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Singapore Property Kaki

A place for sharing property, investments and financial management ideas among kakis

Enbloc

Collective Sale Activities Hint At A Shift in Landbanking Strategy

The collective sale market in Singapore continues to perform strongly. Property developers snatched up 26 sites worth S$8.5 bil for the year to date. This has already exceeded the collective sale transactions for the entire 2017. There is one noticeable fundamental shift in developers’ land banking strategy. There is now a shift of preference away from suburban sites towards freehold sites in prime districts. Redevelopment of all the collective sale […]

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Do you feel the enbloc heat?

The enbloc craze just keeps getting crazier. There were many significant developments in collective sale market over the past week. The Next Enbloc Blockbuster – Mandarin Gardens First, we have a potential blockbuster collective sale exercise coming up! Mandarin Gardens is one step closer to being put up for collective sale. A mind-blowing reserve price of S$2.45 billion has been set for Mandarin Gardens. This price has not even taken […]

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So I was wrong

I have to admit that I am wrong this time round. This morning, property giant Capitaland announced that it has acquired the iconic Pearl Bank Apartments in Outram Park area for S$728 mil, at the reserve price of the sellers. The site has a land area of 82,376 sq ft and plot ratio of 7.45, translating to a permissible GFA of approximately 613,701 sq ft. Capitaland will pay an additional […]

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Why Frasers Property is raising prices at Seaside Residences

Just two weeks ago, I blogged about why Seaside Residences may sell like hotcakes this year. Today, I heard that Seaside Residences has just raised its selling prices by 1% on average. Coincidentally, it was also reported today that the nearby Fernwood Towers is close to launching an enbloc sale. Is it a coincident or a premeditated move by Frasers Property to raise prices at Seaside Residences? Firstly, let us […]

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MAS puts more scrutiny on bank loans for property development. Is the party ending soon?

Just a week ago, SPK mentioned 2 possible ‘Black Swan’ events that might hinder or derail the property market recovery – 1) Tightening measures from the government and 2) More stringent loan approval criteria from banks. Extract from blog post – “Thumbs up or down for property market in 2018?” Coincidentally, it was reported in The Business Times this week that the Monetary Authority of Singapore is putting more scrutiny […]

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Fourth time unlucky for Pearl Bank owners?

Looks like it’s a fourth time unlucky for Pearl Bank owners. EdgeProp reported that public tender for Pearl Bank Apartments closed on 19th December and the collective sale committee had instructed marketing agent – Colliers International to enter into private treaty negotiations with interested parties. Owners were asking for S$728 mil, translating to around S$S$1,505 psf ppr after adding in a lease upgrading premium of S$195 mil. According to the […]

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Jackpot day for Vista Park owners

Yes, Vista Park owners have hit their jackpot this time round. Enbloc-King Oxley Group announced last night that owners of Vista Park had accepted its tender offer of S$418 mil to acquire all the units for redevelopment. Its tender price is almost 20% above the reserve price of the owners. After factoring in the S$72 mil lease upgrade premium, the offer price from Oxley translates to a rate of S$1,096 […]

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Going once…going twice…Crystal Tower sold!

Yes, it is a 3rd time lucky for Crystal Tower owners. It was reported on the Business Times that Allgreen Properties had emerged as the winning bidder to acquire Crystal Tower, in a fiercely contested tender that attracted a total of 12 bids. Allgreen Properties offered S$180.65 mil for the freehold site, reflecting a land rate of S$1,840 psf ppr. Allgreen’s offer price is a huge premium of 31% above […]

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Are the Developers ‘in two main camps’ or ‘in different factions within one single camp’?

It is always challenging to come out with a research that relies heavily on assumptions. Such reports can open up many questions on the underlying assumptions and data that support such assumptions.     SPK reads the article published in the Business Times today, titled “Developers in two main camps over how much to bid for land”, with much interest. Without the benefit of reading the full report from JLL, […]

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Jalan Besar Plaza Collective Sales – What went wrong?

It was probably 3rd time unlucky for the owners of Jalan Besar Plaza. The Business Times reported that no bids were received for the property at the close of the enbloc tender on 10th November 2017. However, there was an expression of interest from a developer to purchase the property. An attempt that is doomed to fail from the start? It is probably no rocket science to guess why there […]

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