KepLand to launch two projects soon

KepLand to launch two projects soon

Bukit Timah, Cairnhill Circle projects to cash in on market optimism

By Jessica Cheam

TWO new residential projects will soon be launched by property developer Keppel Land (KepLand) in an indication of the rebound in market sentiment.

The firm has yet to launch any residential projects this year, unlike other developers which have launched projects week after week in recent months to capitalise on the new-found optimism.

KepLand said yesterday it will be launching luxury projects Madison Residences in Bukit Timah and The Promont at Cairnhill Circle in the next two months.

This comes only four months after it made the decision to defer the construction of Madison Residences in March, citing weak market conditions.

The Promont is due for completion this year, said the firm.

Group chief executive Kevin Wong said yesterday at its financial results briefing that as markets in the region improve, ‘we will accelerate our project launches in Singapore, China and Vietnam to achieve faster returns’.

The firm posted a 10.4 per cent increase in net profit to $58.2 million for the three months ended June 30, compared to the same quarter last year.

Revenue came in at $250 million for the second quarter, up 34.4 per cent from a year ago due to progressive sales from launched projects in Singapore such as Park Infinia at Wee Nam and The Tresor at Duchess Road.

Keppel Land’s growing footprint overseas also helped to boost turnover, as sales from projects in China and Indonesia were registered.

Overseas earnings accounted for 30 per cent of net profit, compared to 18 per cent for the same quarter last year, said KepLand.

The firm is determined to expand its presence in China, recently announcing its proposal to delist Evergro, a China-focused property group, to merge both entities.

It had offered 29 cents per share - a 16 per cent premium over Evergro’s last traded share price of 25 cents on the Friday before the announcement.

Shareholders can also opt for one new Keppel Land share for every seven Evergro shares they own. This plan will allow KepLand to ‘tap on combined operational expertise, industry knowledge and extensive networks’ for expansion in China, said Mr Wong.

KepLand had raised some $708 million in a fully subscribed, nine-for-10 rights issue at $1.09 a share in June.

This has improved the firm’s borrowing position, and it is now looking for land to buy, said its finance chief Lim Kei Hin.

For the first half of this year, net profit was down 15.8 per cent at $95.1 million from the same period last year because of poorer first-quarter sales arising from lower revenue recognition for projects in Singapore and overseas.

Overall, turnover was down 13.8 per cent at $395.6 million compared to the first half of last year.

Earnings per share for the half-year ended June 30 was 8.2 cents, down from 11.1 cents previously.

Net asset value per share stood at $2.29 as at June 30, compared to $3.39 as of Dec 31, 2008.

Keppel Land shares closed five cents up at $2.54 yesterday.

Source : Straits Times - 23 July 2009

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Another reserve site draws bid

Another reserve site draws bid

Dakota Crescent condo site gets $130m offer; Chestnut Avenue plot put up for tender today

By Fiona Chan

FOR the second time in less than a week, the Government has received an offer for one of its condominium sites - after a 10-month drought during the recession in which it was unable to sell any residential land.

Yesterday, the Urban Redevelopment Authority said it has received a minimum bid of $130 million for a 1.7ha site at Dakota Crescent, near the upcoming Dakota MRT Station on the Circle Line.

This comes just three days after an unnamed developer offered $62 million for a land parcel at Chestnut Avenue in Bukit Panjang on Monday.

Both sites are on the Government’s reserve list, which means they are available for sale but are not put up for public tender until a developer pledges to put in a minimum bid.

The Chestnut Avenue site will be put up for tender today, while the Dakota Crescent site will be launched for tender in about two weeks.

The $130 million minimum bid that will be put in for the Dakota site works out to about $200 per sq ft (psf) of the potential gross floor area, which is about 650,000 sq ft, according to veteran property consultant Nicholas Mak.

He expects that when other bids come in during the tender, they could reach $350 to $370 psf of gross floor area, or $227.5 million to $240.5 million.

‘The site is fairly attractive because of its proximity to the upcoming Dakota MRT Station,’ he said, adding that the apartments that will be built on it can cater to HDB upgraders as well as investors on a tighter budget.

But Ms Tay Huey Ying, director for research and advisory at property firm Colliers International, said developers may not be overly keen on the site and probably only mid-sized and larger developers would bid for it.

