Market ignores CapitaLand, SIA losses
Dec 31, 2009 - PropertyGuru.com.sg
Even though ‘big hitters’ such as CapitaLand and Singapore Airlines posted quarterly losses and warned of difficult days in the future, the Strait Times Index (STI) romped to 2,636 points high for over ten months.
Yesterday, the second biggest airline in the world by market capitalisation posted a loss of $307 million for the quarterly period from April to June. The incurred loss was mainly due to the combination of the global economic decline, the fuel hedging losses and the outbreak of Influenza A.
It was the company’s second time to post a quarterly loss. From April to June 2003, it dropped into red to the amount of $312 million at the height of the Sars pandemic.
However, today, unlike the fiscal year 2003 and 2004, the company was threatened that the full year could be in the red. If that happens, this year would be its first loss-making year ever since it was first established in 1972.
On the other hand, the biggest property developer in South-east Asia, CapitaLand, also posted its first quarter loss as of 2003, noting write-downs on investments.
CapitaLand pictured a dark outlook for the full year once its net loss of $156.9 million for the period of April to June increases.
According to Chairman Richard Hu, “Although some stability has been restored in the financial markets, the outlook for 2009 remains uncertain”.
CapitaLand noted that excluding impairments and revaluations, the company earned a net profit of $124 million for the quarter.
Three big banks are going to report their quarterly results next week. They will surely be closely watched to determine the levels of free-based income trends and non-performing loans.
Others like the SembCorp will supply denotations of the latest trend in world infrastructure expenditures. As the market tries to hold its hopes on the recovery, major companies like CapitaLand and SIA seems to doubt the forward indicators.
In the case of SIA, though signs of small sequential improvements can be seen, premium seat sales remain under pressure. Premium seats also account for 40 percent of the income of the airline.
For this year, the International Air Transport Association (IATA) anticipates the market to post losses of about US$9 billion.
Carriers from the Asia-Pacific experienced a 14.5 percent yearly decline in passenger demand in June, twice the world passenger traffic decline of 7.2 percent.
For the property division, repressed demand has released a new craze of buying by upgraders. Due to this, the prices of new residential property have increased by 5 to 7 percent every month.
Most developers will surely enjoy the spoils of unloading inventory. However, like what CIMB said, strong household balance sheets and loosening of the credit market have aided to carry dealings.
According to the research house, the following leg of the growth in the demand has to come from key improvements in the economy. It can still be seen whether the increasing demand in 2010 to 2011 will be enough to get the supply balanced to strike the market.
However, the liquidity that flows in the Singapore market has promoted the STI by a walloping 81 percent as of March.
Tuesday, December 29, 2009
Overwhelming response for BTO flats in Dawson
Overwhelming response for BTO flats in Dawson
Dec 29, 2009 - PropertyGuru.com.sg
Homebuyers who applied for BTO flats at Dawson in Queenstown are experiencing stiff competition.
Application for the flats ended yesterday, and about 1,718 premium flats were six-times oversubscribed.
Units at Skyterrace@Dawson and SkyVille@Dawson are public flats, with premium designs and finishes. These projects are comprised of studio-type units, as well as three- to five-room flats.
A total of 9,865 individuals applied for its 1,718 units.
The five-room flats, which cost around $500,000, proved to be the most popular. About 200 flats were offered but over 2,000 applicants were competing for them.
The four-room flats also saw high demand. 1,100 such flats were offered, but more than 6,000 applications were received.
One analyst said that the demand for the newest project was fuelled by "sandwich class" individuals, who were willing to pay more for public housing.
Nicholas Mak, a real estate lecturer at Ngee Ann Polytechnic said, "They may wish to buy private properties but because of the escalating prices of entry-level private properties, these people may be looking to buy more premium types of HDB flats."
Paired units, which were being offered for the first time, also proved to get good response. Over 300 applications have been received for the 70 units being offered.
Applicants will know the result, as well as their queue number by February next year.
For those unsuccessful applicants, HDB said that they can still look forward to more Build-To-Oder (BTO) projects in 2010. In fact, HDB is prepared to launch one BTO project every month, if demand for these flats continues to increase.
Dec 29, 2009 - PropertyGuru.com.sg
Homebuyers who applied for BTO flats at Dawson in Queenstown are experiencing stiff competition.
Application for the flats ended yesterday, and about 1,718 premium flats were six-times oversubscribed.
Units at Skyterrace@Dawson and SkyVille@Dawson are public flats, with premium designs and finishes. These projects are comprised of studio-type units, as well as three- to five-room flats.
A total of 9,865 individuals applied for its 1,718 units.
The five-room flats, which cost around $500,000, proved to be the most popular. About 200 flats were offered but over 2,000 applicants were competing for them.
The four-room flats also saw high demand. 1,100 such flats were offered, but more than 6,000 applications were received.
One analyst said that the demand for the newest project was fuelled by "sandwich class" individuals, who were willing to pay more for public housing.
Nicholas Mak, a real estate lecturer at Ngee Ann Polytechnic said, "They may wish to buy private properties but because of the escalating prices of entry-level private properties, these people may be looking to buy more premium types of HDB flats."
Paired units, which were being offered for the first time, also proved to get good response. Over 300 applications have been received for the 70 units being offered.
Applicants will know the result, as well as their queue number by February next year.
For those unsuccessful applicants, HDB said that they can still look forward to more Build-To-Oder (BTO) projects in 2010. In fact, HDB is prepared to launch one BTO project every month, if demand for these flats continues to increase.
Residential site in Sengkang to be launched for public tender
Residential site in Sengkang to be launched for public tender
Dec 29, 2009 - PropertyGuru.com.sg
The Housing Development Board (HDB) has received an application from a property developer to launch a residential site located at Sengkang West Avenue for public tender.
The parcel of land is under HDB's Reserve List System.
