New developments to share

[Dfiris]

This news just came out a few days ago in ST and it is signalling some things to come in the years ahead.

"UNITED States financial services group Wachovia has sold its investment in City Developments' (CDL's) freehold Grange Road project at a hefty loss.

Warchovia first bought the Clivedan Condos at $3,750psf in 2007, now selling back to CDL at $2956 psf
(almost a 20% drop)."

The overseas funds already see no immediate short to medium term upside in Singapore residential market. They rather made a loss and withdraw their funds. CDL got to buy back from them to prevent them from dumping in the market and causing a stir in prices in the secondary market, as there are still unsold units in CDL's inventory. There is no resale market at all since the high prices are hit at SGD 3700-3900psf in 2008.

It also signal to us that we cannot simply assume that liquidity is going to continue flowing in like nobody business after QE3. Once these funds feel that US or Europe are showing early signs of picking up, they will br the first to pack and go, they won't care if they make losses. Can our bullish feverish sentiment continue to withstand a few more shocking pieces of similar headlines? And at SGD2900psf, it might not be the true price cos the developer supported it, it could be lower... I dun know how much lower but we are already seeing SGD2xxxpsf in the high end luxury range and they are freehold in best of locations.


If the normal Singaporean do not take heed and learn important lessons from what is happening at the top end of the market, I am worried. Cos at SGD1700 for 99 yr sky habitat transalates to freehold equivalent of SGD2040psf, not far from the high end luxury market, but already priced over the mid tier luxury in bukit timah.

lets face it, its not the architect or the developer of the project that make the property sells. Cos the same project by the same architect in a project opp Ritz Carlton is selling for only SGD1800-2000 in the resale market.

I really have to bow my head to the "marketing" of today, they have done so well as compared to years back. They are selling a lifestyle. But whethere there will be a resale market in 99 yr leasehold Sky Habitat at higher prices , I seriously doubt so.. Just look at those projects like Bishan 8, which hit a high of SGD1200psf in 1995-96, it is only till this date they they are able to break even, thanks to its "leasehold" and sky habitat which is selling at SGD500psf higher. So for sky habitat to break even or sell higher in the longer term (all the buyers are telling me we should hold long term view), u need another project to come in and sell at SGD 2200psf !!! or simply SGD 2640psf !!! for leasehold? for suburban? And so what if it does reach? if u are a sky habitat buyer at SGD1700psf, thr best u k is only breakeven.

Thats why I say there will be no resale market thereafter, cos interest rates are low, and buyers k still hold on to their units and might not sell at negative prices, and most likely due to the extra seller stamp duty..oh my, tat kinda of make me ask if the govt helping or making investors worse off by placing cones n barriers along the way up the property price ladder?

What happens when they reach the other end after ignoring the layers of barriers the govt put in place, what if they start to panic when things dun look right? There will be a chaos and probably stampede as they all rushed to cut loss or are forced to.. Cos these so called measures will not be removed in time to let them have a smooth exit.... i only see blood path. thanks to the scholars again.

By the way, its just my view anyway. Thought this is an ideal platform to just share some thoughts. no right and wrong.

There was a time when people in SG said its crazy to pay SGD700psf for leasehold condo, there was also a time when people in SG said its crazy to invest in MM (Mickey Mouse) studio that measures only 400sqf.

Now leasehold project like Sky Habitat hits SGD1700psf and MM like Alexis hits SGD2000psf .. yes these are outlier cases (anyway those familar with SG property will know these are not that extreme and the median price is not far from these numbers) but this goes to show sky (and not what the herd says) is the limit when it comes to property speculation/investment

 

[Dfiris]

Extracted from an article in The Edge my on Sunday

:"For instance, along Nassim Road is Nassim Jade, a 39-unit high-end condo developed by Hotel Properties Ltd (HPL) and completed in 1997. A 2,110 sq ft, second-floor unit at the development changed hands in a resale for S$5.2 million (S$2,465 psf) last month, according to a caveat lodged with URA Realis. Two months earlier, a 2,325 sq ft unit on the same floor was sold for the same price — S$5.2 million, or S$2,237 psf.

Recent transactions in some of the older condos in the prime Paterson Road-Grange Road neighbourhood have also been carried out at prices below S$2,000 psf. At the 13-year-old freehold Paterson Edge, for example, a 1,012 sq ft, eighth-floor unit changed hands recently for S$1.9 million (S$1,878 psf). This same unit was last transacted in October 2008, just after the collapse of Lehman Brothers, for S$2.2 million (S$2,174 psf), which means the seller sold for 13.6% lower than his purchase price four years ago. "It's very rare for freehold high-end units in this area to trade below S$2,000 psf," says Neubronner. "It could be an internal transfer or a related-party transaction."

