Finally the long waited for Ei8ht Raja by Popular land is launched. It is likely that Popular Land would not like to hold back longer after the cooling measures by Government in end Aug.

Situated off the Jalan Rajah, and adjacent to many CDL newly launched projects & Far East Vista Residences, Right Raja may be preferred by many as it is tucked away from the main road, therefore the noise and dust pollution is not much of concern. Popular Land is launching the development of only 26 units at $1350 psf, which I thought a reasonable pricing given its finishes and exclusivity. The wardrobes and kitchen cabinets are by Mu Dian, bathroom fixtures by Azzurra of Italy and Steinberg of Germany, while the kitchen appliances are by Gaggenau. These are relatively much higher ranking and positioning in relation to the recently released Thomson 368 and Cube 8 by CDL.

The development is made up of spacious 2 and 3 bedroom apartments plus study, 1560 and 2023 sqft respectively. This unit areas are pretty rare in today’s market with the high pricing per sq foot.

I enclose some of the interior shots for your perusal. Should you be interested in the development, do give me a ring so we could make arrange to the sales gallery at 18 Shelfod Road.

With the series of cooling measures introduced lately by Government, we expect to see more caution from developers in their land bidding. However freehold prime sites with sizeable areas are difficult to come by nowadays, therefore the recent enbloc at Pastoral View is going stir interest in some mature and sophiscated buyers if the selling prices of the residential units are priced right.

Pastoral view site is a prime site with its freehold title, with its proximity to Novena shopping malls and MRT station. In addition the 2 freehold sites have a combined land area of 51,395 sq ft which offers greater variety and economies of scale in the development. Therefore the unit land price of $847 psf ppr is relatively attractive. If the developers are able to work out less than $500 psf for the construction cost inclusive of professional fees and miscellaneous, Far East & OPH can easily fetch the project at expected $1800 psf with a fat attractive 33.3 % profit margin.

Far East, Orchard Parade buy Bassein Road residential plots

FAR East Organization and its listed unit Orchard Parade Holdings have clinched their second residential development site this week. The duo will buy Pastoral View (through a collective sale) and the next door plot being sold by OCBC for a total of $122 million.

This works out to a unit land price of about $847 per square foot per plot ratio (psf ppr) inclusive of a marginal development charge (DC) payable for OCBC’s plot at 11 Bassein Road. No DC is payable for Pastoral View, at 7 Bassein Road. The two freehold sites have a combined land area of 51,395 sq ft and can be redeveloped into a new condo with about 140 units averaging 1,000 sq ft. The District 11 properties near Novena MRT Station are zoned for residential use with a 2.8 plot ratio and 36-storey allowable height under Master Plan 2008.

Market watchers estimate the breakeven cost for a new condo on the site could be around $1,300 psf. In July, City Developments released its 368 Thomson freehold condo at an average price of about $1,350 psf.

‘The raft of cooling measures introduced by the government has resulted in some developers turning cautious but many are still keen on prime freehold land parcels with good attributes that are difficult to come by,’ said Tan Hong Boon, deputy managing director of Credo Real Estate. The company handled the sale of the two properties through a tender which closed last month, attracting a handful of submissions.

Credo did not give a split of the $122 million between Pastoral View and the plot sold by OCBC. However, Mr Tan said Pastoral View’s reserve price has been met. Pastoral View’s sale is subject to approval of the Strata Titles Board as owners’ unanimous consent has not been secured. Owners of Pastoral View’s 50 units stand to receive gross sale proceeds ranging from slightly over $1 million for studio apartments to $4.37 million for the penthouse. These sums are 80-90 per cent more than what the units would have sold for individually, according to Mr Tan.

Earlier this week, Far East and OPH clinched a 99-year leasehold plot at Jalan Eunos at a state tender on which they plan to develop a five-storey condo project that will incorporate some townhouses. Their winning bid of $414.57 psf ppr was 26.5 per cent above the next highest offer.

OPH said yesterday it will be taking stakes of 20 per cent in the Jalan Eunos site and 30 per cent in the Bassein Road properties.

Source : Business Times – 10 Sep 2010

Melrose Court sold for S$44m in en bloc sale

Melrose Court in Balestier has been sold for S$44 million in a collective sale.

The 32-unit residential development at No.10, Lorong Limau was sold to local boutique developer Melrose Land.

