Nov 30, 2009
Eunos HDB lift woes unresolved
Residents unhappy with lift shafts blocking homes shoot down suggested changes
By Ang Yiying
THE offer was laid on the negotiation tables by the HDB. But a group of Eunos residents who have been unhappy for years over external lift shafts which block their homes are refusing to budge.
Some of the 42 affected flat owners in Blocks 411, 415 and 417 in Eunos Road 5 refused to accept any of the four options offered over the weekend by the HDB in its latest bid to solve the problem.
Some of them crossed out all the options with marker pens and wrote on the form that they were still not happy with the olive branches offered.
Some want the offending lift shafts totally torn down instead.
These Eunos residents face a rather unique problem because of the way the three blocks were constructed. Each block is in a U-shape and the two staircases are located at both ends of the U while existing lifts are located in the middle.
Because odd-numbered floors do not share a common corridor - the building combines double-storey maisonettes with single-storey corner units - just upgrading the existing lift shafts was not sufficient to give all units lift access.
When the estate went through a lift upgrading programme which started in early last year, the two additional lift shafts per block could not be built facing a staircase like how it is done with most other blocks.
The new shafts ended up blocking residents' flats from sunlight and wind, making their homes dark and hot. They have had to switch on lights and air-conditioning during the day, increasing their utility bills. One resident even reported mildew growing on his walls.
Since 2006, some of the 42 flat owners have been taking on the HDB since they found out where the new lifts would be positioned. They have had numerous meetings with the HDB and the area's Member of Parliament Ong Seh Hong.
At a discussion last month, it was agreed that the project consultants to the lift upgrading works would come up with several options on tweaking the designs of the lift shafts. But at a survey conducted over the weekend on residents' preferred options, most residents who came by to look at the mock-ups were still unhappy.
Some of them surrounded HDB's deputy director of upgrading programmes management Chee Kheng Chye last Saturday morning, firing questions at him. The questions included why the lift shaft was built blocking most of the front door and one bedroom unit, when in a brochure given out to residents, the lift shaft had appeared different on the floor plan. The diagram, explained Mr Chee, is schematic and not drawn to scale.
Residents said the suggested changes were too minor to make a real difference.
One design suggested replacing part of a newly constructed wall linking the lift shaft to the corridor with aluminium fins to improve the ventilation and lighting. But as the fins are tilted at an angle to prevent people from looking into affected homes, residents said it did not make much difference. Yet, not doing so would compromise their privacy - the windows would expose their homes, including the bedroom, to the full view of anyone using the lifts.
Retiree Chew Keng Woh, 64, who rejected all the options, said: 'They have to give us an alternative, then we can make suggestions.'
Corporate planner Khng Hwee Peng, 40, who also said no to all the options, said: 'I wouldn't go to the extreme of tearing down the whole thing but we're still hoping that they will come up with a solution to add ventilation and light.'
Others, like retiree Eng Ah Hee, 63, suggested the HDB buy back their flats so they can relocate elsewhere. They said the value of their flats have been affected.
While the HDB had earlier said it would proceed with only options picked by a majority of the affected residents, it said yesterday that it would be referring the survey results to the working committee and the area's MP to decide what to do next.
Dr Ong said he hoped residents would consider the choices offered, saying that the project had been delayed for six months while solutions were explored. 'You cannot say the HDB has been short of trying,' he said.
The lift upgrading was scheduled to be completed by the first quarter of next year but now, it is likely to be done in the last quarter instead.
But at least one affected resident will be choosing from existing options. Madam Asia Mahwan, 44, said that if the project continues to be delayed and left as a construction site, the dust and debris would be a continuing inconvenience. 'We have no choice. We have to compromise...I don't think HDB will pull down the lift shafts.'
ayiying@sph.com.sg
Monday, November 30, 2009
BT : Dubai's woes could hit the fragile US real estate market
Business Times - 30 Nov 2009
Dubai's woes could hit the fragile US real estate market
Dubai World, with US$59b of debt, set off a global stock market selloff last week
(NEW YORK) Dubai's debt woes could further unhinge an already fragile US commercial real estate, as it illustrates the importance of that tiny country to global investors in an increasingly interconnected world.
A state-owned investment conglomerate Dubai World, with US$59 billion of liabilities, set off a global stock market selloff last week after it said it wants to restructure its debt, including at its property subsidiary Nakheel.
'This downturn has had more of a global impact,' said Tony Ciochetti, chairman of Massachusetts Institute of Technology's Center for Real Estate in Cambridge, Massachusetts.
'As I try to explain to my students, with a global economy, we're all attached at the hip financially in some way, shape or form,' he added.
The Dubai news also cast doubt over the strength of the fledgling US economic recovery, and the prospects for a bottoming of property prices.
On Friday alone, the Dow Jones US Real Estate Index fell 2.9 per cent, nearly twice the decline of broader US market indexes. 'Dubai may have to unload some very prestigious properties at distressed prices and this will drive the price of all commercial real estate lower,' wrote Richard Bove, a banking analyst at Rochdale Securities in Lutz, Florida.
In the US, Dubai World's portfolio includes several well-known properties, and the fallout could have a larger impact on the entire real estate market.
The company is a partner with casino operator MGM Mirage in the US$8.5 billion CityCenter project, which would add 6,000 rooms to a Las Vegas Strip gambling corridor already saturated with unoccupied hotel rooms.
Nakheel, perhaps best known as the developer of Dubai's palm-shaped islands, also carries the Mandarin Oriental and W hotels in New York in its portfolio, and has a 50 per cent stake in the Fontainebleau Miami Beach resort.
And, through its Istithmar affiliate, Dubai World controls the upscale retailer Barneys New York Inc.
The main threat to US commercial property from Dubai World woes may be 'potential for contagion', said Sam Chandan, chief economist at Real Estate Econometrics LLC in New York. 'It has the potential to spill over into the broader perception of real estate development and real estate as being a very risky area for exposure,' Mr Chandan said.
Many have already been burned.
US commercial real estate values have already fallen 42.9 per cent from their 2007 peak, Moody's Investors Service said. Last month, delinquencies on US commercial real estate loans that were packaged into commercial mortgage-backed securities reached 4.8 per cent, more than six times the year earlier level, according to Trepp LLC in New York.
In a Nov 23 report, Moody's analyst Nick Levidy said prices could bottom at 45-55 per cent below their peak, implying an additional 5-28 per cent decline, but in a 'stress case' could drop 65 per cent from their peak. Like US investors, foreign investors were enticed through much of this decade to buy US real estate aided by cheap credit and the hope that property prices would steadily rise for a long time.
Currency fluctuations also provided a boost. And the US dollar lost about one-third of its value against a basket of currencies since late 2002, making it easier for foreign investors to scoop up US real estate even when valuations grew too rich for investors at home.
Dubai World's holdings go far beyond real estate. It has a 20 per cent stake in Canada's Cirque du Soleil, and also invests in the global bank Standard Chartered Plc and New York boutique investment bank Perella Weinberg Partners.
Other investments go farther afield - or under water. Dubai World is suing a former executive in a case arising from a wayward foray into submarine financing. But Mr Ciochetti suggested that it is premature to quantify Dubai World's impact on US commercial real estate.
'It is hard to focus on any one particular participant and then generalise about the whole market,' he said. 'It illustrates that very few places and participants in the commercial real estate market are totally exempt from the global economic crisis.' - Reuters
Dubai's woes could hit the fragile US real estate market
Dubai World, with US$59b of debt, set off a global stock market selloff last week
(NEW YORK) Dubai's debt woes could further unhinge an already fragile US commercial real estate, as it illustrates the importance of that tiny country to global investors in an increasingly interconnected world.
A state-owned investment conglomerate Dubai World, with US$59 billion of liabilities, set off a global stock market selloff last week after it said it wants to restructure its debt, including at its property subsidiary Nakheel.
'This downturn has had more of a global impact,' said Tony Ciochetti, chairman of Massachusetts Institute of Technology's Center for Real Estate in Cambridge, Massachusetts.
'As I try to explain to my students, with a global economy, we're all attached at the hip financially in some way, shape or form,' he added.
The Dubai news also cast doubt over the strength of the fledgling US economic recovery, and the prospects for a bottoming of property prices.
On Friday alone, the Dow Jones US Real Estate Index fell 2.9 per cent, nearly twice the decline of broader US market indexes. 'Dubai may have to unload some very prestigious properties at distressed prices and this will drive the price of all commercial real estate lower,' wrote Richard Bove, a banking analyst at Rochdale Securities in Lutz, Florida.
In the US, Dubai World's portfolio includes several well-known properties, and the fallout could have a larger impact on the entire real estate market.
The company is a partner with casino operator MGM Mirage in the US$8.5 billion CityCenter project, which would add 6,000 rooms to a Las Vegas Strip gambling corridor already saturated with unoccupied hotel rooms.
Nakheel, perhaps best known as the developer of Dubai's palm-shaped islands, also carries the Mandarin Oriental and W hotels in New York in its portfolio, and has a 50 per cent stake in the Fontainebleau Miami Beach resort.
And, through its Istithmar affiliate, Dubai World controls the upscale retailer Barneys New York Inc.
The main threat to US commercial property from Dubai World woes may be 'potential for contagion', said Sam Chandan, chief economist at Real Estate Econometrics LLC in New York. 'It has the potential to spill over into the broader perception of real estate development and real estate as being a very risky area for exposure,' Mr Chandan said.
Many have already been burned.
US commercial real estate values have already fallen 42.9 per cent from their 2007 peak, Moody's Investors Service said. Last month, delinquencies on US commercial real estate loans that were packaged into commercial mortgage-backed securities reached 4.8 per cent, more than six times the year earlier level, according to Trepp LLC in New York.
In a Nov 23 report, Moody's analyst Nick Levidy said prices could bottom at 45-55 per cent below their peak, implying an additional 5-28 per cent decline, but in a 'stress case' could drop 65 per cent from their peak. Like US investors, foreign investors were enticed through much of this decade to buy US real estate aided by cheap credit and the hope that property prices would steadily rise for a long time.
Currency fluctuations also provided a boost. And the US dollar lost about one-third of its value against a basket of currencies since late 2002, making it easier for foreign investors to scoop up US real estate even when valuations grew too rich for investors at home.
Dubai World's holdings go far beyond real estate. It has a 20 per cent stake in Canada's Cirque du Soleil, and also invests in the global bank Standard Chartered Plc and New York boutique investment bank Perella Weinberg Partners.
Other investments go farther afield - or under water. Dubai World is suing a former executive in a case arising from a wayward foray into submarine financing. But Mr Ciochetti suggested that it is premature to quantify Dubai World's impact on US commercial real estate.
'It is hard to focus on any one particular participant and then generalise about the whole market,' he said. 'It illustrates that very few places and participants in the commercial real estate market are totally exempt from the global economic crisis.' - Reuters
BT : Public debt threatens world economy
Business Times - 30 Nov 2009
Public debt threatens world economy
Debt explosion may even trigger new wave of recession
(PARIS) The debt dilemma confronting Dubai has thrown into sharp relief a new threat to the financial health of rich countries that have borrowed and spent heavily to escape recession and must now pay up.
Dubai, a once-thriving Gulf emirate, has sent world markets into a tailspin with an acknowledgement it will need a six-month moratorium on about US$59 billion worth of debt owed by its sprawling conglomerate Dubai World.
But Dubai is hardly alone in having come to the uncomfortable conclusion that its Biblical seven fat years are over.
The Organisation for Economic Cooperation and Development (OECD) has warned that the world's 30 leading industrialised economies will see their indebtedness grow to 100 per cent of output in 2010, a near doubling from the percentage 20 years ago.
Japan's public debt is forecast to hit 200 per cent of output next year. Comparable projections are 127.3 per cent in Italy and 111.8 per cent in Greece.
The debt weighing on national budgets will have soared by up to 45 per cent worldwide in the period from 2007 to 2010, leading ratings agency Moody's estimated on Wednesday.
'Preliminary estimates suggest that the total stock of sovereign debt will have risen by as much as 45 per cent or US$15.3 trillion from 2007 to 2010,' Moody's analyst Jaime Reusche said in a statement.
This is 'over 100 times the inflation-adjusted cost of the Marshall Plan', the huge US investment programme launched to revive Europe after World War II, he added.
Moody's estimated in a report that the total global debt in 2010 would reach more than US$49 trillion.
The members of the G-7 grouping of rich countries will account for more than three-quarters of the increase, 'as their fiscal accounts have been hit hardest by the crisis', Mr Reusche said. 'As growth turns negative in 2009 for most countries, the relative debt load becomes harder to bear.'
At the Center for European Policy Studies in Brussels, economist Cinzia Alcidi said: 'A debt equivalent to 100 per cent of gross domestic product means that everything produced in the course of a year will have to go toward reimbursement. Are governments in a position to do that?'
The fear is that if financial markets begin to doubt the ability of countries to pay what they owe, they could steer clear of official debt instruments - such as treasury bonds - and thereby deprive countries of fresh cash.
'If the debt continues to grow, it's not hard to imagine a country having trouble securing finance,' said Jean Pisani-Ferry of the Bruegel think-tank in Brussels.
Other analysts have warned that heavily indebted governments could see their credit ratings lowered, raising the cost of critical borrowing.
Under such a scenario, governments would be tempted to raise interest rates offered to national creditors, thus intensifying the debt burden.
'That's what makes debt explosive,' noted Michel Aglietta of the research group Cepii.
Economist Daniel Fermon of the bank Societe Generale has warned that in an 'extreme case', a debt explosion could trigger a new wave of recession.
In principle a return to robust economic growth should reduce the need for public borrowing, although economists caution that that may not happen in the current climate where a weak recovery is forecast.
The weight of debt can also be eased if inflation rises faster than interest rates. But Mr Aglietta of the Cepii institute said higher inflation can erode consumer spending, triggering 'a flight of private capital toward countries with lower inflation'.
The alternative, according to Bruegel's Mr Jean-Pisani Ferry, is to 'raise taxes or cut public spending'. But both the OECD and the International Monetary Fund have stressed that too abrupt a clamp-down on spending could snuff out recovery.
Mr Aglietta said governments should try to reassure credit markets by 'signalling in advance their spending cuts or tax increases'. For the moment, however, the message to the markets from Europe is mixed.
Germany plans to cut taxes, Spain is preparing to raise them, the Netherlands sees spending cuts in 2011 while France has ruled out any tax hike. -- AFP
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Is the party over? Dubai has sent markets into a tailspin with an acknowledgement it will need a six-month moratorium on US$59b worth of debt owed by Dubai World
Public debt threatens world economy
Debt explosion may even trigger new wave of recession
(PARIS) The debt dilemma confronting Dubai has thrown into sharp relief a new threat to the financial health of rich countries that have borrowed and spent heavily to escape recession and must now pay up.
Dubai, a once-thriving Gulf emirate, has sent world markets into a tailspin with an acknowledgement it will need a six-month moratorium on about US$59 billion worth of debt owed by its sprawling conglomerate Dubai World.
But Dubai is hardly alone in having come to the uncomfortable conclusion that its Biblical seven fat years are over.
The Organisation for Economic Cooperation and Development (OECD) has warned that the world's 30 leading industrialised economies will see their indebtedness grow to 100 per cent of output in 2010, a near doubling from the percentage 20 years ago.
Japan's public debt is forecast to hit 200 per cent of output next year. Comparable projections are 127.3 per cent in Italy and 111.8 per cent in Greece.
The debt weighing on national budgets will have soared by up to 45 per cent worldwide in the period from 2007 to 2010, leading ratings agency Moody's estimated on Wednesday.
'Preliminary estimates suggest that the total stock of sovereign debt will have risen by as much as 45 per cent or US$15.3 trillion from 2007 to 2010,' Moody's analyst Jaime Reusche said in a statement.
This is 'over 100 times the inflation-adjusted cost of the Marshall Plan', the huge US investment programme launched to revive Europe after World War II, he added.
Moody's estimated in a report that the total global debt in 2010 would reach more than US$49 trillion.
The members of the G-7 grouping of rich countries will account for more than three-quarters of the increase, 'as their fiscal accounts have been hit hardest by the crisis', Mr Reusche said. 'As growth turns negative in 2009 for most countries, the relative debt load becomes harder to bear.'
At the Center for European Policy Studies in Brussels, economist Cinzia Alcidi said: 'A debt equivalent to 100 per cent of gross domestic product means that everything produced in the course of a year will have to go toward reimbursement. Are governments in a position to do that?'
The fear is that if financial markets begin to doubt the ability of countries to pay what they owe, they could steer clear of official debt instruments - such as treasury bonds - and thereby deprive countries of fresh cash.
'If the debt continues to grow, it's not hard to imagine a country having trouble securing finance,' said Jean Pisani-Ferry of the Bruegel think-tank in Brussels.
Other analysts have warned that heavily indebted governments could see their credit ratings lowered, raising the cost of critical borrowing.
Under such a scenario, governments would be tempted to raise interest rates offered to national creditors, thus intensifying the debt burden.
'That's what makes debt explosive,' noted Michel Aglietta of the research group Cepii.
Economist Daniel Fermon of the bank Societe Generale has warned that in an 'extreme case', a debt explosion could trigger a new wave of recession.
In principle a return to robust economic growth should reduce the need for public borrowing, although economists caution that that may not happen in the current climate where a weak recovery is forecast.
The weight of debt can also be eased if inflation rises faster than interest rates. But Mr Aglietta of the Cepii institute said higher inflation can erode consumer spending, triggering 'a flight of private capital toward countries with lower inflation'.
The alternative, according to Bruegel's Mr Jean-Pisani Ferry, is to 'raise taxes or cut public spending'. But both the OECD and the International Monetary Fund have stressed that too abrupt a clamp-down on spending could snuff out recovery.
