordableness could also be a reason behind these million-dollar HDB flats. Flats worth $1 million to $1.1million could be afforded by first-time buyers who have a monthly income of $14,000. This is the income limit for HDB flat buyers. Mak notes that a budget of $1million to $1.1million will not suffice to buy a 99-year leasehold condo located in Bishan.

A three-room apartment on the private residential market is comparable to a five-room HDB home. The latest transaction in the Bishan area was at The Gardens of Bishan, Sin Ming Walk. Based on a caveat lodged, a nine-floor, 1,206-square-foot, three-bedroom unit at the 99 year leasehold condo was sold last month for $1.648 million ($1,367/ft). This condo is 17 years old. A newer project is Sky Habitat. This 99-year leasehold condominium at Bishan Street 15 was designed by Moshe Safdie. It was developed in a joint venture by CapitaLand and Mitsubishi Estate Asia. It was completed in 2015. According to URA Realis, a 1,249-square-foot, three-bedroom unit located on the ninth floor sold last month for $2.1million ($1,682 per square foot).

BTO vs resale flats

Mak says that some young couples might have financial constraints. They can apply for HDB BTO flats if they’re not in a rush. BTO flats aren’t available in all HDB towns in Singapore, unlike resale.

Mak says that the prices for BTO flats are usually 15% to 25% less than similar resale flats within the same area. The BTO flat buyer is buying it already at a discount price. It could however mean that there will be an eight-to-10-year wait between the time the BTO flat application was made and the end of the five year MOP, when the flat is available for sale on the resale marketplace. He observes that HDB resale values could fluctuate during this time. But the trend over time is generally upwards. The BTO flat buyer can experience a greater capital gain over the long-term.

Lim notes that a BTO flat costs $150,000 less than an HDB flat for the same location. There is also upside potential after MOP. The original purchase price may be $200,000 more than the selling price. It comes after a 10-year waiting. He says that private condominiums are more affordable than HDB flats. You don’t have to wait 10 years for a $200,000 capital gain.

A downside is that BTO flats might not be in the right location for young couples. Others may prefer to live close to their parents. Lim says that their parents might be in an older housing estate with fewer BTO flat launches. BTO flats in popular estates are more sought-after and therefore, there is a risk of oversubscription.

Lim says that first-time buyers are more likely to find a flat in the resale HDB marketplace. You may still be eligible to receive housing grants, such as the family grant, enhanced housing grant or proximity housing grant.

Future prime flats tied up for ten years

With its new model of public housing called prime location public housing, the government is already trying to cool down the HDB market. The monthly income limit of $14,000. is required for those who wish to purchase these BTO flats located in prime locations.

The MOP period is now 10 years instead of the five-year limit. Additional restrictions include the possibility of a clawback on the housing subsidy for resale and the inability to rent the entire apartment after the MOP.

Mak says that these restrictions make it less attractive to investors. It’s aimed at buyers who are looking for a place to call home.

It is dependent on how many such PLH flats are released as to whether it will impact HDB resale values. Mak adds that buyers of PLH flats won’t be able to move to private property as soon as they are released. Mak adds that they might not have the same benefits as HDB resales.

Mak says that the demand for private condos and HDB resale apartments in the vicinity of the PLH PLH BTO projects may result in a spillover. These restrictions apply only to BTO flats located in prime locations. He says that the government will continue to build BTO flats in other areas of Singapore.

Supply can also be used to cool the HDB market. The ramp-up isn’t as aggressive due to disruptions in the supply chain. Mak reports that the government launched 16,800 HDB BTO flats last ye, approximately 17,000 flats, and will launch 17,000 more next year.

Mak says that the increase in supply will not immediately stop prices from rising as it takes time for the market to cool down. The current sales momentum may continue into at least 1H2022. He notes that the pace of price rise could slow down next year, as the government increases the supply of BTO flats in prime locations.

Private resales rebound

There has been a significant increase in activity not just for HDB resales. Both private residential resale and new home sales saw an increase. Private new home sales surpassed 9,912 units in 2019 by way of the pre-Covid figures. Private residential resales amounted to 15,214 units, which is 1.7 times more than the 8,949 transactions of 2019.

It is worth noting that the market share for private residential resales has increased from 20.1% to 31.5% in 2019, and to 31.5% in the first three quarters 2021. In contrast, the market share for HDB resales fell from 53.2% in 2019 down to 47.8% during the first nine months. Lim believes that this means that HDB resale flat beneficiaries have moved to private property.

Mak attributes this to homeowners who are looking for fully furnished housing units they can move into right away. They have chosen private resale condominiums over new launches. He adds that this has partly fueled demand for private resale condos.

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Ang Mo Kio Town Garden West Near To Belgravia Ace Landed Property at Ang Mo Kio by Tong Eng

In the past ten years, Canberra has seen a lot of change. This estate, located between Sembawang in northern Singapore and Yishun in the north, has seen a steady development with more private and public housing projects popping up in recent years.

