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reporter2
08-07-17, 23:20
Tampines Court eyeing $960m in collective sale bid

JUL 1, 2017

If successful, deal would be biggest for an ex-HUDC in decade

Wong Siew Ying


Home owners at Tampines Court have jumped on the collective sale bandwagon, with plans to put the privatised property up for sale for $960 million.

If successful, it would be the biggest collective sale deal for a former Housing and Urban Development Company (HUDC) property in a decade.

Marketing agent Huttons Asia told The Straits Times that the tender will be launched on Tuesday, having secured approval from about 82 per cent of the owners for the collective sale.

The buyer of the sprawling 560-unit development will have to pay additional charges, estimated at $348 million, for intensifying the land use and to top up the lease to a fresh 99 years. All in, the asking price and the extra charges work out to a land rate of $665 per square foot per plot ratio, Huttons added.

Mr Terence Lian, head of investment sales at Huttons Asia, said: "The owners are upbeat about the current market sentiment. They realise that there is a small window of opportunity now for them to launch the sale."

Tampines Court, in Tampines Street 11, sits on a 702,000 sq ft site, and has about 69 years left on its lease. It comprises 560 units - size ranging from 1,658 sq ft to 1,733 sq ft - across 14 residential blocks.

Mr Lian said each owner stands to receive about $1.7 million from the sale. This is its third attempt at a collective sale after its $405 million first try was dismissed by the Strata Titles Board in 2008. Around 2011, it failed to obtain the level of approval that was needed from residents.

For properties to be sold en bloc, the consent of at least 80 per cent of the owners must be obtained.

Huttons said the large site can be redeveloped to offer 2,100 private homes with an average unit size of 900 sq ft. "The site is in a mature estate and has the potential to be redeveloped into an eco-town, with larger apartments that are suitable for families," Mr Lian said.

Tampines Court will be the third development to hit the collective sale market in recent weeks, following the tender launch for freehold property The Albracca in Meyer Road, and former HUDC estate Serangoon Ville in Serangoon North Avenue 1. Should Tampines Court be sold at $960 million, it would be the biggest collective sale transaction for privatised HUDC estates since Farrer Court was sold for $1.34 billion in 2007.

Mr Lian said residents are optimistic about the sale, drawing confidence from recent bullish bids, including the record $1 billion paid for a Stirling Road residential plot under a government land tender.

The collective sale market, which has seen a resurgence since last year, is expected to turn in a stellar performance this year.

Four deals - One Tree Hill Gardens, Goh & Goh Building, Rio Casa and Eunosville - valued at $1.5 billion have already been done so far this year, surpassing the three deals worth $1 billion for all of last year.

Laguna
09-07-17, 21:02
If I am not wrong
Tampines Court is paying Hutton as marketing agent 1% fee (about $17,000 an unit on reserve price) and 0.28% lawyer fee.
On top, there are lot of other fees to be paid by the SP like valuation fee and even photo-copy.

Whereas for EunosVille, they are paying Orange Tee $5000 flat per unit and lawyer fee of 0.22%.

So, the members of Sales Committee are very important to secure the best deal for the SPs in terms of fees.

Anyone knows about other enbloc information?

reporter2
15-08-17, 20:32
Tampines Court gets a bid of S$970m that comes with conditions

August 15, 2017

KALPANA RASHIWALA


THE collective sale tender for Tampines Court,which closed on Tuesday, received a bid of S$970 million, above the reserve price of S$952 million.

"There are however conditions attached and the CSC (collective sales committee) is evaluating the same," said Terence Lian, head of investment sales at Huttons Asia, the marketing agent for Tampines Court's collective sale.

"We hope to wrap things up, ie, make an award within two weeks," he added.

He termed the tender result as "satisfactory", having crossed the reserve price and "considering the sprawling land size Tampines Court sits on".

Assuming Tampines Court is sold at S$970 million, this would be the biggest collective sale of a privatised HUDC (Housing & Urban Development Company) estate since the S$1.34 billion sale of Farrer Court in 2007.

Tampines Court has a land area of 702,164 sq ft and a 2.8 plot ratio (ratio of maximum gross floor area to land area). Mr Lian estimates that the site could be potentially redeveloped into a new project with up to 2,609 units based on an average size (gross floor area) of about 753 sq ft. The Tampines Court site has a balance lease term of about 69 years.


Tampines Court gets $970m collective sale offer

Aug 16, 2017

Lee Xin En


It is likely to be third time is the charm for home owners at Tampines Court, after an offer lodged above its reserve price of $960 million set it up for a collective sale.

The bid could finally clinch the sale of the former Housing and Urban Development Company (HUDC) estate, which has failed in two earlier attempts to conclude a deal to sell en bloc.

Mr Terence Lian, head of investment sales at Huttons Asia, indicated that a bid had come in at $970 million but that the collective sale committee was still evaluating the bid as there were some conditions attached to the deal.

If it goes through, it will be the biggest collective sale of a former HUDC property since Farrer Court went for $1.34 billion in 2007.

Each home owner at Tampines Court is likely to walk away with between $1.7 million and $1.75 million from the sale.

The estate in Tampines Street 11 sits on a sprawling 702,000 sq ft site with about 69 years left on its lease. There are 560 units from 1,658 sq ft to 1,733 sq ft ranged across 14 blocks.

Tampines Court attempted a collective sale in 2008 for $405 million, but it was dismissed by the Strata Titles Board. In 2011, it failed to obtain the required level of approval from 80 per cent of the owners.

The collective sale market has been powering head amid more positive sentiment and developers' hunger for sites.

Word on the market is that at least four former HUDC developments have started the collective sale process.

Six collective sale transactions - Serangoon Ville, The Albracca, One Tree Hill Gardens, Goh & Goh Building, Rio Casa and Eunosville - valued at $2.1 billion have already been done so far this year, surpassing the three deals worth $1 billion for all of last year.

http://www.straitstimes.com/business/tampines-court-gets-970m-collective-sale-offer



Sim Lian tipped to have bid S$970m for Tampines Court

If the sale goes through, this collective sale could be the second largest in Singapore after Farrer Court in 2007

August 16, 2017

Kalpana Rashiwala


SIM Lian Development is believed to have placed a bid of S$970 million for the collective sale of Tampines Court.

On Tuesday evening, Huttons Asia, the marketing agent for the privatised HUDC (Housing and Urban Development Company) estate, said the tender for the site, which closed at 3 pm the same day, received a bid of that sum - above the reserve price of S$952 million.

Terence Lian, who heads investment sales at Huttons Asia, did not identify the party, but said conditions were attached to the S$970 million bid, so the collective sales committee is evaluating the bid.

"We hope to wrap things up, that is, make an award within two weeks," he added.

He declined to be drawn into discussing the number of bids received.

He said that a price of S$970 million works out to around S$655 per square foot of potential gross floor area, inclusive of two payments to the state. One is a differential premium for enhancing the intensity of the site to a gross plot ratio of 2.8; the other is a lease-upgrading premium, which will top up the site's lease to 99 years.

The site has a leftover lease of 69 years.

Mr Lian described the tender result as "satisfactory", having crossed the reserve price and "considering the sprawling land size Tampines Court sits on".

Assuming Tampines Court is sold at S$970 million, this would be the second largest collective sale in dollar quantum after Farrer Court, which went for S$1.3388 billion back in 2007, said JLL.

Tampines Court has a land area of 702,164 sq ft.