The property’s broker, Colliers International, says that Melrose Court is not linked to Melrose Land and notes that the sale is subject to the approval of the Strata Titles Board.

The freehold residential site has an area of 23,789 square feet.

Under the 2008 Master Plan, it has a gross plot ratio of 2.8.

Including the development charge of about S$277,235, the sale price translates to a land price of about S$665 per sq ft per plot ratio.

Colliers International says that upon approval, each owner is expected to receive gross proceeds of some S$1.129 million to S$2.261 million from the sale, depending on the size of their unit.

It also says that the site could accommodate a residential development of up to 36 storeys, comprising some 88 units of 830 sq ft each.

Source : Channel NewsAsia – 1 Sep 2010

Therefore CDL must be very pleased that they have fully launched all developments at the Balestier and Thomson area before 31^st Aug 2010, the date that the measures are made effective. However it is not so to Popular Holding Ltd owning 2 plots of lands at the same area. Popular Holding targeted to launch its project, 8 Raja, later this year, consisting of 2 parcels of land at No. 8 Jalan Raja Udang, and 15 Jalan Datoh. In year 2007, Popular purchased all the strata units at View Point at Jalan Datoh  for $16.5mil and at Shiba Apartments at Jalan Raja Udang for $15.5 mil. For a company with household name that best known for its bookstores and schoolbooks, the venture into Singapore property has been viewed as rather testing and risky. We will see if the launch schedule will be as planned, or like several project launches, which have been delayed till hthe dusts have settled down.

In the tucked away prestigious district 11 along Gilstead Road, it lies the exclusive development Gilstead Brooks design by the award winning WOHA architect. It is a 28 unit cluster housing project of modern Zen style terraced house. They are built with four spacious bedrooms and underground private garage for two cars. Each house is also equipped with three bathrooms, a Jacuzzi, a study and storage room. Its unique terrace-like landscape gives every home owner the convenience and a little privacy of enjoying the luxury of swimming in the communal pool which is just several steps away from the door.

The town houses are arranged around a flourishing beautiful central garden, overlooking swimming pool. Lush, terraced landscaping and sparkling, babbling brooks provide a visual delight while the delicate foliage of tropical trees create privacy and dappled shade. Planters and features walls designed to enhance and extend living spaces, together with the shimmering water from the 27m feature swimming pool forms the centre of the development.

There is currently one beautiful unit available with area 3068 sf, asking for $3.3 mil. Should you be interested in viewing the unit, or unit owners wishing to engage my service, welcome to contact me at 9681 7684.

In today’s sellers’ market, many of house owners are considering selling the houses at good price, trying to match the successful launches nearby. However I do sense signs of resistance in resale market from buyers, especially in older developments asking close to nearby new launched projects prices.

I understand all buyers would like to sell a price a notch higher than the market value, especially with the current market moving upwards. There is an expectation that I will try to manage in guiding the right selling price that all sellers should have. In order to sell your house at a good price within a reasonable time frame, you should be looking a fair market value that an informed buyer will pay.

Other than giving a Comparative Market Analysis (CMA) of your house, I would give you some realistic figure based on the latest market performance in terms of current interest rates, the rental market, and other updates that will affect your selling.

All sellers want to fetch the best pricing in selling their houses, yet minimizing the frustration and stress along the way and facilitating the process smoothly and shortly are equally critical.

Other than the pricing being important, the other key is to give yourself as much time as possible in selling. It would open up to more offers. The realistic average time one should aim at is 90 days, very much depending on your asking price, house location and condition.

CLOSING THE DEAL

When it comes to negotiating a deal, I will make sure my clients are thinking clearly when accepting an offer or objecting an offer thinking the other party will counter offer. Let’s state one scenario:

In the first weekend of the openhouse, we have a first buyer making an offer just $10k below the asking price. It makes you so positive about your house worth and the uprising real estate market that you counter with $10k above the listing price. The buyer is annoyed that you do not adhere to the listing price and walk away.

Thinking that the 1^st buyer already making offer close to your listing price, you decide to stick on to $10k above asking and waited. Of course that is always a chance that you get a full priced offer on the next day, however there also stand a possibility that you end up the only one offer you receive in the next 2 months.

I make sure that all specific scenarios and offers are being put into perspective for all sellers, that may most of time save the frustration and annoyance in salvaging a deal that you should able to close smoothly.

