April 9, 2008
$516M DEAL
Tulip Garden owners call off collective sale
OWNERS at Tulip Garden have called off the $516 million collective sale of their 164-unit Holland Road condo, but they will keep the $25.8 million deposit.
Mr Ow Yong Thian Soo of Lee & Lee, who is representing the owners, told The Straits Times yesterday that a notice rescinding the sale was given to the intended buyer - a consortium led by Bravo Building Construction.
The owners also told Bravo that they would retain the 5 per cent deposit, a right allowed under the sale and purchase agreement.
They decided to cancel the sale after Bravo missed Monday's deadline - which had already been extended from last month - to pay a further 5 per cent of the purchase price. The developer wanted even more time to pay and complete the sale.
The deposit will now be distributed proportionally. Owners who were due to receive $2.5 million to $4.2 million from the sale will now get 5 per cent of these sums once the estate pays expenses of possibly $1 million or more. These include half the conveyancing fees, half the fees of consultants Savills Singapore, plus litigation and administration costs.
Bravo bought Tulip Garden last July and was due to complete the sale late next month. It also has unfinished business at Pender Court, where it missed the $80 million collective sale completion date but has an extension until later this month.
JOYCE TEO
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Wednesday, April 9, 2008
Prices of high-end condos starting to fall as sales dwindle
April 9, 2008
Prices of high-end condos starting to fall as sales dwindle
Downward trend may continue for next few quarters, experts predict
By Fiona Chan
HOME prices are starting to fall, as several high-end properties begin to feel the squeeze of retreating buyers.
Sales of Singapore's most expensive condominiums - all the rage last year - have dwindled to just a trickle this year.
And with plunging sales, prices have also started to dip, although official figures have yet to reflect this trend.
Early signs of the slide lie in the handful of caveats filed involving many luxury projects in the first quarter. These showed prices fell from the previous quarter, in some cases by up to 20 per cent.
In Districts 9 to 11, Singapore's creme de la creme of residential locations covering Orchard, Holland and Bukit Timah, average prices have fallen by about 30 per cent since the beginning of the year, according to caveats.
They dropped to an average of $1,564 per sq ft (psf) between January and March from $2,023 psf in the preceding three months.
In luxury island enclave Sentosa Cove, almost all condos posted drops in average psf prices, ranging from 2 per cent for the Marina Collection to 23 per cent for The Azure.
Property experts say this could be because luxury home buyers are now selecting only the most competitively priced properties.
'Market activity is very slow now, so any transactions that do take place are likely to be from people who have found attractive buys,' said Mrs Ong Choon Fah, the executive director at property firm DTZ Debenham Tie Leung.
She said high-end properties in the traditional prime districts were more dependent on investor buying, so they could be more affected by the current global credit crunch and weaker sentiment.
'A lot of people who bought luxury homes are also 'specuvestors', so they may be happy making just a small profit and selling quickly,' Mrs Ong explained.
The Government estimated last week that private home prices continued to climb in the first three months of the year, albeit at a slower pace. They rose 4.2 per cent, down from 6.8 per cent in the previous three months.
In the priciest segment, the core central region, the price gain dropped to 4.4 per cent from 7.5 per cent in the previous quarter. This region covers Districts 9 to 11, the Marina Bay area and Sentosa.
Anecdotal evidence from property insiders and caveats lodged, however, showed that prices at many projects fell rather than rose this year. At Scotts Square in Scotts Road, only two units have been sold so far this year - at an average price of $3,700 psf, down from $4,000 psf for 42 units in last year's fourth quarter.
Similarly, at The Oceanfront @ Sentosa Cove, the most recent deals were in February, where three units were sold at $1,720 to $1,751 psf. Just six months before that, 15 units were sold at an average price of $2,480 psf.
Other high-profile, pricey condos, such as the Marina Bay Residences and The Marq on Paterson Hill, have yet to see a single caveat lodged this year.
But the story is not all bad. The Orchard Residences, which holds the title of Singapore's most expensive condo, has sold only one unit this year - but at $4,700 psf, higher than most of its other sales.
Other older condos in areas such as Cavenagh or Balmoral may also be trading at higher prices from their previously low base, pushing up the overall prices for the whole district, suggested Mr Ku Swee Yong, director of marketing and business development at Savills Singapore.
But he said the price index for high-end homes may be under pressure in the next two quarters, now that 'everyone wants a bargain'.