Mr Aglietta said governments should try to reassure credit markets by 'signalling in advance their spending cuts or tax increases'. For the moment, however, the message to the markets from Europe is mixed.
Germany plans to cut taxes, Spain is preparing to raise them, the Netherlands sees spending cuts in 2011 while France has ruled out any tax hike. -- AFP
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Is the party over? Dubai has sent markets into a tailspin with an acknowledgement it will need a six-month moratorium on US$59b worth of debt owed by Dubai World
ST : Skybridges not deemed part of condo's gross floor area
Nov 29, 2009
Skybridges not deemed part of condo's gross floor area
We refer to last Sunday's article, 'More condos let you walk on air', which reported that fully covered skybridges are considered part of a condominium's gross floor area, which is pre-determined by the Urban Redevelopment Authority (URA).
The report elaborated that this means the floor area occupied by a skybridge could have been used for another apartment unit, giving developers additional income.
The article made reference to Lincoln Suites, that the space taken up by the skybridge could have been used for a $700,000 studio apartment.
Skybridges are not considered part of a condominium's gross floor area (GFA).
A covered skybridge that connects communal areas between two or more blocks, and serves as a communal passageway to facilitate the residents' movement at the upper levels is exempted from the GFA calculation of the development.
In the case of Lincoln Suites, the design of the skybridge includes both a passageway as well as an indoor gym.
As the gym functions more like a clubhouse facility and does not serve as a passageway to facilitate the movement of residents between the two blocks, it does not qualify for GFA exemption.
The remaining area of the skybridge is exempted from GFA just like other covered skybridges.
Han Yong Hoe
Group Director (Development Control)
Urban Redevelopment Authority
Skybridges not deemed part of condo's gross floor area
We refer to last Sunday's article, 'More condos let you walk on air', which reported that fully covered skybridges are considered part of a condominium's gross floor area, which is pre-determined by the Urban Redevelopment Authority (URA).
The report elaborated that this means the floor area occupied by a skybridge could have been used for another apartment unit, giving developers additional income.
The article made reference to Lincoln Suites, that the space taken up by the skybridge could have been used for a $700,000 studio apartment.
Skybridges are not considered part of a condominium's gross floor area (GFA).
A covered skybridge that connects communal areas between two or more blocks, and serves as a communal passageway to facilitate the residents' movement at the upper levels is exempted from the GFA calculation of the development.
In the case of Lincoln Suites, the design of the skybridge includes both a passageway as well as an indoor gym.
As the gym functions more like a clubhouse facility and does not serve as a passageway to facilitate the movement of residents between the two blocks, it does not qualify for GFA exemption.
The remaining area of the skybridge is exempted from GFA just like other covered skybridges.
Han Yong Hoe
Group Director (Development Control)
Urban Redevelopment Authority
Sunday, November 29, 2009
ST : Losses, but no bloodbath
Nov 29, 2009
Losses, but no bloodbath
Experts expect STI to fall by up to 3% tomorrow when it plays catch-up
By Francis Chan
Experts reckon that the benchmark Straits Times Index (STI) will probably suffer a 2 per cent to 3 per cent drop. -- ST FILE PHOTO
THERE will be losses when the Singapore stock market opens on Monday after the long weekend, but it will not be a bloodbath as global markets regroup after the Dubai sucker punch last week, say financial experts.
They reckon that the benchmark Straits Times Index (STI) will probably suffer a 2 per cent to 3 per cent drop once investors, whose hands were tied during the Hari Raya Haji holiday, hit the market.
But none foresees a repeat of the last financial meltdown.
'Yes, there may be ripple effects but I doubt it is going to bring any financial institution to its knees like in the last crisis,' said CIMB-GK regional economist Song Seng Wun.
OCBC vice-president for wealth management Vasu Menon predicts that 'the market will weaken' when it opens tomorrow as Singapore plays 'catch-up'.
He added: 'Hong Kong was down by 4 per cent (on Friday), while most other Asian markets were down between 2.5 and 4 per cent, so I wouldn't discount the possibility of the Singapore market falling by 2 per cent or so.'
Losses, but no bloodbath
Experts expect STI to fall by up to 3% tomorrow when it plays catch-up
By Francis Chan
Experts reckon that the benchmark Straits Times Index (STI) will probably suffer a 2 per cent to 3 per cent drop. -- ST FILE PHOTO
THERE will be losses when the Singapore stock market opens on Monday after the long weekend, but it will not be a bloodbath as global markets regroup after the Dubai sucker punch last week, say financial experts.
They reckon that the benchmark Straits Times Index (STI) will probably suffer a 2 per cent to 3 per cent drop once investors, whose hands were tied during the Hari Raya Haji holiday, hit the market.
But none foresees a repeat of the last financial meltdown.
'Yes, there may be ripple effects but I doubt it is going to bring any financial institution to its knees like in the last crisis,' said CIMB-GK regional economist Song Seng Wun.
OCBC vice-president for wealth management Vasu Menon predicts that 'the market will weaken' when it opens tomorrow as Singapore plays 'catch-up'.
He added: 'Hong Kong was down by 4 per cent (on Friday), while most other Asian markets were down between 2.5 and 4 per cent, so I wouldn't discount the possibility of the Singapore market falling by 2 per cent or so.'
ST : Home sales pace to slow
Nov 29, 2009
Home sales pace to slow
Lull likely before sector picks up from late Feb; more high-end homes expected next year
By Joyce Teo
THE unusual frenzy in private home sales till September this year is fast winding down, as launches slow.
It should be a short lull before new launches kick in from late February, after Chinese New Year. Next year, however, is expected to see a steadier and calmer pace.
And, unlike this year, more high-end launches are expected next year, experts said.
DTZ head of South-east Asia research Chua Chor Hoon expects sales activity to remain low for next month and early next year.
This is because there are few mass market projects being launched in the next few months.
Recent government cooling measures seem to have had an effect too, making home hunters and speculators more wary about wading in, she said.
Home sales pace to slow
Lull likely before sector picks up from late Feb; more high-end homes expected next year
By Joyce Teo
THE unusual frenzy in private home sales till September this year is fast winding down, as launches slow.
It should be a short lull before new launches kick in from late February, after Chinese New Year. Next year, however, is expected to see a steadier and calmer pace.
And, unlike this year, more high-end launches are expected next year, experts said.
DTZ head of South-east Asia research Chua Chor Hoon expects sales activity to remain low for next month and early next year.
This is because there are few mass market projects being launched in the next few months.
Recent government cooling measures seem to have had an effect too, making home hunters and speculators more wary about wading in, she said.
Saturday, November 28, 2009
ST : PUB spending $68m to stem flooding
Nov 28, 2009
PUB spending $68m to stem flooding
Drains to be widened in several areas over the next three years
By Amresh Gunasingham
THE PUB is spending $67.5million over the next three years to widen the drains in five areas around Singapore to make them less prone to floods.
They are in Jalan Haji Alias, Telok Kurau, Keppel Road, Jurong Port Road and Lincoln Road.
The national water agency also recently completed 10 projects in places such as Sims Avenue, Geylang and Commonwealth Avenue, which are low-lying areas prone to being inundated by the year-end deluge. The projects were fast-tracked and completed in two years, at least a year ahead of schedule.
Almost half the year's rainfall of 2,357.8mm comes during the months of November, December and January.
The projects are part of ongoing efforts that have seen the number of flood-prone areas in Singapore reduced from 3,200ha in the 1970s to 79ha today.
Another project at the junction of Tanjong Katong and Mountbatten Roads will see over $1million invested to widen a portion of the drainage system from 1m at present, to 3.5m.
The drains in this area of reclaimed land of 0.5ha regularly overflow when bouts of heavy rain coincide with high tides during the north-east monsoon season, flooding nearby homes up to three times a month.
Construction will be completed by the first quarter of next year.
PUB is also working with the three Bukit Timah condominiums whose basement carparks were partially submerged during an unusually intense rainstorm last week, to prevent future occurrences.
The building management at the three-decade-old Corona Ville condominium, in Jalan Haji Alias, for example, is looking to build a concrete hump at the entrance to its basement carpark to block surface run-off during a storm.
This should be completed by early next month.
Mr Edwin Tan, chairman of the residents' committee at the condominium, said the estimated cost of damage to the eight cars affected by the floods ran into a 'few hundred thousand dollars', but residents were, so far, adopting a sense of perspective in assessing the cost to their property.
'This is something beyond everyone's control,' said Mr Tan, whose $140,000 BMW X4 was partially damaged in the floods.
The Sixth Avenue Centre is exploring the installation of a water sensor system to provide a flood alert, said Mr S.K. Goh of the building's managing agent, Land & Building Services.
The system would trigger an alarm once the water reached a certain level so car owners could move their vehicles.
Mr Goh said the carpark does have water pumps, but these could not cope with the 'sudden surge of water' that occurred on Nov19, when around 92mm of rain was dumped in the area in just half an hour in the early afternoon.
It is understood that the owners of four cars and one motorcycle which were submerged have been asked to submit claims for damages to the building's management by next week.
At the two-year-old Tessarina condominium in Wilby Road, more sandbags have been placed around the control rooms in the 500-lot basement carpark that provide electricity to the estate's five buildings.
'We are working with the management to explore other measures they can take,' said a PUB spokesman, adding that the estate's drainage network was also being assessed.
Mr Chan Ming Hwang, senior manager, catchment and waterways department, with the PUB, said ejector pumps used in basement carparks to channel rainwater outside have to be checked regularly to prevent them from being choked by debris such as silt and mud.
PUB spending $68m to stem flooding
Drains to be widened in several areas over the next three years
By Amresh Gunasingham
THE PUB is spending $67.5million over the next three years to widen the drains in five areas around Singapore to make them less prone to floods.
They are in Jalan Haji Alias, Telok Kurau, Keppel Road, Jurong Port Road and Lincoln Road.
The national water agency also recently completed 10 projects in places such as Sims Avenue, Geylang and Commonwealth Avenue, which are low-lying areas prone to being inundated by the year-end deluge. The projects were fast-tracked and completed in two years, at least a year ahead of schedule.
Almost half the year's rainfall of 2,357.8mm comes during the months of November, December and January.
The projects are part of ongoing efforts that have seen the number of flood-prone areas in Singapore reduced from 3,200ha in the 1970s to 79ha today.
Another project at the junction of Tanjong Katong and Mountbatten Roads will see over $1million invested to widen a portion of the drainage system from 1m at present, to 3.5m.
The drains in this area of reclaimed land of 0.5ha regularly overflow when bouts of heavy rain coincide with high tides during the north-east monsoon season, flooding nearby homes up to three times a month.
Construction will be completed by the first quarter of next year.
PUB is also working with the three Bukit Timah condominiums whose basement carparks were partially submerged during an unusually intense rainstorm last week, to prevent future occurrences.
The building management at the three-decade-old Corona Ville condominium, in Jalan Haji Alias, for example, is looking to build a concrete hump at the entrance to its basement carpark to block surface run-off during a storm.
This should be completed by early next month.
Mr Edwin Tan, chairman of the residents' committee at the condominium, said the estimated cost of damage to the eight cars affected by the floods ran into a 'few hundred thousand dollars', but residents were, so far, adopting a sense of perspective in assessing the cost to their property.
'This is something beyond everyone's control,' said Mr Tan, whose $140,000 BMW X4 was partially damaged in the floods.
The Sixth Avenue Centre is exploring the installation of a water sensor system to provide a flood alert, said Mr S.K. Goh of the building's managing agent, Land & Building Services.
The system would trigger an alarm once the water reached a certain level so car owners could move their vehicles.
Mr Goh said the carpark does have water pumps, but these could not cope with the 'sudden surge of water' that occurred on Nov19, when around 92mm of rain was dumped in the area in just half an hour in the early afternoon.
It is understood that the owners of four cars and one motorcycle which were submerged have been asked to submit claims for damages to the building's management by next week.
At the two-year-old Tessarina condominium in Wilby Road, more sandbags have been placed around the control rooms in the 500-lot basement carpark that provide electricity to the estate's five buildings.
'We are working with the management to explore other measures they can take,' said a PUB spokesman, adding that the estate's drainage network was also being assessed.
Mr Chan Ming Hwang, senior manager, catchment and waterways department, with the PUB, said ejector pumps used in basement carparks to channel rainwater outside have to be checked regularly to prevent them from being choked by debris such as silt and mud.
ST : Dubai's debt crisis sparks global sell-off
Nov 28, 2009
Dubai's debt crisis sparks global sell-off
Bank shares savaged as default triggers fears of new financial meltdown
By Fiona Chan
STOCK markets around the world reeled yesterday as investors panicked that the Dubai government's debt crisis would trigger a fresh financial meltdown.
The spectre of a Gulf emirate plunging into bankruptcy drove investors from Tokyo to London to seek safety in the US dollar and bonds, while dumping riskier assets such as commodities and stocks.
In particular, shares of banks in Asia and Europe were savaged - with HSBC Holdings and Standard Chartered Bank faring the worst in Hong Kong, and ING Group and Royal Bank of Scotland among the biggest losers in Europe. All four have been involved in Dubai World deals.
Dubai's government investment firm Dubai World shocked markets on Thursday when it asked for a six-month delay in repaying a US$59 billion (S$81 billion) tranche of its total debt of US$80 billion.
The news, which credit rating agency Standard & Poor's said amounted to a default, recalled Argentina's sovereign default in 2001, the biggest in history.
The announcement came just hours before the Middle East shut down for a religious holiday. A lack of new information worsened the panic, reports said.
Asian markets took the news harder than European ones yesterday, with reports of Tokyo traders describing the panic as 'Financial Crisis Part II'.
The Hang Seng Index in Hong Kong plunged 4.8 per cent yesterday, while Japan's Nikkei 225 Stock Average slumped 3.2 per cent to a four-month low. South Korean shares also closed at a four-month low after falling 4.7 per cent.
In Europe, major markets lost just over 3 per cent in Thursday's trading. The FTSE 100 index in London closed down 3.2 per cent - its worst one-day fall since March - while Germany's DAX fell 3.2 per cent and France's CAC-40 dropped 3.4 per cent. The European markets were down fractionally yesterday after the mid-morning session.
The Dubai news caused panic throughout trading in London, Mr David Jones, chief market strategist at IG Index in London, told The Independent newspaper.
'The market had been chugging along nicely for the past six months, now this. A lot of people are worried that it is a precursor for more bad news,' he said.
The Singapore stock exchange was closed yesterday for the Hari Raya Haji holiday, delaying any carnage to when it re-opens on Monday.
Markets in the United States were also closed on Thursday for the Thanksgiving holiday, but the Dow was down about 200 points as soon as markets opened for trading last night.
Dubai, touted as an economic miracle of the Middle East, poured billions of dollars in borrowed money into building huge luxury developments and lavish tourist attractions. Now, investors are worried about the health of banks that lent money to the debt-ridden emirate.
HSBC's Middle East arm was by far the biggest single foreign lender in the United Arab Emirates (UAE), with outstanding loans of US$17 billion as at the end of last year, according to an Agence France-Presse report. It is not clear how much of this was lent to Dubai.
Stanchart was next with US$7.8 billion owed as at end-2008, and Barclays Bank was third with US$3.6 billion, said AFP.
Citigroup analysts said Japan's largest banks, Mitsubishi UFJ Financial and Sumitomo Mitsui, had also lent hundreds of millions of dollars to Dubai World.
In Singapore, DBS Bank was mentioned by CLSA analyst Daniel Tabbush as having exposure to Dubai. All three local banks - DBS, UOB and OCBC - have also lent money to Singapore's South Beach development, a joint project involving City Developments and Dubai World.
But some commentators yesterday cautioned that the selling was overdone.
'Everyone has gone into panic mode, but this is Dubai. It is not going to send the world into a tailspin,' Mr Chris Blair, Patersons senior client adviser, said in a Dow Jones report.
All eyes are now on whether Dubai's richer cousin Abu Dhabi, the capital of the UAE's seven emirates, will lend a hand. It will not be the first time Abu Dhabi has had to help. It bought US$10 billion in bonds from Dubai in February to ease a cash crunch.
Dubai's debt crisis sparks global sell-off
Bank shares savaged as default triggers fears of new financial meltdown
By Fiona Chan
STOCK markets around the world reeled yesterday as investors panicked that the Dubai government's debt crisis would trigger a fresh financial meltdown.
The spectre of a Gulf emirate plunging into bankruptcy drove investors from Tokyo to London to seek safety in the US dollar and bonds, while dumping riskier assets such as commodities and stocks.
In particular, shares of banks in Asia and Europe were savaged - with HSBC Holdings and Standard Chartered Bank faring the worst in Hong Kong, and ING Group and Royal Bank of Scotland among the biggest losers in Europe. All four have been involved in Dubai World deals.
Dubai's government investment firm Dubai World shocked markets on Thursday when it asked for a six-month delay in repaying a US$59 billion (S$81 billion) tranche of its total debt of US$80 billion.
The news, which credit rating agency Standard & Poor's said amounted to a default, recalled Argentina's sovereign default in 2001, the biggest in history.
The announcement came just hours before the Middle East shut down for a religious holiday. A lack of new information worsened the panic, reports said.
Asian markets took the news harder than European ones yesterday, with reports of Tokyo traders describing the panic as 'Financial Crisis Part II'.
The Hang Seng Index in Hong Kong plunged 4.8 per cent yesterday, while Japan's Nikkei 225 Stock Average slumped 3.2 per cent to a four-month low. South Korean shares also closed at a four-month low after falling 4.7 per cent.
