Private property prices... Up or Down?

[Wyfitms]

I think the Govt (especially in a small country like SG) has much more control over it than we would like to admit.

 

We were two-three years short of a boom, thankfully. Or we would be in HK / China's shoes now.

 

Removal of CMs may be deferred or never implemented due to reasons beyond our knowledge as well. We can only judge and conclude a few months or years later some of the basic intentions. Recently in April, I believe that transfers between couples for avoidance of ABSD has been stopped by the HDB. Other valid reasons for transfer still allowed. As a result, many of those who have saved up for years for the move have switched their position to selling of their HDBs.

 

I believe we will see some selling pressures for HDBs that have reached MOP to pick up the private properties. Selling also allows them to amass more funds for the switch than purely saving to buy additional properties. For some of the couples / families, its the only way forward that they can afford two or more private properties.

 

We can review in a few months if my hunch is correct.

 

definitely the govt has strong control on the market. But they will always play it down otherwise their mistakes will be glaring

 

how to not have control? HDB BTO 100% controlled by them. HDB resale also partially controlled as they make all the rules and BTO prices set the floor

 

private condo - 90% of land sales from govt

 

There are a lot of sellers for HDB, however there are a lot of buyers as well. Hence HDB resale prices have surprisingly stabilized already.. havent even dropped much yet.

[Wyfitms]

I know you secretly call him Nam Toot 

 

no lah, i call him car toon lah

[Showster]

Not yet bro. The hidden HDB measure was just confirmed in April. After that, surprise easing by MAS.

 

Basically no time for HDB owners to react if they had not done so already.

 

If HDB activities pick up, then game on. Remember we have had huge BTO records and HDBs built since the shortfall period.

 

 

 

 

 

definitely the govt has strong control on the market. But they will always play it down otherwise their mistakes will be glaring

 

how to not have control? HDB BTO 100% controlled by them. HDB resale also partially controlled as they make all the rules and BTO prices set the floor

 

private condo - 90% of land sales from govt

 

There are a lot of sellers for HDB, however there are a lot of buyers as well. Hence HDB resale prices have surprisingly stabilized already.. havent even dropped much yet.

[Wyfitms]

Not yet bro. The hidden HDB measure was just confirmed in April. After that, surprise easing by MAS.

 

Basically no time for HDB owners to react if they had not done so already.

 

If HDB activities pick up, then game on. Remember we have had huge BTO records and HDBs built since the shortfall period.

 

 

 

 

 

 

i'm more than happy to see HDB prices fall another 20% 

[Mercs]

http://www.theedgeproperty.com.sg/content/renewed-interest-older-freehold-condos-scotts-road

Renewed interest in older, freehold condos on Scotts Road

April 21, 2016

 

A unit on the 18th floor of Scotts 28 was sold for $3.13 million ($1,888 psf), according to a caveat lodged with URA Realis on April 1.

 

Further up on Scotts Road, a unit on the 16th floor of Scotts Highpark was sold for $3.35 million ($1,921 psf), based on a caveat lodged on April 4

 

In District 10, a 1,130 sq ft unit on the fifth floor of The Arc at Draycott was sold for $2.15 million. This translates to $1,902 psf.

 

Nearby at the prestigious Ardmore Park, a four-bedroom, 3,520 sq ft unit on the eighth floor of Juniper at Ardmore was sold for $7.28 million. The sale price translates to an average of $2,068 psf.

 

 

“I think the strong performance at Cairnhill Nine has revived the attention of investors looking for good-value freehold condos in the prime districts, particularly Districts 9 and 10,”

 

“They feel prices are bottoming after declining for nine quarters and that it’s a good time to cherry-pick.”

Edited April 21, 2016 by Mercs

[Mercs]

http://www.theedgeproperty.com.sg/content/just-sold-two-gcbs-sold-within-two-days

JUST SOLD: Two GCBs sold within two days

April 21, 2016

 

A 15,070 sq ft Good Class Bungalow (GCB) at Fifth Avenue was sold for $24.50 million, or $1,626 psf on March 29, 2016.