'You only need developers to start giving discounts or people starting to buy lower-
floor units instead of penthouses. That will push the index down and put pressure on prices.'
fiochan@sph.com.sg
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
Singapore Real Estate and Property updates
EastLiving.com.sg
Contact Stuart Chng: (65) 9691 9907
Email: stuart.chng@eastliving.com.sg
EastLiving - Singapore Property and Real Estate DB
Prices of high-end condos starting to fall as sales dwindle
Downward trend may continue for next few quarters, experts predict
By Fiona Chan
HOME prices are starting to fall, as several high-end properties begin to feel the squeeze of retreating buyers.
Sales of Singapore's most expensive condominiums - all the rage last year - have dwindled to just a trickle this year.
And with plunging sales, prices have also started to dip, although official figures have yet to reflect this trend.
Early signs of the slide lie in the handful of caveats filed involving many luxury projects in the first quarter. These showed prices fell from the previous quarter, in some cases by up to 20 per cent.
In Districts 9 to 11, Singapore's creme de la creme of residential locations covering Orchard, Holland and Bukit Timah, average prices have fallen by about 30 per cent since the beginning of the year, according to caveats.
They dropped to an average of $1,564 per sq ft (psf) between January and March from $2,023 psf in the preceding three months.
In luxury island enclave Sentosa Cove, almost all condos posted drops in average psf prices, ranging from 2 per cent for the Marina Collection to 23 per cent for The Azure.
Property experts say this could be because luxury home buyers are now selecting only the most competitively priced properties.
'Market activity is very slow now, so any transactions that do take place are likely to be from people who have found attractive buys,' said Mrs Ong Choon Fah, the executive director at property firm DTZ Debenham Tie Leung.
She said high-end properties in the traditional prime districts were more dependent on investor buying, so they could be more affected by the current global credit crunch and weaker sentiment.
'A lot of people who bought luxury homes are also 'specuvestors', so they may be happy making just a small profit and selling quickly,' Mrs Ong explained.
The Government estimated last week that private home prices continued to climb in the first three months of the year, albeit at a slower pace. They rose 4.2 per cent, down from 6.8 per cent in the previous three months.
In the priciest segment, the core central region, the price gain dropped to 4.4 per cent from 7.5 per cent in the previous quarter. This region covers Districts 9 to 11, the Marina Bay area and Sentosa.
Anecdotal evidence from property insiders and caveats lodged, however, showed that prices at many projects fell rather than rose this year. At Scotts Square in Scotts Road, only two units have been sold so far this year - at an average price of $3,700 psf, down from $4,000 psf for 42 units in last year's fourth quarter.
Similarly, at The Oceanfront @ Sentosa Cove, the most recent deals were in February, where three units were sold at $1,720 to $1,751 psf. Just six months before that, 15 units were sold at an average price of $2,480 psf.
Other high-profile, pricey condos, such as the Marina Bay Residences and The Marq on Paterson Hill, have yet to see a single caveat lodged this year.
But the story is not all bad. The Orchard Residences, which holds the title of Singapore's most expensive condo, has sold only one unit this year - but at $4,700 psf, higher than most of its other sales.
Other older condos in areas such as Cavenagh or Balmoral may also be trading at higher prices from their previously low base, pushing up the overall prices for the whole district, suggested Mr Ku Swee Yong, director of marketing and business development at Savills Singapore.
But he said the price index for high-end homes may be under pressure in the next two quarters, now that 'everyone wants a bargain'.
'You only need developers to start giving discounts or people starting to buy lower-
floor units instead of penthouses. That will push the index down and put pressure on prices.'
fiochan@sph.com.sg
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
Singapore Real Estate and Property updates
EastLiving.com.sg
Contact Stuart Chng: (65) 9691 9907
Email: stuart.chng@eastliving.com.sg
EastLiving - Singapore Property and Real Estate DB
Applicant had choice of 400 flats in Punggol: HDB
April 9, 2008
Applicant had choice of 400 flats in Punggol: HDB
I REFER to the letter, 'Applicants lose out in build-to-order project' by Mr Lim Yong Chuan (Apr 1).
Our records show that Mr Lim had been successfully shortlisted for a new flat under the HDB's Build-to-Order (BTO) Exercise for Treelodge@Punggol in March last year. However, he did not select a flat despite having over 400 flats to choose from.
Jade Spring@Yishun was launched last December also under the BTO scheme. In view of the good response to this development, HDB expedited the design of the housing project adjacent to it. The launch of Jade Spring@Yishun Phase 2 was brought forward to last month so that unsuccessful applicants would have another opportunity to apply for a flat in the same vicinity.
Under the system, applicants have to submit a fresh application for each BTO exercise to indicate their interest in the project. The $10 application fee is to cover part of HDB's administrative cost in processing the applications.
