ST : Major facelift for three more estates

Nov 29, 2010

Major facelift for three more estates

They will be revamped under Remaking Our Heartland scheme; more details to be out soon

By Rachel Chang
THREE more towns will soon be given wholesale facelifts under the Housing Board's masterplan to rejuvenate housing estates, said Prime Minister Lee Hsien Loong at the People's Action Party conference yesterday.

This follows the progress made on the initiative's first three pilot towns - Punggol, Yishun and Dawson - where waterfront parks, cycling paths and designer HDB blocks are now being built.

He did not elaborate further, saying only that the names of the three estates would be announced soon.

Contacted by The Straits Times, the Ministry of National Development said more information would be announced 'within the coming weeks'.

During his speech, Mr Lee dwelt at length on this initiative, known as Remaking Our Heartland (ROH), which was first announced in the 2007 National Day Rally.

'Those were slides,' he recalled, referring to the artists' impressions he showed the audience then. 'Now we have the reality.'

Beyond standard HDB flat upgrading works such as new doors and better bathrooms, the ROH programme visualises a holistic transformation of the neighbourhood, building on qualities unique to that town's history and geography.

For example, in Dawson, which was the first public housing estate built in the 1970s, a canal park lined with heritage boards will link up the estate's new HDB blocks.

The boards will incorporate Dawson memorabilia collected from the community, such as a pair of 1973 cinema ticket stubs from one of Queenstown's first movie theatres.

Punggol, which is set to be Singapore's first 'eco-town', will have solar panels and rainwater recycling facilities, as well as a 4.2km waterway running through the neighbourhood on which residents can canoe. And in Yishun, a middle-aged town, a waterfront park will be built by Yishun Pond, and its existing amenities such as the library will be upgraded.

Under the ROH initiative, award-winning architecture firms have been enlisted to design these new developments.

In announcing the expansion of the programme, Mr Lee said he had 'every confidence that we will deliver on these plans, and build a first-class city and a first-class home'.

This is 'provided Singaporeans support the plans, support the Government, work with us, make it happen,' he added. 'And it will happen.'

'Then we will make this one of the best countries in the world to live, to work, to play and to retire in.'

rchang@sph.com.sg



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VISION TURNED REALITY

'Those were slides. Now we have the reality.'

PM Lee Hsien Loong, referring to the artists' impressions he showed the audience at the 2007 National Day Rally



Children enjoying the playground facilities (above) at Dawson Estate in Queenstown last week. -- PHOTOS: LIANHE ZAOBAO,HDB

ST : 48 units sold at preview for d'Leedon condo

Nov 29, 2010

48 units sold at preview for d'Leedon condo

By Cheryl Lim
SALES of CapitaLand's latest development d'Leedon got off to a modest start over the weekend, with 48 units sold at a preview launch for a select group of buyers.

This was 24 per cent of the 200 units that were available at the preview, which was open exclusively to former owners of Farrer Court units. D'Leedon sits on the site of the former Farrer Court, which was sold en bloc in 2007.

The units that were on offer ranged from one- to three-bedroom apartments. They were priced at an average of $1,680 per sq ft (psf).

That makes the cheapest apartments - 635 sq ft units with a bedroom and study - less than $1 million each. A typical two-bedder of 1,055 sq ft would set a buyer back $1.5 million.

CapitaLand yesterday said owners from 266 Farrer Court units visited the show gallery over the weekend. The developer will begin public sales of the condominium on Thursday.

A former resident of Farrer Court, who declined to be named, felt the sale prices of d'Leedon were 'a little on the high side' for a 99-year leasehold project.

He said that units at nearby Waterfall Gardens, a new freehold development, were being sold at a comparative price. Still, he bought a $1.9 million three-bedroom unit at the d'Leedon.

'Two of my neighbours also felt (prices were a bit high),' he told The Straits Times.

'But we bought (units in) this place for sentimental reasons; we've lived in the area for so many years... You can't find other developments with these kinds of views.'

Another former resident, who gave her name only as Mrs Wong, purchased a studio apartment for slightly more than $1 million and said she felt prices were reasonable. 'It's not cheap but it's not expensive. Considering that the development looks quite nice and there is generous space offered, as well as the location and facilities, it's kind of a fair price to pay,' she said.

D'Leedon sits on a huge site of more than 840,000 sq ft, with 22 per cent of the land area being taken up by the 1,715 homes in the project.

The rest is slated for gardens, facilities such as two swimming pools and a gym, and retail outlets which could include restaurants, a laundromat and a clinic.

Buyers The Straits Times spoke to said they are confident the prices for units at d'Leedon will appreciate in the coming months.

Separately, property developer UOL Group said it has sold 252 of the 320 units released to date at its Spottiswoode Residences near Tanjong Pagar. A UOL spokesman said sales of the three-bedroom units were good and almost all of the development's seven penthouses have been sold.

Another developer, MCC Land, said nearly half of all the units at its executive condominium project The Canopy have been sold. Since its launch last month, the development located in Yishun Avenue 11 has sold 188 of the 406 units available.

ST : Cooling measures working

Nov 27, 2010
PROPERTY MARKET COOLING MEASURES

Cooling measures working

By Elgin Toh



In the private property market, prices are still rising but the increases have moderated, Mr Mah pointed out. -- PHOTO: WANBAO

Signs are emerging in the public and private housing markets that the Government's three-month- old price stabilisation measures are working, says National Development Minister Mah Bow Tan.

The effect is more pronounced in the resale Housing Board market, where median cash over valuation (COV) payments in October fell to $25,000, from $30,000 in the previous quarter, Mr Mah said yesterday.

And COV numbers for November transactions so far indicate a further decrease, he added. COV, which is the cash premium paid by a buyer over and above the valuation of a flat, is one measure of how hot the demand for HDB resale homes is.

Transactions in the HDB market have fallen by 30 per cent in the fourth quarter thus far, against the previous quarter.

In the private property market, prices are still rising but the increases have moderated, Mr Mah pointed out.

Last month, the Urban Redevelopment Authority announced that private residential prices rose 2.9 per cent in the third quarter of this year. This represented a step-down from the previous quarter, when prices jumped 5.3 per cent.

'So, all in all, I would say the cooling measures are starting to take effect, but the overall impact is still too early to tell,' he said.

Mr Mah was speaking to reporters on the sidelines of a groundbreaking event for new HDB flats in the Dawson estate.

The Government announced a slew of measures on Aug 30 to rein in record-high prices in the housing market. These included lower bank loan limits for second properties and tighter ownership rules for buyers of HDB flats.

Yesterday, the minister, who has had to face criticism from opposition parties on the housing affordability issue, said the steps taken have achieved the desired effect of discouraging potential HDB flat buyers not in urgent need of housing, including those who already own private property.

A less feverish market will make it easier for more first-time buyers to purchase resale flats, he said.

However, Mr Mah was also quick to flag a few concerns.

Low interest rates and an abundance of investor liquidity elsewhere, for example, could yet push real estate prices back up.

Furthermore, anti-speculation measures in property markets like Hong Kong, Taiwan, mainland China and South Korea - some more restrictive than the ones here - may result in a 'diversion of funds into Singapore'.

In view of this, the Government will introduce more measures to curb property prices if there is a need to, said Mr Mah.

But he stressed that the Aug 30 measures had just been implemented, so the Government would simply continue monitoring the market for now.

'We're watching it constantly, watching it like a hawk, let me assure you,' he said.

Yesterday, Mr Mah also reiterated the Government's overall policy on handling housing prices.

Its approach, he said, was to pre-empt the growth of bubbles by deflating them slowly, rather than bursting them suddenly. He likened the calibrated steps by the Government to tapping on the brakes of a car.

'If we slam on the brakes all at once, then people may get thrown out of the window, people may get hurt, and worse still, the engine may stall,' he said.

The current approach differs from 1996's more drastic measures - including a capital gains tax - that caused the market to crash.

He added that the Government's goal was not to avoid price increases entirely, but to make sure that property market prices do not outstrip economic fundamentals.

Real estate agents contacted yesterday said the overall declines in COV and HDB flat transactions mentioned by the minister echoed what they have been seeing in the deals they have been involved in.

But they also said that private housing was unlikely to become cheaper any time soon.

Mr Eugene Lim, associate director of ERA Asia Pacific, said: 'The cost of financing remains cheap, and the strong currency is also attracting foreigners. While the Government is doing a lot to moderate the private property market, I don't expect prices to dip unless there's a recession.'

And despite the cooling, at least one potential first-time HDB buyer is still adopting a wait-and-see attitude.

Engineer Darren Lim, 27, who lives with his parents, said: 'COV may have fallen, but the total sale price is still too high. I will enter the market if COV falls by another $10,000.'

elgintoh@sph.com.sg

ST : Central Punggol for sale

Nov 27, 2010
REJUVENATING PUNGGOL
Central Punggol for sale
By Elgin Toh



The new project was part of a larger plan to make Punggol a town with as many HDB flats and residents as Toa Payoh. -- ST FILE PHOTO

Efforts to create a vibrant town in Punggol will receive a boost next week, when a mixed commercial-residential project at its town centre is put up for sale by tender.

The proposed site will comprise a 685-unit condominium estate and a 50,000 sq m commercial space - slightly larger than the Ang Mo Kio Hub - for leisure and shopping.

Located in Punggol's town centre, beside Punggol MRT station and a waterfront project, Punggol Waterway, it is aimed at injecting life into the young and growing town, and will eventually become the town's hub of activity.

