View Full Version : Developers under Pressure
Got this from BT. Expect to see some lelong very soon.
http://img687.imageshack.us/img687/4310/developersunderpressure.jpg
Interestingly, notice that those developer with low units of unsold apt have no worries as they have more than recoup their investment. Those that has high unsold units are those in CCR area. Why? I think they dont want to lower the price, just like seller dont want to lower their price.
Interestingly, notice that those developer with low units of unsold apt have no worries as they have more than recoup their investment. Those that has high unsold units are those in CCR area. Why? I think they dont want to lower the price, just like seller dont want to lower their price.
I am sure they can always sell it with guaranteed rental returns of say 5% say 5 years. That way they will be able to "discount" without lowering the price.
I am sure they can always sell it with guaranteed rental returns of say 5% say 5 years. That way they will be able to "discount" without lowering the price.
I think its time to give these developers a call and make them an offer.
Let me try one or two of them and see if can get some 10% discount or not.
Cool to have a unit in some of these developments.
DKSG
If CCR can get discount, definately worth investing cos
i believe if the market goes down... CCR will still have some
flooring limit as seen in previously
Published January 24, 2013
No U-turn as clock ticks for developers
Govt stands firm on sell-by deadline for projects with any foreign ownership
By Mindy Tan
[SINGAPORE] The authorities are standing firm on the rule that all units in
projects with any foreign ownership must be sold within two years of the
project receiving its temporary occupation permit (TOP), even as developers lobby the government to extend the timeframe.
Last year, the Real Estate Developers' Association of Singapore (Redas)
submitted a proposal to extend this two-year period.
According to the Ministry of Law, however, "the disposal period remains as
two years after the developer has achieved the Temporary Occupation Permit (TOP) or Certificate of Statutory Completion (CSC) for the project,
whichever is earlier".
The ministry has received 17 applications to extend the disposal period
since 2011, of which six developers have paid extension charges.
Projects with less than a year to move their units include Wheelock
Properties' Scotts Square which has 71 units unsold, Lafe Development's
Residences at Emerald Hill which has 21 units unsold, and Keppel Land's
Reflections at Keppel Bay, which has 243 units unsold as at December last
year.
SC Global Development's 66-unit The Marq on Paterson Hill, 241-unit
Hilltops, and 88-unit Martin No 38 too feature on the list.
That being said, the developer - the first to announce that it would have to pay $5.5 million in extension charges for The Marq - may potentially
sidestep some of these charges, following a successful privatisation bid by
chairman and chief executive Simon Cheong.
This is because under the Residential Property Act (RPA), the residential
projects of all developers, except those which are fully owned by Singapore
citizens, fall under Qualifying Certificate (QC) conditions, one of which is
that all units in a project must be sold within two years after the project
receives its TOP.
That Mr Cheong is now able to privatise the company means he can potentially
apply to the Singapore Land Authority (SLA) for an exemption.
"In general, if a foreign company becomes a Singapore company as defined
under the RPA, it can apply to SLA for a Clearance Certificate to purchase
residential properties henceforth," said the Ministry of Law.
"SLA will determine if the applicant company meets the requirements for a
Singapore company under the RPA. If an application is made, SLA will also
determine if the Qualifying Certificate(s) issued for the purchase of
residential land when the applicant was a foreign company would be
cancelled."
If units are not sold within the stipulated two-year period, foreign
developers have to fork out pro-rated extension charges based on the
proportion of unsold units, of 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 extension charges weigh heavy, particularly on the high-end market which
has been languishing with slow sales and prices that are still below their
peak.
This segment was dealt a fresh blow earlier this month, when the government announced the seventh round of cooling measures. Specifically, the additional buyers' stamp duty (ABSD) imposed on foreigners and non-individuals purchasing any residential property, will be raised from 10 per cent to 15 per cent.
"The higher ABSD would significantly impact buying interest for high-end
residential properties from foreigners and investors, who are the main
purchasers for this luxury class of homes," said Png Poh Soon, head of
research and consultancy at Knight Frank.
"As at end of Q4 2012, the proportion of foreign buyers (including PRs)
buying non-landed properties in the CCR is estimated at 37 per cent. This
proportion is expected to fall as many wealthy foreigners would be presented with alternative regions for property investment."
A report issued by OCBC Investment Research noted: "The increased ABSDs on foreigners and higher liquidity requirements for purchases will likely nip in the bud a burgeoning recovery in the high-end segment seen over H2 2012. We continue to forecast for high-end prices to dip 5-10 per cent over 2013."
Not all analysts agree however. CBRE executive director (residential) Joseph Tan noted that given that there is still a high level of liquidity in the system, property, both local and overseas, continues to be an attractive investment for investors.
"The luxury sector, having found a steady momentum in the past year, will
continue at a similar pace," he said.
While most projects will still have to comply with the QC terms, some
projects could potentially be granted a one-time extension on the project
completion period. Developers, specifically those who responded to the
government's call in 2008 and deferred the redevelopment of property
purchased through a collective sale and rented out the property to alleviate the rental housing supply crunch, could be be granted a one-time extension, commensurate with the period of tenancy.
According to the Ministry of Law, about 20 properties under qualifying
certificate holders could benefit from the extension. Projects which qualify
include City Developments' project on the former Lucky Tower site in Grange Road, and GuocoLand's Leedon Residence.
No charge will apply to extensions granted under the new rule which was
announced by SLA in December last year.
If CCR can get discount, definately worth investing cos
i believe if the market goes down... CCR will still have some
flooring limit as seen in previously
problem is the quantum is not cheap.. for example if u take verv at RV, developer gibbing close to 200k commission to agents and even with extra discount, the cost will still be in the range of 1.9mil for a 2bedder
problem is the quantum is not cheap.. for example if u take verv at RV, developer gibbing close to 200k commission to agents and even with extra discount, the cost will still be in the range of 1.9mil for a 2bedder
You mean agent sell a $1.9mil unit gets $200K commission ?
DKSG
problem is the quantum is not cheap.. for example if u take verv at RV, developer gibbing close to 200k commission to agents and even with extra discount, the cost will still be in the range of 1.9mil for a 2bedder
Agree, quantum is the main stumbling block.
For MM units or MM projects, almost all of these can find buyers regardless of pfs.
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