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Business Times
6 days ago
- Business
- Business Times
CBD homes can be the dark horse that shines
When the 1,111 unit 99-year leasehold The Sail @ Marina Bay - the first major condo project in the Central Business District (CBD) - was launched for sale in 2004, demand was brisk. Fast forward to today, buyers appear to be fairly lukewarm to private homes in the CBD. Some units of developments with initial land leases of 99 years such as Marina Bay Suites, One Shenton and V on Shenton have been transacted recently at below S$2,000 per square foot (psf) - lower than that of prices fetched by some resale condo units further out from the city centre in Tiong Bahru and Queenstown. The tough Additional Buyer's Stamp Duty regime is hurting buying of multiple homes by Singapore citizens and permanent residents (PRs) as well as the purchase of any home by non-PR foreigners. The ABSD rates for buying a second or subsequent home are 20-30 per cent for a local and 30-35 per cent for a PR. A non-PR homebuyer pays 60 per cent ABSD. ABSD does not apply to a local buying a first home, while a PR purchasing a first home pays 5 per cent ABSD. Indeed, with a private housing market now dominated by Singaporeans buying their first homes, some new condo launches in the suburbs and city fringe have flourished. Key selling points for projects that have seen strong take-up include proximity to MRT stations, retail amenities and reputable schools. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Potential buyers might do well to pay greater attention to CBD homes. After all, the Urban Redevelopment Authority has in recent years been moving away from a downtown dominated by offices, to one which is more mixed use and lively after office hours. Today, a home dweller in the CBD can easily access public transport, shops, F&B outlets, hawker centres, parks, cultural amenities, conserved shophouses and so forth. W Residences Marina View Amid a flurry of new condo launches, might a project in the vicinity of Marina Bay - the centrepiece of Singapore's urban transformation - such as W Residences Marina View - Singapore be a dark horse that shines? The developer IOI Properties is part of Kuala Lumpur-listed IOI group, one of Malaysia's biggest conglomerates, and has been steadily growing its Singapore footprint. In the Marina Bay area, it also built IOI Central Boulevard Towers, a mixed-use development with two Grade-A office towers and a seven-storey retail podium. The 99-year leasehold luxury W branded residence project is now in the early phase of private previews, with 'special preview prices' from just over S$3,200 psf for a limited number of units. In perspective, two upcoming new condo launches in the River Valley area have prices that are not far off the above price. Prices for Wing Tai Holdings' River Green start from S$2,846 psf, while prices for Allgreen Properties' Promenade Peak could be around S$3,000 psf. The 683-unit W Residences Marina View, with easy access to the Shenton Way MRT station on the Thomson-East Coast Line, has 171 one-bedders, 310 two-bedders, 103 three-bedders, 32 four-bedders, 64 five-bedders, and three penthouses. Part of a 51-storey mixed-use development, the homes will be perched atop the new 360-room five-star W Singapore – Marina View hotel. CBD housing demand There are first-time local private homebuyers who buy mainly for investment, such as a person whose spouse owns their owner-occupied home and a young adult living with parents. For this profile of buyers, a one-bedder or two-bedder at W Residences Marina View could make sense. Rental demand for CBD homes is supported by easy access to Grade A CBD offices, which are the option of choice for many leading businesses across diverse sectors as well as the increasing liveability of the CBD. An added edge for a landlord of a unit at W Residences Marina View could come from the residences being operated by Marriott International. The project's residents will have access a high level of services for their lifestyle needs. In addition, smaller configuration condo homes in the CBD, especially in developments that are well crafted and have great common facilities, may attract owner-occupiers who are high-earning singles or couples without children. Meanwhile, some owner-occupiers might be drawn to living in large premium condo homes in the Marina Bay vicinity and other parts of the CBD. Think of wealthy PR households who may not be able to buy landed housing here and need not live close to sought-after local schools. Or older well-heeled local couples whose children have grown up and moved out from their home, who could be moving from say a landed home to a large format centrally-located condo unit with ample space for entertainment and hobbies. In short, a four-bedroom unit of about 2,250 square feet (sq ft) or a five-bedder of about 2,809 sq ft at W Residences Marina View might appeal to affluent homebuyers looking for a high quality abode to live in. Sure, CBD living is not everyone's cup of tea. And even as the CBD transforms into a more vibrant live, work and play destination, its undoubted strength is as a host of premier work spaces for leading businesses. Nonetheless, don't underestimate the appeal of homes in the CBD. The unique selling points of such homes include their easy access to luxury shopping at The Shoppes at Marina Bay Sands, top attractions like Gardens by the Bay and Marina Bay Sands, great recreational spaces like Marina Barrage as well as leading arts venues and museums. Moreover, a CBD that is quieter at nights and on weekends relative to the bustle of weekday mornings and afternoons could be a plus for residential dwellers who are largely at home during weekday nights and weekends. Ultimately, in a resilient and steady Singapore private housing market, betting on a dark horse in CBD homes may deliver relative outperformance in the long run.
