Smaller firms join hands to battle big developers
Smaller firms are taking on the big boys in the battle to buy development land plots.
By
joining hands and pooling funds, these upstarts have secured various
prime sites around town despite stiff competition in a robust property
market.
At
least three out of the 11 residential sites sold under the Government
Land Sales (GLS) programme this year have been snapped up by consortiums
of smaller investors. Smaller firms have also done well in the private
land sale market. They are redeveloping sites including McDonald's Place
at King Albert Park and Seletar Garden.
For
instance, a group of investors comprising SingXpress, Creative
Investments and Kay Lim Realty secured an executive condominium (EC)
site in Tampines for $234 million last month, outbidding others like Sim
Lian Group and MCL Land.
Experts
say that smaller firms are banding together as it helps them spread the
risk involved in the development of larger sites.
This
is especially vital amid market uncertainties such as the possibility
of a fresh round of cooling measures here and global concerns over the
euro zone crisis, they added.
Contractors
are able to control their costs better and they might be able to
translate the savings from the lower costs into a higher bid instead.
Source: The Straits Times – 4 June 2012
Room with a view? Not always
Views from the top are often coveted and many buyers are willing to pay a premium to secure high-floor apartments.
But these prized views of the city skyline or the sea front, for instance, are not always guaranteed to stay as long as the home buyer.
At times, new developments spring up right next to an existing project, obstructing both the breeze and the panoramic views.
For instance, The Bayshore near East Coast Park used to enjoy sea views,
but most of the units there are now blocked by Costa Del Sol. Silversea
in the same area, expected to be completed by the end of 2014, is also
likely to block the views of some apartments at The Sea View.
But buyers should be savvy enough to know what to expect, experts said. Even if marketing agents push the unblocked views as a key attraction of a newly launched project, their claims can be checked, they added.
By
checking the Master Plan and the gross plot ratio given for surrounding
sites, home buyers can get a sense of what project might get built in
front of them.
The
masterplan indicates whether an undeveloped land parcel, for instance,
might be earmarked for residential, commercial or mixed-use development.
The
gross plot ratio also determines how intensively the land can be used.
For example, a ratio of 1.4 allows developers to build up to five
storeys.
The
Government Land Sales (GLS) programme on the URA website - which lists
the land parcels the Government puts up for sale every half-year - is
also a good resource to check where new projects might soon rise.
Research
is crucial because buyers can either negotiate the asking price or
think twice about purchasing a unit if they know that its views will not last.
Source: The Straits Times – 2 June 2012
91 Pasir Ris EC units sold on first day of booking
More than 90 units have been sold at executive condominium (EC) Watercolours on its first day of booking.
The 99-year leasehold project in Pasir Ris opened for booking at noon yesterday and will close at 9pm today.
The
416-unit exec condo - the latest of a number of new projects in the
area - will be built at the junction of Pasir Ris Drive 3 and Pasir Ris
Link.
Huge
Development - a consortium made up of Ho Lee Group, UE E&C, GPS
Alliance Development and Investment, and Evia Real Estate - is behind
the project.
Buyers - an even mix of first- and second-timers - snapped up a range of units, although the three-bedders proved more popular.
Per sq ft (psf) prices at Watercolours range from $570 to $750, and work out to an average of $706 psf.
Mr
Hong said two-bedders start from $530,000, three-bedders from $639,000,
four-bedders from $885,000, and penthouses from $1.07 million.
However, yesterday's sales figure is lower than expected, and that the developers may have to review their marketing strategy.
It
could mean that this exec condo is facing stiff competition from others
that have been launched. Some buyers might also be waiting for new
ones, which could be in a location they prefer.
Source: The Straits Times – 2 June 2012
Changing face of Pasir Ris
Pasir Ris is easily dismissed as a sleepy outpost at the end of the East-West
MRT line, but property experts say home hunters could do well to
consider the area.
They
say the face of Pasir Ris will change significantly in the years ahead
as numerous projects, both private and public, add buzz to the
well-established area.
Buying
interest in projects launched so far has already been strong, thanks in
part to the affordability factor, the experts say.
Pasir Ris is a 'value-for-money purchase', especially for those who like the east and being close to amenities.
Homeowners
may see longer-term resale potential and rental upside when such
decentralisation of office space takes better shape in years to come.
This, coupled with the plethora of new launches there, could explain why resale activity has been subdued recently.
Still,
prices have held up. For instance, the freehold Ferraria Park sold 13
units at a median price of $940 psf in the first five months of the
year. It was completed in 2009. That price is fairly similar to that of
new freehold launches.
Source: The Straits Times – 2 June 2012
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