Under the Reserve List System, a site will only be put up for public tender if the government receives an application from a developer at or above the minimum price that is acceptable to them.
In this case, the Sengkang site is being offered at a minimum price of $70 million.
HDB will launch the site for tender in two weeks' time.
A 99-year leasehold condominium development is being planned for the 183,000-sq-ft site.
Dec 29, 2009 - PropertyGuru.com.sg
The Housing Development Board (HDB) has received an application from a property developer to launch a residential site located at Sengkang West Avenue for public tender.
The parcel of land is under HDB's Reserve List System.
Under the Reserve List System, a site will only be put up for public tender if the government receives an application from a developer at or above the minimum price that is acceptable to them.
In this case, the Sengkang site is being offered at a minimum price of $70 million.
HDB will launch the site for tender in two weeks' time.
A 99-year leasehold condominium development is being planned for the 183,000-sq-ft site.
Keppel Land pays $180 million for site in China
Keppel Land pays $180 million for site in China
Dec 29, 2009 - PropertyGuru.com.sg
Keppel Land has purchased a site located in northeast China through its wholly-owned subsidiary, Da Di Investment, for $180 million.
A residential township is being planned on the 30-hectare parcel of land, which is in Shenyang. It will comprise some commercial developments and around 6,000 homes. This project will target the upper-middle class.
The progressive launch of the initial phase of 1,200 high-quality apartments will start from the second half of 2011.
The waterfront project is the second township being developed by Keppel Land in Shenyang. It will increase the pipeline of the developer to over 30,000 homes throughout China.
Dec 29, 2009 - PropertyGuru.com.sg
Keppel Land has purchased a site located in northeast China through its wholly-owned subsidiary, Da Di Investment, for $180 million.
A residential township is being planned on the 30-hectare parcel of land, which is in Shenyang. It will comprise some commercial developments and around 6,000 homes. This project will target the upper-middle class.
The progressive launch of the initial phase of 1,200 high-quality apartments will start from the second half of 2011.
The waterfront project is the second township being developed by Keppel Land in Shenyang. It will increase the pipeline of the developer to over 30,000 homes throughout China.
Housing prices in the UK drop 1.9%
Housing prices in the UK drop 1.9%
Dec 29, 2009 - PropertyGuru.com.sg
Year-on-year housing prices in England and Wales dropped 1.9 percent in December, the smallest annual decline since May this year, according to property data company Hometrack.
But the monthly result of housing price increases suffered a slowdown of 0.1 percent in December, compared to 0.2 percent in November. Hometrack predicts that prices will drop one percent further in 2010.
Mortgage lenders Halifax and Nationwide also report that prices have already increased by 2 percent in the year to November.
“Unexpectedly buoyant demand and a chronic lack of housing for sale were the key drivers of the housing market in 2009,” said Hometrack’s director of research, Richard Donnell. “While a scarcity of housing for sale is set to remain an important feature of the market in 2010, it is the prospects for demand that will dictate the outlook for prices in the next 12 months.”
Several real estate agents surveyed by Hometrack reported that registration from interested homebuyers this year has increased 41 percent, while supply of property rose by only 7 percent.
Hometrack said this pattern will likely continue into 2010, with home sales equivalent to the average household moving once every 25 years, leading to a volatile price.
However, a possible increase in the unemployment rate and the growing concern about tax increases, as well as spending cuts after the June elections were likely to limit the demand.
“Against the backdrop of low sales volumes, equity-rich households could continue to put upward pressure on prices in localised markets in 2010. Yet a sustainable and broad-based recovery in the housing market needs a broader base of buyers,” Mr. Donnell said.
Dec 29, 2009 - PropertyGuru.com.sg
Year-on-year housing prices in England and Wales dropped 1.9 percent in December, the smallest annual decline since May this year, according to property data company Hometrack.
But the monthly result of housing price increases suffered a slowdown of 0.1 percent in December, compared to 0.2 percent in November. Hometrack predicts that prices will drop one percent further in 2010.
Mortgage lenders Halifax and Nationwide also report that prices have already increased by 2 percent in the year to November.
“Unexpectedly buoyant demand and a chronic lack of housing for sale were the key drivers of the housing market in 2009,” said Hometrack’s director of research, Richard Donnell. “While a scarcity of housing for sale is set to remain an important feature of the market in 2010, it is the prospects for demand that will dictate the outlook for prices in the next 12 months.”
Several real estate agents surveyed by Hometrack reported that registration from interested homebuyers this year has increased 41 percent, while supply of property rose by only 7 percent.
Hometrack said this pattern will likely continue into 2010, with home sales equivalent to the average household moving once every 25 years, leading to a volatile price.
However, a possible increase in the unemployment rate and the growing concern about tax increases, as well as spending cuts after the June elections were likely to limit the demand.
“Against the backdrop of low sales volumes, equity-rich households could continue to put upward pressure on prices in localised markets in 2010. Yet a sustainable and broad-based recovery in the housing market needs a broader base of buyers,” Mr. Donnell said.
DTZ Research sees more property deals worth above $100 million
DTZ Research sees more property deals worth above $100 million
Dec 29, 2009 - PropertyGuru.com.sg
DTZ Research, a global property adviser, said that the last quarter of the financial year saw a rising trend of larger property deals in the Singapore market.
The value of property deals transacted in the last quarter were larger compared to the trend of small deals over the past three quarters of the year.
There were eight transactions, each worth more than $100 million, which made up 77 percent of the $2.5 billion total value transacted in Q4 2009. This is substantially larger than the 48 percent in Q3 and none in Q1 and Q2.
Investments made in Q3 and Q4 composed the 83 percent of the $5.9 billion total investment value in 2009.
The residential sector was the leading performer in 2009, accounting for 50 percent of the overall transaction value. The sector also tallied 56 percent or $1.4 billion of the total investment sales in Q4, with deals like the en bloc sale of Dragon Mansion.
