Singapore recession is over
Nov 20, 2009 - PropertyGuru.com.sg
Singapore declared yesterday that its recession was over, as its economy grew for the second straight quarter in the three months to September.
Official data showed that Singapore’s gross domestic product (GDP) increased 14.2 percent in the third quarter for its quarter-on-quarter annualized basis, following a 21.7 percent growth in the previous quarter.
“Effectively, the recession in Singapore is over,” said Ministry of Trade and Industry’s (MTI) Second Permanent Secretary, Ravi Menon, during a media briefing.
"Economies around the world are now turning the corner," he said. "Singapore has benefited from these global and regional trends."
The country’s year-on-year GDP increased 0.6 percent in the third quarter, as compared to the 3.3 percent contraction in the second quarter, said MTI in its Q3 economic survey.
In its forecast for 2010, MTI predicted a 3.0 to 5.0 percent economic growth, while maintaining the existing 2.0 to 2.5 percent projection of a contraction this year.
The trade-reliant economy of the country was the first in Asia to decline due to the recession last year, as the global downturn hit demands for its exports, especially from the US.
Friday, November 20, 2009
Inflation rate to increase in 2010
Inflation rate to increase in 2010
Nov 20, 2009 - PropertyGuru.com.sg
The inflation rate is expected to increase next year as the Housing Development Board (HDB) increased its property values.
Singapore revised its consumer price index (CPI) inflation forecast from 1 to 2 percent to 2.5 and 3.5 percent.
This is in connection with the recent revision of the Inland Revenue Authority (IRA)’s annual values for HDB properties, which factor into the Consumer Price Index (CPI) as imputed rents under the component of the accommodation cost.
Singapore’s Monetary Authority considered the revision as technical. The inflation forecast, excluding the cost of accommodation and private vehicles, remained at 1 to 2 percent.
“This core inflation should remain non-threatening in the absence of domestic price pressures, even as one-off factors push up headline inflation,” says Alvin Liew, an economist from Standard Chartered.
But some economists predict other risks may affect next year’s inflation rate.
Leong Wai Ho of Barclays Capital believes “the forecast adjustment may not have fully factored in the prospect of higher food prices,” due to the unfavourable economic conditions across Asia.
And although the government’s revision is technical, “the potential impact on inflation expectations cannot be completely ignored,” says economist Kit Wei Zheng of Citi.
Nov 20, 2009 - PropertyGuru.com.sg
The inflation rate is expected to increase next year as the Housing Development Board (HDB) increased its property values.
Singapore revised its consumer price index (CPI) inflation forecast from 1 to 2 percent to 2.5 and 3.5 percent.
This is in connection with the recent revision of the Inland Revenue Authority (IRA)’s annual values for HDB properties, which factor into the Consumer Price Index (CPI) as imputed rents under the component of the accommodation cost.
Singapore’s Monetary Authority considered the revision as technical. The inflation forecast, excluding the cost of accommodation and private vehicles, remained at 1 to 2 percent.
“This core inflation should remain non-threatening in the absence of domestic price pressures, even as one-off factors push up headline inflation,” says Alvin Liew, an economist from Standard Chartered.
But some economists predict other risks may affect next year’s inflation rate.
Leong Wai Ho of Barclays Capital believes “the forecast adjustment may not have fully factored in the prospect of higher food prices,” due to the unfavourable economic conditions across Asia.
And although the government’s revision is technical, “the potential impact on inflation expectations cannot be completely ignored,” says economist Kit Wei Zheng of Citi.
TODAY ONLINE : 4 individuals, 7 projects win
4 individuals, 7 projects win
by Evelyn Choo evelynchoo@mediacorp.com.sg 05:55 AM Nov 20, 2009
SINGAPORE - Four outstanding designers and seven projects have won this year's President's Design Awards.
President S R Nathan gave out the annual awards - aimed at encouraging the local design industry to raise the bar in areas such as architecture and product design - at the Istana last night.
The four winners of the Designer of the Year award are Mr Koichiro Ikebuchi, director of Atelier Ikebuchi; Mr Chris Lee, founder and creative director of Asylum Creative; Mr Look Boon Gee, managing director of Look Architects; Mr Tham Khai Meng, worldwide creative director of Ogilvy and Mather.
The seven project and product designs, which received the Design of the Year awards for their national significance and creative value, are the Genexis Theatre at Fusionopolis by Arup and Woha; Paper Fold by Exit Design, Republic Polytechnic by DP Architects and Maki and Associates; The Met in Bangkok by Woha; Urband Origami by Nanyang Optical; the X-halo Breath Thermometer by Philips Design; and the Henderson Waves by RSP Architects Planners and Engineers and IJP Corporation.
