Category: Real Estate News

The Interlace by Capitaland To Be Launched Next Month

Capitaland and Hotel Properties Ltd will be launching the former Gillman Heights condominium site with a $1.4 billion design by Ole Scheeren of OMA. The Interlace with a sprawling 81,000 sqm (871,560 sqft) land and a GFA of 170,000 sqm (1,829,200 sqft) will be configured into a 1,040-unit development next month.

Images from The Inhabitat.

Ole Scheeren is the man behind the design of China Central Television (CCTV) Headquarters in Beijing. His previous work includes the Prada Epicenters in New York City and Los Angeles. Just look at the breathtaking and bold architecture design here.

Imagine this. A 31 apartment blocks of six storey each, stacked hexagon ways. On top of which, sky gardens and roof terraces are key features with the surrounding Telok Blangah greenery. A mixture of townhouses (which could double up as home offices), 2-bedrooms, 3-bedrooms, 4-bedrooms and penthouses will be available as part of its offering in this 99-year leasehold project.

I like the description used by The Inhabitat for The Interlace, Jenga-Like apartments.

The Interlace by Capitaland. Image credit to Inhabitat
The Interlace by Capitaland. Image credit to Inhabitat

The project will be ready by 2014, is own by Capitaland, Hotel Properties Ltd (HPL) and National University of Singapore (NUS). The architect is local RSP Architects Planners & Engineers (ION Orchard, Wheelock Place, St Regis Hotel & Residences) and the landscape architect is award-winning ICN Design International

Image credit to Inhabitat for The Interlace, Capitaland

To find out more about The Interlace as the latest news releases, feel free to register with me or contact me at +65 91253045.

IRAS – No Changes to Tax for Property Gains

Nothing new is springing up from Inland Revenue Authority of Singapore (IRAS), after a period of uncertainty especially to property investors with the recent speculations of government measures to firm up the possible taxation of property owners selling their assets for capital yield.

Previously it was proposed that an individual who sells a property would not be taxed on the profit if he had not sold any other property in the preceding four years.

The public consultation process for the proposal attracted 64 responses with 60 opposing the change. This rule would be confusing to sellers amidst the economy which seems to start finally picking up pieces.

The gray area of how IRAS actually goes after property owners who transacts property on a regularly basis will still persist, but its still better than punishing long term investors who deem investing in property as a financial tool to hedge inflation over a long period.

No Stakeholder Monies to Be Held by Law Firms Soon

Finally! And I thought it’s going to take them long enough to realize that sometimes even the level which is suppose to be the most just and neutral party might just give you the most problematic issues.

Ministry of Law has came up with a proposal that might allow an entity to be the stakeholder instead of the law firms that are in charged of conveyance of the intended property. The two suggestive was either the local banks or the Singapore Academy of Law to be the possible candidate in the process.

This move is to prevent lawyers who has ill-intention to abscond their clients deposits. The most common property conveyancing involves in lawyer holding deposits is via the option to purchase method to purchase a property.

The usual conveyancing process involves the buyer to pay the seller a option money (usually 1%) and have a exercise money (4% or more, depending on the cash or what the option conditions were) which is to be held by the lawyer as stated in the option; The law firm will safe-keep the deposit (as stakeholder cheques are usually issued to the firm’s name). Upon the completion date of the property, the lawyer will then release the stakeholder’s sum together with the rest of the balance amount due to the seller.

You’ll feel much safer now when the deposits are addressed to an authority assigned department. This change is likely to happen by the end of the year.

45% of Viva Condo Units Sold at Preview

Novena - Viva, A 235 unit freehold condominium
Novena - Viva, A 235 unit freehold condominium

It was a busy day at the show flat for Viva, an AllGreen launch at the 4th day of its private preview for Knight Frank customers.