The retail sector was the second top performing sector, contributing 16 percent to the full year transaction value. The sale of Clementi Mall in November for $541.9 million is one of the big deals in this segment.
Looking forward, DTZ Research expects 2010 to be a more active year due to the improving market sentiment.
With more activity coming from the government land sales programme, the residential sector will continuously dominate the property market next year.
Dec 29, 2009 - PropertyGuru.com.sg
DTZ Research, a global property adviser, said that the last quarter of the financial year saw a rising trend of larger property deals in the Singapore market.
The value of property deals transacted in the last quarter were larger compared to the trend of small deals over the past three quarters of the year.
There were eight transactions, each worth more than $100 million, which made up 77 percent of the $2.5 billion total value transacted in Q4 2009. This is substantially larger than the 48 percent in Q3 and none in Q1 and Q2.
Investments made in Q3 and Q4 composed the 83 percent of the $5.9 billion total investment value in 2009.
The residential sector was the leading performer in 2009, accounting for 50 percent of the overall transaction value. The sector also tallied 56 percent or $1.4 billion of the total investment sales in Q4, with deals like the en bloc sale of Dragon Mansion.
The retail sector was the second top performing sector, contributing 16 percent to the full year transaction value. The sale of Clementi Mall in November for $541.9 million is one of the big deals in this segment.
Looking forward, DTZ Research expects 2010 to be a more active year due to the improving market sentiment.
With more activity coming from the government land sales programme, the residential sector will continuously dominate the property market next year.
HK sells land plots lower than the expected prices
HK sells land plots lower than the expected prices
Dec 29, 2009 - PropertyGuru.com.sg
The Hong Kong government sold two residential land plots at prices below market expectations in its first major land auction in two years, pressuring the stock market and property companies' shares.
However, the land plots were sold at lower-than-expected prices due to its location and it did not reflect the overall fundamental of HK’s property market, which faced a threat of bubbles forming, said analysts.
The result of the auction prompted HK’s Hang Seng index, which had been increasing before the start, ending 0.17 percent lower.
Also, the property sub-index, which had been outperforming before the auction start, fall 0.7 percent.
“The price came at the low end of expectations. The reason could be because the two plots of land are quite huge,” said Adrian Ngan, an analyst from CCB (China Construction Bank) International.
The first land plot was sold for HK$5.15 billion (US$660 million), while the second plot went for HK$5.25 billion. Both were below the expected market price of HK$5.45 billion.
Property Developer Sino Land won the first, as well as the second site, through a joint bid with K Wah International.
“The final price was reasonable. We're so grateful that other developers did not compete with us as they know we have a few plots of land nearby. We are really very happy,” said Sino Land chairman Robert Ng.
Each plot has a total of 720,000 sq ft gross floor area and is located in the Tai Po district in northern Hong Kong. The opening bid for the sites were HK$3.6 billion
“For this auction, you have to take the result with a grain of salt because you have to recognise that it is not that attractive to anyone else other than Sino Land,” said one analyst, who declined to be identified.
Analysts and experts highlighted Hong Kong, as well as China and Singapore, as a market where possible asset bubbles are forming, with the government trying to ease up prices through careful measures.
Before the Monday’s auction, HK government only sold small land parcels this year and did not have any major land sale for the past two years.
Dec 29, 2009 - PropertyGuru.com.sg
The Hong Kong government sold two residential land plots at prices below market expectations in its first major land auction in two years, pressuring the stock market and property companies' shares.
However, the land plots were sold at lower-than-expected prices due to its location and it did not reflect the overall fundamental of HK’s property market, which faced a threat of bubbles forming, said analysts.
The result of the auction prompted HK’s Hang Seng index, which had been increasing before the start, ending 0.17 percent lower.
Also, the property sub-index, which had been outperforming before the auction start, fall 0.7 percent.
“The price came at the low end of expectations. The reason could be because the two plots of land are quite huge,” said Adrian Ngan, an analyst from CCB (China Construction Bank) International.
The first land plot was sold for HK$5.15 billion (US$660 million), while the second plot went for HK$5.25 billion. Both were below the expected market price of HK$5.45 billion.
Property Developer Sino Land won the first, as well as the second site, through a joint bid with K Wah International.
“The final price was reasonable. We're so grateful that other developers did not compete with us as they know we have a few plots of land nearby. We are really very happy,” said Sino Land chairman Robert Ng.
Each plot has a total of 720,000 sq ft gross floor area and is located in the Tai Po district in northern Hong Kong. The opening bid for the sites were HK$3.6 billion
“For this auction, you have to take the result with a grain of salt because you have to recognise that it is not that attractive to anyone else other than Sino Land,” said one analyst, who declined to be identified.
Analysts and experts highlighted Hong Kong, as well as China and Singapore, as a market where possible asset bubbles are forming, with the government trying to ease up prices through careful measures.
Before the Monday’s auction, HK government only sold small land parcels this year and did not have any major land sale for the past two years.
Theme park developers to focus on Asia
Theme park developers to focus on Asia
Dec 28, 2009 - PropertyGuru.com.sg
The global economic downturn has bankrupted some US theme parks and set grand plans for new ones in the Middle East.
However, in Asia, a development boom is ongoing, as operators compete to roll out parks and add attractions to draw in the region's growing middle class.
In Hong Kong, the redevelopment of Ocean Park worth around US$750 million is set to be completed in 2013, while Hong Kong Disneyland Resort just started its US$465 million expansion, which will add three more areas by 2014. In November, the Chinese government finally approved a plan by Disney to build a theme park in Shanghai. It is expected to be launched in 5 to 6 years.
In Singapore, Resorts World at Sentosa (RWS) is set to open its Universal Studios early next year.
“Even with the economic hardship the world has been feeling, there is still stability in this part of the world, and people are still looking to do things that are out of the ordinary,” said Tom Mehrmann, the Chief Executive of Ocean Park.