The Henderson Waves bridge, which weaves seamlessly in and out of a canopy, brings park users closer to nature. Its eye-catching curves, spanning some 300m, connect Mount Faber and Telok Blangah Hill Park.
The design team behind this urban sculpture said it was inspired by a mathematical formula.
Dr Liu Thai-Ker, director of RSP Architects Planners and Engineers, said: "The mathematical formula is something very scientific, very technological. Nature is very organic, very primordial. The happy combination of these two things to this bridge, in my mind, tickles the minds of people.
"In the last decade, you can see the flair of a more varied, diverse environment - day and night, city and countryside - is now starting to emerge, including the creation of this bridge."
Also making waves in the local and international design circles is 39-year-old Chris Lee. The founder of homegrown creative company Asylum has made his mark with novel takes on a myriad of projects, from interior design, branding to managing a music record label.
"The majority of design work is not really exciting. I think it's where we find our niche client that's important. When I first started Asylum, I just thought there would be opportunities out there that do not fit into the typical design mould. So all our projects are very different, but I think it's great that way," said Mr Lee.
The DesignSingapore Council said this year's winners reflect an increased vibrancy in the design sector.
by Evelyn Choo evelynchoo@mediacorp.com.sg 05:55 AM Nov 20, 2009
SINGAPORE - Four outstanding designers and seven projects have won this year's President's Design Awards.
President S R Nathan gave out the annual awards - aimed at encouraging the local design industry to raise the bar in areas such as architecture and product design - at the Istana last night.
The four winners of the Designer of the Year award are Mr Koichiro Ikebuchi, director of Atelier Ikebuchi; Mr Chris Lee, founder and creative director of Asylum Creative; Mr Look Boon Gee, managing director of Look Architects; Mr Tham Khai Meng, worldwide creative director of Ogilvy and Mather.
The seven project and product designs, which received the Design of the Year awards for their national significance and creative value, are the Genexis Theatre at Fusionopolis by Arup and Woha; Paper Fold by Exit Design, Republic Polytechnic by DP Architects and Maki and Associates; The Met in Bangkok by Woha; Urband Origami by Nanyang Optical; the X-halo Breath Thermometer by Philips Design; and the Henderson Waves by RSP Architects Planners and Engineers and IJP Corporation.
The Henderson Waves bridge, which weaves seamlessly in and out of a canopy, brings park users closer to nature. Its eye-catching curves, spanning some 300m, connect Mount Faber and Telok Blangah Hill Park.
The design team behind this urban sculpture said it was inspired by a mathematical formula.
Dr Liu Thai-Ker, director of RSP Architects Planners and Engineers, said: "The mathematical formula is something very scientific, very technological. Nature is very organic, very primordial. The happy combination of these two things to this bridge, in my mind, tickles the minds of people.
"In the last decade, you can see the flair of a more varied, diverse environment - day and night, city and countryside - is now starting to emerge, including the creation of this bridge."
Also making waves in the local and international design circles is 39-year-old Chris Lee. The founder of homegrown creative company Asylum has made his mark with novel takes on a myriad of projects, from interior design, branding to managing a music record label.
"The majority of design work is not really exciting. I think it's where we find our niche client that's important. When I first started Asylum, I just thought there would be opportunities out there that do not fit into the typical design mould. So all our projects are very different, but I think it's great that way," said Mr Lee.
The DesignSingapore Council said this year's winners reflect an increased vibrancy in the design sector.
TODAY ONLINE : New scheme to deter errant agents
New scheme to deter errant agents
by Lin Yan Qin 05:55 AM Nov 20, 2009
SINGAPORE - Some overpromise on the school's facilities; others tell potential students they can work while they pursue their studies here - all in a bid to profit from a foreign student's move to study in Singapore.
And it is these practices which are the target of new criteria under the voluntary EduTrust scheme - the quality certification under the recently introduced Private Education Act. This puts the onus on private education institutions (PEIs) to ensure the student agents they engage to recruit foreign students for their schools, are not resorting to underhanded means to get business.
While the PEIs MediaCorp spoke to all declared themselves ready to meet the new requirements, some wonder if tougher measures are needed to arrest the problem of errant agents.
"You can have schools collaborating with agents just to make money," said a private language school instructor, who did not want to be named.
"If we don't make agents more accountable, they can still get away with making a quick buck, moving from one school to the next."
Under the new criteria - necessary for schools which want to recruit foreign students - PEIs have to meet certain requirements for evaluating and training agents before they can start recruiting.
These include signing contracts with the agents and ensuring they do not misrepresent the PEI or provide misleading information to students.
In addition, PEIs are required to collate feedback from students on the services provided by the agents as part of their monitoring process.
