SINGAPORE – Keen bids for 2 state tenders that closed on Tuesday (March 8) indicated that builders are replenishing their land financial institution amid the newest spherical of property curbs in December 2021, and with the stock of unsold non-public residential items at a document low.
Records had been smashed when a leasehold government condominium (EC) web site at Bukit Batok West Avenue 8 drew 9 bids, with the highest bid of $266 million, or $661.67 psf ppr, coming from a three way partnership between Qingjian Realty and Santarli Construction.
With this bid, the identical three way partnership beat their earlier document bid of $659 psf ppr for the Tampines Street 62 EC web site in July 2021.
Ms Tricia Song, head of analysis for South-east Asia at CBRE, famous that Qingjian can also be the developer of Le Quest, a close-by combined use improvement, and “may have confidence in the location”.
She added that ECs are usually not as affected by property cooling measures and wealth property taxes, as they’re for owner-occupiers and first-time patrons.
Property tax charges for non-owner-occupied residential properties – which embody funding properties – might be elevated to between 12 per cent and 36 per cent. This compares with the present 10 per cent to twenty per cent tax levied on such properties.
Owner-occupied houses with an annual worth of $30,000 or much less, akin to Housing Board flats or condominiums and landed property in suburban areas, won’t be affected by the rise in property tax charges.
READ RELATED: Serhat Ahmet Wiki, Age, Biography, Ethnicity, Parents, Wife, Net Worth, Height & More
JLL senior director of analysis and consultancy Ong Teck Hui attributed the strong tender participation to restricted new EC provide, with solely three tasks within the launch pipeline.
“The EC market thrives on a positive private residential market. So far this year, 80 new ECs were sold at prices averaging $1,224 psf,” he mentioned.
The Bukit Batok parcel is predicted to yield 375 residential items. It has a web site space of 12,449.3 sq. metres (sq m) and a most gross ground space of 37,348 sq m.
In the second tender, a 99-year leasehold non-public housing web site in Dairy Farm Walk within the Upper Bukit Timah space drew seven bids, with the best at $347 million, or $980 per sq ft per plot ratio (psf ppr), coming from a partnership between Sim Lian Land and Sim Lian Development.
“The site was hotly contested with the top three bids within 3 per cent of each other. Developers remain confident in the suburban residential market which is likely to see sustained demand from first-time buyers and home upgraders,” mentioned Mr Lam Chern Woon, head of researching and consulting at Edmund Tie.
JLL’s Mr Ong famous that the positioning’s palatable dimension and worth “pose lower risks compared to larger land parcels”.
Spanning 15,663.2 sq m, the parcel has a most gross ground space of 32,893 sq m and an anticipated yield of about 385 items.