However, potential bidders have to pay attention to a twist: they will be required to provide space for community events and activities, said National Development Minister Mah Bow Tan when announcing the project yesterday. The size of this community space was not revealed, but more details will be announced by the HDB in the coming week.

Mr Ong Teck Hui of Credo Real Estate said the idea of integrating space for community events enhances the desirability of the project.

The new project was part of a larger plan to make Punggol a town with as many HDB flats and residents as Toa Payoh. If demand for new projects stays robust, the HDB is on track to complete 35,000 flats there by the end of 2015.

Punggol is one of three pilot towns being given a facelift under HDB's Remaking Our Heartland initiative, which aims to rejuvenate housing estates. The other two towns are Dawson and Yishun.

Mr Mah was speaking at Dawson, where he attended a ground-breaking ceremony for SkyVille and SkyTerrace - two build-to-order projects that are among the most pricey new HDB flats ever launched. Still, they were oversubscribed by six times.

The projects will be developed with a mind to preserving Dawson's identity as one of Singapore's earliest housing estates.

The HDB has collected from residents interesting memorabilia to be displayed at heritage boards in the estate - including a pair of 1973 movie ticket stubs from the Queenstown cinemas which, at one time, ranked among the most popular entertainment spots here.

Elgin Toh

ST : Good sites on offer from Govt

Nov 26, 2010
Good sites on offer from Govt
Many residential plots in Govt's latest land release programme are near MRT

By Esther Teo
THERE are plenty of plum sites among the new plots in the Government's latest land release programme to tickle the fancy of developers.

The 17 plots with a residential aspect on the confirmed list include 11 that are near MRT stations, always an inducement for builders and home buyers.

The decision to spice up the sites on offer this time might be due to the lack of response to an executive condominium (EC) site in Jurong West.

The land did not receive a bid when its tender closed in August, likely due to its remote location and increasingly selective developers, who have their pick amid a bumper land supply.

Most sites in the release announced on Thursday are also near previously launched plots in Punggol and Buangkok that received strong demand from developers, said DMG & Partners analyst Brandon Lee.

Mr Lee added that the site locations may be aimed at meeting market demand and also strategically based on 'regions that the Government is trying to spruce up'.

Mr Marc Boey, the Urban Redevelopment Authority's (URA) group director of land sales and administration, said on Thursday that 'the larger consideration behind putting so many sites in the North-east is to develop Punggol and Sengkang towns since these are new towns'.

'If you look at Hougang, we also have some sites to cater to HDB upgraders,' he added.

Confirmed list sites go on sale regardless of interest and are often an indication of the Government's strategic development plans. Land on the reserve list is put up for tender only if developers make an acceptable initial offer.

Of the 17 newly introduced sites with a residential component on either the reserve or confirmed lists, two are in Hillview Avenue in the Bukit Batok planning area.

That these were included probably signifies the Government's intent to further build up the area in tandem with the completion of infrastructure works such as Hillview MRT Station. Part of Downtown Line 2, it is slated for completion in 2015, experts said.

Mr Ong Kah Seng, Cushman & Wakefield's senior manager of Asia-Pacific research, said Hillview was once a semi-industrial area but was converted largely to residential use in the 1980s. This prompted the building of various condo projects.

One of the Hillview Avenue sites is a commercial and residential plot on the confirmed list which is estimated to be launched in February next year.

It was scheduled to be made available for sale on the reserve list in October 2008 but was eventually withdrawn amid a poor market.

The other site is for residential use and is on the reserve list.

DMG's Mr Lee said that the last government land site sold in the area was a Bukit Batok East plot in 2000. Far East Organization has since developed it into the 572-unit Hillview Regency.

The Government has also released smaller commercial sites such as the 0.29ha plot at the corner of Robinson Road and Cecil Street and a 1.42ha site in Paya Lebar. These could yield about 92,120 sq m of commercial space.

The URA said smaller sites which can be completed in about three years will help allay fears of a shortage of office space in 2014 once most ongoing developments have been completed.

Dr Chua Yang Liang, research head at Jones Lang LaSalle, said the release of the Robinson Road site was not surprising given the Government's intent to rejuvenate the Tanjong Pagar area into an integrated zone for 'live, work and play'.

Two hotel sites in Kallang Riverside are on the reserve list. A second parcel has been introduced for the first half of next year even though the first site did not draw any acceptable bids from developers when on the reserve list under the previous land sales programme.

Cushman's Mr Ong said that the inclusion of the two hotel sites could be due to the level of optimism in the industry thanks to increased visitor arrivals.

Mr Li Hiaw Ho, executive director of CB Richard Ellis Research, added that Kallang has been earmarked to be gradually transformed into a waterfront precinct with housing and the upcoming Sports Hub.

'A river-view hotel catering to athletes and other sports fans will help to further enhance the development of the Kallang area,' he added.

The last hotel site in the Kallang area was awarded in October 2008 to Citywide Land for $51 million, or $250 per sq ft per plot ratio.

esthert@sph.com.sg

ST : Govt expected to release Marina Bay land from 2013

Nov 26, 2010

Govt expected to release Marina Bay land from 2013

DEVELOPERS eyeing prime Marina Bay land might have to wait until at least 2013 before getting a chance to lodge a bid.

That is when the Government is expected to start releasing 11 parcels of land in step with the completion of infrastructure works in the area. These projects include the Downtown rail line and the Marina Coastal expressway, which will be completed in phases in the next few years, said the Ministry of National Development (MND) yesterday.

Urban Redevelopment Authority (URA) urban planning and design director Andrew Fassam said about 1.75 million sq m of gross floor area could stem from these parcels, about four times the area of nearby Marina Bay Financial Centre. The 11 sites may be released individually in future land sales programmes or combined with neighbouring plots.

However, the four mixed-use land parcels to be jointly developed by Malaysia and Singapore as part of the railway land swop deal are expected to be vested for development next year. The four land parcels have a gross floor area of 341,000 sq m, part of which will be for office use. These sites and two other land swop deal plots can yield a combined gross floor area of 500,000 sq m.

URA group director of land sales and administration Marc Boey said smaller sites have been released to address concerns that there might be a shortage of office space in 2014 once most ongoing developments are completed. These sites, such as one announced yesterday in Cecil Street and one on the corner of Peck Seah and Choon Guan streets, can be completed in about three years, he said.

Apart from the government land sales programme, an additional supply of about 39,000 sq m of gross floor area of commercial space can be expected to be released by various government agencies in the first half of next year, the MND said.

ESTHER TEO

ST : Govt keeping close eye on property sector

Nov 26, 2010

Govt keeping close eye on property sector

It stands ready to act to cool fever as low interest rates, overseas fund flow raise heat

By Francis Chan
LOW interest rates in a market awash with cash are just the ingredients that could heat up property prices and encourage excessive borrowing.

But the Monetary Authority of Singapore (MAS) said the Government is keeping a close tab on the market and stands ready to introduce additional cooling measures if necessary.

The central bank's annual Financial Stability Review warned yesterday that the flow of funds from overseas and rock-bottom interest rates could add more fuel to the red-hot property sector.

Concerns were raised over what is expected to be a 'sustained period of low interest rates' where home buyers may be tempted to take on excessive borrowing while lenders may loosen standards in a bid to extend more loans in the face of thinning interest margins.

'As the property market is sentiment-sensitive, a pick-up in activity could lead to rapidly escalating prices,' said the MAS.

'In turn, if economic recovery dis-appoints on the downside amid continued uncertainties in the global economy and market confidence is dented, prices could fall.'

It added that this could have widespread implications on buyers who are overextended when interest rates eventually go back up.

But the MAS said the Government will keep monitoring the property market and adopt additional cooling measures if needed.

In August, the Government imposed steps to tighten ownership rules on buyers of HDB flats, set new loan limits and increased the amount of time a buyer must hold a property before reselling it.

Similar moves in February and September last year were also brought in to curb rocketing prices.

Urban Redevelopment Authority figures are already showing signs of a moderation. Private property prices were up just 2.9 per cent in the third quarter compared with the 5.3 per cent jump in the second quarter.

However, soaring property valuations - a by-product of Singapore's strong economic growth - have helped lower the relative indebtedness of home owners with mortgages.

The share of outstanding loans to the value of the property fell significantly in the third quarter. This is because as a property's value goes up, the ratio of the loan to its value falls.

The proportion of mortgages with loan-to-value (LTV) ratios above 80 per cent dropped from 17.3 per cent in the third quarter last year to just 7.1 per cent this year.

LTV ratios above 70 per cent also fell, from 35.1 per cent to 27 per cent over the same period.

International Property Advisor chief executive Ku Swee Yong said lower LTV ratios point to a systemically sound lending environment.

'It is not a risk from a financial institution's viewpoint because with the low LTV ratio, the banks can withstand, say, up to a 20 per cent drop in property prices, without calling on the margin of the borrower,' said Mr Ku.

'For home owners, the news will also be a comforting thought.'

franchan@sph.com.sg



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WATCHING THE MOOD

'As the property market is sentiment-sensitive, a pick-up in activity could lead to rapidly escalating prices.'

Monetary Authority of Singapore

ST : Household net wealth at all-time high

Nov 26, 2010

Household net wealth at all-time high

By Francis Chan
SOARING property valuations have sent the net wealth of households rocketing to an all-time high of $1.16 trillion in the third quarter of this year.

That is 29 per cent up from the height of the financial crisis early last year, and higher than the $1 trillion that households registered a year ago, itself a record.

