HDB InfoWeb : Policy Changes To Support An Inclusive And Cohesive Home

Date issued : 05 Mar 2010

The Minister for National Development, Mr Mah Bow Tan, announced in Parliament today housing policy changes to encourage Singapore Permanent Residents (SPRs) to take up citizenship, a new quota to promote social integration of SPR households in public housing estates, and a revision to the Ethnic Integration Policy to accommodate Singapore’s changing demographics.


PART A: PROMOTING CITIZENSHIP IN HDB HOUSEHOLDS

2 With globalisation, an increasing number of SPRs are joining our community as long-term residents. SPRs contribute economically and socially to building our society, and it is in our country’s interests for them to sink their roots here permanently. Hence we would like to encourage SPRs to take up Singapore citizenship.


Reinforcing the Privileges of Citizenship


3 HDB facilitates home ownership by providing generous subsidies. Today, SPRs married to Singapore Citizens (SCs) enjoy the same subsidies as Singaporean couples. We would like to encourage the SPR family members in such SC/SPR households to take up citizenship.


4 To do this and to reinforce the privilege of citizenship, HDB will withhold $10,000 of the housing subsidies enjoyed by SC/SPR households when they buy a flat. If they buy a resale flat, a Design, Build and Sell Scheme (DBSS) flat, or an Executive Condominium (EC), their Housing Grant will be reduced by $10,000. If they buy a new flat, they will have to pay a $10,000 premium on top of HDB’s selling price. The changes are summarised in Table 1.





5 The withheld subsidy of $10,000 will be restored when an SPR family member in the SC/SPR household takes up citizenship or if the couple has an SC child while still in ownership of that flat. Eligible households can apply to HDB within 6 months of the change in household citizenship status to claim the $10,000 Citizen Top-Up via CPF.


PART B: ENCOURAGING SOCIAL INTEGRATION - QUOTA FOR SPR HOUSEHOLDS


6 SPRs are long-term residents in Singapore. It is important that they integrate well in our local communities. Social integration is a key policy objective in our public housing system. In line with this, HDB will introduce a new SPR quota for non-Malaysian SPR families buying flats, to facilitate better integration and to prevent enclaves from forming in public housing estates.


How does the SPR quota work?

7 The SPR quota will be set at 5% and 8% at the neighbourhood and block levels respectively. It will apply in addition to the existing Ethnic Integration Policy (EIP) limits. The SPR quota takes into account the composition of SCs and SPRs in Singapore, and their respective demand for public housing. Malaysian SPRs will not be subject to the SPR quota, in view of their close cultural and historical similarities with Singaporeans.


8 The SPR Quota caps the proportion of non-Malaysian SPR households in HDB neighbourhoods and blocks. Similar to EIP, any resale resulting in an increase in SPR proportion will not be allowed, if the neighbourhood/block limit is already reached. Under such circumstances, an SC seller or a Malaysian SPR seller would not be able to sell his flat to a non-Malaysian SPR household. However, a non-Malaysian SPR seller would still be able to sell to another non-Malaysian SPR as this would not increase the number of non-Malaysian SPR households.


PART C: REVISION TO THE ETHNIC INTEGRATION POLICY (EIP)


9 The EIP was implemented in 1989 to ensure a balanced ethnic mix across HDB estates and to prevent the formation of racial enclaves.


10 In response to Singapore’s changing demographics, HDB will increase the limits for the Indian/Others ethnic group by two percentage points to 12% at the neighbourhood level and 15% at the block level. The current Indian/Others limits are 10% and 13% for neighbourhood and block respectively. There is no change to the limits for the Chinese and Malay ethnic groups as the current limits are sufficient. The revised ethnic limits are given in Table 2 below:





Implementation Date and Enquiries

11 The above housing policy changes will be implemented with immediate effect. More details can be found in Annexes A-C (PDF 16KB).

12 For enquiries, public can contact HDB through the following channels:


(a) Sales/Resale Customer Service Line : 1800 8663 066


(b) Branch Office Service Line : 1800 2255 432


(c) SERS Enquiry Line : 1800 8663 070

HDB InfoWeb : Lease Buyback Scheme To Benefit More Elderly HDB Households

Date issued : 05 Mar 2010

More elderly households can look forward to benefitting from the Lease Buyback Scheme (LBS). Minister for National Development, Mr Mah Bow Tan, announced in Parliament today the expansion of the LBS, which will make 3,800 more elderly households living in 3-room or smaller flats eligible for the scheme. The changes will be implemented from 1 April 2010.



Background


2 The LBS was launched on 1 March 2009 to help elderly households in 3-room and smaller flats unlock their housing equity to supplement their retirement needs. These households need more help as they are unlikely to be able to take advantage of existing monetisation options, such as right-sizing to a smaller flat or subletting a room. Under the LBS, the elderly will get to continue to live in their homes, while receiving a lifelong income stream.

