Offshore: Briefs

HDB launches second Tampines DBSS site
The Housing and Development Board (HDB) is putting up a site at Tampines for sale, to be developed under the design-build-and-sell scheme (DBSS). The site is adjacent to the first such development, Premier@Tampines.

The site at Tampines Avenue 5 and Tampines Central 8 covers 21,131 sq m (227,454 sq ft). It has a maximum permissible GFA of 63,395.1 sq m, which includes 1,060 sq m allocated for common neighbourhood amenities and facilities. 

According to HDB, this site can yield about 580 flats. The tender will close at noon on Aug 3.

Under DBSS, private develop­ers are invited to take over and manage the construction and sale of these flats. Just like other HDB flats, DBSS flats come with a 99-year lease. HDB is also planning to release two more DBSS sites by year-end. They are at Bedok Reservoir Crescent and Hougang, along Upper Serangoon Road, and can yield an estimated 1,010 units.

Ngee Ann Polytechnic real estate lecturer Nicholas Mak describes this site as one of the “more attractive” DBSS sites, as it is only 600m from the Tampines MRT station and town centre. “However, since the government will be launching two more DBSS sites later this year, the tender bids for this Tampines site should rationally not be too bullish,” he says. Mak estimates that the site will attract four to seven bidders putting in S$160 to S$200 psf (RM371 to RM464) per plot ratio, resulting in a breakeven cost of S$400 to S$450 psf.

Conservation building on Robinson Road put out to tender
URA has put out to tender The Ogilvy Centre (picture), a conservation building in the CBD, along with a so-called new extension zone behind the building. Built in 1927, it is the former Telecommunication Authority of Singapore Building. Under the terms of this tender, the conservation building has to be used as a hotel. The site is located along the junction of Boon Tat Street and Robinson Road.

URA describes the building’s design as “neo-classical” and says it is also an “important heritage landmark, representative of Singapore’s business district in the first half of the 20th century”. The site of the building covers a total of 1,863.2 sq m. The building sits on 4,016 sq m and has a maximum permissible gross floor area (GFA) of 7,450 sq m. To make it more flexible for prospective bidders, URA will allow them to choose to bid for either a 60 or 30-year lease term, which, presumably, will help lower upfront investment costs.

Fragrance Group launches integrated development
The Fragrance Group has launched a freehold, integrated five-storey residential-cum-commercial development along Changi Road, near Eunos MRT station. The development consists of Suites @ Changi, a 44-unit residential component, with unit sizes ranging from 409 to 1,152 sq ft. There is a mix of studio, and one- and two-bedroom units. The development also comes with a swimming pool, a barbecue area, a children’s playground and an outdoor fitness area. Prices range from S$1,300 to S$1,380 psf.

Icon @ Changi, the office tower component of this project, consists of 44 offices, with retail shops at Basement 1 and the first storey. Units measure 334 to 527 sq ft. Prices range from S$1,425 to S$1,500 psf.

DTZ is handling the sale of this project and is expected to obtain its temporary occupation permit by end-2013.

China property residential sales down 33% w-o-w
Primary residential volumes for the top 12 China cities fell 33% w-o-w for the week to June 20, as buyers continue to stay on the sidelines and developers remain reluctant to cut prices, extending the impasse, notes Macquarie in a recent research note.

A three-day public holiday, the Dragon Boat Festival, also contributed to weak sales. For the first three weeks of June, average weekly sales dropped a further 16% m-o-m, following a 46% m-o-m drop in May.

However, the brokerage firm sees some developers taking advantage of the weaker market to conduct mergers and acquisitions at relatively “attractive” costs that are 30% to 50% lower than market prices. For example, Shimao Property acquired a completed project at RMB16,400 (RM7,754) psm on Beijing’s 3rd Ring Road. In contrast, nearby completed projects have been transacting at RMB30,000 to RMB40,000 psm. “We consider the market consolidation will favour companies with healthy balance sheets to secure potentially attractive deals,” notes Macquarie. — The Edge Singapore

This article appeared in City & Country, the property pullout of The Edge Malaysia, Issue 813, July 5-11, 2010