Kaeden Ong

CapitaLand’s earnings up on higher home sales

Posted by Kaeden Ong on 29th November 2016 in Blog

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Stronger home sales in Singapore and China and contributions from serviced residences and commercial properties lifted CapitaLand’s third-quarter earnings.

Net profit for the three months to Sept 30 rose 28.4 per cent to $247.5 million from $192.7 million a year earlier.

Revenue was up 27.7 per cent to $1.37 billion, thanks to increased contributions from development projects here and in China.

The developer said yesterday that higher rental income from its commercial properties here and its serviced residences business also boosted turnover.

China and Singapore remained CapitaLand’s core markets, accounting for about 83 per cent of its revenue.

“CapitaLand’s operating performance has remained robust thanks to our optimal asset mix that provides us with stability and a strong recurring income stream despite a volatile market,” said president and group chief executive Lim Ming Yan.

Its development projects The Nassim and Cairnhill Nine in Singapore, Riverfront in Hangzhou, New Horizon in Shanghai and Vermont Hills in Beijing all contributed to higher revenue in the quarter.

CapitaLand sold 206 homes here between July and September, bringing the total units sold in the first nine months of the year to 510, with a total sales value of $1.24 billion.

Sales hit 2,903 units in China in the quarter, taking the nine-month total to 9,176, with a value of 14.8 billion yuan (S$3.04 billion).

CapitaLand gave an update of the extension fees payable in this half of the year for unsold units at The Interlace and d’Leedon as at the “sell-by date” in its third-quarter earnings report.

These fees relate to Qualifying Certificate (QC) rules applying to foreign developers – including Singapore developers listed here but with foreign shareholders.

It estimated an extension fee of $2.36 million for The Interlace, which had 56 unsold units as at Sept 13, and $2.72 million for d’Leedon, assuming the 87 units still available at the end of September remained unsold by the Oct 21 deadline. The developer noted that these fees will have limited financial impact.

Quarterly earnings per share was 5.8 cents, up from 4.5 cents in the third quarter a year ago. Net asset value per share came in at $4.01 as at Sept 30, lower than the $4.21 at Dec 31, 2015.

Net profit for the nine months to Sept 30 dipped 7.1 per cent to $759.8 million, largely due to lower fair value gains from revaluation of properties and portfolio gains. Revenue was up by 12.5 per cent from the previous year to $3.4 billion.

CapitaLand expects property cooling measures to continue to weigh on the residential market here while the outlook for office occupancy and rents remains muted. Its portfolio of malls here is expected to continue to offer stable recurring income.

The counter closed three cents lower to $3.03 yesterday, after the earnings were announced.

Credits: St Property

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Kaeden Ong

CapitaLand Q3 net profit up 28% to $247.5 million

Posted by Kaeden Ong on 11th November 2016 in Blog

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Property developer CapitaLand posted a total net profit of $247.5 million in the third quarter of 2016, up 28.4 percent from $192.7 million in the previous year, on the back of better operating performance.

Group revenue during the period also jumped 27.7 percent to $1.374 billion.

In an SGX filing, the group attributed the increase to higher contributions from CapitaLand’s residential business in China and Singapore, shopping malls in Malaysia and China, its commercial portfolio in Singapore, and newly acquired serviced residences.

The residential projects which contributed to higher revenue in Q3 included The Nassim and Cairnhill Nine in Singapore, New Horizon in Shanghai, Vermont Hills in Beijing and Riverfront in Hangzhou.

Earnings before interest and tax (EBIT) also rose 7.7 percent year-on-year to $494.4 million in Q3, with Singapore and China remaining as key contributors.

Looking ahead, Lim said the group will continue to grow its assets under management through capital recycling, portfolio optimisation, fund management and management contracts.

Credits: Propertyguru

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Condo sales start for Queens Peak, Parc Riviera

Posted by Kaeden Ong on 8th November 2016 in Blog

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Queens Peak, Hao Yuan Investment’s 736-unit condominium project at Dundee Road, has been warmly received by buyers, with 242 units sold during its launch on Saturday (5 November).

One- and two-bedroom units accounted for 90 percent of all the units sold, while the project’s average price stands at $1,632 psf. The lowest transacted price was $1,406 psf.

The developer attributed the encouraging sales to the project’s good connectivity to the nearby Queenstown MRT station, as well as the fact that all units are at least eight storeys above ground.

