Business Times - 19 Nov 2009
Laguna Park en bloc sale called off
Over at Meyer Place, owners to start inking deal soon to lower reserve price
By KALPANA RASHIWALA
(SINGAPORE) The en bloc sale of Laguna Park has been called off for now as the sales committee found it a race against time to get the minimum consent level from owners at a proposed lower price - said to be $967 million or $704 psf per plot ratio, down from the original $1.2 billion or $844 psf ppr reserve price - before the Collective Sale Agreement (CSA) expires next month.
But over at Meyer Place, owners will soon begin signing a supplemental agreement to their original CSA at a lower price of $59 million, down from the original $65 million. BT understands the sales committee is expected to sign an agreement soon for the freehold property's sale to a joint venture involving property and construction companies - subject to securing at least 80 per cent consent from owners at the lower price.
Meyer Place's CSA expires around mid-March 2010.
'The tender for Meyer Place closed on Oct 28 with four expressions of interest received and we are now negotiating with one of these parties,' says Christina Sim, director, investment, capital markets at Cushman and Wakefield, the marketing agent for the property.
The lower proposed reserve price of $59 million works out to $1,048 psf ppr including an estimated $3 million development charge (DC), down about 9 per cent from the $1,150 psf ppr based on the original $65 million reserve price.
Based on the revised price, the breakeven cost for a new development on the site could be $1,550 to $1,600 psf.
Laguna Park's sales committee decided to call off the estate's en bloc sale last week. 'While it did begin the process of getting owners to sign a supplemental agreement to lower the reserve price, the committee felt it was a race against time as the existing CSA expires next month,' said Karamjit Singh, managing director of Credo Real Estate, the marketing agent for the property.
Laguna Park comprises 528 units.
'It would probably be better if owners begin a fresh en bloc initiative next year and sign a fresh CSA which will give them a new 12-month period to find buyers,' Mr Singh said.
Laguna Park, which has a land area of 677,463 sq ft, failed to find a buyer after its tender closed last month. Although two bids were submitted, no buyer made the downpayment to seal the $1.2 billion deal at the time. Mr Singh said yesterday that although signing of a supplemental agreement at the lower price had started last month, so far no conditional agreement had been inked with any potential buyer for a sale at the lower price.
The unit land price of $704 psf ppr based on the revised $967 million price tag includes payment to the state to intensify the site's use and top up its lease to a fresh 99-year term.
Meyer Place has a freehold land area of 28,167 sq ft and was completed in the early 1990s, comprising 28 apartments - 24 units in a 13-storey block and four in a conservation house.
The property is zoned for residential use with a 2.1 plot ratio - the ratio of maximum potential gross floor area to land area.
Although Meyer Place is a relatively new development, it has redevelopment potential as its plot ratio in the 2008 Master Plan has not been fully utilised. 'The apartment block could be torn down and rebuilt into smaller units,' said Cushman's Ms Sim.
Market watchers point out that the buyer of Meyer Place could also seek to enlarge the plot by purchasing surrounding properties. Just in front of Meyer Place, at No. 40 Meyer Road, is a small apartment block with a site area of about 6,000 sq ft. There is also another plot behind Meyer Place housing two old bungalows at 18D and 18E Fort Road - adding up to more than 20,000 sq ft of land - that could potentially be purchased and amalgamated.
Last month, Roxy-Pacific signed an agreement to buy Dragon Mansion for $100.8 million or $863 psf ppr including DC - lower than the owners' previous asking price of $120 million or $1,020 psf ppr. Signing by owners of a supplemental agreement to the original CSA at the revised price is still in progress. The majority owners have up to January next year to make an application for a collective sale to the Strata Titles Board.
Thursday, November 19, 2009
BT : Blueprint to boost interior design sector
Business Times - 19 Nov 2009
Blueprint to boost interior design sector
Trade group lays out plans to raise standards in the industry
By EMILYN YAP
(SINGAPORE) Interior design is not just about running after contractors or drawing layouts - and an association believes it is time to hammer out higher standards for the industry here.
'I probably didn't draw a living room for 20 years,' says Nicholas Merrow-Smith, client manager at Davenport Campbell (Singapore) who became president of the Interior Design Confederation Singapore (IDCS) in April.
And he wants to show that interior designers can do more. IDCS hopes to raise the level of innovation in the industry and has several suggestions on how this can be done.
Among its initiatives are an accreditation scheme for interior designers, a professional development programme and more collaborations with foreign design firms or other design disciplines.
The proposals have won the support of some practitioners in the wider design industry. Singapore Institute of Architects president Ashvinkumar Kantilal is one who thinks that IDCS is heading in the right direction.
'The (interior design) industry needs to self-regulate and widen the members' knowledge base,' he says, suggesting skills upgrading programmes in the form of courses and seminars.
Financially, the interior design industry is in fine shape, with plenty of work. But according to Mr Merrow-Smith, it lacks creativity and diversity, and this is especially clear when it is seen against its foreign counterparts.
He cites an example - interior design firms here tend to focus on traditional real estate, while those overseas can be multi-disciplinary, even taking on projects such as theatre design.
And interior designers abroad are going into research, he adds. For example, there are studies on how the design of office space can get employees to buy into their companies' values.
'What we're trying to do is to show people that the design portfolio is much wider,' says Mr Merrow-Smith. And if design firms raise their standards, there is also a chance for them to secure better work, he adds.
IDCS is kicking off its efforts with a conference this month, called Design Value: Beyond the Tangible, to highlight how design can be a strategic tool.
It will be attended by players from global firms such as Gensler and Hassell, who will share their experience of how workplace and leisure space designs can influence people's performance and behaviour.
In the longer term, IDCS will try to facilitate partnerships between interior design outfits and other design industries such as architecture.
DP Architects director Tai Lee Siang trusts that greater collaboration among the various design sectors will help strengthen the Singapore brand of design.
IDCS also hopes to set up a professional development programme by the middle of next year. With the course, interior designers can undergo continual training and conduct industry-related research.
The next - and tougher - step would be to establish an accreditation programme for interior design firms. There is no such assessment system in place now. 'Some firms do very good work, but it's certainly not across the board,' Mr Merrow-Smith says.
Some interior design firms see benefits from accreditation. The group managing director of Nota Group, Ong Sheng Keat, reckons: 'In Singapore, a large proportion of the market is dominated by business-minded contractors or decorators who see the profession as another form of trade mainly due to the lack of enforced certification'.
Altered Interior director Thierryson Chua also supports accreditation for firms in the industry, but believes a scheme could be more effective if the government was involved. If IDCS oversees the scheme, it will have to be 'super active' in organising events and attracting members, he says.
IDCS could not disclose its membership size because an auditing session is under way. But Nota Group's Mr Ong says IDCS has been seen as exclusive and inclusive - 'exclusive in the sense that it only admits genuine practising interior design professionals as members, yet inclusive because it will attempt to convert the non-professionals'.
IDCS is aware of the hurdles to implementing its plans and it is getting help from the government. For instance, it has secured funding capped at $435,000 over three years.
The association also spoke to representatives from about 50 interior design firms and related companies. According to Mr Merrow-Smith, they are supportive of its initiatives.
'We don't expect the whole industry to step up,' he says. But 'we'd like to see a core body of people who are serious about pushing the envelope, innovating, and doing things differently'.
Mr Merrow-Smith: The initiatives include an accreditation scheme for interior designers, a professional development programme and more collaborations with foreign design firms or other design disciplines
Blueprint to boost interior design sector
Trade group lays out plans to raise standards in the industry
By EMILYN YAP
(SINGAPORE) Interior design is not just about running after contractors or drawing layouts - and an association believes it is time to hammer out higher standards for the industry here.
'I probably didn't draw a living room for 20 years,' says Nicholas Merrow-Smith, client manager at Davenport Campbell (Singapore) who became president of the Interior Design Confederation Singapore (IDCS) in April.
And he wants to show that interior designers can do more. IDCS hopes to raise the level of innovation in the industry and has several suggestions on how this can be done.
