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Thread: All in line for a full house

  1. #1
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    Default All in line for a full house

    All in line for a full house

    Property price index could grow 15% to 18% this year: Analyst

    Gracia Chiang and Joseph Yadao
    [email protected]


    HE may not have the money to buy an apartment yet, but 21-year-old Jasper Ong is already a beneficiary of Singapore's booming property market.

    Mr Ong, who is fresh out of National Service, and three of his friends are being paid $100 each every 24 hours to stay in the queue of people waiting to buy or representing those who want to buy The [email protected] units at Meyer Road in District 15.

    The 24-storey freehold condominium project by CapitaLand, which has yet to be built, will only be launched to the public on Friday.

    Mr Ong and his friends were hired by an ERA property agent and have been holding onto their "30-something" positions since 10pm on Monday.

    They have spent their time sprawled on a mat, playing cards and reading newspapers.

    Armed with four sets of clothing, loaves of bread and soft drinks, each of the group has taken turns to make three trips a day to a nearby workers' quarters to bathe because of the heat.

    "It's very boring here, but since there's money, why not?" Mr Ong reasoned.

    As of last night, there were about 80 people in the queue. The line reminiscent of the good old days when investing in property was deemed a surefire way to make mega profits is yet another indication that Singapore's property market is heading north.

    Several other property launches in recent days have also attracted high buyer interest.

    One of these is CapitaLand's Orchard Residences, where all 98 units in Phase 1 of the luxury condominium have been snapped up.

    According to the developer, the units sold for an average $3,213 per square foot (psf).

    City Developments Limited's The Solitaire, a boutique 59-unit development nestled in Balmoral Park in District 10, is now 100-per-cent sold, just one week after its soft launch.

    The units sold at an average price of more than $2,000 psf, CDL reported in a press release yesterday. This works out to about $2.3 million for a two-bedroom unit to more than $7.4 million for a penthouse.

    "The prices achieved represent a new benchmark for the Balmoral Park vicinity," CDL said.

    Buyers' love affair with condos with a waterfront view helped Keppel Land get such a good response on the first day of the soft launch of its Reflections at Keppel development at Keppel Bay Drive, that the developer decided to increase the number of units on offer from 80 to 150. A total of 1,129 units, including 35 penthouses, will be on offer for between $1,900 and $1,950 psf. The highest-priced unit at yesterday's launch, which was reserved for Keppel staff, directors and associates, was $2,400 psf for a villa unit.

    Keppel Land's Singapore residential director Augustine Tan said that with these prices, the company believes "we have set a benchmark" for the Keppel Bay/Sentosa area.

    These encouraging responses to the launches is in line with analysts' predictions that the property market will continue to do well this year, thanks to factors such as a healthy economy and strong foreign investor interest.

    According to flash estimates from the Urban Redevelopment Authority released on Monday, the property price index rose from 130.2 points in the previous quarter to 136.2 points in the first three months of this year the highest increase in seven years.

    "The overall residential property price index could chalk up growth between 15 per cent and 18 per cent for the entire year of 2007," said Ms Tay Huey Ying, director for research and consultancy at Colliers International.

  2. #2
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    Thumbs down Re: All in line for a full house

    I smell danger here . I wouldn't want to end up like my of our parents during the previous property booms . Unrealistic prices , we are not using money from the monopoly board .

  3. #3
    Doggie
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    Default Re: All in line for a full house

    Quote Originally Posted by Unregistered
    I smell danger here . I wouldn't want to end up like my of our parents during the previous property booms . Unrealistic prices , we are not using money from the monopoly board .
    You also use your nose to smell? That's great!

    There may be danger many years later - but not now.
    There are only good opportunities now.
    Go grab yourself something fast! Don't hesitate and miss the boat!
    Go now! Go! Go!

  4. #4
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    Angry Re: All in line for a full house

    These property agents encouraging people to buy so that they can get their commision are real assholes . No wonder i hate these people so much , for money , people show their true evil sides .

  5. #5
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    Angry Re: All in line for a full house

    Quote Originally Posted by Doggie
    You also use your nose to smell? That's great!

    There may be danger many years later - but not now.
    There are only good opportunities now.
    Go grab yourself something fast! Don't hesitate and miss the boat!
    Go now! Go! Go!
    Yes. Those fools at Seafront @ Meyer are doing just that! Not sure if they can afford it, but they are lapping it all up! So scary when the average Singaporean starts buying $1500psf to $1900 psf property! And it is not even in Orchard!

