New Medisave scheme suggests we can move oversea for better living?

Since Singapore CPF Medisave will soon be allowed for hospitalisation overseas and palliative home care, as reported in CNA. Does it means that is it easier for Singaporean to move to oversea for a lower cost of living?

Leisure Farm Malaysia looks at Singaporean as target, they are setting up a new luxury housing projects just next to the Tuas second link.

Lets look at some of the photos, landed property with the water and tree around you.

So if the Medisave allows Singaporeans to cover non-urgent hospitalisation in approved hospitals overseas, and for palliative care at home. Why not move to neighbouring country enjoying life when we get old?

But anyway, this housing project appears to be quite attractive. Not sure how is the pricing. But if you are driving and work at west, you may seriously consider this alternative.

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CDL sold 60 units at The Arte

City Developments Ltd (CDL) sold about 60 apartments at its 336-unit project The Arte at Thomson last weekend. The developer said yesterday that the average selling price was $880 per sq foot (psf). It released 100 units during the 'private preview' and will release more this weekend. The freehold project comprises two-, three- and four-bedroom apartments, as well as penthouses. Most of the units sold last weekend were smaller two- and three-bedders.

Unlike other recently launched projects, units at The Arte are large, which means buyers have to fork out more. For example, two-bedders are 1,055 sq ft and three-bedders range from 1,399 sq ft to 1,625 sq ft. Assuming $880 psf for a two-bedder, the price of the smallest unit would be $928,400.

But according to CDL general manager Chia Ngiang Hong: 'The Arte offers superb value for a prime freehold property in the Thomson area. Buyers get a luxurious condo without paying a premium price.' CDL is offering an interest absorption scheme.

Analysts expect more projects to be launched in coming weeks as developers try to capitalise on a recent surge in buying interest. They sold 1,323 new private homes last month - eleven times more than in January. Numbers are expected to be strong for March as well, on the back of sales at The Arte, and at UOL Group and Kheng Leong's Simei condominium Double Bay Residences, where more than 200 units were sold this month.

Amid the buying surge, BT understands that Far East Organization is set to launch its mass market project Mi Casa. The 457-unit development near Choa Chu Kang MRT is expected to be popular with HDB upgraders in neighbouring estates. Separately, Tee International and Hup Soon Global said that they are teaming up with a Bangkok-based company for the Singapore launch of a freehold luxury condominium located in the Thai capital. The Surawong will be launched this weekend at the Grand Hyatt Hotel here.


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For first timer: What do to do on the property launch?

For new or first time purchasers, you may like to know how the things work on the first day of property launch. The details is shown below:

1) Purchasers note down the units of his/her desired choice, we advise to chose 2 to 3 units and prioritise your main choice. But is good to have a few backup choices in case being sold out. There is a case where someone mass book the whole block.

2) The property agent will collect 1 cheque from you : 1)Cheque payable to project account, 2) crossed and signed with the 3) amount leave blank. Alternatively, if you have an agent, you can ask him/her to issue the check on your behalf. The check just to show your sincerity to join in the property launch.

3) Do up document signing for the booking.

4) On the day itself or earlier when the price list is out, the agent will call you to let you know the price of the unit you have chosen.

5) We will also advise you from time to time whether any purchaser has place cheque on the unit of your choice. If yes, you may like to decide whether to change your priority.

6) If you feel the given price is not attractive nor any other issues and wish to withdraw the purchase, instruct the property agent to withdraw. Your cheque is return to you on the same day. (No cost and No penalty)

7) If you are glad with the Preview Price, on verbal, you will instruct property agent to hand in the cheque for booking. They will fill in the amount on your cheque based on 5% of the quantum price of the unit. Option To Purchase from developer­ will generate out for your signing.

But of course, for you to join the preview, you must always get yourself an agent, if not, you won't be able to attend the preview. So how to get an agent? Well, you can know the agent from any other projects, and let them to inform you on the future launch. Or you can register yourself at those agent websites, like those shown in my link or those property websites in my previous posts.


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New Condo Project by CDL: The ARTE @ Thomson

New Launch Property at Thomson - The ARTE - prestigious project by City Development Limited. Twin Iconic Tower soaring 36 storey high along Thomson Road with 336 spacious units of apartments. It has full Condominium facilities and consist of 2, 3, 4 Bedrooms Apartments, Sky Suites and Sky Villas.

