En Bloc-Complete the list

[capland]

Published August 2, 2007

En bloc sales have peaked, says CapitaLand

Property owners must be realistic about what is marketable: CEO


(SINGAPORE) CapitaLand Ltd, the biggest buyer of enbloc projects in Singapore in the past year, said that such property sales have 'peaked', as owners ask for record prices for their homes.

The market for existing buildings has hit a high 'in terms of pricing', said Liew Mun Leong, chief executive officer of CapitaLand. The developer, South-east Asia's largest, had 18.3 per cent share of the $13.49 billion of such collective sales from July 2006 to June 2007, according to data from real estate consultant Knight Frank.

A frenzy of redevelopment of prime condos around the main Orchard Road shopping district and the neighbouring prime residential area of Holland Road prompted the government to raise the development charge, which must be paid for enhancing a site's use.

'The problem now is that en bloc owners' expectations are raising the hurdles,' Mr Liew, 61, said in an interview on Tuesday. 'Going forward, en bloc owners must be realistic about what is marketable.'

Developers were buying older homes in the city's prime areas to redevelop and resell at prices that were more than four times higher as demand for luxury apartments pushed some residential units to record prices.

A record of 70 older apartment developments were sold last year for $8.1 billion, according to data from Knight Frank. In the first half of this year, there were 48 transactions amounting to $9.48 billion.

'En bloc sales are about derived demand,' said Nicholas Mak, Knight Frank's research director. 'As long as high-end property demand continues, the en bloc sales would continue.' CapitaLand in June said that it's buying Farrer Court, an existing apartment complex in the Holland Road area, which is a five-minute drive from the shopping district, for a record $1.3 billion.

SC Global Developments, a builder of luxury homes, said earlier in June that it had agreed to buy apartments next to the shopping district for $262 million, or $2,338 a square foot, the highest price for an existing complex.

'There will come a time when the market cannot bear' the prices, CapitaLand's Mr Liew said.

SC Global, which paid $1,064 a square foot for a downtown apartment complex last year, sold new homes on the same site in June for as much as $5,100 a square foot, a record.

CapitaLand's shares fell 15 cents, or 2 per cent, to $7.35 yesterday. The stock has risen 19 per cent this year, compared with the 15 per cent gain in the ST Index.

Some apartment developments in the city's downtown districts are having a harder time with en bloc sales. Pacific Mansions, a 10-minute walk from the shopping district, had an asking price of $1.18 billion, or $2,400 a square foot, its marketing agent Savills Singapore said in June.

The Straits Times reported on Tuesday that the owners didn't get bids that met their asking price and are negotiating with possible buyers to achieve their reserve or minimum price, which is 10 to 20 per cent lower than the asking price.

'We are seeing vendors adapting to be more accommodating,' said Donald Han, managing director of Cushman & Wakefield.

'Instead of expecting record price after record price, there is some price stabilisation, which will be good for the market.' - Bloomberg

Comments anyone???

[enblocked]

1. SC Global Developments, a builder of luxury homes, said earlier in June that it had agreed to buy apartments next to the shopping district for $262 million, or $2,338 a square foot, the highest price for an existing complex.

'There will come a time when the market cannot bear' the prices, CapitaLand's Mr Liew said.

SC Global, which paid $1,064 a square foot for a downtown apartment complex last year, sold new homes on the same site in June for as much as $5,100 a square foot, a record.

CapitaLand's shares fell 15 cents, or 2 per cent, to $7.35 yesterday. The stock has risen 19 per cent this year, compared with the 15 per cent gain in the ST Index.

Some apartment developments in the city's downtown districts are having a harder time with en bloc sales. Pacific Mansions, a 10-minute walk from the shopping district, had an asking price of $1.18 billion, or $2,400 a square foot, its marketing agent Savills Singapore said in June.

why is this part of the article so disjointed?

anyway, maybe Mr Liew wants to buy them cheap, so he is talking down the enbloc mkt?

