MORE TIME FOR SINGAPORE LEEDON OWNERS?

MORE TIME FOR SINGAPORE LEEDON OWNERS?
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Rachel Kelly

Property developer GuocoLand is considering allowing the former owners of
Leedon Heights condominium to stay on in their units for a limited
period - a goodwill gesture at the request of those who want more time to
find replacement units.

The 23-year-old development off Farrer Road was sold to GuocoLand in a
collective sale last year for $835 million. Together with a $40-million
development charge, the price works out to $1,062 per square foot per plot
ratio.

Said Mr Karamjit Singh, the managing director of Credo Real Estate: “Most
developers prefer to get on with their demolition work so as to be able to
market their projects and, usually, contractually, the owners are allowed
up to six months.

“Recently, some developers with large projects have build show flats in an
obscure corner and allowed existing occupants to stay on while the
projects are being marketed.”

This appears to be what GuocoLand may do. In response to queries,
GuocoLand said it believes the land parcel is large enough for it to
undertake its marketing initiatives without inconveniencing the residents.

Leedon Heights sits on 48,525 sq m of land with a plot ratio of 1.6, which
can accommodate buildings of up to 12 storeys.

Said Mr Nicholas Mak, director of Knight Frank: “It’s very unusual for
developers to lease back to their owners after the collective sale.

“For developers to do that - I think that has happened before during the
Asian financial crisis - it would usually mean the developer feels that
the primary sales market is rather weak and is not ready to support the
kind of selling price they have in mind.”

According to the Urban Redevelopment Authority, there were almost 65,400
private residential units in the pipeline last September. Some 41,600 are
slated to be completed by 2010. - CHANNEL NEWSASIA
Source : Today - 15 Jan 2008

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