Tag Archives: Orchard Road

Malaysian Developer Bought 1 Draycott Park for $72M

A unit of Malaysian property developer Selangor Dredging has bought a prime freehold residential plot in the plush Orchard area.

Champsworth Development (50 % owned by SDB International, a subsidiary of Selangor Dredging) paid $72 million for 1 Draycott Park. The sale price includes a development charge of about $15.3 million, translating to about $1,787 per sq ft per plot ratio, for the 17,442 sq ft site.

The developer purchased the land via private treaty from Ms Seow Ai Ling and Mr Tang Wee Houe who is an architect.

The developer said it was considering building “exclusive mid-rise apartments” on the site, which now has a seven-storey block built in the 1990s, with eight apartments ranging from 860 sq ft to 6,200 sq ft. The site, zoned residential, can be redeveloped up to 36 storeys high.

The site is in the residential enclave of Claymore Hill and Ardmore Park, near the Tanglin Club and American Club, which is also within walking distance of Orchard Road.

The purchase will be 30 per cent paid for with internal funds and the rest with bank borrowings. The break-even price for the new development is expected to be between $2,700 and $2,800 psf.

One Tree Hill Gardens sold for S$65m

Lum Chang Holdings Limited is acquiring One Tree Hill Gardens for S$65 million, below the owners’ asking price of S$72.8 million. This is the first collective sale for this year. This collective sale translates to a land rate of S$1,664 per square foot (psf), based on the site area of 3,629.1 sq m (39,063 sq ft). The transaction is subject to approval from the Strata Titles Board.

The site is located at the junction of One Tree Hill and Jalan Arnap. It enjoys easy access to Orchard Road, and is within 300 m from the upcoming Orchard Boulevard MRT station along the Thomson-East Coast Line. The Lum Chang Group intends to redevelop it to residential landed homes for sale.

TripleOne Somerset office for sale

TripleOne Somerset – in Somerset Road – is a prime integrated development with two premium-grade office towers and a retail podium next to Somerset MRT station.

A $120 million renovation is under way to enhance the retail offerings, incorporate medical suites, and spruce up the office lobby and common areas.

All of the seventh floor of Somerset Tower in TripleOne Somerset has been put up for sale for about $41.56 million via an expression of interest. The rare offering of an entire floor of 15 office units in the premium Orchard Road area is expected to attract keen interest from investors.

The indicative price translates to about $2,650 psf for the 15,683 sq ft space. The refurbishment work for the office space on the seventh floor will be completed in May.

TripleOne Somerset has a lease of 99 years, starting from Feb 19, 1975. Office tenants at the property include luxury fashion and lifestyle brands such as Gucci, Bottega Veneta, Samsonite and Bell & Ross.

The expression of interest exercise closes on April 7.

Scheme for underground links in Orchard Road

Urban Redevelopment Authority (URA) has scheme that provide cash grants for malls to build underground links along Orchard Road. The incentive started in 2004 and gives up to $28.7k psm for the construction of underground walkways. However there are little take up for the incentive. The biggest obstacle cited is cost, among other challenges.  Another challenge is the fear among malls that the links will allow flow to competitors.

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Hiap Hoe sells entire condo to parent firm

A downbeat property market has led to the sale of a high-end condominium project at a lower price.

Developer Hiap Hoe is selling its entire luxury condominium in Balmoral area near Orchard Road to its controlling shareholder Hiap Hoe Holdings.

The latter, which owns 69.85 per cent of mainboard-listed Hiap Hoe, is buying all 48 units of Treasure on Balmoral for $185 million or about $1,789 per square foot for the 103,439 sq ft strata area development.

Hiap Hoe said in a statement that its attempts to sell the units have been made even more challenging by the several rounds of cooling measures introduced by the Singapore government which have dampened the local property market.

– See more at: http://www.straitstimes.com/news/business/companies/story/hiap-hoe-sells-treasure-balmoral-controlling-shareholder-185m-20141208#sthash.y7UpygYi.dpuf

Treasure on Balmoral

7th most expensive retail rents in Asia Pac: Orchard Road

Singapore remains an attractive destination for international brands and new labels to set up shop, despite steep rents and tough operating conditions, property consultancy Colliers International said on Tuesday.

Still, brick-and-mortar retailers are feeling the heat from the competition posed by e-commerce firms, rising costs, a tighter labour supply and shrinking profits, it added in a report on a study that had looked at 125 retail real estate markets in 50 countries.

Retail rents in Singapore were one of the 10 most expensive in Asia Pacific, coming in seventh place at US$348 per sq ft (psf) a year, the study found.

This was down a spot from its sixth place last year, when retail rents were steeper at US$355 psf a year.

Rents for retail space in Hong Kong’s Queen’s Road Central were the costliest in Asia Pacific and second most expensive in the world at US$2,073 psf.

Monthly gross rents in the prime shopping belt of Orchard Road were mostly unchanged in the past year at $36.25 psf, just slightly down from $36.38 a year ago.

