{"id":32395,"date":"2016-10-31T12:00:20","date_gmt":"2016-10-31T05:00:20","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/hiap-hoe-buys-up-unsold-units-at-luxury-condo-to-avoid-hefty-fines\/"},"modified":"2016-10-31T13:11:51","modified_gmt":"2016-10-31T06:11:51","slug":"hiap-hoe-buys-up-unsold-units-at-luxury-condo-to-avoid-hefty-fines","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/hiap-hoe-buys-up-unsold-units-at-luxury-condo-to-avoid-hefty-fines\/","title":{"rendered":"Hiap Hoe buys up unsold units at luxury condo to avoid hefty fines"},"content":{"rendered":"


\nLocated in prime District 9, Waterscape At Cavenagh still has 50 unsold units. (Artist\u2019s impression)
\nTo avoid paying additional extension charges for the 50 remaining units at Waterscape At Cavenagh, the developer of the 200-unit freehold residential project in District 9 had no choice but to be acquired by its controlling shareholder.
\nAccording to an SGX filing last week, the entire share capital of Cavenagh Properties was purchased by Hiap Hoe Holdings for $31.08 million in cash, which is the revalued net asset value of the unsold units.
\nHowever, the properties were appraised by property consultancy Knight Frank as having a market value of $95.47 million on an en bloc basis as at 30 September.
\nDespite different marketing activities and strategies rolled out by various marketing agents, Cavenagh Properties said it was not successful in disposing the leftover units to external buyers amidst the government\u2019s property cooling measures, such as the Total Debt Servicing Ratio (TDSR) and Additional Buyer\u2019s Stamp Duty (ABSD).
\nIn addition, it has to comply with the Residential Property Act\u2019s Qualifying Certificate (QC) rules, whereby all developers with non-Singaporean directors or stockholders must obtain Temporary Occupation Permits (TOP) for their private housing projects within five years, and sell all units within two years thereafter.
\nTo extend the sales deadline, developers must pay the government an additional eight percent, 16 percent and 24 percent of the land purchase price for the first, second and subsequent years, respectively. The amount is pro-rated based on the proportion of unsold units.
\n\u201cAs the project obtained its TOP in September 2014, the group is guided by the deadline of 23 September 2016 to achieve 100 percent sales. It has since paid a fee of $1.19 million to extend the sales period by six months to 23 March 2017,\u201d the statement said.
\nHowever, it went ahead to be acquired by its controlling shareholder as Singapore\u2019s housing market is expected to remain sluggish over the next few months, and the authorities have not provided any clear sign that the cooling measures will be lifted anytime soon.
\n\u201cThe proposed disposal will enable the group to realise a gain of $23.99 million over the carrying value of the properties as at 30 September 2016, while avoiding future additional extension charges of about $1.19 million, $4.75 million and $7.13 million,\u201d it added.
\n\u00a0
\nRomesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email\u00a0romesh@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Hiap Hoe buys up unsold units at luxury condo to avoid hefty fines<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Located in prime District 9, Waterscape At Cavenagh still has 50 unsold units. (Artist\u2019s impression)...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-32395","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-8qv","jetpack-related-posts":[{"id":102684,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/cavenagh-gardens-up-for-en-bloc-sale-at-480m\/","url_meta":{"origin":32395,"position":0},"title":"Cavenagh Gardens up for en bloc sale at $480m","date":"January 4, 2019","format":false,"excerpt":"\r The reserve price for the freehold development in District 9 works out to a land rate of $1,695 psf ppr. (Photo: JLL) Cavenagh Gardens, a freehold residential development along Cavenagh Road in District 9, has been launched for en bloc sale with a reserve price of $480 million, revealed\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":88551,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/8-more-properties-launched-for-en-bloc-sale\/","url_meta":{"origin":32395,"position":1},"title":"8 more properties launched for en bloc sale","date":"May 17, 2018","format":false,"excerpt":"\r Cairnhill Astoria (the red building) in prime District 9 has joined a growing list of properties launched for en bloc sale. (Photo: Colliers International) Singapore\u2019s red-hot collective sales market continues to sizzle with more homeowners jumping on the en bloc bandwagon. 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