ST : COV doubles for HDB flats

Jan 22, 2010
COV doubles for HDB flats
By Jessica Cheam



The Resale Price Index hit a fresh record, with resale prices rising 3.9 per cent - 0.2 % higher than the flash estimate released three weeks ago - for the last three months of 2009, bringing the full year increase to 8.2 per cent. --ST PHOTO: STEVEN LEE CT
UPFRONT cash paid by buyers for HDB resale flats doubled in the fourth quarter of last year on the back of high demand amid tight supply.

The Housing Board's official statistics for the fourth quarter released on Friday showed the median cash-over-valuation paid for HDB flats was $24,000 - up from $12,000 in the third quarter last year.

The Resale Price Index hit a fresh record, with resale prices rising 3.9 per cent - 0.2 % higher than the flash estimate released three weeks ago - for the last three months of 2009, bringing the full year increase to 8.2 per cent.

HDB said in a statement that sales volume declined by about 23 per cent, from 11,649 cases in third quarter last year to 8,926 cases in the following quarter. But 2009 was still a bumper year compared to 2008, with total number of resale transactions surging to 37,205 - an increase of 31 per cent over the previous year.

HDB also said that 93 per cent of sales in the fourth quarter transacted above valuation - up from 79 per cent in the third quarter. However, it added that the median COV has stabilised in recent times, with the figure for the first half of January down to $22,000.

HDB said it will launch 12,000 new flats this year under its build-to-order (BTO) scheme, or more if there is demand, and will monitor the market closely and adjust the flat supply accordingly.

ST : Home prices up 1.8%

Jan 22, 2010
Home prices up 1.8%

By Jessica Cheam



Private home prices shot up by 7.4 per cent in last three months of 2009 as the property market made a quick recovery from a nightmarish start to the year. --ST PHOTO: AZIZ HUSSIN

PRIVATE home prices shot up by 7.4 per cent in last three months of 2009 as the property market made a quick recovery from a nightmarish start to the year.

This followed the previous quarter's increase of 15.8 per cent - a turnaround from a contraction of 18 per cent in the first half of 2009.

Official data by the Urban Redevelopment Authority (URA) released on Friday showed prices of private residential properties for 2009 as a whole increased by 1.8 per cent.

Prices of non-landed properties rose d by 7.2 per cent in the fourth quarter, compared with the 15.9 per cent increase in the previous quarter. Private apartment prices fetched 9.7 per cent more, while prices of condominiums were up by 6.1 per cent. Prices of non-landed properties in Core Central Region1 (CCR) went up by 7.3 per cent in the fourth quarter, while those in Rest of Central Region2 (RCR) and Outside Central Region (OCR) increased by 9.5 per cent and 6.3 per cent respectively.

For 2009, prices of non-landed properties in CCR decreased by 1.8 per cent, while those in RCR and OCR increased by 3 per cent and 11.8 per cent respectively. For the fourth quarter, office, shop and industrial properties increased by 1 per centm 0.6 per cent and 1.8 per cent respectively.

The URA said as at fourth quarter 2009, there were 60,476 private residential units in the pipeline, comprising supply from projects that were already under construction and those that had been granted planning approval but were not under construction yet.

ST Forum : Income ceiling helps ensure neediest get subsidised flats

Jan 22, 2010
Income ceiling helps ensure neediest get subsidised flats

I REFER to the letters by Miss Yvon Lim ('How realistic is $8,000 income ceiling for flats?', Jan 6); Mr Glenn Ng ('Buyer's appeal', Jan 12); Mr Joseph Ong ('It limits price hikes', Jan 12); and Mr Xavier Chua ('Flats: Fairer formula for income ceiling', Jan 14).

We need to manage our public housing budget judiciously. The income ceiling ensures that housing subsidies are targeted at those who need them more. The eligibility for housing subsidies extends up to a monthly income of $10,000, not $8,000. Those earning between $8,000 and $10,000 are eligible for a $30,000 grant to buy executive condominiums (ECs).

They should not compete with those earning less than $8,000 for new HDB flats.

For the same reason, income ceilings are set at $3,000 for three-room flats and $2,000 for two-room flats to safeguard these smaller HDB flats for the lower-income. HDB has recently released two new sites for EC development.

Besides ECs, households with a monthly income of $8,000 to $10,000 can buy a resale flat for which there is a wide range in various locations to suit different budgets and preferences. For instance, a family that earns $9,000 can consider the following:

· A five-room resale flat in a non-mature estate. The average price for a flat in a non-mature estate is about $380,000, and estimated monthly instalments are about $1,574, which can be fully paid from Central Provident Fund (CPF) savings.

· A five-room resale flat in a mature estate. For example, the median price for a resale flat in Queenstown is about $619,000. The estimated monthly instalments are about $2,564, which can be paid mostly from CPF savings, and supplemented with a cash payment of $494.

As these examples show, flat buyers earning above $8,000 a month can comfortably afford HDB flats, but they will have to make trade-offs between price, size, attributes and location.

Lily Chan-Wong Jee Choo (Mrs)
Deputy Director (Policy and Property)
Housing & Development Board

ST : Holland Residences to go on sale

Jan 22, 2010
Holland Residences to go on sale



Allgreen will release 30 to 40 of Holland Residences' 83 units for sale in the first phase. The 83 units at the development will range from one-bedroom to four-bedroom apartments and penthouses. -- PHOTO: CB RICHARD ELLIS

ANOTHER high-end condominium is set to hit the market following a number of recent upscale launches.

Allgreen Properties will launch Holland Residences for sale next week, said marketing agent CB Richard Ellis (CBRE).

The five-storey freehold development - it is on Taman Warna and next to Chip Bee Gardens off Holland Road - has been 13 years in the making.

Allgreen bought the site, which used to host nine bungalows, for $78.26 million in 1997.

The launch price for Holland Residences is 'yet to be confirmed' but is likely to be at an average of $1,600 to $1,700 per sq ft, said Mr Joseph Tan, CBRE's executive director for residential.

He said CBRE has already received inquiries and expressions of interest. 'We expect the response to Holland Residences to follow the strong sales momentum that started in the second half of 2009.'

Allgreen will release 30 to 40 of the development's 83 units for sale in the first phase.

It will start previews on Monday for ex-owners of the site's former bungalows. This will be followed by a preview for Allgreen's directors, staff and business associates before sales are opened to the public.

The 83 units at Holland Residences will range from one-bedroom to four-bedroom apartments and penthouses.