“Despite the demand for space by new stores and food and beverage outlets, the retail environment is challenging due to rising costs, shrinking profits and a tight labour market,” said Ms Chia Siew Chuin, director of research and advisory at Colliers.

But more chains have made their way into Orchard Road the past year, opening shops such as Adolfo Dominguez, Etam, Cath Kidston and Cos.

Mr Simon Lo, executive director of resaerch and advisory, Asia, at Colliers, said that Asian retailers have been competing with the increasing popularity of online firms. But top-tier brands will remain in core city areas, where the supply of new retail space is limited in cities like Seoul and Singapore. This will result in the mid-range labels moving out to decentralised areas, he said.

In Singapore, more suburban malls are expected to open their doors to shoppers over the next year. This includes Waterway Point in Punggol, which has an estimated net lettable area (NLA) of 344,370 sq ft, and Big Box in Jurong East, with an NLA of 260,000 sq ft.

Monthly gross rents for prime retail space on the ground floor in city-fringe malls were $24.35 psf as at Sept 30, up from $23.39 psf a year ago. In the suburban regional centres, monthly rents were $33.72 psf, up a touch from $33.46 a year ago.

“Malls in Orchard Road are facing increased competition from malls in other districts including those in the suburban and regional areas, which enjoy a captive and ready shopper catchment,” said Ms Chia. “These malls have proven to be resilient in performance, largely due to this advantage and their close proximity to MRT stations.

Worldwide, New York’s Fifth Avenue has the most expensive rents at US$3,550 psf each year. Hong Kong’s Canton Road was in third place at US$2,011 psf per year.

– See more at: http://www.straitstimes.com/news/business/property/story/retail-rents-singapore-7th-most-expensive-asia-pacific-colliers-2014111#sthash.V6P5b7x1.dpuf

Hiap Hoe snaps up unsold condo units

TWO bulk purchases of units on the top floors of Skyline 360° at St Thomas Walk and Signature at Lewis condominiums have raised eyebrows over the basement pricing – and the fact that the developer itself has bought them.

Listed developer Hiap Hoe swept up remaining units at both luxury developments through a wholly-owned company last month, disclosures filed with the Singapore Exchange showed.

Units on the highest floors of a project almost always command a premium, yet the pricing is lowest for any level in the projects.

HH Residences, a unit set up in April, had snapped up five units at the 61-unit Skyline 360º condo in River Valley for $35 million from Bukit Panjang Plaza, another Hiap Hoe subsidiary.

This works out to $1,574 per sq ft (psf) based on a total area of 22,238 sq ft – well below the low pricing of $1,630 psf for a 2,131 sq ft unit sold in August 2009, caveats lodged with the Urban Redevelopment Authority showed.

A 4,015 sq ft penthouse unit on the 35th floor had set a record high for the condo in April 2012 when it sold for $10.07 million – or $2,508 psf. The units in the bulk deal were a 6,523 sq ft “super penthouse” on the 36th floor and four other 3,929 sq ft penthouses on the 31st to 34th floors.

HH Residences also picked up two penthouses on the 12th and highest floors of a smaller freehold project, Signature at Lewis, in Lewis Road. The units were bought for $7 million – or $1,071 psf – from another Hiap Hoe unit, Guan Hoe Development. One unit is 3,444 sq ft while the other is 3,068 sq ft.

The pricing falls below the lowest price of $1,227 psf set in January 2010, for a 1,841 sq ft unit.

Hiap Hoe told SGX the acquisition was “in connection with an internal restructuring exercise” but declined to elaborate when contacted by The Straits Times.

Penthouse units, particularly those in the posh districts, have lost their shine.

Buyers have shied away from the sizeable price tags that come with the large units given stringent mortgage rules and the additional buyers’ stamp duty (ABSD).

Market watchers said that while such deals are not unprecedented among local developers, it is not a common practice either.

Developers that have made similar moves include City Developments, which bought 44 units at Cliveden at Grange from joint-venture partner Wachovia for $2,956 psf on average in December 2012 – a discount of about 20 per cent from what Wachovia paid in 2007.

A recent bulk deal for 12 apartments at Grange Infinite, another luxury condominium in the city centre, was made at an average of about $2,100 psf.

The sale included 11 four-bedders ranging from 2,560 sq ft to 2,700 sq ft and a penthouse of 6,039 sq ft.

An ABSD of 15 per cent was likely to be levied on the bulk deals, so experts said that could have resulted in a smaller net discount for Hiap Hoe. Also, the discounts might not lead to lower stamp duties, which are typically based on property valuations, but they would still lower the overall cost of buying the units.

Skyline 360º got its temporary occupation permit on Sept 28, 2012, while Signature at Lewis was completed on Oct 3, 2011, said Hiap Hoe. Fines are imposed if a developer fails to sell all the apartments in a project within two years of completion, under Qualifying Certificate rules.

However, Mr Donald Han, managing director of Chestertons, pointed out that it is within reason and a routine practice for developers to offer discounts for large units and bulk purchases, especially in a falling market where few are willing to stump up huge sums of cash.

“It makes sense to apply the same discount for bulk deals to a related party,” he said