PROJECT AND DEVELOPMENT SERVICES, SINGAPORE - CORPORATE FIT-OUT
Maximising project potential, managing risk
Whether you are an investor acquiring a facility or a tenant occupying space, it is essential to create an environment that matches your business goals. Jones Lang LaSalle Singapore’s Project and Development Services (PDS) team understands your business’ unique needs and thus recommends solutions that best fit your requirements. In addition to rent, size, and location information, we advise on other factors that can prove critical during building and premises selection, including power and telecoms, government regulations, landlord requirements, and design restrictions, amongst others. As the client’s independent representative, we provide project management and turnkey construction services: • New space fit-out • Existing office reconfiguration/restacking/expansion • Existing facilities upgrade • Multi-site roll-out
Are you getting accurate technical analysis and advice on building compatibility tailored to your business needs? Would you rather focus on your core business goals instead of managing numerous contractors and vendors for an office project? Do you have concerns on completing projects on time, on budget and to quality? Who will you hold accountable for time, cost, quality control, and risk management? Do you require a project manager who has the local knowhow and experience to manage client expectations and targets? Do you need to manage projects spread across multiple provinces or cities with unified standards, systems and processes?
Our Services
• • •
Building Selection and Project Planning: Space Planning, Building Due Diligence, Master Timeline & Budget for Corporate Approval Building Due Diligence Survey: Power Supply, Floor Loading, HVAC, Usable Rate Project Execution: Risk Management, Design Management, Cost Monitoring/Management, Construction Management, Change Management, Communication Channels
•
•
Monitoring and Controlling: Weekly Project Meetings and Updates, Project Auditing, Compliance to PEP, Governance Manual and Procedures, Monthly Project Control Group Meetings, Strategic Review, Critical Risk Control Project Close-out: Integrated Testing Management, Hand-over Management, Move Management, Operation Manual, Training and Defect Rectification, Maintenance Plan, Reinstatement and Hand-back Management.
Cost Estimation* Description
*all costs are in SGD and subject to local city market prices
Basic/ Economy Fit-Out (psf) Mid-Range Fit-Out (psf)
High-End Fit-Out (psf)
- Local materials - Minimal finishes
- International materials finishes and equipment - LEED Platinum - Full acoustic treatment
- Selected international equipment and materials - Average finishes - Selected acoustic treatment to limited areas - LEED Silver
General Construction
$39
$64
$100
Furniture, Fittings & Equipment
$23
$30
$39
Mechanical & Electrical Works
$37
$54
$82
Consultancy Fees
$28
$38
$51
Total
$127
$186
$272
The above costs are subject to change, depending on the specification of the building infrastructure.
These cost estimations assume a project with floor area of approximately 20,000 ~ 30,000 sf. For projects which are larger in size, these rates will decrease, depending on the market conditions. The above cost estimations exclude the following: • • • • • •
Reinstatement cost is not included and can be budgeted at S$12 ~ 15 psf, depending on the age of the premises/building and reinstatement obligations. Artworks & plants, move cost, IT equipment, etc. Telepresence/ halo VC systems, works in base building areas outside of the tenancy. Upgrade to base building MEP infrastructure, office supplies and consumables. Other consultants fees & expenses which are not listed above (eg: legal, marketing, leasing, photography, copyright & royalties, etc.) Note that the actual estimates for loose furniture and system furniture will largely depend on the selection by the client and hence the above costs provided are for guidance only.
