Units fetch average price of $1,150 psf

The public launch of The Scala yesterday drew a huge turnout and defied official data of slowing private home sales in recent months. Over a thousand property buyers turned up and balloted for a chance to make a purchase.

The developer, Hong Leong, said it had sold over 75 per cent of the 468 units available as of yesterday. It said the units, sized between 474 and 2,142 square feet, were sold at an average of $1,150 per square foot.

Hong Leong also said that the buyers comprised a good mix of HDB upgraders and investors, with local buyers making up the majority.

Buyers who spoke to MediaCorp said properties in the central area were out of their price range. Instead, they picked The Scala because of its suburban location.

One of them is Mr Andrew Low, 43, an IT manager at an insurance firm, who wanted to buy a two-bedroom unit for investment. He said: “The Scala should not be affected by the recent dip in private sales. It is close to the Lorong Chuan MRT and near the NEX Mega Mall. I see a 10- to 20-per-cent increase in prices in two years.”

Some buyers were also encouraged by the potential rental yields as they reckon that the units can attract expatriates due to their proximity to international schools.

“If I rent it out, I’m looking at a monthly rent of between $3,000 and $4,000 a month. If not, I can move in here myself,” said Mr Low.

Also looking for a two-bedroom unit was Mr Zhao Han, a permanent resident from China, who had been working here as a technical specialist in the automotive industry for three years.

He said: “Mainland Chinese have too much cash but they can only invest in property because other sectors like manufacturing and enterprises in China have not been fully developed yet.”

Ngee Ann Polytechnic real estate lecturer Nicholas Mak said that bullish property investors may be willing to pay a premium and push the property prices higher still. “At $1,150 psf, the price can still go up to $1,200 and some units may even reach $1,250,” he said.

Source: Today, 29 Jul 2010

THE threat of a fallout from the euro zone debt crisis has dented the confidence of some local firms, but most remain optimistic going into the third quarter, according to a new survey.

Bosses polled by credit rating firm D&B Singapore were largely positive and expect increases in profits, sales and new orders over the next three months.

D&B said the optimism was mainly down to the strong performance of key sectors here, with construction, services and manufacturing leading the way.

Ms Audrey Chia, a D&B senior director, also singled out the biomedical and electronics sectors as star performers, as the global recovery continues.

‘A positive business outlook was observed across the board (for the third quarter) with the overall optimism index for both net profit and employment maintaining in the positive region,’ she said.

‘Nevertheless, the anxiety from Europe’s sovereign debt crisis and the global financial fragility are starting to take their toll on overall business confidence with reported figures appearing less robust than in the previous quarter.’

Although less optimistic, most of the 200 companies polled by D&B still had high hopes for the third quarter.

The survey was to compile the Business Optimism Index (BOI), which compares the net percentages of the respondents’ expectations in areas such as sales, profits and hiring activities with those in the previous quarter. A positive reading indicates optimism, a zero reading signals no change, while a negative one means the respondent expects a drop in performance.

‘The majority of companies surveyed have indicated continued optimism towards their third-quarter performance for sales volume, net profit, selling price, employment and inventory,’ said Ms Chia. ‘Although overall sentiment is less bullish than in the second quarter.’

Compared with second-quarter figures, the third-quarter index for net profit dipped from 45 per cent to 26 per cent, sales volume from 41 per cent to 29 per cent, and new orders from 42 per cent to 35 per cent.

The BOI for employment also dipped from 14 per cent to 13 per cent, although it remained in the positive range for the fifth quarter running.

However, selling prices are expected to rise moderately in most sectors, led strongly by the mining, services and construction sectors, said Ms Chia.

The BOI results were also in line with similar studies done in recent months.

Last week, the HSBC Small Business Confidence Monitor revealed that small and medium-sized enterprises here were among the most confident in Asia, with more investing to expand in the first half of this year. The official growth forecast for the year was revised upwards last month from 7 to 9 per cent to 13 to 15 per cent.