Based on a 2.8 plot ratio - which is the ratio of maximum gross floor area to land area - Mr Lian estimates that the site could be redeveloped into a project with up to 2,609 units, based on an average unit size (gross floor area) of about 753 sq ft.

A seasoned property consultant estimates the breakeven cost at around S$1,150 psf. While this would still leave a profit margin for the developer based on the current buoyant market conditions, the development risk for this project lies in its huge size of more than 2,500 units.

"There is a risk that the developer may end up having to pay the 15 per cent ABSD (additional buyer's stamp duty) on the purchase price of the land, with interest of 5 per cent per annum, if it does not fulfil the conditions for upfront remission of ABSD," said a market watcher.

These conditions include completing the new development on the site and selling off all its units within five years of the collective sale order granted by the Strata Titles Board (STB) or the court.

The successful bidder of Tampines Court will also factor in an expected increase in development charge rates come Sept 1, given the recent bullish residential land bids in general. This in turn will push up the differential premium payable on the Tampines Court site and hence raise the breakeven cost for the new project.

That said, Sim Lian, is no newbie to the Tampines area, having developed for the Housing Board two Design Build and Sell Scheme (DBSS) projects in the area - The Premier and Centrale 8 - in addition to an executive condo (a public-private housing hybrid) project, Tampines Trilliant.

Moreover, the group has a construction arm, which, assuming it handles the building works of the new project, will result in some savings in construction cost, say analysts.

Market watchers believe that among the conditions that the potential buyer of Tampines Court is likely to have sought from its owners would be requiring confirmation of the development baseline for the property, which will have a bearing on the quantum of differential premium.

In addition, the deal would be subject to a lease top-up for the site. The buyer would also have stipulated a timeframe for the order of sale to be granted by the STB or court - as one of the conditions of its purchase.

Kelonguni
15-08-17, 21:05
Don't tremble. Wait till many more old buildings enbloc and the windfall owners come back to market to look for properties! Showhand.

Laguna
15-08-17, 21:42
http://www.businesstimes.com.sg/real-estate/tampines-court-gets-a-bid-of-s970m-that-comes-with-conditions

Laguna
15-08-17, 22:20
This deal may not be that smooth as the place is having feng shui problems with enbloc.

The buyer knows it is a single bid, so the nego is not going to be easy.

Anyway the Sales Com is doing a very lousy job to let Huttons to charge 1% com, far above market rate

Kelonguni
15-08-17, 22:30
Yes yes, fengshui lah, commissions lah...

So what better option than to keep waiting?

Laguna
15-08-17, 22:39
Yes yes, fengshui lah, commissions lah...

So what better option than to keep waiting?

I am no longer a buyer nor seller. Just hold what I have.
Will be out from property games in these three- four years.
There are other better games to play

Kelonguni
15-08-17, 22:51
I am no longer a buyer nor seller. Just hold what I have.
Will be out from property games in these three- four years.
There are other better games to play

The message is definitely not intended for you. In terms of property, you are healthily exposed.

It's meant for those who need property to wait together wih those who do not need property.

Laguna
15-08-17, 23:00
i am rather bearish on the fundamental.

reporter2
16-08-17, 11:23
Sim Lian tipped to have bid S$970m for Tampines Court

If the sale goes through, this collective sale could be the second largest in Singapore after Farrer Court in 2007

August 16, 2017

KALPANA RASHIWALA


SIM Lian Development is believed to have placed a bid of S$970 million for the collective sale of Tampines Court.

On Tuesday evening, Huttons Asia, the marketing agent for the privatised HUDC (Housing and Urban Development Company) estate, said the tender for the site, which closed at 3 pm the same day, received a bid of that sum - above the reserve price of S$952 million.

Terence Lian, who heads investment sales at Huttons Asia, did not identify the party, but said conditions were attached to the S$970 million bid, so the collective sales committee is evaluating the bid.

"We hope to wrap things up, that is, make an award within two weeks," he added.

He declined to be drawn into discussing the number of bids received.

He said that a price of S$970 million works out to around S$655 per square foot of potential gross floor area, inclusive of two payments to the state. One is a differential premium for enhancing the intensity of the site to a gross plot ratio of 2.8; the other is a lease-upgrading premium, which will top up the site's lease to 99 years.

The site has a leftover lease of 69 years.

Mr Lian described the tender result as "satisfactory", having crossed the reserve price and "considering the sprawling land size Tampines Court sits on".

Assuming Tampines Court is sold at S$970 million, this would be the second largest collective sale in dollar quantum after Farrer Court, which went for S$1.3388 billion back in 2007, said JLL.

Tampines Court has a land area of 702,164 sq ft.

Based on a 2.8 plot ratio - which is the ratio of maximum gross floor area to land area - Mr Lian estimates that the site could be redeveloped into a project with up to 2,609 units, based on an average unit size (gross floor area) of about 753 sq ft.

A seasoned property consultant estimates the breakeven cost at around S$1,150 psf. While this would still leave a profit margin for the developer based on the current buoyant market conditions, the development risk for this project lies in its huge size of more than 2,500 units.

"There is a risk that the developer may end up having to pay the 15 per cent ABSD (additional buyer's stamp duty) on the purchase price of the land, with interest of 5 per cent per annum, if it does not fulfil the conditions for upfront remission of ABSD," said a market watcher.

These conditions include completing the new development on the site and selling off all its units within five years of the collective sale order granted by the Strata Titles Board (STB) or the court.

The successful bidder of Tampines Court will also factor in an expected increase in development charge rates come Sept 1, given the recent bullish residential land bids in general. This in turn will push up the differential premium payable on the Tampines Court site and hence raise the breakeven cost for the new project.

That said, Sim Lian, is no newbie to the Tampines area, having developed for the Housing Board two Design Build and Sell Scheme (DBSS) projects in the area - The Premier and Centrale 8 - in addition to an executive condo (a public-private housing hybrid) project, Tampines Trilliant.

Moreover, the group has a construction arm, which, assuming it handles the building works of the new project, will result in some savings in construction cost, say analysts.

Market watchers believe that among the conditions that the potential buyer of Tampines Court is likely to have sought from its owners would be requiring confirmation of the development baseline for the property, which will have a bearing on the quantum of differential premium.

In addition, the deal would be subject to a lease top-up for the site. The buyer would also have stipulated a timeframe for the order of sale to be granted by the STB or court - as one of the conditions of its purchase.

PropVestor
16-08-17, 12:57
I wonder the conditions are tied to pay out timing since the 2017 price is much higher than the previous.

I am more curious about where these 560 units of millionaires will buy into. There is not much stock left around Simei MRT area. Should check with Bargain Hunter.

thomastansb
16-08-17, 13:42
En-bloc fever is back. With a vengeance this time. Feels like 2007 all over again.

Tomutomi
16-08-17, 13:54
D18 so many stocks especially on resale markets :).


I wonder the conditions are tied to pay out timing since the 2017 price is much higher than the previous.

I am more curious about where these 560 units of millionaires will buy into. There is not much stock left around Simei MRT area. Should check with Bargain Hunter.

bargain hunter
16-08-17, 14:18
I wonder the conditions are tied to pay out timing since the 2017 price is much higher than the previous.

I am more curious about where these 560 units of millionaires will buy into. There is not much stock left around Simei MRT area. Should check with Bargain Hunter.

not sure about resale stock though. and they can always move to other areas?

PropVestor
16-08-17, 14:47
My guess is that this area where they live is not really that bad. Probably about up to 1/3 will stay around the vicinity. That will absorb some of the resale and new units. Recent launches here have been doing pretty OK too.

I really hope this goes through just like City Plaza.

