ST Forum : Couple viewed flat and then came hubby's sister - seeking agent's commission

Dec 9, 2009
Couple viewed flat and then came hubby's sister - seeking agent's commission

RECENTLY, I advertised to sell an apartment unit and a few days later, a woman called and came over to view the unit.

She showed interest and brought her husband for a second viewing. The couple indicated they liked the place and requested another viewing with their family. At the third viewing, the whole family came and the husband's sister handed me a business card, which showed she was a housing agent from DTZ.

Two days later, the sister called to say she was offering $900,000 ($400,000 below the asking price) on behalf of her brother, and wanted a commission for herself. Or her brother would buy another nearby condominium unit.

Can a housing agent ask for commission after the buyers had already viewed a property twice without the agent being present? Is there a need to pay commission to the buyer's family member who happens to be a housing agent?

Is such a practice ethical?

Koh Siew Buay (Ms)

Mega property projects in KL back on trackShare

Mega property projects in KL back on trackShare
08 Dec 2009 - PropertyGuru.com.sg

Construction players and developers are all in favour of mega property projects in the pipeline for Kuala Lumpur, especially the proposed development of a 100-storey skyscraper project, near the Matrade Centre.

Ng Kee Leen, president of Master Builders Association of Malaysia (MBAM), said the mega development project would boost the Malaysian economy as well as provide more jobs to industry players.

The mega development project will occupy a 28-hectare site owned by Permodalan Nasional Bhd (PNB) and is expected to be completed within three to five years, if approved.

“It’s definitely the right time to revive the construction industry in a big way as (prices of) raw materials for the construction industry have stabilised and more importantly, consumer confidence, both local and foreign, is rising,” said Mr. Ng yesterday.

Kuala Lumpur City Hall had already approved several 50-storey property development projects, which are expected to start soon.

City Hall and PNB officials did not confirm if the 100-storey skyscraper project has already been approved.

Mr. Ng said despite the current property overhang, signs of a revival in the construction industry were visible.

“There is now more hiring of draftsmen and architects and if most of the mega projects are approved, it would certainly help further boost the Malaysian economy.”

“We don’t see this (building more mega property projects) as having a negative impact on the construction industry or the economy,” said Ng, referring to the impact of the property project.

“It would show to the world Malaysia’s seriousness in following through with its plans,” he said, citing the continued property developments in Singapore and Hong Kong despite the current property overhang.

Jack Chua, a property consultant and real estate agent, said the development of new mega projects would provide a positive impact to the economy.

“We believe if the policies of the Malaysian government remain consistent and attractive, there should still be good buying interest from locals and foreigners, even if more mega projects come on-stream,” he said.

Property investment sales recover after slow startShare

Property investment sales recover after slow startShare
2009 - PropertyGuru.com.sg

Investment sales of Singapore property recovered with a $9.4 billion year-to-date tally, after a slow start in the first quarter. CB Richard Ellis (CBRE) projects that the full-year figure will reach more than $10 billion after all transacted caveats in November and December have been lodged. However, the figure would only be around half of $17.9 billion in 2008.

Hitting investment sales deals of about $15 to $20 billion, property consultants anticipate 2010 to be a better year. Such transactions are the basis for the medium to long-term view of developers and investors to the property market.

Investment sales are defined by CBRE as transactions with a value of no less than $5 million, including landed residential property and apartments, private and government sales of buildings and land, both en bloc and strata. It likewise includes change of ownership of property through share sales.

“With 2010 expected to be a recovery year for the Singapore economy, investment sales could be in the region of $15 billion, similar to that of 2005. Economic fundamentals should start to catch up with the positive sentiments in the stock market and the residential market, with more stability in the financial and business sectors,” said Jeremy Lake, executive director for investment properties at CB Richard Ellis.

Chris Fossick, managing director of Jones Lang LaSalle (South East Asia and Singapore) said, “Investors are starting to focus on the recovery, and whilst still cautious about the short term, they are optimistic about the mid and long-term outlook of the Singapore real estate market.”

Most market watchers are expecting that the residential segment will lead the way for next year’s investment sales deals, with the Government scheduled to resume the sale of residential sites through its confirmed list from January. The collective sales market is also expected to be more active next year, after just one major deal this year (the $100.8m sale of Dragon Mansion).

According to Mr. Lake, investors' interest for retail malls in suburban areas continues to be strong.

“So the appetite for office space, which has been somewhat weak in the past 12 months or so, will pick up again. However, deal flow may be limited as many of the sellers who were keener to sell have probably already sold,” he said.

Shaun Poh, senior director for investment advisory services at DTZ, says there are reserved funds for office properties in 2010 but deal sizes will be limited to $200 to $300 million for each building. “Office investors are also more stringent, demanding initial property yields of at least 4-5 per cent, compared with 2-3 per cent during the 2007 boom. And they'll only look at buildings that are substantially leased, given supply overhang issues,” he added.

