Healthy demand expected for upcoming mixed development projects

A string of mixed development projects is expected to hit the market in the months ahead.

Given their attractive locations in the city and at the city fringe, analysts believe the properties, particularly the commercial component, are likely to be well-received.

The Venue Residences and Shoppes, located near the Potong Pasir MRT station, was launched for sale on Friday.

The project comprises 266 apartments, and 28 retail and dining units.

As at 5pm on Friday, about 65 per cent of the 50 residential units at The Venue Residences released were sold at an early bird average price of S$1,380 per square foot.

In addition, as at 5pm, City Developments said about 60 per cent of the commercial units have been sold at a price range of S$4,700 to S$6,000 per square foot.

Donald Han, managing director of Chesterton Singapore, said: “If you are looking at some of the launches, like The Venue at Tai Thong Crescent, that should do very well because there are only 28 units available and a lot of these are more shop-front, ground floor units.

“If you look at the example of Junction 9 (in Yishun), where there are not many competitors, untapped market for commercial, retail strata launches, usually you see very good response, so we expect prices and take-up rate to reflect that very brisk demand.”

Responding to Channel NewsAsia, its developer City Developments added: “Sited along Tai Thong Crescent, at the junction of Upper Serangoon Road and MacPherson Road, retail buyers see great potential in this development.

“This charming estate is undergoing rapid gentrification and burgeoning with more residents moving into the district, which will auger well for retail, dining, lifestyle and leisure businesses.”

Another upcoming project, Guoco Tower at Tanjong Pagar Centre, is also expected to enjoy healthy demand.

The 38-storey Grade A office block has six levels of retail and F&B space, as well as a luxury business hotel.

Its leasing agent Jones Lang LaSalle said it is talking to potential tenants but there has been no pre-commitment on office space just yet.

Christopher Fossick, managing director for Singapore and South East Asia at Jones Lang LaSalle, said: “At this stage, with completion being in 2016, we are really looking for anchor tenants, large space users that might need 100,000 square foot plus.

“There will be every likelihood that they will be in the financial services sector or they could be in the technology sector as well.”

For the retail and F&B space at Guoco Tower, Mr Han expects a good level of leasing activity.

He said: “(For a) development with a huge population base like Guoco Tower at Tanjong Pagar… You have got a rising population and there is not enough retail component to serve especially the residential population and there is also the hotel component coming in, so you need to support that infrastructure demand.”

Over the next four years, analysts project some 6 million to 7 million square feet of new office space to become available islandwide.

Take-up rate for this new supply should be strong, especially if Asia continues to grow and global economic conditions remain favourable.

The average rental price for office space in the central business district is around S$9 per square foot; that is about 50 per cent lower than its peak in 2008.

Property consultancy Chesterton Singapore expects average rental to go up by 3 to 5 per cent in the next 12 months.

Source : Channel NewsAsia – 18 Oct 2013

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