Posted by goldenpeace on January 31, 2009
I refer to the letter, ‘Property Agents Mislead With Ads’ by Dr and Mrs Rupert See (Life! Jan 17).
The Institute of Estate Agents (IEA) is very much concerned with the product knowledge, skills, ethics and professionalism of estate agents.
For a better regulated industry, IEA has been advocating mandatory regulations such as pre-requisite qualifications and licensing of estate agents to ensure that they are properly trained and qualified before they are allowed to practise. Over the years, non-compulsory measures that were implemented have proven inadequate to lift industry standards.
I empathise with Dr and Mrs See regarding their unpleasant encounters with estate agents. There is no excuse for agents to act improperly, using false or inaccurate advertising to mislead their customers. Such acts betray the trust of their customers and give the other estate agents a bad name.
IEA is concerned about the unprofessional conduct of those who act as ‘runners or salesmen’. Such individuals perform a perfunctory role on behalf of others in showing the property, usually with little or no product knowledge. IEA is aware of such practices although it does not sanction this.
Mandatory regulations should be implemented to eventually license all estate agents. With proper legislation in place, every agent can then be held accountable. Service standards and professionalism will be raised and it will be good for consumers too.
Jeff FooPresident, Institute of Estate Agents
Source : Straits Times - 31 Jan 2009
Saturday, January 31, 2009
Thursday, January 29, 2009
Rush for URA approvals before window closed
Posted by goldenpeace on January 29, 2009
All’s quiet on the property front but developers secured a raft of approvals (provisional permission) for private residential projects from the Urban Redevelopment Authority in the last quarter of 2008.
The key reason for this is that developers rushed to make their submissions for provisional permission (PP) before a new ruling that scraps the exemption of bay windows and planter boxes from gross floor area (GFA) took effect on Jan 1, noted Credo Real Estate MD Karamjit Singh.
He said: ‘With effect from Jan 1, 2009, for any submission for PP, URA will consider bay windows and planter boxes as part of GFA, and that brings down the total saleable area in a project by about 5-12 per cent. So developers were making submissions to secure PP before the change in ruling kicked in - even if they didn’t intend to develop or launch their projects in the near future, given the current downturn.’
Agreeing, DTZ executive director Ong Choon Fah said: ‘Bay windows and planter boxes are an important contributor to developers’ profit margins. In the past when they bought land, they would have assumed these would be exempt from GFA.’
Hong Realty (part of the Hong Leong Group) received PP in Q4 2008 for a 1,517-unit condo project at Pasir Ris Drive 8, while Far East Organization unit Arts Associate Co secured URA’s approval for a 234-unit condo at Jalan Datoh/Jalan Dusun in the Balestier area. And Bukit Sembawang bagged PP for a 200-unit condo at St Thomas Walk.
Horizon Partners Pte Ltd - whose shareholders are Hotel Properties, Morgan Stanley Real Estate and Qatar Investment Authority - picked up URA’s consent to develop a 253-unit condo and eight detached houses on the Horizon Towers site at Leonie Hill Road.
URA also granted PP between October and December to NTUC Choice Homes unit Choice Homes Gamma for a 571-unit condo at Lor 2/3 Toa Payoh; to TID Pte Ltd for a 282-unit condo at New Upper Changi Road/ Tanah Merah Kechil Ave; and to an MCL Land unit for a 520-unit condo at Yishun Ave 1/2 fronting Lower Seletar Reservoir. The three proposed developments are on 99-year leasehold sites sold through the Government Land Sales Programme last year.
Casuarina Properties, controlled by the Lee Foundation and members of the Lee family, received URA’s permission for a cluster housing development at Mount Rosie comprising 191 terrace homes and two semi-detached units.
The proposed Pasir Ris condo project by Hong Realty is on a massive 2.1 million square feet plot that Hong Leong Group owns in Pasir Ris - which the 1,822-unit Livia condo launched last year is part of. City Developments has a 51 per cent stake in the site. Sources say the site was bought for just $10 million decades ago, was originally treated as land for rural or agricultural use and had restrictions on its title.
In the commercial property segment, Hotel 81-linked Citywide Land secured PP to develop a 902-room hotel at Kallang Road in Q4. The project will also have about 4,090 sq ft gross floor area of shop space.
At Jalan Besar/Laven- der Street, Prominent Plaza Investments/Prominent Site Pte Ltd secured URA’s consent to develop about 133,800 sq ft of offices and 13,500 sq ft of shop space. Over at Changi Business Park Ave 1, United Engineers Developments picked up URA’s consent for a project comprising a 301-room hotel and 59,740 sq ft of shop space.
URA also approved several industrial property projects in Q4. Keppel Shipyard received PP for additions and alterations to its existing factory at Pioneer Sector 1, as did Yamazaki Mazak Singapore for its existing plant at Joo Koon Circle.
URA also granted PP for factory developments to General Magnetics (at Lorong 4 Toa Payoh), Index-Cool Furniture Design & Construction’s (Eunos Avenue 3) and Oxley Opportunity #9 Pte Ltd (Pioneer Crescent).
Source : Business Times - 29 Jan 2009
All’s quiet on the property front but developers secured a raft of approvals (provisional permission) for private residential projects from the Urban Redevelopment Authority in the last quarter of 2008.
The key reason for this is that developers rushed to make their submissions for provisional permission (PP) before a new ruling that scraps the exemption of bay windows and planter boxes from gross floor area (GFA) took effect on Jan 1, noted Credo Real Estate MD Karamjit Singh.
He said: ‘With effect from Jan 1, 2009, for any submission for PP, URA will consider bay windows and planter boxes as part of GFA, and that brings down the total saleable area in a project by about 5-12 per cent. So developers were making submissions to secure PP before the change in ruling kicked in - even if they didn’t intend to develop or launch their projects in the near future, given the current downturn.’
Agreeing, DTZ executive director Ong Choon Fah said: ‘Bay windows and planter boxes are an important contributor to developers’ profit margins. In the past when they bought land, they would have assumed these would be exempt from GFA.’
Hong Realty (part of the Hong Leong Group) received PP in Q4 2008 for a 1,517-unit condo project at Pasir Ris Drive 8, while Far East Organization unit Arts Associate Co secured URA’s approval for a 234-unit condo at Jalan Datoh/Jalan Dusun in the Balestier area. And Bukit Sembawang bagged PP for a 200-unit condo at St Thomas Walk.
Horizon Partners Pte Ltd - whose shareholders are Hotel Properties, Morgan Stanley Real Estate and Qatar Investment Authority - picked up URA’s consent to develop a 253-unit condo and eight detached houses on the Horizon Towers site at Leonie Hill Road.
URA also granted PP between October and December to NTUC Choice Homes unit Choice Homes Gamma for a 571-unit condo at Lor 2/3 Toa Payoh; to TID Pte Ltd for a 282-unit condo at New Upper Changi Road/ Tanah Merah Kechil Ave; and to an MCL Land unit for a 520-unit condo at Yishun Ave 1/2 fronting Lower Seletar Reservoir. The three proposed developments are on 99-year leasehold sites sold through the Government Land Sales Programme last year.
Casuarina Properties, controlled by the Lee Foundation and members of the Lee family, received URA’s permission for a cluster housing development at Mount Rosie comprising 191 terrace homes and two semi-detached units.
The proposed Pasir Ris condo project by Hong Realty is on a massive 2.1 million square feet plot that Hong Leong Group owns in Pasir Ris - which the 1,822-unit Livia condo launched last year is part of. City Developments has a 51 per cent stake in the site. Sources say the site was bought for just $10 million decades ago, was originally treated as land for rural or agricultural use and had restrictions on its title.
In the commercial property segment, Hotel 81-linked Citywide Land secured PP to develop a 902-room hotel at Kallang Road in Q4. The project will also have about 4,090 sq ft gross floor area of shop space.
At Jalan Besar/Laven- der Street, Prominent Plaza Investments/Prominent Site Pte Ltd secured URA’s consent to develop about 133,800 sq ft of offices and 13,500 sq ft of shop space. Over at Changi Business Park Ave 1, United Engineers Developments picked up URA’s consent for a project comprising a 301-room hotel and 59,740 sq ft of shop space.
URA also approved several industrial property projects in Q4. Keppel Shipyard received PP for additions and alterations to its existing factory at Pioneer Sector 1, as did Yamazaki Mazak Singapore for its existing plant at Joo Koon Circle.
URA also granted PP for factory developments to General Magnetics (at Lorong 4 Toa Payoh), Index-Cool Furniture Design & Construction’s (Eunos Avenue 3) and Oxley Opportunity #9 Pte Ltd (Pioneer Crescent).
Source : Business Times - 29 Jan 2009
Tougher rules cut queue for new HDB flats
Posted by goldenpeace on January 29, 2009
THE queue of buyers for new Housing Board flats has become shorter and it is moving faster too.
Serious house-buyers are getting the flats they want sooner because a group of ‘frivolous’ buyers, who used to clog up the queue and waste everyone’s time by rejecting flats offered to them, appear to have dropped out.
The change has followed new HDB rules introduced last May to deter time-wasters from applying for flats they are not really keen to buy.
The HDB says that since the change, the number of applications has dropped. It now gets two to three times the number of applications than flats available; previously, the number received could be 5.6 times the number of flats.
Fewer are also turning down the flats offered to them. The rejection rate used to be between 22 and 77 per cent; now it is between 14 and 50 per cent.
The changed behaviour of applicants is seen as a vindication of the HDB’s ‘two strikes and you’re out’ approach to discourage frivolous applications. People appear to be more selective when applying and more likely to say yes when offered a flat.
The rule change meant that a first-time buyer who rejects an offer to buy a flat twice or more in any HDB sales exercise, loses his first-timer priority for a year. That effectively moves him to the back of the queue with second-timers.
Mr Mark Zhou, 26, a first-time home buyer working in the financial industry, said the change made him think twice before applying. ‘I think the new rules have changed the behaviour of home buyers for the better,’ he said. ‘It makes getting a flat more efficient, and people give it more serious thought before applying.’
Chesterton Suntec International head of research and consultancy Colin Tan said the change has likely ’shortened the whole booking process’.
Property agency ERA Asia-Pacific’s associate director Eugene Lim said latest data has proved that the new rules do work. ‘Demand has stabilised due to the tweaking of rules, and also due to market sentiment. First-timers are shown to be taking their applications seriously,’ he said.
The changes have also reduced the HDB’s administrative load considerably.
Previously, a new HDB project would see many more applicants than units, but the high rejection rate would see many flats still available for sale in the end.
After the rule change, projects such as Compassvale Pearl in Sengkang last May saw no units left over.
The tougher HDB regime was put in place to allay growing concern that the thousands of applications for HDB’s build-to-order (BTO) projects bore little relation to the actual take-up rate.
Demand for new flats picked up at the end of 2007 and shot up last year after young couples priced out of the resale market swamped the HDB with applications for new homes.
Such homes are only built when a set demand level is reached, take up to three years to complete, and are typically cheaper than flats in the resale market.
Source : Straits Times - 29 Jan 2009
THE queue of buyers for new Housing Board flats has become shorter and it is moving faster too.
Serious house-buyers are getting the flats they want sooner because a group of ‘frivolous’ buyers, who used to clog up the queue and waste everyone’s time by rejecting flats offered to them, appear to have dropped out.
The change has followed new HDB rules introduced last May to deter time-wasters from applying for flats they are not really keen to buy.
The HDB says that since the change, the number of applications has dropped. It now gets two to three times the number of applications than flats available; previously, the number received could be 5.6 times the number of flats.
Fewer are also turning down the flats offered to them. The rejection rate used to be between 22 and 77 per cent; now it is between 14 and 50 per cent.
The changed behaviour of applicants is seen as a vindication of the HDB’s ‘two strikes and you’re out’ approach to discourage frivolous applications. People appear to be more selective when applying and more likely to say yes when offered a flat.
The rule change meant that a first-time buyer who rejects an offer to buy a flat twice or more in any HDB sales exercise, loses his first-timer priority for a year. That effectively moves him to the back of the queue with second-timers.
Mr Mark Zhou, 26, a first-time home buyer working in the financial industry, said the change made him think twice before applying. ‘I think the new rules have changed the behaviour of home buyers for the better,’ he said. ‘It makes getting a flat more efficient, and people give it more serious thought before applying.’
Chesterton Suntec International head of research and consultancy Colin Tan said the change has likely ’shortened the whole booking process’.
Property agency ERA Asia-Pacific’s associate director Eugene Lim said latest data has proved that the new rules do work. ‘Demand has stabilised due to the tweaking of rules, and also due to market sentiment. First-timers are shown to be taking their applications seriously,’ he said.
The changes have also reduced the HDB’s administrative load considerably.
Previously, a new HDB project would see many more applicants than units, but the high rejection rate would see many flats still available for sale in the end.
After the rule change, projects such as Compassvale Pearl in Sengkang last May saw no units left over.
The tougher HDB regime was put in place to allay growing concern that the thousands of applications for HDB’s build-to-order (BTO) projects bore little relation to the actual take-up rate.
Demand for new flats picked up at the end of 2007 and shot up last year after young couples priced out of the resale market swamped the HDB with applications for new homes.
Such homes are only built when a set demand level is reached, take up to three years to complete, and are typically cheaper than flats in the resale market.
Source : Straits Times - 29 Jan 2009
District 09 - The Suites At Central
Located at Devonshire Road, The Suites at Central comprises an exquisite collection of 157 freehold condominium units. Sitting on an 80,000-sf site, the development is conveniently located within walking distance to the Somerset MRT station and the Orchard Road shopping belt, enjoying a rare combination of exclusivity and accessibility.The 33-storey twin tower condominium development with modern architectural design offers ample living space with views all round, with units sizes ranging from 630 sf for studio units to 3,730 sf for penthouses. Facilities will include a free-form swimming pool and lap pool, gymnasium, clubhouse, children’s play area and barbecue pits.
Developer: Devonshire Developments Pte Ltd. (Keppel Land)
Location: 57, Devonshire Road
Type of development: Condominium
Tenure: Freehold
Expected TOP: Mid 2009
No of Units: 157
Sales Status: 100% sold
Units Details:-
- Studio suites ~ 624sqft, 635sqft, 657sqft, 667sqft
- 2 bedroom suites ~ 1,066sqft to 1,076sqft
- 3 bedroom suites ~ 1,345sqft to 1,475sqft
- 4 bedroom suites ~ 1,679sqft to 1,765sqft
- Penthouse suites ~ 2,756sqft to 3,670sqft
Wednesday, January 28, 2009
Help for cash-strapped home buyers
Posted by goldenpeace on January 28, 2009
Some developers are considering granting payment extensions to their home buyers if they face difficulty paying up when the projects get Temporary Occupation Permit (TOP), BT understands. Buyers on the deferred payment scheme (DPS) will have to pay up the chunk of the purchase price then.
Developers may give buyers a longer period to pay, or work out an instalment programme for them to complete the purchase of their units.
It is still early days but BT understands a few developers are prepared for this eventuality for projects in Sentosa and Districts 9 and 10.
A seasoned developer said: ‘I think if the buyer demonstrates good faith that he intends to pay up eventually (by committing to make regular payments), developers should try to be sympathetic. The whole idea is to get buyers to commit more than the 20 per cent they’ve paid so far under DPS. If they’re able to do this, it’s better than taking them to court.
‘There’s not much point taking financially-strapped buyers to court and suing them for specific performance to make them complete their purchase at the contracted price. The most is, we’ll make them bankrupt. It doesn’t serve our purpose.’
Some developers could already be letting buyers send in their payments late. A banker who handles property investments for overseas buyers said that in some cases developers were letting his clients send them cheques for their homes three or four months late. ‘They are not chasing them for the money,’ he said.
Frasers Centrepoint Homes chief operating officer Cheang Kok Kheong told BT the group has two residential projects for TOP in Q3 2009 - One Jervois and One St Michael’s. ‘Based on the prices at which we sold to DPS customers and the current market prices, there’s still a comfortable gap in favour of our DPS buyers. If buyers have difficulty getting loans, from an economic viewpoint, the best thing to do would be to sell their units in the market,’ he said. Frasers Centrepoint did not extend DPS to subsale buyers.
‘Generally, I think most projects that TOP this year would have been launched in 2006 or early 2007 before the market peaked, so assuming developers offered DPS to primary market buyers only, the DPS buyers should still be comfortable. Of course a lot will depend on how home prices fare this year. But DPS buyers in projects that will TOP in 2010 may face some difficulty,’ Mr Cheang added.
Analysts say not all developers may be able to help troubled buyers. If problem cases are few, developers may use existing cashflow to accommodate payment extensions. But if the incidence is widespread, developers may need the support of their own banks before they can give more breathing room to buyers.
Repayment plans will also have to be customised according to buyers’ circumstances and they’ll have to prove they’re in financial difficulty.
Developers are entitled to pocket interest on any late payments from buyers beyond a 14-day deadline, under the prescribed Sale & Purchase Agreement for private properties. The interest is calculated on a daily basis at the rate of 2 per cent above the average of the prevailing prime lending rates of the three local banks. However, a spokeswoman for the Urban Redevelopment Authority said it is up to the developer to exercise his contractual right. ‘That is, the developer may waive the interest for late payment, in full or in part, if he wishes to,’ she added.
Developers say they’ll be judicious in granting payment extensions. ‘In some cases, we’ll sue for specific performance, if the buyers aren’t in financial difficulty and are just trying to walk away from the deal,’ the seasoned developer added.
City Developments Ltd (CDL), which expects City Square Residences to obtain TOP this year, told BT that ‘to date, only a small number of DPS clients have approached us for help’.
‘While these clients have a legal obligation to fulfil the terms under the contract, for cases which are genuine, we’ve tried our best to help. We have referred to banks loyal CDL customers and those with good financial track records. We also offer other forms of assistance where appropriate on a case-by-case basis,’ a CDL spokeswoman said.
DTZ’s senior director (research) Chua Chor Hoon advises buyers facing hardship to inform developers early to try and work out some instalment schedule rather than keeping mum.
Developers are also weighing other options, including asking buyers if they’d like to exchange their units for smaller ones (if any unsold units are available) to reduce their financial commitment. Some developers are also prepared to help buyers find tenants to help them generate cashflow on their investment. Far East Organization, for example, has an in-house leasing team to find tenants for properties. The scheme was launched in 2006, and could well gain some impetus during these hard times. Other developers have been helping DPS buyers get loans by introducing them to their bankers.