She believes developers will stay cautious and limit their interest to sites that cost less than $150 million and that are located in the suburbs or the city’s fringes, where demand is strong now.

No state-owned residential land has been sold since September last year, when a site at the junction of New Upper Changi Road and Tanah Merah Kechil Avenue was awarded for $84 million.

Even that site was on the Government’s confirmed list, which means it was put up for sale at a fixed date regardless of whether developers had expressed any interest in it. The last time a developer has proactively put in a bid for a reserve-list site was almost two years ago, in November 2007.

But property consultants say developers could now be looking to replenish their land banks, given that they are now selling more new homes to buyers who are returning to the market in droves.

Developer GuocoLand, for instance, said yesterday that it has sold 117 of the 272 units in one of its projects, Sophia Residence in Mount Sophia.

It had released 38 units initially and sold them all, so another 100 units were made available during the project’s official launch last weekend, GuocoLand said in a statement. Selling prices range from $1,450 to $1,850 psf, and all the studio and two-bedroom units - which start from about 600 sq ft - have been sold.

Six in 10 of the buyers so far are Singaporeans. The rest are permanent residents as well as foreigners from Indonesia, Malaysia, South Korea, Taiwan, Myanmar, China, Australia and Europe, the developer said.

Only 20 per cent of buyers took up the interest absorption scheme that allows buyers to defer the bulk of their payments until their units are completed. The rest opted for the normal progressive payment scheme at a 2 per cent discount.

‘The site is fairly attractive because of its proximity to the upcoming Dakota MRT Station.’

Property consultant Nicholas Mak

Source : Straits Times - 23 July 2009

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Sophia Residence sells 85% of released units

Sophia Residence sells 85% of released units

GUOCOLAND Group’s Sophia Residence has drawn a strong response from property buyers here, with 85 per cent of its 138 released units sold thus far.

The 138 units included 100 units that were released during the official launch of the development last weekend. GuocoLand said it decided to release 100 units as the initial 38 units released earlier during the preview were all snapped up.

The units sold were a mix of studio, two-, three-, four-bedroom and penthouse units with selling prices ranging from $1,450 to $1,850 per sq ft.

The development features 272 freehold units. All studio and two-bedroom units have been snapped up, said GuocoLand.

Margaret Thean, executive director of real estate agent DTZ, pointed to Sophia Residence’s ‘extremely attractive’ location as the key draw.

Sixty per cent of the buyers are Singaporeans, while the rest are permanent residents and foreigners.

ERA president Jack Chua said that ‘foreign buyers are buying the units for their children’ due to the property’s proximity to institutions of learning, such as the Singapore Management University.

Additional units will be released this weekend.

Source : Business Times - 23 July 2009

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URA to launch residential site at Dakota Crescent for public tender

URA to launch residential site at Dakota Crescent for public tender

By Tang See Kit

SINGAPORE : A residential site at Dakota Crescent will be placed for public tender in about two weeks, following commitment from a developer to bid at least S$130 million for the land parcel.

According to the Urban Redevelopment Authority (URA), who made the announcement on Wednesday, the site has an area of about 1.7 hectares and will be able to generate a maximum permissible gross floor area of about 60,164 square metres with a lease period of 99 years.

It was made available for sale under the Reserve List of the Government Land Sales programme.

Under the Reserve List system, a site will be put up for sale only if a developer commits to bid at or above the minimum price which is acceptable to the government. - CNA /ls

Source : Channel NewsAsia - 23 July 2009

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HDB to launch condo site at Bukit Panjang

HDB to launch condo site at Bukit Panjang

By Irene Chan

SINGAPORE: The Housing and Development Board (HDB) will launch a condominium site at Bukit Panjang for sale by public tender on Thursday.

HDB said earlier this week it had accepted an application under the reserve list system from a developer to put the land parcel up for tender.

The 99-year land parcel has a site area of about 244,000 square feet and a permissible gross floor area of 513,000 square feet.

The minimum offer price for the site is S$62 million. The tender will close on August 19.

- CNA/yt

Source : Channel NewsAsia - 23 July 2009

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Frasers’ Aussie home projects on show

Frasers’ Aussie home projects on show

‘The Sydney Collection’ exhibition on at St Regis Singapore this weekend

(SINGAPORE) Frasers Property Australia, an overseas arm of Frasers Centrepoint, is holding an exhibition of its Sydney residential projects here this weekend.

