HO Bee Investment will preview its Trilight condo at Newton Road this week at an average price of about $1,650 per sq ft, the group’s chairman and CEO Chua Thian Poh told BT yesterday.

Ho Bee will not offer an interest absorption scheme (IAS) for the 30-storey freehold condominium project, located on the highest point in the Newton area.

The $1,650 psf average price will be for an initial batch of 60 units. The condo will have a total 205 units, up from 152 planned initially. The increase results from Ho Bee’s decision to introduce two-bedroom units and reduce the number of four-bedders. Previously Trilight had only three- and four-bedroom apartments.

The latest scheme comprises 104 two-bedroom units ranging from 1,109 to 1,227 sq ft; 74 three-bedders in two sizes (2,099 and 2,110 sq ft) and 24 four-bedroom apartments of 2,336 sq ft. Trilight will have three penthouses – two units of 5,200 sq ft and one of 5,800 sq ft.

The typical two-bedder will cost under $2 million.

CB Richard Ellis and DTZ will market the project.

Market watchers say the $1,650 psf average price is within the range of recent transactions in the area. In nearby Bukit Timah Road, units at Ferrell Residences sold for between $1,556 psf and $1,931 psf in July-August.

And Madison Residences nearby sold at $1,567-1,745 psf in August, according to Urban Redevelopment Authority information on developer sales.

The high-end housing market is stirring again after Hungry Ghost Month. Far East Organization has sold a dozen units over the past couple of weeks at its Alba project in Cairnhill Rise. The unit sizes are 1,862, 2,066 and 2,250 sq ft.

They are among a clutch of 18 units Far East released on the second to seventh levels of the 18-storey freehold condo, which has a total of 50 units. The average price achieved for the 12 units sold is $2,300 psf, with the highest price being $2,500 psf.

Under the freehold project’s ‘white plan’, Far East can customise apartment layouts to suit buyers’ preferences.

SOURCE: Business Times

Electronics maker Aztech has become the latest listed company to announce a foray into boutique property development, joining the likes of bookstore chain Popular Holdings, jewellers Aspial and Heeton Holdings, once a big player in wet markets.

Aztech believes there ‘will be long-term sustainable demand’ for its new business given the projected population increase.

‘The residential property sector in Singapore has seen tremendous growth in terms of the number of new projects launched as well as the amount of interest in these projects among investors and buyers,’ the firm said in a statement last Thursday.

The company’s move follows that of Heeton, which was formerly in the wet market business but recently sold off its five markets to Sheng Siong to focus on boutique property development.

It developed the exclusive The Lumos condominium in Leonie Hill.

The firms are following in the steps of companies which branched out into the property sector during previous booms, such as bookstore chain Popular Holdings, which went into the market in 2006.

In June this year, it launched its maiden project, the 14-unit One Robin, which was sold out within two months.

Other developments under its belt include yet-to-be-launched 18 Shelford in Shelford Road and 8 Raja. The plunge in the fair value of these two developments caused the firm to report a net loss of $17.6 million for the year ended April 30, instead of a profit of $13.6 million.

The property bandwagon also picked up a few passengers during the real estate boom in 2000.

Among them were specialist contractor BBR Holdings, interior design and finishings firm Nobel, industrial gas and equipment supplier Leeden (then known as ACE Dynamics), as well as Noel, which sells hampers.

Market experts say firms now are likely tempted by the fever sweeping through the residential sector.

Lower construction costs and further growth in the property market, especially with the impending launch of the two integrated resorts, could potentially mean higher margins for developers.

‘Land prices for high-end residential development are still at a substantial discount (compared with) the recent peak in 2007/08,’ said Ms Tay Huey Ying, Colliers International’s director of research and advisory.

Developers can reap potential returns of about 10 per cent to 15 per cent, although that pales in comparison with the 2007 property bull run, where returns on prime projects could be as high as 50 per cent or more, said Mr Brandon Lee, a property analyst at DMG Research.

UOB Kay Hian analyst Vikrant Pandey is positive over the mid- to long-term prospects although recent government measures to cool the market could dampen the pace of recovery in the near term.