Already, innovative financing schemes that mimic DPS (which was scrapped in October 2007) are aplenty as developers try to make their homes more appealing. At Roxy Homes’ Nova 88, the developer has tied up with OCBC Bank to absorb the interest rate due from buyers during the construction period. Buyers, having secured a bank loan, need not make any payment to the bank until the TOP. Then, the buyer will have to start making loan payments.
‘Buyers expect these kind of schemes now,’ said Teo Hong Lim, chief executive of listed Roxy-Pacific, the parent company of Roxy Homes. ‘Those projects that don’t offer such schemes are at a disadvantage,’ he added. A market watcher estimated that up to 90 per cent of projects launched in recent months offer some variation of this scheme.
Source : Business Times - 28 Jan 2009
Some developers are considering granting payment extensions to their home buyers if they face difficulty paying up when the projects get Temporary Occupation Permit (TOP), BT understands. Buyers on the deferred payment scheme (DPS) will have to pay up the chunk of the purchase price then.
Developers may give buyers a longer period to pay, or work out an instalment programme for them to complete the purchase of their units.
It is still early days but BT understands a few developers are prepared for this eventuality for projects in Sentosa and Districts 9 and 10.
A seasoned developer said: ‘I think if the buyer demonstrates good faith that he intends to pay up eventually (by committing to make regular payments), developers should try to be sympathetic. The whole idea is to get buyers to commit more than the 20 per cent they’ve paid so far under DPS. If they’re able to do this, it’s better than taking them to court.
‘There’s not much point taking financially-strapped buyers to court and suing them for specific performance to make them complete their purchase at the contracted price. The most is, we’ll make them bankrupt. It doesn’t serve our purpose.’
Some developers could already be letting buyers send in their payments late. A banker who handles property investments for overseas buyers said that in some cases developers were letting his clients send them cheques for their homes three or four months late. ‘They are not chasing them for the money,’ he said.
Frasers Centrepoint Homes chief operating officer Cheang Kok Kheong told BT the group has two residential projects for TOP in Q3 2009 - One Jervois and One St Michael’s. ‘Based on the prices at which we sold to DPS customers and the current market prices, there’s still a comfortable gap in favour of our DPS buyers. If buyers have difficulty getting loans, from an economic viewpoint, the best thing to do would be to sell their units in the market,’ he said. Frasers Centrepoint did not extend DPS to subsale buyers.
‘Generally, I think most projects that TOP this year would have been launched in 2006 or early 2007 before the market peaked, so assuming developers offered DPS to primary market buyers only, the DPS buyers should still be comfortable. Of course a lot will depend on how home prices fare this year. But DPS buyers in projects that will TOP in 2010 may face some difficulty,’ Mr Cheang added.
Analysts say not all developers may be able to help troubled buyers. If problem cases are few, developers may use existing cashflow to accommodate payment extensions. But if the incidence is widespread, developers may need the support of their own banks before they can give more breathing room to buyers.
Repayment plans will also have to be customised according to buyers’ circumstances and they’ll have to prove they’re in financial difficulty.
Developers are entitled to pocket interest on any late payments from buyers beyond a 14-day deadline, under the prescribed Sale & Purchase Agreement for private properties. The interest is calculated on a daily basis at the rate of 2 per cent above the average of the prevailing prime lending rates of the three local banks. However, a spokeswoman for the Urban Redevelopment Authority said it is up to the developer to exercise his contractual right. ‘That is, the developer may waive the interest for late payment, in full or in part, if he wishes to,’ she added.
Developers say they’ll be judicious in granting payment extensions. ‘In some cases, we’ll sue for specific performance, if the buyers aren’t in financial difficulty and are just trying to walk away from the deal,’ the seasoned developer added.
City Developments Ltd (CDL), which expects City Square Residences to obtain TOP this year, told BT that ‘to date, only a small number of DPS clients have approached us for help’.
‘While these clients have a legal obligation to fulfil the terms under the contract, for cases which are genuine, we’ve tried our best to help. We have referred to banks loyal CDL customers and those with good financial track records. We also offer other forms of assistance where appropriate on a case-by-case basis,’ a CDL spokeswoman said.
DTZ’s senior director (research) Chua Chor Hoon advises buyers facing hardship to inform developers early to try and work out some instalment schedule rather than keeping mum.
Developers are also weighing other options, including asking buyers if they’d like to exchange their units for smaller ones (if any unsold units are available) to reduce their financial commitment. Some developers are also prepared to help buyers find tenants to help them generate cashflow on their investment. Far East Organization, for example, has an in-house leasing team to find tenants for properties. The scheme was launched in 2006, and could well gain some impetus during these hard times. Other developers have been helping DPS buyers get loans by introducing them to their bankers.
Already, innovative financing schemes that mimic DPS (which was scrapped in October 2007) are aplenty as developers try to make their homes more appealing. At Roxy Homes’ Nova 88, the developer has tied up with OCBC Bank to absorb the interest rate due from buyers during the construction period. Buyers, having secured a bank loan, need not make any payment to the bank until the TOP. Then, the buyer will have to start making loan payments.
‘Buyers expect these kind of schemes now,’ said Teo Hong Lim, chief executive of listed Roxy-Pacific, the parent company of Roxy Homes. ‘Those projects that don’t offer such schemes are at a disadvantage,’ he added. A market watcher estimated that up to 90 per cent of projects launched in recent months offer some variation of this scheme.
Source : Business Times - 28 Jan 2009
Tuesday, January 27, 2009
Carrots galore for home buyers
Posted by goldenpeace on January 27, 2009
With the property market currently at a standstill, developers and agents are dangling carrots with the hope that buyers will bite.
Cash hongbao, stamp duty waivers and outright discounts of as much as 50 per cent have all been rolled out to entice home buyers.
Some agents have also resorted to tricks such as advertising an unusually low price for a unit, just to get home buyers to call.
And this could be just the tip of the iceberg, said property experts. In past recessions, developers have been known to offer free cars with certificates of entitlement, years of maintenance fee waivers and free interior decoration services.
No other sweetener interests buyers more than price discounts, according to property agents.
As buyers adopt a wait-and-see attitude towards buying property, an increasing number of developments have slashed their prices - some by as much as 50 per cent.
AG Capital’s The Aristo@Amber for example, has had its prices cut from about $1,700 per sq ft (psf) last July to $900 psf last month.
At City Square Residences in Kitchener Road by City Developments, prices have fallen from a high of over $1,000 psf last year to less than $800 psf for some units recently
Developers are also giving non-official discounts to buyers who bother to haggle.
Businessman Derrick Wong, 44, who has been shopping for an apartment, said he was offered discounts ranging from 6 to 10 per cent even before he asked.
‘These developers seem really desperate to sell. A year ago, when the property market was booming, getting a 3 per cent discount was unimaginable,’ he said.
The most common sweetener offered by property developers, it seems, is a stamp duty waiver.
Of the 10 new property developments The Sunday Times checked with, eight cited waiving stamp duty fees as a perk for buyers.
Stamp duty is a tax on commercial and legal documents that buyers have to pay. It is about 3 per cent of the transacted price of a property.
It may not sound like a lot, but stamp duty fees for a $1 million property can come up to $30,000. Buyers can pay the amount by cash or from their Central Provident Fund monies.
Other developers are luring home seekers with cash giveaways.
Far East Organization, for example, is giving out $12,888 hongbao to the first eight buyers of the Lakeshore and Hillview Regency condominiums starting today.
Agents marketing its Waterfront Waves condominium in Bedok Reservoir also recently text-messaged their clients informing them of hongbao giveaways of up to $12,888 for those who buy now.
But developers say the hongbao are not bait.
‘The hongbao are meant to add to the good cheer of the season, rather than a sweetener per se,’ said a Far East Organization spokesman.
Still, agents are so keen to sell that some even offer to open showflats at night and during the Chinese New Year public holiday specially for busy potential buyers.
One agent who is marketing a new apartment project in the east said that he would open showflats for clients as late as 10pm.
‘Most of our clients are professionals who work until very late. Some even work on weekends. So we try to accommodate their schedules as much as we can,’ he said.
Stories of agents using dirty tricks have also surfaced.
Engineer Aloysius Tan spotted an online advertisement for a two-bedroom Bayshore apartment selling for $680,000. But when he called the agent, he was told that the price is actually $1.2 million.
The agent then tried to push to him the other apartments she was selling that fell within his $700,000 budget.
Said Mr Tan, 29: ‘I don’t understand how the agent could have got the price wrong in the ad, unless she had the intention to deceive in the first place.’
Other home shoppers say agents would entice them to visit showflats with the promise of discounts, although they would not say how much.
Said housewife Rina Mohamed, 37: ‘The agents will make us go down to the showflat and then we find out they are offering just $1,000 to $2,000 worth of discounts. What a waste of time.’
In the East Coast and Telok Kurau area, where more than 15 new residential developments will be ready in the next few years, competition is especially stiff among property agents.
Some have resorted to bad-mouthing their competitors to buyers and are all too happy to list the inferior qualities of the other developments.
Said Mrs S. Goh, 32, a teacher: ‘Sometimes, I find agents tend to focus more on the negative points of other developments instead of marketing their own projects.’
Source : Sunday Times - 25 Jan 2009
With the property market currently at a standstill, developers and agents are dangling carrots with the hope that buyers will bite.
Cash hongbao, stamp duty waivers and outright discounts of as much as 50 per cent have all been rolled out to entice home buyers.
Some agents have also resorted to tricks such as advertising an unusually low price for a unit, just to get home buyers to call.
And this could be just the tip of the iceberg, said property experts. In past recessions, developers have been known to offer free cars with certificates of entitlement, years of maintenance fee waivers and free interior decoration services.
No other sweetener interests buyers more than price discounts, according to property agents.
As buyers adopt a wait-and-see attitude towards buying property, an increasing number of developments have slashed their prices - some by as much as 50 per cent.
AG Capital’s The Aristo@Amber for example, has had its prices cut from about $1,700 per sq ft (psf) last July to $900 psf last month.
At City Square Residences in Kitchener Road by City Developments, prices have fallen from a high of over $1,000 psf last year to less than $800 psf for some units recently
Developers are also giving non-official discounts to buyers who bother to haggle.
Businessman Derrick Wong, 44, who has been shopping for an apartment, said he was offered discounts ranging from 6 to 10 per cent even before he asked.
‘These developers seem really desperate to sell. A year ago, when the property market was booming, getting a 3 per cent discount was unimaginable,’ he said.
The most common sweetener offered by property developers, it seems, is a stamp duty waiver.
Of the 10 new property developments The Sunday Times checked with, eight cited waiving stamp duty fees as a perk for buyers.
Stamp duty is a tax on commercial and legal documents that buyers have to pay. It is about 3 per cent of the transacted price of a property.
It may not sound like a lot, but stamp duty fees for a $1 million property can come up to $30,000. Buyers can pay the amount by cash or from their Central Provident Fund monies.
Other developers are luring home seekers with cash giveaways.
Far East Organization, for example, is giving out $12,888 hongbao to the first eight buyers of the Lakeshore and Hillview Regency condominiums starting today.
Agents marketing its Waterfront Waves condominium in Bedok Reservoir also recently text-messaged their clients informing them of hongbao giveaways of up to $12,888 for those who buy now.
But developers say the hongbao are not bait.
‘The hongbao are meant to add to the good cheer of the season, rather than a sweetener per se,’ said a Far East Organization spokesman.
Still, agents are so keen to sell that some even offer to open showflats at night and during the Chinese New Year public holiday specially for busy potential buyers.
One agent who is marketing a new apartment project in the east said that he would open showflats for clients as late as 10pm.
‘Most of our clients are professionals who work until very late. Some even work on weekends. So we try to accommodate their schedules as much as we can,’ he said.
Stories of agents using dirty tricks have also surfaced.
Engineer Aloysius Tan spotted an online advertisement for a two-bedroom Bayshore apartment selling for $680,000. But when he called the agent, he was told that the price is actually $1.2 million.
The agent then tried to push to him the other apartments she was selling that fell within his $700,000 budget.
Said Mr Tan, 29: ‘I don’t understand how the agent could have got the price wrong in the ad, unless she had the intention to deceive in the first place.’
Other home shoppers say agents would entice them to visit showflats with the promise of discounts, although they would not say how much.
Said housewife Rina Mohamed, 37: ‘The agents will make us go down to the showflat and then we find out they are offering just $1,000 to $2,000 worth of discounts. What a waste of time.’
In the East Coast and Telok Kurau area, where more than 15 new residential developments will be ready in the next few years, competition is especially stiff among property agents.
Some have resorted to bad-mouthing their competitors to buyers and are all too happy to list the inferior qualities of the other developments.
Said Mrs S. Goh, 32, a teacher: ‘Sometimes, I find agents tend to focus more on the negative points of other developments instead of marketing their own projects.’
Source : Sunday Times - 25 Jan 2009
Monday, January 26, 2009
Calling off home deals not easy
Posted by goldenpeace on January 26, 2009
In every downturn, there will be some investors or speculators - made desperate by the change in market direction - who want to get out of their private home deals.
Property consultants said they have of late received calls from such buyers seeking ways to get out of their purchases. A litigator, who declined to be named, said inquiries on this matter started flowing in late last year.
The Real Estate Developers’ Association of Singapore has indeed reminded buyers that they cannot just walk away from their sales contracts and return their units.
Its honorary legal adviser Kwa Kim Li reminded buyers of that point again when she spoke at a construction and property prospects seminar earlier this month.
Try as these buyers might, if they have inked a sale and purchase agreement, they have little chance of getting out of a binding contract, property consultants and lawyers said.
Buyers who had bought on deferred payment in 2006 and 2007 in particular are having cold feet as the completion date of their developments approaches and the bulk of the payment is due.
The Government revealed late last year that there were 10,450 uncompleted private homes bought under the deferred payment scheme, which allows buyers to pay just 10 to 20 per cent up front for an uncompleted home and the rest upon completion.
Market watchers had cautioned that the already weak property market would be hit hard by potential defaults, should many buyers fail to follow through with their deals.
Whether they can or cannot do so, there are apparently a sizeable number of buyers out there who are willing to forfeit their 20 per cent deposit to get out of a long-term commitment they never planned for, particularly in Singapore’s sharpest and deepest recession, industry sources said.
‘If you are at the option stage, you can walk away.
‘But once you exercise it, you can’t walk away unless you declare yourself a bankrupt,’ said Jones Lang LaSalle head of residential Jacqueline Wong.
A purchase starts with the seller making an irrevocable offer - an Option to Purchase - to the buyer, so that he will not sell the same property within a period of usually 14 days to another buyer.
The buyer can walk away at this stage.
But after he exercises the Option to Purchase, he cannot do so as a binding contract has been created.
How the rules work…
Under Singapore’s Housing Developers Rules, a buyer who wants to walk away from or repudiate his sale and purchase agreement has to get the developer to agree to it.
‘If the purchaser fails to pay an instalment, the vendor (developer or seller) has a right to choose to annul the sale and purchase agreement or to claim against the purchaser for the unpaid instalment as a debt,’ said Ms Foo Soon Yien, director of Bernard & Rada Law Corp.
If it is the former, the vendor has the right to keep 20 per cent of the purchase price as well as the interest from all unpaid instalments, and resell the unit, she said.
If he chooses the second option, he can take legal action, obtain judgment and enforce it against the buyer to compel him to pay.
That’s not all. The buyer also has further liability to meet any price shortfall if the property is sold at a lower price, said Mr Lim Ker Sheon, a director at law firm Characterist.
Pandora’s box
While they can allow it, developers have no wish to let buyers walk away in a weak market as they would have problems selling the units they take back, experts said.
‘If a developer agrees, it will be like opening a Pandora’s box. Nobody will agree to it,’ said Ms Wong.
‘On the flip side, in a bull run, the seller or developer can’t turn around and tell the buyer to offload it back to them just because they can sell it at a higher price.’
A more likely scenario would see the developer taking the buyer to court and declaring him a bankrupt, she said.
Marco Polo Developments, now known as Wheelock Properties (Singapore), did sue those who defaulted on the progress payments for its posh Ardmore Park project due to the 1997 Asian financial crisis and win some suits.
‘Usually, the threat of a legal suit is enough to wake the buyer up,’ said Ms Wong.
Still, a number of Indonesians walked away from their purchases during the Asian financial crisis and disappeared, said an industry veteran who declined to be named.
What next for buyers?
Buyers who have difficulty paying for their purchases will have to sell the properties at a lower price.
Under genuine circumstances where the buyer wants to pay but has problems doing so, the developers may, on a case-by-case basis, offer alternative payment modes such as staggered payments or instalments, consultants said.
‘They may choose to allow the buyers a longer period to repay, with or without interest,’ said the industry veteran, adding that the critical stage where potential defaults are concerned has yet to come.
‘In every downturn, there will be people who want to walk away but can’t.’
Source : Sunday Times - 25 Jan 2009
In every downturn, there will be some investors or speculators - made desperate by the change in market direction - who want to get out of their private home deals.
Property consultants said they have of late received calls from such buyers seeking ways to get out of their purchases. A litigator, who declined to be named, said inquiries on this matter started flowing in late last year.
The Real Estate Developers’ Association of Singapore has indeed reminded buyers that they cannot just walk away from their sales contracts and return their units.
Its honorary legal adviser Kwa Kim Li reminded buyers of that point again when she spoke at a construction and property prospects seminar earlier this month.
Try as these buyers might, if they have inked a sale and purchase agreement, they have little chance of getting out of a binding contract, property consultants and lawyers said.
Buyers who had bought on deferred payment in 2006 and 2007 in particular are having cold feet as the completion date of their developments approaches and the bulk of the payment is due.
The Government revealed late last year that there were 10,450 uncompleted private homes bought under the deferred payment scheme, which allows buyers to pay just 10 to 20 per cent up front for an uncompleted home and the rest upon completion.
Market watchers had cautioned that the already weak property market would be hit hard by potential defaults, should many buyers fail to follow through with their deals.
