For sale: 8 infill sites for housing use

For sale: 8 infill sites for housing use

 

THE Singapore Land Authority (SLA) said yesterday that it would sell eight infill sites for residential use. The sites will be offered at a public auction on Aug 21 at M Hotel in Anson Road. They will be sold with fresh 99-year leases.

 

The auction comes after one in November 2007 at which six infill sites were sold for more than $30 million.

 

‘We were very encouraged by the strong response at the last auction,’ said Simon Ong, assistant chief executive of SLA’s land operations group. ‘It attracted niche or boutique developers with expertise in building unique houses and dream homes.’

 

The latest sites include some in prime areas such as Holland Road, Carmichael Road and Upper East Coast Road.

 

As at the previous auction, a Good Class Bungalow site is being offered. Proposed developments for other sites include a two-storey bungalow and a pair of three-storey semi-detached houses.

 

‘The appeal of such sites is that they can be customised to suit the buyer’s needs,’ said Mr Ong. ‘This is aligned with SLA’s mission to optimise the use of vacant state land.’

 

The developer’s packet for the sites can be bought from the SLA at $52.50 or found online at http://www.sla.gov.sg. Interested parties can register for the auction outside the Shenton Room of M Hotel, from 2pm on Aug 21. The auction starts at 3pm.

 

Source: Business Times

SLA to auction off eight vacant plots for homes

SLA to auction off eight vacant plots for homes

 

THE Government has put a further eight small plots of vacant land on sale, some in prime districts like Ridout Road, near Peirce Road.

These infill sites have been popular with buyers who want to build their homes from scratch – but the catch is that the sites are on 99-year leases, and some of them are oddly shaped.

 

They are either in landed estates that have been left untouched by nearby developments, or are plots once used for public purposes, housing possibly parks, sub-stations or even septic tanks.

 

The plot in Ridout Road would be ideal for a good-class bungalow. These large bungalows have a minimum land area of 15,070 sq ft.

 

Another site is in Upper East Coast Road, near Woo Mon Chew Road in the Siglap area.

 

The Singapore Land Authority (SLA) will auction the eight sites at M Hotel on Aug 21.

 

Mr Simon Ong, the SLA’s assistant chief executive of the land operations group, said: ‘The appeal of such sites is that they can be customised to suit the buyers’ needs.’

 

Mr Teo Jing Kok, the SLA’s deputy director of land sales, said that normally, a family that wants to design and build a home would have to buy a piece of land along with the existing building, which they have to demolish before they can redevelop the site.

 

‘Often, after paying so much for the building, most landowners are tempted to keep the existing building or parts of it and retrofit their dream design into the existing form.’

 

But with a vacant infill site, they would be able to freely customise the design of the entire home, said Mr Teo.

 

He added that some bidders of previous infill sites were experienced investors who said the sites made good investment properties as the land cost was lower.

 

‘Since the upfront investment is lower, the yield of the investment is higher for such 99-year properties,’ said Mr Teo.

 

An auction for six infill sites late last year attracted fairly brisk bidding and ended with sale prices ranging from $1.3 million to $12.1 million.

 

Source: Straits Times

SLA to auction 8 infill sites for residential developments

SLA to auction 8 infill sites for residential developments

 

SINGAPORE: The Singapore Land Authority (SLA) has launched another eight infill sites for residential use.

 

They will be offered through a public auction on August 21. The sites will be sold with fresh 99-year leases.

 

This will be the second time the SLA is offering such sites for public auction. In November last year, six infill sites were sold for over 30 million Singapore dollars.

 

As in the previous auction, a site within the Good Class Bungalow area is also being offered. It has a land area of about 1,400 sq m in Ridout Road, District 10.

 

Possible developments for the other sites include detached, semi-detached and terrace houses.

 

Some of the other sites are located within prime residential areas such as Holland Road and Carmichael Road. There is also a site at Upper East Coast Road, within walking distance of the popular Siglap and East Coast food haunts.

