Another developer is putting up unsold condo units for bulk sale, apparently to avoid having to pay hefty fees to extend the sales period.
Singapore-listed Hiap Hoe Group wants to sell all 48 units in its District 10 project, Treasure on Balmoral, at a guided price of $1,850 per square foot (psf) or $191.4 million.
This follows attempts by other developers to offload their unsold units in bulk sales – as did Great Newton Properties for its Newton Imperial condominium project and Heeton for iLiv@Grange.
With buying interest still dampened by tough lending rules, property consultants believe more bulk sales at reduced prices are in the offing, especially for high-end projects.
The government’s Qualifying Certificate rules, under which developers have to pay extension charges to extend the sales period two years after the project’s completion.
Hiap Hoe’s project received its temporary occupation permit (TOP) in November 2012, meaning that the developer will have to pay extension fees for unsold units from this November.
To extend the sales period, developers have to pay 8 per cent of the land purchase price for the first year of extension, 16 per cent for the second, and 24 per cent for the third year onwards; the charges are pro-rated according to the proportion of unsold units in the project.
Hiap Hoe’s subsidiary paid $138 million for the Balmoral site by way of a collective sale tender in 2007. The guided price of $1,850 psf for Treasure on Balmoral is lower than the median prices achieved for units at two other projects on Balmoral Road: Goodwood Grand ($2,360 psf) and One Balmoral ($2,451 psf), going by caveats lodged.
In January, Great Newton Properties tried in vain to offload unsold units in the 36-unit Newton Imperial to a single buyer, after selling only nine units.
Heeton was also said to be seeking $2,200-$2,300 psf for the 30-unit iLiv@Grange, which TOP-ed last October. Not a single sale has been lodged there so far.
Source: Business Times – 10 July 2014
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