Junior
no effect on them or just because they don't even read the newspapers?Originally Posted by fiat500
EuHabitat was selling very well today. showroom was packed throughout in the pm,saw many cheques presented. there were many enthusiastic buyers,was wondering if the recent meltdown had no effect on them?
Perennial
This is the effect:EuHabitat was selling very well today. showroom was packed throughout in the pm,saw many cheques presented. there were many enthusiastic buyers,was wondering if the recent meltdown had no effect on them?
- stocks don't offer guaranteed yield. More likely they offer negative yield. Risk is higher now.
- property is often used as an inflation hedge with relatively low risk.
- government has re-iterated that they will continue to welcome foreigners (no change in policy for foreigners earning >8K per month)
- with 4-year seller's stamp duty, 60% down payment for 2nd mortgage and low interest rates, we're less likely to see rampant fire sale.
- CPF Ordinary wage ceiling is raised from 4.5k to 5k. Employees who earn more than 4.5k will have more money in CPF for buying property. At the same time, because employee needs to contribute 20% on $500 more, this means small cash flow for him. One way to get more cash is to buy property with CPF funds and get cash from rental.
Music of the night
Developers will rush like mad to launch projects now especially if land is acquired at high prices .... watch Dow @ 10k carefully for any sign of QE3
DAX's 25% crash is really getting on my nerve ... is a German bank about to go belly up
Ride at your own risk !!!
Global recession is coming....
Wa ma ma ma! My paper money is fast becoming banana money!!! (even though I don't keep so much in cash (just enough for liquidity & emergency) but still significant to see them dropping in value!)
I rather change the cash into hard assets like properties and stocks than keep the cash!
Global recession is coming....
All these idiots offering to buy at low prices from me! The buyers' agents are singing doomed day scenario citing crashing stock prices etc and they are like buddha and so kind-hearted to take over our baby (properties) from us to save us from destruction!
I told them them to go fly kite! I tell them: If you have a property that you are offering for that price, why not I be so kind-hearted and buy from them instead to save them from destruction?
Newbie
very safe to park money here? we're AAA battery, i mean AAA rating leh...
also this is an open market, right? little resitriction for hot money to come and go, except in illiquid investment like properties...
hot money when coming in, make us like cooking + eating curry...
like i said, lotsa noises... need a cool head and superb judgement... which of course I have la... just that its not found yet....
Bricks & Mortar
AAA..., super low interest rate, strong SGD..., how many countries in same boat..., very few...very safe to park money here? we're AAA battery, i mean AAA rating leh...
also this is an open market, right? little resitriction for hot money to come and go, except in illiquid investment like properties...
hot money when coming in, make us like cooking + eating curry...
Senior
Some mass market condos at very good sites are coming up soon. We might see buyers' hot interest when they are launched.
Bricks & Mortar
Next time u come across these toothless crocs, tell them u are Crocodile Dundee, waiting to skin them...if they have no bullet$
Senior
The biggest difference probably between SG and other countries is when economic is going downhill, SG properties are still selling like hot cakes and developers are pushing projects after projects at record prices and buyers are still packing the showflats! Amazing, isn't it? Even when figures all across the globe are showing red, Singaporeans are oblivious or ignorant! Hmmm... interesting to watch how long this trend, rally, whatever you call it, will persist!
Newbie
some got logic one la... not all, but some... so if you can spot them and have a chat with them, maybe you can understand why la....The biggest difference probably between SG and other countries is when economic is going downhill, SG properties are still selling like hot cakes and developers are pushing projects after projects at record prices and buyers are still packing the showflats! Amazing, isn't it? Even when figures all across the globe are showing red, Singaporeans are oblivious or ignorant! Hmmm... interesting to watch how long this trend, rally, whatever you call it, will persist!
i can give you a fictitious example... a very smart investor made tons of $$$ in the stock market recently and decided to diversified a little... so throw some few % into the prop market lor...
another a fictitious example...a couple supposed to get married 3 yrs ago, but because of soaring price, decided to wait... after big recession + 2-3 yrs, still no sound no image of the price going down... so give up la... just buy lo.... bo bian....
another a fictitious example... a recently retired couple, kids all grown up, HDB paid off, suddenly got big amount of $$$ and bank interest ma-chiam not enuff to catch up with price of kopi... so just put into prop lor... at least big amount become small monthly amount, easy to manage and long term preservation of wealth....
enough reason or not huh? the above are all totally made up by me hor... if similar to your case, its purely accidental...pai seh pai seh...
