CapitaLand is understood to have bought No 8 Tong Watt Road off River Valley Road in the Mohamed Sultan area, at an auction last week for $9 million, bridging a gap in the row of houses it owns on the street.
With the latest acquisition, CapitaLand owns about 77,000 sq ft land area (stretching from Nos 1 to 17 Tong Watt Road) and which can be developed into around 293,000 sq ft gross floor area. That would be enough for almost 200 apartments averaging 1,500 sq ft. The stretch is zoned for residential use with a 3.8 plot ratio (ratio of maximum potential gross floor area to land area).
CapitaLand had bought the earlier properties at Tong Watt Road through at least two batches since 1999. Based on earlier reports, only the facade of the properties needs to be preserved, and the rear of the shophouses could be redeveloped up to 10 storeys high.
No 8 Tong Watt Road, which CapitaLand purchased last week, had been put up for auction by Inland Revenue Authority of Singapore (IRA) to recover property taxes owed to it.
The 999-year leasehold, three-storey terrace house has yet to be restored and is the River Valley Conservation area. It has a land area of 2,751 sq ft.
Bidding for the property at the Knight Frank auction on Friday began at $6 million. The bidding was confined to just two to three parties, who drove the price up to $9 million before CapitaLand won.
Meanwhile, another group of properties that had been put for sale by its owner at the same auction - a row of six restored conservation shophouses at South Bridge Road - was sold hours before the auction began. The buyer, believed to be a Singapore investment company, paid more than the $20 million-22 million indicated price.
The six freehold shophouses at Nos 252 to 262 (even numbers) South Bridge Road, near the junction with Temple Street have a total land area of nearly 8,500 sq ft and a floor area of around 16,600 sq ft. Other properties sold at the auction include two adjoining refurbished shophouses at Nos 762 and 764 North Bridge Road, with a total freehold land area of 2,890 sq ft. They fetched $3.2 million. A three-bedroom apartment at the freehold Holland Peak in District 10 fetched $1.54 million or $1,008 psf of strata area.
Knight Frank’s auction saw the sale of 21 Senoko Loop, a detached factory building, for $3.65 million. The building has a floor area of about 71,860 sq ft with a land area of 114,345 sq ft. The site has 24-year leasehold tenure with effect from Aug 16, 1992.
Source: The Business Times, 20 June 2007
Thursday, June 21, 2007
The latest government land sales programme reflects the balancing act that is required to respond to the booming property market in Singapore.
The latest government land sales programme reflects the balancing act that is required to respond to the booming property market in Singapore. The government announced last week its biggest ever land sales programme, offering a total of 41 sites in the second half of this year comprising 14 through the confirmed list and 27 in the reserve list.
The 14 confirmed-site offer is double the seven in the H1 2007 programme and also the highest figure since the reserve list system was introduced in 2001. The 41 plots the government is offering for the second half can potentially yield 8,000 private homes and 3.8 million sq ft gross floor area (GFA) of commercial space and 6,500 hotel rooms. But the programme - despite its scale - is no sledgehammer response to rising demand and prices.
Worth noting is the fact that none of the 20 residential sites in the programme are in prime district locations, where prices have climbed the steepest. It is a clear indication that the government, while keen to keep prices in the mass market affordable for Singaporeans, is willing to let market forces regulate prices in the luxury segment. The market has welcomed the approach, and property stocks rose the day after the programme was announced.
There was something to take away too, for those keenly watching rising office rentals - which have created fears that Singapore’s attraction to businesses may be eroding away. The government, in announcing its land sales programme, took pains to highlight the additional sources of office space that will be coming onstream. This will include around 1.4 million sq ft of space from vacant state buildings, small plots for office and other commercial uses and transitional offices. In all, the government said 6.9 million sq ft of office space will be completed by 2010, including the first phase of the Marina Bay Financial Centre.
While the latest land sales programme is generally welcomed as a measured response to developments in the property market, more may have to be done. For one, some would argue that the government cannot afford to leave the prime segment alone if there is a continued escalation in prices and rentals.
At stake could be Singapore’s efforts to attract and retain top-end foreign talent. A recent American Chamber of Commerce survey found that 61 per cent of the senior US executives polled were dissatisfied with housing prices. And the sharp increases in property prices have pushed up Singapore one notch to be the fifth most expensive city for expatriates in Asia and the 14th most expensive in the world, according to a Mercer survey this week.
