Posted by goldenpeace on 31-Mar-2009
Developers sold between 2,000 and 2,200 new private homes in the first three months of this year, estimates property consulting group CB Richard Ellis. This is the highest sales volume since the third quarter of 2007.
‘The return of sales volume shows that some liquidity has returned to the market and underlying demand remains healthy. Wary of the impact of the economic recession on job security, as well as stricter bank loan approvals, buyers zoomed in on new homes.
Shoe box units in city- fringe locations were popular. Projects such as Alexis, Nova 88 and The Mercury sold well, at prices ranging between S$900 per square foot (psf) and S$1,200 psf for unit sizes of 340 square feet (sq ft) to 750 sq ft. The majority of them were sold at an absolute quantum of less than S$600,000 per unit,’ CBRE said in a release on Tuesday.
The projects with the highest number of units sold in Q1 2009 were Caspian (550 units sold), Alexis (293 units), Double BayResidences (250 units) and The Quartz (178 units),CBRE said. All four condos are located near MRT stations.
Source : Business Times - 31 Mar 2009
Tuesday, March 31, 2009
New risks emerge for property companies
Posted by goldenpeace on 31-Mar-2009
Credit crunch, price uncertainty affecting firms, says E&Y
Real estate companies face new and growing risks amid the downturn in the world economy, says Ernst & Young (E&Y).
‘The credit crunch, fluctuations in global economies and resultant pricing uncertainty are affecting real estate companies globally, including those in Singapore,’ says E&Y Singapore’s assurance partner and market leader for real estate Liew Choon Wai.
Many local developers have overseas portfolios, including in emerging markets, and a major concern is the economic vulnerability of these markets and possible changes to local regulations as a result, he says.
Another source of potential concern is the real estate investment trust (Reit) sector. ‘Should the economic downturn be prolonged or worsen, we expect some form of consolidation in this sector, especially with its refinancing needs and the continuing pressure on rents.’
As for residential property, E&Y continues to see a ‘rebalancing of selling prices and judicious timing of property launches’, Mr Liew says.
E&Y’s 2009 real estate business risk report itemises the top 10 risks faced by the industry as ranked by leading analysts.
The greatest concern is continued uncertainty and the impact of the credit crunch. As E&Y points out, the real estate sector has felt tighter credit conditions perhaps more than any other industry.
Restrictions on availability of credit and the short-term inability to deploy capital at acceptable levels of return have ‘paralysed’ the industry’s transactions sector, says E&Y’s global infrastructure and construction leader Michael Lucki.
‘The only lending today is on deals with 50 per cent loan to value and at rates 200 to 400 basis points higher than six months ago, whereas towards the end of 2007 most loans were at 80-90 per cent loan to value,’ he says.
But some lenders may be on the lookout to move real estate related assets off their books fast, paving the way for forward-thinking companies to develop strategies to take advantage of distressed assets and debt situations.
Besides volatility and a lack of credit, other risks for the real estate sector seen by E&Y are: the impact of ageing or inadequate infrastructure; the worldwide war for talent; changing demographics; the inability to find and exploit global and non-traditional opportunities; pricing uncertainty; the green revolution, sustainability and climate change; and volatile energy costs.
Still, E&Y’s global and Americas real estate leader Howard Roth still believes there is a lot of capital on the sidelines waiting to take advantage of distressed real estate opportunities when the time is right.
‘A structured, comprehensive due diligence programme will be more important than ever as buyers and sellers evaluate their opportunities,’ he says.
Source : Business Times - 31 Mar 2009
Credit crunch, price uncertainty affecting firms, says E&Y
Real estate companies face new and growing risks amid the downturn in the world economy, says Ernst & Young (E&Y).
‘The credit crunch, fluctuations in global economies and resultant pricing uncertainty are affecting real estate companies globally, including those in Singapore,’ says E&Y Singapore’s assurance partner and market leader for real estate Liew Choon Wai.
Many local developers have overseas portfolios, including in emerging markets, and a major concern is the economic vulnerability of these markets and possible changes to local regulations as a result, he says.
Another source of potential concern is the real estate investment trust (Reit) sector. ‘Should the economic downturn be prolonged or worsen, we expect some form of consolidation in this sector, especially with its refinancing needs and the continuing pressure on rents.’
As for residential property, E&Y continues to see a ‘rebalancing of selling prices and judicious timing of property launches’, Mr Liew says.
E&Y’s 2009 real estate business risk report itemises the top 10 risks faced by the industry as ranked by leading analysts.
The greatest concern is continued uncertainty and the impact of the credit crunch. As E&Y points out, the real estate sector has felt tighter credit conditions perhaps more than any other industry.
Restrictions on availability of credit and the short-term inability to deploy capital at acceptable levels of return have ‘paralysed’ the industry’s transactions sector, says E&Y’s global infrastructure and construction leader Michael Lucki.
‘The only lending today is on deals with 50 per cent loan to value and at rates 200 to 400 basis points higher than six months ago, whereas towards the end of 2007 most loans were at 80-90 per cent loan to value,’ he says.
But some lenders may be on the lookout to move real estate related assets off their books fast, paving the way for forward-thinking companies to develop strategies to take advantage of distressed assets and debt situations.
Besides volatility and a lack of credit, other risks for the real estate sector seen by E&Y are: the impact of ageing or inadequate infrastructure; the worldwide war for talent; changing demographics; the inability to find and exploit global and non-traditional opportunities; pricing uncertainty; the green revolution, sustainability and climate change; and volatile energy costs.
Still, E&Y’s global and Americas real estate leader Howard Roth still believes there is a lot of capital on the sidelines waiting to take advantage of distressed real estate opportunities when the time is right.
‘A structured, comprehensive due diligence programme will be more important than ever as buyers and sellers evaluate their opportunities,’ he says.
Source : Business Times - 31 Mar 2009
Monday, March 30, 2009
HDB lease buyback scheme draws interest
Posted by goldenpeace on 30-Mar-2009
Madam Cheng Ai King has lived in the same three-room Housing Board flat in Serangoon Central for the last 23 years.
At 67, she still works as a school canteen helper, earning $30 a day. She could use some extra cash, but she has no wish to leave the familiarity of her neighbourhood.
‘I have lots of good neighbours and my flat is conveniently located,’ said Madam Cheng, who lives alone now, after her three grown children moved out.
So, when HDB officers at a community event told her about a new scheme that will give her an income for life, and allow her to stay on in her home, her interest was piqued.
This Lease Buyback Scheme was launched on March 1, and the HDB has been on an outreach drive since, to get elderly residents to understand how it works.
Eligibility is limited to those aged 62 and above, and living in three-room flats or smaller.
About 25,000 households are eligible. Under the scheme, the HDB will buy back the tail-end of a flat’s lease at market rate, leaving a 30-year remaining lease.
A home owner under the scheme receives upfront a lump sum of $5,000 and a certain monthly annuity payout for life.
Yesterday, about 400 seniors were at Toa Payoh West Community Club to meet Education Minister and MP for Bishan-Toa Payoh GRC, Dr Ng Eng Hen. Dr Ng, who is also Second Minister for Defence, said the scheme would be useful for older Singaporeans who may have stopped working early or did not have an opportunity to save enough in their Central Provident Fund accounts.
‘Some used their money for their homes, some helped their children to buy homes. They may not have a steady income for life.’Dr Ng said many residents told him on his rounds that they are comfortable where they are and do not wish to move or downgrade to a smaller flat.
Some value their privacy and do not wish to sublet rooms. ‘If they don’t like the other options, this is very attractive,’ he said. HDB will run exhibitions at six other locations in the next month, including MacPherson, Queenstown and Kaki Bukit.
Source : Sunday Times - 29 Mar 2009
Madam Cheng Ai King has lived in the same three-room Housing Board flat in Serangoon Central for the last 23 years.
At 67, she still works as a school canteen helper, earning $30 a day. She could use some extra cash, but she has no wish to leave the familiarity of her neighbourhood.
‘I have lots of good neighbours and my flat is conveniently located,’ said Madam Cheng, who lives alone now, after her three grown children moved out.
So, when HDB officers at a community event told her about a new scheme that will give her an income for life, and allow her to stay on in her home, her interest was piqued.
This Lease Buyback Scheme was launched on March 1, and the HDB has been on an outreach drive since, to get elderly residents to understand how it works.
Eligibility is limited to those aged 62 and above, and living in three-room flats or smaller.
About 25,000 households are eligible. Under the scheme, the HDB will buy back the tail-end of a flat’s lease at market rate, leaving a 30-year remaining lease.
A home owner under the scheme receives upfront a lump sum of $5,000 and a certain monthly annuity payout for life.
Yesterday, about 400 seniors were at Toa Payoh West Community Club to meet Education Minister and MP for Bishan-Toa Payoh GRC, Dr Ng Eng Hen. Dr Ng, who is also Second Minister for Defence, said the scheme would be useful for older Singaporeans who may have stopped working early or did not have an opportunity to save enough in their Central Provident Fund accounts.
‘Some used their money for their homes, some helped their children to buy homes. They may not have a steady income for life.’Dr Ng said many residents told him on his rounds that they are comfortable where they are and do not wish to move or downgrade to a smaller flat.
Some value their privacy and do not wish to sublet rooms. ‘If they don’t like the other options, this is very attractive,’ he said. HDB will run exhibitions at six other locations in the next month, including MacPherson, Queenstown and Kaki Bukit.
Source : Sunday Times - 29 Mar 2009
Black & White bungalows beckon
Posted by goldenpeace on 30-Mar-2009
Housing budgets at the top end have been slashed, but limited supply make these black-and-white bungalows built during the British colonial periods in the early 1900s coveted lifestyle homes for expatriate families
JUST LAST MONDAY, Brandon and Gabrielle Batagol, together with their three young children, Zac, nine, Mathilde, seven, and Brigitte, four, moved into their brand-new black-and-white bungalow on Tanglin Road. Originally from Melbourne, the family had been living in a serviced apartment at Great World for the past two months. Brandon is a shareholder and director of one of the leading dairy trading companies in Australia. He was the founder and managing director of the company before moving to Singapore to expand the company’s Asian business.
Black-and-white bungalows were built during the British colonial period in the early 1900s, and are characterised by their sprawling gardens, white-washed exterior walls with black timber frames, arched driveways and spacious interiors with high ceilings and wood flooring. And, they are much sought after by expatriate families.
It appears they are one property type that is still relatively resilient in the current market downturn, unlike condominiums. Listening to the Batagols, one understands why. “It’s a dream,” says Brandon, gesturing at his new home. “But you have to be lucky because they don’t become available too often. It’s all about demand.”
After looking at almost 100 homes since last September — ranging from apartments to good class bungalows (GCB), and black-and-white bungalows, Gabrielle says, “I was open to anything, but I kept coming back to the black-and-whites.” In their first attempt last month at bidding for such a bungalow under the SLA open-bidding system, the Batagols did not secure the bungalow at 30 Malcolm Road — three of the top five bids came in above $20,000. When the next property — the black-and-white on Tanglin Road — came up for bidding, the Batagols had already done their research and armed with their earlier experience, secured the bungalow with the highest bid of $20,189 a month, according to the SLA open bidding results (see table).
SLA introduced the open-bidding system for new tenancies of its residential properties in late 2007 to increase transparency. When its residential properties become available for rent, they are posted on the SLA website. Rental rates are determined by market forces with guide rents provided to assist bidders, says Teo Cher Hian, SLA’s director of land lease (private) division. Prior to that, tenancies were awarded on a first-come first-served basis under a waiting list or balloting system.
“State-owned black-and-white properties are a unique product in the residential market,” says Teo. Also, they are in very limited supply, with just 300 units scattered across Singapore today, mainly in Adam Park Estate, Alexandra Park, Lornie Road, Seletar Airbase and Sembawang. Demand for such bungalows has remained relatively healthy and their occupancy rate is still over 90% today.
Despite the current market scenario of softening rents, the blackand- whites continue to see “good response”, says DTZ, the marketing agent for the black-and-white bungalow at 25 Nassim Road. It was put up for lease in the open bidding system, with bidding to start on March 30 and closing on April 3. The guide rent is $13,500 a month. Gabrielle says some of her friends who have visited her new house are now looking to bid for the one at Nassim.
RENTAL STABILITY
Apart from their charm, the other draw of black and whites is that, being state-owned, their rental rates are perceived to be more stable than those of houses that are privately owned. “What we heard is that with SLA as the landlord, they are much more understanding and much more realistic,” says Brandon. “So, even in a down market, the rate would be adjusted downward accordingly, and conversely, in a rising market, rentals are not going to jump by 100%, so it’s much more secure.”
Brandon, who has many friends who have already lived in Singapore for the last three to five years, is familiar with the story of expatriates’ rental woes when the property market was booming two years ago. “What happened to them was that they would have a lease of, say, $10,000 for two years, and when the lease was up, their landlord would increase their rent by 70% to 80%,” he says. “So, a $10,000-a-month lease suddenly became $18,000 a month, and they couldn’t afford it. Or, some of them had $20,000-a-month leases, and suddenly it was $35,000 a month and they had to move out.”
The Batagols have also done their research on how much they need to invest in their new home and budgeted how much it will cost to maintain it. Having friends already living in such black-and-whites also helps. Many of these houses have just basic lighting and ceiling fans. The new tenants have to install their own airconditioning units, wardrobes for the bedrooms, water heaters, telephone lines, Internet connection, swimming pool, pool deck and gazebo. “We’re investing in a lifestyle,” says Brandon. “We can’t do this in Australia, and even in Singapore, it’s unusual as well.”
One drawback about living in a black-and-white house is that after investing in all the fittings, when the tenants leave, they are required to reinstate the house to its original condition — that means removing the airconditioning units, the water heaters, the phone connections, and even the swimming pool and pool deck. For instance, the same company that installed the swimming pool for the previous tenants, and then took it out, is back at the house installing a bigger pool for the Batagols. “We’re spending quite a bit of money to make everything good quality, and when we leave, an option would be to sell it to the new tenants,” says Brandon. However, that’s subject to an assessment by one of the three agents appointed by SLA — EM Services, DTZ or United Premas.
There is also a cluster of 33 such state-owned black-and-white bungalows in the Mount Pleasant area, and these are managed by The Ascott Group, the serviced apartment arm of CapitaLand. Called The Heritage, they also continue to see strong demand “as they are rich in character and history, and are set in a lovely environment”, says Gerald Lee, CEO of Ascott Hospitality, the hospitality management arm of The Ascott Group. Given the limited number of such bungalows, they are popular with diplomats and senior executives of MNCs, says Lee. According to him, like the other black-and-whites elsewhere, those in Mount Pleasant also enjoy close to full occupancy.
Instead of a softening in rents, Lee says, rents have increased for renewals — some by “double-digit percentages”. However, he points out that these double-digit percentage increments were mainly for renewal of tenancies signed in 2005 and 2006, when rental rates were still relatively low. Current montly leases for the bungalows in the Mount Pleasant area are said to range from $20,000 to nearly $40,000.
Rental rates at Mount Pleasant are said to be based on various factors, including benchmarking with SLA’s black-and-white bungalows of a similar category and location, as well as demand. “We will monitor the market closely before making suitable adjustments to rents,” says Lee. “These black-and-white bungalows have a charm of their own,” says Sandy Sin, head of corporate leasing and the Regal Homes team at Knight Frank. “Many are homes to the CEOs of multinational firms.”
GCB RENTS DECLINE
The number of black-and-whites is dwindling as they are being torn down to make way for new construction — for instance at Seletar to make way for the Seletar Aerospace Park, an industrial park for aerospace companies. Hence, the number has been reduced from 500 to 700 such bungalows two years ago, to just 300 today.
The closest comparison to the black-and-whites in the private-housing market are GCBs, which have a minimum land area of 15,070 sq ft. There are around 2,000 to 2,500 GCBs today, and the number will only increase through the subdivision of larger GCB plots. Housing agents in the GCB market are seeing housing budgets for senior expatriate executives being slashed as well. This is especially noticeable when leases come up for renewal, says Knight Frank’s Sin.
For instance, those currently staying in palatial GCBs with rents of $30,000 to $32,000 a month are now looking at rents of $25,000 to $27,000 a month. Meanwhile, those currently paying $25,000 to $28,000 a month are looking at the $20,000 to $22,000 bracket. “There are very few who are now looking at rents of $25,000 and above,” she says. “The most common is now in the $20,000 to $22,000 range, and even that number is limited.”
SLA’s Teo is of the opinion that it isn’t appropriate to compare state bungalows with privately owned GCB as they have different attributes and, unlike the GCB market, “we have not discerned any significant changes, neither in the demand nor the bids for them”.
In the Gallop area, a GCB with land area of around 16,000 sq ft and builtup area of 5,500 sq ft to 6,000 sq ft is still asking for $28,000 to $30,000 a month in rent, while a GCB of similar size in Cornwall Gardens is asking for $26,000 a month, says Knight Frank’s Sin. “We’re trying to manage the expectations of GCB landlords and preparing them to accept lower rents, especially for leases that are coming up for renewal,” says Sin.
Patrick Lai, associate director of corporate residential leasing at Savills Singapore says he hasn’t seen a significant drop in demand for GCBs among senior expatriate executives yet. Just two weekends ago, he closed on the lease of a GCB with a land area of 16,000 sq ft in Mount Echo Park for close to $30,000. In February, he also housed a new expatriate tenant in a GCB on Swettenham Road with a monthly rent of $30,000. The highest rent he’s ever transacted was for a GCB in the Holland area that was leased at $45,000 a month just last September. It was a lease renewal from $27,000 a month previously, says Lai.
Lai predicts rental rates of GCBs will drop 15% this year. However, he does not see rental rates of GCBs nosediving the way it has for luxury condominiums. “The bottom line is that it all boils down to demand and supply,” he says. There are a limited number of GCBs, and therefore they will be able to hold better in terms of rents, reckons Lai. In contrast, newly completed condominium projects yield several hundred new units each, with numerous landlords competing for tenants. “And, that immediately puts pressure on rental rates.”
State-owned black-and-white bungalows are even more niche, and the rents for such bungalows of the same size are generally lower than GCBs in the same location, concedes Savills’ Lai. However, with asking rents of GCBs softening and 15,000 sq ft to 16,000 sq ft GCBs now asking for $22,000 a month versus $27,000 six months ago, “tenants have more choices than before — it’s a tenants market now”, says Lai. “Two years back, and even a year ago, it was still a landlord’s market,” he adds.
With expatriate housing budgets having dropped about 20% this year, “it will all balance out,” says Lai. “For sure, housing allowances have been adjusted downward, but [landlords’] sentiments and expectations have also been revised downward.”
To Lai, the litmus test on the health of the GCB market will be in June, which is the end of the school year for international schools. “I expect to see some movement then,” he says. For the black-and-whites, it will be when leases come up for renewal.
As for the Batagols, the family is looking forward to settling into their new home in Tanglin with its 5,457 sq ft double-storey house, a sprawling 59,202 sq ft garden and a brandnew swimming pool. “It’s a dream come true to have a house with a nice big area with a lot of green, where the children can run around or cycle when they come home from school,” says Brandon.
