Posted by goldenpeace on 28-Feb-2009
The government has lowered the redevelopment tax on non-landed residential property by 15 per cent on average – a more drastic cut than the 6 per cent it made half a year ago.
The biggest reductions affect higher-end properties in prime locations, including Marina Bay, Robertson Quay, River Valley, Orchard Road, Grange/Tanglin, Newton and Holland Road areas.
Some market watchers had been hoping for even deeper reductions, given the weak property market due to the current recession.
But property consultant Chesterton Suntec International said the 15 per cent drop is an accurate reflection of current land valuations.
Chesterton Suntec analyst Colin Tan said regular review of the development charge or DC rate is based on actual transaction values in the previous six months, and not on market sentiment.
He said the cut could help the slumping property market.
“Of course, we are just seeing the beginning of a drop so it will take a lot more, maybe the next DC rate cut, to ensure that it’s profitable now to move forward. Generally, the taxes do not act as an incentive or disincentive, it’s the market. But it lessens the obstacles,” said Mr Tan.
According to CB Richard Ellis, land values are expected to moderate in the course of this year. It said DC rates for non-landed residential use probably fell because of comparatively lower prices for new launches in the residential market in the last six months.
The DC rates for hotel and hospital properties fell by 10 per cent and business zone commercial use properties decreased by 4 per cent.
The development charge is levied when a property is redeveloped into a more valuable project, for example, after an en bloc sale.
The Singapore government adjusts the DC rate every six months to reflect the value of land here. The latest revision will take effect from March 1.
Source : Channel NewsAsia - 27 Feb 2009
Saturday, February 28, 2009
Friday, February 27, 2009
Will it be a Champion?
Posted by goldenpeace on 27-Feb-2009
Mixed views on whether pricing is attractive to buyers
THE first batch of HDB flats for this year has been launched, but do they reflect homebuyers‚ budgets in this downturn? And are their prices an indication of what to expect from other projects later this year?
Champion Court, at the junction of Champions Way and Woodlands Avenue 1, was launched yesterday under the Build-To-Order (BTO) system, where projects are only built when a certain level of demand is reached.
The 815 new flats include the first studio apartments in Woodlands and are priced below their equivalent market prices to ensure affordability, said the Housing and Development Board (HDB).
There are 182 three-room flats priced from $118,000 to $142,000, and 224 four-room flats with prices ranging from $194,000 to $227,000. Five-room flats - of which there are 185 - are from $247,000 to $296,000. The others are smaller studio apartments and three-room units.
Member of Parliament Lim Wee Kiak (Sembawang) who raised the issue of affordable housing in Parliament recently, said Singaporeans could be paying under $100,000 for a three-room flat if they make use of Government grants.
PropNex CEO Mohamed Ismail said he expects the project to be “five times oversubscribed” since prices are up to 40 per cent lower than resale flats in the area.
But Chesterton International‚s head of consultancy and research Colin Tan does not expect response to be good. Besides the less-than-ideal location, prices are not attractive enough for the smaller-sized apartments, he said.
Mr Tan said HDB should reconsider pricing some of its new flats “in far-flung suburban locations such as Woodlands” by about $20,000 to $30,000 lower.
But Dennis Wee Group‚s vice-president Chris Koh expects prices to remain constant since HDB should have “factored in” the long recession and “priced accordingly.”
HDB will launch some 3,000 BTO flats in the first half of this year, mostly in Ponggol.
Out of these, 1,400 will be smaller studio apartments, two- and three-room flats. It will also continue to monitor demand in other towns.
Applications can be submitted online at www.hdb.gov.sg until March 11.
Source : Today - 27 Feb 2009
Mixed views on whether pricing is attractive to buyers
THE first batch of HDB flats for this year has been launched, but do they reflect homebuyers‚ budgets in this downturn? And are their prices an indication of what to expect from other projects later this year?
Champion Court, at the junction of Champions Way and Woodlands Avenue 1, was launched yesterday under the Build-To-Order (BTO) system, where projects are only built when a certain level of demand is reached.
The 815 new flats include the first studio apartments in Woodlands and are priced below their equivalent market prices to ensure affordability, said the Housing and Development Board (HDB).
There are 182 three-room flats priced from $118,000 to $142,000, and 224 four-room flats with prices ranging from $194,000 to $227,000. Five-room flats - of which there are 185 - are from $247,000 to $296,000. The others are smaller studio apartments and three-room units.
Member of Parliament Lim Wee Kiak (Sembawang) who raised the issue of affordable housing in Parliament recently, said Singaporeans could be paying under $100,000 for a three-room flat if they make use of Government grants.
PropNex CEO Mohamed Ismail said he expects the project to be “five times oversubscribed” since prices are up to 40 per cent lower than resale flats in the area.
But Chesterton International‚s head of consultancy and research Colin Tan does not expect response to be good. Besides the less-than-ideal location, prices are not attractive enough for the smaller-sized apartments, he said.
Mr Tan said HDB should reconsider pricing some of its new flats “in far-flung suburban locations such as Woodlands” by about $20,000 to $30,000 lower.
But Dennis Wee Group‚s vice-president Chris Koh expects prices to remain constant since HDB should have “factored in” the long recession and “priced accordingly.”
HDB will launch some 3,000 BTO flats in the first half of this year, mostly in Ponggol.
Out of these, 1,400 will be smaller studio apartments, two- and three-room flats. It will also continue to monitor demand in other towns.
Applications can be submitted online at www.hdb.gov.sg until March 11.
Source : Today - 27 Feb 2009
Those 224 studio flats...
Posted by goldenpeace on 27-February-2009
The new build-to-order (BTO) flats at Champions Court in Woodlands caught their eye, but the young couple decided to stick with their application for a four-room flat at Sengkang even though prices were similar.
Why? Bride-to-be Izyanty Asmary, 23, said she was “not comfortable” with having studio apartments - targetted for senior Singaporeans - in the same residence, and the Woodlands flats appeared to be more cramped.
For the first time, studio apartments, comprising 224 of the 815 units, will be up for sale in Woodlands. The apartments come with elderly-friendly features such as grab bars and non-slip flooring.
Member of Parliament Dr Lim Wee Kiak (Sembawang) pointed out that “different demographics would make the community more interesting. It also encourages community to help one another.”
Families can get a bigger unit, while the older folks live in the studio apartment, he noted, they could help take care of young children.
There are 30 units of 37-sq metre studio apartments priced between $57,000 to $64,000, and 164 units of 47-sq metre apartments priced from $71,000 to $80,000 up for sale.
Source : Today - 27 Feb 2009
The new build-to-order (BTO) flats at Champions Court in Woodlands caught their eye, but the young couple decided to stick with their application for a four-room flat at Sengkang even though prices were similar.
Why? Bride-to-be Izyanty Asmary, 23, said she was “not comfortable” with having studio apartments - targetted for senior Singaporeans - in the same residence, and the Woodlands flats appeared to be more cramped.
For the first time, studio apartments, comprising 224 of the 815 units, will be up for sale in Woodlands. The apartments come with elderly-friendly features such as grab bars and non-slip flooring.
Member of Parliament Dr Lim Wee Kiak (Sembawang) pointed out that “different demographics would make the community more interesting. It also encourages community to help one another.”
Families can get a bigger unit, while the older folks live in the studio apartment, he noted, they could help take care of young children.
There are 30 units of 37-sq metre studio apartments priced between $57,000 to $64,000, and 164 units of 47-sq metre apartments priced from $71,000 to $80,000 up for sale.
Source : Today - 27 Feb 2009
Thursday, February 26, 2009
HDB launching Build-To-Order flats in Woodlands
Posted by goldenpeace on 26-Feb-2009
SINGAPORE: For the first time, the Housing and Development Board (HDB) is launching studio apartments in Woodlands under the Build-To-Order scheme.
Called Champions Court, there will be 224 units of studio apartments, 182 units of 3-room, 224 units of 4-room and 185 units of 5-room flats available.
3-room flats will cost at least S$118,000, while prices of 4-room flats and 5-room flats will start from S$194,000 and S$247,000 respectively.
Champions Court will be located near the Woodlands Regional Centre at the junction of Champions Way and Woodlands Avenue 1.
The studio apartments will be equipped with elderly friendly features such as grab bars and non-slip floors.
Potential buyers can log onto the HDB website for more information.
Source - CNA/so
SINGAPORE: For the first time, the Housing and Development Board (HDB) is launching studio apartments in Woodlands under the Build-To-Order scheme.
Called Champions Court, there will be 224 units of studio apartments, 182 units of 3-room, 224 units of 4-room and 185 units of 5-room flats available.
3-room flats will cost at least S$118,000, while prices of 4-room flats and 5-room flats will start from S$194,000 and S$247,000 respectively.
Champions Court will be located near the Woodlands Regional Centre at the junction of Champions Way and Woodlands Avenue 1.
The studio apartments will be equipped with elderly friendly features such as grab bars and non-slip floors.
Potential buyers can log onto the HDB website for more information.
Source - CNA/so
Wednesday, February 25, 2009
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Floorplans - Helios Residences Penthouse Type P1
Helios Residences
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Type P1 - Roof Terrace
Floorplans - Helios Residences Penthouse Type P2
Helios Residences
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Type P2 Lower Level
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Type P2 - Upper Level
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District 09 - Belle Vue Residences
Belle Vue Residences
Artist Impression - Belle Vue Residences Day
Artist Impression - Belle Vue Residences Night
Belle Vue Residences is designed to parallel nature's exquisite simplicity. Its' organically-shaped unit layout, offers a new living arrangement and horizontal spatial experience. The branching pattern creates more wall surfaces, making possible for more windows, giving each apartment a unique set of views and allowing residents to enjoy an abundance of natural light and better ventilation.
Belle Vue Residences is also as much about transcending trends, forsaking conventional ideas and creative innovative living spaces. The landscaping is an active interplay of nature and architecture.