Expansion of LBS

3 With effect from 1 Apr 2010, the LBS will be extended to the following two groups of elderly households living in 3-room or smaller flats:

a) Those who previously owned 4-room or bigger flats. Although they would have received substantial proceeds from the sale of their earlier flats, some of them could still be in need of help eg. those who had downsized many years ago. These elderly may now apply for LBS, and enjoy a Government subsidy of $5,0001.


b) Those with outstanding housing loan of more than $5,000, but will have minimum proceeds of $60,000 for the purchase of an Immediate Annuity under CPF LIFE if they take up LBS. This allows those with sufficient equity to purchase an annuity plan, even after deducting their outstanding loan of more than $5,000, to benefit from the LBS2.


4 With these changes, the revised LBS eligibility criteria are -


a) Citizen household living in a 3-room or smaller HDB flat;
b) All lessees are at least at the CPF draw-down-age, currently at 62 years old;
c) The household must not have enjoyed more than one housing subsidy in the past;
d) The household must have lived in their flat for at least 5 years;
e) The monthly household income must not exceed $3,000;
f) The household must not have owned or currently own a private residential property; and

g) The household must not have any outstanding housing loan on their flat that exceeds $5,000 unless they have minimum proceeds of $60,000 for the purchase of an Immediate Annuity under CPF LIFE.

5 With the expansion of the LBS, the number of beneficiaries will increase, from the seven in ten to eight in ten elderly households. Under the previous criteria, about 31,000 elderly households in 3-room and smaller flats (or 73% of elderly households in 3-room and smaller flats) were eligible for LBS. With the revision, the number of elderly households that stand to benefit increases to 34,800 (or 82% of elderly households in 3-room and smaller flats), i.e. an increase by 3,800 households (or increase by 12%).


6 An illustration on how LBS would benefit the elderly is attached at Annex A (PDF 45KB).


Enquiries


7 For further information or enquiries, the public can:


- visit HDB InfoWEB at www.hdb.gov.sg


- call the toll-free LBS Hotline at 1800-5556363 or Branch Office Service Line at 1800-2255432 on weekdays from 8.00 am to 5.00 pm


Note:
1 Other categories of LBS lessees who have not previously owned 4-room or bigger flats enjoy subsidy of $10,000.
2 Under LBS, the upfront cash payout is $5,000 and it is used to offset the outstanding loan in the first instance. Therefore, they will not be able to enjoy any cash payout if outstanding loan exceeds $5000.

HDB InfoWeb : Reinforcing Owner-Occupation Among HDB Flat Owners

Date issued : 05 Mar 2010

The Minister for National Development, Mr Mah Bow Tan, announced in Parliament today that HDB will be raising the Minimum Occupation Period (MOP) for the resale of non-subsidised HDB flats from 1 and 2.5 years to 3 years. The objective is to reinforce owner-occupation.


2 HDB flats are primarily meant to provide owners with a roof over their heads. They are not meant for speculation or short-term profit. Hence, lessees are required to stay in their flat for a minimum period before they may sell their flat in the open market. Currently, lessees of subsidized HDB flats, i.e. HDB flats bought directly from HDB, DBSS flats bought from private developers or resale flats bought with CPF housing grant, are subject to an MOP of 5 years. On the other hand, lessees of non-subsidised HDB flats i.e. resale flats bought without CPF Housing Grant, are subject to the following MOP:


a) Those who take an HDB concessionary loan – 2.5 years


b) Those who take a bank loan or do not take a loan – 1 year


3 To reinforce the principle of owner-occupation, the MOP for resale of non-subsidised flats will be increased to 3 years, regardless of whether the buyer takes an HDB loan, a bank loan or no loan at all. With the extension of MOP, the demand in the resale market will also more accurately reflect the interest from buyers who are buying flats for occupation.


4 The revised MOP policy will apply to resale transactions where applications are received by HDB from 5 Mar 2010 onwards. Existing lessees of non-subsidised flats will not be affected, i.e. the original MOP of 2.5 or 1 year continues to apply to them. There are also no changes to the MOP for subletting of whole flats.


ENQUIRIES


5 For enquiries, the public can contact HDB as follows:


(a) Sales/Resale Customer Service Line : 1800 8663 066


(b) Branch Office Service Line : 1800 2255 432


(c) SERS Enquiry Line : 1800 8663 070

HDB InfoWeb : Revisions to HDB Loan Policy to Support Right-sizing and Financial Prudence

Date issued : 05 Mar 2010

Minister for National Development, Mr Mah Bow Tan, announced changes to HDB’s second concessionary loan policy in Parliament today. The changes support flat owners to right-size, as well as ensure that buyers exercise financial prudence.


Lifting of Upgrading Condition

2 Currently, only households that are upgrading to a bigger flat type are eligible to apply for a second concessionary loan from HDB. This may have inadvertently encouraged some to upgrade even though it may not be prudent for them to do so.


