Developers will not be permitted to off load unsold housing units before they are completed if they are facing penalties due to unsold housing stock.
The Controller of Residential Property had been asked by the property firm Sing Haiyi to be in accordance with its proposed sale of City Suites, which is a condominium complex situated in Balestier. Last week the developer stated that its application was denied and so was a subsequent appeal.
The deal was supposed to be completed through the sale of its stake within Corporate Residence, which is the developer of City Suites. The sale was to be made to Ang Cheng Guan Construction, which was the project’s main contractor, and another third party for Hao Yuan Woodlands Ave 12 EC.
Looking at the new launch for Northwave EC. We are confident will launch in 2016.
Northwave EC Causeway Point
In the month of April, Sing Haiyi stated that the intention was to put its holdings up for sale at the price of $16.38 million due to the probability of the levy that could be a result of the Qualifying Certificate for unsold units in North Wave EC.
It has been stated that the development is in possession of 56 units in North Wave EC and that the progress for sales has been relatively slow, sitting at the rate of about 10 percent since the launch took place back in the month of May in the year of 2013.
The Straits Times was informed by the Singapore Land Authority (SLA) that there was a decline regarding the application in order to make sure that the obligations of the developer are fulfilled concerning the requirement to complete the development under a Qualifying Certificate (QC). As stated in the rule, the developer is required to finish a development and receive a Temporary Occupation Permit (TOP) within the time frame of five years from the point of issue of the QC for Northwave Hao Yuan Causeway Point, which foreign developers are under obligation to acquire in order to be able to purchase privatized residential land here in Hao Yuan Gambas EC for Woodlands EC Causeway Point.
An SLA spokesperson informed of the fact that this is not the first occurrence of this type of application being declined.
North Wave Hao Yuan MCC Land
This year is the designated time period for the requirement of the TOP regarding City Suites. A Sing Haiyi spokesperson stated that they are working in close conjunction with the primary contractor to come up with the timeline for the project.
A partner at Rodyk and Davidson by the name of Mr. Lee Liat Yiang suggested that no transfer of a developer’ shares can take place without the initiation of the prior approval of the Controller of Residential Property until the time that the TOP has been proven to be issued or until such a period that all the units have been purchased, whichever comes later, according to the condition of QC.
This stipulation is the same as the situation regarding Government Land Sales (GLS), in which there is an exemption of the requirements of QC.
Woodlands Avennue 12 EC
Concerning these sites, there can no transfer of the shares belonging to the developer until the time of consent of the proper government agency and only when there is a TOP that has been granted.
Even under the conditions that permission is granted for this type of transaction, the condition is that the original shareholders are yet required to maintain control of more than fifty percent of the shares than the developer.
This is put in place so that it will be in accordance for the upholding of the principle of the Residential Property Act in Causeway Point, which causes the prevention of a developer from having the ability to trade in undeveloped residential land.
It was noted by Mr. Lee that there may be a better possibility of achieving approval in Northwave Woodlands when there is the occurrence of Northpoint City extensive financial distress of a situation in which a developer is close to or actually in the realm of involuntary liquidation.
This would provide for the allowance of another party to undertake the development of the site and to put the units up for sale instead of letting things deteriorate.