Property News!

[jq75]

Alexandra becoming hot spot for new homes
More private projects coming up as CBD fringe has expat-rental potential

Published on Jan 05, 2013

Alexandra was once largely occupied by Housing Board flats, but more private residential projects - such as the Alexis (above), which was completed in 2009, and the Echelon - have been or will be built in the area, resulting in a change in its profile. -- PHOTOS: LAU FOOK KONG, CITY DEVELOPMENTS



By Cheryl Lim
BETTER known for its industrial and office buildings, the sleepy neighbourhood of Alexandra has slowly been gaining favour among home buyers in recent years.

Ms Jacqueline Wong, head of corporate residential solutions at HSR Property Consultants, said residential options in the area had long been largely limited to Housing Board flats.

But Mr Steven Tan, managing director of OrangeTee, said the profile of the area has changed in recent years.

He said more private property projects - such as the Metropolitan, Alexis and Echelon - have been or will be built on sites previously occupied by public housing.

Flanked by neighbouring towns Tanglin and Queenstown, Alexandra is on the fringes of the District 10 prime residential area.

The mature estate's proximity to the Central Business District, Orchard Road and public transport has made it a favourite locale for expats looking for rental properties.

"(Alexandra) is in a mature estate that offers a lot of amenities like schools, retail shops and entertainment areas," said Mr Tan.

"Expatriates find it easy to fit in, and thus provide a good catchment (audience) for the rental market," he added.

This demand for rental housing has led to an increase in investor interest, pushing up the prices of private homes in the area.

Data from OrangeTee shows that the average prices of new homes launched this year hovered between $1,600 per sq ft (psf) and $1,800 psf.

About a fortnight ago, 200 units at the Echelon project in Alexandra View were snapped up, at prices averaging $1,700 psf.

The project consists of 508 units, spread over the condominium's two 43-storey towers.

Mr Tan said property prices of private homes in Alexandra rose about 8 per cent to 10 per cent in the final three months of last year, compared with the same period in 2011, outperforming the 2.8 per cent rise recorded in the Urban Redevelopment Authority's fourth-quarter flash estimates for the same period.

Mr Tan also said resale transactions in Alexandra grew by about 10 per cent in the second half of last year, compared with the first six months of last year, well above the 5.5 per cent rise in islandwide transactions for the same period.

Ms Wong said a resale one-bedroom 400 sq ft apartment in the Alexis project would cost from $700,000 to $800,000.

The Alexis is a 293-unit condominium project that was completed in 2009. It comprises mainly one-bedder and two-bedder apartments, with some measuring around 366 sq ft.

The heightened interest has also trickled down to land prices, with winning bids for government land tenders moving up 15 per cent to 27 per cent in the last year.

Last December, a 99-year Alexandra Road condo site near Redhill MRT station fetched a price of $332.7 million, which translates to $970 psf per plot ratio.

OrangeTee's Mr Tan said the prices of homes in Alexandra are set to increase.

"Areas that are closer to town like Alexandra will become increasingly more attractive, particularly to investors.

"Land in prime areas is scarce. Therefore, future purchasers who are keen to invest in the traditional prime areas such as District 9, 10 and 11 may consider alternative choices in the fringe areas."

He also added that with more private homes due for completion in the neighbourhood in the next few years, Alexandra could be rejuvenated, and that could spur greater interest in the segment.

 

[jq75]

Thomson View condo sold en bloc for $590m

Published on Sep 07, 2012
10:30 AM

Owners of Thomson View units are set to receive gross proceeds of $1.62 million to $3.59 million. -- PHOTO: HSR INVESTMENT SALES

By Esther Teo, Property Reporter


Thomson View Condominium has breathed new life into the collective sale market, fetching a whopping $590 million in the fifth largest such sale here.

One factor that helped clinch the landmark sale was likely the newly announced nearby Upper Thomson MRT station - part of the upcoming Thomson Line.

Many experts had thought the days of mega collective sales of more than $500 million were over in the wake of the property market cooling measures.

But mainboard-listed developer Wee Hur Development and private equity investment company Lucrum Capital have proved them wrong.

They teamed up to buy the 540,314 sq ft site along Upper Thomson Road for $712 per sq ft (psf) per plot ratio (ppr).

This is a boost to a market which has seen mostly only smaller collective sales of under $100 million in recent years.

Owners of Thomson View units - ranging from apartments to townhouses and shop space - are set to receive gross proceeds of $1.62 million to $3.59 million, marketing agent HSR said. This is about 30 per cent to 40 per cent more than selling individual units would have fetched.

Resident Sebastian Teo, 27, said the sale was good news. "I'm very used to this place but it'll also be nice to get a change of environment. We'll start looking for an new apartment soon." He is the managing director of an interior design firm.

 

[propguru]

Latest Property Cooling Measures - Effective 12 Jan 2013

SINGAPORE - From tomorrow, new measures to cool the private and public housing markets will take effect.

The measures include tighter eligibility for loans to buy HDB flats, Permanent Residents (PRs) who own a HDB flat will be disallowed from subletting their whole flat, and they must sell their HDB flat within six months of purchasing a private residential property in Singapore.

The changes are meant to further moderate the demand for HDB flats, instil greater financial prudence among buyers, and require owner occupation by PR buyers, said the Ministry of Finance, Ministry of National Development, Monetary Authority of Singapore and Ministry of Trade & Industry in a joint statement.

For Executive Condominiums (ECs), the maximum strata floor area of new EC units will be capped at 160 square metres, while sales of new dual-key EC units will be restricted to multi-generational families only.

Private enclosed spaces and private roof terraces will be treated as gross floor area (GFA), which will be counted as part of the "bonus" GFA of a residential development and subject to payment of charges.

There will also be Additional Buyer's Stamp Duty (ABSD) rates imposed on PRs buying their first residential property and on Singaporeans purchasing their second residential property. These measures are temporary, and will be reviewed in the future depending on market conditions, said the joint statement.

The Government is also introducing Seller's Stamp Duty (SSD) on industrial property to discourage short-term speculative activity which could distort the underlying prices of industrial properties and raise costs for businesses.



