Tag Archives: down

Overall subscription rate for BTO flats down in November

Tampines GreenCourt is nestled within the tranquil living environment of Tampines North, with several nearby parks.

Despite the robust demand seen for three- and four-room flats in Tampines and Geylang, the overall subscription rate for Build-to-Order (BTO) flats continued to fall during the November sales exercise, reported Today Online.

As at 5pm on 20 November (Monday), more than three applicants were vying for the four-room flats in Eunos Court at Geylang, or 1,848 applications for the 538 units offered.

Three-room flats in Tampines GreenCourt received 193 applications for the 186 units offered, while four-room flats in Northshore Edge at Punggol attracted 466 applications for the 192 units available.

PropNex’s chief executive officer Mohd Ismail attributed the strong demand in Geylang to its location, which is “much closer to town”.

“Also, people understand that a flat with good location… when it matures after the five-year minimum occupation period… tend to have a huge capital appreciation.”

Analysts, however, noted a continuing downward trend in the number of applications received for BTO flats.

The overall subscription rate for three-room and larger flats, for instance, fell to 1.5 from 1.7 during the August exercise. The rate stood at 2.9 in May and 3.3 in February.

“Overall application rate is fairly low, less than two times. This implies that homebuyers’ demand is been met,” said ZACD Group executive director Nicholas Mak.

“If HDB were to increase the supply of BTO flats next year, it could possibly lead to a glut in the near future,” he said.

Another reason cited for the lower subscription rate is the volume of flats offered.

“Homebuyers have a wide (variety of) choices, and there is relatively ample supply (of flats) this round… As long as HDB continues to provide adequate numbers, the subscription rate will tend to be relatively lower,” said Ismail.

 

This article was edited by Keshia Faculin.

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OUE revenue down 56.6% in Q3 2017

Oakwood Premier OUE Singapore is a 268-unit luxury serviced apartment, located in the heart of Singapore.

Mainboard-listed OUE Limited saw its revenue for the third quarter of 2017 drop 56.6 percent to $ 182 million, due to the absence of $ 205.0 million non-recurring revenue registered on the sale of the extension to Crowne Plaza Changi Airport (CPEX) and lower contribution from the development property division.

The decrease, however, was partially mitigated by higher contribution from its hospitality and healthcare divisions.

In an SGX filing, the company revealed that revenue from its investment properties division and hospitality division increased to $ 67 million and $ 58.6 million, respectively, while revenue from OUE Twin Peaks fell to $ 38.5 million due to fewer sales completed during the period.

Nonetheless, OUE Twin Peaks was fully sold as at October 2017, thanks to the group’s active marketing effort.

Revenue from its healthcare division stood at $ 11.3 million.

Earnings before interest and tax (EBIT) fell 58.3 percent to $ 49.4 million, mainly due to the absence of $ 66.7 million non-recurring gain on disposal of CPEX posted in Q3 2016.

With this, attributable profit plunged 90 percent to $ 10.7 million from $ 107.6 million previously.

Looking ahead, OUE executive chairman Dr Stephen Riady expects the commencement of operations at Downtown Gallery as well as Oakwood Premier OUE Singapore to further increase the group’s “recurring income base and enhance shareholder value, which has always been our focus”.

“We remain committed to delivering stable earnings by identifying new opportunities and exploring potential to unlock synergistic gains,” he added.

 

This article was edited by Keshia Faculin.

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CDL profit down 8.3% in Q3 2017

Lush Acres is a 99-year Leasehold Executive Condominium located at Sengkang West Way/Fernvale in District D28. (Photo: Lush Acres)

City Development Limited’s (CDL) net profit for the third quarter of 2017 fell 8.3 percent to $ 156 million, while revenue dropped 6.5 percent to $ 863 million.

For the first nine months of 2017, net profit and revenue declined by 14.2 percent and 8.7 percent to $ 351.5 million and $ 2.5 billion, respectively.

In an SGX filing, CDL revealed that the Q3 and year-to-date September results were “boosted by a gain following the divestment of a non-core office building in Osaka”.

“In comparison, year-to-date September 2016 results also included a gain from the divestment of the group’s 52.52 percent interest in City e-Solutions Limited and the full recognition of revenue and profit of Lush Acres, a fully sold Executive Condominium (EC).”

Excluding these one-off items, the group’s net profit for year-to-date September 2017 actually increased by 3.5 percent.

CDL executive chairman Kwek Leng Beng noted that the prospects for the local property market are brighter. But with the property cooling measures still in place, the market remains far from its previous peak almost a decade ago.

“We are confident that the government will continue to be nimble and make necessary tweaks to these measures, when the situation warrants.”

With this, he urged the government to review “sooner rather than later” the qualifying certificate (QC) policy to balance supply and demand as well as moderate escalating land prices.

This comes as the policy “prevents land banking for listed property companies, which are typically larger entities”.

“Policies like the QC are an impediment which have resulted in the rush to bid up land prices as land must be acquired and then developed within a limited period, rather than being held on a balance sheet over the longer term, which would moderate escalating prices.”

To date, the group has not been liable for any QC and/or Additional Buyer’s Stamp Duty (ABSD) penalties as it has been able to sell its units within a stipulated period.

 

This article was edited by Keshia Faculin.

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