Located on high sprawling ground of almost 250,000 square feet, all apartments are imaginatively configured and set in a sensitively-cultivated environment of lush landscapes, pathways, tropical gardens, water features and a host of recreational facilities creating Singapore's most livable urban oasis.
Belle Vue Residences is located in a neighbourhood befitting its lush, harmonious setting. The Oxley-Orchard area is noted for its serenity and family–friendly provisions, yet its city-centre location promises maximum convenience.
Artist Impression - Belle Vue Residences Day
Artist Impression - Belle Vue Residences NightBelle Vue Residences is designed to parallel nature's exquisite simplicity. Its' organically-shaped unit layout, offers a new living arrangement and horizontal spatial experience. The branching pattern creates more wall surfaces, making possible for more windows, giving each apartment a unique set of views and allowing residents to enjoy an abundance of natural light and better ventilation.
Belle Vue Residences is also as much about transcending trends, forsaking conventional ideas and creative innovative living spaces. The landscaping is an active interplay of nature and architecture.
Located on high sprawling ground of almost 250,000 square feet, all apartments are imaginatively configured and set in a sensitively-cultivated environment of lush landscapes, pathways, tropical gardens, water features and a host of recreational facilities creating Singapore's most livable urban oasis.
Belle Vue Residences is located in a neighbourhood befitting its lush, harmonious setting. The Oxley-Orchard area is noted for its serenity and family–friendly provisions, yet its city-centre location promises maximum convenience.
Developer : Wingtai
Location : 15 - 33 Oxley Walk (former BelleVue Condominium Site with a little history)
Tenure : Freehold
Architect : Toyo Ito
Type : Lowrise 5-Storey in 9 Blocks
Total Units : 176
Tuesday, February 24, 2009
Developers' home sales top 1,000 units in Feb
Posted by goldenpeace on 24-Feb-2009
Developers have achieved an 18-month high in private homes sold in a month, with the 1,000-unit mark having already been breached so far in February.
Most of the developers who are prepared to pare their price expectations to more affordable levels continue to be rewarded. A near 10 per cent price chop was all it took for GuocoLand to sell off almost 90 per cent of the 182 units at The Quartz condo in Buangkok relaunched last week.
The Singapore-listed property arm of Malaysian tycoon Quek Leng Chan has found buyers for about 160 units since last Tuesday’s price cut. This means the 625-unit project is now left with only around 20 units, compared with 182 units prior to the relaunch.
GuocoLand trimmed the 99-year-leasehold project’s average price to $595 per square foot (psf), compared with $650 psf during the height of the market in 2007.
Besides the more competitive pricing, market watchers attributed the successful outcome to the fact that The Quartz will be ready for occupation soon. Temporary Occupation Permit (TOP) for the condo is expected in a couple of months.
The bulk of buyers are believed to have bought for their own occupation. About 98 per cent of buyers are Singaporeans, 80 per cent of whom live in the vicinity, mainly with HDB addresses, a GuocoLand spokeswoman said.
‘They like the design, layout and location of the development, which is near Buangkok MRT Station and also accessible by Kallang-Paya Lebar Expressway,’ she added.
The bulk of the 182 units were three-bedroom apartments. On average, a typical three-bedder of slightly under 1,100 sq ft costs around $650,000, BT understands.
Over at Jurong Lake District, Frasers Centrepoint found buyers for another 35 units for its Caspian condo over the weekend, raising total sales in the 99-year-leasehold project to 515 units.
The overall average price achieved is just over $600 psf, reflecting the sale of better-facing units in the past week. About 32 per cent of Caspian’s buyers have opted for an interest absorption scheme; they will pay 3 per cent more in exchange for not having to foot beyond the 20 per cent initial payment until the project receives TOP. On average, three-bedroom units at Caspian cost $700,000 to $750,000.
At River Valley Road, Fortune Development found buyers for another six units at RV Suites over the weekend. Half the 96 units in the freehold project have been sold. The project comprises mostly units of 500-550 sq ft, and the average price is about $1,300 psf. East Coast Properties sold another four units over the weekend for its D’Chateau @ Shelford, which is priced at $1,000-$1,100 psf on average.
Market watchers note that over at Livia in Pasir Ris, some of the 30 units released at $620 psf on average on Valentine’s Day weekend are still available. Units are relatively large (a typical three-bedder is about 1,259 sq ft), resulting in a bigger unit price quantum of at least $750,000 for a three-bedroom unit. Potential buyers may also be waiting for new projects to be launched in the area before deciding on their purchase.
Seasoned property consultants say that for mass-market projects to move today, they should be priced at around $600 psf at most, and the unit price should not exceed $700,000, in order for them to be affordable to HDB upgraders.
Source : Business Times - 24 Feb 2009
Developers have achieved an 18-month high in private homes sold in a month, with the 1,000-unit mark having already been breached so far in February.
Most of the developers who are prepared to pare their price expectations to more affordable levels continue to be rewarded. A near 10 per cent price chop was all it took for GuocoLand to sell off almost 90 per cent of the 182 units at The Quartz condo in Buangkok relaunched last week.
The Singapore-listed property arm of Malaysian tycoon Quek Leng Chan has found buyers for about 160 units since last Tuesday’s price cut. This means the 625-unit project is now left with only around 20 units, compared with 182 units prior to the relaunch.
GuocoLand trimmed the 99-year-leasehold project’s average price to $595 per square foot (psf), compared with $650 psf during the height of the market in 2007.
Besides the more competitive pricing, market watchers attributed the successful outcome to the fact that The Quartz will be ready for occupation soon. Temporary Occupation Permit (TOP) for the condo is expected in a couple of months.
The bulk of buyers are believed to have bought for their own occupation. About 98 per cent of buyers are Singaporeans, 80 per cent of whom live in the vicinity, mainly with HDB addresses, a GuocoLand spokeswoman said.
‘They like the design, layout and location of the development, which is near Buangkok MRT Station and also accessible by Kallang-Paya Lebar Expressway,’ she added.
The bulk of the 182 units were three-bedroom apartments. On average, a typical three-bedder of slightly under 1,100 sq ft costs around $650,000, BT understands.
Over at Jurong Lake District, Frasers Centrepoint found buyers for another 35 units for its Caspian condo over the weekend, raising total sales in the 99-year-leasehold project to 515 units.
The overall average price achieved is just over $600 psf, reflecting the sale of better-facing units in the past week. About 32 per cent of Caspian’s buyers have opted for an interest absorption scheme; they will pay 3 per cent more in exchange for not having to foot beyond the 20 per cent initial payment until the project receives TOP. On average, three-bedroom units at Caspian cost $700,000 to $750,000.
At River Valley Road, Fortune Development found buyers for another six units at RV Suites over the weekend. Half the 96 units in the freehold project have been sold. The project comprises mostly units of 500-550 sq ft, and the average price is about $1,300 psf. East Coast Properties sold another four units over the weekend for its D’Chateau @ Shelford, which is priced at $1,000-$1,100 psf on average.
Market watchers note that over at Livia in Pasir Ris, some of the 30 units released at $620 psf on average on Valentine’s Day weekend are still available. Units are relatively large (a typical three-bedder is about 1,259 sq ft), resulting in a bigger unit price quantum of at least $750,000 for a three-bedroom unit. Potential buyers may also be waiting for new projects to be launched in the area before deciding on their purchase.
Seasoned property consultants say that for mass-market projects to move today, they should be priced at around $600 psf at most, and the unit price should not exceed $700,000, in order for them to be affordable to HDB upgraders.
Source : Business Times - 24 Feb 2009
Saturday, February 21, 2009
Time for professional body to regulate real estate industry
Posted by goldenpeace on 21-Feb-2009
TUESDAY’S report, ‘The murky world of real estate practices’, encapsulates the morass in which the real estate industry finds itself in. Sad to say, all is not well in the industry and relief is not yet in sight.
As the Institute of Estate Agents (IEA) has no power to keep errant agents out of the industry, it is akin to a toothless tiger. Currently, estate agents handle both HDB and private property transactions and many buyers and sellers depend on them for their services.
The complaints committee of the Singapore Medical Council handles all complaints against doctors and this is governed by Section 40 of the Medical Registration Act 1997. Disgruntled patients have recourse to voice their grievances against doctors who indulge in any malpractice. Why is there no recourse for real estate transactions that have gone awry?
When an owner appoints an estate agent to market his property, a relationship of agent-principal is established. This is called power of attorney. Such a relationship plays an important role in the real estate business. Even if the agent is fired or he quits, the agreement does not automatically end. The agent can still have lingering apparent authority since various third parties may remain unaware of the termination of the relationship. To ensure that the agent does not act beyond his authority at the end of the relationship, the principal must be sure to give notice (via the newspapers) that the individual is no longer his agent.
In California, its 400,000 estate agents (called realtors) are governed by a code of ethics. They have to pass a course on the legal aspects of real estate, general accounting, business law, escrow (a document kept in the custody of a third party), mortgage loan brokering and computer application in real estate.
A realtor is obliged to safeguard his principal’s lawful confidences and secrets. Therefore, a real estate broker must keep confidential any information that may weaken a principal’s bargaining position. This duty precludes a broker who represents a seller from disclosing to a buyer that the seller can, or must sell a property (under pressure by banks) below the listed price. Conversely, a broker who represents a buyer should not disclose to a seller that the buyer will be willing to pay more than what has been offered for a property.
Since 1924, the Real Estate Institute of Australia has been the national professional association of the real estate industry in Australia. The institute is a politically non-aligned organisation that provides advice to the federal government. It has a stringent code which specifies, inter alia, that members must maintain a working knowledge and act in accordance with the relevant laws governing the real estate profession, act in the best interests of their clients and in accordance with their instructions, except where to do so is unlawful or contrary to good agency practice.
They must treat fellow real estate practitioners with respect and professional integrity and should not disclose confidential information obtained while acting on behalf of a client or dealing with a customer, except where required by law to disclose.
