Published August 7, 2009

Homes from sold-out projects back on market

Speculators a minority as they shoot for small flipping gains

By EMILYN YAP

	Email this article
	Print article
	Feedback

(SINGAPORE) Some buyers who managed to lay their hands on units at projects sold out recently are trying to get lucky for the second time - by selling what they snapped up, for a profit.

This brings to mind the government's warning last week - that some element of speculation is back in the property market. Industry watchers say, however, that subsales are common for fully sold projects and speculation still remains mild.

Advertisements for subsales at Optima@Tanah Merah have surfaced in the last few days - with owners seeking prices which are at least 5 per cent more than what they paid.

This comes less than a week after all 297 units at the 99-year-leasehold project were taken up in just three days.

Developer TID sold the units at an average price of about $810 per square foot (psf). It had to conduct two rounds of balloting as home seekers descended upon the showflat in droves.

There are also offers for subsales at 8@Woodleigh. Frasers Centrepoint sold all 330 units at the 99-year-leasehold project over a few weeks in June.

According to industry watchers, sellers in the subsale market need to charge a premium of at least 5 per cent to break even. This would cover stamp duty, legal fees and any agent's commission. To earn more, some may set prices which are up to 10 per cent more than what they paid.

But given the market today, those flipping properties would be glad to come out of the deal with $50,000 to $80,000, said ERA Asia Pacific associate director Eugene Lim.

He pointed out, though, that speculation today is 'not excessive'. Every new project will attract a small number of speculators but most buyers today are ready to keep and lease out the property, he explained.

It is when the project is sold out that these buyers may change their minds, he added. 'While some people buy with a medium-term view, because the project is sold out, it presents an opportunity for them to make a quick gain.'

Savills Residential director Phylicia Ang also believes that most buyers do not plan to 'flip' their properties initially. But she noted that if there is profit to be made, some are willing to hear out the offer and may sell later.

She also suggested that not all advertisements may be placed by owners - some property agents may take the initiative to promote units, test market interest and 'gather more leads'.

Both Mr Lim and Ms Ang highlighted that speculation is nowhere as feverish as it was some two years ago. According to Mr Lim, buyers in the subsale market today are more particular - probably looking out for specific units they could not get during the launch.

Rising optimism in the property market seems to be benefiting older projects as well. Casa Merah - which is near Optima and will receive Temporary Occupation Permit soon - has seen prices at its units rise in the last few months. While caveats lodged for units there in February reflected prices of $631-$665 psf, those in July showed prices of $699-$751 psf.

Meanwhile, new launches continue to do well. The 70-unit Airstream at St Michael's Road, for instance, was fully sold through balloting on Wednesday. Previews for Keppel Land's 56-unit Madison Residences have begun, while previews for Allgreen's Viva in Novena will start this weekend.

Published August 13, 2009

Karpal Singh goes on trial for sedition for alleged insult

	Email this article
	Print article
	Feedback

(KUALA LUMPUR) A Malaysian opposition leader went on trial yesterday on charges of sedition for allegedly insulting a royal figure - a case slammed by critics as a government witch hunt aimed at intimidating a resurgent opposition.

No wrongdoing: Singh (in wheelchair) insisted yesterday he had only been voicing his legal opinion

The charges stem from a Feb 6 news conference in which Karpal Singh said that political decisions taken by Sultan Azlan Shah, the titular head of northern Perak state, can be questioned in court.

The statement came amid a power struggle for control of the state government.

According to Malaysian law, any act that provokes hatred, contempt or disaffection against a state ruler is considered sedition, a crime punishable by up to three years in prison.

Singh - chairman of the opposition Democratic Action Party (DAP), a Member of Parliament and a prominent lawyer - has pleaded innocent.

'These sedition charges against Karpal are utterly baseless,' said Elaine Pearson, deputy Asia director at Human Rights Watch. 'This is just an excuse to remove a powerful political opponent.'

Perak used to be governed by a three-party alliance that includes the DAP. But earlier this year, three of its Perak state legislators defected, tipping the balance in favour of the ruling National Front coalition.

The sultan then fired the opposition alliance's administration and asked the National Front to lead the state. Prosecutors said Singh insulted the sultan and committed sedition by questioning the sultan's mandate to appoint a new administration.

Prosecutors called a reporter for the pro-government Utusan Malaysia newspaper who was at the news conference as its first witness yesterday.

Singh insisted that he had only been voicing his legal opinion.

'I can't see anything there which is seditious,' he told reporters. 'In any event, sedition is an outdated piece of legislation. Of course, I'm confident I've done nothing wrong.'

Government lawyer Kamaludin Said denied the charge was politically motivated. He said the prosecution plans to call up to 20 witnesses, mainly journalists who attended Singh's news conference in February.

Human Rights Watch said that the National Front, which has governed Malaysia since Independence, relies on the Sedition Act as well as the Internal Security Act (ISA), which allows indefinite detention without trial, 'to repress free expression and assembly to silence and punish its critics'. The government says such laws are needed in multi-ethnic Malaysia to maintain communal harmony.

Ms Pearson dismissed the argument as a fallacy.

'Malaysians have time and again proven themselves capable of exercising the basic democratic rights to which they are entitled. It's time their government listened,' she said. -- AP

Published August 13, 2009

BNP upgrades banking industry on policies

	Email this article
	Print article
	Feedback

(KUALA LUMPUR) Malaysia's banking industry was upgraded at BNP Paribas, which said positive government initiatives and an improving economy are helping to curb bad debts and revive lending growth.

BNP raised its ratings for Bumiputra-Commerce Holdings Bhd, Malaysia's second-biggest bank, AMMB Holdings Bhd, and EON Capital Bhd to 'buy' from 'reduce'. It increased the rating on the industry to 'positive' from 'negative'.

'A sharp credit deterioration scenario is unlikely to play out, aided by coordinated and targeted assistance by the government,' BNP analyst Ng Wee Siang said in a report yesterday. 'The coast is clear on credit quality' and loan growth is set to strengthen in the coming months, he added.

Malaysia's government has unveiled RM67 billion (S$27.4 billion) of stimulus measures to counter an economic slump and the central bank held interest rates steady at 2 per cent for a third straight meeting last month, saying the economy showed 'signs of stabilising' in the second quarter.

Shares of Bumiputra-Commerce have jumped 83 per cent this year and AMMB 73 per cent, outpacing the FTSE Bursa Malaysia KLCI Index's 35 per cent gain. Bumiputra-Commerce is the second-best performer on the benchmark index this year.

BNP raised its target price on Bumiputra-Commerce to RM14.30 from RM7.50 while AMMB was increased to RM5.20 from RM2.30. EON Capital's target price was raised to RM6.30 from RM2.90, the report said.

It lowered Hong Leong Bank Bhd and Malayan Banking Bhd to 'reduce' from 'hold'. Loan applications in Malaysia jumped 18.3 per cent in June, the biggest monthly gain since August 2008, according to central bank data released on July 31. Approvals gained 10 per cent, it said.

Since September, the Malaysian bank industry's gross non-performing loan ratio has fallen to its post-Asian financial crisis low of 3.9 per cent, BNP's Mr Ng said.

The central bank cut borrowing costs by 1.5 percentage points between November and February to revive growth as gross domestic product shrank 6.2 per cent in the first three months of 2009. The benchmark is at its lowest level since it was introduced in April 2004. -- Bloomberg