Read related post: $5.35 million for industrial property in Kaki Bukit Place

$5.35 million for industrial property in Kaki Bukit Place

A pair of industrial facilities have been successfully subjected to Virtual temporary occupancy permit (TOP) inspections conducted by JTC as well as the Building and Construction Authority (BCA). These virtual inspections carried out by JTC Logistics Hub @ Gul in April 2021 as well as JTC semiconSpace in Tampines Wafer Park in September 2022. The projects then received their TOPs in May 2021 and Oct 2022, respectively.

Instead of the traditional physical inspection of the TOP Instead, the BCA inspector and the project team performed the inspection online with 3D data that was compiled using 360-degree photos and the use of laser scanners.

JTC Corporation says the virtual process could cut down on the amount of time and staff needed for inspections by up around 30% for the project team as well as inspectors. Following the pilot inspections JTC as well as BCA have worked together to create the virtual TOP standards for JTC projects. These guidelines are expected to clear the way for a framework that will be used by the industry for greater adoption.

“BCA is currently working on guidelines technical to define virtual TOP requirements for the industry, based on the experiences of the pilot trials conducted with JTC as well as other stakeholder. We will announce the details once they are finalized,” says Darren Lim the head of inspection and audit at BCA.

Tan Chee Kiat, group director of engineering at JTC Tan Chee Kiat, group director of engineering at JTC, says JTC is always trying to digitize the construction process. “We are thrilled by the fact that this virtual TOP pilot is a success and are looking forward to implementing it in every one of the JTC project,” he adds.

Alongside TOP inspections JTC declares that it uses virtual technologies for the construction site management. 360-degree reality capture systems are used to coordinate and tracking progress, as well as documenting and reports by site teams over a variety of time. Initial studies suggest potential savings in man-hours as well as productivity gains up to fifty% across the entire construction value chain.

To save money and increase the technology of real-time capture within the field, JTC has launched a solicitation to employ such technologies in all JTC-managed projects.

Read also: In 2Q2023, resale flat prices increased by 1.4% q-o-q, above the 1% growth seen in 1Q2023

In 2Q2023, resale flat prices increased by 1.4% q-o-q, above the 1% growth seen in 1Q2023

Singapore’s luxurious residential market continued to slow in 1H2023 despite an aggressive rate hike by the US Federal Reserve and a worsening macroeconomic environment as per CBRE in a new research report. The number of transactions in each of Good Class Bungalows (GCBs) and luxury apartments slowed during the first quarter in the calendar year. This is which mirrored changes in the overall property market.

The GCB market 13 properties that totalled $525.3 million were sold in the first half of 2018, which is an 14.4% decline from 2H2022 (18 GCBs worth $613.5 million) in addition to an 30.1% fall y-o-y from 1H2022 (29 GCBs worth $751.42 million).

CBRE reports that GCB prices were steady and grew 31.1% compared to 2H2022 to $2,760 per sf in 1H2023. The rise was helped by a major deal in the first quarter of the year, when three GCBs along Nassim Road owned by Cuscaden Peak Investments were bought by the family of Fangiono, which is behind the palm oil producer listed in Singapore, First Resources. The three homes were bought in April, for a price of $206.7 million that works out to $4,500 psf. This set the records for GCB land rates.

The Fangiono family also purchased another GCB located on Nassim Road in March for $88 million ($3,916 per sq. ft.) which was the largest GCB deal of 1H2023.

“Similar in 2022 and 1H2023, the year continued observe GCB demand from citizens who have recently become naturalised and top executives of traditional companies, while actively buying of entrepreneurs in the digital economy which was last seen in 2021 absent during the recession and the hard-hit tech sector.” CBRE adds.

In the market for luxury apartments in the luxury apartments market, the luxury apartments market saw 92 properties that had a total worth of $964.7 million swapped hands in 1H2023, down on the previous 106 properties that accounted for $1.085 billion that were sold in the 2H2022 period. While sales of luxury apartments increased in the fourth quarter of the year following the opening of China’s borders early January, sales slowed in June and May following the doubled amount of additional buyer’s stamp duties (ABSD) charged to overseas buyers up to 60% in effect from the 27th of April.

But prices remained steady despite the decrease in sales. Based on CBRE’s portfolio of luxury freehold projects the median luxury apartment prices increased 1.1% to $3,463 psf in 1H2023 compared to $3,425 in 2H2022.

In Sentosa Cove, which is the Sentosa Cove Enclave, property sales also fell when compared to 2H2022. 7 Sentosa Cove bungalows worth $139.4 million were sold during 1H2023, 32.8% lower than the 10 bungalows valued at $207.5 million sold in 2H2022. In the case of Sentosa Cove Condos 50 units totalling to $251.1 million were sold in the 1H2023, 29.8% lower than the 74 units that were worth $357.6 million that were sold in 2H2022.

