$5,600 psf for Singapore penthouse new high in property price here

$5,600 psf for Singapore penthouse new high in property price here

53rd-storey Orchard Residences unit fetches over $28m
By KALPANA RASHIWALA

A NEW record property price for Singapore has been set, even though fewer sales are being made in high-end residential projects since the time of the US sub-prime mortgage crisis.

Orchard Residences: About 73 per cent of the total 175 units in the condo are said to have been sold
CapitaLand and Sun Hung Kai Properties are said to have sold earlier this week a penthouse on the 53rd storey of The Orchard Residences for about $5,600 per square foot (psf), or over $28 million. This surpasses the previous benchmark of $5,500 psf set in August when a 54th storey penthouse fetched about $27.8 million.

This means that all four penthouses in the 99-year leasehold development are now sold.

The developers are said to have sold about 73 per cent of the total 175 units in the condo. The buyer of the final penthouse sold this week is believed to be a foreigner. The 5,048 sq ft unit has five bedrooms, a study and a family room.

A stone’s throw away, Wheelock Properties (Singapore) is said to have sold more than 30 apartments at its freehold Scotts Square since the official launch of the project on Sept 28.

The developer is said to have largely maintained its average price at around the $4,000 psf mark from its preview in July, when it sold about half of the project’s 338 apartments.

Over in Sentosa Cove, Ho Bee has sold 38 of the 50 units it has released so far in its 91-unit condo, Turquoise, since late September. The units have been sold at prices ranging from nearly $2,500 psf to $2,770 psf.

The average price is about $2,600 psf, Ho Bee Investment executive director Ong Chong Hua said when contacted by BT yesterday. Buyers of the 38 units - which include four penthouses - were an equal mix of foreigners and Singaporeans, he said.

Apartments at the 99-year leasehold Turquoise typically cost around $5.3 million for a three-bedroom unit, $6.4 million for a four-bedder and around $9.3 million for a penthouse.

DTZ Debenham Tie Leung executive director (residential) Margaret Thean acknowledges that buyers, both local and foreign, have been more cautious after the stock market setback at the time of the US sub-prime mortgage crisis.

‘But we still see activity going on. For the high-end projects, we’ve not noticed any withdrawal of liquidity. The only difference is that prospective buyers are more cautious, doing more calculations and being more selective in their choice of investment before making a commitment,’ she said.

Market watchers also say that the recovery in the stock market in recent weeks has led to a return of confidence in the property market, as seen in a pick-up in subsales activity lately.

Over in the Seletar Hills area, Tong Eng Brothers unit Fairview Developments is launching two landed developments. One is the freehold 8 @ Stratton, comprising eight cluster semi-detached houses priced at $1.98 million to $2.2 million.

The houses have built-up areas ranging from 3,595 sq ft to 3,649 sq ft and strata areas of 4,930 sq ft to 5,145 sq ft. The second project is Nim Green, a collection of just three terrace houses - a corner unit with an asking price of $2.5 million and two intermediate units with a price tag of about $2 million.

Source : Business Times - 12 Oct 2007

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SLA selling four Singapore agricultural sites

SLA selling four Singapore agricultural sites

THE Singapore Land Authority (SLA) is selling four agricultural sites at Sungei Tengah near the Farmart Centre, Qian Hu Fish Farm and other farms.
The sites, ranging from 208,206 to 338,955 square feet, have 20-year leases and are for sale by tender. Offers close on Nov 15.

Permitted uses include orchid or ornamental plant production, fish/prawn farming, toad/frog culture, vegetable cultivation and fruit orchard.

Each site can also include a maximum 500 square metres (5,382 sq ft) of gross floor area of commercial use, comprising up to 200 sq m for food and beverage and retail and up to 300 sq m for rustic guest accommodation and/or spa facilities.

‘Feedback from farmers, and our research, shows the sale of Singapore agricultural sites with a small amount of commercial use is the best business model for farmers,’ said SLA’s deputy director of land sales Teo Jing Kok. ‘The injection of some commercial use allows farmers to diversify their operation and have an additional source of revenue.’