Based on a report by the consulting firm, Economic Research Associates, and an international industry association, Themed Entertainment Association, the overall attendance at the world's top 25 theme parks has dropped over the past couple of years.
However, visits to the 10 most-visited parks in the Asia Pacific region continues to increase, though at a slower pace. Developers want to focus on the region due to this upward trend, which is expected to accelerate.
The industry anticipates Asia will have a solid growth, although the number of what Mr. Mehrmann calls 'world-class parks' in the region has increased to over 35 from only 15, over the last six years.
“What it says is that the market is growing, the middle class is growing, discretionary time and money is growing,” he said.
Dec 28, 2009 - PropertyGuru.com.sg
The global economic downturn has bankrupted some US theme parks and set grand plans for new ones in the Middle East.
However, in Asia, a development boom is ongoing, as operators compete to roll out parks and add attractions to draw in the region's growing middle class.
In Hong Kong, the redevelopment of Ocean Park worth around US$750 million is set to be completed in 2013, while Hong Kong Disneyland Resort just started its US$465 million expansion, which will add three more areas by 2014. In November, the Chinese government finally approved a plan by Disney to build a theme park in Shanghai. It is expected to be launched in 5 to 6 years.
In Singapore, Resorts World at Sentosa (RWS) is set to open its Universal Studios early next year.
“Even with the economic hardship the world has been feeling, there is still stability in this part of the world, and people are still looking to do things that are out of the ordinary,” said Tom Mehrmann, the Chief Executive of Ocean Park.
Based on a report by the consulting firm, Economic Research Associates, and an international industry association, Themed Entertainment Association, the overall attendance at the world's top 25 theme parks has dropped over the past couple of years.
However, visits to the 10 most-visited parks in the Asia Pacific region continues to increase, though at a slower pace. Developers want to focus on the region due to this upward trend, which is expected to accelerate.
The industry anticipates Asia will have a solid growth, although the number of what Mr. Mehrmann calls 'world-class parks' in the region has increased to over 35 from only 15, over the last six years.
“What it says is that the market is growing, the middle class is growing, discretionary time and money is growing,” he said.
Chinese premier promises to cool down property prices
Chinese premier promises to cool down property prices
Dec 28, 2009 - PropertyGuru.com.sg
Chinese Premier Wen Jiabao said the Chinese government will cool down property prices, rest pressure for the yuan and keep inflation rates at “reasonable” levels.
“Property prices have risen too quickly in some areas and we should use taxes and loan interest rates to stabilize them,” Wen said in an interview yesterday, adding that China will “absolutely not yield” to calls for currency gains.
China’s property prices surged in November at the quickest pace since July 2008, adding concerns that inflows of money and lending records will trigger asset bubbles in the fastest-growing major economy in the world. Central bank adviser Fan Gang said China needs to be on alert for real-estate, commodity and stock bubbles as global capital flows into the emerging economies.
“It’s difficult to see how serious the government is about cooling the property market,” said former Morgan Stanley chief Asian economist, Andy Xie. “The issue isn’t about introducing new measures but enforcing existing measures.”
In November, property prices in over 70 major cities increased 5.7 percent from the previous year, compared with 3.9 percent in October. Wen emphasized plans to develop more low-cost housing and said the Chinese government would crack down on illegal activities like land hoarding that fuelled price increases.
Consumer prices increased 0.6 percent in November from the previous year, snapping a nine-month run of deflation.
The government will ensure a “moderately loose” monetary policy, as well as a “proactive” fiscal stance, said Wen, adding that withdrawing stimulus packages too quickly would be a big mistake.
About 9.2 trillion yuan ($1.3 trillion) of loans in the first 11 months of 2008 gave way to China’s recovery after the economic crisis cut down export demand. This also added the risk of bad loans. Wen said that it would be good if lending were not on a large scale.
The Premier noted the government’s move on the yuan after rejecting the call for a stronger currency by visiting European officials, including Jean-Claude Trichet, president of the European Central Bank. China held the yuan for about 6.83 per dollar since July 2007, shielding its exporters from the decline of global demand.
“Maintaining a stable yuan has made an important contribution globally,” Wen said. “We will absolutely not yield to pressure to appreciate.”
Dec 28, 2009 - PropertyGuru.com.sg
Chinese Premier Wen Jiabao said the Chinese government will cool down property prices, rest pressure for the yuan and keep inflation rates at “reasonable” levels.
“Property prices have risen too quickly in some areas and we should use taxes and loan interest rates to stabilize them,” Wen said in an interview yesterday, adding that China will “absolutely not yield” to calls for currency gains.
China’s property prices surged in November at the quickest pace since July 2008, adding concerns that inflows of money and lending records will trigger asset bubbles in the fastest-growing major economy in the world. Central bank adviser Fan Gang said China needs to be on alert for real-estate, commodity and stock bubbles as global capital flows into the emerging economies.
“It’s difficult to see how serious the government is about cooling the property market,” said former Morgan Stanley chief Asian economist, Andy Xie. “The issue isn’t about introducing new measures but enforcing existing measures.”
In November, property prices in over 70 major cities increased 5.7 percent from the previous year, compared with 3.9 percent in October. Wen emphasized plans to develop more low-cost housing and said the Chinese government would crack down on illegal activities like land hoarding that fuelled price increases.
Consumer prices increased 0.6 percent in November from the previous year, snapping a nine-month run of deflation.
The government will ensure a “moderately loose” monetary policy, as well as a “proactive” fiscal stance, said Wen, adding that withdrawing stimulus packages too quickly would be a big mistake.
About 9.2 trillion yuan ($1.3 trillion) of loans in the first 11 months of 2008 gave way to China’s recovery after the economic crisis cut down export demand. This also added the risk of bad loans. Wen said that it would be good if lending were not on a large scale.