Tomutomi
16-08-17, 15:54
Actually the area around like simei, pasir ris or bedok reservoir is considered better place than tampines court.


My guess is that this area where they live is not really that bad. Probably about up to 1/3 will stay around the vicinity. That will absorb some of the resale and new units. Recent launches here have been doing pretty OK too.

I really hope this goes through just like City Plaza.

Amber Woods
16-08-17, 16:14
Sim Lian was reported to have submitted the only bid. Looks like developers are cautious. For the size and price, this is high risk if Sim Lian went alone.

Laguna
16-08-17, 16:28
Sim Lian was reported to have submitted the only bid. Looks like developers are cautious. For the size and price, this is high risk if Sim Lian went alone.

Yes, the risk is too high for Sim Lian.

2500 units to be sold from date of Sales Order. i.e. when the site is cleared, planning approval given and showroom ready, and after the rent free period, it is easily one year gone. 4 years to sell 2500 units, else ABSD 15% on land price with 5% pa interest....

very high risk

Kelonguni
16-08-17, 16:45
Between the rock and a very hard place, where would you choose?

Developers with primarily local exposure can either choose to pay high price for durian stocks, or not have any durian stocks and close shop.

Consumers can choose to buy current stocks of mid-priced durians, or pay very high-priced durian later or not eat durian at all.

Don't believe? Wait it out and see.

http://www.asiaone.com/business/local-developers-still-keen-replenish-land-bank

You don't need 10 developers to bid for 1 enbloc site.

You need 10 to bid for 10 sites.

thomastansb
16-08-17, 16:57
But I am surprised by the price. 405M in 2008. 960M in 2017. That is almost 2.5 times more.

At $665 psf, let's say 300 psf to build. Breakeven slightly below 1k psf. If they sell average 1.2k psf, already 150M profit.

Usually, they play around with A/C ledge, balcony etc. Add another 15% to 150M = 172M.

Not fantastic but still a decent amount. If they can get 1.3k psf, then really a good deal. The same old tricks. 420sqft studio, 624 sqft 2 bedder, 750 sqft 3 bedder. And 883 sqft 4 bedder.

2824
16-08-17, 16:58
Sim Lian was reported to have submitted the only bid. Looks like developers are cautious. For the size and price, this is high risk if Sim Lian went alone.

wonder what are the conditions, anyway Sim Lian is not listed anymore and therefore thought they don't have to worry about QC and QC charges since it is a singapore developer.

Kelonguni
16-08-17, 17:07
That was why I had advised those who needed to buy to snatch while the price and size is right over the last 2 years. Those who have no need to buy or not ready, just sit by and watch the show.

Once the tide turns (and some will say it has already turned), we will be staring at a new paradigm for private housing sizing and pricing.

Lousy economy, record growth and sales (both cars and housing).


But I am surprised by the price. 405M in 2008. 960M in 2017. That is almost 2.5 times more.

At $665 psf, let's say 300 psf to build. Breakeven slightly below 1k psf. If they sell average 1.2k psf, already 150M profit.

Usually, they play around with A/C ledge, balcony etc. Add another 15% to 150M = 172M.

Not fantastic but still a decent amount. If they can get 1.3k psf, then really a good deal. The same old tricks. 420sqft studio, 624 sqft 2 bedder, 750 sqft 3 bedder. And 883 sqft 4 bedder.

Kelonguni
16-08-17, 17:08
wonder what are the conditions, anyway Sim Lian is not listed anymore and therefore thought they don't have to worry about QC and QC charges since it is a singapore developer.

One possible condition could be that the owners must move out in a period of time (say 3-6 months), to allow more time for sales.

bargain hunter
16-08-17, 18:58
wonder what are the conditions, anyway Sim Lian is not listed anymore and therefore thought they don't have to worry about QC and QC charges since it is a singapore developer.

its the ABSD, not QC.

bargain hunter
16-08-17, 19:00
But I am surprised by the price. 405M in 2008. 960M in 2017. That is almost 2.5 times more.

At $665 psf, let's say 300 psf to build. Breakeven slightly below 1k psf. If they sell average 1.2k psf, already 150M profit.

Usually, they play around with A/C ledge, balcony etc. Add another 15% to 150M = 172M.

Not fantastic but still a decent amount. If they can get 1.3k psf, then really a good deal. The same old tricks. 420sqft studio, 624 sqft 2 bedder, 750 sqft 3 bedder. And 883 sqft 4 bedder.

i think at this point, 3 bedders should still be from 800 sq ft and 4 bedders they should at least try to keep it above 1,000 sq ft.

PropVestor
16-08-17, 19:33
Sim Lian was reported to have submitted the only bid. Looks like developers are cautious. For the size and price, this is high risk if Sim Lian went alone.

To re-hash the over-used Walter Gretzky quote “Skate to where the puck is going, not where it has been.”
No one can tell the future. Developers see the mid to long term unlike consumers who see prices today and the next few months.

SL analysts would have weighed in on the risks and calculate till the cows come home on the psf, profits, taxes etc. They do not draw out this amount from thin air.

SL is no small player and has regional exposure (comes with the risks). They know what they are doing. The thing is, do consumers know what they are doing when this land is developed for launch?

2 cents,
PropVestor

thomastansb
16-08-17, 20:17
I agree with you. Anyway, based on a quick calculation, they will be able to make profit easily. Question is - how much?





To re-hash the over-used Walter Gretzky quote “Skate to where the puck is going, not where it has been.”
No one can tell the future. Developers see the mid to long term unlike consumers who see prices today and the next few months.

SL analysts would have weighed in on the risks and calculate till the cows come home on the psf, profits, taxes etc. They do not draw out this amount from thin air.

SL is no small player and has regional exposure (comes with the risks). They know what they are doing. The thing is, do consumers know what they are doing when this land is developed for launch?

2 cents,
PropVestor

tonymontana
16-08-17, 22:23
I wonder the conditions are tied to pay out timing since the 2017 price is much higher than the previous.

I am more curious about where these 560 units of millionaires will buy into. There is not much stock left around Simei MRT area. Should check with Bargain Hunter.

tanah merah, siglap, , teluk kurau or east coast lor, where else. eastenders don't like to move too far away

patches
16-08-17, 22:49
One possible condition could be that the owners must move out in a period of time (say 3-6 months), to allow more time for sales.

Have a few questions to the quote above and the en-bloc. They are as follows:

(1) After a tender is being made, how long does STB usually take to approve the sale? A lawyer friend told me that it would typically take from six to eight months for approval. Is that the time frame we are looking at? Have anyone experience an en bloc to shed some light for me?

(2) I checked the caveats for TC and noticed that there were quite a few buyers in the last three years. While it is clearly a profit for these new owners, their potential windfall would be substantially marginalised by SSD. Question here is when does the en bloc sale constitute the date of sale for SSD to be applied? Is it dated from the award of the tender? Or is it dated from the approval of the STB? For these owners, especially those who bought late last year would be nervous about the treatment of SSD associated with the timeline of the sale.

(3) I understand that SSD continues to apply for en bloc owners even if they voted no. I am wondering if there should be more petition against that especially when the objective of SSD is to prevent speculation. I have read cases where new owners spent thousands of dollars in renovation to start their life and only be washed with uncertainty of an en bloc sale. While I understand that there is monetary gains to be made, would it not be logical for the government to grant exceptions to the rule of SSD for these new owners? From my standpoint, only the government stands to pocket these gains. The opportunity cost of uncertainty sitting through an en bloc can weigh heavily on one's family future that may "cost" more than the potential windfall an en bloc can bring.

proud owner
16-08-17, 22:50
To re-hash the over-used Walter Gretzky quote “Skate to where the puck is going, not where it has been.”
No one can tell the future. Developers see the mid to long term unlike consumers who see prices today and the next few months.

