MORE than 120 eager buyers yesterday crowded into a room at M Hotel hoping for a bargain deal at a first-of-its kind auction of six small plots of land.
The buyers were mostly hoping to buy a plot on which to build their own dream home.
And after some brisk bidding, six of them each left with a 99-year leasehold plot - some with what they saw as bargains.
The plots sold at prices from $1.3 million to $12.1 million, for a total of $30.64 million.
It was the Singapore Land Authority’s (SLA) first auction of residential ‘infill’ sites.
‘Infill’ sites are pockets of state land, located in the midst of an established housing estate, that have been left untouched by nearby developments or were once used for public purposes.
The six sites were mostly hotly contested, reflecting strong interest in the attractively-priced sites.
The bidders included professionals, businessmen, construction firms and niche developers, said SLA in a statement.
Included in an SLA sale for the first time were two good- class bungalow (GCB) parcels, which were sold to individual buyers for up to $12.1 million.
Still, one of the two top-end plots - a 16,689 sq ft site - attracted just one bidder. Fund manager John Foo met with zero competition when he bought the smaller of the two plots at Eng Neo Avenue for $6 million or $359.50 per sq ft (psf).
He reckoned he got a good deal for the site, which is for his own use. ‘Sentosa leasehold plots can be over $1,000 psf while District 10 GCB plots are going for $800 to $1,000 psf.’
The other GCB plot, at 29,201 sq ft in size, attracted more bidders. Bids came in hefty $50,000 increments but bidders did not hesitate long as they fired in a total of 52 bids, driving the price up from $9.5 million to $12.1 million.
The interest is not surprising, given that GCB sites, particularly one as big as 29,201 sq ft, are quite rare, said Ms Mok Sze Sze, Jones Lang LaSalle’s director and head of auction and sales.
The successful buyer, Ms Hu Nan Lee, is a Singaporean who is overseas. Her representative said it is meant for her own use.
Of the six plots, the most popular was one at Somme Road. It attracted a whopping 64 bids before local firm Sarda clinched it at $3.76 million.
Sarda’s price was 52 per cent above the $2.48 million opening bid for the 3,547 sq ft residential site, which comes with commercial use on the first floor.
A 6,971 sq ft site in Jalan Insaf, suitable for a pair of two-storey semi-detached houses or a bungalow, was sold to Lye Holdings for $3.54 million, up from the starting bid of $2.9 million.
Avadh, another firm, paid $1.3 million for a 4,228 sq ft site in Bedok Close, suitable for a two-storey bungalow. The opening bid was $880,000.
Both Sarda and Avadh have a shareholder in common: Mr Shriniwas Rai, the veteran lawyer and former Nominated Member of Parliament.
Another firm, Liverland Investments, bought a 6,293 sq ft Moonbeam Walk site for $3.94 million. Bids for the site, which can be used to build a pair of two-storey semi-detached houses, opened at $3.32 million.
Ms Mok said the strong response shows people are open to buying leasehold plots to build their dream homes.
SLA’s chief executive, Mr Lam Joon Khoi, said: ‘We will consider releasing more infill sites to help meet the current market demand for high quality residential properties.’
Source : Straits Times - 30 Nov 2007
Showing posts with label auction. Show all posts
Showing posts with label auction. Show all posts
Saturday, December 1, 2007
Wednesday, November 14, 2007
The second Marina View plot drew only two bids when its tender closed yesterday. The top offer came in at $952.9 million
BARELY two months after a site at Marina View fetched a record $2.02 billion, a similar plot next door has managed only half that price.
The unexpectedly low bids for the plot, which was seen as highly attractive, came on top of lukewarm response to other recent land sales. This is further proof that sentiment in the property market has started to cool, consultants warned.
The second Marina View plot drew only two bids when its tender closed yesterday. The top offer came in at $952.9 million - a far cry from the first site’s price and well below the experts’ predictions of up to $1.6 billion.
Both Marina View sites, which are located behind the One Shenton condominium, had the same high bidder: Macquarie Global Property Advisers (MGPA), a private equity real estate firm partly owned by Australia’s Macquarie Bank Group.
Property group CapitaLand also put in offers for both plots.
MGPA’s offer in September for the first site, which is slightly bigger, worked out to $1,409 per sq ft per plot ratio (psf ppr), almost double the $779 psf ppr bid it submitted for the second site.
The stark difference shows how much the mood in the market has shifted in just two months, said Knight Frank director of research and consultancy Nicholas Mak.
‘Clearly, they had a change of heart,’ he said. ‘The two sites are right next to each other, but the second bid is only 55 per cent of the previous bid.’
Mr Mak agreed that the price is ’still decent’, and that there was ‘a fair bit of exuberance in land tenders previously’.
But, in general, property investors are now turning more cautious, he said. This is due to stock market volatility, uncertainty over the global credit crunch and recent government measures in the property market.
The Government last month removed the deferred payment scheme for homebuyers in a surprise move that is being seen as an act to discourage speculation.
Mr Mak suggested, however, that this may have helped overcool the market.
Following the Government’s move, a residential land parcel on Enggor Street at Tanjong Pagar attracted only two offers when it went on sale, while an office site in Tampines found just one bidder.
This is despite these plots being fairly attractive, said Mr Mak.
‘If the Government throws in a site in Jurong, they may not get any bids at all.’
But while other consultants agreed that developers and investors are now more circumspect, some said the low Marina View bids could be an aberration.
‘The mood has changed somewhat, but it’s not as drastic as this. This is a bit of a flash in the pan,’ said Mr Li Hiaw Ho, CB Richard Ellis’ executive director.
He had expected bids for the second Marina View site to come in at a lower level because 25 per cent of the plot’s gross floor area must be used for hotel rooms, which have slightly lower land values.
Mr Li said, however, that the huge difference in bids was unexpected. He attributed it partly to the fact that there were only two bids: ‘This cannot draw out the most competitive offers.’
The Marina View site has a land area of about 0.9ha and a maximum floor area of 1.2 million sq ft. On top of the hotel use requirement, at least 60 per cent of the plot’s area must be given to offices.
If MGPA is awarded the second site, it could lower its average price for the two plots to about $1,100 psf ppr and combine them to form a mega commercial development, said Mr Donald Han, managing director of Cushman & Wakefield.
Source : Straits Times - 14 Nov 2007
The unexpectedly low bids for the plot, which was seen as highly attractive, came on top of lukewarm response to other recent land sales. This is further proof that sentiment in the property market has started to cool, consultants warned.
The second Marina View plot drew only two bids when its tender closed yesterday. The top offer came in at $952.9 million - a far cry from the first site’s price and well below the experts’ predictions of up to $1.6 billion.
Both Marina View sites, which are located behind the One Shenton condominium, had the same high bidder: Macquarie Global Property Advisers (MGPA), a private equity real estate firm partly owned by Australia’s Macquarie Bank Group.
Property group CapitaLand also put in offers for both plots.
MGPA’s offer in September for the first site, which is slightly bigger, worked out to $1,409 per sq ft per plot ratio (psf ppr), almost double the $779 psf ppr bid it submitted for the second site.
The stark difference shows how much the mood in the market has shifted in just two months, said Knight Frank director of research and consultancy Nicholas Mak.
‘Clearly, they had a change of heart,’ he said. ‘The two sites are right next to each other, but the second bid is only 55 per cent of the previous bid.’
Mr Mak agreed that the price is ’still decent’, and that there was ‘a fair bit of exuberance in land tenders previously’.
But, in general, property investors are now turning more cautious, he said. This is due to stock market volatility, uncertainty over the global credit crunch and recent government measures in the property market.
The Government last month removed the deferred payment scheme for homebuyers in a surprise move that is being seen as an act to discourage speculation.
Mr Mak suggested, however, that this may have helped overcool the market.
Following the Government’s move, a residential land parcel on Enggor Street at Tanjong Pagar attracted only two offers when it went on sale, while an office site in Tampines found just one bidder.
This is despite these plots being fairly attractive, said Mr Mak.
‘If the Government throws in a site in Jurong, they may not get any bids at all.’
But while other consultants agreed that developers and investors are now more circumspect, some said the low Marina View bids could be an aberration.
‘The mood has changed somewhat, but it’s not as drastic as this. This is a bit of a flash in the pan,’ said Mr Li Hiaw Ho, CB Richard Ellis’ executive director.
He had expected bids for the second Marina View site to come in at a lower level because 25 per cent of the plot’s gross floor area must be used for hotel rooms, which have slightly lower land values.
Mr Li said, however, that the huge difference in bids was unexpected. He attributed it partly to the fact that there were only two bids: ‘This cannot draw out the most competitive offers.’
The Marina View site has a land area of about 0.9ha and a maximum floor area of 1.2 million sq ft. On top of the hotel use requirement, at least 60 per cent of the plot’s area must be given to offices.
If MGPA is awarded the second site, it could lower its average price for the two plots to about $1,100 psf ppr and combine them to form a mega commercial development, said Mr Donald Han, managing director of Cushman & Wakefield.
Source : Straits Times - 14 Nov 2007
Wednesday, October 31, 2007
THE mood continued to be buoyant at two property auctions yesterday held by the Urban Redevelopment Authority (URA) and DTZ Debenham Tie Leung.
THE mood continued to be buoyant at two property auctions yesterday held by the Urban Redevelopment Authority (URA) and DTZ Debenham Tie Leung.
The URA auctioned 12 sub-divided landed housing plots near Sembawang Beach which can be developed into a total of 57 landed homes.