Among its initiatives are an accreditation scheme for interior designers, a professional development programme and more collaborations with foreign design firms or other design disciplines.
The proposals have won the support of some practitioners in the wider design industry. Singapore Institute of Architects president Ashvinkumar Kantilal is one who thinks that IDCS is heading in the right direction.
'The (interior design) industry needs to self-regulate and widen the members' knowledge base,' he says, suggesting skills upgrading programmes in the form of courses and seminars.
Financially, the interior design industry is in fine shape, with plenty of work. But according to Mr Merrow-Smith, it lacks creativity and diversity, and this is especially clear when it is seen against its foreign counterparts.
He cites an example - interior design firms here tend to focus on traditional real estate, while those overseas can be multi-disciplinary, even taking on projects such as theatre design.
And interior designers abroad are going into research, he adds. For example, there are studies on how the design of office space can get employees to buy into their companies' values.
'What we're trying to do is to show people that the design portfolio is much wider,' says Mr Merrow-Smith. And if design firms raise their standards, there is also a chance for them to secure better work, he adds.
IDCS is kicking off its efforts with a conference this month, called Design Value: Beyond the Tangible, to highlight how design can be a strategic tool.
It will be attended by players from global firms such as Gensler and Hassell, who will share their experience of how workplace and leisure space designs can influence people's performance and behaviour.
In the longer term, IDCS will try to facilitate partnerships between interior design outfits and other design industries such as architecture.
DP Architects director Tai Lee Siang trusts that greater collaboration among the various design sectors will help strengthen the Singapore brand of design.
IDCS also hopes to set up a professional development programme by the middle of next year. With the course, interior designers can undergo continual training and conduct industry-related research.
The next - and tougher - step would be to establish an accreditation programme for interior design firms. There is no such assessment system in place now. 'Some firms do very good work, but it's certainly not across the board,' Mr Merrow-Smith says.
Some interior design firms see benefits from accreditation. The group managing director of Nota Group, Ong Sheng Keat, reckons: 'In Singapore, a large proportion of the market is dominated by business-minded contractors or decorators who see the profession as another form of trade mainly due to the lack of enforced certification'.
Altered Interior director Thierryson Chua also supports accreditation for firms in the industry, but believes a scheme could be more effective if the government was involved. If IDCS oversees the scheme, it will have to be 'super active' in organising events and attracting members, he says.
IDCS could not disclose its membership size because an auditing session is under way. But Nota Group's Mr Ong says IDCS has been seen as exclusive and inclusive - 'exclusive in the sense that it only admits genuine practising interior design professionals as members, yet inclusive because it will attempt to convert the non-professionals'.
IDCS is aware of the hurdles to implementing its plans and it is getting help from the government. For instance, it has secured funding capped at $435,000 over three years.
The association also spoke to representatives from about 50 interior design firms and related companies. According to Mr Merrow-Smith, they are supportive of its initiatives.
'We don't expect the whole industry to step up,' he says. But 'we'd like to see a core body of people who are serious about pushing the envelope, innovating, and doing things differently'.
Mr Merrow-Smith: The initiatives include an accreditation scheme for interior designers, a professional development programme and more collaborations with foreign design firms or other design disciplines
BT : Holiday Inn Park View completes overhaul
Business Times - 19 Nov 2009
Holiday Inn Park View completes overhaul
By NISHA RAMCHANDANI
(SINGAPORE) The Holiday Inn Park View, which opened here in 1985, has been renamed Holiday Inn Singapore Orchard City Centre as part of a $25 million refurbishment exercise.
Its signage, reception area, guest rooms and food and beverage outlets have been overhauled. Despite the downturn, the decision was made to go ahead with renovating the 319-room hotel over a 15 month period. This was done in conjunction with InterContinental Hotels Group's Holiday Inn global relaunch programme.
'We're long term players. For us to refurbish in slightly more difficult economic times actually makes greater sense. If you do it in good times, you essentially take rooms out of the inventory,' said Aron Harilela, director of Hong-Kong based property developer The Harilela Group, which owns the Holiday Inn in Singapore as well as other properties in Asia, Europe and the Americas.
The group also owns three transit hotels here at Changi Airport, as well as a 20 per cent stake in Thomson Medical Centre.
Looking ahead, The Harilela Group is expanding its portfolio with the launch of two hotels in Tier 2 and 3 cities in China - the first of which will open in the second quarter of 2010 and the second in Q3 2011.
The two hotels, each costing US$15 million, will be funded by a mix of debt and equity. 'We're looking to do five hotels in China. There's a big market for internationally branded, standardised products,' said Dr Harilela, adding that land in Tier 1 cities tends to be priced exorbitantly.
Meanwhile, the Holiday Inn has out-performed the industry this year, according to general manager Shantha de Silva, with occupancy rates in the mid-80s, down from the low 90s in 2007-08.
Room rates this year have come down about 20 per cent compared to last year but remain in the low $200s.
'We've been trading fairly robustly even, this year,' said Mr de Silva. Business travellers make up 60-70 per cent of the clientele.
And Mr de Silva is confident that the hotel industry is likely to pick up soon.
Holiday Inn Park View completes overhaul
By NISHA RAMCHANDANI
(SINGAPORE) The Holiday Inn Park View, which opened here in 1985, has been renamed Holiday Inn Singapore Orchard City Centre as part of a $25 million refurbishment exercise.
Its signage, reception area, guest rooms and food and beverage outlets have been overhauled. Despite the downturn, the decision was made to go ahead with renovating the 319-room hotel over a 15 month period. This was done in conjunction with InterContinental Hotels Group's Holiday Inn global relaunch programme.
'We're long term players. For us to refurbish in slightly more difficult economic times actually makes greater sense. If you do it in good times, you essentially take rooms out of the inventory,' said Aron Harilela, director of Hong-Kong based property developer The Harilela Group, which owns the Holiday Inn in Singapore as well as other properties in Asia, Europe and the Americas.
The group also owns three transit hotels here at Changi Airport, as well as a 20 per cent stake in Thomson Medical Centre.
Looking ahead, The Harilela Group is expanding its portfolio with the launch of two hotels in Tier 2 and 3 cities in China - the first of which will open in the second quarter of 2010 and the second in Q3 2011.
The two hotels, each costing US$15 million, will be funded by a mix of debt and equity. 'We're looking to do five hotels in China. There's a big market for internationally branded, standardised products,' said Dr Harilela, adding that land in Tier 1 cities tends to be priced exorbitantly.
Meanwhile, the Holiday Inn has out-performed the industry this year, according to general manager Shantha de Silva, with occupancy rates in the mid-80s, down from the low 90s in 2007-08.
Room rates this year have come down about 20 per cent compared to last year but remain in the low $200s.
'We've been trading fairly robustly even, this year,' said Mr de Silva. Business travellers make up 60-70 per cent of the clientele.
And Mr de Silva is confident that the hotel industry is likely to pick up soon.
BT : Balestier factory en bloc after rezoning
Business Times - 19 Nov 2009
Balestier factory en bloc after rezoning
(SINGAPORE) The owners of a terrace factory building off Balestier Road have put up their property for an en bloc sale following the Urban Redevelopment Authority's (URA) decision in 2008 to consider rezoning the site for residential use upon redevelopment.
The freehold property is being marketed by Credo Real Estate with a price tag in the region of $27 million to $30 million.
About $18.7 million is payable as development charge (DC) for the rezoning of the site. After factoring the DC payable, the estimated price tag reflects a per square foot per plot ratio (psf ppr) price of $586 psf ppr to $625 psf ppr. Breakeven for the project is at about $950 psf to $1,000 psf.
The three-storey strata-titled development at 6 Jalan Ampas comprises four terrace factory units built in the 1980s. They belong to four unrelated owners. The building sits on a corner rectangular-shaped land measuring just over 2,586 square metres. Tan Hong Boon, Credo's deputy managing director, said that the URA issued a circular in July 2008 to say that it had completed a review on a cluster of 15 industrial buildings at Jalan Ampas/Lorong Ampas, and was prepared to consider rezoning the properties to residential use at a gross plot ratio of 2.8 upon redevelopment. Based on this rezoning, the site may be redeveloped into a high-rise residential development comprising some 100 apartments with an average size of 780 square feet.
