Tag Archives: singapore property

Rise in office rents to slow this year

Office rents in Singapore are likely to rise at a slower pace this year, even as supply, especially in prime areas, remains tight.

Robust demand for grade A office space by financial institutions and other companies will still contribute to overall rental growth, but it would not match the upward spiral seen last year, said property consultants.

“A variety of factors indicate a slower pace of rental growth. These include companies’ willingness to move outside prime areas, a few signs of rising caution due to external issues in the United States and the growing realisation by occupiers that the market will be more friendly beyond 2010,” said CBRE’s Moray Armstrong, executive director of office services.

“Office rental growth is reaching a point of inflection, not a turning point,” according to Mr Steve Smith, deputy managing director at property consultancy Savills. He expected prime office rentals to grow 15 to 20 per cent this year, after rising 90 per cent last year.

While the top-end office rents in Singapore still remain lower than Hong Kong’s, “the average Grade A office rents in Singapore could possibly exceed Hong Kong’s by the second quarter this year because Hong Kong has a bigger supply coming through this year, about 3 million sq ft,” Mr Smith added.

The supply crunch in grade A office space prompted the Government to put forth plans during Budget 2008 last week to make available more space in the central area. Finance Minister Tharman Shanmugaratnam said the Government planned to relocate some agencies out of the central area to free up 20,000 sq metres of office space by early next year. It has also released 15 transitional office sites that will add 150,000 sq metres of office space in the near term.

According to the Urban Redevelopment Authority (URA), office rentals islandwide rose 56.1 per cent last year. In the last quarter, competition for the pockets of vacant space in the central business district remained intense and prime office rents averaged $15 psf per month, said CBRE. By the end of the year, prime rents could average $17 per square foot per month, it added.

Source : Today – 22 Feb 2008

Experts say Grade A office rentals to continue rising in 2008

Rentals of Grade A offices in Singapore are expected to continue rising this year.

According to property consultant Savills, average office rentals here may even nudge above that of Hong Kong’s, currently the highest in the region.

They added that Singapore’s office property sector will continue to remain buoyant despite worries over the US sub-prime crisis.

One Raffles Quay in Singapore’s Central Business District

“Even in the current environment which is rather uncertain, we noticed that the financial services community is continuing to grow in Asia. And we noticed this in HK and in Singapore, so demand remains very strong here. That is going to continue to push up rents in the grade A office market,” said Simon Smith, Deputy Managing Director, Savills Valuation and Professional Services.

Savills is expecting prime office rents in Singapore to jump by 15-20% this year, down from the 90% jump in 2007. Vacancy rates for offices hit as low as 0.2% late last year.

Savills said Singapore is attractive to overseas investors looking at the office property sector in the region.

Robert McKellar, CEO (Asia Pacific), Savills Asia Pacific said: “Office is primarily very attractive. Of course, (there are) very few assets for sale and that makes it very difficult for any overseas investor to get access to stock. Nevertheless, if the opportunity arises, then definitely we’ll go for a secure investment in Singapore.

“For example some of the German open-ended funds that are increasingly wanting to have a bigger slice of the Asian real estate markets; they see Singapore as an attractive market because of the fact that its lots are risk-free.

“They are looking to have a base from which to invest into the region, and (it’s) ideal for them, acquiring an asset in Singapore which is risk-free, which has stabilised market, strong economy and low taxation.”

Meanwhile, another property consultant CB Richard Ellis (CBRE) is estimating that about 10.1 million square feet of new office space in Singapore will be completed by end of 2012.

Some 67% of the supply coming into stream within the next three years is expected to be Grade A office space. This means a doubling of prime office space.

CBRE said monthly rentals for prime office space averaged S$15 per square foot from October to December of last year, up 92% on year. It is expecting these to average S$17 per square foot by the end of the year.

Meanwhile, luxury residences will also see prices jumping between 8-12% in 2008. – CNA /lsSource : Channel NewsAsia – 22 Feb 2008

URA commercial site at Jalan Sultan draws 20 bids

Chiu Teng Estates has put in the top bid of S$14.8 million for a 99-year leasehold commercial site at Jalan Sultan.

This works out to S$10,480 per square metre per site area.

It is also just S$1.2 million more than the second highest bid.

The tender attracted 20 bids in all.

Meanwhile, the Urban Redevelopment Authority has decided to reject the only bid submitted for the transitional office site at Aljunied Road and Geylang East Avenue 1.

