Orchard Residences - $5,600 PSF For Penthouse New High In Property Price Here

Source : The Business Times, October 12, 2007

53rd-storey Orchard Residences unit fetches over $28m

A NEW record property price for Singapore has been set, even though fewer sales are being made in high-end residential projects since the time of the US sub-prime mortgage crisis.

Orchard Residences: About 73 per cent of the total 175 units in the condo are said to have been sold

CapitaLand and Sun Hung Kai Properties are said to have sold earlier this week a penthouse on the 53rd storey of The Orchard Residences for about $5,600 per square foot (psf), or over $28 million. This surpasses the previous benchmark of $5,500 psf set in August when a 54th storey penthouse fetched about $27.8 million.

This means that all four penthouses in the 99-year leasehold development are now sold.

The developers are said to have sold about 73 per cent of the total 175 units in the condo. The buyer of the final penthouse sold this week is believed to be a foreigner. The 5,048 sq ft unit has five bedrooms, a study and a family room.

A stone's throw away, Wheelock Properties (Singapore) is said to have sold more than 30 apartments at its freehold Scotts Square since the official launch of the project on Sept 28.

The developer is said to have largely maintained its average price at around the $4,000 psf mark from its preview in July, when it sold about half of the project's 338 apartments.

Over in Sentosa Cove, Ho Bee has sold 38 of the 50 units it has released so far in its 91-unit condo, Turquoise, since late September. The units have been sold at prices ranging from nearly $2,500 psf to $2,770 psf.

The average price is about $2,600 psf, Ho Bee Investment executive director Ong Chong Hua said when contacted by BT yesterday. Buyers of the 38 units - which include four penthouses - were an equal mix of foreigners and Singaporeans, he said.

Apartments at the 99-year leasehold Turquoise typically cost around $5.3 million for a three-bedroom unit, $6.4 million for a four-bedder and around $9.3 million for a penthouse.

DTZ Debenham Tie Leung executive director (residential) Margaret Thean acknowledges that buyers, both local and foreign, have been more cautious after the stock market setback at the time of the US sub-prime mortgage crisis.

'But we still see activity going on. For the high-end projects, we've not noticed any withdrawal of liquidity. The only difference is that prospective buyers are more cautious, doing more calculations and being more selective in their choice of investment before making a commitment,' she said.

Market watchers also say that the recovery in the stock market in recent weeks has led to a return of confidence in the property market, as seen in a pick-up in subsales activity lately.

Over in the Seletar Hills area, Tong Eng Brothers unit Fairview Developments is launching two landed developments. One is the freehold 8 @ Stratton, comprising eight cluster semi-detached houses priced at $1.98 million to $2.2 million.

The houses have built-up areas ranging from 3,595 sq ft to 3,649 sq ft and strata areas of 4,930 sq ft to 5,145 sq ft. The second project is Nim Green, a collection of just three terrace houses - a corner unit with an asking price of $2.5 million and two intermediate units with a price tag of about $2 million.

Q3 Investment Property Sales Rise To S$16b; Office Sector Performs Best

Source : Channel NewsAsia, 11 October 2007

The property market saw a near-doubling of investment transactions in the third quarter to nearly S$16 billion.

CB Richard Ellis said the private sector accounted for two-thirds, or over S$10 billion, of the sales. The remaining transactions came from government land sales.

Investment sales for the nine months to September amounted to S$41 billion, some 34 per cent higher than the same period last year.

On a sectoral basis, the office sector was the star performer, accounting for 44 per cent of sales, or S$6.8 billion.

The residential sector contributed S$6 billion or 37 per cent of sales, due to the active collective sales market.

The industrial sector, which was largely driven by REIT-related purchases, accounted for 3.7 per cent of sales.

Looking ahead, CBRE expects investment sales for the full year to come in between S$45 billion and S$50 billion, compared to S$35 billion last year. - CNA/ac

High Court Gives Horizon Sale Fresh Lease Of Life

Source : The Business Times, October 12, 2007

STB dismissal overturned, en bloc law clarified, but sale still faces uncertainties

The High Court yesterday overturned the Strata Titles Board's (STB) decision in August to dismiss Horizon Towers' collective-sale application - and sent the matter back to the board for its continued deliberation.

This means that, barring any objection, Horizon Towers' application will go back to the STB and will be heard from the point it was dismissed - giving the en bloc sale a chance to succeed.

What could block its path is an appeal filed by any of the minority owners against the High Court's decision yesterday. The three groups of minority owners, however, told BT yesterday that they have yet to decide if they will file an appeal.

'It's something that we'll need to sit down and discuss - we'll need to read through the judgment carefully and weigh all our considerations before deciding how to proceed,' said S K Phang, who represents one of the minorities.

The judgment was also significant for clarifying several aspects of the collective sales law, several players noted.

Justice Choo Han Teck, in his decision to overturn the board's dismissal in August, ruled that the three missing pages in Horizon's application to the STB did not constitute an 'incurable defect' as the board had alleged - as it wasn't a substantial omission that prejudiced the minority owners.

He noted that the STB was notified of the missing pages, and provided with them during the hearing.

'If (the error or omission) does not (cause prejudice to the minority), the board is, in my opinion, empowered to allow an amendment or correction so that the record is clear. If one takes the view that the board has no power to allow an amendment even for a typographical error, then an entire en bloc sale could be stalled by a comma in the wrong place. The law should not have such drastic consequences when there was otherwise no prejudice,' Justice Choo said.

He also emphasised the purposive nature of the law and the need to apply it consistently. 'Fairness requires that the law is applied consistently to everyone in similar circumstances. If the majority succeeds, it is because it is right, not because it is the majority. Likewise, if the minority succeeds, it is because it is right and not because it receives favours granted only to the underdog,' Justice Choo ruled.

