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Daily Archives: 1 Oct 2009

From ‘fractions of condo’ to a new tack

Posted on 1 Oct 2009 | Comments Off

Primespace is now trying to sell 2 other properties by tender

A company which was marketing ’shares’ in condominium units just a few weeks back has adopted a new tack, and is now putting apartments up for tender.

Following a model similar to that of an unlisted property trust, Primespace Investments Pte Ltd initially promoted ‘fractional ownership’ in two studio apartments, one at One-North Residences and another at One Shenton.

As BT reported on Monday, the apartments would be bought and held by other private limited companies, and investors would pay for shares in those vehicles. This is an unusual way of selling residential property in Singapore.

Each of the vehicles’ share capital would be split into 15 lots. A lot in the company holding the One-North unit would cost US$62,000; a lot in that which owns the One Shenton unit would cost US$110,000.

Primespace has since revamped its website, which is no longer marketing ‘fractional ownership’ in condominium units. It is now trying to sell two other apartments through tender. This is again an uncommon sale method. Continue reading →

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Posted in Office / Retail / Industrial, Property Market / Real Estate

Tagged Fractional Ownership, One Shenton, One-North Residences, Primespace Investments

US home prices decline less than forecast

Posted on 1 Oct 2009 | Comments Off

Low borrowing costs and government tax credits help lift home sales this year

Home values in 20 US metropolitan areas declined less than forecast in the year ended in July, a sign the housing slump that led to the worst recession in seven decades is abating.

The S&P/Case-Shiller home-price index fell 13.3 per cent in July from a year earlier, the smallest drop in 17 months, the group said here on Tuesday.

Adjusted for seasonal variations, the gauge rose 1.2 per cent from the prior month. Foreclosure-driven price declines, low borrowing costs and government tax credits for first-time buyers have lifted home sales for much of this year, helping to slow the decline in prices. Stability in real-estate values and rising stock prices may help set the stage for a recovery in consumer spending that accounts for two thirds of the economy.

‘The firming of prices of the last few months should allow the beleaguered US consumer to take some heart that they are seeing some benefit from the end of the recession,’ David Semmens, an economist at Standard Chartered Bank in New York, said before the report. ‘We remain cautious in calling an end to the housing crisis as record levels of foreclosures still are coming onto the market.’ The index was forecast to fall 14.2 per cent, according to the median projection of 36 economists surveyed by Bloomberg News. Estimates ranged from declines of 12.5 per cent to 15 per cent. The measure fell 15.4 per cent in the 12 months ended in June. Continue reading →