Tag Archives: Cushman & Wakefield

High-end homes may see build-up in sales

Posted on 19 May 2011 | Comments Off on High-end homes may see build-up in sales

Demand in luxury homes seems to be creeping back, if last month’s new private home sales figures and reports of a fresh jaw-dropping record sale price are anything to go by.

A four-bedroom unit at SC Global’s The Marq on Paterson Hill recently sold at $17.5m, a record-breaking $5,842 psf – surpassing the previous high of $5,600 psf at The Orchard Residences in October 2007.

A total of 15 non-landed homes priced at $3,000 psf and above were sold in April – the highest number since December, when more than 60 units of Robinson Suites were sold in this price range, Savills said.

These included properties in Scotts Square, Alba, The Orange Grove and Tomlinson Heights.

Market experts say these sales might provide early signs of a comeback by high-end homes, where prices have struggled to recover to levels recorded during the boom in 2007.

The high-end segment must be monitored closely for the next few months before any trend can be firmly established, they add.

Kim Eng said in an analyst report that only three ultra-luxury projects – The Ritz-Carlton Residences, The Orchard Residences and The Marq on Paterson Hill – have achieved unit prices of more than $5,000 psf.

‘The latest above $5,000 psf transaction will certainly get the attention of high-end developers that are currently holding back on new project launches,’ the report added.

‘It might well be the tip of the iceberg, as we could see more sales breaking above the $5,000 psf mark.’

Cushman & Wakefield Singapore vice-chairman Donald Han noted that while he is confident that the high-end segment will do ‘fairly well’ for the rest of the year, not all projects can expect to set new benchmark prices.

The record price is likely an exception and limited to certain units and specific developments, he added.

‘But Singapore continues to be a sweet spot for investors with its robust economy and political stability… These factors look good to foreigners who contribute to the high-end activity here, making up 60 to 65 per cent of the segment above $3,000 psf,’ he added.

Experts also noted that some of the posh apartments sold last month – such as at Nassim Park Residences, The Orchard Residences and The Orange Grove – are already completed.

This could have encouraged sales since buyers of expensive apartments might prefer seeing the finished product before making a purchase decision.

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Posted in Luxury Property, Property Market / Real Estate

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Resale options for ageing condos

Posted on 17 May 2011 | Comments Off on Resale options for ageing condos

For private property owners, the 60-year mark is considered a major milestone — they could either watch their properties depreciate in value or opt for a collective sale.

Although banks are generally reluctant to lend to owners of older properties, things are not as bad as they seem since there are still some banks that are flexible with mortgages on older properties, and there is the Central Provident Fund (CPF) that can accommodate purchasers eyeing mature properties.

Last month, the plight of owners of ageing properties made the headlines, as the Singapore Land Authority (SLA) rejected the application of The Arcadia condo for a lease top-up despite obtaining 100 percent support from the owners.

SLA’s decision has also turned the spotlight on other ageing condos like Lutheran Towers, One Tree Hill Mansions and Hollandswood Court.

Meanwhile, The Peace Centre and Peace Mansions complex, which has 58 years left in its lease period, has been released into the en bloc sale market, but other properties like Hillcrest Arcadia have resisted that option.

While collective sales became the main option for owners to unlock their home value, experts said there are other ways to curtail the value of homes.

Mr. Ong Kah Seng, Senior Manager of Asia-Pacific Research at Cushman & Wakefield, said owners who want to preserve their home should keep it in good condition, especially when it has historic features that boost its value and make it good for preservation.

He noted that there are still other options to resale the property even if a lease top-up request is denied, just make sure the property is well maintained and the amenities and infrastructure are well enhanced.

“Owners of some aged prime developments may be able to expect better buying interest from purchasers who are cash-rich and do not require home loans,” he said.

Mr. Colin Tan, Research and Consultancy Director at Chesterton Suntec International, said owner-occupiers are typically less concerned about leases.

“When the green movement gets stronger, we might also see fewer en blocs. Instead of tearing down older buildings, which is blatant wastage, they can be refurbished like in other countries,” he said.

In an interview with The Straits Times, Mr. Tan said that banks can also help out. Despite their reluctance to fund older properties, some factors like the borrower’s profile, tenor of the loan and the property’s location are also taken into consideration.

Ms. Lui Su Kian, Managing Director and Head of Deposits and Secured Lending at DBS, said that while most banks do not finance homes with less than 30 years left on the leasehold period, applications are reviewed on a case-by-case basis.

Source : PropertyGuru – 16 May 2011

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Posted in En-bloc / Collective Sales, Property Market / Real Estate

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