Chip Eng Seng

[shn]

revelationofpyramids and Greenrookie
Thank you very much for the useful information.

[Share Investor]

Below is taken from a forum on Tower Melbourne. Looks like CES doing well with that project. I was told 70% sold.


Tower Melbourne has had extremely strong demand from buyers both locally and overseas. This tower is a definately goer. I went to the display suite yesterday, had to fight for a timeslot to get a time in, in the afternoon. And this is before the official launch date on 2nd of Feb. So much for there not being much demand for apartments in Melbourne. 226 metres. CBD. Fantastic architecture. What more could you ever want? Now to decide my purchase.


Vested.

[mrEngineer]

Sounds singlish

[Share Investor]

Sounds singlish

Well, I can't verify the identity of the person posting in the forum. But I got the 70% figure from the company. Buyers half Australians and half foreigners.

Vested.

[greengiraffe]

Heard Chip Eng Seng launching retail space at old Safra site at the junction of alexandra and queensway between $6000 to 7000 psf.

And the response was overwhelming.

Unfortunately, the buyers of retail space failed to understand the dynamics of retail at the competitive junction.

Queensway shopping centre - for as long as it remains will be a centre that will sell very competitive sporting goods. Anchor Point which is owned by Fraser Centrepoint REIT has for ages been trying to lift its presence but due to Queensway remains very small local mall - catering mainly to residents of Anchorage and perhaps some spillover crowd from Queensway and Ikea.

Ikea - need no explanation - it sells on its own.

Perhaps the smart money may want to buy shop lots at Queensway and wait for enbloc exercises further down the road.

As for its Melb properties - caution is warranted since buyers can still walk away from their deposits post TOP. Amongst Australia states, Victoria is currently on the down trend with over building in recent years.

A case in recent example is the busting of bubble in Gold Coast Queensland. An iconic tower, The Soul was completed but the developer was put under receivership by Banks after failing to complete the bulk of "off-the-plan" purchases that was dealed in the peak years of 2006/07.

I am not implying that that will happen to Chip but certainly when it comes to Australia properties, never never use the Singapore experience. Just look at St****** and its landmark The Rocks project near Sydney Harbour - took almost 5 years to complete and margins only in the low teens.

[thefarside]

Perhaps the smart money may want to buy shop lots at Queensway and wait for enbloc exercises further down the road.

It is usually very difficult to enbloc properties with retail strata. People with ongoing businesses generating good cashflow would not want to face the hassle of relocating and potentially (actually it is very likely) losing the business permanently - unless the whole place is dying and they want to retire.

[greengiraffe]

Perhaps the smart money may want to buy shop lots at Queensway and wait for enbloc exercises further down the road.

It is usually very difficult to enbloc properties with retail strata. People with ongoing businesses generating good cashflow would not want to face the hassle of relocating and potentially (actually it is very likely) losing the business permanently - unless the whole place is dying and they want to retire.

Then all the more the madness in acquiring strata retail at this Chip Eng Seng retail doesn't make much sense.

Paying more than Orchard Road prices with a stubborn low cost competitor simply doesn't make economic sense in terms of competitive positioning.

Anyway good luck to those with too much money and hopefully Chip Eng Seng can create shareholders' wealth from the deal.

[Share Investor]

Better to invest in ces shares. Ces gives good dividend, at least based on past trend.

Vested.

[mechu]

As for its Melb properties - caution is warranted since buyers can still walk away from their deposits post TOP. Amongst Australia states, Victoria is currently on the down trend with over building in recent years.

A case in recent example is the busting of bubble in Gold Coast Queensland. An iconic tower, The Soul was completed but the developer was put under receivership by Banks after failing to complete the bulk of "off-the-plan" purchases that was dealed in the peak years of 2006/07.

I am not implying that that will happen to Chip but certainly when it comes to Australia properties, never never use the Singapore experience. Just look at St****** and its landmark The Rocks project near Sydney Harbour - took almost 5 years to complete and margins only in the low teens.

Interesting... Thought that buyers will need to secure a housing loan with the bank when buying a property and the full risk will be transferred to the bank in the process.. although only a deposit is made initially by the buyer to the developer, the bank will pay the developer in phases based on the construction progress.. so even if buyers decide to walk away at any point, the developer is not affected unless the bank itself is in financial trouble..

I am not from the real estate industry so I am not sure whether my understanding is correct but I thought this is what happens..

Any resources online that you can direct me to read further on these rules for Australian properties? Can't seem to find any online.

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Big run up today with extremely high volume..

Wondering what is causing the sudden spike.. 7.5% increase from yesterdays closing..

Based on how CES has been buying back shares in small chunks of (1 to 2m at a time in most cases).. doesn't seem like it..

[greengiraffe]

As for its Melb properties - caution is warranted since buyers can still walk away from their deposits post TOP. Amongst Australia states, Victoria is currently on the down trend with over building in recent years.

A case in recent example is the busting of bubble in Gold Coast Queensland. An iconic tower, The Soul was completed but the developer was put under receivership by Banks after failing to complete the bulk of "off-the-plan" purchases that was dealed in the peak years of 2006/07.

I am not implying that that will happen to Chip but certainly when it comes to Australia properties, never never use the Singapore experience. Just look at St****** and its landmark The Rocks project near Sydney Harbour - took almost 5 years to complete and margins only in the low teens.

Interesting... Thought that buyers will need to secure a housing loan with the bank when buying a property and the full risk will be transferred to the bank in the process.. although only a deposit is made initially by the buyer to the developer, the bank will pay the developer in phases based on the construction progress.. so even if buyers decide to walk away at any point, the developer is not affected unless the bank itself is in financial trouble..

I am not from the real estate industry so I am not sure whether my understanding is correct but I thought this is what happens..

Any resources online that you can direct me to read further on these rules for Australian properties? Can't seem to find any online.

---

---

Big run up today with extremely high volume..

Wondering what is causing the sudden spike.. 7.5% increase from yesterdays closing..

Based on how CES has been buying back shares in small chunks of (1 to 2m at a time in most cases).. doesn't seem like it..

Never never use Singapore property experience for Australian properties.

For Australian properties, buyers need to pay 10% down and pay nothing until TPO. Developer will then use the initial "off-the-plan" response to go to the bank to get financing for construction.

In this case, the developer assumes the risks of changes in property market for the time being. While they have recourse to buyers, if the buyers really cannot pay up due to lack of financing as a result of price plunge, then the developers will be at the mercy of their own bankers.

The most recent case is the iconic The Soul project in Gold Coast, Queensland. Google and probably you will have a better understanding of the dynamics. Anyway, Australia property development always book profits on completion.