Jun 28, 2010
Police probe cancelled sales of HK luxury flats
HONG KONG: Police are probing the cancelled purchases of some luxury flats months after its developer said one of the units had been sold at a world-record price, a report said yesterday.
The Sunday Morning Post, citing a Transport and Housing Bureau document, said police had joined the probe into the sales after the government launched an investigation into the deals earlier this month.
Property giant Henderson Land Development reported this month that the sale of as many as 20 out of 24 units of its exclusive 39 Conduit Road tower in the city's Mid-Levels residential area had been cancelled.
The scrapped deals included what was supposed to be the world's most expensive apartment, a 554 sq m duplex that Henderson claimed sold for US$56.6 million (S$78.7 million) last October.
Critics demanded a probe, and asked why the cancellations came to light only eight months after the announcement of the sales, which helped hike prices for luxury residential flats in Hong Kong and stoked concerns about a property bubble.
Henderson has also been condemned for selectively numbering the floors on the 46-storey building as a ploy to attract Chinese buyers.
The supposed 68th-floor duplex that snatched a world- record price was actually on the 43rd and 44th floors, according to reports. It was so numbered because the number 68 sounds like 'continuing fortune' in Chinese, and is considered lucky.
A Henderson official could not be immediately reached yesterday, but a spokesman told the Post that the company would cooperate with any police probe.
'We are open to investigation. If they contact us, we'd be happy to provide them with the necessary information,' said the spokesman.
Lawmaker Ronny Tong from the opposition Civic Party said the police would look into possible fraud, but he added that the buyers could be speculators who decided to pull out of the sales fearing they could not make a profit.
Henderson reported two weeks ago that the deals had fallen through. It claimed to have made a loss of HK$734 million (S$131 million) on the unsold flats, which it said would be written off in its next financial statement.
The company has until tomorrow to give information to the HK Lands Department on the cancelled sales.
AGENCE FRANCE-PRESSE
Monday, June 28, 2010
TODAY ONLINE : Sharp drop in private home prices unlikely in H2
Sharp drop in private home prices unlikely in H2
05:55 AM Jun 28, 2010
by Ephraim Seow ephraimseow@mediacorp.com.sg
SINGAPORE - Do not expect the private residential property market to cool abruptly in the second half of this year. While property sales and home prices in some segments may soften in coming months, industry experts say the market is not likely to see a steep correction.
Observers believe buyers still have excess funds to chase more units here, with many considering property investing to be a safe haven compared to the volatile stock market. Market watchers expect 600 to 1,000 units to be sold each month, for the rest of the year.
While this is slower than the more than 1,000 units sold monthly from January to May, property analysts nonetheless say this level of demand suggests the market remains buoyant.
For the whole year, analysts expect total sales to hit between 12,000 and 15,000 units, thanks to the strong sales in the first half of the year. Sales of 7,666 private homes were recorded from January to May, more than the 7,073 sold in the same period last year.
Analysts believe the European debt crisis will lead to slower sales in the months ahead, compounded by the mismatch between buyers' and sellers' expectations, and the Government's cooling measures taking effect.
"Buyers may factor in the risks in the global market but sellers are not prepared to give that kind of discount, thinking the market will eventually improve," said Mr Nicholas Mak, real estate lecturer at Ngee Ann Polytechnic.
Private property prices may rise by between 10 and 15 per cent for the whole year.
Mr Mak said: "Developers are not likely to cut prices because they have the financial resources (from earlier strong sales) to hold on to. They also face low holding costs due to the low interest rates."
As for high-end homes specifically, prices in this segment still "have upside potential since they are still 15- to 20-per-cent lower than the peak levels in 2008," said Mr Donald Han, managing director of property consultancy Cushman and Wakefield.
Meanwhile, the large supply of land to be made available by the Government in the next six months - 27 residential sites and four mixed-use sites potentially yielding 13,905 residential units - should temper the aggressive bidding among developers, and this could have an effect on the en bloc market.
"Developers will be spoilt for choice in the Government Land Sales programme, which has a faster process. There is also no complexity arising from litigations as seen in en bloc sales," said Mr Mak.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
05:55 AM Jun 28, 2010
by Ephraim Seow ephraimseow@mediacorp.com.sg
SINGAPORE - Do not expect the private residential property market to cool abruptly in the second half of this year. While property sales and home prices in some segments may soften in coming months, industry experts say the market is not likely to see a steep correction.
Observers believe buyers still have excess funds to chase more units here, with many considering property investing to be a safe haven compared to the volatile stock market. Market watchers expect 600 to 1,000 units to be sold each month, for the rest of the year.
While this is slower than the more than 1,000 units sold monthly from January to May, property analysts nonetheless say this level of demand suggests the market remains buoyant.
For the whole year, analysts expect total sales to hit between 12,000 and 15,000 units, thanks to the strong sales in the first half of the year. Sales of 7,666 private homes were recorded from January to May, more than the 7,073 sold in the same period last year.
Analysts believe the European debt crisis will lead to slower sales in the months ahead, compounded by the mismatch between buyers' and sellers' expectations, and the Government's cooling measures taking effect.
"Buyers may factor in the risks in the global market but sellers are not prepared to give that kind of discount, thinking the market will eventually improve," said Mr Nicholas Mak, real estate lecturer at Ngee Ann Polytechnic.
Private property prices may rise by between 10 and 15 per cent for the whole year.
Mr Mak said: "Developers are not likely to cut prices because they have the financial resources (from earlier strong sales) to hold on to. They also face low holding costs due to the low interest rates."