With Singapore set for record growth, it came as no surprise that businesses were in a buoyant mood. Mr Alex Lau, managing director of Anacle, one of Singapore’s fastest growing technology start-ups, said he was ‘extremely positive’ about the outlook for the rest of the year. ‘Our order books have already surpassed our expectations, but the real question is how much of the recovery is driven by real demand and not government stimulus.’

Source: Straits Times, 29 Jul 2010

New rules on education level likely to shrink pool, but lifeline exists

THOUSANDS more property agents are set to bail out of the industry over the next 17 months due to tough new rules being introduced by the Government.

The regulations will impose a basic educational standard – a minimum four GCE O-level passes – on estate agents.

There are now no such requirements and no mandatory examination, so anyone can easily become a property agent.

While the new rules allow agents who do not meet the educational requirements to sit an industry exam to earn qualification, the immediate effect will be an exodus from the industry, say experts.

ERA Asia-Pacific associate director Eugene Lim estimates that the number of agents who do not have four O-level passes may comprise up to 30 per cent of the 30,000-strong pool of agents.

Experts forecast a drop of up to 25 per cent to 30 per cent in the number of agents by the end of next year.

About 15 per cent to 20 per cent will drop out by the end of this year, and possibly another 10 per cent by the end of 2011, although new ones may join, said Mr Lim.

But there is a lifeline for existing agents once the rules kick in later this year.

The Ministry of National Development (MND) recently told real estate agencies that agents who have done at least three property deals over the past two years will not need to have the minimum O-level passes.

But they will need to pass the new mandatory exam for agents within a year from January 2011.

This means that older, experienced full-time agents who do not have the four O-levels or the equivalent will have more time to pass the industry exam.

New agents who may have joined the industry earlier this year will also benefit as they will be able to complete three deals fairly quickly, said Dennis Wee Group director Chris Koh.

Under the new rules, agents need to have a minimum educational requirement and take an industry exam.

They will also have to register through their firms at a new statutory board called the Council for Estate Agencies.

But the expected clear-out should not affect the industry too much, given the big number of agents, including inactive ones.

‘Nobody knows exactly how many agents are out there. Many agencies have not done any housekeeping at all. I won’t be surprised if some names are repeated at different agencies,’ said Mr Koh.

He recently let go of 1,500 inactive agents, leaving 3,500. That was after he tried to recall all agents to update their particulars to meet MND requests.

Mr Koh said the 1,500 agents had not done any deals in a year and had failed to update their particulars. Some quit as they are in the civil service and do not want their names in the public registry, as is required under the new rules.

‘Every month, I bring in new agents and let go of some inactive agents. But previously, there was no urgency to terminate so many,’ Mr Koh said.

At HSR Property Group, executive director (agency) Jeffrey Hong said the firm will do a ‘screening exercise’ in the next two weeks. It now has 7,000 agents and has not had a regular practice of terminating inactive ones.

There has been little change at the other two big agencies – ERA and PropNex – as they have been doing their housekeeping.

ERA’s Mr Lim said: ‘We do not need to chop just because of the new rules. On average, we let go of about 100 inactive agents every month. Our sales force is about 3,000-strong and it is active.’

PropNex chief executive Mohamed Ismail added: ‘I let go of 2,800 agents two years ago and another 1,200 this January.

‘All my agents are covered by professional indemnity insurance and are active. My next audit will be in October.’

Source: Straits Times, 29 Jul 2010

200 units at The Scala in Serangoon snapped up at launch yesterday

HUNDREDS of eager buyers yesterday braved the early morning rain, making a beeline for the public launch of Hong Leong’s The Scala, as keen interest in mass market condominiums shows no sign of abating.

Demand for the 300 or so remaining units of the 99-year leasehold project near Lorong Chuan MRT station was so strong that balloting was needed to sort out who got to enter the showflat first.

