The Suites At Central Another Possible DPS Victim

It’s a fact. A buyer whom has committed 51 units at The Suites @ Central had problems paying up to Keppel Land as the developer calls for payment.

The Suites @ Central (District 9), formerly known as Ritz Residences is a 157 freehold condominium apartments situated at Devonshire Road next to The Metz, The Beaumont and Meyer Mansion. The joint developers are Keppel Land and Chip Eng Seng, and is about to receive its Temporary Occupancy Permit.

The bulk buyer has wrote in to Keppel for an extention of 6 months for the payments of his 51 units. Keppel has granted the request on the condition that buyer pays $500,000 monthly during the extended period.

Apart from the bulk buy transaction, there’s two other buyers who’re still arranging for payments for 5 of their units.

With the case from The Fernhill surfaced a few days ago and now this, we can see the fragility and the consequences of Deferred Payment Scheme (DPS) ballooning for the next few months when many new projects are about to receive its TOP status.

Apart from Wheelock Properties which hasn’t accepted any form of DPS during the availability of the scheme, most buyers are on DPSas it allows them to pay for their units only upon close to completion of the residential project, easing their cash flow then.

Buyers whom took DPS has paid 20% till now. Should they haven’t secure any bank loans now, most cash tight owners would experience problem as valuation of their property would have dropped since the peak in 2007, which financial institutions (FI) wouldn’t be able to support.

Would this be a mayhem for property stocks in SGX? It’s just a few weeks of wait before we know the extent of DPS’s damage.

Caspian & Alexis Sells Well – Singapore Property Mid Tier Market Still Strong

Mid Tier Developments Moving After Chinese New Year

Over the recent two weeks, we’ve heard Fraser’s Centrepoint Jurong Lake District Caspian condo selling well (over 60% sold of their 712 units) and Alexis @ Alexandra (of 293 units) by Yi Kai and Fision Group sold out in 3 days.

This shows our HDB upgraders and property speculators are still around despite the midst of the worst economy crisis that has ever happened to Singapore. While it’s a relief that the cash is still there, some of the buyers of Alexis has been seen trying to flip their just bought options for profit (Interest Absorption Scheme was offered and the owners are allowed to have 3 weeks to decide whether to take up loans from the exclusive bank)

With the successful launch momentum that Alexis and Caspian enjoys, Guocoland grabs the opportunity to re-launch its remaining units at The Quartz with a 10% discount on its tag (around 595psf). The Quartz is a 625 unit strong condominium residing near Buangkok MRT Station and has a balance of 182 units till date.
Continue reading “Caspian & Alexis Sells Well – Singapore Property Mid Tier Market Still Strong” →

Buyers and Tenants Market – Your Call Now

Well we’ve already slide into almost about 3 – 6 months of hourglass movement where the sellers’ market has eventually toppled over fully by the buyers. Inevitably this has uncannily become the same for the landlords to the tenants.

Buyers and Tenants, its yours in 2009 now :) — Buyers and Tenants, it's yours in 2009 now :) Photo courtesy of PretamRao

Buyers and Tenants are now the one with the say in the market.

We’ve seen newspaper reports on more retrenchments homing in after the Chinese New Year period which is about just 3 weeks away, which would cost more people to be distressed and worry about their mortgage loans; especially for those who have taken up Deferred Payment Scheme (DPS) for the new projects which are getting their TOP in 2009/ 2010.

Should the current crisis be affecting the buyers who bought on DPS, even if they have secured a loan with the bank, there might be still be chances these people might default. Again, those who would be in serious trouble are those who hasn’t secure a loan from the bank yet 3 months ago as local banks has taken their stances by already reducing their loan value of only up to 80% of the intended purchase property (The last I knew, UOB, OCBC and DBS is confirmed at 80% rate).

Buying/ Renting Opportunities

With property prices setting to slide further, this creates many possible opportunities of good buys as well as securing a good bargain for rental be it even for commercial or residential.

For the Residential Buyers

We’ll be seeing buying opportunities even in the prime districts like 9, 10, 11 affected. It probably would be a good time to buy for investment in Q2 of 2009 when we would see the full impact of the crisis after consumers cuts their spendings after Chinese New Year and more people losing their jobs. As gloomy as it is, those people who are in-the-money from the enbloc craze in 2006 – 2007 and hasn’t bought anything would have the last laugh.

I’ve seen good condominium units in Devonshire and Jervois going at very realistic and good price medians. Kudos to those who’re waiting.

For the Commercial Tenants

Business which are not affected badly by the crisis or are expanding could take this time to renew a decent tenancy with the landlord or look for even more bigger spaces to expand. Landlords are definitely in a softer position and would not be as skeptical as a year ago to listen to tenants’ proposals. If you have been a good tenant and punctual on your rents, they will definitely try to retain you.

Indeed the chinese phrase 危机 (the flip of two sides, the danger times and opportunities) has become imminently true for people who’re ready for the buying/renting to ride the next boom in at least 2011, 2012.