PROPERTY developers such as Koh Brothers and GuocoLand, which bought collective sale sites during boom times, are now becoming landlords as they wait out the market slowdown.
They are leasing out apartments they bought to existing occupants as a way to generate some income instead of simply leaving them vacant.
If the property upswing had continued, these developers might well have moved quickly to tear down the older homes to put up new developments.
But the sharp slowdown in home sales has put paid to such thoughts for now.
Market observers say renting is a nimble move given present market conditions.
For sellers of units in collective deals who have yet to buy a new home, it is a win- win situation as they would have collected their sale proceeds.
Take, for example, the consortium that bought freehold Lincoln Lodge for $243 million in June last year.
It has decided to allow occupants to keep renting homes for six months from the sale completion date of July 8, and thereafter on a monthly extension basis.
‘Upon requests by some of the sellers to stay on, and while waiting for approvals, we have decided to grant them this request by extending a lease,’ said Mr Francis Koh, Koh Brothers’ managing director and chief executive.
Rents at Lincoln Lodge range from $2,700 to about $4,500 for larger units.
In the middle of last year, at the height of the collective sale frenzy, Koh Brothers bought the Newton site with Heeton Holdings, KSH Holdings and Lian Beng Group for a record $1,449.30 per sq ft (psf) per plot ratio.
A Lincoln Lodge seller, who wished to be known only as Mr Tan, welcomed the rental move as sellers had collected sale proceeds in January, and those who had not bought a home could take their time.
‘It’s an option…I know someone who negotiated the rent down to $2,500,’ he said.
GuocoLand seems to be the early rental front runner.
It offered residents short-term leases at Sophia Court in Adis Road last year, followed by Leedon Heights off Holland Road earlier this year. The leases started in March at Sophia Court and yesterday at Leedon Heights. Both last till Jan 31 next year.
A three-bedroom unit at Leedon Heights costs $2,850 a month, while rents at Sophia Court range from $800 to more than $4,000 a month.
GuocoLand bought Leedon Heights in April last year for $835 million and Sophia Court in late 2006 for $230 million.
Renting out units is a way to ‘wait out the current quiet in the market’, said Knight Frank’s director of research and consultancy, Mr Nicholas Mak.
‘If developers were to launch their projects now, it may be challenging for them to reach their target price for some of the projects.’
Frasers Centrepoint said it may offer short-term leases to the former owners of the 185-unit Flamingo Valley, a freehold site in Siglap Road that it bought for $194 million in February last year.
‘We had 50 owners who wrote to ask us to extend their lease…They haven’t found anything suitable,’ said the firm’s general manager of development and property, Mr Cheang Kok Kheong.
He said the firm was likely to extend a lease of six months to a year. This would ‘give us more time to think about our plans’.
City Developments (CDL) has said it is still exploring the renting option.
Renting out apartments bought in collective sales is not new. CDL did so a few years back, when it rented out all 124 apartments in Kim Lin Mansion in Grange Road.
It had bought it in late 1999 for $251 million, or $996 psf of potential built-up area, but pushed it out for sale only at the height of the property boom last year. It fetched prices of $3,600 psf.
Win-win deal
· Developers lease out units to generate income instead of leaving them empty as they sit out the market slowdown.
· Sellers of collective sale projects who have yet to buy new homes can stay on in their existing units as tenants.
TOUGH TARGET
‘If developers were to launch their projects now, it may be challenging for them to reach their target price for some of the projects.’ - MR MAK of Knight Frank, on companies holding out for better prices
Source : Straits Times - 4 Jun 2008
Friday, June 27, 2008
4 sites relaunched for collective sale at lower prices
PropNex hopes 30% cut in asking price will attract buyers, as demand is ’still there’
A BOLD property firm is defying market trends with a renewed bid to sell four housing sites en bloc, even though the market appears dead for now.
PropNex Realty admits its move is ‘contrarian’ but hopes a hefty asking price cut of up to 30 per cent will attract buyers.
Even then, developers may not bite, given market uncertainties, property consultants say.
Some other sites were relaunched for collective sale this year, but none was sold. Any bids that did emerge were below the owners’ expectations.
PropNex is relaunching four sites: Cavenagh Gardens in Cavenagh Road, Novena Hill in the Novena area, Seletar Gardens along Yio Chu Kang Road and Hong Thye in Geylang.
‘We are trying to take a contrarian view,’ said the firm’s head of investment sales and commercial department, Mr Charles Chua. ‘We believe the demand is still there. Someone has to take the lead and kick-start the market.’
