February 2023 BTO application rate “measured”; The Marq apartment sets new record with $100,000 monthly rent, and more
7th March to 13th March 2023
Analysts noted that the overall application rate for the February 2023 Build-To-Order (BTO) sales exercise was “quite measured”, with 16,993 applicants vying for 4,428 flats. Meanwhile, rentals for luxury properties in Singapore continued on an upward trend in recent months, with a four-bedroom apartment at The Marq leasing for $100,000 per month in October 2022.
February BTO application rate “measured” as buyers held back for more attractive locations
The overall application rate for the February Build-To-Order (BTO) sales exercise was “quite measured”, with 16,993 applicants vying for 4,428 flats, reported CNA.
This works out to an overall application rate of 3.8 times.
Analysts attributed the measured response to the less attractive locations of non-mature estate BTO projects. Brickland Weave in Tengah, for instance, is situated at the edge of the town and not within comfortable walking distance to the closest MRT station.
With this, buyers may have held back in anticipation of the more desirable flats in mature estates to be launched in May, they said.
Analysts noted that the recent hike in housing grants for first-time buyers of resale flats may have also diverted some of the demand away from the BTO launch.
“Taken together, this suggests that the ramping up of BTO supply and measures to help first-timer families own their first homes is starting to work through the market, leading to a stabilisation of the application rates,” said PropNex Realty CEO Ismail Gafoor.
The Marq apartment sets a new record with $100,000 monthly rent
Rentals for luxury properties in Singapore continued on an upward trend in recent months, with a four-bedroom apartment at The Marq leasing for $100,000 per month in October 2022, reported The Business Times citing URA data.
This was a 25% increase from the $80,000 lease achieved for a 15,100 sq ft apartment at Eden in Draycott Park in February 2022.
Steve Tay, Senior Associate Vice-President at List Sotheby’s International Realty (List SIR), attributed the hike in rentals to The Marq’s unique features, such as single-level floor plates and individual private pools.
“The Marq will command a premium, and if there is not much supply, I do see rentals … going up even more than $100,000,” he said.
In fact, he expects 2023 to be a record year for rental markets due to the city-state’s reputation as a safe and stable place to live and operate a business.
However, Tay anticipates rents for luxury properties to grow at a slower pace.
Private home rents jump 29.7% in 2022, the highest since 2007
The rents for all private homes in Singapore rose 29.7% year-on-year in 2022, the highest since 2007, revealed Savills Research citing URA Rental Index.
It attributed the rental increase to the “limited number of completions at the start of the year and the entry of more foreigners into the market”.
It noted that the growing number of viewings as well as the ease of letting have prompted landlords to raise their asking rents.
The luxury segment also registered a surge in monthly rents, rising 5.8% quarter-on-quarter to $5.83 PSF in Q4 2022 – its highest increase since Q2 2008 when average rent stood at $6.01 PSF.
For the entire year, monthly rents for luxury non-landed projects increased 35.9% from the previous year, or the largest yearly growth since 2005.
Looking ahead, Savills expects rents for non-landed private homes to increase 5% to 8% for the mid-tier and mass market segment, while those for luxury apartments may climb by 10% to 15%.
Kingsley Mansion on sale for $52 million
Kingsley Mansion, a 10-storey residential development at 27 Boon Teck Road, has been put up for sale with a guide price of $52 million, revealed exclusive marketing agent CBRE.
This translates to a land rate of $1,294 per sq ft per plot ratio (PSF PPR).
CBRE pointed out that no land betterment charge (LBC) is payable for the freehold site since it has a high development baseline.
The land rate lowers to about $1,251 PSF PPR, after taking into account the 7% bonus gross floor area (GFA) for balconies and LBC of about $1.786 million.
The 18-unit development occupies a 14,350 sq ft site that is zoned for “Residential” use under the 2019 Master Plan with a gross plot ratio of 2.8 and a building height limit of up to 36 storeys.
The tender for Kingsley Mansion closes on 12 April 2023.
Related article: Land Betterment Charge: What Is It And Why You Need to Take Note (2023)
Roselane Court is on the market for $23 million
Roselane Court off Tanjong Katong Road in District 15 has been put up for sale, with a guide price of $23 million.
Exclusive marketing agent Knight Frank Singapore said the price works out to a land rate of $1,375 PSF PPR, after considering a nominal land betterment charge.
Completed in 2002, Roselane Court comprises seven residential units and occupies a 1,119.9 sq m or about 12,054 sq ft site.
Zoned “Residential” under the 2019 Master Plan with a gross plot ratio of 1.4, the site could be redeveloped into 18 new housing units averaging 85 sq m, subject to layout and configuration as well as the relevant authorities’ approval.
