Nov 6, 2009
Marsiling block worse off after lift upgrading
RESIDENTS of Block 128 Marsiling Rise face regular breakdowns of Lift D, which fails at least once a week.
This causes much inconvenience to residents. Since the lift upgrading, we have faced tremendous hardship, having to carry goods from one lift to the other, and taking the stairs to other floors when the lift breaks down.
This situation is worse than that before the upgrading, especially for elderly residents. For example, the lift was serviced on Monday but promptly broke down the next day shortly after noon.
My daughter was once trapped in the lift on her way home from work one night. Fortunately, she was trapped between the eighth and ninth floors where we could see her through the glass panel, and she could call us on her cellphone.
What is the point of upgrading if checks and maintenance are not conducted properly to deal with such problems?
Antony Alex
Friday, November 6, 2009
ST : Facade boards of some HDB blocks to be checked
Nov 6, 2009
Facade boards of some HDB blocks to be checked
Move comes after two decorative boards fell from Toa Payoh block; no one was hurt
By Jessica Lim
SAFETY inspections are on the cards for all HDB blocks under the charge of the Bishan-Toa Payoh Town Council that are fitted with external decorative boards.
The town council has engaged a consultant and mass checks are being planned after two such boards, made of calcium silicate - a material often used for fire-proofing purposes - crashed to the ground from the eighth storey of Block 107 in Toa Payoh Lorong 1 on Wednesday.
Although no one was hurt, the checks have been ordered as the impact of such objects falling from a height could cause death or injury.
Each board measured 0.7m wide and 2.8m long, and weighed 3kg.
The loud bangs at about 11am on Wednesday shocked shopkeepers in the usually quiet and sleepy neighbourhood.
'We heard this really loud crash, followed by another one,' said Ms Tan Siew Zhu, the owner of a store selling religious items.
'I was scared and wanted to find out what happened, but could not see anything.'
The area where the incident occurred has been cordoned off.
The Housing Board said the affected block is about 40 years old.
'The boards are part of the architectural design of the block,' said an HDB spokesman, who added that the boards fell because the material they were made of had deteriorated over time.
She added: 'This is a localised and isolated incident, and it does not affect the structural safety of the building.'
The HDB and Bishan-Toa Payoh Town Council are currently working to repair the block's external facade, which now has a gaping hole.
A contractor who was surveying the site yesterday said such incidents are uncommon, but added that heavy rain and strong winds over the past few days could have caused the already weakened boards to tumble to the ground.
The repairs are scheduled to begin on Monday and will be completed in about a week if the weather is good, said the contractor, who did not want to be named.
Some who frequent the area, like designer Jack Lim who works in the same block, said they were shocked.
'I am surprised this happened. Luckily no one got hurt,' said the 26-year-old. 'Why are the boards on the outside of the building anyway, where they are exposed to rain and sunshine?'
Retiree Wang Xi Tao, 68, who lives in a neighbouring block, said: 'I am going to walk only along sheltered corridors now.
'How do you know it won't happen with the other blocks? They are just as old.'
limjess@sph.com.sg
Two boards decorating the exterior of Block 107, Toa Payoh Lorong 1, crashed to the ground on Wednesday, startling shopkeepers nearby. Works are being carried out to repair the facade. HDB said this is an isolated incident and does not affect the building's structural safety. -- ST PHOTOS: LAU FOOK KONG
Two boards decorating the exterior of Block 107, Toa Payoh Lorong 1, crashed to the ground on Wednesday, startling shopkeepers nearby. Works are being carried out to repair the facade. HDB said this is an isolated incident and does not affect the building's structural safety. -- ST PHOTOS: LAU FOOK KONG
Facade boards of some HDB blocks to be checked
Move comes after two decorative boards fell from Toa Payoh block; no one was hurt
By Jessica Lim
SAFETY inspections are on the cards for all HDB blocks under the charge of the Bishan-Toa Payoh Town Council that are fitted with external decorative boards.
The town council has engaged a consultant and mass checks are being planned after two such boards, made of calcium silicate - a material often used for fire-proofing purposes - crashed to the ground from the eighth storey of Block 107 in Toa Payoh Lorong 1 on Wednesday.
Although no one was hurt, the checks have been ordered as the impact of such objects falling from a height could cause death or injury.
Each board measured 0.7m wide and 2.8m long, and weighed 3kg.
The loud bangs at about 11am on Wednesday shocked shopkeepers in the usually quiet and sleepy neighbourhood.
'We heard this really loud crash, followed by another one,' said Ms Tan Siew Zhu, the owner of a store selling religious items.
'I was scared and wanted to find out what happened, but could not see anything.'
The area where the incident occurred has been cordoned off.
The Housing Board said the affected block is about 40 years old.
'The boards are part of the architectural design of the block,' said an HDB spokesman, who added that the boards fell because the material they were made of had deteriorated over time.
She added: 'This is a localised and isolated incident, and it does not affect the structural safety of the building.'
The HDB and Bishan-Toa Payoh Town Council are currently working to repair the block's external facade, which now has a gaping hole.
A contractor who was surveying the site yesterday said such incidents are uncommon, but added that heavy rain and strong winds over the past few days could have caused the already weakened boards to tumble to the ground.
The repairs are scheduled to begin on Monday and will be completed in about a week if the weather is good, said the contractor, who did not want to be named.
Some who frequent the area, like designer Jack Lim who works in the same block, said they were shocked.
'I am surprised this happened. Luckily no one got hurt,' said the 26-year-old. 'Why are the boards on the outside of the building anyway, where they are exposed to rain and sunshine?'
Retiree Wang Xi Tao, 68, who lives in a neighbouring block, said: 'I am going to walk only along sheltered corridors now.
'How do you know it won't happen with the other blocks? They are just as old.'
limjess@sph.com.sg
Two boards decorating the exterior of Block 107, Toa Payoh Lorong 1, crashed to the ground on Wednesday, startling shopkeepers nearby. Works are being carried out to repair the facade. HDB said this is an isolated incident and does not affect the building's structural safety. -- ST PHOTOS: LAU FOOK KONG
Two boards decorating the exterior of Block 107, Toa Payoh Lorong 1, crashed to the ground on Wednesday, startling shopkeepers nearby. Works are being carried out to repair the facade. HDB said this is an isolated incident and does not affect the building's structural safety. -- ST PHOTOS: LAU FOOK KONG
ST : Lift-upgrading plans at Eunos being reworked
Nov 6, 2009
Lift-upgrading plans at Eunos being reworked
By Ang Yiying
THE project consultant for the Lift Upgrading Programme for some Housing Board blocks near the Geylang Serai market has gone back to the drawing board.
It has to come up with a design solution that addresses the unhappiness of residents who say that the new external lift shafts have robbed them of their privacy, as well as a view, light and fresh air.
Those affected live in Blocks 411, 415 and 417, Eunos Road 5.
A meeting a week ago among the area's Member of Parliament, project consultant, HDB officers and affected residents ended with the consultant being given two weeks to flesh out a compromise solution and produce a mock-up.
Some of the residents have appealed against having external lift shafts since finding out three years ago where they would be sited. In June, they asked for the shafts, which have already been built, to be torn down.
The structures affect 14 of the 116 units in each of the three U-shaped, 13- and 17-storey blocks. As these blocks combine two-storey maisonettes with single-storey corner units, not every floor has a common corridor.
The HDB said in July that it went with external shafts because it was the only way to give full lift access to every unit.
The Straits Times reported then that the HDB was looking into addressing affected residents' concerns, but since then, the issue has remained unresolved.
The area's MP Ong Seh Hong said that at the meeting, he had told residents that their proposed design solution - to extend the floor of affected maisonette bedrooms and create new windows - was a no-go with the HDB and the Ministry of National Development for technical and cost reasons.
Noting that this proposed solution would have cost $80,000 or more to implement for each unit, he said the question was who was going to bear the cost of this design rectification.
The proposal from Dr Ong himself - to tilt the angle of the affected bedroom windows - won little support from the residents.
He then suggested at the meeting that the project consultant look into re-aligning part of the wall linking the lift shaft to the corridor.
Even as the consultant works on this, detractors have already spoken up.
Madam Low Lee Koon, 49, who lives in Block 417, said it will not do much to solve her problems: 'It's still a wall with some fins in between. It may help 10 per cent to 20 per cent, which is not much.'
Dr Ong has found himself in the delicate position of having to balance the interests of the unhappy residents - whom he described as a 'vocal minority' - against those who need new lifts.
Residents from the non-affected units hope to use the new lifts soon.
In Madam Khatijah Abdul Manap's case, having lift access to her home is a necessity, not a luxury. Aged 72 and mostly wheelchair-bound, she lives with one of her sons in a corner unit on the seventh floor of Block 417. They moved in three months ago.
Her daughter, part-time cleaner Samsiah Athan, 42, who lives nearby and was wheeling her home on Sunday, said: 'My mum has kidney problems. She cannot climb the stairs.'
A resident of an unaffected unit in Block 411, Mr Patrick Lim, 50, said it was important to address the ventilation and privacy concerns of the affected units.
'If you don't have a happy neighbourhood, it will affect everybody,' said Mr Lim, who runs a travel agency.
Dr Ong hopes the issue would be resolved in the coming weeks. He said that if a sensible solution were to be proposed, he hoped that residents would 'have the grace to accept it and move on'.
Asked what would happen if the proposal is rejected, he said: 'I don't want to pre-empt that. We want to reach a consensus sooner rather than later.'
Some residents had voiced their unhappiness over the new external lift shafts, which they say have robbed them of their privacy, as well as light and fresh air. -- ST FILE PHOTO
Lift-upgrading plans at Eunos being reworked
By Ang Yiying
THE project consultant for the Lift Upgrading Programme for some Housing Board blocks near the Geylang Serai market has gone back to the drawing board.
It has to come up with a design solution that addresses the unhappiness of residents who say that the new external lift shafts have robbed them of their privacy, as well as a view, light and fresh air.
Those affected live in Blocks 411, 415 and 417, Eunos Road 5.
A meeting a week ago among the area's Member of Parliament, project consultant, HDB officers and affected residents ended with the consultant being given two weeks to flesh out a compromise solution and produce a mock-up.
Some of the residents have appealed against having external lift shafts since finding out three years ago where they would be sited. In June, they asked for the shafts, which have already been built, to be torn down.
The structures affect 14 of the 116 units in each of the three U-shaped, 13- and 17-storey blocks. As these blocks combine two-storey maisonettes with single-storey corner units, not every floor has a common corridor.
The HDB said in July that it went with external shafts because it was the only way to give full lift access to every unit.
The Straits Times reported then that the HDB was looking into addressing affected residents' concerns, but since then, the issue has remained unresolved.
The area's MP Ong Seh Hong said that at the meeting, he had told residents that their proposed design solution - to extend the floor of affected maisonette bedrooms and create new windows - was a no-go with the HDB and the Ministry of National Development for technical and cost reasons.
Noting that this proposed solution would have cost $80,000 or more to implement for each unit, he said the question was who was going to bear the cost of this design rectification.
The proposal from Dr Ong himself - to tilt the angle of the affected bedroom windows - won little support from the residents.
He then suggested at the meeting that the project consultant look into re-aligning part of the wall linking the lift shaft to the corridor.
Even as the consultant works on this, detractors have already spoken up.
Madam Low Lee Koon, 49, who lives in Block 417, said it will not do much to solve her problems: 'It's still a wall with some fins in between. It may help 10 per cent to 20 per cent, which is not much.'
Dr Ong has found himself in the delicate position of having to balance the interests of the unhappy residents - whom he described as a 'vocal minority' - against those who need new lifts.
Residents from the non-affected units hope to use the new lifts soon.
In Madam Khatijah Abdul Manap's case, having lift access to her home is a necessity, not a luxury. Aged 72 and mostly wheelchair-bound, she lives with one of her sons in a corner unit on the seventh floor of Block 417. They moved in three months ago.
Her daughter, part-time cleaner Samsiah Athan, 42, who lives nearby and was wheeling her home on Sunday, said: 'My mum has kidney problems. She cannot climb the stairs.'
A resident of an unaffected unit in Block 411, Mr Patrick Lim, 50, said it was important to address the ventilation and privacy concerns of the affected units.
'If you don't have a happy neighbourhood, it will affect everybody,' said Mr Lim, who runs a travel agency.
Dr Ong hopes the issue would be resolved in the coming weeks. He said that if a sensible solution were to be proposed, he hoped that residents would 'have the grace to accept it and move on'.
Asked what would happen if the proposal is rejected, he said: 'I don't want to pre-empt that. We want to reach a consensus sooner rather than later.'
Some residents had voiced their unhappiness over the new external lift shafts, which they say have robbed them of their privacy, as well as light and fresh air. -- ST FILE PHOTO
ST : Mustafa told to stop selling from warehouse
Nov 6, 2009
Mustafa told to stop selling from warehouse
Retailer served summons for unauthorised use of 6-storey Kallang premises
By Leow Si Wan
WELL-KNOWN local retailer Mustafa, which had converted part of its Kallang warehouse into a department store and supermarket, has been ordered to stop selling out of what should be a storage facility.
The Urban Redevelopment Authority (URA) said yesterday that it has served a writ of summons on the company, Mohamed Mustafa & Samsuddin, for the unauthorised use of the six-storey building in Kallang Pudding Road.
Until three weeks ago, the warehouse was closed to the public, except for occasional warehouse sales.
Then, the shutters went up to reveal a department store on the ground floor and a supermarket on the second.
Competitors complained that Mustafa was getting away with operating a retail store while paying lower warehouse rents, reported The Business Times yesterday.
The Straits Times understands that the company received the court order a day earlier.
Yesterday, its managing director, Mr Mustaq Ahmad, who was on a business trip in Malaysia, said he would look into the matter.
'We will definitely comply with the law. If we can't sell things, we will continue with all other activities but stop sales of items,' he said.