Whether they can or cannot do so, there are apparently a sizeable number of buyers out there who are willing to forfeit their 20 per cent deposit to get out of a long-term commitment they never planned for, particularly in Singapore’s sharpest and deepest recession, industry sources said.
‘If you are at the option stage, you can walk away.
‘But once you exercise it, you can’t walk away unless you declare yourself a bankrupt,’ said Jones Lang LaSalle head of residential Jacqueline Wong.
A purchase starts with the seller making an irrevocable offer - an Option to Purchase - to the buyer, so that he will not sell the same property within a period of usually 14 days to another buyer.
The buyer can walk away at this stage.
But after he exercises the Option to Purchase, he cannot do so as a binding contract has been created.
How the rules work…
Under Singapore’s Housing Developers Rules, a buyer who wants to walk away from or repudiate his sale and purchase agreement has to get the developer to agree to it.
‘If the purchaser fails to pay an instalment, the vendor (developer or seller) has a right to choose to annul the sale and purchase agreement or to claim against the purchaser for the unpaid instalment as a debt,’ said Ms Foo Soon Yien, director of Bernard & Rada Law Corp.
If it is the former, the vendor has the right to keep 20 per cent of the purchase price as well as the interest from all unpaid instalments, and resell the unit, she said.
If he chooses the second option, he can take legal action, obtain judgment and enforce it against the buyer to compel him to pay.
That’s not all. The buyer also has further liability to meet any price shortfall if the property is sold at a lower price, said Mr Lim Ker Sheon, a director at law firm Characterist.
Pandora’s box
While they can allow it, developers have no wish to let buyers walk away in a weak market as they would have problems selling the units they take back, experts said.
‘If a developer agrees, it will be like opening a Pandora’s box. Nobody will agree to it,’ said Ms Wong.
‘On the flip side, in a bull run, the seller or developer can’t turn around and tell the buyer to offload it back to them just because they can sell it at a higher price.’
A more likely scenario would see the developer taking the buyer to court and declaring him a bankrupt, she said.
Marco Polo Developments, now known as Wheelock Properties (Singapore), did sue those who defaulted on the progress payments for its posh Ardmore Park project due to the 1997 Asian financial crisis and win some suits.
‘Usually, the threat of a legal suit is enough to wake the buyer up,’ said Ms Wong.
Still, a number of Indonesians walked away from their purchases during the Asian financial crisis and disappeared, said an industry veteran who declined to be named.
What next for buyers?
Buyers who have difficulty paying for their purchases will have to sell the properties at a lower price.
Under genuine circumstances where the buyer wants to pay but has problems doing so, the developers may, on a case-by-case basis, offer alternative payment modes such as staggered payments or instalments, consultants said.
‘They may choose to allow the buyers a longer period to repay, with or without interest,’ said the industry veteran, adding that the critical stage where potential defaults are concerned has yet to come.
‘In every downturn, there will be people who want to walk away but can’t.’
Source : Sunday Times - 25 Jan 2009
Saturday, January 24, 2009
Steep fall in transactions surprises many
Posted by goldenpeace on January 24, 2009
THE public housing market - the only property segment still growing - suffered a sharp fall in transaction volume in the fourth quarter of 2008. HDB’s Resale Price Index rose just 1.4 per cent - a marked slowdown from 4.2 per cent in Q3 and 4.5 per cent in Q2.
Analysts had expected price increases to moderate because the economy was losing steam.
But what has taken some by surprise was the steep drop in transactions.
The number of resale homes sold fell 24 per cent, from 8,110 in Q3 to 6,190 in Q4 - the lowest Q4 volume ever, according to one analyst.
The poor showing meant total transaction volume for 2008 was 28,419 units - 1,926 fewer than 2007’s 29,436.
The median cash-over-valuation (COV) amount in Q4 also fell, by $4,000 to $15,000. Sales involving COV constituted 85 per cent of all resale transactions, 4 per cent fewer than in Q3.
‘ERA’s resale transaction volume for Q4 was quite stable and that led us to predict resale volume of about 30,000 units for the whole of 2008. So the overall dip certainly caught us by surprise,’ said Eugene Lim, associate director for ERA Asia Pacific. ERA says it has a 45 per cent share of the HDB resale market.
One of the main reasons for the dip could be that COV amounts have been falling. ‘The days of transactions involving more than $50,000 COV are over,’ said Mr Lim. Unusual exceptions are well-renovated flats with unobstructed, panoramic views.
With the economy likely to shrink further and more lay-offs on the way, home buyers have become sharper, analysts say.
They start by making offers below valuation, and many deals now are closed at valuation, or at most a COV of $5,000-$30,000.
Propnex chief executive Mohamed Ismail said that this is ‘indeed a buyer’s market’. The dip in 2008 transaction volume can be explained partly by the financial crash in October and partly by fewer launches, which led to fewer upgrading transactions.
Another reason for the dip could be that HDB plans to increase the supply of new flats in 2009. With this, buyers have more choice, so demand is taken away from the resale market.
Demand for public housing is still expected to grow this year, but probably not at the double-digit pace of 2007 and 2008. Mr Ismail expects the resale price index to grow 3-7 per cent in 2009, with smaller (three and four-room) flats accounting for 5-8 per cent growth and larger flats seeing slower one to 3 per cent growth.
‘If the economy doesn’t improve there will be more downgraders and increasingly cautious buyers in the wake of retrenchments and tighter budgets,’ he said. ‘But we should still see growth because demand exceeds supply.’
The public housing sector is also expected to get a boost from the Government’s Budget announcement on Thursday that it will widen the Additional CPF Housing Grant (AHG) for first-time home-buyers.
To ensure that public housing remains affordable for first-timers, the Government has decided to increase the maximum grant to $40,000, from $30,000. At the same time, the household income ceiling will be raised from $4,000 to $5,000.
An extra 2,700 first-time buyers will benefit from the enhanced AHG every year, taking the number of beneficiaries of the scheme to 8,000 a year.
Analysts reckon that this will boost demand from first-timers who look to the resale market rather than waiting for new homes to be completed by HDB.
Source : Business Times - 24 Jan 2009
THE public housing market - the only property segment still growing - suffered a sharp fall in transaction volume in the fourth quarter of 2008. HDB’s Resale Price Index rose just 1.4 per cent - a marked slowdown from 4.2 per cent in Q3 and 4.5 per cent in Q2.
Analysts had expected price increases to moderate because the economy was losing steam.
But what has taken some by surprise was the steep drop in transactions.
The number of resale homes sold fell 24 per cent, from 8,110 in Q3 to 6,190 in Q4 - the lowest Q4 volume ever, according to one analyst.
The poor showing meant total transaction volume for 2008 was 28,419 units - 1,926 fewer than 2007’s 29,436.
The median cash-over-valuation (COV) amount in Q4 also fell, by $4,000 to $15,000. Sales involving COV constituted 85 per cent of all resale transactions, 4 per cent fewer than in Q3.
‘ERA’s resale transaction volume for Q4 was quite stable and that led us to predict resale volume of about 30,000 units for the whole of 2008. So the overall dip certainly caught us by surprise,’ said Eugene Lim, associate director for ERA Asia Pacific. ERA says it has a 45 per cent share of the HDB resale market.
One of the main reasons for the dip could be that COV amounts have been falling. ‘The days of transactions involving more than $50,000 COV are over,’ said Mr Lim. Unusual exceptions are well-renovated flats with unobstructed, panoramic views.
With the economy likely to shrink further and more lay-offs on the way, home buyers have become sharper, analysts say.
They start by making offers below valuation, and many deals now are closed at valuation, or at most a COV of $5,000-$30,000.
Propnex chief executive Mohamed Ismail said that this is ‘indeed a buyer’s market’. The dip in 2008 transaction volume can be explained partly by the financial crash in October and partly by fewer launches, which led to fewer upgrading transactions.
Another reason for the dip could be that HDB plans to increase the supply of new flats in 2009. With this, buyers have more choice, so demand is taken away from the resale market.
Demand for public housing is still expected to grow this year, but probably not at the double-digit pace of 2007 and 2008. Mr Ismail expects the resale price index to grow 3-7 per cent in 2009, with smaller (three and four-room) flats accounting for 5-8 per cent growth and larger flats seeing slower one to 3 per cent growth.
‘If the economy doesn’t improve there will be more downgraders and increasingly cautious buyers in the wake of retrenchments and tighter budgets,’ he said. ‘But we should still see growth because demand exceeds supply.’
The public housing sector is also expected to get a boost from the Government’s Budget announcement on Thursday that it will widen the Additional CPF Housing Grant (AHG) for first-time home-buyers.
To ensure that public housing remains affordable for first-timers, the Government has decided to increase the maximum grant to $40,000, from $30,000. At the same time, the household income ceiling will be raised from $4,000 to $5,000.
An extra 2,700 first-time buyers will benefit from the enhanced AHG every year, taking the number of beneficiaries of the scheme to 8,000 a year.
Analysts reckon that this will boost demand from first-timers who look to the resale market rather than waiting for new homes to be completed by HDB.
Source : Business Times - 24 Jan 2009
Private housing supply shrinking as prices fall
Posted by goldenpeace on January 24, 2009
DEVELOPERS appear to be turning their backs on the property market, deferring more projects as property prices keep falling.
Private residential property prices fell 4.7 per cent last year. This, after rising over 30 per cent in 2007. On a quarterly basis, prices fell 6.1 per cent.
And according to statistics from the Urban Redevelopment Authority (URA), the number of private residential homes expected to be completed between 2009 and 2011 is now also expected to be lower.
URA said that as at Q4 2008, there were 64,982 private residential units in the pipeline. Of these, about 31,000 units were expected to be completed between 2009 and 2011, lower than the pipeline supply of about 34,600 private residential units as at Q3 2008.
URA said that the decline in the pipeline supply was mainly because a number of developers had in Q4 2008, made adjustments to the expected year of completion of their private housing projects to beyond 2011.
DTZ senior director for research Chua Chor Hoon said that while developers have already been delaying completions over the last few quarters, the momentum increased in Q4 2008. She also believes that with the recent Budget announcements giving developers more leeway to delay completion of their projects, ‘there would be further adjustments to improve the supply-demand balance’.
Still, she notes that 10,448 private housing units are expected to be completed this year, which is higher than the past 10-year average of 8,700 units. ‘These projects are at the advanced stage of construction and cannot be delayed. These would add pressure on prices and rentals.’
While the property tax deferment on approved development sites is expected to cost the government $290 million over the next two years, Knight Frank director of research and development Nicholas Mak said that this will not have much impact on the supply pipeline - but only because many developers have already decided to do this. He does, however, believe that it will help developers bear the holding costs.
Barclays economist Leong Wai Ho added: ‘I don’t think these (Budget) measures per se will reverse the slide in the property market. The dominant factors in the near term are the increase in white-collar unemployment and falling household income.’
Poorer economic prospects are more likely to persuade developers to defer projects.
Already, of the 64,982 uncompleted units in the pipeline, 43,414 units were still unsold. These comprised 3,880 units that had been launched for sale by developers and 14,386 units which had the pre-requisite conditions for sale and could be launched for sale immediately. The remaining 25,148 units with planning approvals did not have the pre-requisite conditions for sale.
Prices of non-landed properties fell by 6.3 per cent in Q4 2008 compared with the decline of 2.5 per cent in the previous quarter. For the full year, prices of non-landed properties fell by 5.3 per cent.
Prices of non-landed properties in Core Central Region1 (CCR) fell by 6.5 per cent in the quarter while prices of non-landed properties in Rest of Central Region (RCR) and Outside Central Region (OCR) fell by 6.2 per cent and 5.9 per cent respectively. For the whole 2008, prices of non-landed properties in CCR, RCR and OCR fell by 5.6, 4.7 and 2.9 per cent respectively.
Mr Mak said that despite the mass market sector experiencing the slightest decline in home prices, a drop in prices in OCR reflected that buying interest for mass-market private homes has waned. ‘Prices of mass-market homes were initially thought to be able to hold better than high-end private residential properties in 2008, as some buyers settle for mass-market private homes for lower-cost alternatives. However, the cautious homebuying sentiments have become so significant that some homeseekers chose to purchase HDB resale flats,’ he added.
Rental decline accelerated, easing by 5.3 per cent in Q4 2008 quarter-on-quarter. Mr Mak noted: ‘On a yearly basis, the 2 per cent growth rate in 2008, though still positive, is a far cry from the double-digit expansion observed in the last two years.’
Last year saw the total number of homes sold fall to 13,593 units, down from a record high of 40,654 units in 2007.
CBRE Research executive director Li Hiaw Ho notes that the fall in sales volume was seen in both the primary and secondary markets, with only 419 new homes, 965 resale homes and 203 sub-sales registered in the fourth quarter. ‘The decline in sales momentum was indeed significant as both home-buyers and developers retreated from the market,’ noted Mr Li.
For the whole year, the 4,264 new private homes sold was a record low, and made up only 29 per cent of the 14,811 new homes sold in 2007. Similarly, a total of 7,701 resale homes were transacted last year, compared with 20,980 sold in 2007. Sub-sales fell to 1,628 in 2008 from 4,097 in 2007.
Source : Business Times - 24 Jan 2009
DEVELOPERS appear to be turning their backs on the property market, deferring more projects as property prices keep falling.
Private residential property prices fell 4.7 per cent last year. This, after rising over 30 per cent in 2007. On a quarterly basis, prices fell 6.1 per cent.
And according to statistics from the Urban Redevelopment Authority (URA), the number of private residential homes expected to be completed between 2009 and 2011 is now also expected to be lower.
URA said that as at Q4 2008, there were 64,982 private residential units in the pipeline. Of these, about 31,000 units were expected to be completed between 2009 and 2011, lower than the pipeline supply of about 34,600 private residential units as at Q3 2008.
URA said that the decline in the pipeline supply was mainly because a number of developers had in Q4 2008, made adjustments to the expected year of completion of their private housing projects to beyond 2011.
DTZ senior director for research Chua Chor Hoon said that while developers have already been delaying completions over the last few quarters, the momentum increased in Q4 2008. She also believes that with the recent Budget announcements giving developers more leeway to delay completion of their projects, ‘there would be further adjustments to improve the supply-demand balance’.
Still, she notes that 10,448 private housing units are expected to be completed this year, which is higher than the past 10-year average of 8,700 units. ‘These projects are at the advanced stage of construction and cannot be delayed. These would add pressure on prices and rentals.’
While the property tax deferment on approved development sites is expected to cost the government $290 million over the next two years, Knight Frank director of research and development Nicholas Mak said that this will not have much impact on the supply pipeline - but only because many developers have already decided to do this. He does, however, believe that it will help developers bear the holding costs.
Barclays economist Leong Wai Ho added: ‘I don’t think these (Budget) measures per se will reverse the slide in the property market. The dominant factors in the near term are the increase in white-collar unemployment and falling household income.’
Poorer economic prospects are more likely to persuade developers to defer projects.
Already, of the 64,982 uncompleted units in the pipeline, 43,414 units were still unsold. These comprised 3,880 units that had been launched for sale by developers and 14,386 units which had the pre-requisite conditions for sale and could be launched for sale immediately. The remaining 25,148 units with planning approvals did not have the pre-requisite conditions for sale.
Prices of non-landed properties fell by 6.3 per cent in Q4 2008 compared with the decline of 2.5 per cent in the previous quarter. For the full year, prices of non-landed properties fell by 5.3 per cent.
Prices of non-landed properties in Core Central Region1 (CCR) fell by 6.5 per cent in the quarter while prices of non-landed properties in Rest of Central Region (RCR) and Outside Central Region (OCR) fell by 6.2 per cent and 5.9 per cent respectively. For the whole 2008, prices of non-landed properties in CCR, RCR and OCR fell by 5.6, 4.7 and 2.9 per cent respectively.
Mr Mak said that despite the mass market sector experiencing the slightest decline in home prices, a drop in prices in OCR reflected that buying interest for mass-market private homes has waned. ‘Prices of mass-market homes were initially thought to be able to hold better than high-end private residential properties in 2008, as some buyers settle for mass-market private homes for lower-cost alternatives. However, the cautious homebuying sentiments have become so significant that some homeseekers chose to purchase HDB resale flats,’ he added.
Rental decline accelerated, easing by 5.3 per cent in Q4 2008 quarter-on-quarter. Mr Mak noted: ‘On a yearly basis, the 2 per cent growth rate in 2008, though still positive, is a far cry from the double-digit expansion observed in the last two years.’
Last year saw the total number of homes sold fall to 13,593 units, down from a record high of 40,654 units in 2007.
CBRE Research executive director Li Hiaw Ho notes that the fall in sales volume was seen in both the primary and secondary markets, with only 419 new homes, 965 resale homes and 203 sub-sales registered in the fourth quarter. ‘The decline in sales momentum was indeed significant as both home-buyers and developers retreated from the market,’ noted Mr Li.
For the whole year, the 4,264 new private homes sold was a record low, and made up only 29 per cent of the 14,811 new homes sold in 2007. Similarly, a total of 7,701 resale homes were transacted last year, compared with 20,980 sold in 2007. Sub-sales fell to 1,628 in 2008 from 4,097 in 2007.
Source : Business Times - 24 Jan 2009
Property price slump worsens
Posted by goldenpeace on January 24, 2009
THE property slump gathered pace on two fronts late last year with rents moderating and private home prices registering their biggest quarterly fall in a decade.
Developers also continued to delay the completion of new flats as well as office projects as the recession tightened its grip.
Prices slumped 6.1 per cent in the last three months of last year, according to the Urban Redevelopment Authority (URA) yesterday, higher than the earlier estimate of 5.7 per cent.
The slump follows a 2.4 per cent fall in the third quarter, which was the first decline in over four years.
Private home prices - which started last year on an uptrend even as sales fell dramatically - dropped 4.7 per cent over the whole of the 12 months. It was a striking contrast to 2007 when prices surged a whopping 31.2 per cent.
The declines will likely continue this year with some consultants estimating that falls of 10 to 20 per cent are possible.
In the fourth quarter, homes in prime districts fell the most - by 6.5 per cent - while suburban home prices dropped 5.9 per cent.
The slump in suburban home prices reflects waning buying interest for mass-market property, said Knight Frank’s director of research and consultancy, Mr Nicholas Mak.
This segment was initially expected to hold up better than the high-end segment last year but the mood has become so cautious that some homeseekers are buying HDB resale flats instead, he said.
