May 31, 2010
More Singaporeans buying pricey homes
Locals overtake PRs and foreigners as buyers of units costing above $5m
By Lee Zhi Xin
THINK most buyers of homes priced above $5million are foreigners? Not any more, according to a report by Savills Research and Consultancy.
It has reported a stunning reversal of a trend that has prevailed for at least three years, when foreigners had dominated the top end of the market here.
The proportion of Singaporeans buying these pricey homes shot up 12.8 percentage points to 42.3 per cent for homes sold in the four months ended April 30, compared with the figure in the fourth quarter of last year.
Locals have easily overtaken the 39.7per cent combined figure for permanent residents and foreigners. Their share is 21.4percentage points lower compared to that in the three months ended last December.
Companies made up the other buyers.
'This decrease could be partly due to more cautiousness as a result of the financial woes and uncertainties facing the European countries,' senior manager of Savills Research and Consultancy Christine Sun said. 'Another reason could be... that the Singapore currency is generally stronger against other currencies, making these houses more expensive for foreigners.
'On the other hand, Singaporean buyers are more upbeat, especially after seeing the boost in our gross domestic product (GDP) and the influx of tourists and investors.'
Indeed, this strong optimism was reflected in the surge in sales of non-landed, high-end private homes. An impressive 214 homes costing $5million or more were sold in the first four months of this year, surpassing the 208 for 2008.
This year's sales also amount to 70 per cent of the 307 homes sold in the whole of last year, bolstering Ms Sun's confidence that this year's sales total will better last year's as well.
Optimism in the high-end market started picking up in the third quarter of last year, when 147 homes worth at least $5million were sold - a 283per cent jump from the figure in the previous quarter. In the first quarter this year, 137 of these pricey units were sold.
But Ms Sun noted that these figures are still a far cry from 2007 figures, when 1,249 units priced at $5 million or above were sold as a result of the property boom.
In the primary market, Urban Suites sold the largest number of these high-end homes - 24 units - for the period from the third quarter of last year to this April.
Goodwood Residence and Nassim Park Residences were not far behind, with 18 and 16 units sold respectively.
In the resale market, Ardmore Park took the lead with 19 units sold, followed by Grange Residences with 15 units. The subsale market saw Tate Residences swiping first place with 17 units, while Ardmore II bit at its heels with 16 units sold.
As a result, the total transaction value of these non-landed private homes priced at $5 million and above has shot up 30 per cent in the first quarter to $953 million from the figure in the previous quarter.
This upswing looks set to continue with last month's figure of $507 million already more than half of last quarter's.
Leading the pack in price so far this year is a 6,889 sq ft unit at Nassim Park Residences, sold for an eye-popping $20million. This, however, is still some distance away from the record $33.4million for an 8,051 sq ft unit at Boulevard Vue sold in November last year.
These rising figures have translated into a larger share of the non-landed market for these homes, from 0.3 per cent in the first quarter of last year to 3.4 per cent last month.
As a result, the share of private homes priced at less than $2.5 million has dropped from 95 per cent to 87.4 per cent.
'All these findings may indicate that more buyers are increasing their risk appetite for pricier homes as the economy recovers,' said Ms Sun, who was quick to note that this may also be a result of private home prices rising in recent months.
Add another reason to the mix: Buyers are going for larger units as well.
Sales of non-landed private units above 2,000 sq ft saw a year-on-year leap of 426.7 per cent for the first quarter of this year to 553 units. These homes now make up 7.6 per cent of the non-landed private market, a 4 percentage point rise in the same period.
But Cushman & Wakefield managing director Donald Han thinks that demand for luxury homes will not continue rising at this rapid rate. 'Our rapid GDP rise is clouded by the European crisis, and the stock market does not look buoyant at the moment... I expect the property market to take a breather,' he said.
lzhixin@sph.com.sg
Monday, May 31, 2010
ST : Not many rogue agents, replies real estate body
May 28, 2010
Not many rogue agents, replies real estate body
I COMMEND Ms Tan Hui Yee ('Getting smart against rogue housing agents'; Wednesday) for highlighting how savvy consumers can protect themselves from falling prey to rogue agents.
But rogue agents are not aplenty. Most consumers have had satisfactory experiences with the agents in their transactions. The Public Perception and Expectations of Real Estate Agents survey carried out by Ngee Ann Polytechnic last year indicated that 64.6 per cent of the respondents were satisfied with their estate agents and 67.3 per cent rated them in the range of 'satisfactory' to 'excellent' for fiduciary dealings, which is meant to reflect the ethical relationship between parties.
The case of the Yuens involving gross misconduct of agents last year was a rarity.
Contrary to Ms Tan's suggestion that consumers were sceptical or unfamiliar with real estate bodies such as the Singapore Accredited Estate Agencies (SAEA), we had 329 inquiries, feedback and complaints last year, of which 40 per cent were complaints requiring our intervention, and these included disputes over commission.
The number of complaints alone was thrice more than what our agency handled in 2008. The bulk of the complaints was expeditiously resolved. SAEA also successfully helped settle all cases which required mediation. So, we do not believe we are ineffectual.
Finally, Ms Tan stated that 'not every agent who misleads a client into an unsavoury deal will be disciplined; some could merely be made to forgo part of their commission in a mediated settlement'.
There is another perspective to this, that is, if indeed the estate agent is clearly proven to have misled his client resulting in financial loss or even hardship, it is likely that he will face disciplinary inquiry in addition to the possibility of civil suit. The estate agency to which he is registered with may also face censure.
Dr Tan Tee Khoon
Chief Executive Officer
Singapore Accredited Estate Agencies
Not many rogue agents, replies real estate body
I COMMEND Ms Tan Hui Yee ('Getting smart against rogue housing agents'; Wednesday) for highlighting how savvy consumers can protect themselves from falling prey to rogue agents.
But rogue agents are not aplenty. Most consumers have had satisfactory experiences with the agents in their transactions. The Public Perception and Expectations of Real Estate Agents survey carried out by Ngee Ann Polytechnic last year indicated that 64.6 per cent of the respondents were satisfied with their estate agents and 67.3 per cent rated them in the range of 'satisfactory' to 'excellent' for fiduciary dealings, which is meant to reflect the ethical relationship between parties.
The case of the Yuens involving gross misconduct of agents last year was a rarity.
Contrary to Ms Tan's suggestion that consumers were sceptical or unfamiliar with real estate bodies such as the Singapore Accredited Estate Agencies (SAEA), we had 329 inquiries, feedback and complaints last year, of which 40 per cent were complaints requiring our intervention, and these included disputes over commission.
The number of complaints alone was thrice more than what our agency handled in 2008. The bulk of the complaints was expeditiously resolved. SAEA also successfully helped settle all cases which required mediation. So, we do not believe we are ineffectual.
Finally, Ms Tan stated that 'not every agent who misleads a client into an unsavoury deal will be disciplined; some could merely be made to forgo part of their commission in a mediated settlement'.
There is another perspective to this, that is, if indeed the estate agent is clearly proven to have misled his client resulting in financial loss or even hardship, it is likely that he will face disciplinary inquiry in addition to the possibility of civil suit. The estate agency to which he is registered with may also face censure.
Dr Tan Tee Khoon
Chief Executive Officer
Singapore Accredited Estate Agencies
ST : Just one lone petrol station in Punggol
May 30, 2010
Just one lone petrol station in Punggol
By Kimberly Spykerman
One is a lonely number, and it is the reason motorists in Punggol are being driven mad.
The new town has just one petrol station and long, snaking queues are common, especially during the weekends.
The Singapore Petroleum Centre (SPC) station at the junction of Punggol Central Road and Edgefield Plains caters to 82,000 residents.
Neighbouring new town Sengkang has three petrol stations.
Staff at the Punggol petrol station told The Sunday Times that on busy days, as many as 10 cars line the road leading up to it, despite there being no huge discounts.
Said bank manager Serena Lee: 'I avoid going there on weekends and Monday mornings. I go at night, or during non-peak hours.'
Although Ms Lee, 49, does not live there, she goes to Punggol almost every day to visit her elderly mother. Her longest wait to fill up was about 10 minutes.
When contacted, the Urban Redevelopment Authority (URA) said land is set aside for petrol stations in new towns. The release of sites for tender depends on factors such as the growth and size of the new town, it added.
SPC secured the 30-year Punggol site three years ago for $8.5 million.
Mr Charles Chong, an MP for Pasir-Ris Punggol GRC, said: 'It's a chicken and egg situation.'
He explained that a critical mass would entice businesses to set up; on the other hand, residents will not move in without the facilities.
'If the essential facilities can develop together with residential properties, that is ideal but it's not an easy balance to strike.'
The URA said that while demand is a key factor, there are some areas, such as densely built-up Orchard Road, which are simply no-go zones because of 'security and technical requirements'.
One expert, Associate Professor Belinda Yuen from the Department of Real Estate, National University of Singapore, felt that safety and accessibility are top-most considerations in decisions on the location of petrol stations, especially since petrol is highly flammable.
'It's best to locate these petrol stations a safe distance from residential and crowded areas. There should also be sufficient open space around them to provide a buffer, and no flammable material in case of fire,' she added.
In all, there are about 200 petrol stations in Singapore.
Areas like Serangoon and Bukit Timah boast at least three stations in a single kilometre stretch.
Petrol stations, meanwhile, are upping their game to woo customers. Besides fuel, customers can get a whole lot more at the stations.
For example, FairPrice Xpress stores at Esso stations were recently enhanced to add fresh produce such as frozen meat, cheese and vegetables to their line-up of products. It also trotted out Citibank drive-through ATMs at several outlets last year.
Said Exxonmobil's retail manager Thia Ling Ling: 'With changing demographics such as more dual-income busy families, we offer our customers the convenience of shopping for their groceries, or withdrawing cash from an ATM, all while refuelling their cars at the station.'
The petrol station in Punggol caters to 82,000 residents, and long queues are common on weekends. -- ST PHOTO: ALPHONSUS CHERN
Just one lone petrol station in Punggol
By Kimberly Spykerman
One is a lonely number, and it is the reason motorists in Punggol are being driven mad.
The new town has just one petrol station and long, snaking queues are common, especially during the weekends.
The Singapore Petroleum Centre (SPC) station at the junction of Punggol Central Road and Edgefield Plains caters to 82,000 residents.
Neighbouring new town Sengkang has three petrol stations.
Staff at the Punggol petrol station told The Sunday Times that on busy days, as many as 10 cars line the road leading up to it, despite there being no huge discounts.
Said bank manager Serena Lee: 'I avoid going there on weekends and Monday mornings. I go at night, or during non-peak hours.'
Although Ms Lee, 49, does not live there, she goes to Punggol almost every day to visit her elderly mother. Her longest wait to fill up was about 10 minutes.
When contacted, the Urban Redevelopment Authority (URA) said land is set aside for petrol stations in new towns. The release of sites for tender depends on factors such as the growth and size of the new town, it added.
SPC secured the 30-year Punggol site three years ago for $8.5 million.
Mr Charles Chong, an MP for Pasir-Ris Punggol GRC, said: 'It's a chicken and egg situation.'
He explained that a critical mass would entice businesses to set up; on the other hand, residents will not move in without the facilities.
'If the essential facilities can develop together with residential properties, that is ideal but it's not an easy balance to strike.'
The URA said that while demand is a key factor, there are some areas, such as densely built-up Orchard Road, which are simply no-go zones because of 'security and technical requirements'.
One expert, Associate Professor Belinda Yuen from the Department of Real Estate, National University of Singapore, felt that safety and accessibility are top-most considerations in decisions on the location of petrol stations, especially since petrol is highly flammable.
'It's best to locate these petrol stations a safe distance from residential and crowded areas. There should also be sufficient open space around them to provide a buffer, and no flammable material in case of fire,' she added.
In all, there are about 200 petrol stations in Singapore.
Areas like Serangoon and Bukit Timah boast at least three stations in a single kilometre stretch.
Petrol stations, meanwhile, are upping their game to woo customers. Besides fuel, customers can get a whole lot more at the stations.
For example, FairPrice Xpress stores at Esso stations were recently enhanced to add fresh produce such as frozen meat, cheese and vegetables to their line-up of products. It also trotted out Citibank drive-through ATMs at several outlets last year.
Said Exxonmobil's retail manager Thia Ling Ling: 'With changing demographics such as more dual-income busy families, we offer our customers the convenience of shopping for their groceries, or withdrawing cash from an ATM, all while refuelling their cars at the station.'
The petrol station in Punggol caters to 82,000 residents, and long queues are common on weekends. -- ST PHOTO: ALPHONSUS CHERN
ST : New launches aplenty amid uncertainty
May 30, 2010
New launches aplenty amid uncertainty
Analysts believe demand likely to be healthy despite market volatility
By Jessica Cheam
New residential projects have been launched for the long weekend as Singapore celebrates Vesak Day. But with the recent uncertainty in the financial market, will property investors bite?
Property experts whom The Sunday Times spoke to said the jury is still out on whether April's bumper sales of 2,207 new units - the second-highest monthly sales achieved - can be sustained this month.
This figure was up from 1,761 in March and 1,202 in February.
But recent turmoil stemming from the sovereign debt crisis in Greece and other European countries, coupled with stock market volatility, may have a cooling effect on the market in the short term, experts said.
Last week, the Government also released the largest amount of state land for private homes in response to surging demand.
It put 18 residential or residential/commercial sites on the programme for confirmed sale in the second half of the year, and 13 sites for residential use on the reserve list.
Together, the plots could yield 13,905 new homes - a figure that has experts speculating about a possible supply glut in the future.
The big question on the minds of property hunters on the prowl this weekend: Is this the right time to buy?
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said that investors will now have to consider that there may be cheaper projects on the horizon.
'With the bumper crop of land sales, bids will be less aggressive and this could translate to lower launch prices,' he said.
Chesterton Suntec International research and consultancy director Colin Tan said the uncertainty of the global economic outlook could also be a reason for investors to stay away.
Mr Tan did not think, however, that the Government's recent land release would have a big impact on demand as there are still genuine buyers in the market.
But both experts agreed there is a healthy level of demand that will still move sales this weekend.
Major projects launched this weekend include Kheng Leong group's The Minton in Lorong Ah Soo/Hougang Street 11, which officially opened to the public yesterday.
The 99-year leasehold development offers a range of one- to four-bedroom apartments and is due for completion around 2014. Units were sold during the soft launch at an average price of $880 psf.
Another project launched last Friday was Frasers Centrepoint's Flamingo Valley in Siglap.
About 40 of 120 units released during the previews have been sold at an average price of $1,200 psf, said Frasers.
The freehold development offers a range of units from studios to four-bedders and penthouses.
Another recent launch: the freehold Cascadia condo in Bukit Timah Road.
More than 50 of 90 released units have been sold, said its developer Allgreen Properties. Units sold at between $1,300psf and $1,600psf, with average transacted prices close to $1,400 psf, it said.
For buyers on the lookout for completed properties, Melodies Limited's freehold 72-unit Cassia View in Guillemard Road offers three-bedroom units and penthouses. Prices range from $900 psf to $1,100 psf.
Ngee Ann Polytechnic's Mr Mak said that despite market uncertainty, some projects - especially those attractively priced - will still do well.
Chesterton's Mr Tan said that the recent bidding by developers for land at bullish prices reflects developers' positive outlook on demand for homes.
jcheam@sph.com.sg
Additional reporting by Lee Zhi Xin
Units at the sprawling Flamingo Valley in Siglap have been going at an average of $1,200 psf during preview sales. -- PHOTO: FRASERS CENTREPOINT HOMES
New launches aplenty amid uncertainty
Analysts believe demand likely to be healthy despite market volatility
By Jessica Cheam
New residential projects have been launched for the long weekend as Singapore celebrates Vesak Day. But with the recent uncertainty in the financial market, will property investors bite?
Property experts whom The Sunday Times spoke to said the jury is still out on whether April's bumper sales of 2,207 new units - the second-highest monthly sales achieved - can be sustained this month.
This figure was up from 1,761 in March and 1,202 in February.
But recent turmoil stemming from the sovereign debt crisis in Greece and other European countries, coupled with stock market volatility, may have a cooling effect on the market in the short term, experts said.
Last week, the Government also released the largest amount of state land for private homes in response to surging demand.
It put 18 residential or residential/commercial sites on the programme for confirmed sale in the second half of the year, and 13 sites for residential use on the reserve list.
Together, the plots could yield 13,905 new homes - a figure that has experts speculating about a possible supply glut in the future.
The big question on the minds of property hunters on the prowl this weekend: Is this the right time to buy?
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said that investors will now have to consider that there may be cheaper projects on the horizon.
'With the bumper crop of land sales, bids will be less aggressive and this could translate to lower launch prices,' he said.