Newbie
To add on, many fictitious couples below 40 who bought their flats around 10 years back have more or less fully cashed their flats. They have enough to either buy another unit, rent out their HDB and service their loan. Or sell their HDB and do capital repayment. Either way, they feel quite safe.some got logic one la... not all, but some... so if you can spot them and have a chat with them, maybe you can understand why la....
i can give you a fictitious example... a very smart investor made tons of $$$ in the stock market recently and decided to diversified a little... so throw some few % into the prop market lor...
another a fictitious example...a couple supposed to get married 3 yrs ago, but because of soaring price, decided to wait... after big recession + 2-3 yrs, still no sound no image of the price going down... so give up la... just buy lo.... bo bian....
another a fictitious example... a recently retired couple, kids all grown up, HDB paid off, suddenly got big amount of $$$ and bank interest ma-chiam not enuff to catch up with price of kopi... so just put into prop lor... at least big amount become small monthly amount, easy to manage and long term preservation of wealth....
enough reason or not huh? the above are all totally made up by me hor... if similar to your case, its purely accidental...pai seh pai seh...
Some unfortunate fictitious young couples who own HDB also inherited another HDB due to parents died. So they had the dilemma to sell their parents' flat and either have to put inside to bank to gain huge interests or buy another property or go into the stock market now.
I sell Cheese Pie
Back in 2007....
BRAVO Building Construction group, which bought Tulip Garden and Pender Court a few months back, has now clinched Makeway View in the Newton area for $162.8 million through a collective sale.
The price works out to a land cost of $1,583 per square foot (psf) of potential gross floor area including an estimated $21.5 million development charge (DC).
The breakeven cost for a new project on the site will be about $2,100 psf, a Bravo spokeswoman said.
‘We’re planning about 70-80 loft apartments, with sizes ranging from 1,500 sq ft to 1,800 sq ft,’ she said. ‘The project, which could be about 23-24 storeys high, may be ready for launch around Q3 or Q4 next year.’
Makeway View is on a freehold site of 41,582 sq ft that is designated for residential use with a 2.8 plot ratio under Master Plan 2003.
Knight Frank brokered the sale through a private treaty after a tender that closed last month.
The deal is subject to approval by the Strata Titles Board.
The buyer is Makeway Residences Pte Ltd, which is related to Bravo Building Construction.
‘At the purchase price of $162.8 million, Makeway View owners will receive gross sale proceeds of about $3.7 million to $10.4 million per unit,’ Knight Frank said yesterday.
Makeway View’s existing 32 apartments and penthouses range in size from 1,442 sq ft to 5,307 sq ft.
Bravo’s spokeswoman also told BT the group plans to develop the freehold Pender Court site off West Coast Highway, which it bought in July, into 48 cluster terrace housing units.
‘We’re in discussions with an overseas fund which is keen on buying the entire development for about $180 million, or about $3.8 million per unit on average,’ she said. ‘Each house will come with a private pool.’
Bravo’s acquisition of Tulip Garden, also in July, was for $516 million or $1,018 psf per plot ratio. No DC is payable.
Bravo is a five-year-old property and construction outfit that has bought more than a dozen sites in Singapore since September last year, including Castle Court on Changi Road, Regent Court in Serangoon and Koon Seng House in the Still Road area.
I sell Cheese Pie
What happened next....
LOOKING for a silver lining when nothing looms but storm clouds may seem a futile exercise.
But recent events surrounding the failed collective sales of Tulip Garden and Makeway View to Bravo Building Construction may just be a ray of hope in an increasingly gloomy property market.
To be sure, when Bravo decided it could no longer proceed with the collective-sale deals, some considered it yet another in a series of ominous events signalling the end of 'irrational exuberance' in the property market here.
Another was the pullout of Kuwait Finance House from a deal to buy 97 units at Goodwood Residence.