By late morning, more than 800 property agents and potential buyers who had submitted blank cheques had packed the balloting tent at the condo site in Serangoon Avenue 3. This is the biggest turnout at a mass market public launch since Trevista in Toa Payoh and Hundred Trees in the West Coast area were launched late last year.

A private preview was held on Tuesday for Hong Leong staff and buyers who had registered their interest with the developer. About 150 units were sold then.

Hong Leong said that as of yesterday, more than 75 per cent of the project’s 468 units had been sold. That means more than 350 were sold, of which about 200 went yesterday.

Ngee Ann Polytechnic real estate lecturer Nicholas Mak said the condo had set a benchmark price for new projects near MRT stations in the north-east.

‘There is a demand for mass market homes among investors and they generally feel more comfortable buying projects near MRT stations,’ he said.

Mr Colin Tan, research and consultancy director of Chesterton Suntec International, said: ‘The market is still hungry, and the proximity of the project to the Circle Line has given (buyers) a reason to buy.’ He said worries over the euro debt crisis had receded so buying sentiment had turned positive again.

Property experts say the strong demand for mass market homes is expected to continue, with prices set to rise about 7 per cent in the second half of this year.

The Government is rolling out a record number of residential sites in the second half of this year, and has assured buyers that there will be no shortage of homes.

Units at The Scala, in five residential towers, are between 474 and 2,142 sq ft each and range from one- to four-bedroom apartments. They were sold at an average of $1,150 per sq ft (psf).

In terms of total price, the smallest units were priced from $600,000 while the four-bedders were from $1.5 million.

Hong Leong said the buyers, mainly locals, comprised a good mix of HDB flat upgraders and investors.

Most buyers The Straits Times spoke to listed as key selling points the project’s close proximity to newly opened Lorong Chuan MRT station and the range of amenities such as the NEX mega mall due to be completed next year.

Some buyers also cited nearby schools such as the Australian International School and the Stamford American International School. They said this could mean high rental yields.

Sales executive Tammy Lim, 30, bought a two-bedroom unit. She said the project is near her parents’ home.

In addition, the project is close to schools that her three-year-old daughter could attend later, she said. ‘Prices keep increasing. We decided to buy now rather than keep waiting.’

Nearby Chiltern Park condo, completed in 1995, saw an average selling price of $746 psf for five units sold last month, according to caveats lodged with the Urban Redevelopment Authority.

The Scala is expected to be completed in the first quarter of 2014.

Source: Straits Times, 29 Jul 2010

IN AN unprecedented crackdown on illegal subletting, the Housing Board (HDB) has taken action against four flat owners and compulsorily acquired their flats.

These owners did not live in the flats they purchased and sublet their homes without meeting the minimum period of occupation – five years for subsidised flats and three years for non-subsidised flats – or obtaining the HDB’s approval.

Locked out, then found out

The owner sought the HDB’s help in getting into his flat after he was locked out of it.

That was when he was found out. He had allowed his three-room flat in the western part of Singapore to be used as collateral for a loan. His moneylender had sublet the flat as repayment.

After he got back into his flat, the HDB reminded him repeatedly that he had to resume occupation of it and evict the tenants.

But he did neither, even after he was given a grace period.

The HDB thus took over the flat.

Let out too soon

She let out her flat without the HDB’s approval only a year after she had bought the property. The HDB requires home owners to live in their flats for a minimum period before they can let them out.

Though she did as told by the HDB and evicted her tenants, she failed to move back in, and left the flat empty.

The HDB then took over the flat.

Didn’t live in matrimonial home

She bought the flat with her former husband, a foreigner, while they were married.

But she never moved in. Instead, she lived abroad and sublet the flat without meeting the minimum occupation period or getting approval from the HDB.

When their marriage broke down, her ex-husband wrote to the HDB to say that the flat was never intended as their matrimonial home and he had, in fact, never even seen it.

Even after she returned to Singapore, she chose to live with her family and not in her own property.