Rents are feeling the pain as well. Private home rents fell 5.3 per cent in the fourth quarter after a marginal 0.9 per cent decline in the third quarter.
Non-landed homes in prime districts recorded the largest drop of 6.1 per cent with mass-market homes down 4.3 per cent. Overall, private home rents rose 2 per cent last year.
Sales are on the slide as well. A total of 7,701 resale homes were transacted last year, down from 20,980 in 2007 while sub-sales, an indicator of speculative activity, fell to 1,628 units last year, down from 4,097 in 2007.
New home sales went into freefall last year, with a record low of only 4,264 changing hands, down from 14,811 in 2007.
Price declines should be accompanied by increased buying volumes, said Chesterton Suntec International’s head of research and consultancy, Mr Colin Tan.
But one reason that is not happening now is that prices have not fallen low enough. To generate demand, the price drops have to be bigger than seen in previous downturns as this is the worst downturn ever, he said.
To add to the gloom, there is also a standstill in the investment market due to the tight credit situation facing developers. ‘Those who want to capitalise on the lower prices today still find it hard to do so,’ said a market watcher.
The two parallel markets give rise to a divergence in the price expectations of buyers and sellers, he said.
The market will take several quarters to find its new footing with at least some price convergence between buyers and sellers, he added.
This quarter is likely to be a slow period due to the cautious sentiment, poor economic conditions and interruptions by the Chinese New Year celebrations, said CBRE Research.
While the market is expected to stay tentative, the continued price falls should kick-start some sales, especially in mid-tier and mass-market projects, said its executive director, Mr Li Hiaw Ho.
There is no lack of supply, even as developers pushed back the completion of more projects to beyond 2011.
The URA now expects 7,012 private homes to be completed next year, down from an earlier estimate of 8,538. The number for 2011 has been revised to 13,686, down from a forecast of 16,145.
Meanwhile, rentals of office space, shops and industrial properties all fell in the fourth quarter, as leasing interest softened in light of the economic climate.
Further drops in rentals are expected, experts said.
Source : Straits Times - 24 Jan 2009
THE property slump gathered pace on two fronts late last year with rents moderating and private home prices registering their biggest quarterly fall in a decade.
Developers also continued to delay the completion of new flats as well as office projects as the recession tightened its grip.
Prices slumped 6.1 per cent in the last three months of last year, according to the Urban Redevelopment Authority (URA) yesterday, higher than the earlier estimate of 5.7 per cent.
The slump follows a 2.4 per cent fall in the third quarter, which was the first decline in over four years.
Private home prices - which started last year on an uptrend even as sales fell dramatically - dropped 4.7 per cent over the whole of the 12 months. It was a striking contrast to 2007 when prices surged a whopping 31.2 per cent.
The declines will likely continue this year with some consultants estimating that falls of 10 to 20 per cent are possible.
In the fourth quarter, homes in prime districts fell the most - by 6.5 per cent - while suburban home prices dropped 5.9 per cent.
The slump in suburban home prices reflects waning buying interest for mass-market property, said Knight Frank’s director of research and consultancy, Mr Nicholas Mak.
This segment was initially expected to hold up better than the high-end segment last year but the mood has become so cautious that some homeseekers are buying HDB resale flats instead, he said.
Rents are feeling the pain as well. Private home rents fell 5.3 per cent in the fourth quarter after a marginal 0.9 per cent decline in the third quarter.
Non-landed homes in prime districts recorded the largest drop of 6.1 per cent with mass-market homes down 4.3 per cent. Overall, private home rents rose 2 per cent last year.
Sales are on the slide as well. A total of 7,701 resale homes were transacted last year, down from 20,980 in 2007 while sub-sales, an indicator of speculative activity, fell to 1,628 units last year, down from 4,097 in 2007.
New home sales went into freefall last year, with a record low of only 4,264 changing hands, down from 14,811 in 2007.
Price declines should be accompanied by increased buying volumes, said Chesterton Suntec International’s head of research and consultancy, Mr Colin Tan.
But one reason that is not happening now is that prices have not fallen low enough. To generate demand, the price drops have to be bigger than seen in previous downturns as this is the worst downturn ever, he said.
To add to the gloom, there is also a standstill in the investment market due to the tight credit situation facing developers. ‘Those who want to capitalise on the lower prices today still find it hard to do so,’ said a market watcher.
The two parallel markets give rise to a divergence in the price expectations of buyers and sellers, he said.
The market will take several quarters to find its new footing with at least some price convergence between buyers and sellers, he added.
This quarter is likely to be a slow period due to the cautious sentiment, poor economic conditions and interruptions by the Chinese New Year celebrations, said CBRE Research.
While the market is expected to stay tentative, the continued price falls should kick-start some sales, especially in mid-tier and mass-market projects, said its executive director, Mr Li Hiaw Ho.
There is no lack of supply, even as developers pushed back the completion of more projects to beyond 2011.
The URA now expects 7,012 private homes to be completed next year, down from an earlier estimate of 8,538. The number for 2011 has been revised to 13,686, down from a forecast of 16,145.
Meanwhile, rentals of office space, shops and industrial properties all fell in the fourth quarter, as leasing interest softened in light of the economic climate.
Further drops in rentals are expected, experts said.
Source : Straits Times - 24 Jan 2009
S'pore private home prices fall 6.1% in Q4
Posted by goldenpeace on January 24, 2009
Singapore private home prices fell 6.1 per cent in the fourth quarter as the city-state plunged into its worst ever recession, government data showed on Friday.
The drop marked the second quarterly decline in residential property prices following a 2.4 per cent fall in July-September.
The decline in prices during the fourth quarter was also steeper than the initial estimate of a 5.7 per cent drop made earlier this month.
Rents during the October-December period fell by 5.3 per cent, the Urban Redevelopment Authority (URA) said.
Singapore releases advance estimates on property prices shortly after the end of each quarter based primarily on transactions during the first 10 weeks of the period.
The government subsequently provides detailed data for the period that includes price changes by region as well as rental trends.
Singapore’s gross domestic product shrank in the fourth quarter at a deeper-than-expected seasonally adjusted rate of 16.9 per cent, the biggest fall on record, and the government said the economy may contract as much as 5 per cent this year.
Source : Business Times - 23 Jan 2009
Singapore private home prices fell 6.1 per cent in the fourth quarter as the city-state plunged into its worst ever recession, government data showed on Friday.
The drop marked the second quarterly decline in residential property prices following a 2.4 per cent fall in July-September.
The decline in prices during the fourth quarter was also steeper than the initial estimate of a 5.7 per cent drop made earlier this month.
Rents during the October-December period fell by 5.3 per cent, the Urban Redevelopment Authority (URA) said.
Singapore releases advance estimates on property prices shortly after the end of each quarter based primarily on transactions during the first 10 weeks of the period.
The government subsequently provides detailed data for the period that includes price changes by region as well as rental trends.
Singapore’s gross domestic product shrank in the fourth quarter at a deeper-than-expected seasonally adjusted rate of 16.9 per cent, the biggest fall on record, and the government said the economy may contract as much as 5 per cent this year.
Source : Business Times - 23 Jan 2009
HDB resale prices see slower growth in Q4
Posted by goldenpeace on January 24, 2009
HDB resale prices rose by 1.4 per cent in Q4 2008 over the previous quarter - lower than the 4.2 per cent increase seen in third quarter and the 4.5 per cent climb recorded in the second quarter.
Resale transactions decreased by about 24 per cent, from about 8,110 cases in third quarter of 2008 to about 6,190 cases in fourth quarter. The total number of resale transactions for 2008 was 28,419, about 3 per cent lower than in 2007.
The median cash-over-valuation (COV) amount among all resale transactions conducted in Q4 2008 was $15,000 - which was $4,000 lower than that in Q3.
Cases requiring COV constituted 85 per cent of all resale transactions in fourth Quarter 2008, 4 per cent lesser than that in the third quarter.
Source : Business Times - 23 Jan 2009
HDB resale prices rose by 1.4 per cent in Q4 2008 over the previous quarter - lower than the 4.2 per cent increase seen in third quarter and the 4.5 per cent climb recorded in the second quarter.
Resale transactions decreased by about 24 per cent, from about 8,110 cases in third quarter of 2008 to about 6,190 cases in fourth quarter. The total number of resale transactions for 2008 was 28,419, about 3 per cent lower than in 2007.
The median cash-over-valuation (COV) amount among all resale transactions conducted in Q4 2008 was $15,000 - which was $4,000 lower than that in Q3.
Cases requiring COV constituted 85 per cent of all resale transactions in fourth Quarter 2008, 4 per cent lesser than that in the third quarter.
Source : Business Times - 23 Jan 2009
District 12 - I-Residences
I-Residences, is about fluidity in motion. The tenderly drifts of precious moments to reminisce each day as the sun touches the horizon. The subliminal ripples of soothing ambience wafts effortlessly to caress your mind. A rhythm of leisure and pleasure becomes enchanting for your senses. This is where everything flows with your style of life. Time has disappeared. A deep gratification born.
District: 12 Tenure: Freehold
Block: 1 Tower 28-storey
Total: 70 units
Type A: 23 units (2-Bedroom)
Type A1: 17 units (2-Bedroom)
Type B: 12 units (3-Bedroom)
Type B1: 11 units (3-Bedroom)
Type B2: 4 units (3-Bedroom)
Type AP: 1 unit (3-Bedroom+1 Penthouse)
Type BP: 1 unit (4-Bedroom Penthouse)
Type B1P: 1 unit (4-Bedroom
Penthouse) 
Total: 70 units
Type A: 23 units (2-Bedroom)
Type A1: 17 units (2-Bedroom)
Type B: 12 units (3-Bedroom)
Type B1: 11 units (3-Bedroom)
Type B2: 4 units (3-Bedroom)
Type AP: 1 unit (3-Bedroom+1 Penthouse)
Type BP: 1 unit (4-Bedroom Penthouse)
Type B1P: 1 unit (4-Bedroom
Penthouse) 
No secret buyer or profit, says property exec's wife
Posted by goldenpeace on January 24, 2009
THE wife of a senior property agent who bought an apartment through her husband’s subordinate, then quickly sold it for a $257,000 profit, yesterday refuted claims that she had made a ’secret profit’ from the deal.
Madam Natassha Sadiq, 40, told the High Court her purchase of the downtown flat from Mr Yuen Chow Hin and Madam Wong Wai Fan was done on a ‘willing buyer and willing seller’ basis.
Mr Yuen, 50, and Madam Wong, 48, have sued ERA Realty Network to seek profits from the sale and the return of about $7,300 in commission.
They claim their agent did little to market the flat to other buyers, and was in a clear conflict of interest when he sold the unit to his boss’ wife.
In a testimony echoed by her husband, Mr Mike Parikh, Madam Sadiq said there was no secret buyer in waiting when she bought the two-bedroom Keng Cheow Street apartment in mid-2007. Mr Parikh is a senior group division director of ERA.
Madam Sadiq said that in early July last year, her husband told her about The Riverside Piazza unit being marketed by his subordinate, Mr Jeremy Ang.
She made an offer of $685,000 as her identity card number started with ‘685′. She said: ‘I know it sounds a bit crazy, but it’s from my IC number.’
The price was eventually agreed at $688,000. Madam Sadiq said she was granted the right to buy the flat on July 5 last year, but the couple disputed this date as the option was dated July 12.
Madam Sadiq said she then decided to try to sell the apartment as property prices were then ‘roaring’. Two days later, on July 7, the unit was on the market again. This time, it sold for about $945,000.
‘At the time, the market was bullish, and we decided to put up this price. We happened to make a bit of a profit,’ Madam Sadiq said.
Mr Parikh, 44, took the stand after his wife. He said the first sale to his wife and her subsequent resale were separate transactions. He said his subordinate, Mr Ang, called him up on July 5 to tell him that the sale to Madam Sadiq was a ‘done deal’.
The next day, Mr Parikh placed advertisements in The Straits Times for July 7 and July 9. When there was no response, he changed the text, adding ‘en bloc potential’ in a third ad on July 14.
He admitted that he had not actually heard of any plans to sell units at The Riverside Piazza collectively. ‘It’s just a common term that agents use because there were a lot of en blocs going on. The possibility is always there,’ he explained.
On the same day that he placed the third ad, an interested buyer responded. Four days later, Madam Sadiq granted him an option to buy at $945,000.
It was only later that Mr Yuen and Madam Wong found out about the resale.
About the case
MR YUEN Chow Hin and Madam Wong Wai Fan have sued property agency ERA Realty Network for breach of contract and misrepresentation.
In July 2007, the couple, through ERA agent Jeremy Ang, sold their apartment for $688,000.
Unknown to them, the buyer, Madam Natassha Sadiq, was the wife of Mr Ang’s boss. Soon after she was granted the right to buy the property, Madam Sadiq flipped the flat for $945,000.
Mr Yuen and Madam Wong are now seeking from ERA the price difference of $257,000 and the return of about $7,300 in commission.
They claim the agency did not try its best to find more offers and allege that there was conflict of interest.
ERA says it is not liable for the actions of its agents, who are independent contractors. In any case, says the agency, Mr Ang has not breached its code of conduct.
Lawyers for both sides are to make closing arguments next Thursday.
Source : Straits Times - 23 Jan 2009
THE wife of a senior property agent who bought an apartment through her husband’s subordinate, then quickly sold it for a $257,000 profit, yesterday refuted claims that she had made a ’secret profit’ from the deal.
Madam Natassha Sadiq, 40, told the High Court her purchase of the downtown flat from Mr Yuen Chow Hin and Madam Wong Wai Fan was done on a ‘willing buyer and willing seller’ basis.
Mr Yuen, 50, and Madam Wong, 48, have sued ERA Realty Network to seek profits from the sale and the return of about $7,300 in commission.
They claim their agent did little to market the flat to other buyers, and was in a clear conflict of interest when he sold the unit to his boss’ wife.
In a testimony echoed by her husband, Mr Mike Parikh, Madam Sadiq said there was no secret buyer in waiting when she bought the two-bedroom Keng Cheow Street apartment in mid-2007. Mr Parikh is a senior group division director of ERA.
Madam Sadiq said that in early July last year, her husband told her about The Riverside Piazza unit being marketed by his subordinate, Mr Jeremy Ang.
She made an offer of $685,000 as her identity card number started with ‘685′. She said: ‘I know it sounds a bit crazy, but it’s from my IC number.’
The price was eventually agreed at $688,000. Madam Sadiq said she was granted the right to buy the flat on July 5 last year, but the couple disputed this date as the option was dated July 12.
Madam Sadiq said she then decided to try to sell the apartment as property prices were then ‘roaring’. Two days later, on July 7, the unit was on the market again. This time, it sold for about $945,000.
‘At the time, the market was bullish, and we decided to put up this price. We happened to make a bit of a profit,’ Madam Sadiq said.
Mr Parikh, 44, took the stand after his wife. He said the first sale to his wife and her subsequent resale were separate transactions. He said his subordinate, Mr Ang, called him up on July 5 to tell him that the sale to Madam Sadiq was a ‘done deal’.
The next day, Mr Parikh placed advertisements in The Straits Times for July 7 and July 9. When there was no response, he changed the text, adding ‘en bloc potential’ in a third ad on July 14.
He admitted that he had not actually heard of any plans to sell units at The Riverside Piazza collectively. ‘It’s just a common term that agents use because there were a lot of en blocs going on. The possibility is always there,’ he explained.
On the same day that he placed the third ad, an interested buyer responded. Four days later, Madam Sadiq granted him an option to buy at $945,000.
It was only later that Mr Yuen and Madam Wong found out about the resale.
About the case
MR YUEN Chow Hin and Madam Wong Wai Fan have sued property agency ERA Realty Network for breach of contract and misrepresentation.
In July 2007, the couple, through ERA agent Jeremy Ang, sold their apartment for $688,000.
Unknown to them, the buyer, Madam Natassha Sadiq, was the wife of Mr Ang’s boss. Soon after she was granted the right to buy the property, Madam Sadiq flipped the flat for $945,000.
Mr Yuen and Madam Wong are now seeking from ERA the price difference of $257,000 and the return of about $7,300 in commission.
They claim the agency did not try its best to find more offers and allege that there was conflict of interest.
ERA says it is not liable for the actions of its agents, who are independent contractors. In any case, says the agency, Mr Ang has not breached its code of conduct.
Lawyers for both sides are to make closing arguments next Thursday.
Source : Straits Times - 23 Jan 2009
Thursday, January 22, 2009
Couple sue agency after buyer flips flat for profit
Posted by goldenpeace on January 22, 2009
WHEN a married couple sold their downtown apartment for $688,000 in 2007, they thought it was the best deal they were going to find.
But soon after they granted the buyer the right to purchase the property, the two-bedroom Keng Cheow Street apartment was re-sold for $945,000.
It was only later that Mr Yuen Chow Hin and Madam Wong Wai Fan found out about the second deal.
They also learnt that the woman who bought their flat - and flipped it for a healthy profit - was married to the boss of their real estate agent.
The couple cried foul, and are now suing ERA Realty Network in the High Court, seeking $257,000 - the difference between the two sale prices - and the return of about $7,300 in commission.
They allege the company did not try its best to find buyers and made a ’secret profit’ off the deal.
ERA disputes that and says the couple have no basis to sue it since the agent was not an employee but an independent contractor.
Yesterday, the hearing entered its third day, with ERA senior vice-president Marcus Chu taking the stand.
He denied that the agency earned any secret profits and said that the real estate agent, Mr Jeremy Ang, did nothing wrong.
Mr Chu said ERA agents are required to disclose the identity of the buyer only if that person is the agent or a member of his immediate family.
This was echoed by Mr Ang, who also took the stand.
Mr Yuen, 50, and Madam Wong, 48, hired Mr Ang to sell their apartment at The Riverside Piazza in June 2007. He told them he would advertise the property.
In early July, an offer came for $650,000. After negotiations, the couple granted the buyer, Madam Natassha Sadiq, an option - dated July 12 - to buy the flat for $688,000.
Meanwhile, Madam Natassha’s husband - Mr Ang’s boss - placed advertisements in the papers to sell the property for his wife.
On July 14, a buyer responded to an ad which asked for $945,106. Four days later, Madam Natassha granted the new buyer an option to buy the flat for $945,000.