Project Milestones Relocation timeline can range between 6 to 12 months, depending on the gross square metre area, handover conditions and tenant’s internal procedure. Lease Process
Project start date
Final decision made
LOI signed
Review of scenarios, building options and negotiations
Offer process
Due diligence and test fits performed on shortlisted properties
Submit documentation and plans for approval
Lease signed
Move into new premises
Project Milestone 6 to 12
Office Fit-Out
Fit-Out period
Approval gained
Reinstatement
Move out of old premises
Hand back
Our Clients
ReedSmith
Vistaprint
Bristol-Myers Squibb
BG Group
Accomplished: 2013 Site area: 12,500 sf
Accomplished: 2013 Site area: 6,500 sf
Accomplished: 2013 Site area: 9,000 sf
Accomplished: 2012 Site area: 15,000 sf
Alcon
Microsoft
SAP
Unilever
Accomplished: 2012 Site area: 55,000 sf
Accomplished: 2012 Site area: 96,000 sf
Accomplished: 2011 Site area: 135,000 sf
Accomplished: 2009 Site area: 145,000 sf
For more information, please contact Head of Project & Development Services Singapore: Kent.Olson@ap.jll.com COPYRIGHT © JONES LANG LASALLE 2013. All rights reserved. No part of this publication may be published without prior written permission from Jones Lang LaSalle. This information in this publication should be regarded solely as a general guide. Whilst care has been taken in its preparation no representation is made or responsibility accepted for the accuracy of the whole or any part. We stress that forecasting is a problematical exercise which at best should be regarded as an indicative assessment of possibilities rather than absolute certainties. The process of making forward projections involves assumptions regarding numerous variables which are acutely sensitive to changing conditions, variations in any one of which may significantly affect the outcome, and we draw your attention to this factor
Good Class Bungalows Quarter 3 - 2013
Good Class Bungalows Stand the Test of Time There are about 2,700 Good Class Bungalows (GCBs) scattered across 39 demarcated estates on highly sought-after prime residential land, making them a rare type of landed housing in Singapore. Ranked at the top of the housing hierarchy, GCBs offer the exclusivity, prestige and investment value befitting their high price tags. Owing to the rarity of such luxury bungalows, GCBs have always been on the radar of high net-worth individuals (HNWIs) and in recent years demand has increased intensely, leading to record prices. The growth in the number of wealthy individuals combined with the property market run-up in 2006-07 saw demand for GCBs surge, with total transaction value reaching SGD 1.54 billion in 2007, double the SGD 0.77 billion recorded in 2005. The global financial crisis slowed the GCB market in 2008, but it rebounded quickly in 2009, with total transaction value reaching SGD 1.68 billion, only to be surpassed by a record SGD 2.19 billion in 2010. Since 2010, the government has imposed a series of measures, including sellers’ stamp duty, additional buyers’ stamp duty (ABSD), the lowering of loan limits and, most recently, the total debt servicing ratio framework (TDSR). These measures slowed the GCB market, which saw transaction values in 2011 and 2012 falling sharply to SGD 1.09 billion and SGD 1.27 billion, respectively. As GCB buyers are more likely to have multiple properties, they would have been affected by the raised ABSD implemented in January this year. For the first eight months of 2013, only 21 GCBs worth SGD 511 million were sold, signifying moderation as compared to the same period last year, when 39 GCBs were sold for a total of SGD 838 million. GCBs are also purchased for long-term investment, as their scarcity is deemed to support capital appreciation in the long run. Adopting a 10-year horizon for long-term analysis, prices of landed homes were found to have risen 113% while those of non-landed homes climbed 85% from 2003 to 2013, based on Urban Redevelopment Authority (URA) price indices. GCB prices, on the other hand, surged around 280% over the same period (based on Jones Lang LaSalle’s basket of transactions). Taking a medium–term analysis from the market trough in 2009 (after the global financial crisis) to 2013, landed home prices recorded an increase of 87%, while non-landed home prices lagged with just a 55% rise. GCB prices gained some 110% over the same period.
2013*
2011
2012
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
0
0
$psf Land Prices
* As of September 2013 Source: URA, REALIS, SISV, Jones Lang LaSalle Research
Transaction Value
200
600
150
400
100
200
50
0
* As of September 2013 Source: URA, REALIS, SISV, Jones Lang LaSalle Research
Price Index
300
250
800
2013*
500
1000
2012
600
300
2011
1000
1200
2010
900
350
2009
1500
400
1400
2008
1200
Price Trends of GCB, Landed and Non-landed
2007
2000
1600
GCB Land Price ($psf)
Transaction Value Millions ($)
1500
$psf Land Price ($)
GCB Transacted Value and $psf Land Prices
2500
0
GCB Land Price (LHS) Landed Price Index (RHS) Non-Landed Price Index (RHS)
As GCB prices climbed during the current up-cycle, four transactions above SGD 2,000 per sq ft were recorded over the past year. These are the highest rates that have been achieved for GCBs, reflecting the zealousness of buyers in the upper end of the GCB market. The bulk of GCB sales, however, have been in the SGD 1,200 to SGD 1,700 per sq ft range. A 99-year leasehold GCB in Eng Neo Avenue sold for SGD 14.8 million or SGD 887 per sq ft in 2Q13.
