Singapore leasing activity shows signs of recovery
Dec 11, 2009 - PropertyGuru.com.sg
The Singapore office market has experienced some recovery since its dull start this year.
Although office rents are still expected to fall further in 2010, but at a much slower pace compared to the past 15 months, a recent unexpected rise of leasing activity has created speculation about office rents bottoming-out as early as mid-2010.
“We are currently witnessing a strong recovery in leasing activity. Some tenants are even starting to look at expansion,” says Moray Armstrong, executive director for office services at CB Richard Ellis.
Property consultants predict a return of positive demand in the Singapore office market to more than one million square feet in 2010, on the back of economic growth. However, with more than 2.7 million square feet of new space intended for completion next year, rents will continue to dip and vacancies will rise.
Older buildings with tenants transferring to new projects still face a challenging year ahead. Nevertheless, some anticipate the authorities to closely watch on the competitiveness of the Republic in office rents. Mr. Armstrong believes, “it is not unrealistic to foresee that the government may release a couple of prime office sites in the Marina Bay area in the second half next year.”
“A lot will hinge on how the office market performs in the next three months. The government wants to ensure the supply pipeline is healthy so that businesses feel confident about Singapore's ability to meet long-term demand for growth from headquarters and corporates.”
Chris Archibold, the head of markets and regional director of Jones Lang LaSalle, acknowledges “some talk in the market that office supply may become limited in 2013 and 2014 in the CBD Core.”
“The Singapore government is likely to continue monitoring the office market and inject supply into the market through the reserve list in anticipation of an upturn to avoid the supply crunch we saw in 2007,” he added.
The gross average monthly rental value of grade A office space has plummeted 7.95 percent quarter on quarter to $8.10 per sq ft in Q4 2009, as shown in the CBRE data. This is the lowest quarter-on-quarter dip since office rents started falling in the last quarter of 2008. The latest figure in the fourth quarter of 2009 reflects 46 percent decline for the whole of 2009 and 57 percent from the peak of $18.80 psf in the second and third quarter of 2008. CBRE estimates a further 13.6 percent contraction next year to hit $7 psf by end-2010.
The average grade A rental data of Colliers International for various CBD micromarkets shows a 1.9 percent quarter-on-quarter drop in Raffles Place/New Downtown and one percent in Bugis/ Beach Road in the fourth quarter of 2009, with rents unchanged in the Orchard Road, Shenton Way/Tanjong Pagar, City Hall/Marina Centre. For the whole of 2009, the declines ranged from 42 percent to 53 percent, but Colliers foretells rental declines to moderate 'within 5 percent' from January to June next year from current levels.
DTZ estimates a drop of 15 to 20 percent in the average monthly rental value for prime office space along the Raffles Place by 2010, which it says has dropped this year from $16 psf in Q4 2008 to $7.90 psf.
Mr. Armstrong expects rentals to stabilize by mid-2010 especially for better-quality buildings. According to Angela Tan, DTZ's SE Asia head of development and occupational markets, rents will likely bottom in 2011. “If the economy grows more strongly than expected, rents could bottom earlier in end-2010.”
The completion of recent projects creates a two-tier market. “Given the pick-up in leasing activity, we expect the bottom in rentals for new prime Grade A office buildings to be as close as H2 2010. However, there's likely to be longer downward pressure on rentals in existing prime Grade A office buildings as landlords seek to backfill vacancy caused by tenants relocating to new developments,” says Mr. Archibold of JLL.
On a brighter note, Mr. Armstrong of CBRE says he has already seen some of the resurgence in leasing activity fuelled by expansion and not just replacement needs. This will serve as the foundation for a more positive take-up.
Sunday, December 13, 2009
New head picked for property agent monitoring agency
New head picked for property agent monitoring agency
Dec 11, 2009 - PropertyGuru.com.sg
The Ministry of National Development (MND) picked Chionh Chye Khye, the current executive director (designate) with MND, to head a new government agency that will be set up next year to regulate Singapore’s property agents.
Mr. Chionh, before joining the MND in 2006, was the chief executive of the Building and Construction Authority. During his four-year tenure, he spearheaded the programme to raise productivity and quality of the construction industry, promote regulatory framework, and ensure infrastructure and building safety.
MND is expected to announce Mr. Chionh’s appointment as well as provide accurate details on the new agency by next year.
The Ministry said that the views it received from several stakeholders and channels are now being studied and consolidated, and will be used in improving the new regulatory framework. Key elements are also expected to be announced early next year.
'In the meantime, it would not be appropriate for us to comment on speculation,' it said.
In October, MND shared details of the new regulatory framework for the real estate industry, including the creation of a new agency that will enhance regulatory powers.
MND’s move comes after several property agents were criticised last year for being under-qualified and for their unethical practices. Minister for National Development Mah Bow Tan said in March that the whole system was 'not satisfactory' and the status quo was 'not tenable'.
With this move, activities of property agents will be closely monitored and rules will be enforced effectively.