The auction fetched a total sum of $37.09 million, working out to about $285 per square foot of land area on an average basis.
The bidders included mostly smaller developers, contractors and engineering firms but also some individuals, like local advertising guru Lim Sau Hoong.
The chief executive of Singapore-based advertising agency 10AM Communications clinched the sole bungalow plot of 4,477 sq ft for $940,000.
Market watchers expect Ms Lim to spend a further $1.5 million on construction costs and fees, bringing her likely all-in investment for her bungalow at about $2.5 million.
Mecbonn Engineering, whose office is at International Plaza and which is controlled by a Tew family, walked away with the biggest plot, a 43,687 sq ft site slated for development into 23 terrace houses, for $14.3 million or $327.33 psf of land area.
The plot attracted a total of 107 bids from about eight parties.
A property consultant estimates Mecbonn’s break- even cost works out to about $1.3 million per terrace house.
The company also bought two smaller plots for semi-detached homes.
Fragrance Group unit Fragrance Homes bought two plots. It paid $9.2 million or $294 psf for a plot designated for 14 terrace houses and $1.76 million or $270 psf for a smaller plot for three terrace homes.
Fragrance Group boss Koh Wee Meng and his wife Lim Wan Looi too bought a semi-detached plot for $289 psf.
The 99-year leasehold land plots auctioned by the URA yesterday form the first phase of Sembawang Greenvale.
URA’s director of land administration, Choy Chan Pong, was pleased with the auction result, noting that it drew ‘wide participation and competitive bidding’.
‘We can consider releasing the next phase of Greenvale in the H1 2008 Government Land Sales Programme,’ he added.
DTZ Debenham Tie Leung’s auction at Amara Hotel saw a strong turnout of about 100, including spectators, with three mortgagee sale properties changing hands, including a ground floor shop unit at the freehold Grandlink Square at Guillemard Road selling for $226,000 or $1,102 psf of strata area.
The other two properties sold were a two-storey linked semi-D factory at 67E Tuas South Avenue 1, which fetched $1.3 million or about $139 psf of strata area, and a two-storey, freehold corner terrace house at 34 Maria Avenue in Opera Estate that was sold for $1.4 million, or $392 psf of land area.
Source : Business Times - 31 Oct 2007
The URA auctioned 12 sub-divided landed housing plots near Sembawang Beach which can be developed into a total of 57 landed homes.
The auction fetched a total sum of $37.09 million, working out to about $285 per square foot of land area on an average basis.
The bidders included mostly smaller developers, contractors and engineering firms but also some individuals, like local advertising guru Lim Sau Hoong.
The chief executive of Singapore-based advertising agency 10AM Communications clinched the sole bungalow plot of 4,477 sq ft for $940,000.
Market watchers expect Ms Lim to spend a further $1.5 million on construction costs and fees, bringing her likely all-in investment for her bungalow at about $2.5 million.
Mecbonn Engineering, whose office is at International Plaza and which is controlled by a Tew family, walked away with the biggest plot, a 43,687 sq ft site slated for development into 23 terrace houses, for $14.3 million or $327.33 psf of land area.
The plot attracted a total of 107 bids from about eight parties.
A property consultant estimates Mecbonn’s break- even cost works out to about $1.3 million per terrace house.
The company also bought two smaller plots for semi-detached homes.
Fragrance Group unit Fragrance Homes bought two plots. It paid $9.2 million or $294 psf for a plot designated for 14 terrace houses and $1.76 million or $270 psf for a smaller plot for three terrace homes.
Fragrance Group boss Koh Wee Meng and his wife Lim Wan Looi too bought a semi-detached plot for $289 psf.
The 99-year leasehold land plots auctioned by the URA yesterday form the first phase of Sembawang Greenvale.
URA’s director of land administration, Choy Chan Pong, was pleased with the auction result, noting that it drew ‘wide participation and competitive bidding’.
‘We can consider releasing the next phase of Greenvale in the H1 2008 Government Land Sales Programme,’ he added.
DTZ Debenham Tie Leung’s auction at Amara Hotel saw a strong turnout of about 100, including spectators, with three mortgagee sale properties changing hands, including a ground floor shop unit at the freehold Grandlink Square at Guillemard Road selling for $226,000 or $1,102 psf of strata area.
The other two properties sold were a two-storey linked semi-D factory at 67E Tuas South Avenue 1, which fetched $1.3 million or about $139 psf of strata area, and a two-storey, freehold corner terrace house at 34 Maria Avenue in Opera Estate that was sold for $1.4 million, or $392 psf of land area.
Source : Business Times - 31 Oct 2007
Friday, September 28, 2007
Acquiring properties through an auction is not a taboo
Acquiring properties through an auction is not a taboo, says MARY SAI
WHEN one flips through the property classifieds these days, it not uncommon to see properties advertised for auction. It is also not uncommon for a prospective buyer to immediately get the impression that the property to be auctioned, or the owner, must have some problems, otherwise why auction?
This misconception stems mainly from the days when auctions were the main mode of sale for banks when they repossessed property from owners who defaulted in their loans. In the 1980s and 1990s, most of the property auctions were mortgagees’ auctions. So many people saw them as forced sales.
But today, in a bullish property market, auctioneers are seeing more owners choosing to auction their property. In this article, we try and dispel some of the misconceptions about auctioned property.
Myth No 1: Auctions are fire sales
Contrary to widespread belief, an auction can secure the best price through open competitive bidding. Even the courts recognise an auction sale as an appropriate way to sell a property under dispute. It is deemed that through competitive bidding, a fair open market value can be realised for the seller. An auction sale is not tantamount to a desperate sale. Although the auction sale can be organised within a fortnight, it does not mean that the vendor has to sell in a hurry at bargain basement prices! Similarly, in mortgagee auction sales the bank exercises due diligence and is guided by valuations when they sell repossessed properties. They are genuine sellers, not desperate sellers.
In a recent forced sale of a dilapidated two-storey building at 27 Onan Road, two auctions conducted failed to secure a buyer. However, instead of an expected fire sale in the third round of auction, the property went under the hammer for $610,000 - a whopping 36 per cent increase from the opening price of $450,000.
Another good example was a auction of a bungalow plot at 59 Goodman Road in January this year. Vigorous bidding from more than eight parties saw the property knocked down at a record price of $626 per sq ft while comparable sales then were transacted around $350-$400 psf. Similarly, the recent auction sale of bungalow plots at Sentosa Cove also saw benchmark prices established way above $1,000 psf for their 99-year leasehold titles.
Myth No 2: ‘Challenging’ properties are auctioned
Many people consider the auction route as the last resort for the sale of properties. It would be the mode of sale for ‘challenging’ properties - those with inauspicious numbers like 4, 14 or 44 or with irregularly-shaped sites.
Going through past auction data, we see no anecdotal evidence to show that auction properties carry more inauspicious house numbers or are of inferior quality. In the past year and a half, several investors have picked up gems like good class bungalows in Bukit Timah/Holland; heritage properties at Emerald Hill Road and shophouses fronting main roads like Serangoon Road, Geylang Road, South and North Bridge Roads. These properties have appreciated substantially, with some doubling from the time they were bought at auction.
Recently, there has been a trend of luxury properties put on the auction block, as well as those in developments with en bloc potential. Some of these include apartments in The Beaumont, Stevens Loft and Watten Estate Condo. Hence, there is no lack of quality properties to buy in the auction market.
Myth No 3: Auctioned properties bring bad luck
This superstitious belief can be traced to the days when auctions were mainly for banks’ foreclosed properties. People refrained from buying such properties as they feared they would suffer the same fate as the previous owners.
Today, this superstitious view is slowly disappearing with a younger generation of property buyers.
Again, not all auctioned properties are forced sales by banks as more owners are now choosing the auction route on their own accord. They see the many advantages of auction sale and want to leverage it in a bullish property market.
As a matter of fact, buyers who successfully bid for apartments at Leedon Heights, Tulip Gardens and Silver Towers are now laughing all the way to the bank as these developments have just been collectively sold. Good fortune was theirs as a result of their smart purchases at auctions.
Myth No 4: Hungry ghosts
The seventh lunar month has been traditionally the ‘Hungry Ghost Festival’ - an inauspicious period when buyers refrain from buying property. All the more so at auctions.
Generally, businessmen and property buyers who observe Chinese religious rituals during this period, would rather bid for goods that have been ceremoniously blessed by their gods which they believe will bring them good luck - items such as ‘black charcoal’, symbolic sculptures, etc.
However, in the past few years, many property buyers are breaking away from this trend and are buying properties during the Hungry Ghost month, even at auctions. In the latest auction on Aug 16, which fell on the third day of the Hungry Ghost month, a dilapidated two-storey conservation terrace house at Spottiswoode Park was aggressively bid for by six parties from an opening price of $680,00 to an eventual $1.36 million. That’s a 100 per cent increase! Two other properties were also sold at the same auction and these transactions defy the myth that property auctions are a ‘no-no’ during the Hungry Ghost Festival.
Conclusion
Auctions will go on, be it bullish or bearish markets. With technological advances, improvements such as electronic biddings may complement conventional auctions. At the same time, myths and misconceptions relating to property auctions will be erased over time as people become more familiar with this mode of sale. Having cleared the suspicions and doubts concerning auctions, buyers can safely head to the weekly property auctions and pick up some good buys.
The writer is Knight Frank’s auctions director
Source : Business Times - 27 Sep 2007
WHEN one flips through the property classifieds these days, it not uncommon to see properties advertised for auction. It is also not uncommon for a prospective buyer to immediately get the impression that the property to be auctioned, or the owner, must have some problems, otherwise why auction?