“The office market would likely see more investment activity next year as the rental slide eases or rents even begin to recover. And with credit loosening further, major institutions like real estate investment trusts could be priming themselves for further acquisitions, having addressed refinancing concerns,” said Karamjit Singh, Credo Real Estate managing director.

Cool response to smaller HDB flats: It's not just a matter of preference

Cool response to smaller HDB flats: It's not just a matter of preference

Wed, Dec 09, 2009
The Straits Times


I REFER to the report, 'Cool response to smaller HDB flats' (Nov 27), which stated that there were much fewer applications for HDB two- and three-room flats, relative to larger flats.

The reasoning that this was due to more Singaporeans being able to afford larger flats may be flawed.

It may be due to the HDB's income ceiling policy, which does not allow applicants with a household monthly income of more than $2,000 and $3,000 to buy two- and three-room flats respectively.


What this means is that those who earn more than $3,000 have to buy four-room or bigger units. So it is not just a matter of preference.

With rising new HDB flat prices over the years, many lower-income households may not be able to afford a two- or three-room flat. This may be why there were fewer applications for smaller flats than for larger ones.

The argument that HDB flats are affordable, because most flat owners do not use more than 30 per cent of their income to service their mortgage, may be fundamentally flawed as only those who can afford it will buy flats. Those who cannot may already have given up their flats.

The fact that median and lower incomes have been lagging further behind, relative to HDB prices as a multiple of income, may be the best indicator of affordability.

The statistic that 30,770 HDB loans were in arrears over three months as of September, may be the best indicator of affordability as a 7 per cent arrears rate for total HDB loan mortgages is a very high figure - meaning about one in 14 cannot pay.

What this figure and the low '1,350 HDB flats repossessed' statistic may reflect, is that most in default would have sold in the open market at valuation plus cash-over-valuation to avoid HDB compulsory acquisition at only 90 per cent of valuation.

Those who are forced to sell would disappear from the 'in arrears' and not be reflected in the foreclosure statistics.

Finally, why are there no statistics on HDB bank loans in arrears and foreclosures?

Leong Sze Hian

S'pore property high in Asia-Pac poll

S'pore property high in Asia-Pac poll

FOR real-estate investment next year, Singapore is among the top five markets in the Asia-Pacific, says an Urban Land Institute (ULI) and PricewaterhouseCoopers (PwC) report.

According to the Emerging Trends in Real Estate Asia Pacific 2010 survey, residential properties look set to give the most promising returns, thanks to Singapore's transparent market.

Shanghai is the top investment choice, with retail, industrial and rental apartments offering the most lucrative returns.


Hong Kong is the secondmost- favoured city, with retail being the most buoyant sector.

Beijing came in third, up from last year's 12th spot. The capital city's residential and manufacturing sectors garnered positive reviews.

Seoul was fourth and Singapore came in fifth.

Mr Choo Eng Beng, PwC assurance real-estpate leader for Singapore, said: "The findings show that, despite issues with oversupply, we are still recognised as a property-investment hub."

However, he urged investors to tread cautiously as "there are concerns about the city's development prospects across most asset classes".

While real estate remains in the pink of health - the Global Property Guide reported that housing prices here jumped an all-time record 14.3 per cent in the third quarter - some say that demand in the next few quarters is likely to cool.

Mr Donald Han, managing director of real-estate brokers Cushman & Wakefield, said: "Q3 prices have gone up too fast in too short a time. The steep V-shaped recovery cannot be sustained. The market needs a breather."

Mass-market prices are also already hovering at their peak.

That is why PropNex chief executive Mohamed Ismail expects housing demand and price increases to continue "in a subdued manner" of 2 to 3 per cent in the next two quarters.

But top-tier properties priced above $2,200 psf are expected to do well, with prices climbing 25 per cent, said Mr Han.

Still, ULI chief executive Patrick Phillips said that the real-estate rebound will remain fragile.

"It is important to keep the outlook for growth in perspective.

"Spending by Western consumers is no longer acting as the primary engine of global economic growth, so a new driver is needed to boost the world's economy and, in turn, the global realestate industry," he added.

The annual report is the fourth Asia-Pacific edition, which polled more than 270 international real-estate investors, developers, company representatives, lenders, brokers and consultants across the world.

The bullish outlook is repeated across other Asia-Pacific countries.

Shanghai also came in tops as the place with the most development opportunities with survey respondents.

Mumbai and Ho Chi Minh City are second and third, respectively.

Shanghai's strong showing is a result of China's resilient economy, which led to higher transaction volumes and property prices towards the year-end, said the report.

The country has abundant liquidity and well-capitalised banks that suffered less investment losses than their European counterparts. It also enjoys confident business sentiment.