Sizes start from 600 sq ft for a one-bedder and go up to 2,800 sq ft for a four-bedroom penthouse.

There will also be three-bedroom loft units of 1,900 sq ft with a jacuzzi on the ground floor.

Other developers are also starting to kick off their 2010 launches.

City Developments opened the doors of Cube 8 at Thomson yesterday to former owners of The Albany and Thomson Mansion, the projects that used to stand on the site.

Staff and directors were also invited to the preview, where units were sold for an average of $1,250 psf, The Straits Times understands.

The public preview for Cube 8 will start today.

ST : Mount Sophia sub-tenants in fix

Jan 22, 2010
Mount Sophia sub-tenants in fix
15 of them told to move out despite some having spent a tidy sum doing up their units
By Mavis Toh



The Enesis Art gallery at 7 Mount Sophia has been asked to vacate the premises despite its owner, Mr Chin, having spent about $500,000 to do up the place. Mr Chin's two-year lease was to expire only next June. -- ST PHOTO: AZIZ HUSSIN
ART collector Ivan Chin spent half a million setting up his gallery - putting in landscaping, chandeliers, security and sound systems - only to be told four months later that he had to vacate the premises.

He is one of 15 sub-tenants of 7 Mount Sophia who have to go because the master tenant of the site, Westminster Unicampus, breached its tenancy agreement with the Singapore Land Authority (SLA).

Mr Chin's Enesis Art gallery was to house 55 pieces from his own collection, including one by Picasso, reportedly worth an eight-figure sum.

His two-year lease, at a rental rate of $20,000 a month, was to expire only next June.

Westminster's own 22-month lease with the SLA - to use the site as an arts, dance and drama studio - expired on Dec 27.

The SLA said that Westminster, a company registered to conduct distance learning courses, sublet some 60 per cent of the space for commercial usage - in breach of the agreement that it should be no more than 20 per cent.

Not only did Westminster refuse to remedy the breaches, it also sublet the premises to be used as a student hostel.

In addition, it had rental arrears and interest on late payments which amounted to over $136,000.

When The Straits Times visited the former Trinity Theological College site on Tuesday, most of the units were vacant.

The four businesses still in operation said they had been given till the end of the month to move out. Two of their leases had ended in December.

All said that Westminster had given them the impression that their leases would be renewed after two years, and so they had pumped in at least five-figure sums to do up their units.

'If we had known of the situation, we wouldn't have moved in in the first place. It's disruptive for the business,' said a manager of Polystone, a company selling stone products.

Director Barry Hill of office design firm Davenport Campbell said that two previous tenants - a bar and media school - moved out after pumping in large sums, when they discovered that the land was not authorised for such use.

When contacted, Westminster's director Tan Eng Hong said his original intention was to be at Mount Sophia longer and to build a multi-faculty and multi-campus institution.

When asked why he broke tenancy rules and rented out space to businesses, he said that he had made submissions for the change of use of the site but was not able to get them.

'We should have gotten the permit first before leasing it out, but it took us quite long to get everything in place,' said Mr Tan.

The SLA has also started legal proceedings to recover possession of the site, as Westminster has refused to vacate it. It said it would tender out the site again, for approved uses. The Straits Times understands that the site, a national monument, is slated for the creative and artistic industry.

The SLA also said that sub-tenants of state properties should do due diligence checks, and seek it's written consent, as well as legal advice, before signing any sub-tenancy agreements.

For now, Mr Chin hopes that the SLA will let remaining tenants stay till the next master tenant takes over.

'We've already spent so much money on the place, it would be best if I could stay rather than move my pieces to a warehouse,' he said.

mavistoh@sph.com.sg

Rent owed to SLA for another site

WESTMINSTER Unicampus was also in the news recently when it defaulted on its rent to the Singapore Land Authority (SLA) on another site - the former Queenstown Neighbourhood Police Centre at 15 Commonwealth Avenue.

It was announced in 2007 that it had submitted the highest bid to pay a monthly rent of $55,888 for the site.

Westminster was to use the building for an arts, dance and drama studio, an association, and a martial arts and fencing school.

None of this materialised.

Not only did it default on its rental payments - accumulating arrears and late payment interest of more than $184,000 - it also carried out unauthorised renovations.

Westminster sub-let the place, which became an unauthorised canteen and food outlet. It also demolished the toilets on all three storeys of the building, removed the entire front wall of the first storey and set up a 300 sq m shelter.

SLA terminated the tenancy last May, but gave Westminster several opportunities to pay the arrears and remove the unauthorised structures.

Westminster failed to comply and refused to vacate the premises. Last August, SLA got a court order to recover the property.

When asked about the site, Westminster's director Tan Eng Hong would only say: 'It's an investment that has gone sour and we're not able to carry on within our ability.'

ST : Expect new plans to improve housing estates

Jan 22, 2010
Expect new plans to improve housing estates

More will be done to spruce them up, promises PM Lee

By Rachel Chang




Madam Toh Chin Khiam (left), 52, and Madam Tay See See, 74, both Ang Mo Kio residents, greeting PM Lee, who is the MP for Teck Ghee ward, at the celebration to mark completion of MUP for 10 Ang Mo Kio blocks. --ST PHOTO: LAU FOOK KONG

HAVING just completed renovations to his three-room flat in Ang Mo Kio Avenue 10, Mr Jackson Wee was reluctant to take up a Housing Board offer to make changes to his interior.

But he had a change of heart after seeing the work done in flats in other precincts.

'I was so surprised - it was done so nicely, the quality was so good. So I changed my mind,' he said.

That was back in 2003.

Yesterday, the 63-year-old technical engineer was among 600 residents at a dinner to celebrate the completion of the Main Upgrading Programme (MUP) for 10 blocks in Ang Mo Kio Avenue 10: Blocks 411 to 419 and 421.

Celebrating with them was Mr Lee Hsien Loong, MP for Teck Ghee ward in Ang Mo Kio GRC.

Pointing to the improvements made, he said it reflects a system that works in Singapore.

'People support the Government, the Government works for the people. We work together to have (Budget) surpluses, and from the surpluses we give back something to Singaporeans.'

Mr Lee made the promise that more would be done for housing estates in Singapore.

'We will have new plans to improve our estates, to build up Singapore,' he said, without elaborating.

'This is a continuous process because we never finish saying how we can make Singapore a better place to live,' he added.