The government has enough firepower in its arsenal - from land sales to legislative measures - to bring to bear on the property market. But it still faces the challenge to strike the correct balance between supply and demand, and between allowing the property sector to thrive and the need to maintain Singapore’s competitiveness. It’s a fine balancing act that needs to be performed.
Source: The Business Times, 20 June 2007
The 14 confirmed-site offer is double the seven in the H1 2007 programme and also the highest figure since the reserve list system was introduced in 2001. The 41 plots the government is offering for the second half can potentially yield 8,000 private homes and 3.8 million sq ft gross floor area (GFA) of commercial space and 6,500 hotel rooms. But the programme - despite its scale - is no sledgehammer response to rising demand and prices.
Worth noting is the fact that none of the 20 residential sites in the programme are in prime district locations, where prices have climbed the steepest. It is a clear indication that the government, while keen to keep prices in the mass market affordable for Singaporeans, is willing to let market forces regulate prices in the luxury segment. The market has welcomed the approach, and property stocks rose the day after the programme was announced.
There was something to take away too, for those keenly watching rising office rentals - which have created fears that Singapore’s attraction to businesses may be eroding away. The government, in announcing its land sales programme, took pains to highlight the additional sources of office space that will be coming onstream. This will include around 1.4 million sq ft of space from vacant state buildings, small plots for office and other commercial uses and transitional offices. In all, the government said 6.9 million sq ft of office space will be completed by 2010, including the first phase of the Marina Bay Financial Centre.
While the latest land sales programme is generally welcomed as a measured response to developments in the property market, more may have to be done. For one, some would argue that the government cannot afford to leave the prime segment alone if there is a continued escalation in prices and rentals.
At stake could be Singapore’s efforts to attract and retain top-end foreign talent. A recent American Chamber of Commerce survey found that 61 per cent of the senior US executives polled were dissatisfied with housing prices. And the sharp increases in property prices have pushed up Singapore one notch to be the fifth most expensive city for expatriates in Asia and the 14th most expensive in the world, according to a Mercer survey this week.
The government has enough firepower in its arsenal - from land sales to legislative measures - to bring to bear on the property market. But it still faces the challenge to strike the correct balance between supply and demand, and between allowing the property sector to thrive and the need to maintain Singapore’s competitiveness. It’s a fine balancing act that needs to be performed.
Source: The Business Times, 20 June 2007
Horizon Towers en bloc sale
The hearing on the disputed Horizon Towers en bloc sale has been brought forward to next month, thus averting fears that the $500 million deal could be derailed by a closure deadline.
Collective sale agreements have to be closed within six months of being signed or go back to the sales committee - a potentially divisive procedure that can kill a sale.
That gave Horizon Towers - its deal was agreed on Feb 12 - a cut- off date of Aug 11. But that raised a serious problem for the sellers as the dispute hearing was not scheduled to be held until September.
But The Straits Times learnt yesterday from a reliable source that the Strata Titles Board had rescheduled the hearing for five days, starting on July 26.
The two blocks at Leonie Hill have been pledged to be sold en bloc for $500 million to Hotel Properties (HPL), Morgan Stanley Real Estate and Qatar Investment Authority, the investment arm of the Emirate of Qatar.
The deal won backing from 84 per cent of the owners - exceeding the 80 per cent requirement - but it still needs approval from the Strata Titles Board.
Since that initial agreement, eight owners have objected to the sale. Efforts by the board to broker a compromise have come to nought, so a full hearing has been called.
It is understood that the dissenters object in principle to procedures leading up to the sale and not to the actual price offered.
But their sentiments are shared by several other unit owners who initially consented to the sale but are now unhappy over the price.
They point to the recent property boom that has seen the neighbouring Grangeford Apartments, which is five years older than Horizon, going for an asking price of more than $2,000 per sq ft (psf).
This dwarfs the $800 psf agreed for Horizon Towers.
The mood now is in stark contrast to the rejoicing late last year, when the owners were jubilant at the price the 23-year-old Horizon Towers had fetched.
Most owners in the 199 apartments in the 210-unit estate would walk out with about $2.3 million, while owners of the 11 penthouses would reap $4 million or more.
If the deal fails to meet the Aug 11 deadline, the initial deposit advanced to the sellers would have to be returned but it is unclear if they would face any liabilities if the sale does not go through.