The Monetary Authority of Singapore (MAS) released the numbers yesterday in its annual Financial Stability Review.

It said balance sheets of households, which were supported by broad-based economic recovery, have largely remained strong.

'The gain was largely due to the higher value of property holdings as the property market continued its upward trajectory after bottoming out in the first quarter of 2009,' said the central bank.

It said property holdings reached an estimated $651 billion in the three months to Sept 30, up 21 per cent from the $537 billion recorded in the same period last year.

'Another contributing factor to rising household net wealth was larger holdings of equity and managed funds, owing to the turnaround in global equity markets in Q3 2010,' added the MAS.

Household net wealth comprises assets less debts.

According to the annual review, aggregate household net wealth stood at 3.9 times Singapore's gross domestic product (GDP) in the third quarter, up from about 3.8 times GDP a year ago.

'The household debt-to-GDP ratio stood at about 67 per cent in the third quarter, which was below the long-run average of about 77 per cent, implying that economic growth has outstripped growth in household debt,' said the MAS.

'In addition, liquid assets have exceeded household debt since 2006.'

The debt-to-assets ratio has remained relatively low, with household debt at about 15 per cent of assets. This is below the long-term average of about 18 per cent.

Cash and deposits also exceeded total household debt, according to MAS estimates.

However, the quick economic turnaround and prevailing low interest rate environment has resulted in higher household debt.

'The key driver of this growth has been housing loans, which account for the bulk of household borrowing,' said the MAS.

'Indeed, reflecting the transaction activity seen in the property market, housing loans grew 23 per cent year-on-year in the (third quarter), up from 8.8 per cent at the trough of the property market in the (first quarter of) 2009.'

While the national debt-to-asset ratio remained 'healthy', industry watchers like International Property Advisor chief executive Ku Swee Yong pointed out a few blind spots.

'We cannot forget that if we stripped out the old money - those from my parents and their kakis (peers) who have fully paid up their mortgages, the risks lying with the next generation, or lower income group, may turn out to be higher', said Mr Ku.

ST : Kwong Wai Shiu Hospital can stay, Govt says

Nov 26, 2010

Kwong Wai Shiu Hospital can stay, Govt says
KWSH is also in talks with the authorities to set up another hospital

By Rachel Lin
SINGAPORE'S longest-running charity hospital is set to get two birthday wishes granted.

Kwong Wai Shiu Hospital (KWSH), which celebrates its centenary this year, has been given the green light to stay in its spiritual home in Serangoon Road.

Its expansion plans are also steaming ahead. KWSH is in talks with the Urban Redevelopment Authority and the Ministry of Health to set up a new hospital elsewhere in Singapore, which it hopes will be up and running in three years' time.

This new hospital, which will have 250 to 300 beds, will be located in the heartland and capitalise on KWSH's strengths in geriatric care and rehabilitation.

Both developments were announced last night at a gala dinner thrown to celebrate KWSH's 100 years.

Previously, the 400-bed hospital's future at its Serangoon Road site was uncertain, because the lease on the land was due to expire in 2015.

It was up to the dinner's guest of honour, Prime Minister Lee Hsien Loong, to deliver the good news.

'KWSH's board of directors have been hoping that the Government will extend their lease,' he said in a speech in Mandarin. 'The Government understands their wish and recognises the historical significance and value of the site.'

The Government would therefore preserve some of KWSH's existing buildings on the site, namely those with historical value. The rest of the six acre (2.4ha) plot will be redeveloped.

KWSH chief operating officer Ling Bee Sian had told the press in July that the hospital, which has 14 blocks, needed only one acre out of the six.

Mr Lee's announcement was met with rousing applause from the 800-strong audience at the charity gala dinner at the Shangri-La Hotel.

KWSH vice-chairman Patrick Lee responded warmly to the news. 'We are very glad... Holding a piece of land while being unsure of the future, it's hard for the hospital to plan ahead.'

The present site, he said, was significant not just as a place where medical care was provided, but also because of its social value. He said that the hospital may consider intensifying its use of the preserved blocks, for instance by adding more floors to the buildings.

On the sidelines of the dinner, the vice-chairman also spoke of the hospital's mission to expand: 'We have 100 years of experience, we want to share this experience in different parts of Singapore.'

It is still in the process of selecting a suitable site for a second hospital. KWSH hopes to get government support for this venture, he said.

KWSH's operating costs run to $16 million annually and its rent on the Serangoon Road site is $1.7 million a year.

While it does receive subsidies from the Government, it is still heavily dependent on charitable donations, he said.

KWSH was the only community hospital that did not raise its fees last year. It was founded in 1910 by a group of Cantonese merchants who wanted to provide free medical care for Cantonese immigrants. Since 1974, it has opened its doors to patients of all ethnic groups.

PM Lee praised its role in providing step-down and community care. 'KWSH has accumulated rich experience in these areas and sunk deep roots into the community,' he said. 'It can take the lead in expanding and strengthening such care... helping us cope with the medical demands of an ageing population.'

lyuexin@sph.com.sg

Copyright © 2010 Singapore Press Holdings. All rights reserved.



The Kwong Wai Shiu Hospital in Serangoon Road is celebrating its centenary this year. -- ST PHOTO: DESMOND WEE

ST : Govt to roll out land for record units of homes

Nov 26, 2010

Govt to roll out land for record units of homes

By Esther Teo
THE booming housing market has led the Government to roll out enough land sites to accommodate a record-breaking number of new private homes.

If all the plots were taken up, developers could build at least 14,310 new homes, the Ministry of National Development (MND) said yesterday in unveiling the land sales programme for the first half of next year.

This beats the most recent release of residential land in the second half of this year, which could have yielded 13,905 homes - itself a record.

In all, the Government has lined up 31 sites that can be used for homes. And in what some consultants have called an 'aggressive stance', 17 of the sites have been placed on the confirmed list, with at least two sites to be released every month in the first half of next year.

The other 14 sites are on the reserve list. Confirmed list sites go on sale regardless of interest, while land on the reserve list is put up for tender only if developers table an acceptable initial offer.

Most of the residential sites on the confirmed list are new - 14 out of 17 - but only three on the reserve list are new. The rest are rolled over from the current government land sales programme.

The new sites are located mainly in suburban areas such as Punggol, Woodlands and Pasir Ris, to address the strong demand that has emerged for mass market private housing.

Four new executive condominium (EC) plots have also been added to the line-up - in Tampines, Choa Chu Kang, Punggol and Upper Serangoon.

Experts said the new supply should meet demand for more housing choice and stem further rises in mass-market condominium unit prices.

DTZ South-East Asia's research head, Ms Chua Chor Hoon, said a substantial number of units could be expected to be completed in a few years if developers soaked up the supply.

This, however, might lead to oversupply: 'too many units chasing after a smaller pool of occupants' if Western economies do not pick up by then and global growth is weak, she said.

Dr Chua Yang Liang, research head at Jones Lang LaSalle, noted that many of the new sites were placed on the confirmed rather than the reserve list.

'The more aggressive stance taken by the state to continue to flood the market with supply signals the serious implications of asset inflation,' he said.

He also offered a word of caution over a potential 'supply overhang'.

But Mr Liew Mun Leong, president and chief executive of property giant CapitaLand, said at a separate event yesterday that he did not think home prices would be depressed, even with this bumper supply of land.

'First and foremost, demand is still there. Developers still want to buy and get their inventories built up,' he said.

Mr Ong Kah Seng, Cushman and Wakefield senior manager of Asia-Pacific research, said the four EC sites - three of which are on the confirmed list - showed the Government's intent to continue helping the 'sandwich class' - those with monthly household incomes between $8,000 and $10,000.

However, he warned that interest for these sites may not be overwhelming as a few EC projects are already slated for launch next year. One such site put up for sale by the government in Jurong West recently did not receive any bids.

The MND will also launch more commercial sites to meet demand for office space. It will release one site each at Paya Lebar Road and Robinson Road on the confirmed list that can yield an estimated 92,120 sq m of commercial space.

The Paya Lebar site was originally on the reserve list but has been moved to the confirmed list to facilitate the early development of Paya Lebar Central into a commercial hub, the Ministry said.

A commercial site at the corner of Sims Avenue and Tanjong Katong Road will be added to the reserve list too, to provide for growth in the area.

esthert@sph.com.sg

ST : d'Leedon condo at $1,680psf

Nov 25, 2010
d'Leedon condo at $1,680psf
By Yasmine Yahya



CapitaLand unveils their new show gallery for D'Leedon at the former Farrer Court condominium site. -- ST PHOTO: KEVIN LIM

UNITS at the newly unveiled d'Leedon condominium will be launched at an average initial selling price of $1,680 per square foot (psf).

That makes the cheapest apartments - 635 sq ft units with a bedroom and study - less than $1 million. A typical two-bedder of 1,055 sq ft would set a buyer back $1.5 million.

The project is on the site of the former Farrer Court estate, which was sold in a collective sale in 2007. A first phase of 200 units will be launched for sale this weekend to former Farrer Court residents.

Developer CapitaLand said a public launch would likely follow soon after.

There has been a healthy level of interest among former Farrer Court residents, said Mr Wong Heang Fine, chief executive officer of CapitaLand Residential.

He told a briefing yesterday that 300 of the 600 former residents said they would attend a preview last night.

The Straits Times understands that CapitaLand could adjust prices, depending on how this weekend's launch goes.

CapitaLand Group chief executive Liew Mun Leong expects that once the project is launched for public sale, it will attract interest from foreign investors looking to park their money in Asia.