Do drop me a note if you have query in selling your house. I will try to reply within 3 days. If not, you are welcome to call me anytime at my hp 9681 7684.

The main Balestier Road has retained some of its charm with the presence of the Tua Peck Kong temple, Balestier Market and Food Centre, shophouses selling lighting fixtures and other home fittings, as well as popular eateries such as the famous tau sar piah shop, the Founder Bak Kut Teh Restaurant, the bak chor mee stall and Boon Tong Kee chicken rice restaurant. The greatest transformation, however, is happening on the side roads off Balestier Road, for instance on Bhamo, Mimbu and Mandalay Roads. Many of the old apartment blocks have made way for new condominium towers, with some newly completed and others at various stages of construction.

The biggest agent of change in the Thomson Road-Balestier Road neighbourhood has been giant developer City Developments Ltd (CDL), which snapped up a cluster of eight collective-sale sites in 2006/07, and has since launched and fully sold three new larger projects on those sites, starting with the 336-unit The Arte early last year, and most recently, 368 Thomson, which was fully sold as at end-July.

Each project has been launched at successively higher prices. For instance, The Arte is a redevelopment of the former Lok Cho Apartments, Comfort Mansion and a walk-up apartment block along Jalan Raja Udang, just off Balestier Road. When it was launched in early February last year, sentiment in the property market was still rather cautious and CDL initially priced the project at an average of S$880 (RM2,053) psf. Units at The Arte have been changing hands at S$1,000 to S$1,250 psf in sub-sales in the last two months, according to caveats lodged with URA.

Meanwhile, the 177-unit Cube 8 (to be located on the site of the former Albany and Thomson Mansions) was launched and fully sold early this year, at an average price of S$1,250 psf. The latest launch in the vicinity was the neighbouring 157-unit 368 Thomson, a redevelopment of the former Concorde Residences, Balestier Court and Bright Building. Since VIP previews began on July 9, the project has been fully sold at an average price of S$1,400 psf, with most of the units snapped up during the first few days.

The success of CDL’s projects at the Thomson end have certainly contributed to the hype and boosted prices of projects in the Balestier neighbourhood. Since the start of the year, a handful of collective sale sites have been put on the market, with three transacted successfully. The first collective sale transaction of the year was 6 Jalan Ampas, an industrial building jointly sold by the owners for S$27.5 million in February. The other collective sales were Diamond Tower at Jalan Rajah, which was sold to boutique developer EL Development for S$49.6 million in April; and Goodwill Mansion, along Balestier Road, for S$20 million.

What’s adding to the buzz in the Balestier neighbourhood is a circular sent out by URA in July 2008, which said it had completed the review of 15 industrial buildings in the Jalan Ampas and Lorong Ampas neighbourhood and deemed that this cluster of buildings could be rezoned for residential use at a gross plot ratio of 2.8 upon redevelopment. “Following the announcement, the global financial crisis came, so the owners couldn’t do anything about it because nobody wants to sell at the bottom of the market,” notes Tan Hong Boon, deputy managing director of Credo Real Estate.

But, things are looking up now. “Such sites have attracted new entrants, mainly the small- to medium-sized developers, and the contractors-turned-developers,” says Ho Eng Joo, executive director of investment sales at Colliers International.

Global Orion’s maiden residential project will be a redevelopment of the old industrial building at 6 Jalan Ampas purchased for S$27.5 million in February

One such player is Indonesian Satia Narjadin, managing director of Global Orion Properties, who purchased the site at 6 Jalan Ampas in his maiden foray into residential development in Singapore. The sale was brokered by Credo Real Estate. The 38-year-old Narjadin, who runs the family-owned business, had decided to focus on Singapore since 2006, developing three strata-titled industrial projects, two of which have been launched with units sold to investors or business occupiers. The company’s maiden project was i-Lofts@Changi, a three-storey building with terraced units; and the second was the 654-unit Northstar@AMK, located at the corner of Yio Chu Kang Road and Ang Mo Kio Avenue 5. Next month, the latest industrial project will be launched in Pasir Panjang. Called Meissa, it is near Mapletree Business City and across the street from the upcoming Pasir Panjang MRT station.

