atans1

Property: Freehold rules OK

In Economy, Property on 09/10/2017 at 11:11 am

In Property dev, S’pore style,I reported that CityDev build Amber Park 34 yrs ago and sold each unit at about S$360,000. Now they are buying back at more than S$4.3m per unit, spending S$906.7m in total. Owners are expected to receive between S$4.3 million and S$8.3 million in gross sale proceeds.

If u are wondering why CityDev is prepared to pay so much, it’s because the land it sold and bot back is freehold. No need to top up to renew lease because there’s no lease to renew. Btw, a retired social activist (honourably discharged) must be feeling good. Ten years ago he bot ia newly developed freehold condominium apartment in the Joo Chiat area . He was saying that the market priced the project at a slight premium to a similar 99-yr leasehold project.

Bet u CityDev will now sell the flats on a 99-year lease, keeping the freehold for itself, juz like the govt aka HDB flats.

As to the selling price, a fat cat reader says, “With an average 1000sf unit, that’s $2.6+M”. I’d round that up to S$3m a flat.

Given that CityDev is now so bullish about the property market, what will the cybernuts say now?

When I wrote this Property: TRE nuts will be getting more frus, chief TRE cybernut, Oxygen, went madder with rage, saying I was peddling untruths about a recovering property market.


Oxygen is so nutty that he

— donated $10,000 to TRE before GE 2015;

— despite living in Oz and KPKBing about wanting his CPF money, he still keeps (or cannot give up?) his S’pore citizenship and so still cannot withdraw his CPF money; and

— dances on graves of dead children, sneering at their grieving parents TRE grave dancer doesn’t deny grave dancing.


Now that City Dev has shown its faith in the S’pore property market, Oxygen must be banging his balls even harder. And so will his fellow TRE cybernuts like Philip Ang and Ng Cock Lim. Their predictions of a collapse in S’pore property prices remain dreams like their predictions of big losses in 2015 for the PAP.

Worse news for them: this year’s GDP growth is looking good at a forecast of 2.5%. Last yr’s was 2%.

Coming back to property, when u see the greedy residents of Laguna Park and Pine Grove put their flats up for en bloc sales, its peak market time again: Even greedier en-blocers.

That was written in 2011, when they were looking at each enbloc sale grossing S$1.4bn.

They should now remember this: JLL’s Tan advises owners of private residential projects on leasehold sites to be aware that, as the lease gets shorter, the differential premium that developers have to pay gets higher. “This will eat into their sale price,” he says. Old private flats’ value can also fall off a cliff

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