Tag Archives: Allgreen Properties

Property players, Temasek suffer paper losses of $1.1b

Posted on 15 Sep 2009 | Comments Off on Property players, Temasek suffer paper losses of $1.1b

PROPERTY tycoons and Temasek Holdings have taken the biggest battering from the Government’s introduction of measures designed to prevent future dramatic price swings in the residential property market.

The paper losses incurred by the eight biggest tycoons as a result of the raft of market-calming measures announced yesterday – City Developments’ (CDL) Mr Kwek Leng Beng included – amounted to nearly $700 million.

And Temasek Holdings suffered a total paper loss in share value of some $396 million, after the valuation of its stake in CapitaLand fell at a stroke by $267 million and that of Keppel Land by $129 million.

Together, the tycoons and Temasek Holdings had to brave a total paper loss of some $1.1 billion, as traders stampeded out of the market on news that the Government was going to stop allowing developers from absorbing interest payments on loans extended to buyers of flats that are still being built.

It is also barring interest-only mortgages for uncompleted housing projects, and is pushing for more sites to be sold.

Among the tycoons, Mr Kwek – whose family controls 49 per cent of giant developer CDL – saw the heftiest loss on paper.

With CDL plunging 84 cents or 7.6 per cent to $10.24, the paper loss worked out to $328 million. Continue reading →

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Bids for Dakota Crescent plot soar above expectations

Posted on 10 Sep 2009 | Comments Off on Bids for Dakota Crescent plot soar above expectations

UOL Group bid tops 12 others as developers vie for choice piece of land

The result of yesterday’s tender for a plum condo plot at Dakota Crescent shows just why the government recently raised the ‘definite possibility’ that it will restart confirmed list land sales from next year.

A total of 13 bids were received, reflecting developers’ voracious appetite for mass-market and mid-tier private housing land.

The top bid from UOL Group was above market expectations of about $420-450 per square foot per plot ratio (psf ppr) just a few days ago. UOL’s price yesterday was slightly more than $329 million or about $508 psf ppr – just 3 per cent shy of the $524 psf ppr that Ho Bee and NUTC Choice Homes paid during the peak in June 2007 for the plot next door on which they are developing Dakota Residences, which has achieved an average selling price of about $970-980 psf.

However, after taking into account changes in planning regulations since then, whereby planter boxes and bay windows are not exempted from gross floor area calculations, UOL’s bid yesterday is probably higher than the equivalent 2007 bid for the next-door plot, some market watchers say.

BT understands that UOL is gunning for a high proportion of smaller units in its proposed scheme, and thus push for a higher average selling price of about $1,000-1,050 psf. ‘They should be able to achieve this kind of psf price – so long as they keep the absolute price quantum within an affordable range,’ an industry observer said.

BT understands UOL’s breakeven cost will be about $920 psf. Continue reading →

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