The tender for the launch closes at 3pm on Dec 10. Credo said that the site is about 50m from Shaw Plaza, a shopping mall that houses a major supermarket, a multiplex cinema, banks and fast food eateries such as McDonald's.
A new development in the same vicinity, Prestige Heights, was recently launched at a median sale price of $1,322 psf.
Balestier factory en bloc after rezoning
(SINGAPORE) The owners of a terrace factory building off Balestier Road have put up their property for an en bloc sale following the Urban Redevelopment Authority's (URA) decision in 2008 to consider rezoning the site for residential use upon redevelopment.
The freehold property is being marketed by Credo Real Estate with a price tag in the region of $27 million to $30 million.
About $18.7 million is payable as development charge (DC) for the rezoning of the site. After factoring the DC payable, the estimated price tag reflects a per square foot per plot ratio (psf ppr) price of $586 psf ppr to $625 psf ppr. Breakeven for the project is at about $950 psf to $1,000 psf.
The three-storey strata-titled development at 6 Jalan Ampas comprises four terrace factory units built in the 1980s. They belong to four unrelated owners. The building sits on a corner rectangular-shaped land measuring just over 2,586 square metres. Tan Hong Boon, Credo's deputy managing director, said that the URA issued a circular in July 2008 to say that it had completed a review on a cluster of 15 industrial buildings at Jalan Ampas/Lorong Ampas, and was prepared to consider rezoning the properties to residential use at a gross plot ratio of 2.8 upon redevelopment. Based on this rezoning, the site may be redeveloped into a high-rise residential development comprising some 100 apartments with an average size of 780 square feet.
The tender for the launch closes at 3pm on Dec 10. Credo said that the site is about 50m from Shaw Plaza, a shopping mall that houses a major supermarket, a multiplex cinema, banks and fast food eateries such as McDonald's.
A new development in the same vicinity, Prestige Heights, was recently launched at a median sale price of $1,322 psf.
BT : Property tax rebate for HDB owner-occupiers
Business Times - 19 Nov 2009
Property tax rebate for HDB owner-occupiers
Set at 50% of tax payable, it is capped at $120; zero tax for one and 2-room HDB owners
THE government will grant a new property tax rebate to all HDB owner-occupiers next year to help them adjust to the increase in annual values (AVs).
The Inland Revenue Authority of Singapore (Iras), which reviews the AVs of all properties, did not revise AVs for HDB flats on Jan 1 this year, given the uncertainty in market rental trends due to the recession.
HDB rentals have since stabilised after a moderate decline and have begun to rise. As a result, current values of HDB rentals, as well as HDB resale prices, are significantly higher than 2007 levels. Iras will therefore revise the AVs of all HDB flat types from Jan 1, 2010. The last AV revision for HDB flats was done last year, based on rental values in 2007.
The new rebate granted to HDB owner-occupiers will apply to property tax payable next year after deducting the 1994 GST Rebate, which is available to all residential property owner-occupiers.
The new rebate is set at 50 per cent of the payable property tax and is capped at $120. To provide additional help to owner-occupiers of smaller HDB flats, the rebate will be the lower of $50 or the actual property tax amount.
With the new property tax rebate for HDB owner-occupiers and the ongoing 1994 GST Rebate, all one and two-room HDB owner-occupiers will continue to pay zero property tax next year.
For average three-room HDB owner-occupiers, the increase in property tax next year, after deducting the special rebates, will be $72 for the year. For four-room HDB owner-occupiers, the average tax increase will be $97 for the year and for five-room HDB owner-occupiers, the average tax increase will be $107 for the year as a whole. For executive HDB owner-occupiers, it will be $103.
Owners of HDB flats will receive their valuation notices and property tax bills by Jan 1 next year. Property tax for 2010 is payable by Jan 31 next year.
Iras encourages HDB flat owners to use the Giro payment scheme to enjoy up to 12 interest-free monthly instalments. Application forms can be downloaded from www.iras.gov.sg.
Property tax rebate for HDB owner-occupiers
Set at 50% of tax payable, it is capped at $120; zero tax for one and 2-room HDB owners
THE government will grant a new property tax rebate to all HDB owner-occupiers next year to help them adjust to the increase in annual values (AVs).
The Inland Revenue Authority of Singapore (Iras), which reviews the AVs of all properties, did not revise AVs for HDB flats on Jan 1 this year, given the uncertainty in market rental trends due to the recession.
HDB rentals have since stabilised after a moderate decline and have begun to rise. As a result, current values of HDB rentals, as well as HDB resale prices, are significantly higher than 2007 levels. Iras will therefore revise the AVs of all HDB flat types from Jan 1, 2010. The last AV revision for HDB flats was done last year, based on rental values in 2007.
The new rebate granted to HDB owner-occupiers will apply to property tax payable next year after deducting the 1994 GST Rebate, which is available to all residential property owner-occupiers.
The new rebate is set at 50 per cent of the payable property tax and is capped at $120. To provide additional help to owner-occupiers of smaller HDB flats, the rebate will be the lower of $50 or the actual property tax amount.
With the new property tax rebate for HDB owner-occupiers and the ongoing 1994 GST Rebate, all one and two-room HDB owner-occupiers will continue to pay zero property tax next year.
For average three-room HDB owner-occupiers, the increase in property tax next year, after deducting the special rebates, will be $72 for the year. For four-room HDB owner-occupiers, the average tax increase will be $97 for the year and for five-room HDB owner-occupiers, the average tax increase will be $107 for the year as a whole. For executive HDB owner-occupiers, it will be $103.
Owners of HDB flats will receive their valuation notices and property tax bills by Jan 1 next year. Property tax for 2010 is payable by Jan 31 next year.
Iras encourages HDB flat owners to use the Giro payment scheme to enjoy up to 12 interest-free monthly instalments. Application forms can be downloaded from www.iras.gov.sg.
ST : Laguna Park not for sale - at least for now
Nov 19, 2009
Laguna Park not for sale - at least for now
By Robin Chan & Jessica Cheam
THE Laguna Park sales committee has voted to call off the faltering collective sale of their Marine Parade condo, after an initial bid failed.
The on-off sale would have been one of the largest here, with an asking price of around $1 billion. But lukewarm response from developers and a fast-approaching deadline for a sale to be completed sealed its fate - for now.
Mr Karamjit Singh, managing director of Credo Real Estate, told The Straits Times that the Laguna Park sales committee decided to let the collective sales agreement (CSA) expire next month: 'To get the 80 per cent takes time, and because it's a very big development, there was not the luxury of time.'
Last month, owners in the East Coast estate failed to sell the property en bloc for $1.2 billion through a tender process. They were considering a lower price of between $950 million and $1 billion, below the $1.2 billion reserve price which would require them to get an 80 per cent vote of approval from owners.
The impending expiry of the CSA left them with little time to get the required signatures. The committee thus decided that instead of pursuing the more than 400 signatures needed, it would be better to start afresh with a new CSA next year, giving them a full 12 months to pursue another sale, Mr Singh said.
Though there had been talks with a potential buyer, nothing came of them, given the sales committee's decision not to pursue the signatures.
It is still too early to say when a new sales committee will be nominated, but Mr Singh says it will be next year.
Owners had not been officially informed of the development when The Straits Times called yesterday, but one who was against the sale and declined to be named was relieved: 'It's a wise move because of the present market situation. One year later, the property market might be picking up again and we would be more justified to sell.'
The Laguna Park sale has been surrounded by drama from the word go. The development obtained the 80 per cent approval from the 500 or so owners late last year, but the $1.2 billion price was decided late 2007.
There was still a vocal minority strongly opposed to a sale, and incidents of vandalism occurred at the condo protesting the deal.
Laguna is a former HUDC estate with a land area of about 677,493 sq ft and a gross plot ratio of 2.8.
