Tag Archives: Singapore Real Estate

8,000 new private homes estimated in H2

Posted on 7 Jul 2012 | Comments Off on 8,000 new private homes estimated in H2

Property developers will launch some 8,000 new private homes over the next six months, according to analysts’ estimates.

While there are small risks of oversupply in the horizon, market watchers told Channel NewsAsia that private property prices should remain stable this year.

A consortium comprising Hong Leong Group, City Developments and TID Residential won the tender for the site at Mount Vernon in January this year which is expected to yield more than 700 private home units.

It is one of the 15 residential land parcels that were successfully tendered out by the government last year which have yet to be launched.

Ooi Yi Tung, director of Square Foot Research, said: “In (the) first half, there were at least about 9,000 to 10,000 units launched. But for the second half, we are expecting about 8,000.

“Interestingly, there will be no ECs (executive condominium) in the second half of this year. There might be one along Upper Serangoon Road, which if they make it in the second half, but other than that, it will be a pure private residential and pure mixed project.”

Besides the plot of land at Alexandra Road, which was awarded in December last year, analysts forecast another mixed residential-commercial project at Bukit Panjang should excite home buyers in the second half of 2012.

Analysts believe demand will remain robust.

But any major financial crisis lasting more than two years could dampen sales, especially from a growing group of investors.

Nicholas Mak, research head, SLP International, said: “The government seems to be on the steady path of pushing out ample supply of development sites in the past few GLS programmes and likely will push out more in the next one year or so. However, the robust home buying demand is still likely able to absorb the oncoming supply.”

This year, analysts estimate new home sales to surpass last year’s record 17,750 private home units.

Source : CNA – 2012 Jul 5

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High Court says investors must pay for condo units

Posted on 7 Jul 2012 | Comments Off on High Court says investors must pay for condo units

The High Court rejected a request made by a group of ARA investors to suspend the payments for 10 apartments they purchased at the luxury Grange Infinite condominium.

The case had been brought to court last year, with investors claiming the units they bought were not as elegant and luxurious as promised by Grange Properties.

The High Court has given investors until Saturday to pay the outstanding repayment bill of S$10.18 million. Failure to do so will annul the sale and give Grange the right to repossess all the units.

In total, ARA investors purchased 53 units for S$388 million, 16 of which have since been resold.

ARA was issued with a 21-day notice on April 9 by Grange with respect to the 10 units. The notice warned investors that their failure to pay up by the deadline would give Grange the right to resell the properties.

However, the investors filed an injunction on 24 April, hoping that the payments would be “suspended, deferred and/or postponed until the disposal of the suit”.

They claimed that they suffered losses of close to S$46.1 million, which included costs for the repair of building defects.

ARA argued that Grange may transfer the money from resold units, leaving it unable to pay damages that could be awarded to them.

Grange contended that the argument was inconsistent with ARA’s allegation that it lost potential tenants and buyers because the units were poorly built and thus difficult to sell.

It is now “considering its position in relation to the outstanding amounts for the other units purchased” by the investors.

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