“We want to ensure that, just like all our industrial developments, our residential project will also have a distinctive address,” says Narjadin. His idea is that the project will be modern and sleek, with full-height glass — an orientation that will allow every unit to enjoy an unobstructed view of the city.

The newly completed 336-unit The Arte at Thomson has seen units changing hands in sub-sales at S$1,000 to S$1,250 psf in the last two months

Global Orion paid S$27.5 million for the 27,838 sq ft freehold site and will be paying an estimated S$18.7 million in development charges to have the site rezoned for residential use. Inclusive of the development charge for the conversion of use from industrial to residential, as well as construction costs, Narjadin estimates that the total cost of the project could amount to S$80 million. The site can be redeveloped into a residential tower of about 100 units and up to 36 storeys.

He says: “The whole area [Balestier] is undergoing a transformation and, owing to its proximity to the Novena and the city area, it’s benefiting from a spillover effect. That’s why we decided to focus our attention on this site.”

Given that the project is just a short driving distance to both Orchard Road and the CBD via the Pan Island Expressway and the Central Expressway, Narjadin foresees the project will appeal to singles and young couples because of its central location. Thus, he intends to build largely one- and two-bedroom units. “While our units are not large, we still want to give buyers the luxury of space,” says Narjadin. The one-bedroom apartments will be around 500 sq ft, and the two-bedroom apartments will measure 800 sq ft, he adds.

Narjadin has appointed renowned Singapore-based architectural firm Ong & Ong Architects to design the project and execute his vision. Founded by the late former President Ong Teng Cheong and his wife, Ong & Ong is now helmed by their son, Tze Boon, who is now chairman. The firm has designed some significant condominium projects in Singapore in recent years, including CDL’s 910-unit City Square Residences, adjacent to the City Square shopping mall with 700,000 sq ft of retail space; the 315-unit Raintree by developer Frasers Centrepoint, located at the foot of Bukit Timah Hill Nature Reserve; and the 646-unit Icon in Tanjong Pagar by Far East Organization.

Narjadin is familiar with the Balestier neighbourhood, having been educated in Singapore and attended Bartley Secondary School. “Yes, I grew up here,” he says. “When I was in secondary school, I had a lot of friends who lived in the old apartments on Moulmein Road, some of which have probably been torn down and redeveloped.” Narjadin is looking at buying the penthouse in his development when it is launched early next year.

Left: The first phase of the 65-unit D’Mira was launched in May, with 21 of 32 units released sold at an average of S$1,100 psf. Right: Artist’s impression of BS Capital’s upcoming residential project, a redevelopment of the Colourscan Building at Lorong Ampas-Kim Keat Road

Another new entrant in the Balestier neighbourhood is BS Capital, which also picked up an industrial building, Colourscan Building, at the corner of Lorong Ampas and Kim Keat Road, for S$36 million. URA has already approved the rezoning of the site from business to residential use with a plot ratio of 2.8, which means a 20-storey residential project can be built there. The price tag works out to S$670 psf per plot ratio (ppr) for the 32,544 sq ft freehold site, assuming an estimated development charge of S$25 million. Colliers’ Ho brokered the sale.

BS Capital appointed renowned architectural firm Palmer & Turner Architects (the same architect for its recently completed Lumiere on Mistri Road) to

Left: Soilbuild Group’s recently completed 151-unit Montebleu was launched in March 2007 at an average of S$980 psf. Most recently, sub-sales in June and July have ranged from S$1,290 to S$1,380 psf.

design its project at Kim Keat Road, a 160-unit development that will also be made up largely of studios and one- and two-bedroom apartments. “While the design will be a blend of contemporary and traditional, given the location, the units will be user-friendly,” says BS Capital CEO Chin Teck Chuan.

To him, a user-friendly size for a studio apartment is about 400 sq ft, while one-bedroom apartments should be a comfortable 500 sq ft and two-bedroom apartments 700 sq ft. “We want to pitch our project as a mid-tier city fringe development, something that people can aspire to upgrade to, or downsize to,” he adds. “People are increasingly recognising that they don’t have the luxury of space anymore in Singapore, and even HDB flats have shrunk over the years.”

EL Development, the property development arm of construction group Evan Lim & Co, which purchased Diamond Tower, is also a new kid on the block in the Balestier area. It has developed projects in the prime districts, including the 32-unit Stevens Suites, which was launched in June, as well as Illuminaire on Devonshire, which was sold out within three days of its preview last year. The developer paid S$49.6 million for the site and intends to build a 108-unit project of 30 storeys there. Based on today’s construction prices, the quantum price paid translates into a breakeven price of S$1,200 psf.