HDB has noted Mr Lim's suggestion to carry over the flat selection queue for adjacent BTO projects launched in successive phases within 3 months. We thank the writer for his feedback.
Kee Lay Cheng (Ms)
Deputy Director (Marketing & Projects)
For Director (Estate Administration & Property)
Housing & Development Board
Singapore Real Estate and Property updates
EastLiving.com.sg
Contact Stuart Chng: (65) 9691 9907
Email: stuart.chng@eastliving.com.sg
EastLiving - Singapore Property and Real Estate DB
Applicant had choice of 400 flats in Punggol: HDB
I REFER to the letter, 'Applicants lose out in build-to-order project' by Mr Lim Yong Chuan (Apr 1).
Our records show that Mr Lim had been successfully shortlisted for a new flat under the HDB's Build-to-Order (BTO) Exercise for Treelodge@Punggol in March last year. However, he did not select a flat despite having over 400 flats to choose from.
Jade Spring@Yishun was launched last December also under the BTO scheme. In view of the good response to this development, HDB expedited the design of the housing project adjacent to it. The launch of Jade Spring@Yishun Phase 2 was brought forward to last month so that unsuccessful applicants would have another opportunity to apply for a flat in the same vicinity.
Under the system, applicants have to submit a fresh application for each BTO exercise to indicate their interest in the project. The $10 application fee is to cover part of HDB's administrative cost in processing the applications.
HDB has noted Mr Lim's suggestion to carry over the flat selection queue for adjacent BTO projects launched in successive phases within 3 months. We thank the writer for his feedback.
Kee Lay Cheng (Ms)
Deputy Director (Marketing & Projects)
For Director (Estate Administration & Property)
Housing & Development Board
Singapore Real Estate and Property updates
EastLiving.com.sg
Contact Stuart Chng: (65) 9691 9907
Email: stuart.chng@eastliving.com.sg
EastLiving - Singapore Property and Real Estate DB
Tuesday, April 8, 2008
Tulip Garden sale off? How the deal went
April 8, 2008
Tulip Garden sale off? How the deal went
Condo owners likely to call off $516m en bloc deal after developer misses payment deadline
By Joyce Teo
THE $516 million collective sale of Tulip Garden condominium near Holland Road seems to be dead in the water after the developer missed a payment deadline yesterday.
The condo owners appear poised to formally call off the deal and pocket a cool $25.8 million - the original 5 per cent deposit paid by developer Bravo Building Construction.
Bravo would forfeit the sum if the deal is scrapped. That would mean each of the 164 unit owners could pocket more than $100,000 on average.
The cancellation of a collective sale because of a cash crunch is a rare event. Bravo and its partners say they have had trouble raising the necessary funds.
Earlier this year, the $162.8 million collective sale of Makeway View in the Newton area was ditched by an associate of Bravo. The firm said a higher-than-expected development charge was the reason for backing out. A deposit of $1.63 million was reportedly forfeited.
Last Saturday, Tulip Garden owners held a meeting and indicated in an informal show of hands that they wanted to cancel the sale if Bravo missed the latest payment, also $25.8 million. This payment had already been delayed at Bravo's request from the middle of March.
By late yesterday, no payment had been made. Bravo was putting on a brave face but it was, in effect, accepting that the deal appeared to have been lost.
The developer had asked for more payment extensions - to make the next 5 per cent payment by June 7 and then complete the deal by Aug 7.
But based on last Saturday's meeting, the owners appear unlikely to agree.
Almost all the owners at the meeting indicated that they wished to call off the sale and keep the deposit if Bravo did not pay up by yesterday, according to the people present.
A Bravo spokesman said yesterday that the firm is now seeking an 'unconditional' extension of time.
'If these extensions are not obtained, the consortium will accept this costly missed opportunity to develop a stunning 350-unit condo with unmatched features in a prominent Holland Road corner,' she said. The condo is on the corner of Holland Road and Farrer Road.
Bravo inked a deal to buy the freehold site in July last year. It was due to have been completed late next month.
The Bravo spokesman said the firm has been seeking partners since November last year.
'The current turmoil in the financial and stock markets matched with sporadic bad news have caused unforeseen delays in securing ultimate approvals to commit funds,' said Bravo. It added that the Tulip Garden owners had consented to the sale earlier than anticipated.
'Coupled with the consortium's strategic decision to significantly increase equity to balance the current cautious lending by banks, the current deadlines for next payments have become too constricted and no longer practical,' it said.