But putting a positive spin on the failed deals, Bravo has actually helped the market by withdrawing almost 400 potential units from future supply. If the Bravo deal to acquire another en bloc site (Pender Court) falls through, the number of potential units removed from future supply could be closer to 500.
This may be less than 3 per cent of the 17,800 new units CB Richard Ellis estimates could be launched this year, but if more developers were to follow Bravo's move, enough potential units could be removed from the future market to mitigate a more serious oversupply situation - especially in the light of drastically falling sales; only 185 new private homes were sold in February.
Emergency exit
Any developer considering the emergency exit that Bravo took will have to ask itself - as Bravo probably did - whether it has the holding power to build and hang on to units until it is profitable to sell them.
Perhaps the pivotal number to emerge in the failed Tulip Garden deal is the $25.8 million figure representing the 5 per cent deposit on the $516 million transaction that Bravo will now forfeit.
While $25.8 million is no small sum to lose, it is probably less than what Bravo could have lost had it proceeded.
Based on a loan quantum of 60-70 per cent of the land price, the loan for the Tulip Garden project would have amounted to $310-$360 million.
While it is not unusual for a bank to extend loans to preferred developers at interest rates close to Sibor, an interest rate of 5 per cent per annum would have been more likely, considering the times. In which case the cost of the loan could have been between $15.5 million and $18 million for the first year alone. This, also allowing that banks still feel comfortable extending loans of over 50 per cent.
Another loan the developer would have had to take would have been for construction costs. And based on a cost of $400 psf, this would have amounted to about $200 million for the Tulip Garden project. The quantum a bank will lend a developer varies. Assuming Bravo were to have taken a 50 per cent loan, the cost of this would have been around $5 million for the first year based on a 5 per cent interest rate.
Bravo's interest payments for the first year could have totalled $20.5-$23 million.
Developers do not generally borrow more because they expect progress payments from the initial sale of units, which go into a project account, to cover some of the costs.
But falling sales volumes would have made it difficult for Bravo to depend on the project account to finance construction.
Lower selling prices would have been a concern too.
Breaking even
When the market was at its most bullish last year, Bravo had hoped to launch the new development on the Tulip Garden site at around $2,000 psf.
However, the US sub-prime crisis has taken its toll on the market, with neighbouring developments Duet and The Cornwall peaking at around $1,500 and $1,700 psf respectively last October.
It was estimated earlier that Bravo would have to sell all the new units at Tulip Garden for at least $1,500 psf just to break even.
Developers who are likely to be swayed by this line of reasoning to reconsider developing en bloc sites are more likely to be the smaller, newer players in the field.
Based on available data, an estimate by Savills Singapore puts the number of new units from en bloc sites bought by construction companies in 2007 at more than 800, excluding Tulip Garden and Makeway View.
If some of these potential units were to be removed from the future market, supply pressure would be eased.
It would, of course, be much simpler if the potential units from a large en bloc site like Gillman Heights or Tampines Court were removed from the market.
But this is unlikely as it has become almost a mantra that big developers have holding power, even if they are losing money at the same time.
I sell Cheese Pie
So.... in response to your query, I for one seriously believe some of them really do not read the newspapers or behave like ostriches
I sell Cheese Pie
Current status..... some folks will have to learn the hard way.....
No takers for Tulip Garden
Friday, Straits Times, 1 April 2011
TULIP Garden was aiming to be the third-biggest collective sale here, with a bumper reserve price of $650 million.
But a final deadline came and went yesterday with no developer signing on the dotted line for the 164-unit Farrer Road condominium. The owners will need to relaunch the tender if they hope to pull off a sale.
The reserve price, if achieved, would be the first collective sale of a freehold site of over $500 million in three years.
Launched in December, the tender for the 316,708 sq ft site closed on Jan 20. Three parties were said to have expressed interest but no bids were made.
Under rules on collective sales, however, 10 weeks is allowed after the tender closes for private treaties to be ironed out. Yesterday was the end of the period.
Mr Karamjit Singh, managing director of Credo Real Estate, the marketing agent for the development, last night confirmed that while the firm was in discussion with developers, no private treaty has been inked within the 10-week period. However, the firm is in negotiations to launch a second tender.