SL analysts would have weighed in on the risks and calculate till the cows come home on the psf, profits, taxes etc. They do not draw out this amount from thin air.

SL is no small player and has regional exposure (comes with the risks). They know what they are doing. The thing is, do consumers know what they are doing when this land is developed for launch?

2 cents,
PropVestor

Enbloc, from enbloc to moving out, to tearing down, to contruction, to TOP can take up to 8years...

SL which is not listed, will not be subjected to the 5year rule ...

They can take their time to sell ...

august
16-08-17, 23:35
Enbloc, from enbloc to moving out, to tearing down, to contruction, to TOP can take up to 8years...

SL which is not listed, will not be subjected to the 5year rule ...

They can take their time to sell ...

IIRC the QC rules apply for non-listed developer, for both enbloc and govt land tender.

Laguna
16-08-17, 23:58
Have a few questions to the quote above and the en-bloc. They are as follows:

(1) After a tender is being made, how long does STB usually take to approve the sale? A lawyer friend told me that it would typically take from six to eight months for approval. Is that the time frame we are looking at? Have anyone experience an en bloc to shed some light for me?

(2) I checked the caveats for TC and noticed that there were quite a few buyers in the last three years. While it is clearly a profit for these new owners, their potential windfall would be substantially marginalised by SSD. Question here is when does the en bloc sale constitute the date of sale for SSD to be applied? Is it dated from the award of the tender? Or is it dated from the approval of the STB? For these owners, especially those who bought late last year would be nervous about the treatment of SSD associated with the timeline of the sale.

(3) I understand that SSD continues to apply for en bloc owners even if they voted no. I am wondering if there should be more petition against that especially when the objective of SSD is to prevent speculation. I have read cases where new owners spent thousands of dollars in renovation to start their life and only be washed with uncertainty of an en bloc sale. While I understand that there is monetary gains to be made, would it not be logical for the government to grant exceptions to the rule of SSD for these new owners? From my standpoint, only the government stands to pocket these gains. The opportunity cost of uncertainty sitting through an en bloc can weigh heavily on one's family future that may "cost" more than the potential windfall an en bloc can bring.

Q1 : About 4 months if no objection Sales Order will be issued by STB. If there is objection, STB will mediate, if fails, High Court hearing and High Court will issue Sales Order or invalidate the Sales….no timeline be guaranteed. Case Reference : Shunfu, Minton Rise at Lor Ah Soo, and Gillman Heights, Waterfront View

Q2 : Date of Sales Order

Q3. I doubt very much you can appeal even you did not consent to sell as the Sales Order is binding on all SPs. All investments come with risk. You can refer to Waterfront View case for interesting read, may be relevant.

proud owner
17-08-17, 00:16
IIRC the QC rules apply for non-listed developer, for both enbloc and govt land tender.

really ?

Why then has SC Global delisted itself last yr ?? to avoid penalty

august
17-08-17, 00:47
really ?

Why then has SC Global delisted itself last yr ?? to avoid penalty

correction, not QC rules. IIRC is a requirement for all enbloc acquisitions, whether by listed or delisted developers, to complete and sell units within 5 years or there will be some charges.

Kelonguni
17-08-17, 06:39
https://www.reach.gov.sg/participate/discussion-forum/2017/02/03/sla-clarifies-on-the-qualifying-certificate

5 years to complete, and further 2 years to sell.

And only for foreign or listed developer.

bargain hunter
17-08-17, 07:38
Enbloc, from enbloc to moving out, to tearing down, to contruction, to TOP can take up to 8years...

SL which is not listed, will not be subjected to the 5year rule ...

They can take their time to sell ...

"There is a risk that the developer may end up having to pay the 15 per cent ABSD (additional buyer's stamp duty) on the purchase price of the land, with interest of 5 per cent per annum, if it does not fulfil the conditions for upfront remission of ABSD," said a market watcher.

there is no QC but there is still a timeline for ABSD remission.

Kelonguni
17-08-17, 08:20
Add 15% of purchase price brings total land costs to 1.16 billion.

Most likely will already be factored into the selling price in stages. I think they are fully prepared to pay this amount even if incurred.

In any case, wait and see!

patches
17-08-17, 09:21
Q1 : About 4 months if no objection Sales Order will be issued by STB. If there is objection, STB will mediate, if fails, High Court hearing and High Court will issue Sales Order or invalidate the Sales….no timeline be guaranteed. Case Reference : Shunfu, Minton Rise at Lor Ah Soo, and Gillman Heights, Waterfront View

Q2 : Date of Sales Order

Q3. I doubt very much you can appeal even you did not consent to sell as the Sales Order is binding on all SPs. All investments come with risk. You can refer to Waterfront View case for interesting read, may be relevant.

Thank you for your response. Does the "Date of Sale" refer to the official offer made by the developer after approval granted by STB?

tonymontana
17-08-17, 09:38
looks like at least 1000psf when open for sale? 1000psf is the new 400psf for OCR condo.

PropVestor
17-08-17, 10:31
SL has some deep love for large pieces of land in Singapore. Vision Exchange is one and so is their KL Trillion. They are not there to fight over small pieces of land like the recent Amber plot which is odd size. Once you have large pieces of land, you can always cut them up or create something differentiating which no one else has. Its like having a bigger sandbox to play with.

Perhaps when they look ahead, there are lesser large pie going around for current prices. Also potentially safeguarding the foreign bullish developers. They might think paying $1 billion+ (with taxes and DC) is a fair deal. I think so too.

Those not vested today will just have to pay higher psf.

Earlier this year, when I mentioned closing in $2,000 for RCR prices (caveat on micro location) and there is disbelief. Not that inconceivable today. OCR properties (caveat applies) will close this gap in a matter of years as costs go up like labour, water (how else to pay for the 5th Jurong Island sea water desalination plant in 2020) and raw materials. As such is the science of inflation which usually creeps up on consumers unknowingly. We make noise but so what? We just need to see slightly further ahead as $1,500+ as the average psf for better located OCR soon. Disbelief?

2 cents,
PropVestor

Kelonguni
17-08-17, 10:55
Disbelief? No problem, just wait alongside those who have no need or ability to buy... yet.





Those not vested today will just have to pay higher psf.

Earlier this year, when I mentioned closing in $2,000 for RCR prices (caveat on micro location) and there is disbelief. Not that inconceivable today. OCR properties (caveat applies) will close this gap in a matter of years as costs go up like labour, water (how else to pay for the 5th Jurong Island sea water desalination plant in 2020) and raw materials. As such is the science of inflation which usually creeps up on consumers unknowingly. We make noise but so what? We just need to see slightly further ahead as $1,500+ as the average psf for better located OCR soon. Disbelief?

2 cents,
PropVestor

bargain hunter
17-08-17, 12:36
looks like at least 1000psf when open for sale? 1000psf is the new 400psf for OCR condo.

1000psf for new launches will be a thing of the past when the current stock is cleared.

for this plot, minimum is already 12xxpsf and chances are, they will want to sell at it at at least 13xxpsf.

patches
17-08-17, 13:15
1000psf for new launches will be a thing of the past when the current stock is cleared.

for this plot, minimum is already 12xxpsf and chances are, they will want to sell at it at at least 13xxpsf.

