Residential

TDSR weakens new private home sales

It is reported that the new loans curb curb in the form of the Total Debt Servicing Ratio (TDSR) has severely affected recent private home launches of the Glades in Tanah Merah and The Skywoods in the Dairy Farm area, which saw weak and stalled sales since the first day of booking. Keppel Land sold around 80 units at 99-year-leasehold The Glades next to Tanah Merah MRT Station, with the majority of the sales done on the first day. The average price for the 200 units released in this 726-unit development ranged from $1,450 to 1,500 psf. However, the nearby Urban Vista condo, when released back in March, saw 220 units being sold by Fragrance and World Class Land with the average price of $1,500 psf. The 99-year and 420-unit project Skywoods only sold 35 units last Friday, then 10 units on both Saturday and Sunday with the average price for the first 150 units being $1,250 psf. Skywoods CEO Neo Tiam Boon admitted that they had not sold as much as they wanted due to the TDSR, with many visitors not familiar with the increased number of documents needed for loans from banks.

(Source: Business Times)

Homeowners sue developer of luxury Sentosa Cove condo

More than 100 homeowners of oceanfront residential enclave, The Coast at Sentosa Cove, have filed a lawsuit against its developer and three contractors due to the latter’s failure to fix defects in the common areas of the 249-unit luxury residential development. The defects include termite infestation, flooded staircases, a rotting timber pool deck, incorrect installation of electrical fittings, faulty light fixtures, leakages at walls and through electrical conduits, poor finishes to walls at apartment entrances. The developer is revealed to be Ho Bee Cove. The Management Corporation Strata Title (MCST) council, which filed suit on behalf of 108 owners, said that although more than $93,000 was spent to fix minor defects, rectification costs are estimated to be a few million dollars. In its official statement, Ho Bee Group said it is a responsible developer and is willing to fix any genuine defects, and that the alleged defects were, in fact, caused by the MCST’s negligence.

(Source: Business Times)

Belmont Road GCB up for sale at $50m

A good class bungalow (GCB) at 74 Belmont Road is up for sale at about $50 million, or $1,890 psf. The property is located on a land area of 26,455 sq ft and is regular in shape, with a 16,200 sq ft built-up area of a main house and a self-contained guest house. The main house includes formal dining and entertainment areas, a family room, a master bedroom and four well-sized bedrooms. The guest house is linked to the main house by a sheltered walkway. There is also a 20-metre mineral water swimming pool. The marketing agent for the property is Savills Singapore, whose deputy managing director Steven Mind said that the GCB market remained the buying interest of the ultra rich with limited supply, strong holding power of GCB owners and steady GCB prices. The average unit price based on land area for GCBs transacted so far this year increased by 1.1 percent to $1,387 psf compared with the average unit price for the whole of 2012, according to Savills.

(Source: Business Times)

Ho Bee criticizes defect claims by home owners at Sentosa Cove

The developer of the oceanfront luxury Coast at Sentosa Cove, Ho Bee Investment, has criticized construction defect claims by more than 100 home owners as “frivolous” and that their estimates of repair cost have been “grossly inflated”. The MCST lawyers previously sent Ho Bee Cove a letter on Feb 20 to demand defects in the common areas be rectified, which was estimated by the MCST’s building expert to cost more than $2 million. However, according to Ho Bee, its own building expert, Robinson Jones Associates (RJA) assessed the alleged defects to cost no more than $200,000 to be repaired. Ms. Monica Neo, secretary of the MCST responded that the costs to repair defects in the entire estate could now be as high as $5 million. Ho Bee argued that its consultants including RJA found many of these alleged defects not “genuine” but only “due to fair wear and tear or the lack of adequate and proper maintenance”.

(Source: Business Times)

CapitaLand’s new Bishan condo to be priced lower than neighbor Sky Habitat

CapitaLand’s new 694-unit condo project in Bishan, whose name has not been known, will be priced lower than its next-door Sky Habitat. The project has a higher proportion of smaller units to keep lump sum prices within the reach of more buyers. The first phase of units is to be priced from $1,380 to $1,550 psf. However, CapitaLand declined to reveal how many or what types of units there will be or their psf average price until the starting of the sales bookings. The project had its showflat open this week. Sales bookings are available two to three weeks later. Sales at Sky Habitat took place in April last year, with 131 units sold at a median price of $1,583 psf, and at prices ranging from $1,435 psf to $1,893 psf in that month.

(Source: Business Times)

Commercial

Shophouse deals slow, but with steady prices

Since the TDSR framework introduced in late June, the volume of shophouse transactions has slowed but their prices apparently are holding up. According to Savills Singapore’s analysis of URA Realis caveats data on Sept 9, the number of caveats lodged for shophouses decreased from 34 in May to 22 in June to 11 in July and only 10 in August, although more caveats for August’s transactions are expected in the next few weeks. The 21 caveats for July and August added up to $122.4 million. In Q2 of 2013, there were 74 caveats lodged totaling $449.5 million. For the first eight months of 2013, transactions reached $1.04 billion, while it was $1.38 billion for 2012 and $1.15 billion for 2011. Between January 2011 and August 2013, the most active buyers of shophouses are companies and Singaporeans, followed by individual buyers from Malaysia. 72 percent of shophouses acquired by companies were priced at more than $3 million per transaction, while about half of Singaporeans’ purchases were in the $1 million to $3 million range.

(Source: Business Times)

Centurion Corporation wins bid for Woodlands site

Mainboard-listed Centurion Corporation, whose main businesses are in dormitories and optical discs, has won the bid for a 103,000 sq ft site in Woodlands which will be developed into a workers’ dormitory. The dormitory is planned to have 4,100 beds for workers in the marine, process and manufacturing industries when completed in 2015.  Along with other developments, the total bed count for the company is expected to be 54,000 by the completion of the Woodlands project, up from around 29,000. The company had been awarded the tender by JTC Corporation for the plot at Woodlands Avenue 10. Centurion’s winning bid was $80.8 million through an indirectly wholly-owned subsidiary, beating 12 other bidders. The acquisition will be funded through internal resources and bank loans, and no material impact on the net tangible assets and earnings per share of the company is expected for the financial year ending Dec 31. Shares in Centurion closed one percent higher at 49 cents on Sept 12.

(Source: Business Times)

Redas head sees opportunities for the property sector

Speaking at the Real Estate Developers’ Association of Singapore’s (Redas) mid-autumn celebration, its president, Chia Boon Kuah said the future shines bright with exciting possibilities for the property sector even when the market takes its course through the cycle of business. In spite of the policy measures affecting the property market introduced this year, interest from foreign players, including both developers and private equity players, in buying development land in Singapore remains unabated as “they believe in the future of Singapore”. Given this, Redas would increase its public engagement in areas such as offering ideas to the authorities on new plans for Tanjong Pagar and Paya Lebar.

(Source: Business Times)

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