But all is not yet lost even if no deal has been struck.
While the initial tender has now lapsed after the 10 weeks, owners may launch a fresh tender within one year of obtaining the 80 per cent consensus required to mount a sale attempt.
The relaunch, however, has to be at the same reserve price. Tweaking the reserve price would mean having to obtain the 80 per cent support all over again.
Some residents The Straits Times spoke to are not overly concerned at the outcome despite the potential gains. Owners of the apartments, ranging from 1,700 sq ft to 3,400 sq ft, stood to get between $3.14 million and $5.45 million in gross proceeds, Credo earlier said.
Mr Tony Lum, who has been living at Tulip Garden for more than 20 years in a 1,700 sq ft apartment, said that even if no deal is made, he is confident the freehold site can still be sold later, especially with Farrer Road MRT station coming up.
'Now if you try to get a unit of the same size, it's going to be so expensive. I might be getting about $3 million in payout but it won't be as good as my unit. I'm not in a hurry to sell,' he added.
Another resident, however, said that she would be disappointed as she had already purchased another property.
Tulip Garden was actually sold en bloc for $516 million in July 2007, but the deal fell through when the buyers - a consortium led by developer Bravo Building Construction - backed out in 2008, citing trouble raising funds for the purchase.
Experts say the steep asking price might be putting developers off, especially in the light of January's property market cooling measures.
The large number of government land sale sites released - with a faster and fuss-free sales process - has also siphoned capital away from the en bloc market, they add.
Large sites also often come with hefty price tags. Developers may prefer a joint venture purchase so as to share the risk.
Mr Alwyn Low, director of Deans Realtors, said the high expectations of home owners have led to some unrealistic asking prices. However, he expects at least one collective sale of more than $500 million to go through this year.
'There is still buying interest from developers for larger en blocs, but it is a fine balance trying to match that with the expectations of sellers... Smaller en blocs are often more popular with boutique developers,' he added.
Ms Stella Hoh, head of investments at Jones Lang LaSalle, who is marketing the $1.7 billion collective sale of Pine Grove - the tender for which closes on April 19 - said the outcome of mega collective sales should not be painted with a broad brush. 'Each site has its own attributes and developers will evaluate based on their own criteria,' she said.
A quiet has also fallen on other tenders that have closed but are still in the 10-week period. These include Hawaii Tower, Holland Tower, Whitley Heights and Tanglin Shopping Centre.
Hawaii Tower's marketing agent CB Richard Ellis says that it is 'working with a few parties'.
The development in Meyer Road with a $700 million reserve price received no bids when its tender closed in January, but had four parties express interest.
Last edited by Geylang OKT; 21-08-11 at 06:56.
I sell Cheese Pie
Moral of story: The writing is already on the wall but some folks either do not grasp the situation or would not face reality.
The current high prices are fuelled by the speculative PRCs who cannot buy in their homeland due to China's restrictions. If these PRCs were to pull out in search of greener pastures... what do you think will happen next.
Also, due to Sporeans clamouring against the FT, the govt has resorted to populist actions and will impose restrictions on the S pass and EP type of FT. So rentals will also go down due to having many properties chasing far fewer FTs.
With the confirmed looming private property oversupply looming up, confirmed govt measures to ramp up building HDB flats and at a faster pace, confirmed govt measures to make HDB an increasing better option (salary cap up to 10k and 12k), confirmed govt measures to reduce the number of FT, confirmed rapidly deteriorating global economy, hmm....
one would really be a property lemming to continue to be bullish and buy at such inflated prices
Junior
Folks, don't listen to falsehoods. Yes, inflation is bad, but that doesn't mean you have to buy properties to hedge against it.
Ask yourself, which is worse,
(1) losing 4% of your hard earned money to inflation
(2) losing 30% of your hard earned money to developers, who price properties 30% too high.
I would lose 4% to inflation anytime.
Senior
Better to quote the sauces of your articles, including giving credits to the writer and date of the articles.
People nowadays can borrow to the max on credit cards or pawn their jewelleries. What is property loan at less than 1% interest to them? Owning a condo is a dream for many Singaporeans. It is a status symbol higher than owning a flashy car or branded items that depreciate.
