reporter2
05-07-13, 16:29
http://www.businesstimes.com.sg/specials/property/q2-likely-have-seen-221m-gcbas-deals-20130705
Published July 05, 2013
Q2 likely to have seen $221m GCBAs deals
This is higher than Q1's $180.5m; mixed views as to impact of loan curbs on such purchases
By Kalpana Rashiwala
http://www.businesstimes.com.sg/sites/businesstimes.com.sg/files/imagecache/image_300x200/BT_20130705_KRBUNG5_649199.jpg
Sold: One of the latest deals was a freehold property in Holland Park that sold for $28.8 million, which works out to $1,893 per square foot based on land area of 15,210 sq ft. The property comprises a conservation bungalow which has been restored, connected to a newly built house.
AT least $221 million worth of deals in Good Class Bungalow Areas (GCBAs) could have been transacted in the second quarter.
This would be higher than the $180.5 million of deals done in the first quarter, based on CBRE's analysis of caveats data.
One of the latest deals was a freehold property in Holland Park that sold for $28.8 million, which works out to $1,893 per square foot based on land area of 15,210 sq ft. The property comprises a conservation bungalow which has been restored, connected to a newly built house.
The combined two-storey property has four bedrooms, a study, a guest room, a swimming pool, wine cellar, entertainment room and a garage for three cars. The property's built-up area is 12,636 sq ft. There is also a roof terrace.
The seller is a seasoned bungalow trader who bought the property in late 2010 - with the old conservation bungalow and a small wing on site - for an auspicious figure of $18,888,888 and could have invested another $4-5 million restoring the conservation bungalow, and tearing down the adjacent wing and redeveloping it into the new house.
The buyers are understood to be a couple who are planning to live in the property. Samuel Eyo, director (prestige homes) at Savills (Singapore), brokered the transaction.
Nearby, Frasers Centrepoint Homes is developing two bungalows at Nos 65 and 67 Holland Park. The two-storey properties have respective land areas of 15,070 sq ft and 15,080 sq ft and built-up areas of 10,777 sq ft and 11,368 sq ft. Each property comes with four bedrooms and a guest room.
Talk in the market is that the developer is asking for about $38 million or $2,521 psf on land area for No 65, which has dual frontage.
The next door property at No 67 is said to have an asking price of around $35 million, which reflects $2,321 psf.
Other deals in GCBAs in the second quarter include a bungalow in the Tanglin and Rochalie vicinity that was sold for $23.5 million or $1,377 psf on a land area of about 17,072 sq ft. In Coronation Road West, a bungalow fetched $28 million or $1,101 psf based on its land area of 25,425 sq ft. The buyer is understood to be Tee Yih Jia's executive chairman, Sam Goi.
Property maestro Simon Cheong also contributed to the sales volume of GCBs in the second quarter when he sold his home in Cornwall Gardens for $42.5 million or $2,051 psf. It sits on land of about 20,720 sq ft. The sale has yet to be completed. Mr Cheong is expected to move into a brand new home in Swettenham Road which he built on a site of around 33,300 sq ft that he picked up for $29.2 million back in 2009 from George Quek, the chairman and founder of BreadTalk.
The $2,051 psf pricing is close to the $2,110 psf record price for a property in a GCBA set last October when bungalow investor George Lim sold one in Leedon Park that he completed in 2011 for $33 million. Standing on the 15,640 sq ft site is a bungalow with six bedrooms and a pool.
Property agents gave mixed views on the impact of last Friday's announcements by Monetary Authority of Singapore on the high-end residential segment including bungalows.
Some like Steve Tay, associate director at Newsman Realty, acknowledged that "things are a bit quiet for now" as the various parties assess the impact of the MAS announcement, particularly its move to plug some loopholes that property investors had been using to avoid paying additional buyer's stamp duty (ABSD) as well as to circumvent tighter loan-to-value limits for those with existing housing loans.
"Some investors were previously making purchases in the names of their spouse or children who did not own any properties so as not to pay an ABSD of up to 10 per cent (for Singaporean and permanent resident buyers). Now that the loophole has been shut, these buyers are weighing whether it's worthwhile making a purchase given the cost of the 10 per cent ABSD, which is on top of the 3 per cent standard buyer's stamp duty," he added.
Rodyk & Davidson real estate practice partner Lee Liat Yeang acknowledges that a super high networth individual who does not need to take any housing loan to fund the acquisition of an additional residential property here could still potentially escape the ABSD - if he makes the purchase in the name of a family member or proxy who does not own any Singapore residential property. However, the escape route has been closed for an investor who has to take some debt to fund the acquisition.
"There are two steps involved. Firstly the investor as the party giving the guarantee for the housing loan application made by the proxy buyer/family member will have to be brought in as a co-borrower. And all borrowers must be mortgagors ie owners of the property. As such he can't escape the ABSD," says Mr Lee.
However, he points to another channel that has traditionally been used and which remains open. "Some HNWs who don't have any outstanding property loan could apply for a new mortgage on one of their properties and use the funds disbursed by the bank as they wish, including helping one of their children to buy a property.
"For example, if a HNW owning a Good Class Bungalow worth $20 million were to take a 40 per cent loan in this manner, the sum he'll receive would be pretty substantial at $8 million," notes Mr Lee.