Business Times
02-07-2025
- Business
- Business Times
IOI starts previews for 683-unit W Residences Marina View luxury project
[SINGAPORE] IOI Properties Group, which began marketing its luxury-branded residences project W Residences Marina View Singapore in late June, is expected to book sales on Jul 12. Located in Marina View, the 683-unit project will sit atop the 360-room W hotel, the Marriott group's second W hotel in Singapore after the one on Sentosa, called W Singapore Sentosa Cove. The project is next to the Shenton Way MRT on the Thomson-East Coast line. In response to queries from The Business Times, IOI said: 'The private preview for invitees presents a rare opportunity to experience first-hand the exceptional value this development brings to the branded residences market. This is achieved without compromising on quality, prime location or the exclusive privileges synonymous with the W brand, managed by Marriott International – the global leader in branded residences.' The marketing materials seen by BT indicate that the 99-year leasehold development comprises 171 one-bedroom units, 310 two-bedroom units, 103 three-bedroom units, 32 four-bedroom units, 64 five-bedroom units, two simplex penthouses and one duplex penthouse. Listings on PropertyGuru show that one-bedroom units, at 538 to 570 sq ft in size, start at over S$2.1 million. The two-bedroom units, at 710 to 850 sq ft, are expected to be priced from S$2.8 million, and the three-bedders, at 1,195 to 1,249 sq ft, from S$5.4 million. The four-bedders spanning 2,250 sq ft start at S$13 million, and the five-bedders, at 2,809 sq ft, are listed for sale from S$16 million. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up On a per-square-foot (psf) basis, prices are estimated to range from about S$3,800 to around S$6,000 psf. Prices are not available for the penthouses, but BT understands that each penthouse is above 5,000 sq ft in size. W Residences Marina View Singapore is expected to achieve its Temporary Occupation Permit in 2029. In 2021, IOI was the sole bidder for the white site, which it bought for S$1.508 billion or S$1,379 psf ppr, after triggering the release of the plot from the government land sales reserve list. IOI's bid was just S$101 more than the minimum price it committed to paying when it applied for the site. The site was estimated to be able to supply 905 private housing units and 540 hotel rooms. In June 2022, IOI received provisional permission for a 307-room hotel, 748 apartments for sale and 2,000 sq m in gross floor area of retail space on the land parcel. Market talk had it that in 2023, the developer tweaked plans for the project, reducing the number of apartments to 683, and raising the number of hotel rooms to 360. This followed the government's rolling out of a set of cooling measures in April that year, including sharply higher ABSD (Additional Buyer's Stamp Duty) rates for foreign buyers and investment buyers. Last year, IOI completed the Grade-A IOI Central Boulevard Towers, a mixed-use development in Marina Bay nearby, which comprises two Grade-A office towers and a seven-storey retail podium. One of Malaysia's largest property developers, IOI recently announced plans to acquire the remaining 50.1 per cent stake in the South Beach development it built with its joint venture partner, City Developments (CDL). IOI's portfolio of high-end residential properties also include Seascape and Cape Royale, condominium developments in Sentosa Cove which were developed in partnership with Ho Bee Land. The W Residences is the second residential project to be launched in the Marina area. In April 2025, One Marina Gardens in Marina South sold 353 units or about 38 per cent of its 937 units over its launch weekend, amid concerns about a trade war and potential global recession intensifying. The units were sold at an average selling price of S$2,953 psf. W Residences Marina View Singapore's launch comes in a month in which at least seven major projects are expected to come onto the market, several of which will also be in the Core Central Region (CCR). On Wednesday (Jul 2), Frasers Property and Sekisui House opened The Robertson Opus along Unity Street for a private preview. Prices there start at S$3,150 psf.