More details from the joint statement:



ADDITIONAL MEASURES TO ENSURE A STABLE AND SUSTAINABLE PROPERTY MARKET

1 The Government announced today a comprehensive package of measures to cool the residential property market. It also introduced a Seller's Stamp Duty on industrial properties for the first time, to discourage speculative activity in the industrial market.



Cooling Measures for the Residential Property Market

2 The Government has implemented several rounds of measures to cool demand and expand supply, so as to moderate the increase in housing prices. While these measures have dampened speculative buying, the demand for residential property remains firm and prices have continued to rise.

3 The continued buoyancy of the property market reflects the very low interest rate environment and continued income growth in Singapore. These factors supported a record level of housing transactions last year, particularly from investment demand. Housing prices have also shown signs of reaccelerating in recent months, in both the private residential and HDB resale flat markets. Price increases, if not checked, will run further ahead of economic fundamentals and raise the risk of a major, destabilising correction later on.

4 The Government has therefore decided to implement a further set of measures to cool the private and public housing markets. These measures are calibrated to be tighter on property ownership for investment, as well as on foreign buyers. To discourage over-borrowing, financing conditions for housing have also been tightened. In addition, structural measures have been implemented to strengthen the policy intent of public housing and executive condominiums.

5 Deputy Prime Minister and Minister for Finance Mr Tharman Shanmugaratnam said: "The reality we face is that interest rates are extraordinarily low, globally and in Singapore, and continue to add fuel to our property market. We have to take this further round of measures now, to check recent market trends and avoid a more serious correction in prices further down the road."

6 Minister for National Development Mr Khaw Boon Wan said: "A large supply of public and private housing - up to 200,000 units in total - will be completed in the coming years. Coupled with the new measures, we will be better placed to ensure that housing remains affordable to Singaporeans."



Measures Applicable to all Residential Property

7 The following measures will take effect on 12 January 2013:

a) Additional Buyer's Stamp Duty (ABSD) rates will be:

i) Raised between five and seven percentage points across the board.

ii) Imposed on Permanent Residents (PRs) purchasing their first residential property and on Singaporeans purchasing their second residential property.

b) Loan-to-Value limits on housing loans granted by financial institutions will be tightened for individuals who already have at least one outstanding loan, as well as to non-individuals such as companies.

c) Besides tighter Loan-to-Value limits, the minimum cash down payment for individuals applying for a second or subsequent housing loan will also be raised from 10% to 25%.

8 The measures listed above will not impact most Singaporeans buying their first home. Some concessions will also be extended to selected groups of buyers, such as married couples with at least one Singaporean spouse who are purchasing their second property and will sell their first residential property.

9 These new ABSDs and loan rules are significant, but they are temporary. They are being imposed to cool the market now, and will be reviewed in future depending on market conditions.

10 The details of the ABSD measure are set out in Annex I, and the housing loan measures, in Annex II.



Measures Specific to Public Housing

11 The Government is also introducing measures to further moderate the demand for HDB flats, instil greater financial prudence among buyers, and require owner occupation by PR buyers.

The following measures will take effect on 12 January 2013:

a) Tighter eligibility for loans to buy HDB flats:

i) MAS will cap the Mortgage Servicing Ratio (MSR) for housing loans granted by financial institutions at 30% of a borrower's gross monthly income

ii) For loans granted by HDB, the cap on the MSR will be lowered from 40% to 35%.

b) PRs who own a HDB flat will be disallowed from subletting their whole flat.

c) PRs who own a HDB flat must sell their flat within six months of purchasing a private residential property in Singapore.

Details of these measures are in Annex III.

12 An additional measure will take effect on 1 July 2013 to tighten the terms for granting HDB loans and the use of CPF funds for the purchase of HDB flats with remaining leases of less than 60 years (details of this measure are in Annex IV).



Measures for Executive Condominium Developments

13 The Government will introduce measures specific to new EC developments to ensure that ECs continue to serve as an affordable housing option for middleincome Singaporean families.

14 The following measures will take effect on 12 January 2013:

a) The maximum strata floor area of new EC units will be capped at 160 square metres.

b) Sales of new dual-key EC units will be restricted to multi-generational families only.

c) Developers of future EC sale sites from the Government Land Sales programme will only be allowed to launch units for sale 15 months from the date of award of the sites or after the physical completion of foundation works, whichever is earlier.

d) Private enclosed spaces and private roof terraces will be treated as gross floor area (GFA). The GFA of such spaces in non-landed residential developments, including ECs, will be counted as part of the 'bonus' GFA of a residential development and subject to payment of charges. This is in line with the treatment of balconies under URA's current guidelines.



Cooling Measure for the Industrial Property Market: Seller's Stamp Duty

15 Prices of industrial properties have doubled over the last three years, outpacing the increase in rentals. In addition, there has been increasing speculation in industrial properties: in 2011 and the first eleven months of 2012, about 15% and 18% respectively of all transactions of multiple-user factory space were resale transactions carried out within three years of purchase. This is significantly higher than the average of about 10% from 2006 to 2010.

16 The Government is introducing Seller's Stamp Duty (SSD) on industrial property to discourage short-term speculative activity which could distort the underlying prices of industrial properties and raise costs for businesses.

17 The following SSD rates will be imposed on industrial properties and land bought and sold within three years of the date of purchase:

a) SSD at 15% if the property is sold in the first year of purchase, i.e. the property is held for one year or less from the date of purchase.

b) SSD at 10% if the property is sold in the second year of purchase, i.e. the property is held for more than one year and up to two years from the date of purchase.

c) SSD at 5% if the property is sold in the third year of purchase, i.e. the property is held for more than two years and up to three years from the date of purchase.

These SSDs will apply for industrial properties and land bought on or after 12 January 2013.

18 The Inland Revenue Authority of Singapore (IRAS) will be releasing an E-tax guide on the circumstances under which SSD is applicable and the procedures for paying SSD.