Chesterton Suntec International research and consultancy director Colin Tan said the uncertainty of the global economic outlook could also be a reason for investors to stay away.
Mr Tan did not think, however, that the Government's recent land release would have a big impact on demand as there are still genuine buyers in the market.
But both experts agreed there is a healthy level of demand that will still move sales this weekend.
Major projects launched this weekend include Kheng Leong group's The Minton in Lorong Ah Soo/Hougang Street 11, which officially opened to the public yesterday.
The 99-year leasehold development offers a range of one- to four-bedroom apartments and is due for completion around 2014. Units were sold during the soft launch at an average price of $880 psf.
Another project launched last Friday was Frasers Centrepoint's Flamingo Valley in Siglap.
About 40 of 120 units released during the previews have been sold at an average price of $1,200 psf, said Frasers.
The freehold development offers a range of units from studios to four-bedders and penthouses.
Another recent launch: the freehold Cascadia condo in Bukit Timah Road.
More than 50 of 90 released units have been sold, said its developer Allgreen Properties. Units sold at between $1,300psf and $1,600psf, with average transacted prices close to $1,400 psf, it said.
For buyers on the lookout for completed properties, Melodies Limited's freehold 72-unit Cassia View in Guillemard Road offers three-bedroom units and penthouses. Prices range from $900 psf to $1,100 psf.
Ngee Ann Polytechnic's Mr Mak said that despite market uncertainty, some projects - especially those attractively priced - will still do well.
Chesterton's Mr Tan said that the recent bidding by developers for land at bullish prices reflects developers' positive outlook on demand for homes.
jcheam@sph.com.sg
Additional reporting by Lee Zhi Xin
Units at the sprawling Flamingo Valley in Siglap have been going at an average of $1,200 psf during preview sales. -- PHOTO: FRASERS CENTREPOINT HOMES
ST : Singapore developers score big
May 28, 2010
Singapore developers score big
City Developments, Far East Organization, UOL and Keppel Land win international prizes for their buildings
By tay suan chiang
Four Singapore property developers were winners in this year's Fiabci Prix d'Excellence Competition, considered as the Olympics of the international real estate industry.
The Sail @ Marina Bay by City Developments came out tops in the Residential (High Rise) category. Far East Organization (FEO) won two accolades: a top award for Central at Clarke Quay in the Office category and a runner-up prize for its Square 2/Novena Medical Centre in the Specialised Project category.
UOL Group also clinched two awards. Its Pan Pacific Suzhou was tops in the Hotel category, while its one-north Residences was a runner-up in the Residential (High Rise) category.
Rounding off the list was Keppel Land, which bagged a runner-up prize in the Residential (Low Rise) category for its Jakarta Garden City project.
Indonesian Vice-President Boediono handed out the awards in Bali last night. Fiabci is the French acronym for the International Real Estate Federation, which organises the annual Prix d'Excellence to recognise excellence in property development. Entries are judged on five criteria: global concept, architecture and design, development and construction, community benefit and environmental impact, and financials and marketing.
There were 54 entries this year, with 12 winners and 12 runner-ups. Other winners included Hungary's Chemical Research Building and Malaysia's Adiva Parkhomes, Courtyard Terraces & Apartments.
On the projects by Singapore developers, Mr Yeow Thit Sang, president of the awards, said: 'They are of high standards and world-class quality.'
Strong track record
Dr Steven Choo, chief executive officer of the Real Estate Developers' Association of Singapore, said: 'It is testimony to the outstanding quality real estate that our members consistently create and a ringing endorsement of Singapore's presence as a global city of distinction in urban design and development.'
Singapore has been a strong Fiabci award winner. Past winners include Republic Plaza office tower, St Regis hotel and Esplanade Theatres On The Bay.
Said Mr Ashvinkumar Kantilai, president of the Singapore Institute of Architects: 'Our consistent success in the Fiabci awards over the years is proof of the maturing architectural design environment in Singapore.
'Over the years, the synergy among the developers, architects and contractors, with support from the Government, has helped to leapfrog Singapore's international standing in producing and delivering creative, innovative and sustainable design solutions.'
This year marks FEO's sixth time winning the awards, the most by any Singapore developer since they were introduced in 1992. Its past winners include residential projects Orchard Scotts, Gardenville and The Bayshore as well as The Fullerton Hotel Singapore and Far East Square.
While the accolade is handed out to developers, Mr Chng Kiong Huat, FEO's executive director for development and planning, said the awards give end-users 'peace of mind that the developer can build and deliver'.
taysc@sph.com.sg
--------------------------------------------------------------------------------
UOL GROUP
Pan Pacific Suzhou
Fiabci Prix d'Excellence Award winner
Located in the south-eastern part of the Ping Jiang District in Suzhou, Pan Pacific Suzhou, a winner in the Hotel category, sits in a strategic location and combines architectural grandeur with exquisite garden features.
The design of the five-star, 481-room hotel shows sensitivity to its environment and ingenuity in integrating the old and new elements.
one-north Residences
Fiabci Prix d'Excellence Award runner-up
A runner-up in the Residential (High Rise) category, the 405-unit one-north Residences is part of the larger one-north master plan in Singapore.
One-north is a 200ha development centred on knowledge-based industries that provide a stimulating and creative physical environment in which to live, congregate, interact and exchange ideas.
The condominium is arranged around a large courtyard to make the most of the surrounding park views.
FAR EAST ORGANIZATION
Central
Fiabci Prix d'Excellence Award winner
Shoppers may gripe about finding it hard to locate the shops in the mall of this development, but Central, completed in 2008, is a Fiabci winner in the Office category.
It introduced the first-of-its-kind purpose-built Small Office Home Office (Soho) units - functional and versatile spaces for office and residential use.
Central comprises two Soho towers, a 25-storey office block, a sky garden, recreational facilities and a retail podium.
It has attracted a vibrant community of entrepreneurial businesses including consultants and professionals in the legal, information technology, logistics, recruitment, education and fashion industries.
Square 2/Novena Medical Centre
Fiabci Prix d'Excellence Award runner-up
This project is the first of its kind in Singapore: a medical centre with a retail podium and which is connected directly to a hospital. It is a runner-up in the Specialised Project (Purpose-built) category.
The retail segment, called Square 2, has five floors offering a variety of shops and restaurants. Its basement level connects directly to the Novena MRT station.
The Novena Medical Centre has 145 clinics located on four floors. Facilities include day surgery and diagnostic radiology centres. An air-conditioned overhead linkway connects Tan Tock Seng Hospital, Singapore's second-largest public hospital, to the third-level lift lobby of the medical centre.
CITY DEVELOPMENTS
The Sail @ Marina Bay
Fiabci Prix d'Excellence Award winner
A winner in the Residential (High Rise) category, The Sail @ Marina Bay was designed by renowned Norwegian/ American architect Peter Pran.
Consisting of two 70- and 63-storey towers housing 1,111 apartments in all, it is Singapore's tallest residential development.
The towers have a unique sculptural form and their waterfront location gives home owners clear views of the Marina Bay area.
KEPPEL LAND
Jakarta Garden City
Fiabci Prix d'Excellence Award runner-up
Located a 35-minute drive from downtown Jakarta, Jakarta Garden City consists of 8,000 houses with facilities such as shopping malls and a market in its compound. It is a runner-up in the Residential (Low Rise) category.
It is modelled after 'clean, green Singapore' and will be developed as 'the ideal integrated township to live, work, play and learn in'. It is Indonesia's first township to be designed with a green lifestyle theme and will have eco-friendly features.
Singapore developers score big
City Developments, Far East Organization, UOL and Keppel Land win international prizes for their buildings
By tay suan chiang
Four Singapore property developers were winners in this year's Fiabci Prix d'Excellence Competition, considered as the Olympics of the international real estate industry.
The Sail @ Marina Bay by City Developments came out tops in the Residential (High Rise) category. Far East Organization (FEO) won two accolades: a top award for Central at Clarke Quay in the Office category and a runner-up prize for its Square 2/Novena Medical Centre in the Specialised Project category.
UOL Group also clinched two awards. Its Pan Pacific Suzhou was tops in the Hotel category, while its one-north Residences was a runner-up in the Residential (High Rise) category.
Rounding off the list was Keppel Land, which bagged a runner-up prize in the Residential (Low Rise) category for its Jakarta Garden City project.
Indonesian Vice-President Boediono handed out the awards in Bali last night. Fiabci is the French acronym for the International Real Estate Federation, which organises the annual Prix d'Excellence to recognise excellence in property development. Entries are judged on five criteria: global concept, architecture and design, development and construction, community benefit and environmental impact, and financials and marketing.
There were 54 entries this year, with 12 winners and 12 runner-ups. Other winners included Hungary's Chemical Research Building and Malaysia's Adiva Parkhomes, Courtyard Terraces & Apartments.
On the projects by Singapore developers, Mr Yeow Thit Sang, president of the awards, said: 'They are of high standards and world-class quality.'
Strong track record
Dr Steven Choo, chief executive officer of the Real Estate Developers' Association of Singapore, said: 'It is testimony to the outstanding quality real estate that our members consistently create and a ringing endorsement of Singapore's presence as a global city of distinction in urban design and development.'
Singapore has been a strong Fiabci award winner. Past winners include Republic Plaza office tower, St Regis hotel and Esplanade Theatres On The Bay.
Said Mr Ashvinkumar Kantilai, president of the Singapore Institute of Architects: 'Our consistent success in the Fiabci awards over the years is proof of the maturing architectural design environment in Singapore.
'Over the years, the synergy among the developers, architects and contractors, with support from the Government, has helped to leapfrog Singapore's international standing in producing and delivering creative, innovative and sustainable design solutions.'
This year marks FEO's sixth time winning the awards, the most by any Singapore developer since they were introduced in 1992. Its past winners include residential projects Orchard Scotts, Gardenville and The Bayshore as well as The Fullerton Hotel Singapore and Far East Square.
While the accolade is handed out to developers, Mr Chng Kiong Huat, FEO's executive director for development and planning, said the awards give end-users 'peace of mind that the developer can build and deliver'.
taysc@sph.com.sg
--------------------------------------------------------------------------------
UOL GROUP
Pan Pacific Suzhou
Fiabci Prix d'Excellence Award winner
Located in the south-eastern part of the Ping Jiang District in Suzhou, Pan Pacific Suzhou, a winner in the Hotel category, sits in a strategic location and combines architectural grandeur with exquisite garden features.
The design of the five-star, 481-room hotel shows sensitivity to its environment and ingenuity in integrating the old and new elements.
one-north Residences
Fiabci Prix d'Excellence Award runner-up
A runner-up in the Residential (High Rise) category, the 405-unit one-north Residences is part of the larger one-north master plan in Singapore.
One-north is a 200ha development centred on knowledge-based industries that provide a stimulating and creative physical environment in which to live, congregate, interact and exchange ideas.
The condominium is arranged around a large courtyard to make the most of the surrounding park views.
FAR EAST ORGANIZATION
Central
Fiabci Prix d'Excellence Award winner
Shoppers may gripe about finding it hard to locate the shops in the mall of this development, but Central, completed in 2008, is a Fiabci winner in the Office category.
It introduced the first-of-its-kind purpose-built Small Office Home Office (Soho) units - functional and versatile spaces for office and residential use.
Central comprises two Soho towers, a 25-storey office block, a sky garden, recreational facilities and a retail podium.
It has attracted a vibrant community of entrepreneurial businesses including consultants and professionals in the legal, information technology, logistics, recruitment, education and fashion industries.
Square 2/Novena Medical Centre
Fiabci Prix d'Excellence Award runner-up
This project is the first of its kind in Singapore: a medical centre with a retail podium and which is connected directly to a hospital. It is a runner-up in the Specialised Project (Purpose-built) category.
The retail segment, called Square 2, has five floors offering a variety of shops and restaurants. Its basement level connects directly to the Novena MRT station.
The Novena Medical Centre has 145 clinics located on four floors. Facilities include day surgery and diagnostic radiology centres. An air-conditioned overhead linkway connects Tan Tock Seng Hospital, Singapore's second-largest public hospital, to the third-level lift lobby of the medical centre.
CITY DEVELOPMENTS
The Sail @ Marina Bay
Fiabci Prix d'Excellence Award winner
A winner in the Residential (High Rise) category, The Sail @ Marina Bay was designed by renowned Norwegian/ American architect Peter Pran.
Consisting of two 70- and 63-storey towers housing 1,111 apartments in all, it is Singapore's tallest residential development.
The towers have a unique sculptural form and their waterfront location gives home owners clear views of the Marina Bay area.
KEPPEL LAND
Jakarta Garden City
Fiabci Prix d'Excellence Award runner-up
Located a 35-minute drive from downtown Jakarta, Jakarta Garden City consists of 8,000 houses with facilities such as shopping malls and a market in its compound. It is a runner-up in the Residential (Low Rise) category.
It is modelled after 'clean, green Singapore' and will be developed as 'the ideal integrated township to live, work, play and learn in'. It is Indonesia's first township to be designed with a green lifestyle theme and will have eco-friendly features.
ST : $92m upgrade for Six Battery Road
May 28, 2010
$92m upgrade for Six Battery Road
Makeover will include green features to boost energy efficiency
By Jessica Cheam
RAFFLES Place Grade A office building Six Battery Road is to undergo a $92 million facelift that will give its tenants a greener working environment.
CapitaCommercial Trust (CCT) Management, which owns the building, yesterday unveiled its ambitious asset enhancement plan.
It said it is upgrading the site to meet the needs of modern-day office tenants, while at the same time boosting its energy efficiency and cutting its environmental impact.
Among the green features that will be incorporated are a wind turbine to power lighting and reduce the building's carbon footprint, and a re-designed chiller plant room to improve energy efficiency.
The cost of the makeover is equivalent to about 8 per cent of the property's value, as at the end of December last year.
CCT Management chief executive Lynette Leong said that it was 'an opportune time to undertake asset enhancement' given that the Singapore office market was poised for rental recovery.
Six Battery Road will 'continue to offer value-for-money office accommodation to tenants, and sustain the building's high occupancy and rental rates', she said.
Ms Leong told a briefing yesterday that there was the potential for a rent increase of between 10 and 15 per cent after the upgrade.
The chairman of CCT's manager, Mr Richard Hale, said the plan 'was in line with our portfolio reconstitution strategy (where) we will proactively enhance the trust's long-term value through divestments, asset enhancement initiatives and acquisitions.'
Building work will begin in October and be carried out in phases until 2013, so that tenants can continue to operate with minimal inconvenience.
The ground-floor lift lobby, turnstiles and reception area will be the first area to be tackled.
A key highlight in the main lobby will be a 184 sq m green wall with plants - the largest of its type in Singapore.
CCT said it is undertaking the work now to capitalise on the changeover of its tenants, which will minimise downtime.
Six Battery Road this week won the BCA Green Mark Platinum award - the highest accolade for a green building.
Yesterday, Ms Leong disclosed that CCT was on the lookout for acquisitions, but said the market was still volatile and rental recovery too uncertain to commit to a purchase.
jcheam@sph.com.sg
$92m upgrade for Six Battery Road
Makeover will include green features to boost energy efficiency
By Jessica Cheam
RAFFLES Place Grade A office building Six Battery Road is to undergo a $92 million facelift that will give its tenants a greener working environment.
CapitaCommercial Trust (CCT) Management, which owns the building, yesterday unveiled its ambitious asset enhancement plan.
It said it is upgrading the site to meet the needs of modern-day office tenants, while at the same time boosting its energy efficiency and cutting its environmental impact.
Among the green features that will be incorporated are a wind turbine to power lighting and reduce the building's carbon footprint, and a re-designed chiller plant room to improve energy efficiency.
The cost of the makeover is equivalent to about 8 per cent of the property's value, as at the end of December last year.
CCT Management chief executive Lynette Leong said that it was 'an opportune time to undertake asset enhancement' given that the Singapore office market was poised for rental recovery.
Six Battery Road will 'continue to offer value-for-money office accommodation to tenants, and sustain the building's high occupancy and rental rates', she said.
Ms Leong told a briefing yesterday that there was the potential for a rent increase of between 10 and 15 per cent after the upgrade.
The chairman of CCT's manager, Mr Richard Hale, said the plan 'was in line with our portfolio reconstitution strategy (where) we will proactively enhance the trust's long-term value through divestments, asset enhancement initiatives and acquisitions.'
Building work will begin in October and be carried out in phases until 2013, so that tenants can continue to operate with minimal inconvenience.
The ground-floor lift lobby, turnstiles and reception area will be the first area to be tackled.
A key highlight in the main lobby will be a 184 sq m green wall with plants - the largest of its type in Singapore.