The average prices for both condos and bungalows in Sentosa witnessed an increase in 1H2023 as compared to 2H2022 in both cases, with the former increasing 11.9% to $2,214 psf and the latter increasing 1.7% to $2,063 psf in the first quarter this year.

The future is bright, and the volume of transactions in the residential luxury market will likely be sluggish for the remainder of the year, says Tricia Song who is CBRE’s director of market research in Singapore as well as Southeast Asia. “This is due to a variety of factors such as the current cooling measures, uncertainty about the macroeconomic outlook and the rising interest rates that could cause investors to adopt a wait-and-see strategy,” she says.

Song says that current home owners who have luxury homes are likely to help support the price, as the healthy rental yields and shortage of homes with luxury features encourage owners to protect their possessions.

Read more: The corporation is the largest in Singapore, accounting for around 20% of the entire market share

The corporation is the largest in Singapore, accounting for around 20% of the entire market share

JLL announces two fresh additions for its leadership team within Asia. Farazia Basarah was named as the country head for Indonesia as well as Robert Lay has been appointed as the senior director of capital markets, debt advisory, Asia Pacific.

Farazia is succeeding James Allan, recently promoted to CEO of JLL Middle East and Africa. As the country’s head, Farazia is responsible for JLL’s activities in Indonesia as well as overseeing the advice and capital markets areas. She has been at JLL for more than 12 years and has played a an important role in the growth of JLL’s logistics, industrial and data center businesses in Indonesia.

“We’re certain that under Farazia’s leadership JLL will play a crucial role in helping our clients develop their companies throughout Indonesia,” says Chris Fossick as CEO for Southeast Asia at JLL.

Lay will take over responsibility the debt advisory program for Greater China, partnering with members of the larger JLL Capital Markets teams located across Hong Kong and Mainland China as well as across Asia Pacific. Lay will be reporting the executive director Theo Novak, JLL’s executive director of capital markets deals, Asia Pacific.

The new position will see Lay working at Hong Kong. Lay is joining JLL after a stint at his previous position at the Bank of China (New Zealand) which he worked at for a number of years, including the most recent head of corporate development, and also the acting chief of the corporate bank.

Pinetree Hill contact number

A corner terraced plant located on 14, Kaki Bukit View is for sale through the expression of interest (EOI) exercise that has an estimated price at $9.2 million. The single-user five-storey factory covers an area of 8,570 square feet that is classified to Business 2 or heavy industrial usage with the gross plot ratio being 2.0. The land is subject to the benefit of a 60-year lease that began on July 9th 1996. Thus, there are approximately 33 years left in the lease.

The factory is constructed over an area of 17,136 sq ft and comes with the cargo lift and distinct passenger lift. The facility also has parking that can hold up to eight vehicles. The first level has a ceiling of 6m. The upper floor have a ceiling of 4.5m.

Pinetree Hill contact number can be used to contact and look forward to the elegant and sophisticated finishing on these condominiums.

An property title search reveals that the property is part of Barn & Potter, the producer of home-grown aromatherapy and beauty-care retailer Hysses. Hysses had previously operated as Mt Sapola up to the point that Cheryl Gan, who co-founded the company with a Thai-based company partner. She decided to branch independently and redesign the Singapore business as Hysses in the year 2017. She now manages the operations as director at Hysses and Barn & Potter.

The headquarters of the companies is the 37th floor of Kaki Bukit View, a four-storey terraced industrial property only a few feet across from the fourteen Kaki Bukit View. Gan bought the former in the month of December and then moved into the company’s previous premises at Tai Seng. Two years after, Gan acquired 14 Kaki Bukit View in February 2022. He began using the building for storage space for Hysses and Barn and Potter.

Food factory approved for use
After purchasing the property, Gan decided to submit an application for approval to change the purpose of the property’s usage to a food manufacturing. “I thought about going into F&B and I thought that the factory could be an ideal location to begin this business idea,” she explains.

Written consent was granted by URA for the change in usage earlier in the year, explains Haden Hee who is a PropNex Realty realtor who has been assigned to sell the 14 Kaki Bukit View. He explains that obtaining this approval is not an easy task due to the fact that the property isn’t in a food zone that is already in place and approvals are required from a variety of authorities like URA and the Singapore Food Agency (SFA) and the Land Transport Authority, and the Public Utilities Board, among other authorities. “If any of the organizations refuses to grant approval then you won’t be allowed to move forward. The stars have to align in a certain way,” he adds.

