Singapore - Housing 17 (Feb 16 - Mar 19)

[winston]

Remake, Reposition & Refurbish

Draft 2019 Masterplan gives a lift to commercial landlords with enhanced plot ratios in CBD and Orchard; key beneficiary is SGREIT

New regional economic centers with focus on Greater Southern Waterfront and remaking of Paya Lebar Air Base

New residential supply planned in Downtown, Marina Bay, and fringe areas to promote living closer to work places

Commercial landlords to gain from a lift in plot ratios. The Urban Redevelopment Authority (URA) unveiled the Draft Master Plan 2019 (DMP19) yesterday.

The highlights are higher plot ratios in the Central Business District (CBD) and a new scheme to promote development and rejuvenation of the CBD from a commercial district to one with vibrancy from an increase in live-in population in the Central Region.

The increased plot ratio in the CBD will be positive for commercial (retail and office) property owners like office REITs (CCT, KREIT, SUN, FCOT and OUECT).

The key beneficiary is SGREIT, with a 29% jump in plot ratios for its properties in Orchard – Wisma Atria and Ngee Ann City. Other developers with exposure in the CBD include the likes of Capitaland, CDL, FPL and UOL.

Greater Southern Waterfront development to benefit MCT’s VivoCity. The government has plans to begin developing the Greater Southern Waterfront which spans across the southern coastline from Pasir Panjang to Marina East in the next 5 to 10 years. This development opens ample opportunities for developers.

With an expected increase in residential developments in the Greater Southern Waterfront area in the longer term, MCT’s VivoCity, the closest large retail mall, would be a key beneficiary.

New housing opportunities in CDB and long-term residential pipeline bodes well for developers. As part of the Downtown rejuvenation, URA plans to increase housing sites in Downtown, Marina South, Rochor and Bayshore areas so that people can live closer to their work places.

While these offer interesting opportunities for developers to land-bank, we believe that investors’ attention is on the supply overhang in 2019-2020 for now.

While we remain positive on longer term trends in property prices, we believe a steady growth in supply of homes will likely be accompanied by more conducive policies to ensure stable growth in the property market in the longer term.

Source: DBS

https://researchwise.dbsvresearch.com/R ... dggbkfdhjg

[winston]

Singapore Property Sector: A master plan with building blocks for the future

The Urban Redevelopment Authority (URA) unveiled its Draft Master Plan 2019 (DMP19), and one of the key strategies includes developing economic gateways for the future economy.

In order to grow the vibrancy and introduce the “work-live-play concept” to the CBD area, URA will introduce a new CBD Incentive Scheme.

A higher gross plot ratio for the conversion of existing office developments to hotel and residential use will be allowed, subject to conditions.

The idea is to encourage property owners with older buildings in the CBD to consider rejuvenating their buildings.

Going beyond the CBD, a new Strategic Development Incentive Scheme will also be introduced to incentivise commercial property owners to collaborate and comprehensively redevelop adjacent properties.

Another key strategy of the DMP19 is the optimisation of land use, and largely involves the transformation of the Greater Southern Waterfront and Paya Lebar Air Base.

We see UOL Group and Mapletree Commercial Trust as key beneficiaries of this.

Overall, we maintain NEUTRAL on the SG property sector.

Source: OCBC

[behappyalways]

URA Draft Master Plan to boost mixed-use properties in CBD
https://sbr.com.sg/commercial-property/ ... ies-in-cbd


HDB awards Pasir Ris Central tender for $700m
https://sbr.com.sg/residential-property ... ender-700m

[behappyalways]

Tender closing for URA sale sites at Middle Road and Sims Drive


LAND PARCEL AT MIDDLE ROAD
https://www.ura.gov.sg/-/media/Corporat ... 19-14a.pdf


LAND PARCEL AT SIMS DRIV
https://www.ura.gov.sg/-/media/Corporat ... 19-14b.pdf