If the sale of the 528-unit leasehold project had come off, it would have only been the second en bloc deal this year. The first was the smaller Dragon Mansion in Spottiswoode Park Road, which eventually sold for $100.8 million last month despite asking for $120 million.
Laguna Park not for sale - at least for now
By Robin Chan & Jessica Cheam
THE Laguna Park sales committee has voted to call off the faltering collective sale of their Marine Parade condo, after an initial bid failed.
The on-off sale would have been one of the largest here, with an asking price of around $1 billion. But lukewarm response from developers and a fast-approaching deadline for a sale to be completed sealed its fate - for now.
Mr Karamjit Singh, managing director of Credo Real Estate, told The Straits Times that the Laguna Park sales committee decided to let the collective sales agreement (CSA) expire next month: 'To get the 80 per cent takes time, and because it's a very big development, there was not the luxury of time.'
Last month, owners in the East Coast estate failed to sell the property en bloc for $1.2 billion through a tender process. They were considering a lower price of between $950 million and $1 billion, below the $1.2 billion reserve price which would require them to get an 80 per cent vote of approval from owners.
The impending expiry of the CSA left them with little time to get the required signatures. The committee thus decided that instead of pursuing the more than 400 signatures needed, it would be better to start afresh with a new CSA next year, giving them a full 12 months to pursue another sale, Mr Singh said.
Though there had been talks with a potential buyer, nothing came of them, given the sales committee's decision not to pursue the signatures.
It is still too early to say when a new sales committee will be nominated, but Mr Singh says it will be next year.
Owners had not been officially informed of the development when The Straits Times called yesterday, but one who was against the sale and declined to be named was relieved: 'It's a wise move because of the present market situation. One year later, the property market might be picking up again and we would be more justified to sell.'
The Laguna Park sale has been surrounded by drama from the word go. The development obtained the 80 per cent approval from the 500 or so owners late last year, but the $1.2 billion price was decided late 2007.
There was still a vocal minority strongly opposed to a sale, and incidents of vandalism occurred at the condo protesting the deal.
Laguna is a former HUDC estate with a land area of about 677,493 sq ft and a gross plot ratio of 2.8.
If the sale of the 528-unit leasehold project had come off, it would have only been the second en bloc deal this year. The first was the smaller Dragon Mansion in Spottiswoode Park Road, which eventually sold for $100.8 million last month despite asking for $120 million.
ST : Industrial site in Balestier up for sale
Nov 19, 2009
Industrial site in Balestier up for sale
A PIECE of industrial land in Balestier, which can be converted into a residential project, has been put up for sale.
The freehold 27,838 sq ft plot can be turned into a development comprising some 100 apartments with an average size of 780 sq ft each, said marketing agent Credo Real Estate.
The four owners of the four three-storey terrace factory units at 6 Jalan Ampas are hoping for $27 million to $30 million.
But the buyer of the land will also have to pay a development charge of about $18.7 million for the rezoning of the site.
The indicative price range after factoring in the development charge works out to $586 to $625 per sq ft per plot ratio. At this price, the developer's breakeven point is $950 to $1,000 psf, said Credo's deputy managing director, Mr Tan Hong Boon.
The site is near the Shaw Plaza mall and recently-launched Prestige Heights, where some units were sold in October at a median price of $1,322 psf.
Mr Tan said the four owners could be the first industrial owners in the area to initiate a sale, after the Urban Redevelopment Authority's review of the area's 15 industrial buildings in July last year.
The URA said it was prepared to consider proposals to change the use of the site from industrial to residential purposes at a gross plot ratio of 2.8.
But Mr Tan said the hefty development charge may mean it will be a while before the owners of the area's 14 other industrial buildings find a collective sale worthwhile.
Meanwhile, the collective sale of The Meyer Place condo off Meyer Road has yet to be wrapped up. The tender closed on Oct 28 with no firm bids. There is apparently an offer that is $6 million below the owners' reserve price of $65 million.
Industrial site in Balestier up for sale
A PIECE of industrial land in Balestier, which can be converted into a residential project, has been put up for sale.
The freehold 27,838 sq ft plot can be turned into a development comprising some 100 apartments with an average size of 780 sq ft each, said marketing agent Credo Real Estate.
The four owners of the four three-storey terrace factory units at 6 Jalan Ampas are hoping for $27 million to $30 million.
But the buyer of the land will also have to pay a development charge of about $18.7 million for the rezoning of the site.
The indicative price range after factoring in the development charge works out to $586 to $625 per sq ft per plot ratio. At this price, the developer's breakeven point is $950 to $1,000 psf, said Credo's deputy managing director, Mr Tan Hong Boon.
The site is near the Shaw Plaza mall and recently-launched Prestige Heights, where some units were sold in October at a median price of $1,322 psf.
Mr Tan said the four owners could be the first industrial owners in the area to initiate a sale, after the Urban Redevelopment Authority's review of the area's 15 industrial buildings in July last year.
The URA said it was prepared to consider proposals to change the use of the site from industrial to residential purposes at a gross plot ratio of 2.8.
But Mr Tan said the hefty development charge may mean it will be a while before the owners of the area's 14 other industrial buildings find a collective sale worthwhile.
Meanwhile, the collective sale of The Meyer Place condo off Meyer Road has yet to be wrapped up. The tender closed on Oct 28 with no firm bids. There is apparently an offer that is $6 million below the owners' reserve price of $65 million.
ST : Property tax on HDB flats going up
Nov 19, 2009
Property tax on HDB flats going up
One-off rebate to cushion rise; one- and two-room owners will pay nothing
By Jessica Cheam
HOMEOWNERS: be prepared to pay higher property taxes next year.
In line with the rally in home prices, the taxman is revising upwards the value of Housing Board (HDB) homes.
The Inland Revenue Authority of Singapore (Iras) announced yesterday that the annual values (AV) of all types of HDB flats will be raised with effect from Jan 1.
This will mean a hike in property taxes for 2010.
The property tax rate in Singapore is currently set at 10 per cent of a property's AV, although owner- occupied residential properties enjoy a concessionary 4 per cent tax rate.
To soften the impact, a one-off rebate is being introduced to help HDB homeowners adjust to the increase.
With this new rebate and ongoing GST rebates, low-income households who live in one-room or two- room flats will not have to pay any tax for 2010, Iras said.
Industry analysts yesterday said that Iras's latest move was 'not totally unexpected'. HDB resale prices have risen a hefty 31.2 per cent in the past two years, and a further 3.8 per cent in the first nine months of the year.
'As HDB resale flat prices have exceeded the property peak of 2007, this was inevitable,' said Ngee Ann Polytechnic real estate lecturer Nicholas Mak.
What was more surprising, however, was the timing of the announcement.
'There are households who are still reeling from the recession, and unemployment is still high. It could have come a bit later when the job market has recovered,' said Mr Mak.
Iras last revised AVs on Jan 1, 2008.
It said yesterday that it reviews all property AVs annually, including HDB flats, to 'ensure that they reflect prevailing market rental values for the purpose of determining property tax'.
AVs of HDB flats were not revised last year, despite HDB rentals increasing by between 31 per cent and 37 per cent in 2008 relative to 2007, it said.
This adjustment was deferred in view of the uncertainty in market rental trends caused by the economic recession. Iras added that there was evidence of rental value declines due to the negative economic outlook at the time.
However, market sentiment has since changed dramatically. Iras noted that HDB rentals stabilised after a moderate decline from late 2008 to the middle of this year, and have since begun to rise.
As a result, current values of HDB rentals, as well as resale prices, are still significantly higher than levels seen in 2007.
'The AVs of HDB flats will, therefore, have to be adjusted beyond the last revision in January 2008,' said Iras.
But to help HDB homeowners adjust to the rise, the Government is granting a new property tax rebate to all HDB owner-occupiers for property tax payable in 2010 - set at 50 per cent of the property tax payable and capped at $120. Low-income households will be assisted because flats with a property tax of $50 and below will not need to pay property tax next year.
