April 2011

Volume 1 Issue 3

REAL ESTATE NEWS AT A GLANCE

“DOWNTREND IN PROPERTY LOANS.”-The Star S P SETIA ENTERS SINGAPORE WITH

(6/4/2011) REDEVELOPEMENT OF OLD FLATS-
On November 2nd, 2010, the central bank announced a
theedgemalaysia.com (15/4/2011)
70% loan-to-value (LTV) cap on a borrower's third and S P Setia Bhd. is making its venture into Singapore.
subsequent house-financing facility, which means that The developer has proposed the purchase of 27 strata
homebuyers would have to pay 30% down payment of the units in Leong Bee Court for S$65 million (RM159
purchase price. A statement by the central bank (Bank million) with the plan to redevelop the property,
Negara) (The Star, 16/4/2011) says the 30% down currently comprising flats, into residential
payment requirement was put in place to curb speculative apartments. S P Setia said its subsidiary S P Setia
activity in the property market and to promote the International (S) Pte Ltd has entered into a sales and
continued affordability of homes for the general public. purchase agreement to acquire the 27 strata units,
located at Woodsville Close for S$65 million or
S$24 per sq ft of gross floor area. S P Setia said it
planned to redevelop the 0.68-acre piece of land into
“GRADUAL RISE IN PENANG PROPERTY PRICES a multi-storey residential apartment building with an
SEEN.” –The Star (11/4/2011) expected gross development value (GDV) of S$130
GEORGE TOWN: The rise in residential property prices million. The development is expected to begin in
in Penang will be gradual this year, according to real estate 2012 and complete in approximately three years.
valuers. Dr. Teoh Poh Hoa, the director of Henry Butcher
(Singapore Map of the redevelopment location-Google)
Malaysia (Penang), stated that the rise of prices is between
10%-20% in the year of 2010. He added that
condominiums in Penang are now facing competition from
overseas properties, where prices had dropped
significantly. Sr. Michael Geh, a Senior Partner of Raine &
Horne International Zaki + Partners Sdn. Bhd. (Penang),
predicted that the residential property prices would
increase following the pattern of last year’s. The
anticipation that the interest rate increase for the housing
loan result in developers to change their tactics: to target
bulk buyers-those who are willing to buy three to ten units
at once.

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