The upgrading of Mr Wee's precinct and the 10 blocks in it cost $55 million. The Government paid the bulk of the bill.

It gave the precinct landscaped seating areas, a shady pedestrian boulevard, and covered linkways, among other amenities. The street soccer court was also upgraded.

Mr Wee said that the new amenities downstairs have changed the entire feel of the estate: 'In the evenings now, you can see a lot of old residents going downstairs, taking walks.

'Before, nobody went down.'

Within their homes, owners got new windows and new decorative timber doors. Toilets were upgraded, and many residents also opted to add an extra utility room to their flat.

Mr Wee, a Christian, turned the additional space into his prayer room, which he also uses occasionally as a guest room for relatives and friends.

Earlier in the evening, at a nearby estate, Mr Lee launched the polling and exhibition of a proposed Lift Upgrading Programme for 13 blocks in Ang Mo Kio Avenue 10.

The project would upgrade lifts in Blocks 464 to 476. Residents will have to decide whether to go ahead with the project by Monday.

The Lift Upgrading Programme will go ahead if at least 75 per cent of them vote for it.

Up to 85 per cent of the cost will be covered by the Government, and residents have the option to pay their share via monthly instalments over five or 10 years.

Housewife Kamisah Amat was so keen she cast her 'yes' vote almost immediately after the polling started yesterday evening.

The 50-year-old, who has lived in Block 471 since 2004, said she 'has been waiting for the lift upgrading for very long'.

rchang@sph.com.sg


--------------------------------------------------------------------------------

WORK IN PROGRESS

'We will have new plans to improve our estates, to build up Singapore. This is a continuous process because we never finish saying how we can make Singapore a better place to live.'

Prime Minister Lee Hsien Loong

FEELS LIKE HOME

'In the evenings now, you can see a lot of old residents going downstairs, taking walks. Before, nobody went down.'

Ang Mo Kio resident Jackson Wee on new landscaped seating areas, shady pedestrian boulevards, and covered linkways in his precinct

ST Forum : New rules on property funds not safe enough

Jan 21, 2010
New rules on property funds not safe enough

I REFER to yesterday's report, 'Proposed law changes to protect clients in property deals'. I doubt the proposed law changes will prevent the problem of lawyers running off with their clients' money.

I find the new proposals time-consuming and cumbersome without getting to the root of the problem - stakeholder status of law firms. The chain of events in the new proposals creates duplication. The labyrinth of administrative procedure does not address the 'parking bay' of transaction proceeds right from the start.

Under the new proposals, who pays to monitor each step of withdrawals during the whole period of transaction? How to ensure no conflicts in approval between client and lawyer to hold up to $5,000 to meet many miscellaneous expenses (ME) in a short time? There could be more questions than answers.

The basic elements in property transaction equation are transaction proceeds (TP), ME, and interest of buyer and seller. Abuse can occur when proceeds are paid into the accounts of the law firm as stakeholder money, and the law firm has full control over its use. If payments for ME are separated from TP, the interest of buyer and seller will be safely protected in the transaction equation.

The key is isolating the client's money in property transactions from law firms. Strictly speaking, the proceeds have nothing to do with the law firms. The duty of law firms is to administer the process and disbursements. Using a neutral party as stakeholder will eliminate the risk.

I think it is feasible to create a new rule that stipulates that 95 per cent of the proceeds go direct into a conveyancing account in an approved bank as stakeholder until completion, while the balance 5 per cent is administered by the law firm. Disbursements for ME are approved by both parties' lawyers. It is neat and simple.

This way, the bulk of clients' money is isolated and protected in the bank. The risk of running off with clients' money is isolated. The role of the bank is to disburse payments with clear instructions from both parties' lawyers. This simple tweak to the current procedure will effectively protect clients in property deals.

Paul Chan

BT : Low US interest rates fuelling bubbles, warns top economist

Business Times - 22 Jan 2010
Low US interest rates fuelling bubbles, warns top economist

Roubini underscores risks of keeping monetary policy loose for too long

By CONRAD TAN
IN HONG KONG

LOOSE monetary policy in the United States is fuelling asset bubbles worldwide that could badly damage the global economic recovery should they burst, said New York University economics professor Nouriel Roubini yesterday.

Mr Roubini, who is also the founder and chairman of consulting firm Roubini Global Economics and is widely known for his early warnings of the recent financial crisis, said that economies that have rebounded rapidly such as China should act soon to prevent overheating and to ease inflationary pressures.

China's economy grew by 10.7 per cent in the fourth quarter of 2009 compared to a year earlier, official estimates showed yesterday. But consumer-price inflation there also accelerated, with prices rising 1.9 per cent over the year to December, compared with a 0.6 per cent increase in the year to November.

While the economic recovery in advanced economies such as the United States, Europe and Japan will be slow, dragging down global growth, some emerging markets are already showing signs of overheating in parts of the economy, Mr Roubini said.

'The easy monetary policy by the United States has become a global monetary easing and this excess of liquidity and credit creation is causing asset bubbles around the world - in emerging markets, commodities, equities.

'If these asset bubbles were to go on for much longer, funded by a dollar carry trade, eventually there could be an unravelling and a significant correction of asset prices which will be damaging for global and regional economic growth.'

While 'a lot' of the recent rally in financial markets and asset prices is justified by improvements in fundamental business conditions, 'part of it is too much, too fast, too soon', he said.

'The economic conditions in China and emerging markets are stronger and more robust than in advanced economies. But even in the case of Asia and China, if this overheating were to continue, if this easy monetary policy were to continue, and lead to further asset bubbles in commodities, real estate and equities, eventually, when there is a massive slowdown in economic growth in advanced economies, it might also lead to a correction in emerging markets.'

Speaking at the Asian Financial Forum in Hong Kong and to reporters afterwards, he said that it was 'necessary to increase interest rates' and to slow down credit growth in China now. That would avoid the need for 'much more severe tightening of policy in the second half of the year', he said. 'Doing it sooner rather than later probably is the right policy.'

While inflation is unlikely to be a worry in the advanced economies this year, in emerging market economies such as China and India, inflation is returning and 'there's already signs of overheating of some parts of the economy'.

He acknowledged that policymakers worldwide had a difficult task in choosing when and to what extent to withdraw direct government support for their economies. While it was clear that removing stimulus measures too quickly could choke off the nascent economic recovery in advanced economies, 'the risk is that you make the other policy mistake - that you maintain the fiscal stimulus, that you keep raising spending and reducing taxes and get runaway fiscal deficits', he said.