“We want to create a product that’s different from the surrounding developments,” says Lim Yew Soon, managing director of EL Development. He is entering the neighbourhood because land prices in the area are still affordable compared with that in the prime districts, which “are now very high”, he says, “and will put a strain on affordability unless you build very small units.” He intends to build regular-sized one-, two- and three-bedroom apartments in his new project, targeted at both HDB upgraders as well as private property dwellers. He expects to launch it in 1Q2011. It terms of pricing, it could be around S$1,400 psf, which is “the new price benchmark set by 368 Thomson”, he adds.

New completions, pricing differential

Some of the old conservation shophouses and Balestier Plaza along Balestier Road

Since last year, a handful of new developments has been completed in the Balestier area. Along Irrawady Road, there is the 53-unit The Centrio by Soilbuild Group, which was completed last September and is fully sold. The project was launched at an average price of S$1,025 psf. The most recent resale was in June, when a unit changed hands for S$1,056 psf and another went for S$1,264 psf. The most sub-sales were seen just after completion in January, when units changed hands at S$1,080 to S$1,209 psf.

Another Soilbuild project that was recently completed is the 151-unit, 34-storey Montebleu on Mimbu Road, which is also fully sold. The project was launched in March 2007 at an average price of S$980 psf and, most recently, sub-sales in June and July have ranged from S$1,290 to S$1,380 psf. A major player in the Balestier neighbourhood, Soilbuild also launched the 127-unit The Mezzo (the former Ruby Plaza) in March last year, and to date, all the units in the 28-storey tower have been sold.

Nearby on Mandalay Road is The Axis by Novelty Group, a 52-unit project that was recently completed and is fully sold. Prices may have started in the S$800 psf range in 2007, when units were first released, but the most recent resale of units for April and May have been at S$1,034 to S$1,141 psf.

Another project that was completed last year is the 180-unit twin tower Pavilion 11 by UOL Group. In the resale market, the high-floor units are commanding S$1,300 to S$1,350 psf, while low- to mid-level units have changed hands at S$1,151 to S$1,292 psf. Pavilion 11 is closer to the Novena area near the medical cluster, and is considered to be in prime District 11.

Boutique developer Roxy-Pacific Holdings is another major player in the Balestier area. Construction is underway at two of its projects, Nova 48 and Nova 88, which are one street apart from each other. The former is on Prome Road and the latter, launched early last year and fully sold, is on Bhamo Road, next to the Balestier Market. The company’s project in the Balestier neighbourhood that was recently completed is Marque@Irrawady, where all units except the penthouse have been sold.

Launched in mid-2007, units were sold at an average of S$1,000 psf. The most recent transaction was the sub-sale of a 16th floor, 1,690 sq ft unit that was sold for S$1.6 million, or S$947 psf.

Keith Yip, a specialist real estate agent in the Balestier neighbourhood, says demand for resale apartments in the area in recent months has come mainly from beneficiaries of the old projects in the en bloc sales. “While there’s interest, transaction volume has been thin as even sellers of the older projects are asking for prices of S$1,000 psf, and buyers are holding back,” Yip observes. Most of these people have lived in the Balestier area for many years and want to continue to live in the same neighbourhood. “So, they tend to look for older projects where units are larger than the new developments,” he adds.

‘Spillover demand’ from Thomson Road and Novena area
There is spillover demand from the Thomson Road area, where the most recent transaction at the recently completed Sky@Eleven hit a high of S$1,530 psf, notes Yip. At the other end of Balestier in the Novena enclave near the MRT, units at Frasers Centrepoint’s 417-unit Soleil@Sinaran recently sold at a median price of S$1,750 psf. “In comparison, most of the new projects in the Balestier area are S$1,000 to S$1,200 psf,” he says.

In the Newton area, directly across from Novena Square and the MRT station, is Newton Suites by UOL Group, which was completed in 2007. The owners are already asking for S$2,000 psf for their units, with most recent transactions in May at S$1,842 to S$1,850 psf. At the 175-unit Lincoln Suites, located just next door to Newton Suites, which was launched last year, the most recent transactions ranged from S$1,833 to a high of S$2,627 psf, according to caveats lodged in June.