Business Times
17-06-2025
- Business
- Business Times
Four large-format HDB retail units in Ang Mo Kio, Bukit Merah, Clementi, Toa Payoh for sale
[SINGAPORE] Four Housing and Development Board (HDB) retail units located in the heart of various mature estates have been launched for sale through an expression of interest (EOI) exercise, said property consultant Knight Frank Singapore and real estate firm CBRE in a joint statement on Tuesday (Jun 17). Each unit spans two levels within standalone HDB commercial blocks that are 'strategically located' in the established town centres of Ang Mo Kio, Bukit Merah, Clementi and Toa Payoh. As the assets are fully commercial, they are not subject to Additional Buyer's Stamp Duty and Seller's Stamp Duty and are eligible for foreigner purchase, the two companies added. The EOI exercise closes at 3 pm on Jul 23. Each unit has a strata area of about 23,960 to 30,139 square feet (sq ft). Together, their combined strata area is about 104,808 sq ft. 'The fully tenanted portfolio presents an exceptional opportunity to acquire sizeable, income-generating commercial units in high-footfall locations,' read the statement. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Supermarket chain FairPrice currently anchors the blocks at Ang Mo Kio, Bukit Merah and Toa Payoh, while electronics retailer Courts occupies the Clementi property. The unit at 712 Ang Mo Kio Avenue 6 is near the Ang Mo Kio MRT station. PHOTO: KNIGHT FRANK The unit at 712 Ang Mo Kio Avenue 6 occupies the first and second levels of a four-storey HDB commercial block. The 23,982 sq ft unit has multiple street frontages and is a short walk from Ang Mo Kio MRT station. The 23,960 sq ft unit at 192 Toa Payoh Lorong 4 spans about half of both the first and second floors of a two-storey HDB commercial block within the Toa Payoh central precinct. The unit at 166 Bukit Merah Central is occupied by supermarket chain FairPrice. PHOTO: KNIGHT FRANK In Bukit Merah Central, the 30,139 sq ft unit consists of the entire sub-basement and part of the first level of Block 166, a three-storey commercial building in the town centre. The property features a prominent street frontage and houses the only supermarket in the area. The 26,727 sq ft unit at 451 Clementi Ave 3 occupies parts of the first and second levels of a three-storey standalone commercial building, which offers sheltered access to Clementi MRT station. The unit at 451 Clementi Avenue 3 is near Clementi MRT station. Knight Frank and CBRE noted that the properties are prominently positioned within 'bustling retail catchment zones', supported by nearby markets, food centres, polyclinics, essential services, MRT stations and bus interchanges. 'With only approximately 8,500 HDB commercial units available for private ownership, and the HDB no longer releasing such assets for sale, this portfolio represents a truly scarce and highly sought-after investment opportunity,' said Knight Frank Singapore chief executive Galven Tan. The properties may be sold on a portfolio or piecemeal basis.
Business Times
05-06-2025
- Business
- Business Times
Tariffs and potential slowdown of global economy weigh on property players' minds: NUS poll
[SINGAPORE] Real estate leaders in Singapore were significantly more pessimistic in the first quarter of 2025, as sentiment soured after the rollout of tariffs in the United States brought about heightened economic uncertainty. According to a quarterly survey by the National University of Singapore, the Composite Sentiment Index – a barometer of general prevailing sentiment – fell to 4.3 in Q1, from 6 in the previous quarter. The turn in sentiment comes after five consecutive quarters of upward movement as the market progressively recovered from the April 2023 property curbs, which saw heftier Additional Buyer's Stamp Duties imposed on housing buyers, the survey noted. 'Amid such a subdued landscape, the 90-day tariff pauses announced by the US – first for other countries in April, then for China in May – is a silver lining that holds the potential for a de-escalation of the trade war between America and China,' said Prof Qian Wenlan, director of the Institute of Real Estate and Urban Studies (Ireus). However, with trade negotiations still ongoing at large, it is still early days to predict how the global economy will eventually pan out, Prof Qian said. 'So firms and households would need to keep a close watch on leverage and debt obligations in the event of a hard landing, while capital might want to seek less volatile assets such as sovereign bonds and real estate.' A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Prof Sing Tien Foo, NUS Business School's provost chair professor of real estate, said: 'This sentiment survey coincided with the announcement of tariffs imposed on many trading partners of the United States. The effects on market sentiment cannot be fully eliminated.' A slowdown of the global economy was cited by 87.5 per cent of respondents as the top risk they were concerned about. This was followed by job losses or a decline in the domestic economy, with 70.8 per cent of respondents worried about this, a markedly higher increase from the 29.6 per cent who flagged this as a risk in the fourth quarter last year. Some 37.5 per cent of respondents were concerned about the possible tightening of financing and liquidity in the debt market, while one-third cited rising costs of construction as a potential risk. Only 29.2 per cent of property executives indicated they were concerned about cooling measures being