Peak Residence psf

The rents for many room types, except three-room HDB units, all climbed.

HDB rents submitted a small increase of 1.3percent YoY and 0.1% MoM in December, according to a report by SRX.

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Rents for three-room HDB units decreased by 0.3percent YoY in December, although rents for other room types grew YoY.

HDB rent volumes dropped by 5.3percent YoY in December. A total of 23,958 HDB leasing trades were listed at 2019, which was 1.9percent higher compared to 2018.

Slimming down by area types, 35.9percent of total leasing volume came out of four-room units, 32.7percent from three-room units, 25.2percent from five-room units and 6.2% by your executive units.

Huttons Asia’s mind of research Sze Teck Lee noted that greater quantity of leases in Q4 might have been because of significant policy changes in 2019 for example greater income ceiling and improved housing grants that fostered the allure of resale apartments.

“The cumulative impact of numerous policies appeared effective in mitigating additional price falls arising out of the worries surrounding the rental depreciation of elderly apartments and the rising supply of apartments. A range of significant changes were made annually for example enabling buyers higher flexibility in using CPF to purchase older apartments and improving the CPF Housing Grant to boost housing affordability for greater Singaporeans,” explained Christine Li, head of research at TEE International.

Lee jobs HDB resale trades in 2020 to reach a figure between 23,000 and 24,000. “HDB resale trades and cost increase in 2020 is expected to be between 0 and 2%. Together with the HDB resale market bottoming out, this is a fantastic chance for HDB owners that wish to update to a personal land,” he added.

Peak Residence sales gallery

If the reported deal is approved, the sum would be among the greatest paid for a coffee store in a Housing Board property, together with the last high profile sale being in 2015 if a coffee store at Bukit Batok has been sold for a comparable quantity.

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He explained it was too early to start talking about any bargain on Coffee United, since the coffee store at Block 496 Jurong West Street 41 is famous, including that there are additional interested buyers when its owners were prepared to sell.

Mr Chu estimated that at least eight more months were required to finalise a bargain, even if it moved at all.

K2 works 14 coffee stores – some below the Fu Chan manufacturer – and over 40 food stalls islandwide, The Straits Times reported this past year. The company has approximately 400 employees and an yearly revenue of roughly $45 million.

There are approximately 1,200 coffee stores in Singapore.

The Shin Min report stated Coffee United has 13 stalls, also stallholders were quoted as stating that their leasing contracts could finish in July. They stated Coffee United’s owners could normally renew the contracts per week or two prior to their expiry.

The report also stated Coffee United is situated close to a neighborhood center, schools and other stores, which the coffee store has healthful footfall, especially at night.

When asked concerning the attraction of coffee stores as an investment, Associate Professor Lawrence Loh of the National University of Singapore Business School noticed those from the area remained a crucial quality of the food and drink industry here.

Coffee shops capture clients localised in compact housing estates, additional Prof Loh, who’s director of the Centre for Governance, Institutions and Organisations.

“The clientele are normally older people that are regular visitors of those coffee shops,” he explained.

“While there’s not anything particular about Jurong West particularly, there are still routine flows of patrons into the coffee shops due to cost and convenience factors.”

Peak Residence location

The 25-year-old, flat block sits on a 12,328 sq feet, freehold website on Sophia Road in prime District 9. Beneath the URA Master Plan for 2014, the website is zoned’residential’ and contains a plot ratio of 2.1. It has the capacity to be redeveloped to a new 34-unit condo, assuming a mean size of 753 sq feet for the units.

Visit the Peak Residence location for official showflat appointment to be obtained at https://www.PeakResidence.sg.

Casa Sophia was initially put on the marketplace available in July 2018 for $36 million ($1,390 psf per plot ratio), together with ERA Realty Network since the advertising representative. Each of the owners had consented to a collective deal, so it had acquired 100 percent consensus. On the other hand, the tender was started under a week following the announcement of their new property cooling steps on July 5, 2018.

Recognising the shift in programmers’ opinion following the most recent property cooling steps, the owners of Casa Sophia were fast to reduce their asking price to $30 million ($1,158 psf ppr), or 16% less. The job was relaunched available in March 2019, which has been ran by private treaty.

The owners had obtained”a few supplies” throughout the initial collective sale effort, noted ERA’s representative, Tjhai Citanegara, that had been managing the collective sale afterward.

It appears, among these curious parties had returned struck together with all the owners of Casa Sophia in a cost of $29 million, or $1,119 psf ppr.

“If stock of prime, condo units begin to run low again, a few programmers who have been first-movers in the past collective economy cycle, could revisit the en bloc marketplace for prime, freehold plots ,” states Bruce Lye, managing partner of SRI. “The current collective selling of Casa Sophia is a nod to this.”