CCT said it is undertaking the work now to capitalise on the changeover of its tenants, which will minimise downtime.
Six Battery Road this week won the BCA Green Mark Platinum award - the highest accolade for a green building.
Yesterday, Ms Leong disclosed that CCT was on the lookout for acquisitions, but said the market was still volatile and rental recovery too uncertain to commit to a purchase.
jcheam@sph.com.sg
ST : RGS site could be worth billions if sold: Analysts
May 28, 2010
RGS site could be worth billions if sold: Analysts
ITS students may be sad to see it go, but property developers will be eagerly eyeing the plum plot of land that Raffles Girls' School (RGS) will leave behind if it relocates.
The school now sits on a prized centrally located site that is likely to be worth billions if it is converted into a residential plot, property consultants said yesterday.
'This is a very, very prime site,' said Mr Ho Eng Joo, executive director of investment sales at real estate firm Colliers International.
'It's been quite a long time since this kind of prime site has been released in the market, and at this size. There are no comparables, it's priceless,' he added.
RGS occupies one of the most coveted plots of land in Singapore, bounded on all four sides by some of the country's priciest residential areas: Ardmore Park, Draycott Park, Stevens Road and Anderson Road.
Given the location, the size of the plot is massive: 4.5ha, or 10 times the size of nearby The Ardmore and almost five times that of Anderson 18. It is about the size of the sprawling Ardmore Park.
Mr Ho believes the site could go for $1.6 billion to $2 billion, based on a plot ratio of 2.8, which is similar to that of nearby developments. This would work out to about $1,400 per sq ft (psf) of the total floor area, which could amount to 1.35 million sq ft.
Ms Chua Chor Hoon, head of South-east Asia research at DTZ Debenham Tie Leung, has an even higher estimate at well over $2 billion. This is based on a possible selling price of $2,800 to $3,200 psf of the final units in the development.
If the Government decides to sell the land as 99-year leasehold residential plots, it will probably parcel it out into more easily digestible pieces, consultants said.
Nearby land plots have sold for record prices. In 2007, SC Global bought The Ardmore, with a freehold land area of about 0.4ha, for $262 million, or a record $2,337 psf of gross floor area.
Back in 1999, Wing Tai paid $1,100 psf for its Draycott 8 site, at the time a record price for 99-year leasehold land.
FIONA CHAN
RGS site could be worth billions if sold: Analysts
ITS students may be sad to see it go, but property developers will be eagerly eyeing the plum plot of land that Raffles Girls' School (RGS) will leave behind if it relocates.
The school now sits on a prized centrally located site that is likely to be worth billions if it is converted into a residential plot, property consultants said yesterday.
'This is a very, very prime site,' said Mr Ho Eng Joo, executive director of investment sales at real estate firm Colliers International.
'It's been quite a long time since this kind of prime site has been released in the market, and at this size. There are no comparables, it's priceless,' he added.
RGS occupies one of the most coveted plots of land in Singapore, bounded on all four sides by some of the country's priciest residential areas: Ardmore Park, Draycott Park, Stevens Road and Anderson Road.
Given the location, the size of the plot is massive: 4.5ha, or 10 times the size of nearby The Ardmore and almost five times that of Anderson 18. It is about the size of the sprawling Ardmore Park.
Mr Ho believes the site could go for $1.6 billion to $2 billion, based on a plot ratio of 2.8, which is similar to that of nearby developments. This would work out to about $1,400 per sq ft (psf) of the total floor area, which could amount to 1.35 million sq ft.
Ms Chua Chor Hoon, head of South-east Asia research at DTZ Debenham Tie Leung, has an even higher estimate at well over $2 billion. This is based on a possible selling price of $2,800 to $3,200 psf of the final units in the development.
If the Government decides to sell the land as 99-year leasehold residential plots, it will probably parcel it out into more easily digestible pieces, consultants said.
Nearby land plots have sold for record prices. In 2007, SC Global bought The Ardmore, with a freehold land area of about 0.4ha, for $262 million, or a record $2,337 psf of gross floor area.
Back in 1999, Wing Tai paid $1,100 psf for its Draycott 8 site, at the time a record price for 99-year leasehold land.
FIONA CHAN
ST : Railway land valuation
May 28, 2010
Railway land valuation
THE valuation of land owned by Malayan Railway (KTM) in Singapore will be completed within a month, Khazanah Nasional's managing director Azman Mokhtar said yesterday.
'Then we'll work out commercially what is the best thing to do,' Mr Azman told reporters in Kuala Lumpur.
Khazanah and Singapore's Temasek Holdings, which will set up a joint company to develop the land, have already met and set up a working group, he said.
Asked if the valuation would be based on Singapore market rates, he said it was being done by independent parties and each side would present its own valuation.
'Some numbers have been mentioned but it is certainly substantial,' he said.
Mr Azman said the resolution of the decades-long railway land dispute was a 'breakthrough' for the two countries.
'It is not like I win, you lose, it is we both win. If you look at it carefully, the exchange is fair, it is good,' the Khazanah chief said.
He said he did not expect the issue of valuation to bog down the intended development of the KTM land.
'We need to see the valuation by both sides. The intention is to move forward,' he said, adding he hoped the matter could be concluded when Prime Minister Lee Hsien Loong visits Malaysia later next month.
BERNAMA
Railway land valuation
THE valuation of land owned by Malayan Railway (KTM) in Singapore will be completed within a month, Khazanah Nasional's managing director Azman Mokhtar said yesterday.
'Then we'll work out commercially what is the best thing to do,' Mr Azman told reporters in Kuala Lumpur.
Khazanah and Singapore's Temasek Holdings, which will set up a joint company to develop the land, have already met and set up a working group, he said.
Asked if the valuation would be based on Singapore market rates, he said it was being done by independent parties and each side would present its own valuation.
'Some numbers have been mentioned but it is certainly substantial,' he said.
Mr Azman said the resolution of the decades-long railway land dispute was a 'breakthrough' for the two countries.
'It is not like I win, you lose, it is we both win. If you look at it carefully, the exchange is fair, it is good,' the Khazanah chief said.
He said he did not expect the issue of valuation to bog down the intended development of the KTM land.
'We need to see the valuation by both sides. The intention is to move forward,' he said, adding he hoped the matter could be concluded when Prime Minister Lee Hsien Loong visits Malaysia later next month.
BERNAMA
ST : Raffles Girls' School may be relocating
May 28, 2010
Raffles Girls' School may be relocating
School may move closer to RI, due to Integrated Programme
By Liew Hanqing
FOLLOWING in the footsteps of school families coming together, Raffles Girls' School (Secondary) (RGS) looks set to become a neighbour of its brother school, Raffles Institution (RI).
While the school would neither confirm nor deny the move, it admitted that its current site at Anderson Road was no longer adequate for its growing co-curricular activity (CCA) needs.
Responding to queries from The Straits Times, principal Julie Hoo said: 'Our current campus at Anderson Road is good; there are, however, many new programmes and initiatives with the Raffles Programme in RGS. These are creating a need for more - and different - facilities.'
The school's population has hovered at the 1,800 mark the past few years.
The Raffles Programme is the six-year Integrated Programme which sees girls from RGS and boys from RI progress directly to the A levels at RI without having to take the O levels.
Other school families that have come together include the Hwa Chong family, comprising Nanyang Girls' High School and Hwa Chong Institution in Bukit Timah Road, and the Saint Andrew's family, comprising the junior and secondary schools and the junior college at Potong Pasir.
Sources said it is likely RGS will occupy the former Braddell-Westlake Secondary School site along Braddell Road, across the road from RI. A Ministry of Education (MOE) spokesman would say only that development plans for RGS were 'under review'.
Mrs Hoo said the school had approached MOE last year to help provide additional venues for CCA groups to hold practice sessions.
'MOE kindly agreed and allowed for a few of our CCA groups to train at the Braddell-Westlake site, which is conveniently located not too far from RGS,' Mrs Hoo said.
A spokesman for the Urban Redevelopment Authority said the site area of RGS' Anderson Road campus is about 4.5ha, while the Braddell-Westlake site is about 7.4ha, or slightly more than 1.5 times RGS' present size.
Alumnae responses to a potential relocation were mixed.
Miss Rachelle Goh, 25, a marketing executive, said: 'I feel that the soul is lost when you up and move from a place with so much history. It won't be the same.'
But not all alumnae are against the move.
Ms Chua Soh Kheng, 59, deputy president of SGP International Academy, said: 'A bigger campus with more modern facilities and resources would provide a better learning environment for the students, and support the school's needs.'
hanqing@sph.com.sg
Raffles Girls' School may be relocating
School may move closer to RI, due to Integrated Programme
By Liew Hanqing
FOLLOWING in the footsteps of school families coming together, Raffles Girls' School (Secondary) (RGS) looks set to become a neighbour of its brother school, Raffles Institution (RI).
While the school would neither confirm nor deny the move, it admitted that its current site at Anderson Road was no longer adequate for its growing co-curricular activity (CCA) needs.
Responding to queries from The Straits Times, principal Julie Hoo said: 'Our current campus at Anderson Road is good; there are, however, many new programmes and initiatives with the Raffles Programme in RGS. These are creating a need for more - and different - facilities.'
The school's population has hovered at the 1,800 mark the past few years.
The Raffles Programme is the six-year Integrated Programme which sees girls from RGS and boys from RI progress directly to the A levels at RI without having to take the O levels.
Other school families that have come together include the Hwa Chong family, comprising Nanyang Girls' High School and Hwa Chong Institution in Bukit Timah Road, and the Saint Andrew's family, comprising the junior and secondary schools and the junior college at Potong Pasir.
Sources said it is likely RGS will occupy the former Braddell-Westlake Secondary School site along Braddell Road, across the road from RI. A Ministry of Education (MOE) spokesman would say only that development plans for RGS were 'under review'.
Mrs Hoo said the school had approached MOE last year to help provide additional venues for CCA groups to hold practice sessions.
'MOE kindly agreed and allowed for a few of our CCA groups to train at the Braddell-Westlake site, which is conveniently located not too far from RGS,' Mrs Hoo said.
A spokesman for the Urban Redevelopment Authority said the site area of RGS' Anderson Road campus is about 4.5ha, while the Braddell-Westlake site is about 7.4ha, or slightly more than 1.5 times RGS' present size.
Alumnae responses to a potential relocation were mixed.
Miss Rachelle Goh, 25, a marketing executive, said: 'I feel that the soul is lost when you up and move from a place with so much history. It won't be the same.'
But not all alumnae are against the move.
Ms Chua Soh Kheng, 59, deputy president of SGP International Academy, said: 'A bigger campus with more modern facilities and resources would provide a better learning environment for the students, and support the school's needs.'
hanqing@sph.com.sg
BT : S'porean developers lauded at Fiabci Prix competition
Business Times - 28 May 2010
S'porean developers lauded at Fiabci Prix competition
By UMA SHANKARI
SINGAPOREAN developers continued to pick up honours at this year's Fiabci Prix d'Excellence competition, which recognises excellence in property development.
Far East Organization's mixed-use development Central came out tops in the office category, UOL Group's Pan Pacific Suzhou won the top prize in the hotel category and City Developments' The Sail trumped in the high-rise residential category.
Other projects by Singaporean developers finished as runners-up in their respective categories: Square 2/Novena Medical Center (by Far East Organization) in the specialised purpose-built category; One-north Residences (a joint venture between UOL, Kheng Leong and Low Keng Huat) in the residential category; and Jakarta Garden City (a township by Keppel Land in East Jakarta) in the low-rise residential category.
Fiabci is the French acronym for the International Real Estate Federation, which organises the annual Prix d'Excellence. Last year, three property projects in Singapore picked up honours in the competition.
Entrants are evaluated on five criteria: global concept, architecture and design, development and construction, community benefit and environmental impact, and financials and marketing.
This year's winners were announced last night at the gala dinner of the Fiabci World Congress held in Bali.
The win for Central marks Far East Organization's sixth Fiabci international real estate award.
Central, located above the Clarke Quay MRT station, is in the city's civic, cultural and tourist precinct. Far East, which won the site in a government land tender, said it set out to create a product that would be relevant to the community and complement the character of the area.
Built at a cost of $631 million, Central aims to integrate residential, lifestyle, business, community and transportation functions within one complex. It comprises two small office home office towers, a 25-storey office tower, a sky garden, recreational facilities and a retail podium. A 17,000 sq ft civic space was also purpose-built and donated to the National Volunteer & Philanthropy Centre to serve as a hub for public activities.
'As the area grows, Central is also evolving in tandem with the changing market profile, consumer behaviour and lifestyle trends,' said Far East Organization's executive director and chief operating officer Chia Boon Kuah.
UOL's Pan-Pacific Suzhou, a five-star, 481-room hotel, was recognised for mixing traditional Chinese architecture and contemporary design to capture the architectural essence of the Suzhou garden - such as open courtyards, flowing rivers, poetic Chinese landscape and an intimate sense of proportion. The jury citation described the hotel as being 'designed in harmony with the surrounding environment and existing structure'.
UOL chief operating officer Liam Wee Sin said that building the project was challenging as the developer had to 'respect the traditional architecture'.
Competitions such as the Fiabci Prix d'Excellence improve both the winning developer's brand as well as Singapore's, Mr Liam added.
'I strongly feel that as more and more Singaporean developers and buildings win global awards (such as the Fiabci award), we are in some sense contributing to Singapore becoming a vibrant city,' he said.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
S'porean developers lauded at Fiabci Prix competition
By UMA SHANKARI
SINGAPOREAN developers continued to pick up honours at this year's Fiabci Prix d'Excellence competition, which recognises excellence in property development.
Far East Organization's mixed-use development Central came out tops in the office category, UOL Group's Pan Pacific Suzhou won the top prize in the hotel category and City Developments' The Sail trumped in the high-rise residential category.
Other projects by Singaporean developers finished as runners-up in their respective categories: Square 2/Novena Medical Center (by Far East Organization) in the specialised purpose-built category; One-north Residences (a joint venture between UOL, Kheng Leong and Low Keng Huat) in the residential category; and Jakarta Garden City (a township by Keppel Land in East Jakarta) in the low-rise residential category.
Fiabci is the French acronym for the International Real Estate Federation, which organises the annual Prix d'Excellence. Last year, three property projects in Singapore picked up honours in the competition.
Entrants are evaluated on five criteria: global concept, architecture and design, development and construction, community benefit and environmental impact, and financials and marketing.
This year's winners were announced last night at the gala dinner of the Fiabci World Congress held in Bali.
The win for Central marks Far East Organization's sixth Fiabci international real estate award.
Central, located above the Clarke Quay MRT station, is in the city's civic, cultural and tourist precinct. Far East, which won the site in a government land tender, said it set out to create a product that would be relevant to the community and complement the character of the area.
Built at a cost of $631 million, Central aims to integrate residential, lifestyle, business, community and transportation functions within one complex. It comprises two small office home office towers, a 25-storey office tower, a sky garden, recreational facilities and a retail podium. A 17,000 sq ft civic space was also purpose-built and donated to the National Volunteer & Philanthropy Centre to serve as a hub for public activities.
'As the area grows, Central is also evolving in tandem with the changing market profile, consumer behaviour and lifestyle trends,' said Far East Organization's executive director and chief operating officer Chia Boon Kuah.
UOL's Pan-Pacific Suzhou, a five-star, 481-room hotel, was recognised for mixing traditional Chinese architecture and contemporary design to capture the architectural essence of the Suzhou garden - such as open courtyards, flowing rivers, poetic Chinese landscape and an intimate sense of proportion. The jury citation described the hotel as being 'designed in harmony with the surrounding environment and existing structure'.
UOL chief operating officer Liam Wee Sin said that building the project was challenging as the developer had to 'respect the traditional architecture'.
Competitions such as the Fiabci Prix d'Excellence improve both the winning developer's brand as well as Singapore's, Mr Liam added.
'I strongly feel that as more and more Singaporean developers and buildings win global awards (such as the Fiabci award), we are in some sense contributing to Singapore becoming a vibrant city,' he said.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Stanchart to lighten up, CCT gears up for $92m improvement
Business Times - 28 May 2010
Stanchart to lighten up, CCT gears up for $92m improvement
Bank gets ready to give up some space at Six Battery Road when lease expires next year
By KALPANA RASHIWALA
STANDARD Chartered Bank will be vacating about 70,000 sq ft at Six Battery Road when its lease at the building runs out next year. However, the bank will retain its remaining space of 129,000 sq ft in the building on which the lease expires in 2020. The latter space is understood to include the banking hall.