 

‘Infill’ sites are pockets of State land located in the midst of an established landed housing estate that have either been left untouched by nearby development, or are formerly used for public purposes that have since been phased out.

 

SLA‘s assistant chief executive for land operations group, Mr Simon Ong, said: “We were very encouraged by the strong response at the last auction. It attracted niche or boutique developers with expertise in building unique houses and ‘dream homes’.

 

“This time, we have identified and released more sites and offering them through public auction for wider participation. The appeal of such sites is that they can be customised to suit the buyer’s needs. This is also aligned with SLA’s mission to optimise the use of vacant State land.”

 

– CNA/ir

 

Source: Channel NewsAsia

SLA offers 8 infill sites for residential homes

SLA offers 8 infill sites for residential homes 

THE Singapore Land Authority (SLA) on Thursday launched another eight infill sites for residential use.

They include a 1,400 sq m site in Ridout Road, District 10, within the Good Class Bungalow area.

 

Some of the other sites are located within prime residential areas such as Holland Road and Carmichael Road. There is also a site at Upper East Coast Road, within walking distance of the popular Siglap and East Coast food haunts.

 

The sites, to be offered through a public auction on Aug 21 at M Hotel, can be developed for detached, semi-detached and terrace houses. They will be sold with fresh 99-year leases.

 

This will be the second time that SLA is offering such sites for public auction.

 

Last November, six infill sites were sold for over $30 million.

 

‘Infill’ sites are pockets of state land located in the midst of an established landed housing estate that have either been left untouched by nearby development, or are formerly used for public purposes that have since been phased out.

 

Assistant Chief Executive, Land Operations Group, Mr Simon Ong said: ‘We were very encouraged by the strong response at the last auction. It attracted niche or boutique developers with expertise in building unique houses and ‘dream homes’.

 

‘This time, we have identified and released more sites and offering them through public auction for wider participation. The appeal of such sites is that they can be customised to suit the buyer’s needs. This is also aligned with SLA’s mission to optimise the use of vacant State land.’

 

Source: Straits Times

Stalemate over prices leads to lowest auction sales in 10 years

Stalemate over prices leads to lowest auction sales in 10 years 

By Joyce Teo, Property Correspondent 

 

THE property auction market has hit a brick wall with buyers and sellers in a stand-off over prices that could jam up the works for the rest of the year.

Sales are likely to hit their lowest point in a decade, with only 31 properties worth $27.28 million bought between January and last month, said Colliers International.

 

Residential sales are particularly flat with just six private homes worth $8.38 million sold over the five months.

 

Compare that with the same period last year when 108 properties worth $204.64 million found buyers, it added.

 

Business is so slow that at least three auctioneers are now holding monthly sales instead of fortnightly sales.

 

Ms Grace Ng, Collier’s deputy managing director and auctioneer, said: ‘The sales so far (residential and commercial) are likely the lowest in 10 years, but it is not a reflection of poor market conditions.

 

‘It’s mainly due to the lack of mortgagee sales and the stalemate between buyers and sellers.’

 

Mortgagee sales occur when a cash-strapped home owner cannot service the debt and the bank force-sells the property.

 

The same stand-off is evident in the general private homes market, where buyers want lower prices but sellers are refusing to budge.

 

Ms Mary Sai, Knight Frank’s executive director (auctions), said: ‘Right now, there are offers on the table, but owners are not biting because the offers are about 10 per cent to 15 per cent below previous transacted levels.’.

 

The last time auction rates were so low was in the first half of 1998, when 52 properties worth $56.44 million were sold, said Colliers.

 

Auction clearances went on to hit a record high in 1999, thanks largely to mortgagee sales. Many owners were hit by the financial crisis and forced to sell their homes, while buyers were picking up bargains after property values plunged from the 1996 peak.

 

Ms Sai said the bargain hunters are back, but mortgagee sales have yet to surface in a major way – and consultants do not expect them to.

