Districts 9, 10, 11
As at 2023 April 07:
Nassim is still my favourite
Singaporeans loving the luxury homes foreigners can't buy
Some of Singapore's most desirable houses come with a catch: only locals can own them.
That foreign buyers - notably from China - who for years helped drive demand for luxury homes, can't buy these dwellings, hasn't dented their appeal. Their scarcity and the exclusivity they confer have pushed prices of the homes - known as Good Class Bungalows, or GCBs - to record highs, even as the broader property market cools.
Just about 2,500 GCBs dot the city-state, ranging from colonial-era houses to architect-designed modern homes with cantilevered verandas, infinity pools and expansive landscaped gardens, a world away from the high-rise condos most Singaporeans call home.
In a recent blockbuster deal, Tony Tung, the chairman of Hong Kong-based oil trader Winson Group, bought a bungalow near the Botanic Gardens for S$105.3 million, the Business Times reported earlier this month, saying it was a record for a GCB. Nearby, a Singaporean member of the Tsai family, who made their fortune in insurance in Taiwan, snapped up a bungalow for S$93.9 million.
More records may soon be broken. A new bungalow near the Botanic Gardens, featuring a central courtyard pool and water garden, will soon hit the market with an asking price of S$3,500 per square foot. That would surpass the previous record of S$2,700 per square foot set last year, according to KH Tan at Newsman Realty, who is handling the sale.
"Due to scarcity and exclusivity, the GCB market has always been regarded as the jewel of the residential market and a coveted trophy asset to the well-heeled community," said Sammi Lim, director of capital markets at real estate agency CBRE Group Inc. "GCBs have proven to be a resilient asset class through market cycles."
That's proving to be the case again as a rally in home prices stalls following the imposition of further property curbs in the middle of 2018. House values declined 0.1 per cent in the three months ended Dec 31, snapping five straight quarterly gains.
The citizenship requirement isn't the only restriction on GCBs. The plot must be at least 1,400 square meters, and the house can't take up more than 35 per cent of the land, or be more than two stories high. Such luxurious use of space is another status symbol in one of the world's most densely-populated countries, where about 7,900 people are crammed into each square kilometer.
Singapore is also one of the wealthiest nations on Earth - home to the ninth-highest number of millionaires - according to Credit Suisse Research Institute's 2018 Global Wealth Report.
That's helped underpin activity in the GCB market, with the number of transactions rising 47 per cent in the second half of 2018 compared with the first six months of the year, according to CBRE.
Typical buyers are super-wealthy locals, and foreigners who have attained citizenship, said Mr Tan, managing director at Newsman Realty, which specialises in bungalow deals.
"The super rich want to buy the best diamond, the best car, so in Singapore residential, the Good Class Bungalow is the best you can get," Mr Tan said.
BLOOMBERG
HighPoint sits on a site in a cul-de-sac in Mt Elizabeth Road. It comprises 57 apartments and two penthouses. More than 80 per cent of the owners have signed the collective sale agreement. The site is zoned "residential", with a height control of up to 36 storeys.
BT PHOTO: CHONG JUN LIANG
Freehold development in Mt Elizabeth Road seeks S$550 million, joining a clutch of other District 9 sites
Prime freehold site HighPoint has been launched for collective sale for S$550 million, joining other District 9 developments jockeying for sale.
The property, which was completed in 1974, sits on a cul-de-sac plot of approximately 47,606 sq ft on Mount Elizabeth Road.
In the Urban Redevelopment Authority's Masterplan 2014, the site is zoned as "residential" with a height control of up to 36 storeys.
The existing gross floor area (GFA) stands at around 211,976 sq ft, equivalent to a plot ratio of around 4.45. No development charge is payable up to a GFA of approximately 213,383 sq ft.
Based on the guide price, the land rate works out to about S$2,595 per sq ft per plot ratio (psf ppr). Taking into consideration the seven per cent bonus gross floor area for balconies, the land price works out to about S$2,509 psf ppr.
Assuming an average apartment size of 100 sq m, the site can accommodate up to 196 dwelling units, said marketing agent CBRE.
HighPoint currently comprises 57 apartments and two penthouses. More than 80 per cent of the owners have signed the collective sale agreement.
The development is within walking distance of ION Orchard, Paragon and Mount Elizabeth Hospital; nearby schools include Anglo-Chinese Junior School and the Orchard campus of Chatsworth International School.
The public tender for the site closes on Feb 26 at 3pm.
Galven Tan, executive director (capital markets) at CBRE, said: "The potential 36-storey height will offer panoramic views, featuring the lush greenery of Goodwood Hill and the CBD skyline.
"Its exclusivity presents immense potential to create a one-of-a-kind Orchard Road landmark which will attract ultra-premium developers. Overall supply in the ultra-luxurious segment of the market remains very limited, and we believe the interest and pricing will continue to hold firm."
The site piqued the interest of some Hong Kong-based foreign developers looking to invest in Singapore during its pre-marketing exercise, he told The Business Times.
"The site has the attributes which tick the boxes on their checklists to develop a premium product in line with their branding," he added.
Other developments in the same district that have been put up for collective sale include the 99-year leasehold Leonie Gardens, which is going at a reserve price of S$800 million.
The freehold Cavenagh Gardens is taking another shot at selling en bloc at a reserve price of S$480 million.
Meanwhile, Horizon Towers on Leonie Hill Road last week relaunched its collective sale tender at a S$1.1 billion reserve price, unchanged from its attempt last July. That round closed in September without attracting any bids.
The condominium was previously put up for collective sale for S$500 million around 2007, but that sale to a consortium led by Hotel Properties Limited fell through after a dispute among the owners. Eventually, the Court of Appeal found that the sales process was improperly handled.
This time around, JLL is its sole marketing agent.
Commenting on the Horizon Towers and HighPoint sites, JLL's executive director of capital markets (Singapore), Tan Hong Boon, said: "Both are prime sites, with their own attributes. Horizon Towers has more scale in terms of physical size and quantum, so the economies of scale are better."
But he pointed out that HighPoint is a freehold site, against Horizon Towers' 99-year tenure.
He further noted that there could be some overlap in potential developers looking at those two sites.
Horizon Towers' S$1.1 billion reserve price translates to a land rate of about S$1,977 psf ppr after factoring in the lease top-up premium, which is estimated to be some S$228 million, or S$1,797 psf ppr inclusive of the 10 per cent bonus gross floor area (GFA).
There is no development charge or differential premium for intensified use of the 1.9 ha site.
The estate, built in the late 1970s, is zoned "residential" in the 2014 Master Plan with an allowable height of up to 36 storeys.
It is about 150m from the upcoming Great World MRT station, and offers dual road accesses to Leonie Hill and Leonie Hill Road.
Other sites in District 9 which were put up for en bloc sale last year and for which there were no takers include The Regalia in River Valley and Elizabeth Tower in Mount Elizabeth Road.
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