Both deals eventually went through.
Mr Yuen and Madam Wong found out about the re-sale only after the Central Provident Fund Board asked them about the disparity between the selling price and the valuation submitted by the new buyer’s banker.
Their lawyer, Ms Gan Kam Yuin, argued that ERA made little effort to get the best possible price for the flat.
She questioned why Mr Ang did not place newspaper ads for the couple. Mr Ang said calling up his regular clients, who included Madam Natassha, constituted ‘advertising’.
Ms Gan argued that the firm had placed itself in a position of conflict of interest.
But Mr Ang said there was no conflict because the buyer was not himself nor his wife.
Madam Natassha and her husband, Mr Mike Parikh from ERA, are expected to testify today.
Source : Straits Times - 22 Jan 2009
WHEN a married couple sold their downtown apartment for $688,000 in 2007, they thought it was the best deal they were going to find.
But soon after they granted the buyer the right to purchase the property, the two-bedroom Keng Cheow Street apartment was re-sold for $945,000.
It was only later that Mr Yuen Chow Hin and Madam Wong Wai Fan found out about the second deal.
They also learnt that the woman who bought their flat - and flipped it for a healthy profit - was married to the boss of their real estate agent.
The couple cried foul, and are now suing ERA Realty Network in the High Court, seeking $257,000 - the difference between the two sale prices - and the return of about $7,300 in commission.
They allege the company did not try its best to find buyers and made a ’secret profit’ off the deal.
ERA disputes that and says the couple have no basis to sue it since the agent was not an employee but an independent contractor.
Yesterday, the hearing entered its third day, with ERA senior vice-president Marcus Chu taking the stand.
He denied that the agency earned any secret profits and said that the real estate agent, Mr Jeremy Ang, did nothing wrong.
Mr Chu said ERA agents are required to disclose the identity of the buyer only if that person is the agent or a member of his immediate family.
This was echoed by Mr Ang, who also took the stand.
Mr Yuen, 50, and Madam Wong, 48, hired Mr Ang to sell their apartment at The Riverside Piazza in June 2007. He told them he would advertise the property.
In early July, an offer came for $650,000. After negotiations, the couple granted the buyer, Madam Natassha Sadiq, an option - dated July 12 - to buy the flat for $688,000.
Meanwhile, Madam Natassha’s husband - Mr Ang’s boss - placed advertisements in the papers to sell the property for his wife.
On July 14, a buyer responded to an ad which asked for $945,106. Four days later, Madam Natassha granted the new buyer an option to buy the flat for $945,000.
Both deals eventually went through.
Mr Yuen and Madam Wong found out about the re-sale only after the Central Provident Fund Board asked them about the disparity between the selling price and the valuation submitted by the new buyer’s banker.
Their lawyer, Ms Gan Kam Yuin, argued that ERA made little effort to get the best possible price for the flat.
She questioned why Mr Ang did not place newspaper ads for the couple. Mr Ang said calling up his regular clients, who included Madam Natassha, constituted ‘advertising’.
Ms Gan argued that the firm had placed itself in a position of conflict of interest.
But Mr Ang said there was no conflict because the buyer was not himself nor his wife.
Madam Natassha and her husband, Mr Mike Parikh from ERA, are expected to testify today.
Source : Straits Times - 22 Jan 2009
Singaporeans less likely to cut spending on property and renovations: survey
Posted by goldenpeace on January 21, 2009
SINGAPOREANS are less likely than most of their Asia-Pacific neighbours to cut spending on property and renovations, according to a MasterCard survey.
The MasterCard Worldwide Index of Consumer Purchasing Resilience measures the resilience of planned expenditure categories to cutbacks, with zero the most vulnerable and 100 the most resilient.
In the property and renovation category, Singapore had a resilience score of 77.
The index looked at the categories of goods and services that consumers will spend on in the next six months, their importance to consumers and whether consumers will cut discretionary spending.
In Singapore, the fitness and wellness segment had the second-highest resilience index score of 73, followed by personal travel at 59. Dining and entertainment had a score of 54, while fashion and accessories rated 49.
Like most of the markets, Singapore failed to register a score in the consumer electronics category, since a market response of less than 30 per cent was not counted. Of the 14 markets surveyed, only Indonesia at 59.9 and Vietnam at 58.2 generated resilience index scores for consumer electronics.
‘There is a high rate of home ownership in Singapore and house-proud consumers here will continue to spend on renovations and property category, to finance their mortgages and spruce up their homes,’ said Yuwa Hedrick-Wong, MasterCard’s economic adviser (Asia-Pacific).
‘Spending on fitness and wellness has become increasingly important, especially for younger and better educated consumers and, therefore, it is not surprising that this category has emerged with a high resilience score,’ he said.
As far as general purchasing is concerned, Singapore’s average resilience index score of 62 trailed the Asia-Pacific average of 67. In comparison, China’s score of 81 was the highest, while Japan was second with 76. Indonesia and India tied for third with 74.
Across the region, China had the highest resilience scores in two categories - personal travel at 75 and property and renovations at 85. Japan had the highest resilience score for dining and entertainment at 81, while India was top for fitness and wellness with 90. Indonesia had the highest score for fashion and accessories at 76.
‘In general, the spending priorities of Chinese and Indian middle-class consumers are relatively resilient, showing their disposable income has so far remained healthy,’ Dr Hedrick-Wong said.
The survey polled 6,000 consumers, about 400 of whom were from Singapore.
Source : Business Times - 21 Jan 2009
SINGAPOREANS are less likely than most of their Asia-Pacific neighbours to cut spending on property and renovations, according to a MasterCard survey.
The MasterCard Worldwide Index of Consumer Purchasing Resilience measures the resilience of planned expenditure categories to cutbacks, with zero the most vulnerable and 100 the most resilient.
In the property and renovation category, Singapore had a resilience score of 77.
The index looked at the categories of goods and services that consumers will spend on in the next six months, their importance to consumers and whether consumers will cut discretionary spending.
In Singapore, the fitness and wellness segment had the second-highest resilience index score of 73, followed by personal travel at 59. Dining and entertainment had a score of 54, while fashion and accessories rated 49.
Like most of the markets, Singapore failed to register a score in the consumer electronics category, since a market response of less than 30 per cent was not counted. Of the 14 markets surveyed, only Indonesia at 59.9 and Vietnam at 58.2 generated resilience index scores for consumer electronics.
‘There is a high rate of home ownership in Singapore and house-proud consumers here will continue to spend on renovations and property category, to finance their mortgages and spruce up their homes,’ said Yuwa Hedrick-Wong, MasterCard’s economic adviser (Asia-Pacific).
‘Spending on fitness and wellness has become increasingly important, especially for younger and better educated consumers and, therefore, it is not surprising that this category has emerged with a high resilience score,’ he said.
As far as general purchasing is concerned, Singapore’s average resilience index score of 62 trailed the Asia-Pacific average of 67. In comparison, China’s score of 81 was the highest, while Japan was second with 76. Indonesia and India tied for third with 74.
Across the region, China had the highest resilience scores in two categories - personal travel at 75 and property and renovations at 85. Japan had the highest resilience score for dining and entertainment at 81, while India was top for fitness and wellness with 90. Indonesia had the highest score for fashion and accessories at 76.
‘In general, the spending priorities of Chinese and Indian middle-class consumers are relatively resilient, showing their disposable income has so far remained healthy,’ Dr Hedrick-Wong said.
The survey polled 6,000 consumers, about 400 of whom were from Singapore.
Source : Business Times - 21 Jan 2009
Tuesday, January 20, 2009
Developers want measures in Budget to boost market
Posted by goldenpeace on January 20, 2009
Property players have suggested many measures to support the market as Budget 2009 has drawn closer. But it’s anyone’s guess as to what the government will announce come Thursday.
‘The government has so far remained silent on specific measures,’ says Leonard Ong, executive director at KPMG Tax Services.
Developers want a property tax rebate on all residential, commercial and industrial projects, including those under construction. They are also asking for deferral of stamp duty payment for projects under construction until temporary occupation permit (TOP) is obtained.
Tenants have their own requests. The Association of Small and Medium Enterprises (ASME) hopes for rebates and rent reductions on commercial properties owned by JTC Corp and HDB. The Singapore Retailers Association is also looking for cheaper rents.
Some of these wishes may be granted, analysts say. A property tax rebate is seen as one of the more likely measures as it would have an immediate effect by reducing property companies’ cash costs, says Mr Ong.
The government could also take this a step further and introduce tax exemption for projects under development to ease the cash burden on developers, many of whom may want to defer construction, he says. But this is seen as less likely.
Analysts also say that if measures are introduced to ease developers’ cash flows, the savings should be passed on to tenants in the form of rent rebates to benefit more businesses.
Some type of concession allowing the deferral of stamp duty payment for projects under construction - similar to one introduced in 1998 and removed in 2006 - is a possibility, consultants reckon.
And analysts believe JTC and HDB rent cuts are likely. ‘On the part of these government agencies, we expect tiered cuts in rents for factories and warehouses, as well as reductions in utility, property taxes,’ said OCBC economist Selena Ling.
But market observers point out that with the government having privatised much of its property in the past few years, rent cuts for state-owned property are not likely to have much of an impact. In 1998 when the Asian financial crisis broke, the government froze rents for land and factories owned by JTC and HDB and gave a 15 per cent tax rebate on commercial and industrial properties. But as one industry player said: ‘Tenants need more this time round.’ He suggested that any property tax rebates given to landlords come with the condition that these landlords cut rents for tenants.
Taking a longer-term view, some analysts say the government should take a measured approach to aid stakeholders in the property industry.
‘It is best not to interfere too much with the market as policy measures to alleviate or cool it could have the inadvertent effect of exacerbating swings when the cycle changes and cause a different set of problems later,’ said DTZ’s senior director for research Chua Chor Hoon.
‘If policy measures are implemented, they should be given a definite expiry date and extended only if necessary. There has to be a balance between tactical measures to bring us through this unprecedented period and strategic long-term goals.’
Source : Business Times - 20 Jan 2009
Property players have suggested many measures to support the market as Budget 2009 has drawn closer. But it’s anyone’s guess as to what the government will announce come Thursday.
‘The government has so far remained silent on specific measures,’ says Leonard Ong, executive director at KPMG Tax Services.
Developers want a property tax rebate on all residential, commercial and industrial projects, including those under construction. They are also asking for deferral of stamp duty payment for projects under construction until temporary occupation permit (TOP) is obtained.
Tenants have their own requests. The Association of Small and Medium Enterprises (ASME) hopes for rebates and rent reductions on commercial properties owned by JTC Corp and HDB. The Singapore Retailers Association is also looking for cheaper rents.
Some of these wishes may be granted, analysts say. A property tax rebate is seen as one of the more likely measures as it would have an immediate effect by reducing property companies’ cash costs, says Mr Ong.
The government could also take this a step further and introduce tax exemption for projects under development to ease the cash burden on developers, many of whom may want to defer construction, he says. But this is seen as less likely.
Analysts also say that if measures are introduced to ease developers’ cash flows, the savings should be passed on to tenants in the form of rent rebates to benefit more businesses.
Some type of concession allowing the deferral of stamp duty payment for projects under construction - similar to one introduced in 1998 and removed in 2006 - is a possibility, consultants reckon.
And analysts believe JTC and HDB rent cuts are likely. ‘On the part of these government agencies, we expect tiered cuts in rents for factories and warehouses, as well as reductions in utility, property taxes,’ said OCBC economist Selena Ling.
But market observers point out that with the government having privatised much of its property in the past few years, rent cuts for state-owned property are not likely to have much of an impact. In 1998 when the Asian financial crisis broke, the government froze rents for land and factories owned by JTC and HDB and gave a 15 per cent tax rebate on commercial and industrial properties. But as one industry player said: ‘Tenants need more this time round.’ He suggested that any property tax rebates given to landlords come with the condition that these landlords cut rents for tenants.
Taking a longer-term view, some analysts say the government should take a measured approach to aid stakeholders in the property industry.
‘It is best not to interfere too much with the market as policy measures to alleviate or cool it could have the inadvertent effect of exacerbating swings when the cycle changes and cause a different set of problems later,’ said DTZ’s senior director for research Chua Chor Hoon.
‘If policy measures are implemented, they should be given a definite expiry date and extended only if necessary. There has to be a balance between tactical measures to bring us through this unprecedented period and strategic long-term goals.’
Source : Business Times - 20 Jan 2009
Sunday, January 18, 2009
Read this before you rent a place
Posted by goldenpeace on January 18, 2009
The process of finding a rental home may be smooth for some but a nightmare for others.
Late last month, a Malaysian couple and a Japanese expatriate were duped by a conman posing as the property manager-cum-landlord of a terrace house in Serangoon Gardens.
He ‘leased’ the same house to both parties and then ran off with $10,300 of their money.
The two parties have made police reports but there is no guarantee that they will get the money back.
Rental scams surface from time to time and many of them involve HDB flats, property agents said.
While there are no foolproof ways of avoiding one completely, there are precautions tenants can take to ensure they do not fall prey to a scam.
Dealing with agents
First of all, tenants should engage or deal with a property agent from a reputable or established company, said PropNex chief executive Mohamed Ismail.
While this is obviously not foolproof, it does provide a level of protection if anything were to go wrong. ‘At least there is a company to go to for help,’ he said.
Firms like his will carry out their own investigations and take appropriate action, such as helping the tenant to get his money back or terminating the agent’s services if need be, he said.
Second, check with the agent’s property firm or the website of the Institute of Estate Agents (IEA) to see if the agent you are dealing with is a legitimate one, advised Mr Ismail, who is also the IEA’s first vice-president.
On the IEA website, click on Central Register Scheme and type in the agent’s particulars. If the agent has quit or been terminated, his name would have been taken off the list.
But note that the IEA’s list is not comprehensive as its membership is not compulsory. For instance, a major agency, HSR Property Group, is not on the list.
Thirdly, do not pay a property agent a large sum in cash. ‘If you pay cash, he can misappropriate the money,’ said Mr Ismail.
Instead, tenants should pay using a cheque or cashier’s order which states the owner’s name.
Before signing the lease
Property agency bosses also advise potential tenants to do some homework and find out about standard practices before committing to a lease.
There was a case last year where a 20-year-old student from China paid eight months’ advance rental for a four-room Punggol flat to someone who claimed to be the landlord, but who turned out to be the sub-tenant of the flat and a conman.
The student told The Sunday Times on Thursday that she was chased out of the $1,600-a-month flat by the owner, who had returned home after a trip, the day after she moved in. The sub-tenant had disappeared by then.
What she should have done was to get proof of the property’s ownership or ask to meet the owner, agency bosses said.
Property agents are supposed to do due diligence to ascertain the ownership of the property they are handling, so tenants can ask to see the documentation. The owner’s property tax statement would be good.
If you are dealing with the managing agent, ask for documentary proof such as a power of attorney or a letter from the owner authorising the agent to act on his behalf, said C&H Realty managing director Albert Lu.
Minimising losses
HSR Property Group’s executive director, Mr Eric Cheng, said the student would not have been cheated of so much money if she had known that it is the norm in Singapore to pay just a deposit and one month of advance rental.
Tenants can also negotiate for a lower deposit, he said. It is up to the landlord to say yes, although in the market, the norm is a one- month deposit for a one-year lease and a two-month deposit for a two-year lease.
Mr Lu said tenants should pay the advance rental only upon the handing over of the keys to the property, to minimise their risk.
But legitimate owners can sometimes be cheats too. Tenants should therefore pay their rent on a monthly basis, advised Mr Cheng.
He has encountered cases where tenants were happy to pay six to eight months in advance rental for a lower rent, only to find out later they had been cheated.
In one case, the legitimate owner sold his flat soon after the lease was sealed and disappeared, said Mr Cheng.
Tenants just have to be vigilant, said Mr Lu. ‘If the rent is too good to be true, then you have to beware.’
Based on past instances, there is a high chance of a scam happening if the rental is too cheap, he said.
Get the keys first
Tenants should pay the advance rental only upon the handing over of the keys to the property.
Cheap trick
If the rent is too good to be true, then you have to beware. Based on past instances, there is a high chance of a scam happening if the rental is too cheap.
Source : Sunday Times - 18 Jan 2009
The process of finding a rental home may be smooth for some but a nightmare for others.
Late last month, a Malaysian couple and a Japanese expatriate were duped by a conman posing as the property manager-cum-landlord of a terrace house in Serangoon Gardens.
He ‘leased’ the same house to both parties and then ran off with $10,300 of their money.
The two parties have made police reports but there is no guarantee that they will get the money back.
Rental scams surface from time to time and many of them involve HDB flats, property agents said.
While there are no foolproof ways of avoiding one completely, there are precautions tenants can take to ensure they do not fall prey to a scam.
Dealing with agents
First of all, tenants should engage or deal with a property agent from a reputable or established company, said PropNex chief executive Mohamed Ismail.
While this is obviously not foolproof, it does provide a level of protection if anything were to go wrong. ‘At least there is a company to go to for help,’ he said.
Firms like his will carry out their own investigations and take appropriate action, such as helping the tenant to get his money back or terminating the agent’s services if need be, he said.
Second, check with the agent’s property firm or the website of the Institute of Estate Agents (IEA) to see if the agent you are dealing with is a legitimate one, advised Mr Ismail, who is also the IEA’s first vice-president.
On the IEA website, click on Central Register Scheme and type in the agent’s particulars. If the agent has quit or been terminated, his name would have been taken off the list.
But note that the IEA’s list is not comprehensive as its membership is not compulsory. For instance, a major agency, HSR Property Group, is not on the list.
Thirdly, do not pay a property agent a large sum in cash. ‘If you pay cash, he can misappropriate the money,’ said Mr Ismail.
Instead, tenants should pay using a cheque or cashier’s order which states the owner’s name.
Before signing the lease
Property agency bosses also advise potential tenants to do some homework and find out about standard practices before committing to a lease.
There was a case last year where a 20-year-old student from China paid eight months’ advance rental for a four-room Punggol flat to someone who claimed to be the landlord, but who turned out to be the sub-tenant of the flat and a conman.
The student told The Sunday Times on Thursday that she was chased out of the $1,600-a-month flat by the owner, who had returned home after a trip, the day after she moved in. The sub-tenant had disappeared by then.
