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Thread: Newton Imperial apartment units put up for bulk sale

  1. #1
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    Default Newton Imperial apartment units put up for bulk sale

    http://www.straitstimes.com/breaking...-sale-20140122

    A group of 21 apartment units at Newton Imperial in Newton Road has been put up for bulk sale, according to marketing agent Savills.

    Ten of the units are 1,938 sq ft each in size, while the rest are 1,711 sq ft each in size. All units come with their own private lift lobbies.

    While Savills did not indicate an asking price, the property firm said the other units sold in the 36-unit freehold development have fetched an average price of $1,850 per sq ft (psf).

    "Despite the current cooling measures in place... gross yields between 3.0 per cent to 3.25 per cent are still achievable for this project as a result of its attractive price point," said Mr Arun Sugumaran, senior manager of Savills Regional Capital Markets.

  2. #2
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    Default Developer offers bulk sale amid market blues

    http://www.straitstimes.com/archive/...blues-20140123

    Developer offers bulk sale amid market blues

    But lot price of Newton condo's 21 units 'beyond reach of most firms'

    Published on Jan 23, 2014


    Great Newton Properties, the developer of the 36-unit Newton Imperial condominium in Newton Road, is now trying to offload the remaining apartments in an investment deal. The freehold project in District 11 sits on the site of the former Surrey Towers. -- ST PHOTO: DESMOND FOO

    By Cheryl Ong

    THE developer of the Newton Imperial condominium has put 21 unsold units up for sale at a reduced price, in the hope that a single buyer will take the lot off its hands.

    The ambitious move comes amid a slowing property market beset by cautious buyers and tougher lending rules.

    The 36-unit condo in Newton Road has been caught in the downturn, with only 15 units sold since it was completed in 2011.

    Prices averaged $1,880 per sq ft (psf) in the second half of 2012, although a 1,711 sq ft unit was sold for $3 million, or $1,753 psf, in October last year. More than 90 per cent of the owners are foreigners.

    Newton Imperial comprises only three-bedroom units.

    The lack of buyer interest has forced Great Newton Properties, an Indian firm based in Hong Kong, to try offloading all 21 apartments at an undisclosed price.

    Analysts said that the move is a further sign of a weakening market, as developers look for alternative ways to shift units.

    "The persistent price falls, mainly for large, luxury apartments, have painted a pessimistic picture for the high-end residential market," said Mr Ong Kah Seng, director of consultancy R'ST Research.

    The freehold project in District 11 sits on the site of the former Surrey Towers, acquired by Great Newton Properties for $44.1 million in 2007.

    Mr Ong said that buying units in bulk in the current market is a riskier investment, as leasing interest in high-end residential properties has been weakening. However, large units tend to be well designed and could have better value in the long term, he added.

    Mr Arun Sugumaran, senior manager of Savills Regional Capital Markets, said the developer, which is controlled by Indian national Jhaveri Darsan Jitendra, decided to sell the units in bulk as property cooling measures have "slowed things down".

    He added that the units are "priced attractively", considering the Additional Buyers' Stamp Duty (ABSD) the buyer will have to bear.

    Buyers could reap a rental yield of 3 per cent to 3.25 per cent based on an estimated monthly rent of $8,000, estimated Mr Sugumaran, once ABSD costs are factored in.

    Savills said nearby projects, such as Wing Tai's L'Viv and Novelty Group's 26 Newton, have sold units for $2,100 psf to $2,600 psf, but SLP International research director Nicholas Mak noted that these are mostly smaller units.

    Mr Mak said the estimated rental yield suggests that the asking price for the 21 units will be from $65 million to $72 million, making a property fund the likely buyer, as few firms have pockets deep enough.

    "Property funds normally acquire units for capital appreciation. But they will have to hold them for at least four years to avoid the sellers' stamp duty and, if interest rates increase, that will affect holdings costs," he added.

    Experts said they do not expect more of such sales as these typically take place when the market is in a worse state than it is now.

    Said Mr Mak: "Some smaller developers might just want to exit the market, but the reason we are not seeing more of such sales is that there is still a mismatch between what the buyers are willing to pay and the asking prices."

    [email protected]

  3. #3
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    Quantum is king. Chop it up into 3 mm. Sell it at 1.2 mil a pop.

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    Quote Originally Posted by indomie View Post
    Quantum is king. Chop it up into 3 mm. Sell it at 1.2 mil a pop.

    as usual, another good suggestion.
    however there will be issues:
    1. existing buyers complain or even sue.
    2. more planning, drawing, approvals from ura, and then more construction ==> more cash needed
    developer probably just want to get out and rather give discounts.
    a distant relative bought to stay. apparently the furnishings are good.

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    Quote Originally Posted by lifeline View Post
    as usual, another good suggestion.
    however there will be issues:
    1. existing buyers complain or even sue.
    2. more planning, drawing, approvals from ura, and then more construction ==> more cash needed
    developer probably just want to get out and rather give discounts.
    a distant relative bought to stay. apparently the furnishings are good.
    A 1,711 sq ft unit was sold for $3 million. Just turn it into three 550 sq ft unit and sell it at $1.2 million. An extra of 600.000 justified the paper and renovation works. Some more the potential bulk buyer can nego the $3 million price tag down. There is still a lot of juice in this project if you get creative.

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    chopping up is most likely impossible , the layout will have already been optimized for the 3 bedders with large balcony , these guys are in a mess , newton is the area with the lowest rental yields so worse value to an investor , the new investor does not control the building given the other sales , so is stuck with low yield and huge stamp duty , better just buy reits which are now all trading at fat discount to book value , much higher yeild and no stamp duty or 4 year holding period , the developer here should just cut price to 1500 psf and he will sell them all if he does not do it now he will have to cut more later ...