However, a Straits Times check of the warehouse yesterday found that retail operations at the warehouse were still in full swing.
There was a new wrinkle, too: Shoppers who wanted to purchase items had to first become 'members' of the store. Thumbprints, pictures and personal particulars were taken before they were issued with a free membership card on the spot.
Staff and regular patrons said the need for membership was new.
When contacted, Mr Mustaq insisted that he was not operating a retail outlet for the public, and that only members could buy in a pilot project 'to test out different paying systems'.
He added that the first two levels facilitate small orders for its home delivery business.
URA said, however, that any sale transactions are considered commercial activities. Under the Planning Act, a person responsible for a planning offence may be fined up to $200,000 if convicted.
Mustafa had, with the approval of URA in 2001, developed the building for warehouse use on a 58,400 square foot freehold site it owned.
According to the URA, the company applied to change the use of the building to a wholesale centre for household goods and appliances in 2004.
Its application was denied because the proposed wholesale centre involved the sale of products, a commercial use not allowed in the zone that the development was in.
Only uses such as light industry, clean industry and warehousing are permitted in the zone.
Also, warehouses which are approved to sell out of their premises must pay a higher retail rent and be in approved zones, among other conditions.
Since then, Mustafa had not submitted another request for change of use.
Retail expert Lynda Wee told The Straits Times yesterday: 'Generally speaking, warehouse rent is the lowest across all rental categories because they are usually in isolated areas.
'Places like the Ikea and Courts establishments in Tampines are different because they were approved for retail uses. They could be paying higher retail rent.'
siwan@sph.com.sg
Mustafa told to stop selling from warehouse
Retailer served summons for unauthorised use of 6-storey Kallang premises
By Leow Si Wan
WELL-KNOWN local retailer Mustafa, which had converted part of its Kallang warehouse into a department store and supermarket, has been ordered to stop selling out of what should be a storage facility.
The Urban Redevelopment Authority (URA) said yesterday that it has served a writ of summons on the company, Mohamed Mustafa & Samsuddin, for the unauthorised use of the six-storey building in Kallang Pudding Road.
Until three weeks ago, the warehouse was closed to the public, except for occasional warehouse sales.
Then, the shutters went up to reveal a department store on the ground floor and a supermarket on the second.
Competitors complained that Mustafa was getting away with operating a retail store while paying lower warehouse rents, reported The Business Times yesterday.
The Straits Times understands that the company received the court order a day earlier.
Yesterday, its managing director, Mr Mustaq Ahmad, who was on a business trip in Malaysia, said he would look into the matter.
'We will definitely comply with the law. If we can't sell things, we will continue with all other activities but stop sales of items,' he said.
However, a Straits Times check of the warehouse yesterday found that retail operations at the warehouse were still in full swing.
There was a new wrinkle, too: Shoppers who wanted to purchase items had to first become 'members' of the store. Thumbprints, pictures and personal particulars were taken before they were issued with a free membership card on the spot.
Staff and regular patrons said the need for membership was new.
When contacted, Mr Mustaq insisted that he was not operating a retail outlet for the public, and that only members could buy in a pilot project 'to test out different paying systems'.
He added that the first two levels facilitate small orders for its home delivery business.
URA said, however, that any sale transactions are considered commercial activities. Under the Planning Act, a person responsible for a planning offence may be fined up to $200,000 if convicted.
Mustafa had, with the approval of URA in 2001, developed the building for warehouse use on a 58,400 square foot freehold site it owned.
According to the URA, the company applied to change the use of the building to a wholesale centre for household goods and appliances in 2004.
Its application was denied because the proposed wholesale centre involved the sale of products, a commercial use not allowed in the zone that the development was in.
Only uses such as light industry, clean industry and warehousing are permitted in the zone.
Also, warehouses which are approved to sell out of their premises must pay a higher retail rent and be in approved zones, among other conditions.
Since then, Mustafa had not submitted another request for change of use.
Retail expert Lynda Wee told The Straits Times yesterday: 'Generally speaking, warehouse rent is the lowest across all rental categories because they are usually in isolated areas.
'Places like the Ikea and Courts establishments in Tampines are different because they were approved for retail uses. They could be paying higher retail rent.'
siwan@sph.com.sg
ST : Developer makes surprise $251m offer
Nov 6, 2009
UPPER THOMSON CONDO PLOT
Developer makes surprise $251m offer
Sum far exceeds $82m trigger bid in tender that drew only six bidders
By Joyce Teo
A CONDOMINIUM plot in Upper Thomson Road has attracted a much higher-than-expected bid from a mystery developer, even though the number of bids was well below recent levels.
Treasure Well Investments, whose parent company is Total Wonder Holdings - both unknown names here - put in a bid of $251.34 million, the Urban Redevelopment Authority (URA) said.
That far exceeds the $82 million trigger bid or $174 per sq ft set by URA for the 2.1ha 99-year leasehold site. It works out to $533 psf of gross floor area, a price that consultants said was aggressive.
The site can be developed into a condo of up to 20 storeys with about 400 units.
This highest bid was also 21 per cent above the second-highest bid of $206.8 million or $439 psf of gross floor area from Far East's Tuas Hi-Tech Park.
The other bidders were Sim Lian Land, Frasers Centrepoint, Chip Eng Seng's CEL Development and GuocoLand's First Changi Development.
The plot, near Lower Peirce Reservoir Park and Bishan Park, was triggered for sale after an unnamed developer committed to bid at least $82 million for the site.
Property consultants suspect the top bidder could be a foreign player.
Many industry players were scrambling to uncover the identity of the bidder at the Real Estate Developers' Association of Singapore's 50th anniversary dinner yesterday evening.
Whoever is behind the top bid, the figures mean that it may have to sell the apartments for about $1,000 psf or more, they said. The site is not near an MRT station, though it has its appeal.
'Although the site gets the afternoon sun, it does overlook a beautiful golf course and would thus offer great views,' said Mr Ho Eng Joo, Colliers International's executive director (investment sales).
Based on the top bid, the break-even price would be about $800 to $900 psf of potential gross floor area, he said.
CBRE Research executive director Li Hiaw Ho had said in late September that the site was likely to sell for between $375 psf and $425 psf per plot ratio. The developer would be set to launch the project at $800 psf to $850 psf, he added.
Mr Li had expected the site - which has a full view of the Island Golf Course and Lower Peirce Reservoir - to be hotly contested, considering the strong showing at recent tender exercises.
But this time, only six developers joined the tender, less than half the usual number of bids seen in recent tenders.
'The relatively smaller number of bids suggests developers are cautious, in anticipation of the announcement of the government land sales programme,' said Knight Frank chairman Tan Tiong Cheng.
The Government said in September that it will be pushing out 'confirmed list' sites, as part of a package of measures to calm the fast-rising market then.
These are sites that are offered irrespective of prior expressions of interest.
But the number and location of these sites have yet to be unveiled.
'This tender would be one of the first few cases that suggest the recent government measures have had some bearing on market behaviour, and that there is some cautiousness in the market,' said Jones Lang LaSalle's head of research, South-east Asia, Dr Chua Yang Liang.
Some experts said the recent slowdown in the market for new private homes could have dampened demand for this site. There were fewer home sales last month than in previous months.
'The fear could be that take-up rate may continue to fall,' said Colliers' Mr Ho. If that happens, buying sentiment could be affected and thereafter, possibly prices, experts said.
Dr Chua believes the rate of rise in private home prices may slow, but they are unlikely to fall. 'At the moment, there's a certain momentum in the market, so we do not expect a turn in prices in the immediate future,' he said.
joyceteo@sph.com.sg
--------------------------------------------------------------------------------
FEWER BIDS
'The relatively smaller number of bids suggests developers are cautious, in anticipation of the announcement of the government land sales programme.'
Knight Frank chairman Tan Tiong Cheng
MEASURES WORKING
'This tender would be one of the first few cases that suggest the recent government measures have had some bearing on market behaviour and that there is some cautiousness in the market.'
Jones Lang LaSalle's head of research, South-east Asia, Dr Chua Yang Liang
The 2.1ha 99-year leasehold site can be developed into a condominium of up to 20 storeys with about 400 units. -- PHOTO: URBAN REDEVELOPMENT AUTHORITY
UPPER THOMSON CONDO PLOT
Developer makes surprise $251m offer
Sum far exceeds $82m trigger bid in tender that drew only six bidders
By Joyce Teo
A CONDOMINIUM plot in Upper Thomson Road has attracted a much higher-than-expected bid from a mystery developer, even though the number of bids was well below recent levels.
Treasure Well Investments, whose parent company is Total Wonder Holdings - both unknown names here - put in a bid of $251.34 million, the Urban Redevelopment Authority (URA) said.
That far exceeds the $82 million trigger bid or $174 per sq ft set by URA for the 2.1ha 99-year leasehold site. It works out to $533 psf of gross floor area, a price that consultants said was aggressive.
The site can be developed into a condo of up to 20 storeys with about 400 units.
This highest bid was also 21 per cent above the second-highest bid of $206.8 million or $439 psf of gross floor area from Far East's Tuas Hi-Tech Park.
The other bidders were Sim Lian Land, Frasers Centrepoint, Chip Eng Seng's CEL Development and GuocoLand's First Changi Development.
The plot, near Lower Peirce Reservoir Park and Bishan Park, was triggered for sale after an unnamed developer committed to bid at least $82 million for the site.
Property consultants suspect the top bidder could be a foreign player.
Many industry players were scrambling to uncover the identity of the bidder at the Real Estate Developers' Association of Singapore's 50th anniversary dinner yesterday evening.
Whoever is behind the top bid, the figures mean that it may have to sell the apartments for about $1,000 psf or more, they said. The site is not near an MRT station, though it has its appeal.
'Although the site gets the afternoon sun, it does overlook a beautiful golf course and would thus offer great views,' said Mr Ho Eng Joo, Colliers International's executive director (investment sales).
Based on the top bid, the break-even price would be about $800 to $900 psf of potential gross floor area, he said.
CBRE Research executive director Li Hiaw Ho had said in late September that the site was likely to sell for between $375 psf and $425 psf per plot ratio. The developer would be set to launch the project at $800 psf to $850 psf, he added.
Mr Li had expected the site - which has a full view of the Island Golf Course and Lower Peirce Reservoir - to be hotly contested, considering the strong showing at recent tender exercises.
But this time, only six developers joined the tender, less than half the usual number of bids seen in recent tenders.
'The relatively smaller number of bids suggests developers are cautious, in anticipation of the announcement of the government land sales programme,' said Knight Frank chairman Tan Tiong Cheng.
The Government said in September that it will be pushing out 'confirmed list' sites, as part of a package of measures to calm the fast-rising market then.
These are sites that are offered irrespective of prior expressions of interest.
But the number and location of these sites have yet to be unveiled.
'This tender would be one of the first few cases that suggest the recent government measures have had some bearing on market behaviour, and that there is some cautiousness in the market,' said Jones Lang LaSalle's head of research, South-east Asia, Dr Chua Yang Liang.
Some experts said the recent slowdown in the market for new private homes could have dampened demand for this site. There were fewer home sales last month than in previous months.
'The fear could be that take-up rate may continue to fall,' said Colliers' Mr Ho. If that happens, buying sentiment could be affected and thereafter, possibly prices, experts said.
Dr Chua believes the rate of rise in private home prices may slow, but they are unlikely to fall. 'At the moment, there's a certain momentum in the market, so we do not expect a turn in prices in the immediate future,' he said.
joyceteo@sph.com.sg
--------------------------------------------------------------------------------
FEWER BIDS
'The relatively smaller number of bids suggests developers are cautious, in anticipation of the announcement of the government land sales programme.'
Knight Frank chairman Tan Tiong Cheng
MEASURES WORKING
'This tender would be one of the first few cases that suggest the recent government measures have had some bearing on market behaviour and that there is some cautiousness in the market.'
Jones Lang LaSalle's head of research, South-east Asia, Dr Chua Yang Liang
The 2.1ha 99-year leasehold site can be developed into a condominium of up to 20 storeys with about 400 units. -- PHOTO: URBAN REDEVELOPMENT AUTHORITY
BT : That new HSBC loan: too clever by half?
Business Times - 06 Nov 2009
COMMENTARY
That new HSBC loan: too clever by half?
Why not give customers the money outright?
By SIOW LI SEN
LAST Friday, when given the HSBC press release on its new Sibor plus equity-linked mortgage, I spent at least 15 minutes trying to figure out how it worked. The result was that I was so consumed with the promise of thousands of dollars that I paid no attention to the home loan itself.
Eventually, I had to swallow my pride and talk to an HSBC executive to understand how taking a mortgage from HSBC would put money in my pocket. The idea was quite simple: a borrower could get potential cash rebates based on an equity index over a 24-month period.
The rebate is 0.25 per cent of the outstanding loan amount. This index has to hit or exceed 130 per cent of a specified barrier level on each valuation date, which occurs on the first trading day of every quarter for a borrower to hit pay dirt. At the inception date of the equity-linked home loan on Nov 2, 2009, the barrier point index is 315.50.
Hence, on the first trading day of each quarter, commencing April 2010, if the index is more than 410.15 (being 130 per cent of 315.50) in the official closing for that day, the customer will receive a cash rebate of 0.25 per cent of the loan outstanding; if the index is less than 410.15, no cash rebate will be given. HSBC said that while the customer may get nothing, no one loses any money; it's essentially giving borrowers a lottery ticket.
Beware the 'Shell effect', though: potential gains could be wiped out if interest rates jump next year and the stock market tanks, as central banks rein in liquidity and the bank ends up with moody customers.
Or stock markets move in a volatile manner and crash on the valuation day, putting home loan borrowers on edge - one day thinking they were getting $1,500, and the next day seeing it evaporate. The $1,500 possible rebate per quarter is an example given by the bank based on a $600,000 loan.