What she should have done was to get proof of the property’s ownership or ask to meet the owner, agency bosses said.
Property agents are supposed to do due diligence to ascertain the ownership of the property they are handling, so tenants can ask to see the documentation. The owner’s property tax statement would be good.
If you are dealing with the managing agent, ask for documentary proof such as a power of attorney or a letter from the owner authorising the agent to act on his behalf, said C&H Realty managing director Albert Lu.
Minimising losses
HSR Property Group’s executive director, Mr Eric Cheng, said the student would not have been cheated of so much money if she had known that it is the norm in Singapore to pay just a deposit and one month of advance rental.
Tenants can also negotiate for a lower deposit, he said. It is up to the landlord to say yes, although in the market, the norm is a one- month deposit for a one-year lease and a two-month deposit for a two-year lease.
Mr Lu said tenants should pay the advance rental only upon the handing over of the keys to the property, to minimise their risk.
But legitimate owners can sometimes be cheats too. Tenants should therefore pay their rent on a monthly basis, advised Mr Cheng.
He has encountered cases where tenants were happy to pay six to eight months in advance rental for a lower rent, only to find out later they had been cheated.
In one case, the legitimate owner sold his flat soon after the lease was sealed and disappeared, said Mr Cheng.
Tenants just have to be vigilant, said Mr Lu. ‘If the rent is too good to be true, then you have to beware.’
Based on past instances, there is a high chance of a scam happening if the rental is too cheap, he said.
Get the keys first
Tenants should pay the advance rental only upon the handing over of the keys to the property.
Cheap trick
If the rent is too good to be true, then you have to beware. Based on past instances, there is a high chance of a scam happening if the rental is too cheap.
Source : Sunday Times - 18 Jan 2009
The comforts of home prices
Posted by goldenpeace on January 18, 2009
WHILE many will be worrying about losing the roof over their heads, 2009 may just be the year for some to find a new one. From luxury to mass market offerings, homes are now more affordable to a wider and more diverse group of buyers.
And with diversity comes stability, says Jones Lang LaSalle South-east Asia research head Chua Yang Liang.
One of the few voices of optimism in 2009, Dr Chua says that affordability has improved by some 5-24 per cent and that in any market, ‘there will always be opportunity’. ‘While we do not deny that the market has to correct in the short term, the medium to longer term opportunities are looking brighter by the day,’ he adds.
The market has already started to correct with the official property price index having fallen for three consecutive quarters.
Dr Chua adds: ‘People should invest on their own terms and not try to plan based on market trends.’
Those who insist on definitive evidence of market trends can look to business cycles.
Cushman and Wakefield managing director Donald Han says that the property market tends to lag some 6-12 months behind local economic growth indicators. While Mr Han says it is difficult to pinpoint when a cycle troughs or peaks, ‘it is okay to buy or sell at some 10 per cent off from these levels’.
But Mr Han also pointed out that the average holding period for investors is between three and five years with owner occupiers holding for between four and eight years. ‘And as market cycles get shorter over time, one’s commitment to buy must include commitment to hold over and beyond these market cycles,’ he added.
Property cycles are difficult to predict. Estimates for when the bottom of the current cycle will come are at least six months apart.
UBS Investment Research appears to be the most optimistic, saying that the property market slide may turn as early as in the third quarter of the year.
‘In the last trough in Q3 ‘98, the URA residential price index - which tends to lag the market - had already weakened for six quarters and residential vacancy rates had risen for eight quarters before a recovery began. GDP growth also hit a trough of minus 4 per cent in Q3 ‘98,’ UBS notes in a recent report.
But UBS also believes that sales volume could stay weak until vacancy rates peak. And it expects private housing vacancy rate to rise to 10-11 per cent by end-2009.
Goldman Sachs reckons the bottom of the market is more likely to be mid-2010, highlighting that since 1980, there have been three private residential property down cycles, each of which lasted between 2.5 and 3.5 years.
Expecting a further 26 per cent and 31 per cent declines in mass and prime residential prices respectively by 2010, Goldman Sachs says: ‘At these new prices, affordability would improve to levels where we believe buyers would be lured back.’
Homes will definitely become cheaper but will they also become more affordable?
Affordability is generally defined as housing costs as a percentage of household income.
Goldman Sachs says that affordability needs to improve for volumes to recover too. ‘We believe that even if the macro economy stabilises and confidence returns to the Singapore market, residential demand is unlikely to quickly recover, as the affordability ratio for the average household has dipped and is less favourable when compared to 2001 levels,’ it added in a recent report.
Focusing on the top 30 per cent of households, it also notes that the current monthly mortgage payment for private mass residential as a proportion of take-home income is high at 43 per cent, compared with 33 per cent during the Q2-Q4 2001 period.
And affordability will further deteriorate if banks tighten credit on mortgages or loan quantum, and the government cuts employers’ CPF contribution to stimulate the economy.
‘Relative affordability’ may have improved, but Chesterton Suntec International’s head of research and consultancy Colin Tan asks: ‘Does it change the market situation?’
‘While some contend that affordability of the private residential market has improved, the reality is that the vast majority of properties currently on the market are still not affordable to the general population,’ he adds.
As Mr Tan notes, CPF cuts could be a big deterrent for potential home buyers. Saying that any cut could have a ‘psychological’ impact, he adds: ‘Right now, uncertainty over actual rate cuts - whether one per cent or 5 per cent, will deter people from buying. And when it happens, there will be uncertainty about future cuts. Although the government will probably do the cut once, this can play on the mind of potential buyers for a long time.’
Indeed, one does not have to look too far back to realise how irrational buying property really is, regardless of price and affordability.
‘In the last two to three years, many people bought property thinking that prices would continue to rise,’ remembers Chua Chor Hoon, DTZ Research senior director.
Interestingly, the opposite is also true.
Source : Business Times - 17 Jan 2009
WHILE many will be worrying about losing the roof over their heads, 2009 may just be the year for some to find a new one. From luxury to mass market offerings, homes are now more affordable to a wider and more diverse group of buyers.
And with diversity comes stability, says Jones Lang LaSalle South-east Asia research head Chua Yang Liang.
One of the few voices of optimism in 2009, Dr Chua says that affordability has improved by some 5-24 per cent and that in any market, ‘there will always be opportunity’. ‘While we do not deny that the market has to correct in the short term, the medium to longer term opportunities are looking brighter by the day,’ he adds.
The market has already started to correct with the official property price index having fallen for three consecutive quarters.
Dr Chua adds: ‘People should invest on their own terms and not try to plan based on market trends.’
Those who insist on definitive evidence of market trends can look to business cycles.
Cushman and Wakefield managing director Donald Han says that the property market tends to lag some 6-12 months behind local economic growth indicators. While Mr Han says it is difficult to pinpoint when a cycle troughs or peaks, ‘it is okay to buy or sell at some 10 per cent off from these levels’.
But Mr Han also pointed out that the average holding period for investors is between three and five years with owner occupiers holding for between four and eight years. ‘And as market cycles get shorter over time, one’s commitment to buy must include commitment to hold over and beyond these market cycles,’ he added.
Property cycles are difficult to predict. Estimates for when the bottom of the current cycle will come are at least six months apart.
UBS Investment Research appears to be the most optimistic, saying that the property market slide may turn as early as in the third quarter of the year.
‘In the last trough in Q3 ‘98, the URA residential price index - which tends to lag the market - had already weakened for six quarters and residential vacancy rates had risen for eight quarters before a recovery began. GDP growth also hit a trough of minus 4 per cent in Q3 ‘98,’ UBS notes in a recent report.
But UBS also believes that sales volume could stay weak until vacancy rates peak. And it expects private housing vacancy rate to rise to 10-11 per cent by end-2009.
Goldman Sachs reckons the bottom of the market is more likely to be mid-2010, highlighting that since 1980, there have been three private residential property down cycles, each of which lasted between 2.5 and 3.5 years.
Expecting a further 26 per cent and 31 per cent declines in mass and prime residential prices respectively by 2010, Goldman Sachs says: ‘At these new prices, affordability would improve to levels where we believe buyers would be lured back.’
Homes will definitely become cheaper but will they also become more affordable?
Affordability is generally defined as housing costs as a percentage of household income.
Goldman Sachs says that affordability needs to improve for volumes to recover too. ‘We believe that even if the macro economy stabilises and confidence returns to the Singapore market, residential demand is unlikely to quickly recover, as the affordability ratio for the average household has dipped and is less favourable when compared to 2001 levels,’ it added in a recent report.
Focusing on the top 30 per cent of households, it also notes that the current monthly mortgage payment for private mass residential as a proportion of take-home income is high at 43 per cent, compared with 33 per cent during the Q2-Q4 2001 period.
And affordability will further deteriorate if banks tighten credit on mortgages or loan quantum, and the government cuts employers’ CPF contribution to stimulate the economy.
‘Relative affordability’ may have improved, but Chesterton Suntec International’s head of research and consultancy Colin Tan asks: ‘Does it change the market situation?’
‘While some contend that affordability of the private residential market has improved, the reality is that the vast majority of properties currently on the market are still not affordable to the general population,’ he adds.
As Mr Tan notes, CPF cuts could be a big deterrent for potential home buyers. Saying that any cut could have a ‘psychological’ impact, he adds: ‘Right now, uncertainty over actual rate cuts - whether one per cent or 5 per cent, will deter people from buying. And when it happens, there will be uncertainty about future cuts. Although the government will probably do the cut once, this can play on the mind of potential buyers for a long time.’
Indeed, one does not have to look too far back to realise how irrational buying property really is, regardless of price and affordability.
‘In the last two to three years, many people bought property thinking that prices would continue to rise,’ remembers Chua Chor Hoon, DTZ Research senior director.
Interestingly, the opposite is also true.
Source : Business Times - 17 Jan 2009
It's tougher to get loans
Posted by goldenpeace on January 18, 2009
It may be harder for home buyers to secure bank loans now.
‘Banks are a bit more cautious these days,’ says Mr Chris Koh, director at Dennis Wee Properties. Two other property experts that Life! spoke to agree.
ERA Asia Pacific’s director Eugene Lim says banks now take longer to process home loan applications. ‘During good times, loans would be approved within 24 hours. Currently, it can take as long as two weeks,’ he says, adding that it is a sign that banks are running more detailed checks.
They are also less willing to offer a loan quantum of 90 per cent, which was the norm during good times, says Mr Vincent Koh, vice-president of HSR International Realtor.
Loan quantum refers to the size of a loan in relation to a property’s market valuation. Industry players say there have been cases where the bank’s valuation of an apartment is lower than what a seller is asking for.
‘Most usually offer 80 per cent now,’ says Mr Koh of HSR.
Industry insiders say loans are generally smaller or harder to secure for the following people:
1) Those on commission-based income or are self-employed, compared to employees on fixed salary.
2) Applicants who are single, compared to married couples with dual income.
3) Those who have just started work.
To make up the shortfall, these home buyers will have to dig deeper into their savings or their CPF accounts.
Mr Gregory Chan, OCBC Bank’s head of consumer secured lending, says the bank assesses and approves each loan application on the basis of the customer’s credit worthiness.
‘Ultimately, the loan quantum is determined by property valuation and credit worthiness of the applicant,’ he says.
Among the factors considered are the individual’s financial commitments, income and credit history.
United Overseas Bank’s head of loans division, Mr Kevin Lam, says customers with a good credit record and stable income can be assured that UOB will consider their loan applications favourably despite the current economic environment.
Regardless of the size of the home loan, Mr Dennis Khoo, general manager of retail banking products at Standard Chartered Bank, says that in times of economic stress, it is prudent for customers to consider a smaller loan to ensure that they do not over-extend themselves.
‘We recommend that customers work with their relationship managers to identify their individual situation and preferences, before selecting a home loan package,’ he adds.
Source : Straits Times - 17 Jan 2009
It may be harder for home buyers to secure bank loans now.
‘Banks are a bit more cautious these days,’ says Mr Chris Koh, director at Dennis Wee Properties. Two other property experts that Life! spoke to agree.
ERA Asia Pacific’s director Eugene Lim says banks now take longer to process home loan applications. ‘During good times, loans would be approved within 24 hours. Currently, it can take as long as two weeks,’ he says, adding that it is a sign that banks are running more detailed checks.
They are also less willing to offer a loan quantum of 90 per cent, which was the norm during good times, says Mr Vincent Koh, vice-president of HSR International Realtor.
Loan quantum refers to the size of a loan in relation to a property’s market valuation. Industry players say there have been cases where the bank’s valuation of an apartment is lower than what a seller is asking for.
‘Most usually offer 80 per cent now,’ says Mr Koh of HSR.
Industry insiders say loans are generally smaller or harder to secure for the following people:
1) Those on commission-based income or are self-employed, compared to employees on fixed salary.
2) Applicants who are single, compared to married couples with dual income.
3) Those who have just started work.
To make up the shortfall, these home buyers will have to dig deeper into their savings or their CPF accounts.
Mr Gregory Chan, OCBC Bank’s head of consumer secured lending, says the bank assesses and approves each loan application on the basis of the customer’s credit worthiness.
‘Ultimately, the loan quantum is determined by property valuation and credit worthiness of the applicant,’ he says.
Among the factors considered are the individual’s financial commitments, income and credit history.
United Overseas Bank’s head of loans division, Mr Kevin Lam, says customers with a good credit record and stable income can be assured that UOB will consider their loan applications favourably despite the current economic environment.
Regardless of the size of the home loan, Mr Dennis Khoo, general manager of retail banking products at Standard Chartered Bank, says that in times of economic stress, it is prudent for customers to consider a smaller loan to ensure that they do not over-extend themselves.
‘We recommend that customers work with their relationship managers to identify their individual situation and preferences, before selecting a home loan package,’ he adds.
Source : Straits Times - 17 Jan 2009
Playing the waiting game
Posted by goldenpeace on January 18, 2009
When investor relations consultant Gary Teo reaches for his newspaper every morning, he reads the property news first.
He and his wife, Grace Tan, 32, a senior QA engineer, are looking to buy a place of their own. They have been living with his parents in a terrace house at Novena since they got married in September last year.
‘I’ve been wanting to live independently and now that I’m married, all the more I want to live on my own,’ says Mr Teo, 31.
However, he is in no hurry, although he has been househunting since 2007. ‘I’m waiting for prices to fall further,’ he says, confident that it is now very much a buyer’s market.
So he keeps tabs on property sales online and pores over the classified ads. The couple want to buy a three- or four-bedroom apartment in central Singapore. ‘Our budget is no more than $1 million,’ he says.
They either did not like the few apartments they have inspected or the asking prices exceeded their budget.
Many others are like Mr Teo: buyers playing a waiting game, believing that sellers will blink first.
And all signs point to buyers getting their way, although Mr Eugene Lim, 42, associate director at property agency ERA Asia Pacific, says the private property market is currently at a ’standstill’ because sellers are still struggling to come to terms with the drop in property prices.
Mr Chris Koh, 42, director at Dennis Wee Properties, says it used to take about two to four weeks to sell an apartment. Now he sees some apartments on the market for more than three months because ‘the prices asked for are too high and unrealistic’.
Home buyers prefer to wait till second half of the year
The truth is, private property prices have indeed fallen, some by as much as 25 per cent over the past year.
Sensing this, ‘buyers are just starting to bargain-hunt’, says ERA’s Mr Lim.
Mr Koh agrees that ‘home buyers are taking the wait-and-see approach and thus are not committing to purchases’.
He adds that buyers expect property prices to fall even further and they are looking to buy only ‘in the third or fourth quarter of this year’.
The reason is simple: Analysts are predicting further uncertainty in the economy and home prices may fall another 10 to 20 per cent.
Today’s home-hunters are ‘mostly young couples who are looking to buy their first home’, says Mr Koh, unlike upbeat times such as in 2007 when people bought property for investment.
Graphic designer Edmund Seet, 35, and communications consultant Delicia Tan, 30, are getting married in June. Armed with a $600,000 budget, they are looking for a two-bedroom apartment in East Coast.
‘This will enable us to have more cash for renovations and furnishings,’ says Ms Tan.
Like Mr Teo, she believes that property prices will drop further during the year and so have yet to sign on the dotted line.
She and her fiance monitor property listings regularly, visit new showrooms in the area and keep a lookout for banners and signs that advertise units for sale.
‘We may buy only in June,’ she says.
They are playing it cool because they have a back-up plan: They will rent an apartment from a relative if they cannot find a suitable one to buy after their wedding.
There is no doubt buyers have the upper hand in today’s market, says Mr Vincent Koh, 36, vice-president at HSR International Realtors.
He cites examples of sellers who will let go of their property at 10 per cent less than their desired selling price.
‘Some are so desperate, they may offer to pay for the buyer’s renovations, so they can get the property off their hands,’ he says.
It is not just individual sellers who are finding it tough.
The property experts decline to give specific details but reveal that they have heard of developers who throw in sweeteners such as waiver of maintenance fees to entice buyers.
Which is good news, but not good enough for many buyers such as art director Adrian Low, who prefer to wait.
Currently renting a two-bedroom apartment in Lavender, the 36-year-old bachelor wants to buy a three-bedroom apartment in the Braddell Road area to be nearer his office in MacPherson but does not want to pay more than $900,000.
The 20 apartments he has viewed are not close to an MRT station and eating places. More importantly, the prices he has been quoted are not ideal.
‘I’m waiting till prices drop to $800,000,’ he says.
He could get his wish, because the times are a-changing.
In 2007 when sales were upbeat, ’sellers were more arrogant and would often increase their price once an offer was received’, recalls ERA’s Mr Lim.
In the current climate, he says, ’sellers’ instructions to agents are to relay any offer to them for consideration’.
‘Some are so desperate, they may offer to pay for the buyer’s renovations, so they can get the property off their hands’ - HSR International Realtors’ vice-president Vincent Koh on property buyers having the upper hand over sellers
Source : Straits Times - 17 Jan 2009
When investor relations consultant Gary Teo reaches for his newspaper every morning, he reads the property news first.
He and his wife, Grace Tan, 32, a senior QA engineer, are looking to buy a place of their own. They have been living with his parents in a terrace house at Novena since they got married in September last year.
‘I’ve been wanting to live independently and now that I’m married, all the more I want to live on my own,’ says Mr Teo, 31.
