Tag Archives: One Shenton

Tycoon spends $70 million on Grange Infinite units

Indonesian magnate and philanthropist Tahir has acquired 12 units at the 36-storey Grange Infinite condominium in District 10 for more than $70 million, reported the media.

Brokered by Quillion Global, the sale comprises 11 four-bedroom apartments measuring between 2,560 sq ft and 2,700 sq ft each, and a 6,039 sq ft “junior penthouse” located on the 20th level of the freehold project. All the units were sold vacant.

Notably, the acquisition price translates to an average price of $2,050 psf for the apartments and around $1,950 psf for the penthouse.

Market watchers expect to see more bulk transaction of luxury condo units in Singapore since sellers are now more willing to negotiate and reduce their asking price.

In some cases, sellers could be fund management outfits looking to exit for various reasons. One of which could be the end of the fund life, or a move to divest their holdings in the residential market and focus on other investments, said a seasoned property consultant.

“On the other hand, developers of high-end residential projects would be more inclined to hold on to their prices for as long as they can,” he noted.

Tahir acquired the 12 units from Asia Dragon Fund (ADF), which is managed by ARA.

The transaction is reportedly being effected via the sales of shares in two overseas incorporated companies, of which one is holding the junior penthouse and the other, the 11 apartments.

Over the past few years, Tahir – who is the son-in-law of Indonesian tycoon Mochtar Riady – has ramped up his real estate holdings in Singapore, with his property portfolio including office buildings like 135 Cecil Street and ABI Plaza. He also has investments in residential units in prime projects such as St Regis Residences, One Shenton and Four Seasons Park.

Tahir is the founder and chairman of an Indonesia-based conglomerate Mayapada Group, which has interests in the banking, property, retail and healthcare businesses.

Singapore luxury property: A strong long term investment

The most costly landed properties in Singapore are on Sentosa Island.

Landed luxury properties are still hot and in demand due to scarcity of land in Singapore especially in prime areas. The costliest landed properties in Singapore are in Sentosa where sites are said to have exchanged hands for more than $2400 (US$1,95) psf. This is also because there is no restriction to foreign buyers purchasing land in Sentosa, which is not the case in the rest of Singapore. Foreign investors are also buying into the Singapore luxury segment as Asian countries introduce more measures to curb investment demand. China has been imposing the most measures to curb property prices and ever since we have been seeing more Chinese buying into luxury properties in Singapore in areas such as Marina Bay and Sentosa. However due to the Singapore government recently introducing new measures to stabilise the market, luxury real estate is seen as more of a longer term investment. With a strong economy, good rental yields and governance in place, Singapore is in an attractive location for foreign investors. Tourism is also increasing with more retail and hotel sectors thanks to Marina Bay Sands and Sentosa. With the Singapore economy continuing to grow and the inflow of foreigners into Singapore, the luxury segment is still a good buy.

Is the Singapore market cooling off?

Since the introduction of the new set of measures in January, sales volume has slowed slightly comparing to last year but prices have still been increasing at a healthy rate. The government’s intention is not to crash the market but to stabilise it. Prices of suburban properties (mass market) may correct about 5 per cent over the next year because of the large number of apartments in the pipeline. However the luxury segment will still hold well and climb up in price at a slow but healthy rate due to demand and supply. Expect the market response to remain positive due to the cheap credit environment and continued wealth increase because of the booming economy and wealth created from the en-bloc transaction from projects that are not priced too high.

The best opportunities and investment strategies in Singapore

With the near completion of Marina Bay Financial Centre, Ocean Financial Centre and Asia Square 1 and 2 will push up demand for residential properties in Marina Bay, such as Marina Bay Residences, Marina Bay Suites, The Sail and One Shenton. Prices have still not been realised yet in the Marina Bay area if you compare it with other luxury apartments outside the Bay area.

It would also be a good time to jump into industrial properties which have just started picking up in price and rental over  the past 2-3 months.  The active investment market for industrial properties in the first quarter is a good sign for demand in this sector.  However prime warehouse space is still more affordable than in Hong Kong and still a good opportunity if you’re looking into investing in Singapore. Industrial property that is still a good buy would be Pantech Business Hub (next to the port) and the Macpherson area.

Source : SEAPR – 8 Jun 2011