Or if the gimmick works too well and the bank ends up paying out huge amounts of cash rebates, will shareholders then suffer? And is it really a 'free' gamble for those who have a bullish view of the stock market?
Obviously, some bright spark worked on creating the promotion, after which the bank's relationship managers had to be trained to explain it to customers, all of which involved some costs - money which could have been better used by just giving it to customers, one would think.
To protect the risk to the bank - in case the index does exceed the 130 per cent level every quarter - presumably HSBC has bought some kind of insurance.
It's pretty serious money; it's like paying a maximum 2 per cent - which is much, much more than what the bank pays fixed depositors.
It's understandable why HSBC thought up the promotion. Mortgages are very boring products, and it is difficult to compete or lure customers without giving them something. Banks have often found themselves slashing prices in order to compete - and that's not desirable as it can become a vicious spiral downwards in terms of profits.
So what's the real idea behind the promotion? If it's to give money to customers to entice them to sign up for the mortgage, why not give it to them outright? Just pay it every quarter over the same 24-month period to keep the customer from jumping ship.
After all, everyone understands money.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
COMMENTARY
That new HSBC loan: too clever by half?
Why not give customers the money outright?
By SIOW LI SEN
LAST Friday, when given the HSBC press release on its new Sibor plus equity-linked mortgage, I spent at least 15 minutes trying to figure out how it worked. The result was that I was so consumed with the promise of thousands of dollars that I paid no attention to the home loan itself.
Eventually, I had to swallow my pride and talk to an HSBC executive to understand how taking a mortgage from HSBC would put money in my pocket. The idea was quite simple: a borrower could get potential cash rebates based on an equity index over a 24-month period.
The rebate is 0.25 per cent of the outstanding loan amount. This index has to hit or exceed 130 per cent of a specified barrier level on each valuation date, which occurs on the first trading day of every quarter for a borrower to hit pay dirt. At the inception date of the equity-linked home loan on Nov 2, 2009, the barrier point index is 315.50.
Hence, on the first trading day of each quarter, commencing April 2010, if the index is more than 410.15 (being 130 per cent of 315.50) in the official closing for that day, the customer will receive a cash rebate of 0.25 per cent of the loan outstanding; if the index is less than 410.15, no cash rebate will be given. HSBC said that while the customer may get nothing, no one loses any money; it's essentially giving borrowers a lottery ticket.
Beware the 'Shell effect', though: potential gains could be wiped out if interest rates jump next year and the stock market tanks, as central banks rein in liquidity and the bank ends up with moody customers.
Or stock markets move in a volatile manner and crash on the valuation day, putting home loan borrowers on edge - one day thinking they were getting $1,500, and the next day seeing it evaporate. The $1,500 possible rebate per quarter is an example given by the bank based on a $600,000 loan.
Or if the gimmick works too well and the bank ends up paying out huge amounts of cash rebates, will shareholders then suffer? And is it really a 'free' gamble for those who have a bullish view of the stock market?
Obviously, some bright spark worked on creating the promotion, after which the bank's relationship managers had to be trained to explain it to customers, all of which involved some costs - money which could have been better used by just giving it to customers, one would think.
To protect the risk to the bank - in case the index does exceed the 130 per cent level every quarter - presumably HSBC has bought some kind of insurance.
It's pretty serious money; it's like paying a maximum 2 per cent - which is much, much more than what the bank pays fixed depositors.
It's understandable why HSBC thought up the promotion. Mortgages are very boring products, and it is difficult to compete or lure customers without giving them something. Banks have often found themselves slashing prices in order to compete - and that's not desirable as it can become a vicious spiral downwards in terms of profits.
So what's the real idea behind the promotion? If it's to give money to customers to entice them to sign up for the mortgage, why not give it to them outright? Just pay it every quarter over the same 24-month period to keep the customer from jumping ship.
After all, everyone understands money.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
BT : SM wants distinctive S'pore with affordable property
Business Times - 06 Nov 2009
SM wants distinctive S'pore with affordable property
Even as it competes with the best, it must not price itself out of the market
By EMILYN YAP
(SINGAPORE) Senior Minister Goh Chok Tong yesterday painted his vision of Singapore as a vibrant, green and harmonious city for the next 25 years. He also underlined the importance of keeping property prices reasonable to achieve this dream.
Rents for businesses have to be competitive with those in other financial hubs such as Hong Kong and London, he said. And to offer companies more flexibility, Singapore must also have not just Grade A offices in the central business district but also cheaper space at the fringe of the city centre.
'My vision for Singapore is for it to be 'a distinctive city, a harmonious home',' Mr Goh said at a gala dinner commemorating the 50th anniversary of the Real Estate Developers' Association of Singapore (Redas).
Singapore has progressed rapidly, transforming from a poor country with crumbling houses to a vibrant city with iconic buildings, he said.
But he emphasised that with globalisation, Singapore needs to benchmark itself against the best in the world and become one of the most liveable cities. Its competitive advantages in drawing talent and investments - such as its pro-business policies and clean environment - are quickly being eroded as other cities adopt similar strategies.
Mr Goh said Singapore can be distinctive by offering 'the liveability of a garden city and the conveniences of a compact city'.
At the same time, Singapore can be economically vibrant yet environmentally sustainable, he said. It can build a resource-efficient economy, rely more on public transport and have more Green Mark-certified buildings.
Locals and foreigners living and working here must also get along, Mr Goh said. Locals must accommodate the different habits and beliefs of foreigners, while foreigners must respect local ways and try to integrate. This way, Singapore will be 'an oasis of harmony with a rich diversity of people, culture and ideas'.
But the country must manage the inflow of talent and immigrants to ensure Singaporeans do not lose out and that they benefit from the presence of newcomers, he said.
'Even as we aspire to benchmark ourselves against the best, we must not price ourselves out. Therefore, we must ensure that we remain a competitive location for businesses, and that Singaporeans can own their own homes,' he added.
Mr Goh reassured Singaporeans that the government will keep public housing affordable for the vast majority.
'We will also continue to factor in increasing demand from permanent residents in the resale market,' he said.
'For those who are worried over recent price increases, MND (Ministry of National Development) tells me there is an adequate supply of homes in the pipeline both in the central region as well as outside it.'
Mr Goh said the authorities are committed to releasing more land through the Government Land Sales Programme, so that property prices stay in line with economic fundamentals.
At the dinner, Redas president Simon Cheong spoke about the importance of building 'design-led cities'. 'Individual buildings can economically uplift an entire city,' he said.
'Buildings are not just profit opportunities...Developers, as patrons of design, together with the Urban Redevelopment Authority and Building & Construction Authority, wield tremendous power in influencing how Singapore will strive on the world stage.'
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
SM wants distinctive S'pore with affordable property
Even as it competes with the best, it must not price itself out of the market
By EMILYN YAP
(SINGAPORE) Senior Minister Goh Chok Tong yesterday painted his vision of Singapore as a vibrant, green and harmonious city for the next 25 years. He also underlined the importance of keeping property prices reasonable to achieve this dream.
Rents for businesses have to be competitive with those in other financial hubs such as Hong Kong and London, he said. And to offer companies more flexibility, Singapore must also have not just Grade A offices in the central business district but also cheaper space at the fringe of the city centre.
'My vision for Singapore is for it to be 'a distinctive city, a harmonious home',' Mr Goh said at a gala dinner commemorating the 50th anniversary of the Real Estate Developers' Association of Singapore (Redas).
Singapore has progressed rapidly, transforming from a poor country with crumbling houses to a vibrant city with iconic buildings, he said.
But he emphasised that with globalisation, Singapore needs to benchmark itself against the best in the world and become one of the most liveable cities. Its competitive advantages in drawing talent and investments - such as its pro-business policies and clean environment - are quickly being eroded as other cities adopt similar strategies.
Mr Goh said Singapore can be distinctive by offering 'the liveability of a garden city and the conveniences of a compact city'.
At the same time, Singapore can be economically vibrant yet environmentally sustainable, he said. It can build a resource-efficient economy, rely more on public transport and have more Green Mark-certified buildings.
Locals and foreigners living and working here must also get along, Mr Goh said. Locals must accommodate the different habits and beliefs of foreigners, while foreigners must respect local ways and try to integrate. This way, Singapore will be 'an oasis of harmony with a rich diversity of people, culture and ideas'.
But the country must manage the inflow of talent and immigrants to ensure Singaporeans do not lose out and that they benefit from the presence of newcomers, he said.
'Even as we aspire to benchmark ourselves against the best, we must not price ourselves out. Therefore, we must ensure that we remain a competitive location for businesses, and that Singaporeans can own their own homes,' he added.
Mr Goh reassured Singaporeans that the government will keep public housing affordable for the vast majority.
'We will also continue to factor in increasing demand from permanent residents in the resale market,' he said.
'For those who are worried over recent price increases, MND (Ministry of National Development) tells me there is an adequate supply of homes in the pipeline both in the central region as well as outside it.'
Mr Goh said the authorities are committed to releasing more land through the Government Land Sales Programme, so that property prices stay in line with economic fundamentals.
At the dinner, Redas president Simon Cheong spoke about the importance of building 'design-led cities'. 'Individual buildings can economically uplift an entire city,' he said.
'Buildings are not just profit opportunities...Developers, as patrons of design, together with the Urban Redevelopment Authority and Building & Construction Authority, wield tremendous power in influencing how Singapore will strive on the world stage.'
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
BT : Firm's bid for Upper Thomson plot puts others in the shade
Business Times - 06 Nov 2009
Firm's bid for Upper Thomson plot puts others in the shade
Afternoon sun may pose a challenge in designing project, observers say
A COMPANY unknown in local developer circles has placed the top bid for a plum 99-year leasehold condo plot at Upper Thomson Road. Treasure Well Investments bid about $251.3 million. This works out to $533.34 per square foot of potential gross floor area - which was above expectations and the highest unit land price seen at a state land tender this year.
The top bid also surpassed by 21.5 per cent the next highest offer of $438.83 per square foot per plot ratio (psf ppr) placed at yesterday's tender by a unit of Singapore's Far East Organization.
There is much speculation about Treasure Wells Investments, with some linking it to top China and Hong Kong developers, including possibly Hong Kong tycoon Li Ka-shing's Cheung Kong group, which is familiar with the Singapore property market.
The tender attracted just six bids in total - about half the 12 to 15 bids received for each of the other four reserve list sites that were tendered out by the government in the past few months. 'Possibly, developers are waiting to see how much land government is releasing for its first half 2010 programme before deciding to bid for sites,' said Knight Frank chairman Tan Tiong Cheng.
Colliers International executive director (investment sales) Ho Eng Joo reckons that the thinning out of sales that developers saw last month at their showflats may also have led some of them to stay away from yesterday's tender.
Real estate lecturer Nicholas Mak too reckons that developers might be saving their bullets for the H1 2010 government land sales programme.
As for the wide margin between the top two bidders for the latest Upper Thomson Road site yesterday, Knight Frank's Mr Tan suggests that local developers familiar with the site would know its constraints. 'Hence you find that other than the top bid, the rest of the bids were not that aggressive.'
The site boasts a good location opposite the Singapore Island Country Club's Island Golf Course and Lower Peirce Reservoir.
However, the site's best view faces the west - and the afternoon sun. 'It will be difficult to design a project when you have the afternoon sun. You can do double glazing and other things but orientation will be a challenge,' Mr Tan said.
Analysts generally estimate that the top bid reflects a breakeven cost of about $850-900 psf and that the bidder would be eyeing selling prices of about $1,000 psf on average.
UOL is selling the Meadows @ Peirce condo, also on Upper Thomson Road, at about $900 psf on average. The project is freehold but the latest plot has a superior location and is closer to town.
Property consultants polled by BT in September when the government announced that an unnamed developer had made a successful application for the reserve list site had predicted that it would fetch bids ranging from $300 psf ppr to $425 psf ppr at tender.
A developer who did not take part in yesterday's tender said that Far East's bid of $439 psf ppr was more realistic, translating to a breakeven cost of about $800-820 psf.
The other developers that took part in yesterday's tender were Sim Lian Land ($190.5 million or $404.24 psf ppr), Frasers Centrepoint ($165.08 million or $350.30 psf ppr), Chip Eng Seng unit CEL Development ($150 million or $318.30 psf ppr) and GuocoLand's First Changi Development ($135 million or $286.47 psf ppr).
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Firm's bid for Upper Thomson plot puts others in the shade
Afternoon sun may pose a challenge in designing project, observers say
A COMPANY unknown in local developer circles has placed the top bid for a plum 99-year leasehold condo plot at Upper Thomson Road. Treasure Well Investments bid about $251.3 million. This works out to $533.34 per square foot of potential gross floor area - which was above expectations and the highest unit land price seen at a state land tender this year.
The top bid also surpassed by 21.5 per cent the next highest offer of $438.83 per square foot per plot ratio (psf ppr) placed at yesterday's tender by a unit of Singapore's Far East Organization.
There is much speculation about Treasure Wells Investments, with some linking it to top China and Hong Kong developers, including possibly Hong Kong tycoon Li Ka-shing's Cheung Kong group, which is familiar with the Singapore property market.
The tender attracted just six bids in total - about half the 12 to 15 bids received for each of the other four reserve list sites that were tendered out by the government in the past few months. 'Possibly, developers are waiting to see how much land government is releasing for its first half 2010 programme before deciding to bid for sites,' said Knight Frank chairman Tan Tiong Cheng.
Colliers International executive director (investment sales) Ho Eng Joo reckons that the thinning out of sales that developers saw last month at their showflats may also have led some of them to stay away from yesterday's tender.
Real estate lecturer Nicholas Mak too reckons that developers might be saving their bullets for the H1 2010 government land sales programme.