Eventually, investors could demand much higher interest rates on bonds issued by the governments of such countries to finance their national budgets, imposing a high cost that wipes out the benefits of the stimulus spending, he warned.

'Especially in an election year, the risk of a major policy mistake in the US is significant,' he said. 'The path of exit that is correct is very narrow.'

Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.



Time for action: Mr Roubini says economies that have rebounded rapidly such as China should act soon to prevent overheating

BT : Benign interest rates needed for proper recovery: UOB

Business Times - 22 Jan 2010
Benign interest rates needed for proper recovery: UOB

By JOYCE HOOI

WHILE Asian economies remain relatively intact compared to the carnage suffered by Western ones, a proper recovery will only be possible if short-term interest rates do not spike, Jimmy Koh, head of economics and treasury research at United Overseas Bank, said yesterday.

China's gross domestic product, which surged 8.7 per cent last year and 10.7 per cent in Q4 2009 year-on-year, according to China's National Bureau of Statistics, had exceeded consensus expectations and spurred talk of an interest-rate hike this year.

Last week, in a monetary policy tightening move, China's central bank had announced a 50 basis point hike in the banks' reserve requirement ratio with effect from Monday.

Currently, there is little cause to fear a sharp increase in interest rates, according to Mr Koh.

'There should not be a major spike in interest rates globally unless something goes terribly wrong or the world gives up on the US dollar,' said Mr Koh, who was speaking at a Singapore Human Resources Institute conference yesterday.

Even then, a scenario in which the US dollar falls into jeopardy is an unlikely one.

'80 per cent of global trade is conducted in US dollars. The US dollar will weaken, but it will not collapse,' Mr Koh told conference participants yesterday.

Fears of a contagious Dubai and Greece meltdown are also overblown, all things remaining the same, according to Mr Koh.

'The Dubai situation might be painful but not fatal. As we now know, it was not about the ability to repay the debt, but the willingness to repay it,' said Mr Koh.

Where the financial crisis in Greece is concerned, the problem would have to reach a magnitude large enough to stop banks from lending again for the effects to be felt globally, he reckoned.

Even though equities have been coasting on the crest of a rally that began last March, Mr Koh cautioned against confusing it with a recovering economy.

'The recovery is not conclusive. We are not seeing a lot of corporates coming back with lots of orders. Asset prices are going up because of liquidity,' said Mr Koh.

The World Bank had said yesterday that the global economic recovery might lose some momentum this year as the impact of government stimulus policies tapers off.

Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.



Mr Koh: 'Asset prices are going up because of liquidity.'

BT : A 10-year legal wrong finally righted

Business Times - 22 Jan 2010
A 10-year legal wrong finally righted

TEN years ago, Malaysia's apex court made a decision that many considered bizarre and introduced much uncertainty into investors' decisions.

In the case of Adorna Properties vs Boonsom Boonyanit, a buyer who had bought a piece of land without knowing it had been fraudulently transferred was allowed to keep it, thus depriving the person who had been defrauded of his rights. Thus, for 10 years, the registered (and therefore rightful) owner of a property who suddenly discovers that his title has been fraudulently transferred to someone else had no legal recourse to reclaim his property. That decision, which had been made by a three-man panel headed by then Chief Justice Eusoff Chin, had set a binding precedent for disputes over land ownership.

Happily, all that changed yesterday when the current Federal Court, now with different judges, reversed what it called the 'blatant and obvious' mistake of the Adorna ruling. This time, a five-man bench led by current Chief Justice Zaki Azmi unanimously ruled that the rightful owner of a property title can set aside the second man's claim even after the title has been transferred to the latter. It was based on Section 340(2) of the National Land Code 1965, which states unequivocally that a title would not be defensible if it had been subject to fraud in any way. What the Federal Court did yesterday was to right a decade-old wrong. CJ Zaki noted that it is 'quite well known that some unscrupulous people had taken advantage (of the mistaken Adorna ruling) to transfer land to themselves'.

The Federal Court's ruling followed submissions last October for Pahang landowner Tan Yin Hong, who was appealing against a Court of Appeal decision in 2009. Mr Tan's case dates back to 1976, when the Pahang state government mysteriously issued a land title for a 3.6-hectare piece of land in Kuantan in his name and without his knowledge. Land matters come under the ambit of state governments in Malaysia. In 1985, Mr Tan received a letter from RHB Bank telling him to pay back RM300,000 as an outstanding loan given by the bank to a timber company. Upon investigation, Mr Tan found out that a person named Tan Sian San had in 1977 forged his signature and obtained power of attorney to represent Mr Tan. In 1984, Tan Sian San charged the land to RHB as security for a loan to Cini Timber Industries, and subsequently disappeared. Mr Tan sued the bank. In 2003, the High Court dismissed his application and the Court of Appeal upheld that decision.

But yesterday, the Federal Court decided the bank's charges against Mr Tan were invalid because of the forgery. And, in doing so, it threw the Adorna decision onto the scrapheap of history. It will go a long way in reassuring both Malaysians and foreigners interested in buying land in the country - either for residential or for industrial purposes - that their rights will be protected.

BT : MapletreeLog eyeing more properties in S'pore, region

Business Times - 22 Jan 2010
MapletreeLog eyeing more properties in S'pore, region

It plans to be more careful in funding purchases; Q4 DPU climbed 8.9%

By EMILYN YAP

MAPLETREE Logistics Trust (MapletreeLog) is focusing more on growth this year and is looking at acquisitions in Singapore and the region. But it also intends to be more careful in funding purchases and this could affect the timing of cash calls.

The trust said this yesterday as it posted a net property income of $44.9 million for the fourth quarter ended Dec 31, 2009, which was 0.4 per cent less than that a year ago.

Nevertheless, the amount distributable rose 12.3 per cent to $31.8 million. This was boosted by a $2.5 million consideration from Prima Limited for a lease extension at a Singapore property.

As a result, available distribution per unit (DPU) rose 8.9 per cent to 1.59 cents. This came despite a larger unit base from a $79 million private placement in November last year.

'We think 2010 is a transition year,' said Richard Lai, deputy CEO and chief financial officer of the Reit manager at a briefing. While the Reit is building up its acquisition pipeline, 'we will continue to be quite conservative in terms of how we use our balance sheet'.