2 Bedrooms 1,055sqft - (54 units)
3 Bedrooms 1,399sqft to 1,625sqft - (164 units)
4 Bedrooms 1,873sqft - (100 units)
Sky Suites 2,896sqft - (8 units)
Sky Villas 2,616sqft to 4,015sqft - (10 units)

Highlights:
* Designed by award winning architect firm, SCDA Architect. Portfolio include The Ladyhill, Lincoln Modern etc
* Constructed by world famous renown builder Dragages (Originated from France)
* Panoramic City SkyLine View, MacRitchie Reservoir & Singapore Polo Club.
* Within 1km from CHIJ Toa Payoh.
* Close proximity to SJI Institute, Catholic JC, Anglo Chinese School, Curtin University, Queens Margaret University Asia Campus.
* 10 mins walk to Toa Payoh MRT
* Dual exit to Thomson Road and Balestier Road
* Easy access to Toa Payoh, Novena MRT, Novena Square, United Square.
* Minutes Drive to Orchard / CBD
* City Development is renowned for their Quality Finishes
* Good rental opportunities and capital appreciation.

Call 6100 8090 for enquiries or register at http://www.propertylaunch.sg/ for the preview. Or download the bourcher


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February Home Sales Hit 18-Month High

February home sales hit an 18-month high of more than 1,300 units, with March looking like it could be another good month as 1-bedroom units in a couple of newly launched projects over the weekend flew off the shelves. Nonetheless, we continue to remain Cautious on the property developers given that much of this demand seems to be of a pent-up nature and a flight towards property investment (for rental) as smaller units enter the spotlight. Even as numbers improve, we are mindful that the high-end market continues to remain dead, with another month of zero sales exceeding S$2,000 psf in the primary market; and the macro environment continues to remain challenging, giving the physical market little evidence of a catalyst.

More Than 1,300 Units Sold. 1,323 private residential units were sold in February, which is the highest monthly number since August 2007, an 18-month high. It was also a jump of more than 10 times compared to the 107 units sold in January. However, sales from three projects -- F&N's The Caspian (median price S$603 psf; 517 units sold out of 600 launched), Alexis (median price S$1,083 psf; all 293 units sold) and Guocoland's soon-to-TOP The Quartz (median price S$591 psf; selling another 168 units for a total of 611 units sold altogether), contributed c.74% of the total sales in February. Of the three, the latter was previously launched a couple of years ago, and the remaining units were sold at a c.10% discount to initial units sold. As was the case in January, not a single unit in the high-end segment (>S$2,000 psf) was transacted in the primary market, as prospective buyers continued to shun high-end properties.
Notably, the number of units sold in February exceeded the number of units launched by developers. Even if the 168 units at The Quartz (previously launched) are netted off, the take-up rate is still better than the launch rate. We believe that this is reflective of some sense of excitement returning to the market, due largely in part to the newsflow related to The Caspian and Alexis.

Small Is Beautiful. As we had mentioned in earlier notes, this current pent-up demand in the market is premised on essentially two bases: discounting by developers on a psf basis (in the case of The Caspian and The Quartz) or small absolute price tags for small units. For instance, our on-ground checks this weekend continued to indicate that demand for smaller units is strong, but prices (and interest) remain firmly entrenched in the mass-market to lower-mid segment.

Domus: This 104-unit development at Irrawaddy Road (near Novena MRT) comprises about a-quarter of 1-bedroom units with the remainder being 2- and 3-bedroom units. We understand that the 1-bedroom units (just under 500 sf) were the most popular - with all now fully sold at an ASP of around S$1,000 psf (or just around S$500K). According to our sources, most of the buyers of the 1-bedroom units were investors (ie looking at rental return as opposed to speculators looking for a quick flip) rather than owner-occupiers. The larger units were selling at around S$900 psf. The remaining 1-bedroom units will be launched this week during the official launch, though the price is likely to increase to around S$600K, as these are higher-floor units. At S$1,000 psf, this would be a c.30% decline from peak values in the area.

Kembangan Suites: Over at Kembangan MRT station, all 60 units of freehold Kembangan Suites were sold out within half a day (on the first day of preview). All the units here are small - from 344 sf to 581 sf - with the smallest units going for around S$300K (or around S$900 psf). At S$900 psf, this is about 15% higher than what nearby Astoria Park (99-year lease, TOP in 1995) was fetching at the recent peak.

We believe that this current 'downsizing' phenomenon - the interest in small units - is keeping ASPs steady to a certain extent, given that smaller units tend to fetch generally higher ASPs compared to larger units.