As for high-end homes specifically, prices in this segment still "have upside potential since they are still 15- to 20-per-cent lower than the peak levels in 2008," said Mr Donald Han, managing director of property consultancy Cushman and Wakefield.
Meanwhile, the large supply of land to be made available by the Government in the next six months - 27 residential sites and four mixed-use sites potentially yielding 13,905 residential units - should temper the aggressive bidding among developers, and this could have an effect on the en bloc market.
"Developers will be spoilt for choice in the Government Land Sales programme, which has a faster process. There is also no complexity arising from litigations as seen in en bloc sales," said Mr Mak.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
TODAY ONLINE : In love with Sentosa Cove
In love with Sentosa Cove
05:55 AM Jun 28, 2010
by Esther Ng
SINGAPORE - A house in his neighbourhood was sold for $36 million and sales in the quiet and exclusive Sentosa Cove continue unabated, but shipping magnate Mahesh Iyer has no intentions of selling the bungalow he bought for just $6.8 million three years ago.
"Even if I sold it, where will I find another place like this?" he said.
Indeed, how many homes in Singapore have a yacht docked along a watercourse running in their backyard?
Coral Island, an enclave of 21 homes inside Sentosa Cove, looks like any other upper-middle class Sydney or Melbourne suburb. The absence of front gates - together with the low perimeter walls that separate the closely-built houses - lend the neighbourhood a cosy and relaxed air.
The Maheshes, who hail from Mumbai but have lived in Singapore for 11 years, will become Singapore citizens today.
When Today interviewed Mr Mahesh and his wife, Mala, three years ago, they were just about to move into their 10,000 sq ft bungalow with their two teenage children and one of the few families to move into Sentosa Cove.
"When we first moved in, we tried to order McDonald's and Pizza Hut, but they told us they don't deliver to our area. But now they do," said Mr Mahesh's daughter, Mithila, 18.
In spite of the property fever that is abuzz, most of their neighbours - including Singaporeans and those who are in banking, shipping and retail - are still living in their homes, Mr Mahesh told MediaCorp.
"We have no intention of selling. This is our home," said the 42-year-old managing director of Orient Express Lines.
The red-hot prices of Sentosa Cove's property prices do not surprise him as "supply is so little". All things considered, Singapore is still "positively cheaper" than other locations like New York and Tokyo, he added.
"We enjoy open spaces and like to walk, so Singapore offers lots of greenery and clean, unpolluted air. Also, it's safer here," said Mrs Mahesh, 42.
Waterfront living presents the family with many recreational perks - the Maheshes unwind by taking their yacht out to the Southern Islands.
With more young people in the neighbourhood, Mr Mahesh's 15-year-old son Murli and his friends relish biking over the island, and heading to Wave House, a surf and party hangout, to chill.
Since the integrated resort opened on the island, more people have moved into Sentosa Cove.
"It is a lot busier, but not in a bad way," said Murli.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
05:55 AM Jun 28, 2010
by Esther Ng
SINGAPORE - A house in his neighbourhood was sold for $36 million and sales in the quiet and exclusive Sentosa Cove continue unabated, but shipping magnate Mahesh Iyer has no intentions of selling the bungalow he bought for just $6.8 million three years ago.
"Even if I sold it, where will I find another place like this?" he said.
Indeed, how many homes in Singapore have a yacht docked along a watercourse running in their backyard?
Coral Island, an enclave of 21 homes inside Sentosa Cove, looks like any other upper-middle class Sydney or Melbourne suburb. The absence of front gates - together with the low perimeter walls that separate the closely-built houses - lend the neighbourhood a cosy and relaxed air.
The Maheshes, who hail from Mumbai but have lived in Singapore for 11 years, will become Singapore citizens today.
When Today interviewed Mr Mahesh and his wife, Mala, three years ago, they were just about to move into their 10,000 sq ft bungalow with their two teenage children and one of the few families to move into Sentosa Cove.
"When we first moved in, we tried to order McDonald's and Pizza Hut, but they told us they don't deliver to our area. But now they do," said Mr Mahesh's daughter, Mithila, 18.
In spite of the property fever that is abuzz, most of their neighbours - including Singaporeans and those who are in banking, shipping and retail - are still living in their homes, Mr Mahesh told MediaCorp.
"We have no intention of selling. This is our home," said the 42-year-old managing director of Orient Express Lines.
The red-hot prices of Sentosa Cove's property prices do not surprise him as "supply is so little". All things considered, Singapore is still "positively cheaper" than other locations like New York and Tokyo, he added.
"We enjoy open spaces and like to walk, so Singapore offers lots of greenery and clean, unpolluted air. Also, it's safer here," said Mrs Mahesh, 42.
Waterfront living presents the family with many recreational perks - the Maheshes unwind by taking their yacht out to the Southern Islands.
With more young people in the neighbourhood, Mr Mahesh's 15-year-old son Murli and his friends relish biking over the island, and heading to Wave House, a surf and party hangout, to chill.
Since the integrated resort opened on the island, more people have moved into Sentosa Cove.
"It is a lot busier, but not in a bad way," said Murli.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
BT : HK police get in the act over cancelled flat sales
Business Times - 28 Jun 2010
HK police get in the act over cancelled flat sales
(HONG KONG) Police are probing the controversial sale of luxury flats that fell through months after its developer said that one of them had set a world-record price, a report said yesterday.
