Malaysian property developers that have ventured into nearby Singapore are feeling the bite of its sluggish property market and the government’s stringent curbs, according to media reports.
Developers that have entered the republic’s housing market include YTL, Sunway, SP Setia IOI Properties and Selangor Dredging Properties Bhd (SDB). But those that have failed to sell more than half of their residential units are the most severely affected, aid experts.
In particular, SDB has a total of five projects there with a Gross Development Value (GDV) of about S$700 million, revealed its Communications and Corporate Affairs Head Lina Othman.
Of these, Jia and Gilstead Two are completely sold, while between 95 to 99 percent of the units at Okio, The Village and Hijauan on Cavanagh have been taken up.
As for SP Setia, it has Eco Sanctuary and 18 Woodsville at Upper Seranggon. The former has moved 80 percent of its last three blocks, while only five units are up for grabs at 18 Woodsville.
Similarly, YTL’s 13-unit Kasara and 18-unit Sandy Island on Sentosa Cove found buyers for all of its landed villas a few years ago, noted SLP International’s Executive Director David Neubronner.
However, the company decided to postpone the 2015 launch of its project at Orchard Boulevard as it would be hard to sell the units at a good price. The site for the development consisting of 78 luxury condos was purchased for S$435 million or S$2,498 psf ppr in 2007.
As for IOI Properties, it is saddled with two projects with low take-up rates. For instance, less than 30 percent of the 755 units at The Trilinq in Jalan Lempeng were moved by its subsidiary Clementi Development at a price range of S$1,190 to S$1,850 psf.
The 262,828 sq ft site for the project was purchased for S$408 million in January 2012. “That worked out to a cost of S$554.4 psf ppr. Analysts had estimated a break-even cost of S$854 to S$974 psf ppr,” said a source. The development is under construction and is expected to be ready by 2017.
The group also teamed up with Singapore’s Ho Bee Investments for the construction of Seascape, an exclusive project comprising 151 with views over the South China Sea.
Their 50:50 joint venture bought the site for S$459 million or about S$1,360 psf ppr in March 2007. The project was subsequently completed in 2010, but only one-third of its 151 units have been taken up since they were released in 2011 at an average price of S$2,600 psf.