The four estates were first launched for sale around September and October last year. Their owners had since lowered their expectations, but not their reserve prices. This was the minimum sale price fixed when the owners first agreed to a collective sale.
In the case of the 130,000 sq ft Cavenagh Gardens, the asking price is now $450 million to $455 million, well down from $619 million in October.
Mr Chua hopes the prospect of combining the freehold site with an adjoining piece of state land will be an added attraction.
That will lower the price to as little as $1,481 per sq ft per plot ratio (psf ppr). Last year, the price was $2,308 psf ppr, excluding the state land. A developer could then sell the new units at about $2,200 psf, said Mr Chua.
Seletar Gardens is also heavily discounted now. The asking price is $50 million to $55 million from $75 million last year.
The asking price at Novena Hill is now at $42 million to $45 million, down from up to $60 million last year.
And the price tag on the Geylang plot has had about $3 million lopped off and is now going for up to $13 million.
However, even if the sellers have lowered their pricing expectations, there are other issues to consider, observers say.
‘It depends on how reasonable the seller’s price is. It is quite meaningless to lower just the asking prices and not the reserve,’ said a market observer. ‘If developers were interested in buying below the asking prices, they would already have asked for it.’
Most developers already have some projects on their books, so they may not be keen, said Mr Colin Tan, Chesterton International’s head of research and consultancy.
‘The issue is the construction bottleneck,’ he said. ‘For new sites, they have to consider rising construction costs, in addition to the risk of a declining market.’
Mr Karamjit Singh, the managing director of Credo Real Estate, which has handled a significant amount of collective sales, said developers would need a greater profit margin in the event selling prices soften even further.
Source : Sraits Times - 5 Jun 2008
A BOLD property firm is defying market trends with a renewed bid to sell four housing sites en bloc, even though the market appears dead for now.
PropNex Realty admits its move is ‘contrarian’ but hopes a hefty asking price cut of up to 30 per cent will attract buyers.
Even then, developers may not bite, given market uncertainties, property consultants say.
Some other sites were relaunched for collective sale this year, but none was sold. Any bids that did emerge were below the owners’ expectations.
PropNex is relaunching four sites: Cavenagh Gardens in Cavenagh Road, Novena Hill in the Novena area, Seletar Gardens along Yio Chu Kang Road and Hong Thye in Geylang.
‘We are trying to take a contrarian view,’ said the firm’s head of investment sales and commercial department, Mr Charles Chua. ‘We believe the demand is still there. Someone has to take the lead and kick-start the market.’
The four estates were first launched for sale around September and October last year. Their owners had since lowered their expectations, but not their reserve prices. This was the minimum sale price fixed when the owners first agreed to a collective sale.
In the case of the 130,000 sq ft Cavenagh Gardens, the asking price is now $450 million to $455 million, well down from $619 million in October.
Mr Chua hopes the prospect of combining the freehold site with an adjoining piece of state land will be an added attraction.
That will lower the price to as little as $1,481 per sq ft per plot ratio (psf ppr). Last year, the price was $2,308 psf ppr, excluding the state land. A developer could then sell the new units at about $2,200 psf, said Mr Chua.
Seletar Gardens is also heavily discounted now. The asking price is $50 million to $55 million from $75 million last year.
The asking price at Novena Hill is now at $42 million to $45 million, down from up to $60 million last year.
And the price tag on the Geylang plot has had about $3 million lopped off and is now going for up to $13 million.
However, even if the sellers have lowered their pricing expectations, there are other issues to consider, observers say.
‘It depends on how reasonable the seller’s price is. It is quite meaningless to lower just the asking prices and not the reserve,’ said a market observer. ‘If developers were interested in buying below the asking prices, they would already have asked for it.’
Most developers already have some projects on their books, so they may not be keen, said Mr Colin Tan, Chesterton International’s head of research and consultancy.
‘The issue is the construction bottleneck,’ he said. ‘For new sites, they have to consider rising construction costs, in addition to the risk of a declining market.’
Mr Karamjit Singh, the managing director of Credo Real Estate, which has handled a significant amount of collective sales, said developers would need a greater profit margin in the event selling prices soften even further.
Source : Sraits Times - 5 Jun 2008
Four en bloc sites back on market with lower tags
Cavenagh Gardens, Novena Hill, Seletar Garden, Hong Thye offered in Q4 2007
FOUR collective sale sites are back on the market, with price expectations much lower than when they were offered in Q4 last year. Cavenagh Gardens, Novena Hill, Seletar Garden and Hong Thye are for sale after attracting weak bids the last time round.