“We have received feedback from buyers that Queens Peak is an attractively priced city fringe project made affordable for mass condominium buyers,” said Tan Zhiyong, Managing Director of MCC Land, the project manager for Queens Peak.

Meanwhile, the 752-unit Parc Riviera at West Coast Vale sold more than 100 units on Saturday, offering a “one-tier pricing scheme” for units found on the lowest floor to the 15th floor, reported The Business Times.

With the average price at $1,150 psf, more than 95 percent of units sold are those that come under the one-tier pricing scheme. Around 80 percent of buyers opted for the one- or two-bedroom units.

The scheme, which was originally planned to be offered only on Saturday, did not generate further interest when it was extended to Sunday, with only a few more units sold.

While location may have played a role in the project’s sales performance, EL Development Managing Director Lim Yew Soon noted that the manner by which smaller units were distributed in the project may have also been a factor.

The smaller units at Queens Peak are concentrated on the lower floors to keep the quantums low for investors, while Parc Riviera has similar unit types from the lowest to the highest floors. The developer kept the unit-type composition consistent on each floor due to the use of prefabricated prefinished volumetric construction (PPVC).

Lim explained that it would be challenging for a project using PPVC to have different unit types stacked on top of another as this would require transfer beams and columns to be erected on each floor.

He also revealed that the project will revert to its original price list.

“We took quite a steep discount for the units on the higher floors so we can’t keep doing it all the time,” he said. “We are not planning for further discounts now. Based on the original pricing, it’s still attractive.”

Credits: Propertyguru

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Kaeden Ong

One-tier prices for early buyers of Parc Riviera

Posted by Kaeden Ong on 1st November 2016 in Blog

Parc-Riviera-Perspectives-Draft-2

To entice early-bird buyers, the developer of West Coast condominium Parc Riviera is taking a novel one-tier pricing approach.

EL Development is offering units of the same type from the second to the 15th levels for the same price.

For example, a 603 sq ft two-bedroom flat will be priced at $725,000, regardless of whether it is on the second or 15th level – or anywhere in between.

Most developers charge higher prices for flats on higher floors because higher flats tend to be more popular for the views.

While flats will be priced the same between the second and 15th floors, flats higher up the two towers of 36 storeys at Parc Riviera will be offered at higher prices.

Mr Lim Yew Soon, EL Development’s managing director, said he came up with the strategy as he wants early buyers to enjoy “maximum benefits”.

Typical early bird promotions which might advertise units going for “$5xx,000″ leave buyers guessing about the price and the level of the flat.

He said this approach was “a bit old-fashioned” and cliched. “We are telling people that the price starts from $550,000 for the one-bedroom (unit). We feel that $550,000 is an attractive price, even at the lower levels. But now that we have extended the price to 15 floors, it will be even more attractive,” he added, saying this will get buyers to come in earlier.

The one-tier pricing scheme will be available only on Saturday at the condominium’s soft launch.

Parc Riviera, located near Pandan Reservoir, comprises two 36-storey towers with a four-storey carpark. Unit sizes range from 463 sq ft for a one-bedroom unit to 1,711 sq ft for the largest four-bedder. EL Development said that about 64 per cent – are one- and two-bedroom apartments.

Mr Lim said the price difference between the 15th and the 16th floor will be “substantial”, by about 5 per cent.

Property experts were optimistic about the move.

PropNex Realty chief executive Ismail Gafoor said that the strategy is likely to be effective.

“This is one of the first times when a developer has dangled this type of carrot. This strategy will likely get greater interest from consumers as they have an incentive to come early to make up their minds, to get discounted prices for higher floors. There are real savings for the buyer.”

Mr Ong Kah Seng, director of R’ST Research, said that the main purpose of the strategy is to encourage buyers to “snap up” the higher floors.

Typically, units on the higher floors of a 20-storey condominium are more expensive by up to 15 per cent than those in the middle levels, he added.

While this might mean lower floor units could be unsold for a while, Mr Ong said that this is “immaterial” as “the project would already have achieved a fairly good sales rate, resulting in the project achieving good break-even sales or even marginal profits”.

Credits: Straits Times New

 

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2 new condo projects to open showflats

Posted by Kaeden Ong on 25th October 2016 in Blog

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Parc Riviera, Queens Peak aim to tap buyer interest amid good showing at other launches

Two new condominium projects – in West Coast and Queenstown – will open their showflats this weekend in the hope of capitalising on good sales at recent launches.