The Premier noted the government’s move on the yuan after rejecting the call for a stronger currency by visiting European officials, including Jean-Claude Trichet, president of the European Central Bank. China held the yuan for about 6.83 per dollar since July 2007, shielding its exporters from the decline of global demand.
“Maintaining a stable yuan has made an important contribution globally,” Wen said. “We will absolutely not yield to pressure to appreciate.”
Rental rates in Taipei forecasted to increase
Rental rates in Taipei forecasted to increase
Dec 28, 2009 - PropertyGuru.com.sg
Rental rates and housing prices in Taipei City could continue to surge, according to real-estate brokers.
The latest list of Asia's most expensive places to live, which is published by Forbes magazine, showed that Taipei was ranked 16th with an average monthly rent of US$1,065 for a high-end two-bedroom apartment.
Tokyo topped the list at US$4,737, followed by Hong Kong with a monthly average rent of US$3,871, while Beijing was ranked 3rd at US$3,659.
Urban districts where prices increased the most include several financial hubs like Mumbai, Taipei and Singapore, according to the annual cost-of-living survey released by Mercer Consulting.
Despite the global crisis, rents are relatively high and prices of real estate are increasing in such cities, according to Forbes.
"In the past, we've seen Europe as the most expensive place. Over time, Asian cities have caught up quite a bit in terms of cost-of-living increases," said Mercer’s principal consultant, Cathy Loose. "Mainly because of the limited space, real estate in terms of demand versus supply is driving the rental price high." Huang Cheng-fu, assistant manager of Evertrust Rehouse – one of the top real estate brokers in Taiwan – said the US$1,065 monthly figure estimated by Mercer for a two-bedroom apartment in Hsinyi or Daan district in Taiwan is a reasonable price.
Compared to the US$3,871 average monthly rent for a two-room apartment in HK, housing prices and rental rates in Taipei are expected to continue to increase despite closer exchanges in the greater China area, noted Mr. Huang.
Sinyi Realty Estate manager, Su Chi-jung, said Taipei's ranking reflects its possibility to become more globalized, because its rental rates are closely related to international levels.
If there are more foreign business executives in a city, rental rates usually increase because of the foreign nationals rental of high-quality houses, said Mr. Su.
With Taiwan Strait exchanges continuing to grow, and more Chinese and foreign executives coming to Taiwan, Mr. Su predicted that the city will be leading the list in the near future.
But other locations in the country will not see a similar increase in property rental rates.
Dec 28, 2009 - PropertyGuru.com.sg
Rental rates and housing prices in Taipei City could continue to surge, according to real-estate brokers.
The latest list of Asia's most expensive places to live, which is published by Forbes magazine, showed that Taipei was ranked 16th with an average monthly rent of US$1,065 for a high-end two-bedroom apartment.
Tokyo topped the list at US$4,737, followed by Hong Kong with a monthly average rent of US$3,871, while Beijing was ranked 3rd at US$3,659.
Urban districts where prices increased the most include several financial hubs like Mumbai, Taipei and Singapore, according to the annual cost-of-living survey released by Mercer Consulting.
Despite the global crisis, rents are relatively high and prices of real estate are increasing in such cities, according to Forbes.
"In the past, we've seen Europe as the most expensive place. Over time, Asian cities have caught up quite a bit in terms of cost-of-living increases," said Mercer’s principal consultant, Cathy Loose. "Mainly because of the limited space, real estate in terms of demand versus supply is driving the rental price high." Huang Cheng-fu, assistant manager of Evertrust Rehouse – one of the top real estate brokers in Taiwan – said the US$1,065 monthly figure estimated by Mercer for a two-bedroom apartment in Hsinyi or Daan district in Taiwan is a reasonable price.
Compared to the US$3,871 average monthly rent for a two-room apartment in HK, housing prices and rental rates in Taipei are expected to continue to increase despite closer exchanges in the greater China area, noted Mr. Huang.
Sinyi Realty Estate manager, Su Chi-jung, said Taipei's ranking reflects its possibility to become more globalized, because its rental rates are closely related to international levels.
If there are more foreign business executives in a city, rental rates usually increase because of the foreign nationals rental of high-quality houses, said Mr. Su.
With Taiwan Strait exchanges continuing to grow, and more Chinese and foreign executives coming to Taiwan, Mr. Su predicted that the city will be leading the list in the near future.
But other locations in the country will not see a similar increase in property rental rates.
ST : 2 firms fined for safety lapses
Dec 29, 2009
2 firms fined for safety lapses
By Mavis Toh
TWO construction companies have been fined a total of $96,000 for worksite safety violations, which, in one case, resulted in one worker being injured.
The more severe of the two incidents happened on Oct 13 last year, when construction worker Ji Zhi Li fell while taking measurements at a staircase landing at a Sentosa Cove worksite.
Xuyi Building Engineering was on Tuesday fined $60,000 for not taking adequate measures to prevent falls at the worksite.
Investigations showed that while the worker was equipped with a safety belt, there were no anchor points or lifelines provided to secure the belt. There were also no barriers to prevent falls.
The company was charged under the Workplace Safety and Health Act for inadequate supervision and failing to provide proper fall protection measures, among other offences.
In a separate case, construction company Ho Pak Kim Realty was fined $36,000 last week for safety violations found during inspections by the Ministry of Manpower (MOM) at a Braddell Road worksite.
2 firms fined for safety lapses
By Mavis Toh
TWO construction companies have been fined a total of $96,000 for worksite safety violations, which, in one case, resulted in one worker being injured.
The more severe of the two incidents happened on Oct 13 last year, when construction worker Ji Zhi Li fell while taking measurements at a staircase landing at a Sentosa Cove worksite.
Xuyi Building Engineering was on Tuesday fined $60,000 for not taking adequate measures to prevent falls at the worksite.