Source : The Edge - 29 Mar 2009
Housing budgets at the top end have been slashed, but limited supply make these black-and-white bungalows built during the British colonial periods in the early 1900s coveted lifestyle homes for expatriate families
JUST LAST MONDAY, Brandon and Gabrielle Batagol, together with their three young children, Zac, nine, Mathilde, seven, and Brigitte, four, moved into their brand-new black-and-white bungalow on Tanglin Road. Originally from Melbourne, the family had been living in a serviced apartment at Great World for the past two months. Brandon is a shareholder and director of one of the leading dairy trading companies in Australia. He was the founder and managing director of the company before moving to Singapore to expand the company’s Asian business.
Black-and-white bungalows were built during the British colonial period in the early 1900s, and are characterised by their sprawling gardens, white-washed exterior walls with black timber frames, arched driveways and spacious interiors with high ceilings and wood flooring. And, they are much sought after by expatriate families.
It appears they are one property type that is still relatively resilient in the current market downturn, unlike condominiums. Listening to the Batagols, one understands why. “It’s a dream,” says Brandon, gesturing at his new home. “But you have to be lucky because they don’t become available too often. It’s all about demand.”
After looking at almost 100 homes since last September — ranging from apartments to good class bungalows (GCB), and black-and-white bungalows, Gabrielle says, “I was open to anything, but I kept coming back to the black-and-whites.” In their first attempt last month at bidding for such a bungalow under the SLA open-bidding system, the Batagols did not secure the bungalow at 30 Malcolm Road — three of the top five bids came in above $20,000. When the next property — the black-and-white on Tanglin Road — came up for bidding, the Batagols had already done their research and armed with their earlier experience, secured the bungalow with the highest bid of $20,189 a month, according to the SLA open bidding results (see table).
SLA introduced the open-bidding system for new tenancies of its residential properties in late 2007 to increase transparency. When its residential properties become available for rent, they are posted on the SLA website. Rental rates are determined by market forces with guide rents provided to assist bidders, says Teo Cher Hian, SLA’s director of land lease (private) division. Prior to that, tenancies were awarded on a first-come first-served basis under a waiting list or balloting system.
“State-owned black-and-white properties are a unique product in the residential market,” says Teo. Also, they are in very limited supply, with just 300 units scattered across Singapore today, mainly in Adam Park Estate, Alexandra Park, Lornie Road, Seletar Airbase and Sembawang. Demand for such bungalows has remained relatively healthy and their occupancy rate is still over 90% today.
Despite the current market scenario of softening rents, the blackand- whites continue to see “good response”, says DTZ, the marketing agent for the black-and-white bungalow at 25 Nassim Road. It was put up for lease in the open bidding system, with bidding to start on March 30 and closing on April 3. The guide rent is $13,500 a month. Gabrielle says some of her friends who have visited her new house are now looking to bid for the one at Nassim.
RENTAL STABILITY
Apart from their charm, the other draw of black and whites is that, being state-owned, their rental rates are perceived to be more stable than those of houses that are privately owned. “What we heard is that with SLA as the landlord, they are much more understanding and much more realistic,” says Brandon. “So, even in a down market, the rate would be adjusted downward accordingly, and conversely, in a rising market, rentals are not going to jump by 100%, so it’s much more secure.”
Brandon, who has many friends who have already lived in Singapore for the last three to five years, is familiar with the story of expatriates’ rental woes when the property market was booming two years ago. “What happened to them was that they would have a lease of, say, $10,000 for two years, and when the lease was up, their landlord would increase their rent by 70% to 80%,” he says. “So, a $10,000-a-month lease suddenly became $18,000 a month, and they couldn’t afford it. Or, some of them had $20,000-a-month leases, and suddenly it was $35,000 a month and they had to move out.”
The Batagols have also done their research on how much they need to invest in their new home and budgeted how much it will cost to maintain it. Having friends already living in such black-and-whites also helps. Many of these houses have just basic lighting and ceiling fans. The new tenants have to install their own airconditioning units, wardrobes for the bedrooms, water heaters, telephone lines, Internet connection, swimming pool, pool deck and gazebo. “We’re investing in a lifestyle,” says Brandon. “We can’t do this in Australia, and even in Singapore, it’s unusual as well.”
One drawback about living in a black-and-white house is that after investing in all the fittings, when the tenants leave, they are required to reinstate the house to its original condition — that means removing the airconditioning units, the water heaters, the phone connections, and even the swimming pool and pool deck. For instance, the same company that installed the swimming pool for the previous tenants, and then took it out, is back at the house installing a bigger pool for the Batagols. “We’re spending quite a bit of money to make everything good quality, and when we leave, an option would be to sell it to the new tenants,” says Brandon. However, that’s subject to an assessment by one of the three agents appointed by SLA — EM Services, DTZ or United Premas.
There is also a cluster of 33 such state-owned black-and-white bungalows in the Mount Pleasant area, and these are managed by The Ascott Group, the serviced apartment arm of CapitaLand. Called The Heritage, they also continue to see strong demand “as they are rich in character and history, and are set in a lovely environment”, says Gerald Lee, CEO of Ascott Hospitality, the hospitality management arm of The Ascott Group. Given the limited number of such bungalows, they are popular with diplomats and senior executives of MNCs, says Lee. According to him, like the other black-and-whites elsewhere, those in Mount Pleasant also enjoy close to full occupancy.
Instead of a softening in rents, Lee says, rents have increased for renewals — some by “double-digit percentages”. However, he points out that these double-digit percentage increments were mainly for renewal of tenancies signed in 2005 and 2006, when rental rates were still relatively low. Current montly leases for the bungalows in the Mount Pleasant area are said to range from $20,000 to nearly $40,000.
Rental rates at Mount Pleasant are said to be based on various factors, including benchmarking with SLA’s black-and-white bungalows of a similar category and location, as well as demand. “We will monitor the market closely before making suitable adjustments to rents,” says Lee. “These black-and-white bungalows have a charm of their own,” says Sandy Sin, head of corporate leasing and the Regal Homes team at Knight Frank. “Many are homes to the CEOs of multinational firms.”
GCB RENTS DECLINE
The number of black-and-whites is dwindling as they are being torn down to make way for new construction — for instance at Seletar to make way for the Seletar Aerospace Park, an industrial park for aerospace companies. Hence, the number has been reduced from 500 to 700 such bungalows two years ago, to just 300 today.
The closest comparison to the black-and-whites in the private-housing market are GCBs, which have a minimum land area of 15,070 sq ft. There are around 2,000 to 2,500 GCBs today, and the number will only increase through the subdivision of larger GCB plots. Housing agents in the GCB market are seeing housing budgets for senior expatriate executives being slashed as well. This is especially noticeable when leases come up for renewal, says Knight Frank’s Sin.
For instance, those currently staying in palatial GCBs with rents of $30,000 to $32,000 a month are now looking at rents of $25,000 to $27,000 a month. Meanwhile, those currently paying $25,000 to $28,000 a month are looking at the $20,000 to $22,000 bracket. “There are very few who are now looking at rents of $25,000 and above,” she says. “The most common is now in the $20,000 to $22,000 range, and even that number is limited.”
SLA’s Teo is of the opinion that it isn’t appropriate to compare state bungalows with privately owned GCB as they have different attributes and, unlike the GCB market, “we have not discerned any significant changes, neither in the demand nor the bids for them”.
In the Gallop area, a GCB with land area of around 16,000 sq ft and builtup area of 5,500 sq ft to 6,000 sq ft is still asking for $28,000 to $30,000 a month in rent, while a GCB of similar size in Cornwall Gardens is asking for $26,000 a month, says Knight Frank’s Sin. “We’re trying to manage the expectations of GCB landlords and preparing them to accept lower rents, especially for leases that are coming up for renewal,” says Sin.
Patrick Lai, associate director of corporate residential leasing at Savills Singapore says he hasn’t seen a significant drop in demand for GCBs among senior expatriate executives yet. Just two weekends ago, he closed on the lease of a GCB with a land area of 16,000 sq ft in Mount Echo Park for close to $30,000. In February, he also housed a new expatriate tenant in a GCB on Swettenham Road with a monthly rent of $30,000. The highest rent he’s ever transacted was for a GCB in the Holland area that was leased at $45,000 a month just last September. It was a lease renewal from $27,000 a month previously, says Lai.
Lai predicts rental rates of GCBs will drop 15% this year. However, he does not see rental rates of GCBs nosediving the way it has for luxury condominiums. “The bottom line is that it all boils down to demand and supply,” he says. There are a limited number of GCBs, and therefore they will be able to hold better in terms of rents, reckons Lai. In contrast, newly completed condominium projects yield several hundred new units each, with numerous landlords competing for tenants. “And, that immediately puts pressure on rental rates.”
State-owned black-and-white bungalows are even more niche, and the rents for such bungalows of the same size are generally lower than GCBs in the same location, concedes Savills’ Lai. However, with asking rents of GCBs softening and 15,000 sq ft to 16,000 sq ft GCBs now asking for $22,000 a month versus $27,000 six months ago, “tenants have more choices than before — it’s a tenants market now”, says Lai. “Two years back, and even a year ago, it was still a landlord’s market,” he adds.
With expatriate housing budgets having dropped about 20% this year, “it will all balance out,” says Lai. “For sure, housing allowances have been adjusted downward, but [landlords’] sentiments and expectations have also been revised downward.”
To Lai, the litmus test on the health of the GCB market will be in June, which is the end of the school year for international schools. “I expect to see some movement then,” he says. For the black-and-whites, it will be when leases come up for renewal.
As for the Batagols, the family is looking forward to settling into their new home in Tanglin with its 5,457 sq ft double-storey house, a sprawling 59,202 sq ft garden and a brandnew swimming pool. “It’s a dream come true to have a house with a nice big area with a lot of green, where the children can run around or cycle when they come home from school,” says Brandon.
Source : The Edge - 29 Mar 2009
Sunday, March 29, 2009
New, cheaper private condos see brisk sales
Posted by goldenpeace on 29-Mar-2009
Despite the recent slump in the property market, new private properties are still being snapped up in the market.
Last month’s sales of new private homes jumped to 1,323 units, harking back to the days of the property boom, said observers.
In January, only 108 units were sold.
The figure was largely propped up by two newly launched heartland condominiums - the 293-unit Alexis at Alexandra Road and the 517-unit Caspian in Jurong.
Prices started from $450,000 at Alexis and $340,000 at Caspian.
‘Developers probably realised after January’s dismal sales that they had to lower their prices, while buyers noticed these discounts and decided to buy,’ said PropNex’s corporate communications manager Adam Tan.
According to CBRE Research executive director Li Hiaw Ho, the majority of last month’s buyers were HDB upgraders who put buying on hold while home prices surged in 2006 and 2007.
He estimated that private home sales this month would come up to about 400 to 600 units, bringing the total number of units sold to 1,800 to 2,000 for the January to March quarter.
‘A few projects are still selling fairly well, but they are not as large-scale as the projects launched last month,’ said Mr Li, who predicted that sales figures are likely to hover around 500 to 700 units a month for the second quarter of the year.
Developments that are anticipated to do well this month include Waterfront Waves in Bedok, which was first launched last year but relaunched in the middle of March, and Mi Casa condominium in Choa Chu Kang, which analysts are expecting to be launched at the end of the month.
They have 457 and 405 units respectively.
The rate of new launches this month is likely to be similar to last month’s, said Dr Chua Yang Liang, the head of research and consultancy at Jones Lang LaSalle Singapore.
‘This is backed by housing developers’ confidence in the latent demand by genuine homebuyers, encouraging them to release more,’ he said.
However, the islandwide take-up rate this month could dip as the market has been rather temperamental, especially in light of the volatile global stock market performance, he said.
So when is the right time to buy?
‘Many people ask that question but they should really be asking themselves where they want to buy, what they are buying it for, and what are their risk profiles,’ said PropNex’s Mr Tan.
‘Don’t buy blindly just because the price is good. As some of these places have two or three years till their completion, one should also consider the property’s surroundings, such as existing or future infrastructure. Go into this investment with about five to 10 years in mind.’
Source : Sunday Times - 29 Mar 2009
Despite the recent slump in the property market, new private properties are still being snapped up in the market.
Last month’s sales of new private homes jumped to 1,323 units, harking back to the days of the property boom, said observers.
In January, only 108 units were sold.
The figure was largely propped up by two newly launched heartland condominiums - the 293-unit Alexis at Alexandra Road and the 517-unit Caspian in Jurong.
Prices started from $450,000 at Alexis and $340,000 at Caspian.
‘Developers probably realised after January’s dismal sales that they had to lower their prices, while buyers noticed these discounts and decided to buy,’ said PropNex’s corporate communications manager Adam Tan.
According to CBRE Research executive director Li Hiaw Ho, the majority of last month’s buyers were HDB upgraders who put buying on hold while home prices surged in 2006 and 2007.
He estimated that private home sales this month would come up to about 400 to 600 units, bringing the total number of units sold to 1,800 to 2,000 for the January to March quarter.
‘A few projects are still selling fairly well, but they are not as large-scale as the projects launched last month,’ said Mr Li, who predicted that sales figures are likely to hover around 500 to 700 units a month for the second quarter of the year.
Developments that are anticipated to do well this month include Waterfront Waves in Bedok, which was first launched last year but relaunched in the middle of March, and Mi Casa condominium in Choa Chu Kang, which analysts are expecting to be launched at the end of the month.
They have 457 and 405 units respectively.
The rate of new launches this month is likely to be similar to last month’s, said Dr Chua Yang Liang, the head of research and consultancy at Jones Lang LaSalle Singapore.
‘This is backed by housing developers’ confidence in the latent demand by genuine homebuyers, encouraging them to release more,’ he said.
However, the islandwide take-up rate this month could dip as the market has been rather temperamental, especially in light of the volatile global stock market performance, he said.
So when is the right time to buy?
‘Many people ask that question but they should really be asking themselves where they want to buy, what they are buying it for, and what are their risk profiles,’ said PropNex’s Mr Tan.
‘Don’t buy blindly just because the price is good. As some of these places have two or three years till their completion, one should also consider the property’s surroundings, such as existing or future infrastructure. Go into this investment with about five to 10 years in mind.’
Source : Sunday Times - 29 Mar 2009
Friday, March 27, 2009
CDL sells 60 units in The Arte at Thomson
Posted by goldenpeace on 27-Mar-2009
CITY Developments Ltd (CDL) sold about 60 apartments at its 336-unit project The Arte at Thomson last weekend.
The developer said yesterday that the average selling price was $880 per sq foot (psf). It released 100 units during the ‘private preview’ and will release more this weekend.
The freehold project comprises two-, three- and four-bedroom apartments, as well as penthouses. Most of the units sold last weekend were smaller two- and three-bedders.
Unlike other recently launched projects, units at The Arte are large, which means buyers have to fork out more.
For example, two-bedders are 1,055 sq ft and three-bedders range from 1,399 sq ft to 1,625 sq ft. Assuming $880 psf for a two-bedder, the price of the smallest unit would be $928,400.
But according to CDL general manager Chia Ngiang Hong: ‘The Arte offers superb value for a prime freehold property in the Thomson area. Buyers get a luxurious condo without paying a premium price.’
CDL is offering an interest absorption scheme.
Analysts expect more projects to be launched in coming weeks as developers try to capitalise on a recent surge in buying interest. They sold 1,323 new private homes last month - eleven times more than in January. Numbers are expected to be strong for March as well, on the back of sales at The Arte, and at UOL Group and Kheng Leong’s Simei condominium Double Bay Residences, where more than 200 units were sold this month.
Amid the buying surge, BT understands that Far East Organization is set to launch its mass market project Mi Casa. The 457-unit development near Choa Chu Kang MRT is expected to be popular with HDB upgraders in neighbouring estates.
Separately, Tee International and Hup Soon Global said that they are teaming up with a Bangkok-based company for the Singapore launch of a freehold luxury condominium located in the Thai capital. The Surawong will be launched this weekend at the Grand Hyatt Hotel here.
Source : Business Times - 27 Mar 2009
CITY Developments Ltd (CDL) sold about 60 apartments at its 336-unit project The Arte at Thomson last weekend.
The developer said yesterday that the average selling price was $880 per sq foot (psf). It released 100 units during the ‘private preview’ and will release more this weekend.
The freehold project comprises two-, three- and four-bedroom apartments, as well as penthouses. Most of the units sold last weekend were smaller two- and three-bedders.
Unlike other recently launched projects, units at The Arte are large, which means buyers have to fork out more.
For example, two-bedders are 1,055 sq ft and three-bedders range from 1,399 sq ft to 1,625 sq ft. Assuming $880 psf for a two-bedder, the price of the smallest unit would be $928,400.
But according to CDL general manager Chia Ngiang Hong: ‘The Arte offers superb value for a prime freehold property in the Thomson area. Buyers get a luxurious condo without paying a premium price.’
CDL is offering an interest absorption scheme.
Analysts expect more projects to be launched in coming weeks as developers try to capitalise on a recent surge in buying interest. They sold 1,323 new private homes last month - eleven times more than in January. Numbers are expected to be strong for March as well, on the back of sales at The Arte, and at UOL Group and Kheng Leong’s Simei condominium Double Bay Residences, where more than 200 units were sold this month.
Amid the buying surge, BT understands that Far East Organization is set to launch its mass market project Mi Casa. The 457-unit development near Choa Chu Kang MRT is expected to be popular with HDB upgraders in neighbouring estates.
Separately, Tee International and Hup Soon Global said that they are teaming up with a Bangkok-based company for the Singapore launch of a freehold luxury condominium located in the Thai capital. The Surawong will be launched this weekend at the Grand Hyatt Hotel here.
Source : Business Times - 27 Mar 2009
How to participate in an auction sale
Posted by goldenpeace on 27-Mar-2009
LOOK out for advertisements in the classified pages as auction houses usually advertise one to two weeks before the scheduled auction date.
~ Alternatively, you can call the auction house and ask to be put on its mailing list so that you are kept posted of the auctions on a regular basis.
~ Call the auctioneer to make an appointment for viewing.
~ Obtain a copy of the property’s particulars and conditions of sale, that is, whether it is to be sold with tenancy/vacant possession and the completion period for the sale.
~ Do your homework. Check the valuation figure with the bank and the quantum it is prepared to finance. Some banks have mobile teams who can visit your home and are able to revert within three days with an in-principle approval for your loan.
~ Determine the price that you are willing to bid for the property and discuss it with the auctioneer.
~ Arrive early on the day of the auction to get a seat so that you can bid in comfort. Due to the overwhelming response, latecomers may not be able to get into the auction room.
~ Bring your cheque book and identity card as you have to pay the deposit and sign the sale and purchase agreement immediately if you are the successful purchaser.
Source : Business Times - 26 Mar 2009
LOOK out for advertisements in the classified pages as auction houses usually advertise one to two weeks before the scheduled auction date.