Meanwhile, at Spring Grove on Grange Road, a 1,389 sq ft unit on the eighth floor was sold for S$2.2 million (S$1,600 psf), according to a caveat lodged on Nov 15. Spring Grove is a 99-year leasehold property developed by City Developments 16 years ago. "

So if u are thinking of buying at high prices from developers, think again. Leasehold? better think twice...

 

[Newbie11]

That's why we are investing in iskandar or Malaysia! This time boleh!

 

[shctaw]

Time or rather timing is everything in property investment.

Landed property 5 years ago East Ledang landed is the best bet.
For the past 20 years; condo did not move much until 2012.

We will have people looking at what we are typing today and wonder why they did not read this thread earlier.....

Let welcome the 4 digit psf for JB for the first time in Malaysia history.

Sky 88 RM1200 psf
Matex RM1000 psf
Lido Blvd RM1200 psf
Vantage RM1x00 psf

 

[Dfiris]

Another US fund exits, this time Goldman .... at a loss too.

Today's BT:

"
Goldman paid $811 million or $2,900 psf for 16 Collyer Quay - formerly known as Hitachi Tower - in early 2008 - PHOTO: BLOOMBERG
[SINGAPORE] NTUC Income, which early last year acquired a 49 per cent stake in 16 Collyer Quay from Goldman Sachs, is now believed to be stitching a deal to buy out the remaining 51 per cent in the 999-year leasehold office tower from the US bank to gain full ownership of the asset.
The two sides are thought to have agreed on terms, although a deal is expected to be inked only next month at the earliest.
BT understands that the transaction values the office tower at around $660 million, or close to $2,400 per square foot on net lettable area of 278,356 square feet. Income's acquisition last year valued the property at about $626 million or $2,250 psf on NLA.
Goldman paid $811 million or $2,900 psf for 16 Collyer Quay - formerly known as Hitachi Tower - in early 2008."

 

[Valdez]

Looks like prices GCB in prime locations in Johor will also spike?

Good-class bungalow prices up

But fewer sales recorded this year due to weak market sentiment

Published on Dec 27, 2012

By Melissa Tan


THE elite end of the residential property sector, the bungalow market, has slowed since last year after cooling measures and tighter financing rules came in.

But analysts said prices were relatively resilient despite weak market sentiment stemming from poor global economic conditions.

Fewer good-class bungalows (GCBs) changed hands this year but, on average, the selling prices were higher.

There are about 2,400 GCBs in Singapore in 39 gazetted areas, such as Nassim, Dalvey and Tanglin.

Some 49 sales had taken place as of the first week of this month, compared with 57 over the full year of 2011.

The total value transacted this year fell to $1.05 billion in this period, down from $1.16 billion for the whole of last year.

However, prices per sq ft (psf) have moved in the opposite direction.

The average price of GCB sales this year was $1,406 psf, about 10 per cent higher than the average of $1,276 psf recorded last year.

"This demonstrates the resilience of GCB prices as well as the premium they command because of limited supply," said Mr Douglas Wong, director of luxury properties at CBRE.

He noted that the profile of GCB buyers has changed after recent cooling measures, such as the revised sellers' stamp duty of up to 16 per cent which was imposed in January last year.

The loan-to-value ratio was also lowered from 70 per cent to 60 per cent for buyers with an outstanding mortgage.

This means that a buyer might have to fork out $12 million in cash for a $30million home.

The revised stamp duty "more or less removed speculators and short-term traders from the GCB market. Today, buyers are owner occupiers and very long-term investors", Mr Wong said.

Still, this year saw the most expensive sale in two years when a bungalow in Ridout Road changed hands in late March for $60.6 million, or $1,490 psf.

This is the highest overall price for a GCB since 3, Leedon Park was sold for a record $61.4 million in December 2010.

The Ridout Road seller was former Goldman Sachs banker Thomas Chan, who gained control of it last year after a protracted legal battle between the former owner Agus Anwar and another party to whom Mr Agus had earlier granted an option, said The Business Times (BT).

Mr Chan picked up the property for $37 million based on an option granted to him in

2009, and BT said Mr Chan is understood to have sold the property to Tecity Group, which is controlled by the family of the late OCBC Bank chairman Tan Chin Tuan.