However, he is in no hurry, although he has been househunting since 2007. ‘I’m waiting for prices to fall further,’ he says, confident that it is now very much a buyer’s market.
So he keeps tabs on property sales online and pores over the classified ads. The couple want to buy a three- or four-bedroom apartment in central Singapore. ‘Our budget is no more than $1 million,’ he says.
They either did not like the few apartments they have inspected or the asking prices exceeded their budget.
Many others are like Mr Teo: buyers playing a waiting game, believing that sellers will blink first.
And all signs point to buyers getting their way, although Mr Eugene Lim, 42, associate director at property agency ERA Asia Pacific, says the private property market is currently at a ’standstill’ because sellers are still struggling to come to terms with the drop in property prices.
Mr Chris Koh, 42, director at Dennis Wee Properties, says it used to take about two to four weeks to sell an apartment. Now he sees some apartments on the market for more than three months because ‘the prices asked for are too high and unrealistic’.
Home buyers prefer to wait till second half of the year
The truth is, private property prices have indeed fallen, some by as much as 25 per cent over the past year.
Sensing this, ‘buyers are just starting to bargain-hunt’, says ERA’s Mr Lim.
Mr Koh agrees that ‘home buyers are taking the wait-and-see approach and thus are not committing to purchases’.
He adds that buyers expect property prices to fall even further and they are looking to buy only ‘in the third or fourth quarter of this year’.
The reason is simple: Analysts are predicting further uncertainty in the economy and home prices may fall another 10 to 20 per cent.
Today’s home-hunters are ‘mostly young couples who are looking to buy their first home’, says Mr Koh, unlike upbeat times such as in 2007 when people bought property for investment.
Graphic designer Edmund Seet, 35, and communications consultant Delicia Tan, 30, are getting married in June. Armed with a $600,000 budget, they are looking for a two-bedroom apartment in East Coast.
‘This will enable us to have more cash for renovations and furnishings,’ says Ms Tan.
Like Mr Teo, she believes that property prices will drop further during the year and so have yet to sign on the dotted line.
She and her fiance monitor property listings regularly, visit new showrooms in the area and keep a lookout for banners and signs that advertise units for sale.
‘We may buy only in June,’ she says.
They are playing it cool because they have a back-up plan: They will rent an apartment from a relative if they cannot find a suitable one to buy after their wedding.
There is no doubt buyers have the upper hand in today’s market, says Mr Vincent Koh, 36, vice-president at HSR International Realtors.
He cites examples of sellers who will let go of their property at 10 per cent less than their desired selling price.
‘Some are so desperate, they may offer to pay for the buyer’s renovations, so they can get the property off their hands,’ he says.
It is not just individual sellers who are finding it tough.
The property experts decline to give specific details but reveal that they have heard of developers who throw in sweeteners such as waiver of maintenance fees to entice buyers.
Which is good news, but not good enough for many buyers such as art director Adrian Low, who prefer to wait.
Currently renting a two-bedroom apartment in Lavender, the 36-year-old bachelor wants to buy a three-bedroom apartment in the Braddell Road area to be nearer his office in MacPherson but does not want to pay more than $900,000.
The 20 apartments he has viewed are not close to an MRT station and eating places. More importantly, the prices he has been quoted are not ideal.
‘I’m waiting till prices drop to $800,000,’ he says.
He could get his wish, because the times are a-changing.
In 2007 when sales were upbeat, ’sellers were more arrogant and would often increase their price once an offer was received’, recalls ERA’s Mr Lim.
In the current climate, he says, ’sellers’ instructions to agents are to relay any offer to them for consideration’.
‘Some are so desperate, they may offer to pay for the buyer’s renovations, so they can get the property off their hands’ - HSR International Realtors’ vice-president Vincent Koh on property buyers having the upper hand over sellers
Source : Straits Times - 17 Jan 2009
Aid for home owners? 'Sensible steps' if needed
Posted by goldenpeace on January 18, 2009
THE Government will help home owners during this economic downturn, but moves to artificially prop up the private property market will not work in these uncertain times, said National Development Minister Mah Bow Tan yesterday.
Mr Mah - speaking to the media at a hongbao presentation and Chinese New Year variety show held in Tampines East last night - said buyers are likely to stay on the sidelines in view of the economic uncertainty.
‘We’re in recession… and there’s a lot of uncertainty. People are concerned about their jobs, and all this is feeding through into the property market. Even if there’s demand, I think there’s a lot of wait-and-see attitude,’ Mr Mah said.
According to data from the Urban Redevelopment Authority (URA) earlier this month, only 4,287 homes were sold last year.
This capped the worst year for new sales here since 1990.
Mr Mah said the Government is watching the market very closely. ‘If there’re sensible measures we can take, we’ll certainly do so,’ he said.
What about measures such as a temporary suspension of stamp duty or a reintroduction of the deferred payment scheme?
Some experts have said such measures could give the property market a much-needed boost as they might give buyers greater incentive to purchase homes.
The deferred payment scheme was introduced during the Asian financial crisis to boost the market, but scrapped in late 2007.
Buyers could secure a property for a relatively small cash down payment and then flip it for a profit before so much as a brick had been laid.
Stamp duty is basically a tax that has to be paid for the stamping of documents relating to properties and shares, for instance, leases or mortgages.
Mr Mah said: ‘At this stage, it’s not the right time for us to talk about stimulating demand.’
He added: ‘Until there’s a little more certainty in the market, it’s pointless to talk about artificial measures to stimulate demand. They’ll not work.’
The Government has tried to help ’stabilise’ the market by removing some of the excess supply, he said.
It has also tried to disclose as much information as possible, including sales figures and prices, so the market ‘knows what’s happening’ and people can make ‘informed decisions’.
The Ministry of National Development (MND) said last month that it had decided not to add any new sites to the Government Land Sales Programme for the first half of this year.
Referring to this move, Mr Mah said: ‘This will help to stabilise the market and ensure there is no further overhang.’
As for next week’s Budget, Mr Mah said he could not disclose any details but the focus would be on helping ‘people hurt in the economic crisis’.
The Government will look into how it can help homebuyers own their own homes. It will also see how it can help the elderly monetise their flats so they can earn some money that is ’sustainable’.
Referring to the Government’s lease buyback scheme, Mr Mah hopes to see it implemented during the first half of this year.
Source : Straits Times - 17 Jan 2009
THE Government will help home owners during this economic downturn, but moves to artificially prop up the private property market will not work in these uncertain times, said National Development Minister Mah Bow Tan yesterday.
Mr Mah - speaking to the media at a hongbao presentation and Chinese New Year variety show held in Tampines East last night - said buyers are likely to stay on the sidelines in view of the economic uncertainty.
‘We’re in recession… and there’s a lot of uncertainty. People are concerned about their jobs, and all this is feeding through into the property market. Even if there’s demand, I think there’s a lot of wait-and-see attitude,’ Mr Mah said.
According to data from the Urban Redevelopment Authority (URA) earlier this month, only 4,287 homes were sold last year.
This capped the worst year for new sales here since 1990.
Mr Mah said the Government is watching the market very closely. ‘If there’re sensible measures we can take, we’ll certainly do so,’ he said.
What about measures such as a temporary suspension of stamp duty or a reintroduction of the deferred payment scheme?
Some experts have said such measures could give the property market a much-needed boost as they might give buyers greater incentive to purchase homes.
The deferred payment scheme was introduced during the Asian financial crisis to boost the market, but scrapped in late 2007.
Buyers could secure a property for a relatively small cash down payment and then flip it for a profit before so much as a brick had been laid.
Stamp duty is basically a tax that has to be paid for the stamping of documents relating to properties and shares, for instance, leases or mortgages.
Mr Mah said: ‘At this stage, it’s not the right time for us to talk about stimulating demand.’
He added: ‘Until there’s a little more certainty in the market, it’s pointless to talk about artificial measures to stimulate demand. They’ll not work.’
The Government has tried to help ’stabilise’ the market by removing some of the excess supply, he said.
It has also tried to disclose as much information as possible, including sales figures and prices, so the market ‘knows what’s happening’ and people can make ‘informed decisions’.
The Ministry of National Development (MND) said last month that it had decided not to add any new sites to the Government Land Sales Programme for the first half of this year.
Referring to this move, Mr Mah said: ‘This will help to stabilise the market and ensure there is no further overhang.’
As for next week’s Budget, Mr Mah said he could not disclose any details but the focus would be on helping ‘people hurt in the economic crisis’.
The Government will look into how it can help homebuyers own their own homes. It will also see how it can help the elderly monetise their flats so they can earn some money that is ’sustainable’.
Referring to the Government’s lease buyback scheme, Mr Mah hopes to see it implemented during the first half of this year.
Source : Straits Times - 17 Jan 2009
Saturday, January 17, 2009
District 07 - Concourse Skyline
Concourse Skyline.
One of the Concourse Skyline’s selling points is its location. Some units offer sweeping waterfront views, and the site is at the heart of major attractions such as the upcoming Marina Bay integrated resort and Gardens by the Bay.
Developer : Hong Fok Land Ltd
Location : Beach Road
Site Area : Approx. 20,493 Sq. M. or 220,586 Sq. Ft.
Tenure : 99-Year Leasehold (wef 13-Mar-2008)
Expected TOP : End 2013
Design Architect : COX Group
Building : 2 Blocks - Stepping up from 20 to 28 Storeys and 34 to 40 Storeys
Podium : 7-Storey Block
Total : 360 units
One of the Concourse Skyline’s selling points is its location. Some units offer sweeping waterfront views, and the site is at the heart of major attractions such as the upcoming Marina Bay integrated resort and Gardens by the Bay.Developer : Hong Fok Land Ltd
Location : Beach Road
Site Area : Approx. 20,493 Sq. M. or 220,586 Sq. Ft.
Tenure : 99-Year Leasehold (wef 13-Mar-2008)
Expected TOP : End 2013
Design Architect : COX Group
Building : 2 Blocks - Stepping up from 20 to 28 Storeys and 34 to 40 Storeys
Podium : 7-Storey Block
Total : 360 units
Unit Types:
Tower Block - 342 Apartment Units / Podium Block - 18 Apartment Units
1-Bedroom Size ~ 775 to 893 sq. ft. (148 units)
2-Bedroom Size ~ 1,087 to 1,173 sq. ft. (110 units)
3-Bedroom Size ~ 1,313 to 1,991 sq. ft. (66 units)
4-Bedroom Size ~ 2,648 sq. ft. (2 units) 4+Study Size ~ 2,131 to 2,282 sq. ft. (24 units)
Sky Suites/Penthouse Size ~ 3,272 to 11,033 sq. ft. (10 units)
Facilities:
- Clubhouse with function room
- Gymnasium
- Lounge
- Male & Female Changing Rooms
- Steam Rooms
- Lap Pool 5om
- Wading Pool
- Hot Spa
- Sky Garden
- BBQ Corner
- Sunning Lawn
- Covered link bridge to Nicoll Highway Station (Circle Line - underconstruction)
Friday, January 16, 2009
Developer sales plumb new depths
Posted by goldenpeace on January 16, 2009
Home sales hit record lows in 2008 but new launches are on the cards
The year gone by was one to forget for developers as they managed to sell just 4,351 homes in 2008, representing the lowest figure in at least 10 years - diving beyond the previous troughs of 5,156 and 5,520 units in 2003 and 1998 respectively.
The sales in 2008 were also significantly lower than the annual 10-year average (1998-2007) of 8,200 units.
Developer sales fizzled out in the last month of 2008, registering just 131 transactions - less than five a day.
The number of projects with licences for sale in December has, however, risen to 8,350 units, up from 6,512 units in the previous month.
Only 157 new homes were launched in December, the lowest figure since developer data was made available in mid-2007. CBRE Research executive director Li Hiaw Ho said: ‘This shows that developers kept their launch activity to a minimum as they monitored the market.’
But not all developers held back.
Macly Capital sold 43 units of the 104-unit Newton Edge on Makeway Avenue at the median price of $1,200 psf. Mr Li said the strength of the project lay in the affordable quantum of $500,000 to $900,000 for a majority of the units due to their small sizes ranging from 440-915 sq ft.
Pricing is likely to have been a factor also. An earlier report by UBS noted that Newton Edge was priced lower than VIVA at Suffolk Walk nearby, where 15 units were sold in Q3 2008 for around $1,550 psf.
Hayden Properties’ The Ritz-Carlton Residences in Cairnhill also chalked up healthy sales at what appeared to be discounted prices. Eight units were sold at a median price of $3,086 psf.
Hayden Properties director (sales and marketing) David Neubronner revealed that the buyers comprise project shareholders and directors, with just one third-party transaction.
‘
The purchase prices by the related parties are preferential rates, and the purchase price paid by the third party reflects current market pricing,’ he said.
Mr Neubronner added that the unit purchased by the third party is located on a lower floor and was priced at $3,700 psf, which is only an 8 per cent decrease from the initial launch price of $4,000 psf.
Colliers International director for research and advisory Tay Huey Ying noted that mid-tier projects in the Rest of Central Region (RCR) dominated launches in December, accounting for 72 per cent of the units launched during the month. ‘This, following the domination of high-end projects in recent months, could be an indication of the weakening holding power among small and mid- tier developers,’ she added.
RCR projects that sold in the month include 10 units at Nova 88 at a median price of $988 psf and nine units of The Aristo @ Amber at a median price of $1,002 psf.
‘This decline in demand has led to the contraction in the islandwide URA property price index (PPI) of some 5.6 per cent as the market attempts to generate more activity through price reductions,’ said Jones Lang LaSalle local director and head of research (South East Asia) Chua Yang Liang. ‘Historically, take-up has been leading the PPI. On the back of this contraction in take-up in Q4′08, we can expect the PPI to contract further, possibly by another 5-7 per cent in Q1′09,’ he said.
Nevertheless, some developers have been continuing to prepare developments for launch.
UOL is expected to launch a 646-unit development at Simei Street 4 billed as a luxury condominium for upgraders in the first half of 2009.
Frasers Centrepoint is also preparing to launch a development on Boon Lay Way. A spokesman said: ‘Caspian, our 712-unit development on Boon Lay Way, is launch-ready. At this point, we are still finalising several details, with regard to the actual launch period, pricing, etc, and will announce them once we are ready.’
It is also understood that Far East Organization is preparing to launch a development in Choa Chu Kang this year.
Notably, all developments are in the Outside Central Region where property prices are not expected to fall as significantly as in the mid-tier and high-end segments.
Source : Business Times - 16 Jan 2009
Home sales hit record lows in 2008 but new launches are on the cards
The year gone by was one to forget for developers as they managed to sell just 4,351 homes in 2008, representing the lowest figure in at least 10 years - diving beyond the previous troughs of 5,156 and 5,520 units in 2003 and 1998 respectively.
The sales in 2008 were also significantly lower than the annual 10-year average (1998-2007) of 8,200 units.
Developer sales fizzled out in the last month of 2008, registering just 131 transactions - less than five a day.
The number of projects with licences for sale in December has, however, risen to 8,350 units, up from 6,512 units in the previous month.
Only 157 new homes were launched in December, the lowest figure since developer data was made available in mid-2007. CBRE Research executive director Li Hiaw Ho said: ‘This shows that developers kept their launch activity to a minimum as they monitored the market.’
But not all developers held back.
Macly Capital sold 43 units of the 104-unit Newton Edge on Makeway Avenue at the median price of $1,200 psf. Mr Li said the strength of the project lay in the affordable quantum of $500,000 to $900,000 for a majority of the units due to their small sizes ranging from 440-915 sq ft.
Pricing is likely to have been a factor also. An earlier report by UBS noted that Newton Edge was priced lower than VIVA at Suffolk Walk nearby, where 15 units were sold in Q3 2008 for around $1,550 psf.
Hayden Properties’ The Ritz-Carlton Residences in Cairnhill also chalked up healthy sales at what appeared to be discounted prices. Eight units were sold at a median price of $3,086 psf.
Hayden Properties director (sales and marketing) David Neubronner revealed that the buyers comprise project shareholders and directors, with just one third-party transaction.
‘
The purchase prices by the related parties are preferential rates, and the purchase price paid by the third party reflects current market pricing,’ he said.
Mr Neubronner added that the unit purchased by the third party is located on a lower floor and was priced at $3,700 psf, which is only an 8 per cent decrease from the initial launch price of $4,000 psf.
Colliers International director for research and advisory Tay Huey Ying noted that mid-tier projects in the Rest of Central Region (RCR) dominated launches in December, accounting for 72 per cent of the units launched during the month. ‘This, following the domination of high-end projects in recent months, could be an indication of the weakening holding power among small and mid- tier developers,’ she added.
RCR projects that sold in the month include 10 units at Nova 88 at a median price of $988 psf and nine units of The Aristo @ Amber at a median price of $1,002 psf.
‘This decline in demand has led to the contraction in the islandwide URA property price index (PPI) of some 5.6 per cent as the market attempts to generate more activity through price reductions,’ said Jones Lang LaSalle local director and head of research (South East Asia) Chua Yang Liang. ‘Historically, take-up has been leading the PPI. On the back of this contraction in take-up in Q4′08, we can expect the PPI to contract further, possibly by another 5-7 per cent in Q1′09,’ he said.
Nevertheless, some developers have been continuing to prepare developments for launch.
UOL is expected to launch a 646-unit development at Simei Street 4 billed as a luxury condominium for upgraders in the first half of 2009.
Frasers Centrepoint is also preparing to launch a development on Boon Lay Way. A spokesman said: ‘Caspian, our 712-unit development on Boon Lay Way, is launch-ready. At this point, we are still finalising several details, with regard to the actual launch period, pricing, etc, and will announce them once we are ready.’
It is also understood that Far East Organization is preparing to launch a development in Choa Chu Kang this year.
Notably, all developments are in the Outside Central Region where property prices are not expected to fall as significantly as in the mid-tier and high-end segments.