Lye points into the government property sale of Irwell Bank Road, a large website in prime District 9. The tender for its 99-year leasehold plot was first launching last October and shut a week [Jan 9, 2020]. CDL is the programmer behind a series of luxury and high-end jobs in the prime districts which were launched at the previous two to three decades, specifically, Boulevard 88, Gramercy Park, New Futura, Haus on Handy and Nouvel 18.

The 2nd Greatest bid came in the consortium behind One Holland Village mixed-use growth, namely Far East Organisation, Sino Group and Sekisui House.

Bids were below analysts’ expectation as”developers provisioned a greater margin for the 25 percent remittable ABSD [added Purchaser’s stamp duty] if they Be Unable to build and market the job within the specified period of five Decades,” said Tricia Song, Colliers International mind of

Peak Residence developer

Landlords in Hong Kong, a city with some of the greatest commercial rents on earth, are staring down the barrel of a challenging year.

Anti-government protests that started in mid-2019 have taken their toll on both store and workplace owners. Large-scale protests in popular shopping districts and a slump in vacationers have made it increasingly hard for retailers.

Peak Residence (Former Peak Court), new condo developed by Tuan Sing & Rich Capital, a reputable Peak Residence developer.

According to the Hong Kong Retail Management Association, more than 5,600 jobs may be lost and thousands of shops may shut over the forthcoming six months.

“Retailers have come to be quite cautious,” said Marcos Chan, head of research to Hong Kong at CBRE Group. “There will not be many expansions in the upcoming year.”

The landlord later slashed the lease by 44 percent to lure tenants.

Folli Follie, a brand of Greek company FF Group, closed one of its stores in Central at December ahead of the lease’s expiration and the asking price has been sliced by 40 percent. LVMH, the world’s largest luxury conglomerate, plans to shut a Times Square mall shop in Causeway Bay after its petition for reduced rent was denied.

A slump in store rents can threaten the town’s status as the world’s tiniest retail-rental market. Causeway Bay had the greatest rents in the entire world in the next quarter, at US$2,544 per square foot a year, figures from Cushman & Wakefield Plc show.

OFFICE DOWNCYCLE
Knight Frank estimates rental prices for road stores in prime shopping areas can decrease by 15 percent or more in 2020 as a result of continuing social unrest.

Some view the nadir as an opportunity. Citigroup said in a Jan 2 note that it is now bullish on Hong Kong retail landlords.

“Hong Kong retail sales have already seen the worst year-on-year performance in August to November, driven by escalating social unrest together using a weakening yuan during the period of time,” analysts directed by Ken Yeung wrote. “With the situation now stabilizing, we anticipate sequential developments on retail sales in January onwards”

The investment bank is not so bullish on Hong Kong’s office industry, saying that section of this market is”only at the early stage of what appears like a two-year downcycle.”

Rents at Central, an area of Hong Kong that’s home to many international companies, are vulnerable because of a slide in demand from Chinese companies and competition from additional division hubs such as Singapore, Tokyo and Shanghai.

“We anticipate Central office rentals will probably be down by 10 percent per annum during the next two years,” Yeung said.

Colliers anticipates grade A office rents in Central, the world’s priciest prime office market, to fall by 13 percent in 2020.

“Companies are hesitant to commit,” said Currie, adding that when the protests continue, the initial six months of 2020 will probably be even harder.

Read more HDB turns out 8,170 flats available to be purchased

HDB turns out 8,170 flats available to be purchased

“Based on the flash estimate, there was no change in the resale flat prices for the whole year of 2019,” said HDB.

Providing information on the general price movement within the resale public housing market, the RPI for the full quarter, along with more public housing data, will be rolled out on 23 January.

According to data from Data.gov.sg and OrangeTee, the number of resale transactions in the first 11 months of 2019 is higher when compared to the same period in 2018 and 2017:

Months Number of resale transactions
Jan-Nov 2017: 18,776
Jan-Nov 2018: 20,139
Jan-Nov 2019: 20,353

“The various policies seemed to have achieved their goals in improving the demand of different flat types and mitigating further price falls that were mainly caused by the lease depreciation of older flats and an increasing supply of HDB flats,” says Christine Sun, Head of Reseach and Consultancy from OrangeTee & Tie.

“For instance, the policy change that allows buyers to use more Central Provident Fund monies to buy HDB flats and the ongoing HIP (Home Improvement Programme) seemed to have improved the attractiveness and demand for older flats. In the second and third quarters of last year, the sales volume of older flats increased islandwide while the prices of older flats rose in certain towns.

“Enhancing the housing grants for first-time buyers and raising the income ceiling for eligible buyers seemed to have expanded the pool of potential buyers in the market,” she added.

Meanwhile, HDB announced that it will offer around 16,000 to 17,000 Build-To-Order (BTO) flats this year.

For the first BTO sales exercise, it will launch around 3,000 BTO flats in Toa Payoh and Sembawang in February.