The average three- room HDB owner-occupier will face an increase, after rebates, of $72 for the year.
The rise will be about $97 for four-roomers, $107 for five-roomers and $103 for executive HDB flat owners.
PropNex chief executive Mohamed Ismail said the rebates will help cushion the blow. He pointed out that HDB owners have enjoyed higher rentals and resale values over the past two years, so the increase in taxes was 'to be expected'.
HDB homeowner Lim Chye Boon, 48, said he had expected the tax increase to come 'at some point' so was not too bothered.
But for Mr Kenny Koh, 27, who has just bought his five-room flat in Sengkang, it was not welcome news.
'I just spent so much money buying my new home and now have to pay more again,' he said. 'But at least, the rebate helps a bit.'
Property tax on HDB flats going up
One-off rebate to cushion rise; one- and two-room owners will pay nothing
By Jessica Cheam
HOMEOWNERS: be prepared to pay higher property taxes next year.
In line with the rally in home prices, the taxman is revising upwards the value of Housing Board (HDB) homes.
The Inland Revenue Authority of Singapore (Iras) announced yesterday that the annual values (AV) of all types of HDB flats will be raised with effect from Jan 1.
This will mean a hike in property taxes for 2010.
The property tax rate in Singapore is currently set at 10 per cent of a property's AV, although owner- occupied residential properties enjoy a concessionary 4 per cent tax rate.
To soften the impact, a one-off rebate is being introduced to help HDB homeowners adjust to the increase.
With this new rebate and ongoing GST rebates, low-income households who live in one-room or two- room flats will not have to pay any tax for 2010, Iras said.
Industry analysts yesterday said that Iras's latest move was 'not totally unexpected'. HDB resale prices have risen a hefty 31.2 per cent in the past two years, and a further 3.8 per cent in the first nine months of the year.
'As HDB resale flat prices have exceeded the property peak of 2007, this was inevitable,' said Ngee Ann Polytechnic real estate lecturer Nicholas Mak.
What was more surprising, however, was the timing of the announcement.
'There are households who are still reeling from the recession, and unemployment is still high. It could have come a bit later when the job market has recovered,' said Mr Mak.
Iras last revised AVs on Jan 1, 2008.
It said yesterday that it reviews all property AVs annually, including HDB flats, to 'ensure that they reflect prevailing market rental values for the purpose of determining property tax'.
AVs of HDB flats were not revised last year, despite HDB rentals increasing by between 31 per cent and 37 per cent in 2008 relative to 2007, it said.
This adjustment was deferred in view of the uncertainty in market rental trends caused by the economic recession. Iras added that there was evidence of rental value declines due to the negative economic outlook at the time.
However, market sentiment has since changed dramatically. Iras noted that HDB rentals stabilised after a moderate decline from late 2008 to the middle of this year, and have since begun to rise.
As a result, current values of HDB rentals, as well as resale prices, are still significantly higher than levels seen in 2007.
'The AVs of HDB flats will, therefore, have to be adjusted beyond the last revision in January 2008,' said Iras.
But to help HDB homeowners adjust to the rise, the Government is granting a new property tax rebate to all HDB owner-occupiers for property tax payable in 2010 - set at 50 per cent of the property tax payable and capped at $120. Low-income households will be assisted because flats with a property tax of $50 and below will not need to pay property tax next year.
The average three- room HDB owner-occupier will face an increase, after rebates, of $72 for the year.
The rise will be about $97 for four-roomers, $107 for five-roomers and $103 for executive HDB flat owners.
PropNex chief executive Mohamed Ismail said the rebates will help cushion the blow. He pointed out that HDB owners have enjoyed higher rentals and resale values over the past two years, so the increase in taxes was 'to be expected'.
HDB homeowner Lim Chye Boon, 48, said he had expected the tax increase to come 'at some point' so was not too bothered.
But for Mr Kenny Koh, 27, who has just bought his five-room flat in Sengkang, it was not welcome news.
'I just spent so much money buying my new home and now have to pay more again,' he said. 'But at least, the rebate helps a bit.'
ST : Clementi Mall a potential shopping hub
Nov 18, 2009
Clementi Mall a potential shopping hub
Bullish bid attributed to its ability to generate recurring income: SPH
By Jessica Cheam
CLEMENTI Mall's potential as a busy shopping hub and its ability to generate recurring income were key reasons for the bullish bid from Singapore Press Holdings (SPH) and its joint venture partners.
SPH chief executive Alan Chan told a briefing yesterday that the team behind the winning $541.9 million tender based its bid on rents the mall could achieve beyond the first rental cycle.
Mr Chan said the bidding team was confident of achieving rents of top suburban malls and that the mall will enjoy capital appreciation similar to other retail properties in land-scarce Singapore.
'Due to scarcity of land and growing population, prospect for capital appreciation is positive,' he added.
Times Properties owns 60 per cent of the joint venture CM Domain; NTUC Income and NTUC FairPrice hold 20 per cent stakes. The Housing Board awarded the shopping centre site to it yesterday.
Some analysts were taken aback when bids for the tender of the 99-year leasehold mall at the junction of Commonwealth Avenue West and Clementi Avenue 3 were revealed last week.
CM Domain's bullish offer was nearly 42 per cent above the second-highest bid of $382 million from a joint venture between Keppel Land's Alpha Investment Partners and Guthrie.
SPH shares reacted by sliding 3.9 per cent the next day, but have since regained some ground. The company noted that the value of its Paragon investment in Orchard Road had increased at a compounded annual growth rate of 8 per cent since it was acquired in 1997. Some market watchers at the time had thought that the price paid for the shopping mall in Orchard Road was on the high side.
Mr Chan said that Clementi Mall has 'a unique opportunity to be the anchor attraction' in the area, adding that already '300 interested tenants have registered their interest'. SPH was also on the lookout for recurrent revenue streams and felt this was a great opportunity. The company is confident of achieving similar yields as those achieved by the top suburban malls and aims to open the mall by the first half of 2011.
Mr Chan clarified that the total cost of the mall would come under $3,000 psf of retail net floor area - less than analyst estimates - as the fit-out will be less than $40 million, subject to final negotiations with contractors. CM Domain needs to fit out the mall as the HDB is building only the shell structure. HDB will hand over the structure by next August.
An SPH statement also released yesterday said the offer price was 'arrived at after considering the economic potential of the property based on stabilised operations after rental renewal cycle and enhancing yield over time'. It said that factors such as the expected net lettable area, rental rates and property yields, market positioning and trade and tenant mix were taken into account.
Chesterton Suntec International's research and consultancy director Colin Tan said yesterday the bids by other players in the market show that they were perhaps not as optimistic.
The joint venture's cash-rich partners also likely had allowed it to bid so bullishly, he added.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak noted that it was usual for bidders to bid on a property's potential. 'If someone sees a gem stone in the rough, they could bid bullishly for it as they see the potential,' he said. 'If the mall can achieve 5 to 6 per cent net yield, it's pretty decent.'
He pointed out that the mall does not have immediate competition and will have a large catchment of shoppers from the Holland, Bukit Timah and West Coast areas. The site, which has direct links to the Clementi MRT station, is part of a larger HDB project comprising two 40-storey blocks of flats, a carpark, roof garden and a bus interchange. The mall will occupy basement one, the third and fourth levels and part of the fifth floor. Total gross floor area is about 25,000 sq m while the net floor area is up to 18,000 sq m.
Mr Chan said the mall will be driven by a strong retail team from SPH, NTUC FairPrice and Income - all with a proven track record in suburban malls.
The purchase will be financed through internal funds with gearing for yield enhancement, and will not have an impact on dividends, he said.
SPH shares closed two cents down at $3.77 yesterday.
jcheam@sph.com.sg
Clementi Mall a potential shopping hub
Bullish bid attributed to its ability to generate recurring income: SPH
By Jessica Cheam
CLEMENTI Mall's potential as a busy shopping hub and its ability to generate recurring income were key reasons for the bullish bid from Singapore Press Holdings (SPH) and its joint venture partners.