3 HDB will remove the condition that a buyer must upgrade to qualify for a second concessionary loan. This means that the second concessionary loan will be made available to all eligible households regardless whether they upgrade, downsize or move to the same flat type. This will benefit families that need to right-size to smaller flats but do not have sufficient proceeds from the sale of their existing flats. However, HDB flat buyers who have disposed of their private properties will remain ineligible for a second concessionary loan.


Right-sizing the Quantum for the Second Concessionary HDB Loan

4 To further encourage financial prudence, HDB will reduce the quantum of the second concessionary loan by the full CPF proceeds and part of the cash proceeds from the sale of the existing or immediate past HDB flats. Flat buyers can keep the greater of $25,000 or half of the cash proceeds (including the cash deposit received). HDB will take into account the remaining part of the cash proceeds when determining the quantum of the second loan to be granted.

5 For those who buy the next flat after selling the existing one, they will have to use up to 50% cash proceeds from the sale of the immediate past HDB flat and all of the CPF balance to finance the purchase of the next flat. This will apply regardless of when the previous HDB flat was sold.

6 For those who buy their next flat before selling the existing one, the proceeds from the sale of their existing flat would not have been realised when they first apply for an HDB loan. To help them buy a flat, HDB will first grant them a bigger loan at commercial interest rates The commercial interest rates are pegged to the 3-month average non-promotional interest rate for HDB flats offered by the 3 local banks. Currently, the rate is 3.82%. after they draw down their CPF balance. After the sale of their existing flat, they will have to redeem this loan with the full CPF refund from sale of the existing flat and part of the cash proceeds as described in paragraph 4. Upon redemption, the loan will be converted to a concessionary rate loan.

7 The right-sizing of loan quantum will ensure that flat buyers do not take a larger second concessionary loan than necessary, and can help to reduce the likelihood of subsequent mortgage arrears. Please refer to the worked examples Annex A (PDF 16KB)


Implementation Date

8The revised second loan policy is implemented with immediate effect as follows:






ENQUIRIES

9For enquiries, the public can contact HDB through


(a) Sales/Resale Customer Service Line : 1800 866 3066
(b) Branch Office Service Line : 1800 225 5432
(c) SERS Enquiry Line : 1800 866 3070

ST : Retirement housing land lease to be studied

Mar 5, 2010

Retirement housing land lease to be studied

DEVELOPERS here already have the option to build retirement housing villages on any site that is zoned for residential use.

But the Government will study a suggestion by Nominated MP Laurence Wee that those interested in developing such villages be given the option of 60-year land leases - or 30-year leases that can be extended for a further 30-year period.

Senior Minister of State for National Development Grace Fu informed Mr Wee that the Urban Redevelopment Authority had, in fact, already made a Jalan Jurong Kechil site available for sale on a short tenure of 30 years.

'The developer has the flexibility to develop the site for retirement housing or conventional housing development. The shorter tenure of 30 years allowed for the site was intended to reduce the land costs, which could facilitate retirement housing development,' she said.

Ms Fu made the point that not only was the option of residential zones already available, but the developers could also build developments targeted at niche markets like the elderly. She said the Housing Board also built studio apartments that are custom-built for elderly living.

Mr Wee had envisaged a development of low-rise condominiums which offers elderly folk a means to live with peers, while staying socially involved to combat loneliness and depression.

Property developer and former Real Estate Developers' Association of Singapore chief Daniel Teo, 67, said the Government was 'moving in the right direction'.

He too is keen on developing a retirement village and agreed that longer leases would be more attractive.

He explained that higher building costs and the benefits of economies of scale might mean that having a longer lease would serve a developer better.

CAI HAOXIANG

BT : Buangkok site attracts highest-ever EC bid

Business Times - 05 Mar 2010

Buangkok site attracts highest-ever EC bid

The tender draws 11 bids, the highest being about $315 per sq ft per plot ratio

By KALPANA RASHIWALA

(SINGAPORE) A 99-year-leasehold executive condominium (EC) housing site near Buangkok MRT Station has fetched the highest ever bid for an EC site.

The top bid from a partnership between Frasers Centrepoint and Lum Chang Building Contractors of $193.28 million or about $315 per square foot per plot ratio (psf ppr) surpassed the previous record of $220 psf ppr for the Summerdale EC site in Boon Lay in May 1997, noted property consultant CB Richard Ellis (CBRE).

Yesterday's tender drew a total of 11 bids, reflecting developers' continuing hunger for land. The top bid came in slightly above market expectations in January, when the Housing & Development Board (HDB) launched the site. ECs are a hybrid of private and public housing.

With Lum Chang expected to provide construction services for the project, the tie-up should be able to minimise construction costs, industry observers noted yesterday. By some market estimates, their breakeven cost for a new EC project could be below $600 psf. The duo are expected to build a higher proportion of small units to try and achieve higher per square foot selling prices.