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    anyone knows why developer built such big units?

    If MMs plus small units, much easier to sell

    Directly across the road is LVIV, >2000pfs, 1 plus 1 units and 2 roomers easily sold.

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    Quote Originally Posted by catsick View Post
    chopping up is most likely impossible , the layout will have already been optimized for the 3 bedders with large balcony , these guys are in a mess , newton is the area with the lowest rental yields so worse value to an investor , ..
    Newton lowest rental yields for the bigger units.

    Look at Newton Edge with MMs and small units in squarefoot research,
    very high rental pfs

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    Developer thought atas people from Indonesian/Chinese will bite but it is not upmarket enough for them.
    Quote Originally Posted by Singleton View Post
    anyone knows why developer built such big units?

    If MMs plus small units, much easier to sell

    Directly across the road is LVIV, >2000pfs, 1 plus 1 units and 2 roomers easily sold.

  10. #10
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    Can go for steamboat and peking duck next door.
    Quote Originally Posted by reporter2 View Post
    http://www.straitstimes.com/archive/...blues-20140123

    Developer offers bulk sale amid market blues

    But lot price of Newton condo's 21 units 'beyond reach of most firms'

    Published on Jan 23, 2014


    Great Newton Properties, the developer of the 36-unit Newton Imperial condominium in Newton Road, is now trying to offload the remaining apartments in an investment deal. The freehold project in District 11 sits on the site of the former Surrey Towers. -- ST PHOTO: DESMOND FOO

    By Cheryl Ong

    THE developer of the Newton Imperial condominium has put 21 unsold units up for sale at a reduced price, in the hope that a single buyer will take the lot off its hands.

    The ambitious move comes amid a slowing property market beset by cautious buyers and tougher lending rules.

    The 36-unit condo in Newton Road has been caught in the downturn, with only 15 units sold since it was completed in 2011.

    Prices averaged $1,880 per sq ft (psf) in the second half of 2012, although a 1,711 sq ft unit was sold for $3 million, or $1,753 psf, in October last year. More than 90 per cent of the owners are foreigners.

    Newton Imperial comprises only three-bedroom units.

    The lack of buyer interest has forced Great Newton Properties, an Indian firm based in Hong Kong, to try offloading all 21 apartments at an undisclosed price.

    Analysts said that the move is a further sign of a weakening market, as developers look for alternative ways to shift units.

    "The persistent price falls, mainly for large, luxury apartments, have painted a pessimistic picture for the high-end residential market," said Mr Ong Kah Seng, director of consultancy R'ST Research.

    The freehold project in District 11 sits on the site of the former Surrey Towers, acquired by Great Newton Properties for $44.1 million in 2007.

    Mr Ong said that buying units in bulk in the current market is a riskier investment, as leasing interest in high-end residential properties has been weakening. However, large units tend to be well designed and could have better value in the long term, he added.

    Mr Arun Sugumaran, senior manager of Savills Regional Capital Markets, said the developer, which is controlled by Indian national Jhaveri Darsan Jitendra, decided to sell the units in bulk as property cooling measures have "slowed things down".

    He added that the units are "priced attractively", considering the Additional Buyers' Stamp Duty (ABSD) the buyer will have to bear.

    Buyers could reap a rental yield of 3 per cent to 3.25 per cent based on an estimated monthly rent of $8,000, estimated Mr Sugumaran, once ABSD costs are factored in.

    Savills said nearby projects, such as Wing Tai's L'Viv and Novelty Group's 26 Newton, have sold units for $2,100 psf to $2,600 psf, but SLP International research director Nicholas Mak noted that these are mostly smaller units.

    Mr Mak said the estimated rental yield suggests that the asking price for the 21 units will be from $65 million to $72 million, making a property fund the likely buyer, as few firms have pockets deep enough.

    "Property funds normally acquire units for capital appreciation. But they will have to hold them for at least four years to avoid the sellers' stamp duty and, if interest rates increase, that will affect holdings costs," he added.

    Experts said they do not expect more of such sales as these typically take place when the market is in a worse state than it is now.

    Said Mr Mak: "Some smaller developers might just want to exit the market, but the reason we are not seeing more of such sales is that there is still a mismatch between what the buyers are willing to pay and the asking prices."

    [email protected]

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    Quote Originally Posted by DC33_2008 View Post
    Developer thought atas people from Indonesian/Chinese will bite but it is not upmarket enough for them.
    another interesting thing is that developer only marketed the project after project has been built.

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    Costly mistake. The developer should have consulted forumers here before starting the project.

  13. #13
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    26 Newton just to its right and L'VIV just opposite recent transactions,
    2400-2500pfs



    26 NEWTON NEWTON ROAD Apartment 11 CCR Freehold 1 $1,190,000 474sf Strata 11 to 15 2,513pfs
    26 NEWTON NEWTON ROAD Apartment 11 CCR Freehold 1 $1,190,000 474sf Strata 11 to 15 2,513pfs
    L'VIV NEWTON ROAD Apartment 11 CCR Freehold 1 $1,460,000 614sf Strata 26 to 30 2,380pfs

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    sales of 26 newton has also stalled

    Quote Originally Posted by Singleton View Post
    26 Newton just to its right and L'VIV just opposite recent transactions,
    2400-2500pfs



    26 NEWTON NEWTON ROAD Apartment 11 CCR Freehold 1 $1,190,000 474sf Strata 11 to 15 2,513pfs
    26 NEWTON NEWTON ROAD Apartment 11 CCR Freehold 1 $1,190,000 474sf Strata 11 to 15 2,513pfs
    L'VIV NEWTON ROAD Apartment 11 CCR Freehold 1 $1,460,000 614sf Strata 26 to 30 2,380pfs

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