As for the wide margin between the top two bidders for the latest Upper Thomson Road site yesterday, Knight Frank's Mr Tan suggests that local developers familiar with the site would know its constraints. 'Hence you find that other than the top bid, the rest of the bids were not that aggressive.'
The site boasts a good location opposite the Singapore Island Country Club's Island Golf Course and Lower Peirce Reservoir.
However, the site's best view faces the west - and the afternoon sun. 'It will be difficult to design a project when you have the afternoon sun. You can do double glazing and other things but orientation will be a challenge,' Mr Tan said.
Analysts generally estimate that the top bid reflects a breakeven cost of about $850-900 psf and that the bidder would be eyeing selling prices of about $1,000 psf on average.
UOL is selling the Meadows @ Peirce condo, also on Upper Thomson Road, at about $900 psf on average. The project is freehold but the latest plot has a superior location and is closer to town.
Property consultants polled by BT in September when the government announced that an unnamed developer had made a successful application for the reserve list site had predicted that it would fetch bids ranging from $300 psf ppr to $425 psf ppr at tender.
A developer who did not take part in yesterday's tender said that Far East's bid of $439 psf ppr was more realistic, translating to a breakeven cost of about $800-820 psf.
The other developers that took part in yesterday's tender were Sim Lian Land ($190.5 million or $404.24 psf ppr), Frasers Centrepoint ($165.08 million or $350.30 psf ppr), Chip Eng Seng unit CEL Development ($150 million or $318.30 psf ppr) and GuocoLand's First Changi Development ($135 million or $286.47 psf ppr).
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
BT : Mustafa hit with writ of summons
Business Times - 06 Nov 2009
Mustafa hit with writ of summons
Its owner says 'we'd rather do more business than fight'
(SINGAPORE) The Urban Redevelopment Authority (URA) has slapped retailer Mustafa with a writ of summons for unauthorised use of its Mustafa Warehouse building on Kallang Pudding Road. If found guilty, it could be fined up to $200,000.
The six-storey building is approved for warehouse use but for the past three weeks or so, a department store has been operating on the first level and a supermarket on level two.
'Commercial activities such as supermarkets are not allowed within warehouse developments,' URA's spokeswoman said.
She added that approval to use the premises as a warehouse was given in 2001. Its owner, Mohamed Mustafa & Samsuddin Co Pte Ltd, had subsequently submitted an application in 2004 to change the building's use to a wholesale centre for household goods and appliances.
'The application was not approved and URA advised the owner that the proposed wholesale centre use involves sale of products and is considered commercial use, which is not allowed in a warehouse development. URA recently received feedback regarding the unauthorised commercial activities.
'We have thus obtained a Writ of Summons from the Subordinate Courts, and served it to M/s Mohamed Mustafa & Samsuddin Co Pte Ltd for the unauthorised use of the building,' she added.
Under the Planning Act, a person responsible for a planning offence may be fined up to $200,000 upon conviction.
Observers note that URA usually serves an enforcement notice on offending parties to discontinue unauthorised use of a property and restore it to its approved use or condition within a stipulated timeframe. URA rarely obtains a writ of summons from the court to serve on the offender. This route is usually reserved for more serious cases.
When contacted, Mustaq Ahmad, managing director of Mohamed Mustafa & Samsuddin Co, who was in Kuala Lumpur yesterday, said: 'Maybe we have to explain to them whatever it is. Then we'll also understand where the misunderstanding is. Definitely everybody has to follow the rules.'
When asked if he would contest the matter with the authorities through the courts, Mr Mustaq replied: 'We'd rather do more business than fight. We'll find out what is the problem and then we'll come to understand and follow what needs to be done.'
The entire building, including the first two levels, operates 24 hours. A new signboard has emerged at the site stating that entrance is for members only.
Potential shoppers who visited the building yesterday were told to register as members first and made to show their identity cards and give their thumb prints for their biometric membership cards, BT understands.
On Wednesday, Mr Mustaq insisted that the set-up on the first two levels is 'not a retail outlet although it may look like (it)'.
Instead, the building's first two levels serve as a showroom, a small order-processing centre for Mustafa's home-delivery business, and as a testing centre for its online business and other things Mustafa is trying out, including developing a biometric card payment system for its regular customers.
The latter, among other things, will allow the retailer to extend credit to regular customers and keep track of amounts owed without going through documentation and signatures, Mr Mustaq had told BT on Wednesday.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Mustafa hit with writ of summons
Its owner says 'we'd rather do more business than fight'
(SINGAPORE) The Urban Redevelopment Authority (URA) has slapped retailer Mustafa with a writ of summons for unauthorised use of its Mustafa Warehouse building on Kallang Pudding Road. If found guilty, it could be fined up to $200,000.
The six-storey building is approved for warehouse use but for the past three weeks or so, a department store has been operating on the first level and a supermarket on level two.
'Commercial activities such as supermarkets are not allowed within warehouse developments,' URA's spokeswoman said.
She added that approval to use the premises as a warehouse was given in 2001. Its owner, Mohamed Mustafa & Samsuddin Co Pte Ltd, had subsequently submitted an application in 2004 to change the building's use to a wholesale centre for household goods and appliances.
'The application was not approved and URA advised the owner that the proposed wholesale centre use involves sale of products and is considered commercial use, which is not allowed in a warehouse development. URA recently received feedback regarding the unauthorised commercial activities.
'We have thus obtained a Writ of Summons from the Subordinate Courts, and served it to M/s Mohamed Mustafa & Samsuddin Co Pte Ltd for the unauthorised use of the building,' she added.
Under the Planning Act, a person responsible for a planning offence may be fined up to $200,000 upon conviction.
Observers note that URA usually serves an enforcement notice on offending parties to discontinue unauthorised use of a property and restore it to its approved use or condition within a stipulated timeframe. URA rarely obtains a writ of summons from the court to serve on the offender. This route is usually reserved for more serious cases.
When contacted, Mustaq Ahmad, managing director of Mohamed Mustafa & Samsuddin Co, who was in Kuala Lumpur yesterday, said: 'Maybe we have to explain to them whatever it is. Then we'll also understand where the misunderstanding is. Definitely everybody has to follow the rules.'
When asked if he would contest the matter with the authorities through the courts, Mr Mustaq replied: 'We'd rather do more business than fight. We'll find out what is the problem and then we'll come to understand and follow what needs to be done.'
The entire building, including the first two levels, operates 24 hours. A new signboard has emerged at the site stating that entrance is for members only.
Potential shoppers who visited the building yesterday were told to register as members first and made to show their identity cards and give their thumb prints for their biometric membership cards, BT understands.
On Wednesday, Mr Mustaq insisted that the set-up on the first two levels is 'not a retail outlet although it may look like (it)'.
Instead, the building's first two levels serve as a showroom, a small order-processing centre for Mustafa's home-delivery business, and as a testing centre for its online business and other things Mustafa is trying out, including developing a biometric card payment system for its regular customers.
The latter, among other things, will allow the retailer to extend credit to regular customers and keep track of amounts owed without going through documentation and signatures, Mr Mustaq had told BT on Wednesday.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
BT : Thomson commercial unit for sale
Business Times - 06 Nov 2009
Thomson commercial unit for sale
Space may be used for F&B, entertainment outlets or divided into small units
A FREEHOLD commercial unit at Thomson Imperial Court on Upper Thomson Road has been put up for sale by tender. The unit has a strata floor area of 11,011 square feet and faces the road.
DTZ, which is handling the sale, describes the property as a 'rarely available large retail space' in a 'bank's sale by tender' notice. Other units in the area are as small as a few hundred square feet, said the firm's senior director for investment advisory services, Shaun Poh.
The buyer of the unit can set up an entertainment or food and beverage outlet, he said. Or the space can be segmented into smaller units for lease.
Mr Poh reckons that the unit could attract bids of $8-9 million. This would translate to $727-817 per sq ft.
Smaller units at Thomson Imperial Court have changed hands in the past six months for about $1,200 to $1,300 psf, he said.
The unit up for sale is currently leased to Shop N Save supermarket, which pays rental of about $3.50 psf per month. The tenancy expires in the third quarter of next year.
Thomson Imperial Court is next to Sin Ming Plaza and Thomson Community Club. It is also near Marymount MRT station and has plenty of parking space, DTZ said.
The tender closes on Dec 3.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Thomson commercial unit for sale
Space may be used for F&B, entertainment outlets or divided into small units
A FREEHOLD commercial unit at Thomson Imperial Court on Upper Thomson Road has been put up for sale by tender. The unit has a strata floor area of 11,011 square feet and faces the road.
DTZ, which is handling the sale, describes the property as a 'rarely available large retail space' in a 'bank's sale by tender' notice. Other units in the area are as small as a few hundred square feet, said the firm's senior director for investment advisory services, Shaun Poh.
The buyer of the unit can set up an entertainment or food and beverage outlet, he said. Or the space can be segmented into smaller units for lease.
Mr Poh reckons that the unit could attract bids of $8-9 million. This would translate to $727-817 per sq ft.
Smaller units at Thomson Imperial Court have changed hands in the past six months for about $1,200 to $1,300 psf, he said.
The unit up for sale is currently leased to Shop N Save supermarket, which pays rental of about $3.50 psf per month. The tenancy expires in the third quarter of next year.
Thomson Imperial Court is next to Sin Ming Plaza and Thomson Community Club. It is also near Marymount MRT station and has plenty of parking space, DTZ said.
The tender closes on Dec 3.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
HDB will remain affordable: SM Goh
HDB will remain affordable: SM Goh
He said home prices must remain within the reach of Singaporeans. -AsiaOne
Thu, Nov 05, 2009
AsiaOne
At the Real Estate Developers' Association of Singapore (REDAS) 50th anniversary dinner tonight, Senior Minister Goh Chok Tong said housing board flats will remain the foundation of Singapore's home ownership scheme.
This is in line with his vision for Singapore: 'A Distinctive City, A Harmonious Home'.
"The Government will continue to ensure that public housing remains affordable to the vast majority of Singaporeans. The current household income ceiling of $8,000 means that about eight in ten Singaporean families are eligible for HDB subsidies. We will also continue to factor in the increasing demand from Permanent Residents in the resale market," he said.
He added: " I know that with the recent recovery of the property market after the lows of the financial crisis, many Singaporeans are concerned that they will be priced out. This anxiety is understandable. Every generation of young Singaporeans feel the angst of not being able to buy their first home. But our public housing policy, based on affordability, will ensure that they will be able to. This pledge had been kept in the past and it will be kept in the future."
The senior minister also addressed the growing concerns of many regarding affordability of flats.
SM Goh said: "For those who are worried over the recent price increases, MND tells me that there is adequate supply of homes in the pipeline both in the central region as well as outside it. The Government is also committed to releasing more land through the Government Land Sales Programme to ensure that property prices do not fall out of sync with economic fundamentals."
In his speech, SM Goh also underlined the importance of remaining a competitive location for businesses.
"For businesses, we must be able to offer two things. First, we will keep our rentals competitive compared to key financial hubs like Hong Kong, Shanghai, London, and New York.
Second, our city must be able to offer not just Grade A offices in the Central Business District but also cheaper office solutions at the fringe of the city centre. This will give companies greater flexibility and cater to their different business needs."
He said home prices must remain within the reach of Singaporeans. -AsiaOne
Thu, Nov 05, 2009
AsiaOne
At the Real Estate Developers' Association of Singapore (REDAS) 50th anniversary dinner tonight, Senior Minister Goh Chok Tong said housing board flats will remain the foundation of Singapore's home ownership scheme.
This is in line with his vision for Singapore: 'A Distinctive City, A Harmonious Home'.
"The Government will continue to ensure that public housing remains affordable to the vast majority of Singaporeans. The current household income ceiling of $8,000 means that about eight in ten Singaporean families are eligible for HDB subsidies. We will also continue to factor in the increasing demand from Permanent Residents in the resale market," he said.
He added: " I know that with the recent recovery of the property market after the lows of the financial crisis, many Singaporeans are concerned that they will be priced out. This anxiety is understandable. Every generation of young Singaporeans feel the angst of not being able to buy their first home. But our public housing policy, based on affordability, will ensure that they will be able to. This pledge had been kept in the past and it will be kept in the future."
The senior minister also addressed the growing concerns of many regarding affordability of flats.
SM Goh said: "For those who are worried over the recent price increases, MND tells me that there is adequate supply of homes in the pipeline both in the central region as well as outside it. The Government is also committed to releasing more land through the Government Land Sales Programme to ensure that property prices do not fall out of sync with economic fundamentals."
In his speech, SM Goh also underlined the importance of remaining a competitive location for businesses.
"For businesses, we must be able to offer two things. First, we will keep our rentals competitive compared to key financial hubs like Hong Kong, Shanghai, London, and New York.
Second, our city must be able to offer not just Grade A offices in the Central Business District but also cheaper office solutions at the fringe of the city centre. This will give companies greater flexibility and cater to their different business needs."
BT Breaking News : Govt announces biggest ever land sale
Business Times - 06 Nov 2009
Govt announces biggest ever land sale
By KALPANA RASHIWALA
Singapore's Ministry of National Development on Friday announced its biggest ever land sales programmme for the first half of 2010, following very strong demand for private homes seen in the past eight months.
This will ensure there will be enough supply to meet demand, Urban Redevelopment Authority's senior group director, land sales and administration group, Choy Chan Pong said.
MND will be releasing eight private residential sites under the confirmed list in H1 2010, inclusive of two for executive condos, a hybrid between public and private housing. The eight sites will generate a total of 2,925 homes.
In addition, for the H1 2010 reserve list - where sites are launched for tender only upon successful application by developers - there will be 16 residential sites including three exec condo sites - and two mixed use sites where private homes can potentially be built. Of the 18 sites, six are new and 12 will be carried over from the current half's reserve list. In total these 18 sites can be built into 7,625 homes.
Hence, the total housing supply from the H1 2010 programme is 10,550 units.