Perhaps Singapore’s Parliament should introduce legislation to set up a professional body like the Australian institute which has powers to discipline its members and uphold the professional integrity and reputation of such an august body.
Heng Cho Choon
Source : Straits Times - 21 Feb 2009
TUESDAY’S report, ‘The murky world of real estate practices’, encapsulates the morass in which the real estate industry finds itself in. Sad to say, all is not well in the industry and relief is not yet in sight.
As the Institute of Estate Agents (IEA) has no power to keep errant agents out of the industry, it is akin to a toothless tiger. Currently, estate agents handle both HDB and private property transactions and many buyers and sellers depend on them for their services.
The complaints committee of the Singapore Medical Council handles all complaints against doctors and this is governed by Section 40 of the Medical Registration Act 1997. Disgruntled patients have recourse to voice their grievances against doctors who indulge in any malpractice. Why is there no recourse for real estate transactions that have gone awry?
When an owner appoints an estate agent to market his property, a relationship of agent-principal is established. This is called power of attorney. Such a relationship plays an important role in the real estate business. Even if the agent is fired or he quits, the agreement does not automatically end. The agent can still have lingering apparent authority since various third parties may remain unaware of the termination of the relationship. To ensure that the agent does not act beyond his authority at the end of the relationship, the principal must be sure to give notice (via the newspapers) that the individual is no longer his agent.
In California, its 400,000 estate agents (called realtors) are governed by a code of ethics. They have to pass a course on the legal aspects of real estate, general accounting, business law, escrow (a document kept in the custody of a third party), mortgage loan brokering and computer application in real estate.
A realtor is obliged to safeguard his principal’s lawful confidences and secrets. Therefore, a real estate broker must keep confidential any information that may weaken a principal’s bargaining position. This duty precludes a broker who represents a seller from disclosing to a buyer that the seller can, or must sell a property (under pressure by banks) below the listed price. Conversely, a broker who represents a buyer should not disclose to a seller that the buyer will be willing to pay more than what has been offered for a property.
Since 1924, the Real Estate Institute of Australia has been the national professional association of the real estate industry in Australia. The institute is a politically non-aligned organisation that provides advice to the federal government. It has a stringent code which specifies, inter alia, that members must maintain a working knowledge and act in accordance with the relevant laws governing the real estate profession, act in the best interests of their clients and in accordance with their instructions, except where to do so is unlawful or contrary to good agency practice.
They must treat fellow real estate practitioners with respect and professional integrity and should not disclose confidential information obtained while acting on behalf of a client or dealing with a customer, except where required by law to disclose.
Perhaps Singapore’s Parliament should introduce legislation to set up a professional body like the Australian institute which has powers to discipline its members and uphold the professional integrity and reputation of such an august body.
Heng Cho Choon
Source : Straits Times - 21 Feb 2009
Thursday, February 19, 2009
Property buyers hit a bump on sliding valuations
Posted by goldenpeace on 19-Feb-2009
The rapid slide in property prices has resulted in some banks slashing the loan amount to borrowers just before it is disbursed. This has put property buyers in a quandary, forcing them to either top up the difference or pay a penalty for backing out of the loan offered.
And valuers have become the latest ‘villains’ as borrowers find it harder to get home loans to match their purchase prices. ‘I don’t tell people I’m a valuer,’ sighed Lydia Sng, Knight Frank executive director.
Bankers agree that the time lag between the loan offer and disbursement can result in a final smaller loan. The loan offer, while based on an indicative valuation, contains a clause that it is subject to a formal valuation.
But borrowers who want to cancel the loan are hit with a punitive 1-1.5 per cent cancellation fee. Also, by this time, it would be hard to back out because they would have already committed to the purchase of the property.
The wobbly market is not helping. A Citigroup report last month said that, in the high-end segment, properties have seen price corrections of about 35 per cent from a year ago and they could fall by another 30-40 per cent this year.
Ms Sng said the problem is with the valuation process. ‘They’ll give us a call with the address, we’ll give a range as we’ve not seen the property. It’s a bit like calling the doctor and telling him your symptoms and asking for a diagnosis,’ she said.
Gregory Chan, OCBC Bank head of secured lending, said: ‘It is possible to receive a lower formal valuation on a property compared to the initial indicative valuation. To mitigate this, as well as to ensure valuations are realistic, OCBC Bank does not rely solely on a single valuer for indicative valuations,’ said Mr Chan.
A DBS spokeswoman said the indicative value will be based on the information declared by the customer in the home loan application form.
‘In the event that the formal valuation is lower due to the wrong details provided on the property, the bank will have to take the lower of either the purchase price or valuation as per regulatory stipulations. As such, the buyers will be required to top up the difference between the purchase price and valuation in cash. If the borrowers decide to abort the purchase and cancel the loan at any point after loan acceptance, a cancellation fee will apply,’ said the DBS spokeswoman.
‘We monitor our panel of valuers regularly to ensure that valuations are always fair and based on current market values,’ said a United Overseas Bank (UOB) spokeswoman.
Jerry Tan, managing director of Jerrytan Residential Pte Ltd said his beef is that valuers sometimes look to non-comparable transactions to determine the price. But it could be comparing a five-star development to a three-star one, he said.
DTZ executive director Poh Kwee Eng said that if they were valuing a unit and there had not been a transaction in the same building for some time, they would look nearby, in similar developments. If the five-star unit was priced 20 per cent higher during last year’s red hot bull market compared to a three-star one, similar premiums would still hold.
‘Say, last year, your unit was sold at $1,000 per square foot and next door a unit went for 800 psf, there was a 20 per cent difference. So if the next-door unit is now selling at $500 psf, I would adjust your unit by 20 per cent upwards,’ explained Ms Poh.
Some banks are said to be staying clear of certain developments where there is a wide range of valuations such as The Sail with 1,111 units and Sentosa Cove.
UOB head of loans Kevin Lam declined to comment on specific projects but offered general observations about mortgages. ‘We have been conservative all along. With the recent further fall in prices, we have become even more careful,’ he said.
Knight Frank’s director of research and consultancy Nicholas Mak said valuations vary widely among the 1,111 units at the 63-storey The Sail. As for Sentosa Cove, ‘newer developments have better views or better designs. Some earlier projects didn’t have sea views,’ he said.
Some ground-floor condos sited between the landed homes with the sea front were not very different to condos on the mainland, said Mr Mak. ‘The value of a sea view alone is difficult to pin down,’ he said.
Credo Real Estate managing director Karamjit Singh said that The Sail and Sentosa Cove, as new markets which targeted foreigners, provided their own challenges. ‘The Sail was part of a new market that emerged as part of the development for the new downtown including the integrated resorts,’ said Mr Singh.
Source : Business Times - 19 Feb 2009
He said it takes time for prices to find their equilibrium, and they have not stabilised yet. ‘It’s a challenge everyone faces, including banks.’
The rapid slide in property prices has resulted in some banks slashing the loan amount to borrowers just before it is disbursed. This has put property buyers in a quandary, forcing them to either top up the difference or pay a penalty for backing out of the loan offered.
And valuers have become the latest ‘villains’ as borrowers find it harder to get home loans to match their purchase prices. ‘I don’t tell people I’m a valuer,’ sighed Lydia Sng, Knight Frank executive director.
Bankers agree that the time lag between the loan offer and disbursement can result in a final smaller loan. The loan offer, while based on an indicative valuation, contains a clause that it is subject to a formal valuation.
But borrowers who want to cancel the loan are hit with a punitive 1-1.5 per cent cancellation fee. Also, by this time, it would be hard to back out because they would have already committed to the purchase of the property.
The wobbly market is not helping. A Citigroup report last month said that, in the high-end segment, properties have seen price corrections of about 35 per cent from a year ago and they could fall by another 30-40 per cent this year.
Ms Sng said the problem is with the valuation process. ‘They’ll give us a call with the address, we’ll give a range as we’ve not seen the property. It’s a bit like calling the doctor and telling him your symptoms and asking for a diagnosis,’ she said.
Gregory Chan, OCBC Bank head of secured lending, said: ‘It is possible to receive a lower formal valuation on a property compared to the initial indicative valuation. To mitigate this, as well as to ensure valuations are realistic, OCBC Bank does not rely solely on a single valuer for indicative valuations,’ said Mr Chan.
A DBS spokeswoman said the indicative value will be based on the information declared by the customer in the home loan application form.
‘In the event that the formal valuation is lower due to the wrong details provided on the property, the bank will have to take the lower of either the purchase price or valuation as per regulatory stipulations. As such, the buyers will be required to top up the difference between the purchase price and valuation in cash. If the borrowers decide to abort the purchase and cancel the loan at any point after loan acceptance, a cancellation fee will apply,’ said the DBS spokeswoman.
‘We monitor our panel of valuers regularly to ensure that valuations are always fair and based on current market values,’ said a United Overseas Bank (UOB) spokeswoman.
Jerry Tan, managing director of Jerrytan Residential Pte Ltd said his beef is that valuers sometimes look to non-comparable transactions to determine the price. But it could be comparing a five-star development to a three-star one, he said.
DTZ executive director Poh Kwee Eng said that if they were valuing a unit and there had not been a transaction in the same building for some time, they would look nearby, in similar developments. If the five-star unit was priced 20 per cent higher during last year’s red hot bull market compared to a three-star one, similar premiums would still hold.
‘Say, last year, your unit was sold at $1,000 per square foot and next door a unit went for 800 psf, there was a 20 per cent difference. So if the next-door unit is now selling at $500 psf, I would adjust your unit by 20 per cent upwards,’ explained Ms Poh.
Some banks are said to be staying clear of certain developments where there is a wide range of valuations such as The Sail with 1,111 units and Sentosa Cove.
UOB head of loans Kevin Lam declined to comment on specific projects but offered general observations about mortgages. ‘We have been conservative all along. With the recent further fall in prices, we have become even more careful,’ he said.