Published July 05, 2013
Q2 likely to have seen $221m GCBAs deals
This is higher than Q1's $180.5m; mixed views as to impact of loan curbs on such purchases
By Kalpana Rashiwala
http://www.businesstimes.com.sg/sites/businesstimes.com.sg/files/imagecache/image_300x200/BT_20130705_KRBUNG5_649199.jpg
Sold: One of the latest deals was a freehold property in Holland Park that sold for $28.8 million, which works out to $1,893 per square foot based on land area of 15,210 sq ft. The property comprises a conservation bungalow which has been restored, connected to a newly built house.
AT least $221 million worth of deals in Good Class Bungalow Areas (GCBAs) could have been transacted in the second quarter.
This would be higher than the $180.5 million of deals done in the first quarter, based on CBRE's analysis of caveats data.
One of the latest deals was a freehold property in Holland Park that sold for $28.8 million, which works out to $1,893 per square foot based on land area of 15,210 sq ft. The property comprises a conservation bungalow which has been restored, connected to a newly built house.
The combined two-storey property has four bedrooms, a study, a guest room, a swimming pool, wine cellar, entertainment room and a garage for three cars. The property's built-up area is 12,636 sq ft. There is also a roof terrace.
The seller is a seasoned bungalow trader who bought the property in late 2010 - with the old conservation bungalow and a small wing on site - for an auspicious figure of $18,888,888 and could have invested another $4-5 million restoring the conservation bungalow, and tearing down the adjacent wing and redeveloping it into the new house.
The buyers are understood to be a couple who are planning to live in the property. Samuel Eyo, director (prestige homes) at Savills (Singapore), brokered the transaction.
Nearby, Frasers Centrepoint Homes is developing two bungalows at Nos 65 and 67 Holland Park. The two-storey properties have respective land areas of 15,070 sq ft and 15,080 sq ft and built-up areas of 10,777 sq ft and 11,368 sq ft. Each property comes with four bedrooms and a guest room.
Talk in the market is that the developer is asking for about $38 million or $2,521 psf on land area for No 65, which has dual frontage.
The next door property at No 67 is said to have an asking price of around $35 million, which reflects $2,321 psf.
Other deals in GCBAs in the second quarter include a bungalow in the Tanglin and Rochalie vicinity that was sold for $23.5 million or $1,377 psf on a land area of about 17,072 sq ft. In Coronation Road West, a bungalow fetched $28 million or $1,101 psf based on its land area of 25,425 sq ft. The buyer is understood to be Tee Yih Jia's executive chairman, Sam Goi.
Property maestro Simon Cheong also contributed to the sales volume of GCBs in the second quarter when he sold his home in Cornwall Gardens for $42.5 million or $2,051 psf. It sits on land of about 20,720 sq ft. The sale has yet to be completed. Mr Cheong is expected to move into a brand new home in Swettenham Road which he built on a site of around 33,300 sq ft that he picked up for $29.2 million back in 2009 from George Quek, the chairman and founder of BreadTalk.
The $2,051 psf pricing is close to the $2,110 psf record price for a property in a GCBA set last October when bungalow investor George Lim sold one in Leedon Park that he completed in 2011 for $33 million. Standing on the 15,640 sq ft site is a bungalow with six bedrooms and a pool.
Property agents gave mixed views on the impact of last Friday's announcements by Monetary Authority of Singapore on the high-end residential segment including bungalows.
Some like Steve Tay, associate director at Newsman Realty, acknowledged that "things are a bit quiet for now" as the various parties assess the impact of the MAS announcement, particularly its move to plug some loopholes that property investors had been using to avoid paying additional buyer's stamp duty (ABSD) as well as to circumvent tighter loan-to-value limits for those with existing housing loans.
"Some investors were previously making purchases in the names of their spouse or children who did not own any properties so as not to pay an ABSD of up to 10 per cent (for Singaporean and permanent resident buyers). Now that the loophole has been shut, these buyers are weighing whether it's worthwhile making a purchase given the cost of the 10 per cent ABSD, which is on top of the 3 per cent standard buyer's stamp duty," he added.
Rodyk & Davidson real estate practice partner Lee Liat Yeang acknowledges that a super high networth individual who does not need to take any housing loan to fund the acquisition of an additional residential property here could still potentially escape the ABSD - if he makes the purchase in the name of a family member or proxy who does not own any Singapore residential property. However, the escape route has been closed for an investor who has to take some debt to fund the acquisition.
"There are two steps involved. Firstly the investor as the party giving the guarantee for the housing loan application made by the proxy buyer/family member will have to be brought in as a co-borrower. And all borrowers must be mortgagors ie owners of the property. As such he can't escape the ABSD," says Mr Lee.
However, he points to another channel that has traditionally been used and which remains open. "Some HNWs who don't have any outstanding property loan could apply for a new mortgage on one of their properties and use the funds disbursed by the bank as they wish, including helping one of their children to buy a property.
"For example, if a HNW owning a Good Class Bungalow worth $20 million were to take a 40 per cent loan in this manner, the sum he'll receive would be pretty substantial at $8 million," notes Mr Lee.