 

On March 30, another 16,598 sq ft GCB at Swettenham Close changed hands for $22.48 million, $1,355 psf.

 

A total of nine GCBs were transacted in 1Q2016, up from four in the same period last year. Total transaction value doubled from $95 million in 1Q2015 to $209 million 1Q2016.

[Mercs]

http://www.propertyguru.com.sg/property-management-news/2016/4/123204/developer-hit-with-s2-7mil-in-extension-charges

Developer hit with S$2.7mil in extension charges

April 21, 2016

 

CapitaLand forked out S$2.7 million in extension charges for the 127 unsold units in The Interlace. This works out to S$21,000 per unit or S$7 psf, reported TODAYonline.

 

Originally, the remaining flats at the 1,040-unit condominium on Depot Road should have been disposed by 13 March, but since paying the charges, CapitaLand’s deadline to sell the leftover properties there has been extended by another six months.

 

 

In its latest earnings report, CapitaLand revealed that it has found buyers for 89 percent of the units it has launched so far, adding that the 55-unit The Nassim at Nassim Hill and the 109-unit Victoria Park Villas in Victoria Park Road are set to be unveiled in H1 2016.

 

Its Cairnhill Nine development also posted healthy sales, with 193 out of the 268 units changing hands as of last Thursday (14 April).

[Wt_know]

thank you capitaland ... huat ah!

next is CDL? will kwek cry papa cry mama in the news?

Edited April 21, 2016 by Wt_know

[Roh96]

http://www.propertyguru.com.sg/property-management-news/2016/4/123204/developer-hit-with-s2-7mil-in-extension-charges

Developer hit with S$2.7mil in extension charges

April 21, 2016

 

CapitaLand forked out S$2.7 million in extension charges for the 127 unsold units in The Interlace. This works out to S$21,000 per unit or S$7 psf, reported TODAYonline.

 

Originally, the remaining flats at the 1,040-unit condominium on Depot Road should have been disposed by 13 March, but since paying the charges, CapitaLand’s deadline to sell the leftover properties there has been extended by another six months.

 

 

In its latest earnings report, CapitaLand revealed that it has found buyers for 89 percent of the units it has launched so far, adding that the 55-unit The Nassim at Nassim Hill and the 109-unit Victoria Park Villas in Victoria Park Road are set to be unveiled in H1 2016.

 

Its Cairnhill Nine development also posted healthy sales, with 193 out of the 268 units changing hands as of last Thursday (14 April).

 

Paying $2.7M is a wise decision rather than lelong sales. At least they keep thousand of owners who bought earlier happy.

[Enye]

don't laugh at nam toon lah, he is a very intelligent man

叫得多亲热啊！

 

 

[Mercs]

http://www.straitstimes.com/business/property/widening-gap-between-home-prices

Widening gap between home prices

APR 20, 2016

[Showster]

http://www.capitaland.com/csr/sustainabilityreport/2014/financial.html

 

$2.7 million tax for EBIT of $2.4 Billion (2014).

 

Will the tax paid be separated out from expenditure or will it be regarded as part of business expenses that are tax-deductible?

 

 

http://www.propertyguru.com.sg/property-management-news/2016/4/123204/developer-hit-with-s2-7mil-in-extension-charges
Developer hit with S$2.7mil in extension charges
April 21, 2016

CapitaLand forked out S$2.7 million in extension charges for the 127 unsold units in The Interlace. This works out to S$21,000 per unit or S$7 psf, reported TODAYonline.

Originally, the remaining flats at the 1,040-unit condominium on Depot Road should have been disposed by 13 March, but since paying the charges, CapitaLand’s deadline to sell the leftover properties there has been extended by another six months.


