reporter2
21-07-22, 10:08
CK Asset hunting for land, JV collaboration in Singapore
Jul 14, 2022
HONG KONG-listed CK Asset Holdings is looking to purchase land in Singapore and exploring the possibility of a joint venture with Hongkong Land and Keppel Land on a large commercial project, said its executive director.
Justin Chiu told The Business Times (BT) on Thursday (Jul 14) while on a visit here that he held meetings with both companies, which the developer had previously collaborated with to develop the Marina Bay Financial Centre.
“The office market is becoming very strong, even the retail market,” he said, adding that given the scale of the 3 companies, they need a “huge development to justify the effort”.
“It is going to be in terms of a million square feet (sq ft),” Chiu said, adding that Singapore remains “one of the major interests of the CK group”.
“We've been here for probably 30 years now, since (its involvement in the development of) Suntec City, so we want to continue our business here.”
CK Asset is also eyeing some en bloc sites, amongst others, to replenish its landbank in the Republic.
Chiu said the company “almost bid for every piece of land in Singapore” in the last few years, but didn't get any because prices were too high. But with the cost of funds higher now, he believes local developers will be less aggressive in their bids, while the company’s financial discipline, low gearing and “very deep pocket” will enable it to afford purchases.
Chiu is looking for land to build projects with 300-400 units, or an overall gross floor area of at least 400,000 sq ft, as scale is needed to cover the higher expenses of a foreign developer. The preference is for a central, prime District 9, 10 or 11 site.
Giving updates at the developer’s 230-unit Perfect Ten condominium showroom, he said 59 out of the 115 units in one of the freehold project’s 2 towers have been sold. There were 39 2-bedroom units and 20 3-bedders transacted at an average price of S$3,000 per square foot. The second tower will be released for sale later this year or early next year.
Noting that sales picked up “quite a bit” in the last 2 months, Chiu said 80 per cent of the purchasers were Singaporeans, with 10 per cent being permanent residents and the remaining, foreigners. He believes the government’s latest property cooling measures have given local buyers “better opportunities”, as CK Asset’s previous projects would see 25 to 30 per cent overseas buyers.
As for the early purchaser of a unit in the Bukit Timah project who complained that prices were further reduced after a “one-time” discount, Chiu says it was a contractual agreement and the buyer knew the price when he signed it.
BT reported that the buyer purchased the unit after learning of the 5 per cent discount through his property agent. Chiu said this is a matter between the purchaser and the agent, and that he understands the buyer is now talking to the agent’s company.
He added that markets will see price fluctuations in the short term, but in general, given the stability and prosperity of Singapore, these movements will pass and buyers should not get “too affected” by them.
Jul 14, 2022
HONG KONG-listed CK Asset Holdings is looking to purchase land in Singapore and exploring the possibility of a joint venture with Hongkong Land and Keppel Land on a large commercial project, said its executive director.
Justin Chiu told The Business Times (BT) on Thursday (Jul 14) while on a visit here that he held meetings with both companies, which the developer had previously collaborated with to develop the Marina Bay Financial Centre.
“The office market is becoming very strong, even the retail market,” he said, adding that given the scale of the 3 companies, they need a “huge development to justify the effort”.
“It is going to be in terms of a million square feet (sq ft),” Chiu said, adding that Singapore remains “one of the major interests of the CK group”.
“We've been here for probably 30 years now, since (its involvement in the development of) Suntec City, so we want to continue our business here.”
CK Asset is also eyeing some en bloc sites, amongst others, to replenish its landbank in the Republic.
Chiu said the company “almost bid for every piece of land in Singapore” in the last few years, but didn't get any because prices were too high. But with the cost of funds higher now, he believes local developers will be less aggressive in their bids, while the company’s financial discipline, low gearing and “very deep pocket” will enable it to afford purchases.
Chiu is looking for land to build projects with 300-400 units, or an overall gross floor area of at least 400,000 sq ft, as scale is needed to cover the higher expenses of a foreign developer. The preference is for a central, prime District 9, 10 or 11 site.
Giving updates at the developer’s 230-unit Perfect Ten condominium showroom, he said 59 out of the 115 units in one of the freehold project’s 2 towers have been sold. There were 39 2-bedroom units and 20 3-bedders transacted at an average price of S$3,000 per square foot. The second tower will be released for sale later this year or early next year.
Noting that sales picked up “quite a bit” in the last 2 months, Chiu said 80 per cent of the purchasers were Singaporeans, with 10 per cent being permanent residents and the remaining, foreigners. He believes the government’s latest property cooling measures have given local buyers “better opportunities”, as CK Asset’s previous projects would see 25 to 30 per cent overseas buyers.
As for the early purchaser of a unit in the Bukit Timah project who complained that prices were further reduced after a “one-time” discount, Chiu says it was a contractual agreement and the buyer knew the price when he signed it.
BT reported that the buyer purchased the unit after learning of the 5 per cent discount through his property agent. Chiu said this is a matter between the purchaser and the agent, and that he understands the buyer is now talking to the agent’s company.
He added that markets will see price fluctuations in the short term, but in general, given the stability and prosperity of Singapore, these movements will pass and buyers should not get “too affected” by them.