CapitaLand officially launching Marine Parade condo

[reporter2]

http://www.straitstimes.com/business...-to-sell-units

CapitaLand calls for more time to sell units

Mar 14, 2017

With extended timeframe, market can find equilibrium and soft landing, says developer

Wong Siew Ying


Property developer CapitaLand said last week's tweaking of some property cooling measures demonstrates the Government's readiness to calibrate curbs according to market conditions.

The changes are incremental steps in the right direction, said CapitaLand Singapore chief executive Wen Khai Meng yesterday.

He also suggested that the Government consider extending the timeframe for developers to sell units under the additional buyer's stamp duty (ABSD) and qualifying certificate (QC) rules.

"My view is that the transaction volume has halved. So I think the Government should give developers a longer time to sell the units," Mr Wen said at a media preview of CapitaLand's upcoming launch of Marine Blue condominium.

New home sales have slowed markedly in recent years, after a raft of cooling measures. More than 7,000 units were sold in each of the last three years, down from nearly 15,000 units in 2013 and 22,000 units in 2012.

Developers have a five-year deadline to complete and sell all units under the ABSD rule, introduced in December 2011. Those with unsold stock after the deadline face penalties that could run into millions of dollars.

Meanwhile, the QC rules apply specifically to foreign developers, including Singapore developers listed here with foreign shareholders.

Under the rules, they must sell all units on private residential land within two years of obtaining the Temporary Occupation Permit, failing which the developer will have to pay extension charges, pro-rated to the proportion of unsold units.

Mr Wen suggested these deadlines be extended by two years.

He said: "I don't think it is in the interest of the Government to see any abrupt changes or instability in the market. By allowing a longer time to sell, the market could find its equilibrium and a soft landing."

He also hopes the definition of a foreign developer can be relooked.

So far, CapitaLand has paid $8.03 million in extension charges for The Interlace and $2.56 million for d'Leedon. But the charges are unlikely to have a major impact, as the two projects are substantially sold.

The developer is also confident of selling all units at the newly completed 124-unit Marine Blue in Marine Parade, set to be launched this weekend. It has already sold 38 units in a soft-launch last year.

The 86 units left include 52 one-bedroom plus study units, sized between 635 sq ft and 980 sq ft, which cost between $1.13 million and $1.39 million.

Prices for 27 loft suites, which span between 1,270 sq ft and 1,593 sq ft, start from $1.56 million.

Three penthouses, sized between 3,025 sq ft and 3,261 sq ft, cost at least $4.11 million.

The freehold project also has four large strata homes with pool terraces, sized between 3,670 sq ft and 3,993 sq ft, and priced between $4.87 million and $5.24 million.

The average price at the project - located near the upcoming Marine Parade MRT station - works out to slightly more than $1,700 psf.

[reporter2]

http://www.businesstimes.com.sg/real...e-parade-condo

CapitaLand officially launching Marine Parade condo

Tuesday, March 14, 2017

by Claudia Chong
[email protected]


CAPITALAND is officially launching a residential project in Marine Parade this Saturday at an average of S$1,700 per sq ft (psf), more than two years after its soft launch in January 2015. A total of 38 units have been sold as of last month.

The official launch of the 124-unit Marine Blue comes after the government's move last Friday to ease property market cooling measures that have been in place since 2013.

Under the revisions, each tier of the seller's stamp duty (SSD) will be lowered by four percentage points and the holding period shortened.

In addition, the Total Debt Servicing Ratio (TDSR) will no longer apply to mortgage equity withdrawal loans with loan-to-value ratios of 50 per cent and below.

CapitaLand chief executive Wen Khai Meng said on Monday that the freehold project's pricing has remained unchanged from its soft launch. The developer says it will absorb maintenance fees for the first two years. Maintenance fees start from S$700 per month, depending on unit type.

Most units in Marine Blue come with a view of the sea. One-bedroom units range from 635 to 980 sq ft and are priced from S$1.13 million to S$1.39 million. Loft suites, which range from 1,270 to 1,593 sq ft are priced from S$1.56 million to S$1.67 million.

Penthouse units are from 3,025 to 3,261 sq ft and priced from S$4.11 million to S$4.47 million. Pool terraces, which have three bedrooms and a private pool, range from 3,670 to 3,993 sq ft and are priced from S$4.87 million to S$5.24 million.

The remaining 86 units for sale comprise 52 one-bedroom units, 27 loft suites, three penthouses and four pool terraces.

On the timing of the official launch, Mr Wen said: "The main consideration that we had was for this project to be completed first, because we think that the completed product will give a better representation to buyers of its attractiveness." He added that show units were located off-site in Bedok South.

Marine Blue received its temporary occupation permit (TOP) in October last year. Under Qualifying Certificate (QC) rules, CapitaLand is due to sell all units by October 2018.

The government also announced last Friday a new stamp duty - the Additional Conveyance Duties - aimed at residential property transactions done through the transfer of shares in property-holding entities.

On the slight easing of property cooling measures, Mr Wen said that while the impact will be marginal, it was a step in the right direction. He said the government's next approach should be to relook the timeframe for Additional Buyer's Stamp Duty (ABSD) and QC, and extend the deadlines by perhaps two years.

"When you look at the recent transaction volume for the last two years, it's down to about 7,000 to 8,000 transactions. Three to four years ago it was 14,000 to 15,000." Giving developers a longer time to sell units would allow the market to find its equilibrium, he said.

Savills senior director of research Alan Cheong, who was also present at the media briefing, expects new sales transactions to be comparable to last year's figure of 7,972, and for resales to go up by 5 to 10 per cent.