This misconception stems mainly from the days when auctions were the main mode of sale for banks when they repossessed property from owners who defaulted in their loans. In the 1980s and 1990s, most of the property auctions were mortgagees’ auctions. So many people saw them as forced sales.
But today, in a bullish property market, auctioneers are seeing more owners choosing to auction their property. In this article, we try and dispel some of the misconceptions about auctioned property.
Myth No 1: Auctions are fire sales
Contrary to widespread belief, an auction can secure the best price through open competitive bidding. Even the courts recognise an auction sale as an appropriate way to sell a property under dispute. It is deemed that through competitive bidding, a fair open market value can be realised for the seller. An auction sale is not tantamount to a desperate sale. Although the auction sale can be organised within a fortnight, it does not mean that the vendor has to sell in a hurry at bargain basement prices! Similarly, in mortgagee auction sales the bank exercises due diligence and is guided by valuations when they sell repossessed properties. They are genuine sellers, not desperate sellers.
In a recent forced sale of a dilapidated two-storey building at 27 Onan Road, two auctions conducted failed to secure a buyer. However, instead of an expected fire sale in the third round of auction, the property went under the hammer for $610,000 - a whopping 36 per cent increase from the opening price of $450,000.
Another good example was a auction of a bungalow plot at 59 Goodman Road in January this year. Vigorous bidding from more than eight parties saw the property knocked down at a record price of $626 per sq ft while comparable sales then were transacted around $350-$400 psf. Similarly, the recent auction sale of bungalow plots at Sentosa Cove also saw benchmark prices established way above $1,000 psf for their 99-year leasehold titles.
Myth No 2: ‘Challenging’ properties are auctioned
Many people consider the auction route as the last resort for the sale of properties. It would be the mode of sale for ‘challenging’ properties - those with inauspicious numbers like 4, 14 or 44 or with irregularly-shaped sites.
Going through past auction data, we see no anecdotal evidence to show that auction properties carry more inauspicious house numbers or are of inferior quality. In the past year and a half, several investors have picked up gems like good class bungalows in Bukit Timah/Holland; heritage properties at Emerald Hill Road and shophouses fronting main roads like Serangoon Road, Geylang Road, South and North Bridge Roads. These properties have appreciated substantially, with some doubling from the time they were bought at auction.
Recently, there has been a trend of luxury properties put on the auction block, as well as those in developments with en bloc potential. Some of these include apartments in The Beaumont, Stevens Loft and Watten Estate Condo. Hence, there is no lack of quality properties to buy in the auction market.
Myth No 3: Auctioned properties bring bad luck
This superstitious belief can be traced to the days when auctions were mainly for banks’ foreclosed properties. People refrained from buying such properties as they feared they would suffer the same fate as the previous owners.
Today, this superstitious view is slowly disappearing with a younger generation of property buyers.
Again, not all auctioned properties are forced sales by banks as more owners are now choosing the auction route on their own accord. They see the many advantages of auction sale and want to leverage it in a bullish property market.
As a matter of fact, buyers who successfully bid for apartments at Leedon Heights, Tulip Gardens and Silver Towers are now laughing all the way to the bank as these developments have just been collectively sold. Good fortune was theirs as a result of their smart purchases at auctions.
Myth No 4: Hungry ghosts
The seventh lunar month has been traditionally the ‘Hungry Ghost Festival’ - an inauspicious period when buyers refrain from buying property. All the more so at auctions.
Generally, businessmen and property buyers who observe Chinese religious rituals during this period, would rather bid for goods that have been ceremoniously blessed by their gods which they believe will bring them good luck - items such as ‘black charcoal’, symbolic sculptures, etc.
However, in the past few years, many property buyers are breaking away from this trend and are buying properties during the Hungry Ghost month, even at auctions. In the latest auction on Aug 16, which fell on the third day of the Hungry Ghost month, a dilapidated two-storey conservation terrace house at Spottiswoode Park was aggressively bid for by six parties from an opening price of $680,00 to an eventual $1.36 million. That’s a 100 per cent increase! Two other properties were also sold at the same auction and these transactions defy the myth that property auctions are a ‘no-no’ during the Hungry Ghost Festival.
Conclusion
Auctions will go on, be it bullish or bearish markets. With technological advances, improvements such as electronic biddings may complement conventional auctions. At the same time, myths and misconceptions relating to property auctions will be erased over time as people become more familiar with this mode of sale. Having cleared the suspicions and doubts concerning auctions, buyers can safely head to the weekly property auctions and pick up some good buys.
The writer is Knight Frank’s auctions director
Source : Business Times - 27 Sep 2007
Friday, September 14, 2007
SALES of properties on auction here plummeted last month, in one of the first signs that the global credit crunch may be taking a toll on Singapore
SALES of properties on auction here plummeted last month, in one of the first signs that the global credit crunch may be taking a toll on Singapore’s property market.
Only $10.79 million of properties were sold under the hammer in the month, less than one-fifth of what was fetched in each of June and July, said property firm Colliers International, one of the biggest auctioneers here.
Since March, the value of properties sold via auction each month has ranged from $33 million to $108 million.
But this plunged last month, said Colliers, which released a report on auction sales yesterday.
In previous years, August has traditionally been a slow month for property sales due to the Hungry Ghost Festival.
But superstitious buyers were not the reason auction sales turned in an exceptionally poor showing in this year’s hungry ghost month, which stretched from Aug 13 to Monday.
Colliers said the nosedive in sales was mainly due to the recent stock market volatility caused by United States sub-prime mortgage worries, new government policies, and higher asking prices by sellers.
‘Given the good property market performance, many sellers have raised their expectations and upped their asking prices, especially for properties with en bloc potential,’ said Ms Grace Ng, Colliers’ auctioneer and deputy managing director.
She added that these properties have also become less appealing, thanks to the newly announced rules governing collective sales, which will make it more difficult for developments to sell en bloc.
In addition, the ’stock market turmoil amid the US sub-prime woes’ has also contributed to the ’slowdown in the market, as buyers take a cautious stand’, Ms Ng said.
Only 10 properties were sold via auction in this year’s hungry ghost month, less than one-tenth of the 131 that were put up for sale in the period.
The properties that were sold fetched $9.56 million in all - a tiny fraction of the $133.86 million achieved in last year’s double hungry ghost month and ‘one of the lowest seen in the past 10 years’, Colliers added.
Although the hungry ghost month typically sees fewer property sales due to superstitious buyers and sellers, the firm said this is unlikely to be the reason for the plunge in auction sales of property.
Indeed, the number of properties put up for auction by their owners in the period surged to 88, the highest level in at least a decade.
On the other hand, the number of repossessed properties - traditionally the main source of supply for auction sales - fell to 43, down from 239 last year and the lowest level since 1998. This was largely due to the buoyant economy and climbing property prices, said Colliers.
All this shows that auction sales in the hungry ghost month were being moved more by market conditions than superstitious beliefs, the firm added.
But Ms Ng was quick to point out that the firm is still receiving plenty of inquiries about auction properties from potential buyers.
‘The inquiries are still there, but people are thinking twice before jumping in,’ she said. ‘They may be taking a step back and reassessing the prices.’
Colliers also noted that while auction sales may have plunged in the hungry ghost month, other segments of the property market appeared to still be going strong.
For instance, the total number of homes sold in the period is ’still at a very healthy level’, although it has been falling since May, the firm said.
Only $10.79 million of properties were sold under the hammer in the month, less than one-fifth of what was fetched in each of June and July, said property firm Colliers International, one of the biggest auctioneers here.
Since March, the value of properties sold via auction each month has ranged from $33 million to $108 million.
But this plunged last month, said Colliers, which released a report on auction sales yesterday.
In previous years, August has traditionally been a slow month for property sales due to the Hungry Ghost Festival.
But superstitious buyers were not the reason auction sales turned in an exceptionally poor showing in this year’s hungry ghost month, which stretched from Aug 13 to Monday.
Colliers said the nosedive in sales was mainly due to the recent stock market volatility caused by United States sub-prime mortgage worries, new government policies, and higher asking prices by sellers.
‘Given the good property market performance, many sellers have raised their expectations and upped their asking prices, especially for properties with en bloc potential,’ said Ms Grace Ng, Colliers’ auctioneer and deputy managing director.
She added that these properties have also become less appealing, thanks to the newly announced rules governing collective sales, which will make it more difficult for developments to sell en bloc.
In addition, the ’stock market turmoil amid the US sub-prime woes’ has also contributed to the ’slowdown in the market, as buyers take a cautious stand’, Ms Ng said.
Only 10 properties were sold via auction in this year’s hungry ghost month, less than one-tenth of the 131 that were put up for sale in the period.
The properties that were sold fetched $9.56 million in all - a tiny fraction of the $133.86 million achieved in last year’s double hungry ghost month and ‘one of the lowest seen in the past 10 years’, Colliers added.
Although the hungry ghost month typically sees fewer property sales due to superstitious buyers and sellers, the firm said this is unlikely to be the reason for the plunge in auction sales of property.
Indeed, the number of properties put up for auction by their owners in the period surged to 88, the highest level in at least a decade.
On the other hand, the number of repossessed properties - traditionally the main source of supply for auction sales - fell to 43, down from 239 last year and the lowest level since 1998. This was largely due to the buoyant economy and climbing property prices, said Colliers.
All this shows that auction sales in the hungry ghost month were being moved more by market conditions than superstitious beliefs, the firm added.