‘The current recovery in the property market has been supported by the strong underlying demand-supply dynamics, low interest rate environment and high liquidity flows that are expected to remain favourable,’ he said in a report last week.

It is also not difficult for firms to break into residential property development.

‘The residential segment has a lower barrier of entry; it is not as specialised as office retail or industrial, and is close to everyone’s heart,’ said Ms Tay.

In addition, smaller developments ‘have lower capital requirements and lower risk levels’.

But the capital-intensive and cyclical nature of the business means companies need to have the holding power to last through downcycles.

It is also a highly competitive market. The newcomers will be pitting themselves against larger developers with proven track records, more aggressive marketing strategies and larger war chests.

‘It happens in every cycle,’ said Mr Lee. ‘It’s easy business if the market is good. The key issue is what happens when the market comes down.

‘Personally I don’t think the market is big enough to accommodate so many players in a normalised cycle, although in an upcycle, it can.’

SOURCE: http://sharonanngoh.com/2009/09/28/aztech-jumps-on-property-bandwagon/

Gillman owners not impressed

Their chief complaint was that the units offered to them had bad facings and that prices were too high. Mr S.T. Soh, 68, said: ‘The apartments being offered were either too close to the highway, or were on very low floors facing Depot Road. These are among the worst units in the project.’

Another owner, who wanted to be known only as Madam Koh, had expected lower prices. But even the low-level units were going for a minimum of $1,048 per sq ft (psf), she said.

CapitaLand said the apartments ranged in price from $850 psf to $1,150 psf and represented a full spectrum of unit types from 807 sq ft to 5,877sq ft. Of the 1,040 units at The Interlace, 153 units from five blocks were offered at the private preview. A spokesman said: ‘These units, located on different levels in the development, also offer various facings – towards the pool, towards the sea, and towards the greenery at HortPark.’

The purchase of 607-unit Gillman Heights by Capitaland was completed in May, and the owners received between $870,000 and $950,000 for their units. They were also offered first bite to buy a new home at The Interlace.

SOURCE: Straits Times

The design theme for the project combines a forward-thinking lifestyle with creative art.

“We designed this project with creative art from several artists, making it look as though our customers will be living in a museum,” said chief operating officer, Prasert Taedullayasatit.

The project is located in Sukhumvit Soi 26, about 400 metres from Sukhumvit Road.

The L-shaped building will be a low-rise condominium with only eight floors above ground and one below. It is to be built on a land plot measuring 1 rai, 2 ngan and 75 square wah. It will have 138 units, with a total useable floor space of 9,944 square metres.

Individual units will have floor space ranging from 33.41-67.41 square meters. There will be 52 ordinary one-bedroom units, 70 “exclusive” one-bedroom units and 16 two-bedroom units.

Ordinary one-bedroom units will range in size from 33.41-36.98 square metres. Exclusive one-bedroom units will be larger, ranging in size from 43.69-55.04 square metres. Two-bedroom units will range in size from 65.01-67.41 square metres.

The company opened the project for presales last weekend.

“We believe that this project will match the lifestyle of home-buyers who want privacy and enjoy the creative art of living,” he said.

SOURCE: The Nation

The company has launched its latest 450-million-baht project, Surawong City Resort, to serve demands of working people in Silom, Sathon and nearby areas. The eight-storey building, situated on a one-rai plot on Naret Road, will house 116 units at sizes between 28 and 73 square metres and priced from 2.59 million baht a unit. The project already received the environment impact assessment approval and is scheduled to be completed in early 2011. Kay-Thai International Co is the contractor.

Alan Lin, CEO of Harrison Plc, the project’s sales manager, said the project targeted businessmen and general Thai and foreign buyers who want to have residences in the central business area. Since the soft launch, the company has sold half of the units and the project will close sales within six months.

Mr Chaivai said the company would continue to develop small condominium projects in locations close to mass transit routes at the rate of one project each year. Last year, it launched Ratvithi City Resort worth 450 million baht and was able to close sales of 167 units within one day. In total, City Resort Group has developed five condominium projects worth a combined 3 billion baht.

“Our policy is to develop small-scale projects one by one so we will launch a new project only after we can close sales of an earlier development,” he added.

The company will use its own cash to buy land plots within one kilometre of BTS and MRT stations.

