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Frasers sold Holland Park GCB for $30 million

Posted on 13 Nov 2014 | Comments Off

A buyer has reportedly obtained an option to purchase a brand new Good Class Bungalow (GCB) by Frasers Centrepoint in Holland Park for around $30 million, according to media reports.

This translates to $1,989 psf based on the property’s land area of 15,080 sq ft, while its built-up area is 11,368 sq ft.

Notably, the bungalow has dual road frontage and is one of two freehold GCBs that the developer has recently completed. As for the other one, which has a land area of 15,070 sq ft and built-up of 10,777 sq ft, Frasers is said to be selling it at a similar price.

Originally, the developer’s asking price for the sold unit was about $38 million, while the other is around $35 million before the introduction of the Total Debt Servicing Ratio (TDSR) framework in June 2013.

Although the $30 million or $1,989 psf selling price for the sold house is significantly lower than its pre-TDSR price, it’s still a good price for Frasers in light of the subdued luxury residential market, said a veteran GCB agent.

On top of that, Holland is not a highly sought-after GCB location as compared with Cluny, Dalvey, Nassim, Leedon and Bishopsgate, he explained.

Furthermore, this price is near the record set in October 2012, when a newly-built boutique bungalow in Leedon Park was sold for S$2,110 psf.

Comments Off on Frasers sold Holland Park GCB for $30 million

Posted in Developers, Luxury Property

Tagged Frasers Centrepoint, GCB, Good Class Bungalow, Holland Park, TDSR, Total Debt Servicing Ratio

Sentosa condos, bungalows feeling the blues

Posted on 7 Nov 2014 | Comments Off

Prices of bungalows and high-end condominiums in Sentosa have fallen significantly due to the series of cooling measures by the government, according to media reports.

But the most debilitating factors are the Seller’s Stamp Duty (SSD), tax of up to 18 percent for foreign property buyers and the Total Debt Servicing Ratio (TDSR) framework.

Under the SSD rules, all sellers are required to pay 16 percent of a property’s value if they sell it within a year of its purchase. Foreigners also need to pay a buyer’s stamp of 15 percent in addition of basic buyer’s stamp duty of around three percent, while the TDSR limits the loan quantum purchasers can get to 60 percent of their monthly income.

As a result, current prices of luxury condos at Sentosa are hovering near their record-low since end-2006 based on 15 deals, said Maybank Kim Eng.

Residential properties bought after 2006 and sold off in the past 12 months posted price drops of between five percent and 21 percent estimated its Singapore-based analyst Ng Wee Siang.

But the values of some repossessed condos auctioned off by banks in early-2014, such as two units at the Turquoise, dived by as much as 45 percent compared to their purchase price in 2007.

Chestertons’ Managing Director Donald Han noted the most affected segment consists of high-end homes bigger than 2,000 sq ft and costing from $4 million to $5 million

In fact, URA data showed an 11,280 sq ft bungalow at Treasure Island in Sentosa Cove lost over 50 percent of its peak-value when it changed hands this year, while a 7,341 sq ft property was sold for 39 percent less than the record-high of $3,214 psf.