107 units out of a total number of 235 was sold till today and not all apartments were fully released. Among the most popular sizes were the 2-bedroom (957sqft) and the 2+study (1,044sqft) as they were snapped up as soon as they were announced available. Price is averagely sold around 1,550 per square foot on median.

A copy of the latest units sold could be downloaded here.

Viva - artiste impression
Viva - artiste impression

These are the selling factors that moved buyers to purchase Viva

  1. Prime Location, next to United Square and stone throw away from Novena MRT Station
  2. Good large plot of freehold land
  3. Quality Finishing
  4. Extremely functional layouts

The official launch for Viva is tomorrow (8th of August 2009) and all agencies are welcome to co-broke with any of the Knight Frank agents to bring your client down. To avoid disappointment, buyers and co-broking agents do call/text me at +65 91253045. If you can’t reach me, please contact Nicholas at +65 96582047.

Refer to the FAQ for Viva to understand the discounts given with the different payment schemas.

Should you have further queries about Viva, you can use this contact form to reach me; Expect a prompt reply.

Law Firm Pays $750,000 Difference for Not Exercising Option on Time

This will serve as a wake up call on the duties as a conveyancing law firm to or even to remind the client to exercise his/ her option to purchase on time.

June 20, 2009

A day late and $750,000 short for law firm

Clients win suit against firm for being late in filing purchase option for condo unit
By Desmond Ng

WHAT a difference a day makes.

For one couple, the mere delay of a day in buying their dream home cost them more than $700,000.

And the law firm, Toh, Tan & Partners, which had acted for them in the purchase, was made to pay them $750,000 in compensation.

The couple, Mr Chee Peng Kwan and Ms Jackelyn Sim, had instructed the firm to exercise their option to buy a property.

But the firm was one day late in doing so, resulting in the couple losing out on the chance to buy a unit at The Seafront on Meyer, a freehold condominium development along Meyer Road, in April 2007 at an offer price of $2.9 million.

Continue reading “Law Firm Pays $750,000 Difference for Not Exercising Option on Time” →

All Eyes On The Fernhill for DPS Direction

The Case

Developer MCL Land has written down a US$1.4 million for the first quarter previously as foreign buyer Concordia Overseas Pte Ltd has not made the necessary payment for its 20 purchased units at The Fernhill.

The Fernhill (District 10) is a 25 unit freehold boutique condominium off Stevens Road. Concordia has bought all 25 units under Deferred Payment Scheme (DPS) in January 2007 from MCL Land at $1,410psf and resold 5 units within a year profiting close to $700psf.

Concordia has failed to pay up when The Fernhill has completed, forcing MCL Land to servce a 21 days notice to them to rescind the sales and purchase agreement.

According to Concordia’s lawyer, 19 out of 20 units that remains in their portfolio was sold and will be completed before the 21 days period, allowing MCL Land to register its profit on Q2 results this year.There’s a remaining balance of one final unit which was not made known in the news on its status. As far as it comes to this stage, should Concordia not be able to complete the sale of the unit, MCL Land could it take back and pocket the 20% that Concordia has already paid for to remarket it.

It won’t be a profitable move if a buyer actually walks out at this point had the developers sold the units at the peak of the market.

Will the DPS Frenzy Start?

We’ve already seen Capitaland taking charge by rescinding some contracts to remarket some of The Rivergate condominium units to avoid crashing the market price in its project. There will be more of such units floating into the market as more projects are completing soon. (Many, among hiding are Tierra Vue which is coming this July, One Amber and Grand Duchess at St Patrick’s by the end of the year, and a whole lot more)

Will the developer take action against DPS default buyers? We really don’t know, but there’s only 2 outcome:

  1. The developer rescinds the Sales and Purchase agreement of the buyer, takes back the unit, forfeits the 20% already being paid and re-markets the unit without taking action against buyer.
  2. The developer rescinds the Sales and Purchase agreement of the buyer, takes back the unit, forfeits the 20% already being paid and sues the buyer for the difference. That’s the worse case scenario.

