Tell tale signs of what is to come

The fourth largest buyer of en-bloc sales property last year, who reportedly scoop up close to $825 million worth of en-bloc sales in 2007, has been delaying the completion of a few selected deals.

The relatively new property firm, which was registered in 2002, has been delaying payments due to the respective owners. Payments of well over $1 million each per owner has been delayed for owners of both Pender court condominium and Tulip garden. 

Completion for tulip garden, which was due late next month, had already been postpone twice, first to 23rd July and and to 7 Aug. Extensions has also been requested for the payment of the last 5%, which was usually made upon owners vacating their homes.

For the benefit of those not familiar, the usual practise of payment for en-bloc sales is 5% deposit when a sale is done. Progessive payments were made during the different stages of the transaction and towards the final stage of completion for the sale, 95% of the compensation would have been paid out, leaving the balance 5% to be made when the owners vacate their homes.

It has been understood that the deadline for the 2nd 5% payment supposingly scheduled for 13th Mar 08 had been delay time and time again, to 7th Apr, then 5th May and now 7th Jun.

Pender court, which was suppose to complete its sale on 25th Feb 08, had been postponed first to middle of Mar and now further extended to 24 Apr 08.

Sources said the company is committed to completing the two purcahses and just needs more time to arrange funding.

For the 1st quarter of this year, there was only one relatively small transaction for en-bloc sale, as compared to some 25 successful deals done over the same quarter last year. If this is still not tell tale signs of what directions the market is moving , I don’t know what is.

Despite all the hype up news about growth and optimistic market conditions, we can probably make a better judgement once the 2nd quarter results is out from the relevant authorities in time to come.