I sell Cheese Pie
Back in 2007....
http://www.asiabuilders.com/asiabuil...try_code=conSG
02 November 07 | The Business Times
by Kalpana Rashiwala
BRAVO Building Construction group, which bought Tulip Garden and Pender Court a few months back, has now clinched Makeway View in the Newton area for $162.8 million through a collective sale.
The price works out to a land cost of $1,583 per square foot (psf) of potential gross floor area including an estimated $21.5 million development charge (DC).
The breakeven cost for a new project on the site will be about $2,100 psf, a Bravo spokeswoman said.
‘We’re planning about 70-80 loft apartments, with sizes ranging from 1,500 sq ft to 1,800 sq ft,’ she said. ‘The project, which could be about 23-24 storeys high, may be ready for launch around Q3 or Q4 next year.’
Makeway View is on a freehold site of 41,582 sq ft that is designated for residential use with a 2.8 plot ratio under Master Plan 2003.
Knight Frank brokered the sale through a private treaty after a tender that closed last month.
The deal is subject to approval by the Strata Titles Board.
The buyer is Makeway Residences Pte Ltd, which is related to Bravo Building Construction.
‘At the purchase price of $162.8 million, Makeway View owners will receive gross sale proceeds of about $3.7 million to $10.4 million per unit,’ Knight Frank said yesterday.
Makeway View’s existing 32 apartments and penthouses range in size from 1,442 sq ft to 5,307 sq ft.
Bravo’s spokeswoman also told BT the group plans to develop the freehold Pender Court site off West Coast Highway, which it bought in July, into 48 cluster terrace housing units.
‘We’re in discussions with an overseas fund which is keen on buying the entire development for about $180 million, or about $3.8 million per unit on average,’ she said. ‘Each house will come with a private pool.’
Bravo’s acquisition of Tulip Garden, also in July, was for $516 million or $1,018 psf per plot ratio. No DC is payable.
Bravo is a five-year-old property and construction outfit that has bought more than a dozen sites in Singapore since September last year, including Castle Court on Changi Road, Regent Court in Serangoon and Koon Seng House in the Still Road area.[/QUOTE]
Junior
sauces of your articles? man, did you even graduate from primary school?
I sell Cheese Pie
What happened next....
http://www.asiaone.com/Business/My%2...416-60128.html
Arthur Sim
Tue, Apr 15, 2008
The Business Times
LOOKING for a silver lining when nothing looms but storm clouds may seem a futile exercise.
But recent events surrounding the failed collective sales of Tulip Garden and Makeway View to Bravo Building Construction may just be a ray of hope in an increasingly gloomy property market.
To be sure, when Bravo decided it could no longer proceed with the collective-sale deals, some considered it yet another in a series of ominous events signalling the end of 'irrational exuberance' in the property market here.
Another was the pullout of Kuwait Finance House from a deal to buy 97 units at Goodwood Residence.
But putting a positive spin on the failed deals, Bravo has actually helped the market by withdrawing almost 400 potential units from future supply. If the Bravo deal to acquire another en bloc site (Pender Court) falls through, the number of potential units removed from future supply could be closer to 500.
This may be less than 3 per cent of the 17,800 new units CB Richard Ellis estimates could be launched this year, but if more developers were to follow Bravo's move, enough potential units could be removed from the future market to mitigate a more serious oversupply situation - especially in the light of drastically falling sales; only 185 new private homes were sold in February.
Emergency exit
Any developer considering the emergency exit that Bravo took will have to ask itself - as Bravo probably did - whether it has the holding power to build and hang on to units until it is profitable to sell them.
Perhaps the pivotal number to emerge in the failed Tulip Garden deal is the $25.8 million figure representing the 5 per cent deposit on the $516 million transaction that Bravo will now forfeit.
While $25.8 million is no small sum to lose, it is probably less than what Bravo could have lost had it proceeded.
Based on a loan quantum of 60-70 per cent of the land price, the loan for the Tulip Garden project would have amounted to $310-$360 million.
While it is not unusual for a bank to extend loans to preferred developers at interest rates close to Sibor, an interest rate of 5 per cent per annum would have been more likely, considering the times. In which case the cost of the loan could have been between $15.5 million and $18 million for the first year alone. This, also allowing that banks still feel comfortable extending loans of over 50 per cent.