The building's owner, CapitaCommercial Trust (CCT), has already identified prospective tenants to take up the space Stanchart will be vacating, and will take advantage of the transitional downtime in occupancy during the changeover of tenants to execute a $92 million asset enhancement at the building, which will be done in phases from October this year to 2013 to minimise inconvenience to tenants.
Earlier this week, Six Battery Road was awarded the Building and Construction Authority's Green Mark Platinum award, the first time an operating office building here has won the highest Green Mark accolade. The award has been conferred for the proposed environmentally sustainable features CCT is implementing as part of the asset enhancement works for the 42-storey building. The Grade A office property contributed 22 per cent of CCT's net property income in Q1 this year and 'the asset enhancement ensures this robust income continues from this asset', said Lynette Leong, CEO of CapitaCommercial Trust Management Ltd (CCTML).
'We believe that market rents have reached a trough and we're positioning this asset for the recovery of the market and we believe this is an opportune time to undertake asset enhancement so that it will continue to offer value-for-money office accommodation to tenants and sustain the building's high occupancy and rental rates,' she added.
CCTML is projecting a return on investment of 8.1 per cent on a stabilised basis for the $92 million asset enhancement works based on incremental annual net property income of $7.4 million once the works are completed. A fifth of the increase in income will arise from cost savings due to improved operating efficiency, while the other 80 per cent will be from higher rental projection. CCTML expects rents in the building to appreciate 10-15 per cent arising from superior specifications following the upgrade.
The increase in value of the building (net of the investment cost) is projected at about $82.9 million when the works are completed at end-2013. Six Battery Road was valued at $1.114 billion at end-2009. CCT will fund the asset enhancement from internal cash resources.
The upgrading works will kick off in October with the ground-floor lift lobby, turnstiles and reception area. Other planned works include redesigning of the chiller plant room system, incorporating a thermal energy storage system which will improve efficiency. The onyx wall in the main lobby will make way for the largest 'green' wall with living plants in a Singapore office building. This will help reduce indoor heat gain; the onyx will be reused in other parts of the lobby.
Rainwater will be harvested to irrigate the green wall. Exhaust air will be used to power a wind turbine that will in turn power the green wall's irrigation pumps and lighting. To nudge tenants to use cleaner emission vehicles, CCT will set aside carpark lots for hybrid cars.
The canopy at the building's entrance will be extended to cover the entire length of the drop-off area. For lettable areas, CCT will raise ceiling height from 2.6 metres to 2.8 metres and install variable air volume box and carbon dioxide sensors to improve indoor air quality. But these works will be done only for units for which leases have expired, before new tenants move in. The intention is to tie the upgrading of interior office spaces with the natural lease expiry profile. Six Battery Road received Temporary Occupation Permit in 1984 and was last retrofitted in 2000 at a cost of about $37 million.
The space to be vacated by Stanchart covers six to seven floors and CCTML's plan is to upgrade the interiors of this space before leasing it out to other tenants.
The 70,000 sq ft that Stanchart will be giving up represents 14 per cent of the building's net lettable area of 496,851 sq ft and 2 per cent of the 3.3 million sq ft total net lettable space in the trust's portfolio.
Stanchart's two main premises will be at Marina Bay Financial Centre (which it will start to move to by Q4 2010) and Changi Business Park (which it has already moved into). However, Stanchart will continue to house its flagship branch at Six Battery Road. Some consumer banking and group functions will also remain at this location, a Stanchart spokesman said.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Stanchart to lighten up, CCT gears up for $92m improvement
Bank gets ready to give up some space at Six Battery Road when lease expires next year
By KALPANA RASHIWALA
STANDARD Chartered Bank will be vacating about 70,000 sq ft at Six Battery Road when its lease at the building runs out next year. However, the bank will retain its remaining space of 129,000 sq ft in the building on which the lease expires in 2020. The latter space is understood to include the banking hall.
The building's owner, CapitaCommercial Trust (CCT), has already identified prospective tenants to take up the space Stanchart will be vacating, and will take advantage of the transitional downtime in occupancy during the changeover of tenants to execute a $92 million asset enhancement at the building, which will be done in phases from October this year to 2013 to minimise inconvenience to tenants.
Earlier this week, Six Battery Road was awarded the Building and Construction Authority's Green Mark Platinum award, the first time an operating office building here has won the highest Green Mark accolade. The award has been conferred for the proposed environmentally sustainable features CCT is implementing as part of the asset enhancement works for the 42-storey building. The Grade A office property contributed 22 per cent of CCT's net property income in Q1 this year and 'the asset enhancement ensures this robust income continues from this asset', said Lynette Leong, CEO of CapitaCommercial Trust Management Ltd (CCTML).
'We believe that market rents have reached a trough and we're positioning this asset for the recovery of the market and we believe this is an opportune time to undertake asset enhancement so that it will continue to offer value-for-money office accommodation to tenants and sustain the building's high occupancy and rental rates,' she added.
CCTML is projecting a return on investment of 8.1 per cent on a stabilised basis for the $92 million asset enhancement works based on incremental annual net property income of $7.4 million once the works are completed. A fifth of the increase in income will arise from cost savings due to improved operating efficiency, while the other 80 per cent will be from higher rental projection. CCTML expects rents in the building to appreciate 10-15 per cent arising from superior specifications following the upgrade.
The increase in value of the building (net of the investment cost) is projected at about $82.9 million when the works are completed at end-2013. Six Battery Road was valued at $1.114 billion at end-2009. CCT will fund the asset enhancement from internal cash resources.
The upgrading works will kick off in October with the ground-floor lift lobby, turnstiles and reception area. Other planned works include redesigning of the chiller plant room system, incorporating a thermal energy storage system which will improve efficiency. The onyx wall in the main lobby will make way for the largest 'green' wall with living plants in a Singapore office building. This will help reduce indoor heat gain; the onyx will be reused in other parts of the lobby.
Rainwater will be harvested to irrigate the green wall. Exhaust air will be used to power a wind turbine that will in turn power the green wall's irrigation pumps and lighting. To nudge tenants to use cleaner emission vehicles, CCT will set aside carpark lots for hybrid cars.
The canopy at the building's entrance will be extended to cover the entire length of the drop-off area. For lettable areas, CCT will raise ceiling height from 2.6 metres to 2.8 metres and install variable air volume box and carbon dioxide sensors to improve indoor air quality. But these works will be done only for units for which leases have expired, before new tenants move in. The intention is to tie the upgrading of interior office spaces with the natural lease expiry profile. Six Battery Road received Temporary Occupation Permit in 1984 and was last retrofitted in 2000 at a cost of about $37 million.
The space to be vacated by Stanchart covers six to seven floors and CCTML's plan is to upgrade the interiors of this space before leasing it out to other tenants.
The 70,000 sq ft that Stanchart will be giving up represents 14 per cent of the building's net lettable area of 496,851 sq ft and 2 per cent of the 3.3 million sq ft total net lettable space in the trust's portfolio.
Stanchart's two main premises will be at Marina Bay Financial Centre (which it will start to move to by Q4 2010) and Changi Business Park (which it has already moved into). However, Stanchart will continue to house its flagship branch at Six Battery Road. Some consumer banking and group functions will also remain at this location, a Stanchart spokesman said.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Industrial plot near Pioneer MRT available
Business Times - 28 May 2010
Industrial plot near Pioneer MRT available
THE Urban Redevelopment Authority (URA) has made a 30-year leasehold industrial site at Pioneer Road North / Soon Lee Street available for sale.
The land parcel is on the reserve list, and interested developers can ask URA to put it up for tender.
The site spans 155,427 sq ft and has a maximum gross plot ratio of 2.0. It is zoned for Business 2 use, making it suitable for clean industries and other activities such as vehicle repair and furniture production.
The land parcel is near Pioneer MRT station. It is also right next to a site which URA sold in December last year. KNG Realty beat stiff competition from seven other developers to win that site then, with a bid of $19.4 million or $48 per sq ft per plot ratio (psf ppr).
Demand for industrial sites in the last few months has been strong as the economy picked up. In April, the tender of a larger 60-year site at Woodlands Avenue 12 drew six bids, with the highest one at $65.2 million or $75 psf ppr.
Colliers International said this month that demand could grow further, as manufacturers expand their operations and institutional funds return to scout for investments. Already, the average monthly gross rent at single-user factories in the central part of Singapore has increased by 3.8 per cent to $1.35 psf between October last year and March this year. Capital values of such properties have also risen.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Industrial plot near Pioneer MRT available
THE Urban Redevelopment Authority (URA) has made a 30-year leasehold industrial site at Pioneer Road North / Soon Lee Street available for sale.
The land parcel is on the reserve list, and interested developers can ask URA to put it up for tender.
The site spans 155,427 sq ft and has a maximum gross plot ratio of 2.0. It is zoned for Business 2 use, making it suitable for clean industries and other activities such as vehicle repair and furniture production.
The land parcel is near Pioneer MRT station. It is also right next to a site which URA sold in December last year. KNG Realty beat stiff competition from seven other developers to win that site then, with a bid of $19.4 million or $48 per sq ft per plot ratio (psf ppr).
Demand for industrial sites in the last few months has been strong as the economy picked up. In April, the tender of a larger 60-year site at Woodlands Avenue 12 drew six bids, with the highest one at $65.2 million or $75 psf ppr.
Colliers International said this month that demand could grow further, as manufacturers expand their operations and institutional funds return to scout for investments. Already, the average monthly gross rent at single-user factories in the central part of Singapore has increased by 3.8 per cent to $1.35 psf between October last year and March this year. Capital values of such properties have also risen.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Thursday, May 27, 2010
ST : Jalan Kayu businesses facing closure
May 27, 2010
Jalan Kayu businesses facing closure
Despite 2 years of notice, tenants say it's hard to relocate
By Jessica Lim
SEVERAL businesses at Jalan Kayu are caught in a bind, partly of their own making: Their leases are due to expire at the end of the year, and they are having poor luck looking for new sites.
The 18 tenants at Seletar West Farmway 2, 4, 5, 6 and 7 - 16 plant nurseries, a kindergarten and a halfway house - were told as early as two years ago that they would have to go.
But they could relocate to only Government-approved locations, and most have had a hard time finding alternative sites.
The Straits Times understands that only two have managed to set up shop elsewhere. The others are still looking, but most say they are resigned to closing down if their searches prove futile.
The 20ha plot - roughly the size of 13 football fields - has been slated for new roads and industrial development.
When contacted, the Singapore Land Authority (SLA) said it had given the tenants ample notice. It added that tenants have been told several times to move. But the affected businesses countered that they have tried, but have been unsuccessful in their searches for new locations.
The nurseries, especially, said their businesses require large tracts of land of more than a hectare in size. The tenants also said cost was another factor. The going rates for sites up for tender were much more costly - about 20 times higher, they said.
'We need space and approved land. This makes it really difficult to find a new location,' said Mr Patrick Tan, who manages a 1.2ha nursery owned by Far East Orchids. 'I am searching like crazy, but there is nowhere to go.'
The 48-year-old currently pays $2,000 a month in rent. He said he had considered a 3ha plot of land in Queenstown that the Government put up for tender recently. 'But after calculations, I realised there was no way I could afford the $35,000 rental per month,' he said, adding that he is unsure of his next move.
The owner of Yee Peng Orchid Nursery Ho Wai Ron, 50, has decided what to do: He will give up his 26-year-old business.
'Land is so scarce here and our leases keep expiring and we have to move again and again,' said Mr Ho, who said the company has moved four times so far. 'It is too disruptive.'
The SLA said it is working closely with other government agencies on the possibility of a further extension.
'But tenants are aware that they will have to move if this is not possible,' said its spokesman.
limjess@sph.com.sg
Jalan Kayu businesses facing closure
Despite 2 years of notice, tenants say it's hard to relocate
By Jessica Lim
SEVERAL businesses at Jalan Kayu are caught in a bind, partly of their own making: Their leases are due to expire at the end of the year, and they are having poor luck looking for new sites.
The 18 tenants at Seletar West Farmway 2, 4, 5, 6 and 7 - 16 plant nurseries, a kindergarten and a halfway house - were told as early as two years ago that they would have to go.
But they could relocate to only Government-approved locations, and most have had a hard time finding alternative sites.
The Straits Times understands that only two have managed to set up shop elsewhere. The others are still looking, but most say they are resigned to closing down if their searches prove futile.
The 20ha plot - roughly the size of 13 football fields - has been slated for new roads and industrial development.
When contacted, the Singapore Land Authority (SLA) said it had given the tenants ample notice. It added that tenants have been told several times to move. But the affected businesses countered that they have tried, but have been unsuccessful in their searches for new locations.
The nurseries, especially, said their businesses require large tracts of land of more than a hectare in size. The tenants also said cost was another factor. The going rates for sites up for tender were much more costly - about 20 times higher, they said.
'We need space and approved land. This makes it really difficult to find a new location,' said Mr Patrick Tan, who manages a 1.2ha nursery owned by Far East Orchids. 'I am searching like crazy, but there is nowhere to go.'
The 48-year-old currently pays $2,000 a month in rent. He said he had considered a 3ha plot of land in Queenstown that the Government put up for tender recently. 'But after calculations, I realised there was no way I could afford the $35,000 rental per month,' he said, adding that he is unsure of his next move.
The owner of Yee Peng Orchid Nursery Ho Wai Ron, 50, has decided what to do: He will give up his 26-year-old business.
'Land is so scarce here and our leases keep expiring and we have to move again and again,' said Mr Ho, who said the company has moved four times so far. 'It is too disruptive.'
The SLA said it is working closely with other government agencies on the possibility of a further extension.
'But tenants are aware that they will have to move if this is not possible,' said its spokesman.
limjess@sph.com.sg
ST : Orang Asli tribe wins $2.7m in 15-year land case
May 27, 2010
Orang Asli tribe wins $2.7m in 15-year land case
KUALA LUMPUR: In a landmark settlement, members of an indigenous tribe in Malaysia have won RM6.5 million (S$2.7 million) from highway authorities for forcibly taking away their ancestral land for development, a rights activist said yesterday.
The settlement ended a 15-year legal battle for the Temuan tribe and could bolster more than 200 other land-rights cases pending in court, said Mr Colin Nicholas, a coordinator of the Centre for Orang Asli Concerns.
The Temuan are among 18 ethnic tribes collectively known as Orang Asli, which means 'original people' in the Malay language. Many of the tribespeople live in, or near, the rainforest of Peninsular Malaysia, where they mainly grow crops and hunt.
Mr Nicholas said the settlement was recorded in the Federal Court, the country's top court, after the Malaysian Highway Authority, the federal government and the contractor withdrew their appeal and agreed to compensate some 26 Temuan families.
'It is a landmark settlement that recognised that the Orang Asli have native-title rights to their traditional land,' he said. Land rights are a key concern for Malaysia's indigenous people, many of whom have been pushed off land without compensation.
The highway authorities and government officials could not be reached for comment.
The Temuan families filed a suit after authorities forcibly acquired 15.6ha of land in central Selangor state in 1995 to construct a highway to the Kuala Lumpur International Airport without paying any compensation. The High Court ruled in 2002 that the Orang Asli enjoyed native-title rights and should be compensated. The verdict was upheld by the Court of Appeal in 2005 but the defendants appealed to the Federal Court.
Mr Nicholas said the deadlock was broken in April last year after the opposition-led Selangor government withdrew from the suit in line with its promise to recognise the Orang Asli land rights.
The withdrawal placed the other defendants in a difficult position as their argument was based on the fact that the state owned the land, he said.
ASSOCIATED PRESS
Orang Asli tribe wins $2.7m in 15-year land case
KUALA LUMPUR: In a landmark settlement, members of an indigenous tribe in Malaysia have won RM6.5 million (S$2.7 million) from highway authorities for forcibly taking away their ancestral land for development, a rights activist said yesterday.
The settlement ended a 15-year legal battle for the Temuan tribe and could bolster more than 200 other land-rights cases pending in court, said Mr Colin Nicholas, a coordinator of the Centre for Orang Asli Concerns.
The Temuan are among 18 ethnic tribes collectively known as Orang Asli, which means 'original people' in the Malay language. Many of the tribespeople live in, or near, the rainforest of Peninsular Malaysia, where they mainly grow crops and hunt.
Mr Nicholas said the settlement was recorded in the Federal Court, the country's top court, after the Malaysian Highway Authority, the federal government and the contractor withdrew their appeal and agreed to compensate some 26 Temuan families.
'It is a landmark settlement that recognised that the Orang Asli have native-title rights to their traditional land,' he said. Land rights are a key concern for Malaysia's indigenous people, many of whom have been pushed off land without compensation.
The highway authorities and government officials could not be reached for comment.