53 Sixth Avenue
16A Leedon Park
18B Chatsworth
22B Cornwall Gardens
Sold on 20 Sep 2012 Land Area: 10,477 sqft Sale Price: S$21,600,000 (S$2,051 psf)
Sold on 23 Sep 2012 Land Area: 15,600 sqft Sale Price: S$33,000,000 (S$2,115 psf)
Sold on 25 Sep 2012 Land Area: 11,826 sqft Sale Price: S$25,000,000 (S$2,107 psf)
Sold on 16 May 2013 Land Area: 20,719 sqft Sale Price: S$42,500,000 (S$2,051 psf)
Source: SISV Realink/ Jones Lang LaSalle Research
Looking Ahead With all the cooling measures in place, the GCB market is likely to see more modest activity. While the price expectation of sellers has not changed significantly, buyers are now more cautious and selective as the additional stamp duty provides a disincentive to buy. The sales volume of GCBs is likely to ease, while prices are likely to remain stable in the short term. Nevertheless, the long-term outlook for GCBs is positive given the limited supply against a continual growth in the number of HNWIs and GCBs remain the coveted icon of success and status to which many aspire.
GCB Transactions (Sep 2012 onwards) No
Date
Address
Land Area (sf)
Sale Price (S$)
psf (S$)
15,094 15,449 23,423 26,544 9,676 14,994 16,146 17,233 18,657 10,729 19,280
$25,800,000.00 $21,980,000.00 $26,100,000.00 $26,540,574.00 $16,800,000.00 $27,000,000.00 $22,800,000.00 $25,000,000.00 $21,980,000.00 $18,200,000.00 $27,000,000.00
$1,709 $1,423 $1,114 $1,000 $1,736 $1,801 $1,412 $1,451 $1,178 $1,696 $1,400
22,481 10,373 15,069 13,153 13,842 15,184
$25,300,000.00 $12,000,000.00 $25,000,000.00 $18,500,000.00 $20,000,000.00 $22,900,000.00
$1,125 $1,157 $1,659 $1,407 $1,445 $1,508
4Q-2012 1 2 3 4 5 6 7 8 9 10 11
01-Oct-12 01-Oct-12 05-Oct-12 09-Nov-12 02-Dec-12 02-Dec-12 07-Dec-12 07-Dec-12 12-Dec-12 15-Dec-12 19-Dec-12
3 Jervois Hill Swettenham Road 27 Olive Road 24 Yarwood Avenue 9 Jalan Senandong 9 Tyersall Road 2B Wilby Road 51 Holland Road 18 Yarwood Avenue 48 Oriole Crescent 55 Windsor Park Road 1Q-2013
1 2 3 4 5 6
01-Jan-13 11-Jan-13 20-Jan-13 23-Jan-13 15-Feb-13 27-Feb-13
2 Windsor Park Hill 290 Holland Road 19 Camden Park 2 Brizay Park 52 Oei Tiong Ham Park 8 Chee Hoon Avenue 2Q-2013
1 2
08-Apr-13 29-Apr-13
7 Brizay Park 15 Holland Heights
24,090 7,703
$24,500,000.00 $14,000,000.00
$1,017 $1,817
3
06-May-13
15 Bukit Tunggal Road
10,513
$17,500,000.00
$1,665
4
08-May-13
30 Chancery Lane
20,683
$28,500,000.00
$1,378
5
13-May-13
51 Holland Park
15,209
$28,800,000.00
$1,894
6
16-May-13
22B Cornwall Gardens
20,719
$42,500,000.00
$2,051
7
21-May-13
297 Tanglin Road
17,070
$23,500,000.00
$1,377
8
22-May-13
22 Coronation Road West
25,429
$28,000,000.00
$1,101
9 10
14-Jun-13 25-Jun-13
70 Eng Neo Avenue 63 Belmont Road
16,695 15,005
$14,800,000.00 $22,880,000.00
$887 $1,525
1 2 3 4 5
1-Jul-13 2-Jul-13 11-Jul-13 11-Jul-13 29-Jul-13
35 Jalan Sampurna 4 Jalan Asuhan & adjoining land 17 Second Avenue 18A Joan Road 16B Leedon Park
7,782 45,154 19,989 15,780 21,387
$13,900,000.00 $54,186,000.00 $37,000,000.00 $23,300,000.00 $36,880,000.00
$1,786 $1,200 $1,851 $1,477 $1,724
3Q-2013
Source: SISV Realink / Jones Lang LaSalle Research
The Good Class Bungalow (GCB) Team Tay Liam Hiap Carin Puah Claire Gent
+65 6494 3667 +65 6494 3890 +65 6494 7074
liamhiap.tay@ap.jll.com carin.puah@ap.jll.com claire.gent@ap.jll.com
CEA Registration No: R002910Z CEA Registration No: R027893B CEA Registration No: R049570D
To receive regular updates on the bungalow market and future issues of this newsletter, please contact us at the above numbers or bungalows.inv@ap.jll.com Jones Lang LaSalle Property Consultants Pte Ltd I CEA Licence number L3007326E I www.joneslanglasalle.com.sg