'Funds will come in because of the liquidity chase coming to Asia. And if they come to this part of the world, of course they will buy property, because it's the safest form of investment,' he said.

The 200 units being launched this weekend range from one- to four-bedroom apartments and are in two 36-storey towers. The entire project consists of 1,703 apartments in seven towers and 12 semi-detached villas.

Although d'Leedon sits on a huge site of over 840,000 sq ft, only 22 per cent of the land area is being taken up by homes. The rest is slated for gardens, facilities such as two swimming pools and a gym and retail outlets, which could include restaurants, a laundromat and a clinic.

Mr Liew also said that it was 'a possibility' that CapitaLand could be interested in bidding for a similarly large site - the collective sale of Pine Grove estate in Ulu Pandan.

While the site is attractive, the price tag of $1.7 billion is a hefty one for any single developer to take on alone, he said.

'I don't know how many of us can afford it,' he quipped.

However, he said CapitaLand would consider getting partners to bid for the site - as it had done for Farrer Court, when it formed a consortium with Hotel Properties, Wachovia Development Corporation and a fund managed by Morgan Stanley Real Estate.

ST : KL may look into reviving Causeway bridge project

Nov 25, 2010

KL may look into reviving Causeway bridge project

KUALA LUMPUR: Prime Minister Najib Razak said yesterday the government may study the possibility of reviving a project to replace the Malaysian side of the Causeway with a bridge.

Asked about the call by the Johor Sultan that a bridge be built to replace the Causeway, Datuk Seri Najib said that a study would have to be carried out first. The government had to consider the legal and financial implications and also the position of the Singapore Government, he added.

Johor Sultan Ibrahim Ismail raised the suggestion during a ceremony to mark his 52nd birthday on Monday.

He said having a new bridge would make it convenient for people travelling to Singapore and back, and would encourage tourism. The Sultan made similar remarks in June for the revival of the bridge project that was cancelled four years ago.

Tun Dr Mahathir Mohamad had proposed building a bridge to replace the Causeway when he was prime minister. The plan was later changed to an S-shaped or 'crooked' bridge on Malaysia's side of the Causeway. When Mr Najib's predecessor Abdullah Badawi became the premier, he cancelled the project in April 2006.

Johor politicians have voiced support for the Sultan's call. Johor Baru Malaysian Chinese Association Youth chief Kua Song Tuck touted the ecological benefits, saying it would be 'a win-win for both Johoreans and Singaporeans'. A new bridge would solve the traffic jams at the Causeway, he said.

Johor Malaysian Indian Congress secretary M. Asojan said the Sultan had done his own research on the positive aspects of building the bridge. He added the federal government would give the matter serious consideration. Johor Parti Keadilan Rakyat chairman Chua Jui Meng said the call was timely. 'However, it must be done without burdening the country in terms of debt,' he said.

BERNAMA, THE STAR/ASIA NEWS NETWORK

Copyright © 2010 Singapore Press Holdings. All rights reserved.



The S-shaped bridge project had been cancelled by then Premier Abdullah Badawi in 2006. -- PHOTO: BH MALAYSIA

ST : Housing agent fined for forgery

Nov 25, 2010

Housing agent fined for forgery
By Elena Chong, Courts Correspondent

A REAL estate agent forged two copies of a tenancy agreement to pocket $1,000 monthly from the rental of an apartment without the knowledge of both landlord and tenant.

Yesterday, David Wee Sim Chye, 47, was fined $4,000 by District Judge Toh Yung Cheong after he admitted to one charge of forgery.

A district court heard that operations manager Pek Kain Hock, 51, engaged Wee to rent out his condominium unit at Parc Oasis in Jurong East in May 2007.

Wee, who runs his own business, YMB International Realtors, managed to find a tenant, American Warren Duplantis.

But the real estate agent had forged the signatures of the tenant and Mr Pek on the two copies of the tenancy agreement.

Mr Duplantis ended up paying a monthly rental of $5,800, which was $1,000 more than the $4,800 that was agreed between Wee and Mr Pek.

Five months later, the American met Mr Pek to discuss the early termination of the tenancy agreement.

He told the landlord that his own signature in Mr Pek's copy of the tenancy agreement had been forged.

Mr Pek also learnt that the tenant's copy of the tenancy agreement had stated a monthly rental of $5,800, and his signature in that document had also been forged.

Investigations showed that Wee had committed the forgeries to pocket a sum of $1,000 monthly from the tenancy agreement.

His lawyer told the court that the father of two had contacted the tenant in October 2007 to return the difference to him, well before the charges were preferred.

Full restitution of the money was made in June this year.

Wee, who had a second charge considered, could have been jailed for up to four years and/or fined.

elena@sph.com.sg

ST : 6 bids for Tampines executive condo site

Nov 24, 2010

6 bids for Tampines executive condo site

By Harsha Jethnani

AN EXECUTIVE condominium site in Tampines Avenue 8, launched last month, has chalked up six bids, with offer prices slightly higher than market expectations.

The top bid of $187.6 million or $302 per sq ft per plot ratio (psf ppr) came from a consortium comprising Hoi Hup Realty, Sunway Developments and SC Wong Holdings.

The 20,600 sq m site, put out to tender on Oct 6, is set to yield about 525 units.

Analysts had expected prices for the site with a maximum gross floor area of 57,680 sq m to range from about $220 to $280 psf ppr.

The second top bid was from another consortium, made up of Opal Star and Lum Chang Building Contractors, which offered $172.8 million or $278 psf ppr in the tender, which closed at noon yesterday.

Demand for executive condo sites launched in the second half of the year has been tapering off.

Two sites at Punggol drew five and four bids when tenders closed in June and September. In August, a site at Jurong West saw no bidders.

However, the somewhat stronger response for the Tampines land parcel 'shows that developers are fairly confident about this site', said Mr Li Hiaw Ho, executive director of CBRE Research.

He added that the site is within walking distance of Bedok Reservoir and Temasek Polytechnic. It is also near Tampines Central, Tampines MRT station and the Tampines Retail Park featuring Giant, Ikea and Courts outlets.

Mr Li said the $302 psf ppr offer price translates to a break-even cost of $600 to $620 psf.

Going by the experience at Waterview, a private condo at Bedok Reservoir where 200 units were reported to have been sold at an average of $838 psf last week, 'there will be a market for this new EC project if it is priced at a differential of 15 to 20 per cent lower than Waterview', said Mr Li.

That works out to a selling price of $670 psf to $712 psf.

ST : Citi signs lease for 8 floors at Asia Square

Nov 24, 2010

Citi signs lease for 8 floors at Asia Square

Marina Bay deal part of bank's expansion, including hiring few hundred staff each year

By Esther Teo

IN A fresh sign of continuing strong demand for prime office space, Citi Singapore has signed up as a tenant at Marina Bay, Singapore's newest financial and business district.

Citi said yesterday that it has signed a 10-year lease for more than 250,000 sq ft - or eight floors - at Asia Square Tower 1.

This will accommodate up to 2,700 staff across its consumer, corporate and private banking businesses. It is expected to cost the bank $85 million in renovation and relocation costs.

This mega deal brings total leasing for Asia Square Tower 1 to about 50 per cent of the 1.26 million sq ft of available office space. There is 'substantial interest' in the rest of the space, said MGPA Asia chief executive John Saunders.

Asia Square is a mixed-use development being established by private equity real estate advisory company MGPA.

It comprises two towers, with the first be completed by June next year. Tower 2 is set to be ready in 2013 and will boast 780,000 sq ft of office space along with a five-star hotel with about 280 rooms.

Rents at Asia Square will be higher than the market range of about $10 per sq ft per month. A new tenant looking at mid- to top-floor space is likely to pay double-digit rents, Mr Saunders said.

Citi said the move to the Marina Bay premises will allow it to consolidate its trading rooms as part of its expansion and growth plans in Singapore. The headcount is expected to rise by a few hundred each year, said country head Michael Zink.

'More and more of the economic growth in the world economy is here in the Asia-Pacific region and Citi...has to figure out how to deal with that rebalancing. Singapore is the place where we're putting a lot of our incremental Asian business to serve our clients, not only here, but around the region,' Mr Zink added.

Employees currently in Centennial and Millenia Towers, and some in Capital Square, will move to the new location from the last quarter of next year through to 2013 as existing leases expire, Citi said.

Although Singapore's office market has suffered a downturn over the past few years, rents have been rising of late and companies are starting to realise that the amount of prime space available is becoming more finite, Mr Saunders said.

'When you look at Singapore in a regional context, I think with the rent levels we have at the moment, Singapore is still a competitive place to do business. Rents are very substantially lower than, let's say, Hong Kong and other comparable cities,' he added.

Asia Square will feature green elements such as a biodiesel generation plant to recycle food oil waste produced at catering firms on site. It will also have 400 bicycle racks, shower facilities and lockers, to encourage more people to cycle to work.

Other tenants secured by Asia Square include American law firm White & Case, Pure Fitness, Swiss bank Sarasin, Swiss private banking group Julius Baer, and insurance giant Lloyd's.

esthert@sph.com.sg

ST : 2nd chance to vote for lift upgrading: Mah

Nov 24, 2010

Parliament

2nd chance to vote for lift upgrading: Mah

By Teo Wan Gek

OF THE 5,000 blocks of HDB flats offered lift upgrading since 2001, only a very tiny number have voted against it.