[exactly]

now they are selling latitude (river valley) from 2,514 to above 3,000 psf

[RRRRR]

The enblocs will carry on in land scarce Singapore. The momentum has been set. Prices will be in the manageable and sensible high range. Its a question of supply and demand and AFFORDABILITY. There may be some lows for a short while and then an upswing again. Just watch. The big players are up to it and they know, or else they would not have pump in their moneies. Leave them alone, they hv done their homework. On the other hand, it is the owners that shud be careful and get expert advice.

[bad luck]

about $780k
verbal only

thanks. that's not too bad...

mkt is pretty sideways now, i feel. in June and July there was a big spike which the powers that be obviously noted as well. that edge is slightly off now, and i think the govt will from time to time talk the mkt out of such spike.

i think u might need to hold a while to catch the next wave.

To enblocked

Thanks. But worried thinks might get worse.
And if prices fall, the investments become liabilities and there will be negative equity.
Hope that prices will move up again swiftly, like this month!

[Anxious]

countdown 9 more days
LP, BP go go go

Big yellow banners displayed all over laguna park estate informing the owners of the AGM n AOGM to be held on 12 August.
Good publicity, excellent job LMPC. Actions speak louder than words. LP on track in their enbloc.

[Potential]

Add laguna park to your list.

[Dr. Phil]

Excuse me but what event are you counting down to?

Please remind me what is LMPC? Is this an elected body and therefore representative of, and empowered by, the majority of residents?

Or is it a few local stooges, bank-rolled by an aspiring Reality Agent (yes Reality) who sees, if there should be a willing buyer (as yet not even an offer,  not a sniff of interest) sidewalks paved with gold.

Yawn.

[Laguna]

countdown 9 more days
LP, BP go go go

Big yellow banners displayed all over laguna park estate informing the owners of the AGM n AOGM to be held on 12 August.
Good publicity, excellent job LMPC. Actions speak louder than words. LP on track in their enbloc.

Must work hard to gain the 80% and a better price for all and with a all win for all....hurray...

BTW : How many units do u have?

[loser]

a lot of anti-blocker losers around here talking down enbloc...they must have miss the boats badly...imagine sold out LP or LV at 450k...pitiful and painful man

[Laguna]

a lot of anti-blocker losers around here talking down enbloc...they must have miss the boats badly...imagine sold out LP or LV at 450k...pitiful and painful man

What to do...life may not be fair to all at all time...some time u are up, and times u could be down....just have to move on for better tomorrow

[Anxious]

countdown 9 more days
LP, BP go go go

Big yellow banners displayed all over laguna park estate informing the owners of the AGM n AOGM to be held on 12 August.
Good publicity, excellent job LMPC. Actions speak louder than words. LP on track in their enbloc.

Must work hard to gain the 80% and a better price for all and with a all win for all....hurray...

BTW : How many units do u have?

A realistic price. I have 1 unit
Cash in at benchmark Farrer Court will be enough for my retirement.

[TO DR PHIL]

Excuse me but what event are you counting down to?

Please remind me what is LMPC? Is this an elected body and therefore representative of, and empowered by, the majority of residents?

Or is it a few local stooges, bank-rolled by an aspiring Reality Agent (yes Reality) who sees, if there should be a willing buyer (as yet not even an offer,  not a sniff of interest) sidewalks paved with gold.

Yawn.

Dr Phil Dr Phil.....dunno where u get yr info from....."not a sniff of interest"......u are very wrong here.....there were interested parties .....very reliable sources...........interesting offers.......just wait..........and of course the EOGM on 12 Aug shall decide who forms the sales committee.

[Boring]

This thread was started for renters, with the purpose of being aware of potential en-bloc when negotiating leases.

It now resembles nothing of the sort, and the amount of borish pind*cks comparing "ficticious" holdings beggars belief. Isn't there a local forum where you could do this?

We expats don't care. You're boring.

[Peasant]

Ah so. Its not until 12 August that a sales committee will be elected; if then. Perhaps insufficient interest. But as the doc says you dont even know whether sufficient interest exists.

Agents must realise that for those of us who chose not to buy at 450k, we most certainly dont plan on buying at +1 million.
We hold neither positive equity nor negative equity.
We have lost nothing except a diminishing opportunity to buy low and sell high; this opportunity was only fuelled by the whisper of an en bloc sale which, like the lottery, comes to so few.