Recently, there has also been a rise in rental inquiries in the Balestier area, notes Yip. Most are from tenants in the Newton-Novena area who are looking at new units in the relatively cheaper Balestier area. For instance, a two-bedroom apartment in Balestier can command monthly rental rates of S$3,000, compared with S$4,000 to S$5,000 in the Novena area, he says.

Yip is also seeing an increase in new enquiries about rental apartments from those in the medical field as the medical hub in the Novena area develops. The only drawback of the Balestier Road area is that the MRT stations at Novena and Toa Payoh are not within walking distance of any project, unless it is at the Novena end. For those who drive, however, it offers easy access to both the Central and Pan Island Expressways, he says.

The close of the tender for the collective sale of Melrose Court on Aug 12 has also drawn keen interest. Located on Lorong Limau, the four-storey, 32-unit apartment block was put up for sale at S$48 million, or S$688 psf ppr. Colliers’ Ho who is marketing the project, says interest has mainly been from small- to medium-sized developers and contractors-turned-developers.

Based on recent deals, the owners of collective or even industrial sites put up for sale today are looking at prices of S$600 to S$700 psf ppr, notes Tan Hong Boon, deputy managing director of Credo Real Estate. “Pricing of projects in Balestier has already surpassed the previous peaks,” he says. The 50-unit Pastoral View and an adjoining land parcel at Bassein Road owned by OCBC in the Novena area were recently offered for sale by tender. The indicative price for the site is S$130 million to S$150 million, or S$904 to S$1,043 psf ppr, says Tan, the marketing agent for the site.

“The site is located just 400m away from the Novena MRT station,” says Tan. “It is also next to the cluster of developments in the Novena area such as Novena Square, Velocity@Novena, the Novena Medical Centre, the upcoming Parkway Health Hospital and Tan Tock Seng Hospital, as well as the shopping and commercial area across the street like United Square, Goldhill Plaza and Goldhill Centre.” The tender for the site closes on Aug 23.

Given the location of the sites and their combined land area of 51,395 sq ft, it is said to have attracted the interest of the medium-sized to large listed developers as well. The combined site can be redeveloped into a high-rise tower of 140 apartments, assuming an average size of 1,000 sq ft each.

In May, MCL Land launched D’Mira, a 65-unit, 17-storey boutique development along Boon Teck Road, off Balestier Road. In the first phase of 32 units released, 21 were sold at an average price of S$1,100 psf, says the developer. MCL Land plans to release the second phase after the Hungry Ghost Month, which ends in early September.

With the new residential towers springing up as the Balestier neighbourhood is renewed, perhaps District 12 in Balestier will one day become as desirable a residential neighbourhood as the prime District 11 neighbourhoods that flank either end of the area — Thomson Road on one side, and the Novena-Newton area on the other.

Cecilia Chow is City and Country editor at The Edge Singapore

Today I receive my weekly subscribed copy of the Edge. Under the Cover Story, Cecilia Chow has done a comprehensive review on the Renewal of Balestier. She has done a great job covering Balestier & Thomson property developments, therefore you should not miss out the issue.

You are able to find my views from the article too.

In the land scarce Singapore, people are getting more receptive to leasehold properties, being it commercial or residential. Therefore if your property is sitting on leasehold and expiring soon, you might be considering applying for lease topping up. And the approval rate is very much dependent on the government’s long term planning intention. Previously the government has been rather liberal in the approving on topping up leases. However with the Concept Plan 2011 to accommodate a projected 6.5 million population, we are seeing the decline in the approval for lease top up bid.

An article on the Lease top up for your leisure reading.

60% of lease top-up bids approved since 2007

Wed, Jun 23, 2010
The Business Times

By KALPANA RASHIWALA

(SINGAPORE) As the stock of buildings developed on 99-year leasehold sites sold by the government since the late 1960s gets older, more building owners are expected to apply to the authorities for lease top-ups.
Two such cases are currently under evaluation. But since 2007, the Singapore Land Authority (SLA) has processed 56 applications for lease extensions of which only about 60 per cent were approved. The other 40 per cent were rejected.

