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Thread: Nassim condo turns in surprisingly good sales

  1. #1
    mr funny is offline Any complaints please PM me
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    Default 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

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    Default 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.

  3. #3
    mike Guest

    Default Re: Nassim condo turns in surprisingly good sales

    Quote Originally Posted by jlrx
    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.

  4. #4
    kitty Guest

    Default 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.

  5. #5
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    Default 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!

    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.

    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!

    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.

    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.

  6. #6
    Unregistered123 Guest

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    I wonner hor, next time when enbloc again, they get $20m each or not. I tought also hor, enbloc is urban renewal, more flats, smaller floor area on same land. This one arh, buck the trend leh, so many big, big units. How come arh? I macam very confused laio.

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    Quote Originally Posted by Unregistered123
    I wonner hor, next time when enbloc again, they get $20m each or not. I tought also hor, enbloc is urban renewal, more flats, smaller floor area on same land. This one arh, buck the trend leh, so many big, big units. How come arh? I macam very confused laio.
    The developers themselves are also very confused.

    Developers have to follow the market trend. Last time the trend was like what you say "more flats, smaller floor area on same land". The reasoning was not so much for "urban renewal" (developers don't care about these things) but rather, the smaller the unit, the more affordable and therefore the easier to sell.

    Later, however, developers found the worldwide trend to be that the rich gets richer while the poor gets poorer.

    Hence it is easier to sell a $10 M condo to a person who earns $100 M per year than to sell a $1 M condo to a person who earns only $100 k per year.

    The brisk sale of Nassim Park Residences seems to support this hypothesis.

    So from "Chop! Chop! Chop!" into smaller and smaller units, they now "Fuse! Fuse! Fuse!" into bigger and bigger units.

    The more expensive the condo, the more affordable it becomes.

    Ironic, isn't it?

    I also face the same situation in my own business. The more I raise the price, the more affordable it becomes.

  8. #8
    Unregistered123 Guest

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    No leh, gahmen said urban renewal leh. Gahmen said land no enough leh. Oh no, next time hor, they enbloc these expensive ones, and build more expensive more bigger flats, we poor things go where har?

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    Quote Originally Posted by Unregistered123
    No leh, gahmen said urban renewal leh. Gahmen said land no enough leh. Oh no, next time hor, they enbloc these expensive ones, and build more expensive more bigger flats, we poor things go where har?
    That's the trend now. Just look at Hong Kong.

    For example, the Paterson Towers en bloc had 72 owners each collecting $3.7 million. The new development now known as The Marq on Paterson Hill has only 66 units priced between $12 million to $30 million each.

    Actually, if a person were to stay in a house that is proportionate to his/her wealth, then I would say that currently Singapore's ultra-wealthy are staying in houses that are too small relative to that of the common man.

    For example, Tycoon Kwek Leng Beng is worth USD 5 billion while an average Singaporean has a networth of maybe USD 500 k. So Kwek Leng Beng is 10,000 times as rich as an average Singaporean. So proportionately, Kwek Leng Beng should be staying in a house worth 10,000 times that of an average Singaporean.

    Hence if an average Singaporean stays in an HDB 4-room flat worth $250,000, then Kwek should be staying in a house worth $2.5 billion. At a price of $4,000 psf for a high-end condo, then Kwek's "condo" should have a floor area of 625,000 sf. That's about 208 units of 3,000 sf condo, or two Nassim Park Residences.

    You may find it funny that a family of a few people stay in an entire condo, but look at the cases below.

    The Straits Times

    July 29, 2007


    Home for family of three is entire 11-storey condo

    By Lee Su Shyan

    EVEN for the ultra rich, condo living still means having to share facilities like pools and tennis courts with neighbours. Unless you're billionaire Peter Lim, that is.

    Mr Lim, his wife Cherie and his 85-year-old mother have an entire 11-storey condo - and pool - at Ardmore Park to themselves. No noisy neighbours, no barking dogs, no learner trumpeters practising in the apartment next door.