In the event of a successful sale, the apartment owners, “whose unit sizes range from 58 sq m to 172 sq m, stand to receive minimum sale proceeds of approximately $1.9 million to $4 million”, said Knight Frank.
The tender for Roselane Court closes on 5 April.
Detached house at Branksome Road to go on sale for $10.8 million
A freehold detached house at Branksome Road will be put up for auction on 15 March, with a guide price of $10.8 million, revealed Huttons Asia.
Nestled on a 4,398 sq ft site, the two-storey house has a floor area of about 4,581 sq ft and features an outdoor area with a swimming pool.
The property is expected to receive significant interest from buyers given its prime location and unique features.
Notably, the house is situated within a highly coveted landed residential area in District 15, near East Coast Park.
James Wong, Head of Sales and Auction at Huttons Asia, noted that the location also “boasts easy accessibility via all modes of transport”, with Changi Airport just a 12-minute drive, while Raffles City and Raffles Place (Central Business District) are just 10- and 14-minute drive away, respectively.
‘Spooky’ Tampines BTO as a backdrop for photoshoots?
After going viral for the bold colour scheme at its lift lobbies, which some described as ‘spooky’ and ‘inauspicious’, Tampines’ GreenVines Build-to-Order (BTO) project has now become the backdrop for photoshoots, reported TODAY.
A freelance photographer known as “marcuschow” on Tiktok shared photos he took at the estate’s red and yellow blocks. He noted that the photos, which showed a female model posing in Converse high-top sneakers, were for a collaboration with a brand.
Digital content creators Jayden Tan and Kyla Tan also posted pictures and videos of shoots they did at Block 640B’s red-tiled lift lobby on social media.
The pictures have impressed many online users, with the top comment stating: “Don’t know why people are complaining especially since the normal HDB flats aren’t exactly spectacular. This is something new at least.”
An Instagram user also wrote: “You nailed it! Artistically portrayed the red vibes and coolness.”
Tengah’s 18,555 BTO flats register steady demand
HDB has launched 18,555 Build-To-Order (BTO) flats in Tengah as at the recent sales exercise in February – or over half of the planned public housing units within Singapore’s newest town reported The Straits Times.
BTO application rates showed that interest in Tengah flats has remained steady over the past four years since the town’s first flats were offered in 2018, said Christine Sun, Senior Vice-President of Research and Analytics at OrangeTee and Tie.
Tengah saw overall application rates of between 1.4 and 4.3, which works out to around one to four applicants for every BTO flat offered.
Sun noted that application rates in Tengah mainly depend on the project’s location, with those close to MRT stations being the most popular, and those farther away from amenities and main transport nodes registering less demand.
“The trend indicates that people are becoming more receptive to living in Tengah, although it is the newest town and many amenities are still under construction,” said Sun.
Once completed, Tengah will offer about 42,000 new homes, of which 30,000 are HDB flats and 12,000 are private homes.
Residential properties dominate Q4 2022 investment sales
Residential properties accounted for the highest proportion of investment sales during the fourth quarter of 2022 at 62%, reported Singapore Business Review citing Savills data.
But while it registered the largest investment sales volume, the residential sector’s Q4 performance was still lower compared to the preceding quarter.
Notably, the $1.26 billion residential investment sales volume in Q4 2022 was a 66.1% decline from Q3 2022.
“[It is] a turnaround from two consecutive quarters of increases over Q2 2022 and Q3 2022,” said Savills.
The Q4 2022 figure was also the lowest since Q3 2020 when investment sales amounted to $982.1 million.
Meanwhile, commercial properties made up 27% of total investment sales volume, while industrial properties accounted for 11%.
Upper Circular Road shophouse on sale for $24.2 million
A part three, part six-storey conservation shophouse at 13 Upper Circular Road has been put up for sale via expression of interest (EOI) with a guide price of $24.2 million, revealed exclusive marketing agent CBRE.
This works out to about $3,300 PSF on a total floor area of 7,333 sq ft.
Nestled on a 1,752 sq ft site, the District 1 shophouse has undergone extensive asset enhancement works which translates to “lower future capital expenditure requirement and greater cost savings for the incoming investor”.
Since it is zoned for commercial use, foreigners can acquire the property with no Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD) payable.
The EOI exercise for the shophouse closes on 11 April 2023.
Looking for a property in Singapore? Visit PropertyGuru’s Listings, Project Reviews and Guides.
Farhan Shafie, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this story, email: farhanshafie@propertyguru.com.sg.
Latest News from PropertyGuru – Read More