But Ms Ng was quick to point out that the firm is still receiving plenty of inquiries about auction properties from potential buyers.
‘The inquiries are still there, but people are thinking twice before jumping in,’ she said. ‘They may be taking a step back and reassessing the prices.’
Colliers also noted that while auction sales may have plunged in the hungry ghost month, other segments of the property market appeared to still be going strong.
For instance, the total number of homes sold in the period is ’still at a very healthy level’, although it has been falling since May, the firm said.
SALES of properties on auction here plummeted last month, in one of the first signs that the global credit crunch may be taking a toll on Singapore’s
SALES of properties on auction here plummeted last month, in one of the first signs that the global credit crunch may be taking a toll on Singapore’s property market.
Only $10.79 million of properties were sold under the hammer in the month, less than one-fifth of what was fetched in each of June and July, said property firm Colliers International, one of the biggest auctioneers here.
Since March, the value of properties sold via auction each month has ranged from $33 million to $108 million. But this plunged last month, said Colliers, which released a report on auction sales yesterday.
In previous years, August has traditionally been a slow month for property sales due to the Hungry Ghost Festival.
But superstitious buyers were not the reason auction sales turned in an exceptionally poor showing in this year’s hungry ghost month, which stretched from Aug 13 to Monday.
Colliers said the nosedive in sales was mainly due to the recent stock market volatility caused by United States sub-prime mortgage worries, new government policies, and higher asking prices by sellers.
‘Given the good property market performance, many sellers have raised their expectations and upped their asking prices, especially for properties with en bloc potential,’ said Ms Grace Ng, Colliers’ auctioneer and deputy managing director.
She added that these properties have also become less appealing, thanks to the newly announced rules governing collective sales, which will make it more difficult for developments to sell en bloc.
In addition, the ’stock market turmoil amid the US sub-prime woes’ has also contributed to the ’slowdown in the market, as buyers take a cautious stand’, Ms Ng said.
Only 10 properties were sold via auction in this year’s hungry ghost month, less than one-tenth of the 131 that were put up for sale in the period.
The properties that were sold fetched $9.56 million in all - a tiny fraction of the $133.86 million achieved in last year’s double hungry ghost month and ‘one of the lowest seen in the past 10 years’, Colliers added.
Although the hungry ghost month typically sees fewer property sales due to superstitious buyers and sellers, the firm said this is unlikely to be the reason for the plunge in auction sales of property.
Indeed, the number of properties put up for auction by their owners in the period surged to 88, the highest level in at least a decade.
On the other hand, the number of repossessed properties - traditionally the main source of supply for auction sales - fell to 43, down from 239 last year and the lowest level since 1998. This was largely due to the buoyant economy and climbing property prices, said Colliers.
All this shows that auction sales in the hungry ghost month were being moved more by market conditions than superstitious beliefs, the firm added.
But Ms Ng was quick to point out that the firm is still receiving plenty of inquiries about auction properties from potential buyers.
‘The inquiries are still there, but people are thinking twice before jumping in,’ she said. ‘They may be taking a step back and reassessing the prices.’
Colliers also noted that while auction sales may have plunged in the hungry ghost month, other segments of the property market appeared to still be going strong.
For instance, the total number of homes sold in the period is ’still at a very healthy level’, although it has been falling since May, the firm said.
Source : Straits Times - 12 Sept 2007
Only $10.79 million of properties were sold under the hammer in the month, less than one-fifth of what was fetched in each of June and July, said property firm Colliers International, one of the biggest auctioneers here.
Since March, the value of properties sold via auction each month has ranged from $33 million to $108 million. But this plunged last month, said Colliers, which released a report on auction sales yesterday.
In previous years, August has traditionally been a slow month for property sales due to the Hungry Ghost Festival.
But superstitious buyers were not the reason auction sales turned in an exceptionally poor showing in this year’s hungry ghost month, which stretched from Aug 13 to Monday.
Colliers said the nosedive in sales was mainly due to the recent stock market volatility caused by United States sub-prime mortgage worries, new government policies, and higher asking prices by sellers.
‘Given the good property market performance, many sellers have raised their expectations and upped their asking prices, especially for properties with en bloc potential,’ said Ms Grace Ng, Colliers’ auctioneer and deputy managing director.
She added that these properties have also become less appealing, thanks to the newly announced rules governing collective sales, which will make it more difficult for developments to sell en bloc.
In addition, the ’stock market turmoil amid the US sub-prime woes’ has also contributed to the ’slowdown in the market, as buyers take a cautious stand’, Ms Ng said.
Only 10 properties were sold via auction in this year’s hungry ghost month, less than one-tenth of the 131 that were put up for sale in the period.
The properties that were sold fetched $9.56 million in all - a tiny fraction of the $133.86 million achieved in last year’s double hungry ghost month and ‘one of the lowest seen in the past 10 years’, Colliers added.
Although the hungry ghost month typically sees fewer property sales due to superstitious buyers and sellers, the firm said this is unlikely to be the reason for the plunge in auction sales of property.
Indeed, the number of properties put up for auction by their owners in the period surged to 88, the highest level in at least a decade.
On the other hand, the number of repossessed properties - traditionally the main source of supply for auction sales - fell to 43, down from 239 last year and the lowest level since 1998. This was largely due to the buoyant economy and climbing property prices, said Colliers.
All this shows that auction sales in the hungry ghost month were being moved more by market conditions than superstitious beliefs, the firm added.
But Ms Ng was quick to point out that the firm is still receiving plenty of inquiries about auction properties from potential buyers.
‘The inquiries are still there, but people are thinking twice before jumping in,’ she said. ‘They may be taking a step back and reassessing the prices.’
Colliers also noted that while auction sales may have plunged in the hungry ghost month, other segments of the property market appeared to still be going strong.
For instance, the total number of homes sold in the period is ’still at a very healthy level’, although it has been falling since May, the firm said.
Source : Straits Times - 12 Sept 2007
Monday, July 2, 2007
The auction market here is being fuelled by the en bloc fever.
The auction market here is being fuelled by the en bloc fever.
Colliers International observed that the Singapore auction market has witnessed a burgeoning increase in the number of property owners choosing the auction route to sell properties with en bloc potential - a trend in tandem with the sizzling collective sale market. ‘Competitive bidding for properties with en bloc potential was seen among keen buyers, with final transacted price being 20-30 per cent above the opening price,’ said the property firm.
‘It is really an interesting phenomenon - we see a striking difference in the number of bidders present in the auction hall on the days when there are properties with en bloc potential being put up for sale, compared with those days when there are none,’ said Grace Ng, Colliers’ auctioneer. ‘The number of attendees jumps from the usual 100 to as many as 200 people, jam-packing the auction hall.’
Attendees comprise punters, ’specu-investors’, speculators, investors and home sellers/buyers alike, Ms Ng said.
Some examples of properties with en-bloc potential that were successfully sold at auctions include a unit in Watten Estate Condominium which was sold for $2.4 million, a residential unit in Lagoon View that went for $910,000 and a shop unit in Katong Shopping Centre which sold for $280,000.
The same trend can be expected for the second half of the year, Colliers said. ‘With the en bloc fever still running high, we can expect to see positive response for condominium and apartment units in the suburban areas from HDB upgraders and collective sale owners who are priced out of the prime areas, for the second half of this year,’ Ms Ng said. All this activity is adding to the robustness of the auction market. Colliers’ figures show that the total sale value of properties (owners’ sale and mortgagee sale) sold at auctions climbed 25 per cent to $263 million in the first half of 2007, up from $210.3 million in the second half of 2006.
Similarly, Knight Frank, which yesterday auctioned off a conservation bungalow at 781 Mountbatten Road for $13.95 million, said that the number and value of properties sold at auctions scaled new heights in the first half.
The firm estimates that with 132 properties sold in the first six months of the year, the number of properties sold rose by more than 36 per cent versus the second half of 2006.
It put total sales value for the first half of 2007 at about $286 million - also about 36 per cent higher than sales in the year ago period.
Going forward, the auction market will remain robust in the second half given the strong performance in the economy and property market as well as assurance from the government that it will not clamp down on the current buzzing property market, predicted Mary Sai, Knight Frank’s auctioneer. She expects a greater variety of properties will be offered at auctions in the coming months.
Source: The Business Times, 30 June 2007
Colliers International observed that the Singapore auction market has witnessed a burgeoning increase in the number of property owners choosing the auction route to sell properties with en bloc potential - a trend in tandem with the sizzling collective sale market. ‘Competitive bidding for properties with en bloc potential was seen among keen buyers, with final transacted price being 20-30 per cent above the opening price,’ said the property firm.
‘It is really an interesting phenomenon - we see a striking difference in the number of bidders present in the auction hall on the days when there are properties with en bloc potential being put up for sale, compared with those days when there are none,’ said Grace Ng, Colliers’ auctioneer. ‘The number of attendees jumps from the usual 100 to as many as 200 people, jam-packing the auction hall.’
Attendees comprise punters, ’specu-investors’, speculators, investors and home sellers/buyers alike, Ms Ng said.
Some examples of properties with en-bloc potential that were successfully sold at auctions include a unit in Watten Estate Condominium which was sold for $2.4 million, a residential unit in Lagoon View that went for $910,000 and a shop unit in Katong Shopping Centre which sold for $280,000.