The Sunday Morning Post, citing a Transport and Housing Bureau document, said that police had joined the probe into the sale after the government launched an investigation into the deal earlier this month.
A police spokesman could not be immediately reached for comment.
Property giant Henderson Land Development reported this month that the sale of as many as 20 out of 24 units at its exclusive 39 Conduit Road towers in the city's Mid-Levels residential area had been cancelled. The scrapped deals included what was supposed to be the world's most expensive apartment, a 6,158-square-foot duplex that Henderson said in October had sold for US$56.6 million.
Critics demanded a probe and asked why the cancellations came to light only eight months after the sales announcement, which helped hike prices for luxury residential flats in Hong Kong and stoked concerns about a property bubble.
Henderson has also been condemned for selectively numbering the floors on the 46-storey building as a ploy to attract Chinese buyers. The supposed 68th-floor duplex that snatched world-record price was actually on the 43rd and 44th floors, according to reports. It was so numbered because '68' sounds like 'continuing fortune' in Chinese and is considered lucky.
A Henderson official could not be immediately reached yesterday, but a spokeswoman told the Post that the company would cooperate with any police probe\. \-- AFP
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
HK police get in the act over cancelled flat sales
(HONG KONG) Police are probing the controversial sale of luxury flats that fell through months after its developer said that one of them had set a world-record price, a report said yesterday.
The Sunday Morning Post, citing a Transport and Housing Bureau document, said that police had joined the probe into the sale after the government launched an investigation into the deal earlier this month.
A police spokesman could not be immediately reached for comment.
Property giant Henderson Land Development reported this month that the sale of as many as 20 out of 24 units at its exclusive 39 Conduit Road towers in the city's Mid-Levels residential area had been cancelled. The scrapped deals included what was supposed to be the world's most expensive apartment, a 6,158-square-foot duplex that Henderson said in October had sold for US$56.6 million.
Critics demanded a probe and asked why the cancellations came to light only eight months after the sales announcement, which helped hike prices for luxury residential flats in Hong Kong and stoked concerns about a property bubble.
Henderson has also been condemned for selectively numbering the floors on the 46-storey building as a ploy to attract Chinese buyers. The supposed 68th-floor duplex that snatched world-record price was actually on the 43rd and 44th floors, according to reports. It was so numbered because '68' sounds like 'continuing fortune' in Chinese and is considered lucky.
A Henderson official could not be immediately reached yesterday, but a spokeswoman told the Post that the company would cooperate with any police probe\. \-- AFP
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : 68 units sold at Waterfront Gold
Business Times - 28 Jun 2010
68 units sold at Waterfront Gold
Two of 5 blocks, or 150 units, of Bedok Reservoir condo released last Friday
By KALPANA RASHIWALA
FRASERS Centrepoint and Far East Organization have sold 68 of the 150 units for sale at the Waterfront Gold condo fronting Bedok Reservoir as of yesterday.
These were units released by the developers last Friday.
The 99-year leasehold condo, which has a total 361 units, is priced at $950 psf on average.
Over 70 per cent of units sold were smallish apartments - one bedders, one bedroom with study units and two bedders.
Buyers were predominantly Singaporeans and there was a roughly equal split between those with HDB and private addresses. In absolute price terms, the cheapest unit sold was about $555,000, for a 581 square foot, one-bedder on the second level. Both penthouses released (about 2,000 sq ft each) were sold at an average price of about $1,025 psf or $2.1 million each.
While Waterfront Gold's sales seem tepid compared with launches earlier this year, Frasers Centrepoint Homes chief operating officer Cheang Kok Kheong said the outcome was 'within our expectation and quite remarkable given today's market sentiment'.
'We are testing the upper end of prices in the upgraders' market and because of the location and facilities, we are positioning Waterfront Gold as an upper-mid market condo rather than a mass-market product.
'For instance, we have a sky park with a dedicated express bubble lift and toilets in the development will have marble floors,' he added.
Mr Cheang also said the developers are offering two of the project's five blocks, or 150 units, as part of 'a deliberate attempt not to sell out the project'.
'We wish to sell progressively and keep the remaining three blocks until the location of the Bedok Reservoir Station on Downtown Line 3 is announced.'
Market watchers recall that during March/April, when home buying sentiment was stronger, developers used to achieve sales of about 300 units in the first weekend of a project's release.
Knight Frank managing director (residential services) Peter Ow attributed Waterfront Gold's sales result to a 'combination of challenging pricing and a slower market'.
Waterfront Gold is the third in a series of four condos that Frasers Centrepoint and Far East are developing on the former Waterfront View site.
Waterfront Waves was first released in January 2008 at an average price of about $750 psf, followed by the launch of Waterfront Key in July last year at $735 psf on average.
The developers have been raising prices in these two projects.
Waterfront Waves is now fully sold and the remaining 100-odd apartments at Waterfront Key are now selling at average prices of $850 psf for poolview units and $950 psf for reservoir-facing units.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
99-year leasehold: The condo, which has a total 361 units, is priced at $950 psf on average
68 units sold at Waterfront Gold
Two of 5 blocks, or 150 units, of Bedok Reservoir condo released last Friday
By KALPANA RASHIWALA
FRASERS Centrepoint and Far East Organization have sold 68 of the 150 units for sale at the Waterfront Gold condo fronting Bedok Reservoir as of yesterday.
These were units released by the developers last Friday.
The 99-year leasehold condo, which has a total 361 units, is priced at $950 psf on average.
