{"id":35109,"date":"2020-06-26T17:55:34","date_gmt":"2020-06-26T09:55:34","guid":{"rendered":"https:\/\/www.99.co\/blog\/singapore\/?p=35109"},"modified":"2022-06-13T17:25:34","modified_gmt":"2022-06-13T09:25:34","slug":"lease-new-pasir-ris-bungalows-buyer","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/lease-new-pasir-ris-bungalows-buyer\/","title":{"rendered":"With 57 years of lease left, brand-new Pasir Ris bungalows find a willing buyer"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div><p>Where landed properties are concerned, the common impression of them is usually &#8216;oh, they&#8217;re freehold properties&#8217;, which means buyers get to own the land indefinitely. After all, these homes usually come with multi-million-dollar price tags, and nobody would pay that amount for, um, a leasehold bungalow, right?<\/p>\n<p>Here&#8217;s where real estate time and again proves people wrong. <strong>In early June 2020, a deal for a pair of newly-built bungalows in Pasir Ris\u2014on land with just 57 years of remaining lease\u2014was struck for close to $7 million.<\/strong> The buyer is a businessman-investor who intends to make the bungalows his family home.<\/p>\n<figure id=\"attachment_35125\" aria-describedby=\"caption-attachment-35125\" style=\"width: 600px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"wp-image-35125\" src=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2020\/06\/pasir-ris-bungalow-facade-2.jpg\" alt=\"paris ris bungalow facade\" width=\"600\" height=\"350\" srcset=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2020\/06\/pasir-ris-bungalow-facade-2.jpg 1200w, https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2020\/06\/pasir-ris-bungalow-facade-2-150x88.jpg 150w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><figcaption id=\"caption-attachment-35125\" class=\"wp-caption-text\">At first glance, you&#8217;d never guess these bungalows have 57 years of lease left.<\/figcaption><\/figure>\n<p>&nbsp;<\/p>\n<p>The deal, brokered by Propnex Group District Director Aaron Wan and OrangeTee&#8217;s Charlotte Ang and Elena Ang, was finalised soon after the lifting of circuit breaker measures. Aaron told 99.co that his client, the buyer, negotiated with the developer for a final selling price that was below valuation.<\/p>\n<p><strong>&#8220;The developer was well-aware that the value of the property will decrease with every year,&#8221;<\/strong> Aaron told 99.co. &#8220;So, they&#8217;re very glad to find someone who would buy the two bungalows at the same time, and gave my buyer a good price.&#8221;<\/p>\n<p>What&#8217;s notable about the bungalows was also its location. &#8220;These are seafront properties that are very rare in Singapore. The only comparable ones are in Punggol and Sembawang, or at Sentosa Cove, which is 99-year leasehold and has a much higher price point,&#8221; said Aaron.<\/p>\n<h2>How the short remaining lease came about<\/h2>\n<p>This landed estate in Pasir Ris is unique not only because of its location. Many of the bungalows here come under the ownership of government\/government-linked entities such as People&#8217;s Association and the Port Authority of Singapore (PSA), who use them as holiday bungalows for its staff.<\/p>\n<p>For this purpose, the Singapore Land Authority (SLA) had, decades ago, carved out 99-year leases to these entities from an original 999-year lease.<\/p>\n<p><strong>The land that the new three-storey Pasir Ris bungalows sit on was once owned by the Housing &amp; Development Board (HDB), whose lease commenced in July 1978.<\/strong> Two double storey bungalows were built, a North-facing one on the first row facing Pasir Ris Park and the sea, and the other on the second row facing South. Each bungalow occupied 8,000 square feet (sq ft).