The Rochester (D5, 99 year leasehold, United Engineers)

[G Ng]

Grace Ng
Finance Reporter
The Straits Times
10 July 2007

The overall exposure of Singapore banks to property-related loans taken out by investment buyers and financial institutions amid the property boom is rising. But experts are not worried. A new Citigroup report says the percentage is set to climb from 27% of total loans currently to 'closer to 30%' by year-end.

But this is 'still comfortably below' a regulatory limit of 35%, it said. Foreign banks may be nearer to the limit than local ones, said Citigroup economist Chua Hak Bin yesterday.

All these figures exclude property loans taken out by owner-occupiers - about 80% of all bank loans.

If banks approach the limit, customers could be charged higher interest rates for investment- related mortgages compared to owner-occupied ones, suggested Dr Chua.

Mr Paul Kwee, Citigroup Singapore's corporate bank director and head of real estate, noted: 'In view of the recent increase in lending activity, it may well be that certain banks have less appetite, and may become more selective in granting loans, as well as in reviewing the terms that go with the loans.'

Dr Chua also pointed out that while speculative buying of property has risen and may climb further over the next few years, it is still well below the level seen in the property boom of the mid-1990s.

So bank-loan exposure to the property sector 'is likely to remain within tolerable limits'.

In May, about 25% of mortgages taken out by investment buyers and 33% of loans to financial institutions were property-related, estimated Citigroup. This works out to an overall property-related loan exposure for the banking sector of 28.7%, well below the 35% limit.

The limit was introduced by the MAS in May 2001, as a safeguard to limit the risks of the banking system's exposure to property loans, especially speculative activity.

But Dr Chua expects 'mortgage growth to accelerate' to near 30% in the next 6 months, as more new property projects are completed and some homebuyers on the deferred payment scheme apply for loans.

A higher proportion of new mortgages are likely to be investment-related, given the 'already high home ownership in Singapore of about 93%'.

OCBC Bank has seen the ratio of new applications for investment properties to owner-occupied ones rise, but the latter is still the 'key driver of overall sales', noted head of consumer secured lending Gregory Chan.

DBS Bank and Maybank said about a fifth of their Singapore mortgages are for investment properties, while Standard Chartered Bank said the percentage is between 15 and 20%. The rest are owner-occupied ones.

A Maybank spokesman argued that 'there is no direct relationship between loan rates and the 35% limit'. The pricing of mortgage rates and corporate loan rates depends on a combination of factors, such as the risk profile of the borrower, the purpose of the loan and the type of property mortgaged, she said.

In his report, Dr Chua also noted that property speculation may have increased, as reflected in the rise in sub-sale deals to about 10.5% of total transactions for the April to May period, compared with about 3% 3 years ago. But this is still much lower than the 1990s peak.

[Maniac Monday]

Counting down ..... 4 more days.
Are you ready?
Charge!

[Registered]

Counting down ..... 4 more days.
Are you ready?
Charge!

Wah!
I can't wait man!

[Unregistered]

so who's on the invite list for next week? which day?

[Unregistered]

so who's on the invite list for next week? which day?

ugly. Just plain ugly.

[Latest]

Latest......

Management & staffs of UE and their partners already pick up good units.

The Rochester open to VVIP from Monday to Wednesday.

Thursday open to public.

Good units mostly taken up already by Management & partners of UE.

Expected to be sold out by Thursday.

[Unregistered]

Directors and Management will not only get the 2 % discount but what makes the diff. is the dev will probably raise the price daily(maybe hourly ). hence the price diff for a similar unit can be more than 10%.

And in fact each batch of units released, the price will increase.
So directors get the lowest price, followed by management staff, then followed by business partners.
When it comes to VVIP, the price goes up...may be increased a few times per batch increased.
When it comes to VIP, the price goes up...increased a few times per batch released.
When it comes to public, OH, sorry no public launch... SOLD OUT ! Pls buy in secondary market.


Heard in the Duchess Release, UOB families got the first batch at $1500psf. When the units were released to the VVIP, already reach $1800psf. Not sure how true, but "no fire, no smoke" ?

[Unregistered]

Directors and Management will not only get the 2 % discount but what makes the diff. is the dev will probably raise the price daily(maybe hourly ). hence the price diff for a similar unit can be more than 10%.

And in fact each batch of units released, the price will increase.
So directors get the lowest price, followed by management staff, then followed by business partners.
When it comes to VVIP, the price goes up...may be increased a few times per batch increased.
When it comes to VIP, the price goes up...increased a few times per batch released.
When it comes to public, OH, sorry no public launch... SOLD OUT ! Pls buy in secondary market.