Over 70 per cent of units sold were smallish apartments - one bedders, one bedroom with study units and two bedders.
Buyers were predominantly Singaporeans and there was a roughly equal split between those with HDB and private addresses. In absolute price terms, the cheapest unit sold was about $555,000, for a 581 square foot, one-bedder on the second level. Both penthouses released (about 2,000 sq ft each) were sold at an average price of about $1,025 psf or $2.1 million each.
While Waterfront Gold's sales seem tepid compared with launches earlier this year, Frasers Centrepoint Homes chief operating officer Cheang Kok Kheong said the outcome was 'within our expectation and quite remarkable given today's market sentiment'.
'We are testing the upper end of prices in the upgraders' market and because of the location and facilities, we are positioning Waterfront Gold as an upper-mid market condo rather than a mass-market product.
'For instance, we have a sky park with a dedicated express bubble lift and toilets in the development will have marble floors,' he added.
Mr Cheang also said the developers are offering two of the project's five blocks, or 150 units, as part of 'a deliberate attempt not to sell out the project'.
'We wish to sell progressively and keep the remaining three blocks until the location of the Bedok Reservoir Station on Downtown Line 3 is announced.'
Market watchers recall that during March/April, when home buying sentiment was stronger, developers used to achieve sales of about 300 units in the first weekend of a project's release.
Knight Frank managing director (residential services) Peter Ow attributed Waterfront Gold's sales result to a 'combination of challenging pricing and a slower market'.
Waterfront Gold is the third in a series of four condos that Frasers Centrepoint and Far East are developing on the former Waterfront View site.
Waterfront Waves was first released in January 2008 at an average price of about $750 psf, followed by the launch of Waterfront Key in July last year at $735 psf on average.
The developers have been raising prices in these two projects.
Waterfront Waves is now fully sold and the remaining 100-odd apartments at Waterfront Key are now selling at average prices of $850 psf for poolview units and $950 psf for reservoir-facing units.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
99-year leasehold: The condo, which has a total 361 units, is priced at $950 psf on average
BT : Underground logistics/data centre in the pipeline
Business Times - 28 Jun 2010
Underground logistics/data centre in the pipeline
JTC Corp appoints NYSE-listed firm to carry out feasibility study
By RONNIE LIM
(SINGAPORE) Singapore is studying the feasibility of building a huge underground warehousing and data centre at Tanjung Kling, near Jurong Bird Park, BT has learnt.
The logistics and data centre will be the third underground facility which Singapore is planning. Construction is already underway on the first phase $1 billion Jurong Rock Cavern to store oil and chemicals on Jurong Island, while a feasibility study is being carried out for an underground science city at Kent Ridge.
The latest project will be carried out with the help of NYSE-listed Aecom Technology Corporation. Aecom, a leading provider of technical and management support, has just been awarded the consultancy for the project, a spokeswoman for JTC Corporation said, adding that it was selected from a group of eight tenderers.
Aecom has been involved in many underground projects globally, from mines in Australia to underground rail terminals in Hong Kong and New York's subway system. In Singapore, it provided building engineering services for the Capital Tower development.
Its study of the Tanjung Kling site - from preliminary geological assessment and market research to concept development - is expected to take at least one year to complete, the JTC spokeswoman said. It follows an earlier five-month 'geological investigation and ground characterisation study' last November.
The site, comprising Tanjung Kling and Jurong Hill, can potentially provide cavern space of over 1.1 million square metres and free up 45 hectares of surface land for other uses. By going underground, the warehousing and data centre facility will enjoy advantages such as shielding from heat and temperature humidity, low background radiation and less disturbance from vibration.
Under the feasibility study, Aecom will need to assess the technical requirements of warehousing and logistics players and developers, as well as of data centre operators, in order to develop the underground facility's conceptual design.
The consultant will also engage specialists, including environmental consultants and ornithologists 'to study the impact of the underground development, during both the construction and operational phases, to existing surface developments, traffic, environment, population working in the area and the residents of the Jurong Bird Park,' according to JTC's earlier tender document.
The preliminary geological assessment will include the consultant's take on the total cavern space and volume that can be constructed.
Next will be the preliminary concepts, with the consultant recommending - from a list of usage possibilities such as general cargo and chemicals logistics to container depot - what would be viable for the underground cavern.
Finally, the study's concept development phase will include its design, method of excavation and even explore the possibility of siting a district cooling system in the cavern complex.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Underground logistics/data centre in the pipeline
JTC Corp appoints NYSE-listed firm to carry out feasibility study
By RONNIE LIM
(SINGAPORE) Singapore is studying the feasibility of building a huge underground warehousing and data centre at Tanjung Kling, near Jurong Bird Park, BT has learnt.
The logistics and data centre will be the third underground facility which Singapore is planning. Construction is already underway on the first phase $1 billion Jurong Rock Cavern to store oil and chemicals on Jurong Island, while a feasibility study is being carried out for an underground science city at Kent Ridge.
The latest project will be carried out with the help of NYSE-listed Aecom Technology Corporation. Aecom, a leading provider of technical and management support, has just been awarded the consultancy for the project, a spokeswoman for JTC Corporation said, adding that it was selected from a group of eight tenderers.
Aecom has been involved in many underground projects globally, from mines in Australia to underground rail terminals in Hong Kong and New York's subway system. In Singapore, it provided building engineering services for the Capital Tower development.
Its study of the Tanjung Kling site - from preliminary geological assessment and market research to concept development - is expected to take at least one year to complete, the JTC spokeswoman said. It follows an earlier five-month 'geological investigation and ground characterisation study' last November.