Mr Lai explained that the Reit is looking to match borrowings and cash calls more closely. 'What we are saying is that it will be harder to predict when we have to do an equity fund-raising.'

MapletreeLog is also looking to undertake build-to-suit projects in Singapore and abroad.

MapletreeLog's leverage ratio as at Dec 31 was 36.7 per cent, down from 38.5 per cent year-on-year. Around $204 million or 19 per cent of its total debt is due for refinancing this year and it has received firm refinancing offers from banks.

The trust's portfolio comprised 82 properties with a book value of around $2.9 billion as at Dec 31. It was revalued downward by $16.5 million in FY2009. The portfolio occupancy rate was 98.1 per cent, down from 99.6 per cent a year ago.

For FY2009, MapletreeLog reported an amount distributable of $117.9 million, 21 per cent higher year-on-year. DPU was 6.02 cents, down 16.9 per cent.

MapletreeLog gained half a cent yesterday to close at 79 cents.

Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.



Mr Lai: 'We will continue to be quite conservative in terms of how we use our balance sheet'

ST : HDB turns 50, looks to new challenges

Jan 21, 2010
HDB turns 50, looks to new challenges

It will share stories of its journey at the International Housing Conference

By Jessica Cheam



High-rise flats point to the HDB's good work: Singapore now has one of the highest home ownership rates in the world. -- ST PHOTO: ALPHONSUS CHERN

IT HAS been quite a journey for the Housing and Development Board (HDB).

When it was set up in 1960, Singapore was mired in a housing crisis, but today the country has one of the highest home ownership rates in the world. Public homeownership in Singapore is 80 per cent.

To share its achievements - and mark its 50th anniversary - the HDB is hosting the International Housing Conference from next Tuesday to Friday.

The event will bring a host of housing experts to Singapore, with many of them no doubt keen to pick up some pointers.

The HDB's development and procurement director, Mr Fong Chun Wah, told The Straits Times the board hopes to 'share stories from this long journey', with not just Singaporeans but also an international audience.

More than 30 speakers and experts, including housing ministers from Finland and Spain, will attend the conference along with an estimated 500 local and foreign delegates.

The HDB will share its practices in planning housing estates - such as in design and construction and in fostering human interaction.

These include technology breakthroughs in construction, the use of alternative energy sources such as solar and universal design catering to residents of all capabilities, said Mr Fong.

To some extent, certain aspects of the Singapore model can be replicated in emerging countries such as China, and the HDB hopes to share this experience, he said.

'But there is much more to learn from others,' he added. 'We hope to gain some new ideas and concepts from the speakers, and find areas of collaboration.'

The conference will also feature a special session with Minister Mentor Lee Kuan Yew, who was prime minister at the time of the HDB's inception and who conceived the home ownership programme implemented in 1964.

The HDB's golden jubilee 'is not just an occasion for (it) to celebrate its success', said Mr Fong, who has been with the organisation for more than two decades.

'It's also a time for us to focus on realising our vision for the next five decades - and to rise to the challenge of meeting the housing aspirations of a new generation of Singaporeans.'

The conference will focus on the theme of sustainability - something that the HDB has embraced in its mission for the past 50 years 'before the word became fashionable', said Mr Fong.

'The topic is very current, and sustainable housing is part of a bigger sustainable development trend happening around the world now.'

The deputy director of the HDB's housing administration department, Mr Norman Chee, added: 'It goes beyond the 'hard- ware' into the 'heartware' - providing not just housing but a town with facilities that are easily accessible, and social spaces where people can interact.'

Mr Fong said the HDB will face challenging issues such as land scarcity, changing aspirations and lifestyle of residents, and an ageing population over the next 50 years.

'The board will be reflecting on how to tackle these challenges even as we look back on what we've achieved in the past five decades - we hope the conference will help to discuss some of these issues.'

BT : HK luxury home prices may rise 15%

Business Times - 21 Jan 2010
HK luxury home prices may rise 15%

Cheung Kong Holdings also says HK and China's property markets not in bubble situation

(HONG KONG) Hong Kong's luxury home prices may rise as much as 15 per cent this year, and there are no bubbles in the city's and China's property markets, said Cheung Kong (Holdings) Ltd, the builder owned by Asia's second-richest man, Li Ka-shing.

Prices for luxury homes may increase 10-15 per cent this year, and for new mass-market homes 15-20 per cent, said Cheung Kong executive director Justin Chiu in Hong Kong yesterday. Revenue from China home sales may exceed 30 billion yuan (S$6.14 billion) this year, he said. That compares with his September forecast of 1.5 billion yuan for 2009 sales.

'I don't really see a bubble,' Mr Chiu said. 'There shouldn't be too much concern about the governments trying to crush the market.' Mr Chiu's comments pit him against investor Jim Rogers, who said on Tuesday that real estate prices in the city and Shanghai are in a bubble and 'should decline'. Property prices in 70 cities across China climbed 7.8 per cent in December, the fastest pace in 18 months. Hong Kong's real estate prices rallied the most among the world's major housing markets last year, according to property adviser Knight Frank LLP.

Prices in the last six months of 2009 rose by 30 per cent in Hong Kong and 20 per cent in China, leading Mr Chiu to conclude that speculators may be at work.

'We think that the substantial increase in such a short time, means that there could be a speculation element,' he said. 'That's why I advise buyers to really see whether they have the means to commit to buying an apartment. They should be careful.'

Record new loans fuelled a 75.5 per cent jump in China's property sales last year. Home prices in Hong Kong, a trading and financial hub for China, are at their highest in almost 12 years, leading the World Economic Forum and Goldman Sachs Group Inc to caution about the formation of asset bubbles.

Homes sales in China, Hong Kong and Singapore by Cheung Kong, the world's second-biggest developer by market value, may exceed HK$100 billion (S$18 billion) if the company obtains government consent for all projects, Mr Chiu said.

Cheung Kong's share price fell 1.9 per cent to HK$98.10 as of 2.40 pm in Hong Kong. The stock's 37 per cent gain last year made it 2009's worst performer in the six-member Hang Seng Property Index. It has dropped 1.8 per cent this year, compared with the 4.5 per cent decline in the index.

Fred Hu, Goldman Sachs's chairman for Greater China, said on Jan 18 that property prices in China require monitoring for signs of bubbles forming.

Prices at some luxury residential projects in Shanghai doubled last year, with Shui On Land Ltd's Casa Lakeview recording sales of 100,000 yuan per square meter in December, Lee Wee Liat, an analyst at Nomura International Hong Kong Ltd, said last week.