 

Ms Ng said: ‘In 1998-1999, a lot of people could not service their loans or rent their properties out. Affordability wasn’t there.’

 

‘Now, our employment rate is still high, so people are still servicing their loans. Interest rates are also attractive even if they are rising.’

 

A senior director at DTZ Debenham Tie Leung, Mr Shaun Poh, added: ‘The market attracted a fair bit of speculators last year. Some of them may have trouble offloading their properties, so we may see a small increase in mortgagee sales towards the end of the year.’

 

But unless buyers or sellers give ground, the market – both for auctions and general sales – is likely to stay at a stalemate.

 

The one area where auctioneers have been more active is the commercial arena, with shop units, shophouses and industrial property successfully going under the hammer.

 

Of the 31 properties sold in the first five months of the year, six were residential properties, 16 were shop units or shophouses worth $13.92 million, and seven were industrial properties worth $2.81 million, said Colliers.

 

Of the remaining two properties, one is an office unit and the other is a piece of land.

 

‘This year, we are seeing more interest in strata-titled commercial and industrial units,’ Mr Poh said.

 

‘They are buying for their own use because office rents have risen so much.’

 

 

POOR MORTGAGEE SALES TO BLAME

‘The sales so far are…not a reflection of poor market conditions. It’s mainly due to the lack of mortgagee sales and the stalemate between buyers and sellers.’

 

MS GRACE NG, COLLIER’S DEPUTY MANAGING DIRECTOR AND AUCTIONEER

 

Source: Straits Times

Stansfield wins tenancy auction of its premises

Stansfield wins tenancy auction of its premises

 

By KALPANA RASHIWALA

 

STANSFIELD Group yesterday won a Singapore Land Authority (SLA) tenancy auction, allowing it to continue leasing its existing eight-storey premises at 11 Penang Lane from SLA for a further period of up to nine years.

 

Stansfield’s winning bid was for $270,000 monthly rental for a three-year lease term, with options to renew for another two terms of three years each.

 

However, lease renewals for the second and third terms will be at market rentals at the time.

 

The $270,000 monthly works out to $7.96 per square foot (psf) based on the building’s gross floor area of 33,905 square feet.

 

Stansfield leased the building from SLA in May 2003 after the group won a public tender for a 3+2 year tenancy.

 

Before that, the building had been used by National Council of Social Service.

 

Knight Frank conducted the auction for the tenancy on behalf of SLA.

 

The $270,000 monthly rental that Stansfield will pay SLA for the next three years is over six times the $40,000-plus it was paying SLA under the lease that has just expired.

 

The group was prepared to bid high to ‘spare our students the inconvenience and disruption that would have resulted had we moved to new premises’, Stansfield CEO Ramel Ang said when contacted by BT yesterday.

 

‘We are committed to the students and want to ensure continuity for them,’ he added.

 

Stansfield is suing the Consumers Association of Singapore over an alleged breach of an agreement governing insurance payments that hampered its ability to bring in foreign students.

 

Since Stansfield’s existing 3+2 year lease for 11 Penang Lane expired on May 19 this year, the group has been occupying the building under a Temporary Occupation Licence issued by SLA.

 

Bidding for the building’s tenancy at yesterday’s auction began at a monthly rental of $76,000.

 

A total of 10 parties took part in the bidding, including other private schools and investors, some of whom were keen to convert the building into a hotel, BT understands.

 

Separately, Knight Frank also sold two properties at its auction yesterday at Amara Singapore.

 

One was a four-storey building at 466 Serangoon Road, which was sold on behalf of its liquidator, for $3.2 million.

 

The 999-year leasehold property, which is currently tenanted, has a shop on the ground level and apartments on the upper floors. The total net lettable area is 7,061 sq ft.

 

The other property sold was a 1,399-sq-ft ground-floor shop unit at the freehold Tembeling Centre in the East Coast area, that fetched $1.31 million.