~ Alternatively, you can call the auction house and ask to be put on its mailing list so that you are kept posted of the auctions on a regular basis.
~ Call the auctioneer to make an appointment for viewing.
~ Obtain a copy of the property’s particulars and conditions of sale, that is, whether it is to be sold with tenancy/vacant possession and the completion period for the sale.
~ Do your homework. Check the valuation figure with the bank and the quantum it is prepared to finance. Some banks have mobile teams who can visit your home and are able to revert within three days with an in-principle approval for your loan.
~ Determine the price that you are willing to bid for the property and discuss it with the auctioneer.
~ Arrive early on the day of the auction to get a seat so that you can bid in comfort. Due to the overwhelming response, latecomers may not be able to get into the auction room.
~ Bring your cheque book and identity card as you have to pay the deposit and sign the sale and purchase agreement immediately if you are the successful purchaser.
Source : Business Times - 26 Mar 2009
Thursday, March 26, 2009
Sifting for gems
Posted by goldenpeace on 26-Mar-2009
There’s nothing like a quiet property market to start looking for that dream house. Or to begin doing research on buying that investment property which can turn into a cash cow to help see one through the golden years. With attractive loan packages offered by banks and interest absorption schemes extended by developers, some potential home buyers may find they can make the numbers work for them.
Tenants may also look forward to renewing leases at more earth-bound rental rates, whether it’s for condos or prime offices.
But do your homework before getting carried away with the euphoria of wanting to strike a good deal with your landlord. Office occupiers in particular will have to take into account considerations like pressures to cut costs immediately even though the leases may expire only next year. A mutually beneficial lease restructuring could result in a win-win situation for both tenant and landlord.
And for those eyeing overseas properties, a mix of price declines and currency movements could make an appealing cocktail. For instance, London residential real estate prices have fallen 20-30 per cent from the bubble heights in late 2007. Combined with a weak sterling, prices for Singaporeans and other foreign investors are at 40 to 60 per cent discounts from the top.
Articles in this supplement should provide you some guidance in your quest to unearth real estate gems during this slump.
Of course, it would be wise to adopt an investment time-frame of at least five to seven years. As even some veteran developers advise from time to time, buying a property should be a long-term commitment, not a short-term flip motivated by prospects of reaping overnight gains. This lesson is being learnt all too painfully once again.
Source : Business Times - 26 Mar 2009
There’s nothing like a quiet property market to start looking for that dream house. Or to begin doing research on buying that investment property which can turn into a cash cow to help see one through the golden years. With attractive loan packages offered by banks and interest absorption schemes extended by developers, some potential home buyers may find they can make the numbers work for them.
Tenants may also look forward to renewing leases at more earth-bound rental rates, whether it’s for condos or prime offices.
But do your homework before getting carried away with the euphoria of wanting to strike a good deal with your landlord. Office occupiers in particular will have to take into account considerations like pressures to cut costs immediately even though the leases may expire only next year. A mutually beneficial lease restructuring could result in a win-win situation for both tenant and landlord.
And for those eyeing overseas properties, a mix of price declines and currency movements could make an appealing cocktail. For instance, London residential real estate prices have fallen 20-30 per cent from the bubble heights in late 2007. Combined with a weak sterling, prices for Singaporeans and other foreign investors are at 40 to 60 per cent discounts from the top.
Articles in this supplement should provide you some guidance in your quest to unearth real estate gems during this slump.
Of course, it would be wise to adopt an investment time-frame of at least five to seven years. As even some veteran developers advise from time to time, buying a property should be a long-term commitment, not a short-term flip motivated by prospects of reaping overnight gains. This lesson is being learnt all too painfully once again.
Source : Business Times - 26 Mar 2009
Tuesday, March 24, 2009
Govt reviewing ways to strengthen regulation of housing agents
Posted by goldenpeace on 24-Mar-2009
SINGAPORE : The government is reviewing ways to strengthen the regulatory framework for housing agents.
Speaking in Parliament on Tuesday, Senior Minister of State for Finance and Transport, Lim Hwee Hua, said government bodies - including the Housing and Development Board and the Finance Ministry - are carrying out a review on how to raise the overall professional standards of housing agents here.
Mrs Lim said: "The government notes that the current state of the industry is not satisfactory. Indeed there have been frequent complaints against unscrupulous housing agents. Amongst other things, there is a need for greater control by the housing agencies over the conduct of agents."
The assessment will cover areas such as qualification and training requirements as well as a dispute resolution mechanism.
It will also look at an enforcement framework against agencies with errant agents.
Mrs Lim said the government will announce details when the review is completed.
Source - 938LIVE/ms
SINGAPORE : The government is reviewing ways to strengthen the regulatory framework for housing agents.
Speaking in Parliament on Tuesday, Senior Minister of State for Finance and Transport, Lim Hwee Hua, said government bodies - including the Housing and Development Board and the Finance Ministry - are carrying out a review on how to raise the overall professional standards of housing agents here.
Mrs Lim said: "The government notes that the current state of the industry is not satisfactory. Indeed there have been frequent complaints against unscrupulous housing agents. Amongst other things, there is a need for greater control by the housing agencies over the conduct of agents."
The assessment will cover areas such as qualification and training requirements as well as a dispute resolution mechanism.
It will also look at an enforcement framework against agencies with errant agents.
Mrs Lim said the government will announce details when the review is completed.
Source - 938LIVE/ms
Monday, March 23, 2009
Rents in prime areas head south
Posted by goldenpeace on 23-Mar-2009
Tenants looking for apartments in prime districts are having it good as rents there head south.
Right now, rentals of these units are falling faster than those in the mass market.
Among the reasons: New supplies have entered the market. A number of new condominiums have sprung up in prime districts - many of which have been bought by investors planning to rent out their units - in the past year.
Also given the economic downturn, some expatriates are leaving while others have their housing budgets cut. So landlords in prime districts 9, 10 and 11 face the need to bring down their rents come renewal time so as to keep their tenants.
Prime rents are now halfway through heading south, said Cushman & Wakefield Singapore managing director Donald Han.
‘We expect the rents in districts 9, 10 and 11 to come down by close to 15 per cent this year,’ he said.
‘From the middle of last year till now, they would have fallen by 15 per cent to 20 per cent. We are seeing an outflow (of expat tenants), not an inflow. It’s a net exodus.’
Rents in non-prime and suburban areas have also fallen by 15 per cent to 20 per cent and are set to slip by another 10 per cent this year, said Mr Han.
It will be a comparatively smaller fall because there are not as many units available for rent in these areas compared with prime areas, he said.
Another property consultancy, Jones Lang LaSalle, said residential rents have fallen by about 10 per cent to 30 per cent across the island so far this quarter, compared with last year’s fourth quarter.
Rents of prime properties have dipped by an average of 15 per cent quarter-on-quarter, it said.
There was additional pressure on rents at The Sail, a huge 1,111-unit condominium in downtown Marina Bay, as more and more units entered the leasing market, said Jones Lang LaSalle’s head of residential, Singapore, Ms Jacqueline Wong.
Unit owners started collecting their keys from the middle of last year.
For instance, the transacted rents for one-bedroom units of 690sq ft in size now stand at $3,200 a month, down from $4,500 in June last year, said MsWong.
Other recently completed condos include Domain 21 in Delta Road, The Beacon in Cantonment Road, The Azure in Sentosa Cove and St Regis Residences in Tanglin.
Condos like Rivergate in Robertson Quay have just joined the list, offering plenty of new units for lease.
There is increasing rental pressure on the still vacant units in recently completed prime projects, such as the super-luxurious, 173-unit St Regis, where a lot of units, including large penthouses, are up for rent.
Anecdotal evidence suggests the St Regis rents start at $7,500 for the smallest three-bedroom, 1,507 sq ft unit and $20,000 for the 3,757 sq ft, four-bedroom unit, which will put the starting rents for such sizes at just between $5 per sq ft (psf) and $5.30 psf a month.
Jones Lang LaSalle Research’s average rent record for Grange Residences, a prime but slightly older condo, is at $6.20 psf per month at the end of last year.
‘There are now too many apartments chasing too few tenants,’ said Chesterton Suntec International’s head of research and consultancy, Mr Colin Tan.
In particular, the older prime condos that developers bought collectively and are now keeping for lease are suffering more, as their conditions may not warrant market rents, experts say.
The rental market for private homes is in ‘a state of flux’ at the moment, said Mr Tan.
‘The rental you are quoted this month can and does change, so much so that some tenants whose leases are expiring soon are seeking temporary extensions - three to six months - to their current lease before settling on something more permanent. The savings can be substantial,’ Mr Tan said.
Given this situation, Mr Han advised landlords to be flexible.
‘Sometimes, it is better to find a tenant who is willing to take up the property early at a slightly reduced rental than to keep it empty.’
Property consultants say that, for now, high-end homes are still able to secure tenants as falling rents have attracted new tenants.
‘We are seeing some movements of tenants from outside the central area coming in,’ said Mr Han.
But the falling rents of such flats may result in more owners dipping into their own pockets to help foot their monthly mortgage payments instead of relying on just the rent.
Currently, with mortgage rates still reasonably attractive, landlords should still be able to cover much of their instalment payment at today’s rentals, said Mr Han.
‘However, for the high-end properties completing in the second half of this year, the potential rental income may not be sufficient to cover mortgage payments,’ he said.
Source : Sunday Times - 22 Mar 2009
Tenants looking for apartments in prime districts are having it good as rents there head south.
Right now, rentals of these units are falling faster than those in the mass market.
Among the reasons: New supplies have entered the market. A number of new condominiums have sprung up in prime districts - many of which have been bought by investors planning to rent out their units - in the past year.
Also given the economic downturn, some expatriates are leaving while others have their housing budgets cut. So landlords in prime districts 9, 10 and 11 face the need to bring down their rents come renewal time so as to keep their tenants.
Prime rents are now halfway through heading south, said Cushman & Wakefield Singapore managing director Donald Han.
‘We expect the rents in districts 9, 10 and 11 to come down by close to 15 per cent this year,’ he said.
‘From the middle of last year till now, they would have fallen by 15 per cent to 20 per cent. We are seeing an outflow (of expat tenants), not an inflow. It’s a net exodus.’
Rents in non-prime and suburban areas have also fallen by 15 per cent to 20 per cent and are set to slip by another 10 per cent this year, said Mr Han.
It will be a comparatively smaller fall because there are not as many units available for rent in these areas compared with prime areas, he said.
Another property consultancy, Jones Lang LaSalle, said residential rents have fallen by about 10 per cent to 30 per cent across the island so far this quarter, compared with last year’s fourth quarter.
Rents of prime properties have dipped by an average of 15 per cent quarter-on-quarter, it said.
There was additional pressure on rents at The Sail, a huge 1,111-unit condominium in downtown Marina Bay, as more and more units entered the leasing market, said Jones Lang LaSalle’s head of residential, Singapore, Ms Jacqueline Wong.
Unit owners started collecting their keys from the middle of last year.
For instance, the transacted rents for one-bedroom units of 690sq ft in size now stand at $3,200 a month, down from $4,500 in June last year, said MsWong.
Other recently completed condos include Domain 21 in Delta Road, The Beacon in Cantonment Road, The Azure in Sentosa Cove and St Regis Residences in Tanglin.
Condos like Rivergate in Robertson Quay have just joined the list, offering plenty of new units for lease.
There is increasing rental pressure on the still vacant units in recently completed prime projects, such as the super-luxurious, 173-unit St Regis, where a lot of units, including large penthouses, are up for rent.
Anecdotal evidence suggests the St Regis rents start at $7,500 for the smallest three-bedroom, 1,507 sq ft unit and $20,000 for the 3,757 sq ft, four-bedroom unit, which will put the starting rents for such sizes at just between $5 per sq ft (psf) and $5.30 psf a month.
Jones Lang LaSalle Research’s average rent record for Grange Residences, a prime but slightly older condo, is at $6.20 psf per month at the end of last year.
‘There are now too many apartments chasing too few tenants,’ said Chesterton Suntec International’s head of research and consultancy, Mr Colin Tan.
In particular, the older prime condos that developers bought collectively and are now keeping for lease are suffering more, as their conditions may not warrant market rents, experts say.
The rental market for private homes is in ‘a state of flux’ at the moment, said Mr Tan.
‘The rental you are quoted this month can and does change, so much so that some tenants whose leases are expiring soon are seeking temporary extensions - three to six months - to their current lease before settling on something more permanent. The savings can be substantial,’ Mr Tan said.
Given this situation, Mr Han advised landlords to be flexible.
‘Sometimes, it is better to find a tenant who is willing to take up the property early at a slightly reduced rental than to keep it empty.’
Property consultants say that, for now, high-end homes are still able to secure tenants as falling rents have attracted new tenants.
‘We are seeing some movements of tenants from outside the central area coming in,’ said Mr Han.
But the falling rents of such flats may result in more owners dipping into their own pockets to help foot their monthly mortgage payments instead of relying on just the rent.
Currently, with mortgage rates still reasonably attractive, landlords should still be able to cover much of their instalment payment at today’s rentals, said Mr Han.
‘However, for the high-end properties completing in the second half of this year, the potential rental income may not be sufficient to cover mortgage payments,’ he said.
Source : Sunday Times - 22 Mar 2009
Saturday, March 21, 2009
KepLand defers construction of Marina Bay Suites
Posted by goldenpeace on 21-Mar-2009
KEPPEL Land is deferring construction of the highly touted Marina Bay Suites (in which it has one-third stake) as well as Madison Residences in Bukit Timah, citing ‘current market conditions’. KepLand is developing the 221-unit Marina Bay Suites jointly with Cheung Kong Holdings/Hutchison Whampoa and Hongkong Land.
In a filing with the Singapore Exchange yesterday, KepLand announced construction deferral of the 56-unit Madison Residences on the former Naga Court site in Bukit Timah.
The group had earlier managed to sell just one unit in the project, at about $1,740 per square foot, in the second half of last year. However, a KepLand spokeswoman told BT yesterday that the sale of that unit has been cancelled by mutual agreement. ‘We are unable to provide details due to confidentiality,’ she added. When asked, she also revealed that ‘a decision has been made to defer the commencement of the main construction of Marina Bay Suites’. However, construction of another of the group’s residential projects in Singapore, The Promont, located in Cairnhill, will continue.
It has been one postponement after another for Marina Bay Suites because of deteriorating sentiment in the high-end residential sector. The tripartite partnership developing the condo had initially hoped to launch the project around end-January last year, but this was delayed to later the same quarter, and even then, that did not happen. The project has not been launched to date.
KepLand’s spokeswoman did not say how long the construction deferments for Marina Bay Suites and Madison Residences will be.
In its release to SGX, KepLand said the construction deferment for Madison Residences is not expected to have any significant impact on the consolidated earnings per share and net tangible asset per share of the company for the current financial year ending Dec 31, 2009.
Separately, construction group KSH Holdings also said in a statutory filing with SGX yesterday that it has agreed to the request of Keppel Land Realty to defer the construction of Madison Residences. The delay is not expected to have any material effect on KSH for the financial year ending March 31, 2009. KSH announced in April last year that it had won a $53 million contract from Keppel Land Realty relating to the construction of Madison Residences.
In January, Keppel Land’s group chief executive Kevin Wong said the group will conduct a review to see if it can delay building some of its projects. ‘We are reviewing our operation costs as well as the project costs of all our development projects to trim fat and conserve cash, so that we can invest in any attractive opportunities that come along. ‘This cost review exercise could include developing projects in phases to meet demand and even temporarily suspending the entire project if it does not add value to the company under current market conditions,’ Mr Wong said then. Projects that are yet to be launched for sale are those that are most likely to be delayed both in Singapore and abroad, he added.
KepLand’s earnings for the year ended Dec 31, 2008 fell 70.8 per cent to $227.7 million, from $779.7 million in FY 2007.
Source : Business Times - 21 Mar 2009
KEPPEL Land is deferring construction of the highly touted Marina Bay Suites (in which it has one-third stake) as well as Madison Residences in Bukit Timah, citing ‘current market conditions’. KepLand is developing the 221-unit Marina Bay Suites jointly with Cheung Kong Holdings/Hutchison Whampoa and Hongkong Land.
In a filing with the Singapore Exchange yesterday, KepLand announced construction deferral of the 56-unit Madison Residences on the former Naga Court site in Bukit Timah.
The group had earlier managed to sell just one unit in the project, at about $1,740 per square foot, in the second half of last year. However, a KepLand spokeswoman told BT yesterday that the sale of that unit has been cancelled by mutual agreement. ‘We are unable to provide details due to confidentiality,’ she added. When asked, she also revealed that ‘a decision has been made to defer the commencement of the main construction of Marina Bay Suites’. However, construction of another of the group’s residential projects in Singapore, The Promont, located in Cairnhill, will continue.
It has been one postponement after another for Marina Bay Suites because of deteriorating sentiment in the high-end residential sector. The tripartite partnership developing the condo had initially hoped to launch the project around end-January last year, but this was delayed to later the same quarter, and even then, that did not happen. The project has not been launched to date.
KepLand’s spokeswoman did not say how long the construction deferments for Marina Bay Suites and Madison Residences will be.
In its release to SGX, KepLand said the construction deferment for Madison Residences is not expected to have any significant impact on the consolidated earnings per share and net tangible asset per share of the company for the current financial year ending Dec 31, 2009.
Separately, construction group KSH Holdings also said in a statutory filing with SGX yesterday that it has agreed to the request of Keppel Land Realty to defer the construction of Madison Residences. The delay is not expected to have any material effect on KSH for the financial year ending March 31, 2009. KSH announced in April last year that it had won a $53 million contract from Keppel Land Realty relating to the construction of Madison Residences.
In January, Keppel Land’s group chief executive Kevin Wong said the group will conduct a review to see if it can delay building some of its projects. ‘We are reviewing our operation costs as well as the project costs of all our development projects to trim fat and conserve cash, so that we can invest in any attractive opportunities that come along. ‘This cost review exercise could include developing projects in phases to meet demand and even temporarily suspending the entire project if it does not add value to the company under current market conditions,’ Mr Wong said then. Projects that are yet to be launched for sale are those that are most likely to be delayed both in Singapore and abroad, he added.
KepLand’s earnings for the year ended Dec 31, 2008 fell 70.8 per cent to $227.7 million, from $779.7 million in FY 2007.
Source : Business Times - 21 Mar 2009
Thursday, March 19, 2009
Credit squeeze as banks tighten home loan criteria
Posted by goldenpeace on 19-Mar-2009
GETTING a mortgage has become a far trickier proposition these days with banks tightening up loan criteria, with some owners being asked to stump up more cash when values fall.
Loans of 80 or even 90 per cent of a property’s value are still possible, especially if the buyer intends to live in the home, but investors on their second or third property are finding it tougher.
The banks’ moves come amid a real estate market hit hard by the economic crisis. Prices have fallen and are continuing to fall, forcing lenders to aggressively re-assess their loan criteria.