Given an estimated timeline of 12 months (i.e. 6 months for STB to approve and another 6 months for residents to move out), we are looking to see SL pitching this new launch from 3rd or 4th quarter in 2018?

bargain hunter
17-08-17, 13:44
Given an estimated timeline of 12 months (i.e. 6 months for STB to approve and another 6 months for residents to move out), we are looking to see SL pitching this new launch from 3rd or 4th quarter in 2018?

really depends on how quickly this can be settled. seems like en-bloc sites can't come back on the market as soon as GLS sites. GLS sites take 1 year to 15 months. looks more like a 2019 project launch to me for this tampines court.

patches
17-08-17, 15:20
really depends on how quickly this can be settled. seems like en-bloc sites can't come back on the market as soon as GLS sites. GLS sites take 1 year to 15 months. looks more like a 2019 project launch to me for this tampines court.

The time frame depends on the conditions that SL has set for TC. Putting aside the element of "conditions", in theory, how long do you think a developer can launch from their en bloc purchase?

In recent en blocs (especially those that have tried to en bloc previously), I was under the impression that the process of collecting the signatures (i.e. ~80% threshold for older estates) have been much quicker than before, thereby reducing the overall process of launching new units.

bargain hunter
17-08-17, 15:59
The time frame depends on the conditions that SL has set for TC. Putting aside the element of "conditions", in theory, how long do you think a developer can launch from their en bloc purchase?

In recent en blocs (especially those that have tried to en bloc previously), I was under the impression that the process of collecting the signatures (i.e. ~80% threshold for older estates) have been much quicker than before, thereby reducing the overall process of launching new units.

there could still be some disputes raised even though 80% signed. The timeframe at STB may be uncertain. A big site like this also takes more planning on SL's side. I still think its a 2019 project launch.

Laguna
17-08-17, 19:44
It would take 2 months for the lawyer to serve notification to all the SPs. and minority can serve objection within 21 days of this notification. So, when can the Sales Order be obtained is uncertain. From Tampines Court enbloc blog, look like objection is highly likely if there is valid ground. The reserve price was worked out when market was quite, now they are looking at $2m an unit after EunosVille of $2.3m an unit.

Rent free period is 6-9 months.

But once the Sales Order is obtained, SL can immediately work on the planning approval.
1Q 19 more likely to launch if everything smooth

Laguna
17-08-17, 19:45
Thank you for your response. Does the "Date of Sale" refer to the official offer made by the developer after approval granted by STB?

Sales Order given by STB if no objection or High Court or even Court of Appeal if there is objection.
The official offer by developer is at the tender closing and not later.

Tulip09
17-08-17, 20:54
Likely there will be objections given their past history and also the failure of their strategy which I heard was to price it " low " enough to attract a bidding war. This didn't happen and given that the other HUDCs that were sold this year attracted relatively higher prices above their Reserve prices, minority owners will be displeased. Some of the majority may be disappointed too. But their site is bigger than the others and location not as good as Eunosville so this may be the best case scenario for them. There have been a lot of GLS in Tampines in recent years too so it won't be easy to sell out with so much competition on the market. Many of these projects are sizable but of your this site mega and may need to be launched in phases like the Waterfront series. Moreover I think with 1.7M they can get a comparable unit in the same dist. Resale of similar size or a smaller 3 bedroom. At this point in time anyway.
Normanton Park owners won't be able to get a replacement in the same location at the price they are asking.
https://www.tracygoh.sg/property-news/normanton-park-en-bloc-2017/

Tulip09
19-08-17, 14:06
I hear the Marketing Agent is arranging a meeting at their office on the 25 th for owners to be informed of details of the offer and conditions. By then I believe the decision would also have been made so we should hear about it not long after. My guess is they will accept.

VS
23-08-17, 09:14
Tampines Court deal confirmed done.

bargain hunter
23-08-17, 11:05
Tampines Court deal confirmed done.

so what were the conditions?

bargain hunter
23-08-17, 14:52
http://www.businesstimes.com.sg/real-estate/sim-lian-clinches-tampines-court-enbloc-for-s970m

Laguna
23-08-17, 15:01
It is on their Facebook also

http://www.tampinescourt.net

Kelonguni
23-08-17, 15:30
Cheap cheap and factored into final sales prices.

If you know you need to buy, please continue to wait.


Add 15% of purchase price brings total land costs to 1.16 billion.

Most likely will already be factored into the selling price in stages. I think they are fully prepared to pay this amount even if incurred.

In any case, wait and see!

HP65
24-08-17, 10:46
Sweet news that Sim Lian has sealed the deal. Hopefully this is 3rd time lucky for the chaps who voted for it. Hopefully there isn't too much opposition.

Looking forward to more successful enbloc news!

Arcachon
24-08-17, 10:57
Property Price going to CRASH, so many en-bloc for the BEAR only.

patches
24-08-17, 12:44
Sweet news that Sim Lian has sealed the deal. Hopefully this is 3rd time lucky for the chaps who voted for it. Hopefully there isn't too much opposition.

Looking forward to more successful enbloc news!

"I never believe in enbloc and will never support enbloc."

Familiar words?

Arcachon
24-08-17, 12:50
"I never believe in enbloc and will never support enbloc."

Familiar words?

Welcome to the real World.

Notice HDB going taller, for those buying resale you know what to buy right.

PropVestor
24-08-17, 13:14
Congrats to the newly or re-minted 560 millionaires. Time to go shopping!

Another almost $1 billion injected into the re-sale market and economy. We need a few more hundred millions in the next 12 months!

star
24-08-17, 13:15
Welcome to the real World.

Notice HDB going taller, for those buying resale you know what to buy right.

Privatised HUDC best bet for enbloc.

Arcachon
24-08-17, 13:57
Privatised HUDC best bet for enbloc.

3 years SSD

On and after 11 Mar 2017
Up to 1 year -------------------------- 12%
More than 1 year and up to 2 years-- 8%
More than 2 years and up to 3 years-- 4%
More than 3 years --------------------- No SSD payable


https://www.iras.gov.sg/irashome/Other-Taxes/Stamp-Duty-for-Property/Working-out-your-Stamp-Duty/Selling-or-Disposing-Property/Seller-s-Stamp-Duty--SSD--for-Residential-Property/

patches
24-08-17, 15:05
Welcome to the real World.

Notice HDB going taller, for those buying resale you know what to buy right.

Was simply quoting HP65's exact words in early 2011.

Kelonguni
24-08-17, 15:38
Was simply quoting HP65's exact words in early 2011.

That's why we need to be aware of kelongism in whatever we see posted online.

People often have their agenda and their stance can change depending on which side of the boat they are on. Few will speak their honest understanding and interpretation all the time. I guess he must have been vested again since 2011.

Most important is read and interpret the signs yourself.

HP65
24-08-17, 17:33
........

august
24-08-17, 17:59
"I never believe in enbloc and will never support enbloc."

Familiar words?

Hahahaha

patches
24-08-17, 20:41
........

Wise words from keyboard warrior, HP65, in January 2011. So much about smelling my BS. Wonder who is the bigger BS with an agenda.

0 credibility, Mr Big Picture who doesn't believe and will never support en bloc, but so happen to be very strongly supportive of Normanton's chance. Haha!

Kelonguni
24-08-17, 20:43
6 years later you will also be a convert. And someone will pull one of your statements from 2017. You believe?


Wise words from keyboard warrior, HP65, in January 2011. So much about smelling my BS. Wonder who is the bigger BS with an agenda.

