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Pacific Mansions sought $2,400 psf; Rivershire asked for $2,200 psf

Recent high-profile collective sales of Pacific Mansions and Rivershire have both failed to attract bids from developers willing to match the prices being sought by owners at the two River Valley condominiums.

Marketing consultants of both sites, however, are understood to be negotiating with ‘interested parties’ to see if they can at least achieve the reserve price - ranging from 10 per cent to 20 per cent below the asking price.

Asking prices at the two condominiums were optimistically priced at the very top end of market levels.

The current collective sale record stands at $2,338 per sq ft (psf) of potential gross floor area at The Ardmore in the prestigious Ardmore area.

Owners at the 45-year-old Pacific Mansions in River Valley Close, however, asked for even more - about $2,400 psf of potential gross floor area. This placed its total price at $1.18 billion.

Although the property market is booming, the perception is that the asking price for Pacific Mansions is high and unachievable for now, said a source.

Rivershire in the Leonie Hill area was put up for sale in late June at $348 million, or a hefty $2,200 psf of potential gross floor area.

The recent hike in development charge has no impact on the sites, as no such charge is payable for both sites.

There is talk that the Pacific Mansions’ tender had attracted a few expressions of interest but no firm bids.

Mr Steven Ming, director of investment sales at Savills Singapore, which is marketing Pacific Mansions, only said: ‘We have received interest, and we are in discussions with the interested parties.’

Knight Frank, which is marketing Rivershire, is also believed to be in talks with keen parties.

Nearby, owners of the 99-year leasehold Grangeford Apartments, who had asked for $2,016 psf of potential gross floor area, also failed to get what they had asked for.

The best they got was an offer from Overseas Union Enterprise - believed to be around $1,820 psf - subject to approval by owners controlling 80 per cent of the property’s share values.

The deal is likely to be sealed soon. CB Richard Ellis, which is marketing the site, said it is waiting for lawyers to confirm the approval level.

The absence of finalised deals for these condos has not stopped others from hitting the market at relatively high prices.

These include Trendale Tower in the Cairnhill Road area, which was relaunched for sale in late July at $2,477 psf of potential gross area. Its earlier asking price in May, when it was put up for sale via an expression of interest exercise, was at $2,200 psf of gross floor area.

Recently, City Towers in Bukit Timah Road was also relaunched for sale at a revised asking price of $2,100 psf of potential gross floor area.

Property consultants say the residential market is still rosy, though some collective sales may stall as the owners’ asking prices are far beyond what the market is currently willing to pay.

‘It really depends on the site’s potential,’ said one.

Source : Straits Times - 31 Jul 2007

It will give out more data on prices and ramp up supply of homes and offices

The Government is not hitting the brakes on the roaring property market, but it is keeping a sharp eye on soaring prices and the office squeeze.

This assurance came yesterday from National Deve- lopment Minister Mah Bow Tan, who said the Government was more inclined towards applying a light touch.

It will depend on ‘non-interventionist’ measures like providing more information to the public on prices and rents while ramping up the supply of homes and offices.

The Government sees this shortage of space - which has resulted in rising home and office rents - as a short-term problem that is best tackled with like-minded measures.

‘We don’t want to use long-term solutions to try to solve short-term problems. If you do that, you might create problems in the long run,’ said Mr Mah.

He added that the Government will look into releasing temporary premises as a way of helping the supply side of the equation.

The HDB is also rolling out a pilot project to lease 120 vacated flats under the Selective En-bloc Redeve- lopment Scheme for terms of one or two years, depending on public response.

A ‘few thousand units’ would be available to help tide the market over the interim period before long- term supply kicks in with the completion of new residential projects, said Mr Mah.

Another initiative announced recently involved the launch of ‘transitional’ office sites by the Urban Redevelopment Authority (URA), which can be built on quickly.

The other weapon in the Government’s approach is to provide buyers and sellers with information - a lot more of it, and data that is more up to date.

Such data is seen as particularly important, given the headlines that rising prices have commanded of late.

Figures by the URA last week showed private home prices climbed 8.3 per cent in the April to June quarter, while the Housing Board revealed that resale prices for flats jumped 3 per cent in the same period.

Both increases are the highest in almost a decade.

Mr Mah maintains that in such an environment, providing useful data can clear the air for buyers and sellers.

He said he preferred to ‘let the market forces work’, but for them to work effectively, ‘there must be sufficient information’.

A wealth of information on sale prices and rent levels for both residential and HDB homes, HDB resale prices and offices has already been released and made available online.

It allows buyers and sellers to get a better handle on how the market is moving in particular areas.

Mr Mah cautioned the public to ‘make a distinction’ between data analysis reports or projections by property analysts and the hard facts provided by the authorities.

‘You can have many different reports, but you should take URA and HDB reports as a snapshot of what is really happening on the ground,’ he said.

Mr Mah added that he was confident that with these measures - comprehensive data and temporary supply - ‘we will be able to moderate the prices’.