In Europe, major markets lost just over 3 per cent in Thursday's trading. The FTSE 100 index in London closed down 3.2 per cent - its worst one-day fall since March - while Germany's DAX fell 3.2 per cent and France's CAC-40 dropped 3.4 per cent. The European markets were down fractionally yesterday after the mid-morning session.
The Dubai news caused panic throughout trading in London, Mr David Jones, chief market strategist at IG Index in London, told The Independent newspaper.
'The market had been chugging along nicely for the past six months, now this. A lot of people are worried that it is a precursor for more bad news,' he said.
The Singapore stock exchange was closed yesterday for the Hari Raya Haji holiday, delaying any carnage to when it re-opens on Monday.
Markets in the United States were also closed on Thursday for the Thanksgiving holiday, but the Dow was down about 200 points as soon as markets opened for trading last night.
Dubai, touted as an economic miracle of the Middle East, poured billions of dollars in borrowed money into building huge luxury developments and lavish tourist attractions. Now, investors are worried about the health of banks that lent money to the debt-ridden emirate.
HSBC's Middle East arm was by far the biggest single foreign lender in the United Arab Emirates (UAE), with outstanding loans of US$17 billion as at the end of last year, according to an Agence France-Presse report. It is not clear how much of this was lent to Dubai.
Stanchart was next with US$7.8 billion owed as at end-2008, and Barclays Bank was third with US$3.6 billion, said AFP.
Citigroup analysts said Japan's largest banks, Mitsubishi UFJ Financial and Sumitomo Mitsui, had also lent hundreds of millions of dollars to Dubai World.
In Singapore, DBS Bank was mentioned by CLSA analyst Daniel Tabbush as having exposure to Dubai. All three local banks - DBS, UOB and OCBC - have also lent money to Singapore's South Beach development, a joint project involving City Developments and Dubai World.
But some commentators yesterday cautioned that the selling was overdone.
'Everyone has gone into panic mode, but this is Dubai. It is not going to send the world into a tailspin,' Mr Chris Blair, Patersons senior client adviser, said in a Dow Jones report.
All eyes are now on whether Dubai's richer cousin Abu Dhabi, the capital of the UAE's seven emirates, will lend a hand. It will not be the first time Abu Dhabi has had to help. It bought US$10 billion in bonds from Dubai in February to ease a cash crunch.
ST Forum : Town council has funds to replace lifts
Nov 28, 2009
Town council has funds to replace lifts
I REFER to Ms Eilleen Tan's query on Wednesday, 'Where's the fund to replace 1,260 lifts in future?'
We thank Ms Tan for her concern on the funding of lift replacement in future by Tampines Town Council. She rightly pointed out that the future replacement cost of lifts is paid out of the town council's sinking fund.
However, these lifts will be replaced only gradually over the 28-year replacement cycle as all the lifts are of different ages. The current expenditure of $24 million was largely due to the current Lift Upgrading Programme (LUP) which will be completed over the next few years.
To put it simply, we will need an average of $4.5 million a year to replace the 1,260 lifts over the 28-year cycle, which will be adequately provided for from our annual sinking fund contribution which currently is $11.8 million.
We wish to assure Ms Tan and all residents of Tampines Town that Tampines Town Council will continue to manage its sinking fund and expenditure prudently to ensure our community facilities are replaced or upgraded in a timely manner.
Leong Shee Wing
General Manager/Secretary
Tampines Town Council
Town council has funds to replace lifts
I REFER to Ms Eilleen Tan's query on Wednesday, 'Where's the fund to replace 1,260 lifts in future?'
We thank Ms Tan for her concern on the funding of lift replacement in future by Tampines Town Council. She rightly pointed out that the future replacement cost of lifts is paid out of the town council's sinking fund.
However, these lifts will be replaced only gradually over the 28-year replacement cycle as all the lifts are of different ages. The current expenditure of $24 million was largely due to the current Lift Upgrading Programme (LUP) which will be completed over the next few years.
To put it simply, we will need an average of $4.5 million a year to replace the 1,260 lifts over the 28-year cycle, which will be adequately provided for from our annual sinking fund contribution which currently is $11.8 million.
We wish to assure Ms Tan and all residents of Tampines Town that Tampines Town Council will continue to manage its sinking fund and expenditure prudently to ensure our community facilities are replaced or upgraded in a timely manner.
Leong Shee Wing
General Manager/Secretary
Tampines Town Council
TODAY Online : A busy year on the horizon?
A busy year on the horizon?
05:55 AM Nov 28, 2009
by Donald Han
EVEN though Singapore saw its worst economic recession since independence this year, the property market remained relatively buoyant, with the resurgence led by sell-out mass market condominium projects such as The Caspian and The Alexis.
In the first 10 months of this year, developers sold 13,905 new homes - almost three times that in the whole of last year. In fact, Q3 alone saw developers selling 5,720 units - more than in the whole of 2008. Total sales volume this year is likely to breach the 15,000 unit mark, exceeding 2007's record high of 14,811 new home sales.
This remarkable development was mainly supported by the convergence of huge pent up demand, low savings deposit rate, stock market revival and a market flushed with liquidity.
Twelve months ago, no one would have dared to predict a U-shaped property market recovery, let alone a V-shaped rebound this year. Even the most optimistic property consultant would not have anticipated Q3's property price index to have turned a corner, registering a mind-boggling 15.8-per-cent price rise quarter-on-quarter. With just about a month to go, we are likely to end the year with a price hike of between 2 and 5 per cent.
With economic improvement and the ease of credit, developers have been busy replenishing their land bank. Five Government sites, which have been on the Urban Redevelopment Authority's Reserve List since last year, have been released from as early as July. The parcels represent the choicest residential sites on the list, mostly within established residential enclaves with reasonably close proximity to MRT stations, thus making end products easily saleable.
The five sites attracted between six and 15 bidders per tender exercise. Each of the successful bids exceeded initial reserve prices by between 2.32 and 3.07 times - a huge premium. Fierce bidding among developers translated to high bids for land prices. With developers typically passing on this land cost to buyers, one can only expect higher project launch prices when these offerings come to the market.
But the Government's release of a slew of 99-year leasehold sites the 1H2010 Government Land Sales (GLS) programme sees a variety of sites, some of which may not translate to high selling prices.
There are two plum sites which developers have seemingly given a miss thus far. These are within excellent strategic development zones which provide a catalytic start to urban rejuvenation and being part of Government's larger decentralisation and suburbanisation programme.
The sales of sites at Kallang Riverside (for the development of hotel with possibility residential component) and Jurong East Street 13 (a "white site" zoning where part residential is permissible) at Jurong Gateway near to Jurong Lake district are paramount examples. These sites have been placed in the reserve list since last year, but they have not received the necessary attention despite their immense potential and location appeal.
Developers should look at sites like these at Kallang and Jurong when studying their choices in the GLS programme. After all, those that have embarked in new and seemingly obscure development precincts have in the past been rewarded with "first mover" advantage.
These include Ho Bee Group's achievement at Sentosa Cove and the consortium of Keppel Land, Cheung Kong Holdings and Hongkong Land's success at Marina Bay. Next year looks set to be a busy year for property developers. ¢
The writer is the managing director of Cushman and Wakefield Singapore. The opinions expressed here are his own.
05:55 AM Nov 28, 2009
by Donald Han
EVEN though Singapore saw its worst economic recession since independence this year, the property market remained relatively buoyant, with the resurgence led by sell-out mass market condominium projects such as The Caspian and The Alexis.
In the first 10 months of this year, developers sold 13,905 new homes - almost three times that in the whole of last year. In fact, Q3 alone saw developers selling 5,720 units - more than in the whole of 2008. Total sales volume this year is likely to breach the 15,000 unit mark, exceeding 2007's record high of 14,811 new home sales.
This remarkable development was mainly supported by the convergence of huge pent up demand, low savings deposit rate, stock market revival and a market flushed with liquidity.
Twelve months ago, no one would have dared to predict a U-shaped property market recovery, let alone a V-shaped rebound this year. Even the most optimistic property consultant would not have anticipated Q3's property price index to have turned a corner, registering a mind-boggling 15.8-per-cent price rise quarter-on-quarter. With just about a month to go, we are likely to end the year with a price hike of between 2 and 5 per cent.
With economic improvement and the ease of credit, developers have been busy replenishing their land bank. Five Government sites, which have been on the Urban Redevelopment Authority's Reserve List since last year, have been released from as early as July. The parcels represent the choicest residential sites on the list, mostly within established residential enclaves with reasonably close proximity to MRT stations, thus making end products easily saleable.
The five sites attracted between six and 15 bidders per tender exercise. Each of the successful bids exceeded initial reserve prices by between 2.32 and 3.07 times - a huge premium. Fierce bidding among developers translated to high bids for land prices. With developers typically passing on this land cost to buyers, one can only expect higher project launch prices when these offerings come to the market.
But the Government's release of a slew of 99-year leasehold sites the 1H2010 Government Land Sales (GLS) programme sees a variety of sites, some of which may not translate to high selling prices.
There are two plum sites which developers have seemingly given a miss thus far. These are within excellent strategic development zones which provide a catalytic start to urban rejuvenation and being part of Government's larger decentralisation and suburbanisation programme.
The sales of sites at Kallang Riverside (for the development of hotel with possibility residential component) and Jurong East Street 13 (a "white site" zoning where part residential is permissible) at Jurong Gateway near to Jurong Lake district are paramount examples. These sites have been placed in the reserve list since last year, but they have not received the necessary attention despite their immense potential and location appeal.
Developers should look at sites like these at Kallang and Jurong when studying their choices in the GLS programme. After all, those that have embarked in new and seemingly obscure development precincts have in the past been rewarded with "first mover" advantage.
These include Ho Bee Group's achievement at Sentosa Cove and the consortium of Keppel Land, Cheung Kong Holdings and Hongkong Land's success at Marina Bay. Next year looks set to be a busy year for property developers. ¢
The writer is the managing director of Cushman and Wakefield Singapore. The opinions expressed here are his own.
ST Forum : Rules should cover concerted action by agents
Nov 28, 2009
Rules should cover concerted action by agents
I REFER to Thursday's report, 'Thumbs up for ending estate agents' dual role'.
The Ministry of National Development's (MND) proposal to ban agents from representing both seller and buyer in the same property transaction is a step in the right direction. However, the proposal is silent on agents who may act in concert in the same transaction, such as agents from the same team of the same agency.
Under the proposed framework, teams could continue to represent both seller and buyer in property transactions. Agents may continue to profit handsomely by attaining exclusivity from sellers and dealing only with associated agents, to the exclusion of all others. Such uncompetitive market structures would give agents strong pricing power when negotiating fees as well.
Agents operating in teams are a common feature of Singapore's property market and so the proposals by MND should extend beyond the regulation of single agents to include that of teams as well.
Otherwise, agents may continue to follow only the letter of the law with regard to safeguarding both buyers' and sellers' interests, disregarding its intent.
Ho Kah Chuen
Rules should cover concerted action by agents
I REFER to Thursday's report, 'Thumbs up for ending estate agents' dual role'.
The Ministry of National Development's (MND) proposal to ban agents from representing both seller and buyer in the same property transaction is a step in the right direction. However, the proposal is silent on agents who may act in concert in the same transaction, such as agents from the same team of the same agency.
Under the proposed framework, teams could continue to represent both seller and buyer in property transactions. Agents may continue to profit handsomely by attaining exclusivity from sellers and dealing only with associated agents, to the exclusion of all others. Such uncompetitive market structures would give agents strong pricing power when negotiating fees as well.
Agents operating in teams are a common feature of Singapore's property market and so the proposals by MND should extend beyond the regulation of single agents to include that of teams as well.
Otherwise, agents may continue to follow only the letter of the law with regard to safeguarding both buyers' and sellers' interests, disregarding its intent.
Ho Kah Chuen
ST : S'pore firms shrug off Dubai default
Nov 28, 2009
S'pore firms shrug off Dubai default
Those with links to Gulf emirate expect little impact on tie-up projects
By Fiona Chan
THE debt troubles of Dubai World appear to have had a limited impact on Singapore companies with links to the Gulf emirate.
Property group City Developments (CDL), which tied up with the Dubai government investment company to develop the billion-dollar South Beach site near Suntec City, said it does not expect 'any impact at all' on the site's development.
'Dubai World holds only a one-third share' of the development, a CDL spokesman said yesterday. CDL has another third, and the last third belongs to the United States-based El-Ad Group.
The spokesman told The Straits Times that no further capital needs to be pumped into the project at present.
'However, when the time comes for construction to proceed, all partners will be required to put in their share of additional funds. Should Dubai World decide not to contribute their proportionate share for whatever reasons, their shareholding will be diluted.'
Dubai World had asked on Thursday for six more months to repay its debts, sending global financial markets into a panic over Dubai's possible bankruptcy.
Analysts singled out banks as among the most vulnerable to a Dubai debt default. The news could have a 'meaningful impact' on banks across Asia, said Mr Daniel Tabbush, a banking analyst at CLSA in Bangkok.
He listed Standard Chartered, HSBC and Singapore's DBS Group as the most exposed in the region.
DBS has a branch in Dubai that was opened in 2006, marking the bank's first foray into Islamic finance. DBS could not be reached for comment yesterday.
Along with United Overseas Bank and OCBC Bank, DBS is also part of a syndicate helping to finance CDL's South Beach project.
Market observers said the banks that have exposure to Dubai only through the South Beach project are unlikely to be affected by Dubai's financial problems, as they will have collateral in the form of the property.
Public transport company SMRT also has a partnership with Nakheel, a property developer that works under the umbrella of the Dubai World group.
SMRT has a six-year contract worth about $120 million with Nakheel to operate and maintain a monorail running through the Palm Jumeirah development in Dubai.
In response to queries about how Dubai's debt difficulties would affect SMRT, chief operating officer Yeo Meng Hin said the impact to the monorail's operations, if any, would be minimal.
'We are long-term partners with Nakheel, and will continue to work closely with its management during this challenging time,' he said.
Other Singapore companies that have crossed paths with Dubai World include Labroy Marine and Pan-United Marine. The Dubai firm bought both Singapore shipyards in 2007 for about US$2 billion (S$2.7 billion).
Earlier that year, Dubai World's sister firm Dubai Ports World grabbed headlines in Singapore when it beat PSA International to buy P&O Ports for £3.9 billion (S$8.8 billion).
fiochan@sph.com.sg
--------------------------------------------------------------------------------
From fishing village to desert paradise in 40 years
IN A land seemingly built for the purposes of conspicuous consumption, Dubai never lacked extravagant icons of success.
The most extravagant - and most emblematic of the once sleepy fishing village's transformation to oasis playground for the rich - were surely the palm tree and the sail.
In keeping with the tiny Gulf emirate's grandiose vision, both were artificial. One was a set of man-made islands in the shape of palm trees and the other the sail-shaped Burj Al Arab, the world's most expensive hotel.
Then there was the man-made harbour, the largest in the world, built at Jebel Ali while a free-trade zone was created around the port, catapulting Dubai into the league of major international business hubs.
Billing itself as a safe haven within a volatile region for investors and tourists alike, Dubai, which discovered oil in 1966, tripled its economy to US$34.5 billion (S$47.9 billion) in the 10 years to 2006 and achieved double-digit growth every year until the financial crisis struck.
Its expansion was relentless. By last year, foreign direct investment into Dubai totalled US$21 billion, according to the Financial Times.
The Gulf emirate established itself as the region's trade and tourism hub, developing businesses such as port operator DP World that became leaders in their field.
It also set out to become a world-class financial centre, competing with the likes of New York and London and boasting an edge in the burgeoning area of Islamic finance.
In 2007, Dubai and Qatar became the two biggest shareholders of the London Stock Exchange, the third-largest bourse in the world.
Within its own borders, Dubai embarked on a massive six-year building boom that turned sand dunes into a glittering metropolis and the city into a magnet for the young, rich and glamorous.
No project was too lavish for Dubai. It is home to the world's biggest shopping mall - the 1,200-shop Dubai Mall - and will have the world's tallest building when the 160-storey Burj Dubai is completed next year at an estimated cost of US$1 billion.
The Burj Al Arab hotel was itself the tallest building in the world when it was completed in 1999. The hotel gave itself a seven-star rating - the first in the world - and watched as the publicity, room rates and bookings rocketed.
Dubai made the unthinkable possible with Ski Dubai, which opened in 2006 to offer the ultimate in luxury: skiing in the desert, on one of the world's largest indoor ski slopes with fresh powder all year round.
Celebrities converged on Dubai's sands, with David Beckham and Brad Pitt reportedly owning villas in the Palm Jumeirah development, the only one of three planned palm-tree shaped islands that has been completed.
The future of the other two Palm islands is now up in the air - much like that of Dubai itself.
S'pore firms shrug off Dubai default
Those with links to Gulf emirate expect little impact on tie-up projects
By Fiona Chan
THE debt troubles of Dubai World appear to have had a limited impact on Singapore companies with links to the Gulf emirate.
Property group City Developments (CDL), which tied up with the Dubai government investment company to develop the billion-dollar South Beach site near Suntec City, said it does not expect 'any impact at all' on the site's development.
'Dubai World holds only a one-third share' of the development, a CDL spokesman said yesterday. CDL has another third, and the last third belongs to the United States-based El-Ad Group.
The spokesman told The Straits Times that no further capital needs to be pumped into the project at present.
'However, when the time comes for construction to proceed, all partners will be required to put in their share of additional funds. Should Dubai World decide not to contribute their proportionate share for whatever reasons, their shareholding will be diluted.'
Dubai World had asked on Thursday for six more months to repay its debts, sending global financial markets into a panic over Dubai's possible bankruptcy.