0 credibility, Mr Big Picture who doesn't believe and will never support en bloc, but so happen to be very strongly supportive of Normanton's chance. Haha!

patches
24-08-17, 20:47
6 years later you will also be a believer. You believe?

Kelonguni, I have made my stand clearly in the Normanton thread where I think we will see an inflexion point in property en bloc wave in around 16 months, whether that takes the entire property market much higher or lower, we won't know. If you want me to have a long term view of 10-30 years, yes property is a safe asset as part of our investment allocation. Whether a good or poor entry point is dependent of one's perspective of market timing and opportunity. As many have already pointed out, today's market is a very fragmented one, where one can find opportunities with low downside.

HP65
24-08-17, 22:00
"I never believe in enbloc and will never support enbloc."

Familiar words?

Of course! I said it...glad you brought it up. Looks like you are a reincarnated nick! So which nick were you using before your life as Patch? Why do you need to change your nick ;-) You remember my words spoken awhile ago. Or you actually bother to trace all 526 past postings of mine to pick this out. Either way, I'm honored to have a follower here in condosingapore.

Correct! I have changed my stance now....since you pointed it out....I'll tell you a secret why....

Back then developers thought we owners were stupid. They played hard ball, offered low premium over what we can get from selling individually. They also thought they can buy from GLS if we do not sell.

Unfortunately they lost out on opportunities and lately, they also got muscled out by China developers in GLS. They had no choice but to turn to enbloc route again and offer higher premium to sellers now. It also helped that prices has dropped in the last 2-3 years so it's also easier for sellers to get back into the market (good trade old for new/ newer properties although smaller) with the enbloc monies. So why not? I'm glad I'm vindicated for speaking up against enbloc back then. If not, how can we be in a better position now?

HP65
24-08-17, 22:06
Wise words from keyboard warrior, HP65, in January 2011. So much about smelling my BS. Wonder who is the bigger BS with an agenda.

0 credibility, Mr Big Picture who doesn't believe and will never support en bloc, but so happen to be very strongly supportive of Normanton's chance. Haha!

I think i have stated my agenda all along, i only want ppty prices to go up...1 way up, in a sustainable manner.....i am a multiple ppty owner...i want to make good money. Back in 2011, enblockers gonna lose out...now, its a different story. At this point of the price curve, take the money and reinvest unless you need the cash. And for investors with new ppty that can't benefit from the enbloc directly, enbloc will benefit us by:-

1) reducing short term supply, thus boosting demand for the rest of us
2) ultimately reintroducing supply that cost more for new buyers. So current investors ppty are `cheaper' in comparison.

I have bare my soul...so what's my agenda :D

HP65
24-08-17, 22:11
Kelonguni, I have made my stand clearly in the Normanton thread where I think we will see an inflexion point in property en bloc wave in around 16 months, whether that takes the entire property market much higher or lower, we won't know. If you want me to have a long term view of 10-30 years, yes property is a safe asset as part of our investment allocation. Whether a good or poor entry point is dependent of one's perspective of market timing and opportunity. As many have already pointed out, today's market is a very fragmented one, where one can find opportunities with low downside.

What kind of `stand' is that, hahaha...hand stand? Or Sitting on the fence...."whether market will go up or down, we won't know"....might as well not say it...joker.

Kelonguni
24-08-17, 22:38
It does sound like the Malaysia bomoh...

It's either high up in the sky, or landed.

Call a spade a spade.


What kind of `stand' is that, hahaha...hand stand? Or Sitting on the fence...."whether market will go up or down, we won't know"....might as well not say it...joker.

HP65
24-08-17, 23:02
It does sound like the Malaysia bomoh...

It's either high up in the sky, or landed.

Call a spade a spade.

Anyway like you said, this is a ppty forum...so people who visit this forum will eventually buy ppty. So they will become a believer eventually :p...and then they will change their nick...maybe call `Patch up" lol

teddybear
24-08-17, 23:54
Ha ha ha!
Soon Kelonguni property will want to sell at Hermes price......... Don't think sparrow can become pheonix?


Anyway like you said, this is a ppty forum...so people who visit this forum will eventually buy ppty. So they will become a believer eventually :p...and then they will change their nick...maybe call `Patch up" lol

Kelonguni
25-08-17, 07:25
Sparrow or Phoenix, mine are just nestlings.

Not looking to sell at the moment. Even add 20% still not worth the various taxes and effort to sell.

May buy one more if a suitable gap arises though.


Ha ha ha!
Soon Kelonguni property will want to sell at Hermes price......... Don't think sparrow can become pheonix?

HP65
25-08-17, 07:56
Sparrow or Phoenix, mine are just nestlings.

Not looking to sell at the moment. Even add 20% still not worth the various taxes and effort to sell.

May buy one more if a suitable gap arises though.

Not sure how many you have....sounds like more than 2. Also not sure if you have kids, have 1 per kid and 1 for own stay is more than enough imo.

My suggestion is look at other countries or other investments. Look for private equity venture...its rewarding and I don't mean financially alone. I lost monies in some of these companies (completely) but I learnt a lot and made a lot more friends (a lot younger too) in the process.

Kelonguni
25-08-17, 08:40
Yes, into those areas too. But the rent also depreciates as SGD still grows faster than some of these high growth SEA countries.

Enough currently for 1 per kid plus 1 to stay. Also currently considering options to stay elsewhere in the medium to long term. SG is a fantastic place to work and have kids but the culture can be stifling. I do change my mind often about this though.


Not sure how many you have....sounds like more than 2. Also not sure if you have kids, have 1 per kid and 1 for own stay is more than enough imo.

My suggestion is look at other countries or other investments. Look for private equity venture...its rewarding and I don't mean financially alone. I lost monies in some of these companies (completely) but I learnt a lot and made a lot more friends (a lot younger too) in the process.

teddybear
25-08-17, 08:52
I am sure that you will sell sooner or later because your 99-years lease will run down and when your property is >30 years old there will be few buyers (if any)................


Sparrow or Phoenix, mine are just nestlings.

Not looking to sell at the moment. Even add 20% still not worth the various taxes and effort to sell.

May buy one more if a suitable gap arises though.

Arcachon
25-08-17, 09:28
I am sure that you will sell sooner or later because your 99-years lease will run down and when your property is >30 years old there will be few buyers (if any)................

Don't made me sing the same song again.

Arcachon
25-08-17, 09:39
https://www.edgeprop.sg/content/top-condos-en-bloc-potential

Kelonguni
25-08-17, 10:07
Most likely my child(ren) holding the LH or FH will get to make the decision after I pass on. I most likely will opt not to sell given the trend of shrinking sizes especially the one for own stay.




I am sure that you will sell sooner or later because your 99-years lease will run down and when your property is >30 years old there will be few buyers (if any)................

PropVestor
25-08-17, 10:43
Most likely my child(ren) holding the LH or FH will get to make the decision after I pass on. I most likely will opt not to sell given the trend of shrinking sizes especially the one for own stay.

Agree. I get what you mean bro. I have a hard time letting go of space (2,800 sqft) in my Meyer Road dwelling. When I look at Duo 4 bedder (1,900 sqft) and compare against the $11 mil penthouse (3,200 sqft), I am staring at reality. Its either I move further away or I really, really downgrade in size. There is no way I can afford $11 mil at Duo PH.

Whatever we talk about LH or FH etc, sometimes it is not us who will make the decision to sell or stay. We just hope for the best they will make the best decision for themselves. We just need to do our part.