It said the bid of S$7.8 million or S$413 per square metre of gross floor area was too low. -CNA/vm

Source : Channel NewsAsia – 22 Jan 2008

Quick flip success

More investors pump money into office property as reselling them could reap huge gainsIT WAS probably the most profitable “flip” in the property market.

In a deal announced last week, GE Real Estate made a whopping 73 per cent profit on its initial $75-million investment, when it sold Anson House for $129.5 million, a year after purchasing it.

The 13-storey building, located at Anson Road, is now owned by a private property fund managed by Australia’s Macquarie Bank.

Analysts told Today the sale is a sign that in the booming local property market, price flipping – the practice of buying assets and quickly reselling them for a tidy profit – is expected to be the norm.

Mr Donald Han of property consultants Cushman and Wakefield said he is seeing scores of investors putting their money in prime spaces in the Shenton Way area because the potential gain from a sale could be huge.

“Many investors we know have the intention of keeping their assets for a minimum of two to five years because the Singapore office property market has climbed 90 per cent rental-wise and capital values have almost doubled,” said the managing director.

Foreign financiers eyeing office space in the financial district have no qualms paying anywhere between $1,800 and $3,000 per sq ft in rentals, he added.

The new owners of Anson House, for instance, are paying about $1,701 per sq ft for a net lettable area of 76,127 sq ft.

As Singapore’s economy grows, so will property prices, said Ms Ong Choon Fah, executive director of global estate advisers Debenham Tie Leung.

And these escalating prices could be a godsend to developers, she added. “As these new owners take over, these older sites may also be given a chance to rejuvenate through renovations and the like,” said Ms Ong.

Even though a supply glut is expected by 2010, it is unlikely to affect “high-grade buildings” in the financial district.

“Investors are buying into quality and location, so, if there is going to be an oversupply, they can still rent them out without much of an issue,” said Mr Han.

But one analyst disagreed.

“That really depends on how fast the economy is growing, but when the oversupply cover comes, we believe rents could face downward pressures,” said Mr Nicholas Mak, the director of research and consultancy at Knight Frank.

It may look like a quick way to make a profit, but Mr Colin Tan of Chesterton International argued that these big investors usually come into a market armed with an exit plan.

“These include things such as the number of years they’ve been holding the property, and once their targets have been realised, they would seriously consider selling their properties.”

Such was the case with the Anson House sale, said Savills Singapore’s director of marketing and business development, Mr Ku Swee Yong.

“But, we can’t use the word ‘flipping’ for the Anson sale because funds like GE Real Estate are in for the long haul. They had only one asset here, so, they couldn’t say no when the right price was offered to them,” he explained.

Flipping prices or not, will this constant buying and selling ultimately affect rents in the long run?

“In the next 30 months, right up to mid-2010, you can be sure that rentals would continue to go up at a higher rate,” said Mr Ku.

Source : Today – 26 Dec 2007

The Riverwalk for sale

An iconic redevelopment site at the heart of the CBD has been put up for sale.

Currently known as The Riverwalk, the 82,317-sq ft site is zoned for commercial use.

It has a gross plot ratio of up to 4.9, and has the potential to be redeveloped into an iconic commercial building with a gross floor area of about 403,351 sq ft, subject to approval and payment of development charge and land premium for the topping up of the lease.

Jones Lang LaSalle is the marketing agent for the site.

Source : Channel NewsAsia – 26 Nov 2007

Q3 office occupancy rate soars to 97.6% in Singapore

The strong demand for office space in the central business district has spilled over to the rest of Singapore.

According to property consultants DTZ, the occupancy rate for office space islandwide climbed to 97.6 percent in the third quarter.

This is largely because of an acute shortage of office space in the Central Business District (CBD).

DTZ says the shortage is due to the demolition of Asia Chambers Building and the alteration works being done at two office blocks, OUB Building and Ocean Building.

The office market saw a net loss of 455,000 square feet of stock in the three months to September.

Occupancy rates in Raffles Place rose by 1.1 percent from the previous quarter.

With higher asking rents and lack of office space in the CBD, many companies have flocked to the CBD fringe and decentralised areas.

This has boosted occupancy in these regions with the Alexandra area, for example, rising 3.5 percent to full occupancy.

Average monthly rents for Alexandra have increased by 13 percent to S$6.80 per square foot per month from the second quarter.

