Category Archives: Developers

Annual value of properties reviewed regularly

Posted on 15 May 2013 | Comments Off on Annual value of properties reviewed regularly

In his commentary, “Court ruling creates uncertainty for developers” (May 10), Mr Colin Tan seemed to suggest that the Glengary case was the first time the Inland Revenue Authority of Singapore had taken action to reassess the annual value of land under development.

This is not the case. The annual value (AV) of any property, including vacant land under development, is reviewed regularly to reflect prevailing market values in any year. Hence, the AVs may go up or down accordingly.

Real estate developers would be fully aware that the AVs of their lands are assessed on a “vacant land” basis during the development period.

This is provided for in the Property Tax Act, and it has been our long-standing position to disregard pre-sales when determining the AV of such vacant land.

For this case, the developer disagreed with our position and brought the matter to court.

The Court of Appeal has affirmed our position. Hence, the decision would not have introduced more uncertainty into the business of property development nor affected developers’ land bids, as the writer alluded.

FROM
WALTER LIM, DIRECTOR (CORPORATE COMMUNICATIONS), INLAND REVENUE AUTHORITY OF SINGAPORE

Source : Today – 15 May 2013

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Posted in Developers, HDB, Tax Matters / Property Tax

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City Developments quarterly profit falls 12% to $137.6m

Posted on 14 May 2013 | Comments Off on City Developments quarterly profit falls 12% to $137.6m

City Developments, Singapore’s second-largest developer, said first-quarter profit fell 12% after a one-time gain wasn’t repeated.

Net income slid to $137.6 million in the three months ended March 31, from $156.8 million a year earlier, it said in Singapore exchange statement today. Sales fell 9.8% to $763.5 million.

“The main reason for the drop in revenue was due to the Tagore Avenue warehouse that was disposed-off in the first quarter of 2012,” the company said in the statement.

Singapore’s private residential property price index rose 0.6% in the three months ended March 31, the slowest pace in three quarters after government curbs. The latest measures in January, the seventh round of curbs in about four years, included an increase in the stamp duties for homebuyers by 5 percentaage points to 7 percentage points.

The company’s shares rose 0.9% to $11.60 today. The results were announced after the close of trade. The stock has declined 9.5% this year, the worst performer among 41 developers and REITs on the Singapore property index.

City Developments started marketing two new projects in the quarter, the 912-unit D’Nest condominium and Bartley Ridge, a 868-unit joint-venture development, the company said today. It had rented out 94% of the space in its office buildings as of March 31, compared with the national average occupancy of 90.8%, it said.

The developer, the biggest shareholder of Millennium & Copthorne Hotels Plc, said last month its South Korea unit bought a 1,564-square-meter (16,834-square-foot) site adjacent to its Millennium Seoul Hilton Hotel for a new hospitality property.

City Developments opened its 240-room W Singapore Sentosa Cove hotel on Oct. 20.

Source : Edge – 13 May 2013

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Posted in Developers, Funds

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