Minister for National Development Mah Bow Tan said yesterday that residents of 54 blocks - scattered around Singapore - chose not to take up the offer to have lift landings on every floor.

These blocks will, however, be given a second chance to vote on the matter, he said in a written reply to Mr Baey Yam Keng (Tanjong Pagar GRC).

Under HDB rules, 75 per cent of the households in a block have to vote for the programme for it to be carried out.

Mr Baey had asked if blocks which had earlier failed to achieve the 75 per cent would be offered another chance, as some flat owners and their sentiments would have changed over the years.

Of the 54 blocks, 32 blocks have been allowed to rethink their decision, and 22 of that group have obtained the 75 per cent majority which gets them lift upgrading.

The other 10 blocks have yet to vote a second time.

The remaining 22 blocks that failed to meet the 75 per cent threshold can still be re-offered the Lift Upgrading Programme (LUP), said Mr Mah, adding that grassroots advisers can work with the HDB to do so.

In wards held by the People's Action Party, the elected MPs are the grassroots advisers. In opposition-held wards, advisers are people appointed by the People's Association.

Said Mr Mah: 'The Government is committed to complete the LUP by 2014. Therefore, we urge residents to exercise their polling options carefully within this timeframe, taking into consideration the benefits that the LUP will bring to them and their families.'

The programme is heavily subsidised by the Government. Residents and town councils each pay between 5 per cent and 12.5 per cent of the cost, depending on flat size and configuration of the block.

A total of $3.8 billion has been earmarked for this programme.

The polling of residents usually takes place nine to 15 months after the HDB announces its selection of a precinct of several blocks for lift upgrading.

ST : Property market in Asia 'unlikely to crash'

Nov 24, 2010

Property market in Asia 'unlikely to crash'

By Cheryl Lim

THERE is little chance of a property market crash in Asia, says KPMG international real estate chairman Jonathan Thompson.

He also reckons that the recent move by the United States central bank to pump vast sums into the economy, in a policy known as quantitative easing, is likely to bode well for Asian commercial real estate.

Mr Thompson, who is based in London, was in Singapore recently as part of a visit to key markets in the region. His main interest is commercial real estate.

He observed that while there is a more obvious bubble in Asia's residential property sector, the region will probably not see a property crash.

Citing property collapses in the US and Europe as examples, Mr Thompson said either an economic crash or a withdrawal of credit by banks would be needed to trigger a similar situation in Asia.

He said that Asia has what it takes to sustain a stable and steadily growing real estate market.

This is thanks to the region's growing economies, financially strong banking sector and broadly balanced supply and demand of property.

'You have to be careful with it (real estate), when it gets over-enthusiastic. Because there's so much money involved, when you have a crash, people lose a lot of savings. If the banks overlend, you get a financial crisis.'

Mr Thompson added: 'It's really on the regulators' minds, they really don't want to have a real estate bubble cause another financial crash.'

He said real estate is now increasingly seen as a different asset class, with different diversification features as compared with equities and bonds.

He also predicted that more institutions and individuals will buy into both domestic and international residential and commercial property.

Quantitative easing will directly affect property in Asia, Mr Thompson added. '(The weak dollar) will add inflationary pressure in markets like Singapore and Hong Kong...This is very positive for commercial real estate, because it is perceived to be a quite good hedge against inflation.'

ST : Rental flat scheme has helped over 1,300 families

Nov 24, 2010

Parliament

Rental flat scheme has helped over 1,300 families

A TOTAL of 1,318 families have benefited from the Interim Rental Housing (IRH) scheme since it was introduced in January last year to help citizens in financial difficulties.

Of these, 311 have since moved out of IRH flats. National Development Minister Mah Bow Tan provided the update in a written answer to Dr Lam Pin Min (Ang Mo Kio GRC).

Dr Lam had asked about the demand for the scheme, which was designed to provide temporary accommodation for needy families while they worked out their housing issues or waited for more permanent housing.

The number of those who have benefited from the scheme has grown since March 31. Then, 611 families had been helped and 87 families had moved on.

Under the scheme, two families have to share a three-room flat. Dr Lam asked if that requirement could be waived for larger families.

Mr Mah explained that flat sharing was necessary 'to keep rents low for these families in financial difficulty'.

Each family is charged between $300 to $400 a month, which includes utilities and service and conservancy charges.

But in cases where a family's size is large, the appointed operator of the IRH flats can choose to rent out to the family a two-room flat, or two rooms in a four-room flat.

The IRH flats are located in places such as Toa Payoh, Havelock Road and Bedok South, where three-room flats are usually rented out for $1,200 a month.

When it was introduced last year, the IRH scheme was meant to help families that had run into financial difficulties and needed to downgrade quickly.

With the scheme, families could sell their flats immediately, and buy new smaller flats. While these were being built, they could live in rental flats priced below market rate.

This was then part of a series of measures to reduce the number of defaults on home loans.

TESSA WONG

ST : HK may cool property sector further

Nov 23, 2010

HK may cool property sector further

HONG KONG: The Chinese city's Financial Secretary has hinted at further measures to cool the red-hot Hong Kong property market, as real estate agents reported a drop-off in sales after tough new rules were unveiled last week.

'We will launch appropriate measures again when it's needed,' Financial Secretary John Tsang wrote on his blog on Sunday. 'I can say without a doubt, we will not turn a blind eye to the risks that are affecting our economy and financial stability.'

The city needs to be decisive and proactive in mitigating the risks posed by the asset bubble, he added. 'It unsettles me to know that speculators are capitalising on market sentiments...to make profits.'

Mr Tsang on Friday last week unveiled a range of measures aimed at restraining property prices - the toughest steps yet to rein in home values that have soared more than 50 per cent since January last year. Among the measures was a sliding scale of new stamp duties aimed at discouraging people from selling property quickly after buying it.

As of the weekend, anyone reselling a property within six months of purchase is now subject to a 15 per cent stamp duty. A 10 per cent duty applies to sales within six to 12 months, and 5 per cent within 12 to 24 months.

The head of the Hong Kong Monetary Authority, the city's de facto central bank, also outlined measures tightening the issuance of mortgages.

The measures appeared to have an immediate impact, with secondary residential home sales dropping off over the weekend. Weekend sales of used homes fell 83 per cent from the previous week, according to data from Centaline Property Agency, the city's largest closely held real estate broker.

Ricacorp, one of Hong Kong's largest real estate agents, said sales had plunged by 70 per cent on Saturday and Sunday, compared with the previous weekend. 'Clients are postponing signing contracts,' managing director Willy Liu told Agence France-Presse.

Mr Raymond Chan, regional sales director of Midland Realty, said sales of newly built properties had also dipped: 'We expected a blow-out sale for a property launch last Friday, but it sold only around two-thirds, far short of our expectations.'

The United States bond purchase programme announced earlier this month has heightened the asset bubble risk in Hong Kong and it was necessary for the government to adopt 'pre-emptive' measures, Mr Tsang wrote on the blog.

There is no need to change the city's currency peg to the US dollar as this is not the 'major factor' leading to an asset bubble risk, he said. The Hong Kong dollar has been pegged to its US counterpart since 1983.

BLOOMBERG, AGENCE FRANCE-PRESSE

ST : S'pore tops in office rental growth

Nov 23, 2010

S'pore tops in office rental growth

It shares the spot with China with 11% growth

By Esther Teo

OFFICE landlords here have much to cheer about after rises in third-quarter Grade A rents outshone gains in other Asia-Pacific business centres.

Singapore, along with Beijing, topped the table, according to a survey by property consultancy Jones Lang LaSalle (JLL).

Both recorded quarterly net effective rental growth of 10.9 per cent in local currency terms. This excludes outgoings such as maintenance fees and property taxes and aims to reflect the net rental income earned by property investors.

Gross effective rent measures the total occupancy costs paid by tenants.

Singapore was ranked fourth out of 26 Asia-Pacific cities in terms of net effective rent, with landlords getting an average of US$671 (S$870) per sq m a year, JLL said.

This level is behind those of Hong Kong, Tokyo and Mumbai, but above those of other regional business centres such as Ho Chi Minh City, Kuala Lumpur and Bangkok, which rank 6th, 21st and 22nd respectively.

JLL said the average prime Grade A gross effective rent here in the third quarter was $8.70 per sq ft of net lettable area per month.

This puts it above levels in 2000, but it is still about 16 per cent, 23 per cent and 52 per cent below peak levels in 1991, 1996 and 2008 respectively, JLL added.

The firm said that although prime Grade A gross effective rents have increased 12.3 per cent so far this year, more rises are expected by the year end.

'Upside potential for rents next year and in 2012 also appears visible considering their current level vis-a-vis previous peak levels,' JLL added.

Still, a large supply of office space is set to come onstream next year, which means vacancy levels are expected to rise in the short term.

Even with steady demand levels, rental growth is expected to be slower in the first half of next year compared with the second half and further on in 2012.

JLL head of markets Chris Archibold said levels of occupier interest in new developments have been very strong over the last six months.

He added that the numerous large relocation transactions have further bolstered investor sentiment.

'Next year will see significant supply coming online but a fair degree of this is pre-committed, and while vacancy will increase in the first half of next year, we do not foresee this having any adverse effect on rentals,' he said.

JLL also said the Asia Pacific Office Rental Index gained 1.8 per cent in the third quarter, with more markets expected to strengthen as landlords start to gain bargaining power across the board.

Mr Ong Kah Seng, Cushman and Wakefield's

senior manager of Asia-Pacific research, said that new multinational corporations entering the market looking for space and existing companies embarking on expansion plans have helped the recovery in prime office rents.