The site, comprising Tanjung Kling and Jurong Hill, can potentially provide cavern space of over 1.1 million square metres and free up 45 hectares of surface land for other uses. By going underground, the warehousing and data centre facility will enjoy advantages such as shielding from heat and temperature humidity, low background radiation and less disturbance from vibration.
Under the feasibility study, Aecom will need to assess the technical requirements of warehousing and logistics players and developers, as well as of data centre operators, in order to develop the underground facility's conceptual design.
The consultant will also engage specialists, including environmental consultants and ornithologists 'to study the impact of the underground development, during both the construction and operational phases, to existing surface developments, traffic, environment, population working in the area and the residents of the Jurong Bird Park,' according to JTC's earlier tender document.
The preliminary geological assessment will include the consultant's take on the total cavern space and volume that can be constructed.
Next will be the preliminary concepts, with the consultant recommending - from a list of usage possibilities such as general cargo and chemicals logistics to container depot - what would be viable for the underground cavern.
Finally, the study's concept development phase will include its design, method of excavation and even explore the possibility of siting a district cooling system in the cavern complex.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
ST : Condos woo buyers with glitzy extras
Jun 27, 2010
Condos woo buyers with glitzy extras
While special features may not make or break a deal, they do enhance appeal
By Joyce Teo
Developers of a condominium featuring a skypark hope the feature will prove to be a hit with increasingly demanding buyers.
The skypark is on the top 16th floor of the 361-unit Waterfront Gold in Bedok Reservoir, which is being released this weekend.
Frasers Centrepoint, which is developing the condo jointly with Far East Organization, says it is the first skypark in a private residential project.
The skypark is an 8,000 sq ft observation-cum-exercise deck offering unparalleled views of Bedok Reservoir, the developers said. Units at the condo are selling for $950 psf on average.
As consumers here mature and become more demanding, developers are coming up with more special features to entice them.
While these glitzy extras may not make or break a deal, they do help to enhance a project's appeal.
And in a quieter market, they are all the more important when it comes to attracting buyers, experts said.
'The mass market and mid-tier market have surpassed peak prices. We are going through a consolidation phase, which could last for three, four, five months,' said Cushman & Wakefield managing director Donald Han.
'Buyers shouldn't be expecting too much of a discount though as developers are still in a very strong position and can hold.'
But buyers can expect to see more of these special condo features, experts said.
A recent major suburban launch, The Minton in Lorong Ah Soo, also highlighted its many facilities, including an air-conditioned, indoor badminton hall and a 20m heated pool.
The developer of the 1,145-unit condo recently raised the price slightly to $865 psf from $850 psf last month.
And at Twin Peaks in Grange Road, which could be launched in the early part of next month, all the units will come fully furnished - a first in Singapore.
'We wanted to give something that nobody else has given in Singapore,' said Mr Thio Gim Hock, chief executive of Overseas Union Enterprise. This feature would appeal to investors, who can rent the unit out immediately, he said.
The condo should cost around $2,850 psf on average, sources said.
'Differentiating features are important factors in selling a condo,' said Knight Frank managing director for residential services Peter Ow.
'In today's context, every developer is trying out new ideas and features to distinguish themselves from the competition. Hopefully, such special features will also help them to achieve a premium.'
He added: 'Moving forward, we definitely expect developers to be more innovative in their designs and concepts.'
Colliers International's director for research and advisory, Ms Tay Huey Ying, said Singapore home-buyers have become more demanding in their expectations as standards of public and private housing here rise.
They are also now 'more well-travelled and/or are exposed to diverse living and home concepts through the Internet and media', she said.
This means developers would need to constantly look for ways to improve their offerings to stay ahead of competition, whether it is a bull or a bear market.
'In the former, the developers need differentiators to edge out competition while in the latter, the developers use differentiators, which could also include marketing gimmicks, to stimulate demand,' Ms Tay said.
House-hunter Patricia Han said: 'These extras would already have been factored into the selling price. But if I were to rent out my unit, any extras can be an incentive when I market the condo.'
Ms Tay said Waterfront Gold's skypark is 'but a minor differentiator in the eye of the buyer'.
Location remains key. However, in a competitive market where buyers are flooded with many choices, being the first private condo to boast a skypark may give that development a slight edge, she said.
joyceteo@sph.com.sg
The Minton will have facilities such as an air-conditioned indoor badminton hall and a 20m heated pool. -- PHOTO: KHENG LEONG GROUP
Condos woo buyers with glitzy extras
While special features may not make or break a deal, they do enhance appeal
By Joyce Teo
Developers of a condominium featuring a skypark hope the feature will prove to be a hit with increasingly demanding buyers.
The skypark is on the top 16th floor of the 361-unit Waterfront Gold in Bedok Reservoir, which is being released this weekend.
Frasers Centrepoint, which is developing the condo jointly with Far East Organization, says it is the first skypark in a private residential project.
The skypark is an 8,000 sq ft observation-cum-exercise deck offering unparalleled views of Bedok Reservoir, the developers said. Units at the condo are selling for $950 psf on average.
As consumers here mature and become more demanding, developers are coming up with more special features to entice them.
While these glitzy extras may not make or break a deal, they do help to enhance a project's appeal.
And in a quieter market, they are all the more important when it comes to attracting buyers, experts said.
'The mass market and mid-tier market have surpassed peak prices. We are going through a consolidation phase, which could last for three, four, five months,' said Cushman & Wakefield managing director Donald Han.