introduced, a sharp dip from 77.8 per cent who felt so last quarter. The Current Sentiment Index – which follows changes in sentiment over the past six months – fell to 4.2, from 6.2 in the quarter before. This was the lowest since Q3 2023, after the Additional Buyer's Stamp Duty rates were hiked in April that year. The Future Sentiment Index – which tracks sentiment changes in the next six months – similarly fell to 4.5 in Q1, from 5.9 in Q4 2024. Half of real estate executives surveyed expect the number of residential units to be launched in the next six months to remain relatively constant, an increase from 13.3 per cent who believed so in Q4. Some 64.3 per cent expect new launch prices in the next six months to remain at the same price level, while 28.6 per cent think prices will be moderately higher. For the first quarter of 2025, all property sectors had negative current net balances, as well as negative future net balances. Current and future net balance percentages are used to indicate current and future sentiment, with a negative net balance pointing to a poorer sentiment. They are based on the difference between the proportion of respondents who selected the positive and negative options in the poll. 'A weaker business environment will exert a spillover effect into the property sector, and with the exception of business parks and high-tech space which stayed flat, sentiment fell across the board,' said Prof Qian. Real estate players remained most favourable towards the suburban residential market in Q1, with a current net balance of -4 per cent, compared to a +67 per cent net balance in Q4. The suburban residential market also has the highest future net balance of -25 per cent, although this has fallen significantly from the +52 per cent in the previous quarter. The prime residential market had a current net balance of -25 per cent and a future net balance of -50 per cent. This is a reversal from Q4, when the current net balance for the prime residential market was +4 per cent. For the first quarter, the current net balance for the suburban retail sector stood at -4 per cent, while the prime retail sector had a current net balance of -17 per cent. The suburban retail sector recorded a future net balance of -29 per cent, while the prime retail sector's future net balance came in at -54 per cent. All other sectors from office, business parks, industrial and logistics, and hotel/serviced apartments had current net balances ranging from -25 per cent to -13 per cent. The future net balance for these sectors ranged from -46 per cent to -29 per cent. 'The outlook for the immediate future remains gloomy, as the latest survey results revealed -46 per cent and -38 per cent future net balances respectively for industrial and logistics and office, suggesting that respondents anticipate downward pressures on commercial space to increase further over the coming months,' Prof Qian said.
Business Times
27-05-2025
- Business
- Business Times
Bukit Sembawang H2 earnings up 13% at S$51.4 million; company proposes higher special dividend
[SINGAPORE] Property developer Bukit Sembawang Estates reported a net profit after tax of S$51.4 million for the second half of its financial year ending Mar 31, a 13 per cent increase from S$45.6 million over the same period last year. The increase was mainly due to higher profits being recognised for residential development projects Pollen Collection, Liv@MB and Fraser Residence Orchard, said the property developer via a bourse filing on Monday (May 26). However, revenue fell 24 per cent to S$225.9 million from S$297.7 million over the same period mainly due to the absence of revenue contribution from a completed project call The Atelier, which had its revenue fully recognised in the previous half-year reporting period. Cost of sales was down 34 per cent at S$166.5 million. However, gross profit rose 32 per cent to S$59.4 million in H2 FY2025. As a result, earnings per share increased to S$0.1984 from S$0.1762 over the same period. While higher profits were recognised from the property development segments, there were lower profits from the hospitality segment. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up This was due to lower impairment loss on property, plant and equipment at Fraser Residence Orchard. The company said that the cooling measures implemented in April 2023 – when the government hiked Additional Buyer's Stamp Duty rates to 60 per cent for foreigners – continue to dampen property demand, particularly from foreign buyers as well as investment-driven purchases by Singaporeans and permanent residents. 'At the same time, a cautious economic outlook, both globally and locally, is weighing on investor sentiment. Within this context, the residential property market remains challenging, with elevated construction and development costs continuing to put pressure on margins,' the group said. 'The group will continue to monitor the progress of construction of our ongoing projects to ensure timely completion. It will also adopt a prudent and measured approach in calibrating the timing of upcoming launches of residential projects, in alignment with prevailing market conditions and buyer sentiment,' it added. For the full year, earnings surged 61 per cent to S$114 million on a 2 per cent dip in revenue to S$550 million. The group has proposed a final dividend of 4 cents and special dividend of 16 cents a share; compared with 4 and 12 cents the year before. Shares of Bukit Sembawang Estates fell 0.3 per cent, or S$0.01 to close at S$3.92 on Monday.