Issara Boonyoung, president of the Project House Business Association, said the government-supported measures to reduce the house ownership transfer and mortgage fees are due to end on March 8, 2010, a move which will fuel the fee burdens of home buyers.

So, it is a good opportunity for potential homebuyers to decide on their home purchase within this year because prices remain relatively unchanged.

He predicted that the condominium market this year would enjoy a growth level close to that of last year.

Newly-registered condominiums now total 80,000 units, a number which is close to that of last year. Condominiums priced at around one million baht will remain popular.

Mr Issara said he did not believe the condominium market would experience an oversupply, despite expressions of concern by many.

Late this year, he said, the real estate market is expected to grow actively because more people might decide to buy houses before the government’s measures to reduce the ownership transfer fees end. (TNA)

The remaining units at the 590-unit condo are mainly larger ones – continuing a trend where buyers snap up smaller homes.

Trevista attracted hordes of keen buyers and onlookers at its preview two weekends ago. It sold out 210 units in one afternoon, on the first preview day of Aug 28.

Most of the unsold units at the 99-year leasehold project are the three- and four-bedroom units. An NTUC Choice Homes spokesman said there are just ‘a handful’ of two-bedroom units left for sale.

The 39-storey condo was previewed at an average price of $898 per sq ft. At that time, the three- and four-bedroom units averaged $1.065 million and $1.43 million respectively, under the normal payment scheme.

Now, the remaining three-bedders are priced from $1.008 million. They cost $884 psf to $1,050 psf. The four-bedders are priced from $850 psf to $964 psf, or from $1.448 million.

Elsewhere, sales are still ongoing at current launches. For instance, developer Keppel Land has now sold 37 out of 56 units at Madison Residences in Bukit Timah Road at an average price of $1,700 psf, after selling another unit over the weekend.

The project was launched in the middle of last month, after a brief preview.

The market was generally quieter over the past weekend, compared with the previous one.

Property agents said one factor might be people going away for the school holidays. Also, they said some price resistance may be setting in, particularly at projects subject to recent price rises.

Next week, The Trizon @ Mount Sinai, which has sold at least 110 units, will be launched. The project was previewed late last month at $1,300 psf to $1,500 psf.

Next month, the 1,040-unit The Interlace in Alexandra Road will be launched. Other possible launches this year include the 119-unit Elliot at The East Coast and a 396-unit condo on the former Hong Leong Gardens site in West Coast

SOURCE: Straits Times

The loan options being dangled are mind-boggling – such as the perennial choice between fixed or floating rate mortgages.

Some packages even come with a deposit interest matching feature where the interest earned can be offset against the mortgage interest.

Two examples are United Overseas Bank’s (UOB) HomePlus and Standard Chartered Bank’s (Stanchart) MortgageOne Sibor.

For instance, MortgageOne Sibor customers earn the same interest rate on two-thirds of their deposit linked to their mortgage as they pay on the loan. The interest earned can offset the mortgage interest.

Customers pay less interest each month, and are able to pay down their loans faster than is the case with a traditional loan package.

Citibank’s Home Saver deal is an index-linked home loan that offers customers one of the widest selections of index tenures in the market, ranging from one month to three years. Customers have the flexibility of switching from one index tenure to another. The indexes used for reference include the Singapore Inter-bank Offered Rate (Sibor).

If time is money, Stanchart has launched a service which provides in-principle approval for a mortgage loan within one hour – provided certain information like annual income and property valuation is made available.

Some experts even suggest that the conventional wisdom – that the best deal is the package with the lowest interest rate – is not always so.

‘The best loan package is the one that meets the needs of the home owner,’ said Ms Annie Lim, managing director of mortgage consultancy firm Global Creatif Financial.

Besides interest rates, consumers should look into such features as the lock-in period, penalties for partial redemption and legal fee subsidies.

Ms Lim’s own wish-list is a package with no lock-in period and no penalty for partial repayment.

‘I like the flexibility of not having to pay a penalty should I sell my property within the lock-in period, or to restructure my loan as my financial needs do change from time to time.

‘I also want to be able to choose partial repayment as and when I get any bonus or lump sum income,’ she said.

