Residential

Sales at Vue 8 affected by new home loan curbs

Only 50-plus units were sold at Vue 8 Residence, a 99-year leasehold project in Pasir Ris, due to the general air of caution and longer bank loan approval process after the new total debt servicing ratio (TDSR) framework took effect on June 29. The average prices of the units are between $980 and $1,050 per sq ft, depending on unit types and whether units face the sea. Absolute prices start from $540,000 for a 474 sq ft one-bedder. At 17 storeys high, the 463-unit condo development would have been able to sell between 150 and 200 units in the first weekend prior to the new framework, according to OrangeTee research head Christine Li.

(Source: Business Times)

July developer sales expected to slow down following June surge

Developer sales increased by 23.8 percent month-on-month in June to 1,806 homes (excluding executive condominiums), thanks to the 737 units sold at the J Gateway condo in Jurong on a single day on June 28 as developers and buyers raced before the new Monetary Authority of Singapore (MAS) regulations took effect the following day. According to Urban Redevelopment Authority’s (URA) latest figures, developers have moved 10,061 units in the first six months, which translated to a monthly average of 1,677 units. As for ECs, which are a hybrid of private and public housing, developers’ June 2012 sales stood at another 1,725 units. Despite the June surge, market watchers expect sales in July to slow down due to the new Total Debt Servicing Ratio framework by MAS, as players need time to adjust to the more rigorous framework for banks to approve property loans. Savills Singapore research head Alan Cheong said developers’ private home sales for July could be as low as half the June figure. Colliers International director Chia Siew Chuin said that July sales could ease to 1,000 units before recovering in the following months.

(Source: Business Times)

Tender for Tampines Ave 10 plot draws strong demand, surprising analysts

Tampines Ave 10 plot, the first private residential site tender to close since a new debt servicing framework for property loans was introduced, drew strong demand with ten bidders and surprised analysts who predicted greater caution. The highest bid was from MCC Land Singapore with $562.01 psf ppr, or $289.7 million in absolute terms. The second highest bid stood at $522.24 psf ppr, or $269.2 million from a partnership of UOL Venture Investments and Kheng Leong Company.

(Source: Business Times)

The Quinn to get July launch

The Quinn, a freehold residential development along Bartley Road, will be launched at the end of July by TOP Global. The development comprises 139 units over four five-storey blocks, with apartments ranging from one-bedroom units (starting from 484 sq ft), two- and three-bedroom units (646- 1,141 sq ft) to penthouses exceeding 2,000 sq ft. Prices are expected to start from $1,500 psf. Located close to the upcoming Bidadari Township, The Quinn is expected to benefit from the rental demand of the working population based at Paya Lebar iPark, the Central Business District and Seletar Aerospace Park.

(Source: Business Times)

Commercial

No more bank-developer tie-ups

The Monetary Authority of Singapore (MAS) has put out a new rule that would stop banks from offering preferential interest rates for property loans to clients buying designated properties. In other words, this rule would restrict a common practice where property developers and agents tie up with banks to sell property. With effect from June 29 onwards, all forms of tie-ups with property developers and agents are not allowed. MAS spokesman said that except for the granting of property loans, financial institutions should not offer any property-related services to customers in general, including property advertisements or tie-ups with property developers, regardless of the location (in or outside of Singapore) or the type of property (residential, commercial, industrial).

(Source: Business Times)

‘Shell’ firms can’t circumvent new loan regime

The Monetary Authority of Singapore (MAS) said that “shell companies”, or companies set up by individuals to buy commercial and industrial properties, are to be included in the newly launched TDSR framework as well. Financial institution were advised by MAS to thoroughly assess the case in which individuals set up local or offshore “shell companies” but do not have substantive businesses with genuine commercial activities. Entities not subjected to TDSR framework include: existing companies trading in property and/or holding investment properties for rental income, and new entities set up by an established property group or fund if the FIs can establish the new entity’s parentage.

(Source: Business Times)

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