Tag Archives: Keppel Land

Singapore developers’ tactics over ABSD could lead to intervention

Posted on 3 May 2012 | Comments Off on Singapore developers’ tactics over ABSD could lead to intervention

‘Marina Bay Suites’: developers, Cheung Kong, Hongkong and Keppel Land are offering ABSD returns to retailers.

In a move to surge Singapore’s property sales several developers are reimbursing the deterring additional buyer’s stamp duty (ABSD).

Imposed by the government in late 2011, ABSD was introduced to stifle Singapore’s residential property market.

Regulators’ eyebrows are now raised and may have to intervene in this new tactic deployed by developers to increase property sales, crippled by ABSD. Reimbursement of the stamp duty from developer to purchaser has caused concern over the possible distortion of property and loan values.

This latest strategy supersedes the common marketing gimmicks of furniture vouchers and discounts to defray ABSD.

A property consultant who did not wish to be named told Asia One: “The ABSD reimbursement is being made in this way so that it does not affect the pricing…which may upset their earlier buyers who did not get to enjoy the discount.”

He confirmed that a full reimbursement of the steepest ABSD rate of 10 per cent to foreigners purchasing residential property could amount to a significant discount that is not quantified in the Urban Redevelopment Authority’s (URA) records.

Wide scale returns of ABSD could sabotage the government’s policy to promote transparency in the market, according to industry assessors.

Sales caveats may not reflect the actual purchase price of the property as “discounts” are given only after a buyer has completed the transaction, in contrast to discounts which are accounted for into the reported transacted price.

In response to Business Times queries, the Ministry of National Development (MND) said: “As long as they do not distort prices, there is no need for the government to intervene against such business decisions and practices.

“We will therefore continue to monitor the market closely for now to ensure transparency.”

Developers, wholly or partially, reimbursing the ABSD include Cheung Kong (Holdings) Ltd, Far East Organisation, Allgreen Properties and Aspial Corporation’s World Class Land.

Projects involved range from high-end to mass-market developments. Cheung Kong, Hongkong Land and Keppel Land are jointly developing Marina Bay Suites in the Marina Bay area; Thomson Grand in Upper Thomson – a Cheung Kong project; an Allgreen project, Holland Residences in the Holland Road area.

Since the introduction of its reimbursement scheme in February, Cheung Kong has sold approximately 165 units at Thomson Grand; around ten per cent of sales were to foreigners. Units retailed between US$1,250-1,450 per square foot.

Marina Bay Suites’ management said: “more than 70 per cent of the units have been sold and we continue to sell our apartments through private previews and regional road shows, some of which were done in partnership with marketing agents.”

Keppel Land clarified that it does not offer ABSD reimbursements for its solo projects.

A spokesman from Property Enterprises Development (Singapore), Cheung Kong’s subsidiary said: “The reimbursement of ABSD will be payable to the purchasers upon the payment of the 20 per cent of the purchase price, the proof of the Certificate of Stamp Duty on the Agreement and the duly executed sales-and-purchase agreement.”

The Real Estate Developers’ Association of Singapore (REDAS) said: “it supports MND’s decision on fair and transparent practices which will enable homebuyers to make an informed decision.

In addition to price transparency the practice of ABSD reimbursement has raised concern over the distortion of loan value.

Ku Swee Yong, CEO of International Property Advisor said: “Buyers who take loans should declare the value of such incentives to the banks when they apply for the loan by giving the bankers the Offer to Purchase and all other side letters. Otherwise the loan-to-value ratios might exceed MAS’s limit.”

The Monetary Authority of Singapore (MAS) confirmed that when securing home loans, consumers should disclose to the bank any rebates or discounts received from the seller or any other party in the transaction. The bank will deduct any discount, rebate or any other benefit offered from the purchase price before calculating the loan amount, according to Asia One.

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Park Infinia at Wee Nam hits $2,180 psf

Posted on 11 Jun 2011 | Comments Off on Park Infinia at Wee Nam hits $2,180 psf

Prices at Park Infinia at Wee Nam hit an all time high of $2,180 psf last month. This is the second time prices at the three year old condominium along Lincoln Road have breached the $2,000 psf level. Before this, a 560 sq ft unit on the 30th floor was sold for $1.13 million ($2,019 psf) in April. The 486 unit condo was developed by Keppel Land and completed in 2008.

Across the road, at the 85-unit Miro by Far East Organization, prices at the freehold condo hit a peak of $2,300 psf last December, when a 2,917 sq ft unit on the 29th floor sold for $6.7 million. The latest transaction was for a 1,248 sq ft unit on the 23rd floor for $2.47 million ($1,980 psf), according to caveats lodged with URA Realis. Miro is targeted for completion in 2012.

Located next to Miro and directly across the street from Park Infinia is The Linc, a 51 unit boutique development, also by Keppel Land, completed in 2006. In May, a 1,292 sq ft unit on the 15th floor was sold for $1.82 million ($1,409 psf), near the high of $1,471 psf achieved when a 646 sq ft unit on the first floor was sold for $950,000 in March.

Anthony Liang, CEO of Liang Long Real Estate, says prices of condos in the Newton-Novena neighbourhood in prime District 11 could be rising in anticipation of City Developments Ltd’s upcoming launch of Buckley Classique along Buckley Road, just off Newton Road and near Lincoln Road. The upcoming 64-unit condo is a redevelopment of the former Buckley Mansion en bloc site and a bungalow sitting on a 71,812 sq ft freehold site. The bungalow belongs to the Kwek family of Hong Leong Group, and will be conserved and retrofitted into a clubhouse for the new condo. Buckley Classique is said to be a low-rise, high end condo with large units ranging from two-bedroom apartments of 1,098 sq ft to penthouses of up to 4,381 sq ft. Prices are said to start from $2.4 million for the two-bedroom apartments, $3 million for the three-bedroom units, and $4 million for the four-bedroom units.

Park Infinia stands out among developments in the Newton-Novena area as it is one of the largest condo projects sitting on one of the biggest freehold sites in prime District 11, notes Raymond Ho, a team director at ERA. It also has a wide range of facilities, including a swimming pool, tennis courts and a clubhouse. The development has a mix of one to four bedroom units as well as penthouses meas- uring 560 to 3,315 sq ft. The condo is popular with expatriate families as most units are three to four bedroom apartments.

Park Infinia is a few minutes’ drive to the Newton MRT and Novena MRT as well as to the Orchard Road shopping belt and the CBD. It is also near good schools such as Anglo Chinese School and St Joseph’s Institution Junior and therefore sought-after by Singapore- ans as well. In the vicinity are shopping malls such as United Square and Velocity@Novena Square, and the wet market and hawker centre along Cambridge Road.

For the period of May 10 to 16, there were two transactions at Park Infinia. On May 12, a 560 sq ft unit on the 28th floor was sold for $1.22 million ($2,180 psf), representing a 17.5% premium over the last transacted price of $1.038 million ($1,854 psf) in October 2010. The unit was sold for $858,159 ($1,533 psf) at the launch in 2007.

The other transaction was for a 1,001 sq ft unit on the seventh floor for $1.76 million ($1,758 psf). The unit had changed handsfor $1.53 million ($1,530 psf) in 2007 and$866,000 ($865 psf) in 2006.

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Source : TheEdge – 6 Jun 2011

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