Bravo added that it has tied up with two local and two foreign parties to buy Tulip Garden. But unless an extension is given, they will not be offering more money, said the spokesman.
She said that if Tulip Garden owners still want to attempt to sell en bloc, they may face an 'unwelcome lower bid price' given weaker market conditions.
Tulip Garden sold for about $1,018 per sq ft (psf), more than its earlier guide price of $900 psf in January last year. The development has 164 units comprising 96 flats, 66 maisonettes and two shophouses.
If the sale works out, flat owners stand to reap $2.5 million to $4.2 million while maisonette owners would receive about $3.4 million each. The shop units would get about $1.1 million each.
Amid last year's booming market, Bravo also made two other fairly large collective sale deals: Pender Court, off Telok Blangah Road, at $80 million in July last year, and Makeway View.
Bravo has postponed the completion of Pender Court's sale until late this month.
Given the slower market, more sellers are now open to lower prices. Yesterday, Royalville, a freehold mixed development off Sixth Avenue, was relaunched for sale en bloc at a lower indicative price of around $305 million.
It was offered for sale in a Nov 9 tender, which failed to attract bidders at its earlier guide price of $330 million to $350 million.
joyceteo@sph.com.sg
LOSS AND GAIN: Bravo will forfeit its $25.8 million deposit if the Tulip Garden sale is axed. Each owner could pocket over $100,000.
Singapore Real Estate and Property updates
EastLiving.com.sg
Contact Stuart Chng: (65) 9691 9907
Email: stuart.chng@eastliving.com.sg
EastLiving - Singapore Property and Real Estate DB
Tulip Garden sale off? How the deal went
Condo owners likely to call off $516m en bloc deal after developer misses payment deadline
By Joyce Teo
THE $516 million collective sale of Tulip Garden condominium near Holland Road seems to be dead in the water after the developer missed a payment deadline yesterday.
The condo owners appear poised to formally call off the deal and pocket a cool $25.8 million - the original 5 per cent deposit paid by developer Bravo Building Construction.
Bravo would forfeit the sum if the deal is scrapped. That would mean each of the 164 unit owners could pocket more than $100,000 on average.
The cancellation of a collective sale because of a cash crunch is a rare event. Bravo and its partners say they have had trouble raising the necessary funds.
Earlier this year, the $162.8 million collective sale of Makeway View in the Newton area was ditched by an associate of Bravo. The firm said a higher-than-expected development charge was the reason for backing out. A deposit of $1.63 million was reportedly forfeited.
Last Saturday, Tulip Garden owners held a meeting and indicated in an informal show of hands that they wanted to cancel the sale if Bravo missed the latest payment, also $25.8 million. This payment had already been delayed at Bravo's request from the middle of March.
By late yesterday, no payment had been made. Bravo was putting on a brave face but it was, in effect, accepting that the deal appeared to have been lost.
The developer had asked for more payment extensions - to make the next 5 per cent payment by June 7 and then complete the deal by Aug 7.
But based on last Saturday's meeting, the owners appear unlikely to agree.
Almost all the owners at the meeting indicated that they wished to call off the sale and keep the deposit if Bravo did not pay up by yesterday, according to the people present.
A Bravo spokesman said yesterday that the firm is now seeking an 'unconditional' extension of time.
'If these extensions are not obtained, the consortium will accept this costly missed opportunity to develop a stunning 350-unit condo with unmatched features in a prominent Holland Road corner,' she said. The condo is on the corner of Holland Road and Farrer Road.
Bravo inked a deal to buy the freehold site in July last year. It was due to have been completed late next month.
The Bravo spokesman said the firm has been seeking partners since November last year.
'The current turmoil in the financial and stock markets matched with sporadic bad news have caused unforeseen delays in securing ultimate approvals to commit funds,' said Bravo. It added that the Tulip Garden owners had consented to the sale earlier than anticipated.
'Coupled with the consortium's strategic decision to significantly increase equity to balance the current cautious lending by banks, the current deadlines for next payments have become too constricted and no longer practical,' it said.
Bravo added that it has tied up with two local and two foreign parties to buy Tulip Garden. But unless an extension is given, they will not be offering more money, said the spokesman.
She said that if Tulip Garden owners still want to attempt to sell en bloc, they may face an 'unwelcome lower bid price' given weaker market conditions.
Tulip Garden sold for about $1,018 per sq ft (psf), more than its earlier guide price of $900 psf in January last year. The development has 164 units comprising 96 flats, 66 maisonettes and two shophouses.
