It added that as retirement housing is a relatively new concept in Singapore, it saw merit in giving the market and the developer the flexibility to determine the concept for this new housing development.

The Hillford at Jalan Jurong Kechil was a sellout, with all 281 units snapped up in a day.

With units priced at around S$400,000 to S$700,000 and its location in the Bukit Timah area, the project attracted buyers, including retirees, young families and some investors.

Its developer, World Class Developments, said that a substantial proportion of buyers were over 50 years of age.

Sold on a 60-year lease, The Hillford comes with elderly-friendly features and is aimed at providing affordable housing for retirees.

“The land sales were loosely defined and… not restricted to people of a certain age, certain cohort nor… restrict them from leasing out the units,” said Alan Cheong, research head at Savills Singapore.

“I would believe quite a number of them would have bought it for rental income yield, because (in a) worst case scenario, you still get a five per cent gross yield and that return is even better than the average shoebox (apartments) that you are getting.”

Property analysts are mixed as to whether there is scope for the development of more retirement housing projects in the private residential market in Singapore.

But they said should the government plan to release more of such sites, stricter conditions must be attached to the tender as the notion of retirement homes may be lost without rules specifying who could buy these units.

They added that sites for retirement homes should also be located near healthcare facilities such as a hospital.

“The first aspect that the government could consider would be to look at the minimum age for home buyers,” said Alice Tan, associate director and head of consultancy and research at Knight Frank.

“The minimum age could be tied in with the mandatory retirement age set by the government. Now the retirement age is 62, (so) I guess the age of 60 and above would be quite palatable.

“Secondly, in order to preserve the unique concept of retirement homes, URA could consider releasing sites based on a two-envelope tender that would mean that tenderers who submit their bids for the land sites would also need to submit concepts.”

“Incentives or rebates could come to existing projects”, said Desmond Sim, associate director at CBRE Research

“Maybe the state could give incentives or rebates for developers to turn some of the units to be more elderly friendly. In that way, there is a guarantee of integration of the elderly.”

In addition, analysts said buyers should also consider if such units will be well-received in the resale market.

Mr Sim said: “Let’s say you have a lease of six years and (if) you put it out on the market, 54 years will be left. It is untested on the buyer’s side whether the buyer could obtain a loan from the bank to finance the purchase.

“Banks are generally quite restrictive in giving loans to properties that have a reduced tenure.”

Source : Channel NewsAsia – 23 Jan 2014

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Despite concerns about The Hillford’s shorter 60-year lease, buyers – both young and old – snapped up all 281 apartments.

By 9am on Friday, The Hillford showflat at Upper Bukit Timah was already crowded with some 1,000 prospective buyers.

Within the first one-and-a-half hours, more than 80 units were already sold. That is 30 per cent of what is available.

The project has been marketed as a “retirement resort” for active seniors with elderly-friendly facilities and commercial space set aside for health care and elder care.

But with the condo located near the upcoming Beauty World MRT station in Bukit Timah, seniors were not the only ones interested.

This is despite the smaller flats and shorter 60-year lease. Private properties in Singapore usually have a 99-year lease or are freehold.

Analysts said The Hillford’s popularity shows people are receptive to properties with a shorter lease.

Chris Koh, director of Chris International, said: “For many, at the end of the day it’s the price. If it’s affordable, and the quantum is low, you can see they’re willing to buy.”

But there are concerns that the facilities for the elderly may not materialise if there are too many young buyers.

A lot will depend on the property’s management body, which will be made up of residents, said Mr Koh.

He said: “They must remember the essence of this village. It’s for the elderly, for retirement, and they should not just change it overnight to cater to the youngsters who live in the project.”

Christine Li, head of research and consultancy at OrangeTee, said: “In order to make this retirement concept more meaningful, there could be some restrictions, such as the age of the buyer, as well as some resale restrictions.”

Sales figures are still being worked out, but the developer World Class Land said it expects a “substantial proportion” of buyers to be over 50 years old.

Source : Channel NewsAsia – 17 Jan 2014

The post Buyers snap up “retirement resort” condo on first day of sale appeared first on LushHomeMedia.

This includes what’s being called Singapore’s first retirement resort, which saw a big crowd on its first day of preview on Saturday.

Its developer, World Class Land, said interests shown were mostly from those in their 50s.

