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Thread: En bloc market suffers double whammy as investors look elsewhere

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    Default En bloc market suffers double whammy as investors look elsewhere

    En bloc market suffers double whammy as investors look elsewhere

    By Ng Baoying, Channel NewsAsia | Posted: 08 April 2008 2210 hrs


    SINGAPORE : En bloc sales have been slowing down over the past few months, but it's not just due to the recent tightening of the rules governing such transactions.

    Amid the global credit crunch, property watchers said foreign investments have pulled back, and the overall downturn is pushing developers to look at other moneymaking options.

    But they also noted that fundamentals remain strong in Singapore, and the current slowdown is due more to external factors.

    Collective sales saw strong demand a few months ago, but developers are now changing tack in the tighter credit environment.

    Those on the buying end of en bloc sales are choosing to hang on to their properties longer, delaying new project launches. They are also getting picky about additions to their landbank.

    "They've got plenty to choose from. The most straightforward possibility for developers to partake would be going to government sale of site programme. A lot are more configured toward mass market, lower mid-tier level where we're seeing some activity in the end-market purchases," said Donald Han, MD of Cushman & Wakefield (Singapore).

    Many said the current slowdown is largely due to the external environment, rather than the fundamentals of Singapore.

    "A lot of buying that resulted in last round of en bloc came from overseas funds... We are rather small, in terms of available of units or land, so an amount which may not make an impact in another country will have a big impact on us. (Funds) either coming in or out have got that exponential effect on the market in Singapore," said Dr SK Phang, a lawyer.

    So with tightening credit conditions worldwide causing a dip in foreign inflows, Singapore's property market is taking a hit.

    But analysts said many developers took home huge profits in the past two years, and will definitely be able to weather stormy skies for now.

    While there is little to be done about the external environment, analysts said en bloc rules can be further tweaked to allow the process to be speeded up.

    Said Dr Phang: "The long timeline has to be shortened; it's too long, the whole en bloc process. The law allows you 12 months to get 80 percent. And after that, the law allows you 12 months to file the ST (strata title). And when you do, the STB (Strata Title Board) may take short of 4 months or a long time of a year.

    "Of course not every case is that long but if you look at the historical maximum permissible time, you're looking at something about 2 years plus. And that's a long time to wait for the money. Given the volatile market conditions in Singapore, if it goes up, owners get concerned with replacement. If it goes down, developers (become) concerned. So we should try to manage the timeline and shorten it."

    The en bloc market saw more than a 100 deals valued at more than S$13 billion last year. - CNA /ls

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    Default Re: En bloc market suffers double whammy as investors look elsewhere

    Quote Originally Posted by mr funny
    En bloc market suffers double whammy as investors look elsewhere

    By Ng Baoying, Channel NewsAsia | Posted: 08 April 2008 2210 hrs


    SINGAPORE : En bloc sales have been slowing down over the past few months, but it's not just due to the recent tightening of the rules governing such transactions.

    Amid the global credit crunch, property watchers said foreign investments have pulled back, and the overall downturn is pushing developers to look at other moneymaking options.

    But they also noted that fundamentals remain strong in Singapore, and the current slowdown is due more to external factors.

    Collective sales saw strong demand a few months ago, but developers are now changing tack in the tighter credit environment.

    Those on the buying end of en bloc sales are choosing to hang on to their properties longer, delaying new project launches. They are also getting picky about additions to their landbank.

    "They've got plenty to choose from. The most straightforward possibility for developers to partake would be going to government sale of site programme. A lot are more configured toward mass market, lower mid-tier level where we're seeing some activity in the end-market purchases," said Donald Han, MD of Cushman & Wakefield (Singapore).

    Many said the current slowdown is largely due to the external environment, rather than the fundamentals of Singapore.

    "A lot of buying that resulted in last round of en bloc came from overseas funds... We are rather small, in terms of available of units or land, so an amount which may not make an impact in another country will have a big impact on us. (Funds) either coming in or out have got that exponential effect on the market in Singapore," said Dr SK Phang, a lawyer.

    So with tightening credit conditions worldwide causing a dip in foreign inflows, Singapore's property market is taking a hit.

    But analysts said many developers took home huge profits in the past two years, and will definitely be able to weather stormy skies for now.