Another area, Novena, achieved 98.5 percent occupancy. – CNA/ch

Source : Channel NewsAsia – 28 Sep 2007

One North Residences

One North

Location: One North, Buona Vista (District 5)
Tenure: 99 years leasehold
Year of Completion: 2009
Development: 2 blocks of residential cum SOHO layout apartment with retails shops on ground floor
Total Units: 405

Unit Types (approx size):
1 bedroom ~ 560sqft
2 bedroom ~ 980 – 1250sqft
2 + 1 ~ 1100 – 1450sqft
3 bedroom ~ 1300 – 1700sqft
3 + 1 study ~ 1400sqft
4 bedroom ~ 1600sqft
Penthoue ~ 2000 – 3000sqft
SOHO – Duplex ~ 830 – 1250sqft
SOHO – Single Level ~ 500 – 700sqft

[youtube=http://www.youtube.com/watch?v=3vcamueeiBQ]

Facilities :
Swimming Pool, Clubhouse, Sky Garden, Sky Gym, Sky Pool

1 Nth Site Plan

Contact us at info@lushhomemedia.com or +65 9631 8037 for more information.

Lumiere @ Mistri Road

Lumiere

Lumiere is situated right in between the two exciting hotspots – Marina Bay Sands and Integrated resort at Sentosa, and is just a stone’s throw away from all the important financial institutions and professional centres in CBD. Exciting shopping centres and entertainment hubs are steps away with easy assess to MRT (Tanjong Pagar Station) and bus transportation system.

A north-south orientation allows for full-height glass and/or bay windows, increasing natural light and creating opportunities for residents to take advantage of natural ventilation. Lumiere’s layout of every unit is specifically designed for dual usage. Layouts are very flexible and easily converted to office or a SOHO to suit individual’s requirements.

Location: Mistri Road (District 1)
Project description: 45-storey block with 6 1/2-storey podium carpark, commercial on 1st storey recreational facilities on the 8th floor and sky garden on the 34th floor
Tenure: 99 years leasehold
Site Area: about 15,000 sqft
Expected Completion: 31 Dec 2011
Residential Units: 168
Studio ~ 506 to 560 sqft
1-bedroom + study ~ 624 to 775 sqft
2-bedroom ~ 969 to 1238 sqft
Shop Units: 4
Units Per Floor: 5
Facilities:
Infinity Pool (20m)
Jacuzzi
Tennis Court
Basketball Half Court
Floating gym
Multi-Function Room
Star Gazing Deck
Floating Lounge
Sky viewing garden on the 34th floor
Wireless connection on recreational deck and sky garden

A full range of appliances are provided including hood, hub, fridge, washing cum dryer and microwave oven; and every kitchen is designed in a clean one-line manner to enhance a modem clean touch at the same time allowed for flexibility. Situated near the coast line, every unit comes with at least one balcony. This is a special design feature which allows residents to enjoy the view of the tranquil sea. For the office users, it is a unique element which is rare in traditional office environment.

Lumiere is the first approved project in CBD by URA under the new lighting scheme (Light Up our City Centre). The 45-storey tower is a spectacular building to look at, illuminated at night with colourful LED lighting hence its name “Lumiere” (light in French). Lumiere is specifically designed to create an environment which suites the dual usage – office / home or both.

Contact us at info@lushhomemedia.com or +65 9631 8037 for more information.

SOHO @ Central

SOHO @ CentralCentral is an upcoming landmark development located above the Clarke Quay MRT station within the Central Business District.

Pioneering a new live, work, play concept, SOHO at Central, comprising two towers with a total of 227 Small Office Home Office units, has captured the imagination of the Singapore and regional markets. Ninety per cent of the 115 units released have been sold ahead of an official launch campaign in Singapore.

The development’s popularity can be attributed to its much sought-after combination of compact spaces in a high-class development with excellent transportation connectivity. It also has the added attraction of a scenic location by the historic Singapore River.

Developer: Far East Organisation
Location: Eu Tong Sen Street (District 1)
Tenure: 99 years
Year of Completion: 2007
Total Units: 227
Type of Unit: 1 bedroom (581–872 sqft)
Facilities:

  • Lap pool
  • Jacuzzi
  • Gym
  • Outdoor spa
  • Sky gardens
  • Covered car park

An Attractive Investment

Central’s unique location by the historic Singapore River on top of the Clarke Quay MRT station places the development at the heart of a fast-growing market within the city. Says Ms Soon Su Lin, Executive Director of CB Richard Ellis, “SOHO at Central should achieve higher rental rates than standard office space as there is no other new office building above an MRT in the city with units of 600 sq ft. In addition, it has the flexibility for residential use. We believe that a net yield of six per cent is achievable for these SOHO units as compared with the four per cent return from typical strata-titled office units.”