The Temuan families filed a suit after authorities forcibly acquired 15.6ha of land in central Selangor state in 1995 to construct a highway to the Kuala Lumpur International Airport without paying any compensation. The High Court ruled in 2002 that the Orang Asli enjoyed native-title rights and should be compensated. The verdict was upheld by the Court of Appeal in 2005 but the defendants appealed to the Federal Court.
Mr Nicholas said the deadlock was broken in April last year after the opposition-led Selangor government withdrew from the suit in line with its promise to recognise the Orang Asli land rights.
The withdrawal placed the other defendants in a difficult position as their argument was based on the fact that the state owned the land, he said.
ASSOCIATED PRESS
ST : Singapore keeps ranking as most livable Asian city
May 27, 2010
Singapore keeps ranking as most livable Asian city
SINGAPORE retained its ranking as the Asian city with the best quality of life, while Hong Kong lags behind rival financial hubs as it struggles with air pollution, according to a survey by Mercer Consulting.
Singapore ranks 28th among 221 cities, Tokyo is 40th and Hong Kong is placed 71st, the list shows. Hong Kong also trails behind New York City (No. 49), and smaller Japanese cities such as Kobe and Yokohama (tied for No. 41), Osaka (No. 51) and Nagoya (No. 57), according to the list.
The cities are rated on 10 factors including infrastructure, political and social environment, and access to medical care. Hong Kong scored poorly on health concerns, said Ms Cathy Loose, a Tokyo- based Mercer officer who helped compile the list.
'The government hasn't done very much to introduce green measures or reduce pollution,' Ms Loose said in an interview. The list serves as a compensation guide for expatriate relocation.
Hong Kong's score of about 94 points is little changed, which leaves it 5 points above the level at which Mercer says hardship allowances should be paid to workers who relocate. For cities including Beijing and Mumbai, a 10 per cent allowance is suggested, while an allowance of up to 28 per cent is suggested for Phnom Penh.
Hong Kong's air pollution was its worst on record during the past two quarters, sparking regular government health warnings. To address the problem, the government introduced a Bill last month proposing a ban on idling vehicle engines, among other measures.
Said HK Environmental Protection Department spokesman Eva Wong, in an e-mailed response to questions from Bloomberg: 'To tackle local emissions, we have been implementing very stringent control measures which are equivalent to those required by other advanced countries.'
The government is working with local bus companies and neighbouring cities in southern China to curb air pollution, and is investing HK$300 million (S$54.5 million) to develop low-carbon transport technology to cut roadside emissions, she said.
Singapore lags behind Hong Kong only on measurements of personal freedom and media censorship, said Ms Loose. Mercer is a unit of Marsh and McLennan.
In a Mercer statement, Ms Loose said: 'In addition to quality of living, this year's ranking also identifies the cities with the best eco-ranking based on water availability and drinkability, waste removal, quality of sewerage systems, air pollution and traffic congestion.'
For Asia, Kobe (No. 9) came out on top in eco city ranking, followed by Singapore (No. 22), while Dhaka (No. 220) ranked the lowest, she added.
Hong Kong's effort to cut pollution and protect the environment trails behind that of Havana and ranks just above Damascus, the list shows. Overall, Vienna retains the top spot as the world's best city to live in.
BLOOMBERG
Singapore keeps ranking as most livable Asian city
SINGAPORE retained its ranking as the Asian city with the best quality of life, while Hong Kong lags behind rival financial hubs as it struggles with air pollution, according to a survey by Mercer Consulting.
Singapore ranks 28th among 221 cities, Tokyo is 40th and Hong Kong is placed 71st, the list shows. Hong Kong also trails behind New York City (No. 49), and smaller Japanese cities such as Kobe and Yokohama (tied for No. 41), Osaka (No. 51) and Nagoya (No. 57), according to the list.
The cities are rated on 10 factors including infrastructure, political and social environment, and access to medical care. Hong Kong scored poorly on health concerns, said Ms Cathy Loose, a Tokyo- based Mercer officer who helped compile the list.
'The government hasn't done very much to introduce green measures or reduce pollution,' Ms Loose said in an interview. The list serves as a compensation guide for expatriate relocation.
Hong Kong's score of about 94 points is little changed, which leaves it 5 points above the level at which Mercer says hardship allowances should be paid to workers who relocate. For cities including Beijing and Mumbai, a 10 per cent allowance is suggested, while an allowance of up to 28 per cent is suggested for Phnom Penh.
Hong Kong's air pollution was its worst on record during the past two quarters, sparking regular government health warnings. To address the problem, the government introduced a Bill last month proposing a ban on idling vehicle engines, among other measures.
Said HK Environmental Protection Department spokesman Eva Wong, in an e-mailed response to questions from Bloomberg: 'To tackle local emissions, we have been implementing very stringent control measures which are equivalent to those required by other advanced countries.'
The government is working with local bus companies and neighbouring cities in southern China to curb air pollution, and is investing HK$300 million (S$54.5 million) to develop low-carbon transport technology to cut roadside emissions, she said.
Singapore lags behind Hong Kong only on measurements of personal freedom and media censorship, said Ms Loose. Mercer is a unit of Marsh and McLennan.
In a Mercer statement, Ms Loose said: 'In addition to quality of living, this year's ranking also identifies the cities with the best eco-ranking based on water availability and drinkability, waste removal, quality of sewerage systems, air pollution and traffic congestion.'
For Asia, Kobe (No. 9) came out on top in eco city ranking, followed by Singapore (No. 22), while Dhaka (No. 220) ranked the lowest, she added.
Hong Kong's effort to cut pollution and protect the environment trails behind that of Havana and ranks just above Damascus, the list shows. Overall, Vienna retains the top spot as the world's best city to live in.
BLOOMBERG
ST : Beijing acts on forced home demolitions
May 27, 2010
LAND TROUBLES
Beijing acts on forced home demolitions
Local governments must heed 'reasonable demands' of residents
BEIJING: China's Cabinet has issued an urgent notice to local governments, urging them to set up and implement new compensation standards for land acquisition before July.
The move follows a string of violent confrontations triggered by forced evictions, some resulting in the deaths of protesting residents.
Local governments will be required to pay heed to 'reasonable' demands of people whose homes are to be pulled down, the official Xinhua news agency's Outlook magazine reported on Monday.
Officials responsible for 'vicious incidents' caused by demolitions or land requisition will face penalties, the document from the State Council, or Chinese Cabinet, said.
According to the document, local governments that have already issued compensation standards for home demolition should strictly follow the rules. Those which have yet to issue the standards should do so by the end of next month. If the existing compensation standards are considered low, local governments are required to update the rules as soon as possible.
The ministries of land and resources and supervision on Tuesday published a list of 16 city governments that had occupied 40,666ha of land without obtaining proper certification, the Shanghai Daily reported yesterday.
A total of 1,932 people have been referred to prosecutors over such matters.
Illegal demolitions have made headlines frequently. In the latest case, the local government of a poverty-stricken county in north China's Hebei province pulled down houses of more than 1,000 families to accomplish what it called a 'county renovation plan', state broadcaster CCTV said on Monday.
Officials at the Guangping county, in a bid to win a good appraisal from the higher authorities, drafted the renovation plan early this year, including removing old houses, building 10 major streets, increasing green areas by one million sq m, and constructing six scenic spots.
The Guangping government received 130 million yuan (S$27 million) in revenue, while the cost of the renovation plan is estimated at two billion yuan, CCTV said.
Houses spread over more than 330,000 sq m, belonging to 1,000 urban and rural households, were demolished in 10 days in late March. No compensation contracts for land requisition or any agreements for resettlement were signed.
Local residents said only some of them had received demolition notices from the government, while others did not receive any notice or document until their houses were torn down, CCTV reported.
Most of the people received compensations of 300 to 400 yuan per sq m for their properties, when the average price for local residential housing has reached 1,500 yuan per sq m.
Ms Li Yunde, a local farmer, said the county government tore down her five-room house and confiscated her 2,000 sq m farmland.
Compensated with only 89,000 yuan, Ms Li and her husband are living in a 10 sq m tent on the ruins of their home. She said the money was not enough for buying another house.
Mr Wang Weiyu, an official with the county government, told CCTV that the county will build several hundred apartments for relocation purposes, and the price will not surpass 900 yuan per sq m. But it is not known when construction will start.
CHINA DAILY/ASIA NEWS NETWORK
Farmer Xiang Wenjiang in front of his house amid newly constructed residential buildings in Gushi, Henan province, in March. The local authorities have tried to evict him, but he is refusing to move until he is properly compensated. -- PHOTO: REUTERS
LAND TROUBLES
Beijing acts on forced home demolitions
Local governments must heed 'reasonable demands' of residents
BEIJING: China's Cabinet has issued an urgent notice to local governments, urging them to set up and implement new compensation standards for land acquisition before July.
The move follows a string of violent confrontations triggered by forced evictions, some resulting in the deaths of protesting residents.
Local governments will be required to pay heed to 'reasonable' demands of people whose homes are to be pulled down, the official Xinhua news agency's Outlook magazine reported on Monday.
Officials responsible for 'vicious incidents' caused by demolitions or land requisition will face penalties, the document from the State Council, or Chinese Cabinet, said.
According to the document, local governments that have already issued compensation standards for home demolition should strictly follow the rules. Those which have yet to issue the standards should do so by the end of next month. If the existing compensation standards are considered low, local governments are required to update the rules as soon as possible.
The ministries of land and resources and supervision on Tuesday published a list of 16 city governments that had occupied 40,666ha of land without obtaining proper certification, the Shanghai Daily reported yesterday.
A total of 1,932 people have been referred to prosecutors over such matters.
Illegal demolitions have made headlines frequently. In the latest case, the local government of a poverty-stricken county in north China's Hebei province pulled down houses of more than 1,000 families to accomplish what it called a 'county renovation plan', state broadcaster CCTV said on Monday.
Officials at the Guangping county, in a bid to win a good appraisal from the higher authorities, drafted the renovation plan early this year, including removing old houses, building 10 major streets, increasing green areas by one million sq m, and constructing six scenic spots.
The Guangping government received 130 million yuan (S$27 million) in revenue, while the cost of the renovation plan is estimated at two billion yuan, CCTV said.
Houses spread over more than 330,000 sq m, belonging to 1,000 urban and rural households, were demolished in 10 days in late March. No compensation contracts for land requisition or any agreements for resettlement were signed.
Local residents said only some of them had received demolition notices from the government, while others did not receive any notice or document until their houses were torn down, CCTV reported.
Most of the people received compensations of 300 to 400 yuan per sq m for their properties, when the average price for local residential housing has reached 1,500 yuan per sq m.
Ms Li Yunde, a local farmer, said the county government tore down her five-room house and confiscated her 2,000 sq m farmland.
Compensated with only 89,000 yuan, Ms Li and her husband are living in a 10 sq m tent on the ruins of their home. She said the money was not enough for buying another house.
Mr Wang Weiyu, an official with the county government, told CCTV that the county will build several hundred apartments for relocation purposes, and the price will not surpass 900 yuan per sq m. But it is not known when construction will start.
CHINA DAILY/ASIA NEWS NETWORK
Farmer Xiang Wenjiang in front of his house amid newly constructed residential buildings in Gushi, Henan province, in March. The local authorities have tried to evict him, but he is refusing to move until he is properly compensated. -- PHOTO: REUTERS
BT : Committed to the green cause
Business Times - 27 May 2010
Committed to the green cause
Sustainability is an inherent feature of RSP's work as it strives for architectural excellence. CHAN YUPING reports
A COMMITMENT to architecture and engineering that promote sustainability is at the forefront of RSP Architects Planners & Engineers' business. And the company has been recognised for this with six BCA Green Mark awards this year, including the Platinum awards for Woh Hup Building and Six Battery Road, and GoldPlus awards for the Caterpillar Remanufacturing facility, the Interlace and Farrer Court.
Winning these high-level awards was no easy feat. 'It's an integrated process,' says RSP director Vivien Heng. 'All disciplines have to work towards the common goal of squeezing out every last bit of energy savings.'
RSP differentiates itself from other companies by offering a one-stop shop for services in architecture, city planning, urban design, civil and structural engineering, mechanical and electrical engineering and interior design. This multi-disciplinary approach is the key driver of the company's success, alongside a commitment to provide top-quality solutions at every step of the value chain.
Being green is an indispensable part of RSP's mission to maintain the highest professional standards, says managing director Lee Kut Cheung.
The collective effort between RSP and Caterpillar SARL Singapore to design Caterpillar's remanufacturing facility here was catalysed by a mutual conviction to being green - right down to the nuts and bolts.
Recycled containers were used as temporary offices on site. A more environment- friendly concrete aggregate with 53 per cent recycled content was used to build pre-cast drains, kerbs and draw pits.
The remanufacturing concept testifies to Caterpillar's green commitment. It involves returning end-of-life products to their core condition, then re-using about 60 per cent of the original parts. This helps keep non-renewable resources in circulation for multiple lifetimes.
'The integrative solution-finding and collaborative approach adopted by all parties and good level of detail in the design helped us achieve a building that is highly functional, sustainable and cost effective,' says Christopher Healy, engineering manager of Caterpillar's remanufacturing division in Singapore.
NeWater meets 80 per cent of the facility's water needs, while precision controls in its air-conditioning, lighting and ventilation systems produce sizeable electricity savings. The estimated energy savings from green features is more than 1.7 million kilowatt hours per year, and water savings are about 118 million litres a year.
'Green design has not only reduced operating costs by reducing energy, water and material use, it has also facilitated good and safe operational maintainability, which is important to Caterpillar as the building's occupier,' says Mr Healy.
Being client-oriented is undoubtedly one of RSP's strengths. 'As each project comes with its own needs, we approach each design to satisfy the requirements for that project,' says managing director Mr Lee. 'We don't impose a particular style prematurely on a project. We work with clients and take heavy responsibility for delivery throughout the process.'
RSP deploys specialised talent at each point from design to completion to maximise various skill sets, while ensuring continuity through the supervision and counsel of senior management staff.
RSP has more than 50 years of experience and its work has included a wide range of projects, from US$5 million to US$310 million in value. It is well represented in every sector, such as commercial, industrial, institutional, recreational and residential, with major projects including ION Orchard, Republic Plaza, Admore Park, Wheelock Place, LaSalle College of the Arts and the Clarke Quay Redevelopment.
Internationalisation is also a priority for the company. It has 12 offices worldwide, with India being the pride of its overseas ventures. RSP Design Consultants (India) has grown since 1996 to encompass more than 300 staff and five offices - in Bangalore, Hyderabad, Mumbai, Chennai and Gurgaon.
RSP has consistently won Platinum, GoldPlus and Gold BCA Green Mark awards since the scheme was launched in 2005. A milestone for the company was a Platinum Green Mark award in 2007 for its work on the Xilinx Asia-Pacific headquarters. Key features of the headquarters include energy-saving lighting computerised to function according to the light flow of the building, and landscape irrigation using recycled condensate water.
'In addition to the design of a building, there must be trained facilities management to ensure the building can be operated in a sustainable way,' says Mr Lee, who points out that every project must be scrutinised with truly green intent before tangible benefits can be reaped. This green intent should permeate throughout the process, from design to implementation and subsequent operations.
Ms Heng says people should not underestimate the power of passive design. 'Once a building is put in the right orientation, with the right heat buffers, air-conditioning is not needed to power it to the same extent any more,' she says. 'Many 'free' features such as this only come with a firm grasp of renewable energy.'
Being green also makes economic sense. In the long run, energy and water savings offset the upfront costs of installing green features. And more often than not, these cost savings are sustained.
Caterpillar's Mr Healy says: 'The timing of our project here, in the midst of a major recession, drove us all to a building design that eliminates unnecessary costs and maximises efficiency. The team led by RSP has a good understanding of our complex project requirements and our commitment to sustainability.'
Sustainability is an inherent feature of RSP's work as it strives for architectural excellence. 'Green isn't something new,' says Mr Lee. 'As architects, we have a fundamental responsibility to respond to the environment and uphold the highest professional standards. Being green is naturally part and parcel of our design process.'
With 10 Platinum and GoldPlus BCA Green Mark awards under its belt, RSP hopes to continue to play a major role in promoting sustainability within the architectural and engineering industries. Going forward, it also hopes to remain up-to-date with new technology in the market to enhance its efforts in sustainable architecture.
Noting that one of the world's largest solar panel manufacturing complexes is being built in Singapore by Norwegian company Renewable Energy Corporation, and is set for completion soon, Mr Lee says great advances in sustainability can be expected from this little red dot.