Once common, loans of 80 per cent are less so these days. Maybank, for instance, is granting loans of up to 70 per cent of valuation prices for its latest home loan fixed rate package.
Ms Ally Yang, a chief mortgage consultant at www.homeloan.com.sg, told The Straits Times: ‘It is very difficult to get 90 per cent financing nowadays. The banks need to see all the savings the customers have, to see if they are sufficient for the 10 per cent down payment and 24 months of instalment payments.’
Unlike Singaporean owner-occupiers, most investors as well as non-taxpayers will be able to get only up to 70 per cent financing, compared with 80 per cent last year, said Ms Yang.
Banks are becoming more careful on the eligibility condition and are doing more checks even as they compete for the good customers, she said.
It is even harder for investors, who have to pay a higher interest rate on loans than an owner-occupier - perhaps an extra loading of 0.25 per cent on the standard package, she added.
The squeeze is also forcing some buyers of new properties to think hard about their purchases, with experts warning them against holding off too long on taking loans in case prices fall.
Some owners are already having to shell out cash to make up the shortfall between their purchase prices and the valuation now. Take a home that you agreed to buy for $1 million, with a 20 per cent deposit and the assumption of obtaining a loan for $800,000.
If the valuation falls to $900,000, the 80 per cent portion is now $720,000. So you need to chip in $80,000, in addition to your $200,000 deposit, to make up the $1 million purchase price.
It is standard practice for banks to engage independent valuers to determine the market value of properties.
However, most new launches do not have this problem. Frasers Centrepoint’s Caspian in Jurong, for instance, sold 517 units out of 600 launched units last month - quite a feat these days.
‘In today’s market, developers will not want to launch at a price that cannot be matched by the banks,’ said PropNex chief executive Mohamed Ismail.
Most developers will check with valuers to see if their prices can be supported before they launch their projects, said DTZ executive director Ong Choon Fah.
‘For most new launches, particularly projects aimed at upgraders, banks would be able to match their selling prices,’ agreed Knight Frank’s executive director of residential, Mr Peter Ow.
More developers are linking with banks to offer the interest absorption scheme. This lets buyers defer the bulk of the price until completion, provided he takes a loan at the point of sale. First-time buyer Brandon Goh took it up and got 80 per cent financing for his $693,000 unit at Caspian last month.
Mr Ow, who is marketing Double Bay Residences in Simei, said buyers in the project can even get up to 90 per cent financing from DBS.
HSBC clients can get loans of up to 90 per cent valuation if ‘their financial profile…meets the bank’s criteria’, said its head of personal financial services, Mr Sebastian Arcuri.
Given that the market may soften further, experts say buyers of newly launched properties should commit to a home loan now, rather than later.
Said Mr Ismail: ‘It is in the interest of the buyer to lock in the value of their property as soon as possible. Generally, the value at new launches will be matched by the banks, but not necessarily down the road.’
Source : ST - 19 Mar 2009
GETTING a mortgage has become a far trickier proposition these days with banks tightening up loan criteria, with some owners being asked to stump up more cash when values fall.
Loans of 80 or even 90 per cent of a property’s value are still possible, especially if the buyer intends to live in the home, but investors on their second or third property are finding it tougher.
The banks’ moves come amid a real estate market hit hard by the economic crisis. Prices have fallen and are continuing to fall, forcing lenders to aggressively re-assess their loan criteria.
Once common, loans of 80 per cent are less so these days. Maybank, for instance, is granting loans of up to 70 per cent of valuation prices for its latest home loan fixed rate package.
Ms Ally Yang, a chief mortgage consultant at www.homeloan.com.sg, told The Straits Times: ‘It is very difficult to get 90 per cent financing nowadays. The banks need to see all the savings the customers have, to see if they are sufficient for the 10 per cent down payment and 24 months of instalment payments.’
Unlike Singaporean owner-occupiers, most investors as well as non-taxpayers will be able to get only up to 70 per cent financing, compared with 80 per cent last year, said Ms Yang.
Banks are becoming more careful on the eligibility condition and are doing more checks even as they compete for the good customers, she said.
It is even harder for investors, who have to pay a higher interest rate on loans than an owner-occupier - perhaps an extra loading of 0.25 per cent on the standard package, she added.
The squeeze is also forcing some buyers of new properties to think hard about their purchases, with experts warning them against holding off too long on taking loans in case prices fall.
Some owners are already having to shell out cash to make up the shortfall between their purchase prices and the valuation now. Take a home that you agreed to buy for $1 million, with a 20 per cent deposit and the assumption of obtaining a loan for $800,000.
If the valuation falls to $900,000, the 80 per cent portion is now $720,000. So you need to chip in $80,000, in addition to your $200,000 deposit, to make up the $1 million purchase price.
It is standard practice for banks to engage independent valuers to determine the market value of properties.
However, most new launches do not have this problem. Frasers Centrepoint’s Caspian in Jurong, for instance, sold 517 units out of 600 launched units last month - quite a feat these days.
‘In today’s market, developers will not want to launch at a price that cannot be matched by the banks,’ said PropNex chief executive Mohamed Ismail.
Most developers will check with valuers to see if their prices can be supported before they launch their projects, said DTZ executive director Ong Choon Fah.
‘For most new launches, particularly projects aimed at upgraders, banks would be able to match their selling prices,’ agreed Knight Frank’s executive director of residential, Mr Peter Ow.
More developers are linking with banks to offer the interest absorption scheme. This lets buyers defer the bulk of the price until completion, provided he takes a loan at the point of sale. First-time buyer Brandon Goh took it up and got 80 per cent financing for his $693,000 unit at Caspian last month.
Mr Ow, who is marketing Double Bay Residences in Simei, said buyers in the project can even get up to 90 per cent financing from DBS.
HSBC clients can get loans of up to 90 per cent valuation if ‘their financial profile…meets the bank’s criteria’, said its head of personal financial services, Mr Sebastian Arcuri.
Given that the market may soften further, experts say buyers of newly launched properties should commit to a home loan now, rather than later.
Said Mr Ismail: ‘It is in the interest of the buyer to lock in the value of their property as soon as possible. Generally, the value at new launches will be matched by the banks, but not necessarily down the road.’
Source : ST - 19 Mar 2009
Wednesday, March 18, 2009
Government to tighten rules for housing agents
Posted by goldenpeace on 18-Mar-2009
THE National Development Ministry is reviewing the framework that property agents work under given the recent spate of unethical practices that have surfaced.
Minister Mah Bow Tan told The Straits Times: ‘The status quo, in my view, is not tenable. I think we need to do something.’
The MND is looking to see if it could get property agencies to keep a closer watch on their agents, among other things.
‘Surely the agencies, who I believe share in the commissions of the agents, have a responsibility too. Whoever is offering a service for a fee must have a responsibility, a duty to maintain certain standards,’ he said.
It may even take even tougher measures if agencies do not rein in their agents, said Mr Mah.
‘We have to see how agents do not mislead, and if they do mislead, they engage in unlawful practices, what action we can take against them.’
This is the first time that the Government has hinted at the possibility of mandatory regulations for the real estate industry. For years, it has maintained that the industry should regulate itself despite the fact that various such attempts have been found lacking.
Although housing agencies are licensed by the Inland Revenue Authority of Singapore, the over 20,000 housing agents here are not regulated. They do not need to meet minimum standards and can continue in the trade even if they are found to have done wrong.
In a highly publicised case last month, a couple took ERA Realty Network to court after they sold their downtown apartment for $688,000 in 2007 and learned subsequently that their home was bought and resold by the wife of their agent’s boss for $945,000. The couple won the case and have since received the difference of $257,000 back from ERA.
ERA had argued during the case that the agency was not liable for the actions of its agents because they are considered independent contractors.
Years of infighting have left housing agencies unable to agree on common standards for self-regulation.
The Institute of Estate Agents has only a small fraction of agents as its members and there is confusion over what it takes to be an accredited agency under the four-year-old Singapore Accredited Estate Agencies (SAEA) scheme.
The board behind the programme initially required accredited agencies to have all their agents pass the Common Exam for House Agents (Ceha) by this year, but introduced a scaled-down test called the Common Examination for Salespersons (CES) just before that deadline.
Mr Mah said: ‘I don’t think it worked well, based on all accounts…It’s not satisfactory. The whole current system is not satisfactory.’
His comments buoyed industry players like Mr Jeff Foo, the president of the Institute of Estate Agents, who said: ‘It’s about time for a change. We have to do things in the interests of the consumer.’
But the chairman of the SAEA, Mr Peter Koh, maintained that voluntary accreditation was making ’satisfactory progress’. About 300 agencies with more than 6,000 agents under them have been accredited so far.
‘With government support, we can do better. We are doing our level best given that it’s so fragmented.’
Source : ST - 18 Mar 2009
THE National Development Ministry is reviewing the framework that property agents work under given the recent spate of unethical practices that have surfaced.
Minister Mah Bow Tan told The Straits Times: ‘The status quo, in my view, is not tenable. I think we need to do something.’
The MND is looking to see if it could get property agencies to keep a closer watch on their agents, among other things.
‘Surely the agencies, who I believe share in the commissions of the agents, have a responsibility too. Whoever is offering a service for a fee must have a responsibility, a duty to maintain certain standards,’ he said.
It may even take even tougher measures if agencies do not rein in their agents, said Mr Mah.
‘We have to see how agents do not mislead, and if they do mislead, they engage in unlawful practices, what action we can take against them.’
This is the first time that the Government has hinted at the possibility of mandatory regulations for the real estate industry. For years, it has maintained that the industry should regulate itself despite the fact that various such attempts have been found lacking.
Although housing agencies are licensed by the Inland Revenue Authority of Singapore, the over 20,000 housing agents here are not regulated. They do not need to meet minimum standards and can continue in the trade even if they are found to have done wrong.
In a highly publicised case last month, a couple took ERA Realty Network to court after they sold their downtown apartment for $688,000 in 2007 and learned subsequently that their home was bought and resold by the wife of their agent’s boss for $945,000. The couple won the case and have since received the difference of $257,000 back from ERA.
ERA had argued during the case that the agency was not liable for the actions of its agents because they are considered independent contractors.
Years of infighting have left housing agencies unable to agree on common standards for self-regulation.
The Institute of Estate Agents has only a small fraction of agents as its members and there is confusion over what it takes to be an accredited agency under the four-year-old Singapore Accredited Estate Agencies (SAEA) scheme.
The board behind the programme initially required accredited agencies to have all their agents pass the Common Exam for House Agents (Ceha) by this year, but introduced a scaled-down test called the Common Examination for Salespersons (CES) just before that deadline.
Mr Mah said: ‘I don’t think it worked well, based on all accounts…It’s not satisfactory. The whole current system is not satisfactory.’
His comments buoyed industry players like Mr Jeff Foo, the president of the Institute of Estate Agents, who said: ‘It’s about time for a change. We have to do things in the interests of the consumer.’
But the chairman of the SAEA, Mr Peter Koh, maintained that voluntary accreditation was making ’satisfactory progress’. About 300 agencies with more than 6,000 agents under them have been accredited so far.
‘With government support, we can do better. We are doing our level best given that it’s so fragmented.’
Source : ST - 18 Mar 2009
Tuesday, March 17, 2009
Home sales surge on new launches
Posted by goldenpeace on 17-Mar-2009
SALES of new private homes surged dramatically last month to the sort of levels seen in the property boom.
However, some property analysts cautioned that the spike in sales to 1,323 units in February may have been a blip - attributable largely to two popular launches of mid-priced heartland condos.
Still, the new Urban Redevelopment Authority (URA) figures showed that last month’s bumper sales were equal to more than a quarter of all the sales of new private homes last year - 4,264 units.
The February figure is also a huge jump from the dismal 108 unit sales in January as buyers stayed away amid deepening economic gloom and Chinese New Year festivities.
‘It has been more than one year since we last saw total transactions surpassing the 1,000 mark,’ said Jones Lang LaSalle’s local director and head of research, South-east Asia, Dr Chua Yang Liang.
The launch of new units was also up sharply last month, to 1,069 units from just 204 units in January.
Analysts say two newly-launched heartland condos, Alexis and Caspian, proved especially popular with upgraders who had been biding their time amid the sharp run-up in prices during the boom.
All 293 units at Alexis in Alexandra Road were sold at a median price of $1,083 per sq ft (psf) while Caspian in Jurong sold 517 units at a median price of $603 psf. Prices started from $450,000 at Alexis and $340,000 at Caspian.
A third project, originally launched in 2006, The Quartz in Buangkok Drive, sold 168 units last month at a median price of $591 psf after it was relaunched at a lower price. The 99-year leasehold condo was first released at $490 psf on average, which rose to $650 psf in 2007.
Apart from these three, no other project had notable sales. Livia in Pasir Ris launched another 80 units last month, selling just 16 at a median price of $620 psf. A new launch, The Beverly in Toh Tuck Road, offered 31 units last month but sold none. It sold a few this month.
For a second straight month, no units were sold at the decidedly upmarket price range of $2,500 psf to $3,999 psf, said Knight Frank’s director of research and consultancy, Mr Nicholas Mak.
CBRE Research executive director Li Hiaw Ho said the top three sellers were projects in the heartland, where a majority of the buyers are HDB upgraders.
They have been waiting on the sidelines during the run-up of home prices in 2006-2007, when there was a lack of mass-market projects for sale, he said.
Apart from pent-up demand, consultants said sales at Caspian and Alexis were driven by the availability of small, affordable units - mainly under $800,000.
Private home sales for the January to March quarter could be about 1,800 to 2,000 units, according to Mr Li, going by the ‘brisk sales’ at Double Bay Residences, Suites @ Kembangan and others so far this month. The 646-unit Double Bay in Simei has, for instance, already posted sales of at least 210 units at $600 psf to $650 psf since its March 6 preview.
Source : ST - 17 Mar 2009
SALES of new private homes surged dramatically last month to the sort of levels seen in the property boom.
However, some property analysts cautioned that the spike in sales to 1,323 units in February may have been a blip - attributable largely to two popular launches of mid-priced heartland condos.
Still, the new Urban Redevelopment Authority (URA) figures showed that last month’s bumper sales were equal to more than a quarter of all the sales of new private homes last year - 4,264 units.
The February figure is also a huge jump from the dismal 108 unit sales in January as buyers stayed away amid deepening economic gloom and Chinese New Year festivities.
‘It has been more than one year since we last saw total transactions surpassing the 1,000 mark,’ said Jones Lang LaSalle’s local director and head of research, South-east Asia, Dr Chua Yang Liang.
The launch of new units was also up sharply last month, to 1,069 units from just 204 units in January.
Analysts say two newly-launched heartland condos, Alexis and Caspian, proved especially popular with upgraders who had been biding their time amid the sharp run-up in prices during the boom.
All 293 units at Alexis in Alexandra Road were sold at a median price of $1,083 per sq ft (psf) while Caspian in Jurong sold 517 units at a median price of $603 psf. Prices started from $450,000 at Alexis and $340,000 at Caspian.
A third project, originally launched in 2006, The Quartz in Buangkok Drive, sold 168 units last month at a median price of $591 psf after it was relaunched at a lower price. The 99-year leasehold condo was first released at $490 psf on average, which rose to $650 psf in 2007.
Apart from these three, no other project had notable sales. Livia in Pasir Ris launched another 80 units last month, selling just 16 at a median price of $620 psf. A new launch, The Beverly in Toh Tuck Road, offered 31 units last month but sold none. It sold a few this month.
For a second straight month, no units were sold at the decidedly upmarket price range of $2,500 psf to $3,999 psf, said Knight Frank’s director of research and consultancy, Mr Nicholas Mak.
CBRE Research executive director Li Hiaw Ho said the top three sellers were projects in the heartland, where a majority of the buyers are HDB upgraders.
They have been waiting on the sidelines during the run-up of home prices in 2006-2007, when there was a lack of mass-market projects for sale, he said.
Apart from pent-up demand, consultants said sales at Caspian and Alexis were driven by the availability of small, affordable units - mainly under $800,000.
Private home sales for the January to March quarter could be about 1,800 to 2,000 units, according to Mr Li, going by the ‘brisk sales’ at Double Bay Residences, Suites @ Kembangan and others so far this month. The 646-unit Double Bay in Simei has, for instance, already posted sales of at least 210 units at $600 psf to $650 psf since its March 6 preview.
Source : ST - 17 Mar 2009
Monday, March 16, 2009
Home owners trade up in style
Posted by goldenpeace on 16-Mar-2009
Owner-occupiers of older condominiums and HDB properties are capitalising on affordable pricing to upgrade to new and larger apartments
THE BEST TIME to buy property, says K S Quek, a 45-year-old businessman who runs an electronic equipment servicing company with his wife, “is during a downturn”. The Queks did just that in the last property slump when they bought their current home, a fourth-floor 1,238 sq ft apartment in Savannah CondoPark at Simei Rise in 2003 for just under $600,000. The 648-unit condominium, developed by City Developments Ltd (CDL), was completed in 2005 and is notable for its landscaped gardens, pools and large bronze animal sculptures.
At that time, Singapore was in recession, just as it is now. This time round, the affordable pricing of recently launched 99-year leasehold condos in the suburbs have also presented the Queks with an opportunity to upgrade from their existing condo to a larger, newer apartment. After checking out recent launches, such as the 724-unit Livia condo in Pasir Ris by CDL and the 712-unit The Caspian in Jurong by Frasers Centrepoint, the Queks homed in on an apartment at Double Bay Residences, a 646-unit, 99-year leasehold condo in Simei by developer UOL Group and its privately held sister company Kheng Leong in a 60:40 joint venture.
Image:‘We had done our homework and we were very certain which unit we wanted,’ says Quek of his family’s purchase of a ground-floor four-bedroom, 2,379 sq ft apartment at Double Bay Residences for $1.1 million.
The Queks were one of the first to show up at the preview on March 6. “We had done our homework and we were very certain which unit we wanted,” says Quek. The chosen apartment was a $1.1-million four-bedroom, 2,379 sq ft apartment on the ground floor that comes with a water feature. Having lived in a highrise apartment, Quek looks forward to tending a little garden in his 890 Owner-occupiers of older condominiums and HDB properties are capitalising on affordable pricing to upgrade to new and larger apartments sq ft private enclosed space that was one of the draws of the unit. With three young children aged seven, five and 2½, Quek admits that the lifestyle aspect was one of the key considerations for the purchase.
Quek says the primary consideration was the location — the project’s proximity to the Simei MRT station (but yet not close enough that the noise level will become an issue) and to the Eastpoint Mall.
In terms of layout, “most new condos these days look pretty similar”, admits Quek, but he was sold on the particular unit at Double Bay Residences because of the landed feel of the ground floor apartment and the size of the unit, something that a higher-floor apartment would not offer. “There were only two four-bedroom apartments on the ground floor with these large balconies,” says Quek.