Knight Frank’s director of research and consultancy Nicholas Mak said valuations vary widely among the 1,111 units at the 63-storey The Sail. As for Sentosa Cove, ‘newer developments have better views or better designs. Some earlier projects didn’t have sea views,’ he said.
Some ground-floor condos sited between the landed homes with the sea front were not very different to condos on the mainland, said Mr Mak. ‘The value of a sea view alone is difficult to pin down,’ he said.
Credo Real Estate managing director Karamjit Singh said that The Sail and Sentosa Cove, as new markets which targeted foreigners, provided their own challenges. ‘The Sail was part of a new market that emerged as part of the development for the new downtown including the integrated resorts,’ said Mr Singh.
Source : Business Times - 19 Feb 2009
He said it takes time for prices to find their equilibrium, and they have not stabilised yet. ‘It’s a challenge everyone faces, including banks.’
First-time flat buyers get more aid
Posted by goldenpeace on 19-Feb-2009
FINANCE assistant Ang Li Shan, 27, and her fiance Alex Chan, 35, have enjoyed a double dollop of good news in their quest to buy a flat.
Last month, before the Budget, they asked the Housing Board about buying a three-room resale flat. They were thrilled to learn that if they bought a flat near Ms Ang’s parents’, they would get a $40,000 HDB grant.
Now with the Budget comes more good news. As first-time home buyers with a combined income of less than $5,000, they will get an extra grant of $10,000. The earlier $4,000 income ceiling had ruled them out.
‘The raising of the income ceiling is great news,’ said Ms Ang. ‘Given the uncertain times, we want to keep our loans as low as possible.’
WHAT’S NEW IN THIS BUDGET
~ For first-timers buyers of HDB flats, there will be tweaks to the Additional CPF Housing Grant (AHG), with the maximum amount now raised by $10,000. Buyers must be continuously employed for at least a year instead of two. The income ceiling will be raised to $5,000 a month.~ Home owners facing financial problems can also defer monthly HDB loan repayments for up to six months and reduce the monthly repayment amount.~ A new interim rental housing scheme will enable home owners to sell their HDB flats and buy new, smaller flats. While these are being built, they can move into rental flats priced below the market rate.~ For new home owners, the Government will lift the supply of studio apartments, two- and three-room flats to add to 4,800 such units now available.~ From next month, older Singaporeans can benefit from a Lease Buyback Scheme which will allow those in three-room or smaller flats to sell the tail end of their lease back to HDB and still stay in their flats.
Source : Straits Times - 18 Feb 2009
FINANCE assistant Ang Li Shan, 27, and her fiance Alex Chan, 35, have enjoyed a double dollop of good news in their quest to buy a flat.
Last month, before the Budget, they asked the Housing Board about buying a three-room resale flat. They were thrilled to learn that if they bought a flat near Ms Ang’s parents’, they would get a $40,000 HDB grant.
Now with the Budget comes more good news. As first-time home buyers with a combined income of less than $5,000, they will get an extra grant of $10,000. The earlier $4,000 income ceiling had ruled them out.
‘The raising of the income ceiling is great news,’ said Ms Ang. ‘Given the uncertain times, we want to keep our loans as low as possible.’
WHAT’S NEW IN THIS BUDGET
~ For first-timers buyers of HDB flats, there will be tweaks to the Additional CPF Housing Grant (AHG), with the maximum amount now raised by $10,000. Buyers must be continuously employed for at least a year instead of two. The income ceiling will be raised to $5,000 a month.~ Home owners facing financial problems can also defer monthly HDB loan repayments for up to six months and reduce the monthly repayment amount.~ A new interim rental housing scheme will enable home owners to sell their HDB flats and buy new, smaller flats. While these are being built, they can move into rental flats priced below the market rate.~ For new home owners, the Government will lift the supply of studio apartments, two- and three-room flats to add to 4,800 such units now available.~ From next month, older Singaporeans can benefit from a Lease Buyback Scheme which will allow those in three-room or smaller flats to sell the tail end of their lease back to HDB and still stay in their flats.
Source : Straits Times - 18 Feb 2009
Wednesday, February 18, 2009
Mid-tier glows, luxe fizzles out
Posted bygoldenpeace on 18-Feb-2009
A bad month for home sales could be followed by upturn
JANUARY was a ghastly month for the private home market. Sales hit a two-year low, as the prime downtown areas saw zero launches and just about half of all units launched that month ended up finding buyers, according to official statistics released yesterday.
But even though the overall market has kicked off 2009 on a whimper, the mass-market segment may still hold up in the months including February.
According to the Urban Redevelopment Authority (URA), 107 private residential units were sold last month out of a total of 204 units launched by developers. This sale number is the lowest recorded in the last two years, said PropNex, a real estate agency.
And for the first time, there were no units launched in the Core Central Region, which comprises districts 9, 10 and 11 as well as Marina Bay and Sentosa, said Knight Frank consultancy and research director Nicholas Mak.
“This is unsurprising given that present market conditions have prompted a wait-and-see attitude, and thus resulted in the primary market activity for this sector coming to a near-halt,” said Mr Mak.
It was in the non-prime districts that demand was relatively rosy. Mid-tier and mass-market projects saw their January take-ups rise 50 and 30 per cent respectively from December, Mr Mak said.
“Close to 90 per cent of all the transactions that took place were at below $1,000 psf,” noted PropNex chief executive Mohamed Ismail. “This goes to show that there are still buyers for projects in the outer areas .. as long as the quantum value is reasonable, probably not exceeding the $800,000 mark.”
Analysts expect pent-up demand for mid-tier projects to pick up from this month,particularly from HDB upgraders as the resale market for public housing is still healthy.
Two developments have already seen good take-up. Alexis near Queenstown MRT was launched last Thursday and within three days, sold all of its 293 units at an average price of $850 to $1,150 psf. Over in Jurong West, the Caspian condominium has sold 470 out of 712 units at an average of $600 psf.
This means that the sales volume for this month is likely to reach 1,000 units if developers continue to offer the “right product at the right price”, said Colliers International’s research and advisory director, Tay Huey Ying. That would be “a level not seen since August 2007 when developers sold some 1,723 new units”, she said.
“More developers may be encouraged to ride on this buying wave and launch their projects in the second half of the month,”Ms Tay added.
Pricing, however, will be an influential factor. Jones Lang LaSalle’s research head in South-east Asia, Dr Chua Yang Liang, said projects that enjoyed stronger demand in January could have been given a boost by the easing of median prices.
For example, Aristo @ Amber in the Katong area sold at $990 psf last month - down 1.2 per cent from $1,002 in December. Nova 88's median pricing also softened 4.2 per cent from $988 to $947 psf. Both enjoyed good sales. At The Aristo @ Amber, all 10 units launched last month sold out and another four unsold units from previous months were also taken up, while Nova 88 in the Balestier area sold 16 units out of the 40 units launched.
“There is no doubt that there is an economic downturn but despite this, projects like Caspian and Alexis are faring well in the subdued market, showing that there is cash out there,” said Mr Donald Han, managing director of consultancy Cushman and Wakefield.
Source : Today - 17 Feb 2009
A bad month for home sales could be followed by upturn
JANUARY was a ghastly month for the private home market. Sales hit a two-year low, as the prime downtown areas saw zero launches and just about half of all units launched that month ended up finding buyers, according to official statistics released yesterday.
But even though the overall market has kicked off 2009 on a whimper, the mass-market segment may still hold up in the months including February.
According to the Urban Redevelopment Authority (URA), 107 private residential units were sold last month out of a total of 204 units launched by developers. This sale number is the lowest recorded in the last two years, said PropNex, a real estate agency.
And for the first time, there were no units launched in the Core Central Region, which comprises districts 9, 10 and 11 as well as Marina Bay and Sentosa, said Knight Frank consultancy and research director Nicholas Mak.
“This is unsurprising given that present market conditions have prompted a wait-and-see attitude, and thus resulted in the primary market activity for this sector coming to a near-halt,” said Mr Mak.
It was in the non-prime districts that demand was relatively rosy. Mid-tier and mass-market projects saw their January take-ups rise 50 and 30 per cent respectively from December, Mr Mak said.
“Close to 90 per cent of all the transactions that took place were at below $1,000 psf,” noted PropNex chief executive Mohamed Ismail. “This goes to show that there are still buyers for projects in the outer areas .. as long as the quantum value is reasonable, probably not exceeding the $800,000 mark.”
Analysts expect pent-up demand for mid-tier projects to pick up from this month,particularly from HDB upgraders as the resale market for public housing is still healthy.
Two developments have already seen good take-up. Alexis near Queenstown MRT was launched last Thursday and within three days, sold all of its 293 units at an average price of $850 to $1,150 psf. Over in Jurong West, the Caspian condominium has sold 470 out of 712 units at an average of $600 psf.
This means that the sales volume for this month is likely to reach 1,000 units if developers continue to offer the “right product at the right price”, said Colliers International’s research and advisory director, Tay Huey Ying. That would be “a level not seen since August 2007 when developers sold some 1,723 new units”, she said.
“More developers may be encouraged to ride on this buying wave and launch their projects in the second half of the month,”Ms Tay added.
Pricing, however, will be an influential factor. Jones Lang LaSalle’s research head in South-east Asia, Dr Chua Yang Liang, said projects that enjoyed stronger demand in January could have been given a boost by the easing of median prices.
For example, Aristo @ Amber in the Katong area sold at $990 psf last month - down 1.2 per cent from $1,002 in December. Nova 88's median pricing also softened 4.2 per cent from $988 to $947 psf. Both enjoyed good sales. At The Aristo @ Amber, all 10 units launched last month sold out and another four unsold units from previous months were also taken up, while Nova 88 in the Balestier area sold 16 units out of the 40 units launched.
