EC: a space to watch
While the top bid of S$303psfppr submitted for the Upper Serangoon EC site was hailed as bullish by the market, a closer look at the numbers reveals a less bullish picture: 1) four of the seven bids were in fact closerto the lower end of consultants’ forecast; 2) the 51.5% difference between the top and bottom bids suggests a wider divergence in developers’ outlook; and 3) slower take-up of EC projects launched. While the EC market is relatively small, it is a better indication of genuine home buyers’ demand, in our view, and the slower market is a head-scratcher, particularly because the income ceiling has been raised since August and there is supposedly negligible impact from the latest cooling measures.
This week: GLS tender for condo site next to Hillier closesThe GLS tender for a condo site next to one of January’s top-performing projects, The Hillier, closes on 6 March. The market is expecting eight to 13 bids to be submitted for this tender, with the highest bid estimated at S$500-550psfppr, which is lower than the S$673psfppr that Far East paid for The Hillier site last April.
Key news Business park, high-tech space rents jump
Boom in home launches in first two months of year
Sales of new homes remain robust
Prime office rents in S'pore fall in Q4
Resale home prices fall for 2nd straight month
Average DC rate cut for non-landed residential use (Read full report)
Source : Nomura Equity Research