Madeira
10-02-07, 20:55
Feb 10, 2007, The Straits Times
Buyers of 10% of One Shenton units back out of deal
By Fiona Chan
PROPERTY speculation may seem like a good way to make a quick buck, but not all would-be profiteers manage to pull it off. The Straits Times understands that buyers of more than 30 units at luxury condominium One Shenton in Shenton Way have backed out of their purchase options.
This amounts to an unusually high 10 per cent of One Shenton's 341 units - 10 times the average proportion of lapsed options in a typical residential development, according to market players. The 99-year leasehold condo was almost sold out within 30 hours of its soft launch on Jan 5, with some buyers putting up their units for resale the very next day. Market watchers said the buyers who have pulled out are likely to be failed speculators who had hoped to quickly resell their units but were unable to find takers, possibly due to high asking prices.
Home buyers generally put down 5 per cent of the home price for an option to purchase it, which they have three or four weeks to exercise. If they do so, they must fork out at least another 8 per cent for downpayment and stamp duty. If they opt not to buy, they forfeit 1.25 per cent of the property's purchase price. That could be about $50,000 for a $4 million four-bedroom one at One Shenton.
Property consultants said the high number of forfeits should serve as a warning to speculators who cannot afford to hold on to their properties.
'Speculators...should keep in mind that not every project can be profitable,' said Mr Nicholas Mak, director of research and consultancy at Knight Frank.
Mr Ku Swee Yong, director of business development and marketing at Savills Singapore, said these punters were 'probably amateurs who did not evaluate their financial options carefully and were caught up in the rush for Marina Bay homes'. Property players added that this may be the first sign of the speculative activity in Marina Bay cooling off. Property agents told The Straits Times that owners of Marina Bay homes who are trying to resell their units are having a tough time.
:) :) :)
Buyers of 10% of One Shenton units back out of deal
By Fiona Chan
PROPERTY speculation may seem like a good way to make a quick buck, but not all would-be profiteers manage to pull it off. The Straits Times understands that buyers of more than 30 units at luxury condominium One Shenton in Shenton Way have backed out of their purchase options.
This amounts to an unusually high 10 per cent of One Shenton's 341 units - 10 times the average proportion of lapsed options in a typical residential development, according to market players. The 99-year leasehold condo was almost sold out within 30 hours of its soft launch on Jan 5, with some buyers putting up their units for resale the very next day. Market watchers said the buyers who have pulled out are likely to be failed speculators who had hoped to quickly resell their units but were unable to find takers, possibly due to high asking prices.
Home buyers generally put down 5 per cent of the home price for an option to purchase it, which they have three or four weeks to exercise. If they do so, they must fork out at least another 8 per cent for downpayment and stamp duty. If they opt not to buy, they forfeit 1.25 per cent of the property's purchase price. That could be about $50,000 for a $4 million four-bedroom one at One Shenton.
Property consultants said the high number of forfeits should serve as a warning to speculators who cannot afford to hold on to their properties.
'Speculators...should keep in mind that not every project can be profitable,' said Mr Nicholas Mak, director of research and consultancy at Knight Frank.
Mr Ku Swee Yong, director of business development and marketing at Savills Singapore, said these punters were 'probably amateurs who did not evaluate their financial options carefully and were caught up in the rush for Marina Bay homes'. Property players added that this may be the first sign of the speculative activity in Marina Bay cooling off. Property agents told The Straits Times that owners of Marina Bay homes who are trying to resell their units are having a tough time.
:) :) :)