“There is no doubt that there is an economic downturn but despite this, projects like Caspian and Alexis are faring well in the subdued market, showing that there is cash out there,” said Mr Donald Han, managing director of consultancy Cushman and Wakefield.
Source : Today - 17 Feb 2009
Tuesday, February 17, 2009
Property players look beyond black January
Posted by goldenpeace on 17-Feb-2009
As they say, it is always darkest before the dawn. So it may be with the 107 private homes that developers sold last month.
The number is the lowest since the government started making available monthly home sales data in June 2007, and could mark the nadir in sales volume, property industry players reckon.
House-hunting season has just begun for the year, and buyers are expected to scoop up units in projects with appealing locations, as developers continue to price projects attractively, especially in the mass-market segment. Interest absorption schemes being offered by developers will help ease home purchases in the months to come, property consultants say.
In the first two weeks of this month alone, developers are estimated to have sold around 800 to 850 private homes, mostly from the newly launched Caspian and Alexis condos; even assuming there are no other major new launches for the rest of February, the full month’s tally is expected to reach around 1,000 units. This would be the highest monthly sales figure since August 2007, notes Colliers International director Tay Huey Ying.
Home buyers can expect more offerings soon. UOL Group is said to be readying for launch next month its Double Bay condo in Simei; Far East Organization and Frasers Centrepoint, too, are expected to release a new batch of units at Waterfront Waves in Bedok in March. The latest units, which will mostly have pool views, are expected to be priced in the low-$600 per square foot (psf) range and be more appealing price-wise than the average $750 psf for reservoir-facing units released last year.
The number of 204 private homes that developers launched last month was higher than the December 2008 figure of 157 units.
‘Going forward, there’ll be periodic bursts of launch activities as there would be some buyers willing to commit to a purchase if they believe the price is affordable,’ says Knight Frank director Nicholas Mak.
DTZ senior director (research) Chua Chor Hoon predicts developers will launch 5,500 to 6,500 private homes this year, mainly in the mass-market segment. Primary market home sales could come in at about 5,000 to 6,000 units - higher than last year’s 4,264 units.
DTZ forecasts that prices in the mass-market segment could slip about 10-15 per cent this year, after a 10.5 per cent fall last year. It is predicting bigger price drops of 15 to 20 per cent for the prime districts and about 30 per cent in the luxury segment this year.
Colliers’ Ms Tay says: ‘Pent-up demand is expected to surface in the coming months, albeit buyers’ cautious stance amid the grim economic outlook will contain demand to properties worth below $800,000 as evidenced by the good take-up for the 712-unit Caspian (in Jurong Lake District) and the 293-unit Alexis at Alexandra Road.’
Frasers Centrepoint Homes chief operating officer Cheang Kok Kheong, who estimates developers could sell 5,000-odd private homes this year, says: ‘The three key factors that will affect home sales in 2009 will be interest rates on housing loans, jobs and pricing.’
Knight Frank executive director Peter Ow says there’s probably more leeway for developers to price new projects attractively than to chop prices of a project already on the market as they will face pressure from earlier buyers
In any case, chopping prices is not always a cut-and-dry affair for a developer, as a property consultant points out: ‘It’s a delicate balance. If you cut prices just a little, people may not buy; but if you cut too much, you may frighten off potential buyers.’
Urban Redevelopment Authority’s data yesterday on developers’ launches and sales showed that overall median prices for most private residential projects continued to ease in January over the preceding month ‘as developers were more realistic in their pricing in the hope of maintaining demand’, according to Jones Lang LaSalle’s head of research (SE Asia) Chua Yang Liang. For example, the median price for The Aristo @ Amber eased 1.2 per cent month on month to $990 psf in January. Nova 88 in the Balestier area too saw its median price soften 4.2 per cent to $947 psf, while Rosewood Suites in Woodlands recorded a 16.7 per cent contraction in median price to $545 psf in January.
‘This analysis doesn’t factor in price differentiation as a result of differences in the unit’s orientation, floor level, size, etc,’ Dr Chua adds.
Property consultants were not surprised by January’s weak homes sales, attributing it to the Chinese New Year festivities and potential buyers being further drawn to the sidelines with their eyes glued to the Singapore Budget announcement.
Only 13 units were sold in the Core Central Region last month; Rest of Central Region and Outside Central Region had similar shares, at 49 and 45 units respectively.
Source : Business Times - 17 Feb 2009
As they say, it is always darkest before the dawn. So it may be with the 107 private homes that developers sold last month.
The number is the lowest since the government started making available monthly home sales data in June 2007, and could mark the nadir in sales volume, property industry players reckon.
House-hunting season has just begun for the year, and buyers are expected to scoop up units in projects with appealing locations, as developers continue to price projects attractively, especially in the mass-market segment. Interest absorption schemes being offered by developers will help ease home purchases in the months to come, property consultants say.
In the first two weeks of this month alone, developers are estimated to have sold around 800 to 850 private homes, mostly from the newly launched Caspian and Alexis condos; even assuming there are no other major new launches for the rest of February, the full month’s tally is expected to reach around 1,000 units. This would be the highest monthly sales figure since August 2007, notes Colliers International director Tay Huey Ying.
Home buyers can expect more offerings soon. UOL Group is said to be readying for launch next month its Double Bay condo in Simei; Far East Organization and Frasers Centrepoint, too, are expected to release a new batch of units at Waterfront Waves in Bedok in March. The latest units, which will mostly have pool views, are expected to be priced in the low-$600 per square foot (psf) range and be more appealing price-wise than the average $750 psf for reservoir-facing units released last year.
The number of 204 private homes that developers launched last month was higher than the December 2008 figure of 157 units.
‘Going forward, there’ll be periodic bursts of launch activities as there would be some buyers willing to commit to a purchase if they believe the price is affordable,’ says Knight Frank director Nicholas Mak.
DTZ senior director (research) Chua Chor Hoon predicts developers will launch 5,500 to 6,500 private homes this year, mainly in the mass-market segment. Primary market home sales could come in at about 5,000 to 6,000 units - higher than last year’s 4,264 units.
DTZ forecasts that prices in the mass-market segment could slip about 10-15 per cent this year, after a 10.5 per cent fall last year. It is predicting bigger price drops of 15 to 20 per cent for the prime districts and about 30 per cent in the luxury segment this year.
Colliers’ Ms Tay says: ‘Pent-up demand is expected to surface in the coming months, albeit buyers’ cautious stance amid the grim economic outlook will contain demand to properties worth below $800,000 as evidenced by the good take-up for the 712-unit Caspian (in Jurong Lake District) and the 293-unit Alexis at Alexandra Road.’
Frasers Centrepoint Homes chief operating officer Cheang Kok Kheong, who estimates developers could sell 5,000-odd private homes this year, says: ‘The three key factors that will affect home sales in 2009 will be interest rates on housing loans, jobs and pricing.’
Knight Frank executive director Peter Ow says there’s probably more leeway for developers to price new projects attractively than to chop prices of a project already on the market as they will face pressure from earlier buyers
In any case, chopping prices is not always a cut-and-dry affair for a developer, as a property consultant points out: ‘It’s a delicate balance. If you cut prices just a little, people may not buy; but if you cut too much, you may frighten off potential buyers.’
Urban Redevelopment Authority’s data yesterday on developers’ launches and sales showed that overall median prices for most private residential projects continued to ease in January over the preceding month ‘as developers were more realistic in their pricing in the hope of maintaining demand’, according to Jones Lang LaSalle’s head of research (SE Asia) Chua Yang Liang. For example, the median price for The Aristo @ Amber eased 1.2 per cent month on month to $990 psf in January. Nova 88 in the Balestier area too saw its median price soften 4.2 per cent to $947 psf, while Rosewood Suites in Woodlands recorded a 16.7 per cent contraction in median price to $545 psf in January.
‘This analysis doesn’t factor in price differentiation as a result of differences in the unit’s orientation, floor level, size, etc,’ Dr Chua adds.
Property consultants were not surprised by January’s weak homes sales, attributing it to the Chinese New Year festivities and potential buyers being further drawn to the sidelines with their eyes glued to the Singapore Budget announcement.
Only 13 units were sold in the Core Central Region last month; Rest of Central Region and Outside Central Region had similar shares, at 49 and 45 units respectively.
Source : Business Times - 17 Feb 2009
Private home sales at new monthly low
Posted by goldenpeace on 17-Feb-2009
THE property market continues its downward spiral with only 107 new private units sold last month - the lowest monthly total since data was made available in 2007.
A lack of launches from developers was partly behind the anaemic figure, which was well under the 131 sales in December and the previous low of 118 sales in October.
About 204 units were launched last month, up from 157 in December, but lower than the 12-month average of 518 units. No new prime projects were launched last month.
‘An ominous pall of uncertainty is hanging over the industry,’ said Knight Frank director of research and consultancy Nicholas Mak.
‘The diminishing number of units sold in the market not only reflects a heightened sense of prudence, but also an increased anticipation for prices to fall, thus causing potential buyers to stay on the sidelines.’
Last month’s top sellers included Nova 88 in Balestier and The Aristo @ Amber, which sold 16 units and 14 units respectively.
The stronger demand for these projects could be down to their improved affordability, with median prices having eased slightly, said Jones Lang LaSalle’s head of research for South-east Asia, Mr Chua Yang Liang.
But while last month was something of a dead loss, sales this month are already looking up, thanks to two successful launches.
The 712-unit Caspian - a short walk from Lakeside MRT station in Jurong - has racked up sales of 470 units since its release earlier this month. Prices at the 99-year leasehold condo started at $580 per sq ft (psf), and are now at $600 psf.
The 293-unit Alexis @ Alexandra, released for sale last week, is said to have been 100 per cent sold by last Saturday.
It was priced at $850 to $1,100 psf, but most of the units were small, and so came with a relatively low absolute price.
Prices ranged from $450,000 for one-bedroom units to nearly $1.8 million for the penthouses.
