Monday, January 28, 2013

Flipping Alexandra Central units may garner URA’s attention


iProperty.com
Jan 28, 2013

Flipping properties is deemed as the express train ticket to Moneyville for property investors.

Merely a week ago, it was reported that all strata retails units but one in Alexandra Central were sold during its launch, with ground floor space going for a whopping $7,000 psf and above.

One week later, news came in that clearly revealed the intention of some investors who were trying to use flipping to make quick bucks. Listings are already put up on websites and possibly more as we speak. One quick check on CommercialAsia.com, which is iProperty’s sister website, showed serveral shop units from Alexandra Central getting listed for sale.

As observed over the weekend, at least two advertisements of shop units going up for resale were published in the Classifieds section of The Straits Times last Saturday. Consumers have also been receiving text messages from property agents marketing these units at large.

The resale prices of Alexandra Central are daunting. During its launch last Monday, shop spaces were going for a range of $4,000 psf to over $7,000 psf. At present, the resale prices are fetching as high as $8,600 psf for a 10 sq m (107.6 sq ft) unit. Particularly, one 15 sq m (161.5 sq ft) retail unit on the third floor, which was bought on Monday at $710,000, was being marketed for sale at $850,000 on Saturday. This is $140,000 profit in question. Furthermore, another 18 sq m shop (193.8 sq ft), which was purchased from the developer at $833,000, had agents pricing it at $1.02 million.

Evidently, many buyers are now letting the units go as one property agent was quoted saying, “There are many units at Alexandra Central now on the market, you just have to let me know your budget and my guys will find one for you."

The fervent interest behind Alexandra Central may be attributed to the recent news that highlighted the lucrative deals while investing in commercial properties as they are the only sector not hard hit by the harsh cooling measures rolled out by the government.

However, it is worthy to note that the Urban Redevelopment Authority (URA) is constantly keeping a close watch on the commercial property sector if transactions such as in the case of Alexandra Central, rise above its limit and possibly lead to overheating in the market. URA has hinted that it is “monitoring the various segments of the property market closely, including the commercial sector” and that they “will introduce measures if required to moderate investment demand and prevent over-heating in the property market."

Standing on the site of the former SAFRA building in Alexandra Road, Alexandra Central is strategically located next to IKEA Alexandra. Upon completion, the project will feature a 450-room hotel managed by Park Hotel Group which will be integrated with the retail and office space the building offers. Developed wholly by Chip Eng Seng, Alexandra Central is expected to complete its construction by the second quarter of 2016.


Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
Email: marshe_inc@yahoo.com.sg
DTZ Debenham Tie Leung (SEA) Pte Ltd (L3006301G)

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