SPH chief executive Alan Chan told a briefing yesterday that the team behind the winning $541.9 million tender based its bid on rents the mall could achieve beyond the first rental cycle.
Mr Chan said the bidding team was confident of achieving rents of top suburban malls and that the mall will enjoy capital appreciation similar to other retail properties in land-scarce Singapore.
'Due to scarcity of land and growing population, prospect for capital appreciation is positive,' he added.
Times Properties owns 60 per cent of the joint venture CM Domain; NTUC Income and NTUC FairPrice hold 20 per cent stakes. The Housing Board awarded the shopping centre site to it yesterday.
Some analysts were taken aback when bids for the tender of the 99-year leasehold mall at the junction of Commonwealth Avenue West and Clementi Avenue 3 were revealed last week.
CM Domain's bullish offer was nearly 42 per cent above the second-highest bid of $382 million from a joint venture between Keppel Land's Alpha Investment Partners and Guthrie.
SPH shares reacted by sliding 3.9 per cent the next day, but have since regained some ground. The company noted that the value of its Paragon investment in Orchard Road had increased at a compounded annual growth rate of 8 per cent since it was acquired in 1997. Some market watchers at the time had thought that the price paid for the shopping mall in Orchard Road was on the high side.
Mr Chan said that Clementi Mall has 'a unique opportunity to be the anchor attraction' in the area, adding that already '300 interested tenants have registered their interest'. SPH was also on the lookout for recurrent revenue streams and felt this was a great opportunity. The company is confident of achieving similar yields as those achieved by the top suburban malls and aims to open the mall by the first half of 2011.
Mr Chan clarified that the total cost of the mall would come under $3,000 psf of retail net floor area - less than analyst estimates - as the fit-out will be less than $40 million, subject to final negotiations with contractors. CM Domain needs to fit out the mall as the HDB is building only the shell structure. HDB will hand over the structure by next August.
An SPH statement also released yesterday said the offer price was 'arrived at after considering the economic potential of the property based on stabilised operations after rental renewal cycle and enhancing yield over time'. It said that factors such as the expected net lettable area, rental rates and property yields, market positioning and trade and tenant mix were taken into account.
Chesterton Suntec International's research and consultancy director Colin Tan said yesterday the bids by other players in the market show that they were perhaps not as optimistic.
The joint venture's cash-rich partners also likely had allowed it to bid so bullishly, he added.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak noted that it was usual for bidders to bid on a property's potential. 'If someone sees a gem stone in the rough, they could bid bullishly for it as they see the potential,' he said. 'If the mall can achieve 5 to 6 per cent net yield, it's pretty decent.'
He pointed out that the mall does not have immediate competition and will have a large catchment of shoppers from the Holland, Bukit Timah and West Coast areas. The site, which has direct links to the Clementi MRT station, is part of a larger HDB project comprising two 40-storey blocks of flats, a carpark, roof garden and a bus interchange. The mall will occupy basement one, the third and fourth levels and part of the fifth floor. Total gross floor area is about 25,000 sq m while the net floor area is up to 18,000 sq m.
Mr Chan said the mall will be driven by a strong retail team from SPH, NTUC FairPrice and Income - all with a proven track record in suburban malls.
The purchase will be financed through internal funds with gearing for yield enhancement, and will not have an impact on dividends, he said.
SPH shares closed two cents down at $3.77 yesterday.
jcheam@sph.com.sg
TODAY Online : Higher property taxes in 2010
Higher property taxes in 2010
To cushion the rise, Govt to give a one-off rebate of 50%
by Esther Ng 05:55 AM Nov 19, 2009
SINGAPORE - Expect to pay higher property taxes next year, but the rise will come with some cushioning. The Inland Revenue Authority of Singapore (Iras) has announced that it is raising the Annual Value (AV) of Housing Development Board (HDB) flats.
The move comes on the back of rising resale prices and rents.
The tax authority noted that while rents for HDB flats have stabilised after a moderate decline between the end of last year and the middle of this year, rentals have begun to rise since.
"As a result, current values of HDB rentals, as well as HDB resale prices, are still significantly higher than levels observed in 2007. The AVs of HDB flats will therefore have to be adjusted," said Iras.
The last time there was a revision in the AV for HDB flats was in January last year.
Even though HDB rental increased by up to 37 per cent last year relative to 2007, Iras deferred adjusting the AV for the start of this year because of the "uncertainty in market rental trends" in a recession.
To help HDB flat owners cope with the increase in January, the Government will give a one-off property tax rebate of 50 per cent of the tax payable, capped at $120. This applies to all those who live in the flats they own.
To help those in smaller flats, Iras will offset the total tax amount for households which have to pay property tax of $50 or less. This would mean that two-roomers will not need to pay property tax.
"It will help soften the blow," said real estate consultant Nicholas Mak.
He added that owner-occupiers of HDB flats will not be affected that much as "property tax on HDB is lower than (that of) private property".
On average, the increase will in property tax will be $72 for three-room flats, $97 for four-room flats, $107 for five-room flats and $103 for those in executive flats.
For those renting out their HDB flats and who will not receive the rebate, Mr Mak said that with demand still buoyant from the immigrant population, the "increase in rentals could offset the increase in AV". As of March this year, HDB has approved 22,754 applications by owners to rent out their units.
The Government will have other help measures for the "down-and-out", added Member of Parliament Ho Geok Choo, a Government Parliamentary Committee member for national development.
A higher AV may also have implications for inflation, although economists were mixed about the expectations of the impact
"It will be benign because underlying inflation is low," said DBS economist Irvin Seah.
While others expect headline inflation to go up, unlike in Jan 2008 - when the government last raised the AV of public flats - it will not hit the heights of 6.6 per cent then.
"The housing component is a large contributor to the CPI basket and inflation might reach 2 to 4 per cent by the first quarter," said CIMB-GK economist Song Seng Wun, who added, though, that higher food, utility and COE prices could present greater upside pressure.
To cushion the rise, Govt to give a one-off rebate of 50%
by Esther Ng 05:55 AM Nov 19, 2009
SINGAPORE - Expect to pay higher property taxes next year, but the rise will come with some cushioning. The Inland Revenue Authority of Singapore (Iras) has announced that it is raising the Annual Value (AV) of Housing Development Board (HDB) flats.
The move comes on the back of rising resale prices and rents.
The tax authority noted that while rents for HDB flats have stabilised after a moderate decline between the end of last year and the middle of this year, rentals have begun to rise since.
"As a result, current values of HDB rentals, as well as HDB resale prices, are still significantly higher than levels observed in 2007. The AVs of HDB flats will therefore have to be adjusted," said Iras.
The last time there was a revision in the AV for HDB flats was in January last year.
Even though HDB rental increased by up to 37 per cent last year relative to 2007, Iras deferred adjusting the AV for the start of this year because of the "uncertainty in market rental trends" in a recession.
To help HDB flat owners cope with the increase in January, the Government will give a one-off property tax rebate of 50 per cent of the tax payable, capped at $120. This applies to all those who live in the flats they own.
To help those in smaller flats, Iras will offset the total tax amount for households which have to pay property tax of $50 or less. This would mean that two-roomers will not need to pay property tax.
"It will help soften the blow," said real estate consultant Nicholas Mak.
He added that owner-occupiers of HDB flats will not be affected that much as "property tax on HDB is lower than (that of) private property".
On average, the increase will in property tax will be $72 for three-room flats, $97 for four-room flats, $107 for five-room flats and $103 for those in executive flats.
For those renting out their HDB flats and who will not receive the rebate, Mr Mak said that with demand still buoyant from the immigrant population, the "increase in rentals could offset the increase in AV". As of March this year, HDB has approved 22,754 applications by owners to rent out their units.
The Government will have other help measures for the "down-and-out", added Member of Parliament Ho Geok Choo, a Government Parliamentary Committee member for national development.
A higher AV may also have implications for inflation, although economists were mixed about the expectations of the impact
"It will be benign because underlying inflation is low," said DBS economist Irvin Seah.