The Government has also added two new hotel sites through the reserve list - at Robinson Road and Robertson Quay. The Robinson Road property is currently Ogilvy Centre, which will be sold on either 30- or 60-year leasehold tenure. Its facade has to be conserved as well as part of its interior.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Govt announces biggest ever land sale
By KALPANA RASHIWALA
Singapore's Ministry of National Development on Friday announced its biggest ever land sales programmme for the first half of 2010, following very strong demand for private homes seen in the past eight months.
This will ensure there will be enough supply to meet demand, Urban Redevelopment Authority's senior group director, land sales and administration group, Choy Chan Pong said.
MND will be releasing eight private residential sites under the confirmed list in H1 2010, inclusive of two for executive condos, a hybrid between public and private housing. The eight sites will generate a total of 2,925 homes.
In addition, for the H1 2010 reserve list - where sites are launched for tender only upon successful application by developers - there will be 16 residential sites including three exec condo sites - and two mixed use sites where private homes can potentially be built. Of the 18 sites, six are new and 12 will be carried over from the current half's reserve list. In total these 18 sites can be built into 7,625 homes.
Hence, the total housing supply from the H1 2010 programme is 10,550 units.
The Government has also added two new hotel sites through the reserve list - at Robinson Road and Robertson Quay. The Robinson Road property is currently Ogilvy Centre, which will be sold on either 30- or 60-year leasehold tenure. Its facade has to be conserved as well as part of its interior.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
CNA : Treasure Well Investments puts in S$251m top bid for Upper Thomson Rd site
Treasure Well Investments puts in S$251m top bid for Upper Thomson Rd site
By Irene Chan, Channel NewsAsia | Posted: 05 November 2009 2055 hrs
SINGAPORE : The Urban Redevelopment Authority (URA) has received a top bid of S$251 million for a residential site at Upper Thomson Road.
The bid was submitted by Treasure Well Investments and works out to about S$5,741 per square metre.
The URA said it received a total six bids with the lowest one at S$135 million.
Among the bidders of the site were Frasers Centrepoint and Sim Lian Land.
The Upper Thomson Road site, located in the vicinity of Lower Peirce Reservoir, has an area of about 2.1 hectares.
It can generate a maximum permissible gross floor area of 43,781 square metres.
The URA said it will announce the decision on the award of the tender at a later date after the bids have been evaluated. - CNA /ls
By Irene Chan, Channel NewsAsia | Posted: 05 November 2009 2055 hrs
SINGAPORE : The Urban Redevelopment Authority (URA) has received a top bid of S$251 million for a residential site at Upper Thomson Road.
The bid was submitted by Treasure Well Investments and works out to about S$5,741 per square metre.
The URA said it received a total six bids with the lowest one at S$135 million.
Among the bidders of the site were Frasers Centrepoint and Sim Lian Land.
The Upper Thomson Road site, located in the vicinity of Lower Peirce Reservoir, has an area of about 2.1 hectares.
It can generate a maximum permissible gross floor area of 43,781 square metres.
The URA said it will announce the decision on the award of the tender at a later date after the bids have been evaluated. - CNA /ls
ST Forum : Opening of new MRT stations still depends on nearby developments
Nov 5, 2009
Opening of new MRT stations still depends on nearby developments
I WOULD like to add some context to Monday's report, 'No mothballing of MRT stations in future', which we had earlier provided the writer, Mr Christopher Tan.
Readers of the report may have the impression that financial viability considerations will no longer be applied in future when deciding which stations will be opened for service.
This is not so. What we will do is open stations when there are sufficient developments around a station. As rail lines and their stations are built to cater to both near- and long-term needs, there will be areas along the rail line where development plans are to be realised only in the long term.
We will make provisions for this by building shell stations and fitting them out for operations in the future only when there are sufficient developments in the surrounding areas. However, we will ensure that, going forward, all completed stations in new lines that are ready are opened for revenue service.
This is why when the Circle Line is fully opened in 2011, Bukit Brown station will remain a shell station, as it is located at an unoccupied plot of land with no developments nearby. This is also why the two Circle Line stations, Caldecott and Haw Par Villa, which were initially planned as shell stations, will now be fitted out and opened with the rest of the Circle Line stations in 2011, because the surrounding developments have since picked up.
Phua Hooi Boon
Director (Land Transport Division)
Ministry of Transport
Opening of new MRT stations still depends on nearby developments
I WOULD like to add some context to Monday's report, 'No mothballing of MRT stations in future', which we had earlier provided the writer, Mr Christopher Tan.
Readers of the report may have the impression that financial viability considerations will no longer be applied in future when deciding which stations will be opened for service.
This is not so. What we will do is open stations when there are sufficient developments around a station. As rail lines and their stations are built to cater to both near- and long-term needs, there will be areas along the rail line where development plans are to be realised only in the long term.
We will make provisions for this by building shell stations and fitting them out for operations in the future only when there are sufficient developments in the surrounding areas. However, we will ensure that, going forward, all completed stations in new lines that are ready are opened for revenue service.
This is why when the Circle Line is fully opened in 2011, Bukit Brown station will remain a shell station, as it is located at an unoccupied plot of land with no developments nearby. This is also why the two Circle Line stations, Caldecott and Haw Par Villa, which were initially planned as shell stations, will now be fitted out and opened with the rest of the Circle Line stations in 2011, because the surrounding developments have since picked up.
Phua Hooi Boon
Director (Land Transport Division)
Ministry of Transport
ST : Phase 1 of Marina Bay project 72% leased
Nov 5, 2009
Phase 1 of Marina Bay project 72% leased
By Gabriel Chen
PHASE 1 of the new Marina Bay Financial Centre (MBFC) mega office development is now 72 per cent leased, thanks to mining company BHP Billiton taking a further four floors.
The company has taken the additional floor space at Tower Two which, together with Tower One, comprises the first phase of the ambitious project intended as a seamless extension of the Central Business District.
BHP committed to 142,000 sq ft at Tower Two a year ago and is now slated to have a total leased floor area for 10 years from 2011 of 231,000 sq ft on levels 40 to 50 of Tower Two.
Phase 2 of MBFC will be complete when Tower Three has been opened. But already, about 64 per cent of total office space in Phases 1 and 2 has been leased.
The three office towers have almost three million sq ft of grade A office space. MBFC will also have two residential towers of 649 luxury apartments, and 176,000 sq ft of retail space.
Mr Wilson Kwong, chief executive of Raffles Quay Asset Management, which manages the centre, said BHP's decision to take up additional space is testament to the MBFC's vision of being Asia's best business address.
BHP's commitment is a healthy boost of confidence for the Asian office market, which some analysts have tipped to improve as rental decline slows further.
According to a new report by property consultancy firm CB Richard Ellis, the Asian office market downturn stabilised in the third quarter, as the improvement in Asian employment markets clearly indicated that the office market was close to bottoming out.
It also said that activity surrounding the planning of new premises in Singapore rose, as did occupier requests for relocation alternatives.
The firm noted that while Singaporean office rents fell for the fourth consecutive quarter, clear evidence has emerged that the pace of rental decline has eased following an improvement in business confidence.
The MBFC is being developed by a joint venture comprising property developers Cheung Kong Holdings, Hongkong Land and Keppel Land.
Phase 1 of Marina Bay project 72% leased
By Gabriel Chen
PHASE 1 of the new Marina Bay Financial Centre (MBFC) mega office development is now 72 per cent leased, thanks to mining company BHP Billiton taking a further four floors.
The company has taken the additional floor space at Tower Two which, together with Tower One, comprises the first phase of the ambitious project intended as a seamless extension of the Central Business District.
BHP committed to 142,000 sq ft at Tower Two a year ago and is now slated to have a total leased floor area for 10 years from 2011 of 231,000 sq ft on levels 40 to 50 of Tower Two.
Phase 2 of MBFC will be complete when Tower Three has been opened. But already, about 64 per cent of total office space in Phases 1 and 2 has been leased.
The three office towers have almost three million sq ft of grade A office space. MBFC will also have two residential towers of 649 luxury apartments, and 176,000 sq ft of retail space.
Mr Wilson Kwong, chief executive of Raffles Quay Asset Management, which manages the centre, said BHP's decision to take up additional space is testament to the MBFC's vision of being Asia's best business address.
BHP's commitment is a healthy boost of confidence for the Asian office market, which some analysts have tipped to improve as rental decline slows further.
According to a new report by property consultancy firm CB Richard Ellis, the Asian office market downturn stabilised in the third quarter, as the improvement in Asian employment markets clearly indicated that the office market was close to bottoming out.
It also said that activity surrounding the planning of new premises in Singapore rose, as did occupier requests for relocation alternatives.
The firm noted that while Singaporean office rents fell for the fourth consecutive quarter, clear evidence has emerged that the pace of rental decline has eased following an improvement in business confidence.
The MBFC is being developed by a joint venture comprising property developers Cheung Kong Holdings, Hongkong Land and Keppel Land.
ST : S'pore-KL work group for Iskandar project
Nov 5, 2009
S'pore-KL work group for Iskandar project
By Teo Cheng Wee
SINGAPORE and Malaysia formed a work group yesterday to study the joint development of an iconic economic project in Iskandar.
Working together on an iconic project in the Johor economic zone was one of the key issues discussed when Prime Minister Lee Hsien Loong met Malaysian Prime Minister Najib Razak in Singapore in May.
The bilateral project was mooted as a showcase of the commitment of both countries to build a strong, productive and enduring relationship, the two countries' Joint Ministerial Committee (JMC) for Iskandar Malaysia said yesterday.
At the meeting in May, Mr Lee had suggested a mixed-use township development, while Datuk Seri Najib was keen on a wellness centre that could provide spas and other services.
But what the project will eventually be has not been finalised.
Yesterday's meeting at the Grand Hyatt hotel in Singapore was the fifth for the JMC. It was formed in 2007 with the aim of facilitating cooperation between Malaysia and Singapore on the Iskandar project.
The meeting was jointly chaired by National Development Minister Mah Bow Tan and Tan Sri Nor Mohamed Yakcop, Malaysia's Minister in the Prime Minister's Department.
The committee also includes Johor chief minister Ghani Othman and Singapore's Transport Minister Raymond Lim. The JMC also reviewed the progress made by four sub-groups on immigration, transportation, tourism and the environment.
A study has been commissioned to assess the feasibility of jointly developing nature sites as tourism spots.
On the immigration front, the pilot test of the Malaysian Automated Clearance System - which gives frequent travellers to Iskandar Malaysia access to 'fast track' lanes - was extended to all frequent travellers to Malaysia in September.
Both countries also agreed to double cross-border bus services by next January. The JMC will meet again in the first half of next year.
S'pore-KL work group for Iskandar project
By Teo Cheng Wee
SINGAPORE and Malaysia formed a work group yesterday to study the joint development of an iconic economic project in Iskandar.
Working together on an iconic project in the Johor economic zone was one of the key issues discussed when Prime Minister Lee Hsien Loong met Malaysian Prime Minister Najib Razak in Singapore in May.
The bilateral project was mooted as a showcase of the commitment of both countries to build a strong, productive and enduring relationship, the two countries' Joint Ministerial Committee (JMC) for Iskandar Malaysia said yesterday.
At the meeting in May, Mr Lee had suggested a mixed-use township development, while Datuk Seri Najib was keen on a wellness centre that could provide spas and other services.
But what the project will eventually be has not been finalised.
Yesterday's meeting at the Grand Hyatt hotel in Singapore was the fifth for the JMC. It was formed in 2007 with the aim of facilitating cooperation between Malaysia and Singapore on the Iskandar project.
The meeting was jointly chaired by National Development Minister Mah Bow Tan and Tan Sri Nor Mohamed Yakcop, Malaysia's Minister in the Prime Minister's Department.
The committee also includes Johor chief minister Ghani Othman and Singapore's Transport Minister Raymond Lim. The JMC also reviewed the progress made by four sub-groups on immigration, transportation, tourism and the environment.
A study has been commissioned to assess the feasibility of jointly developing nature sites as tourism spots.
On the immigration front, the pilot test of the Malaysian Automated Clearance System - which gives frequent travellers to Iskandar Malaysia access to 'fast track' lanes - was extended to all frequent travellers to Malaysia in September.
Both countries also agreed to double cross-border bus services by next January. The JMC will meet again in the first half of next year.
ST : Foreigners back in private home market
Nov 5, 2009
Foreigners back in private home market
They account for 22.7% of such sales in Q3, above the 19.7% average
By Joyce Teo
FOREIGN buyers are streaming back into the private homes market in growing numbers, especially those from China.
New research from property consultancy Savills Singapore shows foreigners accounted for 22.7 per cent of private home sales in the third quarter - above the 19.7 per cent average since the start of 2000.
Buyers from China have dislodged those from India for the No. 3 spot in the rankings this year with a contribution of nearly 15 per cent of total foreign purchases. This puts China just behind Indonesia in the second spot and Malaysia at No. 1
In the past two years, India had been in third spot, but it has slipped to fourth.
Last year, buyers from China had moved up to the No. 4 spot, dislodging buyers from Britain.
Buyers from Myanmar featured more strongly, coming in at No. 8. They did not make it to the top 10 last year, and were 10th in 2007.
In the July to September period, foreign buyers - including permanent residents - lodged 2,448 private home caveats, a key step to buying a home.
This is up from 1,807 caveats in the second quarter and just 498 in the first, according to data compiled by Savills.
In all, permanent residents bought 1,389 homes in the third quarter.
DTZ said its preliminary data for the third quarter showed that foreigners accounted for about 25 per cent of total sales, compared with about 33 per cent during the boom of 2007.
The most popular project sought by foreigners was Sophia Residence, a project launched in July. Then came Caribbean at Keppel Bay, Ascentia Sky, One Devonshire and Viva.