"Students who are over-reliant and have not done their due diligence may be misled by errant agents," said Mr Alan Phua, managing director for domestic operations at Informatics Education. He added that although some of the schools were already meeting some of the conditions, making them compulsory would force all schools to fall into line and improve the situation.
A serious case last year involved Columbia Business School, where some foreign students brought in by agents were told that they could work eight hours for $700 a month while attending three hours of classes each day. Less radical claims usually involve exaggerating the size of the school and its facilities.
"We have had agents (who) overpromise, telling foreign students (they) can work and study here, which is not true," said Technology, Management and Communications (TMC) Educational Group student recruiting and marketing director Lemmy Teo.
Agents can make about 10 to 20 per cent of the first-year course fees from PEIs for every student recruited - and the commission is higher from less well-known PEIs which rely more heavily on them to bring in the students.
"For agents that are in it for the money, they don't care about the quality of the school at all. They just recommend schools paying the highest commission," said student agent Yeo Eng Chiang.
For better assurance of quality, students are encouraged to consider PEIs with EduTrust certification, said the Education Ministry.
Also, prospective students seeking the services of recruitment agents are advised to check on the authenticity of the agents and to ascertain that they accurately represent the PEIs and courses they wish to enrol in. One resource they can refer to is the list of Singapore Education Specialists maintained by the Singapore Tourism Board.
Licensing could take regulatory efforts even further, schools felt.
"Licensing agents will make it easier for us as schools to keep track of what they do and tap on agents with the best track records," said TMC Educational Group's Dr Teo.
Mr Daniel Chu, president of the Association of Consultants for International Students (Singapore), agreed, saying that the present situation had too many loopholes for agents to get away with unscrupulous behaviour, even with the EduTrust new requirements.
"It's like why they decided to regulate property agents ... there's no stopping an errant agent from continuing to work as an agent somewhere else even if you sack him," said Mr Chu, whose company recruits foreign students.
The Education Ministry, he added, had not consulted the association when it drew up the Private Education Act. "I think we should have been part of the process, given that we play a crucial role in the industry," he said.
When asked, the Ministry said it had held two public consultation exercises before the Act was enacted. As to whether licensing was an option, it would only say that suggestions will be considered.
Though he was in favour of licensing, Dr Teo felt that getting schools to be accountable for their agents' actions was a good start to regulating the industry.
"Any school that wants to bring in foreign students will need to comply, and that will have a big impact on schools making sure they don't work with rogue agents, so there will definitely be some improvement," he said.
by Lin Yan Qin 05:55 AM Nov 20, 2009
SINGAPORE - Some overpromise on the school's facilities; others tell potential students they can work while they pursue their studies here - all in a bid to profit from a foreign student's move to study in Singapore.
And it is these practices which are the target of new criteria under the voluntary EduTrust scheme - the quality certification under the recently introduced Private Education Act. This puts the onus on private education institutions (PEIs) to ensure the student agents they engage to recruit foreign students for their schools, are not resorting to underhanded means to get business.
While the PEIs MediaCorp spoke to all declared themselves ready to meet the new requirements, some wonder if tougher measures are needed to arrest the problem of errant agents.
"You can have schools collaborating with agents just to make money," said a private language school instructor, who did not want to be named.
"If we don't make agents more accountable, they can still get away with making a quick buck, moving from one school to the next."
Under the new criteria - necessary for schools which want to recruit foreign students - PEIs have to meet certain requirements for evaluating and training agents before they can start recruiting.
These include signing contracts with the agents and ensuring they do not misrepresent the PEI or provide misleading information to students.
In addition, PEIs are required to collate feedback from students on the services provided by the agents as part of their monitoring process.
"Students who are over-reliant and have not done their due diligence may be misled by errant agents," said Mr Alan Phua, managing director for domestic operations at Informatics Education. He added that although some of the schools were already meeting some of the conditions, making them compulsory would force all schools to fall into line and improve the situation.
A serious case last year involved Columbia Business School, where some foreign students brought in by agents were told that they could work eight hours for $700 a month while attending three hours of classes each day. Less radical claims usually involve exaggerating the size of the school and its facilities.
"We have had agents (who) overpromise, telling foreign students (they) can work and study here, which is not true," said Technology, Management and Communications (TMC) Educational Group student recruiting and marketing director Lemmy Teo.
Agents can make about 10 to 20 per cent of the first-year course fees from PEIs for every student recruited - and the commission is higher from less well-known PEIs which rely more heavily on them to bring in the students.
"For agents that are in it for the money, they don't care about the quality of the school at all. They just recommend schools paying the highest commission," said student agent Yeo Eng Chiang.
For better assurance of quality, students are encouraged to consider PEIs with EduTrust certification, said the Education Ministry.
