CapitaLand’s Sky Vue sells 85% of units

Following CapitaLand’s reversal of its former CEO Liew Mun Leong’s stand against shoebox units, the company succeeded in its sales launch of Sky Vue at Bishan Central with 430 units sold out of 505 units last weekend. On the first day of sales, the company sold 410 units for an average price of $1,500 psf, with another 20 units more the next day. One-bedroom and two-bedroom units were the most popular. The optimistic reception of the units gave more hopes of a pick-up market sentiment after recent property cooling measures. Savills Singapore research head Alan Cheong said Sky Vue might revive the market by showing that people could get around the TDSR if the price is right. CapitaLand is now led by CEO Lim Ming Yan.

(Source: Business Times)

Thousands of HDB homeowners turn to new DBS loan

A new DBS loan has proven to be a hit as thousands of HDB homeowners turned to it for a mortgage product that guarantees savings. Calculations from DBS showed people taking up the April POSB HDB loan could save as much as $1,600 by October. According to DBS, the POSB HDB loan has attracted five times more new customers than that of 2012, making up for some of the slack in the private-home loan market. DBS has received a few thousand applications for the past five months and the loan now makes up 25 percent of all new bookings.

(Source: Business Times)

HDB resale prices decreases, more declines predicted

Flash estimates from HDB showed the resale price index (RPI) at 205.1 in Q3, dropping 0.7 percent from Q2, the first decrease in more than four years, since the first quarter of 2009 at the outset of the global financial crisis with a 0.8 percent drop. Some analysts have predicted further price declines for resale HDB flats. However, consultants were not surprised by the decline caused by recent cooling measures and new government regulations such as a tighter Mortgage Servicing Ratio (MSR) on HDB housing loans and the TDSR introduced in June. According to data from ERA Realty, the overall median cash-over-valuation (COV) fell 33.3 percent to $18,000 quarter-on-quarter, with executive flats having the biggest fall. PropNex Realty’s data showed the $18,000 figure a 40 percent drop from $32,000 median COV in early 2013. The number of transactions also fell 36.7 percent quarter-on-quarter to only 3,193 units in Q3, with the largest decline of 41.9 per cent from the executive flat segment.

(Source: Business Times)

TDSR framework causes prices and volumes to dip

According to the Urban Redevelopment Authority’s (URA) flash estimate, prices of private homes rose 0.4 percent while certain segments showed a decline due to the TDSR framework. Prices of non-landed homes in the Core Central Region (CCR) decreased 0.5 percent in Q3, following the 0.2 percent decrease in the previous quarter. Prices of city-fringe homes decreased 1.1 percent, compared to the 0.2 percent rise in Q2. Mr. Ong Teck Hui, national director at Jones Lang LaSalle said Q3’s price declines are significant in the CCR and Rest of Central Region (RCR) market segments as these two segments rely more on investor demand and these buyers are affected by cooling measures including the TDSR framework. City-fringe home prices are expected to see a larger drop when the finalized index is released. CBRE expects that the final Q3 2013 island-wide price index would be at the same level as the Q2 2013 index, with recent launches such as Thomson Three and Sky Vue included. Transaction volumes have dropped in all market segments. Total volume in the CCR and RCR decreased 61 per cent and 72 per cent quarter-on-quarter. The Outside Central Region (OCR)’s transaction volumes fell 50 per cent quarter-on-quarter. Average prices of new sale private non-landed homes in the OCR were around $1,332 psf in Q3, compared with $1,096 in Q2.

(Source: Business Times)

CEA studies court’s findings in failed Thomson View en bloc sale

The Council for Estate Agencies (CEA), the regulator of estate agents, is studying the High Court’s findings of HSR International Realtors’ role in the failed Thomson View en bloc sale before deciding on necessary follow-up. The High Court has found HSR, the marketing agent for the proposed $590 million condo en bloc sale, acted in bad faith and breached its duty to avoid conflicts of interest by not disclosing the incentive payments to the condo’s collective sale committee (CSC) and other owners. HSR’s incentive payments were also found to taint the method of distribution of the sale proceeds. According to CEA, in an en bloc sale transaction, the estate agent is expected to work closely with the CSC, taking instructions from their clients, and acting ethically during the process in compliance with the laws and requirements governing en bloc sale transactions

(Source: Business Times)

Sentosa Cove sees more activity after July deep-freeze

In July, after the authorities plugged loopholes that property investors used to avoid paying higher additional buyer’s stamp duty (ABSD), the 99-year leasehold bungalow market on Sentosa Cove saw a slump in its activities. These investors had made proxy purchases in the names of family members who don’t own properties here. Activity, however, has now come back to Sentosa Cove: a year-end pick-up in deals led by Singapore PRs will take place. In addition, the TDSR framework introduced in June has filtered down to some buyers in the upscale waterfront housing district. Even high-net-worth buyers seek the maximum loan to take advantage of current low interest rates.

(Source: Business Times)


Perennial drops TripleOne Somerset deal

It is reported that Perennial Real Estate Holdings has aborted its proposed deal of buying TripleOne Somerset for $980 million, after its owner raised the asking price to $1 billion. Other potential buyers such as Australia’s Lend Lease and US-based private equity giant Blackstone Group have been approached. TripleOne Somerset is a 17-storey office-and-retail building owned by Asia Real Estate Income Fund (AREIF) with funds from Germany, local institutions and Qatar, and is managed by Singapore-based Pacific Star.

(Source: Business Times)

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