He adds that it’s too early to say whether he will sell his existing condo or lease it out. After all, he has three years to decide as Double Bay Residences is expected to be completed only in 2013. Quek also took up the interest absorption scheme that UOL has tied up with UOB Bank to offer homebuyers of Double Bay Residences. This means that after paying the initial 20% deposit, Quek does not need to pay anything until the Temporary Occupation Permit for the project is obtained, and that is when he needs to start servicing the loan.
About 40% of the buyers at the preview came from Simei, with a huge number also from the other estates in the east, such as Tampines, Bedok and Pasir Ris. Only 12% of the buyers were not current residents in the nearby areas, says Liam Wee Sin, chief operating officer of UOL Group.“There’s a pool of latent demand from [owners of] the older condos in the vicinity. And, having stayed in their condos for 10 years, they want to move to a newer condo.”
Double Bay Residences will therefore set a new benchmark in terms of product and pricing, notes Doris Ong, vice-president of project marketing at ERA Network, joint marketing agents with Knight Frank for the project.
The main attraction is that Double Bay Residences is the newest development in Simei Street 4, where the last launch was over a decade ago, says Liam. Next door is Simei Green, a 602-unit executive condo developed by NTUC Choice Homes and completed in 1999, while behind it is Tropical Spring, a 242-unit condo also developed by NTUC Choice Homes, which was completed in 2002/03. Modena, a 230-unit condo, also of the 99-year leasehold variety in Simei Street 4, was developed by OUB Centre Ltd and completed in 2001/02.
The most popular units in Double Bay Residences have been the 2+study bedroom apartments of 1,001 to 1,765 sq ft. Those were sold at prices ranging from $600,000 to $720,000, says UOL.
However, beyond the affordability factor influencing property purchases is one of aspiration, notes Liam, as it was the higher-floor units, and even the penthouses, that were taken up faster than the lower-floor units. In the lower-floor apartments, the large units were snapped up first.
Of a total 10 penthouses in the development, ranging from 3,000 to 3,500 sq ft, three have been snapped up at prices ranging from $1.7 million to $1.9 million. There are 44 groundfloor units with a mix of one- to fourbedroom apartments — 17 were sold during the preview at prices ranging from $660,000 to $1.2 million.
INVESTOR APPEAL: CHANGI BUSINESS PARK, THE FOURTH UNIVERSITY
Seventy percent of the buyers at Double Bay Residences during the preview were owner-occupiers, with investors making up the balance, observes ERA’s Ong. They are banking on its proximity to Changi Business Park, where banks like Citibank, DBS and Standard Chartered will be relocating their back office and global support services functions to built-to-suit, multimillion-dollar complexes sometime this year and the next, to make renting out their apartments an attractive investment proposition.
Adding to the appeal of Changi Business Park is the mixed-use project won by developer Frasers Centrepoint in a joint venture with JTC Corp’s wholly owned subsidiary, Ascendas Land. The mixed-use development will contain not just business space, but also a retail mall and a 300-room hotel that’s likely to be completed by 2013.
A further attraction in the area is the fourth university coming up near Changi Business Park on the land previously allocated for the University of New South Wales’ Singapore campus. The university is expected to open by 2015.
Rental rates in Simei seem to be holding up. HDB four-room flats in the area are being rented out at $1,700 to $1,800 per month, while five-room flats are fetching $1,800 to $2,000 per month, notes Ong. As for private condos in the neighbourhood, three-bedroom apartments in the likes of Simei Green and Eastpoint Green have a going rental rate of $2,900 to $3,200 per month.
Assuming a rental rate of $3,000 a month for three-bedroom apartments today, this means investors in Double Bay Residences can expect rental yields of 4% to 5%. “This yield is achieved at a time when the [Changi Business Park] is not even fully developed and the fourth university is not even up yet,” comments Peter Ow, executive director of residential marketing with Knight Frank.
CAPITALISING ON INDOOR-OUTDOOR LIVING
In the past, buyers often perceived that large private enclosed spaces or generous sized balconies and patios ate into built-up areas, resulting in smaller living rooms and tiny bedrooms, for instance.
That’s a popular misconception, says Ow. “For all condo developments, the built-up area for, say, a three- or a four-bedroom is pretty similar either on the ground or higher floors. The difference is that on the ground floor, you have the benefit of having a larger balcony garden or patio. And, increasingly, there are people who want that larger space to enjoy the indoor-outdoor lifestyle.”
Double Bay Residences is regarded as one of the new mass-market condos that provide such generous private enclosed space (PES), with timber deck and water features for the three- and four-bedroom groundfloor apartments, according to Chang Huaiyan, founder of landscape architectural firm Salad Dressing and the landscape architect for Double Bay Residences. “It will bring the concept of indoor-outdoor living to new heights,” he adds. “It will add a new dimension to one’s apartment and act as an extension of the living room.”
Budgets for landscaping a balcony garden vary from $1,000 for those who just want potted plants and flowers, to $4,500 for those looking at installing a koi pond and other features, estimates Chang. “A lot will also depend on the kind of outdoor furniture and accessories that the owner chooses,” he adds.
The duplex apartments at Double Bay Residences have generous PES that comes with a swimming pool and timber deck, while the roof terraces of penthouses comes with a Jacuzzi and trellis, says Chang.
For penthouses, owners can spend anywhere from $15,000 to $100,000 on their roof terraces, says Ow. Some have turned their rooftop terraces into places for entertaining friends and family, and have fitted them out with an outdoor kitchen, complete with professional grill, stove, fridge and sink. Still others have turned them into private sanctuaries with plants, flowers and herbs and water feature.
MID-TIER CONDOS WITH LIFESTYLE APPEAL
This is not Chang’s first collaboration with UOL or Kheng Leong. He is also the landscape architect for UOL’s other condo projects such as Meadows@Peirce on Upper Thomson Road, located on the former Green Meadows site and near Peirce Reservoir.
Meadows@Peirce is likely to be launched in 2Q or 3Q2009, says UOL Group’s Liam. While the low-rise maisonettes have been torn down, the high-rise tower has been retained and will be reconfigured. This is to free up a large area for amenities and also landscaping. All Liam would say is that it would be a “very naturedriven project”. “The Green Meadows [site] is also a unique location in the Upper Thomson area,” he says. “It’s also set in the midst of a private landed housing estate.”
Chang’s Salad Dressing is also the landscape architect for Kheng Leong’s condo, Domain 21 on Delta Road, which was completed last year, and Oasis Garden, Kheng Leong’s new launch in the East Coast. Liam says the lifestyle factor at Double Bay Residences in Simei is similar to that of One-North Residences and Southbank (the former Eng Cheong Tower) at North Bridge Road.
One-North Residences is located off North Buona Vista Road, is across the street from Nepal Park and next to One North Park. It will be completed later this year. To Liam, Double Bay Residences is similar to One-North Residences in terms of location. Double Bay Residences is near Changi Business Park and the fourth university, while One-North Residences is within one-north, home of the Biopolis bio-medical cluster and research as well as Fusionopolis, the infocomm cluster.
As for Southbank, its location right next to Crawford Bridge and fronting Rochor Canal and Kallang River is the draw. The condo will be completed this year. The Kallang River also provides the backdrop for cyclists and those who want the waterfront lifestyle, notes Liam.
For homebuyers at Double Bay Residences, apart from relaxing on a daybed and enjoying a nice Cuban cigar in one’s own private garden, one can always climb on a bike and cycle through the park connectors in the east coast on weekends, says Liam.
Source : The Edge - 15 Mar 2009
Owner-occupiers of older condominiums and HDB properties are capitalising on affordable pricing to upgrade to new and larger apartments
THE BEST TIME to buy property, says K S Quek, a 45-year-old businessman who runs an electronic equipment servicing company with his wife, “is during a downturn”. The Queks did just that in the last property slump when they bought their current home, a fourth-floor 1,238 sq ft apartment in Savannah CondoPark at Simei Rise in 2003 for just under $600,000. The 648-unit condominium, developed by City Developments Ltd (CDL), was completed in 2005 and is notable for its landscaped gardens, pools and large bronze animal sculptures.
At that time, Singapore was in recession, just as it is now. This time round, the affordable pricing of recently launched 99-year leasehold condos in the suburbs have also presented the Queks with an opportunity to upgrade from their existing condo to a larger, newer apartment. After checking out recent launches, such as the 724-unit Livia condo in Pasir Ris by CDL and the 712-unit The Caspian in Jurong by Frasers Centrepoint, the Queks homed in on an apartment at Double Bay Residences, a 646-unit, 99-year leasehold condo in Simei by developer UOL Group and its privately held sister company Kheng Leong in a 60:40 joint venture.
Image:‘We had done our homework and we were very certain which unit we wanted,’ says Quek of his family’s purchase of a ground-floor four-bedroom, 2,379 sq ft apartment at Double Bay Residences for $1.1 million.
The Queks were one of the first to show up at the preview on March 6. “We had done our homework and we were very certain which unit we wanted,” says Quek. The chosen apartment was a $1.1-million four-bedroom, 2,379 sq ft apartment on the ground floor that comes with a water feature. Having lived in a highrise apartment, Quek looks forward to tending a little garden in his 890 Owner-occupiers of older condominiums and HDB properties are capitalising on affordable pricing to upgrade to new and larger apartments sq ft private enclosed space that was one of the draws of the unit. With three young children aged seven, five and 2½, Quek admits that the lifestyle aspect was one of the key considerations for the purchase.
Quek says the primary consideration was the location — the project’s proximity to the Simei MRT station (but yet not close enough that the noise level will become an issue) and to the Eastpoint Mall.
In terms of layout, “most new condos these days look pretty similar”, admits Quek, but he was sold on the particular unit at Double Bay Residences because of the landed feel of the ground floor apartment and the size of the unit, something that a higher-floor apartment would not offer. “There were only two four-bedroom apartments on the ground floor with these large balconies,” says Quek.
He adds that it’s too early to say whether he will sell his existing condo or lease it out. After all, he has three years to decide as Double Bay Residences is expected to be completed only in 2013. Quek also took up the interest absorption scheme that UOL has tied up with UOB Bank to offer homebuyers of Double Bay Residences. This means that after paying the initial 20% deposit, Quek does not need to pay anything until the Temporary Occupation Permit for the project is obtained, and that is when he needs to start servicing the loan.
About 40% of the buyers at the preview came from Simei, with a huge number also from the other estates in the east, such as Tampines, Bedok and Pasir Ris. Only 12% of the buyers were not current residents in the nearby areas, says Liam Wee Sin, chief operating officer of UOL Group.“There’s a pool of latent demand from [owners of] the older condos in the vicinity. And, having stayed in their condos for 10 years, they want to move to a newer condo.”
Double Bay Residences will therefore set a new benchmark in terms of product and pricing, notes Doris Ong, vice-president of project marketing at ERA Network, joint marketing agents with Knight Frank for the project.
The main attraction is that Double Bay Residences is the newest development in Simei Street 4, where the last launch was over a decade ago, says Liam. Next door is Simei Green, a 602-unit executive condo developed by NTUC Choice Homes and completed in 1999, while behind it is Tropical Spring, a 242-unit condo also developed by NTUC Choice Homes, which was completed in 2002/03. Modena, a 230-unit condo, also of the 99-year leasehold variety in Simei Street 4, was developed by OUB Centre Ltd and completed in 2001/02.
The most popular units in Double Bay Residences have been the 2+study bedroom apartments of 1,001 to 1,765 sq ft. Those were sold at prices ranging from $600,000 to $720,000, says UOL.
However, beyond the affordability factor influencing property purchases is one of aspiration, notes Liam, as it was the higher-floor units, and even the penthouses, that were taken up faster than the lower-floor units. In the lower-floor apartments, the large units were snapped up first.
Of a total 10 penthouses in the development, ranging from 3,000 to 3,500 sq ft, three have been snapped up at prices ranging from $1.7 million to $1.9 million. There are 44 groundfloor units with a mix of one- to fourbedroom apartments — 17 were sold during the preview at prices ranging from $660,000 to $1.2 million.
INVESTOR APPEAL: CHANGI BUSINESS PARK, THE FOURTH UNIVERSITY
Seventy percent of the buyers at Double Bay Residences during the preview were owner-occupiers, with investors making up the balance, observes ERA’s Ong. They are banking on its proximity to Changi Business Park, where banks like Citibank, DBS and Standard Chartered will be relocating their back office and global support services functions to built-to-suit, multimillion-dollar complexes sometime this year and the next, to make renting out their apartments an attractive investment proposition.
Adding to the appeal of Changi Business Park is the mixed-use project won by developer Frasers Centrepoint in a joint venture with JTC Corp’s wholly owned subsidiary, Ascendas Land. The mixed-use development will contain not just business space, but also a retail mall and a 300-room hotel that’s likely to be completed by 2013.
A further attraction in the area is the fourth university coming up near Changi Business Park on the land previously allocated for the University of New South Wales’ Singapore campus. The university is expected to open by 2015.
Rental rates in Simei seem to be holding up. HDB four-room flats in the area are being rented out at $1,700 to $1,800 per month, while five-room flats are fetching $1,800 to $2,000 per month, notes Ong. As for private condos in the neighbourhood, three-bedroom apartments in the likes of Simei Green and Eastpoint Green have a going rental rate of $2,900 to $3,200 per month.
Assuming a rental rate of $3,000 a month for three-bedroom apartments today, this means investors in Double Bay Residences can expect rental yields of 4% to 5%. “This yield is achieved at a time when the [Changi Business Park] is not even fully developed and the fourth university is not even up yet,” comments Peter Ow, executive director of residential marketing with Knight Frank.
CAPITALISING ON INDOOR-OUTDOOR LIVING
In the past, buyers often perceived that large private enclosed spaces or generous sized balconies and patios ate into built-up areas, resulting in smaller living rooms and tiny bedrooms, for instance.
That’s a popular misconception, says Ow. “For all condo developments, the built-up area for, say, a three- or a four-bedroom is pretty similar either on the ground or higher floors. The difference is that on the ground floor, you have the benefit of having a larger balcony garden or patio. And, increasingly, there are people who want that larger space to enjoy the indoor-outdoor lifestyle.”
Double Bay Residences is regarded as one of the new mass-market condos that provide such generous private enclosed space (PES), with timber deck and water features for the three- and four-bedroom groundfloor apartments, according to Chang Huaiyan, founder of landscape architectural firm Salad Dressing and the landscape architect for Double Bay Residences. “It will bring the concept of indoor-outdoor living to new heights,” he adds. “It will add a new dimension to one’s apartment and act as an extension of the living room.”
Budgets for landscaping a balcony garden vary from $1,000 for those who just want potted plants and flowers, to $4,500 for those looking at installing a koi pond and other features, estimates Chang. “A lot will also depend on the kind of outdoor furniture and accessories that the owner chooses,” he adds.
The duplex apartments at Double Bay Residences have generous PES that comes with a swimming pool and timber deck, while the roof terraces of penthouses comes with a Jacuzzi and trellis, says Chang.
For penthouses, owners can spend anywhere from $15,000 to $100,000 on their roof terraces, says Ow. Some have turned their rooftop terraces into places for entertaining friends and family, and have fitted them out with an outdoor kitchen, complete with professional grill, stove, fridge and sink. Still others have turned them into private sanctuaries with plants, flowers and herbs and water feature.
MID-TIER CONDOS WITH LIFESTYLE APPEAL
This is not Chang’s first collaboration with UOL or Kheng Leong. He is also the landscape architect for UOL’s other condo projects such as Meadows@Peirce on Upper Thomson Road, located on the former Green Meadows site and near Peirce Reservoir.
Meadows@Peirce is likely to be launched in 2Q or 3Q2009, says UOL Group’s Liam. While the low-rise maisonettes have been torn down, the high-rise tower has been retained and will be reconfigured. This is to free up a large area for amenities and also landscaping. All Liam would say is that it would be a “very naturedriven project”. “The Green Meadows [site] is also a unique location in the Upper Thomson area,” he says. “It’s also set in the midst of a private landed housing estate.”
Chang’s Salad Dressing is also the landscape architect for Kheng Leong’s condo, Domain 21 on Delta Road, which was completed last year, and Oasis Garden, Kheng Leong’s new launch in the East Coast. Liam says the lifestyle factor at Double Bay Residences in Simei is similar to that of One-North Residences and Southbank (the former Eng Cheong Tower) at North Bridge Road.
One-North Residences is located off North Buona Vista Road, is across the street from Nepal Park and next to One North Park. It will be completed later this year. To Liam, Double Bay Residences is similar to One-North Residences in terms of location. Double Bay Residences is near Changi Business Park and the fourth university, while One-North Residences is within one-north, home of the Biopolis bio-medical cluster and research as well as Fusionopolis, the infocomm cluster.
As for Southbank, its location right next to Crawford Bridge and fronting Rochor Canal and Kallang River is the draw. The condo will be completed this year. The Kallang River also provides the backdrop for cyclists and those who want the waterfront lifestyle, notes Liam.
For homebuyers at Double Bay Residences, apart from relaxing on a daybed and enjoying a nice Cuban cigar in one’s own private garden, one can always climb on a bike and cycle through the park connectors in the east coast on weekends, says Liam.
Source : The Edge - 15 Mar 2009
Sunday, March 15, 2009
What is Lease Buyback Scheme?
Posted by goldenpeace on 15-Mar-2009
Where do you see this?
On the HDB’s website and in newspaper articles.
What does it mean?
The Lease Buyback Scheme, officially launched on March 1, helps the elderly sell their HDB flats to the Government for cash.
The HDB will buy back the tail-end of a flat lease at market valuation, leaving a 30-year lease for the household. For example, if a flat has a remaining lease of 70 years, the HDB buys 40 years of the lease from the flat owner.
It pays market rate for the lease it buys and this money goes to the new CPF Life annuity in the flat owner’s name. He will receive a monthly stream of income for life.
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.
He must also have owned the existing flat for five years or more.
If the owner dies before he lives out the 30 years, his family can get a refund of the remaining lease. If they are the beneficiaries of his annuity plan, they will also be given full refund of the unused portion of his annuity.
Why is it important?
The scheme is useful to our ageing society. Studies have shown that residents in Singapore aged 65 years or older will triple from 300,000 currently to 900,000 in 2030.
Currently, the HDB has a range of options to help elderly home owners unlock their flat value, such as moving in with their children while subletting their whole flat.
Besides offering an alternative option to older Singaporeans, the scheme eases the Government’s burden to take care of the needs of the elderly.
So you want to use the term. Just say…
‘I’m not really worried about growing old and being penniless. There’s always the Lease Buyback Scheme to turn to.’
Source : Sunday Times - 15 Mar 2009
Where do you see this?
On the HDB’s website and in newspaper articles.
What does it mean?
The Lease Buyback Scheme, officially launched on March 1, helps the elderly sell their HDB flats to the Government for cash.
The HDB will buy back the tail-end of a flat lease at market valuation, leaving a 30-year lease for the household. For example, if a flat has a remaining lease of 70 years, the HDB buys 40 years of the lease from the flat owner.