'Singapore plays a small part in manufacturing and consumption relative to other countries, but the fact that we are taking it nonetheless as seriously as other countries speaks well of us as a global citizen,' he says.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Responsible planning: RSP Architects won the GoldPlus award for the Caterpillar facility, where green design helped lower operating costs by reducing energy, water and material use
Xilinx Asia-Pacific HQ: Its energy-saving lighting is computerised to function according to the light flow of the building
Committed to the green cause
Sustainability is an inherent feature of RSP's work as it strives for architectural excellence. CHAN YUPING reports
A COMMITMENT to architecture and engineering that promote sustainability is at the forefront of RSP Architects Planners & Engineers' business. And the company has been recognised for this with six BCA Green Mark awards this year, including the Platinum awards for Woh Hup Building and Six Battery Road, and GoldPlus awards for the Caterpillar Remanufacturing facility, the Interlace and Farrer Court.
Winning these high-level awards was no easy feat. 'It's an integrated process,' says RSP director Vivien Heng. 'All disciplines have to work towards the common goal of squeezing out every last bit of energy savings.'
RSP differentiates itself from other companies by offering a one-stop shop for services in architecture, city planning, urban design, civil and structural engineering, mechanical and electrical engineering and interior design. This multi-disciplinary approach is the key driver of the company's success, alongside a commitment to provide top-quality solutions at every step of the value chain.
Being green is an indispensable part of RSP's mission to maintain the highest professional standards, says managing director Lee Kut Cheung.
The collective effort between RSP and Caterpillar SARL Singapore to design Caterpillar's remanufacturing facility here was catalysed by a mutual conviction to being green - right down to the nuts and bolts.
Recycled containers were used as temporary offices on site. A more environment- friendly concrete aggregate with 53 per cent recycled content was used to build pre-cast drains, kerbs and draw pits.
The remanufacturing concept testifies to Caterpillar's green commitment. It involves returning end-of-life products to their core condition, then re-using about 60 per cent of the original parts. This helps keep non-renewable resources in circulation for multiple lifetimes.
'The integrative solution-finding and collaborative approach adopted by all parties and good level of detail in the design helped us achieve a building that is highly functional, sustainable and cost effective,' says Christopher Healy, engineering manager of Caterpillar's remanufacturing division in Singapore.
NeWater meets 80 per cent of the facility's water needs, while precision controls in its air-conditioning, lighting and ventilation systems produce sizeable electricity savings. The estimated energy savings from green features is more than 1.7 million kilowatt hours per year, and water savings are about 118 million litres a year.
'Green design has not only reduced operating costs by reducing energy, water and material use, it has also facilitated good and safe operational maintainability, which is important to Caterpillar as the building's occupier,' says Mr Healy.
Being client-oriented is undoubtedly one of RSP's strengths. 'As each project comes with its own needs, we approach each design to satisfy the requirements for that project,' says managing director Mr Lee. 'We don't impose a particular style prematurely on a project. We work with clients and take heavy responsibility for delivery throughout the process.'
RSP deploys specialised talent at each point from design to completion to maximise various skill sets, while ensuring continuity through the supervision and counsel of senior management staff.
RSP has more than 50 years of experience and its work has included a wide range of projects, from US$5 million to US$310 million in value. It is well represented in every sector, such as commercial, industrial, institutional, recreational and residential, with major projects including ION Orchard, Republic Plaza, Admore Park, Wheelock Place, LaSalle College of the Arts and the Clarke Quay Redevelopment.
Internationalisation is also a priority for the company. It has 12 offices worldwide, with India being the pride of its overseas ventures. RSP Design Consultants (India) has grown since 1996 to encompass more than 300 staff and five offices - in Bangalore, Hyderabad, Mumbai, Chennai and Gurgaon.
RSP has consistently won Platinum, GoldPlus and Gold BCA Green Mark awards since the scheme was launched in 2005. A milestone for the company was a Platinum Green Mark award in 2007 for its work on the Xilinx Asia-Pacific headquarters. Key features of the headquarters include energy-saving lighting computerised to function according to the light flow of the building, and landscape irrigation using recycled condensate water.
'In addition to the design of a building, there must be trained facilities management to ensure the building can be operated in a sustainable way,' says Mr Lee, who points out that every project must be scrutinised with truly green intent before tangible benefits can be reaped. This green intent should permeate throughout the process, from design to implementation and subsequent operations.
Ms Heng says people should not underestimate the power of passive design. 'Once a building is put in the right orientation, with the right heat buffers, air-conditioning is not needed to power it to the same extent any more,' she says. 'Many 'free' features such as this only come with a firm grasp of renewable energy.'
Being green also makes economic sense. In the long run, energy and water savings offset the upfront costs of installing green features. And more often than not, these cost savings are sustained.
Caterpillar's Mr Healy says: 'The timing of our project here, in the midst of a major recession, drove us all to a building design that eliminates unnecessary costs and maximises efficiency. The team led by RSP has a good understanding of our complex project requirements and our commitment to sustainability.'
Sustainability is an inherent feature of RSP's work as it strives for architectural excellence. 'Green isn't something new,' says Mr Lee. 'As architects, we have a fundamental responsibility to respond to the environment and uphold the highest professional standards. Being green is naturally part and parcel of our design process.'
With 10 Platinum and GoldPlus BCA Green Mark awards under its belt, RSP hopes to continue to play a major role in promoting sustainability within the architectural and engineering industries. Going forward, it also hopes to remain up-to-date with new technology in the market to enhance its efforts in sustainable architecture.
Noting that one of the world's largest solar panel manufacturing complexes is being built in Singapore by Norwegian company Renewable Energy Corporation, and is set for completion soon, Mr Lee says great advances in sustainability can be expected from this little red dot.
'Singapore plays a small part in manufacturing and consumption relative to other countries, but the fact that we are taking it nonetheless as seriously as other countries speaks well of us as a global citizen,' he says.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Responsible planning: RSP Architects won the GoldPlus award for the Caterpillar facility, where green design helped lower operating costs by reducing energy, water and material use
Xilinx Asia-Pacific HQ: Its energy-saving lighting is computerised to function according to the light flow of the building
BT : Going green makes business sense
Business Times - 27 May 2010
Going green makes business sense
Legislation, occupier preferences and stakeholder demands are pushing more firms to build sustainable real estate. By UMA SHANKARI
THE business case for developing sustainable real estate is just as strong - if not even more compelling - than the environmental argument, analysts say. Across the Asia-Pacific region, occupier preferences, stakeholder demands and government regulations have evolved, leading to a situation where it makes more business sense for developers to build sustainable real estate. The economic benefits also make the business case for going green more apparent now.
Perhaps the most compelling push comes from legislation to accelerate the use of green building practices, market watchers said.
'Legislation has played a significant shift in the way developers are 'greening' their properties,' said Eddie Wong, general manager of City Developments' projects division. City Developments is a pioneer of green building in Singapore. 'For instance, the Building and Construction Authority's (BCA) Green Mark was launched in 2005 as a voluntary initiative. It was made mandatory for new developments and buildings to be retrofitted in April 2008. This is a clear signal from the government that developers must develop properties with sustainability in mind. The government has also encouraged the adoption of green technology through various incentives and grants.'
The official push seems to have paid off. This year, BCA handed out a whopping 159 awards at its annual BCA Awards, which the industry regulator says is an indicator of the construction industry's growing commitment to a greater contribution to the economy and the built environment.
Other countries are also going down the legislative route. China said in June last year that developers participating in renewal projects will be required to save energy and water, use environmentally friendly building materials, increase green areas and reduce construction waste, among other things. Hong Kong also said in October last year that legislation would be introduced to make it mandatory for all new government buildings to be energy efficient.
But while such policies and incentives have the impact of raising awareness and encouraging adoption of green buildings and sustainability, the general consensus from the private sector in Asia is that more financial incentives and other financially-oriented assistance will be more effective, said Richie Lee, executive director for energy and sustainability with CB Richard Ellis (CBRE) Asia. He also suggested that there should be penalties against non-compliance. This can help to move things along, he said.
Other than legislation, occupier preferences and stakeholder demands are also pushing more companies to look into developing or owning sustainable real estate. 'Large MNCs have been observed to demand green features when looking for office space,' noted Dr Lee.
A global survey on corporate real estate and sustainability by CoreNet Global and Jones Lang LaSalle late last year showed that corporate real estate executives are more willing to invest in the sustainability of the space they own in spite of economic pressures.
The survey found that 89 per cent of these executives across the globe consider sustainability criteria in their location decisions. Green building certifications are always considered by 41 per cent and energy labels by 46 per cent in administering their portfolio.
More stakeholders are also now beginning to take a more holistic approach to doing business, which means that they factor in the social and environment effects of their business decisions. This means that developers and other corporations with a 'green' portfolio will draw more shareholder interest.
'Many global investors have become more vigorous in assessing businesses based on the triple bottom line - economic, environmental and social. Forward-looking companies, in particular those targeting international investors, will have to respond to the call for increased corporate social responsibility and disclosure,' noted Mr Wong.
But the main drawback to developing sustainable real estate appears to be the higher cost. Developers and analysts say that building a green building can cost anywhere from 2-5 per cent more.
Right now, the cost of implementing green technologies in buildings is still much higher than traditional building infrastructure where fossil fuel or natural gas generated energy is used. Energy savings alone are currently not able to compensate for the cost of green infrastructure such as photovoltaic panels or wind generators. In Singapore, the incentive schemes introduced by the government have helped to defray some of these costs so far.
In addition, developers are also unlikely to recoup the higher cost from occupiers, who are still resistant to paying more in rents.
CoreNet Global and Jones Lang LaSalle's survey last year found that respondents remain reluctant to pay premium rent for leased 'green' space without some form of payback. Only 37 per cent would consider paying a premium of one per cent to 10 per cent. Another 34 per cent expect to pay the same while 8 per cent expect to even pay less for sustainable space. In addition, 21 per cent of respondents indicated that they would only be willing to pay a premium if it was offset by lower operating costs.
Being in a green building is 'nice to have', said Chua Chor Hoon, head of DTZ's South-east Asia research team. But it all boils down to dollars and cents for most end-users - especially local ones - when considering space alternatives, she said. 'To justify the higher cost in the long run, there must be benefits to the end-users and landlords such that the maintenance costs are lower which will then compensate for the higher fixed rent.'
'Hence, developers should consider adopting green features that will make a significant difference to operating costs or result in savings or useful benefits to end-users, rather than introduce green features for the sake of qualifying for the Green Mark awards.'
Costs can be reduced with proper planning and management at every stage of the design process, industry players said. They are also hopeful that in time, with advances in technology, the cost of implementing green technologies in buildings will fall.
'There is still the general perception that green buildings are more costly than non-green buildings. In actual fact, it all depends on the designers, engineers, architects and builders,' CBRE's Dr Lee said. 'Some green buildings cost significantly more to build than others, just like there are more expensive and cheaper non-green buildings.'
Capable designers, engineers, architects and builders are now able to come up with green buildings that are not that much more expensive than a comparable non-green building, he said. And about five years from now, it would be possible to come up with a green building that could even cost less than a non-green building, Dr Lee added.
Lee Eng Lock, Trane's technical energy director for Asia energy services, said that smart development almost always costs less unless money is squandered on 'sexy' items - such as solar photo voltaic (which typically have a 40-year payback) or expensive computer modelling (which does not reflect reality and only affects a small percentage of the energy usage). 'The solution lies in proper design which is tested and measured and proven, not in the ultra-expensive airy fairy technologies which take many decades to pay back, if ever,' he said.
Ms Chua also said that when more developers jump on board the 'green' wagon, there will be more economies of scale which will then reduce the cost of green features.
And while energy savings might not be able to offset the higher cost of building, developers and tenants can reap other financial benefits such as water savings and a possible increase in the property's valuation in the longer term. And there are other benefits such as an improved corporate reputation and better occupant health and comfort - which can also lead to long-term financial benefits.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Reflection of society's concerns: Trane retrofitted The Galen Building (above) last year. It was the first existing industrial building to get a BCA Platinum Green Mark award
Going green makes business sense
Legislation, occupier preferences and stakeholder demands are pushing more firms to build sustainable real estate. By UMA SHANKARI
THE business case for developing sustainable real estate is just as strong - if not even more compelling - than the environmental argument, analysts say. Across the Asia-Pacific region, occupier preferences, stakeholder demands and government regulations have evolved, leading to a situation where it makes more business sense for developers to build sustainable real estate. The economic benefits also make the business case for going green more apparent now.
Perhaps the most compelling push comes from legislation to accelerate the use of green building practices, market watchers said.
'Legislation has played a significant shift in the way developers are 'greening' their properties,' said Eddie Wong, general manager of City Developments' projects division. City Developments is a pioneer of green building in Singapore. 'For instance, the Building and Construction Authority's (BCA) Green Mark was launched in 2005 as a voluntary initiative. It was made mandatory for new developments and buildings to be retrofitted in April 2008. This is a clear signal from the government that developers must develop properties with sustainability in mind. The government has also encouraged the adoption of green technology through various incentives and grants.'
The official push seems to have paid off. This year, BCA handed out a whopping 159 awards at its annual BCA Awards, which the industry regulator says is an indicator of the construction industry's growing commitment to a greater contribution to the economy and the built environment.
Other countries are also going down the legislative route. China said in June last year that developers participating in renewal projects will be required to save energy and water, use environmentally friendly building materials, increase green areas and reduce construction waste, among other things. Hong Kong also said in October last year that legislation would be introduced to make it mandatory for all new government buildings to be energy efficient.
But while such policies and incentives have the impact of raising awareness and encouraging adoption of green buildings and sustainability, the general consensus from the private sector in Asia is that more financial incentives and other financially-oriented assistance will be more effective, said Richie Lee, executive director for energy and sustainability with CB Richard Ellis (CBRE) Asia. He also suggested that there should be penalties against non-compliance. This can help to move things along, he said.
Other than legislation, occupier preferences and stakeholder demands are also pushing more companies to look into developing or owning sustainable real estate. 'Large MNCs have been observed to demand green features when looking for office space,' noted Dr Lee.
A global survey on corporate real estate and sustainability by CoreNet Global and Jones Lang LaSalle late last year showed that corporate real estate executives are more willing to invest in the sustainability of the space they own in spite of economic pressures.
The survey found that 89 per cent of these executives across the globe consider sustainability criteria in their location decisions. Green building certifications are always considered by 41 per cent and energy labels by 46 per cent in administering their portfolio.
More stakeholders are also now beginning to take a more holistic approach to doing business, which means that they factor in the social and environment effects of their business decisions. This means that developers and other corporations with a 'green' portfolio will draw more shareholder interest.
'Many global investors have become more vigorous in assessing businesses based on the triple bottom line - economic, environmental and social. Forward-looking companies, in particular those targeting international investors, will have to respond to the call for increased corporate social responsibility and disclosure,' noted Mr Wong.
But the main drawback to developing sustainable real estate appears to be the higher cost. Developers and analysts say that building a green building can cost anywhere from 2-5 per cent more.
Right now, the cost of implementing green technologies in buildings is still much higher than traditional building infrastructure where fossil fuel or natural gas generated energy is used. Energy savings alone are currently not able to compensate for the cost of green infrastructure such as photovoltaic panels or wind generators. In Singapore, the incentive schemes introduced by the government have helped to defray some of these costs so far.
In addition, developers are also unlikely to recoup the higher cost from occupiers, who are still resistant to paying more in rents.
CoreNet Global and Jones Lang LaSalle's survey last year found that respondents remain reluctant to pay premium rent for leased 'green' space without some form of payback. Only 37 per cent would consider paying a premium of one per cent to 10 per cent. Another 34 per cent expect to pay the same while 8 per cent expect to even pay less for sustainable space. In addition, 21 per cent of respondents indicated that they would only be willing to pay a premium if it was offset by lower operating costs.
Being in a green building is 'nice to have', said Chua Chor Hoon, head of DTZ's South-east Asia research team. But it all boils down to dollars and cents for most end-users - especially local ones - when considering space alternatives, she said. 'To justify the higher cost in the long run, there must be benefits to the end-users and landlords such that the maintenance costs are lower which will then compensate for the higher fixed rent.'
'Hence, developers should consider adopting green features that will make a significant difference to operating costs or result in savings or useful benefits to end-users, rather than introduce green features for the sake of qualifying for the Green Mark awards.'
Costs can be reduced with proper planning and management at every stage of the design process, industry players said. They are also hopeful that in time, with advances in technology, the cost of implementing green technologies in buildings will fall.
'There is still the general perception that green buildings are more costly than non-green buildings. In actual fact, it all depends on the designers, engineers, architects and builders,' CBRE's Dr Lee said. 'Some green buildings cost significantly more to build than others, just like there are more expensive and cheaper non-green buildings.'
Capable designers, engineers, architects and builders are now able to come up with green buildings that are not that much more expensive than a comparable non-green building, he said. And about five years from now, it would be possible to come up with a green building that could even cost less than a non-green building, Dr Lee added.