The Sydney Collection - comprising Lumiere Residences, Lorne Killara and Trio - is on show at the St Regis Singapore.

In addition, a panel of Australian property experts have been invited to give their views on the potential of the Australian market. The line-up includes Stanley Quek, Frasers Property Australia’s managing director, and Rory McLeod, a property analyst with Colliers International Research, Sydney. The third speaker, Carolyn Chudleigh, is a property lawyer and director of the Property Council of Australia, a body that represents developers.

Frasers Centrepoint chief executive Lim Ee Seng said the group hopes the positive buying sentiment in Singapore will spill over to its overseas projects.

‘Sydney, in particular, is currently enjoying a strong pick-up in its sales,’ he said. ‘Australia has long been a popular market for Singapore buyers, and this is a good opportunity to view some of Sydney’s best properties under the Frasers brand.’

Lumiere Residences is situated in Sydney’s historic mid-town. The project is 56 storeys high and comprises 456 apartments. Prices start at A$1.16 million (S$1.35 million).

Lorne Killara is in the heart of Sydney’s prestigious North Shore. The project is a boutique development of 36 apartments and four pavilion-style penthouses. Prices start at A$795,000.

Trio is in an established residential community in Sydney’s Inner West, near major universities and teaching hospitals. Prices at this project, which is yet to be completed, start at A$435,000.

Source : Business Times - 23 July 2009

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Another condo site to go on sale

Another condo site to go on sale

URA gets offer for 99-year leasehold site on reserve list at Dakota Crescent

By KALPANA RASHIWALA

(SINGAPORE) For the second time this week, a 99-year leasehold condo site on the government reserve list has been triggered for launch.

Urban Redevelopment Authority said yesterday it has received a successful application for the 1.7 hectare site, which is located at Dakota Crescent and is next to the Dakota Residences condo being developed by Ho Bee.

The developer that successfully applied for the latest plot to be released has undertaken to bid for the site at a minimum $130 million, which works out to about $200 per square foot of potential gross floor area.

This is 62 per cent lower than the $524 psf per plot ratio (psf ppr) that Ho Bee paid for its site in June 2007. Ho Bee launched Dakota Residences at an average price of about $970 psf last year.

It relaunched the project a few months ago at an average price of about $900 psf. URA’s monthly developer sales figures for June show a total 27 units were sold in the project during the month at a median price of $870 psf.

Knight Frank chairman Tan Tiong Cheng reckons the top bid for the site could be about $350 psf ppr, which would work out to a breakeven cost of of slightly below $700 psf. ‘Bidding should be hot.

‘The site is next to Dakota MRT station and fronts the Geylang River. And it’s in a proven location,’ he added.

Based on URA statistics, Ho Bee had sold about 60 per cent of the 348-unit Dakota Residences as at the end of last month.

Earlier this week, the Housing & Development Board (HDB) said it will launch the tender for a 99-year leasehold site for a condominium development at Chestnut Avenue on the reserve list after receiving a successful application.

Following up on that announcement, HDB said yesterday that the tender for the site will close at noon on Aug 19. That plot was also from the government’s reserve list, and its launch follows a successful application by an unnamed party undertaking to bid at least $62 million at the tender, which works out to $120.83 psf ppr.

Mr Tan expects developers to trigger launches of more residential sites from the government reserve list, as it offers a good source of land for developing entry-level condos catering to HDB upgraders.

‘Right now, a lot of developers are focusing on the mass market; they’ve seen a recovery in the low end and it seems a safer bet. They may already have enough stock of high-end sites,’ he added.

Locations of residential sites in the second-half 2009 reserve list include Tampines, Jalan Jurong Kechil, Upper Thomson Road, Bishan St 14 and Serangoon Avenue 3.

Source : Business Times - 23 July 2009

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Housing market shows classic recovery signs

Housing market shows classic recovery signs

Subsales and foreigner purchases up in Q2; HDB upgraders’ share falls

By KALPANA RASHIWALA

(SINGAPORE) Three classic signs of a recovery have emerged in the Singapore housing market. Subsales and foreign buying have accelerated while the share of HDB upgraders in the private home buying pie has declined.