Even so, there will be a limit as to how small the apartments can be, given the high standard of public housing set in the area, for HDB Aspella, comprising premium HDB flats next to Buangkok MRT Station, market watchers say.

A possible option, and one which Frasers Centrepoint has done before, is to have some apartments with its 'dual-key concept', where a regular-sized apartment and a granny apartment (with its own kitchenette and bathroom) are packaged as a single unit.

CBRE executive director Li Hiaw Ho reckons Frasers Centrepoint and Lum Chang could sell their units in the $650-$680 psf range on average. Based on that, a 1,200-sq-ft unit in the new development would be priced at about $800,000.

A Frasers Centrepoint spokesman said yesterday: 'This site is well-located, and in view of the tight supply and great demand, we are confident that it will be an attractive development especially to home buyers who have been recently priced out of the market. We are planning to build about 500-plus units on the site.'

In the secondary market, three EC projects in the north-east region - The Rivervale, Florida and Park Green - have sold at $520-$600 psf between October 2009 and February 2010, said CBRE.

Yesterday's top bid was just 1.4 per cent above the second highest offer of $310 psf ppr by MCC Land, part of the China Metallurgical Construction Group. Other bidders at yesterday's tender included a JV led by Hoi Hup Realty; United Engineers unit Greatearth Holdings and a tie-up between Choice Homes Investments and a subsidiary of Chip Eng Seng Corporation. Interestingly, property giants Far East Organization and City Developments emerged near the bottom of the bids' table. The lowest bid came from Boon Keng Development at $198.52 psf ppr.

ECs are strata-titled apartments with facilities comparable to private condos. New ECs are sold with initial eligibility, ownership and resale restrictions similar to public housing; but these are completely removed after 10 years.

Among the buyer eligibility criteria is a maximum $10,000 monthly household income. Qualifying first-time buyers who purchase new ECs may also apply for a $30,000 CPF housing grant.

The winning tenderer will have to set aside 95 per cent of units in the initial month of sale for first-time home buyers - those who have yet to receive a housing subsidy from government. Second timers buying new ECs do not need to pay any resale levy.

The tender for another EC site, in Yishun, will close on March 11. HDB also announced yesterday it will launch another plot, also in Yishun, later this month or next month for development into HDB flats under the Design, Build & Sell Scheme. That site can potentially yield about 700 flats.

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.

CNA : HDB working to ease shortage of carpark lots

HDB working to ease shortage of carpark lots
Posted: 04 March 2010 1348 hrs

SINGAPORE: The Housing and Development Board (HDB) is looking into supply and demand management measures to ease the shortage of parking lots in some estates.

About 10 per cent of HDB carparks are currently unable to meet local parking demand, due to changes in the demographic profiles and car ownership patterns.

Parliamentary Secretary for National Development Dr Maliki Osman said this in Parliament, in response to questions from MP for Aljunied GRC Cynthia Phua on the ratio of carpark lots to the number of residential units in new HDB estates.

Ms Phua also asked if there are plans to increase the carpark lots in mature estates to reflect changes in the population demographics, as more HDB units now have more than one car.

Dr Maliki said in general, HDB's 1,800 carparks are sufficient to cater to both the season parking and short-term parking needs.

The average season parking take-up rate in HDB carparks is about 73 per cent.

Dr Maliki said that depending on the availability of space as well as cost considerations, HDB may add parking lots. It can extend the existing surface carparks to adjacent vacant land, add parking decks to existing multi-storey carparks (MSCPs), or build new MSCPs to replace existing surface carparks.

"There are limits to increasing carparks in land scarce Singapore. Therefore, demand management measures are also essential," Dr Maliki said.

He added: "Where there are only limited parking lots for season parking ticket holders, HDB accords priority to the first car in each household. HDB also groups its carparks for season parking such that car owners living in several nearby blocks share their carpark lots.

"HDB will continue to monitor and manage the supply and demand for HDB carparks to address residents' changing parking needs."

- CNA/sc

ST : 11 bids for exec condo site in Sengkang

Mar 5, 2010
11 bids for exec condo site in Sengkang
Top bid higher than expected; final selling prices likely to be over $650 psf
By Joyce Teo



The 19,000 sq m Sengkang site is near Buangkok MRT station and one stop away from Compass Point mall. -- ST PHOTO: CAROLINE CHIA
AN EXECUTIVE condominium (EC) site in Sengkang has drawn a whopping 11 bids, with the winning offer trumping analysts' expectations by a fair margin.

The 19,000 sq m site, which can be developed into 520 apartments and is near Buangkok MRT station, was topped by joint bidders Frasers Centrepoint's Opal Star and Lum Chang Building Contractors. Their valuation of the asset came to $193.28 million, or $315 per sq ft (psf) of gross floor area.

They nudged MCC Land (Singapore) and its bid of $190.7 million, or nearly $311 psf of gross floor area, into second place. The third bid of $181.19 million, or $295.3 psf of gross floor area, came from Hoi Hup Realty, Sunway Developments and Hoi Hup J.V. Development.

