Property cartel REDAS pressures gahmen to line it member's pockets with more money...

bic_cherry · Dec 1, 2014

Property cartel REDAS pressures gahmen to line its member's pockets with more money.

Me thinks that any professionalism/ work pride in REDAS is long evaporated. No longer an organisation priding itself for providing good and affordable housing to Singaporeans, REDAS, like some PAP politicians (see below (appended)) are probably filled with rent seekers, out to exploit the poor in the name of 'dignity': basically a financial arms race amongst the rich to see who can exploit the poor most and drive the most flashy luxury car to catch the other's attention if not envy.

Professional organisation members in Singapore seem to be driven by greed and envy: service to humanity has become a long forgotten creed.

Where was Redas when home prices were rising? - Forum Letters Premium News - The Straits Times

The Straits Times, Published on Dec 01, 2014
Where was Redas when home prices were rising?
LAST Thursday's report ("Property sector 'needs govt support'") reads like a case of the Real Estate Developers' Association of Singapore (Redas) wanting to have its cake and eat it, too.
Redas president Chia Boon Kuah warned of grave consequences for the country, noting how property prices have declined amid falling sales in the last four consecutive quarters.
Did Redas make any such warning when property prices ran ahead of the growth in household incomes, and did it ask the Government to take action then?
It was only last year that we saw the second-quarter private residential property price index hitting an all-time high despite a few rounds of cooling measures.
Did Redas not realise that rising property prices caused the public to fear that homes would be beyond their reach, and that many have bought property even though they may not be able to service the housing loans?
The supply of 68,000 completed residential units over the next few years will be built by the association's members.
More properties may have been put on the block due to mortgage defaults ("More homes go under the hammer in weak market"; Nov 21), if not for the cooling measures and the total debt servicing ratio framework.
Khong Kiong Seng
Copyright © 2014 Singapore Press Holdings. All rights reserved.
Where was Redas when home prices were rising? - Forum Letters Premium News - The Straits Times

"If the annual salary of the Minister of Information, Communication and Arts is only $500,000, it may pose some problems when he discuss policies with media CEOs who earn millions of dollars because they need not listen to the minister's ideas and proposals. Hence, a reasonable payout will help to maintain a bit of dignity."
- MP Lim Wee Kiak apologises for comments on pay

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aerobwala · Dec 9, 2014

Re: Property cartel REDAS pressures gahmen to line it member's pockets with more mone

The holding power still very strong. Let us see how long can they hold before further slashing of price.

Hiap Hoe sells Treasure on Balmoral to controlling shareholder for $185m

The Properties comprise the main assets held by Hiap Hoe Super Bowl. Since the sales launch of the Properties in September 2012 (at an initial launch price of between S$2,044 per square foot (“psf”) to S$2,375 psf), the Group has not been successful in selling any of the Properties despite various marketing activities by the appointed marketing agents. The Group’s attempts to sell the Properties have been made even more challenging by the several rounds of cooling measures introduced by the Singapore government which have dampened the local property market and further reduced the pool of potential purchasers in view of the implementation of the total debt servicing ratio which has made it challenging for sellers of residential units with a higher price point. The Directors believe that foreign purchasers in particular, who traditionally make up a majority of the purchasers of high end residential developments in prime districts in Singapore, have been deterred by the Additional Buyer’s Stamp Duties and other property cooling measures, and have refocused their investments to other markets outside of Singapore.

In October 2013, the Group appointed Savills (Singapore) Pte Ltd (“Savills”) as its exclusive marketing agent for the divestment of all the Properties by way of private treaty with a guide price of S$2,100 psf. The Group received a number of enquiries but no formal offer was received.

Subsequently, an Expressions of Interests (“EOI”) exercise for the enbloc sale of the Properties was launched in early July 2014 with a guide price of S$1,850 psf or S$191.4 million for all the Properties. The EOI exercise attracted 45 enquiries and 19 inspections of the Properties by property developers, funds, institution al and high net worth investors. Following the close of the EOI exercise in August 2014, the Group had not received any satisfactory offers and the offers received contained terms and conditions which were not favourable to Hiap Hoe SuperBowl. The highest offer received by the Group for all the Properties was S$1,750 psf or an aggregate price of approximately S$181 million for all the Properties, which represents a price that was 5.4% to 19.8% less than the EOI guide price.

The Proposed Disposal will enable the Group to dispose of the Properties, through the sale of the Sale Shares, at the market value of the Properties as set out in the Valuation Report. Based on the Valuation Report, the current market value of the Properties as at 13 November 2014 is S$185,000,000 (or approximately S$1,789 psf). As at the date of entry into the SPA, such mark et value represents a price for the Properties that is higher than any of the other offers received by the Group for the Properties.Accordingly, the proposed purchase by Hiap Hoe Holdings represents the best offer received by the Group to date for all the Properties.

In light of the foregoing and given the current market conditions in the residential property sector in Singapore, the Directors believe that the Proposed Disposal represents a good opportunity for the Group to dispose of this investment in the Properties at current market value and will enable the Group to deploy the proceeds from the sale for other purposes. As such, the Directors believe the Proposed Disposal to be
in the interest of the Company.

Property cartel REDAS pressures gahmen to line it member's pockets with more money...

bic_cherry

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aerobwala

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