While others expect headline inflation to go up, unlike in Jan 2008 - when the government last raised the AV of public flats - it will not hit the heights of 6.6 per cent then.
"The housing component is a large contributor to the CPI basket and inflation might reach 2 to 4 per cent by the first quarter," said CIMB-GK economist Song Seng Wun, who added, though, that higher food, utility and COE prices could present greater upside pressure.
TODAY Online : As loans from moneylenders hit $188m, greater safeguards are needed
As loans from moneylenders hit $188m, greater safeguards are needed
by Leong Wee Keat 05:55 AM Nov 19, 2009
SINGAPORE - Earlier this month, Mr Henry Lim chanced upon classified advertisements promising "easy approval" and "low interest rates". He then approached a licensed moneylender for a $10,000 loan to pay his credit card bills.
The moneylender responded hours later with a "$500 loan" - a cash loan of $400 but Mr Lim would have to pay back $500 over five weeks. The interest of the loan worked out to be 25 per cent. "I rejected it. It was worse than borrowing from loan-sharks," said Mr Lim, 50.
While he has yet to lodge a complaint, others have done so.
The Registry of Moneylenders, the Government watchdog, has received 10 complaints against licensed moneylenders so far this year, on par with 2007 and up from the seven complaints last year.
Meanwhile, the total value of the loans are rising sharply: Last year, the industry granted $188.5 million in loans, almost double the $98 million in 2007.
The Registry declined to reveal the nature of the complaints, citing confidential information provided by the complainants. But it said that warnings have been issued against moneylenders who contravened the Moneylenders Act or Rules.
"Errant moneylenders were required to rectify the breaches," assistant registrar Ms Wong Lai Yin told MediaCorp, adding that "in some cases, the licences ... have not been renewed".
Since longstanding restrictions on the industry - including curbs on interest rates and advertising - were lifted in March, there had been a growth in licensed moneylenders - from 169 at the end of 2007 to 197 as of the end of last month, Moneylender's Association of Singapore president David Poh pointed out. As a result, he was not surprised by illegal tactics by "bad hats" within the industry.
"I'm concerned that licenses are given out too easily. We don't know whether if it is a real moneylender or an illegal syndicate posing as one," said Mr Poh, who noted the exorbitant interest rates charged by some licensed moneylenders, which could be as high as 5 per cent per month.
Membership to the association - which has 60 members - is voluntary. While it can rebuke errant members, it cannot take non-members to task.
Licensed, but ...
Since the easing of the Moneylenders Act, some disputes involving licensed moneylenders and borrowers have surfaced in the courts. For instance, in July, Unlimited Finance filed a suit against a couple who had allegedly defaulted on a $40,000 loan.
But the couple countered that the principal loan amount was only $30,000 as Unlimited Finance purportedly took a $10,000 interest payment when the uncrossed cheque was encashed. A hearing has been set for January.
Scarred by his experience, Mr Lim suggested that the authorities conduct "phantom checks" on licensed moneylenders to ensure compliance with the advertisements they put out.
On its part, the Registry of Moneylenders told MediaCorp that it would investigate complaints regarding false or materially misleading advertisement issued or published by a moneylender.
Under the Moneylenders Act, it is an offence if a moneylender does not inform his borrower of the terms and conditions of a loan before granting the loan.
Storeman Eric Lim, who was at a licensed moneylender to borrow $15,000 for home renovation, suggested that such firms provide information in other languages for those who do not have a good grasp of English.
"I only have primary school education and relied on the staff to explain the terms," said the 49-year-old in Mandarin.
But Ms Wong reiterated that moneylenders must convey the information to the borrower in a language or dialect the borrower understands if he did not understand English.
She added that the registry will explore introducing translations of the "notes to borrowers", which are posted on the website of the Insolvency and Public Trustee's Office and the moneylenders' premises.
To raise public awareness, the Moneylender's Association is also planning to conduct seminars and revamp its website with more advice for borrowers.
But the onus remains on those seeking loans to understand what they are getting themselves into.
"If the terms are unfavourable, they have the right to reject the loan and approach another moneylender who offers better terms," said Ms Wong.
by Leong Wee Keat 05:55 AM Nov 19, 2009
SINGAPORE - Earlier this month, Mr Henry Lim chanced upon classified advertisements promising "easy approval" and "low interest rates". He then approached a licensed moneylender for a $10,000 loan to pay his credit card bills.
The moneylender responded hours later with a "$500 loan" - a cash loan of $400 but Mr Lim would have to pay back $500 over five weeks. The interest of the loan worked out to be 25 per cent. "I rejected it. It was worse than borrowing from loan-sharks," said Mr Lim, 50.
While he has yet to lodge a complaint, others have done so.
The Registry of Moneylenders, the Government watchdog, has received 10 complaints against licensed moneylenders so far this year, on par with 2007 and up from the seven complaints last year.
Meanwhile, the total value of the loans are rising sharply: Last year, the industry granted $188.5 million in loans, almost double the $98 million in 2007.
The Registry declined to reveal the nature of the complaints, citing confidential information provided by the complainants. But it said that warnings have been issued against moneylenders who contravened the Moneylenders Act or Rules.
"Errant moneylenders were required to rectify the breaches," assistant registrar Ms Wong Lai Yin told MediaCorp, adding that "in some cases, the licences ... have not been renewed".
Since longstanding restrictions on the industry - including curbs on interest rates and advertising - were lifted in March, there had been a growth in licensed moneylenders - from 169 at the end of 2007 to 197 as of the end of last month, Moneylender's Association of Singapore president David Poh pointed out. As a result, he was not surprised by illegal tactics by "bad hats" within the industry.
"I'm concerned that licenses are given out too easily. We don't know whether if it is a real moneylender or an illegal syndicate posing as one," said Mr Poh, who noted the exorbitant interest rates charged by some licensed moneylenders, which could be as high as 5 per cent per month.
Membership to the association - which has 60 members - is voluntary. While it can rebuke errant members, it cannot take non-members to task.
Licensed, but ...
Since the easing of the Moneylenders Act, some disputes involving licensed moneylenders and borrowers have surfaced in the courts. For instance, in July, Unlimited Finance filed a suit against a couple who had allegedly defaulted on a $40,000 loan.
But the couple countered that the principal loan amount was only $30,000 as Unlimited Finance purportedly took a $10,000 interest payment when the uncrossed cheque was encashed. A hearing has been set for January.
Scarred by his experience, Mr Lim suggested that the authorities conduct "phantom checks" on licensed moneylenders to ensure compliance with the advertisements they put out.
On its part, the Registry of Moneylenders told MediaCorp that it would investigate complaints regarding false or materially misleading advertisement issued or published by a moneylender.
Under the Moneylenders Act, it is an offence if a moneylender does not inform his borrower of the terms and conditions of a loan before granting the loan.
Storeman Eric Lim, who was at a licensed moneylender to borrow $15,000 for home renovation, suggested that such firms provide information in other languages for those who do not have a good grasp of English.
"I only have primary school education and relied on the staff to explain the terms," said the 49-year-old in Mandarin.
But Ms Wong reiterated that moneylenders must convey the information to the borrower in a language or dialect the borrower understands if he did not understand English.
She added that the registry will explore introducing translations of the "notes to borrowers", which are posted on the website of the Insolvency and Public Trustee's Office and the moneylenders' premises.
To raise public awareness, the Moneylender's Association is also planning to conduct seminars and revamp its website with more advice for borrowers.
But the onus remains on those seeking loans to understand what they are getting themselves into.
"If the terms are unfavourable, they have the right to reject the loan and approach another moneylender who offers better terms," said Ms Wong.
Today : Admission prices unveiled
05:55 AM Nov 19, 2009
SINGAPORE - She has been to Disneyland in Hong Kong as well as theme parks in Orlando and Hollywood, and when ticket prices at Singapore's Universal Studios theme park were announced yesterday, Ms Janice Tan could not complain.
"The prices are quite competitive and the rides and attractions sound unique," said the 29-year-old air stewardess.