SLA’s spokesperson said in a written response to queries from The Business Times that in land-scarce Singapore, leases are generally allowed to expire without extension. Such a policy makes it possible for the government to recover land upon lease expiry, and reallocate it to meet fast changing socio-economic needs.

‘Nevertheless, lease extensions can be considered on a case-by-case basis,’ she said.

In evaluating requests for lease extensions, the government takes into account several factors including the long-term planning intention for the site and surrounding land, and whether the proposed use would optimise land.

SLA said that lease extensions granted since 2007 involved various uses such as commercial, residential, industrial and conservation properties. The period of the lease top-up depended on specific circumstances, but any top-ups together with the unexpired term of existing leases will not exceed 99 years.

‘This is in line with our current policy that all new state leases (for sites which are capable of independent development) should not exceed 99 years,’ said SLA.

Knight Frank chairman Tan Tiong Cheng sees a lot of soundness in the government’s approach.

‘To extend or not to extend? The answer lies in whether it fits into the long-term planning for the area. The government does not have to reveal its plans, so it has adopted a case by case approach,’ he says.

He cites the example of the government selling land for recreational use in Marina South on short-term leases of 20 years. ‘The government did not extend the leases when they expired and took the sites back because it had bigger plans for the area,’ Mr Tan said.

‘It’s a similar situation with the government’s plan for a new Central Business District on reclaimed land in the Marina area which can accommodate modern, big floor-plate office developments. What happens to ageing, pencil buildings on small plots in the old CBD? Should the government agree to reset their leases so that they can be redeveloped into new tiny office blocks for which there may not be much demand? The State may prefer to take back the sites when their leases expire and amalgamate them for a bigger development.’

In the meantime, leaving these buildings as they are may introduce urban blight. But if these owners propose to redevelop their buildings into apartments, thus furthering the government’s plan to increase inner-city housing, they may get their lease extensions. The first such case was Natwest Centre, which is currently being developed into The Clift.

Market watchers say building owners who apply for lease top-ups often do have redevelopment proposals, or plans to sell the property on the assumption of redevelopment.

DTZ executive director (consulting) Ong Choon Fah says many leasehold buildings are becoming physically obsolete. Some are also drawing undesirable occupier profiles. ‘If government is willing to top up leases, that will give these property owners an incentive to redevelop,’ she said.

The properties for which lease top-ups have been granted since 2007 are said to include the former Ong Building site, which is being redeveloped into the 76 Shenton project comprising 202 apartments, and the former Overseas Union House site, which is making way for a new 18-storey office project, 50 Collyer Quay.

But not all successful applications have their leases topped up to 99 years.

Lease upgrades approved in connection with CBD office redevelopments have sometimes been for less than 99 years to try and synchronise future lease expiries of all the sites on the same street block. The idea is to have all sites on that stretch revert to the state around the same time to accommodate more comprehensive planning and redevelopment for the area.

Analysts recall the case of 71 Robinson Road, whose lease was topped up in April 2007 not to the usual 99 years but 85 years and 10 months to match the remaining lease term for SIA Building next door. The latter’s lease was reset to 99 years in 1994. Leases for both sites will now expire in 2093.

SLA’s spokesperson said that for commercial uses, lease extensions may be granted if they help to achieve a certain planning intention – such as substantial intensification in land use – significantly earlier.

Analysts say that may explain why a few office building owners in the CBD reportedly had lease top-up applications turned down when they planned only retrofitting works, which are deemed as additions and alterations. On the other hand, those who supported their applications with planning approval from the Urban Redevelopment Authority to redevelop the site into a bigger office block have succeeded at lease top-ups.

The original Gaudi designed roof in Barcelona

I took a picture of Haniffa during the National Day: The building is flying several Singapore flags and banners of different colors and sizes, showing its patriotism from each family.

INTRODUCTION

Artist Impression of 368 Thomson

Let focus this part of article on the newly launched Thomson 368 by CDL.

368 Thomson is sitting at the former developments of Concorde Residences, Bright Building & Balestier Court. It is sitting on a freehold land of slightly more than 60,000 sf. It consists of a residential tower of 36 storey with 157 units, which is expected to be completed in year 2015.