Issued by the Ministry of Finance, Ministry of National Development, Monetary Authority of Singapore and Ministry of Trade & Industry

11 JANUARY 2013

 

[propertyhunter]

New condo launch at Jurong Gateway Road

Hi fellow investors,

Does anyone knows what is the expected launching price of this upcoming condo launch at Jurong Gateway next to Jurong East MRT?

Website: juronggatewaycondo.sg

Looking to purchase 2 bedroom unit for investment.

Many thanks!

 

[propguru]

Developers’ landbanks depleted by robust sales

The Straits Times - 30 Mar 2013: ROBUST sales of new private homes have depleted the landbanks of most developers, amid a period of intense competition for new sites.

A survey shows that 16 of the 27 major builders have a smaller store of development land now, compared with January last year. The fall comes despite the bumper supply of sites released by the Government over the past year.


Moreover, 19 developers had fewer than 1,000 apartments left in their landbanks as of the end of last month, according to the survey by DTZ Research. A further seven developers had between 1,000 and 2,000 units.

The developers' landbank numbers do not take into account strong home sales this month, which should deplete landbanks even more.

A landbank comprises unsold units – including executive condominiums – from projects with planning approval and estimated number of units from sites yet to obtain approval.

Units in projects that have obtained their certificate of statutory completion, and redevelopment projects without planning permission, are excluded.

City Developments and its parent company Hong Leong Group have the biggest stock, with 6,383 homes – made up of land parcels in Sengkang and projects like D’nest and Bartley Ridge that are being built.

Most other developers have fewer than 2,000 units in their landbanks.

Second-placed CapitaLand has 1,699 units, and Hongkong Land and its subsidiary MCL Land have 1,605 units.

IOI Corporation, Allgreen Properties, Wheelock Properties and Frasers Centrepoint all have fewer than 1,000 units each.

Experts note that many landbanks have been eroded by roaring home sales over the past year.

Privately held Far East Organization fell from second to fifth spot within a year, with its landbank down from 2,592 units to 1,498.

Frasers’ landbank fell from 1,951 units and third position in January last year to just 632 and 12th spot in the rankings.

CapitaLand, Keppel Land and Wheelock have moved up the league table after securing Government Land Sales (GLS) sites in the past 12 months.

At least two foreign players have also bucked the trend, gaining a larger market share by acquiring GLS parcels.

Chinese company MCC Land and Hao Yuan Investment have 1,484 units in total. This puts them in sixth position, up from 13th place last time.

While they are unrelated parties, their landbanks have been seen as one as they often work together on projects, DTZ noted.

MCL Land and Hongkong Land climbed from 13th spot to third this year.

DTZ’s head of Singapore research Lee Lay Keng noted that the GLS programme was the main source of growth for developers that expanded their landbanks, while those that missed out on many sites went down the rankings.

As a result, most units in developers’ landbanks are in suburban areas, where most GLS sites are.

“In general, a developer should have a few projects on hand, but the number of units that constitute a ‘healthy landbank’ depends on the scale of these projects and the size of the developers, their business models and risk appetites,” noted Ms Lee.

Experts add that listed developers often face pressures to replenish their landbanks to bring in returns for shareholders, but high land prices and an increase in the number of bidders for GLS sites have thrown up challenges.

Tuan Sing Holdings chief financial officer Chong Chou Yuen noted that smaller contractors and groups of investors making their foray into development have made it more difficult to secure a site.

“Apart from GLS sites, one other area we might consider could be en bloc sites instead,” he added.

 

[jq75]

$300m too pricey for bungalow with pool, tennis court?
Experts say it could be on market for a while despite rarity of 85,000 sq ft plot

Published on Apr 11, 2013
10:00 AM

The asking price for the Nassim Road bungalow is about 50 per cent above the record per sq ft price in the area, say experts. -- ST PHOTO: MARK CHEONG

By Esther Teo Property Correspondent
THE eye-popping asking price of up to $300 million for a bungalow in the posh Nassim Road enclave has set tongues wagging.

But experts doubt a buyer can easily be found willing to part with such a vast sum for the large 85,000 sq ft plot and lavish home that comes with a tennis court and swimming pool.

A sloping driveway leads to the two-storey house built on elevated ground. The bungalow sits in the centre of the plot with a large grassy field occupying about a third of the site.

The asking figure, if secured, would smash previous records.

And as well as the sky-high total figure, the asking price is also about 50 per cent above the record per sq ft (psf) price in the area, say industry watchers.

They suspect it could be on the market for some time despite the rarity of such a large plum site.

The owner, developer Wing Tai Holdings' chairman Cheng Wai Keung has held the home since the mid-1980s. He is asking for $250 million to $300 million - or $2,947 psf to $3,536 psf of land area.

This psf price dwarfs the most expensive good-class bungalow sold to date - a 15,640 sq ft Leedon Park property for $2,110 psf.

It would also easily eclipse the priciest home ever sold on the Nassim Road stretch - a $47.8 million sale of a 23,922 sq ft site that worked out to $2,000 psf. And it would easily become Singapore's most expensive home ever sold.

The tenant, who moved out yesterday, a lawyer, is believed to be the Honorary Consul to Singapore for Barbados.

A marketing agent specialising in good-class bungalows said the sellers are "unlikely to get the price they are asking for".

"The market is not great now (with the cooling measures). Why would a buyer want to pay so much more?" he added.

And even if an investor wanted to carve up the plot into five smaller parcels, he might have to wait four years before selling the units or pay a hefty seller's stamp duty of up to 16 per cent.

But Mr Karamjit Singh, head of investments and residential at Jones Lang LaSalle (JLL), the sole marketing agent for the site, said the owners had received unsolicited offers for the plot. He did not disclose the offers.

"There are buyers who have told us they have been waiting for the right plot with the Nassim Road address to come on the market. Such is the unique appeal of Nassim Road," he said.

However, it is unclear why Mr Cheng is selling the house now or why he is not developing the plot.

There have been six good-class bungalow deals inked in areas such as Yarwood Avenue, Windsor Park Hill and Camden Park so far this year, CBRE said. These six transactions total $136 million.

CBRE's director of luxury homes, Mr Douglas Wong, said first-quarter volumes were thin with buyers not much interested in negotiating.