The number of subsale deals for private homes has more than doubled from 414 in Q1 this year to 1,041 in Q2 and the median subsale price has also risen 18.1 per cent over the same period to $959 psf, based on Jones Lang LaSalle’s analysis of caveats lodged for private homes captured by URA’s Realis system as at July 17.

HDB upgraders’ share of total caveats, which had been increasing for six consecutive quarters since Q4 2007, slipped in Q2 this year as purchases by those with private addresses rose at a faster clip. This could be because Q2 saw more mid and mid-upper projects launched, compared with predominantly mass-market launches catering to upgraders in Q1, says Knight Frank chairman Tan Tiong Cheng.

The number of caveats for private homes lodged by foreigners, including PRs, nearly tripled - from 496 in Q1 to 1,418 in Q2. The increase outpaced a 103.9 per cent rise in Singaporean buying. As a result, foreigners’ share of private home buying rose from 15.5 per cent in Q1 to 20.5 per cent in Q2. The most popular districts among these buyers were Districts 9, 10 and 15 while the more sought-after projects included Rivergate and Martin Place Residences (district 9), The Arte (district 11), The Lakeshore in Jurong and Mi Casa in Choa Chu Kang.

‘Singapore properties are more affordable today than they were during the peak. Foreigners, like local buyers, are finding value in the local property market and looking at the upside potential,’ says JLL’s head of South-east Asia and Singapore research Chua Yang Liang, adding that the positive economic growth in China, India and Indonesia had nudged their citizens into investing here. He also observed a rise in purchases by Myanmar buyers.

Going ahead, foreign buying is expected to gain momentum, if the property recovery and regional economic upturn continue.

Malaysians were the top buyers of homes in Singapore in Q2, making up 29.3 per cent of total caveats lodged by foreigners, followed by Indonesians (20.3 per cent share), mainland Chinese (14.9 per cent) and Indians (12.1 per cent).

Foreigners were drawn to prime district projects like Martin Place Residences in the primary market and Rivergate and Seaview in the secondary market in Q2, said CB Richard Ellis executive director (residential) Joseph Tan.

JLL’s head of residential Jacqueline Wong has seen more high networth individuals from India, Hong Kong and China looking to make their maiden property investments here. ‘They are not PRs and are looking at apartments 3,000 sq ft and above in the Orchard Road belt. They’re drawn by value; prices in the luxury sector are today about 15 to 25 per cent below the 2007 peak levels,’ she said.

Going ahead, foreign buying is expected to gain momentum, if the property recovery and regional economic upturn continue.

In the subsale market, the most popular projects transacted in Q2 were Rivergate (95 units), The Centris (46 units) and City Square Residences (45 units). Rivergate and Phase 2 of City Square Residences obtained Temporary Occupation Permit (TOP) in March, and Centris, this month.

The median subsale price in Rivergate has risen from $1,200 psf in Q1 to $1,400 psf in Q2 and that for The Centris increased from $587.50 psf to $625 psf. City Square Residences’ median subsale price rose from $791 psf to $893 psf and that for The Sail @ Marina Bay, from $1,321 to $1,623 psf.

Subsales are secondary market deals in projects that have yet to obtain Certificate of Statutory Completion. This could be three to 12 months after the project gets TOP. Market watchers note that there’s typically more sales activity around the time that projects receive TOP.

‘There are buyers who like to have the finished product because it’s ready for immediate occupation or renting out,’ says Knight Frank chairman Tan Tiong Cheng. Sellers who bought for investment, especially on Deferred Payment Scheme, can also cash out.

Analysts reckon that with a significant number of private homes heading for completion in the next 18 months, more subsale transactions can be expected.

Buyers with HDB addresses accounted for 44 per cent of total caveats lodged for private homes in Q2, down from the 56 per cent share in the preceding quarter.

The fall in proportion of purchases by HDB ugpraders was due to a bigger Q-on-Q jump of 174 per cent in Q2 in caveats lodged by those with private addresses, compared with a 70.8 per cent increase in caveats lodged by those with HDB addresses.

The most popular projects among HDB upgraders in Q2 were Mi Casa, with 145 caveats at a median price of $630 psf, followed by Double Bay Residences (106 units changed hands at a median price of $665 psf) and The Arte, (87 units transacted at $899 psf median price).

The share of HDB upgraders may slip further in coming months as the proportion of mass-market developments among project launches lessens as developers release more upper-end condos.

Source : Business Times - 23 July 2009

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