The freehold Cavenagh Gardens near the Istana could fetch $450-$455 million or $1,671 to $1,689 per sq ft per plot ratio (psf ppr). This is 27 per cent lower than the expected price of $619 million or $2,308 psf ppr last October.
The buyer may be able to alienate adjoining parcels of state land for a further $10 million. If approved, the combined site would have a potential gross floor area (GFA) of 310,649 sq ft, bringing the price down to $1,481 to $1,497 psf ppr.
The site could yield 155 units with an expected breakeven cost of $1,915 psf and an expected selling price of $2,200 psf.
If the authorities allow redevelopment with a plot ratio equivalent to the development baseline of 3.24, the site’s potential GFA could increase to 479,287 sq ft.
Riding on the back of redevelopment plans for Paya Lebar Central under Draft Master Plan 2008, Hong Thye at Lorong 39 Geylang is also up for sale again. The freehold site could fetch $12-$13 million, which translates to $359 to $385 psf ppr including an estimated $1.9 million development charge (DC).
With a potential GFA of 38,702 sq ft, the site could house 40 units with an expected breakeven cost of $709 to $735 psf, and an expected selling price of $780 to $809 psf.
Last October, the site was up for sale at $15-$17 million or $438 to $489 psf ppr including DC.
The expected price for a freehold residential site at Novena Hill is $42-$45 million or $1,170 to $1,254 psf ppr. The site, with a potential GFA of 35,885 sq ft, could yield 40 boutique apartments. The site was up for sale last October at $56-$60 million.
The last site, Seletar Garden in Yio Chu Kang Road, is an estate in perpetuity. Located near the Seletar Aerospace Park, the mixed-development site could fetch $50-$55 million or $488 to $537 psf ppr. The expected price was $70-$75 million last September.
There is also the possibility of alienating three parcels of adjoining state land at an estimated additional cost of $7.9 million. The combined site would have a potential GFA of 132,219 sq ft, lowering the price to $438 to $476 psf ppr.
Propnex is marketing the four sites. According to its head of investment sales Charles Chua, although the property market is relatively quiet, ‘we do believe that there are pockets of pent-up demand’.
Source : Business Times - 5 Jun 2008
FOUR collective sale sites are back on the market, with price expectations much lower than when they were offered in Q4 last year. Cavenagh Gardens, Novena Hill, Seletar Garden and Hong Thye are for sale after attracting weak bids the last time round.
The freehold Cavenagh Gardens near the Istana could fetch $450-$455 million or $1,671 to $1,689 per sq ft per plot ratio (psf ppr). This is 27 per cent lower than the expected price of $619 million or $2,308 psf ppr last October.
The buyer may be able to alienate adjoining parcels of state land for a further $10 million. If approved, the combined site would have a potential gross floor area (GFA) of 310,649 sq ft, bringing the price down to $1,481 to $1,497 psf ppr.
The site could yield 155 units with an expected breakeven cost of $1,915 psf and an expected selling price of $2,200 psf.
If the authorities allow redevelopment with a plot ratio equivalent to the development baseline of 3.24, the site’s potential GFA could increase to 479,287 sq ft.
Riding on the back of redevelopment plans for Paya Lebar Central under Draft Master Plan 2008, Hong Thye at Lorong 39 Geylang is also up for sale again. The freehold site could fetch $12-$13 million, which translates to $359 to $385 psf ppr including an estimated $1.9 million development charge (DC).
With a potential GFA of 38,702 sq ft, the site could house 40 units with an expected breakeven cost of $709 to $735 psf, and an expected selling price of $780 to $809 psf.
Last October, the site was up for sale at $15-$17 million or $438 to $489 psf ppr including DC.
The expected price for a freehold residential site at Novena Hill is $42-$45 million or $1,170 to $1,254 psf ppr. The site, with a potential GFA of 35,885 sq ft, could yield 40 boutique apartments. The site was up for sale last October at $56-$60 million.
The last site, Seletar Garden in Yio Chu Kang Road, is an estate in perpetuity. Located near the Seletar Aerospace Park, the mixed-development site could fetch $50-$55 million or $488 to $537 psf ppr. The expected price was $70-$75 million last September.
There is also the possibility of alienating three parcels of adjoining state land at an estimated additional cost of $7.9 million. The combined site would have a potential GFA of 132,219 sq ft, lowering the price to $438 to $476 psf ppr.
Propnex is marketing the four sites. According to its head of investment sales Charles Chua, although the property market is relatively quiet, ‘we do believe that there are pockets of pent-up demand’.
