In 2018 Developers paying ‘almost nothing’ in extension charges.
Developers are paying “almost nothing” in extension charges this year, said Singapore Land Authority chairman Lim Sim Seng on Monday (April 30).
It is an indication of the active property market which includes purchases of replacement homes by those who sold en bloc, said Mr Lim, DBS Bank Singapore country manager.
The previous year’s extension charges or qualifying certificate (QC) penalties paid by developers amounted to about S$50 million, said Mr Lim.
Pacific Mansion sold en bloc for $980m in second-highest deal
Entities controlled by Singapore property tycoon Kwek Leng Beng and his Malaysian billionaire cousin Quek Leng Chan have joined forces for the $980 million purchase of a freehold site in Singapore’s upscale River Valley precinct.
Their acquisition of Pacific Mansion in District 9 marks the biggest collective sale in more than a decade and the second-highest on record, according to CBRE, which brokered the deal.
Singapore-listed GuocoLand, controlled by Mr Quek, announced yesterday that it has successfully tendered for the site with Intrepid Investments and Hong Realty.
Both Intrepid Investments and Hong Realty are majority-owned by Hong Leong Investment Holdings (HLIH), which is effectively controlled by Mr Kwek, though other family members also own stakes in these companies.
GuocoLand and Intrepid Investments each hold a 40 per cent stake in the project, while Hong Realty owns a 20 per cent interest.
Consultants estimate that the land cost for the Pacific Mansion site may translate to a break-even price of $2,530 to $2,800 per sq ft (psf), and a potential selling price of $3,000 to $3,200 psf for the upcoming project.