Prospective buyers can visit the showflat of EL Development’s Parc Riviera in West Coast Vale over the next two weekends, ahead of its sales launch next month.

The other project vying for buyers is Queens Peak in Dundee Road, in Queenstown. It will open for preview on Saturday, with the sales launch scheduled for Nov 5, its developer Hao Yuan Investment said.

EL Development told The Straits Times the average selling price for units at the 752-unit Parc Riviera – a 99-year leasehold development – will be about $1,250 per sq ft.

“We want to price (the units) low at the start to attract early-bird buyers… If demand is there and the market improves, maybe we can consider raising the price slightly,” noted Mr Lim Yew Soon, managing director at EL Development.

Parc Riviera comprises two 36-storey towers with a four-storey carpark. It is near the Pandan Reservoir and park connector. Key features include a panoramic deck with jacuzzis and pavilions on the rooftops of both blocks.

Unit sizes range from 463 sq ft for a one-bedroom unit to 1,711 sq ft for the largest four-bedder. EL Development said 480 of the 752 units – or about 64 per cent – are one- and two-bedroom apartments.

Mr Lim said: “Recent sales at The Alps Residences and Forest Woods are very encouraging… I think as long as the project is well designed and reasonably priced, there’ll be takers.”

Hao Yuan Investment’s Queens Peak – also a 99-year leasehold project – appears to be better located, being near the Queenstown MRT station. It has 736 units, comprising one- to five-bedroom apartments and penthouses.

The sizes of the units at Queens Peak range from 431 sq ft for the one-bedroom unit to 2,002 sq ft for the five-bedder, and 4,768 sq ft for the largest penthouse.

The one- and two-bedroom apartments make up 62 per cent of the total units available there. The developer said premium units will have private lift lobbies, and all four penthouses will come with private pools, jacuzzis and private roof terraces.

“While market sentiment is buoyed by the recent recovery in sales, Queens Peak has very strong qualities… and as such, we have improved confidence at this moment,” said Hao Yuan Investment, adding that selling prices have not been set yet.

The two upcoming showflat openings follow the positive response to new projects rolled out this month.

Forest Woods, a project by City Developments, Hong Leong Holdings and TID, in Lorong Lew Lian sold 65 per cent of its 519 units on its first launch weekend on Oct 8.

MCC Land’s The Alps Residences in Tampines moved 280 of 626 units in a single day when it was put on the market on Oct 2.

Investor Eileen Gwee bought a two-bedder at The Alps Residences in Tampines for under $750,000, in the hope of leasing it out. “I am still confident about Tampines. It is a mature estate and a regional centre; an international school is nearby… so there should be rental potential,” said Ms Gwee, a sales manager.

Newly launched projects such as Cairnhill Nine near Orchard Road, Gem Residences in Toa Payoh and Lake Grande in Jurong have also sold well.

“New projects have launched at reasonable price levels this year… In addition, several of the projects are relatively well located and have attractive characteristics, such as a retail podium and proximity to an MRT station,” said Ms Alice Tan, Knight Frank Singapore research head.

Both Parc Riviera and Queens Peak are expected to get their temporary occupation permits at the end of 2020.

 

Credits: Straits Time Property News

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Queens Peak condo to launch at $1,430-$1,830 psf

Posted by Kaeden Ong on 21st October 2016 in Blog
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Chinese developer Hao Yuan Investment will hold a preview starting from this Saturday (22 October), to test market sentiment for the Queens Peak condominium at Dundee Road near Queenstown MRT station.

Property agencies SLP Realty and Knight Frank are marketing the 736-unit residential development.

The units will be perched from the eighth storey onwards, and comprise one- to five-bedroom units and penthouses measuring from 431 sq ft to 4,768 sq ft. The prices of the one- to five-bedders will range from $1,430 psf to $1,830 psf.

The four penthouses will come with high ceilings, a private pool, Jacuzzi and private roof terraces, said the developer.

There will also be a 570 sq ft shop unit on the ground floor which will cater to the needs of future residents.

Queens Peak is close to Queensway Shopping Centre, IKEA Alexandra, Alexandra Hospital and several schools.

Tan Zhiyong, Managing Director of MCC Land, the project manager of Queens Peak, said: “The Queenstown estate has greatly transformed in recent years. The nearby Dawson area has been modernised with award-winning public housing projects and the Queensway shopping enclave is now (full of) new malls.”

The 99-year leasehold project is expected to be completed in 2020.

Credits: Propertyguru

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