Heard in the Duchess Release, UOB families got the first batch at $1500psf. When the units were released to the VVIP, already reach $1800psf. Not sure how true, but "no fire, no smoke" ?

When the bird flu pandemic hits, all the guys with limited resources will be brunt beyond recognition and will never see another sunny day again. The rich always survive and emerge wealthy. Life is not fair indeed.

[Unregistered]

why not buy one north subsale at a cheaper price? it would be like buying units at the sail just before the launch of marina bay residences. right now subsale units of the sail are at a comparable pricing level to marina bay residences subsale units. more upside if you ask me.

[Totally Unregistered]

Directors and Management will not only get the 2 % discount but what makes the diff. is the dev will probably raise the price daily(maybe hourly ). hence the price diff for a similar unit can be more than 10%.

And in fact each batch of units released, the price will increase.
So directors get the lowest price, followed by management staff, then followed by business partners.
When it comes to VVIP, the price goes up...may be increased a few times per batch increased.
When it comes to VIP, the price goes up...increased a few times per batch released.
When it comes to public, OH, sorry no public launch... SOLD OUT ! Pls buy in secondary market.


Heard in the Duchess Release, UOB families got the first batch at $1500psf. When the units were released to the VVIP, already reach $1800psf. Not sure how true, but "no fire, no smoke" ?

Heard UE staff do not enjoy the discount unless they hold until completion. They enjoy priority for selection only at launch price. OCBC related companies conservative and particularly careful about corporate governance issues and avoiding investor criticism. Of course in a hot market with so many subsales this alone is a big benefit. Will be sold out so fast I doubt any time to revise launch price. As for the real VVIPs I doubt they would have had to wait for Monday ... most major developers would discretely give them private viewing on request. Monday onwards only for 'normal' VIPs downwards.

[Also Unregistered]

why not buy one north subsale at a cheaper price? it would be like buying units at the sail just before the launch of marina bay residences. right now subsale units of the sail are at a comparable pricing level to marina bay residences subsale units. more upside if you ask me.

I suspect Rochester will launch at similar price level as present One North subsale prices which are already about 20+% higher than its launch prices. A Location-wise Rochester is closer to MRT. Also new launch you enjoy deferred payment option. Subsale buyers may not enjoy this from developer. Frankly if someone is looking for a home in that location for themselves rather than a quick buck the resale prices for other nearby (albeit older) condos eg. Dover Parkview are still far lower ($700+psf).

[Unregistered]

subsale at one north are currently abt 1,100 psf to 1,300 psf. The remaining 20% of units that will be available for vvip preview from monday to wednesday will not be cheaper than 1,400psf. by the time they are done with raising prices by the hour you will prob be seeing prices at 1,600psf. so people who bought at 1,600psf will then try to flip for 1,800psf that makes one north are current prices good. or of course you can buy subsale units of the rochester (being quietly flipped by UE staff now, i have come across 2 one at 1376 psf and another at 1450psf, of course they got it a 1,200psf) btw there is no need for them to get a discount of say 2% because staff and partners simply bought it sometime ago at the "price it was then priced at which was 1,200psf) just that the public could not buy then.

[Unregistered]

drove past just now... there is a queue forming outside showflat.

[Unregistered]

Anybody been to the showroom. What is the selling price?

[Unregistered]

subsale at one north are currently abt 1,100 psf to 1,300 psf. The remaining 20% of units that will be available for vvip preview from monday to wednesday will not be cheaper than 1,400psf. by the time they are done with raising prices by the hour you will prob be seeing prices at 1,600psf. so people who bought at 1,600psf will then try to flip for 1,800psf that makes one north are current prices good. or of course you can buy subsale units of the rochester (being quietly flipped by UE staff now, i have come across 2 one at 1376 psf and another at 1450psf, of course they got it a 1,200psf) btw there is no need for them to get a discount of say 2% because staff and partners simply bought it sometime ago at the "price it was then priced at which was 1,200psf) just that the public could not buy then.

Get real, no need to talk up your your unit, I know for fact one flipper let go at 890psf and suffer a loss recently

[Unregistered]

Get real, no need to talk up your your unit, I know for fact one flipper let go at 890psf and suffer a loss recently

imho, the flipper who lost money obviously had no holding power and must have gotten a lousy unit.

[Investor.]

Let go 1 of my unit at $97x psf 1 month ago. Make around $200k.
Damn stupid! I must be an idiot!