The same trend can be expected for the second half of the year, Colliers said. ‘With the en bloc fever still running high, we can expect to see positive response for condominium and apartment units in the suburban areas from HDB upgraders and collective sale owners who are priced out of the prime areas, for the second half of this year,’ Ms Ng said. All this activity is adding to the robustness of the auction market. Colliers’ figures show that the total sale value of properties (owners’ sale and mortgagee sale) sold at auctions climbed 25 per cent to $263 million in the first half of 2007, up from $210.3 million in the second half of 2006.
Similarly, Knight Frank, which yesterday auctioned off a conservation bungalow at 781 Mountbatten Road for $13.95 million, said that the number and value of properties sold at auctions scaled new heights in the first half.
The firm estimates that with 132 properties sold in the first six months of the year, the number of properties sold rose by more than 36 per cent versus the second half of 2006.
It put total sales value for the first half of 2007 at about $286 million - also about 36 per cent higher than sales in the year ago period.
Going forward, the auction market will remain robust in the second half given the strong performance in the economy and property market as well as assurance from the government that it will not clamp down on the current buzzing property market, predicted Mary Sai, Knight Frank’s auctioneer. She expects a greater variety of properties will be offered at auctions in the coming months.
Source: The Business Times, 30 June 2007
Wednesday, June 27, 2007
Simon Cheong yesterday bought a freehold bungalow at Garlick Avenue for $7 million at auction
SC Global Developments boss Simon Cheong yesterday bought a freehold bungalow at Garlick Avenue for $7 million at auction, BT understands.
The price for 70 Garlick Avenue works out to $769 psf, based on the 9,100 sq ft of land. Bidding opened at $6.8 million and the property drew three would-be buyers.
The property is within an area zoned for Good Class Bungalow (GCB) use although its plot size is significantly shy of the minimum 1,400 sq metres (about 15,069 sq ft) required for a GCB.
There is a renovated, single-storey detached house in fairly good condition on the site, which was put up for auction by its mortgagee bank. The auction was conducted at Amara Hotel yesterday by DTZ Debenham Tie Leung.
Three other properties also changed hands at the auction. One was a three-bedroom apartment on the sixth storey of the freehold Avalon development at Anderson Road, which was sold by its owner for $2.7 million or $1,707 psf based on its strata area of 1,582 sq ft. A freehold maisonette at 104A Owen Road, near Farrer Park MRT Station, sold for $811,000 or $457 psf based on its strata area of 1,776 sq ft.
A single-storey, freehold terrace house at 27 Casuarina Road off Upper Thomson Road fetched $700,000 or $467 psf based on its land area of 1,500 sq ft. The Owen Road and Casuarina Road properties were mortgagee sales.
A three-bedroom apartment at the freehold Eunos Mansion at Jalan Eunos which had been put up for auction by its mortgagee bank was withdrawn from sale yesterday morning on speculation that a collective sale could be in the works at the estate, which could result in the unit fetching a higher price, BT understands.
Source: The Business Times, 27 June 2007
The price for 70 Garlick Avenue works out to $769 psf, based on the 9,100 sq ft of land. Bidding opened at $6.8 million and the property drew three would-be buyers.
The property is within an area zoned for Good Class Bungalow (GCB) use although its plot size is significantly shy of the minimum 1,400 sq metres (about 15,069 sq ft) required for a GCB.
There is a renovated, single-storey detached house in fairly good condition on the site, which was put up for auction by its mortgagee bank. The auction was conducted at Amara Hotel yesterday by DTZ Debenham Tie Leung.
Three other properties also changed hands at the auction. One was a three-bedroom apartment on the sixth storey of the freehold Avalon development at Anderson Road, which was sold by its owner for $2.7 million or $1,707 psf based on its strata area of 1,582 sq ft. A freehold maisonette at 104A Owen Road, near Farrer Park MRT Station, sold for $811,000 or $457 psf based on its strata area of 1,776 sq ft.
A single-storey, freehold terrace house at 27 Casuarina Road off Upper Thomson Road fetched $700,000 or $467 psf based on its land area of 1,500 sq ft. The Owen Road and Casuarina Road properties were mortgagee sales.
A three-bedroom apartment at the freehold Eunos Mansion at Jalan Eunos which had been put up for auction by its mortgagee bank was withdrawn from sale yesterday morning on speculation that a collective sale could be in the works at the estate, which could result in the unit fetching a higher price, BT understands.
Source: The Business Times, 27 June 2007
Tuesday, April 24, 2007
Two Housing & Development Board (HDB) residential sites on the government’s reserve list have attracted minimum committed bids and will now go on sale by public tender.
A 235,897.3-square-foot site at Bishan Street 22/25 - with a plot ratio of 3.5 - has drawn a minimum committed bid of $194 million or $235 per square foot per plot ratio (psf ppr).
And a 124,876.3-sq-ft site at Dakota Crescent, Geylang S5 - with plot ratio of 3.5 - has drawn a minimum committed bid of $115.8 million or $265 psf ppr. When the sites are eventually awarded, they will be the first solely private residential sites sold since April 2002 when NTUC Choice Homes and Chip Eng Leong Enterprise won the tender for a site in Ang Mo Kio for $244 psf ppr. NTUC Choice Homes did win an HDB commercial/residential site next to Yew Tee MRT Station for $308 psf ppr in September 2005, while a Guthrie-Lee Kim Tah-TMW consortium won an HDB commercial/residential site at Jurong West for $329 psf per two months earlier.
Colliers International director for investment sales Ho Eng Joo reckons projects on the two latest sites will attract HDB upgraders rather than investors.
He estimates the Bishan site could go for $260-$290 psf ppr and the Dakota Crescent site could fetch a higher $300-$350 psf ppr because it is nearer the city.
He sees breakeven cost will at more than $500 psf and $600 psf respectively.
Savills Research estimates the Bishan Street 22/25 site could go for $300-$400 psf ppr or $248 million-$330 million and the Dakota Crescent site for $275-$350 psf ppr or $120-$153 million.
Savills executive director (residential) David Neubronner said the Bishan site, close to several good schools and facing Bishan Park, could attract developers like NTUC Choice Homes, Far East Organization and Wing Tai, while the Dakota Crescent site, which is on the fringe of prime areas in eastern Singapore, could attract the likes of CapitaLand, Guocoland, Hong Leong and Far East Organization.
‘We would also not be surprised if they team up like what we saw happening at Casa Merah,’ Mr Neubronner said.
He also thinks that it is possible the same developer triggered the sale of both sites.
Savills expects prices of mass-market condominiums to rise 8-10 per cent this year.
Source: The Business Times, 24 April 2007
A 235,897.3-square-foot site at Bishan Street 22/25 - with a plot ratio of 3.5 - has drawn a minimum committed bid of $194 million or $235 per square foot per plot ratio (psf ppr).
And a 124,876.3-sq-ft site at Dakota Crescent, Geylang S5 - with plot ratio of 3.5 - has drawn a minimum committed bid of $115.8 million or $265 psf ppr. When the sites are eventually awarded, they will be the first solely private residential sites sold since April 2002 when NTUC Choice Homes and Chip Eng Leong Enterprise won the tender for a site in Ang Mo Kio for $244 psf ppr. NTUC Choice Homes did win an HDB commercial/residential site next to Yew Tee MRT Station for $308 psf ppr in September 2005, while a Guthrie-Lee Kim Tah-TMW consortium won an HDB commercial/residential site at Jurong West for $329 psf per two months earlier.
Colliers International director for investment sales Ho Eng Joo reckons projects on the two latest sites will attract HDB upgraders rather than investors.
He estimates the Bishan site could go for $260-$290 psf ppr and the Dakota Crescent site could fetch a higher $300-$350 psf ppr because it is nearer the city.
He sees breakeven cost will at more than $500 psf and $600 psf respectively.
Savills Research estimates the Bishan Street 22/25 site could go for $300-$400 psf ppr or $248 million-$330 million and the Dakota Crescent site for $275-$350 psf ppr or $120-$153 million.
Savills executive director (residential) David Neubronner said the Bishan site, close to several good schools and facing Bishan Park, could attract developers like NTUC Choice Homes, Far East Organization and Wing Tai, while the Dakota Crescent site, which is on the fringe of prime areas in eastern Singapore, could attract the likes of CapitaLand, Guocoland, Hong Leong and Far East Organization.
‘We would also not be surprised if they team up like what we saw happening at Casa Merah,’ Mr Neubronner said.
He also thinks that it is possible the same developer triggered the sale of both sites.
Savills expects prices of mass-market condominiums to rise 8-10 per cent this year.
Source: The Business Times, 24 April 2007
Wednesday, April 18, 2007
Aura Park, a 20-year-old residential development on Holland Road, is for sale by tender.
Aura Park, a 20-year-old residential development on Holland Road, is for sale by tender. The 35,724 sq ft site, with a 1.4 plot ratio, has an indicative price of $55 million or $1,100 psf ppr, including a development charge of about $8.5 million.
Savills Singapore, which is marketing the site, estimates the breakeven price for a new project at $1,550-$1,650 psf, depend on positioning. ‘The site is near the Holland Park Good Class Bungalow (GCB) area, so one can capitalise on that to develop luxurious apartments with unblocked panoramic views of the estate,’ said Savills director of investment Steven Ming. Based on the permissible gross floor area of about 50,000 sq ft, a development of 28 units of about 1,800 sq ft each can be built.
On the other side of Holland Road, 12 units at the 34-unit Botanika were sold by auction for $1,710-$2,420 psf this month.
The average price was reported to be $2,040 psf. It is understood that Botanika is fully sold.