‘Certainly, there is renewed confidence in the market for properties that are priced right, as many HDB upgraders and investors are able to pick up such units at a lower quantum,’ said Mr Mohd Ismail, chief executive of PropNex, which co-marketed Caspian with ERA.
CBRE Research executive director Li Hiaw Ho said the success of the two projects could be attributed to their good locations, competitive prices and a creative mix of units.
The tie-up between banks and developers to offer the interest absorption scheme also helped stimulate sales, he said.
Some property consultants expect February to register the highest number of monthly transactions since late 2007.
But this performance is likely to be a one-off for now, said Mr Mak, who added that sales could begin to slow to a more sustainable pace.
Mr Li said: ‘While the Singapore economy remains in recession, the continued moderation of prices should encourage potential buyers to come forward.’
That could drive first-quarter sales to 1,000 to 1,200 units, he said. Last year, developers sold just 4,287 new homes, down from a record 14,811 in 2007.
Source : Straits Times - 17 Feb 2009
THE property market continues its downward spiral with only 107 new private units sold last month - the lowest monthly total since data was made available in 2007.
A lack of launches from developers was partly behind the anaemic figure, which was well under the 131 sales in December and the previous low of 118 sales in October.
About 204 units were launched last month, up from 157 in December, but lower than the 12-month average of 518 units. No new prime projects were launched last month.
‘An ominous pall of uncertainty is hanging over the industry,’ said Knight Frank director of research and consultancy Nicholas Mak.
‘The diminishing number of units sold in the market not only reflects a heightened sense of prudence, but also an increased anticipation for prices to fall, thus causing potential buyers to stay on the sidelines.’
Last month’s top sellers included Nova 88 in Balestier and The Aristo @ Amber, which sold 16 units and 14 units respectively.
The stronger demand for these projects could be down to their improved affordability, with median prices having eased slightly, said Jones Lang LaSalle’s head of research for South-east Asia, Mr Chua Yang Liang.
But while last month was something of a dead loss, sales this month are already looking up, thanks to two successful launches.
The 712-unit Caspian - a short walk from Lakeside MRT station in Jurong - has racked up sales of 470 units since its release earlier this month. Prices at the 99-year leasehold condo started at $580 per sq ft (psf), and are now at $600 psf.
The 293-unit Alexis @ Alexandra, released for sale last week, is said to have been 100 per cent sold by last Saturday.
It was priced at $850 to $1,100 psf, but most of the units were small, and so came with a relatively low absolute price.
Prices ranged from $450,000 for one-bedroom units to nearly $1.8 million for the penthouses.
‘Certainly, there is renewed confidence in the market for properties that are priced right, as many HDB upgraders and investors are able to pick up such units at a lower quantum,’ said Mr Mohd Ismail, chief executive of PropNex, which co-marketed Caspian with ERA.
CBRE Research executive director Li Hiaw Ho said the success of the two projects could be attributed to their good locations, competitive prices and a creative mix of units.
The tie-up between banks and developers to offer the interest absorption scheme also helped stimulate sales, he said.
Some property consultants expect February to register the highest number of monthly transactions since late 2007.
But this performance is likely to be a one-off for now, said Mr Mak, who added that sales could begin to slow to a more sustainable pace.
Mr Li said: ‘While the Singapore economy remains in recession, the continued moderation of prices should encourage potential buyers to come forward.’
That could drive first-quarter sales to 1,000 to 1,200 units, he said. Last year, developers sold just 4,287 new homes, down from a record 14,811 in 2007.
Source : Straits Times - 17 Feb 2009
Monday, February 16, 2009
Bouyant property launches defy poor economy
Posted by goldenpeace on 16-Feb-2009
New developments Caspian and Alexis report brisk sales, add buzz to market
Frasers Centrepoint Ltd (FCL) has delivered much needed positive news by reporting that its 712-unit Caspiancondominium near Jurong Lake is now 65 per cent sold with 460 units snapped up to date.
Over at Alexandra, the 293-unit Alexis @ Alexandra by joint venture partners Yi Kai Group and Fission Group is said to be fully sold.
Both developments were launched this month and together, total sales of 753 units have already topped new developer sales for the whole quarter of Q1 2008.
The demand for these two developments have taken many by surprise.
Mohamed Ismail, chief executive of PropNex, which is also the marketing agent for the 99-year leasehold Caspian, said that the sales target had initially been only 250 units for its first phase.
However, after these were sold out quickly at an average price of $580 psf, more units were released at the higher price of $600 psf.
It is understood that FCL will continue selling units as long as there are buyers and that it is comfortable with the pace of sales.
Giving his take on the Caspian’s success, Mr Ismail said: ‘The strategy in a down market is to look at the size of the units, reach out to buyers in the same area, and keep prices low.’
Alexis, a freehold development marketed by Huttons Asia was more expensive at around $1,000 psf. However, Mr Ismail noted that Alexis is a ‘unique product’ with small units. He added: ‘It doesn’t really matter what the per square foot price is these days. If the quantum is below $1 million, there will be many takers.’
While these sales figures are encouraging, Cushman and Wakefield managing director Donald Han said that the demand could be very ‘project specific’ with pent-up demand quickly satisfied.
A case in point could be City Developments Ltd’s (CDL) 724-unit Livia condominium project in Pasir Ris. Livia was launched in July last year and 338 units have been sold as at end December at an average price of $650 psf. Over the weekend, CDL launched 30 units at an average of $620 per sq ft but the atmosphere at the showflat is said to be relatively subdued.
Still, the launch of Caspian and Alexis has added some buzz to an otherwise quiet market.
Some developers have noted that there are buyers waiting to move.
And Teo Hong Lim, chief executive of Roxy-Pacific, the parent company of Roxy Homes, has noticed that the sale of a few units can trigger a rash of buying because those waiting on the sidelines do not want to ‘miss the boat’.
Mr Teo says that Roxy Homes sees about 70-100 visitors at its showflats a day.
East Coast Properties managing director Alvin Ng says he has also noticed an increase in visitors at its showflats with sales also picking up. Asked what is driving this in light of the poor economy, Mr Ng said: ‘It’s really anyone’s guess.’
Source : Business Times - 16 Feb 2009
New developments Caspian and Alexis report brisk sales, add buzz to market
Frasers Centrepoint Ltd (FCL) has delivered much needed positive news by reporting that its 712-unit Caspiancondominium near Jurong Lake is now 65 per cent sold with 460 units snapped up to date.
Over at Alexandra, the 293-unit Alexis @ Alexandra by joint venture partners Yi Kai Group and Fission Group is said to be fully sold.
Both developments were launched this month and together, total sales of 753 units have already topped new developer sales for the whole quarter of Q1 2008.
The demand for these two developments have taken many by surprise.
Mohamed Ismail, chief executive of PropNex, which is also the marketing agent for the 99-year leasehold Caspian, said that the sales target had initially been only 250 units for its first phase.
However, after these were sold out quickly at an average price of $580 psf, more units were released at the higher price of $600 psf.
It is understood that FCL will continue selling units as long as there are buyers and that it is comfortable with the pace of sales.
Giving his take on the Caspian’s success, Mr Ismail said: ‘The strategy in a down market is to look at the size of the units, reach out to buyers in the same area, and keep prices low.’
Alexis, a freehold development marketed by Huttons Asia was more expensive at around $1,000 psf. However, Mr Ismail noted that Alexis is a ‘unique product’ with small units. He added: ‘It doesn’t really matter what the per square foot price is these days. If the quantum is below $1 million, there will be many takers.’
While these sales figures are encouraging, Cushman and Wakefield managing director Donald Han said that the demand could be very ‘project specific’ with pent-up demand quickly satisfied.
A case in point could be City Developments Ltd’s (CDL) 724-unit Livia condominium project in Pasir Ris. Livia was launched in July last year and 338 units have been sold as at end December at an average price of $650 psf. Over the weekend, CDL launched 30 units at an average of $620 per sq ft but the atmosphere at the showflat is said to be relatively subdued.
Still, the launch of Caspian and Alexis has added some buzz to an otherwise quiet market.
Some developers have noted that there are buyers waiting to move.
And Teo Hong Lim, chief executive of Roxy-Pacific, the parent company of Roxy Homes, has noticed that the sale of a few units can trigger a rash of buying because those waiting on the sidelines do not want to ‘miss the boat’.
Mr Teo says that Roxy Homes sees about 70-100 visitors at its showflats a day.
East Coast Properties managing director Alvin Ng says he has also noticed an increase in visitors at its showflats with sales also picking up. Asked what is driving this in light of the poor economy, Mr Ng said: ‘It’s really anyone’s guess.’
Source : Business Times - 16 Feb 2009
Lease buyback: A mindset issue
Posted by goldenpeace on 16-Feb-2009
AFTER almost two years in the works, the lease buyback scheme for the elderly will finally kick off on March 1.
It is one of the Housing Board’s most innovative programmes in recent years and its details - unveiled in Parliament recently - affirm what market observers have long perceived about HDB’s role in Singapore society: that it is part of an expanding social support system.
In a nutshell, how it works is that HDB will leave 30 years of a home owner’s lease and buy back the tail-end of that lease at market value.
It will top up this sum with a $10,000 grant, of which $5,000 is given to the home owner as cash upfront and the rest is used to purchase an annuity which makes typical payouts of $500 a month for life to the home owner.
To be eligible, a home owner must be aged 62 and above, own a three-room or smaller flat, have enjoyed only one housing subsidy and have almost paid off his home loan.
And if the owner dies before he lives out the 30 years, a refund of the remaining lease will be paid to his family, in addition to the unused portion of his annuity.
The essence of the scheme is relatively simple, but its implementation will likely be not so straightforward.
For it to take off, there are some concerns that HDB needs to address.
The first - and most important - is that the board will need to change the mindset of the elderly and help them to understand the merits of the scheme.