The HDB proceeded to acquire the flat.

Sublet to religious group

The flat owner lived in another home with her family while she sublet her unit to a religious group.

The flat was compulsorily acquired on the grounds that it was let out without the HDB’s approval and that the owner did not resume occupation.

Source: Straits Times, 29 Jul 2010

Six other flat owners fined, in clampdown on illegal subletting

FOUR Housing Board home owners lost their flats in the first five months of this year, after the HDB launched an unprecedented crackdown on those who let out their flats illegally.

Six others have been fined amounts that ranged from $4,200 to $14,400.

Making good its earlier pledge to clamp down on illegal subletting, HDB inspectors checked 2,600 homes from January to May, four times more than in the preceding five months last year.

Some 2,300 flat owners are in the clear, but of the 300 still being investigated, 59 cases have been classified as suspicious.

The crackdown comes after measures announced in March to ensure that heavily subsidised HDB flats are used as homes, and not as money-making tools.

For example, the minimum occupation period for resale flat buyers before they can sell the flat was lengthened to three years, up from as short as one year, to cool speculative demand for HDB flats.

The Government had said that illegal subletting was not rampant, but it also gave the assurance that it would step up enforcement against owners who flouted the rules to milk rental income.

The HDB confirmed that this is the biggest number of flats checked and compulsorily acquired over a five-month time frame.

In the preceding two years, the HDB repossessed four flats out of 56 illegal subletting cases. The other 52 were fined amounts ranging from $1,000 to $21,000.

‘HDB flats are primarily meant for owner occupation. Subletting of HDB flats without HDB’s approval is an infringement of the lease conditions,’ its spokesman said yesterday.

As of the end of last month, 30,500 HDB flat owners, or 3.6 per cent, out of a total of 841,000 flat owners have obtained approval to sublet their flats.

In the latest blitz, the spokesman said that in all 10 cases, the flat owners were not living in their homes and had sublet the whole flat without HDB approval.

She said a fine would generally be imposed on first-time offenders, unless their actions were particularly blatant, such as repeatedly ignoring HDB reminders to evict tenants.

Then, under the HDB Act, it would resort to compulsory acquisition, returning the owner only the value at which he had bought the flat.

A penalty would also be deducted from that amount.

The HDB cited one case in which a woman bought a flat with her then-husband but stayed overseas all the while.

When the marriage broke up, the ex-husband confirmed that they had no intention of living in the flat, which had been sublet before the expiry of the minimum occupation period.

One owner even allowed his moneylender to let out his flat to collect rent that constituted his debt repayment.

The HDB also found cases where flat owners skirted subletting rules by locking up one room and renting out the rest of the flat.

The rules mandate that owners can sublet their whole flats only after they fulfil the minimum occupation periods of five years for subsidised flats and three years for non-subsidised flats.

Approval must be obtained from the HDB, with caps on the number of sub-tenants allowed, based on flat size.

Former chairman of the Government Parliamentary Committee for National Development Charles Chong said the crackdown will ‘send out a very strong message that the flats are not for people to make money, but for accommodation’.

There had been public concern that illegal subletting was indirectly linked to rising resale prices.

However, property analysts interviewed said that stricter enforcement is unlikely to have a significant impact on the market.

Said group managing director Danny Yeo of Knight Frank real estate consultancy: ‘There are many illegal subletters, but compared to the total number of flats available, the numbers are small.’

Mr Gerard Thomas, marketing director of SHL Realty, said: ‘There are also external factors to consider, for example, what the economy is like, whether there are any disasters.’

Mr Thomas added that the stricter enforcement would reduce the incentive for people to sublet illegally because the ‘price is too high to pay’.

About three in every 10 cases in the crackdown came from public tip-offs.

While flat owners who rent out rooms do not need HDB approval, they must register the subletting details within a week, on pain of a fine of up to $3,000.

This move helps track tenants who use the flat addresses to borrow from loan sharks.

