Colliers Appointed To Lease, Manage 183 Heritage Black-And-White Bungalows

The Singapore Land Authority has appointed Colliers International to lease and manage 183 heritage black-and-white bungalows located at various neighbourhoods in Singapore.

Ranging from 800 to 13,200 sq m, the restored bungalows feature colonial designs with clay pitched roofs, dark timber finishes, white-washed walls and columns as well as spacious interiors with well-ventilated rooms. The houses were designed and constructed by the British Administration – when the city-state was part of the British Colony – in such a way that they promote natural ventilation to combat the tropical climate.

They are spread across established neighbourhoods such as Holland Road, Adam Drive, King Albert Park, Watten Estate Road and Tanglin Road.

Of the 183 bungalows, fewer than 30 are currently vacant and available for lease.

The properties have varying lease terms, starting from a minimum of two years. Rental rates also differ, depending on the property’s location and site attributes.

“Colonial bungalows are highly sought-after properties owing to their iconic design, rich history, prestige factor, as well as generous land space and large private gardens. We have received many leasing enquiries for the black-and-white bungalows,” said Colliers International real estate management services director Andy Oon.

URA REALIS data shows that the median monthly rent for detached residential properties in the Core Central Region stood at $3.10 psf per month (psf pm) in Q3 2018, up from the $2.98 psf pm in the previous quarter, and $2.99 psf pm a year ago.

Barring unforeseen external shocks, Oon expects the leasing prospects for these heritage homes to remain “fairly positive amid the stable economic growth outlook for Singapore over the next year”.

“Singapore continues to be an attractive business destination for multinational corporations, and their setting up or expansion in operations here will present leasing opportunities for the black-and-white bungalows,” he added.

Developers May Need To Rethink Pricing Amidst New Shoebox Rule

New URA rules have slashed the maximum number of units that can be built outside the central areas.

The Singapore government’s new policy on apartment sizes may come as good news to home buyers, but not to home builders who may now need a pricing rethink which could dent their profitability, reported Bloomberg.

This comes as the new guidelines on unit sizes effectively slashed the maximum number of apartment units in a project by 18 percent as the government raised the average unit size to 85 sq m from the existing 70 sq m.

To come into effect by early-2019, the changes will only apply to residential developments outside the central areas, said the Urban Redevelopment Authority.

The new rule follows recent property cooling measures introduced by the government in July, which sees developers shelling out almost 9.0 percent more for land acquisitions.

“The July curbs put the handbrake on en bloc transactions,” said ZACD Group research head Nicholas Mak.

Coupled with the fact that they now have to build bigger apartments, developers may be forced to reduce selling prices to move units, noted Mak.

United First Partners head of Asian research Justin Tang said Singapore developers will ultimately end up building fewer, bigger units.

“This could make a calibration of price on a per square foot basis necessary, which will eat into margins.”

Meanwhile, projects launched this year will not be affected by the new guidelines on unit size as they have already been approved by the government. Nonetheless, home buyers looking to acquire condominiums in 2019 may want to look out for good deals, said Mak.

Analysts at UBS Group AG expect home prices to drop by up to 2.0 percent by 2019 and another similar drop by 2020.