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20 June 2012

20th June, Wednesday




Buyers return 150 private homes in May

Source: The Straits Times

Private home buyers returned 150 units to developers last month at projects such as Sky Habitat, The Tampines Trilliant and Hillsta - the highest number in at least five years.

These units, bought in April, made up 5.7 per cent of the more than 2,600 non-landed homes, including executive condominiums (ECs), sold that month, an analysis by a property research firm shows.

Despite the high absolute figure for returns, experts say that in percentage terms, the rate is in line with last year's.

For example, those choosing not to exercise their options forfeit 1.25 per cent of the price. This works out to $12,500 for a $1 million condo.

An analyst said that some buyers might also have been spooked by National Development Minister Khaw Boon Wan's comments last month that the Government is monitoring the trend of shoebox units and would consider additional regulations, if necessary.

Dennis Wee Group's senior manager of research and consultancy Lee Sze Teck said buyers might return units if they find more attractive options elsewhere or have simply changed their minds.

Buying sentiment is still healthy and positive, he noted, and if the local economy is doing well and jobs are still secure, then despite the shadow of the euro zone crisis, buyers might still keep their purchased units.


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Home demand set to slow, say analysts

Source: Today

Home buying for the second half of the year could slow because a large portion of pent-up demand has already been satisfied, market watchers said Tuesday.

And with six new sites for executive condominium (EC) development up for tender later this year, prices for mass market homes may also fall, they added.

MCC Land, the developer of 1 Canberra, an EC project, said the show flats had not been as crowded lately as before. On the new sites, Mr Richard Nah, Senior Manager at MCC Land, said: "The developers would have taken note of the sentiment on the ground, so we will be circumspect in terms of our bid. We have to look at the current benchmark. In other words, what is the current pricing of the ECs within that locale or even slightly beyond."

Some property analysts said the new land supply for the second half of the year that can yield 3,100 EC units could put pressure on developers of mass market projects.

An analyst said: "If they over price it, Singaporeans will have an alternative property purchase in the form of an EC. The per sq ft price of mass market, the minute it exceeds S$1,200, there's already going to be resistance from many buyers." He expects a 5-per-cent fall in prices of mass market homes in the second half of the year.


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Investment Sales


Three conservation shophouses on Amoy Street for sale

Source: Business Times

Three prime conservation shophouses along Amoy Street have been put up for sale by expression of interest.

The three shophouses - 77, 78, and 79/80 Amoy Street - sit on a combined site area of 8,182 sq ft, with an estimated floor area of 23,820 sq ft.

They have a leasehold of 999 years, with a balance of 814 years left on the lease. Interested parties have the option to purchase either two shophouses (ie 78 and 79/80 Amoy Street), or all three units.

According to the marketing agent, the units could fetch some $1,600 psf of gross floor area.

Expressions of interest will be closed on 25 July by 5pm.


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OKH unit lodges top bid of $23m for Tai Seng site

Source: Business Times

A 30-year leasehold industrial site at Tai Seng Link garnered a top bid that exceeded consultants' expectations at its tender close Tuesday.

OKH (Woodlands) Pte Ltd - a unit of OKH Holdings - put in an offer of $23.3 million for the 0.43-hectare site, which translates to around $199.69 per sq ft per plot ratio (psf ppr), putting it at a 28 per cent premium above the second highest bid of $18.2 million (or $155.98 psf ppr) from Soilbuild Group Holdings Ltd.

This was not the first time OKH has put in a record bid for a site. Last year, another of the group's units offered a top bid of $84.24 million for a 60-year leasehold industrial site at Woodlands Avenue 12, some 10 per cent higher than the second highest bid and more than twice the psf price paid for a nearby site, exceeding market expectations.

Said to be way above expectations (of around $100 to $170 psf ppr), consultants noted that should the tender be awarded to the top bidder, the selling price of the finished development would be in the range of $450 to $500 psf ppr.

Industry observers feel the site's attractiveness stemming from its close proximity to Tai Seng MRT station, was likely to have been offset by the condition that developers will not be allowed to strata sub-divide the development in the first 10 years after completing the project.

The site is located within Paya Lebar iPark and has a permissible gross plot ratio of 2.5, which translates to a maximum gross floor area of about 116,681 sq ft.


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