Also, prospective students seeking the services of recruitment agents are advised to check on the authenticity of the agents and to ascertain that they accurately represent the PEIs and courses they wish to enrol in. One resource they can refer to is the list of Singapore Education Specialists maintained by the Singapore Tourism Board.
Licensing could take regulatory efforts even further, schools felt.
"Licensing agents will make it easier for us as schools to keep track of what they do and tap on agents with the best track records," said TMC Educational Group's Dr Teo.
Mr Daniel Chu, president of the Association of Consultants for International Students (Singapore), agreed, saying that the present situation had too many loopholes for agents to get away with unscrupulous behaviour, even with the EduTrust new requirements.
"It's like why they decided to regulate property agents ... there's no stopping an errant agent from continuing to work as an agent somewhere else even if you sack him," said Mr Chu, whose company recruits foreign students.
The Education Ministry, he added, had not consulted the association when it drew up the Private Education Act. "I think we should have been part of the process, given that we play a crucial role in the industry," he said.
When asked, the Ministry said it had held two public consultation exercises before the Act was enacted. As to whether licensing was an option, it would only say that suggestions will be considered.
Though he was in favour of licensing, Dr Teo felt that getting schools to be accountable for their agents' actions was a good start to regulating the industry.
"Any school that wants to bring in foreign students will need to comply, and that will have a big impact on schools making sure they don't work with rogue agents, so there will definitely be some improvement," he said.
TODAY ONLINE : No deal for Laguna Park as marketing agent throws in the towel
No deal for Laguna Park as marketing agent throws in the towel
05:55 AM Nov 19, 2009
by Tan Hui Leng
SINGAPORE - The closely watched collective sale of Marine Parade condominium Laguna Park has been called off.
The en-bloc tender which started off at a hefty price tag of $1.2 billion and was later revised downwards to $967 million has seen no takers yet.
The marketing agent Credo Real Estate said that even if an offer comes in now it would be too late to crank up the entire process again in time for the Dec 19 deadline, when the collective sale agreement expires.
As a result, Credo has sent out letters to Laguna Park owners on Monday to inform them the collective sales process has ended.
"The sales committee has decided to call it a day," said marketing agent Credo's deputy managing director Tan Hong Boon.
Mr Tan noted that even if an offer is made now or if the sales committee obtains 80 per cent of votes in favour of the new price tag, there would not be enough time to carry out all the processes required before putting in a Strata Titles Board application.
Built in 1977, the seafront development raised eyebrows in September with its jaw-dropping $1.2-billion reserve price tag. The former HUDC project with 528 units sits on a massive plot of 677,493 square feet.
But analysts and observers have deemed it to be too expensive, second only to another former HUDC estate, Farrer Court, which was sold for $1.3388 billion in June 2007.
However, the first tender failed despite a bid for $1.73 billion from an Indonesian-owned locally-incorporated company, as a down payment could not be made in time.
Owners were then asked to consider selling their homes at $967 million - about 19 per cent lower than the initial asking price. The new price tag meant that the home owners stood to gain about $1.8 million for a typical unit instead of the previous range of $2.1 million to $2.3 million.
Mr Tan noted that developers' have become increasingly cautious amid the recent market cooling measures introduced by the Government. TAN HUI LENG
Copyright 2009 MediaCorp Pte Ltd | All Rights Reserved
05:55 AM Nov 19, 2009
by Tan Hui Leng
SINGAPORE - The closely watched collective sale of Marine Parade condominium Laguna Park has been called off.
The en-bloc tender which started off at a hefty price tag of $1.2 billion and was later revised downwards to $967 million has seen no takers yet.
The marketing agent Credo Real Estate said that even if an offer comes in now it would be too late to crank up the entire process again in time for the Dec 19 deadline, when the collective sale agreement expires.
As a result, Credo has sent out letters to Laguna Park owners on Monday to inform them the collective sales process has ended.
"The sales committee has decided to call it a day," said marketing agent Credo's deputy managing director Tan Hong Boon.
Mr Tan noted that even if an offer is made now or if the sales committee obtains 80 per cent of votes in favour of the new price tag, there would not be enough time to carry out all the processes required before putting in a Strata Titles Board application.
Built in 1977, the seafront development raised eyebrows in September with its jaw-dropping $1.2-billion reserve price tag. The former HUDC project with 528 units sits on a massive plot of 677,493 square feet.
But analysts and observers have deemed it to be too expensive, second only to another former HUDC estate, Farrer Court, which was sold for $1.3388 billion in June 2007.
However, the first tender failed despite a bid for $1.73 billion from an Indonesian-owned locally-incorporated company, as a down payment could not be made in time.
