Tag Archives: Developers

Credit Suisse says bid spread shows developers wary

Posted on 19 Sep 2009 | Comments Off on Credit Suisse says bid spread shows developers wary

SHARP differences in bid prices offered by developers in the latest Urban Redevelopment Authority tender for a residential-commercial site at Yio Chu Kang suggest that the Government’s recent measures to cool the housing market are starting to take effect, said financial services firm Credit Suisse.

The tender closed on Thursday, drawing a total of 12 bids – one short of the 13 bids for two previous sites on the Reserve List of the Government Land Sales programme.

Credit Suisse notes that other than Far East Organization, which submitted the top bid of $119.08 million or $376 per sq ft per plot ratio (psf/ppr), other developers were more subdued, putting in bids at $154-278 psf/ppr.

Far East’s bid was 35 per cent above the second highest bid of $278 psf/ppr put in by Centurion RE.

“Hence, we believe the Government’s measures to cool the residential market announced on Monday did have an impact: Developers are more wary and selective, given there would be more supply,” Credit Suisse said in a research note.

Other bidders include Frasers Centrepoint, Ho Bee, Sim Lian Land and Soilbuild.

Although Credit Suisse believes that developers will continued to bank land for mass market residential sites as the end demand remains strong, “potential Government supply may cap prices” as sites on the Confirmed List will be released in the first half of next year.

Source : Today Online – 19 Sep 2009

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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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