Due to the long administrative process, it took nearly an entire year to secure the permission in writing. In the meantime Gan’s priorities have changed to accommodate the fact that Hysses continues to expand. In October, the brand has opened their flagship shop in the Kampong Glam region, which consists of two shophouses that are back-to-back at 56 Haji Lane and 87 Arab Street. The leasehold shophouses with 999 years of lease were purchased by the company in Sept. 2021. $6.7 million. The store is designed to be an interactive retail store that showcases Hysses their products and the their philosophy The store is a major shift from Hysses’ other stores situated in shopping malls. “With Haji Lane, we had the freedom to be more creative with our marketing and advertising. Haji Lane store we were able to have the freedom and room to communicate the story of our brand more widely,” Gan reflects.

She’s currently looking for a sale to the 14 Kaki Bukit View, with the profits possible channelled into more bricks and mortar stores that could be used as a way to connect with customers on a personal level for the brand.

Gan anticipates that approval for food manufacturing to enhance the appeal of the property to prospective buyers. Hee is in agreement, pointing out that as Singapore intensifies its efforts to complete their “30 to 30” food security program that aims to produce 30% of its nutrition needs manufactured in the country by 2030. the demand for food factories is still robust. He anticipates high interest from both consumers working in the food industry as well investors who want to lease the property to these tenants.

In order to finalize the change in use and to obtain the SFA license required by food producers and food manufacturers, certain work needs to be completed at the plant to meet standards such as the fitting of grease filters as well as exhaust pipes. If negotiations are made with the new owner, Gan is open to carrying out the work prior to transfer of the property and allowing the next owner to be able to set up a food processing facility.

Hee says that the asking price of the 14-acre Kaki Bukit View that amounts to $1,074 per square feet in relation to the land area and is an appealing proposition when compared with other properties recently sold within the area. In the month of May the five-storey intermediate terraced factory located at five Kaki Bukit Place was put on the market for sale at an estimate that was $5.35 million and $1,116 per square foot for its land area of 4,795 square feet. In May the month of May, an industrial property located at 34 Kaki Bukit Place was sold for $9 million, or $1,297 per sq ft in the area of land. In June the month of June, an industrial property located at 40 Kaki Bukit Crescent changed hands for $9.05 million or $1,342 per square foot in the land area.

The possibility of conversion into a worker’s dormitories
Another advantage of The property is its location it is 3 minutes walk from Kaki Bukit MRT Station on the Downtown Line. Hee believes that this closeness to public transportation also creates the 14 Kaki Bukit View an ideal property to be converted to a dormitory for workers.

Presently, URA allows up to 49% of the floor space of industrial properties in certain areas to be used for workers in dormitories. In the case of 14 Kaki Bukit View Hee claims this can approximately translate into up around 80 beds subject to the appropriate approvals.

The utilization of the property to serve as workers’ housing is not a valid reason to use it as a food manufacturing facility as per URA as well as SFA guidelines, he says. He considers this to be an appealing option for other companies. “Rents for dorms in central areas have risen to $750 per month. With 80 beds, the owner could make a rent revenue of $56,000 a month while keeping that remaining% part of their building to use for their primary use.”

The EOI application to apply for the 14th Kaki Bukit View is scheduled to be closed on the 4th of September.

Pinetree Hill floor plan pdf

The purchase of a three-bedroom apartment in Avalon proved to be the best-performing condo resale during the period between July 18 and 25 based on caveats filed with URA. The 1,765 sq ft apartment located on the third floor was sold at $4.3 million ($2,436 per square foot) on the 19th of July. The unit was purchased from the vendor in April of 2016 in April 2016 for $2.46 million ($1,394 per sq ft) This means that they earned profits that was $1.84 million. This is an increase of 75% for a time longer than 7 years.

Pinetree Hill floor plan pdf equivalent to $1,318 per square foot per plot ratio (psf ppr).

This is the highest-profit sale which has been conducted at the project to date. This is higher than the previous record, set in January 2022 when an area of 1,765 square feet located on the second floor was sold for $3.39 million ($1,920 per sq ft). The seller purchased the unit at $1.6 million ($906 per sq ft) on October 5, 2005. They realized a profit of $1.79 million on the deal.

The sale on July 19 also marked a new psf price record for the development, and marks the first time an apartment at Avalon has reached the $2,400 mark for psf. This surpasses the previous high of $2,338 set in the month of November 2022. a 1,668 sq feet unit sold for $3.9 million.

The sale of a 3-bedroom apartment in Avalon is the highest-profit condo resales during the period between July 18 and 25 based on caveats that were filed with URA. The 1,765 square feet unit located on the third floor was sold in the amount of $4.3 million ($2,436 per sq ft) on the 19th of July. The property was bought through the sale in of 2016 at $2.46 million ($1,394 per sq ft) This means that they made profits in the amount of $1.84 million. This amounts to 75% for a time longer than 7 years.

It is the most profitable deal to resell which has been conducted at the project to date. It is more profitable than the previous record, set in January 2022. the 1,765 square feet unit on the second floor sold for $3.39 million ($1,920 per square foot). The seller bought the unit at $1.6 million ($906 per square foot) on October 5, 2005. They earned $1.79 million from the sale.