    Billionaire Peter Lim (above) has no plans to sell his condo and move into a landed property because it feels more secure to live in an apartment.




    The land and building now worth as much as $100 million, going by recent sale prices. -- ST PHOTO: LIM WUI LIANG
    Business Times - 03 May 2008

    World's first US$2b home rising in Mumbai

    400,000-sq-ft marvel across 27 storeys for tycoon's family of 5


    (MUMBAI) A 27-storey sea-facing skyscraper coming up in downtown Mumbai will soon be home to a family of five. With a price tag nearing US$2 billion, it will be the world's largest and most expensive home - ever.

    The proud owner of this property, which will be ready by January next year, is Mukesh Ambani, head of Mumbai-based petrochemical giant Reliance Industries and the fifth richest man in the world.



  10. #10
    Unregistered123 Guest

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    Of course no problem lah, if land plenty, plenty. Billion hairs and million hairs can live in homes gold plated mah, that way, can cost billions, millions oso, can flaunt wealthy. Poor silling things got flats enbloc and go nowhere.

  11. #11
    billion smelly hairs Guest

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    You can come and smell my kar chng hair.

  12. #12
    Unregistered123 Guest

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    only lice n ticks will smell your stinky kar chng hair that why kar chng itchy no one tokking to you. to get rid of lice u need to burn the hair. haha, burn kar chng...!

  13. #13
    fundamentals Guest

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    I think right now property prices are condo-specific. The rising tide floated all boats, but now that the tide is sinking, some boats are found to be better equipped than others.

    Condos that are in the same area, neighbouring condos even, can differ in price by up to $500 psf! Look at Robertson Quay condos, Newton condos, River Valley condos. The main reason for this phenomenon should rest solely on the attributes and quality of the condo, not just location and the usual property gimmicks. Now that the market is going down, condos that are crap have been exposed for what they are.

    I do not want to name any specific condo but if you looked at the caveats in those locations you should be able to find out which ones are good and which ones are crap.

    As always (but ignored during the frenzied buying of 2007), look deeper into the fundamentals of a property, not only surface attributes such as location. There are lots of other tangible/intangible variables that affect a buyer's decision on a property. That explains why some condo prices remain firm while others are being dumped at low prices.

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    This "financial crisis" seems very different from the 1997 one ... the rich people in Hong Kong still so calm, got mood to buy properties.

    Set record some more ... HK$57,000 a square foot ... that's SGD 9,956 psf !!!




    Business Times - 03 Jun 2008

    New projects boost HK's May home sales

    (HONG KONG) Hong Kong's existing apartment sales rose last month from a month earlier as homebuyers' confidence was boosted by sales in new projects during the month.

    Transactions for 10 of Hong Kong's biggest private-housing projects rose to 596 last month from 454 in April, according to figures compiled by Centaline Property Agency Ltd.

    'In May, buyers' focus has actually been on the luxury new apartments,' Louis Chan, managing director of residential properties at Centaline, said in a phone interview yesterday. 'This has bolstered the confidence of less-affluent buyers. You can expect the market to be dominated by the less-expensive second- hand apartments in June.'

    Cheung Kong Holdings Ltd has sold more than 420 apartments at its Celestial Heights development in the city's Ho Man Tin district since the project went on sale on May 21, the Hong Kong Economic Times reported yesterday, citing executive director Justin Chiu. The sale brought in over HK$11 billion (S$1.9 billion) for the company, the newspaper said.



    Sun Hung Kai Properties Ltd, the city's biggest developer by market value, sold a house in the Peak district for HK$285 million, according to spokeswoman Fiona Wan.



    The unidentified buyer paid the equivalent of HK$57,000 a square foot, a record in Asia, for the unit at the Severn 8 project, Hong Kong's Sing Tao newspaper reported yesterday. She declined to confirm whether the sale set a record.



