The Ministry of National Development revealed cash-over-valuation (COV) prices by buyer type for the first time yesterday, two days after its minister said in Parliament that permanent residents (PRs) are not to blame for pushing up prices of Housing Board resale flats.
Singapore private-property owners topped the list, paying a median COV of $45,000 in the fourth quarter of last year (see table), according to a table posted on National Development Minister Khaw Boon Wan's blog. In contrast, PRs paid the second-lowest median COV of $32,000.
Mr Eugene Lim, key executive officer of ERA Realty, said: "As private-property prices are at an all-time high, those who have cashed out would have easily made significant profit.
"So, they have the capability to pay higher COVs, especially for the larger flats that they usually buy. The other group are those who have profited from enbloc sales."
He cited a recent case in which a client made a profit of $700,000 after selling his intermediate terrace house for $1.5million.
The client "then bought an executive mansionette. He paid a COV of almost $100,000 and spent nearly $200,000 on renovation", said Mr Lim.
PropNex chief executive Mohamed Ismail pointed out that Singapore citizens were more likely to spend big bucks on COVs than PRs.
This is because citizens have more Central Provident Fund savings and qualify for higher concessionary loans.
Moreover, only Singaporeans are entitled to housing subsidies and buy resale flats under the Single Singapore Citizen Scheme.
"PRs who buy resale flats can't afford private properties as they are in the sandwiched income group," said Mr Ismail.
"Renting an HDB flat, which can cost more than $2,000 a month, is too expensive for them. As a result, they would rather save the money to buy a flat. And usually, they won't pay a high COV."
He said that PRs account for 20 per cent of the demand in the resale market, so they are not the sole reason HDB resale prices have risen by 83 per cent in the last five years.
Instead, overwhelming demand and insufficient supply are responsible for pushing up prices, he said.
About 10 to 15 per cent of the resale-flat buyers are private- property owners.
While property analysts largely concur with Mr Khaw's observation, they called for more information to facilitate a better understanding of the causes of high COVs.
"He should give the data for the whole year instead of just that for the fourth quarter, which is the time of the year when transactions begin to slow down," Mr Ismail said.
Mr Lim said a breakdown of the number and types of flats bought by different groups of buyers would be helpful.
Mr Nicholas Mak, executive director of SLP International Property Consultants' research and consultancy department, said singles pay lower COVs because they tend to buy smaller types of flats.
"Without detailed information, there is insufficient data to conclusively claim that it is the private-property owners who are responsible for bidding up the COV," he said.
HDB resale prices have been rising since 2002. The data provided by Mr Khaw is hardly enough to pinpoint which group of buyers are contributing to the rise in COV, he said.
Within just five hours yesterday, over 160 of the 250 units released were sold at the preview of Watertown, the first integrated waterfront residential and retail development in Singapore.
Almost 90 percent of the buyers were Singaporeans, with the SOHO Apartments and Suites receiving the most interest.
Considered the largest private development in Punggol Central, Watertown is jointly developed by Frasers Centrepoint Limited, Far East Organization and Sekisui House, Ltd, which is the largest home builder in Japan.
“Watertown marks yet another milestone for Sekisui House, Ltd. as our largest investment to date in Singapore,” commented Isami Wada, Chairman and Chief Executive Officer of Sekisui House.
Situated at the heart of Singapore’s first eco-town, the 992-unit development comprises Suites, SOHO Apartments, Sky Patios, and Residences. It also features Waterway Point, a retail and lifestyle hub with close to 370,000 sq ft of net lettable retail space, al fresco waterfront dining and a Shaw Theatres IMAX cinema.
Watertown is served by a comprehensive public transport network and will be integrated with a planned town square and riverside promenade for community events. Complementing Punggol’s eco-town aspirations, Watertown will also integrate green elements, coutesy of Sekisui House.
More Watertown units will be released at its official launch on 20 January.
The development is set to be completed in 2017, while Waterway Point will be ready in 2015.
Showflat not ready, but buyers lap up Watertown
Published on Jan 19, 2012
House hunters examining a model of mixed-use development Watertown in Punggol Central last night. Far East Organization said more than 160 units out of the 250 units launched were snapped up, with Singaporeans making up more than 90 per cent of buyers. -- ST PHOTO: RAJ NADARAJAN
By Esther Teo, Property Reporter
HOME buyers, undeterred by recent tough market cooling measures, turned up in strong numbers at the preview of Watertown in Punggol Central yesterday.
Far East Organization said more than 160 units out of the 250 units launched were snapped up, with Singaporeans making up more than 90 per cent of buyers.
The enthusiastic response means that the official launch, originally scheduled for next week, will now be brought forward to tomorrow.
Industry analysts say developers seem eager to push out projects quickly, possibly before more uncertainty emerges.
In the case of Watertown, the developers bought the site for the 992-unit project less than a year ago and have yet to finish the showflat.
But agents had been fielding inquiries on the mixed-use development even before the authorities' approval for the launch had been given, sources say.
They say at least 100 buyers were ready to hand over cheques on Tuesday. But building plan approvals were issued yesterday and only then could agents collect cheques and grant options to purchase last evening.
The $1.6 billion project is being jointly developed by Far East, Frasers Centrepoint and Japanese firm Sekisui House. It will be integrated with a mall of 370,000 sq ft of net lettable shop space and a Shaw Theatres Imax cinema.
Developers had earlier said that prices will start from $1,080 per sq ft (psf), which they said included a discount.
Even so, the development will still set a benchmark in Punggol, trumping Sim Lian Group's A Treasure Trove, priced at $866 psf at its launch last September.
Buyers were unfazed at picking units off the plan as the showflat is not yet up.
Key attractions are the waterfront location and the fact that the project is integrated with Punggol MRT station, experts say. Recent mixed-use launches like Bedok Residences have also seen robust sales and benchmark pricing at a median of $1,359 psf.
SLP International research head Nicholas Mak said that developers are pushing out projects as quickly as possible before more uncertainty hits the market.
'Especially in the Punggol area, developers face increasing competition as the Government has pushed out a lot of land there,' he added.
He said the 11-month turnaround for the site, bought in February last year, was 'fairly quick'.
It typically takes a year or more for integrated projects of this size to be launch-ready, he added.
The Dec 7 cooling measures included an extra stamp duty of 10 per cent on all home buys by foreigners. Some analysts tip price falls of 10 per cent to 20 per cent this year.
Separately, Sekisui House said it will tap its network of retailers to introduce new-to-market brands and concepts from Japan into the upcoming mall.
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发表于 10-1-2012 02:29 PM
这个星期五如果有幸，新年后找你，哈哈。
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