    While there is little to be done about the external environment, analysts said en bloc rules can be further tweaked to allow the process to be speeded up.

    Said Dr Phang: "The long timeline has to be shortened; it's too long, the whole en bloc process. The law allows you 12 months to get 80 percent. And after that, the law allows you 12 months to file the ST (strata title). And when you do, the STB (Strata Title Board) may take short of 4 months or a long time of a year.

    "Of course not every case is that long but if you look at the historical maximum permissible time, you're looking at something about 2 years plus. And that's a long time to wait for the money. Given the volatile market conditions in Singapore, if it goes up, owners get concerned with replacement. If it goes down, developers (become) concerned. So we should try to manage the timeline and shorten it."

    The en bloc market saw more than a 100 deals valued at more than S$13 billion last year. - CNA /ls


    Speculators, including the above writer, are too quick to jump the gun, purely because the market is quiet and there is no news to report (no more Mas Selamat and company).

    Commonsense tells you that if you had just taken a buffet lunch, you must allow at least a few hours for the food to digest before the next meal. Unless you have an eating disorder, there is no way you can finish a buffet lunch at 2:30 p.m., start your high tea at 3:00pm., finishing it at 5:00 pm., and want to start your buffet dinner at 6:30 pm.!

    The same goes for the housing developer, en bloc sellers and buyers. The buffet lunch is still lingering in the air and now it is break time. News writers, short of juicy stories, would not hesitate to say the market is reversing.

    The surge was about six months last year, so why can't the doomsday prophets give an equal time for digest? Housing developers need time to look for financing before they can come back for another meal, otherwise they could end up like Tulip Garden, losing their pants.

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    Default Re: En bloc market suffers double whammy as investors look elsewhere

    There are two teams of reporters in all the news agency.One group to report good news and one group to report bad news.Else they out of job and commission.

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    Default Re: En bloc market suffers double whammy as investors look elsewhere

    Quote Originally Posted by mr funny
    En bloc market suffers double whammy as investors look elsewhere

    By Ng Baoying, Channel NewsAsia | Posted: 08 April 2008 2210 hrs


    SINGAPORE : En bloc sales have been slowing down over the past few months, but it's not just due to the recent tightening of the rules governing such transactions.

    Amid the global credit crunch, property watchers said foreign investments have pulled back, and the overall downturn is pushing developers to look at other moneymaking options.

    But they also noted that fundamentals remain strong in Singapore, and the current slowdown is due more to external factors.

    Collective sales saw strong demand a few months ago, but developers are now changing tack in the tighter credit environment.

    Those on the buying end of en bloc sales are choosing to hang on to their properties longer, delaying new project launches. They are also getting picky about additions to their landbank.

    "They've got plenty to choose from. The most straightforward possibility for developers to partake would be going to government sale of site programme. A lot are more configured toward mass market, lower mid-tier level where we're seeing some activity in the end-market purchases," said Donald Han, MD of Cushman & Wakefield (Singapore).

    Many said the current slowdown is largely due to the external environment, rather than the fundamentals of Singapore.

    "A lot of buying that resulted in last round of en bloc came from overseas funds... We are rather small, in terms of available of units or land, so an amount which may not make an impact in another country will have a big impact on us. (Funds) either coming in or out have got that exponential effect on the market in Singapore," said Dr SK Phang, a lawyer.

    So with tightening credit conditions worldwide causing a dip in foreign inflows, Singapore's property market is taking a hit.

    But analysts said many developers took home huge profits in the past two years, and will definitely be able to weather stormy skies for now.

    While there is little to be done about the external environment, analysts said en bloc rules can be further tweaked to allow the process to be speeded up.

    Said Dr Phang: "The long timeline has to be shortened; it's too long, the whole en bloc process. The law allows you 12 months to get 80 percent. And after that, the law allows you 12 months to file the ST (strata title). And when you do, the STB (Strata Title Board) may take short of 4 months or a long time of a year.

    "Of course not every case is that long but if you look at the historical maximum permissible time, you're looking at something about 2 years plus. And that's a long time to wait for the money. Given the volatile market conditions in Singapore, if it goes up, owners get concerned with replacement. If it goes down, developers (become) concerned. So we should try to manage the timeline and shorten it."