Mr Mah was speaking on the sidelines of a Ministry of National Development joint scholarship presentation ceremony, where 36 awards were given out.

This is the first time the ministry’s agencies - such as the National Parks Board, HDB and URA - have award their scholarships in a single ceremony.
 
Source : Straits Times - 31 Jul 2007

We Refer to the letter from Mr Teo Cheng Peow, ‘Time to regulate property agents’ (ST, July 11).

The Housing & Development Board (HDB) and the Inland Revenue Authority of Singapore (Iras) have been working with the Singapore Institute of Surveyors and Valuers and the Institute of Estate Agents to provide property buyers/sellers with more effective consumer protection, as well as support the drive of the real-estate industry towards greater professionalism.

To this end, an accreditation scheme for real-estate agents, called the Singapore Accredited Estate Agencies (SAEA) Scheme, was set up in November 2005. The scheme sets minimum education and practice standards for estate agents, and conducts disciplinary hearings into complaints against member agents and their agencies. We will continue to work with the SAEA on the accreditation scheme to enhance and improve the standards of professionalism in the industry.

To prevent HDB flat buyers and sellers from being taken advantage of by unscrupulous estate agents, HDB conducts monthly resale seminars on the policies and procedures pertaining to transactions in resale HDB flats. A comprehensive guide on the resale process is also available on the HDB InfoWeb at www.hdb.gov.sg.

HDB has also set up the e-Resale System which allows resale flat buyers and sellers who transact without engaging housing agents to submit resale applications and valuation requests electronically.

Property buyers and sellers may check if a housing agent is licensed, or view the criteria for granting of a house agent’s licence, on www.iras.gov.sg.

Those who need clarification on the policies and procedures involving transactions in resale HDB flats can call HDB’s Sales/Resale Customer Service Line on 1800-8663066, or visit HDB Hub during office hours.

For enquiries on housing agents’ licences, they can call the Iras enquiry line on 6351 2465.

RESALE SEMINARS

To prevent buyers and sellers from being taken advantage of by unscrupulous estate agents, HDB conducts monthly resale seminars.

Tan Heng Huay
Deputy Director (Public Affairs)
Housing & Development Board

Source : Straits Times - 31 Jul 2007

I REFER to the letter, ‘Time to regulate property agents’ (ST, July 11), by Mr Teo Cheng Peow.

We understand the writer’s concern, which is shared by other members of the public who have expressed similar views.

The approach we have taken to assist in resolving many of the problems involving unprofessional real-estate agent conduct is through the Singapore Accredited Estate Agencies (SAEA) Scheme. The SAEA was formed by a group of industry professionals with support from relevant government agencies in November 2005 to accredit both property agents and agencies with the view to raising professionalism and competence in the industry.

The SAEA seeks to ensure that by the end of next year, all agents under the scheme would pass the Common Examinations for House Agents (CEHA) and become accredited agents. However, the scheme may take some time to be accepted by the industry.

Accredited agencies and their respective agents adhere to a Code of Practice and Code of Conduct & Ethics. Disciplinary action will be taken against the agencies and their agents for any breach or non-compliance with the code of ethics. The Code of Practice, Code of Conduct & Ethics and a list of accredited agencies are on our website (www.saea.org.sg). A search can be made on the website to find out whether an agency or agent is accredited.

SAEA does not condone the practice of agents avoiding co-broking in order to secure the full fees from a buyer or seller.

We strongly urge potential buyers/sellers, and land-

lords/tenants to support the SAEA Scheme. We provide consumers with objective guidance, and will act in the best interests of both the industry and the public.

Manisah Jalil (Ms)
Secretariat
Singapore Accredited Estate Agencies
 
Source : Straits Times - 31 Jul 2007

PUBLISHING company Eastern Holdings, which ventured into property development three years ago, has bought a 10,888 sq ft freehold plot in Grove Drive for $12.5 million.

The price for the plot - which is near Ghim Moh Road - works out to $1,148 per sq ft of potential gross floor area.

Eastern said the move into property has allowed the company to ride on Singapore’s booming property market for growth.

Its chairman and managing director, Mr Stephen Tay, said yesterday: ‘This is the beginning of a new era of growth for Eastern, brought about by the robust demand for residential and commercial spaces.’

Eastern had earlier secured an option to buy an adjacent plot for $10.3 million and now plans to amalgamate the two sites.

Together, the combined plots at 81 and 83 Grove Drive offer a total gross floor area of 42,837 sq ft.

In a statement yesterday, the group said it is still discussing specific plans for the sites but may develop cluster bungalows or cluster semi-detached houses.

Eastern entered the property business in 2004 when the property market showed the first tentative hints of recovery.

It was a way for the company to diversify and add growth to its revenue streams beyond publishing, it said.

Today, the group - which publishes magazine titles such as Motherhood, Teens and Motoring - has a property portfolio of commercial, industrial and residential properties.

Source : Straits Times - 31 Jul 2007