Investigations showed that while the worker was equipped with a safety belt, there were no anchor points or lifelines provided to secure the belt. There were also no barriers to prevent falls.
The company was charged under the Workplace Safety and Health Act for inadequate supervision and failing to provide proper fall protection measures, among other offences.
In a separate case, construction company Ho Pak Kim Realty was fined $36,000 last week for safety violations found during inspections by the Ministry of Manpower (MOM) at a Braddell Road worksite.
ST : Electricity prices up again
Dec 29, 2009
Electricity prices up again
By Grace Chua
The electricity tariff is set to rise 5.4 per cent to 22.87 cents per kilowatt-hour (kWh) in the first quarter of the new year (2010). -- ST PHOTO: CHEW SENG KIM
ELECTRICITY prices are back on the rise for the fourth consecutive quarter.
The electricity tariff is set to rise 5.4 per cent to 22.87 cents per kilowatt-hour (kWh) in the first quarter of the new year (2010), electricity service provider SP Services announced on Tuesday.
That means the electricity bill for an average 4-room flat will go up by about $4.70 - from $87.20 to $91.90.
SP Services said the rate was based on the average fuel oil price for the last three months, which has gone up about 8 per cent to $99.38 per barrel.
Last year, fuel oil prices skyrocketed to about $155 per barrel, pushing electricity prices to 30.45 cents per kWh last October. During the global downturn, oil prices dropped and electricity rates followed.
But as economies recover, oil prices are going up again.
Electricity prices up again
By Grace Chua
The electricity tariff is set to rise 5.4 per cent to 22.87 cents per kilowatt-hour (kWh) in the first quarter of the new year (2010). -- ST PHOTO: CHEW SENG KIM
ELECTRICITY prices are back on the rise for the fourth consecutive quarter.
The electricity tariff is set to rise 5.4 per cent to 22.87 cents per kilowatt-hour (kWh) in the first quarter of the new year (2010), electricity service provider SP Services announced on Tuesday.
That means the electricity bill for an average 4-room flat will go up by about $4.70 - from $87.20 to $91.90.
SP Services said the rate was based on the average fuel oil price for the last three months, which has gone up about 8 per cent to $99.38 per barrel.
Last year, fuel oil prices skyrocketed to about $155 per barrel, pushing electricity prices to 30.45 cents per kWh last October. During the global downturn, oil prices dropped and electricity rates followed.
But as economies recover, oil prices are going up again.
ST : Know your estate through Facebook
Dec 29, 2009
Know your estate through Facebook
By Ang Yiying
Yew Tee resident Priscilla Chew, 49, will be keeping other residents who are not able to be present updated through live feeds on Facebook and Twitter. -- PHOTO: AP
YEW Tee resident Priscilla Chew, 49, has an important task during a ministerial community visit there next month.
She will be keeping other residents who are not able to be present updated through live feeds on Facebook and Twitter.
Ms Chew is among a team of about 10 'roving reporters' made up of grassroots volunteers and Republic Polytechnic students who will be on the ground during the visit by Minister for Law and Second Minister for Home Affairs K Shanmugam on Jan 17.
They will be taking photos, videos and posting short comments about the visit with iPhones. Some will also do live blogging during an hour-long dialogue session with the minister.
These plans and updates on the Yew Tee division were shared by Hong Kah GRC Member of Parliament and advisor to the division Yeo Cheow Tong on Tuesday.
Said Mr Yeo about using new media, 'While we've done a pretty good job of reaching out, it adds an additional dimension to our outreach.' He added that using new media was also in line with the composition of Yew Tee's residents, which are mostly young families.
Know your estate through Facebook
By Ang Yiying
Yew Tee resident Priscilla Chew, 49, will be keeping other residents who are not able to be present updated through live feeds on Facebook and Twitter. -- PHOTO: AP
YEW Tee resident Priscilla Chew, 49, has an important task during a ministerial community visit there next month.
She will be keeping other residents who are not able to be present updated through live feeds on Facebook and Twitter.
Ms Chew is among a team of about 10 'roving reporters' made up of grassroots volunteers and Republic Polytechnic students who will be on the ground during the visit by Minister for Law and Second Minister for Home Affairs K Shanmugam on Jan 17.
They will be taking photos, videos and posting short comments about the visit with iPhones. Some will also do live blogging during an hour-long dialogue session with the minister.
These plans and updates on the Yew Tee division were shared by Hong Kah GRC Member of Parliament and advisor to the division Yeo Cheow Tong on Tuesday.
Said Mr Yeo about using new media, 'While we've done a pretty good job of reaching out, it adds an additional dimension to our outreach.' He added that using new media was also in line with the composition of Yew Tee's residents, which are mostly young families.
ST : More BTO flats to come
Dec 29, 2009
More BTO flats to come
More flats in Choa Chu Kang, Hougang will be launched in a week's time
By Esther Teo
At Dawson, 6,015 applications were received for the 1,102 available four-room flats and 806 applications for the 270 three-room flats. --PHOTO: HDB
THE scramble for the Dawson HDB build-to-order (BTO) flats came to an end yesterday with some flats more than 11 times subscribed.
The two-week application window resulted in a flood of applications for five-room flats, which attracted 2,090 applications for the 176 available. There were 11.9 applications for each available unit.
But home seekers need not be discouraged by the daunting odds as the Housing Board on Tuesday announced that it will offer a fresh batch of BTO flats for sale next Tuesday.
Buyers can look forward to another 1,300 BTO flats in Choa Chu Kang and Hougang, the board said in a statement yesterday. 'HDB will continue to launch more BTO projects in 2010 if there is sustained demand for new flats.'
At Dawson, 6,015 applications were received for the 1,102 available four-room flats and 806 applications for the 270 three-room flats.
Demand for studio apartments outstripped supply by a factor of 10.7, with 429 applications for just 40 units.