Resorts World at Sentosa will charge adults a one-time weekday fee of $66 to enjoy the park's 24 attractions and rides. Children under the age of 13 pay $48 while senior citizens pay $32.
On weekends, public holidays and peak periods, a day-pass will cost adults $6 more; and $4 more for children and seniors.
Those who want to skip the queues can pay above and beyond these admission charges to get an express pass - which costs $30 on weekdays; $48 on weekdays during school holidays; and $68 on weekends. A limited number of express passes will be sold each day.
The rates are similar to Hong Kong's Disneyland and about 25 per cent cheaper than Tokyo's Universal Studios theme park.
Some, however, feel that Singaporeans should enjoy lower rates.
Bank analyst Bernard Tay, 26, said: "I'll go and take a look because it's a first in Singapore, but RWS should encourage repeat visits by locals by charging Singaporeans less."
The $6.59 billion integrated resort also unveiled its starting rates for three of the four hotels slated for the first phase of its opening in the next quarter.
Rack rates for the deluxe rooms at Festive Hotel, Hard Rock Hotel and Hotel Michael go for $400, $450, and $500 respectively. A fourth, the all-suite boutique Crockfords Hotel (the former Maxims Tower), will only accept by-invitation guests.
Tour agencies usually charge tourists between 20 and 30 per cent lower than rack rates.
CTC Holidays senior vice-president (marketing and public relations) Alicia Seah told MediaCorp it had received "a lot" of booking enquiries from corporations and groups for RWS since last month.
"There's excitement and we're optimistic it will be an additional attractive offering for visitors coming to Singapore," she said.
Asked if the extra 1,200 hotel rooms opening at the IR would draw guests away from hotels in the city, an industry player, who declined to be named, said: "It's a different target market and, in any case, having more hotel rooms in Singapore is always a good thing."
SINGAPORE - She has been to Disneyland in Hong Kong as well as theme parks in Orlando and Hollywood, and when ticket prices at Singapore's Universal Studios theme park were announced yesterday, Ms Janice Tan could not complain.
"The prices are quite competitive and the rides and attractions sound unique," said the 29-year-old air stewardess.
Resorts World at Sentosa will charge adults a one-time weekday fee of $66 to enjoy the park's 24 attractions and rides. Children under the age of 13 pay $48 while senior citizens pay $32.
On weekends, public holidays and peak periods, a day-pass will cost adults $6 more; and $4 more for children and seniors.
Those who want to skip the queues can pay above and beyond these admission charges to get an express pass - which costs $30 on weekdays; $48 on weekdays during school holidays; and $68 on weekends. A limited number of express passes will be sold each day.
The rates are similar to Hong Kong's Disneyland and about 25 per cent cheaper than Tokyo's Universal Studios theme park.
Some, however, feel that Singaporeans should enjoy lower rates.
Bank analyst Bernard Tay, 26, said: "I'll go and take a look because it's a first in Singapore, but RWS should encourage repeat visits by locals by charging Singaporeans less."
The $6.59 billion integrated resort also unveiled its starting rates for three of the four hotels slated for the first phase of its opening in the next quarter.
Rack rates for the deluxe rooms at Festive Hotel, Hard Rock Hotel and Hotel Michael go for $400, $450, and $500 respectively. A fourth, the all-suite boutique Crockfords Hotel (the former Maxims Tower), will only accept by-invitation guests.
Tour agencies usually charge tourists between 20 and 30 per cent lower than rack rates.
CTC Holidays senior vice-president (marketing and public relations) Alicia Seah told MediaCorp it had received "a lot" of booking enquiries from corporations and groups for RWS since last month.
"There's excitement and we're optimistic it will be an additional attractive offering for visitors coming to Singapore," she said.
Asked if the extra 1,200 hotel rooms opening at the IR would draw guests away from hotels in the city, an industry player, who declined to be named, said: "It's a different target market and, in any case, having more hotel rooms in Singapore is always a good thing."
Today : Now a higher fine
05:55 AM Nov 19, 2009
SINGAPORE - A man who had scoffed at a fine imposed on him by a district court avoided a possible jail term at an appeal hearing yesterday after a judge took into account his health problems and age. The fine was, however, quadrupled.
Lee Kok Leong, the former management committee chairman of the Laguna Park condominium, was hauled to court in January after he was caught pouring glue on the padlocks of two neighbours amid a row between residents in Laguna Park over whether the estate should go en bloc.
Following a hearing in April, Lee, the general manager of a logistics firm, allegedly told reporters that he was not remorseful despite pleading guilty to mischief.
He allegedly said that he could afford the $1,200 fine since he spent $4,000 a night at a karaoke lounge.
Prosecutors, incensed by the remarks, appealed against the fine.
In court yesterday, Deputy Public Prosecutor Lee Jwee Nguan - short of specifically asking Justice Chao Hick Tin to send Lee to prison - asked the court to impose a sentence of "sufficient deterrence to send a message that mocking the court in such a fashion and perpetuating such fraud on the judiciary will not be tolerated".
But Lee's lawyer, Mr Ramesh Tiwary, questioned the necessity of a jail term.
"Everything said and done, does he really deserve to go to prison because he told some reporters 'I can afford it'?" said Mr Tiwary. "On hindsight, he should have just kept quiet."
Mr Tiwary said Lee suffers from depression and a sleeping disorder which requires him to have a machine at bedside to keep his airway open when he sleeps.
Agreeing with the prosecutor that Lee had mocked the court, Justice Chao told Lee: "The statement you gave to the journalists after the sentence at the court below was wholly deplorable because you scoffed at the court."
However, Justice Chao noted Lee's medical condition and the fact that he is a grandfather.
"We are supposed to act more responsibly," said the judge, who ordered Lee to pay a $4,800 fine. "I hope you are truly sorry this time and not leaving this court and muttering something else after I pass the sentence."
A solemn looking Lee told the court he was "truly sorry".
After the hearing, Mr Tiwary stopped Lee from speaking to the media. This time, Lee kept silent.
SINGAPORE - A man who had scoffed at a fine imposed on him by a district court avoided a possible jail term at an appeal hearing yesterday after a judge took into account his health problems and age. The fine was, however, quadrupled.
Lee Kok Leong, the former management committee chairman of the Laguna Park condominium, was hauled to court in January after he was caught pouring glue on the padlocks of two neighbours amid a row between residents in Laguna Park over whether the estate should go en bloc.
Following a hearing in April, Lee, the general manager of a logistics firm, allegedly told reporters that he was not remorseful despite pleading guilty to mischief.
He allegedly said that he could afford the $1,200 fine since he spent $4,000 a night at a karaoke lounge.
Prosecutors, incensed by the remarks, appealed against the fine.
In court yesterday, Deputy Public Prosecutor Lee Jwee Nguan - short of specifically asking Justice Chao Hick Tin to send Lee to prison - asked the court to impose a sentence of "sufficient deterrence to send a message that mocking the court in such a fashion and perpetuating such fraud on the judiciary will not be tolerated".
But Lee's lawyer, Mr Ramesh Tiwary, questioned the necessity of a jail term.
"Everything said and done, does he really deserve to go to prison because he told some reporters 'I can afford it'?" said Mr Tiwary. "On hindsight, he should have just kept quiet."
Mr Tiwary said Lee suffers from depression and a sleeping disorder which requires him to have a machine at bedside to keep his airway open when he sleeps.
Agreeing with the prosecutor that Lee had mocked the court, Justice Chao told Lee: "The statement you gave to the journalists after the sentence at the court below was wholly deplorable because you scoffed at the court."
However, Justice Chao noted Lee's medical condition and the fact that he is a grandfather.
"We are supposed to act more responsibly," said the judge, who ordered Lee to pay a $4,800 fine. "I hope you are truly sorry this time and not leaving this court and muttering something else after I pass the sentence."
A solemn looking Lee told the court he was "truly sorry".
After the hearing, Mr Tiwary stopped Lee from speaking to the media. This time, Lee kept silent.
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