Companies generally recognise that prime office rents are still way below the record high in mid-2008, he said.

There is also a limited forthcoming supply as the lacklustre years in the second half of 2008 and last year saw a dearth of new office development plans being kicked off, Mr Ong added.

esthert@sph.com.sg

ST : S'pore not likely to see HK-style property curbs

Nov 23, 2010

S'pore not likely to see HK-style property curbs

Market not as bubbly and recent measures still taking effect: Analysts

By Cheryl Lim

THE new cooling measures aimed at taking the heat out of Hong Kong's sizzling property market are unlikely to be inflicted on Singapore any time soon, according to industry experts.

They believe Singapore's market is not at the same frenzied level as in Hong Kong while recent steps brought in by the Government here need time to take effect.

The Hong Kong measures have targeted speculators with a sliding scale of new stamp duties.

Restraints on lending, mostly directed at the luxury end of the market, have also been put in place.

If these steps do not help deflate the asset bubble that is clearly building, harsher measures are almost certain to be put in place, as hinted in Hong Kong Financial Secretary John Tsang's official blog on Sunday.

While both Singapore and Hong Kong have similar characteristics - they are dynamic avenues for foreign investment, have scarce land and compete to attract rich investors - analysts say such steps are not likely to be on the cards here.

'It's unlikely the Government will simply follow what other governments are doing,' said Ms Tay Huey Ying, director of research and advisory at Colliers International.

'Singapore's Government has shown itself to be very measured in introducing cooling measures; the steps taken have been trying to temper exuberance without countering demand.'

The Government imposed cooling steps in August that tightened ownership rules for HDB buyers, set new loan limits and increased the amount of time a home buyer must hold on to his property before reselling it if he wants to avoid paying sellers' stamp duty.

Dr Chua Yang Liang, research head at Jones Lang LaSalle, said Singapore is still a way off from needing Hong Kong-style measures.

He said several factors, including transaction volume and the rate of increase in prices, would have to undergo an 'unusual spike in demand' before the Government decides to turn the screw a little tighter.

Even if this happens, any further cooling measures that Singapore is likely to take will probably differ from Hong Kong's, he said.

Mr Mohamed Ismail, chief executive of property agency PropNex, said the policies introduced in August should be given time to take effect before the Government decides to act again.

He also believes that incremental changes to property policies are not the way to go.

'It creates instability in the minds of investors and destabilises the local market. Buyers will be kept guessing how often or how soon the policies will change...they will be more detrimental if they come in small doses.'

Keeping this in mind, the Government must strike a fair balance if and when it acts, Mr Ismail said.

'You don't want speculators to drive up prices, but you have to keep the property market exciting enough for investors to bring in the money.'

However, Ms Tay believes that introducing new cooling measures is unlikely to change the mindsets of Asian investors who have traditionally looked at property as investments.

'With attractive low interest rates, buyers are finding (buying property) more worth their while than parking money in the bank...unless cooling measures really impact affordability, property will continue to remain as an alternative investment.'

Data released by the Urban Redevelopment Authority earlier this month showed that developers had sold 1,058 private homes last month, excluding executive condominiums, an increase of 16.1 per cent from September.

cherlim@sph.com.sg

ST : 1,715 units coming up at Farrer Court

Nov 23, 2010

1,715 units coming up at Farrer Court

THE much-anticipated project to be built on the former Farrer Court site is expected to be previewed later this month after almost two years of delay.

Marketing material obtained by The Straits Times indicates that CapitaLand's massive 1,715-unit development will be named D'Leedon.

The 99-year leasehold project, consisting of seven 36-storey towers and located on a 838,488 sq ft site, will include one- to four-bedroom apartments, penthouses and 12 strata villas.

Marketing agents said the average price across the project will be in the $1,600 to $1,800 per sq ft (psf) range.

However, with City Developments' freehold project, The Glyndebourne, in the vicinity selling at an average price of $2,100 psf, smaller units might fetch comparable prices as well, they added.

The Straits Times understands that a preview will be held for the developer's invited guests on Thursday and for ex-owners of the former HUDC estate on Friday.

One-plus-study units will range from 592 sq ft to 840 sq ft, two-bedroom units will be between 786 sq ft and 1,216 sq ft, while three-bedroom apartments will be between 1,076 sq ft and 1,668 sq ft.

The project is designed by internationally renowned Pritzker Architecture Prize winner Zaha Hadid - the award's first female recipient - and is expected to be completed in 2014.

CapitaLand had bought the former HUDC estate in a collective sale in 2007 for a record $1.34 billion.

The upmarket condo was to have been launched for sale in the first half of last year and then in the first half of this year but had been delayed owing to market conditions.

Initially, about 1,500 generously sized units were planned.

CapitaLand is developing the 99-year leasehold plot with three partners. Hotel Properties and a Morgan Stanley Real Estate fund will each hold 22.5 per cent, while Wachovia Development will take 20 per cent.

Separately, Sim Lian Group said yesterday that it has sold 332 units out of the 390 units launched at the 696-unit Waterview at an average price of $838 psf.

The condo, at the junction of Tampines Avenue 1 and Tampines Avenue 10, was launched last Friday. Twelve of its 24 penthouse units have also been sold.

Sim Lian said that 90 per cent of the buyers were Singaporeans with the remaining buyers permanent residents and foreigners, from countries such as Australia, China and Malaysia.

It will be releasing 110 new units this week which will be launched at slightly increased prices, bringing the total number of units released to 500.

The 99-year leasehold 341,654 sq ft site comprises twelve 15-storey blocks.

ESTHER TEO

ST : MPs want stricter curbs on foreign property speculators

Nov 23, 2010

parliament

MPs want stricter curbs on foreign property speculators

By Rachel Chang

MEMBERS of Parliament yesterday endorsed harsher penalties for foreigners speculating in landed property here, but asked the Government to clamp down even more.

They argued that home ownership is an emotional issue for Singaporeans, and that further rules to restrict foreigners dabbling in the local market should be considered.

This arose in the course of a debate over changes proposed by the Government involving foreign ownership of landed residential properties. The changes were passed by Parliament after the debate.

In Singapore, only citizens and permanent residents (PRs) who make 'significant economic contribution' can own landed property. These PRs can buy only one such property, must live in it and cannot sell it for three years.

As for foreign developers, they can buy land to build homes, but the project must be completed in five years and all units sold within two years of it receiving the temporary occupancy permit. This is to prevent hoarding.

When the deadlines are not met, they will forfeit their banker's guarantee, pegged at 10 per cent of the land price. But with the new law, an extension charge will also be levied for the extended time taken beyond the project completion period.

In addition, PRs who sell their homes within three years will pay up to $200,000 in fines.

The previous maximum fine was only $5,000, an amount Law Minister K. Shanmugam noted was 'far below the amount of profit they might have gained from speculating in the property'.

Also, an owner who rents out his property will face a financial penalty of up to three times the rental income earned or $10,000, whichever is higher.

The present criminal sanction will, however, be removed, 'as that may not be appropriate', said Mr Shanmugam.

Non-citizens who inherit landed property will have five years, instead of the previous 10, to dispose of it. And those who give up their citizenship or PR status must sell their landed property, but no deadline was specified. At present, they can continue to keep their property.

MPs like Mr Hri Kumar Nair (Bishan-Toa Payoh GRC) welcomed the changes, but argued for even tighter restrictions, like a capital gains tax on foreigners who sell their property within three years.

While such sellers were in the minority, he said 'property prices are driven by sentiment, and the activities of a few at the fringes can have an impact'.

Nominated MP Paulin Straughan went even further in suggesting that foreign ownership of condominiums and high-rise apartments be restricted.

'This may place the coveted ownership of private property within the reach of more Singaporeans,' she said.

But Mr Shanmugam, while noting that such wider measures were outside the purview of the amendments under debate, said excessive measures could have 'many possible consequences, and most of them are bad for Singapore'.

The drop in demand could cause asset devaluation, and Singapore's reputation as a magnet for capital and talent could be harmed.

He emphasised to MPs that landed homes made up only 6 per cent of residential property in Singapore. Of that 6 per cent, only 3.6 per cent is foreign-owned.

ST : China's ghost cities

Nov 22, 2010

China's ghost cities

Properties are snapped up by investors, but many remain empty

By Ho Ai Li , CHINA CORRESPONDENT



There are no traffic jams and few pedestrians on the broad streets of Kangbashi district in Ordos City, where many people have bought homes they do not intend to occupy. -- ST PHOTOS: HO AI LI

ORDOS (INNER MONGOLIA): A public theatre shaped like the traditional Mongolian head-dress, a library building in the form of three books, and a museum that looks as shiny and abstract as the renowned Guggenheim Museum in Bilbao, Spain.

Kangbashi, a district in Ordos City, Inner Mongolia, does not lack iconic buildings. Nor does it lack housing.

Surrounding the public buildings in the 32 sq km district, neat rows of modern apartment blocks and townhouses shine under the desert sun as sports utility vehicles cruise along its broad avenues - a picture of middle-class idyll.

But when night falls, the lights do not come on in most of these homes. The houses have been sold but their owners do not live in them.

'They call it a 'ghost city'. In the daytime, it looks beautiful. At night, the houses have no lights,' said Ms Liu Qilong, 46, a long-time Inner Mongolia resident.

It's the same in many places across China, with people buying apartments with no intention of occupying them or renting them out.