    Hong Kong's economic growth unexpectedly accelerated in the first quarter as exports to China and Europe climbed. -- Bloomberg-

  15. #15
    hinterland Guest

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    Hong Kong is different. Their market is buoyed by the hundreds of billionaires from China and a tens of thousand of lesser PRC rich men worth maybe a few hundred million USD each, and maybe hundreds of thousand of even lesser PRC rich men worth a few million USD each. Out of a country of 1.4 billion population, this number of rich people is but a drop in the ocean in the PRC, but to tiny Hong Kong, this is a heaven sent.

    What does Singapore have? Any of the world's rich who would buy Singapore will also have HK, Shanghai, Tokyo, London, NY, Paris, etc on their property portfolio. And many of them would much more readily buy in any of those cities than in Singapore.

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    Whether in Hong Kong or Singapore, the rich are getting richer and richer ...

    I have been tracking the price of Good Class Bungalows (not that I can afford one, but they're my dream home) ...

    Their prices are still going up and up and up despite all these subprime. Whereas my own properties have stagnated.

    No. 15B, Chatsworth Road was transacted at $14,500,000 on 14 Aug 2007 and $18,450,000 on 13 May 2008.

    No. 21, Cluny Hill was transacted at $15,000,000 on 15 Jan 2007 and $20,200,000 on 24 July 2007 and $21,500,000 on 20 May 2008.

    The price keeps increasing ... then I can never ever afford to buy one. How come my properties are affected by subprime but not their properties?

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    Quote Originally Posted by jlrx
    Whether in Hong Kong or Singapore, the rich are getting richer and richer ...

    I have been tracking the price of Good Class Bungalows (not that I can afford one, but they're my dream home) ...

    Their prices are still going up and up and up despite all these subprime. Whereas my own properties have stagnated.

    No. 15B, Chatsworth Road was transacted at $14,500,000 on 14 Aug 2007 and $18,450,000 on 13 May 2008.

    No. 21, Cluny Hill was transacted at $15,000,000 on 15 Jan 2007 and $20,200,000 on 24 July 2007 and $21,500,000 on 20 May 2008.

    The price keeps increasing ... then I can never ever afford to buy one. How come my properties are affected by subprime but not their properties?
    Wow, the same GCB being transacted 3 times in just more than a year. Sounds like a good class bubble! haha But i've always believed that GCBs have the best upside potential given the scarcity factor.

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    Quote Originally Posted by Boon
    Wow, the same GCB being transacted 3 times in just more than a year. Sounds like a good class bubble! haha But i've always believed that GCBs have the best upside potential given the scarcity factor.
    Yah lor ...

    There are only 1,000 good class bungalows in Singapore but there are now more than 2,000 people who earn more than $1,000,000 per year.

    Not to forget those "old money" people who are already retired but have lots of money ...

    Looks like really not enough GCBs to go around ... but there's really nothing I can do ... firstly their price is already so sky high. Then on top of that their price is going up while mine is stagnant.

    Like a toad watching a rocket flying off into the sky. The toad jump and jump also cannot catch the rocket anymore ...

    Looks like I can only continue to collect pictures of these bungalows, but not the real thing ...


    Location: Cluny Hill
    Type of development: Good-class Bungalows
    Tenure: Freehold
    No of bungalow plots : 16
    Sales status: 100% sold
    Land Area: at least 15,000 sf a plot
    http://www.keppelland.com.sg/res_sg_ch.asp

  19. #19
    UnregisteredGCB Guest

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    Heyheyhey... not only locals allowed to buy. Foreigners also. Money buys money.

  20. #20
    love it Guest

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    Only 1000 GCBs in Singapore? Hmm that is really rare!

    Maybe for the future... Where can I find the cheapest GCB?

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    There are about 3k GCBs.

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    Quote Originally Posted by love it
    Only 1000 GCBs in Singapore? Hmm that is really rare!

    Maybe for the future... Where can I find the cheapest GCB?
    Cheap may not be good. That applies to everything and not just GCBs.

    If you want cheap, you can look at Lornie Road but ...

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