The second most expensive sale this year was a GCB at Leedon Park for $33 million in October or $2,110 psf.

The third and fourth most expensive GCBs sold were in Binjai Park, and the fifth was in Chatsworth Road. All of them are freehold.

By the time this month is over, Mr Wong expects GCB deals to number 50 to 55 for all of this year and the value of transactions to come in somewhere between $1billion and $1.1 billion, similar to last year's performance.

If current sentiment continues, GCB deals may number around 50 next year, he added.

"We expect the GCB market to move at a cautious pace, given the weaker market sentiment as a result of the debt crisis in Europe, the slower global economic growth and the prohibitive nature of current bank loan terms."

[email protected]

Ridout Road

THIS was sold for $60.6 million in March this year, at $1,490 per sq ft.

This is the highest total price a good-class bungalow (GCB) has fetched since December 2010. The two-storey bungalow sits on a 40,679 sq ft freehold land plot, and is said to be more than 20 years old, with five bedrooms, a tennis court and swimming pool. The site could be subdivided to be redeveloped into two GCBs.

The house was the subject of a legal battle, concluded in October last year, between its former owner, Indonesian businessman Agus Anwar, and a company, EC Investment Holding (ECI).

Mr Agus had bought it through his company, Ridout Residence, for $28 million in 2006. He paid $11 million of that amount in cash, and paid the remaining $17 million from a $30 million loan from Hong Leong Finance.

When Hong Leong recalled the loan later, Mr Agus needed cash, so he sold other parties the right to buy the house at certain predetermined prices.

ECI paid Mr Agus $1.5 million to own an option to buy the house at $20 million.

Mr Agus and ECI agreed in September 2009 that ECI would not exercise its option to buy the house if Mr Agus paid ECI $3.5 million.

In October 2009, Mr Agus granted Goldman Sachs banker Thomas Chan the option to buy the home for a heftier $37 million.

When ECI found out, it warned Mr Agus that it would apply to the court to enforce its "buy" option on the house. Both parties then agreed Mr Agus would pay ECI $5 million to cancel ECI's purchase.

But Mr Agus failed to meet the November deadline for the settlement. ECI went to the High Court to try to enforce its contract, but it lost its case, and then lost the appeal.

Leedon Park

THE second most expensive sale this year was a bungalow in Leedon Park for $33 million in October. That translates to $2,110 per sq ft.

It received its temporary occupation permit in July last year.

The 15,640 sq ft site area was sold by bungalow investor George Lim. The house has six bedrooms and a pool; the built-up area is about 10,800 sq ft.

Another Leedon Park good-class bungalow holds the record for the most expensive home. The 41,852 sq ft site was sold in December 2010 for $61.4 million.

Binjai Park

Another freehold bungalow in Binjai Park was sold in April for $31 million, or $1,550 psf for the 20,000 sq ft land area.

It received its temporary occupation permit in June last year and was sold by GCB investor George Lim, who developed the property.

A GCB sitting on a 22,357 sq ft freehold plot was sold for $32.9 million in July, or $1,471 per sq ft (psf).

The new two-storey property, completed late last year, has seven en-suite bedrooms. The built-up area is about 17,000 sq ft.

Chatsworth Road

THIS freehold property was sold for $30 million in May, at $1,985 per sq ft for 15,113 sq ft.

The home is an old two-storey bungalow with six bedrooms, a guest room and swimming pool, said The Business Times.

It reported that both the seller and buyers are Singapore citizens. The buyers are understood to be in the gaming business outside of

 

[gooddebt]

SOUTHERN BOOM: JB and by extension, Iskandar will emerge as the hottest place in Malaysia to invest in from 2013, says property consultant

2013 will mark the beginning of a property super cycle for Johor Bahru with prices hitting its highest ever level in Johor’s history, predicts Gavin Tee, an international property consultant and speaker. “Prices there will go all the way to the top, in fact to its highest ever level in history making JB the hottest property market in Malaysia,” said the consultant. He continued, “JB will then be the whole nation’s focus and its property will remain prime property for years after that.”

Citing the recently completed catalytic projects such as LEGOLAND and Educity, and the expected completion of Pinewood Studios etc next year, Tee was confident that these would draw more and more people to Iskandar Malaysia in Johor. “As the capital city of Johor, Johor Bahru would reap the most benefit from the boom in Iskandar, and this is enhanced by its multibillion ringgit city transformation plans.”