Analysts singled out banks as among the most vulnerable to a Dubai debt default. The news could have a 'meaningful impact' on banks across Asia, said Mr Daniel Tabbush, a banking analyst at CLSA in Bangkok.
He listed Standard Chartered, HSBC and Singapore's DBS Group as the most exposed in the region.
DBS has a branch in Dubai that was opened in 2006, marking the bank's first foray into Islamic finance. DBS could not be reached for comment yesterday.
Along with United Overseas Bank and OCBC Bank, DBS is also part of a syndicate helping to finance CDL's South Beach project.
Market observers said the banks that have exposure to Dubai only through the South Beach project are unlikely to be affected by Dubai's financial problems, as they will have collateral in the form of the property.
Public transport company SMRT also has a partnership with Nakheel, a property developer that works under the umbrella of the Dubai World group.
SMRT has a six-year contract worth about $120 million with Nakheel to operate and maintain a monorail running through the Palm Jumeirah development in Dubai.
In response to queries about how Dubai's debt difficulties would affect SMRT, chief operating officer Yeo Meng Hin said the impact to the monorail's operations, if any, would be minimal.
'We are long-term partners with Nakheel, and will continue to work closely with its management during this challenging time,' he said.
Other Singapore companies that have crossed paths with Dubai World include Labroy Marine and Pan-United Marine. The Dubai firm bought both Singapore shipyards in 2007 for about US$2 billion (S$2.7 billion).
Earlier that year, Dubai World's sister firm Dubai Ports World grabbed headlines in Singapore when it beat PSA International to buy P&O Ports for £3.9 billion (S$8.8 billion).
fiochan@sph.com.sg
--------------------------------------------------------------------------------
From fishing village to desert paradise in 40 years
IN A land seemingly built for the purposes of conspicuous consumption, Dubai never lacked extravagant icons of success.
The most extravagant - and most emblematic of the once sleepy fishing village's transformation to oasis playground for the rich - were surely the palm tree and the sail.
In keeping with the tiny Gulf emirate's grandiose vision, both were artificial. One was a set of man-made islands in the shape of palm trees and the other the sail-shaped Burj Al Arab, the world's most expensive hotel.
Then there was the man-made harbour, the largest in the world, built at Jebel Ali while a free-trade zone was created around the port, catapulting Dubai into the league of major international business hubs.
Billing itself as a safe haven within a volatile region for investors and tourists alike, Dubai, which discovered oil in 1966, tripled its economy to US$34.5 billion (S$47.9 billion) in the 10 years to 2006 and achieved double-digit growth every year until the financial crisis struck.
Its expansion was relentless. By last year, foreign direct investment into Dubai totalled US$21 billion, according to the Financial Times.
The Gulf emirate established itself as the region's trade and tourism hub, developing businesses such as port operator DP World that became leaders in their field.
It also set out to become a world-class financial centre, competing with the likes of New York and London and boasting an edge in the burgeoning area of Islamic finance.
In 2007, Dubai and Qatar became the two biggest shareholders of the London Stock Exchange, the third-largest bourse in the world.
Within its own borders, Dubai embarked on a massive six-year building boom that turned sand dunes into a glittering metropolis and the city into a magnet for the young, rich and glamorous.
No project was too lavish for Dubai. It is home to the world's biggest shopping mall - the 1,200-shop Dubai Mall - and will have the world's tallest building when the 160-storey Burj Dubai is completed next year at an estimated cost of US$1 billion.
The Burj Al Arab hotel was itself the tallest building in the world when it was completed in 1999. The hotel gave itself a seven-star rating - the first in the world - and watched as the publicity, room rates and bookings rocketed.
Dubai made the unthinkable possible with Ski Dubai, which opened in 2006 to offer the ultimate in luxury: skiing in the desert, on one of the world's largest indoor ski slopes with fresh powder all year round.
Celebrities converged on Dubai's sands, with David Beckham and Brad Pitt reportedly owning villas in the Palm Jumeirah development, the only one of three planned palm-tree shaped islands that has been completed.
The future of the other two Palm islands is now up in the air - much like that of Dubai itself.
BT : Resorts World househunt reaches into HDB heartland
Business Times - 28 Nov 2009
Resorts World househunt reaches into HDB heartland
Property consultants say Sentosa IR is scouting for rental flats for some of its foreign staff
By EMILYN YAP
VISITORS to the Universal Studios theme park in Resorts World at Sentosa (RWS) will soon be able to live out adventures seen in various movies. There will be zones based on films such as Madagascar, Shrek and Jurassic Park, to bring thrill-seekers to a make-believe world far away from home.
For some employees at RWS, being away from home will also be a new adventure. The integrated resort will be hiring a considerable number of foreigners, and it is said to be searching for hundreds of HDB flats to help them settle in. C&H Realty managing director Albert Lu said that RWS is looking for HDB flats to rent, and approached his firm a few months ago to find out about the rental market. RWS did not share many details then, but the number of flats is 'in the hundreds', he told BT.
Another property market insider who declined to be named also said that RWS has been 'aggressively looking for flats to rent', and is probably in need of 'a few hundred' units.
So far, there is no official statement on the number of foreigners that RWS could hire. Overall, it will employ about 10,000 people when it opens next year. RWS spokesman Robin Goh told BT that it remains committed in recruiting Singaporeans and Singapore permanent residents.
A media report in June noted that RWS had hired 600 workers, of whom 80 per cent are locals. Assuming that the local-foreign ratio stays constant, its headcount from abroad could reach 2,000.
Going by HDB rules, one- or two-room flats can each be rented out to at most four people; three-room flats to at most six people; and four-roomers or bigger flats to at most nine people. Assuming that RWS hires 2,000 foreigners and all of them rent four-room flats, it would need to find at least about 220 units.
Mr Goh said that RWS started looking for 'suitable accommodation' for foreign staff early this year, with help from a 'reputable service provider'. He did not specify the types and number of housing involved.
'To help reduce their stress and anxiety of relocating overseas, we assist our foreign team members in addressing one of their basic needs - accommodation,' he said. 'We make sure that they settle down comfortably as well as enjoy working and living in Singapore.' And it is important for RWS to keep its employees happy because that could enhance their work performance and in turn, visitors' experience at the integrated resort, he said.
Mr Goh added that RWS considered several factors in choosing accommodation, including the place's accessibility and proximity to amenities such as convenience stores. 'The locations we have chosen facilitate good interaction between the local community and foreign talent,' he added. BT understands that units at Tiong Bahru and Toa Payoh have been found.
C&H Realty's Mr Lu said that he believes that RWS would want flats in areas near Sentosa, such as Telok Blangah. But he pointed out that the supply of rental flats in such central locations is tight, and RWS might have to broaden its search to estates near MRT stations.
Rents of HDB flats in the central region rose between the second and third quarter of the year. For instance, the median sub-letting rent for a four-room flat in the area increased from about $2,000 to $2,200.
HDB's website shows that up to the third quarter of this year, the agency has granted 11,235 sub-letting approvals. The bulk of these - 3,978 or 35 per cent - were for three-room flats. Another 3,593 approvals were for four-room flats.
Also, looking across all towns and flat types, median sub-letting rents have remained relatively steady from the first to third quarter.
Dennis Wee Group director Chris Koh observed that the HDB rental market is 'more stabilised' compared with the period when collective sales were rife and many displaced residents were looking for lodging. His firm has seen more rental enquiries direct from foreigners working with RWS.
Marina Bay Sands, the other integrated resort due to open next year, has not engaged property agents to look for accommodation for its foreign staff. 'Housing arrangements will take into account the needs of the prospective foreign employees,' said a spokeswoman. 'At this time, Marina Bay Sands is giving priority to attracting and selecting Singaporeans and permanent residents for our job opportunities.'
Resorts World househunt reaches into HDB heartland
Property consultants say Sentosa IR is scouting for rental flats for some of its foreign staff
By EMILYN YAP
VISITORS to the Universal Studios theme park in Resorts World at Sentosa (RWS) will soon be able to live out adventures seen in various movies. There will be zones based on films such as Madagascar, Shrek and Jurassic Park, to bring thrill-seekers to a make-believe world far away from home.
For some employees at RWS, being away from home will also be a new adventure. The integrated resort will be hiring a considerable number of foreigners, and it is said to be searching for hundreds of HDB flats to help them settle in. C&H Realty managing director Albert Lu said that RWS is looking for HDB flats to rent, and approached his firm a few months ago to find out about the rental market. RWS did not share many details then, but the number of flats is 'in the hundreds', he told BT.
Another property market insider who declined to be named also said that RWS has been 'aggressively looking for flats to rent', and is probably in need of 'a few hundred' units.
So far, there is no official statement on the number of foreigners that RWS could hire. Overall, it will employ about 10,000 people when it opens next year. RWS spokesman Robin Goh told BT that it remains committed in recruiting Singaporeans and Singapore permanent residents.
A media report in June noted that RWS had hired 600 workers, of whom 80 per cent are locals. Assuming that the local-foreign ratio stays constant, its headcount from abroad could reach 2,000.
Going by HDB rules, one- or two-room flats can each be rented out to at most four people; three-room flats to at most six people; and four-roomers or bigger flats to at most nine people. Assuming that RWS hires 2,000 foreigners and all of them rent four-room flats, it would need to find at least about 220 units.
Mr Goh said that RWS started looking for 'suitable accommodation' for foreign staff early this year, with help from a 'reputable service provider'. He did not specify the types and number of housing involved.
'To help reduce their stress and anxiety of relocating overseas, we assist our foreign team members in addressing one of their basic needs - accommodation,' he said. 'We make sure that they settle down comfortably as well as enjoy working and living in Singapore.' And it is important for RWS to keep its employees happy because that could enhance their work performance and in turn, visitors' experience at the integrated resort, he said.
Mr Goh added that RWS considered several factors in choosing accommodation, including the place's accessibility and proximity to amenities such as convenience stores. 'The locations we have chosen facilitate good interaction between the local community and foreign talent,' he added. BT understands that units at Tiong Bahru and Toa Payoh have been found.
C&H Realty's Mr Lu said that he believes that RWS would want flats in areas near Sentosa, such as Telok Blangah. But he pointed out that the supply of rental flats in such central locations is tight, and RWS might have to broaden its search to estates near MRT stations.
Rents of HDB flats in the central region rose between the second and third quarter of the year. For instance, the median sub-letting rent for a four-room flat in the area increased from about $2,000 to $2,200.
HDB's website shows that up to the third quarter of this year, the agency has granted 11,235 sub-letting approvals. The bulk of these - 3,978 or 35 per cent - were for three-room flats. Another 3,593 approvals were for four-room flats.
Also, looking across all towns and flat types, median sub-letting rents have remained relatively steady from the first to third quarter.
Dennis Wee Group director Chris Koh observed that the HDB rental market is 'more stabilised' compared with the period when collective sales were rife and many displaced residents were looking for lodging. His firm has seen more rental enquiries direct from foreigners working with RWS.
Marina Bay Sands, the other integrated resort due to open next year, has not engaged property agents to look for accommodation for its foreign staff. 'Housing arrangements will take into account the needs of the prospective foreign employees,' said a spokeswoman. 'At this time, Marina Bay Sands is giving priority to attracting and selecting Singaporeans and permanent residents for our job opportunities.'
BT : From mass market to high end
Business Times - 28 Nov 2009
From mass market to high end
Analysts upgrade property counters with exposure to the top end of the sector
By UMA SHANKARI
SALES of high-end homes have picked up. And as a result, analysts are more upbeat about property counters with exposure to the top end of the market.
DBS Group Research has upgraded its calls on SC Global, Ho Bee Investment and Wheelock Properties to 'buy'. The three developers have significant exposure to the high end of the market.
'We see value emerging for these companies, following price consolidation in recent months, and this is backed by our expectation of a pick-up in activity in the high-end segment come 2010,' DBS analyst Adrian Chua said in a Nov 17 report.
DMG & Partners Securities analyst Brandon Lee said in a Nov 16 note: 'The confluence of the integrated resorts' opening, strong real estate fundamentals and more positive economic newsflow should lead to an upswing in high-end prices from current levels over the next six months.'
Mr Lee issued fresh 'buy' calls on City Developments, Wing Tai Holdings and SC Global.
The property recovery started in the mass market, where sales began to improve as early as February this year. Activity at the top end of the market only started to pick up in Q3.
'The number of units transacted at more than $2,000 psf - our definition of high-end - is just below the number of units we saw back in Q1 2007, prior to the run-up in the high-end market,' said DBS's Mr Chua.
And while the property market cooled in October, the high end held up. Developers sold 811 new private homes in October, down from the 1,143 in September.
But the number of high-end homes sold climbed month on month. Goldman Sachs said that 285 homes with a median price of more than $1,500 psf were sold in October 2009, compared with 115 in September. Prime district sales are now the driver, the bank said on Nov 16.
Analysts cited a number of reasons for betting on high-end homes. Policy risk is smaller for this segment as government policies tend to focus on the mass market.
The government announced cooling measures in September and warned recently that further pre-emptive measures will be taken, if necessary, to ensure a stable market.
But the government has traditionally been less concerned with the top end of the market, as this is seen to be the playing field of high net-worth individuals.
Any new cooling measures, if prudent, will also only have a near-term negative impact on share prices, as improving property fundamentals and still attractive valuations matter more, according to Goldman Sachs analysts Paul Lian and Rishab Bengani. They have 'buy' calls on two property stocks - CapitaLand and City Developments.
Another boon for the high end is the opening of the integrated resorts (IRs) in early 2010, which could boost demand from foreigners in particular.
DBS's Mr Chua said that high-end homes in Singapore now look relatively cheap compared to those in Hong Kong - similar to the valuation gap before the 2007 high-end run here. He said that the high-end segment here could also be a beneficiary of Chinese demand, which did not factor in a big way in 2007 but could be a force in 2010.
Looking ahead, top-end prices are expected to trend upwards. Prices here have stayed between $1,750 and $1,825 psf over the past quarter, up 38-44 per cent from the bottom in April 09, DMG's Mr Lee said. 'Nonetheless, this represents 15-20 per cent off Q4 2007 peaks, which should head upwards over the subsequent six months in the wake of the IRs' opening and improved economy.'
Property analysts are also encouraged by developers' Q3 results. They came in mostly ahead of expectations, with year-on-year bottom-line growth.
'Perhaps the most important takeaway is the substantial improvement in developers' balance sheets,' CIMB Research said in its Q3 2009 earnings round-up. 'Robust property sales and stabilising asset values helped push down average net gearing from 0.5 times in Q2 2009 to 0.3 times for developers under our coverage.'
From mass market to high end
Analysts upgrade property counters with exposure to the top end of the sector
By UMA SHANKARI
SALES of high-end homes have picked up. And as a result, analysts are more upbeat about property counters with exposure to the top end of the market.
DBS Group Research has upgraded its calls on SC Global, Ho Bee Investment and Wheelock Properties to 'buy'. The three developers have significant exposure to the high end of the market.
'We see value emerging for these companies, following price consolidation in recent months, and this is backed by our expectation of a pick-up in activity in the high-end segment come 2010,' DBS analyst Adrian Chua said in a Nov 17 report.
DMG & Partners Securities analyst Brandon Lee said in a Nov 16 note: 'The confluence of the integrated resorts' opening, strong real estate fundamentals and more positive economic newsflow should lead to an upswing in high-end prices from current levels over the next six months.'
Mr Lee issued fresh 'buy' calls on City Developments, Wing Tai Holdings and SC Global.
The property recovery started in the mass market, where sales began to improve as early as February this year. Activity at the top end of the market only started to pick up in Q3.
'The number of units transacted at more than $2,000 psf - our definition of high-end - is just below the number of units we saw back in Q1 2007, prior to the run-up in the high-end market,' said DBS's Mr Chua.
And while the property market cooled in October, the high end held up. Developers sold 811 new private homes in October, down from the 1,143 in September.
But the number of high-end homes sold climbed month on month. Goldman Sachs said that 285 homes with a median price of more than $1,500 psf were sold in October 2009, compared with 115 in September. Prime district sales are now the driver, the bank said on Nov 16.
Analysts cited a number of reasons for betting on high-end homes. Policy risk is smaller for this segment as government policies tend to focus on the mass market.
The government announced cooling measures in September and warned recently that further pre-emptive measures will be taken, if necessary, to ensure a stable market.
But the government has traditionally been less concerned with the top end of the market, as this is seen to be the playing field of high net-worth individuals.
Any new cooling measures, if prudent, will also only have a near-term negative impact on share prices, as improving property fundamentals and still attractive valuations matter more, according to Goldman Sachs analysts Paul Lian and Rishab Bengani. They have 'buy' calls on two property stocks - CapitaLand and City Developments.
Another boon for the high end is the opening of the integrated resorts (IRs) in early 2010, which could boost demand from foreigners in particular.
DBS's Mr Chua said that high-end homes in Singapore now look relatively cheap compared to those in Hong Kong - similar to the valuation gap before the 2007 high-end run here. He said that the high-end segment here could also be a beneficiary of Chinese demand, which did not factor in a big way in 2007 but could be a force in 2010.
Looking ahead, top-end prices are expected to trend upwards. Prices here have stayed between $1,750 and $1,825 psf over the past quarter, up 38-44 per cent from the bottom in April 09, DMG's Mr Lee said. 'Nonetheless, this represents 15-20 per cent off Q4 2007 peaks, which should head upwards over the subsequent six months in the wake of the IRs' opening and improved economy.'
Property analysts are also encouraged by developers' Q3 results. They came in mostly ahead of expectations, with year-on-year bottom-line growth.
