July 2012: Mixed Use Projects Are Hot and Developers Move Homes

Strong interest in mixed-use projects	Straits Times: Sat, Jul 14
MIXED-USE projects where flats run up against shops and other commercial outlets are the property industry's latest big thing - but they can also turn out to be a mixed blessing for buyers. Noise, crowds, lack of privacy and faster wear and tear are among issues that can affect the lifestyle in such developments and hit the resale potential. But whatever the pitfalls, the mixed-use tag on a site is proving irresistible for developers, as some recent en bloc sales testify. Novena Ville went for $131.52 million in May to a subsidiary of the Fragrance Group. The sale generated profit of about 30 to 40 per cent above current market prices for both apartment and shop owners. In March, the freehold mixed-use Seletar Garden was sold en bloc for $96.2 million, well above expectations, to a consortium led by Oxley Holdings. Both sites can be redeveloped into new mixed-use projects. On Wednesday, the Urban Redevelopment Authority (URA) announced that a mixed-use site has been triggered for sale by a developer who offered to bid at least $154.5 million. There is a similar level of interest from home buyers, property insiders said. Interest in such projects was revived as developers try to be more creative amid a substantial housing supply, noted R'ST Research director Ong Kah Seng. Punggol's Watertown was about 95 per cent sold as of May while Bedok Residences was over 88 per cent taken. The condos averaged $1,454 psf in May and $1,297 psf in April respectively. Mr Alan Cheong, Savills Singapore's research head, noted that mixed-use projects make it easier for people to shop for necessities and can be a more attractive option than a secluded condo. But property agents said buyers have raised concerns, including congestion, noise and security. 'Security, privacy, noise control and separate private entrances for residents are taken into consideration when we design such developments,' said Mr Chia Boon Kuah, chief operating officer for property sales at Far East Organization. The developer is behind mixed-use projects Watertown and Hillier. Mr Chia added that the concept has 'caught the imagination and interest of home buyers, investors and retailers in Singapore who are increasingly well-travelled and have seen and experienced different lifestyles'. However, buyers should not assume that there will be buoyant resale interest. 'It really depends on the state of the mall then, and there will be buyers who value exclusivity and quieter living options,' said R'ST's Mr Ong. Generally, projects with single-owner malls who can control the tenant mix may fare better than strata-titled ones. Some upcoming mixed-use projects, such as The Hillier and Bedok Residences, are classified as 'apartments', which means they may not come with full condo facilities, Mr Ong noted. Mr Cheong added that well-maintained, well-located projects, or those with a bigger residential component, may do better because of stronger branding and identity. For instance, the 40-year-old People's Park Complex has been quite successful recently given its good location. A 1,173 sq ft unit was sold for over $1 million last month while a similar-sized unit went for just $322,575 in 2007. The project is a 99-year leasehold development. 'It has excellent rental yield from high-intensity tenancy... but it is peculiar and will most likely not work in a new suburban mixed development,' Mr Cheong said. The 16-year-old Crescendo Building, in Siglap, a freehold development, is also fairly sought after because it is well-maintained. A 1,302 sq ft unit was sold for over $1 million in March while a similar-sized one sold for $750,000 back in 2007. Residents in mixed-use projects said they like the concept for its convenience and vibrancy. A home owner at King's Arcade in Bukit Timah said: 'It's actually not very noisy and I have no real security concerns. I've been living here for about five years. It's a good location... near my kids' schools.' [e-mail] Additional reporting by Alvin Lim Source: The Straits Times
Koh Bros, CDL sell homes at brisk pace	Business Times: Sat, Jul 14
KOH Brothers is said to have sold about 80-plus of the 118 units it released at Parc Olympia at Flora Drive on Thursday evening at an average price of $820 per square feet after an early-bird discount of 16 per cent. Most of the units are said to have been picked up on Thursday. Market watchers reckon the developer could release more units in the 486-unit, 99-year leasehold condo project in the Upper Changi location over the weekend. Word in the market yesterday evening was that City Developments Ltd (CDL) and Hong Realty had moved 25 of 40 terrace houses released at the preview of Haus@Serangoon Garden yesterday. Prices range from $2.4 million to $2.7 million apiece for intermediate terrace houses, which will have land areas ranging from 1,615 sq ft to 1,914 sq ft and floor areas of 3,595-3,918 sq ft. Corner units cost more as they sit on bigger plots of 2,175-3,144 sq ft; their floor areas are 3,294-4,736 sq ft. In all, Haus@Serangoon Garden will have 18 corner units and 79 intermediate terrace homes. All 97 units have two storeys, a basement and an attic. The project has clinched the Building and Construction Authority's top-tier Green Mark Platinum award. The layout and orientation of the houses are designed to minimise heat gain and maximise natural ventilation from the sun-path and wind directions. Each house also comes with a roof sky-light and open riser staircase that brings in more natural light into the centre of the house. Solar panels on the roof will help trim electricity bills for residents. Waste heat from the operation of the air-conditioners will be used to provide hot water in bathrooms. And to boost buildability, resource efficiency and site productivity, pre-cast and pre-fabricated components will also be used widely during the project's construction. Over at the Interlace condo project on Depot Road, CapitaLand is unveiling today two new showflat units - ground-floor or "garden home" units - incorporated in the actual development. The 99-year leasehold project's average pricing is expected to remain in the $1,100-plus psf band. Still available are three and four-bedroom apartments and penthouses; all the two-bedders were snapped up much earlier. According to developers' sales stats captured by Urban Redevelopment Authority, 728 of the project's 1,040 units were sold as at end-May this year. Next week, Wee Hur Holdings' Parc Centros condo near Punggol MRT Station goes on the market at an average price of $950 psf. The 618-unit project will have one- to five-bedroom apartments as well as penthouses. Those keen on city living can look forward to United Industrial Corporation's upcoming V on Shenton (or Five on Shenton), which is tipped to be priced at $2,300-2,500 psf on average. The project's 510 units will be housed in a 54-storey residential tower. Units range from studios to three-bedders; there will also be six penthouses. As for Parc Olympia, next to the Japanese School at Flora Drive, unit types will comprise a mix of one-bedders (495 sq ft to 646 sq ft), two-bedders (646-1,292 sq ft), three-bedders (969-2,164 sq ft) and four-bedders (1,324-2,702 sq ft). Absolute prices start from about $440,000 for a low-floor one-bedder. A seasoned property consultant notes that in the face of substantial supply from new residential project launches going ahead, developers have to be "sensible with pricing". One strategy would to be push out less choice units in a project at a lower price to draw potential buyers to the showflat. "If the public bites at your product and the sales momentum builds up, you can increase prices slightly for the later phases with better units." Timing a project's launch is also important to avoid clashing with competing launches in similar locations or price range. "Developers have to think through what profile of buyers they are looking at before they begin pre-marketing," said the consultant. Agreeing, an industry observer notes that developers would only release projects for sale after they have secured sufficient interest in their pre-marketing campaign. "If they don't get enough cheques, they won't launch." Developers sold a record 6,526 private homes, excluding executive condos (a public-private housing hybrid), in the first quarter of this year - with four out of five homes sold being in the Outside Central Region, where mass-market condos are located. Developer sales are said to have eased in Q2. The April and May numbers were 2,496 units and 1,702 units. June data will be announced on Monday. Source: Business Times