Property agents must pass the industry examination and must be accredited first by a new accreditation body before they can work.
Currently, there are about 25,000 to 30,000 property agents in Singapore, with various degrees of training and professional standards.
Dec 11, 2009 - PropertyGuru.com.sg
The Ministry of National Development (MND) picked Chionh Chye Khye, the current executive director (designate) with MND, to head a new government agency that will be set up next year to regulate Singapore’s property agents.
Mr. Chionh, before joining the MND in 2006, was the chief executive of the Building and Construction Authority. During his four-year tenure, he spearheaded the programme to raise productivity and quality of the construction industry, promote regulatory framework, and ensure infrastructure and building safety.
MND is expected to announce Mr. Chionh’s appointment as well as provide accurate details on the new agency by next year.
The Ministry said that the views it received from several stakeholders and channels are now being studied and consolidated, and will be used in improving the new regulatory framework. Key elements are also expected to be announced early next year.
'In the meantime, it would not be appropriate for us to comment on speculation,' it said.
In October, MND shared details of the new regulatory framework for the real estate industry, including the creation of a new agency that will enhance regulatory powers.
MND’s move comes after several property agents were criticised last year for being under-qualified and for their unethical practices. Minister for National Development Mah Bow Tan said in March that the whole system was 'not satisfactory' and the status quo was 'not tenable'.
With this move, activities of property agents will be closely monitored and rules will be enforced effectively.
Property agents must pass the industry examination and must be accredited first by a new accreditation body before they can work.
Currently, there are about 25,000 to 30,000 property agents in Singapore, with various degrees of training and professional standards.
Global property prices recover, according to a survey
Global property prices recover, according to a survey
Dec 11, 2009 - PropertyGuru.com.sg
Property prices in Singapore recorded the highest rise globally in Q3 2009, according to the latest Global House Price Index from Knight Frank.
Although two-thirds of the countries covered in the survey showed an increase in property prices, year-on-year property prices in more than half of the countries covered are still down.
Israel’s property prices also posted the highest gain of up to 13.7 percent year-on-year.
Singapore property prices surged to 13.7 percent in the third quarter compared with the second quarter, while Dubai’s year-on-year property values dropped 47 percent.
“House prices are now rising in a clear majority of locations around the world with almost 70% of the locations reporting growth in the third quarter of 2009. This compares with under 50% during the second three months of the year,” said Knight Frank's head of residential research, Liam Bailey.
“There is still, however, a clear polarisation from the top to the bottom of the table. Israel remains the best performer on an annual basis and is the only country to have recorded double digit growth,” he added.
“Dubai has fallen the most despite posting a small recovery and the recent debt issues with Dubai World and the subsequent loss of confidence by investors means even this nascent rally is already under threat.”
Properties in Ireland, Denmark and Spain have yet to document their first quarter growth since the credit crisis due to the weak economic condition and an oversupply of housing.
Dec 11, 2009 - PropertyGuru.com.sg
Property prices in Singapore recorded the highest rise globally in Q3 2009, according to the latest Global House Price Index from Knight Frank.
Although two-thirds of the countries covered in the survey showed an increase in property prices, year-on-year property prices in more than half of the countries covered are still down.
Israel’s property prices also posted the highest gain of up to 13.7 percent year-on-year.
Singapore property prices surged to 13.7 percent in the third quarter compared with the second quarter, while Dubai’s year-on-year property values dropped 47 percent.
“House prices are now rising in a clear majority of locations around the world with almost 70% of the locations reporting growth in the third quarter of 2009. This compares with under 50% during the second three months of the year,” said Knight Frank's head of residential research, Liam Bailey.
“There is still, however, a clear polarisation from the top to the bottom of the table. Israel remains the best performer on an annual basis and is the only country to have recorded double digit growth,” he added.
“Dubai has fallen the most despite posting a small recovery and the recent debt issues with Dubai World and the subsequent loss of confidence by investors means even this nascent rally is already under threat.”
Properties in Ireland, Denmark and Spain have yet to document their first quarter growth since the credit crisis due to the weak economic condition and an oversupply of housing.
HLF eyeing the mega rich
HLF eyeing the mega rich
Dec 11, 2009 - PropertyGuru.com.sg
Buyers looking for a landed home in central Singapore can now grab a special package offered by Hong Leong Finance.
This is the latest marketing move by the company to attract home buyers in the competitive mortgage market.
Hong Leong is targeting those families living in a tiny niche, who can afford to buy good class bungalows costing more than $15 million.
The company is offering a special package that starts from 1.38 percent a year on a variable basis. The variable rate increases to 1.48 percent for the second year and 2.4 percent for the third year.
“With recent renewed interest in the good class bungalow market, it is only natural for Hong Leong Finance to expand its suite of services,” said Hong Leong Finance President, Ian Macdonald.
Such bungalows have a plot size of about 1,400 square metres, and are only located in 39 areas zoned for them.
There are only 2,400 bungalows around the country and it forms a highly exclusive market.