A survey by the state grid company, reported by Chinese media earlier this year, showed that as many as 65.4 million homes did not use any electricity at all - which suggested that housing which could accommodate nearly 200 million people was not being put to good use.

With investment options limited in China, and bank savings exposed to the ravages of inflation, many prefer to park their money in property.

And property has proven to be a good investment vehicle, as China's nationwide housing index has shown a rise of 10 per cent each year since 2001, noted Mr Michael Kurtz, head of Asia strategy for Macquarie Securities, in a column in The Wall Street Journal.

Add to that the virtually zero cost in holding on to property - no annual property tax, for instance - and home owners are content with letting their properties stay empty until divested. The result is the emergence of unneeded housing, or sold homes which are left empty.

This has in turn created 'ghost cities' such as Kangbashi in Ordos, as well as pockets in cities such as Beijing, Tianjin or Guangzhou.

Jin Jing City, a spacious development between Beijing and Tianjin which includes golf courses, hotels and housing for half a million people, is also reportedly dead quiet at night. But perhaps nowhere are the excesses of China's property boom better reflected than in Ordos - the boomtown in the middle of nowhere.

A city of about 1.6 million people, Ordos hit pay dirt in recent years as demand for its coal soared. It boasts one-sixth of proven coal reserves in China, as well as a third of its natural gas reserves.

In terms of income per capita, it is China's second richest city, behind only Hong Kong, with average earnings hitting US$19,679 (S$25,557) a year.

Building cranes can be seen all around the city, which opened its first airport three years ago, a connection to business hubs such as Guangzhou and Beijing.

Not content with remaking the older and more crowded districts, Ordos' government lined up plans to build a new district from scratch six years ago.

The outcome was Kangbashi, which cost up to 17 billion yuan (S$3.3 billion) to build and was supposed to be more alluring than the older Dongsheng district as it was nearer the river, brand-new and less congested.

Houses were quickly snapped up and more were still being built. The houses here have all been sold, a taxi driver surnamed Guo, 30, pointed out to The Straits Times as he drove past yet another site under construction. But far fewer people than expected have settled there in the four years since the Ordos government moved into it. Kangbashi was projected to have 100,000 residents by this year. But only 28,000 people lived there as of April, reported China Daily.

Ms Chen Li, 40, a housewife who moved to Kangbashi only about a month ago, said: 'At night I never come out because the occupancy rate of my housing area is not very high. I'm a bit scared of going out.'

Like many civil servants, her husband used to commute about 50km every day between Kangbashi and the older district of Dongsheng, where their old home was. The family moved to the new area only for their son, who attends a well-known secondary school in the new district.

'It's not very convenient to buy things here,' she said.

Ms Chen was one of a handful of people spotted visiting the library on a recent weekday afternoon. In the Xinhua Bookstore inside the library, there were only four to five customers.

All was quiet inside the 47,480 sq m exhibition and convention centre shaped like a Mongolian tent, which has three exhibition halls and a multi-function centre that can seat 900 people.

'Everywhere else in the world, cities are built after people congregated. But here, they build first before people congregate,' mused Mr Guo Qingfeng, a civil servant, during a visit to Kangbashi.

Professor Bao Guangcai, an economics expert from the Inner Mongolia University, said: 'My personal feeling is that it's a kind of waste, a kind of planning error.'

For Inner Mongolia University student Li Nan, 20, Kangbashi may be quiet compared to elsewhere, but is not a bad place to live. He stays in the dormitory on his campus located in the district, and spends his free time watching movies at the local cinema or going to the library.

'It's not that bad, just that there are fewer people. It's not that scary,' said the undergraduate.

hoaili@sph.com.sg

ST : More illegally partition homes to create rental space

Nov 22, 2010

More illegally partition homes to create rental space

By Mavis Toh


HOMEOWNERS are increasingly being caught illegally turning their homes into lodging houses and dormitories as they try to make a quick buck from foreign workers, students and even tourists.

They build partitions in their apartments and houses to increase the number of rooms they can rent out - boosting their rental income.

While renting out rooms is not illegal, building partitions in existing apartments to create more space for rental is an offence which can send homeowners to jail.

The Urban Redevelopment Authority (URA) told The Straits Times that it has looked into 1,000 cases of unauthorised use of residential properties this year.

This is a sharp rise from the 500 cases last year and 400 in 2008. More such operations are being exposed due to public feedback.

Under the law, the illegal conversion of premises can be punished with a fine of $200,000 and a year in jail. If the offender carries on with such activities after being convicted, he can be fined $10,000 a day.

Property agents said the practice has become even more rampant as the influx of foreigners in recent years - from 755,000 in 2000 to 1.25 million last year - has driven up demand for rental units.

In some cases, even tenants partition their apartments to sublet to others.

An agent who has been in the industry for eight years said: 'They can rent out an apartment for $3,000 but if they partition the unit into 10 rooms and charge $500 for each room, they can collect up to $5,000 in rent. This is good money.'

A Straits Times check online found some operating a hotel-like business - renting out partitioned rooms in Orchard Road condominiums to tourists for between $89 and $350 daily.

Malaysian tourist Trish Lee, 40, a housewife, said she was ushered into a small partitioned room at Lucky Tower when she visited in March.

'The apartment had no living and dining rooms. From the entrance, there was only a corridor leading to numbered rooms partitioned using chipboard. The experience was terrible,' she said, adding she had booked the room through a website which had touted it as a boutique hotel.

Agent Kelvin Tan, 38, said some owners also knowingly let out their apartments to firms who cram up to 30 foreign workers under one roof.

'They close one eye by charging them a few thousand dollars extra. The living conditions of these places are usually bad and the workers are just given mattresses to lie on,' he added.

The activities have also drawn the attention of the Singapore Civil Defence Force, which is concerned about fire hazards created by the illegal partitioning.

It issued 443 Notices of Fire Safety Offence to residential premises for unauthorised change of use in the first nine months of this year. The number of such notices went up from 356 in 2008 to 613 last year. Offenders will be brought to court if they continue the violations.

A URA spokesman said that the occupancy of a residential unit should satisfy a minimum of 10 sq m per person, subject to a cap of eight occupants, to ensure a good living environment and prevent overcrowding.

'The presence of transient occupiers may create disturbance and disamenity to the other residents in the development,' she added.

Of the 1,000 cases the URA looked into this year, 700 were found to have built partitions in their apartments without permission, among other infringements. More than half of them have since ceased the unauthorised activities.

The remaining ones are subject to further inspection and warning notices, among other enforcement actions, from the URA.

ST : not yet sold out

Nov 22, 2010

not yet sold out

Still no buyers for 1,000 posh homes

By Esther Teo


MANY high-end condominium units are sitting unsold even after completion, as the luxury home market remains quieter than in previous years.

Twelve developments have been completed this year, each with more than 10 units still unsold as of last month, according to new data released by property consultancy CB Richard Ellis (CBRE).

Of these, 10 are in prime areas, with a total of 384 unsold units, CBRE said.

For instance, Wing Tai's Belle Vue Residences in Oxley Walk, which obtained its temporary occupation permit (TOP) in the second quarter, has not found buyers for 61 of its 176 units as of last month.

Paterson Suites, which had its TOP in the third quarter, has 79 units out of 102 yet to be taken up.

Another eight projects are expected to receive TOP soon, each with at least 10 unsold units, added CBRE.

Seven of these are also in prime locations: Districts 9, 10 and 11 - which cover Orchard, Holland, Newton and Bukit Timah - and the Sentosa and Tanjong Pagar areas.

In all, buyers are still needed for more than 1,000 posh homes in projects already completed or expected to be ready by early next year.

Most of these projects were first launched in the property boom of 2007, including Riveria Gardens in River Valley and Marina Collection in Sentosa Cove.

Not all these completed units are available for sale, however.

Experts say that some developers have yet to launch their remaining units as prices are still below their previous peak.

Developers are biding their time, waiting for the luxury market to catch up with or even surpass the historical highs, they say.

CBRE Research executive director Li Hiaw Ho said that developers either slowed down or stopped sales completely when the financial crisis hit Singapore.

When the residential market recovered last year, developers were hopeful that high-end prices would recover and that foreign interest would return.

However, while high-end prices have seen a recovery this year, they are still below the previous peak.

Foreigners are also less active compared to 2007 because the United States and European economies are still weak, he added.

Colliers International's director of research and advisory Tay Huey Ying said that luxury home prices are now just 5.4 per cent shy of their peak in 2007. While volumes are still thin, prices are gradually creeping up, she added.

'Some developers might feel that it is not the right time to launch as demand is still not strong enough to push luxury home prices past their previous peak.'

In boom years, some developers might have bought residential land at 'aggressive prices' and are now waiting for home prices to catch up, Ms Tay added.

Cushman and Wakefield's managing director Donald Han said some of these projects might have seen a significant number of units sold at relatively high prices pre-crisis when they were first launched.

Developers thus had an obligation to these initial buyers not to offload the remaining units at a lower price.

Seeming over-eager to sell could also cause the market to lose confidence in the developer's holding power, he said.

'Once a development has sold about 50 to 60 per cent, it would most likely have broken even and there would be less pressure to dump units,' he said.

'Developers can also choose to keep units to rent out temporarily,' Mr Han added.

Experts added that unlike 99-year leasehold mass market condos that might depreciate after completion, many of the high-end projects had freehold tenure.

Some luxury home buyers are also keen to 'feel and touch' their homes and the quality of the finishes before making such pricey purchases.

This might give completed projects at least some kind of an edge over new launches, they said.