In its latest earnings report, CapitaLand revealed that it has found buyers for 89 percent of the units it has launched so far, adding that the 55-unit The Nassim at Nassim Hill and the 109-unit Victoria Park Villas in Victoria Park Road are set to be unveiled in H1 2016.

Its Cairnhill Nine development also posted healthy sales, with 193 out of the 268 units changing hands as of last Thursday (14 April).

 

[Mercs]

Paying $2.7M is a wise decision rather than lelong sales. At least they keep thousand of owners who bought earlier happy.

http://www.capitaland.com/csr/sustainabilityreport/2014/financial.html

 

$2.7 million tax for EBIT of $2.4 Billion (2014).

 

Will the tax paid be separated out from expenditure or will it be regarded as part of business expenses that are tax-deductible?

http://www.straitstimes.com/business/property/capitalands-net-profit-for-q1-rises-354-to-2183m

CapitaLand's net profit for Q1 rises 35.4% to $218.3m

APR 21, 2016

 

Yup, paying $2.7M, "sup sup water" for CL, sales for Interlace still moving, let's see if can clear (127units) stock with the 6 months extension?

 

"revenue started to be recognised for Cairnhill Nine and by higher sales for The Interlace, along with rental income from CapitaGreen"

[Showster]

http://www.straitstimes.com/business/property/capitalands-net-profit-for-q1-rises-354-to-2183m

CapitaLand's net profit for Q1 rises 35.4% to $218.3m

APR 21, 2016

 

Yup, paying $2.7M, "sup sup water" for CL, sales for Interlace still moving, let's see if can clear (127units) stock with the 6 months extension?

 

"revenue started to be recognised for Cairnhill Nine and by higher sales for The Interlace, along with rental income from CapitaGreen"

Declaring they pay 2.7mil with 127 units left is helping Interlace do free advertisement. My guess is will move very fast if they do not move prices but are realistic.

[Mercs]

Declaring they pay 2.7mil with 127 units left is helping Interlace do free advertisement. My guess is will move very fast if they do not move prices but are realistic.

I think so too, anyway the extension charges is a joke, only $7psf

"CapitaLand forked out S$2.7 million in extension charges for the 127 unsold units in The Interlace. This works out to S$21,000 per unit or S$7 psf"

 

If you are the developer, cut prices?...or pay extension charges?

The choice looks crystal clear to me!

[Wt_know]

$21k per unit ... that is less than 2% of a $1.25M sup sup water peasant unit ... but that only buy time for 6 months ... after that another $21k? thanks for nation building ... huat ah!

[Freeder]

Declaring they pay 2.7mil with 127 units left is helping Interlace do free advertisement. My guess is will move very fast if they do not move prices but are realistic.

CCB.. If left over 500 units.. See they kpkb or not...

[tenyawph]

http://www.straitstimes.com/business/property/capitalands-net-profit-for-q1-rises-354-to-2183m

CapitaLand's net profit for Q1 rises 35.4% to $218.3m

APR 21, 2016

 

Yup, paying $2.7M, "sup sup water" for CL, sales for Interlace still moving, let's see if can clear (127units) stock with the 6 months extension?

 

"revenue started to be recognised for Cairnhill Nine and by higher sales for The Interlace, along with rental income from CapitaGreen"

 

Assuming that CL is not able to sell off any more units, the total payable QC extension charge is $5.4M (in the 1st year i.e. 2 years after TOP), which will be doubled to $10.8M (in the 2nd year), and then tripled to $16.2M (in the 3rd year).  In reality, CL will continue to just pay (for the 3 years, pro-rated to the proportion of unsold units left) to extend the deadline, as the number of unsold units becomes smaller.

 

However, if CL still cannot sell off all its units (by this time 5th year after TOP), there is a forfeit of their banker's guarantee of 10% of the land purchase price.  This last penalty, CL cannot afford to ignore by just absorbing it, as the amount is too big to pay.  The land was bought en-bloc (formerly Gillman Heights) at $548M in Feb 2007.