Existing site for 368 Thomson with the Arte & Tan Tong Meng Apartment as the backdrop

Enough say of the surrounding site in my earlier articles. What is ‘striking’ is that the residential enclave of CDL’s empire being broken up by the prominent reddish tower Tan Tong Meng Apartment (which the enbloc did not work out). The strategy of CDL in Balestier developments would have changed if they had earlier succeeded in acquiring the Tan Tong Meng apartment. They could have easily consolidated all these plots and developed them as a mega big residential development. Of course CDL might have adhered to the current approach of separate parcels for different project launch as to minimize their risk to the property economic cycle.

The prominent red & white Tan Tong Meng Apartment along Thomson Road

DEVELOPMENT DESIGN

It is not difficult to notice that all CDL developments in the aforesaid area are planned in priority of views rather than North South facing to avoid harsh local weather. It is also applicable to 368 Thomson.

Nothing spectacular of the design of the 36 storey high rise of 157 units, with most façade fully cladded with glazing. There seems to be a trend for all developments, which I would have thought  the high usage in glass would have scored low in the Green Mark exercise that the Government is promoting. Though one is able to use low E (low emissivity) glazing to cut down the radiant heat, I would personally think the RC wall will be a better insulation against the harsh afternoon sun we have in the region. Have you not realize that one is able to stay in an older apartments which is well ventilated without turning air-conditioner, while aircon is a must for the new developments with full glazing?

 Of course I cannot deny that the view and design of building will be much enhanced with glazing. Maybe this is a balance that the developer and architect try to balance and weigh.

SITE PLANNING

368 Thomson Site plan

368 Thomson has 2 accesses to its development. Some people may applaud on its convenience of having an additional access to Jalan Raja Udang. It is the existing road from current Bright Building as shown in the photo. Personally I do not think the additional access is necessary given that the Jalan Raja Udang is by the side of Thomson Road which could be easily reachable if one exit from the main entrance.  

Existing access road from Bright Building

I would have though the road access will be more better utilized by replacing it with communal facilities such as more water feature, or garden or even a tennis court. For a development of this size, it is quite a disappointment to many that 368 Thomson does not come with a tennis court.

In terms of facilities, 368 Thomson boasts of facilities like:

• Playground
• Multi Purpose deck
• Outdoor fitness
• Garden of Solitude
• Eco Stream
• Lattice Walk
• Walk of Lights
• sky Terrace 3rd storey
• Main Pool
• Thermal Jet Pool
• Children Pool
• Sun Deck
• Pool Deck
• BBQ Area
• Alcove Seats
• Gymnasium

I will it strange that they name the 3^rd storey communal area as ‘sky terrace’ (do not think one will view much sky at that level with most tree canopy blocking the view), and find it even stranger that they did not choose 4^th storey as the ‘sky terrace’ to skip the usual perceived unlucky number which an usual a developer will do.

368 Thomson comes with 170 lots from basement, level 1 & level 2, which is considered decent for 157 units.

UNIT TYPES

site plan showing the adjacent development units

The architect adopted a simple & straightforward in its unit plans. With only 4 unit types ranging from 1+Study  to 4 bedroom design, each of the 5 stacks are replicated throughout every floor(excluding Penthouse unit types). As a buyer, you may have realized the bonus of such straightforward. Many of times the building defects such as leakage happens. In 368 Thomson, the standard floor plate takes away the worry that there is change of dry to wet area in the floor plate with change in unit types which may lead to leakages from above to your floor.

schematic unit distribution

From the unit sizes, CDL appears that it does not favor mickey mouse units. Their smallest unit 1+Study bedroom unit types already comes at 689 sqft, which could easily be a 2 bedroom unit to many developments.

In the above site plan, the unit numbers of each development including the Arte, Vista Residences & 368 Thomson are overlaid so the readers could get a clear idea of view that the unit could get. I summarized the following 368 Thomson below:

• Stack #01 & #02: 2-bedrooms (62 units): 872/883sqft  - Facing Thomson main road with view to City  
• Stack #03: 3-bedrooms (31 units): 1302sqft  – Facing Tan Tong Meng Tower & reservoir view.
• Stack #04: 1 + Study (31 units):  689sqft  – Facing the Arte development and Jalan Raja Udang. 
• Stack #05: 4-bedrooms (31 units): 1722sqft  – Facing 3 corners from Jalan Raja Udang, Balestier Road and partial Thomson Road. Paranomic view to city. The only stack comes with Private lift access.
• 5-bedroom penthouses (2 units): 3337/ 3391sqft

To be continued