Reflections condo preview fetching up to $2,400 psf

Reflections at Keppel Bay hits average sale price of S$1,900 psf

By Jeana Wong, Channel NewsAsia | Posted: 04 April 2007 0013 hrs


SINGAPORE : Keppel Land's latest waterfront home project - Reflections at Keppel Bay - is set to transform Singapore's west side into a premium waterfront living enclave.

The property developer is seeing strong demand for the project, which is setting a new benchmark at an average price of S$1,900 per square foot.

Tuesday was Day One of the soft launch, and already, transacted prices for units at Reflections at Keppel Bay surpassed those at Marina Bay Residences - the most recent waterfront property launched.

Reflections is Keppel Land's latest waterfront residential development - and the second of five planned residential projects in the area.

The developer said it expected at least three-quarters of the units up for sale during Tuesday's soft launch to be taken up.

Augustine Tan, Director, Singapore Residential, Keppel Land, added, "And we've done very well. Initially, we wanted to just launch 80 units. But because of the demand...to satisfy our customers, we've actually increased to about 150 units.

"We've yet to tally our prices. But I think it'll be in the range of S$1,900 per square foot to S$1,950 per square foot."

Keppel Land plans to sell the units in phases of about 200 to 300 units each.

Mr Tan said, "We're very mindful that we do not disappoint our customers. So we will review the plans when we come to it. If we can sell over 500 units in a very short period, then we have to review our plans again on whether we want to immediately sell the rest or to wait for a while."

With direct access to a marina, analysts have said Reflections is the catalyst needed for the West Coast to turn into the new East Coast.

This was despite properties on the East Coast, especially near the Tanjung Rhu and Meyer Road area, being the conventional choice for waterfront living.

Donald Han, Managing Director, Cushman & Wakefield, said, "For the West Coast, you're targeting on a pent-up demand, something that has never been there. So we expect a fairly good launch. We expect good take-up. We expect the developers to control the supply, not to release everything at one go.

"The West Coast is now playing catch up with the East Coast. And depending on the sell out, whether this project is going to be a sell-out, or the reception from the investors, overall, prices are being re-evaluated quite comparative to the East Coast market for premier, desired, quality lifestyle residential projects."

Although the recreational community and food and beverage outlets in the area are not as established as the ones in the East Coast, analysts have said there are a few other things going for the area.

There is the Sentosa Integrated Resort, as well as business enclaves like the HarbourFront Centre, the Alexandra Technopark and conglomerates like the PSA and NOL to offer a steady stream of corporate tenants.

Keppel Land plans to open Reflections at Keppel Bay for sale to the public this Friday. - CNA/ms

April 4, 2007

Reflections condo preview fetching up to $2,400 psf

By Joyce Teo, Property Correspondent


http://img403.imageshack.us/img403/9...lectionzi1.png
DOING WELL: Keppel said it has sold around 124 out of 150 released units at the condo, designed by American architect Daniel Libeskind. The prices averaged $1,900 psf to $1,950 psf.


SALES for the latest 99-year leasehold waterfront condominium - Reflections at Keppel Bay - started yesterday with the highest price recorded at just over $2,400 per sq ft (psf).

Developer Keppel group said it has sold around 124 out of 150 released units at the condo, which was designed by renowned American architect Daniel Libeskind.

The prices averaged $1,900 psf to $1,950 psf - a new benchmark for the HarbourFront/ Sentosa area.

Another waterfront condo Marina Bay Residences in Marina Bay had achieved an average price of $1,950 psf last December.

Yesterday was the preview for directors, staff, business associates and a small group of very important guests.

At least 30 per cent of those who bought into the 1,129-unit project were foreigners, said Keppel Land director (Singapore residential) Augustine Tan.

Today and tomorrow will be the preview for invited guests, followed by the public launch on Friday.

'The plan is to release about 500 units progressively,' Mr Tan said at the 30,000 sq ft showflat last night, but more will be released if demand is strong.

The highest-priced unit so far - at just over $2,400 psf - was for a villa unit in a low-rise block. It cost around $8 million.

Reflections at Keppel Bay has six tall glass towers of 24 and 41 storeys and 11 shorter blocks of villa apartments.

Not all the blocks have sea views. Some units face the channel separating the project from Caribbean at Keppel Bay while others look over the Keppel Golf Course.

The project has 35 penthouses - including a 13,300 sq ft super penthouse - that are being kept back for sale at a later date, but bids are being sought. They will be priced higher than $2,400 psf, said Mr Tan, and will likely go to the highest bidders.

Keppel has received some offers from foreign funds for its tall glass towers but it has yet to decide if it will sell entire blocks this way.

Meanwhile, the positive vibes from Reflections has spilled over to Keppel's 969-unit Caribbean at Keppel Bay condo next door.

Recent resale deals have been done at close to or over $1,000 psf, with the highest being $1,314 psf, according to caveats lodged.

As recently as last November, there were deals made at as low as $600 psf to $800 psf.

Whatever it is , whoever buys right now , i will pray for them . Hopefully this gamble does not make them lose too much money , maybe a 30% loss will make them wake up their senses .

People rushing in to lose big money , Caveat emptor , buyer's beware . Before the casino has started , the gambling has began .

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Originally Posted by Unregistered

People rushing in to lose big money , Caveat emptor , buyer's beware . Before the casino has started , the gambling has began .