Mark Mobius, who oversees US$34 billion of developing-nation assets at Templeton Asset Management Ltd, disagrees with Mr Rogers, saying on Jan 7 that the bubble in China's property market isn't about to burst. Gross domestic product rose 10.5 per cent in the fourth quarter from a year earlier, according to the median of 41 forecasts in a Bloomberg News survey for the release scheduled today.

'The Chinese will act rationally and they're not going to kill the market,' he said.

Mr Rogers, author of A Bull in China, said in on Tuesday that real estate in Shanghai and Hong Kong is 'very overpriced'. Hong Kong 'Limited' Garry Evans, head of global equity strategy at HSBC Holdings Plc, said in a Bloomberg Television interview on Tuesday that 'China is no way near a bubble'. Hong Kong developers, including Kerry Properties Ltd, Shui On and Hang Lung Properties Ltd, are building homes, offices and shopping malls in China to capture market share in the world's fastest-growing major economy. The strategy will continue even as China acts to cool the property market, analyst Adrian Ngan said.

'It's a long-term strategy, it's a must, because the growth in Hong Kong is very much limited,' Mr Ngan, a Hong Kong-based analyst at CCB International Ltd, said before Mr Chiu's comments.

To cool property speculation, China this month reinstated a sales tax on homes sold within five years of their purchase, and the country's Cabinet on Jan 10 urged strict applications of a 40 per cent down-payment requirement for second homes.

China accounts for about 10 per cent of Hong Kong-based Cheung Kong's earnings, Mr Ngan said.

Ronnie Chan, chairman of Hong Kong-based Hang Lung Properties Ltd, said the tightening measures in China will not have an impact on the company's real estate projects in the country because 'we have zero debt'. Hang Lung's strategy of focusing only on developing commercial properties in China helps the developer avoid being affected by volatility in residential prices, the target of tightening efforts, Mr Chan said at a financial forum in Hong Kong yesterday.

Hong Kong home prices, where average values climbed 33 per cent, rose the most among the world's major housing markets last year, according to property adviser Knight Frank LLP. An index of existing homes is at its highest since March 1998, according to a weekly weighted measure developed by Centaline Property Agency Ltd and the City University of Hong Kong.

Billionaire Mr Li, 81, is dubbed 'Superman' by Hong Kong's media because of his track record for investing. He has a 41.7 per cent stake in Cheung Kong after adding to his holdings 29 times since December, stock exchange filings show.

Mr Li, estimated to be worth US$16.2 billion by Forbes magazine in March, correctly predicted in 2007 that China's stock market was in a 'bubble'\. \-- Bloomberg

Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.



Ever-growing: Record new loans fuelled a 75.5% jump in China's property sales last year. Home prices in Hong Kong, a trading and financial hub for China, are at their highest in almost 12 years

BT : China not likely to impose property tax soon

Business Times - 21 Jan 2010
China not likely to impose property tax soon

(BEIJING) China is unlikely to introduce a general property tax this year as it still needs time to prepare for it, a senior government economist said yesterday.

Talk that China could levy an annual withholding tax, which would replace taxes and fees that are mostly payable when a property is bought or sold, has intensified since Beijing started to cool property investment in December.

Zhu Baoliang, chief economist with the State Information Centre, a think-tank under the National Development and Reform Commission, said it was unlikely that China would start collecting the tax this year.

'Property tax is a very complicated issue and will not be rolled out any time soon,' he told reporters.

China is already running a trial property tax scheme in 32 cities, counties and districts.

Some industry experts say the tax, once applied, could help bring down China's property prices as it would dampen market confidence and squeeze investors' profit margins.

China will be very careful not to over-tighten its real estate policies, Mr Zhu said, adding that it would wait and see the outcome of measures already taken.

Property sales account for more than 10 per cent of the country's gross domestic product. -- Reuters

Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.

BT : China properties: bubble or no bubble?

Business Times - 21 Jan 2010
China properties: bubble or no bubble?

THE views are split almost right down the middle. Is there or is there not a bubble in China's property market? Cheung Kong, one of the largest property developers in Hong Kong, yesterday said that there are no bubbles in either Hong Kong's or mainland China's property markets. Said its executive director Justin Chiu: 'I don't really see a bubble. There shouldn't be too much concern about the governments trying to crush the market.'

The comments are in direct contrast with that of renowned investor Jim Rogers. Though a very vocal China bull, Mr Rogers cautioned on Tuesday that real estate prices in Hong Kong and Shanghai are in bubble territory and 'should decline'. Efforts to restrain lending underscore the government's attempt to take 'some of the heat out of the economy', he said in an interview with Bloomberg. The rest of the Chinese economy, however, is 'hardly in a bubble', he added.

Views differ among investment analysts and asset managers as well. Mark Mobius, who oversees US$34 billion of emerging market assets at Templeton Asset Management, said two weeks back that China's property market isn't about to crash. 'The Chinese will act rationally. They are not going to kill the market,' he said. By contrast, former Morgan Stanley chief Asian economist, and now an independent economist based in Shanghai, Andy Xie is unambiguously bearish, describing China's asset markets today as 'a big bubble'.

The numbers give us a clue as to what is going on. Record new loans fuelled a 75.5 per cent jump in China's property sales last year. Property prices in 70 cities across China climbed 7.8 per cent in December, the fastest pace in 18 months. But in places such as Shanghai and Beijing, prices of new apartments leapt by 50-60 per cent during 2009.

One should certainly be circumspect when taking in the comments of politicians, stock analysts and fund managers. They may have their own agendas. A good judging yardstick, however, is perhaps the actions (not words) of people in the property business. They seem to be of the opinion that there is genuine demand for properties. On Monday, CapitaLand announced it is buying over the real estate business of Hong Kong-listed Orient Overseas (International) for US$2.2 billion. The purchase includes seven sites in Shanghai, Kunshan and Tianjin, with about 1.48 million square metres of floor space. Meanwhile, Hong Kong developers including Cheung Kong, Kerry Properties, Shui On and Hang Lung Properties are not slowing down their pace of development in China either. Even SOHO China, one of the leading private developers on the mainland, is not stepping back despite saying that it sees a lot of asset bubbles. Its strategy instead is to turn around its developments faster.

The good thing is that China's government is vigilant and has already imposed a number of measures to cool down the market. Actions from property developers seem to suggest that while the cooling measures may stall the market temporarily, in the longer term, the inevitable trend is up.

Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.

BT : Rich will invest more in equities this year: survey

Business Times - 21 Jan 2010
Rich will invest more in equities this year: survey

(ZURICH) The wealthy people increased their equities investments to US$7.11 trillion at the end of last year, a global survey showed. It said they will continue to bet on stocks this year in a quest for higher returns after two years of crisis.

An asset allocation survey by consultancy Scorpio Partnership said stocks are currently the most favoured asset class among private bank clients, representing nearly a half of a balanced portfolio, and will remain a favourite.

'Clients who have been in the doldrums during the crisis are now keen to get in money-making mode. They want to re-engage in money-making through the equities markets,' said Stephen Wall, director at the Scorpio Partnership.

The wealth management industry was hit by the credit crisis along with the entire financial sector but also faced its own challenges like the scandal of Bernard Madoff's US$65 billion Ponzi scheme, a crisis at global giant UBS and a crackdown on offshore financial centres.

The survey assessed responses from 33 wealth managers that together hold nearly half of the segment's US$14.5 trillion assets of clients with typically US$1 million or above.

About one half of equities investment was managed on an external basis and this should increase, the survey showed.

Despite the increased appetite for equities, rich clients have not given up on cash and fixed-income, which together represent 44 per cent of a balanced portfolio.

The big losers were alternative investments, with the exception of real estate, a traditional hedge against inflation.

Investments into alternatives such as hedge funds or structured products shrank by more than two-thirds to 7 per cent of a balanced portfolio and is not seen increasing in the short term.

'Wealth managers are looking at opportunities to benefit from the ongoing volatility while still maintaining defensive positions,' said Mr Wall.

To this end, managers are starting to diversify investments into their clients' traditional home markets, with a focus on emerging markets and in particular the Asia-Pacific region, Mr Wall said.

The survey also showed that wealth managers have responded to diminishing margins by boosting the sale of in-house products to 40 per cent from 22 per cent at the end of March\. \-- Reuters

BT : Mortgage-backed debt sales stay low

Business Times - 21 Jan 2010
Mortgage-backed debt sales stay low

Borrowers are still struggling with declining property values, analysts say

(WASHINGTON, DC) Sales of commercial mortgage- backed securities will likely remain below US$15 billion in 2010 as borrowers struggle with declining property values, according to analysts at Barclays Capital and JPMorgan Chase & Co.

Debt sales backed by skyscraper, hotel and shopping mall loans may be as low as US$10 billion this year, according to Alan Todd, a JPMorgan analyst in New York. Aaron Bryson, a Barclays Capital analyst also in New York, forecasts more transactions, reaching about US$15 billion during the period.

The US government has committed to reviving the US$700 billion commercial-mortgage backed bond market amid plunging property values and a lending pullback. A record US$237 billion of the debt was sold in 2007, compared with US$12 billion in 2008 and US$1.4 billion last year, according to data compiled by JPMorgan. New issuance is not likely to pick up until the second half of this year, Mr Todd said.

'The banks would like to lend,' Mr Todd said during an interview at the Commercial Mortgage Securities Association annual conference here. 'There are fewer properties to lend against.' Many owners went heavily into debt during the boom years and find it hard to locate properties not already encumbered to lend against, Mr Todd said.

The lack of new loans chokes off funding to borrowers with maturing debt. Two-thirds of loans bundled and sold as securities, amounting to US$410 billion, may require more cash as property values plummet and underwriting standards tighten, according to Deutsche Bank AG data.

US commercial real estate prices are 42.9 per cent below October 2007 peaks, Moody's data show.

Debt sales dried up in 2008 as the credit crisis sapped demand and the high price investors sought to hold the obligations was too great for Wall Street banks to profitably underwrite and bundle new loans for sale.

The gap, or spread, on top-rated commercial-mortgage backed securities over Treasuries has fallen to about 3.49 percentage points, compared with 9.63 percentage points a year ago, according to Barclays data. -- Bloomberg

Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.



Still in the shadows: Debt sales backed by skyscraper, hotel and shopping mall loans may be as low as US$10 billion this year, according to a JPMorgan analyst

BT : Foreign homebuyers show different price preference

Business Times - 21 Jan 2010
Foreign homebuyers show different price preference

Westerners choose units in $1.5-5m band; most Asians prefer $500,000-1m

By KALPANA RASHIWALA

(SINGAPORE) Among the top foreign buyers of private homes last year, Asians (excluding Indonesians) primarily bought units in the $500,000 to $1 million range, while most Western buyers (Australians, UK and US citizens) picked up homes mostly in the $1.5-5 million range.

Indonesians were in the same category as the Western buyers, with the $1.5-5 million range being their most favoured price band. In fact, 47 per cent of the 1,219 caveats for private homes lodged by Indonesians last year were in this band, shows Jones Lang LaSalle's analysis of URA Realis caveats.

On the other hand, Malaysians, mainland Chinese, Indians, Koreans and Burmese were more likely to have bought a private home last year in the $500,000 to $1 million category.

DTZ executive director (consulting) Ong Choon Fah argues that Indonesians tend to buy a property here as a home away from home, often as a residence for their children studying here, and as a safe haven to park their wealth in a nearby country. Hence they are prepared to invest more for a property in Singapore.

Generally, though, Asians may set aside smaller budgets for their property investments in Singapore because they also compare property prices here relative to their home markets, Mrs Ong suggests.

JLL's South-east Asia research head Chua Yang Liang observes that while there is no noticeable difference in the location (district) preference between Asian and Western foreign buyers, there is a more prominent difference in terms of their price range. He suggests that this could be because the majority of Western foreign buyers are probably here on expatriate terms, while Asian buyers are likely to be working here under local terms or are just investors.

Mrs Ong suggests that Asians may be more 'adventurous' and prepared to shop for a property in Singapore's suburban locations, where deals below $1 million can still be found, whereas Western buyers may be more comfortable sticking to their traditional investment locations such as Districts 9 and 10 where expats have traditionally lived and property is pricier.

However, property market watchers point to a stronger presence by mainland Chinese in the higher-end property market in Singapore. JLL's analysis shows that they picked up 22 properties exceeding $5 million apiece last year. Most of their purchases in this price band were in Districts 10 and 4. District 4 includes Sentosa Cove, while District 10 is one of Singapore's traditional prime districts covering such locations as Ardmore Park, Cuscaden Road and the Nassim area.

