Sing Holdings

[kbl]

I am expecting Boss Lee to reward shareholders with a higher special dividend next year than 2007.

[CY09]

Hope he offers more than 5cent dividend, the coy can well offer 10 cents if it wants to. 10 cents of dividend is only abt 40M of cash. It has 100M plus of cash & ST equivalent now.

[cyc]

Since Boss Lee is not keen on using surplus cash to do a share buyback, he might as well reward shareholders with an attractive special dividend, unless he wants to reserve ammo for land acquisition. Otherwise, shareholders will start dumping this stock since its obvious that FY14 would surely be weaker than this year's results and sentiment towards property stocks already waning.

[Behappyalways]

They should be preparing to launch the robin site soon and constructtion has been ongoing for a while so they might be able to book some revenue when launch. 2014 most probably will be higher than 2013

[cyc]

Hi Behappyalways,
Is there any confirmation from Boss Lee that the robin site will soon be launched in Dec 2013 or Jan 2014? He had indicated that the sales launch is targeted to be in mid 2014 in the Q3 results announcement. If so, then Q1 & Q2 FY14 results will be weak when compared to the corresponding period in FY13 as they can only rely Robin residence for revenue recognition while Waterwoods revenue can only be recognised upon TOP in 2017. Hopefully, the response to robins' sales launch will be much better than Waterwoods.
For those who have vested interests, it's hard to be happy these days as the share price has been drifting lower after Q3 results. Surprisingly, the Lee family are not buying more shares to support it since their last purchase price of $0.43.5 - $0445 on 18 Feb as
current price of $0.38 is trading at about 36% discount to estimated FY13 NAV of $0.60. Though it's undervalued in my view but there is no catalyst for the price to rebound unless there are positive news.

[Behappyalways]

The mid 2014 date is if the plot ratio is increased. With the resale price for the centre area falling each month and property price at the 'tipping' point, it makes no sense holding on to the robin plot. The robin plot(1.4 plot ratio) has been approved by URA. Recently I have not been to the plot site but my guess is that they should be building the showflat at the moment....

with the changes in EC requirements, it is harder for property developers to make money now........why buy a EC plot and subject yourself to those requirements and can only launch in 15 mths time...hard to have clarity for the next 15 mths.....

maybe company needs to look overseas.....partner with UE E&C or UE...they are decent people.... or that maybe boss lee should consider what Warren Buffet did in the 60s and returning back our money when there is nothing attractive to buy.....

141(38%) units of Waterwoods sold.....2 units could be due to the change in requirements of EC....

(III. Revision of Mortgage Loan Terms

7 Third, the Monetary Authority of Singapore (MAS) will cap the Mortgage Servicing Ratio (MSR) for housing loans granted by financial institutions for EC units bought directly from property developers at 30% of a borrower’s gross monthly income. This is in line with earlier measures introduced by the HDB and MAS to encourage financial prudence among buyers of public housing. It discourages EC buyers from over-stretching their finances and supports an affordable and sustainable EC market.

8 The 30% MSR cap will apply to EC purchases where the Option to Purchase is granted on or after 10 Dec 2013.)

[Behappyalways]

10:13:46 buy up 20 lots 385

11:42:52 buy up 40 lots 385

11:42:52 (same time as above) throw down 6 lots 380

11:45:23 throw down 1 lot 380

Algorithmic trading???

[kbl]

Good morning Every1

Pray hard Boss Lee dont anyhow buy.

<vested>



10 Dec 13
Two residential sites launched for collective sale
Eunosville back on the market joined by Jervois Gardens for sale by tender

HAVING had its maiden collective sales attempt stymied by the introduction of the total debt servicing ratio (TDSR) framework, Eunosville is back on the market for a second run. Accompanying it is Jervois Gardens, which was also launched for collective sale by tender yesterday.

The 330-unit Eunosville, located opposite Eunos MRT Station, is being put on the market for a minimum price of $688 million, similar to its initial collective sale attempt in June.

Including estimated differential premiums of $163 million payable to top up the site's lease from a balance term of around 74 years to 99 years, and intensification of use (subject to approval from the relevant authorities), this translates to about $806 per square foot per plot ratio (psf ppr) on the potential gross floor area (GFA), said Jones Lang LaSalle, the project's sole marketing agent. It added that the higher estimated differential premium this time is due to the increase in development charge rates from Sept 1.

Eunosville was built in the late 1980s by the former Housing and Urban Development Company (HUDC), and was subsequently privatised in 2011. It has a land area of about 376,712 sq ft and is zoned "residential", with a gross plot ratio of 2.8 under the Master Plan 2008 and Draft Master Plan 2013. The site could potentially yield 1,000 units with an average size of 1,100 sq ft.

Mr Singh said developers have the option of dividing the plot into two or more parcels, and can expect to sell new units at $1,400-1,550 psf, based on an estimated break-even price of about $1,200 psf. Homeowners can expect to receive sales proceeds of more than $2 million each, based on the minimum asking price.

Meanwhile, Jervois Gardens, a freehold residential project, is going on the market with an asking price of about $72 million.