  6. #6
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    Default Re: All in line for a full house

    Quote Originally Posted by Unregistered
    Yes. Those fools at Seafront @ Meyer are doing just that! Not sure if they can afford it, but they are lapping it all up! So scary when the average Singaporean starts buying $1500psf to $1900 psf property! And it is not even in Orchard!

    What's wrong with $1,500-1,900 psf? OK what! Only a fool will call them fool.
    If it's in Orchard, then $3,000-4,000 psf lor.
    Very fair pricing, as per what the Indonesian buyer said on TV.

  7. #7
    Property Cashier
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    Default Thai Tycoon Snaps Up Entire Cairnhill Project Before Launch

    Quote Originally Posted by Unregistered
    These property agents encouraging people to buy so that they can get their commision are real assholes . No wonder i hate these people so much , for money , people show their true evil sides .
    Sources say developer Hoi Hup achieves price of about $2,500 psf
    Kalpana Rashiwala
    11 April 2007

    Hoi Hup Realty was supposed to begin previews for its freehold Suites @ Cairnhill on the former Cairnhill Gardens site about a fortnight ago.

    But just a day before it could do that, it found a buyer for all 48 apartments in the project in a deal worth about $200 million, BT understands. This would work out to around $2,500 psf for the 19-storey development.

    Sources said the buyer is a party linked to Thai Beverage tycoon Charoen Sirivadhanabhakdi. Mr Charoen controls the TCC group in Thailand, and is also one of the country's richest businessmen.

    Interestingly, the $2,500 psf achieved for the sale to a single buyer was the same average price that Hoi Hup is said to have been targeting for the preview.

    'What's more, the buyer will be paying Hoi Hup on normal progress payment terms, not deferred payment! That's great for Hoi Hup,' said a fellow developer.

    Sources also said that City Development's recent preview of its 59-unit Solitaire project in the Balmoral Park area drew a Chinese buyer, who snapped up 10 units - or almost an entire block - for over $52 million.

    CityDev last week announced that the project was sold within a week at an average price of over $2,000 psf.

    Over at Reflections at Keppel Bay, Keppel Land said on Monday it had been approached by foreign investors interested in buying entire blocks in the 1,129 unit development. So far, it has achieved an average price of about $1,900 psf.

    A seasoned property consultant said: 'It just reflects the current state of the high-end residential market - that foreign investors still consider our market attractive, despite the run-up in prices.'

    'The money for bulk purchases is coming in substantially from the region, like Hong Kong and Indonesia, but there's also institutional money from US, Europe and Australia,' he added.

    While foreign funds and investors buying up stacks or blocks of apartments in Singapore is not a new phenomenon, their bargaining strength against developers has waned lately and they have had to dilute the profile of properties they are choosing. This is because the market is flush with overseas money chasing a limited pool of properties available for sale.

    'A few years ago, these overseas investors would have extracted a bulk discount from the developer and would buy only completed projects (preferably with leased apartments) that can start generating rental income almost immediately upon purchase. 'These days, however, they're finding they can't expect a discount and are looking at projects under construction. Another difference is these foreign funds are more flexible now and are prepared to consider not-so-prime locations. In the past, they focused only on the choicest areas,' the seasoned property .......... Singapore's CapitaLand Group to invest in, develop and manage properties in Thailand.

    Quick!
    Turn your hate into action.
    Don't let these foreigners beat you to it.
    Go grab now!

  8. #8
    Unregistered
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    Thumbs down Re: All in line for a full house

    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.'

  9. #9
    Observer
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    Default Re: Thai Tycoon Snaps Up Entire Cairnhill Project Before Launch

    Quote Originally Posted by Property Cashier
    Quick!
    Turn your hate into action.
    Don't let these foreigners beat you to it.
    Go grab now!

    How to beat them?
    This Thai guy has just grabbed 4 entire floors at the Orchard Residences.
    Fedup!

  10. #10
    Unregistered
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    Default Re: Thai Tycoon Snaps Up Entire Cairnhill Project Before Launch

    Quote Originally Posted by Observer
    How to beat them?
    This Thai guy has just grabbed 4 entire floors at the Orchard Residences.
    Fedup!

    ..... and he also stole our entire Suites @ Cairnhill development.
    Left Indonesians. Right Thais.
    Center Hongkongers and Aussies.
    No where to hide man!

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