Permanent residents preferred Melville Park, a 99-year leasehold condominium in Simei, the recently launched Trevista, followed by Caribbean at Keppel Bay.
About 54 per cent of the purchases by China buyers were for resale homes, said DTZ head of South-east Asia research Chua Chor Hoon.
Like Malaysian buyers, buyers from China tend to prefer homes priced between $500,000 and $1 million.
One-fifth of them bought homes costing $1.5 million to as much as $5 million.
Indonesians, however, tended to go for higher priced projects, particularly those priced $1.5 million to $5 million.
They like properties located at Novena, River Valley and the Singapore River.
They had been the biggest group of foreign buyers, taking first place from 2004 to 2007, only to lose the spot to Malaysia during the recent economic crisis, said Ms Christine Sun, Savills Singapore's senior research & consultancy manager.
The latest figures featured a substantial rise in the number of foreign transactions for higher-priced properties.
A total of 86 properties priced above $5 million were sold in the quarter, up from 27 in the second and a mere six in the first.
Also, there was a 60 per cent rise in deals for projects costing between $1.5 million and $5 million. Demand from foreigners for mass market homes was little changed from the second quarter.
Savills said recent data showed that foreigners who are not permanent residents tend to buy more pricey projects.
This group was also more likely to buy homes in prime districts than permanent residents, said Ms Sun. 'We are hearing that more of these super-rich mainland Chinese buyers have come in recent weeks to buy prime properties like the bungalows in Sentosa Cove.'
But the big influx of foreigners to the luxury market in the 2006-2007 boom has not quite returned, consultants said.
Still, support from regional buyers could rise further. Jones Lang LaSalle's head of residential, Ms Jacqueline Wong, said the firm has had rising interest from new potential buyers from India, China and Russia in the past four months.
'We are one of the places they are considering. They see Singapore as a safe haven,' said Ms Wong.
A senior private banker at a foreign bank said: 'We are seeing some clients consider buying a Singapore property as one of a string of homes they have around the world. Luxury homes have come down 30 per cent from the peak, so they are better value now.'
DTZ's Ms Chua said foreign buyers see the growing attraction of Singapore as a global city and expect prices to keep rising as the economy strengthens.
'Prices of prime and luxurious units have not reached 2007 levels and there is still the potential of capital appreciation depending on the rate of economic recovery,' she said.
joyceteo@sph.com.sg
Foreigners back in private home market
They account for 22.7% of such sales in Q3, above the 19.7% average
By Joyce Teo
FOREIGN buyers are streaming back into the private homes market in growing numbers, especially those from China.
New research from property consultancy Savills Singapore shows foreigners accounted for 22.7 per cent of private home sales in the third quarter - above the 19.7 per cent average since the start of 2000.
Buyers from China have dislodged those from India for the No. 3 spot in the rankings this year with a contribution of nearly 15 per cent of total foreign purchases. This puts China just behind Indonesia in the second spot and Malaysia at No. 1
In the past two years, India had been in third spot, but it has slipped to fourth.
Last year, buyers from China had moved up to the No. 4 spot, dislodging buyers from Britain.
Buyers from Myanmar featured more strongly, coming in at No. 8. They did not make it to the top 10 last year, and were 10th in 2007.
In the July to September period, foreign buyers - including permanent residents - lodged 2,448 private home caveats, a key step to buying a home.
This is up from 1,807 caveats in the second quarter and just 498 in the first, according to data compiled by Savills.
In all, permanent residents bought 1,389 homes in the third quarter.
DTZ said its preliminary data for the third quarter showed that foreigners accounted for about 25 per cent of total sales, compared with about 33 per cent during the boom of 2007.
The most popular project sought by foreigners was Sophia Residence, a project launched in July. Then came Caribbean at Keppel Bay, Ascentia Sky, One Devonshire and Viva.
Permanent residents preferred Melville Park, a 99-year leasehold condominium in Simei, the recently launched Trevista, followed by Caribbean at Keppel Bay.
About 54 per cent of the purchases by China buyers were for resale homes, said DTZ head of South-east Asia research Chua Chor Hoon.
Like Malaysian buyers, buyers from China tend to prefer homes priced between $500,000 and $1 million.
One-fifth of them bought homes costing $1.5 million to as much as $5 million.
Indonesians, however, tended to go for higher priced projects, particularly those priced $1.5 million to $5 million.
They like properties located at Novena, River Valley and the Singapore River.
They had been the biggest group of foreign buyers, taking first place from 2004 to 2007, only to lose the spot to Malaysia during the recent economic crisis, said Ms Christine Sun, Savills Singapore's senior research & consultancy manager.
The latest figures featured a substantial rise in the number of foreign transactions for higher-priced properties.
A total of 86 properties priced above $5 million were sold in the quarter, up from 27 in the second and a mere six in the first.
Also, there was a 60 per cent rise in deals for projects costing between $1.5 million and $5 million. Demand from foreigners for mass market homes was little changed from the second quarter.
Savills said recent data showed that foreigners who are not permanent residents tend to buy more pricey projects.
This group was also more likely to buy homes in prime districts than permanent residents, said Ms Sun. 'We are hearing that more of these super-rich mainland Chinese buyers have come in recent weeks to buy prime properties like the bungalows in Sentosa Cove.'
But the big influx of foreigners to the luxury market in the 2006-2007 boom has not quite returned, consultants said.
Still, support from regional buyers could rise further. Jones Lang LaSalle's head of residential, Ms Jacqueline Wong, said the firm has had rising interest from new potential buyers from India, China and Russia in the past four months.
'We are one of the places they are considering. They see Singapore as a safe haven,' said Ms Wong.
A senior private banker at a foreign bank said: 'We are seeing some clients consider buying a Singapore property as one of a string of homes they have around the world. Luxury homes have come down 30 per cent from the peak, so they are better value now.'
DTZ's Ms Chua said foreign buyers see the growing attraction of Singapore as a global city and expect prices to keep rising as the economy strengthens.
'Prices of prime and luxurious units have not reached 2007 levels and there is still the potential of capital appreciation depending on the rate of economic recovery,' she said.
joyceteo@sph.com.sg
ST : Singapore a top choice for migrants
Nov 5, 2009
Singapore a top choice for migrants
Gallup index shows S'pore population would jump to 13m if it takes in all who wished to come here
By Lin Zhaowei
SINGAPORE is a top immigration hot spot, according to a global survey conducted by Gallup.
If it were to take in all adults who wish to settle in the country, its adult population of 3.6 million would jump to 13 million, said the survey released this week.
Gallup arrived at this figure by using what it called the Potential Net Migration Index (PNMI).
The index is the estimated number of adults who wish to leave a country permanently subtracted from the estimated number who wish to immigrate to the country, as a proportion of the total adult population.
The higher a positive PNMI value, the greater the potential of net population gain, proportional to the population size.
Singapore emerged tops with the highest PNMI value of 260 per cent, followed by Saudi Arabia (180 per cent), New Zealand (175 per cent), Canada (170 per cent) and Australia (145 per cent).
At the other end of the scale, the Democratic Republic of the Congo's score was minus 60 per cent, which means that more people want to leave the country permanently than settle in it.
For the Gulf Cooperation Council countries, only Arab nationals and Arab expatriates were interviewed for the 2007-2009 survey, which polled about 260,000 people aged 15 and older in 135 countries.
Singapore's ranking in the PNMI may not be entirely surprising given its relatively small population size and strong and stable economy, analysts said.
According to the United Nations' 2009 Human Development Report, Singapore is already a popular immigration destination.
It ranked No. 10 in the world in terms of the share of immigrants as part of total population, at 35 per cent.
The UN report also showed that Singapore had a relatively low emigration rate of 6.3 per cent.
'If most of those who say they want to come here are mostly economic migrants from other Asian countries, I won't be surprised because Singapore's economy is doing quite well relatively,' Dr Chua Beng Huat, a sociology professor at the National University of Singapore, told The Straits Times when asked to comment on the Gallup survey findings.
On the whole, the survey found that some 700 million people - or 16 per cent of the world's population - would like to relocate permanently to another country, if they had the chance.
The United States was the most desired destination overall in terms of numbers - around 165 million adults would like to move there permanently if they could.
Other top destinations included Canada, Britain, France (all three with around 45 million potential migrants); Spain (35 million) and Saudi Arabia (30 million).
Sub-Saharan Africa was the region with the highest percentage of people who would like to emigrate, at around 38 per cent.
The corresponding figure for the Middle East and North Africa was 23 per cent, and 19 per cent and 18 per cent respectively for Europe and the Americas.
Those living in Asia were the least likely to emigrate, with only 10 per cent expressing a desire to do so.
Ms Neli Esipova, Gallup's director of research for global migration, said the findings showed that hundreds of millions of people around the world felt pulled or pushed towards countries other than their own.
'Who these potential migrants are, where they would like to go and why will continue to be crucial for leaders in countries of origin and destination to understand as they develop migration and development strategies during the economic crisis and well after,' she said.
Singapore a top choice for migrants
Gallup index shows S'pore population would jump to 13m if it takes in all who wished to come here
By Lin Zhaowei
SINGAPORE is a top immigration hot spot, according to a global survey conducted by Gallup.
If it were to take in all adults who wish to settle in the country, its adult population of 3.6 million would jump to 13 million, said the survey released this week.
Gallup arrived at this figure by using what it called the Potential Net Migration Index (PNMI).
The index is the estimated number of adults who wish to leave a country permanently subtracted from the estimated number who wish to immigrate to the country, as a proportion of the total adult population.
The higher a positive PNMI value, the greater the potential of net population gain, proportional to the population size.
Singapore emerged tops with the highest PNMI value of 260 per cent, followed by Saudi Arabia (180 per cent), New Zealand (175 per cent), Canada (170 per cent) and Australia (145 per cent).
At the other end of the scale, the Democratic Republic of the Congo's score was minus 60 per cent, which means that more people want to leave the country permanently than settle in it.
For the Gulf Cooperation Council countries, only Arab nationals and Arab expatriates were interviewed for the 2007-2009 survey, which polled about 260,000 people aged 15 and older in 135 countries.
Singapore's ranking in the PNMI may not be entirely surprising given its relatively small population size and strong and stable economy, analysts said.
According to the United Nations' 2009 Human Development Report, Singapore is already a popular immigration destination.
It ranked No. 10 in the world in terms of the share of immigrants as part of total population, at 35 per cent.
The UN report also showed that Singapore had a relatively low emigration rate of 6.3 per cent.
'If most of those who say they want to come here are mostly economic migrants from other Asian countries, I won't be surprised because Singapore's economy is doing quite well relatively,' Dr Chua Beng Huat, a sociology professor at the National University of Singapore, told The Straits Times when asked to comment on the Gallup survey findings.
On the whole, the survey found that some 700 million people - or 16 per cent of the world's population - would like to relocate permanently to another country, if they had the chance.
The United States was the most desired destination overall in terms of numbers - around 165 million adults would like to move there permanently if they could.
Other top destinations included Canada, Britain, France (all three with around 45 million potential migrants); Spain (35 million) and Saudi Arabia (30 million).
Sub-Saharan Africa was the region with the highest percentage of people who would like to emigrate, at around 38 per cent.
The corresponding figure for the Middle East and North Africa was 23 per cent, and 19 per cent and 18 per cent respectively for Europe and the Americas.
Those living in Asia were the least likely to emigrate, with only 10 per cent expressing a desire to do so.
Ms Neli Esipova, Gallup's director of research for global migration, said the findings showed that hundreds of millions of people around the world felt pulled or pushed towards countries other than their own.
'Who these potential migrants are, where they would like to go and why will continue to be crucial for leaders in countries of origin and destination to understand as they develop migration and development strategies during the economic crisis and well after,' she said.
ST : New up-ramp to West Coast Highway viaduct [1 Attachment]
Nov 5, 2009
New up-ramp to West Coast Highway viaduct
A NEW up-ramp to the West Coast Highway viaduct at Telok Blangah Road will open tomorrow at 11am.
The existing up-ramp heading east will be converted into a down-ramp by January.
This is so that motorists headed for Henderson Road may use the viaduct to bypass busy junctions along Telok Blangah Road.
The nearest available down-ramp westbound now is at Alexandra Road.
These works are part of overall improvements by the Land Transport Authority to increase traffic capacity by 30 per cent in the Sentosa-Harbourfront area, ahead of the opening of the new integrated resort and future developments in the area.
New up-ramp to West Coast Highway viaduct
A NEW up-ramp to the West Coast Highway viaduct at Telok Blangah Road will open tomorrow at 11am.
The existing up-ramp heading east will be converted into a down-ramp by January.
This is so that motorists headed for Henderson Road may use the viaduct to bypass busy junctions along Telok Blangah Road.
The nearest available down-ramp westbound now is at Alexandra Road.
These works are part of overall improvements by the Land Transport Authority to increase traffic capacity by 30 per cent in the Sentosa-Harbourfront area, ahead of the opening of the new integrated resort and future developments in the area.
ST : China buyers prefer properties under $1m
Nov 5, 2009
China buyers prefer properties under $1m
HOME buyers from China prefer properties under $1 million and tend to favour apartments near MRT stations as they generally do not own cars here.
Many are permanent residents and work here, possibly in areas such as Jurong, Bedok and Kallang.
That is the typical profile of a buyer from China, say agents The Straits Times spoke to.
A total of 707 buyers from China, of whom 432 were PRs, bought homes in the first nine months of the year.
As with buyers from Malaysia and India, PRs from China far outnumber those who are non-PRs, data from Savills Singapore showed.
'Lately, for mass market products, we are seeing more Chinese buyers than Indian buyers,' said PropNex chief executive Mohamed Ismail Gafoor.
Agents said a large group of China buyers are Singapore PRs who already have families or are about to settle down here and are buying properties for their own use.
A small group of investors are young couples in their 30s to 40s who run their own businesses back home, said mortgage consultant Ally Yang of her clients.
