Tag Archives: Frasers Centrepoint

Property players vanishing from market

With hardly any new projects or land bids in recent years, some developers have disappeared from the scene due to financial woes and tougher competition, media reports revealed.

These boutique developers, such as Raffles Medical Group’s Esquire Land and Indonesia-oriented Sinarmas Land, were active in the 1980s and 90s, when freehold land costs less than $100 million and profit margins exceeded 20 percent, said Chesterton Singapore’s Managing Director Donald Han.

Another example is Waterbank Properties, former transport group DelGro Corp’s property division, which left the property industry in September 1998.

On the other hand, some property players are only active when the market hits rock-bottom, such as Ho Bee Land and Lippo Group. “These are the early movers who read the market well, tend to take risks and generate the highest returns,” Han explained. “When the market nears its peak, these developers and consortiums then drop off, and are replaced by the more gung-ho ones.”

NTUC Choice Homes went into a hiatus after it submitted a losing bid of $97.4 million for an HDB housing site at Pasir Ris Central in May 2011.

“In the past few years, land prices in Singapore have not moderated much,” said its spokesman. As a result, opportunities to develop affordable and quality houses were scarce.

Since its founding in 1995, the company has built 15 projects with 6,944 units, including the Dakota Residences and Trevista. Its new development, the 315-unit Belysa is expected to be completed by October.

Nevertheless, NTUC Choice Homes has a moderate risk profile, meaning it could start acquiring landbanks when prices fall, noted Han.

In contrast, some developers are active all year round such as CapitaLand, UOL Group, Keppel Land, Singapore Land, City Developments, Frasers Centrepoint and Far East Organization.

Ku Swee Yong, Chief Executive at Century 21, added, “Some developers who are listed must show a steady flow of projects, otherwise there will be certain quarters when they report revenue plunges or zero profits.”

Source : PropertyGuru

Twin Fountains’ $1.64m penthouses sold out

The Twin Fountains executive condominium (EC) in Woodlands has seen strong interest from buyers, with the only two available penthouses sold for S$1.64 million each. Aside from both units which are vast – measuring 2,207 sq ft, 104 dual-key units were also snapped up, The Straits Times reported.

Jointly developed by Frasers Centrepoint and Lum Chang, the development comprises 418 units of which 289 were sold as of Saturday. Buyers showed keen interest for the four-bedroom, dual-key units priced at around S$1.13 million to S$1.25 million.

According to the report, the dual-key units at Twin Fountains were exempt from January’s new regulations which limits the sale of such homes to multi-generational families, hence the strong response.

Location may have also been another key selling point, with the upcoming Woodlands South MRT station and Woodlands Regional Centre expected to boost the value of homes in the project.

Meanwhile, first-time buyers accounted for 39 percent of the applicants, while the remainder were HDB upgraders.

“It is extremely encouraging to see that nearly 70 percent of the units have been booked on the first day of our launch,” said Cheang Kok Kheong, Chief Executive at Frasers Centrepoint Homes.

Twin Fountains is the first EC launched for sale this year. It is set to obtain TOP by October 2016.
Source : GURU – 13 May 2013