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Thread: Nassim condo turns in surprisingly good sales

  1. #1
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    Default Nassim condo turns in surprisingly good sales

    http://www.straitstimes.com/Money/St...ry_241703.html

    May 28, 2008

    $10M OR MORE FOR EACH UNIT

    Nassim condo turns in surprisingly good sales


    A LUXURY condominium in the posh Nassim area has turned in surprisingly good preview sales, even as property analysts are predicting a sharp slowdown in the high-end home segment.

    Buyers have taken up 38 units at Nassim Park Residences, forking out a whopping $10 million or more for each apartment, sources said.

    The 100-unit development, which United Overseas Land (UOL) is building on the former Nassim Park site in Nassim Road, is understood to be priced upwards of $3,000 per sq ft (psf).

    The project consists of only four-bedroom and penthouse apartments. Each of the four-bedders is believed to be at least 3,000 sq ft in size, while the penthouses are between 6,000 sq ft and 7,000 sq ft.

    UOL declined to comment on the figures yesterday, but sources said the developer might not release some of the units and instead keep them for its own use.

    Nassim Park Residences is the first major luxury development to be released for sale this year. Most other launches, especially large, high-end ones, have been held back as developers wait out the market gloom.

    Elsewhere, some smaller projects have also seen brisk sales after discounts were offered. Over the Vesak Day weekend, Macly Group sold 60 per cent of the 102-unit Vutton in Novena at a 10 per cent discount off list prices, or about $1,100 psf to $1,400 psf.

    FIONA CHAN

  2. #2
    Junior
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    Default Re: Nassim condo turns in surprisingly good sales

    Quote Originally Posted by mr funny
    Buyers have taken up 38 units at Nassim Park Residences, forking out a whopping $10 million or more for each apartment, sources said.

  3. #3
    mike
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    Default Re: Nassim condo turns in surprisingly good sales

    Quote Originally Posted by jlrx
    I am not surprise if these buyers are actually previous enbloc sellers who are offered by the developers the units on the basis of contra.

    And as such the developers just call them buyers to spruce up market sentiments.

    I guess we have to be extremely careful about this. Buy with an open eye not just believe all the hype.

  4. #4
    kitty
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    Default Re: Nassim condo turns in surprisingly good sales

    Wee is not like Kwek, nor is UOL like other developers.

    Property is also not Wee's main business.

    I have never seen the Wees talk up property before. In fact they are more cautious than others.

  5. #5
    Junior
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    Default Re: Nassim condo turns in surprisingly good sales

    Quote Originally Posted by mike
    I am not surprise if these buyers are actually previous enbloc sellers who are offered by the developers the units on the basis of contra.

    And as such the developers just call them buyers to spruce up market sentiments.

    I guess we have to be extremely careful about this. Buy with an open eye not just believe all the hype.
    But UOL paid $380 million for the whole of Nassim Park (name of the previous en bloc development) and each of the previous en bloc owners only got about $3.7 million ($380 million divided by 104 owners).

    They must cough up another $6.3 million each to buy a unit worth $10 million in the new development.

    I suspect that the new buyers are not the old owners. Each time there is an en bloc, the old owners find it very hard to buy back the property in the same location. After my own en bloc, I got "chased out" of a prime district into suburban areas.

    The new development that is being built on my previous en-blocked condo is now being "offered" to me at 2.5 times the money I collected from my en bloc for a similar-sized unit!

    I'm wondering who are these people who can afford to splurge $10 million for a Nassim Park condo unit. They must be extremely well-heeled.

    Wow! This UOL is sitting on lots of profits. They sold 38 units at $10 million each and collected $380 million. That's exactly equal to the entire amount they paid for the entire Nassim Park en bloc site!

    They've already recovered their land costs. No wonder they can afford to "not release some of the units and instead keep them for its own use."

    UOL has another 62 units not released yet. So that's worth $620 million dollars. What is their construction costs? Hmmm ... maybe let's say $400 psf since this is upmarket condo, multiply by 100 units at average of 3000 sf. That's $120 million of construction costs.

    Wow! That's still $500 million of profits!

    I also want to be a developer.

    The Straits Times

    31 August 2006

    UOL buys Nassim Park for $380m

    UNITED Overseas Land (UOL) has bagged the prime Nassim Park site for a whopping $380 million, making the Nassim Road property one of the most expensive collective sale deals ever.

    The record is held by the 99-year leasehold Waterfront View in Bedok, which was bought by Far East Organization and Frasers Centrepoint for $385 million in May. For freehold properties, Lucky Tower in Grange Road takes top spot. It cost City Developments $383 million earlier this year.
    Nassim Park’s price tag works out to about $1,107 per sq ft (psf) of potential gross floor area for the freehold site, which has a land area of 245,135 sq ft and a plot ratio of 1.4.

    Each of the estate’s 104 owners will receive a premium of 70 per cent to 80 per cent over what their units would have fetched individually on the market. A flat of about 1,300 sq ft would fetch $2.2 million to $2.3 million. Savills Singapore handled the sale.