Owners were then asked to consider selling their homes at $967 million - about 19 per cent lower than the initial asking price. The new price tag meant that the home owners stood to gain about $1.8 million for a typical unit instead of the previous range of $2.1 million to $2.3 million.
Mr Tan noted that developers' have become increasingly cautious amid the recent market cooling measures introduced by the Government. TAN HUI LENG
Copyright 2009 MediaCorp Pte Ltd | All Rights Reserved
ST : End the delay and start building
Nov 20, 2009
SPORTS HUB
End the delay and start building
PUSHING back the completion date of the Sports Hub repeatedly from 2010 to 2011, 2012 and now 2013 ('Sports Hub still has financing concerns', Nov 14) is disappointing.
It is unfair to the two unsuccessful bidders as the reason appears to be the Singapore Sports Hub consortium's failure to secure a bank loan to finance the project.
One main criterion in a tender is for a bidder to have firm financial muscle to complete a project.
Did the Singapore Sports Hub consortium make an unrealistic bid for the mega project, which now seems to point to a situation in which it cannot attract bank backing?
If so, the Government should step in and guarantee the loan or build the Sports Hub on its own.
A mega public project that is repeatedly delayed creates an adverse impression on foreign investors and undermines the confidence in the bidding system.
The Government can certainly afford to build the hub without having to resort to the public-private partnership formula.
If the Government can afford to spend $4.5 billion on the Jobs Credit scheme to subsidise employers' wage bills and $600 million to build the Esplanade, which attracted an audience of only 1.7 million last year, there is no reason not to spend less than $1.9 billion to construct the new Sports Hub, which will attract a larger audience and more tourists.
If the Government could afford spending $15 million to host the recent Asian Youth Games, $150 million on the Singapore F1 Grand Prix and $108 million more to host the Youth Olympic Games next year, it does not make sense to repeatedly stymie the start towards building a vital landmark like the Sports Hub.
Construction costs may rise further next year if the global economy picks up, and what then? More delays?
If it is the Government's mission to promote a sports culture, the construction of a new Sports Hub is a necessity, not a luxury.
The project was announced in 2005. How long more must Singaporeans wait for its completion?
I urge the Government to be less exacting in bean-counting the dollars and cents of the project and realise the sense in making Singaporeans justifiably happy and proud by building the hub.
SPORTS HUB
End the delay and start building
PUSHING back the completion date of the Sports Hub repeatedly from 2010 to 2011, 2012 and now 2013 ('Sports Hub still has financing concerns', Nov 14) is disappointing.
It is unfair to the two unsuccessful bidders as the reason appears to be the Singapore Sports Hub consortium's failure to secure a bank loan to finance the project.
One main criterion in a tender is for a bidder to have firm financial muscle to complete a project.
Did the Singapore Sports Hub consortium make an unrealistic bid for the mega project, which now seems to point to a situation in which it cannot attract bank backing?
If so, the Government should step in and guarantee the loan or build the Sports Hub on its own.
A mega public project that is repeatedly delayed creates an adverse impression on foreign investors and undermines the confidence in the bidding system.
The Government can certainly afford to build the hub without having to resort to the public-private partnership formula.
If the Government can afford to spend $4.5 billion on the Jobs Credit scheme to subsidise employers' wage bills and $600 million to build the Esplanade, which attracted an audience of only 1.7 million last year, there is no reason not to spend less than $1.9 billion to construct the new Sports Hub, which will attract a larger audience and more tourists.
If the Government could afford spending $15 million to host the recent Asian Youth Games, $150 million on the Singapore F1 Grand Prix and $108 million more to host the Youth Olympic Games next year, it does not make sense to repeatedly stymie the start towards building a vital landmark like the Sports Hub.
Construction costs may rise further next year if the global economy picks up, and what then? More delays?
If it is the Government's mission to promote a sports culture, the construction of a new Sports Hub is a necessity, not a luxury.
The project was announced in 2005. How long more must Singaporeans wait for its completion?
I urge the Government to be less exacting in bean-counting the dollars and cents of the project and realise the sense in making Singaporeans justifiably happy and proud by building the hub.
Today : Possible office space shortage
Possible office space shortage
05:55 AM Nov 20, 2009
by Bloomberg
SINGAPORE - Despite the current glut in office space, Singapore may face a shortage in 2014 due to the lack of new supply.
Speaking at a real estate conference in Hong Kong yesterday, Mr Choy Chan Pong, the senior group director of land sales and administration at Singapore's Urban Redevelopment Authority, noted there will a short-term imbalance between demand and supply.
"We have seen 5 million sq ft of demand in 2001 and 3 million sq ft of demand annually in recent years," he said. "So, whatever supply we see now can be quickly absorbed."
However, there is concern that there is no new supply expected in 2014.