His judgment found favour with all parties involved, even the minority owners - who welcomed the clarity to en bloc rules it afforded. 'It clarifies a lot of matters for us practitioners in the en bloc arena and is an authoritative ruling that has closed some gaps in interpretation right now,' Dr Phang said.

Senior Counsel K Shanmugam of Allen & Gledhill, who represents the buyers - Hotel Properties Ltd (HPL) and its partners - also welcomed its guidance: 'We now have a better idea of how the statutes should be interpreted and the guidance would be useful going forward.'

He added that the result was 'exactly the result we wanted, what we argued for' and it was a result which he knew a number of the majority sellers wanted - as they too want the sale to go through.

Lim Seng Hoo, current chairman of the Horizon Towers sales committee, said: 'We are very grateful for the result. It shows we have not breached in the first place the contract with HPL (and its partners) as they have alleged.'

HPL and its partners have sued the majority owners for failing to do everything in their power to submit a proper application to STB. That suit has been temporarily stayed, but HPL is likely to still consider suing the owners for up to $1 billion in damages if the en bloc sale still falls through.

There are still hurdles to overcome. Even if the minorities decide not to appeal, there's no guarantee the en bloc sale will go through. The STB's calendar is believed to be bursting with appointments from other collective-sale applications to be heard.

The board was unable to revert to BT's queries yesterday as to whether it would have a slot for Horizon Towers, but lawyers said it is likely that Horizon Towers' application would be given priority, given its Dec 11 deal completion deadline.

But that's not the only possible stumbling block: the STB will need to pick up from where it left off, that is continue hearing the minority owners' objections to the sale and consider the merits of the sale, before deciding whether to grant the order needed for the completion of the collective sale.

And, as Dr Phang told BT, the minorities still have many objections to the en bloc sale which have not yet been heard. 'We were only in the midst of questioning our first witness when the STB dismissed the entire application; when we go back to the board, it will have to hear our other objections. We have quite a few arrows in our quiver which we still haven't shot,' he said.

Philip Fong of Harry Elias partnership, who also represents several minority owners, added: 'Our contention has been that this collective sale was done in bad faith - and that will remain our contention as we appear before the STB.'

The STB would, however, now need to view the minorities' objections to the sale in the light of the judgment handed down by the High Court yesterday.

Horizon Towers' Majority Owners Win Appeal Against Strata Titles Board

Source : Channel NewsAsia, 11 October 2007

The majority owners of Horizon Towers scored a legal victory on Thursday.

They have won their appeal against the Strata Titles Board (STB).

On August 3, the STB had dismissed their en-bloc sale application because of a technical error. But the High Court on Thursday ruled that the STB must look at the case again.

The High Court judge ruled that the STB had no grounds to dismiss the sale application by the sellers of Horizon Towers.

Related Video Link - http://tinyurl.com/2t3czm
Horizon Towers' majority owners win appeal against Strata Titles Board

Justice Choo Han Teck said there was no reason for the STB to deny amendment of a technical error. This was because that error did not affect the minority owners' decision not to sell.

Justice Choo also questioned if the three missing pages from the original application constituted a "defect" in the first place. He added that the STB has a "duty" to hear the sale application based on its merits.

With the appeal being successful, the case has now been returned to the STB. This means that minority owners now have a chance to lay out their objections to the sale.

But consenting owners have until 11 December to obtain a sale order from the STB. This is the deadline under their current contract with buyers Hotel Properties Limited (HPL).

HPL's lawyer K Shanmugam said his client may apply to be included as a party in the STB hearing.

As for the sellers, they said that contrary to HPL's allegations, the Court's verdict showed that they had not breached their contract with HPL.

Lim Seng Hoo, Chairman, Horizon Towers Sales Committee, said: "Now we will go back to STB as soon as we can; we will fully honour the decision of the STB. Whatever they decide, we will follow."

But before that happens, lawyers for the minority owners reminded all parties that their applications have yet to be factored in.

Dr Phang Sin Kat, lawyer for minority owners, said: "We haven't exhausted all our grounds of objections yet; in fact we were barely into the first ground. We'll shoot the other arrows, as it were."

And where those arrows land will be decided when the hearing at STB continues at a date to be fixed. - CNA/ms

1,600 Apply For 489 HDB Flats Within Hours Of Launch

Source : The Straits Times, Oct 11, 2007

THE Housing Board has been flooded with applications for 489 flats in the north and west zones which went on sale yesterday.

In a testament to an increasing demand for homes, more than 1,600 applications were submitted for the flats by 5pm yesterday - just hours after they went on sale.

The figures were disclosed on HDB's website (www.hdb.gov.sg) which offers regular updates.

The sale is under an HDB scheme to offer flats that are four rooms and bigger for sale every two months. The units include new, unsold and repurchased units as well as showflats.

The latest launch is the fourth one this year, and offers 129 four-room, 138 five-room, and 222 executive flats. They are located in eight towns, including Bukit Batok, Bukit Panjang, Choa Chu Kang, Jurong East, Sembawang and Yishun.

The prices of the flats range from a low of $118,000 for a four-room flat in Yishun or Jurong East, to a maximum of $362,000 for an executive flat in Sembawang, and $440,000 for the same in Jurong East.

Interested buyers can submit their applications online before next Tuesday.

They can also view sample units - located in Sembawang and Jurong West - daily until Oct 23, after which they will be open only on weekends until Dec 9.

Four of these are furnished showflats which are available for sale at a premium. The HDB said more than 70 such showflats have been sold so far.

This latest sale comes after a recent announcement by the HDB earlier this month that it will offer 6,000 new flats over the next six months.

This followed government flash estimates for the three months ended September showing a surge in prices for mass-market homes, which are finally catching up with that of luxury homes.