Daily Archives: 22 Sep 2009

Steady sales at The Interlace condo despite ban on IAS

Posted on 22 Sep 2009 | Comments Off on Steady sales at The Interlace condo despite ban on IAS

THE government’s move to ban the interest absorption scheme (IAS) and the rowdy start of The Interlace development’s preview last Tuesday have done little to dampen sales of the CapitaLand and Hotel Properties project.

The Interlace: Of the 360 units released for sale, 233 units were sold by Sunday

Of the 360 units released for sale, 233 units or 65 per cent were sold as of Sunday.

‘We didn’t expect the scrapping of the IAS to affect us very much, because a very small percentage of buyers opt for it in general, about 5 to 7 per cent,’ said Patricia Chia, chief executive officer of CapitaLand Residential Singapore, at The Interlace’s sales briefing yesterday.

The Wharf Residence, CapitaLand’s other development, saw less than 5 per cent of buyers taking up the IAS. The scheme was abolished by the government last week as a precaution to prevent the overheating of the property market.

The Interlace is located at the former Gillman Heights site on Depot Road. The $1.4 billion project’s first-day preview saw 153 units being offered to former Gillman Heights residents.

The preview took a dramatic turn when a shouting session ensued, fuelled by former residents who had previously been unhappy about the en bloc deal, and claimed that a poor choice of units had been offered by the developer at the preview.

CapitaLand maintained, however, that a mix of units ranging from 800 square feet (sq ft) to 5,800 sq ft in size, facing the pool, sea and HortPark had been on offer. Continue reading →

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Whopping $5m subsale loss for St Regis unit

Posted on 22 Sep 2009 | Comments Off on Whopping $5m subsale loss for St Regis unit

A UNIT at St Regis Residences chalked up the biggest subsale loss in the first eight months of this year: a massive $5 million.

St Regis: The top loss-incurring unit, on the sixth floor, was sold in May for $7.98m. It had previously changed hands at almost $13m, at the market peak in July 2007.

But on the flip side, it was also a unit at the same 999-year leasehold development which raked in the biggest gain of $1.39 million. The fifth floor unit was transacted in July at $9.5 million – up from the $8.1 million original purchase price. The seller had bought the unit direct from the developer in June 2006.

The loss-incurring unit, on the sixth floor, was sold in May. The transacted price was $7.98 million, compared to the nearly $13 million at which the apartment previously changed hands in July 2007, during the peak of the luxury housing market.

Interestingly, the $7.98 million subsale price for the property in May is not far off the $8.16 million that the apartment had been originally sold by the project’s developer in June 2006.

Another St Regis apartment, this time on the 11th floor, was transacted at $7.8 million in June – $2.7 million lower than the $10.5 million the developer had sold the unit for in April 2007.

All three transactions were picked up in Savills Singapore’s analysis of URA Realis caveats as at Aug 28.

Overall, in percentage terms, the most profitable subsale transaction this year yielded a 103 per cent gain.

It involved the sale of a 34th level unit at Southbank, located at North Bridge Road, for $1.64 million ($1,250 per square foot). The transaction last month is nearly double the $807,600 or $615 psf that the developer sold the unit for in July 2006.

The largest percentage loss of 41 per cent accrued to the seller of a unit on the 55th level of The Sail @ Marina Bay. The unit sold for about $1.89 million or $1,600 psf in January – lower than the nearly $3.2 million or $2,700 psf it was previously transacted at in June 2007.

Source : Business Times – 22 Sep 2009

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Posted in Luxury Property, Property Market / Real Estate, Property Price

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