'Perhaps the most important takeaway is the substantial improvement in developers' balance sheets,' CIMB Research said in its Q3 2009 earnings round-up. 'Robust property sales and stabilising asset values helped push down average net gearing from 0.5 times in Q2 2009 to 0.3 times for developers under our coverage.'
Friday, November 27, 2009
ST : Cool response to smaller HDB flats
Nov 27, 2009
Cool response to smaller HDB flats
Turnaround in property market may have hit demand, say analysts
By Jessica Cheam
ALMOST a year ago, the Government pledged to ramp up the supply of smaller flats to meet demand from downgraders amid Singapore's deepest recession.
But 12 months on, new Housing Board figures obtained by The Straits Times show that the take-up rate of these smaller flats has not been as strong as expected.
Smaller flats are defined as studio apartments, two-room and three-room units.
The weakest sales are in the two-room category. At Senja Green in Bukit Panjang launched under the HDB's build-to-order (BTO) scheme in August last year, the take-up rate of two-room flats was 20 per cent - 19 flats - of the 96 two-room flats offered.
At two other projects, Jade Spring @ Yishun Phase 2 and Dew Spring @ Yishun, the take-up rate for two-room flats was 81 and 53 per cent of flat supply respectively.
HDB's numbers show the application rates for smaller flat types ranged from about 40 per cent to three times the number of flats offered - less than the typical four to five times seen for four- and five-room units.
However, when it came to sales of smaller flats, studio apartments and three-roomers did relatively well compared to two-roomers, with take-up rates of about 96 to 100 per cent.
Analysts say the less-than-hot demand could be due to the turnaround in the property market in the second quarter of this year, which came sooner than expected.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said people could be holding off on their downgrading plans because HDB resale flat prices have risen.
'The longer home owners hold on to their flats, the higher their capital gains,' he said.
HDB data reveals that the supply of smaller flats has been increasing in recent years - after a lapse of about two decades during which it stopped building this type of flats.
In 2007, HDB offered 1,403 such flats. Last year, it supplied 1,164 units and for this year, it will supply 3,600 such homes.
HDB said it intends to launch 1,400 two- and three-room flats under its BTO programme next month.
The HDB stopped building two- and three-roomers in the 1980s as the growing number of families fuelled demand for bigger flats, but they were re-introduced in 2004 to meet increasing demand.
National Development Minister Mah Bow Tan announced last year that HDB would ramp up supply of such smaller flats.
This was meant to offer a steady stream of these flats for lower-income families who needed to downgrade amid the grimmer economic times.
Smaller flat types, not surprisingly, tend to be the cheaper HDB flats. At Dew Spring, for example, two-roomers were priced at $76,000 to $90,000; three-roomers were going for between $120,000 and $146,000; and four-roomers cost between $197,000 and $238,000.
Industry observers such as Chesterton Suntec International research and consultancy director Colin Tan pointed out that two-roomers might be less popular because of their small size of about 485sqft.
Studio apartments are aimed at a specific group - the elderly - and three-roomers appeal to families given their more spacious 700 sq ft or so.
'The market seems to be saying that it doesn't want two-room flats', but they could become more popular as they are built, as they offer downgraders a more immediate housing option, Mr Tan added.
HDB said that the take-up rates of two-roomers are usually lower at the initial stage after launch.
'However, despite the initial weaker demand, the take-up of two-room flats improves during subsequent sales exercises when the flats are nearing completion or are completed,' it said in a statement.
Housewife Koh Gay Hua, 50, considered downgrading from her five-room flat in Bukit Panjang to a smaller flat at the height of the recession.
'But now, with HDB prices still rising, and with some help from my children, I don't have to sell,' she said.
On next year's supply of flats, HDB is 'monitoring response to the smaller flats and will make adjustments to the supply to meet the needs of flat buyers'.
jcheam@sph.com.sg
--------------------------------------------------------------------------------
NO NEED TO DOWNGRADE
'With HDB prices still rising, and with some help from my children, I don't have to sell.'
Housewife Koh Gay Hua, 50, who had considered downgrading from her five-room flat in Bukit Panjang to a smaller flat at the height of the recession
Cool response to smaller HDB flats
Turnaround in property market may have hit demand, say analysts
By Jessica Cheam
ALMOST a year ago, the Government pledged to ramp up the supply of smaller flats to meet demand from downgraders amid Singapore's deepest recession.
But 12 months on, new Housing Board figures obtained by The Straits Times show that the take-up rate of these smaller flats has not been as strong as expected.
Smaller flats are defined as studio apartments, two-room and three-room units.
The weakest sales are in the two-room category. At Senja Green in Bukit Panjang launched under the HDB's build-to-order (BTO) scheme in August last year, the take-up rate of two-room flats was 20 per cent - 19 flats - of the 96 two-room flats offered.
At two other projects, Jade Spring @ Yishun Phase 2 and Dew Spring @ Yishun, the take-up rate for two-room flats was 81 and 53 per cent of flat supply respectively.
HDB's numbers show the application rates for smaller flat types ranged from about 40 per cent to three times the number of flats offered - less than the typical four to five times seen for four- and five-room units.
However, when it came to sales of smaller flats, studio apartments and three-roomers did relatively well compared to two-roomers, with take-up rates of about 96 to 100 per cent.
Analysts say the less-than-hot demand could be due to the turnaround in the property market in the second quarter of this year, which came sooner than expected.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said people could be holding off on their downgrading plans because HDB resale flat prices have risen.
'The longer home owners hold on to their flats, the higher their capital gains,' he said.
HDB data reveals that the supply of smaller flats has been increasing in recent years - after a lapse of about two decades during which it stopped building this type of flats.
In 2007, HDB offered 1,403 such flats. Last year, it supplied 1,164 units and for this year, it will supply 3,600 such homes.
HDB said it intends to launch 1,400 two- and three-room flats under its BTO programme next month.
The HDB stopped building two- and three-roomers in the 1980s as the growing number of families fuelled demand for bigger flats, but they were re-introduced in 2004 to meet increasing demand.
National Development Minister Mah Bow Tan announced last year that HDB would ramp up supply of such smaller flats.
This was meant to offer a steady stream of these flats for lower-income families who needed to downgrade amid the grimmer economic times.
Smaller flat types, not surprisingly, tend to be the cheaper HDB flats. At Dew Spring, for example, two-roomers were priced at $76,000 to $90,000; three-roomers were going for between $120,000 and $146,000; and four-roomers cost between $197,000 and $238,000.
Industry observers such as Chesterton Suntec International research and consultancy director Colin Tan pointed out that two-roomers might be less popular because of their small size of about 485sqft.
Studio apartments are aimed at a specific group - the elderly - and three-roomers appeal to families given their more spacious 700 sq ft or so.
'The market seems to be saying that it doesn't want two-room flats', but they could become more popular as they are built, as they offer downgraders a more immediate housing option, Mr Tan added.
HDB said that the take-up rates of two-roomers are usually lower at the initial stage after launch.
'However, despite the initial weaker demand, the take-up of two-room flats improves during subsequent sales exercises when the flats are nearing completion or are completed,' it said in a statement.
Housewife Koh Gay Hua, 50, considered downgrading from her five-room flat in Bukit Panjang to a smaller flat at the height of the recession.
'But now, with HDB prices still rising, and with some help from my children, I don't have to sell,' she said.
On next year's supply of flats, HDB is 'monitoring response to the smaller flats and will make adjustments to the supply to meet the needs of flat buyers'.
jcheam@sph.com.sg
--------------------------------------------------------------------------------
NO NEED TO DOWNGRADE
'With HDB prices still rising, and with some help from my children, I don't have to sell.'
Housewife Koh Gay Hua, 50, who had considered downgrading from her five-room flat in Bukit Panjang to a smaller flat at the height of the recession
ST : Feeding and housing a new Singapore
Nov 27, 2009
Feeding and housing a new Singapore
IT IS a crisis that jumps from today's headlines: rising sea levels threaten to engulf Singapore and make life and economic activity intolerable for its five-million strong population.
While the risk seems real if the climate change experts are to be believed, so is the solution going by the architects at Woha.
The team put its collective heads together with boffins from the National University of Singapore and design firms Black Design and Obilia to devise a nifty answer: a ring of 15m-high dykes along the coastline that can double as freshwater reservoirs to supplement inland lakes.
Their blueprint seems to have all the bases covered. The dykes do not cost taxpayers too much because private developers buying coastal plots for projects have to integrate them into their projects.
As a result, the dykes take on many forms and guises - amusement parks, rolling cliffs, fruit valleys, even padi fields. They become tourist attractions in themselves.
Underground MRT tunnels are moved up as water levels rise but they carry more than just trains in this new world. Multi-level viaducts 15m above the ground stack bicycle lanes and running tracks on top of the train tracks.
And energy supplies are secure because the northern part of the island has become a solar farm. All buildings within the 100sqkm zone are fitted with rooftop mirrors directing sunlight onto a 900m 'energy tower' which then converts the sun's rays to electricity.
In the north-west, waves supply power. Underwater turbines harness the energy from seawater moving through a narrowed channel, built in front of lushly landscaped apartment blocks.
Meanwhile, Jurong has become a plantation to feed Singapore. The industrial buildings of old are stacked underneath fields that grow anything, from rice to coconuts. There are even fish farms within the compact 'plantation'.
The East Coast retains its laid-back charm. High-density housing developments stand above dykes integrated with attractions like seafood farms, scuba-diving schools and spas.
With seafront homes so appealing, older Housing Board flats inland fall out of favour. The vacant HDB blocks are converted to high-rise farms. Each block houses just one or two families, with the rest taken up by pigs, cows and chickens on some levels, and vegetables on others.
Farming, in 2050, has become a new-age industry in a country that has kept the tide at bay.
Feeding and housing a new Singapore
IT IS a crisis that jumps from today's headlines: rising sea levels threaten to engulf Singapore and make life and economic activity intolerable for its five-million strong population.
While the risk seems real if the climate change experts are to be believed, so is the solution going by the architects at Woha.
The team put its collective heads together with boffins from the National University of Singapore and design firms Black Design and Obilia to devise a nifty answer: a ring of 15m-high dykes along the coastline that can double as freshwater reservoirs to supplement inland lakes.
Their blueprint seems to have all the bases covered. The dykes do not cost taxpayers too much because private developers buying coastal plots for projects have to integrate them into their projects.
As a result, the dykes take on many forms and guises - amusement parks, rolling cliffs, fruit valleys, even padi fields. They become tourist attractions in themselves.
Underground MRT tunnels are moved up as water levels rise but they carry more than just trains in this new world. Multi-level viaducts 15m above the ground stack bicycle lanes and running tracks on top of the train tracks.
And energy supplies are secure because the northern part of the island has become a solar farm. All buildings within the 100sqkm zone are fitted with rooftop mirrors directing sunlight onto a 900m 'energy tower' which then converts the sun's rays to electricity.
In the north-west, waves supply power. Underwater turbines harness the energy from seawater moving through a narrowed channel, built in front of lushly landscaped apartment blocks.
Meanwhile, Jurong has become a plantation to feed Singapore. The industrial buildings of old are stacked underneath fields that grow anything, from rice to coconuts. There are even fish farms within the compact 'plantation'.
The East Coast retains its laid-back charm. High-density housing developments stand above dykes integrated with attractions like seafood farms, scuba-diving schools and spas.
With seafront homes so appealing, older Housing Board flats inland fall out of favour. The vacant HDB blocks are converted to high-rise farms. Each block houses just one or two families, with the rest taken up by pigs, cows and chickens on some levels, and vegetables on others.
Farming, in 2050, has become a new-age industry in a country that has kept the tide at bay.
ST : 17,300 Punggol units completed so far
Some of the HDB flats under construction in Punggol. Almost 44 per cent of new flats launched in Singapore in the last two years have been in Punggol. -- ST PHOTO: DESMOND WEE
CLOSE to two-thirds of Punggol flats launched in the last decade have been completed so far, as the Government focuses its efforts on building up Singapore's north-east neighbourhood.
There have been 27,000 Punggol flats launched since 1998, out of which 17,300 have been completed.
The updated figures were announced last night by Deputy Prime Minister Teo Chee Hean, at an exhibition showcasing the winning entries of the Punggol Waterfront Housing Design Competition.
The results were released to the media earlier this month. The winning entry, by international architectural firm Group8asia and local firm Aedas, features sky terraces and a resort-style environment.
This housing project of 1,200 units fronting an upcoming waterway is due to be launched by the middle of next year. It will be part of a cluster of an additional 21,000 flats and private homes.
Punggol has become a focal point again for the Government in recent years, as it is slated to evolve into a vibrant waterfront town.
In the 1990s, efforts to develop the estate were stymied by the Asian financial crisis.
The plan was resurrected in 2007, under the Punggol 21-plus programme.
Since then, despite yet another economic downturn, there has been aggressive efforts to build up Punggol.
Almost 44 per cent of new flats launched in Singapore in the last two years have been in Punggol.
Besides new housing, a 4.2km waterway will also be developed. Its name - My Waterway@Punggol - was announced last night.
Mr Teo said that the canal is still on track for completion at the end of next year.
Next month, workers will start landscaping work at the town park and the areas along the waterway promenade.
'We all look forward to canoeing, kayaking or enjoying other water activities right at the doorsteps of our Punggol residents,' said Mr Teo, who is a Member of Parliament for the Pasir Ris-Punggol GRC.
ST : 27,000 flats launched
Nov 26, 2009
27,000 flats launched
By Tessa Wong
More than two-thirds of Punggol flats launched in the last decade have been completed so far, as the Government focuses its efforts on building up Singapore's north-east neighbourhood. -- ST PHOTO: DESMOND WEE
NEARLY two-thirds of Punggol flats launched in the last decade have been completed so far, as the Government focuses its efforts on building up Singapore's north-east neighbourhood.
There have been 27,000 Punggol flats launched since 1998, out of which 17,300 have been completed.
The updated figures were announced lon Thursday night by Deputy Prime Minister Teo Chee Hean, at an exhibition showcasing the winning entries of the Punggol Waterfront Housing Design Competition.
The results were released to the media earlier this month. The winning entry, by international architectural firm Group8asia and local firm Aedas, features sky terraces and a resort-style environment.
This housing project of 1,200 units fronting an upcoming waterway is due to be launched by the middle of next year. It will be part of a cluster of an additional 21,000 housing flats and private homes.
Punggol has become a focal point again for the Government in recent years, as it is slated to evolve into a vibrant waterfront town.
27,000 flats launched
By Tessa Wong
More than two-thirds of Punggol flats launched in the last decade have been completed so far, as the Government focuses its efforts on building up Singapore's north-east neighbourhood. -- ST PHOTO: DESMOND WEE
NEARLY two-thirds of Punggol flats launched in the last decade have been completed so far, as the Government focuses its efforts on building up Singapore's north-east neighbourhood.
There have been 27,000 Punggol flats launched since 1998, out of which 17,300 have been completed.
The updated figures were announced lon Thursday night by Deputy Prime Minister Teo Chee Hean, at an exhibition showcasing the winning entries of the Punggol Waterfront Housing Design Competition.
The results were released to the media earlier this month. The winning entry, by international architectural firm Group8asia and local firm Aedas, features sky terraces and a resort-style environment.
This housing project of 1,200 units fronting an upcoming waterway is due to be launched by the middle of next year. It will be part of a cluster of an additional 21,000 housing flats and private homes.
Punggol has become a focal point again for the Government in recent years, as it is slated to evolve into a vibrant waterfront town.
Thursday, November 26, 2009
ST : New homes near former tomb of Raffles' 'mistress'
Nov 26, 2009
New homes near former tomb of Raffles' 'mistress'
The body of Tan Chwee Neo was buried next to the site for Fifty-Two Stevens for nearly 100 years before being exhumed in 2003 and moved to a temple. -- ST PHOTO: TERENCE TAN
A NEW residential development is set to be built on prime land near the former tomb of a Chinese woman believed to have been the mistress of Sir Stamford Raffles.
Developer Tang City Homes is building a 20 unit residential block at 52, Stevens Road, next to the former resting place of Tan Chwee Neo, alleged to be the lover of Singapore's founder.
Her remains were left there for nearly 100 years before they were exhumed in 2003 and moved to a temple.
The new freehold Fifty-Two Stevens project, which is located opposite Stevens Close and near the Metropolitan YMCA and The Pines Club, is likely to be launched during the first quarter of next year, after Chinese New Year.
It comprises mainly one-bedroom apartments and is expected to be priced just below $2,000 per sq ft.
Despite claims at the time by family members that Tan was Raffles' mistress, some have cast doubt on the link.
In 2002, Professor Ernest Chew of the National University of Singapore's history department dismissed the notion on the grounds that she may not have been a contemporary of Raffles.
According to her ancestral tablet, she was born in 1818 and died in 1904.
This would have made her five years old during Raffles' final visit to Singapore in 1823.
However, her family claims the birth date records were inaccurate.
New homes near former tomb of Raffles' 'mistress'
The body of Tan Chwee Neo was buried next to the site for Fifty-Two Stevens for nearly 100 years before being exhumed in 2003 and moved to a temple. -- ST PHOTO: TERENCE TAN
A NEW residential development is set to be built on prime land near the former tomb of a Chinese woman believed to have been the mistress of Sir Stamford Raffles.
Developer Tang City Homes is building a 20 unit residential block at 52, Stevens Road, next to the former resting place of Tan Chwee Neo, alleged to be the lover of Singapore's founder.
Her remains were left there for nearly 100 years before they were exhumed in 2003 and moved to a temple.
The new freehold Fifty-Two Stevens project, which is located opposite Stevens Close and near the Metropolitan YMCA and The Pines Club, is likely to be launched during the first quarter of next year, after Chinese New Year.