Source : Business Times - 5 Jun 2008
Prices of some new properties coming down
Move may signal end of months-long stand-off between buyers and sellers
GOOD news for homebuyers: The prices of some new developments are finally starting to come down.
At least two new projects have been tagged with prices below what they were expected to fetch just months ago.
Shelford Suites (left)Sold in March for: $1,869 psf - $1,905 psfCurrent price: $1,600 psf
Dakota ResidencesPlanned price: $1,000 psf - $1,100 psfCurrent price: $950 psf — PHOTO: CITY DEVELOPMENTS
This may be because developers are faced with no sign of improvement in the cooling property market, consultants say. They may be choosing to move units by making their projects more affordable rather than continuing to wait out the gloomy sentiment.
One example is Dakota Residences in Dakota Crescent, a 99-year leasehold project by Ho Bee Investment and NTUC Choice Homes.
Sales of its 348 units will start next Saturday at an average of about $950 per sq ft (psf) - below the $1,000 psf to $1,100 psf that Ho Bee had previously targeted.
This means a 1,300 sq ft three-bedroom unit would cost about $1.24 million, down from as much as $1.43 million previously.
‘After the land cost and building cost, the break-even price is actually almost $900 psf,’ said a property agent, who asked not to be named.
The Straits Times understands that about 120 units will be released in the first phase, and prices may go up by at least 5 per cent for the remaining units, depending on demand.
For now, the two- and three-bedroom units that face away from Geylang River are said to cost $950 psf to $970 psf, while the bigger four-bedroom units facing the river will go for $1,000 psf.
City Developments’ (CDL) Shelford Suites in Shelford Road has also started previews for its 77 units at about $1,600 psf on average.
Market watchers said this was lower than expected, as two units were sold in March for $1,869 psf and $1,905 psf.
Shelford Suites’ launch had been delayed for months as CDL waited for sentiment to improve.
Property consultants say the act of lowering prices may be the beginning of the end of a months-long stand-off between homebuyers and home sellers that has led to a slump in transactions.
Would-be buyers have proved strongly resistant to current property prices, which have jumped 36 per cent in the last five quarters, while sellers have refused to reduce their prices until now.
But while lowering prices may jump-start the market, a one-off reduction may not be enough to sustain sales, said Mr Colin Tan, the head of research and consultancy at Chesterton International.
‘Developers will have to continue to reduce prices if they want to maintain sales, as many projects are still out of the reach of owner-occupiers,’ he said.
Meanwhile, developers are gearing up to launch more mid-tier projects for an increasingly price-sensitive market.
East Bay, a 40-unit condominium at Tay Lian Teck Road off Upper East Coast Road, will be on sale in the coming weeks. Prices average $1,100 psf, starting at about $600,000.
Also in the east, Ivory at Ceylon Road has sold about five of its 28 units. Prices start at $558,000 for a 640 sq ft two-bedroom apartment, averaging $800 psf.
At 353 Pasir Panjang Road, a 19-unit boutique project will be completed soon, though sales have just started. A handful of units have been sold so far, with one-bedroom apartments going for $550,000, and three-bedroom units priced at $1.4 million to $1.5 million.
ONE-TIME PRICE CUT NOT ENOUGH
‘Developers will have to continue to reduce prices if they want to maintain sales, as many projects are still out of the reach of owner-occupiers.’ - MR COLIN TAN, head of research and consultancy at Chesterton International, who thinks one-off price reductions may not be enough to sustain sales
Source : Straits Times - 12 Jun 2008
GOOD news for homebuyers: The prices of some new developments are finally starting to come down.
At least two new projects have been tagged with prices below what they were expected to fetch just months ago.
Shelford Suites (left)Sold in March for: $1,869 psf - $1,905 psfCurrent price: $1,600 psf
Dakota ResidencesPlanned price: $1,000 psf - $1,100 psfCurrent price: $950 psf — PHOTO: CITY DEVELOPMENTS
This may be because developers are faced with no sign of improvement in the cooling property market, consultants say. They may be choosing to move units by making their projects more affordable rather than continuing to wait out the gloomy sentiment.
One example is Dakota Residences in Dakota Crescent, a 99-year leasehold project by Ho Bee Investment and NTUC Choice Homes.
Sales of its 348 units will start next Saturday at an average of about $950 per sq ft (psf) - below the $1,000 psf to $1,100 psf that Ho Bee had previously targeted.
This means a 1,300 sq ft three-bedroom unit would cost about $1.24 million, down from as much as $1.43 million previously.