<\/p>\n<figure id=\"attachment_35119\" aria-describedby=\"caption-attachment-35119\" style=\"width: 600px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"wp-image-35119\" src=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2020\/06\/pasir-ris-bungalow-old.jpg\" alt=\"pasir ris bungalow old\" width=\"600\" height=\"394\"><figcaption id=\"caption-attachment-35119\" class=\"wp-caption-text\">The HDB-owned bungalow that was formerly on the site. Credit: Google<\/figcaption><\/figure>\n<p>&nbsp;<\/p>\n<p>In 2013, developer DC13 purchased these bungalows for $8.5 million. Subsequently, the developer re-divided the land into four plots: two three-storey bungalows were to be built facing the sea, and a three-storey semi-detached house were to be built on the second row. The sea-facing bungalows each have a land area of 5,000 sq ft, and a built-up area of 6,500 sq ft.<\/p>\n<h2>Decision to buy guided by feng shui<\/h2>\n<p>Speaking to the buyer, Thomas Wong, a 36-year-old investor and business consultant, he told us that he had been searching &#8220;high and low&#8221; for months for a suitable landed home to live in with his extended family, viewing more than 20 properties in the process.<\/p>\n<p>Then, in April, he chanced upon an online advertisement by 99.co for the Pasir Ris bungalows, which immediately piqued his interest.<\/p>\n<p>&#8220;Even though I could not view in person because it was during the circuit breaker, I immediately consulted my feng shui master,&#8221; said Thomas, who&#8217;s a strong believer in feng shui.<\/p>\n<p><strong>&#8220;He told me that, to benefit from my 42-year &#8216;big luck&#8217; cycle, I needed to live in a house that faces a water body, either a sea or river, and with trees in between.&#8221;<\/strong><\/p>\n<p>&#8220;This house is really just nice,&#8221; he enthused.<\/p>\n<p>Thomas also showed his feng shui master the floor plan of the three-storey bungalows, which was &#8220;given the &#8216;OK'&#8221;.<\/p>\n<p>He also reviewed photos and videos previously taken by the developer&#8217;s agent to market the property. One of Thomas&#8217;s favourite aspects of the house is the spacious roof terrace, which offers a panoramic sea view across Pasir Ris Park.<\/p>\n<figure id=\"attachment_35120\" aria-describedby=\"caption-attachment-35120\" style=\"width: 600px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"wp-image-35120\" src=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2020\/06\/pasir-ris-bungalow-seaview.jpg\" alt=\"pasir ris bungalow sea view\" width=\"600\" height=\"337\" srcset=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2020\/06\/pasir-ris-bungalow-seaview.jpg 2455w, https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2020\/06\/pasir-ris-bungalow-seaview-1536x863.jpg 1536w, https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2020\/06\/pasir-ris-bungalow-seaview-2048x1151.jpg 2048w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><figcaption id=\"caption-attachment-35120\" class=\"wp-caption-text\">The sea view from the roof terrace. Credit: Charlotte Ang\/OrangeTee<\/figcaption><\/figure>\n<p>&nbsp;<\/p>\n<p>Built with a minimalist, modern aesthetic and ample floor-to-ceiling windows to maximise natural light, each bungalow has 7 bedrooms\u2014including a helpers&#8217; room and an attic room\u2014as well as a private lift.<\/p>\n<figure id=\"attachment_35121\" aria-describedby=\"caption-attachment-35121\" style=\"width: 600px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"wp-image-35121\" src=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2020\/06\/pasir-ris-bungalow-airwell.png\" alt=\"pasir ris bungalow airwell natural light\" width=\"600\" height=\"651\"><figcaption id=\"caption-attachment-35121\" class=\"wp-caption-text\">The large central airwell welcomes natural light into the bungalow. Credit: Charlotte Ang\/OrangeTee<\/figcaption><\/figure>\n<p>&nbsp;<\/p>\n<h2>Short lease, no problem<\/h2>\n<p>To make an informed decision amid circuit breaker restrictions, Thomas drove past the site a few times just to get a feel of the environment, and also considered the issue of the remaining lease carefully.<\/p>\n<p>With 57 years of remaining lease, the combined price of about $7 million translates to $100,000 a year to live in each bungalow, excluding maintenance expenses.<\/p>\n<p>The price also translates to a land rate of $700 per square foot. The last transacted new-build in this neighbourhood\u2014an inter-terrace with a similar remaining lease and no sea view\u2014changed hands at a land rate of $970 per square foot.