It comprises mainly one-bedroom apartments and is expected to be priced just below $2,000 per sq ft.
Despite claims at the time by family members that Tan was Raffles' mistress, some have cast doubt on the link.
In 2002, Professor Ernest Chew of the National University of Singapore's history department dismissed the notion on the grounds that she may not have been a contemporary of Raffles.
According to her ancestral tablet, she was born in 1818 and died in 1904.
This would have made her five years old during Raffles' final visit to Singapore in 1823.
However, her family claims the birth date records were inaccurate.
Measures to raise standards of real estate sector won't affect prices: analysts
Measures to raise standards of real estate sector won't affect prices: analysts
By May Wong, Channel NewsAsia | Posted: 25 November 2009 2133 hrs
SINGAPORE: Industry players say the upcoming new measures to improve standards of the real estate sector here will not affect the property prices.
The government has just finished gathering suggestions for a new regulatory framework for the industry. It will likely be introduced by the second half of next year.
Industry practitioners said the government will likely introduce a central registry to list all accredited agents, and a demerit point system to penalise errant agents and agencies.
The new measures aim to set a basic standard of professionalism in the sector.
While observers expect a slight shake-up in the industry once the measures are enforced, many do not believe property prices will be hit.
PropNex's CEO, Mohamed Ismail, said: "There should not have any impact because we're talking about increasing the service standards of the agents, in other words, professionalism.
"This should, in fact, give greater confidence to investors abroad or for that matter, any of the local people who intend to upgrade from a public to a private property. So it's plus-plus in terms of overall scenario."
By May Wong, Channel NewsAsia | Posted: 25 November 2009 2133 hrs
SINGAPORE: Industry players say the upcoming new measures to improve standards of the real estate sector here will not affect the property prices.
The government has just finished gathering suggestions for a new regulatory framework for the industry. It will likely be introduced by the second half of next year.
Industry practitioners said the government will likely introduce a central registry to list all accredited agents, and a demerit point system to penalise errant agents and agencies.
The new measures aim to set a basic standard of professionalism in the sector.
While observers expect a slight shake-up in the industry once the measures are enforced, many do not believe property prices will be hit.
PropNex's CEO, Mohamed Ismail, said: "There should not have any impact because we're talking about increasing the service standards of the agents, in other words, professionalism.
"This should, in fact, give greater confidence to investors abroad or for that matter, any of the local people who intend to upgrade from a public to a private property. So it's plus-plus in terms of overall scenario."
Consumers back proposals to regulate real estate agents
Consumers back proposals to regulate real estate agents
By May Wong/Yasmine Yahya, Channel NewsAsia | Posted: 25 November 2009 1341 hrs
SINGAPORE: Members of the public said that property agents must pass a standard industry entrance examination before they are allowed to practise.
The exam should not only test them on practical knowledge of the real estate industry and how to carry out their work, but it should cover ethics as well.
This was part of the feedback received during a public consultation exercise for a new regulatory framework for the real estate industry. The exercise gathered over 200 comments.
The public consultation is now closed, and the Ministry of National Development (MND) said that most of the feedback received was in line with the suggestions made by industry experts during an earlier consultation exercise.
The MND spent about two months consulting industry practitioners and the public on what the new regulatory framework for the real estate industry should comprise. The key elements of the framework are expected to be announced early next year.
Most complaints about property agents stem from unethical practices or misconduct. Hence, it is no wonder why consumers who gave their views on the real estate regulatory framework supported proposed measures to weed out errant agents.
Members of the public welcomed the move to license individual agents. They also supported the proposal to disallow an agent from representing both the buyer and the seller of a property.
Some respondents also suggested that the government regulate the commission earned by agents by setting a standard commission guideline. This will serve to curb undercutting among agents and protect less-educated consumers from being over-charged by agents and minimise disputes between consumers and agents.
Other suggestions on regulating the industry include educating consumers on their rights and responsibilities, and disallowing property agencies and agents from buying properties directly from sellers or developers and reselling them during good times.
Industry players hope the government will implement the minimum entry qualification for agents soon.
Dr Tan Tee Khoon CEO of Singapore Accredited Estate Agencies, said: "This is to stipulate competence so that when a client is dealing with a particular agent, he or she would know that this agent has the requisite body of knowledge to deal with real estate transactions. And the demerit points system will help to provide a deterrence to negative professional conduct."
But industry players said the suggestion to limit the size of agencies to better control agents was impractical.
PropNex CEO, Mohamed Ismail, said: "We've seen such things being implemented in Malaysia. And they (agencies) beat the system by having more licences and one of the main problem they realise here is that when you limit, you not only curtail entrepreneurship but also they don't enjoy the economies of scale.
"And today, all the big agencies in Singapore, because they do have these numbers, they're able to provide greater support like in-house legal, conventions, training, mediations, disciplinary board within the company. Such things are only possible when you have the numbers."
Even though the government has only received over 200 suggestions from the public, industry players said it is not the quantity but the quality of the feedback that counts.
In fact, they said the public's proposals come as no surprise, because ultimately the practitioners and the consumers are making the same call, that is, to raise the professionalism and standards of the real estate sector in Singapore.
By May Wong/Yasmine Yahya, Channel NewsAsia | Posted: 25 November 2009 1341 hrs
SINGAPORE: Members of the public said that property agents must pass a standard industry entrance examination before they are allowed to practise.
The exam should not only test them on practical knowledge of the real estate industry and how to carry out their work, but it should cover ethics as well.
This was part of the feedback received during a public consultation exercise for a new regulatory framework for the real estate industry. The exercise gathered over 200 comments.
The public consultation is now closed, and the Ministry of National Development (MND) said that most of the feedback received was in line with the suggestions made by industry experts during an earlier consultation exercise.
The MND spent about two months consulting industry practitioners and the public on what the new regulatory framework for the real estate industry should comprise. The key elements of the framework are expected to be announced early next year.
Most complaints about property agents stem from unethical practices or misconduct. Hence, it is no wonder why consumers who gave their views on the real estate regulatory framework supported proposed measures to weed out errant agents.
Members of the public welcomed the move to license individual agents. They also supported the proposal to disallow an agent from representing both the buyer and the seller of a property.
Some respondents also suggested that the government regulate the commission earned by agents by setting a standard commission guideline. This will serve to curb undercutting among agents and protect less-educated consumers from being over-charged by agents and minimise disputes between consumers and agents.
Other suggestions on regulating the industry include educating consumers on their rights and responsibilities, and disallowing property agencies and agents from buying properties directly from sellers or developers and reselling them during good times.
Industry players hope the government will implement the minimum entry qualification for agents soon.
Dr Tan Tee Khoon CEO of Singapore Accredited Estate Agencies, said: "This is to stipulate competence so that when a client is dealing with a particular agent, he or she would know that this agent has the requisite body of knowledge to deal with real estate transactions. And the demerit points system will help to provide a deterrence to negative professional conduct."
But industry players said the suggestion to limit the size of agencies to better control agents was impractical.
PropNex CEO, Mohamed Ismail, said: "We've seen such things being implemented in Malaysia. And they (agencies) beat the system by having more licences and one of the main problem they realise here is that when you limit, you not only curtail entrepreneurship but also they don't enjoy the economies of scale.
"And today, all the big agencies in Singapore, because they do have these numbers, they're able to provide greater support like in-house legal, conventions, training, mediations, disciplinary board within the company. Such things are only possible when you have the numbers."
Even though the government has only received over 200 suggestions from the public, industry players said it is not the quantity but the quality of the feedback that counts.
In fact, they said the public's proposals come as no surprise, because ultimately the practitioners and the consumers are making the same call, that is, to raise the professionalism and standards of the real estate sector in Singapore.
URA releases site at Kaki Bukit for industrial development
URA releases site at Kaki Bukit for industrial development
By Yasmine Yahya, Channel NewsAsia | Posted: 25 November 2009 1319 hrs
SINGAPORE: The Urban Redevelopment Authority (URA) has released for sale a site at Kaki Bukit Avenue 4 for industrial development.
The land parcel has a site area of about three hectares and a gross plot ratio of 2.5.
The site will have a lease period of 60 years. It is being released under the government's Reserve List.
Under the Reserve List system, a site would only be put up for tender if a developer's indicated minimum bid price in his application is acceptable to the government.
Developers interested in purchasing the site can now apply to URA for it to be put up for tender.
By Yasmine Yahya, Channel NewsAsia | Posted: 25 November 2009 1319 hrs
SINGAPORE: The Urban Redevelopment Authority (URA) has released for sale a site at Kaki Bukit Avenue 4 for industrial development.
The land parcel has a site area of about three hectares and a gross plot ratio of 2.5.
The site will have a lease period of 60 years. It is being released under the government's Reserve List.
Under the Reserve List system, a site would only be put up for tender if a developer's indicated minimum bid price in his application is acceptable to the government.
Developers interested in purchasing the site can now apply to URA for it to be put up for tender.
Boon Building at South Bridge Road goes on sale
Boon Building at South Bridge Road goes on sale
By Yasmine Yahya, Channel NewsAsia | Posted: 25 November 2009 1325 hrs
SINGAPORE: Boon Building at 61 South Bridge Road has been launched for sale through a tender.
The six-storey building is on a 999-year leasehold, sitting on a site area of about 2,300 square feet.
The building is zoned as a commercial site and will be sold with vacant possession.
DTZ Debenham Tie Leung has been appointed as the marketing agent for the sale.
DTZ said it expects the property to attract both end-users and small investors, and the availability of naming rights offers buyers the opportunity to carve out a flagship building with its own corporate identity.
By Yasmine Yahya, Channel NewsAsia | Posted: 25 November 2009 1325 hrs
SINGAPORE: Boon Building at 61 South Bridge Road has been launched for sale through a tender.
The six-storey building is on a 999-year leasehold, sitting on a site area of about 2,300 square feet.
The building is zoned as a commercial site and will be sold with vacant possession.
DTZ Debenham Tie Leung has been appointed as the marketing agent for the sale.
DTZ said it expects the property to attract both end-users and small investors, and the availability of naming rights offers buyers the opportunity to carve out a flagship building with its own corporate identity.
TODAY Online : Why you can't mortgage your flat
Why you can't mortgage your flat
05:55 AM Nov 26, 2009
Letter from Chan-Wong Jee Choo Lily Deputy Director (Policy and Property) Housing and Development Board (HDB)
WE REFER to "A home to call your own" (Nov 9) by Mr Conrad Raj and the letter "Too many risks" (Nov 12) by Ms Elise Lee. Mr Raj has proposed for HDB to ease its restrictions on using flats as collateral, while Ms Lee thinks that, by doing so, owners risk losing their flats in the event of a loan default.
As HDB flats are provided essentially to meet the housing needs of Singaporeans, we agree with Ms Lee that flat-owners should not be unduly exposed to financial risks that could result in the loss of their home.
Prior to Aug 1994, HDB flat-owners could mortgage their flats to banks for credit facilities. However, as the bulk of these loans were used for share speculation and other risky ventures, the Government decided to discontinue such mortgages, except to finance the purchase of the HDB flat.
For most Singaporeans, the HDB flat is the single most valuable asset they own. Today, there is already a comprehensive range of options available to flat-owners who are looking to unlock their flat's value to provide some supplementary income. They can sublet their flats, buy a smaller flat, move to studio apartments, or opt for the Lease Buyback Scheme.
We thank Mr Raj and Ms Lee for their invaluable feedback.
05:55 AM Nov 26, 2009
Letter from Chan-Wong Jee Choo Lily Deputy Director (Policy and Property) Housing and Development Board (HDB)
WE REFER to "A home to call your own" (Nov 9) by Mr Conrad Raj and the letter "Too many risks" (Nov 12) by Ms Elise Lee. Mr Raj has proposed for HDB to ease its restrictions on using flats as collateral, while Ms Lee thinks that, by doing so, owners risk losing their flats in the event of a loan default.
As HDB flats are provided essentially to meet the housing needs of Singaporeans, we agree with Ms Lee that flat-owners should not be unduly exposed to financial risks that could result in the loss of their home.
Prior to Aug 1994, HDB flat-owners could mortgage their flats to banks for credit facilities. However, as the bulk of these loans were used for share speculation and other risky ventures, the Government decided to discontinue such mortgages, except to finance the purchase of the HDB flat.
For most Singaporeans, the HDB flat is the single most valuable asset they own. Today, there is already a comprehensive range of options available to flat-owners who are looking to unlock their flat's value to provide some supplementary income. They can sublet their flats, buy a smaller flat, move to studio apartments, or opt for the Lease Buyback Scheme.
We thank Mr Raj and Ms Lee for their invaluable feedback.
ST : Thumbs up for ending estate agents' dual role
Nov 26, 2009
Thumbs up for ending estate agents' dual role
Respondents in public consultation exercise also want an entrance exam
By Joyce Teo
A PROPOSAL to ban property agents from representing both the seller and buyer in the same transaction has generated strong public interest - with many giving the idea the thumbs up.
This practice, widespread in the HDB resale market, leaves the agent with a clear conflict of interest.
But there is likely to be resistance from some agents who stand to lose commissions if it is implemented.
The proposed ban is one of a series of possible changes in a planned industry overhaul after years of complaints about questionable practices by some agents.
A public consultation exercise on a planned real estate regulatory framework drew more than 200 comments and suggestions, said the Ministry of National Development (MND) yesterday.
The proposal most commented upon was the ban on dual representation.
Many respondents also backed a plan to ensure agents have a minimum entry qualification - probably an entrance exam. They felt it was important for the exam to cover ethics, given that complaints often stem from unethical practices.
Most respondents were 'generally supportive' of the key proposals, MND said. These also include mandatory accreditation of agencies and agents, keeping a public central registry for accredited agents, setting up an independent tribunal to resolve real estate disputes, and introducing a demerit points system.
The views received during the exercise - conducted from Oct 13 to Nov 17 - were generally consistent with feedback gathered during industry consultations a month earlier, MND said. The respondents included property agents and clients who had been caught in unpleasant encounters with agents, said a spokesman.
The Government aims to better safeguard consumers' interests and raise the level of professionalism in the industry.
Some of the key proposals are long overdue, some industry players said.
Most would be welcomed by the industry, but some agents may not be happy if dual representation is disallowed.
An agent representing both sides in an HDB deal can get two commissions, even though there is clear conflict as sellers would want the highest price for their property while buyers want the lowest.
'This practice has been around since the first day HDB flats were traded. Obviously, there will be some resistance from property agents,' said C&H Realty managing director Albert Lu.
As HDB flat transactions can be complex, it is useful for buyers and sellers to have their own agents, to ensure that an unrepresented party does not delay or mess up the transaction, he said.
Some respondents suggested disallowing dual representation for rental deals.
There were suggestions to mandate co-broking, to stipulate that all buyers are to engage an agent and to require agents to inform sellers of all offers, regardless of the offer price or agent fees.
There were also calls for a standard commission guideline to curb undercutting among agents and to protect less educated consumers, for instance.
Respondents had also called for the licensing of individual agents. While the Government had called for industry-led accreditation, some respondents wanted the Government to handle this.
Some also wanted to see minimum educational qualifications. Mr Lu felt this was unnecessary. Having paper qualifications does not guarantee an agent will act ethically, he said. Passing an entrance exam is enough, even though it does not ensure ethical behaviour. A Government accreditation board could suspend errant agents, he added.
Mr Lu felt that the entrance exam should also be conducted in Chinese, for the benefit of a group of older, experienced agents who are Chinese-educated.
PropNex chief executive Mohamed Ismail expects a central registry to come in to help control rogue agents, who are now able to switch agencies unchecked. Some respondents suggested posting the names of blacklisted agents online to warn the public.
Suggestions from the public include the use of standard forms and contracts as well as disallowing agencies and agents from buying new properties from developers with a view to selling them.
MND expects to announce key elements of the framework early next year.
Thumbs up for ending estate agents' dual role
Respondents in public consultation exercise also want an entrance exam
By Joyce Teo
A PROPOSAL to ban property agents from representing both the seller and buyer in the same transaction has generated strong public interest - with many giving the idea the thumbs up.
This practice, widespread in the HDB resale market, leaves the agent with a clear conflict of interest.
But there is likely to be resistance from some agents who stand to lose commissions if it is implemented.
The proposed ban is one of a series of possible changes in a planned industry overhaul after years of complaints about questionable practices by some agents.
A public consultation exercise on a planned real estate regulatory framework drew more than 200 comments and suggestions, said the Ministry of National Development (MND) yesterday.
The proposal most commented upon was the ban on dual representation.
Many respondents also backed a plan to ensure agents have a minimum entry qualification - probably an entrance exam. They felt it was important for the exam to cover ethics, given that complaints often stem from unethical practices.
Most respondents were 'generally supportive' of the key proposals, MND said. These also include mandatory accreditation of agencies and agents, keeping a public central registry for accredited agents, setting up an independent tribunal to resolve real estate disputes, and introducing a demerit points system.
The views received during the exercise - conducted from Oct 13 to Nov 17 - were generally consistent with feedback gathered during industry consultations a month earlier, MND said. The respondents included property agents and clients who had been caught in unpleasant encounters with agents, said a spokesman.
The Government aims to better safeguard consumers' interests and raise the level of professionalism in the industry.
Some of the key proposals are long overdue, some industry players said.
Most would be welcomed by the industry, but some agents may not be happy if dual representation is disallowed.
An agent representing both sides in an HDB deal can get two commissions, even though there is clear conflict as sellers would want the highest price for their property while buyers want the lowest.
'This practice has been around since the first day HDB flats were traded. Obviously, there will be some resistance from property agents,' said C&H Realty managing director Albert Lu.