This works out to about $1,510 psf ppr assuming no development charge payable, and subject to baseline confirmation. If the developer chooses to include the additional 10 per cent GFA allowed for balcony space, this works out to about $1,374 psf ppr, said Colliers International.

Measuring about 34,038 sq ft, the site has a plot ratio of 1.4, and can be developed into a five-storey development comprising about 65 apartment units of 800 sq ft each, subject to approval by the relevant authorities.

"This small freehold site offers developers a quick turnaround time. Coupled with the excellent location, the site offers many opportunities and investment potential for the successful bidder," said Tang Wei Leng, executive director of investment services at Colliers International,

Selling prices of the nearby RV Residences, RV Edge and The Montana are in the region of $1,900-2,250 psf, while new launches, such as leasehold developments Mon Jervois and Echelon, also achieved selling prices as high as $2,474 psf, she noted.

Said Mr Singh: "The market is adjusting to life post-TDSR. We see it beginning to find its footing at a price point that is a notch below pre-TDSR levels, with the likelihood of stability thereafter especially in the premium mass-market sector.

"This is backed by high liquidity and savings, continued increase in population, albeit at a slower pace, and a lack of attractive alternative investments for many households. Consequently, specific projects that are priced sensitively and enjoy unique selling points will continue to sell well. This was clearly evident in the case of Duo Residences and Alex Residences," he added.

06 Dec 13
Median COV for resale flats at lowest in 4 years
Nov figure of $8,000 lowest since July ‘09; 97 units sold below valuation: SRX

[SINGAPORE] The market for Housing and Development Board (HDB) resale flats continued to weaken last month, with median cash-over-valuations (COVs) falling to their lowest level in more than four years.

Median COVs fell 30.1 per cent to $8,000 in November, according to flash estimates from the Singapore Real Estate Exchange (SRX), from $11,444 the month before.

This is the first time that the cash premium fell below $10,000 since July 2009. COVs have consistently declined through 2013 from a peak of $35,000 in January.

"COV continued to fall and we are seeing more flats exchanging hands for zero COV or below valuation," said Eugene Lim, key executive officer at ERA Realty.

Overall, on the month, SRX expects an estimated 1,051 resale flats to have been sold in November, down from the 1,187 units the month before.

SRX data showed that 97 resale flats sold last month were transacted below their valuation price, higher than the 82 units in October. Sengkang, Choa Chu Kang, and Jurong West had the most resale HDB flats sold below valuation in November.

The overall HDB resale price index in November dipped 0.6 per cent from October to 146.9 - the lowest level since last September.

Mr Lim attributed the weak performance overall to a tighter mortgage servicing ratio, as well as other policies such as allowing singles to buy Build-to-Order (BTO) flats, a three-year wait before new permanent residents can buy a resale flat and an increasing supply of new flats.

In the private residential sector, resale activity was lacklustre as well.

Resale prices for non-landed private residential units are estimated to have fallen 1.5 per cent from the previous month to 171.5 in November - which would make it the third straight month of decline.

"Prices have continued to soften and will continue to soften with all the property cooling measures snowballing and upcoming supply," said Mr Lim.

All three regions saw price drops, led a by 2 per cent decline in the Core Central Region, followed by a 0.9 per cent dip for Outside Central Region and a 0.7 per cent loss in Rest of Central Region.

An estimated 387 non-landed homes were moved last month, 22.9 per cent lower than the 502 units in October.

[CY09]

One thing I don't quite like about Sing Holdings is their insistence to sticking to building units that are relatively big (comparing Lush Acres to Waterwoods). This increase the quantum of the housing unit price. Sing holdings should stay in their niche of luxuryand not consider going into the mass market units unless they are willing to change their philosophy.

This is because mass market property buyers are more price sensitive given the prevailing govt regulations and their limited income

[Behappyalways]

I think it is hard for inward looking Singapore property developers now. I read in the news that with the new EC requirements, an income of $10,000 would allow you to get a loan of $600,000. If land cost is around $350psf and build up cost around $250psf then a 1000 square feet EC unit will have a build up cost of $600,000. This meant that either the size of the unit have to come down a lot or that land cost got to come down a lot......

Lee might have to 'forgo' the property market for a few years and wait for opportunities while 'harvesting' the Waterwoods and Robin plot of land. Or look overseas......maybe it is time to delist and return cash.......

http://www.channelnewsasia.com/news/busi...18184.html

(waterwoods and skypark residences and the earlier ECs if I am not wrong are not affected by the resale levy for second-timer applicants...)

(II. Resale Levy for Second-Timer Applicants

5 Second, we will now require second-timer applicants who buy EC units directly from property developers to pay a resale levy, similar to second-timer applicants who buy BTO flats. The new requirement will be applied to EC land sales which are launched on or after 9 Dec 2013, including those where the tenders have not closed.

6 Currently, second-timer applicants who buy EC units directly from property developers benefit from the lower EC prices arising from the initial eligibility and ownership restrictions imposed on EC purchases. However, they do not need to pay a resale levy. The alignment of treatment with second-timer applicants who buy BTO flats will ensure greater parity. )