'Buyers shouldn't be expecting too much of a discount though as developers are still in a very strong position and can hold.'
But buyers can expect to see more of these special condo features, experts said.
A recent major suburban launch, The Minton in Lorong Ah Soo, also highlighted its many facilities, including an air-conditioned, indoor badminton hall and a 20m heated pool.
The developer of the 1,145-unit condo recently raised the price slightly to $865 psf from $850 psf last month.
And at Twin Peaks in Grange Road, which could be launched in the early part of next month, all the units will come fully furnished - a first in Singapore.
'We wanted to give something that nobody else has given in Singapore,' said Mr Thio Gim Hock, chief executive of Overseas Union Enterprise. This feature would appeal to investors, who can rent the unit out immediately, he said.
The condo should cost around $2,850 psf on average, sources said.
'Differentiating features are important factors in selling a condo,' said Knight Frank managing director for residential services Peter Ow.
'In today's context, every developer is trying out new ideas and features to distinguish themselves from the competition. Hopefully, such special features will also help them to achieve a premium.'
He added: 'Moving forward, we definitely expect developers to be more innovative in their designs and concepts.'
Colliers International's director for research and advisory, Ms Tay Huey Ying, said Singapore home-buyers have become more demanding in their expectations as standards of public and private housing here rise.
They are also now 'more well-travelled and/or are exposed to diverse living and home concepts through the Internet and media', she said.
This means developers would need to constantly look for ways to improve their offerings to stay ahead of competition, whether it is a bull or a bear market.
'In the former, the developers need differentiators to edge out competition while in the latter, the developers use differentiators, which could also include marketing gimmicks, to stimulate demand,' Ms Tay said.
House-hunter Patricia Han said: 'These extras would already have been factored into the selling price. But if I were to rent out my unit, any extras can be an incentive when I market the condo.'
Ms Tay said Waterfront Gold's skypark is 'but a minor differentiator in the eye of the buyer'.
Location remains key. However, in a competitive market where buyers are flooded with many choices, being the first private condo to boast a skypark may give that development a slight edge, she said.
joyceteo@sph.com.sg
The Minton will have facilities such as an air-conditioned indoor badminton hall and a 20m heated pool. -- PHOTO: KHENG LEONG GROUP
ST : Don't lose the plot over foreign land
Jun 27, 2010
Don't lose the plot over foreign land
Buying land parcels overseas is risky, so investors must do proper due diligence
By Lorna Tan
It sounds like a sure-fire winner - buy cheap land overseas and cash in big time once developers come calling - but big losses can also come with the territory, as many Singaporeans can attest.
The uncertainty and high risks of such investments seem obvious, yet many investors here come a cropper when their investments in overseas land turn sour.
Singapore's consumer watchdog has received 11 complaints this year about firms selling such land and 14 last year. There were only four each in 2008 and 2007.
Landbanking, as the process is called, involves firms buying large plots and subdividing them into smaller parcels, making it easier to sell to investors as they can be priced at affordable levels.
Some plots in Britain can be picked up for as little as $10,000 each.
Landbanking firms tell investors they can buy undeveloped plots, usually rural land overseas, and sell later for a profit. Investors are often told the land is on the outskirts of a city where urban development is likely.
When development plans are drawn up, investors can then sell their plots to developers who are willing to pay higher prices to secure the land.
To make the deal attractive, some landbanking firms promise regular payouts over a fixed period or a buy-back guarantee. Some offer the flexibility of allowing investors to switch their plots to ones that have already received development approval so they can enjoy faster gains.
It looks a winner, yet the pitfalls are plenty.
Recently, the case of 200 investors made headlines when their investments in plots in Britain headed south.
They had bought plots at various times near places like Swindon and Gatwick since 2006. Each plot cost $15,000.
In all, these purchases, which were done through local firm Land International (Far East), amounted to an estimated $6 million.
Initially, the investors received quarterly payouts of 8 per cent a year from 2007. But these dried up when the parent firm of Land International (Far East), Land International, was closed by the British government in 2008 following an insolvency probe.
Investors later learnt that the plots had been zoned as 'green belt' or protected land, on which no development is allowed.
In Singapore earlier this month, 40 disgruntled investors turned up at Speakers' Corner in Hong Lim Park to share their woes on their investments which included landbanking.
Many had invested in Singapore-based investment firm Profitable Group and have yet to see any returns. An unhappy Mr H. Yeo, 35, had invested £13,000 (S$27,000) in 2008 in land in the Philippines through Profitable Group. He claimed he was due to get his returns last year but they have not materialised.
Since late last year, the firm has been on the Monetary Authority of Singapore (MAS) Investor Alert list. The list includes entities that may be conducting activities regulated by MAS without authorisation.
The executive director of the Consumers' Association of Singapore (Case), Mr Seah Seng Choon, warned that buying overseas land is a 'very high risk' activity and consumers should be extremely careful. Simply, if you cannot stomach such high risks, do not get involved.
'No one can be sure of getting back their money in such a venture. It is a very high risk, particularly when the business offering such investment is unknown and has no track records,' he said.
Case has been fielding complaints about landbanking for the past four years but it does not have the authority to deal with them.
Despite the bad publicity, some people have profited from their landbanking investments, usually after a long wait.
For instance, Indonesian investor Ludwina Ismail, 52, made total gains of 14 per cent after buying a half acre (0.2ha) of Canadian land in Calgary from Canadian-based landbanking firm Walton International, in early 2005.
