Tag Archives: Total Debt Servicing Ratio

Frasers sold Holland Park GCB for $30 million

Posted on 13 Nov 2014 | Comments Off on Frasers sold Holland Park GCB for $30 million

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.

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Posted in Developers, Luxury Property

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Home prices correction not there yet

Posted on 29 Oct 2014 | Comments Off on Home prices correction not there yet

PROPERTY prices in Singapore have not seen a “meaningful correction” yet, said Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam on Tuesday.

“We have seen some correction in both private property prices and HDB resale prices over the last 4-5 quarters, but there is some distance to go in achieving a meaningful correction after the sharp run-up in prices in recent years,” said Mr Tharman, who is also chairman of the Monetary Authority of Singapore (MAS), at the Credit Counselling Singapore’s 10th anniversary luncheon.

“If we do not get a meaningful reversal after each upswing, property prices will run ahead of the growth of household incomes over the long term, which we should avoid.”

He noted how the risk profiles of borrowers have improved, with the share of borrowers taking up multiple housing loans declining to 13 per cent of new housing loans as at the second quarter of this year, from 30 per cent in 2011.

The average tenure of new private housing loans has also been trimmed to about 25 years, compared to a peak of 30 years in 2012.

Last Friday, figures from the Urban Redevelopment Authority (URA) showed prices of private property falling by 0.7 per cent in the third quarter of this year, compared to three months earlier. That marked the fourth consecutive quarterly drop, though it was also the most benign dip since prices chilled a year ago.

The HDB resale market was hit much harder in the latest quarter, with prices slipping 1.7 per cent from a quarter ago – the biggest decline since the Q3 2001.

Among the cooling measures undertaken by the government was the total debt servicing ratio (TDSR) framework put in place last year. Under TDSR, a borrower’s monthly instalments for all debt servicing – including mortgage payments – must not cross 60 per cent of his gross monthly income.

*Spotlight thrown on highly leveraged borrowers

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Posted in Government, Loan / Mortgage / Finance, Property Market / Real Estate

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