It was a packed showflat for The Hillford’s first viewing day.

Touted as Singapore’s first retirement resort, the project offers 281 units on a 60-year lease.

Apartments range from one-bedroom units to two-bedroom dual key units, and the indicative price starts from S$980 per square foot.

World Class Land said units released at the upcoming VIP Preview are likely to start from S$388,000 for a one-bedroom unit, S$498,000 for two-bedroom, and S$648,000 for two-bedroom dual-key units.

It added that the vision for the project was in response to Singapore’s ageing population.

Jack Chua, CEO of ERA Real Estate, said: “If you look at a 99-year condominium development, a small unit nearby is about 1,600 per square foot. For Hillford, a retirement resort, pricing from S$980 per square foot is substantially below the market value.

“There are more lifts, there are wider corridors to improve accessibility. There are also medical (facilities) and eateries within the development. In addition, there is also a 24-hour concierge service and full-time resort manager to organise activities like dancing classes and yoga for the residents.”

“Price wise, it’s all right. It’s not very expensive,” said a prospective buyer.

Mdm Tan, who is 70 years old, said: “I think it’s a bit small, if my grandchildren come, it’ll be a problem. We have to consider first.”

While the project may be touted to be a retirement resort, there is no age restriction for those hoping to buy a unit.

Some property analysts think this may attract a small group of younger buyers hoping to rent out their units.

Mohamed Ismail, CEO of Propnex, said: “Regardless of a 60-year, a 99-year, or even a freehold, the rent is about the same. The rental is likely to be five to 10 per cent higher than a comparable either 99-year or freehold because the demand will be there for people who want to put their loved ones, or people themselves who want to stay and enjoy all these facilities.

“But what I cannot imagine here is a retirement village (where) at the end of the day, youngsters who just want to stay there for convenience, then the objective would not be right.”

Location was another draw for young potential buyers. The project is located at Jalan Jurong Kechil in the Bukit Timah area.

Joseph Zhu, 31 years old and a Singapore PR, said: “We are mainly considering to buy the place near the good school that we can enrol our kids. Like for us young people, if we cannot afford the very expensive condominium, this could also be an option for us.”

But some property analysts say resale value may be an issue in the long run.

Chris Koh, director of Chris International, said: “My concern is when there are 40 years lease left. That’s when I expect the value to come down. We have today rulings on the usage of CPF, banks may also be a bit more conservative in lending the money for the purchase. But for the next five, 10 years, I still see this project will still hold its value.”

Over in Ang Mo Kio, new condominium The Panorama also opened for preview. It has 698 units on offer.

Marketing agents said the response has been good so far, especially since there have not been many new projects in the area.

Tan Tee Khoon, executive director of Residential Services at Knight Frank, said: “Our sales persons on the ground who have been speaking to prospective buyers have indicated keen interest from families who have school going children, young professionals, as well as those who want to live near their parents living in the vicinity.”

Both projects are likely to be open for bookings in two weeks’ time.

Source : Channel NewsAsia – 4 Jan 2014

The post Crowds throng new property projects during weekend previews appeared first on LushHomeMedia.

But property agents said booking of units will only start mid-January.

First off the block is The Panorama at Ang Mo Kio by Wheelock Properties.

Prospective buyers can visit the showflat on Saturday to find out more about the 698-unit project.

Property analysts estimated the units could go for between S$1350 and S$1500 per square foot.

Another project that is open for preview on Saturday is retirement resort The Hillford at Jalan Jurong Kechil by World Class Land.

Sold on a 60-year lease, the project will offer 281 residential units with elderly-friendly features.

Indicative prices range from over S$400,000 for a one-bedroom apartment of about 400 square feet to over S$700,000 for a two-bedroom dual key unit spanning 657 square feet.

That works out to about S$1,000 per square foot.

Ku Swee Yong, chief executive officer of Century 21 Singapore, said: “If you brought the 60-year lease back up to 99 years, then S$1,000 for 60-year lease would be equivalent to S$1,800 per square foot. That is very pricey.

“The retirement home scheme where land parcels are sold for shorter leases in order to keep prices down, more affordable, I think that objective has been missed. Given the fact that developers are able to shrink it (unit), lower the quantum, however, increases the dollar per square foot significantly for their profit.”

Source : Channel NewsAsia – 3 Jan 2014

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