She managed to exit after a two-year wait, but that was because the land she bought for C$33,000 (S$44,000) was a resale deal from an earlier investor who had bought it five years ago.
lorna@sph.com.sg
--------------------------------------------------------------------------------
As with all investments, landbanking investors must do proper due diligence. Here are some considerations.
1 Risks
These are high as the land may not appreciate in value for a long time. There are no guarantees on how soon developers will buy over the land. For instance, investor Molly Tan, 40, was given an estimate of five years by the landbanking firm but she ended up waiting 10 years before making her exit with some gains. So be prepared to stay invested for a number of years.
The long gestation period means the money invested may be stuck for several years while generating no returns, which makes the investment very illiquid. Investors are also subject to exchange rate movements as the plots are on foreign land and bought with foreign currency.
Bear in mind there is a tax impact as well, as profits are subject to withholding tax of about 25 per cent on a tiered basis. Of course, there is always a risk that the land is never developed. And reselling the land, if possible, may result in losses.
In the event of company closures, consumers may be left with nothing. This was what happened in 2006 when Britain landbanking firm Land Heritage (UK) closed after an investigation. Its 700 investors were not refunded.
A key risk is that the firms soliciting landbanking investments are not regulated here so they do not have to adhere to strict investment rules such as those laid down by the MAS, said Case's Mr Seah.
Besides the lack of regulation on such investments, the absence of a track record is another big hurdle, said Mr Chris Firth, chief executive of wealth management firm dollarDex.
'Retail investors may find it hard to get independent inform-ation, and even if they do, they may not have the expertise to properly assess the opportunity and particularly the risks. If things go wrong, they may not be able to call on regulators,' added Mr Firth.
2 Background checks on the land
Before embarking on such a venture, Case urges consumers to get as much information on the land on offer as possible, such as its condition, leasehold, restriction of use and so on.
'Ask the embassy about the conditions and requirements of foreigners owning the land in their country. Also, check up the relevant laws that apply to ownership of land and find out the taxes or levies that apply to land ownership,' suggested Case's Mr Seah.
Another tip is to find out if the offer for that plot of land is a credible one.
You should also assess the likelihood of the land value rising.
dollarDex's Mr Firth advised investors to find out the mark-up on the offered plots.
For example, a piece of British land without planning permission could fetch as little as £15,000. The same plot with planning permission could be worth £150,000, or sometimes even more.
Small investors may end up paying a price somewhere between these two, yet have a small - or unknown - chance of seeing planning permission granted, he said.
'Potentially, that means a big loss if permission is not granted. Moreover, very small plots of land could be very hard to sell in isolation if collective sales efforts peter out.'
Sometimes, land that has good potential for planning permission may already have a vendor's lien on it.
When a landbanking firm buys the plot, it could come with a condition that the firm must pay some money to the seller if the land is on-sold within a specific number of years.
'Such a lien could wipe out any potential profit for the small investor, depending on the mark-up,' added Mr Firth.
3 Background checks on the firm
Do not let a professional-looking website or a formal-sounding name sway you from authenticating the firm.
If it is foreign or has a foreign parent, ensure it is valid by checking with the embassy to ensure the scheme is not a scam.
Find out the paid-up capital and date of existence of the landbanking firm. There should be a proper contractual agreement that spells out its obligations. One important consideration is the title deeds.
You should also determine if the firm is regulated in the country that it is operating in.
Imagine the worst-case scenario and find out what recourse options are available if you want to exit later. If that happens, what are the applicable laws in the event of disputes?
4 Resolution process
If a dispute arises, the process can be costly.
It may be necessary to engage foreign lawyers to deal with the matter and in some countries, it may take years before a case is resolved.
You should research the credibility of the country's legal processes and the integrity of people involved in the legal process.
Furthermore, as these are overseas land plots, consumers must factor in travelling and accommodation costs to deal with any dispute.
Don't lose the plot over foreign land
Buying land parcels overseas is risky, so investors must do proper due diligence
By Lorna Tan
It sounds like a sure-fire winner - buy cheap land overseas and cash in big time once developers come calling - but big losses can also come with the territory, as many Singaporeans can attest.
The uncertainty and high risks of such investments seem obvious, yet many investors here come a cropper when their investments in overseas land turn sour.
Singapore's consumer watchdog has received 11 complaints this year about firms selling such land and 14 last year. There were only four each in 2008 and 2007.
Landbanking, as the process is called, involves firms buying large plots and subdividing them into smaller parcels, making it easier to sell to investors as they can be priced at affordable levels.
Some plots in Britain can be picked up for as little as $10,000 each.
Landbanking firms tell investors they can buy undeveloped plots, usually rural land overseas, and sell later for a profit. Investors are often told the land is on the outskirts of a city where urban development is likely.
When development plans are drawn up, investors can then sell their plots to developers who are willing to pay higher prices to secure the land.
To make the deal attractive, some landbanking firms promise regular payouts over a fixed period or a buy-back guarantee. Some offer the flexibility of allowing investors to switch their plots to ones that have already received development approval so they can enjoy faster gains.
It looks a winner, yet the pitfalls are plenty.
Recently, the case of 200 investors made headlines when their investments in plots in Britain headed south.
They had bought plots at various times near places like Swindon and Gatwick since 2006. Each plot cost $15,000.
In all, these purchases, which were done through local firm Land International (Far East), amounted to an estimated $6 million.