A six-month grace period for those who had sublet their flats before the start of February expires at the end of this month.

Those who want to report on illegal subletting can call the HDB on 1800-555-6370.

Source: Straits Times, 29 Jul 2010

WHEN the two Prime Ministers of Singapore and Malaysia announced recently, and rather unexpectedly, a resolution to the long-standing issue of Malaysian railway land, there was a quiet sense of relief on both sides. But for none more so than among the backers of Iskandar Malaysia, an ambitious concept mooted in 2006 by the Malaysian government with the vision of transforming greenfield clusters in Johor into a sustainable and prosperous metropolis by 2025.

Singapore’s initial response to the mega development plan was lukewarm. Singapore businesses viewed warily the rosy forecast of lucrative investment opportunities in waterfront projects and building and operating educational institutions and theme parks. The onslaught of the global financial crisis in 2008 did not help matters and Iskandar developments appeared to be moving slowly.

However, to the credit of the project’s planners and managers, and the commitment of the Malaysian government, hundreds of millions of dollars have been sunk into developing the necessary infrastructure. Roads and highways were built, rivers cleaned up, and water and energy services to the area upgraded. In short, Malaysia’s planners spared no effort and now the development is ripe for takeoff.

Private investments have been picking up. The catalytic driver of investments for the area, Iskandar Investments, signed on some major projects and achieved its own target for joint ventures. Indeed, Iskandar Malaysia is reported to have gone beyond its target of achieving US$13.2 billion in investments by 2010. However, there can be no denying that Singapore investors have been by and large in ‘wait and see’ mode.

Several business delegations have gone across from Singapore over the past two years to take a look at the region and see developments for themselves. But except for a few small investors, there was no notable commitment from a Singapore party – until recently, when the Management Development Institute of Singapore (MDIS) announced one of its biggest forays overseas, a $128 million investment to set up a 30-acre campus in an area within Iskandar’s EduCity. The new facility will be about five times bigger than its Singapore campus.

Now that political reassurances have been made, and basic infrastructure is in place, will potential investors from Singapore take the plunge? Already Temasek Holdings is eyeing some 200 hectares of land in the development zone for a medical and wellness centre. This must be the clearest signal that the Malaysian project has got that it is ready to fly.

But while government assurances and commitments are necessary, nothing can replace the hard-nosed approach of business people, who base their decisions purely on investment returns. How much, and how quickly, private investment flows into Iskandar Malaysia will be the real test. But it must be said that the prospects now look better than at any time since the project’s launch.

Source: Business Times, 29 Jul 2010

(HONG KONG) Hang Lung Properties Ltd, the best performer in the Hang Seng Property Index this year, said full-year profit excluding gains from revaluations more than doubled after it sold more apartments in Hong Kong.

Net income excluding revaluation gains and deferred tax rose to HK$6.67 billion (S$1.2 billion) in the 12 months to June 30 from HK$2.39 billion a year earlier, the developer said in a statement to the Hong Kong stock exchange yesterday. That fell short of the average estimate of HK$6.96 billion from 12 analysts surveyed by Bloomberg.

Hong Kong’s third-biggest developer by market value said full-year property sales jumped after it sold more luxury apartments at its HarbourSide project. Hong Kong home prices have risen 38 per cent since early 2009, fuelled by record-low mortgage costs, near-zero interest rates on savings deposits and buying by rich mainland Chinese.

Luxury home prices in the city may rise 10 per cent by the end of this year after already gaining 10 per cent in the first half, property consultant Jones Lang LaSalle Inc said last week.

‘I’m optimistic about Hong Kong’s luxury market in the long run,’ Hang Lung chairman Ronnie Chan said at a press briefing yesterday.

The company sold 425 garden-view units at the HarbourSide development in West Kowloon and recorded profit from property sales of HK$5.26 billion, compared with HK$3 million a year earlier.