    The en bloc market saw more than a 100 deals valued at more than S$13 billion last year. - CNA /ls


    Is that really so? Very good, me and my group of friends want to take this opportunity to buy up a piece of land or an old estate to build our own dream condo for our retirement -- our retirement village.

    We need a piece of land about 40,000 to 50,000 sq.ft. with a plot ratio of 1.8 in the Upper Serangoon area between Braddel Road and Kovan MRT.

    Please contact me if you have an offer -- Thank you:

    James Tan,
    email: [email protected]

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    Default Re: En bloc market suffers double whammy as investors look elsewhere

    Why should we pander to the rich developers by shortening the process? Is there not enough bitterness fought out in the courts of law already? Shortening the whole process will again shortcircuit the sales by unscrupulous agents including flippers, all at the expense of the real homeowners. Let the bona fide owners take their time to agree. In some estates, EOGM is a continuous process, one after another with nary a breather in between.

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    Default Re: En bloc market suffers double whammy as investors look elsewhere

    Quote Originally Posted by Unregistered
    There are two teams of reporters in all the news agency.One group to report good news and one group to report bad news.Else they out of job and commission.

    Thanks for the infor. In fact, a friend, a journalist from the daily just confirmed what you said, but added a third team: to reinforce what team A or team B had just reported so as to add "credibility" to the rumour.

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    Default Re: En bloc market suffers double whammy as investors look elsewhere

    Quote Originally Posted by Unregistered
    Thanks for the infor. In fact, a friend, a journalist from the daily just confirmed what you said, but added a third team: to reinforce what team A or team B had just reported so as to add "credibility" to the rumour.
    Agreed, this is to increase readership. All good or all bad are not good, so must have both each to confuse readers. Hahaha! End of the day, it is your money and you make your own decision (don't blame others for leading you into the wrong decision) and what kind of risk you can stomach.

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    Default Re: En bloc market suffers double whammy as investors look elsewhere

    Quote Originally Posted by Unregistered
    There are two teams of reporters in all the news agency.One group to report good news and one group to report bad news.Else they out of job and commission.
    lawyers also samelah,buy and sell need lawyers.
    carimakanlah

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    Default Re: En bloc market suffers double whammy as investors look elsewhere

    Quote Originally Posted by Unregistered
    lawyers also samelah,buy and sell need lawyers.
    carimakanlah
    >k.b


    At the end of the day, the real suckers are the property owners themselves because the marketing agents, the lawyers, the valuers, etc., will get their money no matter you sell high or sell low.

    If you sell low like the Horizon Tower case, you can lick your wounds and the developer goes laughing all the way to the bank. And you can't call off the deal because they can sue and sue you until you are broke.

    If you sell high, like Tulip Garden, the developer simply walk away and lose only a miserable 5% deposit and the owners are left sucking their thumbs again. But here you can't sue them because they have LIMITED LIABILITY and can simply close down.

    The loophole is that the yamen allows the mafia developers to form a new $2 company for each development, only to fold up with things go awry.

    Even if the en bloc is successful and a new estate is built. The new owners are now the new suckers -- with all those building defects, windows flying (in a brand new estate), swimming pool leaking, etc., -- and when the owners sue for damages and WON, the developer promptly go bust and the owners continued sucking their thumbs.

    One such development is Euro Asia Lodge in Joo Chiat. The yamen must not allow these fly-by-night operators to form a separate company for each new development.

    So that estate was built by a big name, say, Far East, but note carefully, it is only a subsidiary of Far East or some other developer and the parent company holds no responsibility if the subsidiary goes bust and owners left high and dry.

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    Thumbs up Re: En bloc market suffers double whammy as investors look elsewhere

    Quote Originally Posted by Unregistered
    Agreed, this is to increase readership. All good or all bad are not good, so must have both each to confuse readers. Hahaha! End of the day, it is your money and you make your own decision (don't blame others for leading you into the wrong decision) and what kind of risk you can stomach.
    When the newspapers report both, it only goes to show that our reports are not controlled as what many people precieve. Anything apolitical reports can be credible as what i see.

    Kudos to straits times. I can start to believe in the reports now.

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