‘After the land cost and building cost, the break-even price is actually almost $900 psf,’ said a property agent, who asked not to be named.
The Straits Times understands that about 120 units will be released in the first phase, and prices may go up by at least 5 per cent for the remaining units, depending on demand.
For now, the two- and three-bedroom units that face away from Geylang River are said to cost $950 psf to $970 psf, while the bigger four-bedroom units facing the river will go for $1,000 psf.
City Developments’ (CDL) Shelford Suites in Shelford Road has also started previews for its 77 units at about $1,600 psf on average.
Market watchers said this was lower than expected, as two units were sold in March for $1,869 psf and $1,905 psf.
Shelford Suites’ launch had been delayed for months as CDL waited for sentiment to improve.
Property consultants say the act of lowering prices may be the beginning of the end of a months-long stand-off between homebuyers and home sellers that has led to a slump in transactions.
Would-be buyers have proved strongly resistant to current property prices, which have jumped 36 per cent in the last five quarters, while sellers have refused to reduce their prices until now.
But while lowering prices may jump-start the market, a one-off reduction may not be enough to sustain sales, said Mr Colin Tan, the head of research and consultancy at Chesterton International.
‘Developers will have to continue to reduce prices if they want to maintain sales, as many projects are still out of the reach of owner-occupiers,’ he said.
Meanwhile, developers are gearing up to launch more mid-tier projects for an increasingly price-sensitive market.
East Bay, a 40-unit condominium at Tay Lian Teck Road off Upper East Coast Road, will be on sale in the coming weeks. Prices average $1,100 psf, starting at about $600,000.
Also in the east, Ivory at Ceylon Road has sold about five of its 28 units. Prices start at $558,000 for a 640 sq ft two-bedroom apartment, averaging $800 psf.
At 353 Pasir Panjang Road, a 19-unit boutique project will be completed soon, though sales have just started. A handful of units have been sold so far, with one-bedroom apartments going for $550,000, and three-bedroom units priced at $1.4 million to $1.5 million.
ONE-TIME PRICE CUT NOT ENOUGH
‘Developers will have to continue to reduce prices if they want to maintain sales, as many projects are still out of the reach of owner-occupiers.’ - MR COLIN TAN, head of research and consultancy at Chesterton International, who thinks one-off price reductions may not be enough to sustain sales
Source : Straits Times - 12 Jun 2008
Singapore private home sales down 40% in Q1
Sentiments in the Singapore residential property market continued to weaken in the first quarter on the back of a possible recession in the United States.
Private home sales dropped by 40 percent in the first quarter of this year compared with the last quarter of 2007, according to a report by DTZ Research.
Transactions of private condominium units, based on caveats lodged, fell 41 percent to 2,500, while sales of landed homes declined 38 percent to 566.
Analysts said the poor sales were due to a stand-off between buyers and sellers’ price expectations.
“A lot of these sellers are still looking for prices at the peak of the market, which is probably in the middle of last year. They are still confident that the market would trend up in the mid term, and that the current slowdown is likely to be temporary,” said Tay Huey Ying, Director of Research & Advisory at Colliers International.
But the slowdown looks set to stay for a while. Developers are launching fewer units. Only 487 private condominium units were released for sale in the first quarter of this year, down 49 percent compared with the previous quarter. This is the lowest since the SARS period in the first three months of 2003.
The number of new properties resold before completion continued to decline, by 40 percent in the first quarter, the lowest in one and a half years.
“I think sub-sales will continue to remain at a very low volume in the coming quarters…..Speculators are likely to continue to stay away from the market at this point because the road ahead is still very uncertain - the uncertainty in the US economy, as well as the global financial market turmoil,” said Tan.
Going forward, analysts expect overall prices in the private residential property market to increase by between 0.5 and 1.5 percent in the second quarter of this year. - CNA /ls
Source : Channel NewsAsia - 12 Jun 2008
Private home sales dropped by 40 percent in the first quarter of this year compared with the last quarter of 2007, according to a report by DTZ Research.
Transactions of private condominium units, based on caveats lodged, fell 41 percent to 2,500, while sales of landed homes declined 38 percent to 566.
Analysts said the poor sales were due to a stand-off between buyers and sellers’ price expectations.
“A lot of these sellers are still looking for prices at the peak of the market, which is probably in the middle of last year. They are still confident that the market would trend up in the mid term, and that the current slowdown is likely to be temporary,” said Tay Huey Ying, Director of Research & Advisory at Colliers International.