“JB and by extension, Iskandar will then emerge as the hottest place in Malaysia to invest in from 2013,” the property man told NST RED in an exclusive interview recently.

Singaporeans have acknowledged this and are in fact shifting their investments into Iskandar, according to reports which also revealed that prices of property bought by these early investors have quadrupled since these projects were launched four years ago.

Singapore forms the largest single foreign investor in Iskandar with many investors proposing big investments in the region, among them billionaire Peter Lim with a planned real estate investment (motorsports hub) of RM3 billion, according to reports.

Successful SEZ models

Tee, who is also the Founder and President of SwhengTee Real Estate Investment Club further said that Iskandar, in addition to Cyberjaya and Greater KL are clearly successful models of Special Economic Zones (SEZ) which he predicted would be the leading property hotspots from 2013 as governments around the world seize upon the model to attract foreign investments. “The people who would benefit most are property investors who realise this and put in their money before anyone else does,” he said.

After JB (Iskandar), the next hotspot is Greater KL which includes Mont’ Kiara followed by Cyberjaya and tourist hotspots such as Penang, Melaka and Kota Kinabalu. Small towns like Kuching, Kuantan and Ipoh will also see some activities, shared Tee.

However, he continued, “Greater KL will not be that hot next year, but would be warming up as KL will once again be the focus three years later when most of the government mega projects such as the Mass Rapid Transit (MRT) would be in different stages of completion.”
“KL will definitely be the top hotspot in Malaysia before 2020 with many international investors eyeing it,” he predicted, adding that globalised properties in Bukit Bintang, KLCC, Mont’ Kiara and Petaling Jaya will once again hog the limelight by then.”

Tee added that as the market undergoes changes, the highest and the lowest perceived values may not be the correct values as property value is affected by many factors. Describing this as “The changing face of the real estate world”, Tee said that property investment will definitely undergo a game-changing shift across the world in 2013.

He will speak more on how the rules of the game have changed and how to read the market correctly in a one day seminar on 19th January 2013. To be held at the PWTC (Putra World Trade Centre), the seminar will include an investment programme where Tee will talk on how to identify the entry and exit points of your investments as well as his forecast for 2013. NST RED and New Straits Times are the official media partners for the seminar.

 

[shctaw]

Picture from that news above.

 

[DWKY9]

Hi , Anyone know about this development coz the developer email me their new project, price sounds attractive but dunno where it this place, i i guess maybe near setia eco garden there..Chief Wuqi any comment on this project? Thanks ..for those are looking an look see look see. But for me i still prefer HH

http://metrohomesiskandar.wordpress.com/2012/12/24/nusatara-prima/

 

[siacw]

taman nusantara, near gelang patah and setia eco garden. it is non guarded and gated development so it is priced cheap.

I maybe wrong but I think there is the high tension cable run across or quite nearby. need to go to actual site and see.

 

[graveyard]

View attachment 8563

Picture from that news above.

So colorful .. like a circus across the causeway

 

[avelc]

Awaiting the new skyline in 2017

View attachment 8563

Picture from that news above.

 

[graveyard]

Awaiting the new skyline in 2017

Vested in Sky88?

 

[avelc]

Nope no bullets, but still excited at landmark project...

Vested in Sky88?

 

[graveyard]

Nope no bullets, but still excited at landmark project...

yesss, looking fwd too. It will be the "Reflection @ Keppel" condo of JB or more ambitiously, petronas twin tower! That would be gorgeous especially at night

 

[shctaw]

The overall high-end condominium market has been challenging in the past six months and this is expected to continue into next year.

Knight Frank reported that two new completions in the second half of 2012 with a total of 967 units from St. Mary Residences and Binjai 8 have brought the cumulative supply of condominium units in Kuala Lumpur to 30,849 units.

Real Estate Highlights (Second Half 2012) says this number is expected to swell further with the completions of several other projects. Their completions will significantly increase the cumulative supply by about 5,000.

The report says a high level of impending supply of high-end condominium is expected next year from on-going products.

This situation has led to developers and buyers playing a “waiting game”, with developers waiting for “the right timing” by putting launches on hold, and extending completion dates. Buyers on the other hand wait for better prospects.

Despite developers working with banks to offer easy lending schemes and incentives such as low down payments, discounts and free legal fees for sale and purchase agreement, the sales rates of selected recent launches and on-going developments, are slow.

This is particularly so for units with large built-up areas. This is a consequence of existing and impending supply and a challenging leasing market stemming from low occupational demand.