But interest has picked up since last month with quite a few inquiries, he added.

Some investors have made handsome profits by flipping good-class bungalows, the highest-end homes here that are typically at least 15,000 sq ft in size. A 24,187 sq ft bungalow along Nassim Road sold in April 2010 for $43.53 million netted the seller a profit of $19.35 million after he paid $24.18 million in 2007.

 

[jq75]

Slump in private home resale market
SRX data shows March volumes down by about 50% year on year

Published on Apr 11, 2013

Potential buyers looking at a model of the Urban Vista development at its launch last month. Developers in the new sales market have been quick to offer incentives to offset the impact of cooling measures, say experts. -- ST PHOTO: KUA CHEE SIONG

By Melissa Tan
THE private home resale market took a major hit last month from the seventh round of cooling measures unveiled in January.

Resale volumes in March slumped by half from the same month last year.

The impact on prices was more muted, though, as average resale prices slid 2 per cent from February, Singapore Real Estate Exchange (SRX), a consortium of the country's leading property agencies said yesterday.

A total of 609 transactions were recorded in March by SRX. This was 87 per cent higher than in February, as Chinese New Year fell within that month.

But analysts noted that the figure was about 50 per cent lower than March last year.

Condo resale volumes for the January to March period were also nearly 40 per cent lower than the preceding quarter.

DWG senior manager Lee Sze Teck cited sellers' "reluctance" to lower prices. This contrasts with the new sales market, where developers have been quick to offer incentives to offset the impact of cooling measures, Mr Lee said, pointing out that new sales rose by about 12.5 per cent in the first quarter from the preceding one.

But though volumes have come down sharply, prices did not follow suit in March.

The dip in condo resale prices was largest in the suburban region, which posted a 3 per cent decline to $1,071 per sq ft on average. That is still above the psychologically daunting $1,000 psf threshold that suburban condo resale prices exceeded for the first time in February this year.

City centre average resale prices dropped 2 per cent to $1,788 psf, while city fringe prices stayed largely flat at $1,301 psf on average last month, SRX said in its flash report.

"As long as interest rates stay low, holding costs are low and sellers are not compelled to cut prices," said ERA Realty key executive officer Eugene Lim.

Softening prices combined with higher rents boosted rental yields islandwide last month.

The city fringe had the highest gross rental yield at 3.8 per cent, followed by suburban yields at 3.7 per cent. The city centre had the lowest rental yield at 3.1 per cent.

On a quarterly basis, however, overall condo resale prices grew 4.2 per cent, owing to stronger increases in January and February, SRX said.

A DTZ report yesterday said price growth across most non-landed segments slowed by more than half in the first quarter compared with the fourth quarter last year.

But sequential price growth in the first quarter was stronger than in the corresponding period last year, which was immediately after an additional buyer's stamp duty was imposed for the first time.

This could be due to buyers "getting accustomed" to the duty and earlier tighter loan restrictions, said DTZ.

March's flash report is the first time SRX has used a weighted average to compute overall average resale price.

Without this, noted OrangeTee research and consultancy head Christine Li, March resale prices would have increased from February.

 

[jq75]

Strong debut for Twin Fountains EC in Woodlands

Published on Apr 11, 2013
By Melissa Tan


THE first executive condominium (EC) to go on the market this year made a solid debut at its launch yesterday.

As of 5pm yesterday, there were 155 e-applications for Twin Fountains in Woodlands, said Frasers Centrepoint Homes chief executive Cheang Kok Kheong. That exceeded a third of the available units. Of that number, 31 per cent are by first-time buyers.

OrangeTee managing director Steven Tan said the number of applications was a positive sign, especially since the launch was on a Wednesday, meaning that many buyers may be too busy at work to submit their applications. It points to strong demand this weekend, he said.

The 418-unit project is being jointly developed by Frasers Centrepoint and Lum Chang.

Units are priced from $580,000 for a two-bedroom apartment to $1.26 million for a four-bedroom dual-key unit, with pricing ranging between $660 and $790 per sq ft (psf). The site was won for about $150 million, or about $302 psf per plot ratio, last October.

"We anticipate that the number of e-applications made will increase steadily over the 11-day e-application period, with more notable increases on weekends," Mr Cheang said.

E-application is open until April 21. Successful applicants will be able to book units on May 11. The project is due to be completed in October 2016.

The next EC project is the 653-unit Forestville, also in Woodlands. It is expected to go back on the market before the end of June.

The project, developed by Hao Yuan Investment but managed by MCC Land, was first launched last December. But it later transpired that Hao Yuan had not been authorised by the Urban Redevelopment Authority to sell any of the units yet.

Twin Fountains and Forestville would be the only EC projects this year to escape a ruling on buying dual-key units that took effect on Jan 12. Sales of dual-key units at future EC projects will be restricted to multi-generational families.

 

[vovolversace]

Could anyone please voice out views about this new upcoming project at keppel nay?

buy reflection better la.

 

[jq75]

Fewer HDB dwellers buy private properties as cooling measures bite

Published on Jul 20, 2013
7:40 AM

Crowds thronging the showroom on the first weekend of the launch of CapitaLand’s Moshe Safdie-designed Sky Habitat condominium in Bishan. Recent property measures have put a squeeze on the number of Housing Board dwellers buying private properties. -- vT FILE PHOTO: SEAH KWANG PENG

By Daryl Chin Property Correspondent
Recent property measures have put a squeeze on the number of Housing Board dwellers buying private properties.

According to the latest early figures, buyers with HDB addresses picked up 3,700 new private homes in the first six months of the year. This seems to mark a slowdown from last year, which saw 9,985 such transactions across 12 months.

A similar trend has been seen in the private resale market. HDB upgraders bought just 1,550 homes in the first half of this year, compared to 5,261 for the whole of last year.

R'ST Research director Ong Kah Seng said that the market is feeling the effects of the cooling measures introduced in January to prevent home buyers from biting off more than they can afford.

Not only must buyers borrow less on their second housing loan, they also need to stump up 25 per cent of the property's value, up from 10 per cent. Stamp duty for second property purchases also rose to 7 per cent, from none in the case of citizens.