Now I am holding on to the other unit.
Just rejected a $1,000 psf offer.

I believe I should be able to go The Rochester soon to say thanks to the development.

[Unregistered]

Let go 1 of my unit at $97x psf 1 month ago. Make around $200k.
Damn stupid! I must be an idiot!

Now I am holding on to the other unit.
Just rejected a $1,000 psf offer.

I believe I should be able to go The Rochester soon to say thanks to the development.

But you still can make lots of money on your remaining unit. Cheers.

[Unregistered]

Wow, UE hitting for a home run by launching at $1500 level. Big queues but don't know how actual booking rate is like. Even the flippers will need to think very carefully ... Might be better to buy UE shares than to buy Rochester.

Meanwhile all those who are holding One North units must be ecstatic and those who had already flipped are crying.

[Unregistered]

Any updates on the sale of Rochester

[Unregistered]

Wow, UE hitting for a home run by launching at $1500 level. Big queues but don't know how actual booking rate is like. Even the flippers will need to think very carefully ... Might be better to buy UE shares than to buy Rochester.

Meanwhile all those who are holding One North units must be ecstatic and those who had already flipped are crying.

Subsale units for Rochester are already showing up in ads in ST today when the official launch suppose to begin on Thursday. Units bought by VIP are already on market. Perhaps you can also advertise for units that you plan to purchase on Thursday. I guess no law can bar anyone to advertise to sell something they don't yet own, but are going to acquire. What a shame! Unless effective measure to clamp down on speculation, the frenzy of speculation in property and stock markets will continue. Funny that the two casinos will open their doors only in 2009, yet more and more peoples are addicted to the game of "high stake" gamble. These days, property and stocks are popular topics in offices across the island and many actually are thick into actions (some doing it secretly without knowledge of colleagues), it is anticipated productivity should go down in the coming months as fewer peoples are able to remain focus on the job they are hired to do.

[Unregistered]

Wow, UE hitting for a home run by launching at $1500 level. Big queues but don't know how actual booking rate is like. Even the flippers will need to think very carefully ... Might be better to buy UE shares than to buy Rochester.

Meanwhile all those who are holding One North units must be ecstatic and those who had already flipped are crying.

Are you sure it's 1500psf? That is so cheap. I will not get or even look at it unless it's selling at 4000psf. Dunwan people to think I am cheapskate.

[Unregistered]

Rochester sold out yesterday. Today interested parties being put on waiting list in case some staff or other buyers pull out. Don't need to wait for IRs, gambling frenzy already launched.

[Unregistered]

wah maybe time to buy one north.

[Unregistered]

wah maybe time to buy one north.

Hold on, dun buy yet. I am predicting a US recession this year-end or early next year, a Middle-East crisis triggering a oil crisis around the same time and a China meltdown after the 2008 Olympics. If you can wait for 6 months to a year (why do you think the developer is launching and cashing in now?), I predict you can get either One North or The Rochester at 400psf because they are 99 years project. Mark my words. Don't buy uncompleted projects like these now.

[Unregistered]

Just saw in todays ST CATs, a unit at Rochester advertised for sale. Asking price S$1,550 psf. Apparently the seller got the unit at S$1,100 to S$1,200 psf at yesterday's VIP launch. Overnight, you are more than S$300 psf richer - where to get? It's no wonder there are so much speculation now in this game!!!!!!!!!!!!!!!

[Unregistered]

Hold on, dun buy yet. I am predicting a US recession this year-end or early next year, a Middle-East crisis triggering a oil crisis around the same time and a China meltdown after the 2008 Olympics. If you can wait for 6 months to a year (why do you think the developer is launching and cashing in now?), I predict you can get either One North or The Rochester at 400psf because they are 99 years project. Mark my words. Don't buy uncompleted projects like these now.

Yes - you may be correct - as Chinese Horoscopes also caution to
get out of investments in Year 2008.....

[Unregistered]

上帝要人灭亡，必先令其疯狂。 Carry on, Mr. flipper, you will get burnt sooner.

[Unregistered]

Ok folks, here is the latest

Just got back from One Rochester...it is definitely going to sell out before the public launch. They have sold out all 2,3,4 bedrooms. Penthouse via auctions. Left a few loft units , 1 bedroom units.

It is utterly utterly packed. It is limited to one unit per buyer.

[Unregistered]

Project sold out. Last unit sold was the 1 bedroom loft 1281 sf and heard went at 1600 psf! What would the price be for these people to flip?