Ms Wendy Tang, Knight Frank director of residential services, added that with prime residential sites hard to come by, developers might also see no urgent need to dispose of high-end projects quickly as it might be difficult to replenish land banks with such exclusive sites.

esthert@sph.com.sg

ST : Residents in Bedok get rooftop gym

Nov 22, 2010

Residents in Bedok get rooftop gym



Mr George Yeo trying his hand at one of the exercise machines in the new gym on the roof of the multi-storey carpark at Block 714A, Bedok Reservoir Road, yesterday. -- PHOTO: LIANHE WANBAO

A GOOD workout can leave you feeling on top of the world. Especially when the gym you are using is on the roof.

Residents in Bedok have been given a rooftop gym with a difference - it is on top of a public multi-storey carpark.

The $240,000 facility, the first in Singapore to be built on a carpark, was officially opened yesterday by MP for Aljunied GRC, Mr George Yeo, who is the Foreign Minister. The nearly 2,000 sq ft gym, on top of Block 714A, Bedok Reservoir Road, took four months to construct.

It is aimed at promoting healthy lifestyles and forging a stronger identity among residents. The gym also provides an alternative exercise venue for residents who currently use the jogging track at nearby Bedok Reservoir Park.

Run by a private operator, the gym is open from 7am-10pm on weekdays, and 7am-8pm on weekends and public holidays. It costs $3.50 per session and $2.50 for those under 21 or above 60.

Mrs Josephine Chew, 63, who has lived in the area for 30 years, is glad she can now use the gym when the weather is unsuitable for outdoor exercise.

The retiree, who exercises at least four times a week, said: 'It's very convenient, and it's indoors. It was the only thing that was missing in this area.'

Another resident, Mr Ravinder Bahadur, 45, is hoping to lead a healthier lifestyle, now that the gym has opened.

'The fees are reasonably priced, it's well within reach, and the opening hours are just right. Those on their way back home from office can just pop in,' he said.

Mr Yeo, adviser to Bedok Reservoir-Punggol grassroots organisations, called the project, which was included in the planning of the carpark's construction, an 'experiment' which worked out.

He said: 'I encourage other MPs in my GRC, when they build multi-storey carparks, to think of this idea as well. Because if it works here, it may work elsewhere.'

JALELAH ABU BAKER

ST : IEA steps up promotion of real estate courses

Nov 20, 2010

IEA steps up promotion of real estate courses

By Cheryl Lim


A LEADING property industry organisation is stepping up efforts to make Singapore a regional leader in real estate.

The campaign involves heavier local and overseas promotion of two internationally recognised courses run by the Institute of Estate Agents (IEA).

The IEA won the right this year to offer the courses, which cover global real estate markets and financial analysis concepts.

Previously, both programmes were offered only in the United States.

It plans to offer another course, on residential property, next year.

Foreign interest in the courses is growing, with the IEA receiving as many as seven inquiries a day.

The IEA's immediate past president, Mr Jeff Foo, said the increased marketing efforts will bode well for Singapore's real estate sector.

He said local agents who undergo the five-day programmes will benefit from an increased awareness of standards in global real estate markets.

This will make it easier for real estate agents to facilitate global co-brokering agreements, which will help foreigners moving here.

The programmes are run once a year with about 30 participants enrolled for each course, which costs up to $1,700.

Five participants from Malaysia and the Philippines have completed one of the courses, and the IEA says that it expects up to 10 people from both countries to sign up for the next round.

This is scheduled to take place in the middle of next year.

Mr Foo said that Singapore's central location and infrastructure will encourage real estate agents from neighbouring countries, including Thailand and Vietnam, to enrol in the courses.

'It's more economical for them to travel here than all the way (to the United States). It's expensive if you think in terms of air tickets, hotels and time,' he pointed out.

ST : UE's exec condo to target young couples

Nov 20, 2010

UE's exec condo to target young couples

Analysts upbeat about demand for upcoming Sengkang project

By Yasmine Yahya



An artist's impression of Austville Residences, a 540-unit executive condo expected to be launched next month or in January. It is the third executive condo to be unveiled this year, following Esparina Residences and The Canopy. -- PHOTO: UNITED ENGINEERS

UNITED Engineers (UE) is hoping to cash in on the pent-up demand for affordable housing among young couples with the unveiling of Austville Residences, a 540-unit executive condominium.

The 99-year leasehold project is expected to be launched some time next month or in January. It is located between Sengkang East Avenue and Buangkok Drive, a three-minute walk to Kangkar LRT station and five minutes away from Ranggung LRT station.

Prices will start from $650 per sq ft (psf), with two-bedroom units priced from $562,000.

UE said this will be the first executive condo in Singapore to have a theme design - the developers have taken Australian nature resorts as their inspiration.

The project will include features such as a beach-style pool, a barbecue corner and a vineyard-inspired dining pavilion. It is the third executive condo to be unveiled this year, and analysts expect it to be just as popular as the previous two, especially among young couples.

'For the location, I think the price is reasonable. If you look at recent launches of private residential properties, take-up has been good,' said Mr Steven Tan, executive director of residential at property agency OrangeTee.

'The market is receptive to private property prices of $800 to $900 psf. The average prices of executive condos represent a 20 per cent discount to that. Plus, since it's considered public housing, first-time buyers can get the $30,000 Central Provident Fund grant as well,' he added.

The senior manager of Asia-Pacific research at Cushman & Wakefield, Mr Ong Kah Seng, was equally upbeat.

'Looking at how oversubscribed Esparina Residences was, it reflects that there is strong demand for executive condos in various locations waiting to be absorbed. There is also continued relevance for executive condos to cater to the 'sandwiched class', which will help executive condos appreciate as choice dwellings.'

Esparina Residences was one of two executive condos launched earlier this year. Situated near Buangkok MRT station, it has a median price of $761 psf. So far, 425 of its 573 units have been sold.

The other one launched, The Canopy in Yishun, has been selling at a median price of $658 psf. Of its 406 units, 104 have been taken up.

Executive condos are a hybrid of public and private housing. Before this year, the last one was launched in 2005. This is just one reason why they are proving to be so popular today, said Mr Ong.

'Executive condos are popular primarily due to the long dearth of new projects and prices of private suburban condominiums which have generally reached record highs. Executive condos are hence the closest substitutes for eligible buyers who wish to enjoy a condominium living experience,' he said.

Austville features six 18-storey towers with two- to four-bedroom units, including 30 penthouse units. Unit sizes range from 811 to 1,241 sq ft.

UE said the expected temporary occupation permit date for Austville will be no later than 2014.

yasminey@sph.com.sg

ST : One Finlayson Green for sale floor by floor

Nov 20, 2010

One Finlayson Green for sale floor by floor

STRATA offices and retail units at One Finlayson Green in the Central Business District are on the market but investors have to buy entire floors.

The prime location - near Raffles Place MRT station - and tight market should stimulate demand, according to marketing agent for Singapore and South-east Asia Jones Lang LaSalle (JLL).

The 19-storey building, which has retail outlets on the first and second levels, has a total saleable floor area of about 96,132 sq ft. Each floor measures up to about 6,437 sq ft.

The building was bought in March by the Lucrum APS100 fund, which was founded by Indonesian investor Norman Winata.

It is believed to have paid $155 million to $157 million for the property.

JLL tips prices for the strata floors to range from $2,600 to $2,800 per square foot, while the retail space could go for more than $4,000 psf. That is going by a recent sale at Malacca Centre that was transacted at $4,021 psf.

Ms Stella Hoh, JLL's head of investments, believes demand will be healthy given strong economic growth and limited availability of quality strata offices.

Expressions of interest close on Jan 12.

ST : Cashback scam: Agent's jail term cut to two weeks

Nov 20, 2010

Cashback scam: Agent's jail term cut to two weeks

A PROPERTY agent convicted of taking part in a cashback scam had his one-month jail sentence reduced to two weeks and a $1,000 fine yesterday.

Francis Clinton Wong Chee Meng, 39, was acting for a flat seller when former agent Nick Goh Chong Liang approached him and convinced him to take part in the plot.

When police started investigating, Goh - who was running the scam with two others, including fugitive lawyer David Rasif - told Wong not to implicate him, and threatened to take revenge on him if he did.

Wong then lied to the police, saying the buyer's agent had suggested the scam. He was sentenced in June to two weeks in jail for cheating and one month for giving police false information. The two terms were concurrent.

He appealed, and the High Court yesterday reduced his sentence for giving false information to a $1,000 fine. His appeal against the sentence for cheating was dismissed.

In cutting Wong's sentence, Justice Steven Chong noted the threats he had received from Goh in 2005. Wong had no other probable motivation for lying to the police, he said.

Goh, 37, hatched the cashback scam in 2003 with Rasif - who is still on the run after siphoning off $11 million of his clients' money - and fellow lawyer David Tan Hock Boon, 40.

It involved convincing flat sellers to declare an inflated amount above the actual agreed purchase price. The banks would then be deceived into issuing higher mortgage loans to the buyers.

Wong was accused of cheating Standard Chartered Bank into believing that the purchase price of a Yishun flat was $250,000 when it was actually $203,000. This resulted in the bank giving a $187,500 loan to the buyer.

Wong then convinced the seller to transfer the $47,000 'cashback' - the difference between the real price and the inflated one - to a shell company set up by Goh, saying it was a requirement by the buyer.

Goh was jailed for five years and five months in 2007.

Tan was jailed for five years in 2008.

SELINA LUM