14 | DEVELOPER & FRACTIONAL


NEWS IN BRIEF Developer show for NRIs


NEWS By Geoff Hadwick


A Mumbai-based developer body is organising an offi cial property exhibition for non-resident Indians in Dubai as interest from expatriates continues to increase. The Maharashtra Chamber of Housing Industry (MCHI) will hold its India Reality Expo 2012 – Dubai from January 12th to 14th. MCHI chief executive Zubin Metha added: “The interest levels amongst NRIs has increased many-fold in the past few months.”


RGI’s Moscow success


DEVELOPER R.G.I. International has now sold 47 apartments at its luxury V Lesu project in Moscow since its October launch, with a further 67 units allocated, subject to mortgage approval. “The majority of the sales have been for the more expensive three-bedroom apartments which are selling for approximately $235,000,” RGI told OPP this week. Alan Hibbert, acting Chief Executive of RGI, told OPP: “We are in the process of bringing a Western Europe style residential development to Moscow where we are using our proven track record of luxury development to create well-designed aff ordable homes.”


Singapore builds spread


SINGAPORE is spreading its wings with developers investing in land on the outskirts of the city in districts such as Senkang, Jurong and Woodlands as a new generation of buyers, especially NRIs (non-resident Indians), seek homes outside of the city centre. ECG Property’s senior district manager Jessie Nathan told OPP: “Many of the (NRI) buyers have been established here in Singapore for a long time, so they are investing in these properties becuse they see a potential price appreciation over time.”


Select group to deliver


THE UAE-based Select Group, the developer behind The Torch, currently the world’s tallest residential tower, announced this month that it is “poised” to deliver more than 1,700 residential units in Dubai Marina as it seems “signs of a gradual recovery in the market.” The total value of the property is Dh1.85 billion.


Property developers in Iskandar, in Malaysia, have reacted positively to the news this month that Singapore is about to impose new tax restrictions on overseas property buyers. Johor Real Estate and Housing Developers Association chairman Simon Heng told OPP that foreigners looking to buy residential property in Singapore, especially for investment purposes, might well travel over the bridge to Malaysia for an alternative investment proposition. “With Iskandar Malaysia progressing


well since its inception fi ve years ago, buyers (foreigners and Singaporeans) are now most probably looking at Johor Baru,’’ he says. He believes that developers with


projects in Nusajaya would benefi t the most as there were no restrictions on property ownership by foreigners, including Singaporeans. Nusajaya is close to the second link crossing, which made it a favourite place for Singaporeans living in Johor Baru but working on the island, he added. Nusajaya comprises seven signature developments – Kota Iskandar (the Johor State New Administrative Centre), Southern Industrial and Logistics Clusters, Puteri Harbour Waterfront Development, EduCity, Medical City, International Destination Resort and Residential Developments. Other fl agship development zones in Iskandar are the Johor Baru City Centre,


www.opp.org.uk | JANUARY 2012 Malaysians like Singapore tax


Shining light | Singapore’s new property tax could bode well for Malaysia’s future


Eastern Gate Development Zone, Western Gate Development Zone and Kulai-Senai. “Rehda members are hoping that


the special treatment accorded to Nusajaya would be extended to other development zones in Iskander as well,’’ Heng told OPP. Elsewhere, Berinda Group sales


manager Lim Sung Heng expected that there would be a spill-over effect from the ruling on the Johor Baru property market probably within the next few months. He said the state government and


other relevant agencies must try hard to make Iskander a preferred destination for property buyers from Singapore. This comes as the Singaporean


Government decided to impose a hefty new 10% cent stamp tax on overseas property investors buying residential property in the city. The authorities have


decided to follow the Chinese lead and take measures to cool down Singapore’s overheated residential property market. The government has said that it


wants “the move to create a stable and sustainable market, after signifi cant price rises in recent times. Prices of private homes are up 16%


from a recent peak in the second quarter of 2008.” The new stamp duty, which took effect


from December 8 2011, will be levied on top of the existing buyers’ stamp duty rules which are stepped. The current rules allow the tax


office to take a 1% fee from the first $180,000 of the purchase price, 2% for the next $180,000 and 3% for everything above $360,000. Permanent residents who already own


a property, and are buying a second or subsequent property will also pay an extra stamp duty of 3%.


UAE handovers poor Bear safe?


The international agency group Cluttons has accused developers based in the UAE of not trying hard enough to hand over the management of apartment blocks. “I don’t think there is a genuine


attempt being made to hand over to the owners,” Graham Yeates, head of owners association management at Cluttons told OPP. “As other revenue streams dry up,


the region as a whole doing much better in 2012 and, it says, “the buzzwords for the residential market are “selective stabilization” as things move towards market maturity.” The agency told OPP that it predicts “a brisk start to business in January 2012.”


Aspen-based fractional club Dancing Bear has found a buyer after being in foreclosure since July. The property has been marketed by


Jones Lang LaSalle since September and had received 14 to 16 bid proposals according to court-appointed receiver of the project James DeFrancia. “There’s clearly a buyer, and they’re


developers see the opportunity of making a profi t from service charges/interim owners association (IOA) so there is little incentive to register the owners association as required.” Cluttons sees Barren | UAE developers must improve


in the process of doing due diligence,” DeFrancia said, adding that the potential buyer is a local developer. German Bank West LB had put $53


million into the project fi ve years ago before foreclosing the property in July this year.


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