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Samsung Hub’s 19th floor sold at S$3,175 psf

Posted by Singapore Property Launch on 10th October 2014 in Blog

Samsung Hub's 19th floor sold at S$3,175 psf

AT LEAST two sizeable strata office deals have been done lately in the Raffles Place area: Level 19 of Samsung Hub, and half of the 11th floor at Prudential Tower.

The 19th floor of Samsung Hub along Church Street has been sold for nearly S$41.7 million or S$3,175 per square foot (psf) based on the strata area of 13,121 sq ft. The buyer is said to be a foreign party purchasing the space purely as an investment. Market watchers say that might have resulted in the psf price being lower than the S$3,225 psf fetched for the whole of the 18th floor spanning 13,132 sq ft, sold last month.

In that transaction, which amounted to S$42.35 million, the buyer is believed to an Asia-based group involved in the oil and gas business among others, looking to occupy the space; existing leases on the floor run out in phases starting later this year. An owner occupier may be more motivated to pay a higher price than an investor. The lease on the entire 19th floor was recently renewed until 2017. The net yield to the buyer is believed to be sub-3 per cent.

The 18th and 19th floors each comprise six strata units.

The seller of both 18th and 19th floors is Church Street Holdings – a partnership between Buxani Group and a group of offshore investors advised by Mukesh Valabhji of Seychelles-based Capital Management Group.

With the latest sale, Church Street Holdings has sold five of the six floors in the 999-year leasehold building that it acquired from OCBC in 2007 for S$1,560 psf or S$122.4 million. The six floors were Levels 16-21. The company is now left with Level 21, for which it is said to have received unsolicited offers.

Savills is said to have brokered the sale of the 19th floor.

Over at Prudential Tower, which is on a site with about 80 years’ balance lease, half of the 11th floor space, under a single strata unit of 5,952 sq ft, has been sold for S$2,750 psf or S$16.368 million. CBRE brokered the sale, which was made to a Chinese construction group that currently occupies rental premises elsewhere in Singapore and plans to eventually occupy the Prudential Tower space it is purchasing. The space is currently leased to two tenants; the leases are said to expire next year.

The unit is being sold by a consortium that earlier this year bought Keppel Reit’s 92.8 per cent stake in the building for S$512 million or nearly S$2,316 psf on net lettable area.

Comprising KOP Limited, Lian Beng Group, KSH Holdings and Centurion Global, the consortium is said to be preparing to launch an expression of interest exercise for the other half of the 11th floor of Prudential Tower, spanning 5,102 sq ft under a single strata unit. CBRE will be marketing the unit in Singapore, while Savills will do the overseas marketing. The pricing expectation is expected to be in excess of S$2,750 psf.

Also available for sale is a half-floor unit, also 5,102 sq ft, on Prudential Tower’s 16th floor owned by the consortium. Galven Tan, director (investment properties) at CBRE, noted that the strata office market is still seeing keen buying interest from potential owner occupiers.

Market watchers, note, however, that since the total debt servicing ratio framework was introduced in June last year, strata office investors have found it harder to get loan approval compared with those buying the space for their own use.

Nearby New launches around Raffles Place:

1) Marina One Residences
2) The Crest
3) Corals at Keppel Bay
4) The Interlace
5) Commonwealth Towers

credits: stproperty

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1312 households obtained more than 2 HDB loans since last Jan

Posted by Singapore Property Launch on 9th October 2014 in Blog

singapore property launch 1312 households obtained more than 2 HDB loans since last Jan

Around 25,000 households were granted HDB loans between January 2013 and June of this year. Among this group, the housing board assisted 1,312 households with another HDB loan on top of the previous two loans.

According to the Ministry of National Development (MND), HDB evaluates the situation on a case-by-case basis before granting such loans.

“Typically, these are flat buyers who have a steady income, in urgent need of housing, but are unable to secure financing from the banks due to poor credit records,” said MND.