    A new four-storey luxury development of about 130 units at 2,500 sq ft each can be built on the site, with an estimated breakeven price of between $1,700 psf and $1,800 psf, property consultants said.
    UOL will also have to fork out at least $8 million in development charges for the plot, the first it has bought in a prime area in recent years.

  6. #6
    Unregistered123
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    I wonner hor, next time when enbloc again, they get $20m each or not. I tought also hor, enbloc is urban renewal, more flats, smaller floor area on same land. This one arh, buck the trend leh, so many big, big units. How come arh? I macam very confused laio.

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    Junior
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    Quote Originally Posted by Unregistered123
    I wonner hor, next time when enbloc again, they get $20m each or not. I tought also hor, enbloc is urban renewal, more flats, smaller floor area on same land. This one arh, buck the trend leh, so many big, big units. How come arh? I macam very confused laio.
    The developers themselves are also very confused.

    Developers have to follow the market trend. Last time the trend was like what you say "more flats, smaller floor area on same land". The reasoning was not so much for "urban renewal" (developers don't care about these things) but rather, the smaller the unit, the more affordable and therefore the easier to sell.

    Later, however, developers found the worldwide trend to be that the rich gets richer while the poor gets poorer.

    Hence it is easier to sell a $10 M condo to a person who earns $100 M per year than to sell a $1 M condo to a person who earns only $100 k per year.

    The brisk sale of Nassim Park Residences seems to support this hypothesis.

    So from "Chop! Chop! Chop!" into smaller and smaller units, they now "Fuse! Fuse! Fuse!" into bigger and bigger units.

    The more expensive the condo, the more affordable it becomes.

    Ironic, isn't it?

    I also face the same situation in my own business. The more I raise the price, the more affordable it becomes.

  8. #8
    Unregistered123
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    No leh, gahmen said urban renewal leh. Gahmen said land no enough leh. Oh no, next time hor, they enbloc these expensive ones, and build more expensive more bigger flats, we poor things go where har?

  9. #9
    Junior
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    Quote Originally Posted by Unregistered123
    No leh, gahmen said urban renewal leh. Gahmen said land no enough leh. Oh no, next time hor, they enbloc these expensive ones, and build more expensive more bigger flats, we poor things go where har?
    That's the trend now. Just look at Hong Kong.

    For example, the Paterson Towers en bloc had 72 owners each collecting $3.7 million. The new development now known as The Marq on Paterson Hill has only 66 units priced between $12 million to $30 million each.

    Actually, if a person were to stay in a house that is proportionate to his/her wealth, then I would say that currently Singapore's ultra-wealthy are staying in houses that are too small relative to that of the common man.

    For example, Tycoon Kwek Leng Beng is worth USD 5 billion while an average Singaporean has a networth of maybe USD 500 k. So Kwek Leng Beng is 10,000 times as rich as an average Singaporean. So proportionately, Kwek Leng Beng should be staying in a house worth 10,000 times that of an average Singaporean.

    Hence if an average Singaporean stays in an HDB 4-room flat worth $250,000, then Kwek should be staying in a house worth $2.5 billion. At a price of $4,000 psf for a high-end condo, then Kwek's "condo" should have a floor area of 625,000 sf. That's about 208 units of 3,000 sf condo, or two Nassim Park Residences.

    You may find it funny that a family of a few people stay in an entire condo, but look at the cases below.

    The Straits Times

    July 29, 2007


    Home for family of three is entire 11-storey condo

    By Lee Su Shyan

    EVEN for the ultra rich, condo living still means having to share facilities like pools and tennis courts with neighbours. Unless you're billionaire Peter Lim, that is.

    Mr Lim, his wife Cherie and his 85-year-old mother have an entire 11-storey condo - and pool - at Ardmore Park to themselves. No noisy neighbours, no barking dogs, no learner trumpeters practising in the apartment next door.



    Billionaire Peter Lim (above) has no plans to sell his condo and move into a landed property because it feels more secure to live in an apartment.




    The land and building now worth as much as $100 million, going by recent sale prices. -- ST PHOTO: LIM WUI LIANG
    Business Times - 03 May 2008

    World's first US$2b home rising in Mumbai

    400,000-sq-ft marvel across 27 storeys for tycoon's family of 5


    (MUMBAI) A 27-storey sea-facing skyscraper coming up in downtown Mumbai will soon be home to a family of five. With a price tag nearing US$2 billion, it will be the world's largest and most expensive home - ever.

    The proud owner of this property, which will be ready by January next year, is Mukesh Ambani, head of Mumbai-based petrochemical giant Reliance Industries and the fifth richest man in the world.



  10. #10
    Unregistered123
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    Of course no problem lah, if land plenty, plenty. Billion hairs and million hairs can live in homes gold plated mah, that way, can cost billions, millions oso, can flaunt wealthy. Poor silling things got flats enbloc and go nowhere.

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