Analysts had expected lower bids of between $190 and $300 psf of gross floor area, which would translate into a final selling price of $550 to $600 psf.

By the close of the tender yesterday, developers large and small had put in pitches, from Far East Organization to Sim Lian Land and Chinese firm Qingjian Realty.

City Developments' unit submitted the second-to-last bid of $140.38 million, or $228.8 psf of gross floor area, while Boon Keng Development was last in with an offer of $121.8 million, or $198.5 psf of gross floor area.

CBRE Research said the large number of bids showed that developers continued to have an upbeat outlook for the suburban residential market, and signalled that they were keen to build up their land banks for suburban development.

'Six of the 11 bidders expect the new development...to be launched above $600 psf, which would be a reasonable average selling price for a new EC project at this location in today's market,' said Ngee Ann Polytechnic real estate lecturer Nicholas Mak.

'This indicates that about half of the developers in today's tender expect the price of entry-level homes to increase in the next year or so.'

The winner of the site will have to set aside 95 per cent of the units during the first month of sale for first-time home buyers, as stipulated by the Housing Board.

Frasers Centrepoint is looking to build 500-plus units on the plot, said a spokesman.

'This site is well located, and in view of the tight supply and great demand, we are confident that it will be an attractive development especially to home buyers who have been recently priced out of the market,' he said.

The units are not expected to be cheap, given that the top bid is the highest received for an EC site since land was made available for sale from this source in 1997, property experts said.

The previous record, set in May 1997, was at $220 psf of gross floor area, according to CBRE Research.

Based on the top bid's value, analysts estimate the break-even level to be about $600 to $640 psf, which indicates that final selling prices could range from $650 to $700 psf.

PropNex chief executive Mohamed Ismail said that such a price 'will seem reasonable' come the second half of the year, when developers who bought land recently at some $500 psf or more 'will be marketing their private mass market condos at more than $900 psf'.

At nearby The Rivervale EC, Florida EC and Park Green EC, units were sold at $520 to $600 psf between last October and last month, said CBRE Research.

The Government last put up an EC site for sale in Punggol in September 2008 but failed to attract any bids. The last EC launched was La Casa in Woodlands in May 2005 - for around $550 psf - which was completed in early 2008.

HDB announced yesterday that it will put up for tender a land parcel along Yishun Avenue 11 within the next two months. The site is earmarked for housing development under the Design, Build and Sell Scheme (DBSS) and will have a potential yield of 700 flats, it said.

joyceteo@sph.com.sg

ST Forum : Untrustworthy? Not property agents...

Mar 5, 2010

Untrustworthy? Not property agents...

I REFER to last Friday's report, 'In firefighters we trust (but not property agents)', which placed property agents as least trustworthy.

The online poll of 760 people conducted by Reader's Digest magazine is inconclusive.

The Public Perception & Expectations of Real Estate Agents survey conducted by Ngee Ann Polytechnic, involving 1,041 respondents and reported in the media two months ago, revealed that 81 per cent engaged property agents in their real estate transactions.

Of the total number of respondents, 68 per cent were tertiary-educated (diploma to postgraduate qualifications). From these figures, it can be deduced that well-educated consumers trust property agents enough to appoint them in their real estate transactions.

Unlike any consumer or insurance product, the purchase of a property may cost millions of dollars and often involve the consumer's life savings. Yet 843 people in the Ngee Ann Polytechnic survey enlisted the assistance of property agents in their real estate transactions.

This would appear inconceivable if property agents were the least trustworthy. In fact, of the remaining 19 per cent of respondents who did not use estate agents, less than 20 per cent of this group attributed their decision to 'lack of trust'.

That means fewer than 40 people out of 1,041 respondents actually said they did not trust property agents.

Moreover, 65 per cent of respondents were satisfied with their estate agents' services and 67 per cent rated them between 'satisfactory' and 'excellent' in the key attribute of Fiduciary, which referred to confidence and trust in an ethical relationship.

While the estate agency profession has not been adequately regulated, we do not agree that this is tantamount to being least trustworthy. The recent negative publicity of rogue estate agents is an exception and does not reflect the majority who value professionalism and integrity. We will all do well not to lean towards over-generalisation.

Dr Tan Tee Khoon
Chief Executive Officer
Singapore Accredited Estate Agencies

ST : URA has plans for old Kallang Airport site

Mar 5, 2010

URA has plans for old Kallang Airport site

I THANK Mr Edwin Pang for his Forum Online letter last Friday, 'Turn site into civil aviation heritage centre'.

The former Kallang Airport is located within Kallang Riverside, which is envisioned to be a new lifestyle hub at the fringe of the city area under the Urban Redevelopment Authority's (URA) 2008 Master Plan.

The former Kallang Airport passenger terminal building with its distinctive art deco structure, as well as the office buildings, former hangar, Old Airport Square and other historical structures, was designated a heritage area and conserved in 2008 to preserve memories while allowing for a new lease of life.