Lee Eng Lock, Trane's technical energy director for Asia energy services, said that smart development almost always costs less unless money is squandered on 'sexy' items - such as solar photo voltaic (which typically have a 40-year payback) or expensive computer modelling (which does not reflect reality and only affects a small percentage of the energy usage). 'The solution lies in proper design which is tested and measured and proven, not in the ultra-expensive airy fairy technologies which take many decades to pay back, if ever,' he said.
Ms Chua also said that when more developers jump on board the 'green' wagon, there will be more economies of scale which will then reduce the cost of green features.
And while energy savings might not be able to offset the higher cost of building, developers and tenants can reap other financial benefits such as water savings and a possible increase in the property's valuation in the longer term. And there are other benefits such as an improved corporate reputation and better occupant health and comfort - which can also lead to long-term financial benefits.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Reflection of society's concerns: Trane retrofitted The Galen Building (above) last year. It was the first existing industrial building to get a BCA Platinum Green Mark award
BT : Giving a push to the public and private sectors
Business Times - 27 May 2010
Giving a push to the public and private sectors
SOME 80 per cent of all buildings in Singapore have to be 'green' - that is, Green Mark-certified - by 2030, according to a new target set last year.
And to make sure that the private sector plays its part in helping to meet this goal, industry regulator Building and Construction Authority (BCA) has been working hard to promote sustainable design.
The agency's main thrusts revolve around getting more public sector buildings to be Green Mark-certified as well as encouraging private sector developers to aim for higher Green Mark levels.
BCA first introduced the Green Mark award in 2005 to rate the 'environmental friendliness' of buildings here. Depending on the overall assessment and points scored, a building is given a Green Mark Platinum, GoldPlus, Gold or Certified rating. Currently, there are more than 300 Green Mark buildings in Singapore.
A legislation requiring all new buildings and those undergoing major retrofitting works to achieve a minimum standard of environmental sustainability was then introduced in April 2008. This was part of BCA's first Green Building Masterplan, which also saw the introduction of a $20 million incentive scheme for developers of new buildings and a $50 million research fund to encourage greater adoption of green building technologies.
The sharp increase in the number of Green Mark buildings in 2007 was a testament to the success of the first Green Building Masterplan launched in 2006 - which placed emphasis on new buildings and those undergoing major retrofitting - BCA said.
Now, with the second Green Building Masterplan, BCA is pushing the public sector to take the lead. New public sector buildings and those undergoing major retrofitting works will be required to meet the highest Green Mark Platinum status - which will be at least 30 per cent more energy efficient than code-compliant buildings. Existing public sector buildings are also required to meet Green Mark GoldPlus Standards by 2020.
And incentives are in place to encourage the private sector to go for higher Green Mark levels. These include a $100 million incentive scheme for private building owners to retrofit existing buildings. BCA is also offering bonus gross floor area (GFA) allowances for new private buildings that attain higher Green Mark ratings. This has encouraged more developers to attain the higher tier Green Mark ratings of GoldPlus or Platinum awards for new projects, even though they have to pay the development charges applicable for the additional GFA.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Giving a push to the public and private sectors
SOME 80 per cent of all buildings in Singapore have to be 'green' - that is, Green Mark-certified - by 2030, according to a new target set last year.
And to make sure that the private sector plays its part in helping to meet this goal, industry regulator Building and Construction Authority (BCA) has been working hard to promote sustainable design.
The agency's main thrusts revolve around getting more public sector buildings to be Green Mark-certified as well as encouraging private sector developers to aim for higher Green Mark levels.
BCA first introduced the Green Mark award in 2005 to rate the 'environmental friendliness' of buildings here. Depending on the overall assessment and points scored, a building is given a Green Mark Platinum, GoldPlus, Gold or Certified rating. Currently, there are more than 300 Green Mark buildings in Singapore.
A legislation requiring all new buildings and those undergoing major retrofitting works to achieve a minimum standard of environmental sustainability was then introduced in April 2008. This was part of BCA's first Green Building Masterplan, which also saw the introduction of a $20 million incentive scheme for developers of new buildings and a $50 million research fund to encourage greater adoption of green building technologies.
The sharp increase in the number of Green Mark buildings in 2007 was a testament to the success of the first Green Building Masterplan launched in 2006 - which placed emphasis on new buildings and those undergoing major retrofitting - BCA said.
Now, with the second Green Building Masterplan, BCA is pushing the public sector to take the lead. New public sector buildings and those undergoing major retrofitting works will be required to meet the highest Green Mark Platinum status - which will be at least 30 per cent more energy efficient than code-compliant buildings. Existing public sector buildings are also required to meet Green Mark GoldPlus Standards by 2020.
And incentives are in place to encourage the private sector to go for higher Green Mark levels. These include a $100 million incentive scheme for private building owners to retrofit existing buildings. BCA is also offering bonus gross floor area (GFA) allowances for new private buildings that attain higher Green Mark ratings. This has encouraged more developers to attain the higher tier Green Mark ratings of GoldPlus or Platinum awards for new projects, even though they have to pay the development charges applicable for the additional GFA.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Making their mark on the environment
Business Times - 27 May 2010
Making their mark on the environment
Developers here find green technology and features increasingly attractive because of their cost-effectiveness, reports OLIVIA HO
THE push for sustainable buildings here is picking up steam, as industry stakeholders warm to the idea that it makes business sense to go green.
More and more buildings are qualifying for the Building and Construction Authority's (BCA) Green Mark award. This year saw BCA award 102 buildings Green Mark status - far above the 16 buildings recognised in 2006 by the then-fledgling award.
Launched in 2005, the Green Mark scheme evaluates buildings for their environmental impact and performance. Depending on the overall assessment and point scoring, buildings will be certified BCA Green Mark Platinum, GoldPlus, Gold or Certified, with Platinum being the top rating.
Certified Green Mark buildings must be re-assessed every three years to maintain their status.
Developers are finding the green wave increasingly attractive because of its cost-effectiveness. 'Reducing the life cycle or operating cost of buildings is seen as the prime business reason for developing a green building,' said a BCA spokesman.
Cost savings are derived from efficient use of key resources such as energy and water, leading to lower operation and maintenance costs. Intangible benefits, such as enhanced occupant productivity and health due to good indoor environmental quality, also make themselves felt in the long run.
However, an increasing demand for green buildings has given developers added impetus to go green. 'Clients - ranging from socially responsible multinational corporations to sophisticated individual consumers - are demanding to lease or purchase only green buildings and homes,' said the BCA spokesman.
Developers acknowledge that consumer demand is a key factor in sustaining the development of green buildings. Says Kwek Leng Joo, managing director of City Developments Ltd (CDL): 'Where there is greater demand, there will be increased commitment for the development of sustainable properties.'
To date, there are over 440 Green Mark buildings in Singapore. The improving response to the awards has led BCA to extend the scheme to other categories. For instance, it launched the Green Mark for Office Interior last year after it was approached by a number of international firms to develop such a category.
As one of the 21 Green Building rating systems recognised by the World Green Building Council (WGBC), the Green Mark scheme has also gained popularity in the region, as it is developed especially for the tropical climate. As at 2009, there are more than 70 Green Mark projects across the Asean region, China, India and the Middle East.
Despite the scheme's success so far, BCA is not letting up. It announced in March that it would be tightening standards for the Green Mark certification. For instance, the minimum energy efficiency standards that must be met before a new building can get certified will be raised by 10 per cent from today's standards.
BCA will also be upping the energy efficiency standards for other Green Mark levels. Currently, a building must achieve at least 25 per cent energy savings to qualify for GoldPlus, and at least 30 per cent to qualify for Platinum.
CDL is undaunted by the stricter standards. It has already garnered the largest number of Green Mark awards for a single developer. It has 40 Green Mark developments, of which 10 are Platinum. CDL said it would continue to raise the bar for the construction industry by achieving a minimum Green Mark Gold rating for all its new developments.
Among CDL's latest green achievements is the W Singapore Sentosa Cove, which this year became the first new hotel to be certified Green Mark Platinum. About 3.5 per cent of the hotel's construction cost was invested in the development of green innovations, which are expected to result in energy savings of over 3.3 million kilowatt hours (kWh) per year.
These innovations include the Heat Pump Templifier, which heats water more efficiently while simultaneously producing reusable chilled water as a by-product. This reduces the burden on the hotel's otherwise overloaded boilers and cooling towers, thus lowering electrical demands.
High-tech innovations aside, W Singapore Sentosa Cove also impressed Green Mark assessors with simple features such as sensors installed in the balcony doors of all guestrooms. The sensors automatically cut off the air-conditioning system if the doors are left open after a stipulated time period, thus reducing the amount of energy that guests may waste unconsciously.
Another Platinum-certified new building is the East Campus of United World College South-east Asia (UWCSEA East). Developed by JTC Corporation, the Tampines campus is designed to consume around 25 to 30 per cent less electricity than conventional buildings of similar size and function. Energy-saving features include a solar thermal system that uses the sun's heat to power the campus' air conditioning and heat its water.
Not only will the greening effort save UWCSEA East an estimated 3.08 million kWh per year, it also provided inspiration for the building's aesthetics. The campus' Education Block 1 sports a 'green shield' - greenery planted on the exterior walls of the building's corridor. Apart from reducing the temperature, the unusual façade is intended to make visitors feel like they are walking through a forest.
While green investment may be hefty, BCA advises companies that having clear green goals from day one will save them a great deal of both money and trouble, as effective collaboration between consultants and stakeholders at inception will produce a more cost-effective design.
Some developers feel that the benefits more than outweigh their expenditure in the long run. CDL, which typically invests between 2 per cent and 5 per cent of construction costs in green technology and features, estimates that it can save about $4 million in electricity annually from just the 10 buildings it got certified in 2009.
For CDL, a company's greatest difficulty in going green is not cost. 'The biggest challenge in sustaining green practices is the nurturing and integration of this conviction into a company's DNA,' says Mr Kwek.
'Building green development is more than just placing a couple of eco-friendly features within a property,' he says. 'The entire cycle must be aligned with environmental commitment.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Energy efficient: Platinum-certified UWCSEA East (above) is designed to consume 25-30 per cent less electricity than conventional buildings of similar size and function.
Green innovations at the WSingapore Sentosa Cove (above), also certified Platinum, are expected to result in energy savings of over 3.3 million kilowatt hours per year
Making their mark on the environment
Developers here find green technology and features increasingly attractive because of their cost-effectiveness, reports OLIVIA HO
THE push for sustainable buildings here is picking up steam, as industry stakeholders warm to the idea that it makes business sense to go green.
More and more buildings are qualifying for the Building and Construction Authority's (BCA) Green Mark award. This year saw BCA award 102 buildings Green Mark status - far above the 16 buildings recognised in 2006 by the then-fledgling award.
Launched in 2005, the Green Mark scheme evaluates buildings for their environmental impact and performance. Depending on the overall assessment and point scoring, buildings will be certified BCA Green Mark Platinum, GoldPlus, Gold or Certified, with Platinum being the top rating.
Certified Green Mark buildings must be re-assessed every three years to maintain their status.
Developers are finding the green wave increasingly attractive because of its cost-effectiveness. 'Reducing the life cycle or operating cost of buildings is seen as the prime business reason for developing a green building,' said a BCA spokesman.
Cost savings are derived from efficient use of key resources such as energy and water, leading to lower operation and maintenance costs. Intangible benefits, such as enhanced occupant productivity and health due to good indoor environmental quality, also make themselves felt in the long run.
However, an increasing demand for green buildings has given developers added impetus to go green. 'Clients - ranging from socially responsible multinational corporations to sophisticated individual consumers - are demanding to lease or purchase only green buildings and homes,' said the BCA spokesman.
Developers acknowledge that consumer demand is a key factor in sustaining the development of green buildings. Says Kwek Leng Joo, managing director of City Developments Ltd (CDL): 'Where there is greater demand, there will be increased commitment for the development of sustainable properties.'
To date, there are over 440 Green Mark buildings in Singapore. The improving response to the awards has led BCA to extend the scheme to other categories. For instance, it launched the Green Mark for Office Interior last year after it was approached by a number of international firms to develop such a category.
As one of the 21 Green Building rating systems recognised by the World Green Building Council (WGBC), the Green Mark scheme has also gained popularity in the region, as it is developed especially for the tropical climate. As at 2009, there are more than 70 Green Mark projects across the Asean region, China, India and the Middle East.
Despite the scheme's success so far, BCA is not letting up. It announced in March that it would be tightening standards for the Green Mark certification. For instance, the minimum energy efficiency standards that must be met before a new building can get certified will be raised by 10 per cent from today's standards.
BCA will also be upping the energy efficiency standards for other Green Mark levels. Currently, a building must achieve at least 25 per cent energy savings to qualify for GoldPlus, and at least 30 per cent to qualify for Platinum.
CDL is undaunted by the stricter standards. It has already garnered the largest number of Green Mark awards for a single developer. It has 40 Green Mark developments, of which 10 are Platinum. CDL said it would continue to raise the bar for the construction industry by achieving a minimum Green Mark Gold rating for all its new developments.
Among CDL's latest green achievements is the W Singapore Sentosa Cove, which this year became the first new hotel to be certified Green Mark Platinum. About 3.5 per cent of the hotel's construction cost was invested in the development of green innovations, which are expected to result in energy savings of over 3.3 million kilowatt hours (kWh) per year.
These innovations include the Heat Pump Templifier, which heats water more efficiently while simultaneously producing reusable chilled water as a by-product. This reduces the burden on the hotel's otherwise overloaded boilers and cooling towers, thus lowering electrical demands.
High-tech innovations aside, W Singapore Sentosa Cove also impressed Green Mark assessors with simple features such as sensors installed in the balcony doors of all guestrooms. The sensors automatically cut off the air-conditioning system if the doors are left open after a stipulated time period, thus reducing the amount of energy that guests may waste unconsciously.
Another Platinum-certified new building is the East Campus of United World College South-east Asia (UWCSEA East). Developed by JTC Corporation, the Tampines campus is designed to consume around 25 to 30 per cent less electricity than conventional buildings of similar size and function. Energy-saving features include a solar thermal system that uses the sun's heat to power the campus' air conditioning and heat its water.
Not only will the greening effort save UWCSEA East an estimated 3.08 million kWh per year, it also provided inspiration for the building's aesthetics. The campus' Education Block 1 sports a 'green shield' - greenery planted on the exterior walls of the building's corridor. Apart from reducing the temperature, the unusual façade is intended to make visitors feel like they are walking through a forest.
While green investment may be hefty, BCA advises companies that having clear green goals from day one will save them a great deal of both money and trouble, as effective collaboration between consultants and stakeholders at inception will produce a more cost-effective design.
Some developers feel that the benefits more than outweigh their expenditure in the long run. CDL, which typically invests between 2 per cent and 5 per cent of construction costs in green technology and features, estimates that it can save about $4 million in electricity annually from just the 10 buildings it got certified in 2009.
For CDL, a company's greatest difficulty in going green is not cost. 'The biggest challenge in sustaining green practices is the nurturing and integration of this conviction into a company's DNA,' says Mr Kwek.
'Building green development is more than just placing a couple of eco-friendly features within a property,' he says. 'The entire cycle must be aligned with environmental commitment.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Energy efficient: Platinum-certified UWCSEA East (above) is designed to consume 25-30 per cent less electricity than conventional buildings of similar size and function.
Green innovations at the WSingapore Sentosa Cove (above), also certified Platinum, are expected to result in energy savings of over 3.3 million kilowatt hours per year
BT : Projects being released in subdued market
Business Times - 27 May 2010
Projects being released in subdued market
Kheng Leong seen releasing initial 300 units in preview of The Minton
By KALPANA RASHIWALA
DEVELOPERS are continuing to release projects amid more subdued sentiment in the property market.
Kheng Leong group is previewing this week The Minton at Lorong Ah Soo/Hougang St 11 at an average price of about $850 per square foot.
The developer is expected to release an initial batch of about 300 units in the 1,145-unit project that is being developed on a 99-year leasehold site.
Kheng Leong is offering a mix of various unit types, from one-bedders to penthouses, and prices will range from $770 psf to $960 psf at this week's preview.
The development includes 121 one bedders, ranging from 550-700 sq ft, 335 two-bedroom apartments (940-990 sq ft), 158 two bedroom with study units as well as 44 dual key units (comprising a two-bedroom apartment and a one-bedder). The remaining unit types at The Minton include three and four bedders. In addition, there will be 24 penthouses ranging from 2,000 sq ft to 3,500 sq ft in size.
The Minton will have a total of 18 blocks, ranging from 15 to 17 storeys in height.
The project is slated for completion around 2014.