Source: The Business Times, 19 April 2007
Savills Singapore, which is marketing the site, estimates the breakeven price for a new project at $1,550-$1,650 psf, depend on positioning. ‘The site is near the Holland Park Good Class Bungalow (GCB) area, so one can capitalise on that to develop luxurious apartments with unblocked panoramic views of the estate,’ said Savills director of investment Steven Ming. Based on the permissible gross floor area of about 50,000 sq ft, a development of 28 units of about 1,800 sq ft each can be built.
On the other side of Holland Road, 12 units at the 34-unit Botanika were sold by auction for $1,710-$2,420 psf this month.
The average price was reported to be $2,040 psf. It is understood that Botanika is fully sold.
Source: The Business Times, 19 April 2007
'Hotspot' auction nets no sale
'Hotspot' auction nets no sale
By KALPANA RASHIWALA
NOT a single property sold yesterday at a highly touted auction for owner-sales of apartments in the hot spots of Marina Bay/CBD and Sentosa Cove.
Twenty-one properties were offered. And in most cases the opening prices sought by the auctioneers were not even met. In a few cases there were some bids, but these were below the owners' reserve prices.
However, CKS Property Consultants, which conducted the auction, is unfazed by the result and confident of selling the properties post-auction through private treaty deals.
CKS spokeswoman Valerie Ho attributed the poor response at yesterday's auction to bidder shyness. 'Bidders were predominantly local and they may still not be used to the idea of buying a home at an auction,' she said. 'And this is the first attempt to have an auction featuring solely properties put up for sale by owners.
'There has been a lot of interest after the auction. We expect a lot of negotiations and transactions over the weekend for this batch of properties. We also have a few potential buyers from Indonesia who are coming to our office next week for discussions.'
Ms Ho reckons the asking prices set by owners are reasonable.
A long-time market watcher who attended yesterday's auction generally agreed, pointing for instance to the $1.3 million or $1,050 psf opening price sought for a 40th floor two-bedroom unit with a study/loft at Icon at Tanjong Pagar, and the $2.5 million ($1,408 psf) opening asking price for a three-bedroom, 12th floor unit at The Oceanfront @ Sentosa Cove. 'The thing to remember is that these are all sub-sale properties and usually their asking prices are lower than what is being charged by developers for newer project launches in the location,' the market watcher said.
'But the problem right now is that there are so many sub-sale units in these so called hot-spot locations that, frankly, you can easily pick one up from the classifieds. No need to come to an auction looking for such units - unless the pricing or facing is very attractive.'
Also, from a potential buyer's perspective there is a disincentive in buying in the sub-sale market as developers will not extend deferred payment schemes they may have given to initial buyers to sub-sale buyers, the market watcher added.
Properties on offer yesterday included the entire 57th floor, comprising seven apartments, at The Sail @ Marina Bay Tower 2.
The auctioneer's opening asking price was $10 million but there were no takers.
Three units at One Shenton were also offered.
By KALPANA RASHIWALA
NOT a single property sold yesterday at a highly touted auction for owner-sales of apartments in the hot spots of Marina Bay/CBD and Sentosa Cove.
Twenty-one properties were offered. And in most cases the opening prices sought by the auctioneers were not even met. In a few cases there were some bids, but these were below the owners' reserve prices.
However, CKS Property Consultants, which conducted the auction, is unfazed by the result and confident of selling the properties post-auction through private treaty deals.
CKS spokeswoman Valerie Ho attributed the poor response at yesterday's auction to bidder shyness. 'Bidders were predominantly local and they may still not be used to the idea of buying a home at an auction,' she said. 'And this is the first attempt to have an auction featuring solely properties put up for sale by owners.
'There has been a lot of interest after the auction. We expect a lot of negotiations and transactions over the weekend for this batch of properties. We also have a few potential buyers from Indonesia who are coming to our office next week for discussions.'
Ms Ho reckons the asking prices set by owners are reasonable.
A long-time market watcher who attended yesterday's auction generally agreed, pointing for instance to the $1.3 million or $1,050 psf opening price sought for a 40th floor two-bedroom unit with a study/loft at Icon at Tanjong Pagar, and the $2.5 million ($1,408 psf) opening asking price for a three-bedroom, 12th floor unit at The Oceanfront @ Sentosa Cove. 'The thing to remember is that these are all sub-sale properties and usually their asking prices are lower than what is being charged by developers for newer project launches in the location,' the market watcher said.
'But the problem right now is that there are so many sub-sale units in these so called hot-spot locations that, frankly, you can easily pick one up from the classifieds. No need to come to an auction looking for such units - unless the pricing or facing is very attractive.'
Also, from a potential buyer's perspective there is a disincentive in buying in the sub-sale market as developers will not extend deferred payment schemes they may have given to initial buyers to sub-sale buyers, the market watcher added.
Properties on offer yesterday included the entire 57th floor, comprising seven apartments, at The Sail @ Marina Bay Tower 2.
The auctioneer's opening asking price was $10 million but there were no takers.
Three units at One Shenton were also offered.
Tuesday, April 17, 2007
Penthouse at The Boulevard Residence may set new benchmark
Market-watchers are expecting to see fierce bidding for a high-end luxurious penthouse near
Orchard Road
.
The unit at The Boulevard Residence is scheduled to be up for auction next month.
It is the last of only two super penthouse units at the premium freehold project developed by SC Global Developments and Guocoland.
The auction is by invitation only and will be jointly conducted by Christie’s Great Estates exclusive affiliate Ken Jacobs and Colliers International.
According to some estimates, the price could reach some S$5,000 per square foot, which translates to S$35 million for the unit.
The 7,000 square feet penthouse sits at the top of a 36-storey building and boasts a 360-degree panoramic view of
Singapore.
It comes with a private 11-metre lap pool overlooking the city skyline and an open rooftop terrace garden.
Source: Channel NewsAsia, 17 April 2007
Orchard Road
.
The unit at The Boulevard Residence is scheduled to be up for auction next month.
It is the last of only two super penthouse units at the premium freehold project developed by SC Global Developments and Guocoland.
The auction is by invitation only and will be jointly conducted by Christie’s Great Estates exclusive affiliate Ken Jacobs and Colliers International.
According to some estimates, the price could reach some S$5,000 per square foot, which translates to S$35 million for the unit.
The 7,000 square feet penthouse sits at the top of a 36-storey building and boasts a 360-degree panoramic view of
Singapore.
It comes with a private 11-metre lap pool overlooking the city skyline and an open rooftop terrace garden.
Source: Channel NewsAsia, 17 April 2007
Friday, April 13, 2007
Not a single property sold yesterday at a highly touted auction
Not a single property sold yesterday at a highly touted auction for owner-sales of apartments in the hot spots of Marina Bay/CBD and Sentosa Cove.
Twenty-one properties were offered. And in most cases the opening prices sought by the auctioneers were not even met. In a few cases there were some bids, but these were below the owners’ reserve prices.
However, CKS Property Consultants, which conducted the auction, is unfazed by the result and confident of selling the properties post-auction through private treaty deals.
CKS spokeswoman Valerie Ho attributed the poor response at yesterday’s auction to bidder shyness. ‘Bidders were predominantly local and they may still not be used to the idea of buying a home at an auction,’ she said. ‘And this is the first attempt to have an auction featuring solely properties put up for sale by owners.
‘There has been a lot of interest after the auction. We expect a lot of negotiations and transactions over the weekend for this batch of properties. We also have a few potential buyers from Indonesia who are coming to our office next week for discussions.’
Ms Ho reckons the asking prices set by owners are reasonable.
A long-time market watcher who attended yesterday’s auction generally agreed, pointing for instance to the $1.3 million or $1,050 psf opening price sought for a 40th floor two-bedroom unit with a study/loft at Icon at Tanjong Pagar, and the $2.5 million ($1,408 psf) opening asking price for a three-bedroom, 12th floor unit at The Oceanfront @ Sentosa Cove. ‘The thing to remember is that these are all sub-sale properties and usually their asking prices are lower than what is being charged by developers for newer project launches in the location,’ the market watcher said.
‘But the problem right now is that there are so many sub-sale units in these so called hot-spot locations that, frankly, you can easily pick one up from the classifieds. No need to come to an auction looking for such units - unless the pricing or facing is very attractive.’
Also, from a potential buyer’s perspective there is a disincentive in buying in the sub-sale market as developers will not extend deferred payment schemes they may have given to initial buyers to sub-sale buyers, the market watcher added.
Properties on offer yesterday included the entire 57th floor, comprising seven apartments, at The Sail @ Marina Bay Tower 2.
The auctioneer’s opening asking price was $10 million but there were no takers.
Three units at One Shenton were also offered.
Source: The Business Times, 13 April 2007
Twenty-one properties were offered. And in most cases the opening prices sought by the auctioneers were not even met. In a few cases there were some bids, but these were below the owners’ reserve prices.
However, CKS Property Consultants, which conducted the auction, is unfazed by the result and confident of selling the properties post-auction through private treaty deals.
CKS spokeswoman Valerie Ho attributed the poor response at yesterday’s auction to bidder shyness. ‘Bidders were predominantly local and they may still not be used to the idea of buying a home at an auction,’ she said. ‘And this is the first attempt to have an auction featuring solely properties put up for sale by owners.
‘There has been a lot of interest after the auction. We expect a lot of negotiations and transactions over the weekend for this batch of properties. We also have a few potential buyers from Indonesia who are coming to our office next week for discussions.’
Ms Ho reckons the asking prices set by owners are reasonable.