In future, they will be adapted to new uses as part of a future development centred on the conserved Old Airport Square, offering a wide range of lifestyle, entertainment and retail facilities.

In January, the Singapore Biennale committee announced that it was considering the former Kallang Airport as a venue for the festival next year. URA and the Singapore Land Authority are glad that the artistic community has found heritage buildings to be suitable venues for contemporary art events. Past editions of the Biennale were also held in heritage environments.

The synergy between heritage buildings and contemporary arts is useful in bringing the awareness of our conservation buildings to the wider public and helps to endear our heritage buildings to Singaporeans.

Hwang Yu-Ning (Ms)
Group Director (Physical Planning)
Urban Redevelopment Authority

TODAY Online : Giving seniors more housing options ...

Giving seniors more housing options ...

05:55 AM Mar 05, 2010

by Ong Dai Lin



To provide more residential options for the elderly, the Government will consider extending land leases to 60-year or 30-plus-30-year tenures for the building of retirement homes or villages.



Senior Minister of State (National Development) Grace Fu said developers are allowed to build retirement housing on any site zoned as residential. They can also build residential developments and customise the design and concept to target specific niche markets, including the elderly. Ong Dai Lin



Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved

ST : Property launches to go into high gear

Mar 4, 2010

Property launches to go into high gear

Luxury market expected to make strong rebound as economy improves

By Joyce Teo, Property Correspondent



-- PHOTOS: HIAP HOE, HONG LEONG HOLDINGS

DEVELOPERS are gearing up to launch more projects - especially prime ones - into a thriving property market driven by confident buyers keen to splash out on the back of the improving economy and a low interest rate environment.

The Government's anti-speculation moves last month are having little effect on genuine home hunters, who have ever wider real estate options.

Potential buyers will certainly have no lack of choices when it comes to new launches this month with 'easily half a dozen launches' coming up, said CB Richard Ellis (CBRE) executive director of residential services Joseph Tan.

Mass-market projects have been setting the pace for months but prime developments, which began inching back into the market late last year, are becoming more prevalent.

A CBRE Research report yesterday said that Singapore's luxury residential market is expected to make a strong rebound.

It noted that new luxury projects recorded launch prices of between $2,500 and $3,400 per sq ft (psf) in the fourth quarter of last year.

This beats the $2,100 psf to $2,700 psf range achieved at the end of 2008, demonstrating a strong turnaround, it said.

In January and February, 88 units of CapitaLand's prime Urban Suites were sold at $2,500 psf on average while about 35 units of The Laurels in Cairnhill Road went at $2,500 psf to $2,900 psf, it said.

The launches coming up on the weekend include the Hiap Hoe Group prime estate Waterscape At Cavenagh, and Hong Leong Holdings' Aalto.

The Waterscape At Cavenagh will house 200 one- to four-bedroom units and penthouses ranging from 581 sq ft to 2,992 sq ft. Prices at this weekend's launch will be about $1,880 per sq ft.

Hiap Hoe gave a preview of the project in late November and sold just three units at a median price of $1,909 psf. Another five units were sold in December. But this year it has sold 88 units, with the bulk transacted over the weekend after Chinese New Year, from $1,715 psf to $2,020 psf or $1.03 million to $3.15 million.

This weekend will also see Hong Leong Holdings release 60 high-floor units at the freehold 196-unit Aalto in Meyer Road. Prices will start from $2,000 psf.

A handful of lower-floor units are also available, from $1,500 psf. Absolute pricing ranges from $3.1 million for a 1,442 sq ft three-bedder to $5.3 million for a 1,959 sq ft four-bedroom unit.

The Aalto was first released in 2007 with units selling for around $1,950 psf. It was then launched in January 2008.

One unit was sold in January this year at $2,011 psf, leaving 78 unsold units in the condo, which will receive its temporary occupation permit in September.

A Hong Leong Holdings spokesman said: 'We have maintained the original selling price of the Aalto in light of premium value and location.'

Next weekend, buyers can look forward to Cheung Kong Holdings' The Vision in West Coast Crescent, The Laurels and Tiong Aik's Coralis in Joo Chiat Road. The Vision, a 99-year leasehold condo, is said to be priced about $1,100 psf.

Coralis is a freehold condo featuring one-bedders as small as 495 sq ft and penthouses of up to 3,089 sq ft. Indicative pricing is from $1,350 to $1,550 psf.

The pace will quicken over the next two to three months with possible launches including 76 Shenton Way, Seascape and Residences at W in Sentosa Cove, The Waterline on the former Toho Gardens site in Yio Chu Kang, UOL Group's Dakota Crescent project, and Starlight Suites in River Valley Close.

CBRE Research said the luxury projects Ardmore 3 and those on the sites of the old Grangeford, Hillcourt and Parisian estates are likely to be marketed in the first half of the year. Prices and rents of luxury properties are expected to rise by 10 per cent to 15 per cent and 5 per cent to 10 per cent respectively this year.