Here are 10 things to consider in a home loan:

1 Fixed or floating rate mortgages

Mr Dennis Khoo, Stanchart’s general manager for retail banking products, said customers who want security and stability should opt for a fixed-rate package as this is a good time to secure the pricing before interest rates rise.

‘With fixed interest rates, the monthly instalments are not open to fluctuations,’ he said.

But some other customers may believe that interest rates will fall or remain low.

For them, variable or floating interest rates are the preferred route, given that the payment amount automatically adjusts as rates go down – or up.

Customers typically link their loans to one of two major benchmark rates: Sibor and the Swap Offer Rate (SOR).

2 Sibor

Mr Dennis Ng, spokesman for mortgage consultancy portal www.HousingLoanSG.com, cautioned against the false notion that the Sibor will stay low at below 1 per cent.

He said it is likely to creep up as the economy recovers and when US interest rates are adjusted upwards.

‘The three-month Sibor is now at a low 0.68 per cent. This rate has been stable for the last six months. But do note that in 2007, Sibor was as high as 3.58 per cent.?

‘Sibor is mainly affected by the US Federal Reserve rate and the liquidity of Singapore’s banking system. The US is likely to keep interest rates low for the next six to 12 months,’ he said.

But two years from now, for instance, interest rates may go up. So do not calculate your ‘affordability’ based on current low housing loan interest rates, he advised.

3 Loans with interest-offset features

Ms Lim said customers with healthy monthly cashflows or initial lump sums parked in their savings accounts may want to check these out.

The deposits can be used to offset their loan account so that they pay only the loan interest on the difference, as in the case of Stanchart’s MortgageOne Optimizer.

Such an offset allows customers to lower their loan term without additional instalment payments, as offsetting minimises the loan payment.

4 Interest-only packages

These are available only for new loans, and on a case-by-case basis when customers decide to refinance.

Customers pay only the home loan interest and not any of the principal for a specified period, usually up to three years. In the fourth year, the loan reverts to a normal interest rate plus principal loan and follows the fourth-year rate of the package.

This option is targeted at the investor who wants to maximise bank financing for his property investments. It is also suitable for customers who may have temporary cashflow problems for a limited period, Ms Lim said.

5 Check out vacancy rates and rental rates

Investors who depend on rental income to pay their housing loan instalments should realise their property might go untenanted for up to six months. It is prudent to have enough cash or Central Provident Fund savings on tap to cover these monthly instalments.

Mr Ng noted that condominium rental rates are still falling. Investors should factor in a possible drop in rental income by 30 per cent to calculate the amount needed to top up any shortfall in rental against the loan instalments.

6 Penalties and fees

Customers should look beyond interest rates and consider other factors such as the lock-in period and penalty fees.

Some loans come with benefits including legal fee, valuation fee and fire insurance fee subsidies which are aimed at defraying part of consumers’ housing loan costs, said a UOB spokesman.

Another potential cost is the loan cancellation fee. An investor who bought a property speculatively and then applied for a loan might be slapped with a loan cancellation fee if the property is sold before the loan is disbursed.

Cancellation fees can range between 0.75 per cent and 1.5 per cent of the loan amount, and can be quite substantial. For example, if the loan amount is $1 million, the cancellation fee works out to $15,000, said Mr Ng.

7 Valuation

Do not assume that when you buy a newly launched property from the developer, you are free from having to check its market valuation.

Mr Ng understands that some new projects have been sold above valuers’ estimates. In such a case, you will have to use your own cash for the amount above what the property is valued at.

Say, a property is sold for $1 million but valuers reckon its market valuation to be $900,000. The $100,000 difference – known as cash-over-valuation (COV) – has to be paid by the buyer in cash.

Indeed, arising from the recent exuberance in the property market, the COV component is becoming more marked in private and public housing sales.

Ms Lim’s advice is to get an independent property valuation before committing to a sale price.

8 Debt servicing ratio requirement

To approve loans, banks typically use the debt servicing ratio – which is the percentage of one’s monthly income used to service long-term liabilities. The recommended healthy debt servicing ratio is about 35 per cent although every bank has different acceptable levels of debt servicing ratio.