Kheng Leong has appointed three marketing agents - CB Richard Ellis, ERA and Knight Frank.
Home buyers who are shopping for completed properties could consider Melodies Limited's offer of 72 units at Cassia View, a 10-year old freehold development at Guillemard Road near Geylang. The project has been on the market for about two weekends and 16 units have been sold so far.
Melodies, controlled by the Lee family of Hotel Royal, last year tried to sell the 20-storey block of 72 units, on an en bloc basis, with a price tag of about $70 million, or $783 psf, of strata area. That exercise did not result in a sale and the company is now selling the apartments individually. The average price is about $980 psf. Melodies will refurbish units with branded bathroom fixtures and designer kitchen cabinets and appliances. It will also spruce up common areas.
The bulk, or 67 of the 72 units, are three bedders (1,100 to 1,200 sq ft) and they are priced between $1 million and $1.3 million. Cassia View has just one two-bedroom apartment (of 900 sq ft) and four penthouses (about 2,300 sq ft each).
'The units comprise almost 100 per cent nett useable space as they do not have bomb shelters, bay windows or balconies,' says Liang Thow Ming, head of residential services at Credo Real Estate, which is marketing Cassia View.
Market watchers say visitorship at showflats slowed last weekend, due to the weak stock market, Europe's economic woes, tensions on the Korean Peninsula, and the Government announcement last Friday evening that it will deliver a bumper supply of private residential land for the second half of this year to meet strong demand for its sites from developers.
Frasers Centrepoint has sold 40 units at Flamingo Valley in Siglap after two weekends of sales. Prices in the freehold project range from $900-$1,580 psf.
Allgreen Properties found buyers for 50 units at Cascadia condo at Bukit Timah Road at its preview last week, with one- and two-bedroom apartments making up the bulk of sales. Units in the development are priced mostly in the $1,400-1,600 psf range. Cascadia and Flamingo Valley are freehold.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Projects being released in subdued market
Kheng Leong seen releasing initial 300 units in preview of The Minton
By KALPANA RASHIWALA
DEVELOPERS are continuing to release projects amid more subdued sentiment in the property market.
Kheng Leong group is previewing this week The Minton at Lorong Ah Soo/Hougang St 11 at an average price of about $850 per square foot.
The developer is expected to release an initial batch of about 300 units in the 1,145-unit project that is being developed on a 99-year leasehold site.
Kheng Leong is offering a mix of various unit types, from one-bedders to penthouses, and prices will range from $770 psf to $960 psf at this week's preview.
The development includes 121 one bedders, ranging from 550-700 sq ft, 335 two-bedroom apartments (940-990 sq ft), 158 two bedroom with study units as well as 44 dual key units (comprising a two-bedroom apartment and a one-bedder). The remaining unit types at The Minton include three and four bedders. In addition, there will be 24 penthouses ranging from 2,000 sq ft to 3,500 sq ft in size.
The Minton will have a total of 18 blocks, ranging from 15 to 17 storeys in height.
The project is slated for completion around 2014.
Kheng Leong has appointed three marketing agents - CB Richard Ellis, ERA and Knight Frank.
Home buyers who are shopping for completed properties could consider Melodies Limited's offer of 72 units at Cassia View, a 10-year old freehold development at Guillemard Road near Geylang. The project has been on the market for about two weekends and 16 units have been sold so far.
Melodies, controlled by the Lee family of Hotel Royal, last year tried to sell the 20-storey block of 72 units, on an en bloc basis, with a price tag of about $70 million, or $783 psf, of strata area. That exercise did not result in a sale and the company is now selling the apartments individually. The average price is about $980 psf. Melodies will refurbish units with branded bathroom fixtures and designer kitchen cabinets and appliances. It will also spruce up common areas.
The bulk, or 67 of the 72 units, are three bedders (1,100 to 1,200 sq ft) and they are priced between $1 million and $1.3 million. Cassia View has just one two-bedroom apartment (of 900 sq ft) and four penthouses (about 2,300 sq ft each).
'The units comprise almost 100 per cent nett useable space as they do not have bomb shelters, bay windows or balconies,' says Liang Thow Ming, head of residential services at Credo Real Estate, which is marketing Cassia View.
Market watchers say visitorship at showflats slowed last weekend, due to the weak stock market, Europe's economic woes, tensions on the Korean Peninsula, and the Government announcement last Friday evening that it will deliver a bumper supply of private residential land for the second half of this year to meet strong demand for its sites from developers.
Frasers Centrepoint has sold 40 units at Flamingo Valley in Siglap after two weekends of sales. Prices in the freehold project range from $900-$1,580 psf.
Allgreen Properties found buyers for 50 units at Cascadia condo at Bukit Timah Road at its preview last week, with one- and two-bedroom apartments making up the bulk of sales. Units in the development are priced mostly in the $1,400-1,600 psf range. Cascadia and Flamingo Valley are freehold.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Nationwide full-year profit halved
Business Times - 27 May 2010
Nationwide full-year profit halved
UK mortgage lender sees broad stability in market over six to 12 months
(LONDON) Nationwide, Britain's largest building society, said it expected broad stability in the housing market over the next six to 12 months, when posting a near halving of full-year profit yesterday.
House prices have recovered ground in recent months, though they fell in February and April, according to rival lender Halifax, raising questions over the strength of the market.
'Unless there is a significant spike in interest rates, which we are not expecting, a major dip in prices is unlikely to occur over the next year,' Nationwide chief executive Graham Beale said.
Data from Nationwide itself, Britain's third-largest mortgage lender, showed a one per cent rise in house prices in April, taking the annual rate of increase into double digits for the first time in nearly three years.
Nationwide said an increase in properties for sale would relieve pressure on prices, while a continuing lack of credit and high prices relative to salaries would act as an upward limit.
Customer-owned Nationwide said it had been hit by the contraction in its core mortgage and savings markets and by pressure on margins. Underlying profit in the year to April 4 almost halved to £212 million (S$429 million).
The lender said it saw lower levels of profitability continuing throughout 2010.
It lent £12 billion of mortgages over its past financial year, representing a market share of 8.7 per cent, down from 9 per cent in 2008-09. Nationwide said it had no 'aggressive growth plans' and expected to remain at that level.
The building society, under pressure from weak markets and low interest rates, plans to accelerate cost cuts to hit a targeted cost/income ratio of less than 50 per cent by the end of 2012-13 from a current 61.3 per cent.
It will review its distribution network, swollen by recent acquisitions, and administrative buildings. Nationwide has over 1,000 retail outlets.
'It is quite an extensive network, and we need to make sure it is the right shape for the business. . . We need to adjust our business model to reflect the market conditions,' Mr Beale said.
Nationwide has already cut more than £150 million of costs over the past three years and shrank its workforce by just under 800 staff over the past 12 months to almost 15,800.
Mr Beale declined to comment on further job cuts and said the review underway would take 'years not months'.
Arrears remained broadly flat, with mortgages three months or more in arrears totalling 0.68 per cent, well below an industry average of 2.2 per cent and expected to remain stable. Bad debts on the commercial properties saw a significantly better second half, with impairment charges dropping 20 per cent to £119 million.
Nationwide, echoing rivals across the sector, said it expected lower levels of impairment going into the coming year as commercial bad debts have peaked, adding a slower recovery and weak tenant demand could throw that off track. -- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Optimistic: Echoing rivals, Nationwide says it expects lower levels of impairment next year as commercial bad debts have peaked
Nationwide full-year profit halved
UK mortgage lender sees broad stability in market over six to 12 months
(LONDON) Nationwide, Britain's largest building society, said it expected broad stability in the housing market over the next six to 12 months, when posting a near halving of full-year profit yesterday.
House prices have recovered ground in recent months, though they fell in February and April, according to rival lender Halifax, raising questions over the strength of the market.
'Unless there is a significant spike in interest rates, which we are not expecting, a major dip in prices is unlikely to occur over the next year,' Nationwide chief executive Graham Beale said.
Data from Nationwide itself, Britain's third-largest mortgage lender, showed a one per cent rise in house prices in April, taking the annual rate of increase into double digits for the first time in nearly three years.
Nationwide said an increase in properties for sale would relieve pressure on prices, while a continuing lack of credit and high prices relative to salaries would act as an upward limit.
Customer-owned Nationwide said it had been hit by the contraction in its core mortgage and savings markets and by pressure on margins. Underlying profit in the year to April 4 almost halved to £212 million (S$429 million).
The lender said it saw lower levels of profitability continuing throughout 2010.
It lent £12 billion of mortgages over its past financial year, representing a market share of 8.7 per cent, down from 9 per cent in 2008-09. Nationwide said it had no 'aggressive growth plans' and expected to remain at that level.
The building society, under pressure from weak markets and low interest rates, plans to accelerate cost cuts to hit a targeted cost/income ratio of less than 50 per cent by the end of 2012-13 from a current 61.3 per cent.
It will review its distribution network, swollen by recent acquisitions, and administrative buildings. Nationwide has over 1,000 retail outlets.
'It is quite an extensive network, and we need to make sure it is the right shape for the business. . . We need to adjust our business model to reflect the market conditions,' Mr Beale said.
Nationwide has already cut more than £150 million of costs over the past three years and shrank its workforce by just under 800 staff over the past 12 months to almost 15,800.
Mr Beale declined to comment on further job cuts and said the review underway would take 'years not months'.
Arrears remained broadly flat, with mortgages three months or more in arrears totalling 0.68 per cent, well below an industry average of 2.2 per cent and expected to remain stable. Bad debts on the commercial properties saw a significantly better second half, with impairment charges dropping 20 per cent to £119 million.
Nationwide, echoing rivals across the sector, said it expected lower levels of impairment going into the coming year as commercial bad debts have peaked, adding a slower recovery and weak tenant demand could throw that off track. -- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Optimistic: Echoing rivals, Nationwide says it expects lower levels of impairment next year as commercial bad debts have peaked
BT : S'pore ahead of Paris, Tokyo in quality of life
Business Times - 27 May 2010
S'pore ahead of Paris, Tokyo in quality of life
Top in Asia again, it ranks 28th out of 221 cities in a global survey by Mercer
By FELDA CHAY
LIFE'S good in Singapore - that is the finding of human resource consultancy firm Mercer during its annual ranking of cities according to quality of living.
The republic has retained its spot as the top Asian city boasting the highest quality of living by coming in 28th out of the 221 cities ranked in this year's survey.
Singapore was also the top-ranked Asian city last year, where it was placed 26th out of the 215 cities surveyed.
It also came in third among cities in the Asia-Pacific region in terms of eco-friendliness - which ranked cities based on factors such as use of renewable energy and pollution generated. Globally, Singapore ranked 22nd.
Mercer's Singapore mobility leader Derrick Kon said that Singapore stood out in Asia to become the city offering the best quality of life in areas such as political and social environment, economic environment, schools and education, and public services.
At 28th place, Singapore is ahead of its regional competitors such as Hong Kong and Tokyo, which were placed 71st and 40th respectively.
It also beat popular destinations such as Paris, which was ranked 34th, and London in 39th place.
European cities continued to dominate the top positions of the ranking, with Vienna keeping its seat as the place with the best quality of life.
Coming in second and third spots respectively are Zurich and Geneva.
Vancouver came in fourth, and rounding up the top five list is Auckland.
Among Asian cities, most maintained the same positions, though Tokyo fell from 35th to 40th place mainly because of climate changes.
Mercer publishes its list on quality of living annually to help multinational companies determine an appropriate amount of compensation for expatriates sent to work in difficult locations.
This year's rankings were based on data collected between September and November 2009.
Said Slagin Parakatil, senior researcher at Mercer: 'As the world economy becomes more globalised, cities in many emerging markets, such as the Middle East or Asia, have seen a significant influx of foreign companies and their expatriate employees in recent years.
'Despite the economic downturn and companies' efforts to contain costs, quality of living and hardship premiums remain important means of compensating expatriates for differences in living conditions.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
S'pore ahead of Paris, Tokyo in quality of life
Top in Asia again, it ranks 28th out of 221 cities in a global survey by Mercer
By FELDA CHAY
LIFE'S good in Singapore - that is the finding of human resource consultancy firm Mercer during its annual ranking of cities according to quality of living.
The republic has retained its spot as the top Asian city boasting the highest quality of living by coming in 28th out of the 221 cities ranked in this year's survey.
Singapore was also the top-ranked Asian city last year, where it was placed 26th out of the 215 cities surveyed.
It also came in third among cities in the Asia-Pacific region in terms of eco-friendliness - which ranked cities based on factors such as use of renewable energy and pollution generated. Globally, Singapore ranked 22nd.
Mercer's Singapore mobility leader Derrick Kon said that Singapore stood out in Asia to become the city offering the best quality of life in areas such as political and social environment, economic environment, schools and education, and public services.
At 28th place, Singapore is ahead of its regional competitors such as Hong Kong and Tokyo, which were placed 71st and 40th respectively.
It also beat popular destinations such as Paris, which was ranked 34th, and London in 39th place.
European cities continued to dominate the top positions of the ranking, with Vienna keeping its seat as the place with the best quality of life.
Coming in second and third spots respectively are Zurich and Geneva.
Vancouver came in fourth, and rounding up the top five list is Auckland.
Among Asian cities, most maintained the same positions, though Tokyo fell from 35th to 40th place mainly because of climate changes.
Mercer publishes its list on quality of living annually to help multinational companies determine an appropriate amount of compensation for expatriates sent to work in difficult locations.
This year's rankings were based on data collected between September and November 2009.
Said Slagin Parakatil, senior researcher at Mercer: 'As the world economy becomes more globalised, cities in many emerging markets, such as the Middle East or Asia, have seen a significant influx of foreign companies and their expatriate employees in recent years.
'Despite the economic downturn and companies' efforts to contain costs, quality of living and hardship premiums remain important means of compensating expatriates for differences in living conditions.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : New Dubai law to pay off in longer term
Business Times - 27 May 2010
New Dubai law to pay off in longer term
(DUBAI) A new law that defines the rights, responsibilities and obligations of all parties in jointly owned properties in Dubai will comfort investors but will do little to boost demand for properties in the short term, analysts say.
Guidelines implementing the long-awaited Strata Law were published by the Land Department on Tuesday, in a bid to help the emirate on its path to mature market status, but comes against a backdrop of residential and office oversupply.
'An instant pick-up in transaction activity is not expected on the back of this new legislation,' said Sana Kapadia, vice-president of equity research at EFG-Hermes in Dubai. 'While these clear and transparent rules will undoubtedly give buyers more comfort over their purchase decision, demand is only likely to be positively impacted in the medium to long term,' she said, adding the bank expected an overall decline in house prices and rents of up to 10 and 15 per cent respectively this year.
Dubai's residential market, already oversupplied by about 20 per cent, will gain 41,000 more homes between now and the end of the year, while office space will rise to about 6.4 million square metres by the end of 2011 from about 3.6 million sq m at the end of 2009, according to Colliers International.
The framework, which offers guidelines for all types of property, sets new rules for general regulation, jointly owned property declaration regulation, constitution regulation and survey regulation.
Additional rules include regulation on the setting up and collection of service charges without the clearance of the Real Estate Regulatory Authority (RERA), the emirate's property watchdog. 'This move should put a cap on some of the unreasonable charges being levied by some developers currently,' Ms Kapadia said\. \-- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
New Dubai law to pay off in longer term
(DUBAI) A new law that defines the rights, responsibilities and obligations of all parties in jointly owned properties in Dubai will comfort investors but will do little to boost demand for properties in the short term, analysts say.
Guidelines implementing the long-awaited Strata Law were published by the Land Department on Tuesday, in a bid to help the emirate on its path to mature market status, but comes against a backdrop of residential and office oversupply.
'An instant pick-up in transaction activity is not expected on the back of this new legislation,' said Sana Kapadia, vice-president of equity research at EFG-Hermes in Dubai. 'While these clear and transparent rules will undoubtedly give buyers more comfort over their purchase decision, demand is only likely to be positively impacted in the medium to long term,' she said, adding the bank expected an overall decline in house prices and rents of up to 10 and 15 per cent respectively this year.
Dubai's residential market, already oversupplied by about 20 per cent, will gain 41,000 more homes between now and the end of the year, while office space will rise to about 6.4 million square metres by the end of 2011 from about 3.6 million sq m at the end of 2009, according to Colliers International.
The framework, which offers guidelines for all types of property, sets new rules for general regulation, jointly owned property declaration regulation, constitution regulation and survey regulation.
Additional rules include regulation on the setting up and collection of service charges without the clearance of the Real Estate Regulatory Authority (RERA), the emirate's property watchdog. 'This move should put a cap on some of the unreasonable charges being levied by some developers currently,' Ms Kapadia said\. \-- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
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