Some 41 Indonesians, 28 Malaysians, 18 British Virgin Islanders and 16 UK citizens each bought properties costing over $5 million apiece in Singapore last year.

JLL's caveats analysis showed that foreigners' share of private home purchases increased to 27 per cent in Q4 last year, from a low of 15 per cent in Q1 2009, when the property market was still eschewed by foreign investors who had gone into hibernation in the aftermath of the global financial crisis. Foreigners lodged 20 and 23 per cent of caveats in Q2 and Q3 last year.

Their relatively low share in the first two quarters of last year dragged down their full-year share to 21.8 per cent from 24.1 per cent in 2008. However, in absolute numbers, the number of private residences bought by foreigners doubled from 3,176 in 2008 to 6,472 last year, amid the spectacular overall recovery in private home sales following price cuts by developers in the earlier part of last year. As well, investors soon developed a preference towards investing in property as an asset class after the global financial slump when billions vaporised overnight in investments in financial instruments.

Dr Chua forecasts that foreigners will continue to be active in the local property scene this year as the regional economies improve.

Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.

BT : Resales eat into developers' share of Q4 deals

Business Times - 21 Jan 2010
Resales eat into developers' share of Q4 deals

By KALPANA RASHIWALA

(SINGAPORE) A higher proportion of private home buyers turned to the resale market in Q4 2009 to pick up their dream homes instead of visiting a developer's showflat. Fewer launches by developers in Q4 and the removal of the interest absorption scheme in September last year probably contributed to this shift.

Jones Lang LaSalle (JLL)'s analysis of private housing transactions shows that the number of caveats lodged fell in all categories - primary market (or developer sales), resale and subsale markets - in Q4 2009 compared with the preceding quarter.

However, in percentage terms, the decline was bigger for developer sales at 68.8 per cent, compared with drops of 53.1 per cent for subsales and 39.3 per cent for resales.

As a result, the resale market accounted for 62 per cent of private residential caveats lodged in Q4, up from a 49 per cent share in Q3. Conversely, developers saw their share of total private home sales slide from 40 per cent in Q3 to 26 per cent in Q4.

Subsales' share of total transactions remained unchanged at 11 per cent. Subsales and resales are secondary market transactions; subsales involve projects that have yet to receive Certificate of Statutory Completion (CSC), while resales refer to developments with CSC.

The most popular projects that changed hands in the resale market in Q4 were The Sail @ Marina Bay (51 caveats at a median $1,901 psf), followed by Caribbean at Keppel Bay (49 deals at a $1,355 psf median price). Landed homes in Serangoon Gardens Estate were also much sought after, with 44 caveats lodged at a median price of $592 psf of land area. Melville Park in Simei saw 35 transactions at a median $529 psf in Q4, according to JLL's analysis of caveats captured in the URA Realis system.

In the subsale market, the top seller was Ferraria Park Condo in the Upper Changi area (32 units at $734 psf median price). Other popular subsale projects in Q4 include The Centris next to Boon Lay MRT Station, Casa Merah near Tanah Merah MRT Station, Botannia in the West Coast area and One Amber.

When it came to buying directly from developers, buyers' top picks in Q4 were Hundred Trees (310 units at median price of $941 psf), The Interlace (148 units at $1,049 psf median price), Suites @ Guillemard, Cyan and Elliot at the East Coast.

'The proportion of resale has edged up at the expense of new sales. One reason for this shift is the government's termination of interest absorption scheme (IAS) and interest only loans (IOL) in September 2009, which had been offered for primary market sales,' says JLL's head of research (SE Asia) Chua Yang Liang.

'Speculators who had been depending on this form of financial leveraging - they only needed to pay 10-20 per cent of the purchase price upfront and could defer paying the rest of the price till the project's completion - have effectively been removed from the market.'

For more genuine owner occupiers and investors too, the removal of IAS and IOL has cut their incentive to pick up a home from a developer vis-a-vis the secondary market, Dr Chua says.

Also contributing to the rise in resale proportion in Q4 was the completion of 3,930 private homes in Q3 2009, one of the highest quarterly completions since 2000. 'A corresponding increase in resale transaction volume is to be expected as more buyers are motivated to put their money down for a completed asset,' Dr Chua says.

Agreeing, DTZ executive director (consulting) Ong Choon Fah, says: 'Generally, you can pick up a home for relatively less in the resale market than in the primary market, and you can live in it or rent it out straight away.'

Also, developers launched fewer homes in Q4 than in the preceding two quarters, so house hunters had much less choice in the primary market, she adds.

Dr Chua says that he expects the proportion of resale activity to retreat by year-end given the lower projected completion of private homes this year.

Knight Frank managing director (residential services) Peter Ow also points out that as property launches revive this year, the absolute number of homes sold in the primary market, as well as their share of total private housing deals, will pick up.

Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.

BT : Fall in HDB upgraders' private home purchases

Business Times - 21 Jan 2010
Fall in HDB upgraders' private home purchases

THE strong recovery in private home prices during the course of last year pushed down HDB upgraders' share of private home purchases to 33.8 per cent in Q4 2009 from a high of 56.2 per cent in Q1 last year, shows the latest caveats analysis by Jones Lang LaSalle.

HDB upgraders accounted for 44.4 per cent of private home purchases in Q2 last year, with the share slipping to 37.9 per cent in Q3.

DTZ executive director Ong Choon Fah says: 'Whenever the market is down, for instance in Q1 last year, you tend to see more buying activity by HDB upgraders. When prices go up, HDB upgraders pull back, as they are very price sensitive. And there's no strong push factor for them to buy a private home since they already have a very good-quality roof over their heads.'

Urban Redevelopment Authority's price index for private homes contracted 18 per cent in the first half of 2009 (from end-2008 level) but recovered 24.2 per cent in the second half.

JLL's SE Asia research head Chua Yang Liang points out that the gap between prices of private condos/apartments and Housing & Development Board flats has widened since 2008. 'As such, we expect HDB upgraders' 'participation' in private home purchases to continue to pull back moderately before picking up again as more mass-market condo projects are launched when the government tenders out more sites during the course of this year.'

'I reckon HDB upgraders' share of private home purchases could hover around 35-40 per cent by end-2010,' he added.

Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.



'Whenever the market is down, for instance in Q1 last year, you tend to see more buying activity by HDB upgraders. When prices go up, HDB upgraders pull back, as they are very price sensitive.'

- DTZ executive director Ong Choon Fah