<\/p>\n<p><strong>&#8220;Ultimately, I felt that this is really value for money, especially for two new-build bungalows,&#8221;<\/strong> said Thomas, who revealed that he intends to integrate the two homes into one by tearing down the dividing wall.<\/p>\n<p>He also plans join up the bungalows&#8217; two separate 16-metre lap pools &#8220;for a more luxurious feel&#8221;.<\/p>\n<figure id=\"attachment_35122\" aria-describedby=\"caption-attachment-35122\" style=\"width: 600px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"wp-image-35122\" src=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2020\/06\/pasir-ris-bungalow-pool.png\" alt=\"pasir ris bungalow pool\" width=\"600\" height=\"335\"><figcaption id=\"caption-attachment-35122\" class=\"wp-caption-text\">Each bungalow features a lap pool. Credit: Charlotte Ang\/OrangeTee<\/figcaption><\/figure>\n<p>&nbsp;<\/p>\n<p>Towards the end of the lease, Thomas feels there&#8217;s a good chance that he can pay to top it up because most land parcels in the area have lease expiries that differ from one another.<\/p>\n<p>&#8220;It would make sense for the authorities to grant a renewal at the end of the lease, because it would be hard to redevelop this plot of land on its own,&#8221; reasoned Thomas, who will be 93-years-old when the lease expires in 2077.<\/p>\n<p><strong>Asked if he was concerned that he might not able to be pass down the bungalows to the next generation, the father-of-two was surprisingly at ease.<\/strong> &#8220;No matter what, my children will have their own properties and assets by then. And I will also have other assets they can inherit. Nothing to worry about.&#8221;<\/p>\n<figure id=\"attachment_35123\" aria-describedby=\"caption-attachment-35123\" style=\"width: 600px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2020\/06\/pasir-ris-bungalow-bedroom-view.png\" class=\"img-link media-img img-link media-img\"><img decoding=\"async\" class=\"wp-image-35123\" src=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2020\/06\/pasir-ris-bungalow-bedroom-view.png\" alt=\"pasir ris bungalow bedroom view\" width=\"600\" height=\"417\"><\/a><figcaption id=\"caption-attachment-35123\" class=\"wp-caption-text\">A family home for 57 years. Credit: Charlotte Ang\/OrangeTee<\/figcaption><\/figure>\n<p>&nbsp;<\/p>\n<h2>Will you consider buying a property with 57 years of lease left? Let us know in the comments below!<\/h2>\n<p>If you liked this article, 99.co recommends\u00a0<a href=\"https:\/\/www.99.co\/singapore\/insider\/designer-jumbo-flat-ang-mo-kio-hdb-million\/\">Designer jumbo flat is first Ang Mo Kio HDB unit to break $1 million barrier<\/a> and\u00a0<a href=\"https:\/\/www.99.co\/singapore\/insider\/balas-curve-leasehold-property-value\/\">What does Bala&#8217;s Curve tell us about leasehold property value?<\/a><\/p>\n<p>Looking for a property? Find your dream home on Singapore&#8217;s most intelligent <a href=\"http:\/\/99.co\">property portal 99.co<\/a>!<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Where landed properties are concerned, the common impression of them is usually &#8216;oh, they&#8217;re freehold properties&#8217;, which means buyers get to own the land indefinitely. After all, these homes usually come with multi-million-dollar price tags, and nobody would pay that amount for, um, a leasehold bungalow, right? Here&#8217;s where real estate time and again proves&hellip;<\/p>\n","protected":false},"author":59,"featured_media":35125,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","_lmt_disableupdate":"","_lmt_disable":"","_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[53912,57131],"tags":[54098,56008,53663,53971,55045],"persona":[],"class_list":{"2":"type-post","14":"entry","15":"has-post-thumbnail"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.7.1 (Yoast SEO v25.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>With 57 years of lease left, brand-new Pasir Ris bungalows find a willing buyer - 99.co<\/title>\n<meta name=\"description\" content=\"Recently, a keen buyer snapped up a pair of new-build Pasir Ris bungalows with just 57 years of lease left. 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