Interviews conducted with eligible senior citizens last week showed resistance to the idea of giving up one’s property.
Analysts that The Straits Times spoke to anticipate a psychological barrier working against it - the cultural, Asian mindset of owning one’s home.
Property agency chief Mohamed Ismail of PropNex is one who said he expects the initial reception to be lukewarm among senior citizens because ‘it’s an Asian thing to own a property’.
Another property agency director, Mr Eugene Lim from ERA Asia-Pacific, added that old folk like to cling on to their assets: ‘It’s like a security blanket, something they can sell off for emergencies - and a status thing.’
So, for the scheme to be accepted, a lot of work has to be done at the grassroots level to raise awareness.
That HDB is targeting the low-income elderly also means this group is likely to be less educated, and need special attention to understand the intricacies of the scheme - a concern flagged when the scheme was discussed in Parliament.
In particular, HDB should also target this group’s children.
Not being able to leave their flats for their children proved to be a sticking point for many. Yet not every child needs or wants to inherit his parents’ flat.
Enabling parents to be financially independent also goes some way to relieving the children’s financial burden.
Ultimately, if it is the child that parents want to leave the house to, then the child will also be in the best position to persuade them of the scheme’s merits.
Secondly, more flexibility in implementing the scheme could also help it to take off.
One suggestion mentioned in Parliament is to extend the initiative to a wider pool of elderly, such as those who own four-room flats or bigger - since they are just as likely to be ‘asset-rich and cash-poor’.
A growing number of MPs have also requested HDB to expand the scheme to those who had more than one housing subsidy. National Development Minister Mah Bow Tan has said that HDB is open to these ideas down the road.
But expanding the scheme earlier rather than later might help boost the take-up rate and in turn, its popularity among the elderly.
Finally, HDB should consider variations of the scheme. Some analysts have suggested allowing elderly folk to opt for even shorter lease buybacks.
For example, an eligible senior citizen aged 75 might not feel he needs a 30-year lease if he does not expect to live to 105.
He may want to opt for a 20-year lease, and sell a longer lease to the HDB which will in turn grant him a bigger monthly payout. Selling 10 years more of the lease could yield up to 20 per cent more money, said one independent valuer.
Already, some industry observers and elderly folk feel the typical $500 a month payout is not attractive enough given current costs of living.
Other concerns that have emerged include the way that HDB determines the value of the flat, and whether rooms can still be rented out after a resident signs on the scheme.
HDB has since confirmed that owners can still sublet a room even after they opt for the scheme. This implies an income of $500 plus another $300 to $400 on average from rental gains.
The valuation process can also be tweaked.
Currently, HDB values the flat only after a home owner has signed on the dotted line. But feedback has revealed that home owners prefer to have an indication of the valuation before they sign, so that they can do their sums before taking the plunge.
This is a particularly valid concern in a property downturn, because valuations can go down very quickly.
Whatever eventual form it takes, this lease buyback scheme will be vital to Singapore’s society, not least because of the unprecedented ‘age shift’ which Singapore will see.
According to the Committee on Ageing Issues, residents aged 65 years or older will multiply threefold from 300,000 currently to 900,000 in 2030.
By then, one out of every five residents will be a senior - a sobering statistic which explains why it is in HDB’s interest to increase the monetisation options for ‘cash-poor and asset-rich’ Singaporeans in their twilight years.
Furthermore, the scheme will go a long way in relieving the Government’s burden to take care of elderly needs.
Early indications from the ground are that this scheme will be more popular than the reverse mortgage, which allows home owners to borrow against the value of their property. The loan is repayable when the property is sold, usually on the death of the borrower.
This is half the battle won, but a mass effort needs to be mobilised across society to make it successful.
In the months ahead, the board’s ability to fine-tune the rules to meet the concerns of the elderly and their families will be key to the scheme’s success.
Source : Straits Times - 16 Feb 2009
AFTER almost two years in the works, the lease buyback scheme for the elderly will finally kick off on March 1.
It is one of the Housing Board’s most innovative programmes in recent years and its details - unveiled in Parliament recently - affirm what market observers have long perceived about HDB’s role in Singapore society: that it is part of an expanding social support system.
In a nutshell, how it works is that HDB will leave 30 years of a home owner’s lease and buy back the tail-end of that lease at market value.
It will top up this sum with a $10,000 grant, of which $5,000 is given to the home owner as cash upfront and the rest is used to purchase an annuity which makes typical payouts of $500 a month for life to the home owner.
To be eligible, a home owner must be aged 62 and above, own a three-room or smaller flat, have enjoyed only one housing subsidy and have almost paid off his home loan.
And if the owner dies before he lives out the 30 years, a refund of the remaining lease will be paid to his family, in addition to the unused portion of his annuity.
The essence of the scheme is relatively simple, but its implementation will likely be not so straightforward.
For it to take off, there are some concerns that HDB needs to address.
The first - and most important - is that the board will need to change the mindset of the elderly and help them to understand the merits of the scheme.
Interviews conducted with eligible senior citizens last week showed resistance to the idea of giving up one’s property.
Analysts that The Straits Times spoke to anticipate a psychological barrier working against it - the cultural, Asian mindset of owning one’s home.
Property agency chief Mohamed Ismail of PropNex is one who said he expects the initial reception to be lukewarm among senior citizens because ‘it’s an Asian thing to own a property’.
Another property agency director, Mr Eugene Lim from ERA Asia-Pacific, added that old folk like to cling on to their assets: ‘It’s like a security blanket, something they can sell off for emergencies - and a status thing.’
So, for the scheme to be accepted, a lot of work has to be done at the grassroots level to raise awareness.
That HDB is targeting the low-income elderly also means this group is likely to be less educated, and need special attention to understand the intricacies of the scheme - a concern flagged when the scheme was discussed in Parliament.
In particular, HDB should also target this group’s children.
Not being able to leave their flats for their children proved to be a sticking point for many. Yet not every child needs or wants to inherit his parents’ flat.
Enabling parents to be financially independent also goes some way to relieving the children’s financial burden.
Ultimately, if it is the child that parents want to leave the house to, then the child will also be in the best position to persuade them of the scheme’s merits.
Secondly, more flexibility in implementing the scheme could also help it to take off.
One suggestion mentioned in Parliament is to extend the initiative to a wider pool of elderly, such as those who own four-room flats or bigger - since they are just as likely to be ‘asset-rich and cash-poor’.
A growing number of MPs have also requested HDB to expand the scheme to those who had more than one housing subsidy. National Development Minister Mah Bow Tan has said that HDB is open to these ideas down the road.
But expanding the scheme earlier rather than later might help boost the take-up rate and in turn, its popularity among the elderly.
Finally, HDB should consider variations of the scheme. Some analysts have suggested allowing elderly folk to opt for even shorter lease buybacks.
For example, an eligible senior citizen aged 75 might not feel he needs a 30-year lease if he does not expect to live to 105.
He may want to opt for a 20-year lease, and sell a longer lease to the HDB which will in turn grant him a bigger monthly payout. Selling 10 years more of the lease could yield up to 20 per cent more money, said one independent valuer.
Already, some industry observers and elderly folk feel the typical $500 a month payout is not attractive enough given current costs of living.
Other concerns that have emerged include the way that HDB determines the value of the flat, and whether rooms can still be rented out after a resident signs on the scheme.
HDB has since confirmed that owners can still sublet a room even after they opt for the scheme. This implies an income of $500 plus another $300 to $400 on average from rental gains.
The valuation process can also be tweaked.
Currently, HDB values the flat only after a home owner has signed on the dotted line. But feedback has revealed that home owners prefer to have an indication of the valuation before they sign, so that they can do their sums before taking the plunge.
This is a particularly valid concern in a property downturn, because valuations can go down very quickly.
Whatever eventual form it takes, this lease buyback scheme will be vital to Singapore’s society, not least because of the unprecedented ‘age shift’ which Singapore will see.
According to the Committee on Ageing Issues, residents aged 65 years or older will multiply threefold from 300,000 currently to 900,000 in 2030.
By then, one out of every five residents will be a senior - a sobering statistic which explains why it is in HDB’s interest to increase the monetisation options for ‘cash-poor and asset-rich’ Singaporeans in their twilight years.
Furthermore, the scheme will go a long way in relieving the Government’s burden to take care of elderly needs.
Early indications from the ground are that this scheme will be more popular than the reverse mortgage, which allows home owners to borrow against the value of their property. The loan is repayable when the property is sold, usually on the death of the borrower.
This is half the battle won, but a mass effort needs to be mobilised across society to make it successful.
In the months ahead, the board’s ability to fine-tune the rules to meet the concerns of the elderly and their families will be key to the scheme’s success.
Source : Straits Times - 16 Feb 2009
Saturday, February 14, 2009
Getting the 'real' in real estate
Posted by goldenpeace on 14-Feb-2009
New interest-absorption schemes offered by developers through banks are attracting the smart money
JUDGING by the response to the recently launched Caspian and Alexis, real estate remains a key element of the typical Singaporean’s wealth-management strategy.
While cash is still king, real estate - like gold - is something tangible to hang on to. And recent downward price adjustments are making it an increasingly attractive asset class. What is making new launches even more enticing is that investors are cottoning on to the fact that new interest absorption schemes (IAS) offered by developers through banks are very much like the former deferred payment scheme (DPS).
At the recent launch of Alexis, units were not only offered with IAS but did not come at higher prices, typically 3 per cent more. Buyers, said mostly to be Singaporean investors, homed in. The project was almost fully sold in less than a week. Considering the depth of the economic downturn, this would seem to defy logic. So, could real estate be where the smart money is migrating to now?
Looking at yields from stocks, bonds and even fixed deposits, and comparing these with IAS, which is essentially an interest-free loan on almost all new property, the argument for putting your money, or at least some of it, into real estate is compelling - especially if you subscribe to the notion that real estate values always rise in the long run.