The sites will be awarded to the highest tenderers whose proposed use is approved.
In December last year, SLA sold three ‘agritainment’ sites - these have a higher commercial component of up to 1,000 sq m - at Lim Chu Kang. HLH Agri R&D was awarded the largest plot of about 548,624 sq ft for $880,000, or $1.60 per square foot (psf) of land area.

Yoli Technologies clin-ched the other two plots for $476,336 or $2.95 psf and $398,000 or $2.99 psf. The three sites were also sold with 20-year leases.

Agritainment sites can be used for a combination of agricultural and recre-ation/entertainment activities.

Source : Business Times - 12 Oct 2007

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Singapore High Court gives Horizon sale fresh lease of life

Singapore High Court gives Horizon sale fresh lease of life
STB dismissal overturned, en bloc law clarified, but sale still faces uncertainties
By MICHELLE QUAH

(SINGAPORE) The High Court yesterday overturned the Strata Titles Board’s (STB) decision in August to dismiss Horizon Towers’ collective-sale application - and sent the matter back to the board for its continued deliberation.

‘If one takes the view that the board has no power to allow an amendment even for a typographical error, then an entire en bloc sale could be stalled by a comma in the wrong place.’

This means that, barring any objection, Horizon Towers’ application will go back to the STB and will be heard from the point it was dismissed - giving the en bloc sale a chance to succeed.

What could block its path is an appeal filed by any of the minority owners against the High Court’s decision yesterday. The three groups of minority owners, however, told BT yesterday that they have yet to decide if they will file an appeal.

‘It’s something that we’ll need to sit down and discuss - we’ll need to read through the judgment carefully and weigh all our considerations before deciding how to proceed,’ said S K Phang, who represents one of the minorities.

The judgment was also significant for clarifying several aspects of the collective sales law, several players noted.

Justice Choo Han Teck, in his decision to overturn the board’s dismissal in August, ruled that the three missing pages in Horizon’s application to the STB did not constitute an ‘incurable defect’ as the board had alleged - as it wasn’t a substantial omission that prejudiced the minority owners.
He noted that the STB was notified of the missing pages, and provided with them during the hearing.

‘If (the error or omission) does not (cause prejudice to the minority), the board is, in my opinion, empowered to allow an amendment or correction so that the record is clear. If one takes the view that the board has no power to allow an amendment even for a typographical error, then an entire en bloc sale could be stalled by a comma in the wrong place. The law should not have such drastic consequences when there was otherwise no prejudice,’ Justice Choo said.

He also emphasised the purposive nature of the law and the need to apply it consistently. ‘Fairness requires that the law is applied consistently to everyone in similar circumstances. If the majority succeeds, it is because it is right, not because it is the majority. Likewise, if the minority succeeds, it is because it is right and not because it receives favours granted only to the underdog,’ Justice Choo ruled.

His judgment found favour with all parties involved, even the minority owners - who welcomed the clarity to en bloc rules it afforded. ‘It clarifies a lot of matters for us practitioners in the en bloc arena and is an authoritative ruling that has closed some gaps in interpretation right now,’ Dr Phang said.

Senior Counsel K Shanmugam of Allen & Gledhill, who represents the buyers - Hotel Properties Ltd (HPL) and its partners - also welcomed its guidance: ‘We now have a better idea of how the statutes should be interpreted and the guidance would be useful going forward.’

He added that the result was ‘exactly the result we wanted, what we argued for’ and it was a result which he knew a number of the majority sellers wanted - as they too want the sale to go through.

Lim Seng Hoo, current chairman of the Horizon Towers sales committee, said: ‘We are very grateful for the result. It shows we have not breached in the first place the contract with HPL (and its partners) as they have alleged.’

HPL and its partners have sued the majority owners for failing to do everything in their power to submit a proper application to STB. That suit has been temporarily stayed, but HPL is likely to still consider suing the owners for up to $1 billion in damages if the en bloc sale still falls through.

There are still hurdles to overcome. Even if the minorities decide not to appeal, there’s no guarantee the en bloc sale will go through. The STB’s calendar is believed to be bursting with appointments from other collective-sale applications to be heard.

The board was unable to revert to BT’s queries yesterday as to whether it would have a slot for Horizon Towers, but lawyers said it is likely that Horizon Towers’ application would be given priority, given its Dec 11 deal completion deadline.