Maintain Cautious View. We advise investors to be cautious on the sector. Even as the primary market picks up from January numbers, recent sales volume have not been accompanied by strong catalysts or evidence of a turning point, so we do not believe such strong sales can be sustained. We expect developers to trade sideways and potentially challenge October lows; and would only recommend accumulating property equities when the macro environment shows signs of recovery. Small-caps with significant exposure to the high-end market should be avoided, with Fully Valued calls on SC Global, Ho Bee and Wing Tai. We continue to favour companies with strong balance sheets, with our Buy calls on City Dev (TP: $5.62) and Wheelock Properties (TP: $1.06).


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Mass Market set to outperform in Property Market

Feb 09 sales to hit 1,000 units. Early next week, URA will release the monthly private residential figures for Feb 09. We estimate transacted quantum to come in at ~1,000 units, representing a substantial improvement from the 107 units sold in Jan 09. These should come largely from mass market projects such as The Caspian, The Alexis and The Quartz. We recall Aug 07 was the last time the 1,000 mark was breached. We reckon a similar number of units were launched in Jan 09, with projects from the mass-mid market forming the bulk.

Prices down in prime region but flat within mass-mid market. With pricing now top of developers’ agenda, we are also seeing a gradual yet succinct narrowing of price disparity between homes within the mass and mid market segments. Despite the heavy volume here, we do not expect major shifts in average prices, possibly flat at S$700 and S$800 psf for mass and mid market respectively. As for the prime region, we project prices have furthered softened (-5% MoM to S$1,500 psf) due to paucity of transactions as buyers continue to steer clear of projects fetching ≥ S$1m.

Big guys join the party, but how sustainable? Since 3Q08, we believe most of the mass market projects were launched by private and niche developers. However, we note the fine take-up for Caspian and Alexis have incentivised the more established players to begin riding the (low lump sum) wave, i.e. UOL (Double Bay Residences), Wing Tai (Ascentia Sky) and City Developments (Livia and The Arte). Further, we are seeing more developers tweaking their building plans to better cater to the present preference of buyers. While we are impressed by developers’ adept ability to adjust quickly to the vagaries of buyers’ demands, we remain detractors of the current mass market frenzy. We reiterate our stance that demand here would gradually taper off with the worsening macroeconomic outlook, in addition to an expected softening in HDB resale prices.

More price corrections and incentives ahead. We note the increasing prevalence of a surrogate Deferred Payment Scheme (in the form of Interest Absorption Scheme) in most newly launched projects (albeit at a slight 3 – 5% premium), and also acknowledge its importance in driving sales. Some buyers continued to favor the rudimentary Progressive Recognition Scheme, which we believe is a combination of two factors – low interest rates and healthy cash position. Looking ahead, we predict more incentives would be put forward by developers in order to prop up demand, e.g. heftier discounts, renovation/furniture/fittings concessions, price appreciation guarantees and rental guarantees at a certain yield (most recent being Far East’s Vida and Soilbuild’s The Mezzo).

From our view, the property downcycle looks set to continue despite the mass market’s outperformance and hints of latent demand (good turnout at auction sales and throngs of crowds at mass-mid market show-flats).


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Sales for Double Bay Residences Weaker Than Expected + Projects around Double Bay

It was reported that UOL/Kheng Leong sold about 70 units of Double Bay Residences at Simei over the weekend. Considering that it had sold about 80 units on the first day of the project's soft launch (prior to the weekend), we view this as a weak result. It is also below the company's expectations of 200 units by the end of opening weekend.

This brings to total 150 units in the 646-unit project that have been sold, though only about 250 units were launched in the first phase of sales. Our ground checks also indicate that the $600-650 psf price that was advertised for the project was mainly restricted to larger, lower-floor units or penthouse units. Most units were going from $670 psf upwards, with a one-bedroom unit even going as high as $800 psf. We estimate that the breakeven cost for this 99-year leasehold project is about $600 psf, translating to a margin of around 10-15% for UOL, which owns a 60% stake in the project.

The weaker than expected sales result is probably due to the fact that the project is not as attractively priced as, for instance, what F&N's The Caspian was selling at (starting at $580 psf at soft launch day, up to around $620 psf over opening weekend), considering the fact that both projects are leasehold, close to MRT stations and about the same number of MRT stations away from the city.

Also, there are some other projects near Double Bay Residences which might have given potential buyers more options and consequently, delay their decision-making process. We understand that City Dev's Livia (at Pasir Ris, 2 MRT stations away) is going for around $620 psf, while F&N's Waterfront Waves (at Bedok Reservoir, closer to the city though not next to any MRT station) is asking for around $620 psf (for pool-facing units) and around $700 psf (for lake-facing units). Both these projects are also 99-year leasehold projects. Sim Lian will also be launching a DBSS project near Double Bay Residences sometime this year.


