BT Reports: Bulk deals for high-end apartments picking up By KALPANA RASHIWALA

BT Reports: Bulk deals for high-end apartments picking up By KALPANA RASHIWALA

on Wednesday, September 15, 2010 at 11:51am

Bulk deals involving high-end apartments are gathering pace again. Some property funds which invested in Singapore's upmarket residential sector are taking advantage of a price recovery in this segment to exit their investments.

In the Draycott Park area, a German core fund managed by Morgan Stanley is understood to have recently sold 23 apartments it owned in the Draycott Eight condo for slightly over $157 million or about $2,300 per square foot (psf) of strata area.

The buyer is understood to be a fund managed by Alpha Investment Partners, which is part of Keppel Land group.

The German fund incurred a small loss on its late-2007 purchase price of $2,600 psf. Market watchers say the $2,300 psf sale reflects a discount of perhaps 10-15 per cent to what the units could have fetched if they had been sold on an individual basis. But the divestment reflects the fund's ongoing plan to monetise assets globally.

Savills Singapore is understood to have brokered the deal, but it declined to comment.

The 23 apartments transacted, most of which are currently leased, are in the same block. Another Morgan Stanley-managed German core fund owns the remaining 23 units in the block, which were purchased at the same time in 2007 at the same $2,600 psf price. For now, the plan is to hold these units, BT understands.

Draycott Eight comprises three 24-storey blocks with a total 136 units. The project, developed by Wing Tai, was completed in 2005 and its site has a balance lease term of about 86 years.

In the Balmoral Road area, Real Estate Capital Asia Partners (Recap), a Singapore-based investment fund, is said to have recently sold 20 apartments at the Sui Generis freehold condo for around $95 million or $1,935 psf. The buyer is understood to be a Singaporean investor.

Recap earlier sold one unit, a 2,594-sq-ft ground floor unit, in June for $4.9 million or $1,889 psf.

The sales represent a nice profit for Recap, which bought 21 units in the project for about $1,260 psf or $65 million in August last year from the project's developers, United Engineers and Kajima. Sui Generis received temporary occupation permit (TOP) recently.

Recap is headed by Suchad Chiaranussati, who is married to a niece of City Developments executive chairman Kwek Leng Beng.

Meanwhile, Hasetrale Holdings - the controlling shareholder of Napier Properties, developer of the 8 Napier project opposite the US Embassy - has acquired back the 19 freehold units that Napier Properties had sold to an MGPA fund three years ago. This was done in July through Napier Properties director Mark Wee and Hasetrale buying Botanic Investments, the company through which MGPA bought the 19 units in late 2007 at an average price of $3,550 psf.

Botanic had paid a 20 per cent deposit and was due to pay the rest of the purchase price when the project received TOP in June this year. Napier Properties still has some units to sell in the 46-unit project and rather than risk MGPA attempting a subsale below its purchase price, Hasetrale struck a deal to buy MGPA's stake in the 19 units via Botanic Investments, BT understands.

In another bulk purchase, Arch Capital, linked to the Ayala Group of the Philippines, recently bought all 34 units in Royal Oak at Anderson - formerly known as Anderson Green - for about $200 million or an average price of $2,337 psf.

Some investors who bought apartments in bulk are seeking to sell the units individually to secure higher prices than if they were to divest en bloc.

The ARA Asia Dragon Fund, which purchased 53 units at the Grange Infinite condo in early 2008, has begun to sell the units at an average price of about $3,200 psf, on individual unit basis. The fund's average purchase price was earlier reported to be in the $2,600-$2,700 psf range.

Above Outram MRT Station, a local investor entity is said to have picked up 30 units earlier this month at Dorsett Residences at an average price of slightly above $1,700 psf during the project's launch. The units have since been advertised for sale. Most of the units have apparently already been flipped and asking prices for the remaining units are said to be slightly over $2,000 psf.

BT Reports: Market flux will settle soon: CapitaLand exec

Ah...looking forward to the Farrer Court new launch! The proposed 1,715 units development will be positioned as an up market condo, which is designed by well-known architect Zaha Hadid. Stay tuned for more news about this exciting new launch.

BT Reports: Market flux will settle soon: CapitaLand exec By UMA SHANKARI

Recent policy moves to cool the local property market have created some 'flux', but things should 'settle' in a couple of months, the chief executive of CapitaLand's Singapore residential arm said yesterday.

'We think there is currently some flux in the (property) market,' said Wong Heang Fine.

'People are not really sure what to expect from the recent government measures. But we think it will settle in a couple of months.'

CapitaLand will go ahead with the launch of its condominium project on the former Farrer Court site in Farrer Road by year-end.

CapitaLand paid a record $1.3 billion for the 99-year leasehold site in a collective sale in 2007 and now intends to build more than 1,500 units on it.

The prices of units have not been fixed yet, Mr Wong said.

Market sources say that besides the Farrer Road project, CapitaLand is getting ready to roll out The Nassim, a 55-unit project in Nassim Hill on the former ANA Hotel site.