The sale on July 19 also marks a record psf-price highest for the Avalon development and is the first time that an apartment at Avalon has surpassed the $2,400 threshold for psf. This is higher than the previous record of $2,338 psf that was set in the month of November 2022. the 1,668 square feet unit sold for $3.9 million.

The Petals is a condo that was freehold that was completed at the end of 2002 and owned through Frasers Property. It is located at Hillview Avenue, close to the Bukit Batok estate, a residential area in District 23, The Petals is comprised of six 10-storey blocks. There are 270 units, comprised of threeand four-bedders that range from 1,023 and 4,402 square feet.

The most profitable deal of the week under the review took place in Devonshire Residences. A 506 sq ft one-bedroom apartment on the 18th floor was sold at $1.12 million ($2,214 per square foot) on the 20th of July. The buyer purchased the unit on May 11, 2011 from developer developer at $1.31 million ($2,593 per sq ft). In the process, they suffered an expense in the amount of $191,600 (15%) across a time period of more than 12 years.

There has been one resale sale recorded on the property Devonshire Residences to date this year, and it was at a lower price than the unit’s purchase. A 807 sq ft apartment located on the 23rd floor was sold at $1.42 million ($1,755 per square foot) on the 13th of March. The unit was purchased through the sale as a brand new unit in April 2011, for $1.64 million ($2,035 per square foot). The seller incurred an approximate loss of $220,000 in the purchase.

Devonshire Residences is a freehold development developed by Oxley Holdings which was completed in the year 2015. The 25-storey building includes 85 units, which are one-bedroom apartments that range between 495 and 829 sq feet. Penthouses with one bedroom are also available. units, each with a rooftop terrace. The sizes are available from 818 to 1,055 square feet.

Pinetree Hill land price

A joint venture between developers UOL Group and Singapore Land Group (SingLand) sold 150 units (29%) at the 522-unit Pinetree Hill condo during the weekend between July 15-16. The developer has released 400 units available for sale with an initial price of $2,460 per square foot. Based on the amount of units sold the developer was able to achieve 37.5% sales.

Around 99% of customers comprise Singaporeans as well as Singapore Permanent Resident, according to Anson Lim UOL’s general director (residential marketing).

“The units sold are spread out,” Lim adds. About 61% of the units sold are one-bedroom-plus-study and two-bedroom-plus-study, with 39% comprising the larger three- to five-bedroom units.

Pinetree Hill land price bid of $671.5 million, equivalent to $1,318 per square foot per plot ratio (psf ppr).

“We believe that a substantial portion of our customers are owners who are looking for a exclusive residential area with amenities and close to a number of good education facilities,” observes Lim.

The highest price paid for a unit of $2,700 per square foot was for a five-bedroom house UOL reports. UOL.

In the last two weeks of previews over 350 cheques were gathered in expressions of interest. The sales, as had a percentage that was 41%. “It’s an impressive conversion rates for new projects launched in the past year.” states Ken Low the managing partner of SRI.

“There was four brand new developments launched in the past two weekends and all of them saw good numbers in sales,” says Ismail Gafoor who is the PropNex’s CEO. PropNex. “This illustrates the resilience of the Singapore residential market, which is bolstered by local demand for housing.”

Gafoor says the buyers came mostly from the western region, as well as the nearby Holland as well as Mount Sinai areas, and the older condominiums located in Pine Grove and the Pandan Valley and Pine Grove neighborhood.

The larger homes sold reflect the desire of homeowners for more space, says Mark Yip, CEO of Huttons Asia. “Many of them have the serene residential enclave in the coveted Mount Sinai landed area, with panoramic views of the lush greenery surrounding and the Bukit Timah Nature Reserve to northwest and the skyline of the city to the east,” he says.

Pinetree Hill’s location is appealing to both owners and investors and families with kids who are in school, since it’s located within 1km of highly regarded schools like Henry Park Primary School and Pei Tong Primary School; and 2km from Pei Hwa Presbyterian School and Methodist Girls’ School, according to Yip.

Parents of children who are entering the secondary and tertiary grades will appreciate the proximity of Pinetree Hill the Nan Hua High School, NUS High School, Singapore Polytechnic and Ngee Ann Polytechnic, which are all within 2km. NUS, the National University of Singapore is 3km away, claims Marcus Chu, CEO of ERA Singapore.

According to SRI’s Low Pinetree Hill’s closeness to its CBD, Orchard Road, one-north, Jurong Lake District and Science Parks were also primary aspects for buyers of homes and investors.