"Besides, many HDB dwellers may have also bought their private properties last year due to a strong supply in attractive locations such as Punggol," said Mr Ong. There were 21,000 private property units launched last year, compared to 10,000 so far in the first half of this year.

The latest figures on HDB upgraders were culled from caveats lodged voluntarily with the Urban Redevelopment Authority. They do not take into account whether buyers own or rent their HDB flats, or if they were buying their first or second private property.

Analysts, including Mr Ong, predict that the number of HDB upgraders will continue to shrink over the next two years.

This is partly because of new rules issued by the Monetary Authority of Singapore last month, which cap a person's total monthly debt repayments at 60 per cent of his gross monthly income. That means that even car loans will be factored in when calculating how much a person can borrow to finance a property purchase.

DTZ's head of Singapore research Lee Lay Keng believes the introduction of the total debt servicing ratio could lead to HDB upgraders scaling back their private property plans. For instance, a buyer earning $8,000 a month who already pays $1,500 towards a car loan instalment will be restricted to buying a second property worth $1.1 million, down from $1.6 million previously.

"The biggest hurdle for this group lies in the cash outlay that includes stamp duties, downpayment and other costs. This can amount to three times the annual income," she added.

Finance executive Leong Yi Xing is waiting for the dust to settle in the wake of the new measures before deciding on upgrading from his five-room Bedok flat.

"HDB prices are still holding up very well compared to private property prices, which may have more room to drop. I'll wait for the price between the two to narrow," said the 31-year-old.

 

[jq75]

More executive condominiums up for grabs
Seven projects to go on market in second half of the year

Published on Jul 20, 2013

Sea Horizon, to be launched next month, boasts "panoramic sea views" and units with french balconies and full-height windows. -- PHOTO: HAO YUAN DEVELOPMENT
Sea Horizon, to be launched next month, boasts "panoramic sea views" and units with french balconies and full-height windows. -- PHOTO: HAO YUAN DEVELOPMENT
JBE Holdings director Patrick Lam. -- ST PHOTO: MARK CHEONG

By Melissa Tan


Executive condominium (EC) developers are again pulling out all the stops in the battle for buyers as competition intensifies in the second half of this year.

Developers of projects under this very popular public-private housing hybrid are no longer allowed to build gargantuan penthouse suites after unit-size restrictions were imposed in January.

The penthouses had been selling for sky-high prices.

But developers now aim to stand out from the crowd by offering ECs with features such as maisonette units, waterfront views, balcony entrances and even a "skypark" 50m above ground.

Of the seven EC projects slated for launch this year, five will go on sale some time over the next four months.

This means that of the 3,337 EC units in this year's supply, an expected 2,226 units will hit the market from now till October.

But EC supply next year is likely to plummet due to a 15-month rule on sales that was also imposed in January.

Under the rule, EC developers have to launch their projects for sale 15 months from the date of award of the sites or after the physical completion of foundation works, whichever is earlier.

Market watchers reckon that there will be no new EC launches for at least the first three quarters of next year and the number of new EC launches next year could be as little as two projects.

ECs are designed to cater to a "sandwiched class" of people who earn too much to qualify for a Housing Board flat but find private property prices too high.

Some first-time developers with solid track records in the luxury segment have also thrown their hats into the ring, lured by the lower total development costs for EC projects compared with private condominium projects.

The price developers pay for EC sites is lower than that for private residential plots because restrictions apply to EC resales during the first decade of occupation.

The new faces in the segment include boutique developers JBE Holdings and Sing Holdings, which are both better known for their high-end projects.

"We're very confident of the EC market... We know that EC buyers are getting more sophisticated," JBE Holdings director Patrick Lam told The Straits Times in an interview on Thursday at The Luxe at Handy Road, which JBE developed.

JBE's upcoming EC project is the 506-unit SkyPark Residences at Sembawang Drive, under a joint venture with construction firm Keong Hong. E-applications are likely to begin in September and bookings in October.

Mr Lam said the EC segment was a "good diversification" away from the luxury market and added that JBE's next project is also likely to be an EC.

JBE won the site for $211.9 million or $323.76 per sq ft (psf) per plot ratio (ppr) last December. The project's construction cost is likely to be just under $150 million, Mr Lam said.

Of that, $3 million to $5 million will be spent on a 1,250 sq m "skypark" straddling three towers about 50m above ground.

No official pricing has been released but market watchers say the price could be between $720 psf and $800 psf.

Both SkyPark Residences and the upcoming 373-unit WaterWoods in Punggol will also include five-bedroom maisonette units.

WaterWoods, next to the Flo Residence condo, is jointly developed by UE E&C and Sing Holdings. Sing Holdings won the site last December for $162.1 million or $351 psf ppr, nearly 9 per cent higher than the second-highest bid of $148.9 million lodged by JBE.

Sing Holdings chief executive Lee Sze Hao said the firm was using the same team working on its high-end projects for WaterWoods.

"This segment is, after all, least susceptible to market speculation, and all EC home owners will also eventually own just one property, which means they present relatively less credit risk... the EC market is one of the most stable housing segments," Mr Lee said.

Lush Acres, City Developments' 380-unit EC at Fernvale Close, was over-subscribed by about 1.6 times when it opened for e-applications last Saturday.

The next EC project to launch in upcoming months is Sea Horizon in Pasir Ris. E-applications are expected to start early next month.

Sea Horizon is Chinese developer Hao Yuan Investment's second EC project. Hao Yuan launched its first EC, Forestville in Woodlands, in June.

Its developer is touting "panoramic sea views" and units that come with french balconies and full-height windows.

"Sea Horizon is one of the rare few executive condominiums that boast a coastal location... We believe the close proximity to the coastline will be a big plus for many home buyers," a Hao Yuan spokesman said.

Unit sizes range from 71 sq m to 160 sq m. The project is expected to be priced below $1,000 psf.

melissat@sph.com.sg

BACKGROUND STORY

SOPHISTICATED

"We're very confident of the EC market... We know that EC buyers are getting more sophisticated."

