Nassim condo turns in surprisingly good sales
http://www.straitstimes.com/Money/St...ry_241703.html
May 28, 2008
$10M OR MORE FOR EACH UNIT
Nassim condo turns in surprisingly good sales
A LUXURY condominium in the posh Nassim area has turned in surprisingly good preview sales, even as property analysts are predicting a sharp slowdown in the high-end home segment.
Buyers have taken up 38 units at Nassim Park Residences, forking out a whopping $10 million or more for each apartment, sources said.
The 100-unit development, which United Overseas Land (UOL) is building on the former Nassim Park site in Nassim Road, is understood to be priced upwards of $3,000 per sq ft (psf).
The project consists of only four-bedroom and penthouse apartments. Each of the four-bedders is believed to be at least 3,000 sq ft in size, while the penthouses are between 6,000 sq ft and 7,000 sq ft.
UOL declined to comment on the figures yesterday, but sources said the developer might not release some of the units and instead keep them for its own use.
Nassim Park Residences is the first major luxury development to be released for sale this year. Most other launches, especially large, high-end ones, have been held back as developers wait out the market gloom.
Elsewhere, some smaller projects have also seen brisk sales after discounts were offered. Over the Vesak Day weekend, Macly Group sold 60 per cent of the 102-unit Vutton in Novena at a 10 per cent discount off list prices, or about $1,100 psf to $1,400 psf.
FIONA CHAN
Re: Nassim condo turns in surprisingly good sales
Quote:
Originally Posted by mr funny
Buyers have taken up 38 units at Nassim Park Residences, forking out a whopping $10 million or more for each apartment, sources said.
:scared-4:
Re: Nassim condo turns in surprisingly good sales
Quote:
Originally Posted by jlrx
:scared-4:
I am not surprise if these buyers are actually previous enbloc sellers who are offered by the developers the units on the basis of contra.
And as such the developers just call them buyers to spruce up market sentiments.
I guess we have to be extremely careful about this. Buy with an open eye not just believe all the hype.
Re: Nassim condo turns in surprisingly good sales
Wee is not like Kwek, nor is UOL like other developers.
Property is also not Wee's main business.
I have never seen the Wees talk up property before. In fact they are more cautious than others.
Re: Nassim condo turns in surprisingly good sales
Quote:
Originally Posted by mike
I am not surprise if these buyers are actually previous enbloc sellers who are offered by the developers the units on the basis of contra.
And as such the developers just call them buyers to spruce up market sentiments.
I guess we have to be extremely careful about this. Buy with an open eye not just believe all the hype.
But UOL paid $380 million for the whole of Nassim Park (name of the previous en bloc development) and each of the previous en bloc owners only got about $3.7 million ($380 million divided by 104 owners).
They must cough up another $6.3 million each to buy a unit worth $10 million in the new development.
I suspect that the new buyers are not the old owners. Each time there is an en bloc, the old owners find it very hard to buy back the property in the same location. After my own en bloc, I got "chased out" of a prime district into suburban areas. :(
The new development that is being built on my previous en-blocked condo is now being "offered" to me at 2.5 times the money I collected from my en bloc for a similar-sized unit! :banghead:
I'm wondering who are these people who can afford to splurge $10 million for a Nassim Park condo unit. They must be extremely well-heeled. :spliff2:
Wow! This UOL is sitting on lots of profits. They sold 38 units at $10 million each and collected $380 million. That's exactly equal to the entire amount they paid for the entire Nassim Park en bloc site! :scared-4:
They've already recovered their land costs. No wonder they can afford to "not release some of the units and instead keep them for its own use."
UOL has another 62 units not released yet. So that's worth $620 million dollars. What is their construction costs? Hmmm ... maybe let's say $400 psf since this is upmarket condo, multiply by 100 units at average of 3000 sf. That's $120 million of construction costs.
Wow! That's still $500 million of profits!
I also want to be a developer. :p
Quote:
The Straits Times
31 August 2006
UOL buys Nassim Park for $380m
UNITED Overseas Land (UOL) has bagged the prime Nassim Park site for a whopping $380 million, making the Nassim Road property one of the most expensive collective sale deals ever.
The record is held by the 99-year leasehold Waterfront View in Bedok, which was bought by Far East Organization and Frasers Centrepoint for $385 million in May. For freehold properties, Lucky Tower in Grange Road takes top spot. It cost City Developments $383 million earlier this year.
Nassim Park’s price tag works out to about $1,107 per sq ft (psf) of potential gross floor area for the freehold site, which has a land area of 245,135 sq ft and a plot ratio of 1.4.
Each of the estate’s 104 owners will receive a premium of 70 per cent to 80 per cent over what their units would have fetched individually on the market. A flat of about 1,300 sq ft would fetch $2.2 million to $2.3 million. Savills Singapore handled the sale.
A new four-storey luxury development of about 130 units at 2,500 sq ft each can be built on the site, with an estimated breakeven price of between $1,700 psf and $1,800 psf, property consultants said.
UOL will also have to fork out at least $8 million in development charges for the plot, the first it has bought in a prime area in recent years.
