Newsletter May 2024
By Kelvin Sin | Livefree.sg | 29 May 2024
1. Government Land Sales
2. HDB
1.1 Tender Launched for Zion Road (Parcel B)
URA unveiled the launch of the Zion Road (Parcel B) site for tender under the Reserve List of the 1H2024 Government Land Sales (GLS) program. Spanning approximately 99,953 sq ft, this site is designated for residential purposes and has the potential to accommodate around 610 units on its 99-year leasehold tenure. This move marks the first activation of a site from the Reserve List since 2018, spurred by an application from an undisclosed developer who pledged a bid not below the minimum price of $604.57 million. With a calculated land rate of about $1,080 per square foot per plot ratio (psf ppr), developers are now gearing up to vie for this prime real estate opportunity. The preceding award of five GLS residential sites this year, notably the adjacent Zion Road (Parcel A) site, adds perspective to bidding expectations. City Developments Ltd (CDL) and Mitsui Fudosan secured Parcel A with a bid of $1.1 billion, signaling a land rate of $1,202 psf ppr. This serves as a benchmark for developers eying Parcel B. Strategically located just minutes away from the Central Business District (CBD), the Zion Road (Parcel B) site boasts proximity to various amenities including Great World City mall and upcoming retail spaces. Moreover, its accessibility to Havelock and Great World MRT stations enhances its appeal. However, Wong Siew Ying, head of research at PropNex, urges cautious optimism due to the anticipated influx of new housing supply in the area, particularly from adjacent developments. Despite the attractiveness of the plot, 1 or 1 bids with a top bid range of $644 million to $700 million, corresponding to a projected land rate between $1,150 and $1,250 psf ppr is expected. Developers have until noon on July 18 to submit their bids, with the tender closing alongside two other residential sites under the Confirmed List of the 1H2024 GLS Program.
1.2 Tender Closed for Holland Drive GLS
CapitaLand and UOL Group put in the highest bid of $805.39 million for Holland Drive government land sale (GLS) site when the tender closed on May 14. The second-place bid of $765.26 million came from Hong Leong Holdings and Hong Realty, which was 5.24% lower than the winning bid. Situated in prime District 10, the 99-year leasehold residential site offers a maximum gross floor area of about 626,650 sq ft. This means the winning bid translates to $1,285 per square foot per plot ratio (psf ppr). The CapitaLand-UOL consortium plans to build two 40-storey condo towers with 680 units on the site. Estimates suggest that future residential units on the site could start with a launch price of $2,700 to $2,800 psf.
1.3 Bukit Timah Turf City to be Transformed into New Housing Estate
Desmond Lee, the Minister for National Development, recently announced plans to turn Bukit Timah Turf City into a sprawling housing estate spanning 176 hectares, featuring approximately 15,000 to 20,000 new homes. This exciting development was unveiled during an exhibition launch at the URA Centre on May 23, where conceptual plans for the new housing area were presented. It's a significant move as it marks the first time in nearly four decades that public housing is being planned for Bukit Timah. Preliminary plans for the Turf City estate envision a car-lite and pedestrian-friendly environment, with an emphasis on walking and cycling connections. The proposed estate will comprise four distinct neighborhoods: Racecourse Neighbourhood, Stables Commune, Saddle Club Knolls, and Tinggi Hills. Each neighborhood will integrate public spaces with repurposed heritage buildings and structures, preserving the area's unique character. Notably, plans include the retention and repurposing of 27 buildings and structures, including the iconic North Grandstand, which served as a key landmark during the region's racecourse era from 1933 to 1999. Development of the estate will be phased, starting from existing transport nodes along Dunearn Road, with a projected completion timeline of 20 to 30 years. The area is bordered by three Good Class Bungalow (GCB) areas, suggesting that high-rise developments may be concentrated closer to the new Tinggi Hills estate in the northern portion. HDB flats in the Turf City estate may fall under the Prime classification in the current Plus housing model, with four-room flats estimated to start from $600,000. Similarly, private home prices could begin at $2,500 per square foot in the new estate. The plans for the estate were shaped through extensive consultation with residents, heritage, and nature groups over several years, with feedback from public engagement sessions factored into the upcoming draft masterplan scheduled for October 2023.
