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:

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.
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.

Key Collection for Tierra Vue in July 2009

Key Collection for Tierra Vue Owners this July

It’s confirmed. A Tierra Vue owner client of mine has gave me a call 2 weeks ago to inform me about his unit’s keys availability in July as his solicitor has asked him to get ready.

He has sneaked into his unit and has a couple of shots of his unit as well as the surrounding compiled in pdf. Any interested parties of Tierra Vue can take a look at his duplex unit which is open for sale as well. You can contact me for more information.

A General Overview on Tierra Vue (Pre-TOP)

Actually I have snicked in before when the gardeners are doing the landscaping for Tierra Vue. The general feel for the project is good, nice ambience, decent sized project.

There are a few good factors which should be able to maintain the price of Tierra Vue project at its developer’s price; again it’s a bet. We know Tierra Vue’s pricing wasn’t the most ideal for buyers at the time of launch; median about 890psf, which is pretty high.

Good Finishing, Bedroom Sizes Err..

MCL Land’s finishings for projects has always been decent. I’ve peeked into the ground floor units. You have decent finishing for sure. A probable complain would be about the bedroom sizes. Again, most of the new projects have this same problem with the bedroom sizes. To overcome this problem, you can always consult your Interior Designer for space-saving techniques.

Prices for Tierra Vue

Since we know the launched developer’s price was high, we expect most current owners wouldn’t mind breaking even should there be any chances; As we can see lately there was two transactions (a 3 and a 2 bedder) in February and March that was clearly underwater.

Whether the transaction prices could still hold would determine on the key collection phase whether the owners will have the ‘Wow’ factor when they open the door to their apartment. We would expect some transactions to happen still before the TOP phase in July.

You can find more information about Tierra Vue and download a copy of the catalogue here.

St Patrick’s Loft Receives Temporary Occupancy Permit (TOP)

St Patrick’s Loft (District 15)

I’ve been hanging around St Patrick’s area more often than not lately with the recent St Patrick’s Loft owners getting their keys just two weeks back. Here’re some photos (credits to Nicholas) to share with everyone on the whole outlook of the project. It’s a pretty small boutique project by Roxy Homes who specialises in many boutique developments around Telok Kurau area.

Project View from the Outside, Next to St Patrick's Green

Pool View of St Patrick's Loft from one of the Unit

There’re a number of units that’s putting up for sale or rental. Those who generally knows St Patrick’s area well knows that this is a good living area with vicinity that’s walking distance to East Coast Parkway and good schools such as Tao Nan, St Patrick’s, CHIJ, Ngee Ann Primary, Victoria JC. Food is a boon here with all the eateries in Tanjong Katong, Dunman Food Court, whole stretch of East Coast Road and more.

We can’t just explain totally why people who lives in this part of the east will always prefer to reside back in the east (District 15 in general).

Realtor’s Project Information on St Patrick’s Loft

To assist fellow realtors, I’ve uploaded a full scanned pdf of St Patrick’s Loft. If you need a clean version of the pdfs without my watermark, feel free to email me to request what you need.

St Patrick’s Loft (41-45 Saint Patrick’s Road)
– Dec 2008 TOP
– Low-Rise (5 floors) boutique development by Roxy Homes
– 37 Units
– Various sizes, from 2 bedrooms to 4
– Swimming Pool/ Gym
– Brochure of St Patrick’s Loft (PDF Version – 7.6MB)

This is the most affordable new project that you can find in St Patrick’s area as compared to our neighbours like Tierra Vue by MCL Land, Grand Duchess at St Patricks by UIC and St Patrick’s Residences by TG Development.

As with it’s affordability compared, it has it’s own little flaws here and there which is justifiable by the asking price (you might be able to get a unit here with the range of $600 – 650psf on average with the current market, about at least $200 – $250 cheaper psf as compared with Grand Duchess at Saint Patrick’s)

The Good

Units are surprisingly breezy despite being a low-rise. +
Freehold
Location +++
Value for money ++

The Uhm Not So Good

Finishings could be better (Grills, Sliding Doors) —
No Basement carparks –
Minimal Facilities (Swimming pool and a probable dingy gym) —

More Information?

If you’re not an agent and would like to view the development, feel free to buzz/text me at +6591253045, or if you are a fellow colleague, feel free to call me as well to arrange for viewing to some of my 2 and 3 bedroom apartments I have on my listings here in St Patrick’s Loft.

Will be updating here with photos of one of the units that I’m marketing to let everyone have a general feel of the apartment.