SOHO at Central with most of its units in the 635 sq ft size range, offers a very attractive investment option for investors and owner-occupiers alike. About half of the buyers are investors, the rest are business occupiers in professional fields. Over 50 per cent of the buyers are foreigners from China, Hong Kong, Indonesia, Japan, Malaysia and Taiwan, the balance are Singaporeans.

A Revolutionary Lifestyle

SOHO at Central presents the only purpose-built home offices in Singapore. The development offers a prestigious business address with full flexibility in commercial usage. Each unit comes with quality home finishes, fully-fitted bathroom and a compact kitchenette. Owners can use the units for the dual functions of office and residential living or for the exclusive use of either purpose without the need for additional approvals from the authorities.

Each unit’s innovative workspace can be turned into cosy living spaces instantly. The high four-and-a-half metre floor-to-floor height coupled with column free space give 40 per cent more volume compared with that of a similarly sized typical office unit. Owners have full flexibility to maximise this voluminous usable space through the use of creative interior design ideas and layout planning.

Central is the first development in Singapore to integrate the diverse functions of real estate – habitation, lifestyle, business, community and transportation connectivity – within one complex. Designed for a population of 10,000 occupants, it will have two towers of SOHO units, a 25-storey office tower, a retail podium with riverfront F&B outlets, a sky garden and recreational facilities, full public amenities and a community hub.

Seamless Connectivity

The epicentre of a thriving community, Central is surrounded by an educational enclave comprising the new city campuses of Singapore Management University, LaSalle–SIA College of the Arts, and other private educational institutions in the Selegie and Bras Basah areas. An estimated 40,000 students and teaching academia, including 10,000 foreign students whom Singapore expects to attract, will study and work in the vicinity of Central.

About one kilometre away are major banking institutions in the Central Business District with a working population of 50,000. Along the Singapore River, there will be 25,000 residents living inupmarket homes. Currently, this area is popular with expatriates from Indonesia and Japan.

Central is seamlessly connected to historic Chinatown, the civic district, the arts and cultural district made up of museums, galleries and the Esplanade, as well as the entertainment belt of Clarke Quay, Boat Quay, Mohammad Sultan Road and The Fullerton Singapore.

When completed, Central is set to invigorate the landmark Singapore River by infusing a new vibrancy into the area treasured for its rich historical background and architectural and business heritage. It is a key node that will contribute to making Singapore’s city centre more distinctive and memorable.

Contact us at info@lushhomemedia.com or +65 9631 8037 for more information.

Southbank

SouthbankRevel in the adventure of surprises and options right at your doorstep. Located in the inner city, indulge in a lifestyle that has never been so perfectly complemented with relaxed waterfront living.

Get into the Central Business District with just 3 stops away from Lavender MRT Station and minutes drive away to tee off at the future Marina Bay Golf Course. Southbank is also conveniently located next to the Nicoll Highway and near to East Coast Parkway. Being just next to the Kallang Basin and having a seamless connection to Marina Promenade, expect infinite excitement and fun-filled weekends with roller blading, cycling or kayaking by the river.

Standing tall at 40 storeys, Southbank comprises 194 residential apartments, 3 penthouses and 60 SOHO units complete with 16 retail outlets. Southbank also offers picturesque and breathtaking panoramic views of Kallang Basin, Tanjong Rhu and the city.

Developer: Kings & Queens Development Pte Ltd
Location: North Bridge Road (District 7)
Total Units: 257
Expected Completion Date: 2010
Tenure: 99 years w.e.f 27/6/2006

Type of Units:

  • Residential
    • 1 room (54 units) 592-614 sqft
    • 2 rooms (112 units) 904-969 sqft
    • 3 rooms (28 units) 1313 sqft
    • 4 room penthouses (3 units) 3251-4155 sqft
  • SOHO
    • Single storey (25 units) 463-915 sqft
    • Duplex (30 units) 883-1593 sqft
    • Duplex with roof garden (5 units) 883-1593 sqft
  • Retail (16 units)

Facilities:

  • 40m Lap Pool
  • Children’s Pool
  • Spa Pool
  • Reflective Pond
  • Water Feature Walls
  • Changing / Shower Rooms
  • Steam Rooms
  • BBQ
  • Gymnasium
  • Function Room
  • Sun Lawn
  • Sun Deck
  • Courtyard Garden
  • Children’s Playground

Living in the inner city, Southbank is close to the buzz of endless entertainment in Bugis Junction, Suntec City and the Marina Centre.

Contact us at info@lushhomemedia.com or +65 9631 8037 for your rental or sales needs.