To attract buyers, Hong Leong is offering $1,000 worth of food and beverage vouchers at the Millennium and Copthorne Hotels for a minimum loan of $3 million.
Buyers who would take up more than $10 million loans can get $5,000 worth of vouchers. All customers will also get $500 worth of spa vouchers at the Haach Spa and a 20 percent discount at M Hotel in Singapore.
Dec 11, 2009 - PropertyGuru.com.sg
Buyers looking for a landed home in central Singapore can now grab a special package offered by Hong Leong Finance.
This is the latest marketing move by the company to attract home buyers in the competitive mortgage market.
Hong Leong is targeting those families living in a tiny niche, who can afford to buy good class bungalows costing more than $15 million.
The company is offering a special package that starts from 1.38 percent a year on a variable basis. The variable rate increases to 1.48 percent for the second year and 2.4 percent for the third year.
“With recent renewed interest in the good class bungalow market, it is only natural for Hong Leong Finance to expand its suite of services,” said Hong Leong Finance President, Ian Macdonald.
Such bungalows have a plot size of about 1,400 square metres, and are only located in 39 areas zoned for them.
There are only 2,400 bungalows around the country and it forms a highly exclusive market.
To attract buyers, Hong Leong is offering $1,000 worth of food and beverage vouchers at the Millennium and Copthorne Hotels for a minimum loan of $3 million.
Buyers who would take up more than $10 million loans can get $5,000 worth of vouchers. All customers will also get $500 worth of spa vouchers at the Haach Spa and a 20 percent discount at M Hotel in Singapore.
ST : Reits a good choice
Dec 12, 2009
Reits a good choice
By Joyce Teo, Property Correspondent
IF YOU want to invest in property but cannot bear the idea of borrowing hundreds of thousands of dollars to buy that fancy condominium unit or going through the hassle of being a landlord, real estate investment trusts (Reits) might be worth considering.
Reit prices have risen this year, but they are still worth a look as they offer investors a relatively liquid way to gain exposure to property, and in various sectors and markets too.
Potential investors, however, have to do their homework and tread cautiously.
Reits have survived the credit market squeeze triggered by the subprime crisis.
MacarthurCook Industrial Reit, for instance, recently managed to get shareholders to approve its recapitalisation plan to save itself. It has huge debts due by the end of the year and would have had to be liquidated had the plan been rejected.
Its plan includes a rights issue which diluted its share price.
Reits a good choice
By Joyce Teo, Property Correspondent
IF YOU want to invest in property but cannot bear the idea of borrowing hundreds of thousands of dollars to buy that fancy condominium unit or going through the hassle of being a landlord, real estate investment trusts (Reits) might be worth considering.
Reit prices have risen this year, but they are still worth a look as they offer investors a relatively liquid way to gain exposure to property, and in various sectors and markets too.
Potential investors, however, have to do their homework and tread cautiously.
Reits have survived the credit market squeeze triggered by the subprime crisis.
MacarthurCook Industrial Reit, for instance, recently managed to get shareholders to approve its recapitalisation plan to save itself. It has huge debts due by the end of the year and would have had to be liquidated had the plan been rejected.
Its plan includes a rights issue which diluted its share price.
ST : Private estate gets a bus
Dec 12, 2009
Private estate gets a bus
By Terrence Voon
Minister Lim Hwee Hua launches premium bus service 595 for residents at the Hillside Rosyth precinct. -- ST PHOTO: ASHLEIGH SIM
FOR years, getting to the nearest MRT station has been a hot, tiresome, 30-minute affair for Ms Amy Zhang.
The 36-year-old Chinese expatriate lives in Glasgow Road. To get to work, she has to walk to the main road first before taking a bus to Serangoon MRT station to catch a train to her workplace in Bugis.
From Sunday, her long treks will be a thing of the past.
The Hillside Rosyth Neighbourhood Committee (NC) has teamed up with the Land Transport Authority and a private bus operator to launch a premium bus service for the private residential area.
This will provide much-needed relief for non-drivers like Ms Zhang.
'I used to spend so much money on taxis when I did not feel like walking,' said the education consultant. 'But now I guess there's no need anymore.'
Private estate gets a bus
By Terrence Voon
Minister Lim Hwee Hua launches premium bus service 595 for residents at the Hillside Rosyth precinct. -- ST PHOTO: ASHLEIGH SIM
FOR years, getting to the nearest MRT station has been a hot, tiresome, 30-minute affair for Ms Amy Zhang.
The 36-year-old Chinese expatriate lives in Glasgow Road. To get to work, she has to walk to the main road first before taking a bus to Serangoon MRT station to catch a train to her workplace in Bugis.
From Sunday, her long treks will be a thing of the past.
The Hillside Rosyth Neighbourhood Committee (NC) has teamed up with the Land Transport Authority and a private bus operator to launch a premium bus service for the private residential area.
This will provide much-needed relief for non-drivers like Ms Zhang.
'I used to spend so much money on taxis when I did not feel like walking,' said the education consultant. 'But now I guess there's no need anymore.'
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