As HDB flat transactions can be complex, it is useful for buyers and sellers to have their own agents, to ensure that an unrepresented party does not delay or mess up the transaction, he said.
Some respondents suggested disallowing dual representation for rental deals.
There were suggestions to mandate co-broking, to stipulate that all buyers are to engage an agent and to require agents to inform sellers of all offers, regardless of the offer price or agent fees.
There were also calls for a standard commission guideline to curb undercutting among agents and to protect less educated consumers, for instance.
Respondents had also called for the licensing of individual agents. While the Government had called for industry-led accreditation, some respondents wanted the Government to handle this.
Some also wanted to see minimum educational qualifications. Mr Lu felt this was unnecessary. Having paper qualifications does not guarantee an agent will act ethically, he said. Passing an entrance exam is enough, even though it does not ensure ethical behaviour. A Government accreditation board could suspend errant agents, he added.
Mr Lu felt that the entrance exam should also be conducted in Chinese, for the benefit of a group of older, experienced agents who are Chinese-educated.
PropNex chief executive Mohamed Ismail expects a central registry to come in to help control rogue agents, who are now able to switch agencies unchecked. Some respondents suggested posting the names of blacklisted agents online to warn the public.
Suggestions from the public include the use of standard forms and contracts as well as disallowing agencies and agents from buying new properties from developers with a view to selling them.
MND expects to announce key elements of the framework early next year.
BT : 80 units sold at Marina Bay Suites preview
Business Times - 26 Nov 2009
80 units sold at Marina Bay Suites preview
Developer not expected to release more units in the condo until 2010
By KALPANA RASHIWALA
ABOUT 80 of the 90 units previewed at Marina Bay Suites yesterday have been sold, at an average price understood to be slightly above $2,300 per square foot.
However, the consortium developing the project said that the 'average price range was between $2,200 psf and $2,500 psf'. Only three and four-bedroom units on the low to mid- floors at the 66-storey development were released for yesterday's preview.
'Unit sizes range from 1,572 to 2,691 sq ft for the three to four-bedroom units,' said a spokesman for Raffles Quay Asset Management, the asset manager for Marina Bay Suites.
BT understands that the consortium developing the 221-unit, 99-year leasehold condo, does not plan to offer any more units in the development until next year. The show suite for the condo will be completed in the first half of next year and housed in an office tower in the Marina Bay Financial Centre (MBFC).
The condo, MBFC and an earlier condo project, Marina Bay Residences, are being developed on a 99-year leasehold plot sold by the Singapore government in 2005 to a consortium controlled by Keppel Land, Cheung Kong Holdings and Hongkong Land Holdings.
Yesterday's preview was held on the mezzanine level of One Raffles Quay, which was also developed earlier by the three partners. The project is being marketed by CB Richard Ellis and DTZ.
'There are no immediate plans to officially launch Marina Bay Suites (MBS). This private preview was for invited clients, business associates, registered prospects, staff and directors. We will launch MBS at the appropriate time,' the spokesman said.
Initially, the consortium had planned to release only 50 units but decided to add 40 more due to keen demand from potential buyers.
BT understands that at least a third of the buyers were foreigners (including permanent residents) and companies, with Indonesians being the predominant foreign buyers. Well-heeled Singaporeans also bought units in the condo.
Prices of three-bedders start from $3 million or about $1,908 psf, BT understands.
The least expensive four-bedder (a 2,045 sq ft unit) cost $4.3 million or $2,103 psf. For the larger four-bedroom apartments of 2,680 sq ft, prices start from $6.1 million or $2,276 psf.
In the spotlight: The developer says that the 'average price range was between $2,200 psf and $2,500 psf'
80 units sold at Marina Bay Suites preview
Developer not expected to release more units in the condo until 2010
By KALPANA RASHIWALA
ABOUT 80 of the 90 units previewed at Marina Bay Suites yesterday have been sold, at an average price understood to be slightly above $2,300 per square foot.
However, the consortium developing the project said that the 'average price range was between $2,200 psf and $2,500 psf'. Only three and four-bedroom units on the low to mid- floors at the 66-storey development were released for yesterday's preview.
'Unit sizes range from 1,572 to 2,691 sq ft for the three to four-bedroom units,' said a spokesman for Raffles Quay Asset Management, the asset manager for Marina Bay Suites.
BT understands that the consortium developing the 221-unit, 99-year leasehold condo, does not plan to offer any more units in the development until next year. The show suite for the condo will be completed in the first half of next year and housed in an office tower in the Marina Bay Financial Centre (MBFC).
The condo, MBFC and an earlier condo project, Marina Bay Residences, are being developed on a 99-year leasehold plot sold by the Singapore government in 2005 to a consortium controlled by Keppel Land, Cheung Kong Holdings and Hongkong Land Holdings.
Yesterday's preview was held on the mezzanine level of One Raffles Quay, which was also developed earlier by the three partners. The project is being marketed by CB Richard Ellis and DTZ.
'There are no immediate plans to officially launch Marina Bay Suites (MBS). This private preview was for invited clients, business associates, registered prospects, staff and directors. We will launch MBS at the appropriate time,' the spokesman said.
Initially, the consortium had planned to release only 50 units but decided to add 40 more due to keen demand from potential buyers.
BT understands that at least a third of the buyers were foreigners (including permanent residents) and companies, with Indonesians being the predominant foreign buyers. Well-heeled Singaporeans also bought units in the condo.
Prices of three-bedders start from $3 million or about $1,908 psf, BT understands.
The least expensive four-bedder (a 2,045 sq ft unit) cost $4.3 million or $2,103 psf. For the larger four-bedroom apartments of 2,680 sq ft, prices start from $6.1 million or $2,276 psf.
In the spotlight: The developer says that the 'average price range was between $2,200 psf and $2,500 psf'
BT : TripleOne Somerset to open after $50m face-lift
Business Times - 26 Nov 2009
TripleOne Somerset to open after $50m face-lift
Ex Singapore Power Building refurnished to include retail and F&B space
By UMA SHANKARI
THE former Singapore Power Building in Somerset Road will re-open in January 2010 as TripleOne Somerset - after a $50 million make-over.
The office building - acquired by Singapore-based Pacific Star Group in February 2008 for more than $1 billion - has been refurbished to include two floors of retail and food and beverage (F&B) space with a total area of 60,000 sq ft.
Pacific Star converted some of the net lettable area (NLA) into retail space, which has been leased out at better rents. Rents for office space in TripleOne Somerset are now $6-$8 per sq ft on average, while retail rents are at $15-$20 psf.
The conversion of lower value space to higher value retail use has enhanced the building, as with other properties in Pacific Star's portfolio, such as Wisma Atria in Orchard Road, said Benett Theseira, Pacific Star's president of direct investments.
'By adding the additional retail space, we have improved our revenue (from the building) about 10 per cent,' he said.
Looking ahead, the building should be able to command higher office rents with the new retail and F&B facilities in place, Mr Theseira said. Rents could climb by 5-10 per cent when current three-year leases expire, he said.
When it was acquired by Pacific Star, the building's NLA was 550,000 sq ft - all designated for office use.
After refurbishment, there is about 500,000 sq ft of office space, 60,000 sq ft of retail space and an outdoor refreshment area of about 5,000 sq ft.
The retail and F&B extension was created by converting areas previously occupied by an auditorium, cafeteria and three office units, empty space in the lobby areas facing Somerset Road and void areas above the carpark.
Further NLA expansion will be explored in 18-24 months, Pacific Star said.
It has so far secured commitments for more than 75 per cent of the mall space and is confident the mall will be fully leased when it opens in January 2010.
Tenants signed up so far include dining chain Applebee's, whose outlet at the mall will be its first in Southeast Asia. Singapore's largest supermarket chain NTUC FairPrice will open a 14,500 sq ft gourmet supermarket at the mall to cater to tenants and people living nearby.
Besides creating retail and F&B space, Pacific Star is upgrading the office building's common areas such as the lift and reception lobbies to appeal to a wider range of tenants.
The office space is now 95 per cent leased. Singapore Power, the anchor tenant, continues to occupy around 200,000 sq ft of office space under a lease-back arrangement.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
More than 75% of the mall space taken up: Tenants signed up so far include dining chain Applebee's and NTUC FairPrice
TripleOne Somerset to open after $50m face-lift
Ex Singapore Power Building refurnished to include retail and F&B space
By UMA SHANKARI
THE former Singapore Power Building in Somerset Road will re-open in January 2010 as TripleOne Somerset - after a $50 million make-over.
The office building - acquired by Singapore-based Pacific Star Group in February 2008 for more than $1 billion - has been refurbished to include two floors of retail and food and beverage (F&B) space with a total area of 60,000 sq ft.
Pacific Star converted some of the net lettable area (NLA) into retail space, which has been leased out at better rents. Rents for office space in TripleOne Somerset are now $6-$8 per sq ft on average, while retail rents are at $15-$20 psf.
The conversion of lower value space to higher value retail use has enhanced the building, as with other properties in Pacific Star's portfolio, such as Wisma Atria in Orchard Road, said Benett Theseira, Pacific Star's president of direct investments.
'By adding the additional retail space, we have improved our revenue (from the building) about 10 per cent,' he said.
Looking ahead, the building should be able to command higher office rents with the new retail and F&B facilities in place, Mr Theseira said. Rents could climb by 5-10 per cent when current three-year leases expire, he said.
When it was acquired by Pacific Star, the building's NLA was 550,000 sq ft - all designated for office use.
After refurbishment, there is about 500,000 sq ft of office space, 60,000 sq ft of retail space and an outdoor refreshment area of about 5,000 sq ft.
The retail and F&B extension was created by converting areas previously occupied by an auditorium, cafeteria and three office units, empty space in the lobby areas facing Somerset Road and void areas above the carpark.
Further NLA expansion will be explored in 18-24 months, Pacific Star said.
It has so far secured commitments for more than 75 per cent of the mall space and is confident the mall will be fully leased when it opens in January 2010.
Tenants signed up so far include dining chain Applebee's, whose outlet at the mall will be its first in Southeast Asia. Singapore's largest supermarket chain NTUC FairPrice will open a 14,500 sq ft gourmet supermarket at the mall to cater to tenants and people living nearby.
Besides creating retail and F&B space, Pacific Star is upgrading the office building's common areas such as the lift and reception lobbies to appeal to a wider range of tenants.
The office space is now 95 per cent leased. Singapore Power, the anchor tenant, continues to occupy around 200,000 sq ft of office space under a lease-back arrangement.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
More than 75% of the mall space taken up: Tenants signed up so far include dining chain Applebee's and NTUC FairPrice
ST : Buyers snap up most of the 90 units released for sale yesterday
Strong sales at Marina Bay Suites preview
Buyers snap up most of the 90 units released for sale yesterday
By Joyce Teo
An artist's impression of the 99-year leasehold, 221-unit Marina Bay Suites condominium. Real estate experts say the plus factors of the property are its proximity to the integrated resort coming up in the area and the finite supply of homes there. -- PHOTO: MARINA BAY FINANCIAL CENTRE
A one-day preview at the upmarket Marina Bay Suites development saw invited buyers snap up most of the 90 units released for sale at average prices ranging from $2,200 to $2,500 per sq ft (psf).
At least 81 units were bought yesterday at the 99-year leasehold, 221-unit condominium in Marina Bay, whose launch had been delayed by almost two years, said a spokesman for Raffles Quay Asset Management, which manages Marina Bay Financial Centre. The centre has two residential towers - Marina Bay Residences, which sold out in late 2006, and Marina Bay Suites.
Prices achieved were below the expectations the developers had early last year, before the property market slumped as the global crisis took hold.
It was then thought that the condo could be priced around $3,000 psf, given that the most expensive units in Marina Bay Residences and The Sail @ Marina Bay had then traded beyond that price level.
The invited group of buyers yesterday consisted of registered clients, directors and staff working for the developers - a consortium comprising Keppel Land, Hongkong Land and Cheung Kong Holdings.
The condo has units of three- to four-bedrooms ranging in size from 1,572 sq ft to 2,691 sq ft, as well as three larger penthouses.
Yesterday, the three-bedroom units went for between $3 million and $3.7 million.
The smaller four-bedroom units sold for around $4.3 million to $5 million, while the larger four-bedroom units achieved prices of $6.1 million to a shade below $7 million.
About two-thirds of the Marina Bay Suites buyers were Singaporeans, with the balance made up of foreigners, permanent residents and a few companies, said Mr Joseph Tan, executive director for residential properties at one of the marketing agents, CBRE.
Marina Bay Suites had been slated for launch early last year when there was talk that the three-bedroom units would command a price of $4 million to $5 million.
But the market downturn prompted the postponement and, said Mr Tan, the preview had to be pitched at today's prices.
Cushman & Wakefield managing director Donald Han agreed that in today's high-end market, 'you need to provide a discount from the peak levels'.
'The value proposition is there for investors keen on luxury properties,' he said.
'Generally, there may be more upside as prices in the high-end to luxury markets are still about 20 per cent to 25 per cent from the peak levels in early 2008.'
Mr Han said the market is seeing demand slowly returning in the $2,000 psf to $3,000 psf range, but not yet for those priced above these prices.
Experts also said Marina Bay Suites' location is a major selling point.
'The lure factor of Marina Bay properties is the proximity to the integrated resort, and the finite supply of homes there,' said Mr Han.
Caveats lodged for The Sail @ Marina Bay this month showed deals done at between $1,744 psf and $2,800 psf, while Marina Bay Residences deals were done at $2,170 psf to $2,420 psf last month.
Sellers are hoping that values in the area will rise by the time the integrated resort in Marina Bay is completed, he said.
Indeed, Mr Tan said the plan was to launch the condo at 'better prices' in the first half of next year when the integrated resort opens.
The showflat would be ready by then.
Buyers snap up most of the 90 units released for sale yesterday
By Joyce Teo
An artist's impression of the 99-year leasehold, 221-unit Marina Bay Suites condominium. Real estate experts say the plus factors of the property are its proximity to the integrated resort coming up in the area and the finite supply of homes there. -- PHOTO: MARINA BAY FINANCIAL CENTRE
A one-day preview at the upmarket Marina Bay Suites development saw invited buyers snap up most of the 90 units released for sale at average prices ranging from $2,200 to $2,500 per sq ft (psf).
At least 81 units were bought yesterday at the 99-year leasehold, 221-unit condominium in Marina Bay, whose launch had been delayed by almost two years, said a spokesman for Raffles Quay Asset Management, which manages Marina Bay Financial Centre. The centre has two residential towers - Marina Bay Residences, which sold out in late 2006, and Marina Bay Suites.
Prices achieved were below the expectations the developers had early last year, before the property market slumped as the global crisis took hold.
It was then thought that the condo could be priced around $3,000 psf, given that the most expensive units in Marina Bay Residences and The Sail @ Marina Bay had then traded beyond that price level.
The invited group of buyers yesterday consisted of registered clients, directors and staff working for the developers - a consortium comprising Keppel Land, Hongkong Land and Cheung Kong Holdings.
The condo has units of three- to four-bedrooms ranging in size from 1,572 sq ft to 2,691 sq ft, as well as three larger penthouses.
Yesterday, the three-bedroom units went for between $3 million and $3.7 million.
The smaller four-bedroom units sold for around $4.3 million to $5 million, while the larger four-bedroom units achieved prices of $6.1 million to a shade below $7 million.
About two-thirds of the Marina Bay Suites buyers were Singaporeans, with the balance made up of foreigners, permanent residents and a few companies, said Mr Joseph Tan, executive director for residential properties at one of the marketing agents, CBRE.
Marina Bay Suites had been slated for launch early last year when there was talk that the three-bedroom units would command a price of $4 million to $5 million.
But the market downturn prompted the postponement and, said Mr Tan, the preview had to be pitched at today's prices.
Cushman & Wakefield managing director Donald Han agreed that in today's high-end market, 'you need to provide a discount from the peak levels'.
'The value proposition is there for investors keen on luxury properties,' he said.
'Generally, there may be more upside as prices in the high-end to luxury markets are still about 20 per cent to 25 per cent from the peak levels in early 2008.'
Mr Han said the market is seeing demand slowly returning in the $2,000 psf to $3,000 psf range, but not yet for those priced above these prices.
Experts also said Marina Bay Suites' location is a major selling point.
'The lure factor of Marina Bay properties is the proximity to the integrated resort, and the finite supply of homes there,' said Mr Han.
Caveats lodged for The Sail @ Marina Bay this month showed deals done at between $1,744 psf and $2,800 psf, while Marina Bay Residences deals were done at $2,170 psf to $2,420 psf last month.
Sellers are hoping that values in the area will rise by the time the integrated resort in Marina Bay is completed, he said.
Indeed, Mr Tan said the plan was to launch the condo at 'better prices' in the first half of next year when the integrated resort opens.
The showflat would be ready by then.
BT : Two properties on tap for investment players
Business Times - 26 Nov 2009
Two properties on tap for investment players
Big industrial plot put on reserve list; Boon Building up for grabs for $12-13m
By KALPANA RASHIWALA
PLAYERS in the property investment sales market have just been offered two properties - an industrial plot at Kaki Bukit Avenue 4, made available for application through the government's reserve list, and Boon Building, a six-storey commercial property at 61 South Bridge Road.
The Kaki Bukit site is 323,133 sq ft and has a 2.5 plot ratio, which means the maximum gross floor area works out to a whopping 807,833 sq ft. It is zoned Business 2 - suitable for a range of uses such as clean/light industry, general industry and warehousing - and offered with a 60-year lease.
Under the reserve list system, the site will be launched for tender by the state only if a developer makes an application with a minimum bid price acceptable to the government.