There is also a group of 'flamboyant high net worth types who has at least several millions to burn' looking to buy, possibly for investment, said a property agent who deals mainly with new projects.
A Frasers Centrepoint spokesman said a lot more China buyers had snapped up units at its Caspian project next to Lakeside MRT station, launched in February, than earlier projects.
Those China buyers were residing or working in the area, she said.
Savills said that most of the buying activity from China nationals this year was concentrated in Jurong West and Bedok, followed by Kallang.
'Those who want to invest like Singapore because the rental returns are better and they can look forward to capital appreciation. They would have a friend or relative here,' said Ms Yang, a PR from China. 'They are happy with leasehold properties here because in China, the maximum lease is only 70 years.'
JOYCE TEO
China buyers prefer properties under $1m
HOME buyers from China prefer properties under $1 million and tend to favour apartments near MRT stations as they generally do not own cars here.
Many are permanent residents and work here, possibly in areas such as Jurong, Bedok and Kallang.
That is the typical profile of a buyer from China, say agents The Straits Times spoke to.
A total of 707 buyers from China, of whom 432 were PRs, bought homes in the first nine months of the year.
As with buyers from Malaysia and India, PRs from China far outnumber those who are non-PRs, data from Savills Singapore showed.
'Lately, for mass market products, we are seeing more Chinese buyers than Indian buyers,' said PropNex chief executive Mohamed Ismail Gafoor.
Agents said a large group of China buyers are Singapore PRs who already have families or are about to settle down here and are buying properties for their own use.
A small group of investors are young couples in their 30s to 40s who run their own businesses back home, said mortgage consultant Ally Yang of her clients.
There is also a group of 'flamboyant high net worth types who has at least several millions to burn' looking to buy, possibly for investment, said a property agent who deals mainly with new projects.
A Frasers Centrepoint spokesman said a lot more China buyers had snapped up units at its Caspian project next to Lakeside MRT station, launched in February, than earlier projects.
Those China buyers were residing or working in the area, she said.
Savills said that most of the buying activity from China nationals this year was concentrated in Jurong West and Bedok, followed by Kallang.
'Those who want to invest like Singapore because the rental returns are better and they can look forward to capital appreciation. They would have a friend or relative here,' said Ms Yang, a PR from China. 'They are happy with leasehold properties here because in China, the maximum lease is only 70 years.'
JOYCE TEO
BT : Supermarket? It only looks like one: owner
Business Times - 05 Nov 2009
Supermarket? It only looks like one: owner
URA investigates Mustafa Warehouse for unauthorised change of use
(SINGAPORE) It looks like a department store and supermarket facility but its owner insists that it isn't.
The six-storey Mustafa Warehouse on Kallang Pudding Road has been around for more than five years now, but its first two levels were shuttered for many years, although it held warehouse sales on and off.
About three weeks ago, the doors to the first two levels were opened on a 'permanent' basis and this has raised the eyebrows of some competitors, who see a department store on the first level and a supermarket on the second with rows of cashier checkout counters - just like in a retail facility.
They say that by operating a retail business out of warehouse premises - which is not allowed under Singapore's planning regulations - Mustafa is deriving an unfair advantage over other retailers that have to pay for more costly retail space.
The Urban Redevelopment Authority (URA) has now begun investigating whether there has been an unauthorised change of use.
A URA spokesman said: 'The subject premises at 8 Kallang Pudding Road is a six-storey building approved for warehouse use. We are currently investigating the subject premises and hence, it would not be appropriate for us to make any comments on the investigation at this point in time.
'If there is a breach in our planning controls, enforcement action will be taken against the persons responsible.'
BT understands that after URA officers went down to the premises to investigate, Mustafa put up signboards at the premises listing the building's activities. These include wholesale operations, a worldwide distribution showroom for overseas customers and payment system testing for EZlink, online and biometric card systems.
When BT visited the place earlier this week, a few shoppers were seen carrying groceries in shopping baskets and paying at checkout counters.
General merchandise such as pharmaceuticals, electronic goods and accessories are displayed in racks on the first level, while a supermarket with groceries, frozen foods and other items displayed amid spartan hypermarket-style fixtures and bare ceiling are on the second level.
When contacted, Mohamed Mustafa & Samsuddin Co managing director Mustaq Ahmad insisted: 'This is not a retail outlet although it may look like (it).'
Instead, the building's first two levels serve as a showroom and small order processing centre to cater to Mustafa's home delivery business.
Instead of having to open up a large carton in its warehouse coldroom to meet a small order, Mustafa reckons that it is more convenient to display smaller quantities of goods on shelves on the first two levels of the building.
'So we needed to have something like a shop within the warehouse itself,' said Mr Mustaq.
Mustafa developed the building on a 58,400 square foot freehold site it bought in 2000. At the time, the plan was to build a 120,000-sq-ft warehouse and showroom on the site. Under Master Plan 2008, the site is zoned Business 1, which means uses such as clean industry and warehouse are allowed.
Mr Mustaq said that the facility also helps staff process home-delivery orders and reduce crowd levels at the retailer's Little India stores at Mustafa Centre and Serangoon Plaza.
He added that shoppers at the Kallang Pudding facility will have to register first before they can buy. 'Entry in future will be restricted only by membership. At this time, anybody can become a member. But later . . . we may have to limit the number of people coming there if there's congestion.'
Mustafa needs these members to help create transactions to test some business systems it is developing such as its online business and a biometric card payment system.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Supermarket? It only looks like one: owner
URA investigates Mustafa Warehouse for unauthorised change of use
(SINGAPORE) It looks like a department store and supermarket facility but its owner insists that it isn't.
The six-storey Mustafa Warehouse on Kallang Pudding Road has been around for more than five years now, but its first two levels were shuttered for many years, although it held warehouse sales on and off.
About three weeks ago, the doors to the first two levels were opened on a 'permanent' basis and this has raised the eyebrows of some competitors, who see a department store on the first level and a supermarket on the second with rows of cashier checkout counters - just like in a retail facility.
They say that by operating a retail business out of warehouse premises - which is not allowed under Singapore's planning regulations - Mustafa is deriving an unfair advantage over other retailers that have to pay for more costly retail space.
The Urban Redevelopment Authority (URA) has now begun investigating whether there has been an unauthorised change of use.
A URA spokesman said: 'The subject premises at 8 Kallang Pudding Road is a six-storey building approved for warehouse use. We are currently investigating the subject premises and hence, it would not be appropriate for us to make any comments on the investigation at this point in time.
'If there is a breach in our planning controls, enforcement action will be taken against the persons responsible.'
BT understands that after URA officers went down to the premises to investigate, Mustafa put up signboards at the premises listing the building's activities. These include wholesale operations, a worldwide distribution showroom for overseas customers and payment system testing for EZlink, online and biometric card systems.
When BT visited the place earlier this week, a few shoppers were seen carrying groceries in shopping baskets and paying at checkout counters.
General merchandise such as pharmaceuticals, electronic goods and accessories are displayed in racks on the first level, while a supermarket with groceries, frozen foods and other items displayed amid spartan hypermarket-style fixtures and bare ceiling are on the second level.
When contacted, Mohamed Mustafa & Samsuddin Co managing director Mustaq Ahmad insisted: 'This is not a retail outlet although it may look like (it).'
Instead, the building's first two levels serve as a showroom and small order processing centre to cater to Mustafa's home delivery business.
Instead of having to open up a large carton in its warehouse coldroom to meet a small order, Mustafa reckons that it is more convenient to display smaller quantities of goods on shelves on the first two levels of the building.
'So we needed to have something like a shop within the warehouse itself,' said Mr Mustaq.
Mustafa developed the building on a 58,400 square foot freehold site it bought in 2000. At the time, the plan was to build a 120,000-sq-ft warehouse and showroom on the site. Under Master Plan 2008, the site is zoned Business 1, which means uses such as clean industry and warehouse are allowed.
Mr Mustaq said that the facility also helps staff process home-delivery orders and reduce crowd levels at the retailer's Little India stores at Mustafa Centre and Serangoon Plaza.
He added that shoppers at the Kallang Pudding facility will have to register first before they can buy. 'Entry in future will be restricted only by membership. At this time, anybody can become a member. But later . . . we may have to limit the number of people coming there if there's congestion.'
Mustafa needs these members to help create transactions to test some business systems it is developing such as its online business and a biometric card payment system.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
BT : Oct developer sales probably just 700-800
Business Times - 05 Nov 2009
Oct developer sales probably just 700-800
Estimate is down significantly from September's 1,143
By KALPANA RASHIWALA
(SINGAPORE) A BT poll this week of major developers as well as agents that marketed projects actively in October showed that about 660 private homes were sold in the primary market in October.
Developers reckon that, including other developments on the market, the total tally for primary market sales last month could come in at about 700-800 units - down significantly from the 1,143 private homes sold in September.
Developers' monthly home sales peaked at 2,772 units in July this year, according to official data from Urban Redevelopment Authority. Its figures on developer sales for October will be released on Monday.
Market watchers noted that October was generally a quieter month, with developers launching fewer units as well as recording slower sales.
'Things have become more cautious, after the constant messaging from the authorities advising home buyers that there's no need to rush, that they should take their time and that there'll be enough supply,' said a property consultant who declined to be named.
Most developers would have sold fewer homes last month compared with September, unless they had released new projects during the month.
Far East Organization may possibly have sold the most homes last month. It told BT that it sold 173 private homes, more than double the September result of 78 units.
The 173 figure is made up of 162 units in uncompleted projects (including 13 in joint venture projects) and 11 units in completed developments. Far East's top seller last month was Cyan, which is located along Keng Chin Road in the Bukit Timah area, with 76 units sold.
Cyan, which was released last month, is priced at $1,850 per square foot on average. Far East's other better selling projects in October included Silversea along Marine Parade Road, and Mi Casa in Choa Chu Kang.
A joint venture involving Koh Brothers, Heeton Holdings, KSH Holdings and Lian Beng Group is said to have sold 50-plus units at Lincoln Suites at Khiang Guan Avenue in October. More than 65 units were sold at Suites@Guillemard last month.
Ho Bee Investment executive director Ong Chong Hua, who reckons that developers sold about 700-800 homes in October, said that sales volumes would ease in the fourth quarter of this year.
However, prices are unlikely to drop, he added.
'If you look at the competitive bids at state land tenders, there's no reason for developers to price their projects cheap. We're generally optimistic about the market going forward.'
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Oct developer sales probably just 700-800
Estimate is down significantly from September's 1,143
By KALPANA RASHIWALA
(SINGAPORE) A BT poll this week of major developers as well as agents that marketed projects actively in October showed that about 660 private homes were sold in the primary market in October.
Developers reckon that, including other developments on the market, the total tally for primary market sales last month could come in at about 700-800 units - down significantly from the 1,143 private homes sold in September.
Developers' monthly home sales peaked at 2,772 units in July this year, according to official data from Urban Redevelopment Authority. Its figures on developer sales for October will be released on Monday.
Market watchers noted that October was generally a quieter month, with developers launching fewer units as well as recording slower sales.
'Things have become more cautious, after the constant messaging from the authorities advising home buyers that there's no need to rush, that they should take their time and that there'll be enough supply,' said a property consultant who declined to be named.
Most developers would have sold fewer homes last month compared with September, unless they had released new projects during the month.
Far East Organization may possibly have sold the most homes last month. It told BT that it sold 173 private homes, more than double the September result of 78 units.
The 173 figure is made up of 162 units in uncompleted projects (including 13 in joint venture projects) and 11 units in completed developments. Far East's top seller last month was Cyan, which is located along Keng Chin Road in the Bukit Timah area, with 76 units sold.
Cyan, which was released last month, is priced at $1,850 per square foot on average. Far East's other better selling projects in October included Silversea along Marine Parade Road, and Mi Casa in Choa Chu Kang.
A joint venture involving Koh Brothers, Heeton Holdings, KSH Holdings and Lian Beng Group is said to have sold 50-plus units at Lincoln Suites at Khiang Guan Avenue in October. More than 65 units were sold at Suites@Guillemard last month.
Ho Bee Investment executive director Ong Chong Hua, who reckons that developers sold about 700-800 homes in October, said that sales volumes would ease in the fourth quarter of this year.
However, prices are unlikely to drop, he added.
'If you look at the competitive bids at state land tenders, there's no reason for developers to price their projects cheap. We're generally optimistic about the market going forward.'
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
BT : Pan Pacific Hotels seizing the day in tough times
Business Times - 05 Nov 2009
SINGAPORE INTERNATIONAL
Pan Pacific Hotels seizing the day in tough times
IN times like this, when business is hard to come by, the weakness of a poorly run or financially strapped company really shows up, says Eric Levy, Pan Pacific Hotels Group's senior vice-president for development.
When the going gets tough, owners of badly operated hotels or service apartments, weighed down by debt, have no choice but to turn to new operators or sell their assets, he says.
And that's when Pan Pacific Hotels Group, formerly Hotel Plaza and a subsidiary of Singapore-listed UOL Group, steps in - to offer its management services or buy the properties.
It's no wonder that Pan Pacific Hotels Group is expanding in the middle of a global recession.
The group unveiled Pan Pacific Xiamen in China in August and, within a few months, will add properties in Suzhou, Bangkok and Kuala Lumpur to its portfolio.
Pan Pacific Hotels Group is also building a new hotel in Tianjin, China.
'While several of the industry giants are slowing their development due to corporate cutbacks, Pan Pacific Hotels Group is taking the opportunity to prime itself for growth - by strengthening its Pan Pacific and Parkroyal brands and enhancing its capabilities,' Mr Levy says.
With consumers having cut back spending, Pan Pacific Hotels Group is offering lower-priced alternatives without compromising standards - to meet still-high expectations.