Ms Lim recommends that young couples and first-time home owners apply for loans with the maximum quantum – usually 80 per cent of purchase price – and the maximum tenure. The latter is usually based on age 70 less the customer’s present age or 35 years, whichever is lower.

‘We recommend this in our practice to enable easier approvals of loans so that a healthy debt servicing ratio is achieved. Given the right package, the customer can always make future adjustments like doing partial repayments or shortening loan tenure,’ she said.

9 Have a buffer

Homeowners should have a buffer of at least 12 months’ funds to service the loan so that they have sufficient time to rent out or sell the property. This will come in handy if things turn bad, said Mr Bryan Ong, founder of mortgage consultant BC Group.

10 Mortgage insurance

Finally, that dream home may become a nightmare for your family if you fail to protect your investment with some mortgage insurance.

This safeguards your home, and family so that they will not be burdened with mortgage repayments or face the possibility of losing their home or downsizing should you die prematurely or become permanently disabled, said Mr Jason Ong, an adviser with Professional Investment Advisory Services.

SOURCE: The Straits Times

Designed by Ole Schereen, partner at the Office of Metropolitan Architecture (OMA), The Interlace comprises a total of 1040 apartment units that will be built on an expansive eight-hectare site set amisdst the green belt at the Southern ridges of Singapore.

The project will be officially launched to the public in October. In a press conference at the Singapore Raffles Hotel, Patricia Chia, chief executive officer of CapitaLand Residential Singapore revealed that the total investment for the project is estimated at S$1.4 billion which includes the price of the land at $548 million and construction costs (about $250-$270 per square feet). Also, the credit margin spread for the project is 3.48% and is financed by 7 banks for 5 years at $660 million with $1 billion on demand. The project’s legal completion date is in 2014.

Chia also said that the prices for the apartments will be comparable to other high-end properties in Singapore.

The Interlace will explore a refreshing approach with its design. Stacked in a hexagonal arrangement, it will be a 31-storey apartment block, each six stories high to form eight large scale courtyards. The intelocking blocks will resemble a ’vertical village’ comprising sky gardens and both private and public roof terraces as well other varying amenities.

The rooms will range from a two-bedroom apartment at approximately 800 square feet to a super penthouse with a private roof garden at over 6,000 square feet. The project’s site area is around 871,884 square feet. One of the bespoke apartments and sales gallery will be designed by OMA whereas a different interior designer will be commissioned for the other two penthouses.
The project is also eco-friendly in its design. Shereen remarked: “We made sure that the project connected with the environment so we will use passive strategies to reduce environmental impact. Also, we hope to expect a high score for a Green Mark award in Singapore. The environmental and social sustainability is already integrated into the design.”

The Interlace will enjoy a central location that is easily accessible via expressways as well as mass rapid transit stations. Furthermore, the development is close to various educational institutions as well as entertainment facilities.

Christopher Lim, group executive director of HPL stated: “With the site’s excellent location in the lush Southern Ridges area and the accessibility to retail, entertainment and other facilites, we are confident that The Interlace will appeal to well-travelled and cosmopolitan homebuyers who have been searching for a home with a difference.”

by Priya de Langen
SOURCE: Property-report.com

Called The Interlace, the condo is designed by world-renowed architect Ole Scheeren. He is from the firm Office for Metropolitan Architecture, whose other partners include the famous Rem Koolhaas.

The project, on an elevated 81,000-sq m site, has 1,040 apartment units in interlocking blocks resembling a ‘vertical village’, said Mr Scheeren at Friday’s design presentation.

He was giving a detailed introduction on the design to a room full of media, analysts, bankers and consultants at Raffles Hotel. The project, he said, breaks away from the standard condo designs of isolated, vertical towers.

Through vertical stacking, each home will have views, he said.

CapitaLand CEO Liew Mun Leong said the pricing will be kept ‘affordable’ as they want to make the world class homes accessible. The project’s construction costs will be around $250 to $270 psf.

CapitaLand bought the Gillman Heights site in a collective sale back in February 2007 at $548 million, or $363 per sq ft per plot ratio. The sale went to the High Court and then the Court of Appeal as minority owners tried to overturn the sale. But the owners lost their appeal and the sale was completed in May.

SOURCE: Straits Times