Another loan the developer would have had to take would have been for construction costs. And based on a cost of $400 psf, this would have amounted to about $200 million for the Tulip Garden project. The quantum a bank will lend a developer varies. Assuming Bravo were to have taken a 50 per cent loan, the cost of this would have been around $5 million for the first year based on a 5 per cent interest rate.
Bravo's interest payments for the first year could have totalled $20.5-$23 million.
Developers do not generally borrow more because they expect progress payments from the initial sale of units, which go into a project account, to cover some of the costs.
But falling sales volumes would have made it difficult for Bravo to depend on the project account to finance construction.
Lower selling prices would have been a concern too.
Breaking even
When the market was at its most bullish last year, Bravo had hoped to launch the new development on the Tulip Garden site at around $2,000 psf.
However, the US sub-prime crisis has taken its toll on the market, with neighbouring developments Duet and The Cornwall peaking at around $1,500 and $1,700 psf respectively last October.
It was estimated earlier that Bravo would have to sell all the new units at Tulip Garden for at least $1,500 psf just to break even.
Developers who are likely to be swayed by this line of reasoning to reconsider developing en bloc sites are more likely to be the smaller, newer players in the field.
Based on available data, an estimate by Savills Singapore puts the number of new units from en bloc sites bought by construction companies in 2007 at more than 800, excluding Tulip Garden and Makeway View.
If some of these potential units were to be removed from the future market, supply pressure would be eased.
It would, of course, be much simpler if the potential units from a large en bloc site like Gillman Heights or Tampines Court were removed from the market.
But this is unlikely as it has become almost a mantra that big developers have holding power, even if they are losing money at the same time.
I sell Cheese Pie
Property lemmings die pain! pain!Moral of story: The writing is already on the wall but some folks either do not grasp the situation or would not face reality.
The current high prices are fuelled by the speculative PRCs who cannot buy in their homeland due to China's restrictions. If these PRCs were to pull out in search of greener pastures... what do you think will happen next.
Also, due to Sporeans clamouring against the FT, the govt has resorted to populist actions and will impose restrictions on the S pass and EP type of FT. So rentals will also go down due to having many properties chasing far fewer FTs.
With the confirmed looming private property oversupply looming up, confirmed govt measures to ramp up building HDB flats and at a faster pace, confirmed govt measures to make HDB an increasing better option (salary cap up to 10k and 12k), confirmed govt measures to reduce the number of FT, confirmed rapidly deteriorating global economy, hmm....
one would really be a property lemming to continue to be bullish and buy at such inflated prices
Senior
This is my style
You don't have to graduate from primary school here. You just take your PSLE, get the results and off you go to the secondary school here
I sell Cheese Pie
Done.... so you want spaghetti sauce or barbeque sauce to go with it?
Senior
I support you! When property crashes, I can grab another one FH landed cheaplyProperty lemmings die pain! pain!
I sell Cheese Pie
Ok! No $100psf No Buy!I support you! When property crashes, I can grab another one FH landed cheaply
Senior
Haha no need. There could be some property reporters in this forum who might had written the articles quoted. Just in case they make some noises here.Done.... so you want spaghetti sauce or barbeque sauce to go with it?
Junior
this is the same person that spelled "sought after" "sort after". He can't pronounce the word properly, and that explains why he can't spell it.Done.... so you want spaghetti sauce or barbeque sauce to go with it?
Singaporean pronounce "source" and "sauce" the same way, and now they spell them the same way too.
singapores pronounce "sort" and "sought" the same way, and now they spell them the same way too.
I think you guys better stick to your chinese.
Perennial
Following British pronunciation, the words you mentioned are homophones. Check http://dictionary.cambridge.org
It's the Americans who pronounce words wrongly and use the English language incorrect. E.g. coffee becomes cawfee, they use the word fortnightly interchangeably with the word bi-weekly, lie in the bed becomes lay on the bed
We study British English in school here, not American English.
Anyway, when I type Chinese, I sometimes choose the wrong word. But people in China still know what I mean. So, no need to be so anal.
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