"In the last year or so, there have been no new projects," added Mr Choy. "We have developers telling us to better start releasing land for office space."
Copyright 2009 MediaCorp Pte Ltd | All Rights Reserved
05:55 AM Nov 20, 2009
by Bloomberg
SINGAPORE - Despite the current glut in office space, Singapore may face a shortage in 2014 due to the lack of new supply.
Speaking at a real estate conference in Hong Kong yesterday, Mr Choy Chan Pong, the senior group director of land sales and administration at Singapore's Urban Redevelopment Authority, noted there will a short-term imbalance between demand and supply.
"We have seen 5 million sq ft of demand in 2001 and 3 million sq ft of demand annually in recent years," he said. "So, whatever supply we see now can be quickly absorbed."
However, there is concern that there is no new supply expected in 2014.
"In the last year or so, there have been no new projects," added Mr Choy. "We have developers telling us to better start releasing land for office space."
Copyright 2009 MediaCorp Pte Ltd | All Rights Reserved
BT Letters : URA should review its reserve list policy
Business Times - 20 Nov 2009
LETTER TO THE EDITOR
URA should review its reserve list policy
I AGREE with the commentary by Kalpana Rashiwala, 'Don't give up confirmed list card again' (BT, Nov 12).
Our Prime Minister and Minister for National Development have repeatedly stressed the importance of ensuring that residential property prices do not get out of sync with economic growth and that operating costs for business remain stable. The volatility in prices and rentals of residential and commercial properties in the last few years is an indication that the land sales programme needs to be tweaked.
I have written to URA a few times about the need to review the policy of putting sites in the reserve list as I strongly felt that the policy is seriously flawed. URA maintained that the reserve list policy is market-driven.
The property market is dominated by a few big players with large land banks. The motivation of the major developers is to maximise profit and value of their land bank and not to maintain price stability.
Does it make sense to increase supply and thus lower the value of their land bank by making a bid for the sites in the reserve list?
The way the property game is played is intriguing. Developers play with their cards close to their chests. URA not only plays with its cards on the table but also shows its next card. I have decided to bet on the winner and buy property stocks!
In my opinion, URA should scrap its policy of putting sites in the reserve list. URA, with its vast resources and with the help of other government agencies like EDB, should be able to estimate demand and supply of residential and commercial properties.
Based on projected supply and demand, URA should then put up sufficient sites for tender. If demand is weak and the tender price is below the threshold, URA can choose not to award the tender to the highest bidder.
URA should consider the impact of its policy on those who buy properties for their own use, particularly Singaporeans. Sharp hikes in prices result in massive transfer of wealth from buyers to banks and developers. It has also serious social ramifications - on population growth, savings for retirement, and leads to discontentment.
Singapore needs to attract companies, particularly MNCs, to locate their regional HQ in Singapore. Companies need a stable operating environment. Sharp hikes in rentals of offices and apartments will deter companies from setting up or expanding their operations in Singapore. They can also kill small companies operating on thin margins.
Of course, in theory, companies can move to cheaper locations. In reality, it is not so simple.
Philip Ng Lin Ai
Director
OCSC Global
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
LETTER TO THE EDITOR
URA should review its reserve list policy
I AGREE with the commentary by Kalpana Rashiwala, 'Don't give up confirmed list card again' (BT, Nov 12).
Our Prime Minister and Minister for National Development have repeatedly stressed the importance of ensuring that residential property prices do not get out of sync with economic growth and that operating costs for business remain stable. The volatility in prices and rentals of residential and commercial properties in the last few years is an indication that the land sales programme needs to be tweaked.
I have written to URA a few times about the need to review the policy of putting sites in the reserve list as I strongly felt that the policy is seriously flawed. URA maintained that the reserve list policy is market-driven.
The property market is dominated by a few big players with large land banks. The motivation of the major developers is to maximise profit and value of their land bank and not to maintain price stability.
Does it make sense to increase supply and thus lower the value of their land bank by making a bid for the sites in the reserve list?
The way the property game is played is intriguing. Developers play with their cards close to their chests. URA not only plays with its cards on the table but also shows its next card. I have decided to bet on the winner and buy property stocks!
In my opinion, URA should scrap its policy of putting sites in the reserve list. URA, with its vast resources and with the help of other government agencies like EDB, should be able to estimate demand and supply of residential and commercial properties.
Based on projected supply and demand, URA should then put up sufficient sites for tender. If demand is weak and the tender price is below the threshold, URA can choose not to award the tender to the highest bidder.
URA should consider the impact of its policy on those who buy properties for their own use, particularly Singaporeans. Sharp hikes in prices result in massive transfer of wealth from buyers to banks and developers. It has also serious social ramifications - on population growth, savings for retirement, and leads to discontentment.