The fact that there were 29% in units being sold during the weekend of the launch is “a good beginning” Low says. Low. He says: “The developer will have an opportunity to grow their prices because there are fewer new project launch in 2024 than what we’ve witnessed this year. Pinetree Hill buyers who purchased units this weekend are able to benefit from this appreciation up as long as the building is completed.”

Pinetree Hill showroom

The most recent deal of Cairnhill Nine will be for 3,186 square foot penthouse with four bedrooms at the top of the 30-floor in the two-unit luxury condo located situated on Cairnhill Road. The total price of $7.5 million for the penthouse is the most expensive since the condo was built in the year 2016 according to an agreement filed on the 5th of July.

The property title search reveals that the 3,186 square feet penthouse located at Cairnhill Nine is owned through Zico Trust (S) Ltd, an independent trustee and fiduciary company that is regulated by Monetary Authority of Singapore.

Pinetree Hill showroom look forward to the elegant and sophisticated finishing on these condominiums.

Formerly called Zico Allshores Trust (S) Ltd The company was established in 2012, and was granted an trust business licence in the year 2014. Zico Trust is a member of Zico Holdings, an ASEAN-focused multi-disciplinary provider of professional services. The company has been listed on Catalist boards of Singapore Exchange.

Because the penthouse was purchased by trust, it is to be completed in cash at the time of purchase, which includes tax of 65% additional buyer’s stamp duty (ABSD). This 65% ABSD amount to $4.875 million, and is on the top of six% of buyer’s stamp duties, which is $450,000, bringing the total cash due up front up to $12.825 million.

The total amount must be paid prior to when an ABSD Remission request can be submitted for the Inland Revenue Authority of Singapore (IRAS).

The IRAS will examine whether the conditions to refund are fulfilled and the process can take approximately two to three months, according to Lee Liat Yeang, senior partner of Dentons Rodyk’s Real property practice. In the event that a beneficiary an Singapore citizen who has no other residence property and the entire 65% is refundable in full, he says.

“The trust arrangement is designed for cash-rich people because there is no way to finance these purchases. Additionally, you must be ready for a payment of 65% ABSD in advance on the top of the property’s purchase price” according Lee. Lee.

Cairnhill Nine is part of a 99-year leasehold mixed-use development which comprises Ascott Orchard Singapore, 220-suite luxury serviced apartments. Ascott Orchard Singapore offers an array of studios and two-bedroom suites.

The mixed-use development by CapitaLand Development is an redevelopment of the old apartment buildings that were serviced by Somerset Grand Cairnhill, also operated by CapitaLand’s lodging unit. The Ascott Ltd. Cairnhill Nine was completed in the latter half of 2016 while Ascott Orchard Singapore opened in 2017.

The building is situated at Cairnhill Road, just off the most popular shopping area that is Orchard Road, Cairnhill Nine is an ideal district 9 location. It is directly connected with the Paragon shopping mall on the second floor by an overhead air-conditioned bridge that spans Bideford Road, just off the primary Orchard Road.

The residence at Cairnhill Nine, common homes are made up of one-to-four-bedroom apartments that range from 592 to 2,013 square feet. There are just eight four-bedroom penthouses in Cairnhill Nine. Four are duplexes and four are simplyxes ranging in size between 2,400 sq ft and 3,864 square feet.

Pinetree Hill site map

A commercial property situated at five Kaki Bukit Place will be up for auction at Huttons Asia’s auction in July 19. The property has a suggested cost of $5.35 million which is $1,116 per square foot of surface of 4,795 sq feet.

The five-storey intermediate factory is located in Eunos Techpark I located on land that is that is designated to be used for Business 2 or heavy industrial use. The site has a plot proportion to 2.5 and a lease remainder of 32 years on a 60-year lease.

Pinetree Hill site map located in the tightly held neighbourhood of the Ulu Pandan area, the charming Pinetree Hill sits in the central region of Singapore.

The property is a gross flor area of 13,100 square feet. It is equipped with amenities including a cargo and passenger lift, loading area as well as four parking areas.

Five Kaki Bukit Place is an eight-minute walk from Kaki Bukit MRT Station on the Downtown Line. It’s also close to major expressways, such as the Pan-Island Expressway, East Coast Parkway Expressway and the Kallang-Paya Expressway through a network of roads that are arterial.

“The area is further enhanced by numerous services nearby, such as eateries convenience stores, pharmacies and banks, which create an environment that is convenient,” says James Wong who is the director of auctions and sales of Huttons Asia.

Lee Sze Teck, Huttons Asia’s senior director of research believes that the property is priced well, due to recently completed transactions in Kaki Bukit Place that comprised the purchase of 34 Kaki Bukit Place for $9 million ($1,297 per sq ft on the land) at the end of May.

Pinetree Hill main contractor

According to the flash estimates published by HDB on July 3rd the resale flat price increased 1.4% q-o-q in 2Q2023 more than the one% rise recorded in 1Q2023. This also marks the third consecutive period of increase. But, it’s less than the median annual growth rate at 2.5% recorded in 2022, HDB states.