PropVestor

reporter2
31-08-17, 23:14
Tampines Court sold en bloc for $970m

AUG 24, 2017

Biggest collective sale since 2007 for ex-HUDC estate; site could yield more than 2,000 new units

Annabeth Leow


Developer Sim Lian has snapped up sprawling Tampines Court for a cool $970 million as the collective sale market here continues to sizzle.

It is the largest such deal for a former Housing and Urban Development Company property in a decade since Farrer Court changed hands for $1.34 billion in 2007.

The 560-unit development, in Tampines Street 11, went on the market last month after two previous failed attempts at a collective sale.

The price for the privatised property works out to about $676 per sq ft (psf) per plot ratio, said Mr Terence Lian, head of investment sales at marketing agent Huttons Asia. Each owner stands to get about $1.71 million to $1.75 million.

The developer will need to make two payments to the state - one for enhancing the intensity of the site to a gross plot ratio of 2.8, representing the maximum gross floor area to land area ratio, and another to top up the lease to 99 years, from the leftover tenure of 69 years.

The value of the premiums is about $359 million - on top of the sale price.

Mr Lian told The Straits Times: "After one week of rigorous negotiations, we have reached a satisfactory resolution on the conditions to the sale of Tampines Court."

Property industry watchers believe the 702,164 sq ft site could be turned into a project of about 2,000 to 2,100 new units - or as many as 2,600 units, if the site is stretched to its limits.

This could be both a boon and bane for Sim Lian, the watchers said.

Mr Galven Tan, CBRE director of capital markets, told The Straits Times: "It was mentioned in the media that there was only one bidder for the tender. It was the size of the development that really deterred participation."

Sim Lian will have a window of just five years to develop and sell all the units, if it is to avoid paying additional buyer's stamp duty on the land price, analysts cautioned.

Mr Nicholas Mak, executive director of ZACD Group, said: "Presently, there is no new condo project scheduled to be launched in the vicinity of Tampines Court. Hence, there would be few competitors for the new condo project on this site."

He estimated that the break-even price for the project would be between $1,050 psf and $1,150 psf.

CBRE's Mr Tan also noted that the land's cost to developers could be passed on to buyers in terms of slightly higher home prices.

There has been a bumper crop of collective sales here this year, with more potentially on the way.

Former HUDC estate Florence Regency went up for sale on Tuesday, with an asking price of at least $600 million, just a day after Normanton Park condominium residents launched a fresh tender.

Mr Tan said that more home owners could jump on the collective sale bandwagon in the next three to six months, which will appeal to developers looking to replenish their land banks.

This could reflect an expectation of stronger market sentiment over the coming year or so.


Other collective sales this year

Seven other deals on collective sales have been sealed so far this year, to the tune of $2.5 billion. This is far more than the three deals, worth $1 billion, for all of last year.

ONE TREE HILL GARDENS

The Strata Titles Board last Friday approved the year's first collective sale, which took place in May. The site went to Lum Chang Holdings for $65 million, and the developer plans to redevelop it into semi-detached houses and bungalows.

CITIMAC INDUSTRIAL COMPLEX

A freehold industrial site at the junction of MacPherson and Paya Lebar roads, the 110- strata-unit property was snapped up in late July by an unnamed foreign buyer for $430.1 million.

SERANGOON VILLE

July also saw the former HUDC estate in Serangoon North Avenue 1, on a 296,913 sq ft triangular-shaped plot, sold for $499 million to an Oxley Holdings-led consortium.

THE ALBRACCA

The condominium in Meyer Road changed hands in July for $69.1 million in a deal with developer Sustained Land, and could be redeveloped into a 65-unit high-rise project.

EUNOSVILLE

The privatised HUDC property was sold in June for $765 million to a Jardine Matheson Group unit, MCL Land. The owners had asked for just $643 million to $653 million when launching the site for tender.

RIO CASA

The former HUDC estate in Hougang Avenue 7 was sold in May for $575 million to Oxley- Lian Beng Venture, a joint venture comprising KSH Development, Oxley Holdings, Lian Beng Group and Apricot Capital.

GOH & GOH BUILDING

Alika Properties, a unit of BBR Holdings, in May snapped up the freehold property at 110 to 122 Upper Bukit Timah Road for $101.5 million. It comprises seven apartments and seven shops.

teddybear
31-08-17, 23:20
There is almost 100% certainty they will sell before the property reaches 99-years of age, but at the same time cursing why leave a 99-years leasehold property to them that will surely depreciating in price over time. If only they inherited a freehold property and the price will only increase with inflation and not depreciate as the 99-years deadline nears.............. :cat:


Most likely my child(ren) holding the LH or FH will get to make the decision after I pass on. I most likely will opt not to sell given the trend of shrinking sizes especially the one for own stay.

reporter2
31-08-17, 23:26
Sim Lian plans over 2,000 units at Tampines site

It will pay S$970m or S$676 psf ppr for Tampines Court collective sale; YTD en bloc sale tally of S$3.48b is the best showing since 2007

August 24, 2017


SIM Lian plans to develop a condo with more than 2,000 units on the Tampines Court site which has been awarded to it for S$970 million.

At S$970 million, this is the second-largest collective sale in dollar quantum after Farrer Court, which went for S$1.3388 billion back in 2007.

Inclusive of Tampines Court, eight collective sales totalling S$3.48 billion have been inked so far this year, surpassing the three deals worth a tad over S$1 billion for the whole of 2016, based on JLL's figures.

The year-to-date tally is the best showing since 2007, when S$11.52 billion of collective sales were done. JLL's figures cover collective sales across all property sectors.

Huttons Asia brokered the collective sale of Tampines Court, which is near Simei MRT Station. The tender closed on Aug 15 and was awarded on Tuesday night.

The property agency's head of investment sales, Terence Lian, estimates that the S$970 million price translates to S$676 per square foot per plot ratio inclusive of an estimated S$359 million that Sim Lian will have to pay to the state for differential premium (based on the current March 1, 2017 development charge or DC rates) and lease upgrading premium for topping up the site's lease to 99 years from the current balance lease term of 69 years.

The differential premium is payable for enhancing the intensity of the site to a gross plot ratio of 2.8.

The S$970 million price achieved for Tampines Court exceeds the reserve price of S$952 million in the collective sale agreement inked by the majority owners of the privatised Housing and Urban Development Company (HUDC) estate.

Owners controlling about 83 per cent of Tampines Court's share value and strata area have agreed to the sale so far.

The development comprises 560 units with sizes of between 1,658 sq ft and 1,733 sq ft across 14 blocks. Owners will receive sums ranging from S$1.71 million to S$1.75 million per unit.

Tampines Court is on a 702,164-sq-ft sprawling site. Based on the site's 2.8 plot ratio under the Urban Redevelopment Authority's Master Plan 2014, the site can accommodate a maximum gross floor area of nearly 1.97 million sq ft.

Ken Kuik, managing director of Sim Lian Holdings, said Tampines, a sought-after mature estate, is set to become more exciting with the expansion of Changi Airport.

"This, combined with the fact that new MRT stations are coming up in the Tampines area, will attract more residential property buyers as well as enhance the investment proposition for the area," he added.

The group is making the acquisition through Sim Lian (Treasure), a joint venture between Sim Lian Development and Sim Lian Land. The group will also handle the project's construction. "We're looking at a 12-storey project with easily over 2,000 units, ranging from one-bedders to four or even five-bedders," said Mr Kuik.

The group does not have any undeveloped residential land bank in Singapore. It has developed a range of housing projects in Tampines - The Premiere and Centrale 8 DBSS (Design, Build and Sell Scheme) projects for the Housing & Development Board, The Tampines Trilliant executive condo development and Waterview, a private condo.

