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Thread: Two developers show interest in Shunfu Ville sale

  1. #1
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    Default Two developers show interest in Shunfu Ville sale



    Although no formal bids were submitted during the close of its tender exercise last week, Shunfu Ville has received expressions of interest from two developers, reported The Straits Times.

    In fact, negotiations are ongoing with the interested parties, said Tan Hong Boon, Regional Director of Capital Markets at JLL, the property’s marketing agent.

    Launched for collective sale in September, the 358-unit residential project had an asking price of at least $688 million.

    Experts believe that potential buyers of en bloc sale sites are concerned of the Additional Buyers’ Stamp Duty (ABSD).

    Levied at 15 percent on the site’s purchase price, the ABSD must be paid by developers if they do not complete the residential project and sell all the units within five years. The five-year period begins to run from the time the Strata Titles Board or High Court approves the sale for such sites.

    However, developers would have to face various delays – three months for the legal completion of the sale; four to six months for residents to move out; and two to three months to demolish the existing building, said Lee Liat Yeang, real estate partner at Rodyk & Davidson.

    The risk of a developer paying the ABSD would also increase with the large number of units that the 408,927 sq ft Shunfu Ville site can support. Assuming a minimum average size of 753 sq ft, the massive site can support up to 1,500 units.

    Nonetheless, Shunfu Ville is not the biggest site on the market. That title belongs to the 661,000 sq ft Normanton Park plot, noted Dr Lee Nai Jia, DTZ’s Regional Head of Research.

    “Whether all units can be sold is a bit hard to project given current market conditions. But as some of the Government Land Sales sites are in good locations, developers are likely to prefer those,” he said.

    “For an en-bloc sale to occur, the site would have to have a wow factor – very accessible to the MRT, near good schools.”

    Last Friday, the Strata Titles Board approved the en bloc sale of Thong Sia Building in Orchard Road, the year’s only major collective sale so far.

    Image: Aerial view showing the site boundary of Shunfu Ville. (Source: JLL)

  2. #2
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    Sighs , if successful it will add pressure into oversupply hor. Master Bear

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    URA tender gets 11 bids for 99-year private condo site in Lorong Lew Lian, Master bear really got to wait till 2020. Sighs

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    Quote Originally Posted by Citizen View Post
    Sighs , if successful it will add pressure into oversupply hor. Master Bear
    The dam water is overflowing soon.

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    Developer on 1 hand said it is suicidal to bid high, on the other hand his company bidded the highest. Property investment 万岁

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    Default Shunfu Ville: Two developers express interest

    http://www.straitstimes.com/business...press-interest

    Shunfu Ville: Two developers express interest

    The 358-unit Shunfu Ville was put on sale in September with an asking price of at least $688 million.

    Nov 3, 2015

    Rennie Whang


    The lacklustre collective sale market looks a bit perkier after two developers submitted expressions of interest in the Shunfu Ville site.

    The 358-unit project in Upper Thomson was put on sale in September with an asking price of at least $688 million.

    The tender exercise closed last week with no formal bids lodged but negotiations are ongoing with the interested parties, said Mr Tan Hong Boon, regional director of capital markets at JLL, the marketing agent.

    Experts noted that potential buyers of collective sale sites are especially concerned about the Additional Buyers' Stamp Duty

    (ABSD), which developers must pay if they do not complete a residential project and sell all units in five years.

    The ABSD is levied at 15 per cent on the purchase price of the site. The five-year clock starts ticking for such sites from the time the Strata Titles Board or High Court gives the green light for the sale.

    Developers of such sites would be hampered by various time lags: the roughly three months it could take for legal completion of the sale; the four to six months residents typically get to move out; and another two to three months to demolish the building, said Mr Lee Liat Yeang, real estate partner at Rodyk & Davidson.

    The large number of units that the massive 408,927 sq ft Shunfu Ville plot can support - up to 1,500 units, assuming a minimum average unit size of 753 sq ft - would increase the risk of a developer having to pay the ABSD.

    Yet the site is not the biggest on the market. That honour goes to the 661,000 sq ft Normanton Park plot, noted Dr Lee Nai Jia, DTZ regional head of research.

    "Whether all units can be sold is a bit hard to project given current market conditions... But as some of the Government Land Sales sites are in good locations, developers are likely to prefer those," he said.

    "For an en-bloc sale to occur, the site would have to have a wow factor - very accessible to the MRT, near good schools," he added.

    The Strata Titles Board approved the collective sale of Thong Sia Building in Orchard Road last Friday - the only major collective sale deal so far this year.