More BTO flats to come
More flats in Choa Chu Kang, Hougang will be launched in a week's time
By Esther Teo
At Dawson, 6,015 applications were received for the 1,102 available four-room flats and 806 applications for the 270 three-room flats. --PHOTO: HDB
THE scramble for the Dawson HDB build-to-order (BTO) flats came to an end yesterday with some flats more than 11 times subscribed.
The two-week application window resulted in a flood of applications for five-room flats, which attracted 2,090 applications for the 176 available. There were 11.9 applications for each available unit.
But home seekers need not be discouraged by the daunting odds as the Housing Board on Tuesday announced that it will offer a fresh batch of BTO flats for sale next Tuesday.
Buyers can look forward to another 1,300 BTO flats in Choa Chu Kang and Hougang, the board said in a statement yesterday. 'HDB will continue to launch more BTO projects in 2010 if there is sustained demand for new flats.'
At Dawson, 6,015 applications were received for the 1,102 available four-room flats and 806 applications for the 270 three-room flats.
Demand for studio apartments outstripped supply by a factor of 10.7, with 429 applications for just 40 units.
ST : Carrefour goes to heartlands
Dec 28, 2009
Carrefour goes to heartlands
By Tessa Wong
Known for introducing the hypermarket concept to Singapore in 1997, the French company is set to open eight new supermarkets and one hypermarket, all in the heartland, over the next three years. -- ST PHOTO: ONG CHIN KAI
FRENCH cheeses and exotic wines will soon be at the doorsteps of residents in the north, north-east and west of the island as supermarket chain Carrefour looks to expand to these neighbourhoods.
Known for introducing the hypermarket concept to Singapore in 1997, the French company is set to open eight new supermarkets and one hypermarket, all in the heartland, over the next three years.
Announcing its expansion plan yesterday, Carrefour's assistant operations and merchandise director Siva Kumar Haridas said this was prompted by greater demand from customers who want its range closer to home.
Its two current hypermarkets are located downtown at Suntec City and Plaza Singapura in Orchard Road.
Carrefour is not the only player eager to go high-end in the heartland, as consumers develop a taste for finer foods.
Local chain FairPrice this month opened two upscale FairPrice Finest supermarkets - in Marine Parade and Tampines. Its first two Finest outlets are in Bukit Timah and Upper Thomson.
Carrefour goes to heartlands
By Tessa Wong
Known for introducing the hypermarket concept to Singapore in 1997, the French company is set to open eight new supermarkets and one hypermarket, all in the heartland, over the next three years. -- ST PHOTO: ONG CHIN KAI
FRENCH cheeses and exotic wines will soon be at the doorsteps of residents in the north, north-east and west of the island as supermarket chain Carrefour looks to expand to these neighbourhoods.
Known for introducing the hypermarket concept to Singapore in 1997, the French company is set to open eight new supermarkets and one hypermarket, all in the heartland, over the next three years.
Announcing its expansion plan yesterday, Carrefour's assistant operations and merchandise director Siva Kumar Haridas said this was prompted by greater demand from customers who want its range closer to home.
Its two current hypermarkets are located downtown at Suntec City and Plaza Singapura in Orchard Road.
Carrefour is not the only player eager to go high-end in the heartland, as consumers develop a taste for finer foods.
Local chain FairPrice this month opened two upscale FairPrice Finest supermarkets - in Marine Parade and Tampines. Its first two Finest outlets are in Bukit Timah and Upper Thomson.
ST " Govt cuts biz risk share
Dec 28, 2009
Govt cuts biz risk share
By Gabriel Chen
With the economy in better shape, the Government is cutting the share of the risk that it will bear in business loans under a key programme designed to get banks to lend to cash-strapped companies. -- ST PHOTO: SAMUEL HE
WITH the economy in better shape, the Government is cutting the share of the risk that it will bear in business loans under a key programme designed to get banks to lend to cash-strapped companies.
The loans are part of a larger assistance package introduced between November last year and early this year to help companies ride out the economic slowdown.
A key aspect of the initiative involved the Government taking on more risk in bank loans as well as helping out with financing international trade.
The initiatives, which fall under the Special Risk-Sharing Initiative (SRI), include the Loan Insurance Scheme, Local Enterprise Finance Scheme, Micro Loan Programme and the Bridging Loan. The changes, which kick in from Feb 1, are sweeping - loan quantums, tenures, and risk share for instance will be lowered.
Under the Bridging Loan Programme, for example, the loan quantum limit for firms seeking loans for working capital will be reduced from $5 million to $2 million - which will meet the needs of 98 per cent of SMEs.
The Government's share of the risk for this programme will also be adjusted from 80 per cent to 50 per cent, while the maximum loan tenure will be revised from four to two years.
Govt cuts biz risk share
By Gabriel Chen
With the economy in better shape, the Government is cutting the share of the risk that it will bear in business loans under a key programme designed to get banks to lend to cash-strapped companies. -- ST PHOTO: SAMUEL HE
WITH the economy in better shape, the Government is cutting the share of the risk that it will bear in business loans under a key programme designed to get banks to lend to cash-strapped companies.
The loans are part of a larger assistance package introduced between November last year and early this year to help companies ride out the economic slowdown.
A key aspect of the initiative involved the Government taking on more risk in bank loans as well as helping out with financing international trade.
The initiatives, which fall under the Special Risk-Sharing Initiative (SRI), include the Loan Insurance Scheme, Local Enterprise Finance Scheme, Micro Loan Programme and the Bridging Loan. The changes, which kick in from Feb 1, are sweeping - loan quantums, tenures, and risk share for instance will be lowered.
Under the Bridging Loan Programme, for example, the loan quantum limit for firms seeking loans for working capital will be reduced from $5 million to $2 million - which will meet the needs of 98 per cent of SMEs.
The Government's share of the risk for this programme will also be adjusted from 80 per cent to 50 per cent, while the maximum loan tenure will be revised from four to two years.