Pinetree Hill main contractor placed the winning bid of $671.5 million, equivalent to $1,318 per square foot per plot ratio (psf ppr).

Volumes of flat transactions for resales fell to 3.9% q-o-q in 2Q2023 to 6,409 units. This is 4.6% lower y-o-y and the lowest volume over the past three years following 3Q2020.

The rapid increase in resale flat rates in the 2Q2023 period is accompanied by a higher demand due to the increased incentives for first-time home buyers, says Christine Sun, senior vice director of research and analysis for OrangeTee & Tie.

In the Singapore’s Budget 2023 which was announced in February, households who purchase four-room or less apartments initially will be eligible for enhanced Central Provident Fund housing grants of $80,000. This is an increase from $50,000 prior to. If you’re looking to purchase five-room flats, the grants are now up to $50,000 from $40,000 before.

With the increased allowances, private property downgraders could be channeled to four-room apartments, according to Sun. This is due to the fact that people over 55 years old can be exempt from the wait-out period of 15 months period that is applicable to private property buyers who purchase a resales apartment if they plan to purchase four-room or smaller flats. According to the ERA’s Lim the 2Q2023 report the proportion of four-room HDB sold transactions was 48.4%, higher than the 45.3% recorded in 1Q2023.

However, even though the grants have provided buyers a boost to their budget for housing but there’s still an inconsistency of price between buyers and sellers that is the cause of the smaller volume of transactions in the last quarter, according to Lee Sze Teck, senior director of research at Huttons Asia. He suggests that a few buyers might opt to go for a Build-to-Order (BTO) flat, since HDB has boosted the availability of flats and has a shorter wait period.

In 2Q2023 the estimated 90 resales of flats were sold at least one million dollars this Lee says as 12.6% lower than the flats worth 103 million dollars that were sold in during the prior quarter. The most expensive flat sold was a adjoining flat in Moh Guan Terrace, which changed hands for record $1.5 million in the month of June.

Despite the record-breaking sale, Lee notes that most of the million-dollar flats took place within the $1 million to $1.1 million price range. “Buyers might be rationalising the high cost in order to get an HDB flat, but more are opting for flats with four rooms,” he says.

As the more BTO flats are constructed in the near future there will be a greater number of resales flats to be sold could rise since owners moving into the BTO flat will have to sell their existing apartment, Lee says. “The rise in the amount of launches for private residential properties could result in more HDB upgraders choosing to sell their homes prior to moving in order to not have to pay an additional 20% ABSD (additional stamp duty for buyers) at the beginning.”

In the meantime, some buyers looking to resell flats could be shifted towards BTO. BTO market, since HDB continues to introduce new flats in various estates. In August, during the BTO exercise 7,700 BTO apartments will be put up for sale, and 6300 BTO apartments will be sold in November.

Due to the rise of both BTO and resale flat supplies, Lee anticipates resale flat price growth to be moderate. Lee expects the full-year rate of price growth to be no greater than five% and an estimated amount of between 24,000 and 26,000.

Pinetree Hill launch

The co-living industry in Singapore is rapidly growing beyond its infancy stages to become a mature market. A report on the sector released by JLL states that post-pandemic, the co-living market in Singapore is becoming more stable with a wider variety of occupiers, including expatriates as well as locals.

The report, which is titled “Co-living in Singapore It’s here to remain” describes the current co-living environment in Singapore and the key players and shakers in the industry, the investment flows that fuel the growth, and the obstacles that co-living stakeholders confront.

Pinetree Hill launch is a once-in-a-lifetime opportunity for investors and homeowners to acquire a property in a tranquil setting, the Ulu Pandan area.

This follows on from a report from JLL that was titled “Co-living in Singapore Co-living in Singapore: Living communally at your own convenience” that offered a look at the rapidly growing co-living market as a possible alternative to traditional living alternatives in Singapore.

Co-living isn’t a distinct design type in Singapore. According to URA’s land-use rules, the majority of co-living areas employ residential, serviced apartment or hotel property kinds. So, co-living spaces are incorporated in the guidelines for planning as a marketing term that is used to describe developments with communal spaces and living spaces which offer a variety of programs for community bonding and social interaction.

The length of stay that is required for any co-living space in Singapore is determined by the property types and zonings they belong to. The shortest duration is for co-living properties classified as hotels, which are rented out at a cost per day. These units must have the minimum size of 118 square feet.

Co-living spaces in the space of a serviced apartment must require a minimum stay of seven days, and the unit must be at least 377 square feet. Residents who live in co-living spaces within residential property are required to adhere to the most lengthy minimum period of at least 3 months, and the minimum size of 377 sq feet.