- JBE Holdings director Patrick Lam. He says the EC segment is a "good diversification" away from the luxury market and adds that his company's next project is also likely to be an EC.

 

[stanicmail]

Where is the location?

 

[jq75]

What went wrong at Thomson View?

Dream $590m sale turns nightmare as High Court voids deal

Published on Sep 08, 2013

The 99-year leasehold Thomson View Condo is located along Upper Thomson Road. -- ST FILE PHOTO

By Alvin Foo And Cheryl Ong

Just when everyone thought mega collective sales worth more than $500 million were a thing of the past, along came Thomson View condominium.

It bucked the trend last September, fetching $590 million for the owners - the fifth biggest en bloc sale ever here.

But what looked like a lucrative sale and a dream come true for home owners there fast turned into a legal and ethical nightmare.

In a landmark judgment last Tuesday, the High Court voided the deal and slammed the behaviour of HSR, the marketing agent which helped the condo's collective sale committee to organise the en bloc process.

The condo occupies a 540,314 sq ft site along Upper Thomson Road with a 99-year-lease, and has 255 units ranging from apartments to townhouses and shop space.

Everything seemed rosy when mainboard-listed developer Wee Hur Development and private equity investment firm Lucrum Capital teamed up last September to buy the site for $590 million - $712 per sq ft per plot ratio.

Each owner stood to pocket gross proceeds of $1.62 million to $3.59 million.

The agents and owners celebrated and industry experts regarded the sale as a potential boost to the market, which had seen mostly only smaller en bloc deals of under $100 million in recent years.

But in January, the first sign of trouble emerged when 13 owners lodged objections.

One key issue was the sale price, which they said was too low, given a government announcement in August last year - just before the sale was sealed - that an MRT station on the Thomson Line would be built near the condo.

Having an MRT station nearby is a prized amenity for any housing project, public or private.

The deal went before the courts for approval in late June.

A key issue - the fatal flaw as it would turn out - was that collective sales committee's marketing agent, HSR, had paid some owners to consent to the sale. And HSR did this without telling the committee or other owners.

At least 80 per cent of owners have to say yes before a collective sale can proceed. It emerged that HSR had offered sweeteners in the form of more than $548,000 in additional payments to four owners to persuade them to agree to the sale.

This included offering a return business class air ticket from Amsterdam or Dusseldorf to Singapore so that one owner's wife could sign the collective sales agreement.

Although the extra payment came from HSR's own pocket, it was deemed out of line because it benefited only some owners.

Justice Andrew Ang did not mince words. He said HSR had "egregiously breached" its duty to avoid a conflict of interest during the sale process by paying some owners to back the deal.

He ruled that the four owners who received the payments could not be counted among the requisite 80 per cent majority needed for the sale to go through.

And that was enough to scuttle the sale.

Marketing agents note that monetary incentives are not common in the en bloc process, although it is believed that there have been occasional cases of payments between owners to ensure that the 80 per cent level is reached, usually in smaller en bloc deals.

The Thomson View judgment came just two weeks after the Court of Appeal upheld a ruling by High Court Justice Belinda Ang in April, halting a $33 million collective sale of Harbour View Gardens in Pasir Panjang.

Again, improper inducements to owners were at the heart of the matter.

The judge had refused to allow the sale to proceed after learning of a $200,000 inducement that the collective sales committee and marketing agent Colliers had offered to a couple to get them to agree to sell their flat.

The Sunday Times understands that Thomson View residents are considering whether to appeal against the decision.

Commenting on the likely impact of the ruling on an already cold en bloc market, Savills Singapore research head Alan Cheong said: "Developers may lose heart in such complex deals, particularly when the development has hundreds of residents to contend with and the cost of acquisition runs into the hundreds of millions."

Others feel developers would be more careful now.

"What went wrong here was the side deal between the agents and sellers," said International Property Advisor chief executive Ku Swee Yong. "Developers won't be less inclined to go for en bloc sales, but they will be more careful with doing their due diligence."

Lawyer Robson Lee said the ruling basically sets down what is appropriate conduct for agents and CSCs.

The ruling also serves as a reminder for all involved in such en bloc deals to be mindful of what is inappropriate conduct, he added.

Mr Lee did not see an impact on market sentiment. "There are wider factors that are more cardinal to demand and supply than an en bloc consent that was not appropriately obtained," he said.

One marketing agent said the ruling makes clear that side payments are now frowned on, even if disclosed, as they distort the sharing of proceeds among owners.

At Thomson View, meanwhile, the dissenters were satisfied with the court's decision but the majority who had been looking forward to an en bloc windfall were left disheartened.

Retiree Jolly Koh, 82, who had plans to downgrade to a Housing Board flat and live on the remaining proceeds, said: "We thought the deal would go through for sure this time. But now it's just such a huge disappointment."

alfoo@sph.com.sg

ocheryl@sph.com.sg



Background story

More care in future

"What went wrong here was the side deal between the agents and sellers... Developers won't be less inclined to go for en bloc sales, but they will be more careful with doing their due diligence."

MR KU SWEE YONG, International Property Advisor chief executive

TIMELINE OF EVENTS

November 2007: Site launched in collective site market, with an indicative asking price of $550 million. Sale fails to attract any bidders.

November 2011: Site is on the market at between $595 million and $635 million, but is again unsuccessful.

April 2012: Launched for en bloc a third time for $580 million.

August 2012: Put up for sale again by public tender, with a guide price of $580 million.

September 2012: Tender awarded to mainboard-listed Wee Hur Development and private equity investment firm Lucrum Capital at $590 million, or $712 per sq ft per plot ratio.

January 2013: Sale hits roadblock after 13 owners lodged objections to the deal.

June 2013: Collective sale goes to court for approval.Tuesday: High Court halts the $590 million collective sale and slams the behaviour of marketing agent HSR.

Tuesday: High Court halts the $590 million collective sale and slams the behaviour of marketing agent HSR.