A market watcher estimated that after factoring in an anticipated hike in DC rates come Sept 1, 2017 and other costs, Sim Lian's breakeven cost could be around S$1,200 psf.

The collective sale will be subject to approval by the Strata Titles Board (STB) and if necessary the High Court - unless unanimous approval from owners is obtained.

The property and construction group will have to finish developing the new project on the site and selling all of its units within five years from the collective sale order granted by the STB or the court - as part of the conditions for upfront remission of the 15 per cent additional buyer's stamp duty on the land price.

This is the third attempt at a collective sale at Tampines Court. The maiden effort for S$405 million was dismissed by the STB in 2008. A second attempt in 2011 failed to garner the required consent level from owners, according to earlier articles.

Kelonguni
01-09-17, 01:05
So hold forever and ever nobody buys is better?


There is almost 100% certainty they will sell before the property reaches 99-years of age, but at the same time cursing why leave a 99-years leasehold property to them that will surely depreciating in price over time. If only they inherited a freehold property and the price will only increase with inflation and not depreciate as the 99-years deadline nears.............. :cat:

Arcachon
01-09-17, 06:42
There is almost 100% certainty they will sell before the property reaches 99-years of age, but at the same time cursing why leave a 99-years leasehold property to them that will surely depreciating in price over time. If only they inherited a freehold property and the price will only increase with inflation and not depreciate as the 99-years deadline nears.............. :cat:

I don't mind my father leave me a 99 years leasehold property, problem is he don't even have one when he die.

He is the best father to me, I learn what he do and do my best not to follow him.

To my Son I give him all the knowledge I know and ask him to do it better.

Arcachon
01-09-17, 06:48
Sim Lian plans over 2,000 units at Tampines site

It will pay S$970m or S$676 psf ppr for Tampines Court collective sale; YTD en bloc sale tally of S$3.48b is the best showing since 2007

August 24, 2017


SIM Lian plans to develop a condo with more than 2,000 units on the Tampines Court site which has been awarded to it for S$970 million.

At S$970 million, this is the second-largest collective sale in dollar quantum after Farrer Court, which went for S$1.3388 billion back in 2007.

Inclusive of Tampines Court, eight collective sales totalling S$3.48 billion have been inked so far this year, surpassing the three deals worth a tad over S$1 billion for the whole of 2016, based on JLL's figures.

The year-to-date tally is the best showing since 2007, when S$11.52 billion of collective sales were done. JLL's figures cover collective sales across all property sectors.

Huttons Asia brokered the collective sale of Tampines Court, which is near Simei MRT Station. The tender closed on Aug 15 and was awarded on Tuesday night.

The property agency's head of investment sales, Terence Lian, estimates that the S$970 million price translates to S$676 per square foot per plot ratio inclusive of an estimated S$359 million that Sim Lian will have to pay to the state for differential premium (based on the current March 1, 2017 development charge or DC rates) and lease upgrading premium for topping up the site's lease to 99 years from the current balance lease term of 69 years.

The differential premium is payable for enhancing the intensity of the site to a gross plot ratio of 2.8.

The S$970 million price achieved for Tampines Court exceeds the reserve price of S$952 million in the collective sale agreement inked by the majority owners of the privatised Housing and Urban Development Company (HUDC) estate.

Owners controlling about 83 per cent of Tampines Court's share value and strata area have agreed to the sale so far.

The development comprises 560 units with sizes of between 1,658 sq ft and 1,733 sq ft across 14 blocks. Owners will receive sums ranging from S$1.71 million to S$1.75 million per unit.

Tampines Court is on a 702,164-sq-ft sprawling site. Based on the site's 2.8 plot ratio under the Urban Redevelopment Authority's Master Plan 2014, the site can accommodate a maximum gross floor area of nearly 1.97 million sq ft.

Ken Kuik, managing director of Sim Lian Holdings, said Tampines, a sought-after mature estate, is set to become more exciting with the expansion of Changi Airport.

"This, combined with the fact that new MRT stations are coming up in the Tampines area, will attract more residential property buyers as well as enhance the investment proposition for the area," he added.

The group is making the acquisition through Sim Lian (Treasure), a joint venture between Sim Lian Development and Sim Lian Land. The group will also handle the project's construction. "We're looking at a 12-storey project with easily over 2,000 units, ranging from one-bedders to four or even five-bedders," said Mr Kuik.

The group does not have any undeveloped residential land bank in Singapore. It has developed a range of housing projects in Tampines - The Premiere and Centrale 8 DBSS (Design, Build and Sell Scheme) projects for the Housing & Development Board, The Tampines Trilliant executive condo development and Waterview, a private condo.

A market watcher estimated that after factoring in an anticipated hike in DC rates come Sept 1, 2017 and other costs, Sim Lian's breakeven cost could be around S$1,200 psf.

The collective sale will be subject to approval by the Strata Titles Board (STB) and if necessary the High Court - unless unanimous approval from owners is obtained.

The property and construction group will have to finish developing the new project on the site and selling all of its units within five years from the collective sale order granted by the STB or the court - as part of the conditions for upfront remission of the 15 per cent additional buyer's stamp duty on the land price.

This is the third attempt at a collective sale at Tampines Court. The maiden effort for S$405 million was dismissed by the STB in 2008. A second attempt in 2011 failed to garner the required consent level from owners, according to earlier articles.

My friend ask me what property is good to buy.

He told me about another property agent friend who told him about Tampines Court a few year ago good to buy but he did not buy.

I told him it is a waste of my time for me to explain what is good to buy because it will be another Tampines Court.

teddybear
01-09-17, 10:03
With forever DC increase by the government, people will have less and less chance of their 99-years leasehold properties getting enbloc like Tampines Court.
Tampines Court is the past, like Polariod. To earn big money, people have to learn to predict the future trend and invest in that direction.........


My friend ask me what property is good to buy.

He told me about another property agent friend who told him about Tampines Court a few year ago good to buy but he did not buy.

I told him it is a waste of my time for me to explain what is good to buy because it will be another Tampines Court.

Arcachon
01-09-17, 10:50
With forever DC increase by the government, people will have less and less chance of their 99-years leasehold properties getting enbloc like Tampines Court.
Tampines Court is the past, like Polariod. To earn big money, people have to learn to predict the future trend and invest in that direction.........

Sound familiar when I sold my 4 room HDB in 1995, people who know tell me it will never happen again.

Guess what happen.

My Brother just got Cancer, how many 10 years do you have.

Hi, they have prepared the tissues for microscopic examination and found that the tumour on the pancreas has poorly differentiated cells/young immature cells which will be hard to target and kill because they do not have many characteristics to target. There are also tumours in the lymph nodes around the pancreas that have spread from another part of the body.
However the spleen, adrenal gland and gallbladder are free of tumours even though a small part of the spleen has detached and moved right a bit to the root of the spleen.
The gallbladder has been chronically injured and is inflamed.

I am sorry to hear about your brother, if you have anymore questions feel free to ask

I am happy when I can see Tommorrow.

We are here in this World for only a short period of time.

Moneyplant
02-09-17, 20:05
Sorry to hear about your brother, Arcachon. Indeed, how many ten years a person has ...

Arcachon
02-09-17, 20:41
Sorry to hear about your brother, Arcachon. Indeed, how many ten years a person has ...

I am Happy for him because his days are numbered, whereas mine don't know when.

Life is short for those who know, those who don't think they can live forever.