CapitaLand also gave the media and analysts an update yesterday on its plans for a mixed-use site at Bedok Town Centre which it bought this month in a government tender.


CapitaLand and its retail spin-off CapitaMalls Asia submitted the top bid of $788.9 million or $841 per square foot per plot ratio (psf ppr) - 21 per cent higher than the second-highest bid of $650.9 million or $694 psf ppr.
 
Mr Wong said the joint bid was bullish because the 99-year leasehold site has great potential.

The plan is to build a three-storey shopping mall and a condominium with around 500 units on it.

The mall, which will be linked to a bus interchange and Bedok MRT station, is projected to have a capital value of around $3,000 psf of net lettable area when it is completed in 2014.

And the residential component - which will consist of mainly two- and three-bedroom apartments - could be launched as early as next year.

TODAY: Aggressive $258m top bid for Eunos site

Aggressive $258m top bid for Eunos site

Sep 08

SINGAPORE - A week after last Monday's property market curbs were announced, developers have showed a mixed appetite for land, with the five bids received for a Jalan Eunos plot at the close of tender yesterday spanning a wide range of $258 million to $152 million.

The highest bid for the 99-year leasehold site was jointly submitted by Tuas Technology Park, a unit of Glory Realty, and OPH Marymount, a unit of Far East Organization's publicly-listed Orchard Parade Holdings.

The 444,132-square-feet site can be built up to a maximum gross floor area of 621,788 sq ft, the Urban Redevelopment Authority (URA) said. Developers can build a 5-storey condominium or 3-storey strata landed housing, with the project expected to yield an estimated 525 units.

The top bid translates to $415 per square foot per plot ratio and this is 26 per cent higher than the second-highest bid of $204 million, submitted by Guocoland's First Capital Development.

Property consultant CB Richard Ellis said the top bid reflected a breakeven cost of around $720 to $760 psf and units in the new project could possibly sell from $850 psf onwards.

Industry experts said the top bid was aggressive, although the other developers seemed to be cautious. Mr Colin Tan, Chesterton Suntec International's research and consultancy director, said: "The latest bidding results showed that there is still liquidity in the market and developers can still absorb the land parcels. The cooling measures appear to have no effect on the supply side although it is set to control the demand."

"One possible explanation is that the site can be used to target two different markets since it can be developed for condominiums or landed housing," he added.

The URA will decide on the winning bidder at a later date. Ephraim Seow

ST: Sparks fly as electronics giants make property forays

When you start seeing outsiders jump into the property development bandwagon, you know things are getting hot and a little out of hand.

SAT, SEP 4, 2010 Straits Times

Landlords with no real estate background accused of risking shareholders' funds.

These new landlords are sniffing out lucrative opportunities now that many big state-owned enterprises have exited the property market.

- the above is just an excerpt, please refer to the papers for the full article.

TODAY: Early signs of a slowdown?

Early signs of a slowdown?
by Millet Enriquez | Sep 03

SINGAPORE - Early signs of the expected slowdown in the Singapore economy may be on the horizon.

A slowdown in demand for electronics in key regions has caused the local manufacturing sector to snap a 15-month growth streak.

The Purchasing Managers' Index (PMI) showed that last month's manufacturing economy came in at 49.4 - a decline of 2.8 points over the previous month.

A reading above 50 indicates that the manufacturing economy is expanding, while a number below indicates a contraction.

Demand from the United States, China and Europe has been slipping in the last few months and factory output, especially for the electronics sector, has declined substantially, said Ms Janice Ong, executive director at the Singapore Institute of Purchasing and Materials Management (SIPMM), which releases the data every month.

"Hopefully, this one-time contraction in the overall PMI is only short-lived and demands from the foreign markets will pick up in the months ahead," Ms Ong said.

The article above is an excerpt, for the full article please visit http://todayonline.com

TODAY: Buyers may prefer 'software' to 'hardware'

Post a comment on what features you are looking for when searching for your dream home.

Greenery is one of the most sought-after feature and understandably so, since Singapore is such a built-up country. Even homes with green or unblocked views tend to fade with time since the march of development will slowly eat away the precious greens.

Being a project marketing agent, I've also encounter yet another source of angst and frustration for buyers when they learn that the new condo that they're eyeing has one-to-one car park lots. Developers want to maximize profits, home owners want to own multiple cars, visitors want to park within the condo...

But according to a couple of condo management firms, most of the condos units don't own one car each and only a handful own two cars or more. Still, I've been to viewings at certain condos over the weekends and had some trouble finding a lot at the visitor's lots.

* feel free to contact me regarding some of the properties mentioned in this news articles as I'm directly involved in marketing it.

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Buyers may prefer 'software' to 'hardware'
by Christine Sun | Sep 03

The recent move by the Government to cool the residential market is a measured one, targeted at property speculators. It is unlikely to deter genuine home buyers from shopping for their dream home.

We believe this group of buyers are now better placed as they could be more selective and choose where and what they want to buy.