Source : Business Times - 16 Jan 2009
Thursday, January 15, 2009
District 03 - Alexis @ Alexandra Road
Alexis @ Alexandra Road
Developer : Yi Kai Group / Fission Group
Developer : Yi Kai Group / Fission Group
Tenure : Freehold
Expected TOP : Mid 2012
Full Facilities
Total of 293 units
1-Bedroom : 114 units Sizes from 377 sq ft ~ 500 sq ft
1-Bed + Study : 77 units Sizes from 460 sq ft ~ 920 s ft
2-Bedroom : 57 units Sizes from 570 sq ft ~ 930 sq ft
2-Bed + Study : 28 units Sizes from 660 sq ft ~ 1,100 sq ft
3-Bedroom PH : 15 units Size from 970 sq ft ~ 1,160 sq ft
3-Bed + Study PH : 2 units Sizes from 1,260 sq ft ~ 1,560 sq ft
Full Facilities
Total of 293 units
1-Bedroom : 114 units Sizes from 377 sq ft ~ 500 sq ft
1-Bed + Study : 77 units Sizes from 460 sq ft ~ 920 s ft
2-Bedroom : 57 units Sizes from 570 sq ft ~ 930 sq ft
2-Bed + Study : 28 units Sizes from 660 sq ft ~ 1,100 sq ft
3-Bedroom PH : 15 units Size from 970 sq ft ~ 1,160 sq ft
3-Bed + Study PH : 2 units Sizes from 1,260 sq ft ~ 1,560 sq ft
email: goldenpeace@propmartsg.com
District 09 - RiverGate
Situated by the Singapore River and offering uninterrupted views of the city to Keppel Docks these brand new apartments are expected to be ready for occupation around February 2009.
Project Name: RIVERGATE (former TradeMart Warehouses) Developer: Capitaland/Hwa Hong Corp Ltd
Property Type: Apartment
Location: Robertson Quay
Tenure: Freehold
Site Area: 320,000 sq ft (29,729 sq m)
Expected TOP: Early 2009
Total Units: 545
Total Units: 545
No. of Block: 3 Blocks of 43-Storey Highrise Towers
Unit Details:
2-Bedroom Size 1,022 to 1,445 sq.ft.( 95 to 134 sq.m.)= 103 units
3-Bedroom Size 1,463 to 1,603 sq.ft.(136 to 149 sq.m.)= 268 units
4-Bedroom Size 1,722 to 2,109 sq.ft.(160 to 196 sq.m.)= 162 units
Penthouse Size 3,100 to 3,670 sq.ft.(288 to 341 sq.m.)= 12 units
Award: Green Mark Gold Plus
RiverGate is a distinguished landmark by the Singapore River with bold unique architectural design built by award-winning architects, offer panoramic City, Sea or River views overlooking surrounding developments.
Facilities:-- Timber Deck with BBQ Pits
- Infinity Pool Edge
- Jacuzzi- 50m Swimming Pool
- Linear Water Feature- Lily Pond
- Fitness Area
- Basketball Court
- Tennis Courts
- Children's Playground
- Children's Pool
- Children's Water Ploy Area
- Hot Tub- Jacuzzi Loungers
- Spa Jets- Gymnasium (2nd Storey)
- Golf Simulator (2nd Storey)
- Reading Room (2nd Storey)
- Function Room (2nd Storey )
- Home Theatre (2nd Storey)
- Sky Gymnasium (34th Storey)
- Water Wall
Buyers, sellers at impasse
Posted by goldenpeace on January 15, 2009
Owners still asking for sky-high prices while bank valuations fall
A DOWNTURN is usually the time for bargain-hunters to snap up properties on the cheap. But for now at least, the reality could not be more different, as prospective buyers discover.
Said Ms K Chan, a HDB dweller looking to upgrade to a condo: “I thought this would be a good time to pick up a good bargain. But owners are still asking for sky-high prices.”
According to industry players, the volume of transactions in the last month or so has dropped to a level only witnessed during the Sars outbreak when the market was practically frozen.
The reason? A growing gap between falling bank valuations which determine how large a bank loan buyers can take and high asking prices by highly-geared sellers needing to pay off their outstanding loans.
A random check by Today on 15 homes for sale condos and various landed property types spread across the island found stark differences between what owners are asking for and preliminary valuations by independent professionals.
While it is normal for initial asking prices to be higher than the conservative value banks attach to a property, in six cases that Today found, the valuations were less than two-thirds of the asking price.
For instance, while an owner of a four-storey bungalow in Holland Grove Drive was asking for $ 7.2 million, his property was valued at just $3.3m. Likewise, a Caribbean at Keppel Bay unit valued at about $700,000 was being touted for sale for $1.1m.
‘Better for sellers to cut losses now’
Property agent Michael Leong lamented: “It’s very difficult to negotiate deals these days. Both sellers and buyers would hesitate for really long and in the end, they still cannot agree on the price.”
Chesterton Suntec International director Colin Tan said the property bull-run of yesteryear - which pushed prices to record levels - has resulted in once-overly-bullish investors held hostage by the large loans they undertook.
HSR Property Group executive director Eric Cheng thinks this is especially so in the luxury segment, where “people are more likely to be highly geared and own more than one property”.
For sellers unwilling to budge on their asking price, the latest Citigroup report on the property market makes for grim reading.
The bank forecasts mid-tier to high-end residential property prices here to fall another 35 per cent, bringing “prices back to 1998 levels”. For prices of luxury properties such as Ardmore Park, the fall would be even steeper - up to 60 per cent from their peaks two years ago, Citi estimates.
Noting the current general scarcity of cash, Mr Tan said: “For sellers, maybe it’s better for them to cut losses now, rather than take a bigger loss later on. But sometimes you have geared up so much, the situation is out of your hands - you are stuck.”
‘Buyers can wait’
Before buying a property, buyers can request from banks a preliminary valuation - determined by an independent professional - which estimates a property’s open market value.
Such a valuation takes into account, among other factors, recent transactions and property launches in the vicinity. The banks would then carry out a final valuation onsite before granting a loan, capped at 90 per cent of the purchase price or valuation, whichever is lower.
According to Mr Cheng, the final valuations usually do not veer much from the preliminary ones. In rare cases, banks may increase their valuation - by up to 20 per cent - to match the asking price, provided they are convinced of the buyers’ ability to finance the loan, he said.
Still, the lack of activity in the property market, to some extent, means valuers are groping in the dark when setting the property value. “A lot of it is based on gut-feel,” said Mr Cheng.
But Mr Dennis Ng, spokesman for mortgage consultancy portal www.housingloansg.com, believes that valuations accurately reflect current dire sentiments. He predicts the impasse will be broken in the second half of the year - when it becomes a buyers’ market. “Ultimately one party will give way,” said Mr Ng.
For now, Chesterton Suntec International’s Mr Tan has this advice for prospective buyers: “You can afford to wait. Only go (into a transaction) when it is a property you really like and it is within your affordability.”
Source : Today - 15 Jan 2009
Owners still asking for sky-high prices while bank valuations fall
A DOWNTURN is usually the time for bargain-hunters to snap up properties on the cheap. But for now at least, the reality could not be more different, as prospective buyers discover.
Said Ms K Chan, a HDB dweller looking to upgrade to a condo: “I thought this would be a good time to pick up a good bargain. But owners are still asking for sky-high prices.”
According to industry players, the volume of transactions in the last month or so has dropped to a level only witnessed during the Sars outbreak when the market was practically frozen.
The reason? A growing gap between falling bank valuations which determine how large a bank loan buyers can take and high asking prices by highly-geared sellers needing to pay off their outstanding loans.
A random check by Today on 15 homes for sale condos and various landed property types spread across the island found stark differences between what owners are asking for and preliminary valuations by independent professionals.
While it is normal for initial asking prices to be higher than the conservative value banks attach to a property, in six cases that Today found, the valuations were less than two-thirds of the asking price.
For instance, while an owner of a four-storey bungalow in Holland Grove Drive was asking for $ 7.2 million, his property was valued at just $3.3m. Likewise, a Caribbean at Keppel Bay unit valued at about $700,000 was being touted for sale for $1.1m.
‘Better for sellers to cut losses now’
Property agent Michael Leong lamented: “It’s very difficult to negotiate deals these days. Both sellers and buyers would hesitate for really long and in the end, they still cannot agree on the price.”
Chesterton Suntec International director Colin Tan said the property bull-run of yesteryear - which pushed prices to record levels - has resulted in once-overly-bullish investors held hostage by the large loans they undertook.
HSR Property Group executive director Eric Cheng thinks this is especially so in the luxury segment, where “people are more likely to be highly geared and own more than one property”.
For sellers unwilling to budge on their asking price, the latest Citigroup report on the property market makes for grim reading.
The bank forecasts mid-tier to high-end residential property prices here to fall another 35 per cent, bringing “prices back to 1998 levels”. For prices of luxury properties such as Ardmore Park, the fall would be even steeper - up to 60 per cent from their peaks two years ago, Citi estimates.
Noting the current general scarcity of cash, Mr Tan said: “For sellers, maybe it’s better for them to cut losses now, rather than take a bigger loss later on. But sometimes you have geared up so much, the situation is out of your hands - you are stuck.”
‘Buyers can wait’
Before buying a property, buyers can request from banks a preliminary valuation - determined by an independent professional - which estimates a property’s open market value.
Such a valuation takes into account, among other factors, recent transactions and property launches in the vicinity. The banks would then carry out a final valuation onsite before granting a loan, capped at 90 per cent of the purchase price or valuation, whichever is lower.
According to Mr Cheng, the final valuations usually do not veer much from the preliminary ones. In rare cases, banks may increase their valuation - by up to 20 per cent - to match the asking price, provided they are convinced of the buyers’ ability to finance the loan, he said.
Still, the lack of activity in the property market, to some extent, means valuers are groping in the dark when setting the property value. “A lot of it is based on gut-feel,” said Mr Cheng.
But Mr Dennis Ng, spokesman for mortgage consultancy portal www.housingloansg.com, believes that valuations accurately reflect current dire sentiments. He predicts the impasse will be broken in the second half of the year - when it becomes a buyers’ market. “Ultimately one party will give way,” said Mr Ng.
For now, Chesterton Suntec International’s Mr Tan has this advice for prospective buyers: “You can afford to wait. Only go (into a transaction) when it is a property you really like and it is within your affordability.”
Source : Today - 15 Jan 2009
Wednesday, January 14, 2009
District 01 - Marina Bay Suites
Marina Bay Suites.
![[1.jpg]](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgEMTwrzwuy1S6DiMDxi7VUQs2tIQmaB70_F3d7U0kXxLnKHXOMKvs_80nL9T5wNgPe3VoqOPOLcJ76W3_3IocaDtpCOFWQJ9cpmaUnAs0Ve3jpOZfQsXpQiaB6io_4SAygoV3a969Fg7E/s1600/1.jpg)
The Marina Bay Suites, located at the bayside near One Raffles Quay, will feature 218 (3-Bedroom and 4-Bedroom) apartments and 3 Penthouse units.
Developers: Cheung Kong/Hutchison Whampoa, Hongkong Land and Keppel Land.
Location : Marina Boulevard
District : 01
Tenure : 99-year Leasehold (w.e.f 8 March 2007)
Expected TOP : 31 Aug 2012
Total Units : 221 in one block of 66 storeys
Unit Types:-
Type A 4 Bedroom ~ 55 units (2680 to 2691sqft)
Type B 4 Bedroom ~ 55 units (2045 to 2067sqft)
Type C 3 Bedroom ~ 54 units (1572 to 1604sqft)
Type D 3 Bedroom ~ 54 units (1615 to 1625sqft)
Type P Penthouse ~ 3 units (4715 to 8181sqft)
Nearby Amenities:
Walking distance to CBD- Raffles Place, Garden by The Bay, Singapore Flyer, Bayfront Bridge, Marina Barrage, Marina Bay Sands Integrated Resort, Business Financial Centre, Grand Prix Racing, Esplanade Theatres on The Bay.
Press Releases - 10-October-2007
Marina Bay Suites presents last opportunity to own luxury residences in MBFCStunning 65-storey tower of 223 bay-view apartments at Marina Bay to be launched in early 2008.
The joint venture developers behind the Marina Bay Financial Centre (MBFC) today revealed their plans for the Marina Bay Suites, a 65-storey residential tower slated for launch early next year.
Marina Bay Suites is a joint venture by three of Asia’s most experienced and trusted property developers – Cheung Kong (Holdings)/Hutchison Whampoa, Hongkong Land and Keppel Land.
Mr Kan Kum Wah, Head of Residential Marketing for Marina Bay Suites Pte. Ltd. said; “Marina Bay Suites will be a fitting, even more upscale, sister development to the 428-unit Marina Bay Residences which sold out in just three days in December last year, affirming strong confidence in the MBFC.
The Marina Bay Suites presents the last opportunity to buy luxury residences within this world-class development.”
The Marina Bay Suites will offer just 223 luxuriously-specified three- and four-bedroom apartments ranging from 1,500 sq ft to 2,500 sq ft and featuring private lift lobbies. The typical floor plate has only four apartments, while the solitary single-level penthouse and two duplex penthouses in the complex each boast their own swimming pool.
“The Marina Bay Suites offers a commanding location with a Marina Bay view and anchors one side of the new Central Linear Park which is a landmark feature of Singapore’s ‘new downtown’ under development at Marina Bay,” Mr Kan said.
“With its proximity to such a variety of lifestyle options within the MBFC, Marina Bay Sands, Esplanade Theatres on the Bay, Gardens by the Bay and even Grand Prix racing, the new downtown is taking shape as Singapore’s most glamourous business and entertainment district,” Mr Kan said.
Outdoor and entertaining areas at the podium level of the Marina Bay Suites will offer residents an urban oasis which includes semi-outdoor spa lounges and a 50-metre lap pool, while Sky Lounges located at levels 27 and 46 offer Sky Cabanas, yoga and massage terraces set amid earthy natural materials and water features.
The distinctive design of the Marina Bay Suites reflects the hand of New York-based architects Kohn Pederson Fox (KPF). KPF has meticulously master-planned the S$4billion MBFC development to create the ultimate ‘work, live and play’ environment for 50,000 urbanites expected to work in the precinct following completion of the Marina Bay Financial Centre in 2012.
Following strong interest from buyers last year, when almost 40% of the Marina Bay Residences were sold to international buyers, the joint venture has been showcasing the MBFC and promoting Marina Bay at key regional events such as luxury property shows in Hong Kong, Shanghai and Dubai.
“We are experiencing a keen appetite from investors confident in Singapore and interested in the live-work-play destination of Marina Bay. We anticipate that there will be strong international interest when we commence marketing of Marina Bay Suites early next year,” Mr Kan said.
The Marina Bay Suites, located at the bayside near One Raffles Quay, will feature 218 (3-Bedroom and 4-Bedroom) apartments and 3 Penthouse units.
Developers: Cheung Kong/Hutchison Whampoa, Hongkong Land and Keppel Land.
Location : Marina Boulevard
District : 01
Tenure : 99-year Leasehold (w.e.f 8 March 2007)
Expected TOP : 31 Aug 2012
Total Units : 221 in one block of 66 storeys
Unit Types:-
Type A 4 Bedroom ~ 55 units (2680 to 2691sqft)
Type B 4 Bedroom ~ 55 units (2045 to 2067sqft)
Type C 3 Bedroom ~ 54 units (1572 to 1604sqft)
Type D 3 Bedroom ~ 54 units (1615 to 1625sqft)
Type P Penthouse ~ 3 units (4715 to 8181sqft)
Nearby Amenities:
Walking distance to CBD- Raffles Place, Garden by The Bay, Singapore Flyer, Bayfront Bridge, Marina Barrage, Marina Bay Sands Integrated Resort, Business Financial Centre, Grand Prix Racing, Esplanade Theatres on The Bay.
Press Releases - 10-October-2007
Marina Bay Suites presents last opportunity to own luxury residences in MBFCStunning 65-storey tower of 223 bay-view apartments at Marina Bay to be launched in early 2008.
The joint venture developers behind the Marina Bay Financial Centre (MBFC) today revealed their plans for the Marina Bay Suites, a 65-storey residential tower slated for launch early next year.
Marina Bay Suites is a joint venture by three of Asia’s most experienced and trusted property developers – Cheung Kong (Holdings)/Hutchison Whampoa, Hongkong Land and Keppel Land.
Mr Kan Kum Wah, Head of Residential Marketing for Marina Bay Suites Pte. Ltd. said; “Marina Bay Suites will be a fitting, even more upscale, sister development to the 428-unit Marina Bay Residences which sold out in just three days in December last year, affirming strong confidence in the MBFC.
The Marina Bay Suites presents the last opportunity to buy luxury residences within this world-class development.”
The Marina Bay Suites will offer just 223 luxuriously-specified three- and four-bedroom apartments ranging from 1,500 sq ft to 2,500 sq ft and featuring private lift lobbies. The typical floor plate has only four apartments, while the solitary single-level penthouse and two duplex penthouses in the complex each boast their own swimming pool.
“The Marina Bay Suites offers a commanding location with a Marina Bay view and anchors one side of the new Central Linear Park which is a landmark feature of Singapore’s ‘new downtown’ under development at Marina Bay,” Mr Kan said.
“With its proximity to such a variety of lifestyle options within the MBFC, Marina Bay Sands, Esplanade Theatres on the Bay, Gardens by the Bay and even Grand Prix racing, the new downtown is taking shape as Singapore’s most glamourous business and entertainment district,” Mr Kan said.
Outdoor and entertaining areas at the podium level of the Marina Bay Suites will offer residents an urban oasis which includes semi-outdoor spa lounges and a 50-metre lap pool, while Sky Lounges located at levels 27 and 46 offer Sky Cabanas, yoga and massage terraces set amid earthy natural materials and water features.
The distinctive design of the Marina Bay Suites reflects the hand of New York-based architects Kohn Pederson Fox (KPF). KPF has meticulously master-planned the S$4billion MBFC development to create the ultimate ‘work, live and play’ environment for 50,000 urbanites expected to work in the precinct following completion of the Marina Bay Financial Centre in 2012.
Following strong interest from buyers last year, when almost 40% of the Marina Bay Residences were sold to international buyers, the joint venture has been showcasing the MBFC and promoting Marina Bay at key regional events such as luxury property shows in Hong Kong, Shanghai and Dubai.
“We are experiencing a keen appetite from investors confident in Singapore and interested in the live-work-play destination of Marina Bay. We anticipate that there will be strong international interest when we commence marketing of Marina Bay Suites early next year,” Mr Kan said.
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