Initially, the investors received quarterly payouts of 8 per cent a year from 2007. But these dried up when the parent firm of Land International (Far East), Land International, was closed by the British government in 2008 following an insolvency probe.
Investors later learnt that the plots had been zoned as 'green belt' or protected land, on which no development is allowed.
In Singapore earlier this month, 40 disgruntled investors turned up at Speakers' Corner in Hong Lim Park to share their woes on their investments which included landbanking.
Many had invested in Singapore-based investment firm Profitable Group and have yet to see any returns. An unhappy Mr H. Yeo, 35, had invested £13,000 (S$27,000) in 2008 in land in the Philippines through Profitable Group. He claimed he was due to get his returns last year but they have not materialised.
Since late last year, the firm has been on the Monetary Authority of Singapore (MAS) Investor Alert list. The list includes entities that may be conducting activities regulated by MAS without authorisation.
The executive director of the Consumers' Association of Singapore (Case), Mr Seah Seng Choon, warned that buying overseas land is a 'very high risk' activity and consumers should be extremely careful. Simply, if you cannot stomach such high risks, do not get involved.
'No one can be sure of getting back their money in such a venture. It is a very high risk, particularly when the business offering such investment is unknown and has no track records,' he said.
Case has been fielding complaints about landbanking for the past four years but it does not have the authority to deal with them.
Despite the bad publicity, some people have profited from their landbanking investments, usually after a long wait.
For instance, Indonesian investor Ludwina Ismail, 52, made total gains of 14 per cent after buying a half acre (0.2ha) of Canadian land in Calgary from Canadian-based landbanking firm Walton International, in early 2005.
She managed to exit after a two-year wait, but that was because the land she bought for C$33,000 (S$44,000) was a resale deal from an earlier investor who had bought it five years ago.
lorna@sph.com.sg
--------------------------------------------------------------------------------
As with all investments, landbanking investors must do proper due diligence. Here are some considerations.
1 Risks
These are high as the land may not appreciate in value for a long time. There are no guarantees on how soon developers will buy over the land. For instance, investor Molly Tan, 40, was given an estimate of five years by the landbanking firm but she ended up waiting 10 years before making her exit with some gains. So be prepared to stay invested for a number of years.
The long gestation period means the money invested may be stuck for several years while generating no returns, which makes the investment very illiquid. Investors are also subject to exchange rate movements as the plots are on foreign land and bought with foreign currency.
Bear in mind there is a tax impact as well, as profits are subject to withholding tax of about 25 per cent on a tiered basis. Of course, there is always a risk that the land is never developed. And reselling the land, if possible, may result in losses.
In the event of company closures, consumers may be left with nothing. This was what happened in 2006 when Britain landbanking firm Land Heritage (UK) closed after an investigation. Its 700 investors were not refunded.
A key risk is that the firms soliciting landbanking investments are not regulated here so they do not have to adhere to strict investment rules such as those laid down by the MAS, said Case's Mr Seah.
Besides the lack of regulation on such investments, the absence of a track record is another big hurdle, said Mr Chris Firth, chief executive of wealth management firm dollarDex.
'Retail investors may find it hard to get independent inform-ation, and even if they do, they may not have the expertise to properly assess the opportunity and particularly the risks. If things go wrong, they may not be able to call on regulators,' added Mr Firth.
2 Background checks on the land
Before embarking on such a venture, Case urges consumers to get as much information on the land on offer as possible, such as its condition, leasehold, restriction of use and so on.
'Ask the embassy about the conditions and requirements of foreigners owning the land in their country. Also, check up the relevant laws that apply to ownership of land and find out the taxes or levies that apply to land ownership,' suggested Case's Mr Seah.
Another tip is to find out if the offer for that plot of land is a credible one.
You should also assess the likelihood of the land value rising.
dollarDex's Mr Firth advised investors to find out the mark-up on the offered plots.
For example, a piece of British land without planning permission could fetch as little as £15,000. The same plot with planning permission could be worth £150,000, or sometimes even more.
Small investors may end up paying a price somewhere between these two, yet have a small - or unknown - chance of seeing planning permission granted, he said.
'Potentially, that means a big loss if permission is not granted. Moreover, very small plots of land could be very hard to sell in isolation if collective sales efforts peter out.'
Sometimes, land that has good potential for planning permission may already have a vendor's lien on it.
When a landbanking firm buys the plot, it could come with a condition that the firm must pay some money to the seller if the land is on-sold within a specific number of years.
'Such a lien could wipe out any potential profit for the small investor, depending on the mark-up,' added Mr Firth.
3 Background checks on the firm
Do not let a professional-looking website or a formal-sounding name sway you from authenticating the firm.
If it is foreign or has a foreign parent, ensure it is valid by checking with the embassy to ensure the scheme is not a scam.
Find out the paid-up capital and date of existence of the landbanking firm. There should be a proper contractual agreement that spells out its obligations. One important consideration is the title deeds.
You should also determine if the firm is regulated in the country that it is operating in.
Imagine the worst-case scenario and find out what recourse options are available if you want to exit later. If that happens, what are the applicable laws in the event of disputes?
4 Resolution process
If a dispute arises, the process can be costly.
It may be necessary to engage foreign lawyers to deal with the matter and in some countries, it may take years before a case is resolved.
You should research the credibility of the country's legal processes and the integrity of people involved in the legal process.
Furthermore, as these are overseas land plots, consumers must factor in travelling and accommodation costs to deal with any dispute.
Subscribe to:
Posts (Atom)
Posts