ST High demand for BTO flats
Dec 28, 2009
High demand for BTO flats
By Esther Teo
After almost two weeks of open applications, the scramble for the Dawson Housing Development Board (HDB) build-to-order (BTO) flats came to a close on Monday innundated by overwhelming demand - with some flats more than 11 times oversubscribed. -- ST PHOTO: LAU KENG SENG
AFTER almost two weeks of open applications, the scramble for the Dawson Housing Development Board (HDB) build-to-order (BTO) flats came to a close on Monday innundated by overwhelming demand - with some flats more than 11 times oversubscribed.
Five-room Dawson flats were the most popular with 2,090 applications received for 176 available flats - approximately 11.9 times oversubscribed - while four-room and three-room flats received 6,015 applications for the 1,102 flats and 806 applications for the 270 flats available respectively.
Studio apartments were also hot property with demand outstripping supply by a factor of 10.7; it had an impressive 429 applications for 40 spots.
Paired units under the multi-generational scheme similarly saw high demand with 379 applications for the 65 such flats available.
Despite such stiff competition, systems analyst Victoria Chew, 26, who had applied for a four-room paired unit under the scheme said that she was not worried.
Her fiancee and her plan to continue looking for a suitable four-room resale flat in the area while waiting for the balloted queue position to be announced in February next year. If successful, they were willing to forgo their Dawson application despite its resonable price and good location, Ms Chew said, citing the 2015 project completion date as a significant drawback.
High demand for BTO flats
By Esther Teo
After almost two weeks of open applications, the scramble for the Dawson Housing Development Board (HDB) build-to-order (BTO) flats came to a close on Monday innundated by overwhelming demand - with some flats more than 11 times oversubscribed. -- ST PHOTO: LAU KENG SENG
AFTER almost two weeks of open applications, the scramble for the Dawson Housing Development Board (HDB) build-to-order (BTO) flats came to a close on Monday innundated by overwhelming demand - with some flats more than 11 times oversubscribed.
Five-room Dawson flats were the most popular with 2,090 applications received for 176 available flats - approximately 11.9 times oversubscribed - while four-room and three-room flats received 6,015 applications for the 1,102 flats and 806 applications for the 270 flats available respectively.
Studio apartments were also hot property with demand outstripping supply by a factor of 10.7; it had an impressive 429 applications for 40 spots.
Paired units under the multi-generational scheme similarly saw high demand with 379 applications for the 65 such flats available.
Despite such stiff competition, systems analyst Victoria Chew, 26, who had applied for a four-room paired unit under the scheme said that she was not worried.
Her fiancee and her plan to continue looking for a suitable four-room resale flat in the area while waiting for the balloted queue position to be announced in February next year. If successful, they were willing to forgo their Dawson application despite its resonable price and good location, Ms Chew said, citing the 2015 project completion date as a significant drawback.
ST : Sengkang site for tender
Dec 28, 2009
Sengkang site for tender
THE Housing Board has accepted an application under the Reserve List System to put up a residential land parcel at Sengkang West Avenue/Fernvale Link for public tender.
The 16,998 sq metre site will be open for tender in two weeks' time if a developer commits to bid for the land parcel at the minimum offer price of $70 million or more.
The 99-year leasehold site is proposed for condominium housing.
Sengkang site for tender
THE Housing Board has accepted an application under the Reserve List System to put up a residential land parcel at Sengkang West Avenue/Fernvale Link for public tender.
The 16,998 sq metre site will be open for tender in two weeks' time if a developer commits to bid for the land parcel at the minimum offer price of $70 million or more.
The 99-year leasehold site is proposed for condominium housing.
ST : CPF scam warning
Dec 25, 2009
CPF scam warning
By Lorna Tan, Senior Correspondent
CENTRAL Provident Fund members have been warned they face fines of up to $10,000 if they take part in a scam that has just come to light.
The CPF Board issued the stern warning after a report in The Straits Times on Thursday exposing a practice adopted by unscrupulous financial advisers who plunder members' CPF investment funds.
Some CPF members who are desperate for fast cash have agreed to take part in the scam, which involves the rapid buying and selling - or 'churning' - of investment products using CPF money.
The members dip into their retirement savings to buy and sell investment products under the CPF Investment Scheme - and in doing so they become eligible for cash rebates used as a carrot by errant financial advisers. The advisers get to pocket healthy commissions.
CPF rules prohibit members from pocketing such cash rebates. All gains or rebates from CPF investments must be put back into members' CPF accounts, to ensure they have enough for their golden years.
A CPF Board spokesman said: 'CPF members found guilty of working with errant financial advisers to pocket cash rebates which amount to premature withdrawals of CPF monies may be fined up to $2,500. For second or subsequent convictions, the fine may be up to $10,000.'
CPF scam warning
By Lorna Tan, Senior Correspondent
CENTRAL Provident Fund members have been warned they face fines of up to $10,000 if they take part in a scam that has just come to light.
The CPF Board issued the stern warning after a report in The Straits Times on Thursday exposing a practice adopted by unscrupulous financial advisers who plunder members' CPF investment funds.
Some CPF members who are desperate for fast cash have agreed to take part in the scam, which involves the rapid buying and selling - or 'churning' - of investment products using CPF money.
The members dip into their retirement savings to buy and sell investment products under the CPF Investment Scheme - and in doing so they become eligible for cash rebates used as a carrot by errant financial advisers. The advisers get to pocket healthy commissions.
CPF rules prohibit members from pocketing such cash rebates. All gains or rebates from CPF investments must be put back into members' CPF accounts, to ensure they have enough for their golden years.
A CPF Board spokesman said: 'CPF members found guilty of working with errant financial advisers to pocket cash rebates which amount to premature withdrawals of CPF monies may be fined up to $2,500. For second or subsequent convictions, the fine may be up to $10,000.'
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