Colliers International director (industrial) Tan Boon Leong reckons top bids for the plot - assuming a tender takes place now - could come in at $70-80 per sq ft per plot ratio (psf ppr). This works out to a land cost of about $56.5 million to $64.6 million.
According to Mr Tan, the plot is in a lesser location than an earlier plot in Kaki Bukit Road 2 that was sold in August this year after attracting a total 18 bids. 'The latest plot is farther away from the main mature industrial estate in the Kaki Bukit/Eunos area,' he said.
The earlier plot was awarded to KNG Development for $12.1 million or about $105 psf per plot ratio. It is about 1.07 hectares with a 1.0 plot ratio and is also zoned for Business 2 use, but came with a 30-year lease.
The latest plot, in Kaki Bukit Ave 4, is likely to appeal to developers, who may then build landed terrace factories to sell to end-user industrialists, as well as flatted factories, Mr Tan suggests.
'Perhaps some of the unsuccessful bidders at the earlier tender may bid for the latest plot,' he said. 'However, as the latest site is much larger in terms of land area as well as gross floor area, developing it will entail a bigger investment. Hence, it will likely fetch a lower psf ppr unit land price.'
In October last year, Sim Lian clinched a 1.15-ha, 60-year leasehold site in Ubi Ave 4 for Business 1 use for $26.3 million or $85.05 psf ppr. It has a 2.5 plot ratio.
Boon Building, a 999-year leasehold property, is being sold by Raffles Point Holdings, controlled by property investor Kishore Buxani and his family. The indicative guide price is $12-13 million, which works out to $1,165 to $1,262 psf based on the estimated net lettable area of 10,299 sq ft.
According to caveats records, the property was last transacted for about $9.5 million in August 2007. It will be sold with vacant possession and is being marketed by DTZ through a tender exercise that closes on Dec 17.
DTZ senior director for investment advisory services Shaun Poh said: 'The property's appeal lies in the building's excellent location and investment quantum. The availability of naming rights also offers the opportunity to carve out a flagship building with its own corporate identity.'
Mr Buxani and his partners also own 108 Robinson Road and six floors of Samsung Hub.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Boon Building: The 999-year leasehold property was last transacted for about $9.5 million in August 2007. It's being sold with vacant possession through a tender exercise that closes on Dec 17
Two properties on tap for investment players
Big industrial plot put on reserve list; Boon Building up for grabs for $12-13m
By KALPANA RASHIWALA
PLAYERS in the property investment sales market have just been offered two properties - an industrial plot at Kaki Bukit Avenue 4, made available for application through the government's reserve list, and Boon Building, a six-storey commercial property at 61 South Bridge Road.
The Kaki Bukit site is 323,133 sq ft and has a 2.5 plot ratio, which means the maximum gross floor area works out to a whopping 807,833 sq ft. It is zoned Business 2 - suitable for a range of uses such as clean/light industry, general industry and warehousing - and offered with a 60-year lease.
Under the reserve list system, the site will be launched for tender by the state only if a developer makes an application with a minimum bid price acceptable to the government.
Colliers International director (industrial) Tan Boon Leong reckons top bids for the plot - assuming a tender takes place now - could come in at $70-80 per sq ft per plot ratio (psf ppr). This works out to a land cost of about $56.5 million to $64.6 million.
According to Mr Tan, the plot is in a lesser location than an earlier plot in Kaki Bukit Road 2 that was sold in August this year after attracting a total 18 bids. 'The latest plot is farther away from the main mature industrial estate in the Kaki Bukit/Eunos area,' he said.
The earlier plot was awarded to KNG Development for $12.1 million or about $105 psf per plot ratio. It is about 1.07 hectares with a 1.0 plot ratio and is also zoned for Business 2 use, but came with a 30-year lease.
The latest plot, in Kaki Bukit Ave 4, is likely to appeal to developers, who may then build landed terrace factories to sell to end-user industrialists, as well as flatted factories, Mr Tan suggests.
'Perhaps some of the unsuccessful bidders at the earlier tender may bid for the latest plot,' he said. 'However, as the latest site is much larger in terms of land area as well as gross floor area, developing it will entail a bigger investment. Hence, it will likely fetch a lower psf ppr unit land price.'
In October last year, Sim Lian clinched a 1.15-ha, 60-year leasehold site in Ubi Ave 4 for Business 1 use for $26.3 million or $85.05 psf ppr. It has a 2.5 plot ratio.
Boon Building, a 999-year leasehold property, is being sold by Raffles Point Holdings, controlled by property investor Kishore Buxani and his family. The indicative guide price is $12-13 million, which works out to $1,165 to $1,262 psf based on the estimated net lettable area of 10,299 sq ft.
According to caveats records, the property was last transacted for about $9.5 million in August 2007. It will be sold with vacant possession and is being marketed by DTZ through a tender exercise that closes on Dec 17.
DTZ senior director for investment advisory services Shaun Poh said: 'The property's appeal lies in the building's excellent location and investment quantum. The availability of naming rights also offers the opportunity to carve out a flagship building with its own corporate identity.'
Mr Buxani and his partners also own 108 Robinson Road and six floors of Samsung Hub.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Boon Building: The 999-year leasehold property was last transacted for about $9.5 million in August 2007. It's being sold with vacant possession through a tender exercise that closes on Dec 17
BT : Public welcomes move to regulate property agents
Business Times - 26 Nov 2009
Public welcomes move to regulate property agents
By UMA SHANKARI
THE Ministry of National Development (MND) has received more than 200 independent comments and suggestions on its proposed regulatory framework for property agents.
The vast majority of respondents in a recent public consultation exercise welcomed stronger regulation of the real estate industry, MND said yesterday.
The suggestions were generally supportive of key features proposed under the new regulatory framework - such as mandatory accreditation for property agencies and agents; setting up a public central registry for agents, and an independent tribunal to deal with disputes; and introducing a demerit points system.
Public consultation took place from Oct 13 to Nov 17.
MND said that because complaints often arose from alleged unethical practices or misconduct, respondents felt it was important that agents pass a standard industry entrance examination covering not only practical knowledge but also ethics, before they are allowed to practise.
They also agreed with a proposal that an agent should represent only one party in a transaction to avoid conflict of interest.
MND said: 'These views were generally consistent with feedback gathered during industry consultations conducted from Sept 10 to Oct 1, when MND consulted stakeholders including industry associations, real estate agency directors, individual agents, Case (the Consumers Association of Singapore) and Redas (the Real Estate Developers' Association of Singapore).'
Views received from various parties will be consolidated and taken into consideration for refining the new regulatory framework, MND said.
Key elements are expected to be ready for announcement by early 2010.
Public welcomes move to regulate property agents
By UMA SHANKARI
THE Ministry of National Development (MND) has received more than 200 independent comments and suggestions on its proposed regulatory framework for property agents.
The vast majority of respondents in a recent public consultation exercise welcomed stronger regulation of the real estate industry, MND said yesterday.
The suggestions were generally supportive of key features proposed under the new regulatory framework - such as mandatory accreditation for property agencies and agents; setting up a public central registry for agents, and an independent tribunal to deal with disputes; and introducing a demerit points system.
Public consultation took place from Oct 13 to Nov 17.
MND said that because complaints often arose from alleged unethical practices or misconduct, respondents felt it was important that agents pass a standard industry entrance examination covering not only practical knowledge but also ethics, before they are allowed to practise.
They also agreed with a proposal that an agent should represent only one party in a transaction to avoid conflict of interest.
MND said: 'These views were generally consistent with feedback gathered during industry consultations conducted from Sept 10 to Oct 1, when MND consulted stakeholders including industry associations, real estate agency directors, individual agents, Case (the Consumers Association of Singapore) and Redas (the Real Estate Developers' Association of Singapore).'
Views received from various parties will be consolidated and taken into consideration for refining the new regulatory framework, MND said.
Key elements are expected to be ready for announcement by early 2010.
Wednesday, November 25, 2009
ST : Pine Grove residents keen to sell en bloc again
Nov 25, 2009
Pine Grove residents keen to sell en bloc again
PINE Grove residents are looking to sell their sprawling Ulu Pandan estate en bloc, after failing to do so in previous attempts during the 2007 boom.
They are not alone. Industry sources say there is a growing group of other estates that previously failed to sell en bloc but is now looking for reruns.
The collection of signatures at Pine Grove, a 660-unit former HUDC estate on 893,178 sq ft of land, started on Nov 15. If successful, this latest attempt will net each unit owner at least $1.6 million to $2.05 million, depending on unit size.
Many units are about 1,754 sq ft and will achieve a price of about $1.95 million each, according to an owner who declined to be named. Prices are based on a reserve level of $1.246 billion, he added.
The total price works out to at least $740 per sq ft per plot ratio, estimated a property expert. This is because the buyer of the site will have to pay an upgrading premium, plus a differential premium on top of the asking price to cover the cost of bringing the land tenure up to 99 years and site redevelopment.
Marketing agent Jones Lang LaSalle declined to comment.
Pine Grove's collective sale attempts in 2007 failed to bear fruit, even though the average payout was eventually raised to about $2 million per unit.
At Tulip Garden in Holland Road, Bravo Building Construction failed to complete a $516 million collective sale purchase last year due to funding issues.
Residents of Chin Swee Road's Landmark Tower were unable to attract a buyer in their collective sale attempts in 2007 and last year, but are keen to try again.
The sale processes at Tulip Garden and Landmark Tower are still in the preliminary stage and The Straits Times understands both have yet to officially appoint a marketing agent.
The estates are understandably eager to try again now that the economic outlook has improved and private home prices have risen, said DTZ South-east Asia research head Chua Chor Hoon.
The recent market slowdown has yet to significantly hamper owners' expectations, given that the process of collecting signatures and launching the sale may take a while, said an expert.
Pine Grove residents keen to sell en bloc again
PINE Grove residents are looking to sell their sprawling Ulu Pandan estate en bloc, after failing to do so in previous attempts during the 2007 boom.
They are not alone. Industry sources say there is a growing group of other estates that previously failed to sell en bloc but is now looking for reruns.
The collection of signatures at Pine Grove, a 660-unit former HUDC estate on 893,178 sq ft of land, started on Nov 15. If successful, this latest attempt will net each unit owner at least $1.6 million to $2.05 million, depending on unit size.
Many units are about 1,754 sq ft and will achieve a price of about $1.95 million each, according to an owner who declined to be named. Prices are based on a reserve level of $1.246 billion, he added.
The total price works out to at least $740 per sq ft per plot ratio, estimated a property expert. This is because the buyer of the site will have to pay an upgrading premium, plus a differential premium on top of the asking price to cover the cost of bringing the land tenure up to 99 years and site redevelopment.
Marketing agent Jones Lang LaSalle declined to comment.
Pine Grove's collective sale attempts in 2007 failed to bear fruit, even though the average payout was eventually raised to about $2 million per unit.
At Tulip Garden in Holland Road, Bravo Building Construction failed to complete a $516 million collective sale purchase last year due to funding issues.
Residents of Chin Swee Road's Landmark Tower were unable to attract a buyer in their collective sale attempts in 2007 and last year, but are keen to try again.
The sale processes at Tulip Garden and Landmark Tower are still in the preliminary stage and The Straits Times understands both have yet to officially appoint a marketing agent.
The estates are understandably eager to try again now that the economic outlook has improved and private home prices have risen, said DTZ South-east Asia research head Chua Chor Hoon.
The recent market slowdown has yet to significantly hamper owners' expectations, given that the process of collecting signatures and launching the sale may take a while, said an expert.
ST Forum : Making a case for upgrading housing blocks in Redhill Close
Nov 25, 2009
Making a case for upgrading housing blocks in Redhill Close
THE Housing Board's letter, "Block eligible for other upgrading schemes", last Saturday, explained that "the Selective En-bloc Redevelopment Scheme (Sers) is implemented only for old HDB precincts that can be redeveloped to optimise land use".
I would like to draw attention to the area at Redhill Close, from Block 1 to Block 22. This precinct is huge and is very near the Redhill MRT station and other amenities like a market and food centre.
These blocks are only seven stories high and lift upgrading is not scheduled, even though the buildings are about 50 years old.
Why do the Bukit Merah View blocks have a better chance at Sers than Redhill Close? Could HDB advise if there are other upgrading programmes available for this precinct?
Christopher Chew
Making a case for upgrading housing blocks in Redhill Close
THE Housing Board's letter, "Block eligible for other upgrading schemes", last Saturday, explained that "the Selective En-bloc Redevelopment Scheme (Sers) is implemented only for old HDB precincts that can be redeveloped to optimise land use".
I would like to draw attention to the area at Redhill Close, from Block 1 to Block 22. This precinct is huge and is very near the Redhill MRT station and other amenities like a market and food centre.
These blocks are only seven stories high and lift upgrading is not scheduled, even though the buildings are about 50 years old.
Why do the Bukit Merah View blocks have a better chance at Sers than Redhill Close? Could HDB advise if there are other upgrading programmes available for this precinct?
Christopher Chew
ST : 185 evicted for subletting rental flats
Nov 25, 2009
185 evicted for subletting rental flats
THE Housing Board (HDB) has evicted 185 tenants in the past 12 months, after they were found to have illegally sublet their rental flats.
These tenants were living elsewhere while subletting the flats, which is disallowed under the law, said National Development Minister Mah Bow Tan.
'They have abused government subsidy and deprived the truly needy of a rental flat,' he said in a written reply to a question raised in Parliament on Monday.
He was responding to Mr Lim Biow Chuan (Marine Parade GRC) who asked for an update on the number of evictions of rental flat tenants, and if there are plans to review rental rates to take inflation and the higher cost of living into account.
Noting that rental flats are heavily subsidised, Mr Mah said there is no need to revise rental rates as these are already low and affordable - even for those who earn a very low income.
Households with a total monthly income of less than $800 pay only $30 a month for a one-room rental flat. Those with monthly incomes of between $800 and $1,500 pay 30 per cent of the market rate. Rental rates, Mr Mah said, have been frozen at $110 a month for one-room flats since 2005.
For tenants in severe financial difficulty, the HDB will extend more help, for example, by working out an instalment plan, Mr Mah said.
He also gave an update on studio apartments for the elderly, in response to a question from Nominated MP Paulin Tay Straughan. To date, the HDB has launched 17 such developments in both mature and non-mature estates, with near 100 per cent take-up rate.
SUE-ANN CHIA
185 evicted for subletting rental flats
THE Housing Board (HDB) has evicted 185 tenants in the past 12 months, after they were found to have illegally sublet their rental flats.
These tenants were living elsewhere while subletting the flats, which is disallowed under the law, said National Development Minister Mah Bow Tan.
'They have abused government subsidy and deprived the truly needy of a rental flat,' he said in a written reply to a question raised in Parliament on Monday.
He was responding to Mr Lim Biow Chuan (Marine Parade GRC) who asked for an update on the number of evictions of rental flat tenants, and if there are plans to review rental rates to take inflation and the higher cost of living into account.
Noting that rental flats are heavily subsidised, Mr Mah said there is no need to revise rental rates as these are already low and affordable - even for those who earn a very low income.
Households with a total monthly income of less than $800 pay only $30 a month for a one-room rental flat. Those with monthly incomes of between $800 and $1,500 pay 30 per cent of the market rate. Rental rates, Mr Mah said, have been frozen at $110 a month for one-room flats since 2005.
For tenants in severe financial difficulty, the HDB will extend more help, for example, by working out an instalment plan, Mr Mah said.
He also gave an update on studio apartments for the elderly, in response to a question from Nominated MP Paulin Tay Straughan. To date, the HDB has launched 17 such developments in both mature and non-mature estates, with near 100 per cent take-up rate.
SUE-ANN CHIA
ST Forum : Developers must bear cost of flood prevention steps
Nov 25, 2009
Developers must bear cost of flood prevention steps
MR CHRISTOPHER de Souza, the MP overseeing Bukit Timah, was reported stating that he would be looking into getting the management of private buildings in the area to enhance measures to prevent flooding in their basement carparks ('Working on flood controls', Monday).
I am surprised that the residents and officials accompanying Mr de Souza did not discuss what could be done to eliminate the flooding problem to existing and future developments in the area.
Why must owners in these private buildings enhance measures? Should it not be the responsibility of the developers?
Developments alongside the Bukit Timah Canal are susceptible to flash floods judging from historical evidence. I am baffled that professional builders and developers did not take this fundamental problem into account when they started work on the projects. If they had done their due diligence, residents would not have been so unpleasantly affected by last Thursday's deluge.
We are told that widening of the canals has been ongoing for many years. Yet, the flooding problem has not stopped.
Ultimately, the people responsible for flood safety are the developers and their professional consultants. It is they, and not the residents, who should bear the cost of repairs and preventive measures.
Michael Yeo
Developers must bear cost of flood prevention steps
MR CHRISTOPHER de Souza, the MP overseeing Bukit Timah, was reported stating that he would be looking into getting the management of private buildings in the area to enhance measures to prevent flooding in their basement carparks ('Working on flood controls', Monday).
I am surprised that the residents and officials accompanying Mr de Souza did not discuss what could be done to eliminate the flooding problem to existing and future developments in the area.
Why must owners in these private buildings enhance measures? Should it not be the responsibility of the developers?
Developments alongside the Bukit Timah Canal are susceptible to flash floods judging from historical evidence. I am baffled that professional builders and developers did not take this fundamental problem into account when they started work on the projects. If they had done their due diligence, residents would not have been so unpleasantly affected by last Thursday's deluge.
We are told that widening of the canals has been ongoing for many years. Yet, the flooding problem has not stopped.
Ultimately, the people responsible for flood safety are the developers and their professional consultants. It is they, and not the residents, who should bear the cost of repairs and preventive measures.
Michael Yeo
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