But the slowdown looks set to stay for a while. Developers are launching fewer units. Only 487 private condominium units were released for sale in the first quarter of this year, down 49 percent compared with the previous quarter. This is the lowest since the SARS period in the first three months of 2003.
The number of new properties resold before completion continued to decline, by 40 percent in the first quarter, the lowest in one and a half years.
“I think sub-sales will continue to remain at a very low volume in the coming quarters…..Speculators are likely to continue to stay away from the market at this point because the road ahead is still very uncertain - the uncertainty in the US economy, as well as the global financial market turmoil,” said Tan.
Going forward, analysts expect overall prices in the private residential property market to increase by between 0.5 and 1.5 percent in the second quarter of this year. - CNA /ls
Source : Channel NewsAsia - 12 Jun 2008
Low demand so fewer govt sites for sale
THE Government’s latest half-yearly release of land for sale takes into consideration current low demand, but also anticipates a possible recovery in the medium or long term. National Development Minister Mah Bow Tan said that the Government’s decision to cut back on the number of development sites being released for outright sale in the second half of this year reflected feedback from the market.
‘Demand is currently slow and the market is quiet, so based on feedback we received, we decided to reduce the supply,’ he said on the sidelines of a dialogue in Tampines yesterday.
The Government announced on Thursday that only eight sites would be put up for outright sale in the next six months following poor interest in the 37 sites that have been available since the start of the year.
Of the 11 sites on the confirmed list, five sites have been sold, tenders for three sites have not closed and one site has not been launched. The other two were not sold.
The remaining 26 sites on the reserve list were not released for sale. These sites go on sale only if a developer makes a minimum bid.
For the second half of the year, 13 new sites were added, with 27 carried over from the first six months.
Of this batch of 40, eight are on the confirmed list with the rest on reserve.
Despite the flagging demand at the moment, Mr Mah said: ‘There may be some demand that could be waiting on the sidelines that we do not know about.
‘So we have to make sure that there is enough supply in the medium term.’
And while the Government does not want to put pressure on the market by flooding it with a supply of space in the short term, Mr Mah believed that land on the reserve list would meet requirements in the months ahead.
‘In the medium term, based on Singapore’s projected economic growth, population growth and demand for hotels and offices, we have worked to make sure that there will be enough supply on the reserve list.
‘We want steady and sustainable growth,’ he said.
Source : Sunday Times - 22 Jun 2008
‘Demand is currently slow and the market is quiet, so based on feedback we received, we decided to reduce the supply,’ he said on the sidelines of a dialogue in Tampines yesterday.
The Government announced on Thursday that only eight sites would be put up for outright sale in the next six months following poor interest in the 37 sites that have been available since the start of the year.
Of the 11 sites on the confirmed list, five sites have been sold, tenders for three sites have not closed and one site has not been launched. The other two were not sold.
The remaining 26 sites on the reserve list were not released for sale. These sites go on sale only if a developer makes a minimum bid.
For the second half of the year, 13 new sites were added, with 27 carried over from the first six months.
Of this batch of 40, eight are on the confirmed list with the rest on reserve.
Despite the flagging demand at the moment, Mr Mah said: ‘There may be some demand that could be waiting on the sidelines that we do not know about.
‘So we have to make sure that there is enough supply in the medium term.’
And while the Government does not want to put pressure on the market by flooding it with a supply of space in the short term, Mr Mah believed that land on the reserve list would meet requirements in the months ahead.
‘In the medium term, based on Singapore’s projected economic growth, population growth and demand for hotels and offices, we have worked to make sure that there will be enough supply on the reserve list.
‘We want steady and sustainable growth,’ he said.
Source : Sunday Times - 22 Jun 2008
Gillman Heights enbloc sale to move ahead following court’s ruling
AFTER three months of deliberation, Justice Choo Han Teck has delivered a 31-page judgment that - for now - signals the end of the Gillman Heights en-bloc saga.
However, it was not the outcome hoped for by the 22 minority owners seeking to scupper the S$548 million deal.
The judge said the specific issue was not one concerning protection for the minority, but “whether a privatised HUDC estate can participate in the benefits of an en-bloc sale if the requisite conditions are met”.
Under current laws, a 90 per cent approval is required for estates less than 10 years old and 80 per cent for those older.
Some 87.5 per cent of the 608 unit owners had agreed to the sale of Gillman Heights, built in 1984.
On the issue of the estate’s age, which the plaintiffs claimed was less than 10 years old since the condo only underwent privatisation in 1995 and acquired the Temporary Occupation Permits or Certificates of Strata Completion (CSC) in 2002, the judge ruled that the estate was more than 10 years old.