Singapore needs to attract companies, particularly MNCs, to locate their regional HQ in Singapore. Companies need a stable operating environment. Sharp hikes in rentals of offices and apartments will deter companies from setting up or expanding their operations in Singapore. They can also kill small companies operating on thin margins.
Of course, in theory, companies can move to cheaper locations. In reality, it is not so simple.
Philip Ng Lin Ai
Director
OCSC Global
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
ST : Demand v supply: A chicken-and-egg situation
Nov 20, 2009
Demand v supply: A chicken-and-egg situation
A LACK of public transport services can hamper development.
Dr Lim Wee Kiak, who is an MP from Sembawang GRC, cites the example of his ward.
'There is no direct bus service from Sembawang town to the eastern sector,' he said. 'And when residents request a service that goes to Changi Airport or the Changi area, the reply from the public transport operators is that they have done a survey and found that there is not enough demand for such a route.'
He likens it to a chicken-and-egg situation.
'It's because there are no buses going that direction, therefore residents are less likely to apply for a job there, or to apply for a school there for their children, or to go there for medical, recreational or whatever reason.'
Dr Lim, who is also head of the Transport Government Parliamentary Committee, believes transportation is a great facilitator for development.
'But if you argue that because there is not enough commuter demand, then seriously, which comes first?'
His views are echoed by other MPs, including Mr Charles Chong (Pasir Ris-Punggol GRC) and Mr Seah Kian Peng (Marine Parade GRC).
Mr Chong was a vocal advocate for the North-East Line's Buangkok station to be opened earlier, while Mr Seah was among those who pushed for Stage 3 of the Circle Line to start running - even though the other four stages are not completed.
They point to examples of how new MRT lines have accelerated the growth of new towns.
On that front, is Singapore's rail expansion plan - as ambitious as it is - enough? Can we build even more sooner?
Dr Lim said: 'To build faster will simply mean that we will suck up a lot of the construction industry's resources. We want to maintain a stable construction or civil engineering industry.
'We don't want to load them with a lot of projects, and then suddenly, no project after that. The current pace is reasonable.
'If there are certain projects that can be faster, I welcome it, but not at the expense of a boom-and-bust situation for the construction industry.'
He added that too much construction activity at one go will also contribute to road diversions and traffic snares.
'It has to be staged carefully,' he said.
Demand v supply: A chicken-and-egg situation
A LACK of public transport services can hamper development.
Dr Lim Wee Kiak, who is an MP from Sembawang GRC, cites the example of his ward.
'There is no direct bus service from Sembawang town to the eastern sector,' he said. 'And when residents request a service that goes to Changi Airport or the Changi area, the reply from the public transport operators is that they have done a survey and found that there is not enough demand for such a route.'
He likens it to a chicken-and-egg situation.
'It's because there are no buses going that direction, therefore residents are less likely to apply for a job there, or to apply for a school there for their children, or to go there for medical, recreational or whatever reason.'
Dr Lim, who is also head of the Transport Government Parliamentary Committee, believes transportation is a great facilitator for development.
'But if you argue that because there is not enough commuter demand, then seriously, which comes first?'
His views are echoed by other MPs, including Mr Charles Chong (Pasir Ris-Punggol GRC) and Mr Seah Kian Peng (Marine Parade GRC).
Mr Chong was a vocal advocate for the North-East Line's Buangkok station to be opened earlier, while Mr Seah was among those who pushed for Stage 3 of the Circle Line to start running - even though the other four stages are not completed.
They point to examples of how new MRT lines have accelerated the growth of new towns.
On that front, is Singapore's rail expansion plan - as ambitious as it is - enough? Can we build even more sooner?
Dr Lim said: 'To build faster will simply mean that we will suck up a lot of the construction industry's resources. We want to maintain a stable construction or civil engineering industry.
'We don't want to load them with a lot of projects, and then suddenly, no project after that. The current pace is reasonable.
'If there are certain projects that can be faster, I welcome it, but not at the expense of a boom-and-bust situation for the construction industry.'
He added that too much construction activity at one go will also contribute to road diversions and traffic snares.
'It has to be staged carefully,' he said.
BT : Slide in prime office rents levelling off
Business Times - 20 Nov 2009
Slide in prime office rents levelling off
In 1st 6 weeks of Q4, monthly office rents in Shenton fell 0.8%
By EMILYN YAP
FALLS in commercial rents in the Shenton, City Hall and Orchard areas are levelling off, going by mid-fourth quarter figures from Cushman & Wakefield.
The property consultancy found that in the first six weeks of Q4, monthly prime office rents in the Shenton market fell just 0.8 per cent to $5.99 per sq ft (psf) from $6.04 psf in Q3. This decline is much smaller than with the 10 per cent plunge between Q2 and Q3.