It pays market rate for the lease it buys and this money goes to the new CPF Life annuity in the flat owner’s name. He will receive a monthly stream of income for life.
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.
He must also have owned the existing flat for five years or more.
If the owner dies before he lives out the 30 years, his family can get a refund of the remaining lease. If they are the beneficiaries of his annuity plan, they will also be given full refund of the unused portion of his annuity.
Why is it important?
The scheme is useful to our ageing society. Studies have shown that residents in Singapore aged 65 years or older will triple from 300,000 currently to 900,000 in 2030.
Currently, the HDB has a range of options to help elderly home owners unlock their flat value, such as moving in with their children while subletting their whole flat.
Besides offering an alternative option to older Singaporeans, the scheme eases the Government’s burden to take care of the needs of the elderly.
So you want to use the term. Just say…
‘I’m not really worried about growing old and being penniless. There’s always the Lease Buyback Scheme to turn to.’
Source : Sunday Times - 15 Mar 2009
Thursday, March 12, 2009
HSBC's new home loan offers 'loyalty discount'
Posted by goldenpeace on 12-Mar-2009
HSBC has unveiled a new home loan pegged to the Singapore Interbank Offered Rate (Sibor) that rewards longer-term borrowers with an interest rate that gets increasingly competitive over time.
Its new loan package sees the interest rate charged on top of the three-month Sibor - the rate at which banks lend cash to each other - trimmed each year.
Typically, loans pegged to the Sibor have either flat or increasing interest rate spreads.
The new product follows HSBC’s launch last year of a similar package, which cut the interest rate spread at the end of every anniversary year, up to the third year of the loan.
For its new ‘loyalty package’, HSBC customers will see a year-on-year decrease in the interest spread until the 10th year, when it will hit zero.
During the first year, borrowers will pay an interest rate spread of 1.5 per cent above the three-month Sibor.
The spread is then reduced by 0.075 percentage point at the end of each anniversary year.
HSBC has made the arrangement even sweeter for its Premier customers whose interest rate spread will be cut by 0.1 percentage point at the end of each anniversary year.
In the 10th year of the loan, the interest rate spread will be reduced to zero for all customers.
Thereafter, the rate reverts to Sibor plus 1.2 per cent for the remaining tenure of the home loan.
Mr Sebastian Arcuri, head of personal financial services at HSBC Singapore, said the response to its earlier Sibor-pegged loyalty package had been ‘extremely positive’.
‘In giving customers a loyalty discount on the interest rate spread for their Sibor-pegged home loan, we want to help them maximise the value of their relationships with us,’ he said.
But observers caution that home buyers must do their homework before choosing HSBC’s latest mortgage.
First, Sibor can be volatile and those looking for fixed cash flow and protection against interest rate movements should opt for fixed-rate packages.
‘If Sibor starts to exhibit volatility down the road again, these lower spreads might not mean much to customers,’ said Mr Geoffrey Ying, head of the mortgage division at financial advisory firm New Independent.
A DBS Bank spokesman said: ‘In selecting the package, customers need to consider how the rates are determined and how stable they are.
‘A three-month package would require one to actively monitor the interest rate environment and review the loan structure regularly.’
Next, customers should average out the interest rate spreads over 10 years and see how the savings compare to other offers.
‘There is no free lunch,’ said United Overseas Bank’s head of loans Kevin Lam. ‘The package is effectively a lock-in because you need to stay long enough to enjoy the zero (interest spread).’
HSBC said that to enjoy its new home loan, customers must have an average annual balance of $100,000 or more. It added that there was no lock-in period for the loan.
Source : Straits Times - 12 Mar 2009
HSBC has unveiled a new home loan pegged to the Singapore Interbank Offered Rate (Sibor) that rewards longer-term borrowers with an interest rate that gets increasingly competitive over time.
Its new loan package sees the interest rate charged on top of the three-month Sibor - the rate at which banks lend cash to each other - trimmed each year.
Typically, loans pegged to the Sibor have either flat or increasing interest rate spreads.
The new product follows HSBC’s launch last year of a similar package, which cut the interest rate spread at the end of every anniversary year, up to the third year of the loan.
For its new ‘loyalty package’, HSBC customers will see a year-on-year decrease in the interest spread until the 10th year, when it will hit zero.
During the first year, borrowers will pay an interest rate spread of 1.5 per cent above the three-month Sibor.
The spread is then reduced by 0.075 percentage point at the end of each anniversary year.
HSBC has made the arrangement even sweeter for its Premier customers whose interest rate spread will be cut by 0.1 percentage point at the end of each anniversary year.
In the 10th year of the loan, the interest rate spread will be reduced to zero for all customers.
Thereafter, the rate reverts to Sibor plus 1.2 per cent for the remaining tenure of the home loan.
Mr Sebastian Arcuri, head of personal financial services at HSBC Singapore, said the response to its earlier Sibor-pegged loyalty package had been ‘extremely positive’.
‘In giving customers a loyalty discount on the interest rate spread for their Sibor-pegged home loan, we want to help them maximise the value of their relationships with us,’ he said.
But observers caution that home buyers must do their homework before choosing HSBC’s latest mortgage.
First, Sibor can be volatile and those looking for fixed cash flow and protection against interest rate movements should opt for fixed-rate packages.
‘If Sibor starts to exhibit volatility down the road again, these lower spreads might not mean much to customers,’ said Mr Geoffrey Ying, head of the mortgage division at financial advisory firm New Independent.
A DBS Bank spokesman said: ‘In selecting the package, customers need to consider how the rates are determined and how stable they are.
‘A three-month package would require one to actively monitor the interest rate environment and review the loan structure regularly.’
Next, customers should average out the interest rate spreads over 10 years and see how the savings compare to other offers.
‘There is no free lunch,’ said United Overseas Bank’s head of loans Kevin Lam. ‘The package is effectively a lock-in because you need to stay long enough to enjoy the zero (interest spread).’
HSBC said that to enjoy its new home loan, customers must have an average annual balance of $100,000 or more. It added that there was no lock-in period for the loan.
Source : Straits Times - 12 Mar 2009
Tuesday, March 10, 2009
Aussie condo marketed in S'pore snapped up over weekend
Posted by goldenpeace on 10-Mar-2009
PROPERTY appears to be evolving into a currency play with investors hoping to benefit from the rise and fall of exchange rates.
Australian Property Group (APG), which took out a full-page advertisement in The Straits Times on Saturday to market a luxury condominium in Australia, say they have already sold 60 units of the 90-unit development.
A spokeswoman for APG said that most of the buyers were investors who were either Singaporean or foreigners based here.
She added: ‘Australian property is a low risk investment with high returns. With the Australian dollar at the same rate as the Singapore dollar, this is the best opportunity to invest in Australian property as it is 30 per cent cheaper compared to six months ago.’
Perhaps what made it an even more attractive investment was that no deposit was required.
APG said that its managing director Sean Niven, who has more than 20 years of real estate experience and has worked with many developers in Australia, managed to negotiate this package with the developer for this promotion.
APG revealed that the 70 square metre units were sold for about A$396,000 (S$390,000) each but said that more details on the development would only be revealed to potential buyers.
Another Australian property, La Banque in Melbourne by the Brady Property Group, was launched over the weekend and marketing agents HSR International Realtors said: ‘We had very good response from the general public, and the developers are very happy with the results.’
HSR executive director (overseas property investments) Donna Lim declined to say how many units were sold but added that interest came from investors looking for a high rental yield and good capital gain with some also buying for retirement or their children’s education.
Ms Lim added: ‘Demand for rental units are high and the supply low with less than one per cent vacancy rate. With the low Australian currency exchange and higher savings interest benefits, investors are taking advantage of the currency going back up to its normal $1.30 against the Singapore dollar in a projected period of time.’
Another consultant, DST International managing director Doris Tan, says that some of her clients committed to properties in London last year when the pound was higher. As they only had to put down a 10 per cent deposit then, the effective price is less today.
DST closed nine deals at an upscale London property for her high net-worth clients in the second half of 2008. The properties cost about £850 (S$1,820) per square foot.
‘Most of our buyers are savvy investors who bought for medium to long-term investment. There is another group who bought for rental yield of about 5-6 per cent. Another group are those purchasing for their children who study in major cities in New York, London, Sydney etc,’ added Mrs Tan.
Mrs Tan says that interest for overseas properties peaked in 2007. ‘During the first half of 2008 we had a good run but of course everything came to a standstill after September 2008 when the announcement of Lehman Brothers’ collapse saw a 50 per cent decrease in transactions compared to 2007,’ she added.
DST said that prime Central London properties have fallen by 20 per cent and, coupled with the falling pound and interest rates at historical low levels, London property does look very attractive.
But no investment is without risks.
Jerry Tan, managing director of Jerrytan Residential which has marketed luxury properties in Australia, says buyers are not just looking at exchange rates.
‘There has to be an equivalent correction in capital values too,’ he added.
Not all properties are expected to sell well either.
Cushman & Wakefield managing director Donald Han said that only ‘exceptional’ projects will sell in today’s market while most developments might see 10 per cent of units sold, if at all.
There are other potential pitfalls as well. Mr Han said that it is important to understand the tax structures of various markets as capital gains tax may apply.
He also noted that in some countries new developments will be built only after a certain percentage of it has been sold.
However, Mr Han says there has been an increasing number of investors who are scouring key cities for ‘distressed assets’.
Source : Business Times - 10 Mar 2009
PROPERTY appears to be evolving into a currency play with investors hoping to benefit from the rise and fall of exchange rates.
Australian Property Group (APG), which took out a full-page advertisement in The Straits Times on Saturday to market a luxury condominium in Australia, say they have already sold 60 units of the 90-unit development.
A spokeswoman for APG said that most of the buyers were investors who were either Singaporean or foreigners based here.
She added: ‘Australian property is a low risk investment with high returns. With the Australian dollar at the same rate as the Singapore dollar, this is the best opportunity to invest in Australian property as it is 30 per cent cheaper compared to six months ago.’
Perhaps what made it an even more attractive investment was that no deposit was required.
APG said that its managing director Sean Niven, who has more than 20 years of real estate experience and has worked with many developers in Australia, managed to negotiate this package with the developer for this promotion.
APG revealed that the 70 square metre units were sold for about A$396,000 (S$390,000) each but said that more details on the development would only be revealed to potential buyers.
Another Australian property, La Banque in Melbourne by the Brady Property Group, was launched over the weekend and marketing agents HSR International Realtors said: ‘We had very good response from the general public, and the developers are very happy with the results.’
HSR executive director (overseas property investments) Donna Lim declined to say how many units were sold but added that interest came from investors looking for a high rental yield and good capital gain with some also buying for retirement or their children’s education.
Ms Lim added: ‘Demand for rental units are high and the supply low with less than one per cent vacancy rate. With the low Australian currency exchange and higher savings interest benefits, investors are taking advantage of the currency going back up to its normal $1.30 against the Singapore dollar in a projected period of time.’
Another consultant, DST International managing director Doris Tan, says that some of her clients committed to properties in London last year when the pound was higher. As they only had to put down a 10 per cent deposit then, the effective price is less today.
DST closed nine deals at an upscale London property for her high net-worth clients in the second half of 2008. The properties cost about £850 (S$1,820) per square foot.
‘Most of our buyers are savvy investors who bought for medium to long-term investment. There is another group who bought for rental yield of about 5-6 per cent. Another group are those purchasing for their children who study in major cities in New York, London, Sydney etc,’ added Mrs Tan.
Mrs Tan says that interest for overseas properties peaked in 2007. ‘During the first half of 2008 we had a good run but of course everything came to a standstill after September 2008 when the announcement of Lehman Brothers’ collapse saw a 50 per cent decrease in transactions compared to 2007,’ she added.
DST said that prime Central London properties have fallen by 20 per cent and, coupled with the falling pound and interest rates at historical low levels, London property does look very attractive.
But no investment is without risks.
Jerry Tan, managing director of Jerrytan Residential which has marketed luxury properties in Australia, says buyers are not just looking at exchange rates.
‘There has to be an equivalent correction in capital values too,’ he added.
Not all properties are expected to sell well either.
Cushman & Wakefield managing director Donald Han said that only ‘exceptional’ projects will sell in today’s market while most developments might see 10 per cent of units sold, if at all.
There are other potential pitfalls as well. Mr Han said that it is important to understand the tax structures of various markets as capital gains tax may apply.
He also noted that in some countries new developments will be built only after a certain percentage of it has been sold.
However, Mr Han says there has been an increasing number of investors who are scouring key cities for ‘distressed assets’.
Source : Business Times - 10 Mar 2009
Monday, March 9, 2009
Subsale deals pick up as investors bail out
Posted on 09-Mar-2009
Private condominium and apartment subsales are on the rise as project completions put pressure on investors with weak holding power to exit the market.
The trend is expected to continue this year with official estimates projecting that some 10,448 private homes under construction (comprising both landed and non-landed units) will be completed.
Property firm DTZ’s analysis of caveats captured by the Urban Redevelopment Authority’s Realis system shows that the total volume of private residential property transactions (including both primary and secondary markets) plunged in 2008, but subsales as a proportion of total transactions is up.
DTZ said 12,988 private homes changed hands last year, down 65 per cent from 36,745 units in 2007. Total subsale transactions fell 64 per cent to 1,732 units last year, in line with the general slump in housing sales.
But subsales as a proportion of total sales of private non-landed residential property is on the increase.
Subsales accounted for 18 per cent of total condominium and apartment purchases in the October to December 2008 period, up from 14 per cent in the preceding quarter.
For the full year, subsale transactions’ share of total condo/apartment purchases was 16 per cent - up from 15 per cent in 2007 and 6 per cent in 2006. This is also the highest level since the 23 per cent seen in 1996.
Subsales are secondary market deals in projects that have yet to receive their Certificates of Statutory Completion. This may be anywhere from three to 12 months after the project gets its TOP.
DTZ’s senior director Chua Chor Hoon has an explanation for the trend: ‘Many of those who had bought on the deferred payment scheme (DPS), particularly if they’re not planning to occupy the properties themselves, can be expected to offload their units to avoid incurring additional financial commitment when the projects receive TOP.’
When a project is given a temporary occupation permit (TOP), the DPS expires and that is when buyers must pay up the bulk of their purchase price to developers.
‘Specuvestors’, or investors who are open to taking a quick profit if the opportunity presents itself, may be under pressure to offload their properties if they are under the deferred payment scheme and have yet to secure financing for their units. DPS, where buyers pay the first 10 to 20 per cent of the property purchase price and defer payment of the balance till TOP, was scrapped in October 2007 amidst increasing concern that the scheme promoted excessive property speculation.
Ms Chua noted that 10,122 private homes were completed in 2008, some 17 per cent higher than the past 10-year annual average of 8,671 units.
With another 10,448 units scheduled for completion this year, the subsale market is likely to see continued activity in 2009, she said.
Knight Frank executive director (residential) Peter Ow says the subsales market may be brisk this year if prices are attractive to buyers.
‘It depends on how desperate sellers are to offload their units. If they lack holding power or are not able to get the required loan quantum as the projects near completion, they may just divest in the subsale market,’ he added.
Some analysts have suggested that if desperate sellers offload their units in the subsale market, they may be competing head on with developers trying to sell projects in the primary market in the same vicinity.
‘As well, the price at which these sellers divest their units may set a benchmark in the area and weaken developers’ pricing power,’ said a veteran property consultant.
DTZ’s analysis also shows that the median subsale price slipped to $880 psf in Q4 2008 - down 7 per cent from the preceding quarter and a bigger 27 per cent drop from the same year-ago period, due to fewer high-end private residential properties being transacted last year.
The $880 psf median subsale price in Q4 last year was also the lowest since Q3 2006. The Sail @ Marina, 2008’s top subsale project with some 100 caveats lodged, saw its median subsale price ease 22.1 per cent for the whole of last year to $1,550 psf; the quarter-on-quarter decline in Q4 last year was 9.4 per cent.
But even at a $1,550 psf median price, the original buyers of The Sail who had picked up their units directly from the developers would still be able to make some gains as the project was launched at $950 to $1,200 psf in late 2004 and 2005, DTZ observed.
Last year also saw median subsale price drops of 10 per cent for Citylights in the Lavender area (to $1,036 psf), 12 per cent at Varsity Park Condo in Clementi (to $659 psf) and 17 per cent for City Square Residences at Kitchener Road (to $835 psf).
Ms Chua expects subsale prices to decline further this year against the backdrop of weaker market sentiment.
Source : Business Times - 9 Mar 2009
Private condominium and apartment subsales are on the rise as project completions put pressure on investors with weak holding power to exit the market.
The trend is expected to continue this year with official estimates projecting that some 10,448 private homes under construction (comprising both landed and non-landed units) will be completed.
Property firm DTZ’s analysis of caveats captured by the Urban Redevelopment Authority’s Realis system shows that the total volume of private residential property transactions (including both primary and secondary markets) plunged in 2008, but subsales as a proportion of total transactions is up.
DTZ said 12,988 private homes changed hands last year, down 65 per cent from 36,745 units in 2007. Total subsale transactions fell 64 per cent to 1,732 units last year, in line with the general slump in housing sales.
But subsales as a proportion of total sales of private non-landed residential property is on the increase.
Subsales accounted for 18 per cent of total condominium and apartment purchases in the October to December 2008 period, up from 14 per cent in the preceding quarter.
For the full year, subsale transactions’ share of total condo/apartment purchases was 16 per cent - up from 15 per cent in 2007 and 6 per cent in 2006. This is also the highest level since the 23 per cent seen in 1996.
Subsales are secondary market deals in projects that have yet to receive their Certificates of Statutory Completion. This may be anywhere from three to 12 months after the project gets its TOP.
DTZ’s senior director Chua Chor Hoon has an explanation for the trend: ‘Many of those who had bought on the deferred payment scheme (DPS), particularly if they’re not planning to occupy the properties themselves, can be expected to offload their units to avoid incurring additional financial commitment when the projects receive TOP.’
When a project is given a temporary occupation permit (TOP), the DPS expires and that is when buyers must pay up the bulk of their purchase price to developers.
‘Specuvestors’, or investors who are open to taking a quick profit if the opportunity presents itself, may be under pressure to offload their properties if they are under the deferred payment scheme and have yet to secure financing for their units. DPS, where buyers pay the first 10 to 20 per cent of the property purchase price and defer payment of the balance till TOP, was scrapped in October 2007 amidst increasing concern that the scheme promoted excessive property speculation.
Ms Chua noted that 10,122 private homes were completed in 2008, some 17 per cent higher than the past 10-year annual average of 8,671 units.
With another 10,448 units scheduled for completion this year, the subsale market is likely to see continued activity in 2009, she said.
Knight Frank executive director (residential) Peter Ow says the subsales market may be brisk this year if prices are attractive to buyers.
‘It depends on how desperate sellers are to offload their units. If they lack holding power or are not able to get the required loan quantum as the projects near completion, they may just divest in the subsale market,’ he added.
Some analysts have suggested that if desperate sellers offload their units in the subsale market, they may be competing head on with developers trying to sell projects in the primary market in the same vicinity.