He said that there was also no bad faith and breach of natural justice due to the involvement of the National University of Singapore (NUS), which held 46.86 per cent share at the development.
Five months after the en-bloc sale was inked in February last year, it emerged that NUS was also a shareholder of Gillman Heights’ purchaser Ankerite Pte Ltd.
While some owners claimed this was a conflict of interest, Justice Choo said NUS was entitled to exercise its right as a consenting subsidiary proprietor (CSP) to vote for the collective sale.
He added: “The minority CSPs were duly noted of the NUS vote and execution of the collective sale agreement about six weeks before the application for approval was submitted to the Strata Titles Board.”
Futhermore, Gillman Heights was sold before property prices skyrocketed last year, so “it would not be appropriate for the Board or this court to assess good faith with regard to the sale price of the development through the lens of hindsight”.
Despite the setback, one minority owner - who declined to be named - said he is not giving up the fight.
“Many of us are still disappointed by the conflict of interest and we will stick it out till the end and take this case to the Court of Appeals.”
But Lee & Lee senior partner Quek Mong Hua, who represented the majority owners, said: “They have every right to appeal, but they have to consider if it is in their interest bearing in mind the cost.”
For now, Mr Quek said his clients were happy the judgement is out and they are hoping to complete the sale. - TODAY
Source : Channel NewsAsia - 25 Jun 2008
However, it was not the outcome hoped for by the 22 minority owners seeking to scupper the S$548 million deal.
The judge said the specific issue was not one concerning protection for the minority, but “whether a privatised HUDC estate can participate in the benefits of an en-bloc sale if the requisite conditions are met”.
Under current laws, a 90 per cent approval is required for estates less than 10 years old and 80 per cent for those older.
Some 87.5 per cent of the 608 unit owners had agreed to the sale of Gillman Heights, built in 1984.
On the issue of the estate’s age, which the plaintiffs claimed was less than 10 years old since the condo only underwent privatisation in 1995 and acquired the Temporary Occupation Permits or Certificates of Strata Completion (CSC) in 2002, the judge ruled that the estate was more than 10 years old.
He said that there was also no bad faith and breach of natural justice due to the involvement of the National University of Singapore (NUS), which held 46.86 per cent share at the development.
Five months after the en-bloc sale was inked in February last year, it emerged that NUS was also a shareholder of Gillman Heights’ purchaser Ankerite Pte Ltd.
While some owners claimed this was a conflict of interest, Justice Choo said NUS was entitled to exercise its right as a consenting subsidiary proprietor (CSP) to vote for the collective sale.
He added: “The minority CSPs were duly noted of the NUS vote and execution of the collective sale agreement about six weeks before the application for approval was submitted to the Strata Titles Board.”
Futhermore, Gillman Heights was sold before property prices skyrocketed last year, so “it would not be appropriate for the Board or this court to assess good faith with regard to the sale price of the development through the lens of hindsight”.
Despite the setback, one minority owner - who declined to be named - said he is not giving up the fight.
“Many of us are still disappointed by the conflict of interest and we will stick it out till the end and take this case to the Court of Appeals.”
But Lee & Lee senior partner Quek Mong Hua, who represented the majority owners, said: “They have every right to appeal, but they have to consider if it is in their interest bearing in mind the cost.”
For now, Mr Quek said his clients were happy the judgement is out and they are hoping to complete the sale. - TODAY
Source : Channel NewsAsia - 25 Jun 2008
Gillman en bloc sale to proceed
High rise tussle: Gillman Heights is set to be sold to CapitaLand, Hotel Properties and two private funds
Business Times - 26 Jun 2008
Judge says minority owners did not provide adequate reasons to stop sale
By MICHELLE QUAH
THE High Court has dismissed an appeal by minority owners of Gillman Heights Condominium to stop its en bloc sale.
This means that the $548 million sale of the development to CapitaLand, Hotel Properties and two private funds is set to go through.
Justice Choo Han Teck, in his judgment yesterday, said that he was 'satisfied' that the appeal by the minority owners 'must fail', as they did not provide adequate reasons as to why he should stop the sale.
The Strata Titles Board (STB) had approved the collective sale of the 607-unit, 99-year leasehold estate late last year. But a group of minority owners, represented by Senior Counsel Michael Hwang, had appealed that decision.