Rents held up relatively well even though the Shenton market had a double-digit vacancy rate as new space from buildings such as Mapletree Anson and 71 Robinson came onstream.
There is 'landlord reluctance to lower rents amid signs of improving office space absorption', Cushman & Wakefield said.
According to the Urban Redevelopment Authority last month, take-up of office space turned positive in Q3 after staying negative for three consecutive quarters.
In the City Hall area, monthly prime office rents are also flattening - they dipped just 0.4 per cent to $6.77 psf from $6.80 psf in Q3. This was a big improvement from the 5.4 per cent drop between Q2 and Q3.
Over at Orchard, prime office rents remained relatively stable at $6.89 psf, down marginally from $6.90 psf in Q3. Rents in this market fell 6.3 per cent between Q2 and Q3.
Both the City Hall and Orchard markets have low single-digit office vacancy rates. Cushman & Wakefield research director Ang Choon Beng said lease renewal in these areas has been fairly stable. Also, there is a relative lack of new space, unlike in the Shenton and Raffles Place markets.
Office rents in Raffles Place have yet to flatten out like those in the Shenton, City Hall and Orchard areas. Monthly Raffles Place Grade A rents fell 3.5 per cent to $7.85 psf, from $8.13 psf in Q3. Monthly prime rents there also dropped 2.6 per cent to $7.60 psf, from $7.80 psf in Q3.
Nevertheless, commercial landlords in Raffles Place can take comfort from the fact that the rental declines are smaller than those between Q2 and Q3.
Mr Ang expects prime rents to 'remain soft' for the rest of this year and the first half of 2010. 'We think the influx of 2.2 million sq ft of new prime office space in 2010 needs to be well absorbed before we can see a bottoming of prime office rents,' he said.
In a separate report, Jones Lang LaSalle said: 'In markets with a large supply overhang, such as Singapore, there is likely to be continued upward pressure on incentives as owners seek to secure tenants.'
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Looking up: According to URA last month, take-up of office space turned positive in Q3 after staying negative for three consecutive quarters
Slide in prime office rents levelling off
In 1st 6 weeks of Q4, monthly office rents in Shenton fell 0.8%
By EMILYN YAP
FALLS in commercial rents in the Shenton, City Hall and Orchard areas are levelling off, going by mid-fourth quarter figures from Cushman & Wakefield.
The property consultancy found that in the first six weeks of Q4, monthly prime office rents in the Shenton market fell just 0.8 per cent to $5.99 per sq ft (psf) from $6.04 psf in Q3. This decline is much smaller than with the 10 per cent plunge between Q2 and Q3.
Rents held up relatively well even though the Shenton market had a double-digit vacancy rate as new space from buildings such as Mapletree Anson and 71 Robinson came onstream.
There is 'landlord reluctance to lower rents amid signs of improving office space absorption', Cushman & Wakefield said.
According to the Urban Redevelopment Authority last month, take-up of office space turned positive in Q3 after staying negative for three consecutive quarters.
In the City Hall area, monthly prime office rents are also flattening - they dipped just 0.4 per cent to $6.77 psf from $6.80 psf in Q3. This was a big improvement from the 5.4 per cent drop between Q2 and Q3.
Over at Orchard, prime office rents remained relatively stable at $6.89 psf, down marginally from $6.90 psf in Q3. Rents in this market fell 6.3 per cent between Q2 and Q3.
Both the City Hall and Orchard markets have low single-digit office vacancy rates. Cushman & Wakefield research director Ang Choon Beng said lease renewal in these areas has been fairly stable. Also, there is a relative lack of new space, unlike in the Shenton and Raffles Place markets.
Office rents in Raffles Place have yet to flatten out like those in the Shenton, City Hall and Orchard areas. Monthly Raffles Place Grade A rents fell 3.5 per cent to $7.85 psf, from $8.13 psf in Q3. Monthly prime rents there also dropped 2.6 per cent to $7.60 psf, from $7.80 psf in Q3.
Nevertheless, commercial landlords in Raffles Place can take comfort from the fact that the rental declines are smaller than those between Q2 and Q3.
Mr Ang expects prime rents to 'remain soft' for the rest of this year and the first half of 2010. 'We think the influx of 2.2 million sq ft of new prime office space in 2010 needs to be well absorbed before we can see a bottoming of prime office rents,' he said.
In a separate report, Jones Lang LaSalle said: 'In markets with a large supply overhang, such as Singapore, there is likely to be continued upward pressure on incentives as owners seek to secure tenants.'
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Looking up: According to URA last month, take-up of office space turned positive in Q3 after staying negative for three consecutive quarters
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