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    Property bears finally are been suppressed. Why interest rate hike no longer a threat to property investment. Have all the CMs losing its effectiveness? Are the current buyers immune to all negative news and forces? Has the property down cycle lapsed and over without our notice?

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    Doing all my 3 loans refinance to 1.68% fixed for 2 years. Bear Bear have to wait for another 2 years.

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    Quote Originally Posted by Arcachon View Post
    Doing all my 3 loans refinance to 1.68% fixed for 2 years. Bear Bear have to wait for another 2 years.
    I just paid up all my properties. Should I worry about INT hike? YES!

    Sometimes it's not just about you :P

    HEHE!

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    Indeed the interest rate is a concern, some worry up and some worry no up. Those with loan worry up, those paid up all loan worry no up as they are losing opportunity cost. Property price is secondary?

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    My father paid up his SGD 6,600 for his 3 room HDB, got SGD 50,000 in his CPF.

    5 room HDB at his time cost SGD 50,000.

    And he refuses to buy and happily do nothing.

    Guess how much he have 10 years after his retirement.

    Learn a lot from my father paying up his property.

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    Thanks for sharing Bro Arachon.

    In 1970-80, the FD rate can be as high as 7-8% and the loan rate likely was XX%. Also probably only CPF loan available as bank mortgage not for HDB. Private apts, though cheap, were really for the selected few with "chai hoo" office work status. Blue collar not their clientele. Not forgetting that financial education and information was also very limited and privy to the few learnt. Most just use the age old concept of savings for rainy days as the best policy.

    Brother Arachon, I also lived through your era as a child in 70 to mid-80s. My late dad rented a $37 / mth direct from HDB for 15 years in circuit rd. He also wanted to own his flat but priority for new HDB ownership were given to those families who have been displaced due to farm and land redevelopment around Sg. We finally got a tampines flat in early 80s and thought the place would be doomed as we were "pioneers" there other than the mosquitoes. Public transport came only a few days after we shifted in, the saving grace Bus #18 to Bedok. Miraculously, Tampines became a superb bestseller when we shifted out and got a bite of the 2nd cherry (new HDB) with more than 100% profit (though only 60-70k at that time) which was already a very good deal. With a sole breadwinner salary of less than $500 till the day he retired and 7 mouths to feed, I think he did his best already.

    Present day, to stay ahead of the pack for investment, the more you save in cash only concept is long gone. I am also lucky to be exposed to the fact that using Other People's Money can be a good thing. The best example being like our bank loan at ~1% pa against rental yield and asset inflation. This model still works but it will probably be obsolete in developed countries eventually, just like the old method of saving for rainy days.

    So the future of $, what will it be like? I suppose it will be like those youtube links you have given in other posts (no time to watch all fully). Hope that the ideas and information on those links can be summarised by some good net Samaritans.

    Happy Diwali, a very meaningful festival of lights to everybody reading.

    Quote Originally Posted by Arcachon View Post
    My father paid up his SGD 6,600 for his 3 room HDB, got SGD 50,000 in his CPF.

    5 room HDB at his time cost SGD 50,000.

    And he refuses to buy and happily do nothing.

    Guess how much he have 10 years after his retirement.

    Learn a lot from my father paying up his property.

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    Quote Originally Posted by Citizen View Post
    Indeed the interest rate is a concern, some worry up and some worry no up. Those with loan worry up, those paid up all loan worry no up as they are losing opportunity cost. Property price is secondary?
    If anyone understands me, those who paid up worry that prices will still fall because for every property paid up, there are many more on loans. Just because you won won jiak bee hoon doesn't mean the average joe on the streat can tank an increase in interest rates (given the over-leveraged nature of today's property market). I would say be watchful and diligent. Do your homework and get ready for durians to drop.

    It doesn't matter that property prices will appreciate in the long run, we all know that, otherwise we won't be in this forum.

    However, only the smarter ones can take advantage of any sharp fall and rise in prices. Just like in the stock market, there are people who hold their paper for decades and make 100% profit and yet there are people who turnover more than 1000% in less than 5 years. Don't be an old man. There will always be people who will tell their father or grandfather story and not realize it takes a lifetime to fulfill. Who would wait a lifetime now? The window of opportunity is here and it only takes a few years.
    Last edited by pmet; 10-11-15 at 19:51.

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    If one will to paid up all his loans when opportunities come does he still have money to invest, unless he is not average joe.

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    A smart and prudent man will not use 1 mil and relative's loan to invest 7 properties at 1 go . So dun need be smart and prudent? A smart guy will use 1 mil to buy 1 property or 2 without loans. He will become another average joe. Sorry master Arcachon I dun mean you are not smart. You are risk taker.
    Last edited by Citizen; 10-11-15 at 20:58.

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