 

[jq75]

Foreign home buyers in Johor face fee hike
Processing fee of 4% to 5% of sale price could start early next year

Published on Oct 09, 2013

Homes and clubhouse at East Ledang, one of the developments in Nusajaya in Iskandar Malaysia in the southern Johor state. -- ST FILE PHOTO: NURIA LING

By Lester Kong Malaysia Correspondent In Kuala Lumpur
FOREIGN property buyers in Johor will soon have to pay a higher processing fee of 4 per cent to 5per cent of the sale price, imposed to raise government revenues amid rising property prices.

Property analysts expect the new ruling to spark a buying rush before January - when it is expected to take effect - but do not see it dampening foreign demand for Johor properties.

Currently, foreigners pay only a flat fee of RM10,000 (S$3,900), though they are restricted to buying only properties that cost RM500,000 or more.

The higher fee will come on top of an expected increase in property tax rates for foreign property owners, which the state government announced in June.

With real estate prices rising in Johor, the time was "right" for the state government to introduce the new fee, State Housing and Local Government executive councillor Abdul Latiff Bandi was cited by The Star as saying yesterday.

"They now pay a flat rate of RM10,000 for residential, commercial and industrial properties and it is unfair to the state government," he said.

One hot spot is Iskandar Malaysia, where foreign buyers - most of them Singaporeans - have been snapping up homes.

The proportion of home sales to foreigners has risen steadily, from 12.1 per cent in 2010 to 15.7per cent last year, said Ms Veena Loh, general manager of government-linked research body Malaysia Property.

In the long term, property experts do not think the new fee would affect foreign buyer interest, as residential property prices - even those in high-end projects in Johor Baru, Pulai, Plentong and Tebrau - are four to eight times lower than those in Singapore.

"The new processing fee is still at an affordable level, so it is very unlikely to result in significant reduction of foreign buyers in Johor," Mr Ong Kah Seng, a property analyst at R'ST Research, told The Straits Times.

Datuk Abdul Latiff said he expects the new fee to be implemented by the end of the year or early next year. The proceeds will be used to fund projects and programmes for local residents.

"These are just some of the steps that the state government will be introducing to safeguard the interests of locals," he was quoted as saying in the New Straits Times.

Yesterday's announcement came four months after Johor Menteri Besar Mohamed Khaled Nordin said that higher assessment rates for foreign-owned properties will be imposed this year to boost the state's revenues.

Mr Abdul Latiff also said foreigners will not be allowed to buy properties in the secondary market from local residents under the new ruling, unless the properties are owned by foreigners.

Property agents believe that buyers will get used to the higher fee. Said Mr K.P. Loh, general manager of Tophill Realty in Johor Baru: "People will adjust to it, just like a petrol price hike."

Half of his company's sales come from foreign clients, more than 60 per cent of whom are Singaporeans.

- See more at: http://www.straitstimes.com/premium...r-face-fee-hike-20131009#sthash.Y00iA5kM.dpuf

 

[jq75]

Fewer people choosing career as property agents
Drop due to housing deals drying up as a result of market curbs: Consultants

Published on Jan 10, 2014
By Janice Tai

FEWER people are signing up as property agents, as the industry continues to take a hit from the spate of cooling measures that have brought down housing prices.

The number of entrants in the industry last year dropped about 27 per cent to 3,336, from 4,567 in 2012.

More agents are also exiting the industry. A total of 3,382 agents - about 11 per cent of the overall total - left the industry last year, compared to 2,996 the year before.

However, the total number of property agents has stayed consistent at around 31,000 over the past three years.

The Council for Estate Agencies, which released the figures yesterday, said "not everyone will be suitable or would be prepared to enter the industry". This is because the regulatory framework established in the past three years require property agents to be more professional.

Consultants said fewer people are keen to enter the industry, as housing deals dry up after a raft of market curbs introduced in the past few years have led to a fall in both public and private housing prices.

Public housing prices slid for two straight quarters for the first time since 2005 in the fourth quarter of last year. Prices in the suburban private home market dropped in the same period for the first time since 2009.

SLP International research head Nicholas Mak said the reduction in transaction volume has also shrunk the pie for property agents.

For example, the number of private homes sold by developers plunged from a record 22,200 in 2012 to below 16,000 last year.

But consultants also pointed out that the real estate industry is seasonal in nature, with more agents entering than exiting it during boom periods, and vice versa during downturns.

As market conditions become more challenging, consultants said consumers have the bargaining power.

"They can afford to be more choosy as there are more agents (chasing fewer deals) to serve their needs," said PropNex Realty chief executive Mohamed Ismail.

 

[jq75]

Property valuers follow guidelines, not prices

Published on Mar 14, 2014

WE REFER to the comment made by Mr Mohamed Ismail Gafoor of PropNex Realty that "HDB-appointed valuers could follow the practice in the private market, and largely match their valuations to the reported price" in an article ("Rise and fall of COV - the property mover"; Wednesday).

The Singapore Institute of Surveyors and Valuers (SISV), the national body representing the valuation profession, regrets Mr Ismail's comment, which casts aspersions on the professionalism and integrity of valuers.

In the valuation of all properties, be it HDB flats or private properties, valuers have to adopt the principles of valuation as prescribed in SISV's valuation standards and guidelines.

The market value of a property is the estimated amount for which the property should exchange on the valuation date between a willing buyer and a willing seller, in an arm's length transaction after proper marketing and where the parties have each acted knowledgeably, prudently and without compulsion.

The price of a property is the amount asked, offered, or paid for the property. Due to the financial capabilities, motivations or special interests of any given buyer and seller, the price paid for the property may or may not have any relation to the value that might be ascribed to the property.

While transacted prices can be a good indication of the market value of a property, it does not follow that a valuer will largely match the value of a property to its reported price.

Janet Han (Ms)

Secretariat

Singapore Institute of Surveyors and Valuers

 

[jq75]

Court rejects couple's bid to buy house
They had backdated option-to-buy form to circumvent new loan rules


PUBLISHED ON MAY 28, 2014 2:02 AM 0 0 0 0

The three-storey house in Jalan Angin Laut in Simei. The Court of Appeal yesterday said the contract for the house was void because the intention of Mr Law Khim Huat and his wife was illegal. -- ST FILE PHOTO

BY K.C. VIJAYAN SENIOR LAW CORRESPONDENT

A COUPLE'S bid to buy a $3.68 million house on the back of a backdated option-to-purchase form backfired in the apex court, which threw out the deal.

