JTC CORPORATION (JTC) has released two confirmed list sites - at Tuas South Street 11 and Tampines Industrial Drive - as well as one reserve list site at Tampines Industrial Drive under the second half 2014 industrial government land sales (IGLS) programme.

The two confirmed list sites are zoned for Business-2 development.

The one-hectare (ha) site at Tuas South Street 11 has a 20-year six-month tenure with a maximum permissible gross plot ratio of 1.0.

The 0.5ha site at Tampines Industrial Drive has a tenure of 20 years and a maximum permissible gross plot ratio of 1.4.

Tenders for both sites close on Jan 20, 2015, at 11am.

Separately, a site at Tampines Industrial Drive is released for application under the reserve list. The 0.6ha site has a 20-year tenure and a maximum permissible gross plot ratio of 1.4 and is slated for Business-2 development.

JTC said smaller plots with shorter tenure have been released since mid-2012 to meet the demand of industrialists who prefer to custom-build their own facilities, which is in line with government efforts to make industrial property more affordable.

The launch of the Tuas site in the West and the Tampines sites in the East also provides more location options for industrialists, said JTC.

Applications may be submitted to JTC for the site at Tampines Industrial Drive under the reserve list to be put up for tender.


Source from BUSINESS TIMES
http://www.businesstimes.com.sg/real-estate/jtc-releases-3-industrial-sites-in-tampines-and-tuas-for-sale

RETAIL rents at Singapore's iconic shopping belt Orchard Road are the seventh most expensive in the Asia-Pacific, even as the industry faces headwinds in the form of a tight labour market, higher costs and dwindling profits.

According to Colliers International's Global Retail Highlights 2014 report, Orchard Road's retail rents stood at US$348 per sq ft per year, edging downwards just 0.7 per cent year on year in local terms. Colliers used an exchange rate of US$1=S$1.26 as at March 31 this year.

Topping the list of Asia-Pacific's priciest retail rents is Hong Kong's Queen's Road Central at US$$2,073 per sq ft per year. Hong Kong accounted for the top three spots in Asia, with Canton Road in Tsim Sha Tsui and Causeway Bay in second and third spots respectively.

Tokyo's Ginza-Chuo Street was in fourth, while Shanghai's West Nanjing Road and Beijing's Wangfujing were in fifth and sixth place respectively.

In terms of the global rankings, Fifth Avenue in New York was the most expensive, at US$3,550 per sq ft per year. Hong Kong's Queen's Road Central and Canton Road rounded off the second and third places for priciest retail rents worldwide. Other shopping areas which made the top 10 include Madison Avenue (US$1,643) in New York, Paris' Champs-Elysees (US$1,543), London's Bond Street (US$1,340), Hong Kong's Causeway Bay and Bahnhofstrasse (US$998) in Zurich.

"As a gateway market to South-east Asia, Singapore remains a desirable market for new brands and an attractive destination for international occupiers," said Chia Siew Chuin, director (research and advisory) at Colliers International. "However, despite the demand for space by new stores and food and beverage (F&B) outlets, the retail environment is challenging due to rising costs, shrinking profits and a tight labour market."

This has helped keep retail rents in Orchard Road more or less flat year on year. Brands that have entered the market this year include Adolfo Dominguez, Etam and Cath Kidston. In addition, newly revamped mall The Heeren saw the relocation of department store Robinsons.

At the same time, Singapore's most famous shopping street today faces competition from shopping centres in the downtown areas, suburban malls as well as retail locations in other areas such as the fringes of the city. Monthly gross rents for prime retail space in Orchard Road softened slightly to S$36.50/sf in Q1 14, from S$36.75/sf in Q1 13, the report highlighted.

Ms Chia added: "The physical retail trading environment will also remain tough and demanding on retailers and F&B operators due to increasing competition from e-commerce retailers and online food delivery services. Consequently, retail space rents, which have generally remained unchanged during the year, are likely to remain flat in the near future."

The report - which examined 125 retail real estate markets in 50 countries - also highlighted that the global outlook for retail looks encouraging, backed by a recovery in the US, a robust performance by high street markets as well as ongoing development in emerging economies.

This is prompting international brands to make forays into new markets, while the luxury segment of the retail industry is shining in key markets in the US, Europe and Asia, fuelled by rising incomes among top earners.

Still, e-commerce is proving to be a major challenge for both luxury and traditional retailers worldwide, forcing firms to turn creative in order to keep the cash register ringing.

Among the strategies listed to combat the growing popularity of e-commerce is transforming stores into product showrooms to boost foot traffic.


Source from Business Times
http://www.businesstimes.com.sg/real-estate/orchard-rd-retail-rents-7th-most-expensive-in-asia-pacific-report

THE Housing and Development Board (HDB) released a mixed-use site in Yishun and an executive condominium (EC) site at Anchorvale Crescent in Sengkang for tender on Tuesday that are estimated to yield a total of 700 residential units.

While both 99-year leasehold sites appear fairly attractive, the current unsold residential stock in their vicinity could prove to be a deterence to developers. Still, consultants are expecting the commercial-residential site at Yishun Avenue 4 to draw a high number of bids.

"We expect developers' response to the site to be fairly enthusiastic as commercial/residential developments typically sell well," said ERA Realty key executive officer Eugene Lim.

"With an estimated 180 residential units that can be built on the site, the project is not overly large and developers should be relatively confident of the response from buyers."

The Yishun plot at Yishun Avenue 4, which has an estimated gross floor area of 27,327 sq m, is the first selected government land sale (GLS) site to be adopting prefabricated prefinished volumetric construction (PPVC), on top of having to meet a certain level of prefabrication under new government rules for the built sector.

Mr Lim is expecting at least six to eight bidders for this plot with the winning bid at S$650-S$750 per square foot per plot ratio (psf ppr), going by average transacted prices of S$1,152 psf at Nine Residences and S$1,032 psf at The Estuary.

SLP International executive director Nicholas Mak was more bullish, expecting 11 to 18 parties to take part in the bidding and the top bid to range from S$750 psf ppr to S$816 psf ppr.

He noted that the Yishun site's key attractions include its wide frontage, regular plot shape, and its proximity to good schools and major expressways.

"Potential threat to this site would be commercial and residential developments that have unsold units to date," Mr Mak said, citing the 40 unsold units at Nine Residences and 20 unsold units at Skies Miltonia.

There will also be another 660 units from EL Development's yet-to-be launched condominium project, Symphony Suites, at Yishun Avenue 9.

Similarly, the Anchorvale Crescent site - which is expected to yield 525 EC units - will face competition from ample upcoming supply of EC units in the Sengkang and Punggol planning area, Mr Mak said.

There are four EC projects under development in the planning area, namely Bellewaters, The Amore, The Terrace and one other GLS site sold last November, Mr Mak said. These developments could yield an estimated 2,320 units. The number will add up to 2,470 units if unsold EC units in already launched projects are included.

Drawing reference from the previous EC site at Anchorvale Crescent acquired by SingHaiyi Group in February at S$367 psf ppr and the indicative selling prices of S$740-S$864 psf for some upcoming EC launches, Mr Mak said he expects the top bid for the new EC site at Anchorvale Crescent to fall within the S$320-S$360 psf ppr region with a total of four to eight bidders.


Source from Business Times
http://www.businesstimes.com.sg/real-estate/two-govt-sites-up-for-tender-to-yield-700-residential-units