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New Condo - Double Bay 2 mins from Simei MRT

2 minutes away from Simei MRT and East Point Mall. It is right next to the forthcoming business and academic hub at Changi Business Park. Close to many prestigious schools and Singapore's upcoming 4th university. There will be a selection of luxurious 1-bedroom studios, 2-, 3-, and 4-bedroom apartments and lavish penthouses.

Sales office opens from 13 March 2009 Fri at Simei Street 4. 10am to 7pm. This is a project by Kheng Leong and UOL. For enquires, call 8223 1007 / 8222 1333. Check website : http://doublebayresidences.sg/.


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Bishan Loft - Executive Condo is on resale market now

Remember 5 years ago, when plenty of people queue for 4 day-and-night, just to secure a unit at Bishan Loft - executive condo, now it is 5.5 year-old, and they are on the resale market now. However, you need to wait for another 4.5 years before it is eligible to be owned by foreigners. Now only Singaporean and PR are entitled.

There are several units on sale now. One I showed here is at Bishan Loft Blk 33, Level 12, 4 bedrooms, asking for $850k, with psf about $600+. North-south orientation with a nice pool view. The only draw back for this Bishan Loft is its bathroom, pretty small.

There is also another Bishan Loft 3-bedroom unit at Level 6 for sale. Area 1184, asking for $740k, this translate to psf $625. Unfortunately, is east-west orientation. The next door to this unit is sold at $720k a few weeks ago. Both units have no pool view, facing the HDB opposite.

These are EC (executive condo), and they are eligible for foreigner yet, hence the price will be cheaper than others real private condo. For example, Bishan 8 with a 3-bedroom unit, area 1195 is asking for $880k. This is $736 psf, about $100 higher than Bishan Loft.


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No taker for mortgage auctions

More people are showing a keen interest in monitoring auction sales of properties in order to bag a distressed sale. But the BIG mortgagee sales that many are waiting for have yet to surface in any significant manner. Right now, the banks are restructuring the loans of potential defaulters, who may be offered interest-free holidays or allowed to stretch the loan period. Banks are unlikely to want to take back too many properties when they may not recoup their losses.

Today Straits Times also reported that there is no taker for a few auctions shown below:

Earlier, there are some other project with units under auctions, here are the details and price information:

The guide price for the Sentosa Cove bungalow, which comes with a swimming pool, is between $12 million and $13 million, which works out to $1,449 per sq ft (psf) to $1,570 psf. While the absolute sum is high, this is lower than the $17 million that another owner of a similar- sized house had asked for last month, and which had failed to attract any buyers.

The 3,757 sq ft unit at the 999-year leasehold St Regis has an indicative price of $2,400 psf, or about $9 million. Some units at this condo had previously sold for more than $3,000 psf.

At Jones Lang LaSalle's auction, there is an uncompleted condo for sale - a four-bedder at The Regency at Tiong Bahru.

Also there is a one-bedder at uncompleted condo The Clift in McCallum Street at DTZ's auction, indicative prices are $1,500 psf for the 506 sq ft unit at The Clift.

The 1,722 sq ft Costa Rhu unit in Tanjong Rhu. Knight Frank withdrew the latter from its auction last month as there were no takers at $1.55 million.

The indicative price for the 2,260 sq ft free hold Regency Park unit in Nathan Road is $1,000 psf to $1,200 psf. It comes with a $9,500-a-month tenancy which will expire in January next year. A bigger 3,175 sq ft unit was sold at $1,036 psf last month.

A mortgagee sale takes place when a bank force-sells a property at an auction after foreclosing on a mortgage. But auctions are also conducted for sales made by owners. The source can be found at Business Times.


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Natura Loft - DBSS scheme at Bishan

Natura loft located at the Bishan street 24, launch on 31st October 2008.

The price range:
From $418 psf
4-room $465,000--$586,000
5-room $600,000--$739,000

DBSS public housing flats with full amenities nearby for modern urban life-style prestige living and yet so close to the tranquility and peace of nature. A designer built luxurious apartment project featuring 3 towering blocks of 4-room and 5-room.


According to http://www.cnqc.com.sg/naturaloft.html:
* Bishan Design, Build and Sale Scheme public housing by private developer.
* 3 point blocks with 4 units on each level, facing North and South.
* Lift accessible to every floor via the basement car park.
* E-deck basement car parking with direct drop-off at main lobby of 3-block.
* Bedrooms with Mitsubishi inverter Starmex air-conditioner, Bamboo flooring, Build-in wardrobe
* Bathrooms with fittings
* Kitchen cabinets with Blum's anti-slam mechanism


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