MCC Land and URA respond on no-sale licence at Sceneca Residence
By Cecilia Chow
/ EdgeProp Singapore |
The sales gallery and actual site of Sceneca Residence at Tanah Merah Kechil Link (Source: Samuel Isaac Chua/EdgeProp Singapore)
SINGAPORE (EDGEPROP) - The sales gallery of Sceneca Residence at Tanah Merah Kechil Link has been set up for launch and construction on the site has begun. However, the 268-unit condominium development with 19 strata-titled commercial units has yet to be launched.
This is because URA’s Controller of Housing (COH) has issued the developer, MCC Land (TMK) Pte Ltd, with a no-sale licence on May 12. “COH issued a no-sale licence to MCC Land (TMK) Pte Ltd for its new project at Tanah Merah Kechil as the company had failed to meet the requirements for a sale licence, which includes demonstrating a track record of completing past projects satisfactorily,” says a URA spokesperson in an email response to queries from EdgeProp Singapore.
MCC Land (TMK) Pte Ltd is an entity of MCC Land, the property development arm of MCC Singapore, which is in turn a subsidiary of Beijing-headquartered state owned enterprise China Metallurgical Group Corp (MCC Group).
According to an MCC Singapore spokesperson, URA has issued the no-sale licence for the project at Tanah Merah Kechil Link “because it has yet to meet the requirements of a sale licence”.
Sceneca Residence at Tanah Merah Kechil Link will have 268 condominiums and 19 strata commercial units (Photo: Samuel Isaac Chua/EdgeProp Singapore)
The MCC Singapore spokesperson adds that it will be applying for a sales licence in October 2022, and “pending a successful sales licence being issued after our application, we will launch as soon as we can thereafter”.
URA says that the COH takes various factors into consideration when assessing any application for a housing developer’s licence, including the developer’s track record in the development of housing projects. “Where necessary, the COH may issue a licence with conditions to ensure that the interests of home buyers are duly protected,” says the spokesperson.
For example, the COH may require the developer to obtain CONQUAS certification for the project to be licensed, according to the spoksperson. "This is to give home buyers assurance that “their housing units are constructed and finished to a reasonable standard of quality," says URA.
The COH may also issue a no-sale licence to prohibit the sale of units until the developer is able to meet requirements for a sale licence, continues the URA spokesperson. “A no-sale licence allows the developer to commence construction for the housing project but prohibits the sale of units without prior approval from the COH.”
While the no-sale licence prohibits the developer from launching the project, it is still able to proceed with construction of the project (Photo: Samuel Isaac Chua/EdgeProp Singapore)
The no-sale licence is also specific to the project at Tanah Merah Kechil Link, and will have no bearing on MCC Land’s other recent launch, One Bernam. The project at Tanjong Pagar, with 351 condominium units, 13 serviced apartments and two-storeys of commercial space, was launched in May last year. To date, 37% of the units have been sold at an average price of $2,464 psf, based on caveats lodged with URA Realis as at July 20. (Find Singapore commercial properties with our commercial directory)
Also launched in May last year is the 413-unit executive condo Provence Residence at Canberra Crescent. The project was fully sold as of early July at an average price of $1,174 psf, based on caveats lodged.
MCC Land had won the site at Tanah Merah Kechil Link at the end of October 2020, after outbidding 14 other developers. It purchased the 99-year leasehold, 21,528 sq ft site for $248.99 million ($930 psf per plot ratio). The new project will be linked to the Tanah Merah MRT station on the East-West Line.
The government land tender was part of a batched tender process, which saw the executive condo (EC) site at Yishun Avenue 9 close on the same tender. Sing Holdings was awarded the executive condo site at Yishun Avenue 9 with a bid of $373.5 million ($576 psf ppr). The new EC project there, the 616-unit North Gaia, was launched in April this year. To date, 161 units have been sold at an average price of $1,300 psf.
The hoarding showing some of the upcoming offerings at the future commercial podium of Sceneca Residence (Photo: Samuel Isaac Chua/EdgeProp Singapore)
MCC Land is no stranger to Singapore, having developed residential projects here since 2010. Projects completed by MCC Land over the past four years include The Poiz Residences with 731 units which sits on top of commercial podium Poiz Centre (completed in 2018); the 626-unit The Alps Residences (completed in 2019); the 358-unit executive condo (EC) Northwave (completed in 2019); and the 736-unit Queens Peak (completed in 2020).
MCC Singapore also has a construction arm, and recent projects it’s involved in include Changi East Depot, the recently sold-out 1,862-unit Normanton Park by Kingsford Development, and Bedok South Station on the Thomson-East Coast Line.
MCC Land is not the first to be hit by a no-sale licence. Just three years ago, Normanton Park was also issued with a no-sale licence. COH only issued Kingsford Huray Development with a sale licence in late November 2020.
However, Kingsford Huray sold out all its 1,862-units within 18 months, following its launch in January 2021. MCC Singapore is handling the construction of the project which is scheduled for completion in late 2023.
The new development Sceneca Residence will be linked to the Tanah Merah MRT station (Source:EdgeProp Landlens)
Unlike Normanton Park, where the launch was delayed for almost two years, there is still a possibility that Sceneca Residence could be launched for sale in 2022, as long as the developer meets COH criteria for a sale licence, comments Mark Yip, CEO of Huttons Asia.
Back in 2012, Chinese developer Hao Yuan Investments was also told to halt the sale of units at its 653-unit Forestville executive condo (EC) in Woodlands. This was after 1,201 applicants had balloted for units on the first day of sales. However, the developer had to close its showflat and was not allowed to issue any options to purchase.
This was because Hao Yuan had proceeded to launch the project even though changes to its development plans had not been approved by COH. The developer was only allowed to re-open its showflat and commence sales six months later in June 2013. This was after COH was “satisfied” that necessary approvals for the project’s development plans were given, and that the plans in the sales brochures were in accordance with the approved plans.
Check out the latest listings near Sceneca Residence, Tanah Merah Kechil Link, Tanjong Pagar, Provence Residence, North Gaia, The Poiz Residences, Poiz Centre, The Alps Residences, Northwave, Queens Peak, Forestville, Normanton Park, Tanah Merah MRT station
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