Product evolution

In Singapore the co-living market has adapted to a change in the preferences of consumers and expectations for accommodation. This has led to a change in the design and layout of co-living spaces and apartments, according to Chia Siew Chuin, director of research on residential properties, JLL Singapore.

“There is a growing trend toward more private rooms that come with kitchenettes with washer-dryer, ensuite bathroom, and television. This is in part driven by a growing focus on hygiene, personal health and wellbeing as well as the desire for more privacy and comfort in co-living communities,” she states.

One example is the newest entry Weave Living that launched its first co-living service within Singapore during March. It launched Weave Suites -located in Midtown in the storied Kampong Glam area. It is a 65-room apartment that has a serviced property is located in a row of 17 conserved two-story shops in Jalan Sultan.

Apart from the option of six layouts for units Each room is private with living areas that are fitted out but there’s the emphasis on communal spaces and facilities like a fully equipped kitchen as well as gym facilities and hot desks in the lower floor.

Chia observes that private rooms typically have a higher price tag than traditional co-living arrangements that typically feature more shared spaces and facilities, but fewer rooms that are self-sufficient.

In general the operators are quick to recognize the requirements of guests. “We anticipate that co-living services will remain evolving as operators strive to adapt to the evolving demands and preferences of their people living there,” says Chia.

Consolidation in the sector

However the image of operators has drastically changed over the past few months, says Tan Ling Wei, senior vice director of investment sales for Asia Pacific, at JLL Hotels & Hospitality Group. “The Singapore co-living market has seen significant changes in the last years in the form of mergers and acquisitions being a standard strategy for major players seeking to increase their market share as well as reach potential customers who are not yet there,” She says.

For instance the Hong Kong-based co-living company Dash Living bought over local operator Easycity in the year 2020. This was a smart move which allowed the company based outside of Singapore to enter Singapore. Singapore market.

Local company The Assembly Place also acquired The Assembly Place also acquired the property belongings of Libeto which is a different Co-living company based in Singapore, which was founded in 2020. The deal also included properties operated by its co-living arm Commontown Singapore, totalling approximately 120 rooms. This assisted The Assembly Place consolidate its market share as well as expand the quality of its accommodations.

Another local brand, Hmlet, was acquired by European co-living firm Habyt by 2020. It was a deliberate move by Habyt, a European company to expand into the Asia Pacific market and become an international player that is more competitive.

“Overall the trend toward consolidation within the co-living market can be explained by the necessity for companies to gain economies of scale and remain in the forefront of a fast-growing and transforming industry” Chia says. Chia.

She says that as the interest in living cos continues rise the prospect of mergers and acquisitions are likely on the horizon for companies looking to expand their reach and offer accommodation.

Stakeholders and players

In the JLL report according to the JLL report, there are around 20 active co-living companies on the Singapore market, and around 9000 co-living spaces in the market for accommodation. This number includes strata units leased by owner to the co-living operator who oversee on behalf of the owners.

JLL research shows that the three biggest co-living companies in Singapore in terms of the number of units under management as well as on the horizon include: real estate management service company LHN Group’s brand Coliwoo The Assembly Place, a start-up company; The Assembly Place; and another brand that is homegrown Bespoke Habitat.

Together the three companies make up around fifty% of the overall supply of co-living in Singapore. Other prominent companies comprise Hmlet, Cove, Dash Living and Myposhpad. Furthermore, the presence of co-living companies that are supported by established developers or hospitality organizations can result in a fierce competition within markets in the area. A good example is the lyf brand from The Ascott.

All in all, Chia says that the Singapore co-living market is “increasingly competitive and creative, which bodes well for people seeking affordable and flexible housing choices”.

She also says that JLL is tracking nearly 800 more co-living units that are scheduled to be launched between 2Q2023 until 3Q2023, and anticipates as high as 2,100 new co-living units to hit into the market by the end of the year.

The government appears to be supportive of the growing co-living market. In March, the Singapore Land Authority (SLA) has launched a tender to secure renewal of a five-year lease on an owned by the government property located at between 79 and 95 Hindoo Road in March. The property is comprised of 18 apartments located in a 1920’s two-storey building. It’s situated in a 14186 square feet area that has a gross floor area of 18,367 sq feet. It has been renovated to residential (co-living) usage.

The tender was closed on April 26. The outcomes are scheduled to be announced before the end of July. The website of the SLA website the tender was closed on April 26. There were 16 bids and the bid rents vary from $7,250 per month up to the highest that of $688,000 a month which was put forward by the construction company Eco Energy.

Other state-owned properties currently used to co-live include Hmlet Cantonment located at 150 Cantonment Road, and Coliwoo Keppel located at 1557 Keppel Road.