Further growth has been sparked by the opening of Canberra MRT Station, on the North-South Line, in November 2019. In 2020, Canberra Plaza was opened as a neighbourhood mall. It offers more amenities and restaurants to the expanding community.

These developments are part of an overall government push to establish the Sembawang region. The NorthSouth Corridor is an expressway that will reduce commute time to the city; the Bukit Canberra integrated sports and community hub; and Woodlands Health Campus, which will provide integrated healthcare facilities.

Sembawang Shipyard is also being considered for redevelopment. According to the URA Master Plan, the site could be converted into a mixed-use waterfront lifestyle area once the shipyard operations are over.

All these plans are in place, and Canberra looks set to become a vibrant residential area.

Healthy demand

A few residential projects have been launched in Canberra in the last two years, including Parc Canberra in February 2020, a 496-unit executive condo (EC) by Hoi Hup Realty, Sunway Developments, and The Watergardens in Canberra in August 2018. This 99-year-leasehold condo was launched by UOL, Singapore Land, and Kheng Leong Co.

These launches have seen a healthy take-up rate, which indicates a strong demand that has been maintained even during the pandemic. Parc Canberra, for example, saw 64% of its 496 units sold during its launch weekend. The project is almost sold out today, and there is only one unit for sale.

During its launch weekend in August, 60% of the 448 units sold by The Watergardens Canberra.
MCC Land’s Provence residence, a 99 year leasehold EC on Canberra Crescent, has received a similar positive response since its May launch. “In five months, approximately 80% of the units in Provence Residence were sold. “We are very encouraged by this stellar sales momentum,” a spokesperson from MCC Land.

It is interesting to note that while 40% of buyers are already from the northern region, 60% of them come from other parts. This indicates the increasing interest in the area.

Entry point affordable

MCC Land attributes Provence Residence’s strong take-up to its location close to the MRT station as well as the high demand for ECs from the northern region.

Another reason for its popularity is the development’s low pricing compared with condos or other ECs on the market. Prices for three-bedroom units starting at $890,000. Four-bedroom units starting at $1.58million. The developer claims that 51% are first-timers and 49% are second-timers.

George Wang, ERA Realty Network’s district director, noted that Provence Residence currently has outstanding units starting at $1 million for three-bedders, and $1.65 million if you are looking for four-bedders. During an ERA-EdgeProp webinar, he stated that these prices are good entry points to HDB upgraders who want to kickstart their private land journey.

Doris Ong is the COO of ERA’s project marketing. There is still a 15 to 25% price difference between new EC projects such as Provence Residence and 99 year leasehold condos within the same area. She says this gives first-time buyers more options for different lifestyles and budgets.

Modern French design

MCC Land claims that buyers were also attracted by Provence Residence’s unique French theme. Five 13-storey blocks and four 112-storey blocks make up the project. It incorporates French architectural and design elements such as French-style courtyards, muted colours like black, white, and gray, as well as classically French motifs, such as Breton stripes.
The units at Provence Residence consist of three- or four-bedroom apartments measuring 883 to 1 399 square feet.

The facilities at Provence Residence can be divided into two zones: Countryside Gardens and the Royal French Court. The Royal French Court has facilities like a 50m lap swimming pool, a gym and a topiary walk. It also includes a function room. The Countryside Gardens will feature landscaping and plants as well as semi-private gardens. These spaces offer quiet outdoor spaces for residents to host small gatherings. Residents can also enjoy a sky lounge and roof terrace.

Nearby nature attractions like the Mandai Mangrove, Mudflat Nature Park and Kranji Marshes, Sungei Buloh Wetland Reserve and Kranji Marshes will be available to residents. Ong from ERA says that the northern region is attractive for cyclists because of its low density nature.

Provence Residence will be granted its temporary occupation permit by 2025.

Track record of success in the north

MCC Land is the property-development arm of China Metallurgical Group Corp, a state-owned Chinese enterprise. It also has a construction arm, which has constructed HDB projects such as the 1,528-unit Sunshine Gardens of Choa Chu Kang and the 856-unit Punggol Emerald in Sengkang.

MCC Land’s first EC project was launched in the north in 2010 after the group made its foray into property-development. It is the 406-unit Canopy located at Yishun Avenue 11. In 2014, the 99-year leasehold EC was finished. In 2014, the 99-year leasehold EC was completed.

The developer also project managed two ECs, Northwave and Forestville, as well as The Nautical condo in the Yishun Sembawang area for Hao Yuan Group.

MCC Land has gained a competitive edge in the region thanks to their extensive experience. “Our solid development track record in northern regions has helped us to understand its demography, urban geography, and home buyer expectations. The spokesperson for the company says this has given them a competitive edge, especially when marketing projects.