Senior Counsel Jimmy Yim of Drew & Napier, who is acting for the sellers, said yesterday: ‘This is not a straightforward situation.’
He declined to comment on what would happen if the sale is aborted.
On Monday, more than 100 residents attended an extraordinary general meeting that sought to replace the existing sales committee.
Senior Counsel C.R. Rajah of Tan, Rajah and Cheah, who is acting for several owners, said they had a right to convene the meeting and decide who should represent them. But he stressed that the meeting had nothing to do with calling off the contract to sell the property.
One resident suggested that the existing committee resign en masse to enable others to be appointed. Another expressed concern over legal costs if the move triggered legal action by the buyers.
‘I would prefer not to be sued and I would want my money faster,’ said one resident.
Another resident feared that a new sales committee could raise legal questions and add to the general uncertainty over whom residents had to deal with.
Former Nominated Member of Parliament and senior lawyer Shriniwas Rai, who is representing a client-owner, proposed that the meeting be adjourned for six weeks to allow the differing parties to resolve the matter amicably. The suggestion was taken up by residents.
Senior Counsel K.Shanmugam of Allen & Gledhill, who is acting for HPL, said when contacted yesterday: ‘There is a contract and we are expecting the contract to be fulfilled.’
Source: The Straits Times, 20 June 2007
Collective sale agreements have to be closed within six months of being signed or go back to the sales committee - a potentially divisive procedure that can kill a sale.
That gave Horizon Towers - its deal was agreed on Feb 12 - a cut- off date of Aug 11. But that raised a serious problem for the sellers as the dispute hearing was not scheduled to be held until September.
But The Straits Times learnt yesterday from a reliable source that the Strata Titles Board had rescheduled the hearing for five days, starting on July 26.
The two blocks at Leonie Hill have been pledged to be sold en bloc for $500 million to Hotel Properties (HPL), Morgan Stanley Real Estate and Qatar Investment Authority, the investment arm of the Emirate of Qatar.
The deal won backing from 84 per cent of the owners - exceeding the 80 per cent requirement - but it still needs approval from the Strata Titles Board.
Since that initial agreement, eight owners have objected to the sale. Efforts by the board to broker a compromise have come to nought, so a full hearing has been called.
It is understood that the dissenters object in principle to procedures leading up to the sale and not to the actual price offered.
But their sentiments are shared by several other unit owners who initially consented to the sale but are now unhappy over the price.
They point to the recent property boom that has seen the neighbouring Grangeford Apartments, which is five years older than Horizon, going for an asking price of more than $2,000 per sq ft (psf).
This dwarfs the $800 psf agreed for Horizon Towers.
The mood now is in stark contrast to the rejoicing late last year, when the owners were jubilant at the price the 23-year-old Horizon Towers had fetched.
Most owners in the 199 apartments in the 210-unit estate would walk out with about $2.3 million, while owners of the 11 penthouses would reap $4 million or more.
If the deal fails to meet the Aug 11 deadline, the initial deposit advanced to the sellers would have to be returned but it is unclear if they would face any liabilities if the sale does not go through.
Senior Counsel Jimmy Yim of Drew & Napier, who is acting for the sellers, said yesterday: ‘This is not a straightforward situation.’
He declined to comment on what would happen if the sale is aborted.
On Monday, more than 100 residents attended an extraordinary general meeting that sought to replace the existing sales committee.
Senior Counsel C.R. Rajah of Tan, Rajah and Cheah, who is acting for several owners, said they had a right to convene the meeting and decide who should represent them. But he stressed that the meeting had nothing to do with calling off the contract to sell the property.
One resident suggested that the existing committee resign en masse to enable others to be appointed. Another expressed concern over legal costs if the move triggered legal action by the buyers.
‘I would prefer not to be sued and I would want my money faster,’ said one resident.
Another resident feared that a new sales committee could raise legal questions and add to the general uncertainty over whom residents had to deal with.
Former Nominated Member of Parliament and senior lawyer Shriniwas Rai, who is representing a client-owner, proposed that the meeting be adjourned for six weeks to allow the differing parties to resolve the matter amicably. The suggestion was taken up by residents.
Senior Counsel K.Shanmugam of Allen & Gledhill, who is acting for HPL, said when contacted yesterday: ‘There is a contract and we are expecting the contract to be fulfilled.’
Source: The Straits Times, 20 June 2007
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