‘As well, the price at which these sellers divest their units may set a benchmark in the area and weaken developers’ pricing power,’ said a veteran property consultant.
DTZ’s analysis also shows that the median subsale price slipped to $880 psf in Q4 2008 - down 7 per cent from the preceding quarter and a bigger 27 per cent drop from the same year-ago period, due to fewer high-end private residential properties being transacted last year.
The $880 psf median subsale price in Q4 last year was also the lowest since Q3 2006. The Sail @ Marina, 2008’s top subsale project with some 100 caveats lodged, saw its median subsale price ease 22.1 per cent for the whole of last year to $1,550 psf; the quarter-on-quarter decline in Q4 last year was 9.4 per cent.
But even at a $1,550 psf median price, the original buyers of The Sail who had picked up their units directly from the developers would still be able to make some gains as the project was launched at $950 to $1,200 psf in late 2004 and 2005, DTZ observed.
Last year also saw median subsale price drops of 10 per cent for Citylights in the Lavender area (to $1,036 psf), 12 per cent at Varsity Park Condo in Clementi (to $659 psf) and 17 per cent for City Square Residences at Kitchener Road (to $835 psf).
Ms Chua expects subsale prices to decline further this year against the backdrop of weaker market sentiment.
Source : Business Times - 9 Mar 2009
Sale of private homes to foreigners slips to 24%
Posted goldenpeace on 09-Mar-2009
As foreigners retreated from the Singapore property market in the face of the global financial meltdown, their share of private home purchases eased to 24 per cent last year from the high of 26 per cent in 2007, according to DTZ’s latest analysis of caveats.
Conversely, Singaporeans’ share of the private home buying pie rose from 67 per cent in 2007 to 73 per cent in 2008, with companies making up the rest of the buying pool.
Giving a breakdown of the foreign buying pool, which includes permanent residents (PRs), DTZ said that non-PR foreigners accounted for 11 per cent of total caveats lodged for private homes last year, down from a 13 per cent share in 2007.
Singapore PRs’ share held steady at 13 per cent, supported by the increase in the number of PRs in recent years.
Projects that drew the most Singapore PR buyers last year were chiefly in the mass-market segment such as Melville Park in Simei, Livia in Pasir Ris, The Lakeshore in Jurong Lake District and Clover by the Park in Bishan.
The most popular projects among non-PR foreigners were The Lakeshore, Citylights, Icon and Costa Del Sol.
Districts 9, 10, 15 and 16 were the most sought-after haunts of foreigners (including PRs) who bought private residential properties in Singapore last year. Districts 15 and 16 cover the East Coast area.
Malaysians pipped Indonesians to account for the lion’s share, or 20 per cent of foreign buyers of private homes in 2008, followed by Indonesians (19 per cent), Indians (12 per cent) and mainland Chinese (11 per cent).
DTZ noted that in the fourth quarter of 2008, homes priced above $1 million accounted for 72 per cent of purchases by Indonesians, higher than a 41 per cent share of purchases by Malaysians.
The property consultancy firm’s senior director (research) Chua Chor Hoon reckons that the proportion of foreign buying will stay low in the next 12 months as Singapore property loses some of its relative shine.
‘Steeper currency declines in markets like Australia and UK have made property prices there look more attractive in comparison with Singapore. And investors will become more cautious as the global financial crisis deepens,’ she said.
DTZ’s analysis of caveats captured by the Urban Redevelopment Authority’s Realis system also showed that the number of private home buyers who had HDB addresses fell in Q4 and the whole of 2008.
However the pace of decline was even faster among those with private addresses. As a result, HDB upgraders’ contribution to private home purchases increased from 22 per cent in 2007 to 36 per cent in 2008 - the highest level in four years.
‘In 2008, few investors and speculators, in particular those with private addresses, entered the market and launches of high-end projects were held back.
‘On the other hand, there was a wider spread of projects in the suburbs launched at $1 million or below per unit, which are more affordable for HDB upgraders,’ said Ms Chua.
In general, private homes in districts 15, 18 and 19 were most popular among HDB upgraders.
Projects with the highest number of developer sales to HDB upgraders in 2008 included Livia and Clover by the Park, while in the secondary market, the top-sellers to HDB upgraders were The Centris in Jurong West, Melville Park and Citylights.
Ms Chua reckons that HDB upgraders will continue to feature prominently in the private home buying pie going ahead. ‘The focus this year will be on buying for own occupation rather than for investment or speculation; most HDB dwellers would fit the bill,’ she said.
Source : Business Times - 9 Mar 2009
As foreigners retreated from the Singapore property market in the face of the global financial meltdown, their share of private home purchases eased to 24 per cent last year from the high of 26 per cent in 2007, according to DTZ’s latest analysis of caveats.
Conversely, Singaporeans’ share of the private home buying pie rose from 67 per cent in 2007 to 73 per cent in 2008, with companies making up the rest of the buying pool.
Giving a breakdown of the foreign buying pool, which includes permanent residents (PRs), DTZ said that non-PR foreigners accounted for 11 per cent of total caveats lodged for private homes last year, down from a 13 per cent share in 2007.
Singapore PRs’ share held steady at 13 per cent, supported by the increase in the number of PRs in recent years.
Projects that drew the most Singapore PR buyers last year were chiefly in the mass-market segment such as Melville Park in Simei, Livia in Pasir Ris, The Lakeshore in Jurong Lake District and Clover by the Park in Bishan.
The most popular projects among non-PR foreigners were The Lakeshore, Citylights, Icon and Costa Del Sol.
Districts 9, 10, 15 and 16 were the most sought-after haunts of foreigners (including PRs) who bought private residential properties in Singapore last year. Districts 15 and 16 cover the East Coast area.
Malaysians pipped Indonesians to account for the lion’s share, or 20 per cent of foreign buyers of private homes in 2008, followed by Indonesians (19 per cent), Indians (12 per cent) and mainland Chinese (11 per cent).
DTZ noted that in the fourth quarter of 2008, homes priced above $1 million accounted for 72 per cent of purchases by Indonesians, higher than a 41 per cent share of purchases by Malaysians.
The property consultancy firm’s senior director (research) Chua Chor Hoon reckons that the proportion of foreign buying will stay low in the next 12 months as Singapore property loses some of its relative shine.
‘Steeper currency declines in markets like Australia and UK have made property prices there look more attractive in comparison with Singapore. And investors will become more cautious as the global financial crisis deepens,’ she said.
DTZ’s analysis of caveats captured by the Urban Redevelopment Authority’s Realis system also showed that the number of private home buyers who had HDB addresses fell in Q4 and the whole of 2008.
However the pace of decline was even faster among those with private addresses. As a result, HDB upgraders’ contribution to private home purchases increased from 22 per cent in 2007 to 36 per cent in 2008 - the highest level in four years.
‘In 2008, few investors and speculators, in particular those with private addresses, entered the market and launches of high-end projects were held back.
‘On the other hand, there was a wider spread of projects in the suburbs launched at $1 million or below per unit, which are more affordable for HDB upgraders,’ said Ms Chua.
In general, private homes in districts 15, 18 and 19 were most popular among HDB upgraders.
Projects with the highest number of developer sales to HDB upgraders in 2008 included Livia and Clover by the Park, while in the secondary market, the top-sellers to HDB upgraders were The Centris in Jurong West, Melville Park and Citylights.
Ms Chua reckons that HDB upgraders will continue to feature prominently in the private home buying pie going ahead. ‘The focus this year will be on buying for own occupation rather than for investment or speculation; most HDB dwellers would fit the bill,’ she said.
Source : Business Times - 9 Mar 2009
What's an interest absorption scheme?
Posted by goldenpeace on 09-Mar-2009
Where do you see this?
In property advertisements, brochures on developments and newspaper reports.
What does it mean?
This is a scheme that property developers offer in conjunction with banks at project launches.
It is similar to the deferred payment scheme, in that it allows you to defer the bulk of the purchase price until the project’s temporary occupation permit period.
The big difference is that under the interest absorption scheme, you have to take a bank loan at the time of purchase. But the developer will absorb the interest payments on the loan until the project’s completion.
The scheme may be offered at a premium. Some developers are now charging a 3 per cent premium over the buying price.
Why is it important?
This scheme allows genuine home buyers to commit to a purchase with just a small upfront payment.
More developers have been using this to help drive sales after the Government scrapped the deferred payment scheme in late 2007.
So you want to use the term? Just say…
‘If I take up the interest absorption scheme, I won’t have to worry about the monthly payments until the development is completed.’
Source : Sunday Times - 8 Mar 2009
Where do you see this?
In property advertisements, brochures on developments and newspaper reports.
What does it mean?
This is a scheme that property developers offer in conjunction with banks at project launches.
It is similar to the deferred payment scheme, in that it allows you to defer the bulk of the purchase price until the project’s temporary occupation permit period.
The big difference is that under the interest absorption scheme, you have to take a bank loan at the time of purchase. But the developer will absorb the interest payments on the loan until the project’s completion.
The scheme may be offered at a premium. Some developers are now charging a 3 per cent premium over the buying price.
Why is it important?
This scheme allows genuine home buyers to commit to a purchase with just a small upfront payment.
More developers have been using this to help drive sales after the Government scrapped the deferred payment scheme in late 2007.
So you want to use the term? Just say…
‘If I take up the interest absorption scheme, I won’t have to worry about the monthly payments until the development is completed.’
Source : Sunday Times - 8 Mar 2009
Saturday, March 7, 2009
Double Bay Residences: 80 units of Simei condo sold
Posted by goldenpeace on 07-Mar-2009
UOL Group and Kheng Leong yesterday sold more than 80 units of their new Simei condominium Double Bay Residences on the first day of its preview, the companies said.
Units at the 646-unit, 99-year leasehold project went for $600-650 per square foot (psf), UOL group chief operating officer Liam Wee Sin told BT.
UOL and Kheng Leong paid some $296 psf per plot ratio for the site in Jan 2008.
Mr Liam is upbeat about future take-up for the project as well. ‘The response to the preview has been terrific and if the same momentum is sustained, we expect to sell at least 200 units by this weekend,’ he said.
UOL released 250 units during yesterday’s soft launch. The project will be officially launched on March 14.
Yesterday’s transaction prices were slightly lower than the indicative prices that agents were giving out last week - which were in the range of $650-680 psf.
Mr Liam said that the $600-$650 selling price will be maintained: ‘We are happy with the pricing and we have no intention of raising prices.’
One-bedroom apartments were priced at $420,000 to $480,000; two-bedders went for $570,000 to $620,000; three-bedders for $740,000 to $850,000; and four-bedroom units sold for $930,000 to $1.02 million.
Like with other recent launches, UOL is offering an interest absorption scheme to buyers, but this costs about 2 per cent more.
The project is expected to receive its temporary occupation permit in 2013.
Peter Ow, executive director for residential marketing at Knight Frank (which is marketing the project), said that most of the buyers were HDB upgraders. Units on higher floors were also proving to be more popular, he said.
Mr Liam pointed out that the last condo project in Simei was launched a decade ago.
‘So we believe there’s pent-up interest for condo living in the area,’ he said, noting that there is latent demand from owners of HDB five-room and executive flats in Bedok, Pasir Ris, Punggol, Sengkang and Tampines.
UOL and Kheng Leong also said that apartments will be fitted with ‘elegant finishings comparable to district 10 condos’, which they expect will be a selling point.
Two-thirds of Double Bay Residences are taken up by four swimming pools and landscape features such as a five-storey high waterfall, an elevated jacuzzi and a sports deck.
UOL Group and Kheng Leong also sold six shop units within the project at $1,150 psf to a single buyer.
Source : Business Times - 7 Mar 2009
UOL Group and Kheng Leong yesterday sold more than 80 units of their new Simei condominium Double Bay Residences on the first day of its preview, the companies said.
Units at the 646-unit, 99-year leasehold project went for $600-650 per square foot (psf), UOL group chief operating officer Liam Wee Sin told BT.
UOL and Kheng Leong paid some $296 psf per plot ratio for the site in Jan 2008.
Mr Liam is upbeat about future take-up for the project as well. ‘The response to the preview has been terrific and if the same momentum is sustained, we expect to sell at least 200 units by this weekend,’ he said.
UOL released 250 units during yesterday’s soft launch. The project will be officially launched on March 14.
Yesterday’s transaction prices were slightly lower than the indicative prices that agents were giving out last week - which were in the range of $650-680 psf.
Mr Liam said that the $600-$650 selling price will be maintained: ‘We are happy with the pricing and we have no intention of raising prices.’
One-bedroom apartments were priced at $420,000 to $480,000; two-bedders went for $570,000 to $620,000; three-bedders for $740,000 to $850,000; and four-bedroom units sold for $930,000 to $1.02 million.
Like with other recent launches, UOL is offering an interest absorption scheme to buyers, but this costs about 2 per cent more.
The project is expected to receive its temporary occupation permit in 2013.
Peter Ow, executive director for residential marketing at Knight Frank (which is marketing the project), said that most of the buyers were HDB upgraders. Units on higher floors were also proving to be more popular, he said.
Mr Liam pointed out that the last condo project in Simei was launched a decade ago.
‘So we believe there’s pent-up interest for condo living in the area,’ he said, noting that there is latent demand from owners of HDB five-room and executive flats in Bedok, Pasir Ris, Punggol, Sengkang and Tampines.
UOL and Kheng Leong also said that apartments will be fitted with ‘elegant finishings comparable to district 10 condos’, which they expect will be a selling point.
Two-thirds of Double Bay Residences are taken up by four swimming pools and landscape features such as a five-storey high waterfall, an elevated jacuzzi and a sports deck.
UOL Group and Kheng Leong also sold six shop units within the project at $1,150 psf to a single buyer.
Source : Business Times - 7 Mar 2009
Friday, March 6, 2009
Punggol resale flats close the price gap
Posted by goldenpeace on 06-Mar-2009
PRICES of resale HDB flats in Punggol have fallen in recent weeks to the point where they are now around the same level as new ones launched barely two months ago.
Normally new flats are markedly cheaper than resale ones as the Housing Board ‘deeply discounts’ their price to prevailing market values as a form of subsidy to first-time home buyers.
But the worsening recession, fragile job market and weak property sector have closed this ‘discount gap’ to virtually nothing in some cases, making resale homes as attractive as new ones.
This is a reversal of the trend during the pre-crisis property boom which saw first-timers flock to HDB for new flats when they found themselves priced out of the resale market.
Experts also point to weaker demand for premium, five-room flat types, which has led to a drop in prices.
The HDB’s website this week showed that the range of resale prices for such five-roomers in Punggol had dipped, from $375,000 to $462,000 in December to about $350,000 to $440,000 last month.
Out of 36 five-room transactions in February, a majority of 29 were priced below $400,000.
This puts them in a similar price range as new five-roomers launched at Punggol Regalia in December at $342,000 to $428,000, and Punggol Arcadia in November at $356,000 to $416,000.
Even prices at the lower end for Punggol’s premium four-roomers have fallen from around $338,000 in December to $306,000 last month.
First-timers eligible for housing grants that may reach as much as $70,000 could now be paying much less for a resale flat than a new one.
This could prompt some cost-conscious buyers in the queue for new flats in Punggol to drop out and buy resale ones, said ERA Asia-Pacific’s associate director, Mr Eugene Lim.
Analysts say the dip in prices has come as home buyers are less likely to pay a premium, or cash-over-valuation, for a flat amid a deepening recession where every quarter sees fresh layoffs.
When HDB launched the Punggol flats late last year, the prices were also based on earlier, higher-priced transactions so it was ‘inevitable’ for new and resale flat prices to have some overlap.
A similar scenario was seen in the 1998 Asian financial crisis when new flat prices were ‘outdated’ quickly due to a downturn in the property market, said PropNex chief executive Mohamed Ismail.
One such area was Jurong, where some first-time buyers eventually discovered they paid more for a new flat than for some resale flats, he said.
It is difficult to compare that situation to Punggol now as the latest projects launched have a premium price due to their attractive location near Punggol MRT station and proximity to the town centre.
Punggol also has long-term potential due to plans to transform it into Singapore’s first waterfront public housing estate, added Mr Ismail.
Chesterton Suntec International’s head of research and consultancy, Mr Colin Tan, pointed out that, unlike private developers, the HDB does not have the luxury of flexibility to adjust prices according to the market immediately.
‘Once they’ve launched, the price is fixed. So there’ll always be a lag effect,’ he said.
One outcome might be that if the projects do not sell out, the HDB will take back surplus flats and relaunch them at a more attractive price later, he said.
Engineer Tang Zhi Wei,who is in the queue to buy a flat at Punggol Regalia, said the prices of resale flats are starting to look very attractive.
‘I’d be tempted to drop out and get a resale flat if time was important and I couldn’t wait,’ said Mr Tang, 26.
But while it seems he is no longer getting a ‘deep discount’ for a new flat, he will still buy one as it is ‘new and the location is good’.
The HDB has stated previously that it follows the market and adjusts prices accordingly.
In the aftermath of the Asian financial crisis when the property market suffered a severe downturn, new flats in Sengkang, for example, cost up to 30 per cent lower in 2005 than when they were first offered for sale in 1997 to 1998.
_______________________________________________________
Engineer Tang Zhi Wei, who is in the queue to buy a flat at Punggol Regalia, said the prices of resale flats are starting to look very attractive. ‘I’d be tempted to drop out and get a resale flat if time was important and I couldn’t wait.’
Source : Straits Times - 5 Mar 2009
PRICES of resale HDB flats in Punggol have fallen in recent weeks to the point where they are now around the same level as new ones launched barely two months ago.
Normally new flats are markedly cheaper than resale ones as the Housing Board ‘deeply discounts’ their price to prevailing market values as a form of subsidy to first-time home buyers.
But the worsening recession, fragile job market and weak property sector have closed this ‘discount gap’ to virtually nothing in some cases, making resale homes as attractive as new ones.
This is a reversal of the trend during the pre-crisis property boom which saw first-timers flock to HDB for new flats when they found themselves priced out of the resale market.
Experts also point to weaker demand for premium, five-room flat types, which has led to a drop in prices.
The HDB’s website this week showed that the range of resale prices for such five-roomers in Punggol had dipped, from $375,000 to $462,000 in December to about $350,000 to $440,000 last month.
Out of 36 five-room transactions in February, a majority of 29 were priced below $400,000.
This puts them in a similar price range as new five-roomers launched at Punggol Regalia in December at $342,000 to $428,000, and Punggol Arcadia in November at $356,000 to $416,000.
Even prices at the lower end for Punggol’s premium four-roomers have fallen from around $338,000 in December to $306,000 last month.
First-timers eligible for housing grants that may reach as much as $70,000 could now be paying much less for a resale flat than a new one.
This could prompt some cost-conscious buyers in the queue for new flats in Punggol to drop out and buy resale ones, said ERA Asia-Pacific’s associate director, Mr Eugene Lim.