The majority of co-living companies have chosen to stay in those in the Central Region and some city-fringe areas like River Valley, Geylang and Little India, due to their close proximity in proximity to CBD. These are attracted by young professionals who are more price-conscious, but they also want the convenience of living, according to Chia.

Demand driver

According to JLL, the soaring demand for co-living is due to short-term market disruptions as well as intervention measures taken from the state. “The regulations and pandemic have led to a temporary increase in demand for co-living because of short-term imbalances in Singapore’s residential market dynamic,” says Chia.

For instance, pandemic-related construction delays which fuel demand for temporary leasing from residents of the area and those who are long-term residents. “Co-living leases are a popular alternative for temporary solutions as they provide tenants flexibility with the option of renewing their leases monthly,” says Chia, saying that this type of demand will likely be temporary as the majority of the projects that are affected due to delays are scheduled to be completed before the end of the year.

The rising cost of renting and the increasing interest rates are weighing out some homeowners and renters. The research conducted by JLL shows there is evidence that the private property costs in Singapore have increased by around 20.1% over the past two years, whereas rents in prime areas have risen by 42.5% over the same time.

Furthermore to that, a “prohibitive” additional stamp duty on overseas buyers implies that those who had planned to purchase a house in Singapore might have to keep renting a home at the very least for a short period Chia explains. Chia.

“Co-living helps fill the void in the rental market that is crowded and is now a popular alternative that provides an affordable and flexible living arrangements for people who aren’t able to commit to long-term lease agreements,” she says.

Rising allocation of investment

In Singapore the market for co-living has demonstrated a solid cashflow stability and operational resilience, able to ride out the pandemic, according to Tan. “The potential of the market of co-living in Singapore is far beyond the scope of temporary demands. The structural shifts indicate that the demand for co-living space will continue to increase over the medium-to-long time,” she says.

For instance, the attitudes toward homeownership are slowly shifting to the side of renting, especially for couples and younger professionals. Additionally, a rise in the population of expatriates is expected to boost the short-term rental market, according to Tan.

This is why the sector is drawing more attention and capital allocations from investors like private equity funds family offices and real estate developers co-living operators, and funds for institutional investors.

Co-living operators and investors are expected to earn high operating margins ranging from between 65% up to 85% because of very low staffing ratios as well as an industry that is characterized by extremely minimal vacancies, claims Tan. “Despite the steady income and low levels of vacancy, many investors still see co-living as one of their value-add investment strategies, and have an expected internal return of between 15% to 18%,” she says.

This attitude to investing originates from the infancy of the co-living industry in Singapore. “The absence of any existing built-to-rent properties also means that investors will have to accept the risk of conversion to transform commercial buildings like hotels into co-living facilities,” says Tan.

As the industry expands over the next few years, JLL expects co-living assets to earn a higher rate that ranges between% to 5% as compared against traditional office properties, which tend to be stable at around 3.5% to 4%.

“As the market matures with stable efficiency and liquidity are expecting the returns that have been stabilised for co-living to become similar to the expectations that are typical for office properties” Tan adds. Tan.

The future holds challenges

In order to reduce risk for the investment in co-living spaces, Tan says that many private equity investors are in search of underperforming hotels in the region, which they could transform into co-living facilities or seeking to co-invest with regional and local operators.

Converting hotels with poor performance into co-living areas has been success at Hong Kong and investors there are looking towards Singapore to replicate the same model, in which they see huge growth opportunities, according to Tan.

Joint ventures have made a impression in Singapore like the launch of Weave Living in March. The operator based in Hong Kong bought the property which was formerly known as Clover Hotel Clover by way of an 80:20 partnership with the mainboard-listed construction company SLB Development.

But the absence of appropriate assets, in addition to an unreliable legal and regulatory environment, could hamper this business over the long term Chia says. Chia.

Chia says that the absence of greenfield development sites in Singapore implies that operators are forced to convert commercial hotels, shophouses, and other assets into co-living properties. The acquisition of residential properties to expand isn’t economically feasible because of the high capital value in Singapore Chia adds. Chia.

Players like Figment have been able to make it their business to restore historic shophouses and lease the buildings for residential use. LHN Group has boosted its portfolio by acquiring commercial properties and, in turn, co-living conversions.

It is also not clear what the government’s plans are for the regulatory and legal structures that govern co-living properties. Minimum stay requirements that are linked to land zoning and also limits on the size of kinds of housing may need to be revised in line with the development of the co-living industry as it is now, says Chia.

In the future, she believes her prediction is that when the marketplace grows and more players enter the market the possibility of further consolidation and standardisation are likely to be observed, which will result in higher efficiency and scale.

“The winds that are driving the medium-to-long-term rental demand, increased transparency of the regulatory system as well as a better awareness and acceptance of co-living as a feasible housing option can further boost the confidence of investors and draw a larger and more diversifying pool of investors and buyers,” says Chia.