Waiting for regulatory approval among reasons cited by S'pore developers
Published on Sep 25, 2014 1:08 AM
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LAUNCHES by Singapore property players in the Iskandar Malaysia development zone appear to have stalled amid a subdued market.
For instance, CapitaLand said on Tuesday it is "waiting for the relevant regulatory approval for (its) Danga Bay project's masterplan". CapitaLand has yet to launch the first phase of its $3.2 billion development there, a high-rise 900-unit condominium being undertaken with joint venture partners.
In its annual report, it said the project would be "launch ready" this year. A spokesman said the developer has not sought an extension, contrary to a news report on Tuesday. The Straits Times understands CapitaLand's local partner, Iskandar Waterfront Holdings (IWH), on Tuesday called for a meeting with the Singapore firm to explore how best to expedite the approval. Temasek Holdings is a third partner in the joint venture.
Another Singapore developer to face delays is Rowsley, which is building the $2.2 billion Vantage Bay integrated project, including the 75-storey residential development Skies. Vantage Bay chief executive and Rowsley executive director Ho Kiam Kheong said in a report last year it would launch its residential units by this year's first quarter. But he said on Tuesday the firm is in the process of obtaining the advertising permit and developer's licence.
A third developer, Link (THM) Holdings, which is developing the $1 billion Media Village integrated project, seems to have held back as well.
Link founder and group chief executive Kenny Tan said in a report last year it expected to launch apartments and business suites for sale by the end of last year. Link had not responded by press time.
Sin-Hao Yuan Land, linked to Singapore developer Hao Yuan Investment, has also been fairly quiet since details of a $3 billion integrated development at Danga Bay with IWH were announced late last year. Its land is next to the CapitaLand site.
"The project is still in its planning stage (and) we do foresee some delay, not uncommon for a project of this nature and magnitude," a spokesman said.
What is going on? "Recent feedback on the ground is that the approval authorities are much slower in issuing the advertising permit and development licence," said Mr Johnny Chng, head of international projects at consultancy OrangeTee.
But he added it is possible developers are reviewing their launch strategy after
the status of the first launch of Guangzhou R&F's Princess Cove, which has apparently suffered weak sales.
"The huge number of units launched would have significant impact on the investment environment in the vicinity. The growing presence of developers from China may have also raised concerns of a possible supply overhang in Iskandar," said Mr Chng.
Mr V. Sivadas of PA International Property Consultants said: "Nobody expected the large number of high-rise residences on the waterfront."
Other than Princess Cove, CapitaLand's project and Skies are also set to be on the waterfront.
"Waterfront units, which tend to be priced at a premium due to higher land costs, are having difficulty sustaining sales... Until developers of such properties have their target market right, it would make sense to hold back," said Mr Sivadas.
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