Overall, prices will continue to rise but at a much less frenetic pace, said Mr Tan. 'If you look at the recent land tenders, there's a certain replacement cost that developers need to look at. Some developers may want to put a forward price on their projects now as they don't want to run out of their landbank too quickly.'

joyceteo@sph.com.sg

BT : Prices of new luxury homes surge

Business Times - 04 Mar 2010

Prices of new luxury homes surge

Upmarket residential property rentals could climb 5-10% this year: CBRE

LAUNCH prices of new luxury residential projects in Singapore rose about 20-25 per cent last year and could appreciate a further 10-15 per cent this year, says CB Richard Ellis.

Rentals of completed luxury homes, which slid 10.5 per cent in 2009, could increase 5-10 per cent this year, according to the property consulting group.

Already, in the first two months of this year, prices have been climbing steadily, CBRE said, citing sales of 88 units at Urban Suites at $2,500 psf on average and about 35 units at The Laurels at $2,500-2,900 psf, although the latter features smaller units. Both projects are in the Cairnhill area.

Other luxury projects that will be marketed in the first half of 2010 include Ardmore 3, Nassim 8 and those on the sites of Grangeford and Parisian, CBRE said.

The Singapore residential property launch meanwhile continues to teem with activity in various market segments.

At Meyer Road, Hong Leong Holdings is releasing this week close to 60 upper-floor units at Aalto, a 27-storey freehold condo with a total of 196 units. Prices will start from $2,000 psf.

'Absolute pricing ranges from $3.1 million for a 1,442 sq ft three-bedder on the 18th floor to $5.3 million for a 24th level four-bedroom apartment of 1,959 sq ft,' the company said in a statement yesterday. A handful of lower-floor units are also available, from $1,500 psf.

The project was first launched in early 2008 and as at end-January this year, 118 units had been sold. Aalto comprises three and four bedroom apartments and penthouses. It is expected to receive Temporary Occupation Permit in September this year.

Hiap Hoe is also doing an official launch of its 200-unit Waterscape At Cavenagh this week. So far, it has sold 96 units. The average selling price is about $1,880 psf. The seven-storey freehold condo comprises one-to-four-bedroom apartments, and penthouses.

Later this month, Hong Leong Group could release a 202-unit project on the former Ong Building site at 76 Shenton Way. TID Pte Ltd - a joint venture between Hong Leong and Mitsui Fudosan - is also expected to preview in a few weeks Nathan Suites, a 24-storey project at Nathan Road, opposite the Malaysian High Commission. The project's 65 units comprise two, three and four-bedroom apartments as well as penthouses.

CBRE, in its release on the luxury residential market, said that recent sales activities point to the start of a revival in this market segment. 'It is likely that this interest in luxury homes is sustainable given the low interest rates and improving economic environment,' the firm's executive director, Li Hiaw Ho, said.

However, he predicts that 'we are unlikely to see runaway prices the way we did in 2007 as homebuyers will be less impulsive and more discerning following the latest government measures' to cool the market.

Back then, average launch prices of new luxe projects jumped from $1,800-2,600 psf in 2006 to $2,000-4,000 psf in 2007.

Overseas buyers returned at upmarket property launches in Singapore in Q4, as seen at Marina Bay Suites, Urban Suites, and Kasara the Lake, a plush villa development at Sentosa Cove. This bodes well for the market segment.

Elsewhere in Asia, prices of luxury homes in the secondary market edged up in Beijing, Shanghai, Guangzhou and Hong Kong by 6-10 per cent in Q4 2009 over the preceding quarter while remaining largely stable in other markets.

Singapore saw a 2.7 per cent quarter-on-quarter gain in average prime residential price in the secondary market to $2,260 psf in the fourth quarter. Despite strong sales, leasing demand for luxury homes remained rather fragile in some cities, with Beijing, Guangzhou, KL and Ho Chi Minh City posting a modest rental drop in Q4.

Leasing markets in Hong Kong, Shanghai and Bangkok began to gradually recover, with rents for luxury homes rising by increments ranging from one per cent in Bangkok to 6 per cent in Hong Kong.

Looking ahead, CBRE forecasts that end-users and investors may adopt a more cautious approach in the next couple of months following the introduction of measures that tighten lending for property in certain markets.

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.



Waterscape At Cavenagh: So far, Hiap Hoe has sold 96 units with average selling price at about $1,880 psf

ST : Orchard Central tenants come up empty

Mar 4, 2010

Orchard Central tenants come up empty

Observers cite lack of anchor tenant and complicated layout as reasons for poor business

By Jessica Lim



The empty corridors at Orchard Central make for a woeful sight. One shop has already closed, and tenants have asked landlord Far East Organization for rental rebates. -- ST PHOTO: RAJ NADARAJAN

THE tenants at Orchard Central mall, which is barely a year old, say they are struggling to keep their businesses afloat.

