7th September, Friday
Government
Council for Estate Agencies files charges against unregistered salesman Source: Channelnewsasia A man who positioned himself as a salesperson has been taken to task by the Council for Estate Agencies (CEA). CEA has filed six charges against Tan Hock Khin, 41. The charges against Tan include holding himself out as a salesperson without being registered with the council, and for impeding CEA inspectors from lawfully gathering evidence of the offences. Tan also provided false information during his interview with a CEA inspector. CEA said Tan also neglected to provide the required information and documents despite receiving two written notices from CEA.
Link to the story: http://www.channelnewsasia.com/stories/singaporelocalnews/print/1224379/1/.html
Residential
Tai Thong Crescent site attracts 8 bids Source: Channelnewsasia The Urban Redevelopment Authority (URA) said a Reserve List site at Tai Thong Crescent (Parcel C) has attracted strong interest with a total of eight bids. Spanning some 8,200 sq m, the 99-year leasehold site has been zoned for residential use with commercial space on the first storey. The top bid of S$245 million came from Verwood Holdings and Intrepid Investments. Verwood Holdings is a wholly-owned subsidiary of City Developments, while Intrepid Investments is a subsidiary of Hong Leong Holdings. The top bid was about 11 per cent higher than the second bid, which was submitted by Chip Eng Seng's unit, CEL Property. Analysts said the top bid works out to a price of S$793 per sq ft (psf) per plot ratio and they estimate that the residential units in the development may be launched at a price of above S$1,450 psf. Senior manager for Training, Research and Consultancy at Dennis Wee Group, Lee Sze Teck, said: "The rejuvenation of Potong Pasir with the injection of residential developments like 18 Woodsville, Nin Residence, The Senett, the recently-sold Pheng Geck Avenue site and the current site will increase demand for retail amenities in the area. The commercial component on the first storey will help address the shortfall." In a statement, CDL said if the bid for the site is successful, they plan to build a residential development of up to 19 storeys, with around 28 commercial units on the ground floor. And some of these commercial units may be released for sale. URA said a decision on the award of the tender will be made after the bids have been evaluated.
Links to the story: http://www.channelnewsasia.com/stories/singaporebusinessnews/print/1224419/1/.html http://www.businesstimes.com.sg/print/222520 http://www.straitstimes.com/st/print/460637
Bishan HDB executive maisonette changes hands for record $980,000 Source: The Straits Times Despite its steep $980,000 asking price, a Bishan executive maisonette was snapped up on the first day of an open house held to sell it. The buyers are a Singapore citizen and her Chinese-national father, and the seller is a Singaporean woman who is relocating to Shanghai for work. The price tag makes this the most expensive Housing Board (HDB) resale flat sold. The last record was held by an executive flat in Toa Payoh, which was sold for $910,000 in May this year. The $980,000 includes a $200,000 cash over valuation (COV), which is a premium paid to the seller in cash. It is also believed to be the highest ever COV reported. Dennis Wee Group property agent Thomas Hee, who represented the buyers, said such spacious maisonette units with open terrace roofs are hard to come by. There are only 48 such homes islandwide, he said. "When they are put up for sale, they're always snapped up," said Mr Hee. "In this case, the buyer was able to meet the owner's expectations very quickly." Property analysts, however, were quick to point out that the record-breaking deal is a one-off that is unlikely to drive up resale flat prices or COV quantums.
Link to the story: http://www.straitstimes.com/st/print/460460
Seven units smash $900,000 price tag Source: The Straits Times Seven HDB resale flats have been sold for at least $900,000 - five in this year alone, property agency data show. And according to the Singapore Real Estate Exchange, which collates information from the Housing Board and major property firms, a $1 million deal for an executive maisonette in Queenstown is in the works. All seven transactions were in mature towns where there are well-developed transport links and amenities. Three were in Bishan, two in Queenstown, and one each in Kallang and Toa Payoh. They range from 1,180 sq ft to 1,850 sq ft. This trend does not reflect the whole public market situation. Buyers of premium flats are typically private-property downgraders who have cashed out and want to live in a flat of comparable size. They can also afford high cash over valuation (COV).
Link to the story: http://www.straitstimes.com/st/print/460447
Developer takes back 20 units after buyers' cheque bounces Source: The Straits Times Developer UIC has taken back 20 units worth more than $30 million in total at high-end project V on Shenton, after the buyers failed to stump up the money for the bulk purchase. The Straits Times understands that the mega-deal was made jointly by a Singaporean and a foreigner, probably from Indonesia, during the project's soft launch in July this year. Those transactions were also aborted because of insufficient funds. A UIC spokesman told The Straits Times that it had since resold most of the units, at prices that were about 3 per cent higher.
Link to the story: http://www.straitstimes.com/st/print/460631
Investment Sales
Thomson View fetches $590m in en bloc sale Source: Business Times Thomson View condominium has been sold to a consortium led by Wee Hur Development Pte Ltd and Lucrum Capital Pte Ltd for $590 million after two previously unsuccessful en bloc attempts. Including an estimated $107 million premium to enhance the property's use and a $90 million premium to top up the lease from the remaining 62 years to 99 years, this translates to $712 per sq ft per plot ratio (psf ppr). The 540,314-sq-ft site, located along Upper Thomson Road, is designated for residential use with a 2.1 plot ratio and 24-storey maximum height.
Links to the story: http://www.businesstimes.com.sg/print/222563 http://www.straitstimes.com/st/print/460446 http://www.channelnewsasia.com/stories/singaporebusinessnews/print/1224418/1/.html
CIT not selling Lam Soon units at the moment Source: Business Times Cambridge Industrial Trust (CIT) will not be selling its 97 freehold strata units in Lam Soon Industrial Building on Hillview Avenue just yet. Its manager, Cambridge Industrial Trust Management Ltd, said yesterday that though it received several offers for the proposed collective sale, none of the parties was willing to fully meet the terms of the Collective Sale Agreement, and hence no private contract was concluded. Lam Soon Industrial Building is a 10-storey light industrial development comprising 154 warehouses and light industrial factories. CIT's 97 units represent 69.44 per cent of the building's total share value.
Link to the story: http://www.businesstimes.com.sg/print/222402
International Markets
New Aussie tax rules may hit Singapore investors Source: The Straits Times A move by the Australian government to abolish a tax discount previously enjoyed by foreign property investors could have major implications for Singaporeans with houses Down Under, a tax expert said. Previously, a non-Australian resident who bought and then sold a property in Australia paid a capital gains tax on only 50 per cent of the profits he made from the sale. However, the government announced during its annual budget in May that it would remove the discount for non-residents, effective immediately. Capital gains are taxed at the same rate as income in Australia, and real estate is the only type of investment asset on which the tax applies. The top marginal tax rate in Australia is 45 per cent.
Link to the story: http://www.straitstimes.com/st/print/460636
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