Market watchers are watching closely on The Fernhill development to look at the trend on how the developers react to DPS defaulters. We’ll see.

Singapore First Renters Insurance

Amidst the down times comes opportunity as Sunday Times report on a new product that would be coming to Singapore for landlords; note that this is not something new in other parts of the world.

Next month, Jardine Lloyd Thompson and QBE Insurance Group will launch a rent protection insurance policy aimed at protecting landlords of private homes and HDB flats.

The timing of this first-of-its-kind product in Singapore is perfect given rising instances of early terminations as global economic conditions worsen.

‘This is something you can find in Australia. We talked about offering it here a year ago and it is now ready,’ said Institute of Estate Agents (IEA) president Jeff Foo. ‘From feedback gathered from our members, there are more people breaking their leases early this downturn compared with the previous downturn. Landlords are not really protected.’

..

If the premium of the rental insurance coverage is at 15 – 20% on a monthly basis, it would cough up to be about close to 2 months of rental fees or so for protection against tenants who abscond or defaulting their rent. Not exactly cheap if you’re talking about a normal lease of 12 months.

Again, it’s an option and another avenue for landlords to look at as we should be seeing many more defaults and absconding cases coming in when the level of expatriates leave increases.

An opportunity indeed ;)

Agency Pays Up on Flipping Profit to Couple

Remember the case we mentioned a month ago with regards to two unethical agents? The agency pays up the differences to the original sellers of $257,000.00 and the agents have since quit the firm.

A COUPLE who successfully sued estate agency ERA Realty Network for flipping their apartment has got back the money that the agents made on it, with interest.

ERA yesterday said that it would not be appealing against the decision last month ordering it to pay $257,000 to Mr Yuen Chow Hin and his wife, Madam Wong Wai Fan.

The couple had sold their two-bedroom downtown apartment for $688,000 through ERA agent Jeremy Ang in 2007, thinking it was the best price he could get them.

… Source: Straits Times Online

Continue reading “Agency Pays Up on Flipping Profit to Couple” →

URA Gazettes Master Plan 2008

Alas, the Urban Redevelopment Authority (URA) of Singapore has finally gazetted the Master Plan 2008. The draft version of the plan has been online since months back and has already interestingly piped the way that our country will be shaped the next 10 years.

Sunrise from The Sail on 34th floor, construction of Sands Integrated Resort
Sunrise from The Sail on 34th floor, construction of Sands Integrated Resort (photo credit:Tom Bodley)

If you have trouble understanding what is Master Plan from URA, here’s the official textbook definition

“Statutory land use plan that guides physical development of the country for the next 10 to 15 years”

It’s law for developers and anyone that has got to do with land, buildings in the next 10 – 15 years according to the plan.

The online version of Master Plan 2008 was much better than the former 2003 in terms of use. Much clearer when you can actually search for the specific place rather than zooming in to look at the map. I like this change particularly ;)

Plot Ratio Change? Nay

Well, not much plot ratio change has been introduced as compared to former MP 2003. The focus for this plan is to introduce 3 regional hubs into our heartland,  Jurong Lake District, Kallang Riverside and Paya Lebar Central.

I’m no good forecaster, but should this three hubs be established decently and effectively, we can probably see plot ratio increase for buildings that are around the new circle line entrances of new stations that is springing up around the hubs in the next MP 2013.

What’s Gonna Happen In 5 Years Time?

I’ve actually seen work already happening and working around my residential area in Geylang. Part of the leisure plan for water body has already started since months back. We’ll expect to see the landscape of our country changed yet again for the better.

I can’t see any reason why this plan could fail with the successes of the previous MPs, that said with the additional help not only from planners but even the public floor, where 300 feedbacks were taken into serious consideration after the draft Master Plan 2008 exhibition was up since 6 months ago.

Live. Work. Play.

Singapore will evolve for the better. I’m excited with the new changes coming up, are you?