The shares fell 3.1 per cent to HK$32.60 at the 4pm close in Hong Kong, while the Hang Seng Property Index lost one per cent. The stock is up 6.5 per cent this year compared with a 3.6 per cent decline in the seven-member property index.

Hang Lung, which has two office and shopping mall complexes in Shanghai and one in Shenyang and is building several others in cities such as Wuxi and Jinan, said projects in China are progressing ‘well’.

Rental profit from mainland China rose 14 per cent to HK$1.6 billion, it said.

The developer is seeking to buy more prime sites in China, according to yesterday’s statement.

‘We’ll stay focused on mainland China’s high-end commercial leasing properties, and focus primarily on second-tier cities, which generate returns as good as the first-tier cities,’ Mr Chan said. ‘China’s system is flooded with money.’

Rental profit from its Hong Kong investment properties was little changed at HK$2.1 billion. Hang Lung owns the Hong Kong headquarters of Standard Chartered plc.

Hang Lung also booked a HK$21.2 billion gain reflecting the increased value of real estate held for investment, against a HK$3.5 billion gain the same period the previous year.

Including those gains, net income for the year surged more than 400 per cent to HK$22.3 billion, or HK$5.30 a share, from HK$4.13 billion, or 99 Hong Kong cents a share, a year earlier.

The company is the first of the city’s biggest builders to announce earnings. Cheung Kong (Holdings) Ltd, Hong Kong’s second-biggest developer controlled by billionaire Li Ka-shing, will report on Aug 5. Sun Hung Kai Properties Ltd, the city’s biggest developer, and Sino Land Co will likely report next month.

Hang Lung will pay a final dividend of 54 Hong Kong cents, from 51 cents last year. — Bloomberg

Source: Business Times, 29 Jul 2010

Auction atmosphere not as good as expected, with no aggressive bidding

(HONG KONG) Nan Fung Development Ltd and Wharf (Holdings) Ltd bid HK$10.4 billion (S$1.85 billion) for a building site in Hong Kong’s Peak district yesterday at an auction that was close to surveyors’ estimates.

The price for the Mt Nicholson Road site in one of the city’s most exclusive residential areas was lower than the HK$10.5 billion median estimate of seven analysts in a Bloomberg News survey.

Their forecasts ranged from HK$8.9 billion to HK$11.5 billion, or HK$27,000 to HK$35,000 per square foot of gross floor area.

The government has been trying to curb a 38 per cent surge in home prices since the beginning of 2009 amid concerns housing is out of reach of ordinary residents. The Hang Seng Property Index turned lower after the auction result, ending down one per cent at the 4 pm close in Hong Kong.

‘The market is worried we’re going to have a bubble burst again like after 1997,’ when the market peaked, said Trevor Cheung, an analyst at BNP Paribas in Hong Kong.

Hong Kong’s luxury home prices have been fuelled by record-low mortgage costs, near-zero interest rates on saving deposits and buying by mainland Chinese. The city’s home prices have gained 9.6 per cent this year and last week rose to the highest since 1997, according to Centaline in a July 23 report.

Luxury home prices may rise another 10 per cent in the second half if interest rates stay at two-decade lows and the local economy keeps growing, property consultant Jones Lang LaSalle said this month.

Nan Fung, a privately held developer, and Wharf will develop the site in a 50-50 venture, said Donald Choi, managing director at Nan Fung, after the auction. Wharf owns two of Hong Kong’s largest shopping centres and the city’s cable TV operator.

The site at 103 Mt Nicholson Road, formerly used for government staff quarters, has a total gross floor area of 324,861 square feet (30,180 square metres). The auction was initiated by the government, which has pledged to increase land supply as part of its measures to keep home prices in check.

About 30 per cent of the gross floor area at the plot will be used to build townhouses, while the rest will be used for apartments, Mr Choi said. At HK$10.5 billion, the developers paid HK$32,014 per square foot for gross floor area.

