19th November, Monday
Residential
8 projects may be nearing sales deadline Source: The Straits Times At least eight private housing projects, mostly in prime areas, are likely running out of time to sell their units within two years of completion, as stipulated by the authorities. High-end developments such as The Marq on Paterson Hill and Hilltops in Cairnhill Circle, for instance, have been completed for at least a year but still have hundreds of new units sitting unsold. If they are not sold within the next 12 months or less, developers may have to fork out extension charges to buy themselves more time after the two-year deadline. Developers pay 8 per cent, 16 per cent and 24 per cent of the property purchase price for the first, second and third extra years, respectively. The amount is pro-rated based on the proportion of unsold units. SC Global's 241-unit Hilltops, for example, was completed in the second quarter of last year and has till about June next year to sell its 196 apartments still unsold as at the end of September. Its other luxury project, the 66-unit The Marq on Paterson Hill, completed in the first quarter of last year, has till about March next year to find buyers for its 33 unsold units. Wheelock Properties' Scotts Square in Scotts Road also has 72 units unsold. It was completed in the third quarter of last year and also has less than a year to move its remaining units. Other projects facing a similar predicament, with at least 10 units still unsold, include 88-unit Martin No. 38 with 21 units left and Residences at Emerald Hill with all its 33 units unsold. Under the Residential Property Act, housing developers whose shareholders and directors are not all Singaporeans have to get a Qualifying Certificate (QC) to buy residential property for development. This is imposed to control foreign ownership of land here. This gives developers up to five years to build the project and requires them to sell all the units within two years of obtaining the temporary occupation permit (TOP). They are not allowed to rent out unsold units.
Link to the story: http://www.straitstimes.com/st/print/610234
International Markets
China's new home prices up in October Source: Business Times Prices of new homes in China rose in October in more cities than the previous month, indicating the government will refrain from relaxing curbs on the property market. Prices climbed in 35 of the 70 cities the government tracks, compared with 31 in September, according to data released by the statistics bureau Sunday. Prices fell in 17 cities, the data showed. The government is unlikely to relax property curbs introduced over two years to rein in surging prices that raised concerns about affordability, after the Communist Party unveiled the new generation of leaders last week. The measures have had a "relatively good" effect and the government will "steadfastly" enforce property controls, Housing Minister Jiang Weixin said at a press conference in Beijing last week. The government wants to maintain the curbs because steady sales and mild price growth are the "exact situation" it wants to see, while further tightening will damp a tentative recovery in the Chinese economy, an analyst said. Private data has also shown that the housing market is stabilising. Home prices gained 0.17 per cent in October, advancing for a fifth month, according to the nation's biggest real estate website. China's housing sales climbed 6.6 per cent to 3.88 trillion yuan in the first 10 months, while investment in homes, office buildings, malls and other real estate gained 15.4 per cent to 5.76 trillion yuan.
Links to the story: http://www.businesstimes.com.sg/print/327041 http://www.channelnewsasia.com/stories/afp_asiapacific_business/print/1237995/1/.html
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