It is also offering more to hotel owners. 'With our increasing pipeline of new hotels, they can look forward to increased brand equity and awareness, and a larger customer base to leverage on,' says Mr Levy.
Pan Pacific Hotels Group is securing more hotel management contracts in key cities in North America, Greater China, Japan and Australia, he says.
'We have identified these cities as key feeder markets, and increasing our visibility and brand awareness in them will benefit all the properties in our portfolio.'
Mr Levy says Pan Pacific Hotels Group further plans to build up a presence in resort destinations such as Bali and Phuket, 'because we see the opportunity to tap into the discretionary travel segment'.
According to him, Pan Pacific Hotels Group has an advantage over other Singaporean hospitality players because both of its brands - Pan Pacific and Parkroyal - are international and backed by decades of heritage.
'Parkroyal Hotels & Resorts had its beginnings in Australia in the 1960s, while the first Pan Pacific Hotel was established in Jakarta in 1976,' Mr Levy says.
'We acknowledge the brand equity that both brands have and hope to leverage on this to grow them.'
In markets where it is just starting to make its presence felt, Pan Pacific Hotels Group intends to make greater inroads through its 'exemplary' service and product offerings, and through 'focused and expert sales and marketing capabilities'.
Mr Levy claims Pan Pacific Hotels Group also has an edge over other global hotel players when teaming up with hotel owners.
'We have an ownership mentality as owners of over 15 hotel assets ourselves,' he says.
'As such, we are able to adopt an ownership mentality in approaching all the properties in our management portfolio. Our experience as hotel owners allows us to efficiently partner with owners to maximise returns and enhance the value of their assets.'
Singapore International - A fortnightly series brought to you by IE Singapore and The Business Times
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
SINGAPORE INTERNATIONAL
Pan Pacific Hotels seizing the day in tough times
IN times like this, when business is hard to come by, the weakness of a poorly run or financially strapped company really shows up, says Eric Levy, Pan Pacific Hotels Group's senior vice-president for development.
When the going gets tough, owners of badly operated hotels or service apartments, weighed down by debt, have no choice but to turn to new operators or sell their assets, he says.
And that's when Pan Pacific Hotels Group, formerly Hotel Plaza and a subsidiary of Singapore-listed UOL Group, steps in - to offer its management services or buy the properties.
It's no wonder that Pan Pacific Hotels Group is expanding in the middle of a global recession.
The group unveiled Pan Pacific Xiamen in China in August and, within a few months, will add properties in Suzhou, Bangkok and Kuala Lumpur to its portfolio.
Pan Pacific Hotels Group is also building a new hotel in Tianjin, China.
'While several of the industry giants are slowing their development due to corporate cutbacks, Pan Pacific Hotels Group is taking the opportunity to prime itself for growth - by strengthening its Pan Pacific and Parkroyal brands and enhancing its capabilities,' Mr Levy says.
With consumers having cut back spending, Pan Pacific Hotels Group is offering lower-priced alternatives without compromising standards - to meet still-high expectations.
It is also offering more to hotel owners. 'With our increasing pipeline of new hotels, they can look forward to increased brand equity and awareness, and a larger customer base to leverage on,' says Mr Levy.
Pan Pacific Hotels Group is securing more hotel management contracts in key cities in North America, Greater China, Japan and Australia, he says.
'We have identified these cities as key feeder markets, and increasing our visibility and brand awareness in them will benefit all the properties in our portfolio.'
Mr Levy says Pan Pacific Hotels Group further plans to build up a presence in resort destinations such as Bali and Phuket, 'because we see the opportunity to tap into the discretionary travel segment'.
According to him, Pan Pacific Hotels Group has an advantage over other Singaporean hospitality players because both of its brands - Pan Pacific and Parkroyal - are international and backed by decades of heritage.
'Parkroyal Hotels & Resorts had its beginnings in Australia in the 1960s, while the first Pan Pacific Hotel was established in Jakarta in 1976,' Mr Levy says.
'We acknowledge the brand equity that both brands have and hope to leverage on this to grow them.'
In markets where it is just starting to make its presence felt, Pan Pacific Hotels Group intends to make greater inroads through its 'exemplary' service and product offerings, and through 'focused and expert sales and marketing capabilities'.
Mr Levy claims Pan Pacific Hotels Group also has an edge over other global hotel players when teaming up with hotel owners.
'We have an ownership mentality as owners of over 15 hotel assets ourselves,' he says.
'As such, we are able to adopt an ownership mentality in approaching all the properties in our management portfolio. Our experience as hotel owners allows us to efficiently partner with owners to maximise returns and enhance the value of their assets.'
Singapore International - A fortnightly series brought to you by IE Singapore and The Business Times
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
BT : Ho Bee, MCL launching Parvis condo at $1,480 psf average
Business Times - 05 Nov 2009
Ho Bee, MCL launching Parvis condo at $1,480 psf average
By KALPANA RASHIWALA
(SINGAPORE) As other developers mull over whether to release new projects this quarter or hold back until 2010, Ho Bee and MCL Land have moved to launch their Parvis condo at Holland Hill this week.
The average price is about $1,480 per sq ft for the initial batch of 85 units. The 12-storey freehold project has 248 units.
The pricing is considered fair for the location, said a property consultant who is not marketing Parvis, adding that it could easily be $1,500-1,600 psf on average.
The Lush on Holland Hill nearby is selling for about $1,500 psf on average. In the secondary market, units at Waterfall Gardens in Farrer Road are changing hands for about $1,450-1,500 psf.
The 85 units MCL Land and Ho Bee are releasing at Parvis will be priced between $1,400 psf and $1,600 psf. In absolute terms, prices range from $1.62 million for a two-bedroom unit of 990 sq ft to $3.02 million for a four-bedder of 1,991 sq ft.
The project comprises three blocks being built on the former Holland Hill Mansions site, which Ho Bee and MCL bought in late 2006 for $292 million or $750 psf per plot ratio.
Market watchers estimate the developers' breakeven cost could be about $1,200 psf. Assuming a $1,480 psf average selling price for the entire development, their total pre-tax profit for the project could be about $120 million, some analysts reckon.
This is the second time MCL Land and Ho Bee have teamed up. Their first partnership was the 716-unit Rio Vista condo at Hougang. The project was launched in 2001 and completed three years later.
MCL is developing solo a 608-unit condo on a 99-year leasehold plot near Yishun MRT Station, fronting Lower Seletar Reservoir and close to Singapore Orchid Country Club/Golf Course.
It paid $350 psf ppr for the site in a state tender in March last year. The project, named The Estuary, will be launch-ready by year-end but is more likely to be released only in the first quarter of next year, said MCL's CEO Koh Teck Chuan.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Ho Bee, MCL launching Parvis condo at $1,480 psf average
By KALPANA RASHIWALA
(SINGAPORE) As other developers mull over whether to release new projects this quarter or hold back until 2010, Ho Bee and MCL Land have moved to launch their Parvis condo at Holland Hill this week.
The average price is about $1,480 per sq ft for the initial batch of 85 units. The 12-storey freehold project has 248 units.
The pricing is considered fair for the location, said a property consultant who is not marketing Parvis, adding that it could easily be $1,500-1,600 psf on average.
The Lush on Holland Hill nearby is selling for about $1,500 psf on average. In the secondary market, units at Waterfall Gardens in Farrer Road are changing hands for about $1,450-1,500 psf.
The 85 units MCL Land and Ho Bee are releasing at Parvis will be priced between $1,400 psf and $1,600 psf. In absolute terms, prices range from $1.62 million for a two-bedroom unit of 990 sq ft to $3.02 million for a four-bedder of 1,991 sq ft.
The project comprises three blocks being built on the former Holland Hill Mansions site, which Ho Bee and MCL bought in late 2006 for $292 million or $750 psf per plot ratio.
Market watchers estimate the developers' breakeven cost could be about $1,200 psf. Assuming a $1,480 psf average selling price for the entire development, their total pre-tax profit for the project could be about $120 million, some analysts reckon.
This is the second time MCL Land and Ho Bee have teamed up. Their first partnership was the 716-unit Rio Vista condo at Hougang. The project was launched in 2001 and completed three years later.
MCL is developing solo a 608-unit condo on a 99-year leasehold plot near Yishun MRT Station, fronting Lower Seletar Reservoir and close to Singapore Orchid Country Club/Golf Course.
It paid $350 psf ppr for the site in a state tender in March last year. The project, named The Estuary, will be launch-ready by year-end but is more likely to be released only in the first quarter of next year, said MCL's CEO Koh Teck Chuan.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
BT : CapitaLand sells two Kallang properties
Business Times - 05 Nov 2009
CapitaLand sells two Kallang properties
Group now left with another two S'pore industrial assets in its portfolio
By KALPANA RASHIWALA
CAPITALAND has agreed to sell two of its industrial properties in Kallang for a total of $68 million to construction and industrial property development group Chiu Teng.
The move, which is part of a strategy to divest non-core assets, leaves CapitaLand with just two industrial properties - Corporation Place in Jurong, in which it has a 75 per cent stake, and Technopark@Chai Chee, which it fully owns.
BT reported in November last year that the property giant was believed to be looking to sell its four industrial properties in Singapore either individually or as a portfolio.
Technopark had a book value of $210 million at end-2008. Corporation Place was understood to be worth about $80 million at end-June 2009.
A CapitaLand spokeswoman said: 'We will continue to look into the possibility of divesting Corporation Place and Technopark at the appropriate time, for the right price and when target returns are met. However, as of now, we have no definitive plans for their sale.'
CapitaLand said in a news release yesterday that it expects to book a gain of about $19.2 million on the completion of sale of the two leasehold Kallang properties, which is expected to be next month.
Had the sale been effected on Jan 1, 2009, CapitaLand's earnings per share for the nine months ended Sept 30 would have increased almost 10 per cent, from 4.1 to 4.5 cents.
CapitaLand said yesterday the book value at Sept 30, 2009, of Kallang Bahru Complex (KBC) was $28.9 million and that of Kallang Avenue Industrial Centre (KAIC) was $19.4 million.
Colliers International brokered the sale of the two properties through an expression-of-interest and tender process that ended last month. Chiu Teng was the highest bidder.
Bidders had to make offers for the two assets together, said Colliers managing director Dennis Yeo.
'The properties have redevelopment potential,' he said. 'Under Master Plan 2008, the sites are zoned for Business 1 use with a plot ratio of 2.5 plus a bonus plot ratio of 0.5 for white uses such as offices, shops and showrooms.'
KAIC, which is on a site with a remaining lease of about 65 years, comprises four blocks of two-storey light industrial factory space occupied by SMEs such as carpentry, printing and engineering workshops.
KBC is a nine-storey flatted warehouse with total net lettable area of about 170,000 square feet. It is on a 109,000-sq-ft site with a remaining lease of about 68 years. The current occupancy rates for KBC and KAIC are 97 per cent and 82 per cent respectively.
CapitaLand Commercial CEO Ee Chee Hong said: 'This sale is in line with our active portfolio management strategy which includes divesting non-core assets. The current positive market sentiment provided us a window of opportunity to unlock the value of KAIC and KBC through divestment.
'Proceeds from the sale will be redeployed to new investments that will enhance our presence in our core office business, and for expansion in high-growth overseas markets.'
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
CapitaLand sells two Kallang properties
Group now left with another two S'pore industrial assets in its portfolio
By KALPANA RASHIWALA
CAPITALAND has agreed to sell two of its industrial properties in Kallang for a total of $68 million to construction and industrial property development group Chiu Teng.
The move, which is part of a strategy to divest non-core assets, leaves CapitaLand with just two industrial properties - Corporation Place in Jurong, in which it has a 75 per cent stake, and Technopark@Chai Chee, which it fully owns.
BT reported in November last year that the property giant was believed to be looking to sell its four industrial properties in Singapore either individually or as a portfolio.
Technopark had a book value of $210 million at end-2008. Corporation Place was understood to be worth about $80 million at end-June 2009.
A CapitaLand spokeswoman said: 'We will continue to look into the possibility of divesting Corporation Place and Technopark at the appropriate time, for the right price and when target returns are met. However, as of now, we have no definitive plans for their sale.'
CapitaLand said in a news release yesterday that it expects to book a gain of about $19.2 million on the completion of sale of the two leasehold Kallang properties, which is expected to be next month.
Had the sale been effected on Jan 1, 2009, CapitaLand's earnings per share for the nine months ended Sept 30 would have increased almost 10 per cent, from 4.1 to 4.5 cents.
CapitaLand said yesterday the book value at Sept 30, 2009, of Kallang Bahru Complex (KBC) was $28.9 million and that of Kallang Avenue Industrial Centre (KAIC) was $19.4 million.
Colliers International brokered the sale of the two properties through an expression-of-interest and tender process that ended last month. Chiu Teng was the highest bidder.
Bidders had to make offers for the two assets together, said Colliers managing director Dennis Yeo.
'The properties have redevelopment potential,' he said. 'Under Master Plan 2008, the sites are zoned for Business 1 use with a plot ratio of 2.5 plus a bonus plot ratio of 0.5 for white uses such as offices, shops and showrooms.'
KAIC, which is on a site with a remaining lease of about 65 years, comprises four blocks of two-storey light industrial factory space occupied by SMEs such as carpentry, printing and engineering workshops.
KBC is a nine-storey flatted warehouse with total net lettable area of about 170,000 square feet. It is on a 109,000-sq-ft site with a remaining lease of about 68 years. The current occupancy rates for KBC and KAIC are 97 per cent and 82 per cent respectively.
CapitaLand Commercial CEO Ee Chee Hong said: 'This sale is in line with our active portfolio management strategy which includes divesting non-core assets. The current positive market sentiment provided us a window of opportunity to unlock the value of KAIC and KBC through divestment.
'Proceeds from the sale will be redeployed to new investments that will enhance our presence in our core office business, and for expansion in high-growth overseas markets.'
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
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