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Market watchers say the slew of changes governing en bloc sales is likely to cool the en bloc market.

They say the move to have two levels of consent - one based on share value and another on floor area - is in favour of those who do not wish to sell.

They also add that it puts residential owners on a more level playing field, as commercial units now have much higher share value.

It may also deter speculative investors.

Lee Liat Yeang, Lawyer, Rodyk and Davidson, said, “I think these amendments will cool the market both in the short term and the medium term. In particular, I think property consultants and lawyers will have to actually take more time to actually review the impact of the changes in the laws and procedures to see how they can actually fine-tune their actual processes that they are doing right now to make it in line with the new laws and regulations.”

As for the changes governing the setting up of sales committees and their proceedings, the law ministry says this will make the process more transparent.

Analysts say this will make it more onerous.

Mr Lee said, “There’s also a requirement that the lawyers be present to explain and to witness the signing of the collective sale agreement. This would also be very difficult, because it will be harder to organise signing sessions where lawyers are present. This might result in higher professional costs.”

Industry watchers say developers may have more difficulty finding good en bloc acquisition deals as the new rules will mean that potential sellers will have a harder time fulfilling the 80 percent criteria for consent. - CNA/ms

Source : Channel NewsAsia - 28 Aug 2007

Market watchers and analysts are still studying the impact of proposed changes to rules governing en bloc sales unveiled in Parliament on Monday.

Some say the revision will benefit property developers as it means greater clarity and certainty to their initial investment.

Owners of Neptune Court at Marine Parade are exploring an en bloc sale.

And insiders tell Channel NewsAsia, that so far, only about 40 per cent of owners are lending support to the move.

And unless they can get another 40 percent to say yes before the changes kick in, a later bid at a collective sale will have to comply with stricter rules.

S K Phang, Lawyer, Phang & Co, says: “Some people might say look hey it’s going to cumbersome, we got to comply with the new requirements, let’s quickly sign, so that may have that positive effect, so it might reach 80 per cent. So when the new rules come into effect, you’ve already reached your 80 percent and the rules don’t apply any more.”

Phang & Co is currently handling a few of such cases and a few others that have achieved the required consent.

Its lawyers say the en bloc market has already become less heated due to the increase in development charge and current volatility in the financial markets.

Industry insiders say some speculative investors who’ve paid deposits for potential en bloc units have allowed their options to purchase to lapse because they no longer see the potential to cash in on the en bloc frenzy.

According to some analysts, the proposed changes to rules governing en bloc sales will indirectly benefit developers or buyers.

This is because they can be more sure of the deal going through, once it is inked.

But they say it’s unlikely to affect the pricing or demand for future deals.

Nicholas Mak, Consultancy & Research Director, Knight Frank, says: “The demand for en bloc sales sites is actually a derived demand. It depends on developers’ sale of their projects, redeveloped projects. If the sales of developers’ projects are going well, developers will need to replenish their landbank, there by increasing the demand for en bloc sales. So, I think that the amendment is not likely to affect the demand but rather the market on the whole. The property market on the whole will be a greater determinant of the demand for en bloc sales.”

Others believe once the market has adjusted to the new rules, it will be positive for all parties in the long term. - CNA/ch

Source : Channel NewsAsia - 28 Aug 2007

The Urban Redevelopment Authority is planning a new landed housing estate in Sembawang.

The 8-hectare site along Sembawang Road and Andrews Avenue will be known as Sembawang Green.

The estate is expected to have a mix of bungalows, semi-detached and terrace houses.

Those who buy the 99-year lease land parcels will be able to design their own homes.

The first phase will yield a total of 57 housing units, consisting of terrace houses, semi-detached houses and a bungalow.

The land parcels will be sold by public auction on October 30th. - CNA/ch

Source : Channel NewsAsia - 28 Aug 2007

The tender for the commercial site at Anson Road has attracted a top bid of S$237.2 million.

The bid from Firstoffice works out to S$941 per square foot per plot ratio.

This is double the minimum bid of S$461 per square foot of gross potential floor area which triggered the tender for the plot.

CB Richard Ellis says the breakeven cost for the site is likely to be around S$1,700 to S$1,800 per square foot per plot ratio.

It adds that the successful bidder will be able to get a stabilised yield of around 4.5 to 5 percent based on a gross rent of about S$9 to S$10 per square foot per month.

The tender exercise received two other bids.

One came from Vivocity and another from Winglow which submitted the lowest bid of S$160 million.

The 99-year leasehold site has gross potential floor area of up to 23,000 square metres. - CNA/ch

Source : Channel NewsAsia - 28 Aug 2007

CapitaLand has acquired the remaining 50 percent stake in Eureka Office Fund for S$590.6 million.

The fund owns the commercial building known as 1 George Street and 163 strata-titled units in The Adelphi.

It also owns a 20 percent interest in Temasek Tower.

CapitaLand says the transaction is not expected to have any material impact on its net tangible assets or earnings per share for this financial year. - CNA/ch

Source : Channel NewsAsia - 28 Aug 2007