But that’s not the only possible stumbling block: the STB will need to pick up from where it left off, that is continue hearing the minority owners’ objections to the sale and consider the merits of the sale, before deciding whether to grant the order needed for the completion of the collective sale.

And, as Dr Phang told BT, the minorities still have many objections to the en bloc sale which have not yet been heard. ‘We were only in the midst of questioning our first witness when the STB dismissed the entire application; when we go back to the board, it will have to hear our other objections. We have quite a few arrows in our quiver which we still haven’t shot,’ he said.

Philip Fong of Harry Elias partnership, who also represents several minority owners, added: ‘Our contention has been that this collective sale was done in bad faith - and that will remain our contention as we appear before the STB.’

The STB would, however, now need to view the minorities’ objections to the sale in the light of the judgment handed down by the High Court yesterday.

Source : Business Times - 12 Oct 2007

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Investment Singapore property sales jump 94% to $15.7b

Investment Singapore property sales jump 94% to $15.7b

By Jessica Cheam

INVESTMENT Singapore property sales nearly doubled, touching $15.69 billion, in the third quarter, reflecting buoyant investor sentiment.
This was 93.9 per cent higher than the $8.09 billion recorded in the same period last year, a new report by property consultancy CB Richard Ellis (CBRE) showed yesterday.

Most investment sales - 64.3 per cent, or $10.1 billion - came from the private sector, while public sector land sales made up 35.7 per cent, or $5.6 billion.

For the first nine months, major property deals worth $40.95 billion already exceed last year’s full-year value by 34 per cent, said CBRE.

In the third quarter, the office sector was the top performer, accounting for 43.5 per cent, or $6.83 billion, of major property deals - more than quadruple the $1.37 billion in the previous quarter.

Prime office rents also topped the 1990 historical peak of $11.50 per sq ft (psf) per month to hit $12.60 psf per month, up 82.6 per cent year-on-year.

CBRE expects occupancy levels to stay in the range of 91 per cent to 95 per cent for the next five years, even as more office space is built.

The third quarter also saw a rise in industrial property rents, except for warehouses.

The office space crunch has led to more demand for high-tech space, which has risen 8.5 per cent to $2.55 psf, and is set to reach $2.75 psf by year- end, said CBRE.

Its rental statistics are based on a selected basket of prime office buildings.

The Urban Redevelopment Authority said yesterday that its third-quarter statistics will be released by month-end, and will be more comprehensive as it is based on the tax records of all rental transactions in the quarter.

CBRE has also forecast that a record $50 billion in investment property sales would be completed by year-end.
Source : Straits Times - 12 Oct 2007

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Sing Holdings sells EastGate units for $63m in Singapore

Sing Holdings sells EastGate units for $63m  in Singapore

By Nicholas Fang
NEW PRIORITIES: Sing Holdings has sell its remaining units in EastGate along East Coast Road so that it can focus on residential property development instead.

A DECISION to focus on the booming residential property market has seen Sing Holdings sell off 48 commercial units in its EastGate building for $63 million.
The 10-storey EastGate, developed by Sing Holdings, received temporary occupation permit (TOP) status in 1998 and is located along East Coast Road and near Marine Parade Central.

Of its 52 units, four were sold before TOP. Sing Holdings said yesterday that it had decided to sell off its remaining units to focus on residential property.

Managing director Lee Sze Hao said in a statement: ‘The divestment of EastGate is in tandem with the company’s current business model of focusing on residential property development.

‘With the appreciation in values of commercial space, we believe that it is now an opportune time to unlock the value of EastGate.’

The units are being sold to Develica Asia Pacific, a wholly owned unit of Develica Asia Pacific Management, which invests in regional commercial real estate.

Develica chief executive officer Chris Brown said: ‘This is an excellent acquisition as it allows us to tap into the decentralisation of office operations out of the central business district due to the rise in rentals there.’

The sale price works out to about $1,059 per sq ft based on a net saleable area of 59,491 sq ft.

Sing Holdings will reap a net gain of some $15.9 million from the sale, which is expected to completed on Dec 13.

It intends to use the proceeds to pursue opportunities to expand its land bank for residential property development projects. The sale was brokered by Savills Singapore.
Source : Straits Times - 12 Oct 2007

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