Property Sales momentum going strong + RiverGate TOP

According to news reported yesterday, property devlopers have sold around 1,200 private home units in May, comparable to the 1,207 units sold in April. They have started raising the prices for several mass-market and mid/upper segment projects by lowering the discounts from the 2007 peak levels. The developers are also firming up plans for more mass/mid market launches/re-launches in the coming months. The recent soft re-launch of freehold Shelford 23 in the Bukit Timah area by Hoi Hup Realty was well received with nearly half of the units sold at an ASP of S$1,250 psf.

The continued sales momentum would help in firming up the base formation and in improving the home buying sentiment further, leading to a more sustainable recovery. We expect the demand and supply dynamics in the mass and mid tier segments to remain favourable over the next three years. Also, the supply shortage of Public Housing is supportive of private mass market.

Payment has been collected for 98 per cent of the 542 condo units sold at CapitaLand's RiverGate project since Temporary Occupation Permit (TOP) was obtained in March, the developer said yesterday. Payment collection for the remaining 2 per cent, or 11 sold units, is ongoing, and the buyers have been served notice to pay up. The 11 units were 'all sold separately to individual buyers under the deferred payment scheme (DPS)', a CapitaLand spokeswoman said. More than 90 per cent of the 542 RiverGate units sold were under DPS, she added. CapitaLand developed the 545-unit freehold condo in the Robertson Quay area through a 50:50 joint venture with Hwa Hong Corporation.

Asked what CapitaLand will do regarding the 11 buyers that have not paid up, the spokeswoman said: 'For genuine homebuyers who may face difficulties meeting the payment obligations, we will address these on a case-by-case basis. We will see how we can lend our assistance within the constraints of the obligations under the securitisation structure.' The progress payments and deferred payment receivables for sold units were securitised through special purpose vehicle Okeanos Investment Corporation, which in January 2007 issued US$477 million ($731 million) of floating rate notes due 2011. With the proceeds collected for RiverGate so far, the US$477 million of notes are expected to be fully redeemed by the expected maturity date in June 2009, CapitaLand said in a statement.


Click here for more Property News