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Fool, if they make money (which I am sure cos time will tell), you should go jump into the sea between Reflection and Keppel Club.

Lose the fight for an unit, just say lose. Don't be a sour grape!

Unless you are one the of fools that bought a unit there , shut up , unless you are a property agent .

I really don't understand what is there to argue here.
If you think the market is bullish, just say it.
If you think the market is bearish, just say it too.
There is no need to argue whether it is bullish or bearish.
Take it easy!

Go and give yourself a break.
Go down to Suntec City and attend the City Scape Asia 2007 conference. You can enjoy yourself and make friends with investors and funds.

www.cityscapeasia.com
http://www.cityscapeasia.com/Images/...yscapeasia.png

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Originally Posted by Police

I really don't understand what is there to argue here.
If you think the market is bullish, just say it.
If you think the market is bearish, just say it too.
There is no need to argue whether it is bullish or bearish.
Take it easy!

Go and give yourself a break.
Go down to Suntec City and attend the City Scape Asia 2007 conference. You can enjoy yourself and make friends with investors and funds.

www.cityscapeasia.com
http://www.cityscapeasia.com/Images/...yscapeasia.png

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Agree.
Right from this posting onwards, no more fighting please.
Let's have more constructive discussion here.
Thanks.

Published April 12, 2007

Homes: concern over deferred payment plans

Fears that such schemes are shifting financing burden from households to developers and builders

By SIOW LI SEN


(SINGAPORE) Deferred payment schemes - said to be one of the factors fuelling the local property market - are drawing the attention of the Monetary Authority of Singapore (MAS).

Such schemes are so popular with buyers that while the property market is red hot, it has not translated into healthy home loans growth.

Instead, deferred payment schemes have shifted the burden of financing to developers and construction companies, and away from households. The schemes also encourage speculators to buy property they have no intention of hanging on to.

And MAS is taking notice. Some bankers say it has been raising questions about banks' exposure to deferred payment schemes.

'MAS recognises that such deferred payment schemes may pose additional risks to the developer and its bank, and expects banks which finance such property developers to take this into account in their management of exposure to the developer,' an MAS spokeswoman said in response to BT queries.

According to MAS data on bank loans, building and construction loan growth rose a sizzling 18.1 per cent in February, following a 19 per cent gain in January. But home loans grew only 2.7 per cent in February and 2.1 per cent in January.

Among the local banks, OCBC and DBS grew their building and construction loans 27 per cent and 21 per cent respectively in 2006. UOB increased its building and construction loans 4 per cent.

OCBC spokeswoman Koh Ching Ching said the increase was due mainly to new drawdowns and loans to finance property development in Singapore, Malaysia and Greater China, with Singapore accounting for the bulk.

'OCBC has a traditional strength in real estate financing,' said Ms Koh. 'We have dedicated real estate departments within our business banking division for both large and small and medium real estate companies.

'The property sector is an important part of the Singapore economy and there are regulatory as well as internal guidelines to ensure that our exposure to this sector does not exceed certain limits.'

Citigroup economist Chua Hak Bin said deferred payment schemes have become prevalent in the local property market, accounting for more than 90 per cent of transactions at recent new Marina and downtown projects.

And he feels there is growing concern that this may be fuelling speculation and eventually will have a material impact on system-wide banking loans.

'Price increases in new home sales which offer deferred payment hit much higher levels,' Dr Chua said. This is because buyers on such schemes have time to flip or resell the property for a profit.

'The returns on capital can be substantial because of the implicit leverage,' he said. 'A 20 per cent increase in property value, for example, generates a 100 per cent return on the initial capital outlay.'

Deferred payment schemes that allow buyers to fork out only a 10-20 per cent downpayment, with the balance due on completion usually three years later, are not new. They were introduced in the early 1990s and offered again in the early 2000s. 'But it wasn't prevalent then,' Dr Chua said.

Not all developers offer deferred payment schemes. And some banks say overall progressive payment schemes are still more popular. This could be due to the higher cost of a property of at least 2-3 per cent if deferred payment is offered.

UOB head of loans Kevin Lam said: 'Progressive payment borrowers, while more, are not significantly more, than deferred payment borrowers.'

But an HSBC spokeswoman said that among its customers who have bought properties under construction, 60 per cent have opted for deferred payment schemes while 40 per cent have chosen progressive payment schemes.

Citibank business director Tan Chia Seng said: 'For those properties where deferred payment schemes are made available, we have seen an increase in interest from home buyers. 'The nature of the deferred payment scheme generally makes new projects more attractive to investors. However, home buyers who intend to occupy the properties may be interested in deferred payment schemes as well if the property they purchase is priced at an imputed interest rate lower than the home loan rate.'

Dr Chua warns though that buyers may be biting off more than they can chew, especially if the market tanks or the economy falters. The prevalence of deferred payment schemes suggests a mortgage surge will come eventually, he said. 'The day of reckoning will likely occur in 2009 when completions are expected to soar to 18,447 - more than double the typical annual supply.'

Maybank's head of consumer banking Helen Neo said deferred payment loans are more risky.

'Yes, as repayment only starts from TOP (temporary occupation permit),' she said. 'There could be changes in the borrower's income prior to TOP.'

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Originally Posted by Forum

Agree.
Right from this posting onwards, no more fighting please.
Let's have more constructive discussion here.
Thanks.

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Hello!
They don't allow me to go in leh.
Why?
Because I am a small-timer?
Fedup!