Good Class Bungalows Quarter 4 - 2013
Featured Bungalow The property is within the exclusive Good Class Bungalow Area of Gallop Road/ Woollerton Park. It is within walking distance to the Singapore Botanic Gardens, which is aiming to be listed as a world heritage site by UNESCO, and also close to one of the most vibrant food & beverage clusters in Singapore in the form of Tanglin Village at Dempsey Hill. The freehold property has a land area of approximately 15,970 sq ft and is generally east facing from the main gate. There is a 2-storey bungalow with an in-ground pool sitting on the slightly elevated ground. It has a total of 5 bedrooms each with an en-suite bathroom. Buyers may opt to retain the original charm of the existing bungalow by carrying out addition & alteration works, or rebuild to suit one’s lifestyle. The property is now available for sale. Please contact us for more details.
GALLOP ROAD A Difficult but Resilient Year for the Good Class Bungalow Market
The fourth quarter of 2013 saw three Good Class Bungalows (GCBs) changing hands for a total of SGD 78.2 million and this marks the second lowest quarterly transaction volume in the past 13 years. The lowest quarterly sales value was recorded in 1Q09 when three GCBs worth SGD 27.5 million were sold. On an annual basis, the sales volume of GCBs in 2013 significantly eased compared to the previous year. By end of this year, a total of 24 GCBs with an aggregate value of SGD 612.2 million had changed hands, an almost 60% reduction in sales quantum y-o-y from the 58 GCBs sold in 2012 and a more than 50% y-o-y decline in total transaction value compared to the SGD 1,271.3 million sales last year. The total land area transacted also dropped by 53.2% y-o-y from 900,310 sq ft in 2012 to 421,543 sq ft in 2013. Pertaining to deal size, the largest sale – a GCB at 4 Jalan Asuhan and an adjoining land parcel were sold together for SGD 54.2 million in July 2013 – a considerable contraction when compared to a GCB at 39A Ridout Road transacted at SGD 60.6 million in 2012. Moreover, seven sub-sized (land area less than 1,400 sqm or 15,070 sq ft) GCB deals were registered in 2013, accounting for more than a quarter of the total number of transactions. A year ago, there were a total of 58 deals of which 29, or 50.0%, were sub-sized. However, owing partially to the lower percentage share of sub-sized sales, the average GCB deal land size edged up by 13.2% y-o-y from 15,523 sq ft a year ago to the current 17,564 sq ft, and correspondingly the average deal size quantum also edged up from SGD 21.9 million in 2012 to SGD 25.5 million in 2013. It is worth noting that the average GCB transaction value has been climbing almost constantly since 1998, despite the major drop around 2010 reflected in the transaction history; and this is highly correlated with the average land price. However, signs of changes in average land prices diverging from that of the average deal value surfaced in 2008 and the two parameters have moved in opposite directions since. This notable difference is believed to be a product of the fluctuations in the average land area of GCBs sold in the market which largely follow a declining trend. Notwithstanding the softening sales indicators, the GCB land price showed resilience and continued to trend up, although marginally, at 1.90% y-o-y reaching an average price of SGD 1,499 per sq ft in 2013, up from SGD 1,471 per sq ft in 2012.