The ministry was responding to a query made by MP for Hougang Png Eng Huat on the number of HDB flat owners taking more than two loans. He also asked about the qualifying criteria for such loans.

credits: propertyguru

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ABSD could shrink developers’ profits by 50%

Posted by Singapore Property Launch on 9th October 2014 in Blog

singapore property launch ABSD could shrink developers' profits by 50percent

Real estate developers in Singapore are cutting unit prices by 15 percent in order to sell unsold homes and avoid steep government fines.

According to a media report, CLSA revealed property firms could offer larger discounts as they struggle to move unsold units amidst a looming deadline for failure to do so means paying the applicable stamp duties and extension fees.

Under the Residential Property Act, developers are required to pay an Additional Buyer Stamp Duty (ABSD) of 10 percent for land bought after December 2011 and 15 percent for land acquired after January 2013.

But the government will waive the fee if they agree to build, complete and then sell all their units within a stipulated period, namely four years for executive condominiums (ECs) and five years for private residential properties.

Failing to meet this condition means developers must pay the full ABSD plus interest, and this could diminish profits by up to 50 percent for some high-end developers, said CLSA.

“Given the build-up of inventory among developers and the requirement to pay an extension premium for Qualifying Certificates (QCs), developers may adjust pricing for existing launches in order to move inventory,” it added.

credits: propertyguru

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Government still studying reverse mortgage scheme

Posted by Singapore Property Launch on 9th October 2014 in Blog

Government still studying reverse mortgage scheme

The Ministry of National Development (MND) is studying several countries that have established reverse mortgage plans, revealed National Development Minister Khaw Boon Wan and reported in the media.

He made the statement in Parliament in response to a query from Nee Soon GRC MP Lee Bee Wah.

“We are studying several countries with established reverse mortgage plans, and to learn from their experiences,” he said.

Notably, a reverse mortgage is a “loan taken up by a property owner using his property as collateral. However, unlike a traditional mortgage, the borrower need not make cash repayment during the loan tenure. He only needs to repay the loan with accumulated interest upon termination or death, typically from the sales proceeds”, said Mr Khaw.

This allows the property owner to unlock some equity, while still retaining the financial upside from any appreciation in property value, he added.

But the Minister noted that the reverse mortgage scheme also has its risks since it does not require periodic cash payments such that the loan grows with interest, and the owner has to bear property risks.

“If the market value of the property becomes less than the outstanding loan, the owner may have to sell the property to repay the loan.”

He also pointed out the NTUC Income offered reverse mortgages for HDB flats in 2006, but decided to stop offering the product due to low take-up (only 24 households signed up).

In fact, the countries being studied also posted low take-up rates for the product.

“As the reverse mortgage is a complex financial product, we need to study it carefully, consult our people, before we decide whether to introduce it as an additional option for our seniors.”

credits: propertyguru

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Serangoon Garden bungalow up for auction

Posted by Singapore Property Launch on 12th September 2014 in Blog

Serangoon Garden bungalow up for auction

A freehold bungalow at 13 Brighton Crescent in theSerangoon Garden area will go under the hammer at a Colliers International auction later this month.

The property is understood to have been put up for sale by the estate of the late Raffles Girls’ School principal Noel Evelyn Norris, who died earlier this year.

The indicative price for the rectangular site is S$7.7 million or around S$890 per square foot (psf) on the land area of 8,666 square feet.

“This is a reasonably attractive price in the current market, given the site’s redevelopment potential,” said Colliers deputy managing director Grace Ng.

On site is a single-storey detached house. Under Master Plan 2014, the site is zoned for “two-storey mixed landed” use.

The site can be subdivided to accommodate either two bungalows of about 4,333 sq ft each or three terrace houses of some 2,000-3,000 sq ft each.

“Both configurations would appeal to owner occupiers seeking a huge space for multi-generation households and/or immediate relatives to live next to one another and yet enjoy privacy,” said Ms Ng.

Moreover, the freehold tenure of the property would boost its appeal to developers, she added.