 

Source: Business Times

Missing owners’ condo unit sold for $1.6m

Missing owners’ condo unit sold for $1.6m

 

By Joyce Teo

 

AN UNUSUAL auction of an apartment at King’s Mansion off Tanjong Katong Road has attracted strong bidding – driving up the sale price to $1.59 million, well above expectations.

 

The condominium’ s management corporation had taken the rare step of selling the three-bedroom property after the owners had disappeared for more than a decade.

 

The auction, conducted on Wednesday, came after the foreign owners had failed to pay property fees, which could have run up to $30,000 or more.

 

The management corporation had tried repeatedly to get in touch with the four owners and their lawyers – but to no avail.

 

The sale price was considered fairly strong in a generally weak auction market, analysts said.

 

The starting bid for the freehold 1,604 sq ft high-floor unit was $1.18 million, which was within the guide price of $1.1 million to $1.2 million.

 

Five bidders chased the price up, with a local businessman succeeding in buying the unit at $1.59 million, said Knight Frank’s auctioneer, Ms Mary Sai.

 

This price works out to about $991 per sq ft (psf), considerably higher than the starting bid of $735 psf.

 

A somewhat larger unit at King’s Mansion, at 1,808 sq ft, sold for $1,106 psf a few months back, according to a caveat lodged in February.

 

After deducting fees and other expenses, such as costs associated with arranging this week’s auction, the management corporation is expected to keep the rest of the money in a trust for the owners.

 

Mystery surrounds why the owners departed the scene and why they have failed to make themselves known despite publicity prior to the auction.

 

If they ever do reappear to claim the balance of the sale proceeds, it is likely they will make a tidy profit.

 

Source: Straits Times

Two residential sites off Mandai Rd up for auction

Two residential sites off Mandai Rd up for auction

 

PROPERTY firm Colliers International yesterday announced the auction of two residential sites off Mandai Road. Both plots have 999-year leases from Oct 16, 1884. The sites are being sold on a non-vacant basis. This means the buyers will be responsible for vacating the tenants.

 

The two sites are at 20-28 and 43-56 Meng Suan Road. Each is expected to go for about $250 per sq ft (psf), said Colliers auctioneer Grace Ng.

 

This means the smaller plot at 20-28 Meng Suan Road, which is 21,066 sq ft, will cost about $5.3 million including a development charge (DC). The site is now occupied by a row of nine single-storey terrace houses.

 

The larger plot at numbers 43-56, which is 31,043 sq ft, will cost about $7.8 million, also including a DC. The land is occupied by a row of 14 single-storey terrace houses.

 

‘The successful buyer can consider developing a row of 10 terrace houses on the smaller plot of land of about 1,938 sq ft each for the inter-terrace units and about 2,583 sq ft each for the corner units,’ said Ms Ng. ‘The larger plot of land can accommodate up to nine similar terrace houses, as well as four other semi-detached houses of about 2,583 sq ft each. Given the limited supply of land, freehold and 999-year leasehold, this is a rare opportunity for developers and investors to acquire two huge plots.’ And with the government about to release a 30-hectare site at Mandai for nature-themed attractions, the area will become more vibrant, she said.

 

The auction will be held on Jan 30 at Amara Hotel.

 

Source: Business Times

Two landed sites to go on sale with tenancies

Two landed sites to go on sale with tenancies

 

Prices should be less than market rate as house owners need to be compensated

 

By Joyce Teo

 

TWO sizeable landed residential plots off Mandai Road will be sold via auction later this month – with prices expected to be below the market rate for comparable plots.

 

The catch: The 23 houses that sit on the land are owned by different owners rather than the two brothers who own the two respective plots.

 

That means the buyers of the plots will have to negotiate with the owner-tenants of each house separately and compensate them individually.

 

After that, the buyer can build three-storey landed homes on the 999-year leasehold sites, both sited on Meng Suan Road.