The Court of Appeal overruled a High Court decision last year and made clear it was a matter of public policy that the court "will not assist the buyers to benefit from their own wrongdoing".

The court, comprising Chief Justice Sundaresh Menon, Judge of Appeal Andrew Phang and Justice Judith Prakash, yesterday said the contract for the three-storey house was void because the couple's intention was illegal.

In the 56-page judgment grounds, Justice Phang wrote that "the courts will look not only at the form of the transaction but also its substance and therefore finds that an unlawful intention behind the contract renders the contract itself unlawful".

Mr Law Khim Huat and his wife had sought to buy the landed property in Simei from Madam Ting Siew May in October 2012 for $3.68 million.

On Oct 13, Madam Ting signed a form for the option to purchase given to her by the couple which was backdated to Oct 4.

This would enable the buyers to obtain an 80 per cent bank loan on the house, circumventing new rules from the Monetary Authority of Singapore (MAS) that had kicked in on Oct 5 capping loans to 60 per cent of the purchase price.

Madam Ting subsequently tried to pull out of the deal, but the High Court, on the couple's application, ordered the deal to go through.

Madam Ting, represented by Senior Counsel Alvin Yeo and lawyer M.P. Kanisan, argued on appeal that the policy objective of the rules introduced by the MAS was to protect the public through avoiding a destabilising property bubble.

The lawyers added that the backdated option was illegal under common law as it was meant to deceive the bank into giving the couple a bigger loan.

But the couple's lawyers, Professor Tang Hang Wu and Mr Ng Lip Chih, contested the claims and countered that any illegality was "now irrelevant" as the bank loan was never drawn down and, in any case, the couple were willing to cap the sum sought based on the MAS rules that had kicked in on Oct 5.

The court rejected this, holding that the move to abandon their original aim of backdating the form was irrelevant, since they knew what they intended to do was unlawful and this made the contract illegal when it was formed.

Justice Phang added that there was no basis for the proposition that a contract made with an illegal intention would no longer be illegal if the party decided not to carry out what they had originally intended.

He clarified that it was similarly irrelevant whether or not the bank involved actually was deceived or suffered damage, once the illegal object of the contract was established.

He said the court's refusal to enforce the option was an "appropriate and proportionate" response to their "wicked intention to break the law".

He noted: "In our view, public policy dictates that the court in this case refuse its assistance to a party who has knowingly backdated a contract with the clear purpose of using that false date to contravene the law."

The court made it clear that the illegal act by the couple was "not merely trivial or administrative in nature" and was directly linked to the policy objective, which was to limit the quantum of residential property loans in order to keep the property market stable.

It noted: "This policy objective would indeed be undermined if we were to permit the (couple) to enforce the backdated option."

The couple were ordered to pay costs and remove the caveat they had lodged against the property to prevent its owner from dealing with it.

vijayan@sph.com.sg

BACKGROUND STORY
APPROPRIATE RESPONSE

Public policy dictates that the court in this case refuse its assistance to a party who has knowingly backdated a contract with the clear purpose of using that false date to contravene the law.

- Judge of Appeal Andrew Phang

 

[RyuShinEX]

 

[Mr.Canberra]

New rules to protect home buyers

Thumbs up to the Ministry of National Development (MND) for enforcing better transparency!

http://www.propertyguru.com.sg/prop...015/5/94955/new-rules-to-protect-home-buyers-

May 19, 2015

Prospective buyers of private homes can look forward to a more transparent property market when changes to the Housing Developers (Control and Licensing Act) kicks in from 25 May 2015, revealed the Ministry of National Development (MND).

The new rules for residential developers will ensure more comprehensive information on prospective property purchases while showflats must accurately depict the housing units offered for sale.

Here is the full statement from MND:

In April 2013, Parliament approved amendments to the Housing Developers (Control and Licensing) Act to improve and update legislative safeguards for buyers of uncompleted private residential properties. The amendments will enhance market transparency by providing the public with more comprehensive and timelier information on the private residential property market.

Since then, MND has worked on the subsidiary legislation, the Housing Developers Rules, to effect these policy changes. The effort includes the implementation of a new set of rules on show units, the Housing Developers (Show Unit) Rules.

The legislative amendments, which were finalised through a series of consultations with members of the public and industry stakeholders, are now ready to take effect. The amendments will enable prospective home buyers to make better-informed purchasing decisions.

Weekly collection and publication of transaction data

From 25 May 2015, housing developers must submit detailed transaction information to the Controller of Housing every week. This information will include sales volumes and transacted prices of individual units in their building projects, and the value of any benefits extended to buyers.

Developers will be required to submit this information to the Controller within five days of the end of each preceding week. This information will be published on the Urban Redevelopment Authority (URA) website weekly from 5 June 2015.

More comprehensive information in transaction documents

The Option to Purchase and Sale & Purchase Agreement, which are standard forms prescribed under the Housing Developers Rules, will also be amended to enhance the safeguards for purchasers of private residential properties. For example, developers must indicate the value of any benefits (such as cash rebates, absorption of legal fees or stamp fees, rental guarantees and furniture vouchers) offered to buyers.

The amendments to both forms will take effect on 20 July 2015. This is to provide developers sufficient time to comply with the amendments.

Ensuring the accuracy of show units

MND is introducing the Housing Developers (Show Unit) Rules to ensure that all show units provided by developers are accurate depictions of housing units offered for sale.

For example, one rule requires the floor area of the show unit to be the same as that of the actual housing unit. Another rule requires all external and structural walls to be built in the actual unit to be depicted in the show unit.

These Rules will take effect on 20 July 2015 to provide developers sufficient time to comply with the new requirements. For more information, go to: http://bit.ly/1Hr1g73

 

[angw0014]

Another EC coming up.

Westwood EC
The Brownstone EC