So, what type of private homes would continue to entice buyers? What can developers do to differentiate their projects and entice buyers to opt for their project? After all, property purchases should be treated with a mid- to long-term investment horizon.

A survey was conducted by Savills Research and Consultancy in the first week of last month to explore what buyers would like to have when they buy a new private home, apart from common provisions such as swimming pools, tennis courts, kitchen appliances, wardrobes and air-conditioning.

The poll was done at various prime residential locations, heartland areas and new property show flats, comprising a good mix of different age groups, nationalities, housing types and gender. Of these demographics, 64 per cent of respondents were HDB upgraders versus 36 per cent private home owners.

Topping the wish list of 220 respondents was more greenery in their homes. Specifically, 57 per cent of respondents opted for "gardens and greenery". This was followed by "shuttle services to main shopping belts" (53 per cent), "services for housekeeping, laundry, car washing and child care" (45 per cent) and "more car park lots" (43 per cent).

Private homes adorned with lush landscaping will, therefore, remain popular among buyers here.

This could be a reason why many private homes that draw inspiration from a "green" theme have appealed to buyers. Some well received projects include The Tree House, Park Natura, Meadows Pierce and Nassim Park Residences.

These developments have either integrated their landscape into the surrounding natural greenery or have created their own expansive canopy of roof gardens, sky terraces or sprawling green fields within their premises.

Homes that come with verdant landscaping usually command a premium for their green tranquility and exquisiteness.

However, it seems that such serene living is not appreciated by private home owners alone (64 per cent) as HDB upgraders are found to have a strong preference too (54 per cent). Mass market homes which are predominantly bought by HDB upgraders could, therefore, incorporate more greenery to boost sales.

The survey also found that contrary to popular belief, buyers may have a stronger preference for "software" than "hardware" provisions.

"Software"provisions encompass branding, advertising efforts and personal services, while "hardware" offerings cover physical peripherals such as facilities, finishes, fittings, fixtures and landscaping.

Traditionally, developers differentiate their products by enhancing their "hardware".

For example, many developers have upgraded the types of swimming pools provided in new developments - from a simple lap pool to an array of water features like spa, dip, fun, heated, lounge and infinity pools. For some, hydro-therapeutic jets, spa equipment, aqua gyms and water playgrounds are incorporated.

Barbecue pits have also been outmoded by modern epicurean gourmet kitchens.

These entertainment pieces designed to impress guests are now stylized with different thematic cooking functions to serve tandoori, Japanese teppanyaki, Western BBQ and Italian cuisines. Brand appeals have also been raised by employing world-renowned architects, branded fittings and importing quality marble slabs from East Mediterranean countries.

But are these what buyers really want? According to the findings, common "hardware" items such as "imported quality marble tiles and timber flooring" (20 per cent), "spa facilities" (23 per cent) and "more or bigger balconies" (23 per cent) were not as popular among respondents.

Instead, they preferred "more car park lots" (43 per cent). The scarcity of both private and public parking spaces could have made this a precious commodity among buyers.

The other "hardware" item respondents chose is "white plans" (35 per cent), a relatively new concept where owners are given the flexibility and freedom to design, create and carve out their home layouts.

As this customization usually entails higher construction costs, only some luxury homes like The Alba, Boulevard Vue and Skyline Orchard Boulevard offer such privileges. More developments could incorporate such design flexibility, perhaps within the confines of limited layout choices to contain costs.

Interestingly, the second and third most popular wish list items were "software" items that encompass personal services that can enhance a dweller's daily convenience. These items include "shuttle services to main shopping belts" (53 per cent) and "services such as housekeeping, laundry, car-washing or child care services" (45 per cent).

These personal services were more popular among both private home owners and HDB upgraders than other commonly provided "software" items such as homes being "designed by renowned architects" (21 per cent) and "concierge services" (15 per cent).

Unfortunately, a comprehensive range of these personal services are not always available in developments.

Individual pockets of services are, however, found in selected private homes such as Bayshore Park, that has some laundry services, or The Minton, which is said to be contemplating some child care services from within its premises.

Moving forward, new developments could enhance their marketing strategies and forge new partnerships to enhance the palette of personal services provided for discerning home owners and investors.

After all, as society advances and competition intensifies, it would not be surprising that condominium development may incorporate the provision of services as well.

More studies can, therefore, be done to better understand the spectrum of "software" that buyers want and their impact on the buying decision.

The writer is senior manager at Savills Research and Consultancy.

TODAY: More pay for fresh grads

by Ong Dai Lin | Sep 02

SINGAPORE - Fresh graduates this year are getting more pay, but only marginally. According to a survey by the management consulting firm, Hay Group Singapore, this year's graduates command an average starting pay of $2,461 - only $28 more from $2,433 last year.

However, those graduating next year, could expect lower starting salaries.

Mr Chan said that due to uncertainties in the global economy, companies will be more cautious. He expects starting salaries for bachelor's and master's degree-holders to fall.

- this is an excerpt, visit Today Online to get the full article.