 

Colliers International, which is conducting the auction on Jan 30, said fairly large landed plots are relatively rare. For instance, the Government will release only two landed sites for sale in the first half of this year, said its deputy managing director for agency and business services and auctioneer, Ms Grace Ng.

 

The first Meng Suan Road plot has an area of 21,066 sq ft and is occupied by a row of nine single-storey terrace houses. The second is 31,043 sq ft and with a row of 14 single-storey terrace houses.

 

The father of the two brothers who own the sites sold the houses to individual owners 40 to 50 years ago for less than $5,000 each.

 

This may sound unusual, but sales with tenancies were quite common in the past, said Ms Ng. The owners of the Meng Suan Road houses have enjoyed a great deal as they pay the land owners ‘ground rent’ of just $20 a month.

 

Negotiating with these owners may take time, but the buyer will be able to take heart that he is likely to get a good price. ‘We have applied some discount because they are encumbered with existing tenancies,’ said Ms Ng.

 

The indicative price of the sites is between $250 and $260 per sq ft, inclusive of the development charge. This puts the smaller plot at about $5.3 million and the bigger one at around $7.8 million.

 

Negotiating with the house owners will be somewhat simplified by the fact that owners of six of the 23 houses are related to one another, said Ms Ng.

 

Dealing with multiple owners may not be easy, but it is something that boutique development firm Link (THM) Holdings has proven it can handle.

 

The firm, which began as a fashion business, said yesterday that it had acquired a freehold site in Ban Guan Park, off Holland Road, comprising nine apartments and nine shops, after negotiating with the individual owners since late 2005. It paid $31.1 million for the site of 32,900 sq ft and plans to build 20 semi-detached houses.

 

The firm said there were several failed collective sale attempts in the past decade.

 

Its director, Mr Kenny Tan, said the firm then decided to talk to individual owners to address their concerns and to get them to sell individually.

 

Source: Straits Times

Back lane in Balestier up for sale

Back lane in Balestier up for sale

 

Other properties up for auction include Changi bungalow, studio apartment

 

By KALPANA RASHIWALA

 

THE Official Receiver is auctioning off a back lane at Jalan Bunga Raya in the Balestier Road/Irrawaddy Road area.

 

The freehold strip of land, with a land area of 3,331 sq ft, is behind a row of seven terrace houses which are part of a set of 15 terrace homes at Jalan Bunga Raya which have been bought by a consortium involving a Chinese developer and some local partners.

 

Knight Frank is auctioning the back lane on Jan 10 on behalf of the Official Receiver. The plot is understood to have been owned by a now-defunct company, Bag Transpack Investment Co Pte Ltd.

 

Market watchers reckon the consortium that bought the 15 homes at Jalan Bunga Raya will be the most natural contender for the back lane, although BT understands that a party who owns a pair of semi-detached houses on the other side of the backlane is also a potential buyer.

 

Knight Frank has indicated a price of about $750,000 to $800,000 for the back lane, which works out to $80 to $86 per square foot of potential gross floor area.

 

The 15 neighbouring terrace houses were sold recently for $61 million or an all-in unit land price of $739 psf per plot ratio.

 

Knight Frank’s auction, which will be held at Amara Hotel, will also see several other properties going under the hammer.

 

These include two bungalows – one a Good Class Bungalow at 10 Swiss Club Lane with an indicative price of $18 million or $1,025 psf based on its 17,557 sq ft land area, while the other, at 18 Toh Close in the Changi area, has a $2.8 million to $3 million indicative price range, which works out to $420-450 psf.

 

The Toh Close bungalow has a 6,669 sq ft land area. Both bungalows are freehold and are being sold by their respective Singaporean owners.

 

Other properties in the auction include a 23rd level studio apartment at The Metz at Devonshire Road, a semi-detached house at Jalan Ishak in the Eunos area, a three-storey shophouse at Craig Road in the Tanjong Pagar area and a two-bedroom apartment on the 26th level of High Street Centre.

 

Source: Business Times