2.1 Million-Dollar HDB Flats & HDB Market Trends
In the first four months of 2024 alone, 248 HDB flats have sold for at least a million dollars. This trend suggests that million-dollar HDB flats are quickly becoming the new norm in Singapore's real estate market. Natura Loft Sale in Bishan A five-room flat at Natura Loft in Bishan set a new record when it sold for $1.538 million on May 5. This 1,292 sq ft unit, located on the 30th floor of Block 275A Bishan Street 24, found a buyer in just one month. The transaction included a cash over valuation (COV) of about $100,000. Natura Loft, completed in 2012, is a 99-year leasehold development known for its prime location, excellent schools, and close proximity to the MRT. 9B Boon Tiong Road Sale in Tiong Bahru Over in Tiong Bahru, a five-room flat at 9B Boon Tiong Road set another record by selling for $1.588 million. Located above the 35th floor in the Tiong Bahru View estate, this flat is part of a development under the Selective Enbloc Redevelopment Scheme. Since July 2018, 43 flats in Tiong Bahru View have sold for over a million dollars, thanks to their high floors, great views, and convenient access to MRT stations. 205B Compassvale HDB Sale in Sengkang Sengkang has also joined the million-dollar club. A 1,539 sq ft executive flat at 205B Compassvale Place sold for $1 million, making it the first resale flat in the area to hit this milestone. Compassvale Place, which includes seven residential blocks, saw this flat's price driven up by its spacious layout, proximity to Buangkok MRT station, Sengkang Grand Mall, and nearby educational institutions. Market Trends Sengkang's market has been inching towards the million-dollar mark, with many flats selling for over $900,000. By the first quarter of 2024, the highest resale price in Sengkang was $968,000, setting the stage for the area's first million-dollar flat sale in April. This trend reflects the increasing desirability of Sengkang among homebuyers. The Bigger Picture Despite the growing number of million-dollar deals, they still make up a small fraction of the overall HDB resale market. In the first quarter of 2024, these high-value transactions accounted for just 2.7% of the 7,068 flats sold. Interestingly, while the number of million-dollar sales has increased, the average price per square foot for these transactions has actually decreased from $1,409 psf in the last quarter of 2023 to $1,320 psf in the first quarter of 2024. This indicates that more million-dollar flats are being sold, but at slightly lower prices per unit. As the market continues to evolve, it's clear that million-dollar HDB flats are becoming more common. With high demand for properties in prime locations and the added appeal of spacious layouts and convenient access to amenities, this trend is likely to continue.
2.2.1 New HDB Resale Flat Portal for Owners
HDB's recent announcement about the soft launch of a new resale flat listing service starting May 13, this marks a significant development in the real estate market. This new portal, set for an official launch later this month, aims to streamline the process for homeowners and enhance the home buying experience. This new portal is set to prevent price manipulation and manage price hikes by allowing only one listing per flat. Unlike other online platforms that may show multiple listings for the same unit with varying prices, this system aims to give a true picture of the market. WHAT CAN BE IMPROVED? (1) Interface While the Listing Portal is user-friendly & streamlined, you only have 200 characters to sell your house. The 200-character count is even shorter than a 280-character tweet. Furthermore, uploading pictures is difficult and it takes a long time to load. Not every seller is good at taking nice photos and even editing them. (2) Limited Listings The HDB portal is more like a walkie-talkie, rather than a mobile phone. A listing portal with only DIY Sellers does not give sellers maximum exposure because buyers are less likely to visit the site. Imagine visiting a site that has 100 listings vs 10,000 listings. (3) Priority for Placement Listing Portals generate revenue when users pay for increased visibility. If you need to quickly sell your property, property agents pay extra to push listings to the top in order to get high exposure. HDB portal is not capable of managing the priority of listings. (4) Low Prices due to lower perceived costs DIY Sellers are often lowballed by seasoned buyers. Since you are already “saving” on agent commission, it is easy to assume that you are prepared to accept a lower price of the same proportion. (5) Missing out on Buyers Only buyers with a valid HDB flat eligibility (HFE) letter can access seller or agent contact details and schedule viewings through the portal. Sellers might miss out on potential buyers who do not yet have an HFE letter and are in the midst of searching for a home. So will HDB Resale Listing Portal retire agents from their job? No.
2.2.2 More than just "Listing" your property for sale
Selling a property involves more than just putting it up for sale. DIY Sellers aim to save on commissions, but they often overlook the many benefits an agent can provide in a transaction.
Managing Inquiries
Selling property isn't as simple as it may seem at first. Even though you might get bombarded with inquiries—sometimes as many as 20 a week from just one listing—only a few, usually 3-5, are actually serious buyers. The rest might just be nosy neighbors or people hoping for a bargain. If you're handling it yourself, you'll spend a lot of time arranging property viewings.
Presentation
Effectively showcasing a property to potential buyers demands adept storytelling, comprehensive market understanding, and product knowledge. DIY sellers may struggle to accentuate the property’s most enticing features while inadvertently overselling less desirable aspects.
Objection Handling
Navigating buyer objections—such as concerns about size or price—requires finesse and market acumen. Non-professionals may falter in addressing these objections, potentially jeopardizing deals and wasting valuable time. Expert objection handling can expedite sales processes, differentiating between swift transactions and prolonged negotiations.
Negotiation
Emotional ties to a property often cloud homeowners' judgment during negotiations, complicating efforts to reach fair agreements. Balancing personal attachment with buyer expectations poses a significant challenge, frequently leading to impasses.
Conflict Resolution
Property transactions entail numerous stages, each ripe with potential conflicts—from expired offers to unapproved loans or incomplete paperwork. Effective conflict resolution skills are vital to navigate these hurdles and ensure smooth transactions.
Financial Guidance
Given the significant financial stakes involved, buyers seek reassurance regarding affordability. DIY sellers often lack the expertise to provide comprehensive financial advice, potentially hindering decision-making processes.
Timeline Management
Buyers frequently juggle selling their current property alongside purchasing a new one, necessitating precise timeline management. Failure to meet deadlines can result in penalties and lost opportunities, highlighting the importance of meticulous timeline management in securing deals.
If you are looking for a reliable agent to give you advice on selling your property, you can contact:
Kelvin 9722-2222 or Peixuan 9101-5301.