If the sale works out, flat owners stand to reap $2.5 million to $4.2 million while maisonette owners would receive about $3.4 million each. The shop units would get about $1.1 million each.
Amid last year's booming market, Bravo also made two other fairly large collective sale deals: Pender Court, off Telok Blangah Road, at $80 million in July last year, and Makeway View.
Bravo has postponed the completion of Pender Court's sale until late this month.
Given the slower market, more sellers are now open to lower prices. Yesterday, Royalville, a freehold mixed development off Sixth Avenue, was relaunched for sale en bloc at a lower indicative price of around $305 million.
It was offered for sale in a Nov 9 tender, which failed to attract bidders at its earlier guide price of $330 million to $350 million.
joyceteo@sph.com.sg
LOSS AND GAIN: Bravo will forfeit its $25.8 million deposit if the Tulip Garden sale is axed. Each owner could pocket over $100,000.
Singapore Real Estate and Property updates
EastLiving.com.sg
Contact Stuart Chng: (65) 9691 9907
Email: stuart.chng@eastliving.com.sg
EastLiving - Singapore Property and Real Estate DB
Simei site for condo-like HDB flats
April 8, 2008
Simei site for condo-like HDB flats
By Jessica Cheam
MORE condo-style Housing Board flats will soon be offered to home buyers looking to live in Singapore's east side.
The HDB yesterday released a plum 181,108 sq ft site in Simei Road for tender - the fifth under its Design, Build and Sell Scheme (DBSS), which is open to private developers.
The 99-year site has a gross floor area of about 380,327 sq ft - enough for 360 homes.
Market watchers said developers will be keen on the plot due to its attractive location in a mature, established HDB estate just 10 minutes' walk from Simei MRT station.
Knight Frank director of research and consultancy Nicholas Mak said the site, which could have residential blocks going up to 15 storeys, was likely to attract bids from medium-size developers and construction companies. He projected offers ranging from $49 million to $76 million, or $130 to $200 per sq ft per plot ratio.
The new site tender comes after National Development Minister Mah Bow Tan said recently that HDB will cater to buyers with different aspirations by providing a range of housing options. But the minister also stressed that standard flats built by HDB will continue to be the main stock of new supply.
A further two DBSS sites - in Toa Payoh and Bedok - are expected to be released soon. These and the Simei site could mean up to 1,500 new public condo-like flats coming on to the market.
That figure is 4,000 if flats earmarked for the four sites already released - Tampines, Boon Keng, Ang Mo Kio and Bishan - are included.
Flats at City View @Boon Keng, comprising three- to five-room units, were offered at between $349,000 and $727,000 - about $520 psf. The Simei tender closes at noon on June 3.
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
Singapore Real Estate and Property updates
EastLiving.com.sg
Contact Stuart Chng: (65) 9691 9907
Email: stuart.chng@eastliving.com.sg
EastLiving - Singapore Property and Real Estate DB
Simei site for condo-like HDB flats
By Jessica Cheam
MORE condo-style Housing Board flats will soon be offered to home buyers looking to live in Singapore's east side.
The HDB yesterday released a plum 181,108 sq ft site in Simei Road for tender - the fifth under its Design, Build and Sell Scheme (DBSS), which is open to private developers.
The 99-year site has a gross floor area of about 380,327 sq ft - enough for 360 homes.
Market watchers said developers will be keen on the plot due to its attractive location in a mature, established HDB estate just 10 minutes' walk from Simei MRT station.
Knight Frank director of research and consultancy Nicholas Mak said the site, which could have residential blocks going up to 15 storeys, was likely to attract bids from medium-size developers and construction companies. He projected offers ranging from $49 million to $76 million, or $130 to $200 per sq ft per plot ratio.
The new site tender comes after National Development Minister Mah Bow Tan said recently that HDB will cater to buyers with different aspirations by providing a range of housing options. But the minister also stressed that standard flats built by HDB will continue to be the main stock of new supply.
A further two DBSS sites - in Toa Payoh and Bedok - are expected to be released soon. These and the Simei site could mean up to 1,500 new public condo-like flats coming on to the market.
That figure is 4,000 if flats earmarked for the four sites already released - Tampines, Boon Keng, Ang Mo Kio and Bishan - are included.
Flats at City View @Boon Keng, comprising three- to five-room units, were offered at between $349,000 and $727,000 - about $520 psf. The Simei tender closes at noon on June 3.
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
Singapore Real Estate and Property updates
EastLiving.com.sg
Contact Stuart Chng: (65) 9691 9907
Email: stuart.chng@eastliving.com.sg
EastLiving - Singapore Property and Real Estate DB
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