This last point is what differentiates property buyers now from those who bought in the run-up to peak prices in 2007 - they are more realistic.
Certainly, few buyers today would be hoping to make a fast buck. Indeed, prices may actually have some way to go before they hit bottom.
Reality appears to have set in, with investment horizons now longer than the time it takes to flip a property. The only danger is that if the recent surge in sales has more to do with IAS and less with the fundamentals of the market, recent experience is just another round of speculation, albeit a tiny one.
Does IAS encourage speculation? Some believe that unlike DPS, IAS is much more stringent insofar as terms go. A purchaser who is offered the IAS has to take out a loan with a bank, which will carry out credit checks before granting the loan. In addition, the purchaser has to make progress payments, part of which may be disbursed from the bank loan, to the developer. This amounts to 60 per cent of the purchase price of the property before the temporary occupation permit (TOP) is granted, including 20 per cent at the downpayment stage.
With DPS, as little as 10 per cent of the purchase price was payable by the purchaser before TOP.
Given that a buyer has to commit to a loan and make progress payments, the authorities do not believe IAS encourages speculation.
Hopefully, then, what the market is experiencing now is the realisation that real estate is fundamentally a safe asset class - not a flash in the pan brought on by speculation.
Source : Business Times - 14 Feb 2009
New interest-absorption schemes offered by developers through banks are attracting the smart money
JUDGING by the response to the recently launched Caspian and Alexis, real estate remains a key element of the typical Singaporean’s wealth-management strategy.
While cash is still king, real estate - like gold - is something tangible to hang on to. And recent downward price adjustments are making it an increasingly attractive asset class. What is making new launches even more enticing is that investors are cottoning on to the fact that new interest absorption schemes (IAS) offered by developers through banks are very much like the former deferred payment scheme (DPS).
At the recent launch of Alexis, units were not only offered with IAS but did not come at higher prices, typically 3 per cent more. Buyers, said mostly to be Singaporean investors, homed in. The project was almost fully sold in less than a week. Considering the depth of the economic downturn, this would seem to defy logic. So, could real estate be where the smart money is migrating to now?
Looking at yields from stocks, bonds and even fixed deposits, and comparing these with IAS, which is essentially an interest-free loan on almost all new property, the argument for putting your money, or at least some of it, into real estate is compelling - especially if you subscribe to the notion that real estate values always rise in the long run.
This last point is what differentiates property buyers now from those who bought in the run-up to peak prices in 2007 - they are more realistic.
Certainly, few buyers today would be hoping to make a fast buck. Indeed, prices may actually have some way to go before they hit bottom.
Reality appears to have set in, with investment horizons now longer than the time it takes to flip a property. The only danger is that if the recent surge in sales has more to do with IAS and less with the fundamentals of the market, recent experience is just another round of speculation, albeit a tiny one.
Does IAS encourage speculation? Some believe that unlike DPS, IAS is much more stringent insofar as terms go. A purchaser who is offered the IAS has to take out a loan with a bank, which will carry out credit checks before granting the loan. In addition, the purchaser has to make progress payments, part of which may be disbursed from the bank loan, to the developer. This amounts to 60 per cent of the purchase price of the property before the temporary occupation permit (TOP) is granted, including 20 per cent at the downpayment stage.
With DPS, as little as 10 per cent of the purchase price was payable by the purchaser before TOP.
Given that a buyer has to commit to a loan and make progress payments, the authorities do not believe IAS encourages speculation.
Hopefully, then, what the market is experiencing now is the realisation that real estate is fundamentally a safe asset class - not a flash in the pan brought on by speculation.
Source : Business Times - 14 Feb 2009
Property broker's lament
Posted by goldenpeace on 14-February-2009
‘It is no joy to be associated with this negative image.’
MR COLIN CHOO: ‘I agree with the proposal in last Saturday’s editorial, ‘Urgent: Laws to tighten property brokerage trade’, to license individual estate agents, in addition to property agencies. This is consistent with the practice of other professions, including cab drivers and hawkers. Anyone who has a licence at stake is likely to think twice before resorting to unethical practices. Self-policing by agencies is uneven and unreliable. Given the disparate sizes of the agencies, it is hard to monitor thousands of agents in large firms. An agent dismissed by one agency for unethical practice can easily switch to another and continue brokering. There is no carrot or stick for agencies to regulate the conduct of their agents either, as the agents are not under their direct employment. As a long-time estate agent, I have seen enough blatantly unethical behaviour among agents and it is no joy to be associated with this negative image.’
Source : Straits Times - 14 Feb 2009
‘It is no joy to be associated with this negative image.’
MR COLIN CHOO: ‘I agree with the proposal in last Saturday’s editorial, ‘Urgent: Laws to tighten property brokerage trade’, to license individual estate agents, in addition to property agencies. This is consistent with the practice of other professions, including cab drivers and hawkers. Anyone who has a licence at stake is likely to think twice before resorting to unethical practices. Self-policing by agencies is uneven and unreliable. Given the disparate sizes of the agencies, it is hard to monitor thousands of agents in large firms. An agent dismissed by one agency for unethical practice can easily switch to another and continue brokering. There is no carrot or stick for agencies to regulate the conduct of their agents either, as the agents are not under their direct employment. As a long-time estate agent, I have seen enough blatantly unethical behaviour among agents and it is no joy to be associated with this negative image.’
Source : Straits Times - 14 Feb 2009
Friday, February 13, 2009
Alexis at Alexandra pulls in the punters
Posted by goldenpeace on 13-Feb-2009
PREVIEW sales of the 293-unit Alexis at Alexandra Road started yesterday and developer Fission Group said that at least 50 per cent of the development has been sold at prices ranging from $850 per square foot (psf) to $1,100 psf.
The company was coy on the exact number of units sold but it may have been a tad too modest. Some buyers BT spoke with at the crowded show flat said that they were told by marketing agents that up to 85 per cent of the units had been sold by 7.30 pm.
‘The prices are competitive compared with other condominiums, but its proximity to the MRT and CBD makes the Alexis a good investment,’ said Steven Kwok, a potential buyer who had been quoted a price of $1,050-$1,100 psf.
Another buyer said that compared to the recently launched Caspian ($580 psf), Alexis is not cheap but he hopes to resell the property for a profit. He also said that compared to what was quoted in an invitation he had received earlier, prices quoted at the showflat were 10 per cent higher.
According to official data, three units at The Anchorage next door sold at $848-$929 psf in the fourth quarter while a unit at Queens on Stirling Road sold for $894 psf this month.
Fission Group has tied up with United Overseas Bank to offer an interest absorption scheme, which, like the now-scrapped deferred payment scheme, allows buyers to defer any payments beyond an initial downpayment until the project receives Temporary Occupation Permit (TOP).
Alexis is being built on the former Alexandra Centre which was put up for collective sale in 2007 for around $300 per square per plot ratio. It is not known how much Fission Group paid for the site.
A seasoned property consultant said that interest in Alexis is likely because most of the units are small. At between 400 sq ft for a one-bedroom unit and 650 sq ft for a two-bedder, prices range from $450,000 to $650,000.
He also said that there was ’still liquidity in the market’ and investors with a two-year investment horizon would still find property attractive. ‘There is no point putting money in a bank,’ he added.
Over on the east coast, City Developments Ltd (CDL) will launch a new phase for its Livia condominium in Pasir Ris at an average price of $620 psf, or about $30 psf less than the launch price of the first phase. A total of 30 units in two stacks will be offered in the second phase.
Chia Ngiang Hong, group general manager of CDL said: ‘The company senses a renewal of market interest and improvement in buyer sentiment. More people have been visiting our showrooms, and many have made offers for units that have yet to be launched.’
Source : Business Times - 13 Feb 2009
PREVIEW sales of the 293-unit Alexis at Alexandra Road started yesterday and developer Fission Group said that at least 50 per cent of the development has been sold at prices ranging from $850 per square foot (psf) to $1,100 psf.
The company was coy on the exact number of units sold but it may have been a tad too modest. Some buyers BT spoke with at the crowded show flat said that they were told by marketing agents that up to 85 per cent of the units had been sold by 7.30 pm.
‘The prices are competitive compared with other condominiums, but its proximity to the MRT and CBD makes the Alexis a good investment,’ said Steven Kwok, a potential buyer who had been quoted a price of $1,050-$1,100 psf.
Another buyer said that compared to the recently launched Caspian ($580 psf), Alexis is not cheap but he hopes to resell the property for a profit. He also said that compared to what was quoted in an invitation he had received earlier, prices quoted at the showflat were 10 per cent higher.
According to official data, three units at The Anchorage next door sold at $848-$929 psf in the fourth quarter while a unit at Queens on Stirling Road sold for $894 psf this month.
Fission Group has tied up with United Overseas Bank to offer an interest absorption scheme, which, like the now-scrapped deferred payment scheme, allows buyers to defer any payments beyond an initial downpayment until the project receives Temporary Occupation Permit (TOP).
Alexis is being built on the former Alexandra Centre which was put up for collective sale in 2007 for around $300 per square per plot ratio. It is not known how much Fission Group paid for the site.
A seasoned property consultant said that interest in Alexis is likely because most of the units are small. At between 400 sq ft for a one-bedroom unit and 650 sq ft for a two-bedder, prices range from $450,000 to $650,000.
He also said that there was ’still liquidity in the market’ and investors with a two-year investment horizon would still find property attractive. ‘There is no point putting money in a bank,’ he added.
Over on the east coast, City Developments Ltd (CDL) will launch a new phase for its Livia condominium in Pasir Ris at an average price of $620 psf, or about $30 psf less than the launch price of the first phase. A total of 30 units in two stacks will be offered in the second phase.
Chia Ngiang Hong, group general manager of CDL said: ‘The company senses a renewal of market interest and improvement in buyer sentiment. More people have been visiting our showrooms, and many have made offers for units that have yet to be launched.’
Source : Business Times - 13 Feb 2009
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