Developers trim prices for new private residential projects

To adjust to the new market reality after the rollout of the Total Debt Servicing ratio (TDSR) in late June, developers have been trimming launch prices for new private residential projects . For example, the 445-unit Thomson Three condo in Bright Hill Drive developed by UOL Group and Singapore Land, is now priced at a more realistic level of $1,350 to 1,400 psf, instead of $1,500 psf without TDSR. The showflat of the project will open this weekend and sales booking will start on Sept 20. The Skywoods project in the Dairy Farm area will also be released at $1,250 psf instead of $1,300 psf by TA Corpotation, Hock Lian Seng Holdings, King Wan Corporation and Far East Distillers. It is reported that with TDSR, buyers are more selective and sensitive to the total price quantum, making developers become more realistic in their pricing. TDSR was also reported to have the greatest impact among all cooling measures in the past four years.

(Source: Business Times)

Court quashes Thomson View sale

The High Court has quashed the proposed $590 million collective sale of Thomson View Condominium after its marketing agent was found to have offered more than $548,000 of incentive payments to four owners to get a requisite 80 percent majority in bad faith. HSR International Realtors was found to have breached its duty to avoid any possible conflict of interest, and also breached its duty of transparency by not disclosing its incentive payments to the Collective Sales Committee and other owners. Hence, the four owners should not be counted in the requisite 80 percent majority for the sale to go through, and the plaintiffs were not even in a position to apply for court approval of the sale. However, the CSC’s failure to extend the third public tender after the Upper Thomson MRT station was announced during the property’s tender period was found to be an error not amounted to bad faith.

(Source: Business Times)


Strong price support by directors in property sector stocks

As shown by Aug 26-30 filings on Singapore Exchange of rising purchases for the previous two weeks, there was strong price support by directors in the property sector last week with purchases in Tee Land, Singapore Land, Hong Fok Corporation and Oxley Holdings. A total of 30 companies had 57 purchases worth $25.75 million, while three other firms had four disposals worth $49.7 million. Sales were consistent with the previous week’s four firms, seven disposals and $4.85 million. Despite fewer shares bought by directors last week, buyback activity among listed firms were high with 17 companies posting 57 repurchases worth $16.9 million, which was consistent with the previous week’s 14 firms, 59 trades and $15.0 million. The chairman of Sino Grandness Food made a rare purchase after the stock fell 31 percent.  As for the selling side, AusGroup experienced bearish signals as a non-executive director unloaded shares following a sharp fall in the company’s earnings. As for the substantial shareholders front, Temasek Holdings recorded a rare purchase in Keppel Corporation. Matthew Funds recorded its first sale in Ascendas India Trust after it became a substantial shareholder in 2010.

(Source: Business Times)

Hotel 1929 on Keong Saik Road sold for $35m

Hotel 1929 on Keong Saik Road was sold for $35 million, which translated to around $1.09 million per room for the freehold hotel. The four-storey property includes five adjoining shophouses of 3,281 sq ft with a built-up area of 13,900 sq ft. An entity controlled by hotelier-restauranteur Loh Lik Peng, founder of Unlisted Collection was the seller of the hotel. Mr Loh will still operate hotel 1929 and its in-house restaurant, Ember, while the hotel’s buyer was a company owned by Cheong Keng Hooi, whose family developed International Plaza in Tanjong Pagar. According to Mr Loh, the selling of Hotel 1929 was not planned when he was asked if his company would continue to sell its two other Singaporean hotels – New Majestic Hotel on Bukit Pasoh Road and Wanderlust Hotel on Dickson Road in Little India. He said that Hotel 1929 is operating very well in terms of occupancy, and that he was simply approached by the buyer with an attractive offer at the optimal timing since the group had acquired the hotel for some time. The sale of Hotel 1929 was brokered by Historical Land Pte Ltd, a boutique property agency specializing in shophouses.

(Source: Business Times)

Tat Hong to sell Gul Crescent site, secure new site in Tuas

Tat Hong Holdings has announced that it would put Gul Crescent site up for sale of around $33 million, or $75 per sq ft on gross floor area to optimize its operations in Singapore, and it has secured a 16,100 sq m plot of industrial land in Tuas for a new site. Gul Crescent site was acquired in 1981 with a 30+30 year lease, sits on 29,384.5 sq m of land and has two single-storey high-clearance factories with office space, a canteen and a staff restroom. Tat Hong was reported to expect a gain on the divestment for the financial year ending March 31, 2014. As for now, Tat Hong operates from five other sites in western Singapore. After the divestment, it would centralize its operations in the Tuas area to raise land and operating efficiencies.

(Source: Business Times)

Mall to come up at Hotel Windsor

The office-retail podium of the freehold Hotel Windsor, which was bought by Nobel Design, Lian Huat Group and 2E Capital, will be converted into a strata retail development for sale. The new Macpherson mall will have 80 plus retail units, 34 percent of which will be for F&B outlets and the rest are shops. Indicative prices will be from $3,500 to $6,000 per sq ft for the retail units sized between 260 sq ft and 3,000 sq ft. Absolute prices are expected to start from $1.4 million for a 355-sq-ft shop, with the majority of units between 550 sq ft and 800 sq ft. There will be six loft-in shop units at the ground level. The sales gallery was open this weekend and sales expected to start towards the end of Sept, 2013.

(Source: Business Times)

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