It is a ‘unique site in a very rare location’ and there are not that many sites at the Peak, Mr Choi said. He said the price was ‘reasonable.’ Martin Lee, the youngest son of Henderson Land billionaire chairman Lee Shau-kee, in May paid HK$1.82 billion, or a record HK$68,200 per square foot, for a site on Barker Road in the Peak district at an auction held by Jones Lang. Mr Lee said afterwards he would use the site to build houses for his family.

‘Hong Kong land prices are already so expensive,’ Hang Lung Properties Ltd chairman Ronnie Chan said at the company’s full-year earnings briefing as the auction elsewhere in the city got underway. ‘With that kind of price we can develop three or even four Hang Lung plazas in Shenyang’ in north-eastern China, he said, referring to estimates of about HK$10 billion for the Peak site.

Most government land sales in recent years have been triggered by developers who promised to pay minimum amounts for sites on a list of available plots under the so-called land application system. Regular government land auctions were halted in 2004 to support falling home prices.

Yesterday’s auction attracted four bidders, with only two vying for the site from HK$9 billion.

‘The atmosphere was not as good as we expected; there was no aggressive bidding at all,’ said Alnwick Chan, executive director at property consultant Knight Frank LLP.

‘The demand is there but the market is relatively small. There’s speculation that because there are three other sites coming up to auction catering to the middle to upper income groups, they’re saving their resources for that.’

The government will sell two sites in the Kowloon area at auction on Aug 17 and a residential plot in Kowloon Tong district on Aug 31.

Demand for luxury properties is being supported by a lack of new supply and an influx of mainland Chinese buyers, who account for about 20 per cent of local residential transactions this year, Ricky Poon, managing director for residential sales at Colliers International Ltd, said before the auction.

‘This is a normal price; for a luxury site, demand is always there because developers are not taking a lot of risks,’ said James Cheung, a director at the surveyor unit of Centaline Properties Ltd, one of the city’s biggest real estate agencies.

‘There will continue to be a healthy growth in Hong Kong’s property market.’ Nan Fung paid HK$3.42 billion in May for a site in the city’s Tung Chung area in the government’s first land auction in the fiscal year that started April 1. The price was a third less than surveyors’ estimates.

Sun Hung Kai Properties Ltd, the world’s biggest developer by market value, last month bought a site in the Ho Man Tin district for HK$10.9 billion. At HK$12,540 per square foot, it was the highest price paid in a government auction in urban Hong Kong since the market peaked in 1997. The gross floor area for the site is 869,000 square feet.

Luxury homes in Hong Kong are those at least 1,000 square feet or costing at least HK$10 million. — Bloomberg

Source: Business Times, 29 Jul 2010

MORE than 75 per cent of the Hong Leong group’s latest residential project, The Scala, has been sold at prices averaging $1,150 per square foot.

The 468-unit development in Serangoon Avenue 3 was publicly launched yesterday.

Hong Leong said yesterday that the units sold at the 99-year leasehold project are spread across five residential towers that feature one to four-bedroom units ranging from 474 square feet to 2,142 sq ft.

Buyers comprise a mix of Housing & Development Board upgraders and investors, with the majority being Singaporeans.

Betsy Chng, Hong Leong’s head of sales and marketing, attributed the strong response to the project’s location, unique features, finishing and pricing.

The Scala is next to the Circle Line’s Lorong Chuan MRT Station and near several schools, including St Gabriel’s Primary, Yangzheng Primary, Nanyang Junior College, the Australian International School, Stamford American International School and Lycee Francais de Singapour.

It is also close to a bus and MRT interchange at Serangoon Central, and the soon-to-be-opened NEX mega mall.

The project is slated for completion in the first quarter of 2014. Apart from the usual condominium facilities, The Scala will have features such as pavilions with wood-fired pizza ovens and teppanyaki hotplates, a Harvest Garden and a Green Gazebo.

Source: Business Times, 29 Jul 2010