The auction will be held on Sept 24 at The Amara Hotel in Tanjong Pagar.

Another property that will go under the hammer at the same auction will be a two-bedder of 1,109 sq ft on the 12th floor of One Shenton. It is being offered for sale by its owner, with an indicative price of S$2.03 million or S$1,830 psf. One Shenton is on a site with about 90 years’ balance lease. The project received Temporary Occupation Permit (TOP) about two years ago.

Colliers found buyers for four properties – three residential properties and an industrial unit – at its auction last month. The 1,614-sq-ft factory unit, on the fourth level of The Spire in Bukit Batok Crescent, fetched S$650,000, or S$403 psf. The unit was put up for sale at the auction by its owner, as was a two-bedroomapartment with private enclosed space at the first level of UE Square in the River Valley area. It sold at nearly S$1.57 million, or S$1,400 psf. The property has 929-year leasehold tenure from Jan 1, 1953.

The other two properties that transacted at that auction were put up for sale by mortgagees (or lenders).

A two-level apartment at orchard Scotts on Anthony Road was sold for S$3.3 million. This translates to S$1,565 psf based on its strata area of 2,109 sq ft. Located on the ninth floor, the unit has three bedrooms plus a study room. The project is on a site with a balance lease term of 86 years.

The other mortgagee sale property that found a new owner at Colliers’ Aug 27 auction was a freehold, three-storey corner terrace house at Eng Kong Drive in the Toh Tuck area. It changed hands at S$3 million. The property is on 2,827 sq ft of land area and has five bedrooms and a maid’s room.

Mortgagee sales have gained momentum since the second quarter of this year.

Agents expect the number of properties put up for auction by mortgagees or lenders to rise because of difficulty that financially stretched borrowers face in securing buyers for their properties since the implementation of the total debt servicing ratio(TDSR) framework in June last year. As a result, financial institutions have had to repossess more properties and put them up for auction.

credits: stproperty

Nearby New launches around Farrer Park:

1) Sky Vue
2) Sky Habitat
3) The Panorama
4) Belgravia Villas

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Exciting plans to be carried out at a measured pace

Posted by Singapore Property Launch on 31st August 2014 in Blog

Exciting plans to be carried out at a measured pace

Although Singapore is expecting a slew of upcoming projects and developments, they are likely to be rolled out at a measured pace due to labour constraints, according to a recent report by DBS Vickers Securities.

“With more contracts available, the onus is on construction companies to add to their order books. But competition has been keen and low tender prices are not helping margins in a high labour, material and subcontracting cost environment. More contracts to be won, but timing of contract award and commencement is key,” it said.

With lower project activity, competition will be keener as players have enough capacity to take on additional jobs. However if project activity is high, opportunities will open up for smaller players since more construction companies will be busy with ongoing projects.

“This will also mean higher tender prices and better profitability for both foreign and local contractors. Given labour constraints, we feel that the government will roll out the projects at a measured pace.”
For example, smaller projects like the Jurong Lake Gardens will be completed in phases, starting from 2017.

The report also highlighted the possibility the relocation of the Science Centre will make way for Singapore-Kuala Lumpur (KL) High Speed Rail (HSR) station.

“The Prime Minister, in his National Day Rally speech on Sunday, announced upcoming developments for Jurong Lake District, including plans to merge the Japanese Garden, Chinese Garden and Jurong Lake Park into one attraction and relocating the Science Centre to the Gardens. We believe this could possibly free up the Science Centre’s current site for the Singapore-KL High Speed Rail development,” the report stated.

However, DBS Vickers Securities acknowledge these information forms the preliminary outline for the Singapore-KL HSR development and more concrete development is still subject to negotiations with Malaysia.

Initial listing by Building and Construction Authority (BCA) has the Singapore-KL HSR link’s construction cost reportedly estimated to be at $15.6bn and scheduled for completion by 2019 or 2020.

credits: propertyguru

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