A long-time market watcher who attended yesterday’s auction generally agreed, pointing for instance to the $1.3 million or $1,050 psf opening price sought for a 40th floor two-bedroom unit with a study/loft at Icon at Tanjong Pagar, and the $2.5 million ($1,408 psf) opening asking price for a three-bedroom, 12th floor unit at The Oceanfront @ Sentosa Cove. ‘The thing to remember is that these are all sub-sale properties and usually their asking prices are lower than what is being charged by developers for newer project launches in the location,’ the market watcher said.
‘But the problem right now is that there are so many sub-sale units in these so called hot-spot locations that, frankly, you can easily pick one up from the classifieds. No need to come to an auction looking for such units - unless the pricing or facing is very attractive.’
Also, from a potential buyer’s perspective there is a disincentive in buying in the sub-sale market as developers will not extend deferred payment schemes they may have given to initial buyers to sub-sale buyers, the market watcher added.
Properties on offer yesterday included the entire 57th floor, comprising seven apartments, at The Sail @ Marina Bay Tower 2.
The auctioneer’s opening asking price was $10 million but there were no takers.
Three units at One Shenton were also offered.
Source: The Business Times, 13 April 2007
Thursday, April 5, 2007
Home sellers hope for bigger profits via auctions
Auctions are gradually shredding the stigma of being associated with morgtgagee sales, says property agency CKS. It is arranging an auction next week for eight homes in high-end projects such as Icon.
A small group of home owners are putting their luxury apartments up for auction, but not because they cannot afford them.
These sellers are hoping a bidding war will yield higher profits for their homes than if they go down the normal sales routes.
Eight homes go under the hammer next Thursday. All are in popular projects - The Sail @ Marina Bay, The Oceanfront and The Coast at Sentosa Cove, Caribbean at Keppel Bay and Icon at Tanjong Pagar - where several units have already changed hands.
All the condos are 99-year leasehold and are not yet ready for occupation.
These home sellers are the clients of property agency CKS Property Consultants, which hit on the idea of using an auction as a sales channel.
CKS said yesterday that this would be one of the first auctions in Singapore comprising only owners’ properties.
Usually, property auctions here are conducted regularly by bigger property firms and include both owners’ properties as well as repossessed assets.
But CKS believes that auctions are gradually shedding the stigma of being associated with mortgagee sales.
‘More Singaporeans are eager to utilise the mode of auction to fetch lucrative prices for their properties,’ it said in a statement.
Its clients see this auction as the best way to take advantage of the booming demand for high-end property, the agency added.
‘Though many of them have already attracted offers via open listings, they want to generate wider exposure for their properties so as to capture the highest, most competitive price possible,’ CKS told The Straits Times.
The agency will absorb the administrative fees of the auction, which amounts to $1,000 for each property.
The auction, which will be called ‘hot spots’, will be held next Thursday at 2.30pm on Level 6 of Raffles City Tower.
CKS is not the first to jump on the auction bandwagon.
Property auctioneers have been seeing an increasing number of owners’ sales, as more sellers turn to auctions as an alternative sales method for luxury homes.
Last weekend, developer Tuan Sing Holdings held the first auction of uncompleted condo units in Singapore.
It put 12 units at its high-end Botanika in Holland Road on offer and sold them all at prices within its expectations.
While the units fetched benchmark prices of up to $2,400 per sq ft, reports said the bidding was slow-going, partly because of the high value of the properties.
But while the Botanika auction was open only to invited bidders, the ‘hot spots’ auction is welcoming all interested buyers and investors.
Source: The Straits Times, 05 April 2007
A small group of home owners are putting their luxury apartments up for auction, but not because they cannot afford them.
These sellers are hoping a bidding war will yield higher profits for their homes than if they go down the normal sales routes.
Eight homes go under the hammer next Thursday. All are in popular projects - The Sail @ Marina Bay, The Oceanfront and The Coast at Sentosa Cove, Caribbean at Keppel Bay and Icon at Tanjong Pagar - where several units have already changed hands.
All the condos are 99-year leasehold and are not yet ready for occupation.
These home sellers are the clients of property agency CKS Property Consultants, which hit on the idea of using an auction as a sales channel.
CKS said yesterday that this would be one of the first auctions in Singapore comprising only owners’ properties.
Usually, property auctions here are conducted regularly by bigger property firms and include both owners’ properties as well as repossessed assets.
But CKS believes that auctions are gradually shedding the stigma of being associated with mortgagee sales.
‘More Singaporeans are eager to utilise the mode of auction to fetch lucrative prices for their properties,’ it said in a statement.
Its clients see this auction as the best way to take advantage of the booming demand for high-end property, the agency added.
‘Though many of them have already attracted offers via open listings, they want to generate wider exposure for their properties so as to capture the highest, most competitive price possible,’ CKS told The Straits Times.
The agency will absorb the administrative fees of the auction, which amounts to $1,000 for each property.
The auction, which will be called ‘hot spots’, will be held next Thursday at 2.30pm on Level 6 of Raffles City Tower.
CKS is not the first to jump on the auction bandwagon.
Property auctioneers have been seeing an increasing number of owners’ sales, as more sellers turn to auctions as an alternative sales method for luxury homes.
Last weekend, developer Tuan Sing Holdings held the first auction of uncompleted condo units in Singapore.
It put 12 units at its high-end Botanika in Holland Road on offer and sold them all at prices within its expectations.
While the units fetched benchmark prices of up to $2,400 per sq ft, reports said the bidding was slow-going, partly because of the high value of the properties.
But while the Botanika auction was open only to invited bidders, the ‘hot spots’ auction is welcoming all interested buyers and investors.
Source: The Straits Times, 05 April 2007
Tuesday, April 3, 2007
12 Botanika units sold at weekend auction
12 Botanika units sold at weekend auction
Prices range from $1,710 to $2,420 psf; but sources say bidding is slow
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TWELVE units at Tuan Sing's freehold Botanika development in Holland Road were sold at a Colliers International and Christie's Great Estates auction during the weekend, at prices ranging from $1,710 per square foot to $2,420 psf. The average price achieved was $2,040 psf.
Good prices: The auction units at Botanika fetched $3.05 million to $5.63 million
In absolute price terms, the units fetched about $3.05 million to $5.63 million.
While this sounds impressive, sources told BT the bidding was slow and that at times, the auctioneers seemed to be struggling to achieve the reserve prices.
Contacted yesterday, Colliers auctioneer Grace Ng, who is also the firm's deputy managing director (agency and business services), acknowledged that 'the pace of bidding was slower than usual'.
'Because of the high value of the properties, bidders hence took a longer time to think,' she said. Each property drew two to four bids.
The slow pace of bidding may also have been because Tuan Sing tried to weed out potential speculators by stating clearly in the term sheet that no reassignment of options would be allowed.
'Speculators who make private arrangements to reassign options - although this is against the law - are basically trying to save on the stamp duty payment,' said a market watcher.
The successful bidders for the apartments were predominantly foreigners, including permanent residents - from Australia, the US, Hong Kong, India, Indonesia and Malaysia. Only one or two Singaporeans are said to have been buyers. In all, there were 11 buyers for the 12 units on offer. One buyer picked up two units.
The 12 units include four combined units - that is, two apartments combined into one. Hence in all, Tuan Sing sold 16 strata units at the auction. This, combined with 18 units the listed developer sold through private previews earlier, means the 34-unit project is now fully sold.
The four-storey development, which has an attic and a basement carpark, is likely to be completed next year. It was designed by Chan Soo Kian of SCDA Architects.
The auction, at Goodwood Park Hotel on Saturday afternoon, was open only to invited bidders. It drew close to 200 people, according to Colliers, which conducted the auction jointly with Christie's Great Estates exclusive affiliate, Ken Jacobs.
The lowest per square foot price at the auction - $1,710 psf - was for a 3,294 sq ft combined unit on the ground floor. The highest - $2,420 psf - was for a penthouse.
'This is the first time an auction has been held for an uncompleted development. The winning bids exceeded our initial price expectations,' said Colliers' Ms Ng.
Prices range from $1,710 to $2,420 psf; but sources say bidding is slow
Email this article
Print article
Feedback
TWELVE units at Tuan Sing's freehold Botanika development in Holland Road were sold at a Colliers International and Christie's Great Estates auction during the weekend, at prices ranging from $1,710 per square foot to $2,420 psf. The average price achieved was $2,040 psf.
Good prices: The auction units at Botanika fetched $3.05 million to $5.63 million
In absolute price terms, the units fetched about $3.05 million to $5.63 million.
While this sounds impressive, sources told BT the bidding was slow and that at times, the auctioneers seemed to be struggling to achieve the reserve prices.
Contacted yesterday, Colliers auctioneer Grace Ng, who is also the firm's deputy managing director (agency and business services), acknowledged that 'the pace of bidding was slower than usual'.
'Because of the high value of the properties, bidders hence took a longer time to think,' she said. Each property drew two to four bids.
The slow pace of bidding may also have been because Tuan Sing tried to weed out potential speculators by stating clearly in the term sheet that no reassignment of options would be allowed.
'Speculators who make private arrangements to reassign options - although this is against the law - are basically trying to save on the stamp duty payment,' said a market watcher.
The successful bidders for the apartments were predominantly foreigners, including permanent residents - from Australia, the US, Hong Kong, India, Indonesia and Malaysia. Only one or two Singaporeans are said to have been buyers. In all, there were 11 buyers for the 12 units on offer. One buyer picked up two units.