They argued that the STB had erred in approving the sale. They said that collective sale rules do not apply to Gillman Heights, which is an former HUDC estate. They also argued that insufficient notices were put up informing owners of the proposed sale and that the collective sale agreement - signed by the consenting owners - was not validly extended before the deal was brokered with the CapitaLand consortium.
Justice Choo ruled yesterday that the law does not mean to treat privatised HUDC estates differently from other private strata developments with a management corporation. He said that a privatised HUDC estate can participate in the benefits of an en bloc sale if the requisite conditions are met. He also agreed with the STB's ruling that sufficient notices had been posted and that the collective sale agreement had been validly extended.
The minorities had also argued that the sale was done in bad faith. They said that the National University of Singapore (NUS), which owns a sizeable chunk of Gillman Heights and had agreed to the en bloc sale, has a 15 per cent stake in Ankerite, the entity that purchased Gillman Heights.
Justice Choo noted yesterday that NUS's relationship with the buyer - which came to light after the STB approval - was not presented before the STB at the relevant time. 'A court deliberates only on the basis of the evidence before it,' he said. He said that it was strictly up to the STB to judge if there was an act of bad faith by reason of the relationship between NUS and Ankerite - but that he was not persuaded that the board should hear the issue again.
Justice Choo also agreed with the STB that there was no bad faith regarding the sale price of Gillman Heights, as it was $20 million above the reserve price.
The minorities had also argued that one of the STB board members, Michael Ng of Savills (Singapore), was a real estate valuation professional who had worked on projects involving the consenting owners' lawyers.
But Justice Choo said: 'I am of the view that it is too tenuous an objection. Professionals cannot avoid working on the same projects. It does not follow that they necessarily agree or have reasons to be biased or prejudiced against other professionals.'
Gillman Heights owners will get between $870,000 and $950,000 per unit in the en-bloc sale. But many of those objecting to the sale say that it is more important for them to be able to keep their homes.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved
Business Times - 26 Jun 2008
Judge says minority owners did not provide adequate reasons to stop sale
By MICHELLE QUAH
THE High Court has dismissed an appeal by minority owners of Gillman Heights Condominium to stop its en bloc sale.
This means that the $548 million sale of the development to CapitaLand, Hotel Properties and two private funds is set to go through.
Justice Choo Han Teck, in his judgment yesterday, said that he was 'satisfied' that the appeal by the minority owners 'must fail', as they did not provide adequate reasons as to why he should stop the sale.
The Strata Titles Board (STB) had approved the collective sale of the 607-unit, 99-year leasehold estate late last year. But a group of minority owners, represented by Senior Counsel Michael Hwang, had appealed that decision.
They argued that the STB had erred in approving the sale. They said that collective sale rules do not apply to Gillman Heights, which is an former HUDC estate. They also argued that insufficient notices were put up informing owners of the proposed sale and that the collective sale agreement - signed by the consenting owners - was not validly extended before the deal was brokered with the CapitaLand consortium.
Justice Choo ruled yesterday that the law does not mean to treat privatised HUDC estates differently from other private strata developments with a management corporation. He said that a privatised HUDC estate can participate in the benefits of an en bloc sale if the requisite conditions are met. He also agreed with the STB's ruling that sufficient notices had been posted and that the collective sale agreement had been validly extended.
The minorities had also argued that the sale was done in bad faith. They said that the National University of Singapore (NUS), which owns a sizeable chunk of Gillman Heights and had agreed to the en bloc sale, has a 15 per cent stake in Ankerite, the entity that purchased Gillman Heights.
Justice Choo noted yesterday that NUS's relationship with the buyer - which came to light after the STB approval - was not presented before the STB at the relevant time. 'A court deliberates only on the basis of the evidence before it,' he said. He said that it was strictly up to the STB to judge if there was an act of bad faith by reason of the relationship between NUS and Ankerite - but that he was not persuaded that the board should hear the issue again.
Justice Choo also agreed with the STB that there was no bad faith regarding the sale price of Gillman Heights, as it was $20 million above the reserve price.
The minorities had also argued that one of the STB board members, Michael Ng of Savills (Singapore), was a real estate valuation professional who had worked on projects involving the consenting owners' lawyers.
But Justice Choo said: 'I am of the view that it is too tenuous an objection. Professionals cannot avoid working on the same projects. It does not follow that they necessarily agree or have reasons to be biased or prejudiced against other professionals.'
Gillman Heights owners will get between $870,000 and $950,000 per unit in the en-bloc sale. But many of those objecting to the sale say that it is more important for them to be able to keep their homes.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved
Subscribe to:
Posts (Atom)