Against this backdrop, BRDB's Serai seems to buck the trend. Located at Bukit Bandaraya, Kuala Lumpur, Serai units range from 4,025 sq ft to 6,913 sq ft. Sold at between RM1,300 and RM1,500 per sq ft, that project is about 60% sold. There will be two penthouses of 14,000 sq ft, priced between RM19mil and RM22mil.

As for the Kuala Lumpur City Centre market, DTZ Nawawi Tie Leung Property executive director Brian Koh does not see any significant change in conditions for the larger units with a built-up area of 2,000 sq ft and above going forward.

“New supplies continue to be completed and even if demand were to improve, this will not be sufficient to mitigate market weaknesses,” says Koh.

“A new successful launch such as Four Seasons Residences or Platinum Park Residence will certainly create confidence, and assure existing and new buyers that the KLCC market is one that is worthwhile to hold long term. KLCC Properties will also have some iconic projects to be launched next year that will help to create and enhance the attractiveness of that overall location,” he says.

On the overall condominium market for the coming year, Koh prefers to focus on the Johor market. He says the condominium market will be the main demand driver in urban areas with Johor's Iskandar region showing more resilience given the low base it is coming from.

“Demand in the Klang Valley will be more selective and for more modest sizes and pricing. Locations that are further away but with potential MRT links will benefit most as their land cost remains more competitive,” says Koh.

It is not just the connectivity that buyers are looking for, as seen from the launch of Serai, which is ideally located between Kuala Lumpur and Petaling Jaya.

Increasingly, a popular trend in luxury housing is the branded residences concept that developers tie up with international luxury hospitality and lifestyle brands to set a new definition to luxury living. Hotel-like services such as concierge, security and room service provided by a luxury brand will help maximise the value of a development.

KL City is certainly getting a fair share of this new residential concept as evident from the success of Banyan Tree Signatures Kuala Lumpur (441 private residences) which were sold out at an average pricing of RM2,000 per sq ft. Other notable luxury brands coming on-stream include Four Seasons Place, W Kuala Lumpur Hotel & Residences, Ritz-Carlton and Harrods Hotel and Residences.

PPC International Sdn. Bhd's managing director Siders Sittampalam says the high-rise residential segment registered an average rental rate of RM3.50 per sq ft per month. Rentals in the city centre were the highest in areas like KLCC, and for new condominiums in Bangsar and Mont'Kiara. Areas like Subang Jaya and Kota Damansara continue to command stable rates at an average of RM1.50 to RM2.50 per sq ft.

“Notwithstanding this, currently, there are no indications that market is heading towards a bubble' mode. Property prices next year are expected to stabilise with the exception of certain segments and localities that would experience a slowdown.

“We do not expect the market to be bullish as we have seen over the last few years. Our view is that there should not be stringent fiscal measures that would stifle the market. Excessive interference in the free market would have an impact on the investment climate.

“Prices should be market driven with sufficient government expenditure in providing affordable homes and a general improvement in infrastructure and transportation,” Siders says.

http://biz.thestar.com.my/news/story.asp?file=/2012/12/29/business/12516193&sec=business

 

[Dfiris]

Dun understand why these "experts" or "analysts" dun tell us to buy Iskandar 1-2 years back.

hopefully KL prices will be like what they say, stagnant and wait for those bros to profit from Iskandar first.

 

[graveyard]

Dun understand why these "experts" or "analysts" dun tell us to buy Iskandar 1-2 years back.

hopefully KL prices will be like what they say, stagnant and wait for those bros to profit from Iskandar first.

if i were one of these property "guru" who could foresee the potential of Iskandar 1-2 years ago, i would have quietly buy up a few properties there and after vested, write and spread positve news to boost confidence in the project and let the market demand shoot up the price so i can reap huge profits.

Hence, you only hear from these gurus only now when prices have shot up so much

 

[shctaw]

Dun understand why these "experts" or "analysts" dun tell us to buy Iskandar 1-2 years back.

hopefully KL prices will be like what they say, stagnant and wait for those bros to profit from Iskandar first.

事后诸葛亮。

Most of this ANAL-lyst do not do research. They only follow the wind.

It is like asking you to bet on a "sure win" horse with small payout. They will never point to you a dark horse.

They will say Iskandar, but they will never say where in Iskandar.

 

[Mingchye]

Try reading up Ho chin soon's book esp the one on iskandar malaysia. Can borrow from sg public libraries
He is someone who'S views I respect.