The 12 units include four combined units - that is, two apartments combined into one. Hence in all, Tuan Sing sold 16 strata units at the auction. This, combined with 18 units the listed developer sold through private previews earlier, means the 34-unit project is now fully sold.
The four-storey development, which has an attic and a basement carpark, is likely to be completed next year. It was designed by Chan Soo Kian of SCDA Architects.
The auction, at Goodwood Park Hotel on Saturday afternoon, was open only to invited bidders. It drew close to 200 people, according to Colliers, which conducted the auction jointly with Christie's Great Estates exclusive affiliate, Ken Jacobs.
The lowest per square foot price at the auction - $1,710 psf - was for a 3,294 sq ft combined unit on the ground floor. The highest - $2,420 psf - was for a penthouse.
'This is the first time an auction has been held for an uncompleted development. The winning bids exceeded our initial price expectations,' said Colliers' Ms Ng.
Sunday, April 1, 2007
Heartland Mall’s 4th floor sold for $8.5m at auction
The fourth level of Heartland Mall near Kovan MRT Station was sold for $8.5 million on Thursday at a DTZ Debenham Tie Leung auction. According to some auction regulars present, the buyers are believed to be members of the Cheong family who developed International Plaza on Anson Road and who still have some units there.
The family members are believed to be cousins of Simon Cheong of SC Global Developments fame. The other star attraction at the auction - Jurong Reptile Park - was withdrawn after receiving a top offer of $860,000. But immediately after the auction, an individual is said to have made an offer of over $1 million and negotiations are expected to take place. The investor is expected to continue leasing out the retail outlets at the park. However, he may remove the reptiles and introduce some new sports and recreational attraction.
The 206,304-square-foot site has a remaining lease of about nine years. The park - formerly known as Jurong Crocodile Paradise - drew four bidders. The opening price of $1.8 million sought by DTZ auctioneer Shaun Poh found no takers. Instead, there was a counter offer by a bidder at $600,000, and bidding continued until it reached a high of $860,000, at which point the property was withdrawn.
The property was put up for sale by liquidator Stone Forest Corporate Advisory Pte Ltd.
The fourth floor of Heartland Mall drew just one bid - of $8.5 million - from the Cheong family. But that was good enough for seller Wang Lei Investment, understood to be linked to the company that owns karaoke chain Kbox. The space comprises six units adding up to 21,131 square feet of lettable area. Five of the units are leased until August 2012 to private schools, at a combined monthly rental of about $67,200. This reflects a net yield of just over 8 per cent. The four-storey mall stands on a site with a remaining lease of 76 years.
Wang Lei bought the six units for $6.8 million from mortgagee Maybank last year.
Source: The Business Times, 31 March 2007
The family members are believed to be cousins of Simon Cheong of SC Global Developments fame. The other star attraction at the auction - Jurong Reptile Park - was withdrawn after receiving a top offer of $860,000. But immediately after the auction, an individual is said to have made an offer of over $1 million and negotiations are expected to take place. The investor is expected to continue leasing out the retail outlets at the park. However, he may remove the reptiles and introduce some new sports and recreational attraction.
The 206,304-square-foot site has a remaining lease of about nine years. The park - formerly known as Jurong Crocodile Paradise - drew four bidders. The opening price of $1.8 million sought by DTZ auctioneer Shaun Poh found no takers. Instead, there was a counter offer by a bidder at $600,000, and bidding continued until it reached a high of $860,000, at which point the property was withdrawn.
The property was put up for sale by liquidator Stone Forest Corporate Advisory Pte Ltd.
The fourth floor of Heartland Mall drew just one bid - of $8.5 million - from the Cheong family. But that was good enough for seller Wang Lei Investment, understood to be linked to the company that owns karaoke chain Kbox. The space comprises six units adding up to 21,131 square feet of lettable area. Five of the units are leased until August 2012 to private schools, at a combined monthly rental of about $67,200. This reflects a net yield of just over 8 per cent. The four-storey mall stands on a site with a remaining lease of 76 years.
Wang Lei bought the six units for $6.8 million from mortgagee Maybank last year.
Source: The Business Times, 31 March 2007
Tuesday, January 2, 2007
Jurong Reptile Park put on the block again
Fourth floor of Heartland Mall also up for auction next week
Business Times
By KALPANA RASHIWALA
JURONG Reptile Park is back on the auction block, this time as a liquidator’s sale. Also in the line-up for DTZ Debenham Tie Leung’s auction on March 29 is the fourth floor of Heartland Mall near Kovan MRT Station.
The strongest contender for Heartland Mall’s fourth level would be a Lend Lease managed fund-Guthrie tie-up.
DTZ said the indicative price for Jurong Reptile Park - which is on a 206,304 sq ft site with a remaining lease of about nine years - is about $2 million to $2.2 million. The attraction, formerly known as Jurong Crocodile Paradise, is a two-storey property.
Jurong Bird Park, which is understood to have been interested in the property when it went under the hammer five years ago, could be interested again, say market watchers.
After all, the two parks are just a stone’s throw away from each other, and even share a car park, allowing Jurong Bird Park to tap synergies from the two properties.
The site is zoned for ‘Sports & Recreation’ use, according to DTZ. The property is being put up for sale by liquidator Stone Forest Corporate Advisory Pte Ltd. It was formerly owned by ‘Geylang King’ Eric Tan, before mortgagee United Overseas Bank took over the asset. UOB tried in vain to sell the property during a 2002 auction.
The park was once famous for its crocodiles, but today the only reptiles there are some iguanas and snakes. Existing tenants - which include a KTV lounge, eateries and a beer garden - pay a total rental of almost $27,000 a month, not much more than the monthly ground rent of about $20,000 payable to JTC Corp.
‘Clearly, potential bidders will be looking at a major revamp, to make their investment profitable,’ says DTZ auctioneer and director Shaun Poh.
Over in Hougang, the strongest contender for Heartland Mall’s fourth level, market watchers reckon, would be the tie-up between a Lend Lease managed fund and Guthrie that owns the lower three floors of the mall, which stands on a site with a remaining lease of 76 years.
The fourth level space is being sold by owner Wang Lei Investment, understood to be linked to the company that owns karaoke chain Kbox.
The space comprises six units adding up to 21,131 sq ft of lettable area. Five of the units are currently leased to private schools. The sixth is vacant.
Wang Lei bought the six units for $6.8 million from mortgagee Maybank last year. It is understood to have upped rents of the tenants and extended their leases to August 2012. The monthly rental collection for the five leased units is about $67,200. The properties are being sold with existing tenancies.
The $9.5-9.8 million asking price reflects a property yield of about 7.4-7.6 per cent.
DTZ’s auction will begin at 2.30 pm next Thursday at Amara Hotel.
Meanwhile, the former factory building of Asia Pulp & Paper at 118, Pioneer Road was withdrawn from a Knight Frank auction yesterday after the company settled outstanding property tax owed to the Inland Revenue Authority of Singapore.
Business Times
By KALPANA RASHIWALA
JURONG Reptile Park is back on the auction block, this time as a liquidator’s sale. Also in the line-up for DTZ Debenham Tie Leung’s auction on March 29 is the fourth floor of Heartland Mall near Kovan MRT Station.
The strongest contender for Heartland Mall’s fourth level would be a Lend Lease managed fund-Guthrie tie-up.
DTZ said the indicative price for Jurong Reptile Park - which is on a 206,304 sq ft site with a remaining lease of about nine years - is about $2 million to $2.2 million. The attraction, formerly known as Jurong Crocodile Paradise, is a two-storey property.
Jurong Bird Park, which is understood to have been interested in the property when it went under the hammer five years ago, could be interested again, say market watchers.
After all, the two parks are just a stone’s throw away from each other, and even share a car park, allowing Jurong Bird Park to tap synergies from the two properties.
The site is zoned for ‘Sports & Recreation’ use, according to DTZ. The property is being put up for sale by liquidator Stone Forest Corporate Advisory Pte Ltd. It was formerly owned by ‘Geylang King’ Eric Tan, before mortgagee United Overseas Bank took over the asset. UOB tried in vain to sell the property during a 2002 auction.
The park was once famous for its crocodiles, but today the only reptiles there are some iguanas and snakes. Existing tenants - which include a KTV lounge, eateries and a beer garden - pay a total rental of almost $27,000 a month, not much more than the monthly ground rent of about $20,000 payable to JTC Corp.
‘Clearly, potential bidders will be looking at a major revamp, to make their investment profitable,’ says DTZ auctioneer and director Shaun Poh.
Over in Hougang, the strongest contender for Heartland Mall’s fourth level, market watchers reckon, would be the tie-up between a Lend Lease managed fund and Guthrie that owns the lower three floors of the mall, which stands on a site with a remaining lease of 76 years.
The fourth level space is being sold by owner Wang Lei Investment, understood to be linked to the company that owns karaoke chain Kbox.
The space comprises six units adding up to 21,131 sq ft of lettable area. Five of the units are currently leased to private schools. The sixth is vacant.
Wang Lei bought the six units for $6.8 million from mortgagee Maybank last year. It is understood to have upped rents of the tenants and extended their leases to August 2012. The monthly rental collection for the five leased units is about $67,200. The properties are being sold with existing tenancies.
The $9.5-9.8 million asking price reflects a property yield of about 7.4-7.6 per cent.
DTZ’s auction will begin at 2.30 pm next Thursday at Amara Hotel.
Meanwhile, the former factory building of Asia Pulp & Paper at 118, Pioneer Road was withdrawn from a Knight Frank auction yesterday after the company settled outstanding property tax owed to the Inland Revenue Authority of Singapore.
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