Market Outlook – Mild Recovery from a Subdued 2013 Looking ahead, the effects of the Additional Buyers’ Stamp Duty (ABSD) and Total Debt Servicing Ratio framework (TDSR) will remain relevant in the year to come as GCB owners, the majority of whom are high net worth individuals, tend to own multiple assets and find both measures hefty and expensive when investing in GCBs. Sales volume is expected to rebound moderately in 2014 as the market gradually gains capacity to absorb the impact of the cooling measures. Land prices are less likely to decline as sellers do not seem to be in any rush to dispose of their GCBs, which are excellent investment options due to their price appreciation potential in the long run. In general, the GCB market in 2014 may remain mainly a buyers’ market as purchasers are still going through a cushioning period – adjusting to the market interventions by seeking ways to offset the negative impact. GCB Annual Transacted Value and Average Land Area 2000
1600
20000
15000
1000
10000
500
5000
25.00
1200
$spf Land Prices ($)
1500
30.00
1400
Average GCB Land Area (sq ft)
Transaction Value Millions ($)
GCB Average Deal Value and $psf Land Prices
25000
20.00
1000 800
15.00
600
10.00
400 5.00
Source: URA, REALIS, SISV, Jones Lang LaSalle Research
GCB Transactions (2013) No
Date
Average GCB Land Area (sq ft)
Source: URA, REALIS, SISV, Jones Lang LaSalle Research
Annual Transaction Value (SGD million)
0
2013
2011
2012
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
0
2013
2011
2012
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
0
1997
200 0
Average Deal Value ($ million)
2500
$psf Land Prices Average Deal Value ($million)
Address
Land Area (sf)
Sale Price (S$)
psf (S$)
22,481 10,373 15,069 13,153 13,842 15,184
$25,300,000.00 $12,000,000.00 $25,000,000.00 $18,500,000.00 $20,000,000.00 $22,900,000.00
$1,125 $1,157 $1,659 $1,407 $1,445 $1,508
1Q-2013 1 2 3 4 5 6
01-Jan-13 11-Jan-13 20-Jan-13 23-Jan-13 15-Feb-13 27-Feb-13
2 Windsor Park Hill 290 Holland Road 19 Camden Park 2 Brizay Park 52 Oei Tiong Ham Park 8 Chee Hoon Avenue 2Q-2013
1 2
08-Apr-13 29-Apr-13
7 Brizay Park 15 Holland Heights
24,090 7,703
$24,500,000.00 $14,000,000.00
$1,017 $1,817
3
06-May-13
15 Bukit Tunggal Road
10,513
$17,500,000.00
$1,665
4
08-May-13
30 Chancery Lane
20,683
$28,500,000.00
$1,378
5
13-May-13
51 Holland Park
15,209
$28,800,000.00
$1,894
6
16-May-13
22B Cornwall Gardens
20,719
$42,500,000.00
$2,051
7
21-May-13
297 Tanglin Road
17,070
$23,500,000.00
$1,377
8
22-May-13
22 Coronation Road West
25,429
$28,000,000.00
$1,101
9
14-Jun-13
70 Eng Neo Avenue
16,695
$14,800,000.00
$887
10
25-Jun-13
63 Belmont Road
15,005
$22,880,000.00
$1,525
1 2 3 4 5
1-Jul-13 2-Jul-13 11-Jul-13 11-Jul-13 29-Jul-13
35 Jalan Sampurna 4 Jalan Asuhan & adjoining land 17 Second Avenue 18A Joan Road 16B Leedon Park
7,782 45,154 19,989 15,780 21,387
$13,900,000.00 $54,186,000.00 $37,000,000.00 $23,300,000.00 $36,880,000.00
$1,786 $1,200 $1,851 $1,477 $1,724
16,090 15,080 16,468
$25,200,000.00 $33,000,000.00 $20,000,000.00
$1,574 $2,188 $1,214
3Q-2013
4Q-2013 1 01-Oct-13 19 Gallop Park 2 01-Oct-13 61 Dalvey Road 3 31-Oct-13 24 White House Park Source: SISV Realink / Jones Lang LaSalle Research / URA Realis
The Good Class Bungalow (GCB) Team Tay Liam Hiap
+65 6494 3667
liamhiap.tay@ap.jll.com
CEA Registration No: R002910Z
Carin Puah
+65 6494 3890
carin.puah@ap.jll.com
CEA Registration No: R027893B
Claire Gent +65 6494 7074 claire.gent@ap.jll.com CEA Registration No: R049570D To receive regular updates on the bungalow market and future issues of this newsletter, please contact us at the above numbers or bungalows.inv@ap.jll.com Jones Lang LaSalle Property Consultants Pte Ltd I CEA Licence number L3007326E I www.joneslanglasalle.com.sg