Analysts say the dip in prices has come as home buyers are less likely to pay a premium, or cash-over-valuation, for a flat amid a deepening recession where every quarter sees fresh layoffs.
When HDB launched the Punggol flats late last year, the prices were also based on earlier, higher-priced transactions so it was ‘inevitable’ for new and resale flat prices to have some overlap.
A similar scenario was seen in the 1998 Asian financial crisis when new flat prices were ‘outdated’ quickly due to a downturn in the property market, said PropNex chief executive Mohamed Ismail.
One such area was Jurong, where some first-time buyers eventually discovered they paid more for a new flat than for some resale flats, he said.
It is difficult to compare that situation to Punggol now as the latest projects launched have a premium price due to their attractive location near Punggol MRT station and proximity to the town centre.
Punggol also has long-term potential due to plans to transform it into Singapore’s first waterfront public housing estate, added Mr Ismail.
Chesterton Suntec International’s head of research and consultancy, Mr Colin Tan, pointed out that, unlike private developers, the HDB does not have the luxury of flexibility to adjust prices according to the market immediately.
‘Once they’ve launched, the price is fixed. So there’ll always be a lag effect,’ he said.
One outcome might be that if the projects do not sell out, the HDB will take back surplus flats and relaunch them at a more attractive price later, he said.
Engineer Tang Zhi Wei,who is in the queue to buy a flat at Punggol Regalia, said the prices of resale flats are starting to look very attractive.
‘I’d be tempted to drop out and get a resale flat if time was important and I couldn’t wait,’ said Mr Tang, 26.
But while it seems he is no longer getting a ‘deep discount’ for a new flat, he will still buy one as it is ‘new and the location is good’.
The HDB has stated previously that it follows the market and adjusts prices accordingly.
In the aftermath of the Asian financial crisis when the property market suffered a severe downturn, new flats in Sengkang, for example, cost up to 30 per cent lower in 2005 than when they were first offered for sale in 1997 to 1998.
_______________________________________________________
Engineer Tang Zhi Wei, who is in the queue to buy a flat at Punggol Regalia, said the prices of resale flats are starting to look very attractive. ‘I’d be tempted to drop out and get a resale flat if time was important and I couldn’t wait.’
Source : Straits Times - 5 Mar 2009
District 18 - Double Bay Residences
DOUBLE BAY RESIDENCES:-- Extensive landscape & water area (almost 3 football fields)
- 4 swimming pools – 50m lap pool, lagoon pool, jungle pool & children’s pool
DOUBLE BAY RESIDENCES Landscape features:-
- 5-storey high Waterfall (above clubhouse)
- Elevated Jacuzzi
- One-tree island
- Green wall / canopy at main entrance drop off & above clubhouse
- Sports Deck (on roof top of carparks)
- 5-storey high Waterfall (above clubhouse)
- Elevated Jacuzzi
- One-tree island
- Green wall / canopy at main entrance drop off & above clubhouse
- Sports Deck (on roof top of carparks)
DOUBLE BAY RESIDENCES Large Clubhouse with Special Facilities:-
- Indoor area of clubhouse & gym = 12,000 sq ft
- Library (for 50 persons – quiet study areas for students);
- Band room (fully accessorized with drumsets, electric guitar and amplifiers);
- Indoor area of clubhouse & gym = 12,000 sq ft
- Library (for 50 persons – quiet study areas for students);
- Band room (fully accessorized with drumsets, electric guitar and amplifiers);
- Piano room
Project Name : Double Bay Residences
Developer : Secure Venture Development (Simei) Pte Ltd/(Kheng Leong/UOL Group Ltd)
Location : Simei Street 4
Site Area : 346,000 sq ft
Tenure : 99 Yrs (w.e.f. 4 Apr 2008)
Completion Date : est. Dec 2013
District : 18
Developer : Secure Venture Development (Simei) Pte Ltd/(Kheng Leong/UOL Group Ltd)
Location : Simei Street 4
Site Area : 346,000 sq ft
Tenure : 99 Yrs (w.e.f. 4 Apr 2008)
Completion Date : est. Dec 2013
District : 18
Total Units : 646
Unit Types
1-Bedroom Size ~ 538 to 635 sq ft
2-Bedroom Size ~ 915 to 1,335 sq ft
2-Bed+study Size ~ 1,001 to 1,765 sq ft
3-Bedroom Size ~ 1,259 to 1765 sq ft
3-Bed+study Size ~ 1,830 to 2142 sq ft
4-Bedroom Size ~ 1,550 to 2, 379 sq ft
Duplex Size ~ 3,606 to 3,703 sq ft
Penthouse Size ~ 2,982 to 3,488 sq ft
Ancillary Shop Size ~ 226 to 538 sq ft
Unit Types
1-Bedroom Size ~ 538 to 635 sq ft
2-Bedroom Size ~ 915 to 1,335 sq ft
2-Bed+study Size ~ 1,001 to 1,765 sq ft
3-Bedroom Size ~ 1,259 to 1765 sq ft
3-Bed+study Size ~ 1,830 to 2142 sq ft
4-Bedroom Size ~ 1,550 to 2, 379 sq ft
Duplex Size ~ 3,606 to 3,703 sq ft
Penthouse Size ~ 2,982 to 3,488 sq ft
Ancillary Shop Size ~ 226 to 538 sq ft
Previewing now...
Thursday, March 5, 2009
District 10 - The Mercury
The dream home.
A SINGLE TOWER RISES ABOVE ITS SURROUNDINGS DRAPED IN QUICKSILVER...
One that is sophiscated yet understated.
At The Mercury, everything from architectural design to interior layout is done with subtle elegance, a perfect fit for today's cosmopolitan who believes that there is importance in simplicity.
The Mercury has everything to do with minimalist beauty wherein you, the owner, can find your personal retreat.
Developer: Fortune Shanghai Rd Pte Ltd
Location: Shanghai Road
Tenure: Freehold
Expected TOP: End 2014
Total Units: 67
Unit Types:
1-Bedroom + Study - 32 Units. (635sqft)
2-Bedroom + Study - 30 Units. (1,044sqft)
2-Bedroom + Study - 1 Unit. (1,259sqft)
2-Bedroom + Study - 30 Units. (1,044sqft)
2-Bedroom + Study - 1 Unit. (1,259sqft)
Penthouses with private roof garden and jacuzzi:
1-Bedroom + Study - 2 Units. (1,205sqft)
2-Bedroom + Study - 2 Units. (1927sqft)
2-Bedroom + Study - 2 Units. (1927sqft)
FACILITIES:
- Swimming Pool
- Jacuzzi
- Gym
- BBQ
Minutes to GREAT WORLD CITY and Proximity to ORCHARD/ FINANCIAL DISTRICT/ INTEGRATED RESORTS.
Previewing soon...
Wednesday, March 4, 2009
Downturn, downsize
Posted by goldenpeace on 04-Mar-2009
IN TOUGH times, small is beautiful.
That seems to be the new theme among some developers who are tearing up plans for yet-to-be-launched projects and going back to the drawing board.
They are looking at reconfiguring their residential projects to offer smaller units than planned, so that they would be more affordable for cautious buyers.
This is a major reversal from the boom times when big units were very popular.
In its recent results statement, Sing Holdings said it is reconfiguring the unit sizes and layout of its prime Cairnhill Road project, The Laurels, to adapt to market demand.
‘The plan is to have more one- to two-bedroom units,’ said managing director Lee Sze Hao. ‘Now, I have to be careful with the affordability factor.’ He would offer ‘luxury at a affordable price’.
Wheelock Properties said in its results statement that it is reviewing building plans of its Ardmore 3 project in view of the poor market.
A UOL Group spokesman said as part of its ongoing product development process, it is considering resizing the units of its Green Meadows project in Upper Thomson to make them more affordable.
The impetus for this emerging trend includes the recent stunning sell-out of the Alexis project, which showed that small, affordable units sell. Of its 293 units, 114 units are one-bedders of just 366 sq ft to 527 sq ft.
Before its launch, developer ECPrime said it had adjusted the mix so that a larger number of the units would be smaller and therefore more affordable. Prices started from $450,000 for the one-bedders to about $650,000 for two-bedders.
It was only in 2005 and 2006 that developers were busy looking at building spacious units to cater to the rich. By late 2006, the bigger flats had attracted such strong interest that they were fetching higher prices on a per sq ft basis than smaller units. Traditionally, the bigger the unit, the lower the psf price.
In 2006, Lippo Realty executive director Thio Gim Hock banked on selling fairly big units at its 91-unit Newton One development. It was a success. ‘When the market is good, people go for big units,’ he said. Now, he has moved fast to reconfigure the units at the posh project on the prime Angullia Park site, where The Parisian used to be. It will now have two units per floor, instead of one unit per floor.
‘Last year, we changed our plans. We want to keep it affordable,’ said Mr Thio, now chief executive and group managing director of Overseas Union Enterprise. ‘We foresaw that the market will go for smaller units.’
In the original plan, the 27 units ranged in size from more than 4,000 sq ft to 5,000 sq ft. Now, there will be 50-odd units from around 2,500 sq ft to 3,000 sq ft, he said.
Mr Lee said he started reviewing plans for The Laurels late last year. It will be several more months before the approvals come in and it is ready for launch.
‘Things have changed. It is better to change from business class to economy class now. It is important to build something the market can absorb,’ he said.
‘Gone are the days when these people just walk in and pay you $7, $10 million. Unit sizes have to be scaled down but still remain at a comfortable level.’
The original plan was for The Laurels to have 150 units, many of them three- to four-bedders. Now, it will have about 290 units.
More developers may follow suit, given the downturn. Said DTZ executive director Ong Choon Fah: ‘People look at the lump sum now. The perception is that there is a smaller capital outlay.’
Mr Lee and Mr Thio both believe developers still able to reconfigure project layout and unit sizes will want to do so now.
Added Knight Frank executive director Peter Ow: ‘If the developers have not started selling or building their projects, it would make sense for them to look at resizing the units to make them more affordable, provided it does not affect their planning approvals.
Mr Tai Lee Siang, president of the Singapore Institute of Architects, said: ‘If poor economic conditions persist, the trend is likely to be downsizing of units to make them more affordable. The other trend may be the no-frills approach, where units are made simpler and cheaper to build - thus lowering costs.’
Source : Straits Times - 4 Mar 2009
IN TOUGH times, small is beautiful.
That seems to be the new theme among some developers who are tearing up plans for yet-to-be-launched projects and going back to the drawing board.
They are looking at reconfiguring their residential projects to offer smaller units than planned, so that they would be more affordable for cautious buyers.
This is a major reversal from the boom times when big units were very popular.
In its recent results statement, Sing Holdings said it is reconfiguring the unit sizes and layout of its prime Cairnhill Road project, The Laurels, to adapt to market demand.
‘The plan is to have more one- to two-bedroom units,’ said managing director Lee Sze Hao. ‘Now, I have to be careful with the affordability factor.’ He would offer ‘luxury at a affordable price’.
Wheelock Properties said in its results statement that it is reviewing building plans of its Ardmore 3 project in view of the poor market.
A UOL Group spokesman said as part of its ongoing product development process, it is considering resizing the units of its Green Meadows project in Upper Thomson to make them more affordable.
The impetus for this emerging trend includes the recent stunning sell-out of the Alexis project, which showed that small, affordable units sell. Of its 293 units, 114 units are one-bedders of just 366 sq ft to 527 sq ft.
Before its launch, developer ECPrime said it had adjusted the mix so that a larger number of the units would be smaller and therefore more affordable. Prices started from $450,000 for the one-bedders to about $650,000 for two-bedders.
It was only in 2005 and 2006 that developers were busy looking at building spacious units to cater to the rich. By late 2006, the bigger flats had attracted such strong interest that they were fetching higher prices on a per sq ft basis than smaller units. Traditionally, the bigger the unit, the lower the psf price.
In 2006, Lippo Realty executive director Thio Gim Hock banked on selling fairly big units at its 91-unit Newton One development. It was a success. ‘When the market is good, people go for big units,’ he said. Now, he has moved fast to reconfigure the units at the posh project on the prime Angullia Park site, where The Parisian used to be. It will now have two units per floor, instead of one unit per floor.
‘Last year, we changed our plans. We want to keep it affordable,’ said Mr Thio, now chief executive and group managing director of Overseas Union Enterprise. ‘We foresaw that the market will go for smaller units.’
In the original plan, the 27 units ranged in size from more than 4,000 sq ft to 5,000 sq ft. Now, there will be 50-odd units from around 2,500 sq ft to 3,000 sq ft, he said.
Mr Lee said he started reviewing plans for The Laurels late last year. It will be several more months before the approvals come in and it is ready for launch.
‘Things have changed. It is better to change from business class to economy class now. It is important to build something the market can absorb,’ he said.
‘Gone are the days when these people just walk in and pay you $7, $10 million. Unit sizes have to be scaled down but still remain at a comfortable level.’
The original plan was for The Laurels to have 150 units, many of them three- to four-bedders. Now, it will have about 290 units.
More developers may follow suit, given the downturn. Said DTZ executive director Ong Choon Fah: ‘People look at the lump sum now. The perception is that there is a smaller capital outlay.’
Mr Lee and Mr Thio both believe developers still able to reconfigure project layout and unit sizes will want to do so now.
Added Knight Frank executive director Peter Ow: ‘If the developers have not started selling or building their projects, it would make sense for them to look at resizing the units to make them more affordable, provided it does not affect their planning approvals.
Mr Tai Lee Siang, president of the Singapore Institute of Architects, said: ‘If poor economic conditions persist, the trend is likely to be downsizing of units to make them more affordable. The other trend may be the no-frills approach, where units are made simpler and cheaper to build - thus lowering costs.’
Source : Straits Times - 4 Mar 2009
Property developers get 'kiasu'
Posted by goldenpeace on 04-Mar-2009
Some developers are getting so “kiasu” (afraid to lose out) that they are getting the original buyers of homes to indemnify them should a sub-purchaser fail to pay. However, the Controller of Housing has told at least one developer, Keppel Land, that this is wrong.
The issue was raised when the buyer of an apartment at Park Infinia at Wee Nam Road, just off Keng Lee Road, tried to sell the unit bought from KepLand.
The developer had wanted the original buyer to not only be liable for breaches by the sub-purchaser, but also to ensure that property tax and maintenance bills are paid.
Asked to sign such a form, the original buyer asked lawyers to look into its enforceability. The lawyers then wrote to the Housing Controller for advice.
In response to the law firm, the Controller of Housing said in a letter seen by TODAY: “We are of the view that requiring your clients to sign a Letter of Authority with the indemnity clause stated above is contrary to the intention of rule 16 of the Housing Developers Rules, which requires a developer to enter into a fresh S&P Agreement (Sale and Purchase) with the sub-purchasers on the same terms and obligations as the original purchasers. This will place the sub-purchasers in a direct contractual relationship with the developer and releases the original purchasers from their obligations under the original S&P Agreement.”
The Controller added: “We have therefore written to the developer to request that the indemnity clause be deleted from the Letter of Authority which your clients have been asked to sign and complete the sub-sale expeditiously.”
A KepLand spokesman said the matter had since been resolved between the company and the purchaser, and the offending clause taken out of the S&P agreement.
A lawyer-friend of the purchaser said: “The clause should never have been included in the first place. How can any purchaser keep tabs on the financial position of a sub-purchaser down the road?”
Sources said this was not first time that KepLand had asked original purchasers to sign the indemnity form. It also appears that other developers have asked their purchasers to sign similar forms or are keen to follow KepLand’s example.
“In the current climate where scores of purchasers are said to be defaulting on their mortgage payments, it’s not hard to see why developers have to resort to such measures to protect their own interests,” said a prominent developer.
Against a backdrop of rising business failures and unemployment, property industry observers think mortgage defaults could increase this year. As a result, banks have become stricter on their mortgage financing, especially for those buying second and third properties.
Source : Today - 3 Mar 2009
Some developers are getting so “kiasu” (afraid to lose out) that they are getting the original buyers of homes to indemnify them should a sub-purchaser fail to pay. However, the Controller of Housing has told at least one developer, Keppel Land, that this is wrong.
The issue was raised when the buyer of an apartment at Park Infinia at Wee Nam Road, just off Keng Lee Road, tried to sell the unit bought from KepLand.
The developer had wanted the original buyer to not only be liable for breaches by the sub-purchaser, but also to ensure that property tax and maintenance bills are paid.
Asked to sign such a form, the original buyer asked lawyers to look into its enforceability. The lawyers then wrote to the Housing Controller for advice.
In response to the law firm, the Controller of Housing said in a letter seen by TODAY: “We are of the view that requiring your clients to sign a Letter of Authority with the indemnity clause stated above is contrary to the intention of rule 16 of the Housing Developers Rules, which requires a developer to enter into a fresh S&P Agreement (Sale and Purchase) with the sub-purchasers on the same terms and obligations as the original purchasers. This will place the sub-purchasers in a direct contractual relationship with the developer and releases the original purchasers from their obligations under the original S&P Agreement.”
The Controller added: “We have therefore written to the developer to request that the indemnity clause be deleted from the Letter of Authority which your clients have been asked to sign and complete the sub-sale expeditiously.”
A KepLand spokesman said the matter had since been resolved between the company and the purchaser, and the offending clause taken out of the S&P agreement.
A lawyer-friend of the purchaser said: “The clause should never have been included in the first place. How can any purchaser keep tabs on the financial position of a sub-purchaser down the road?”
Sources said this was not first time that KepLand had asked original purchasers to sign the indemnity form. It also appears that other developers have asked their purchasers to sign similar forms or are keen to follow KepLand’s example.
“In the current climate where scores of purchasers are said to be defaulting on their mortgage payments, it’s not hard to see why developers have to resort to such measures to protect their own interests,” said a prominent developer.
Against a backdrop of rising business failures and unemployment, property industry observers think mortgage defaults could increase this year. As a result, banks have become stricter on their mortgage financing, especially for those buying second and third properties.
Source : Today - 3 Mar 2009
Sunday, March 1, 2009
District 11 - The Arte @ Thomson
The convenient location and contemporary design of The Arte will conspire with the cornucopia of amenities to redefine a new perspective in city living. Without a doubt, the artfully-named development will infuse much welcome colour into the evolving face of Thomson-Balestier into a thriving locale.
Developer: City Development Ltd
Architect: SCDA Architects Pte Ltd
Location: Jalan Datoh / Jalan Raja Udang (District 11)
Site Area: 16,625.30 sq m(178,955 sq ft)
Tenure: Freehold
Expected Completion: Dec 2012
Total Units: 336 in two blocks of 36 storeys
Unit Types:
2-Bedroom ( 54 units) Size ~ 1055 sq ft
3-Bedroom (164 units) Size ~ 1399-1625 sq ft
4-Bedroom (100 units) Size ~ 1873 sq ft
Sky suites ( 8 units) Size ~ 2896 sq ft
Sky villas ( 10 units) Size ~ 2616-4015 sq ft
Above informations subject to change without prior notice.
Previewing soon!
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