The corridors outside the shops are quiet, and walk-in customers are a rare breed - a stark contrast to the buzz at 313@Somerset and Ion Orchard, two malls which also opened last year.

At least one shop at Orchard Central, Fox Salon, has already closed, and tenants say about 70 of them have gone to landlord Far East Organization (FEO) to plead for rental rebates.

Other shops in Orchard Central seem headed the same way as Fox Salon, but some tenants are holding on, for fear of incurring the penalty for breaking their leases.

A beauty parlour owner, who gave her name as Ms Ng, said: 'We really want to leave this place. How are we to survive here for three more years?'

Each day she stays, she loses about $500, she said.

Her fourth-floor neighbour, Optical 88, is seeing an average of just four customers a day, fewer than at its other outlets in the heartlands.

Only a few shops seem to be keeping their heads above water. One is hair salon La Coco, which markets itself to Korean expatriates. It said it gets about 40 customers a day.

A spokesman for the salon said its Korean stylists keep the regulars returning, but if it had to rely on walk-ins, it too would go under.

Many other tenants declined to comment, saying their landlord had warned them against talking to reporters. This was denied by FEO, which said it was 'reviewing the performance of the outlets on a month-to-month basis' and 'granting rental assistance when appropriate'.

The mall, together with 313@Somerset and Ion Orchard, opened to great fanfare last year, hoping to benefit from a shopping frenzy as the economy emerged from a slump. It pulled in a million shoppers last December.

That was its peak number, said FEO, but it was also the traditional Christmas shopping period. In addition, FEO had pumped $5 million into advertising and promotions to get it off to a good start.

Orchard Central welcomed its first shoppers last May, departing from standard mall conventions in two ways: One was that it was a 'vertical mall', with 11 storeys of shops above ground. The other was its absence of anchor tenants.

Mall watchers say these factors may be why it is doing badly. Mr Colin Tan, director of property consultancy Chesterton International, said a mall needs a crowd puller like a cinema or a big department store. He also said that Orchard Central's labyrinthian layout does it no favours.

Auditor Teng Oon Tang, 24, who said she is unlikely to go back, said: 'Whenever I go there, I get lost or end up in a dead end. The only good thing it has are the comfortable sofas.'

Mr Ooi Eng Peng, chief executive of Lend Lease, which designed the neighbouring 313@Somerset, said his mall was built for easy navigation and to show off the shops. 'We're really happy with the mall. It has caught on as Singaporeans' favourite.'

Business is booming there, and at Ion Orchard. Nine million shoppers have visited 313@Somerset in three months, and Ion Orchard has been packing in 4.5 million visitors a month.

A check with their tenants confirmed this.

Marche at 313@Somerset says it serves more than 1,500 diners a day. Very Wooonderland, a clothing store in Ion Orchard, averages 100 customers daily and makes about $30,000 a month.

limjess@sph.com.sg

Additional reporting by Luke Vijay and Zeslene Mao

BT : 313@somerset draws more people than expected

Business Times - 04 Mar 2010

313@somerset draws more people than expected

By UMA SHANKARI

ORCHARD Road newcomer 313@somerset has received a higher than expected nine million visitors since it opened three months ago, the mall's owner, Lend Lease Group, said yesterday.

'When we first did the research three years ago, we were expecting something like 60,000-70,000 (visitors) a day. But now, the average is about 100,000 a day,' said Ooi Eng Peng, executive officer for retail and investment management in Asia for Australia-based Lend Lease.

The 301,000 square foot mall is fully leased at 'market rents'. Lend Lease won the retail site above Somerset MRT station in a government tender in 2006 with its top bid of $617.2 million. The mall had its official opening yesterday and now Lend Lease is on the lookout for more sites.

'We are very committed to Singapore and we hope we can get more land to build retail malls here,' said Mr Ooi. 'But the market landscape is quite competitive, everybody is trying (to get more land).'

Lend Lease, in particular, hopes to grow its presence in the suburban retail space, said Mr Ooi: 'If you look at our model around the world, we are very much focused on suburban malls.'

In Singapore, Lend Lease also has Parkway Parade Shopping Mall in its retail portfolio. But the company is not placing all its bets on the retail scene here - it also has plans to grow into other regional markets.

'For the next three years . . . we are very focused on three countries - China, Malaysia and Singapore,' said Mr Ooi. 'Singapore retail is very competitive because retail malls here are very tightly held. And China is a very big market for us. We are not rushing there but with our skills in retail, hopefully we can get some advantage in China.'

Lend Lease hopes to have a retail presence in China by the end of this year. And in Malaysia, Lend Lease has teamed up with property group SP Setia to build a RM750 million (S$311 million) retail mall in Setia City, in the Setia Alam township in Shah Alam.

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.



Dandy, just dandy: The new Orchard Road mall gets about 100,000 visitors a day, up from a forecast of 60,000-70,000