Business Times - 07 May 2010
PROPERTY MARKET
China home prices set to slide on govt curbs
Local authorities implement measures to crack down on property speculation to avert asset bubble
(BEIJING) China's home prices may slump 30 per cent as local authorities implement government measures to crack down on property speculation, according to brokerages including China Jianyin Investment Securities Co.
Home sales plunged nearly 40 per cent by both units and floor space in 15 major cities last week, extending a streak of declines since mid-April, according to Zheshang Securities Co. China on May 2 raised banks' reserve requirements for the third time this year, adding to last month's down-payment and interest rate increases on second mortgages.
The government is escalating efforts to avert asset bubbles after a record surge in property prices. Beijing has gone further, limiting residents in the capital to buying one new home starting this month, the first city to implement a restriction authorised by the central government.
'Austerity has taken the main tone in implementing the tightening policies, and Beijing's property measures are likely to be followed by other cities,' said Yang Qingli, a Beijing- based analyst at Bocom International Ltd. 'The extent of sales contraction will exceed what we anticipated, and the pace of home price declines will be faster than expected.'
Home prices in first-tier cities will drop by 30 per cent and commercial residential by 20 per cent, according to China Jianyin analyst Xing Weiwei. Shenyin Wanguo Research & Consulting Co analyst Kris Li said a 20 per cent drop without the introduction of a property tax, and a 30 per cent decline with the tax, will be reasonable following declines in volume.
China is 'very likely' to test a property tax this year, China Business News said on April 28, citing Gu Yunchang, a vice-chairman at the China Real Estate Research Association.
China is likely to reverse the tightening policies because they will put the nation's 8 per cent economic growth target for this year at risk, according to Macquarie Securities Ltd. Such changes could happen in the fourth quarter, when the government has evidence that the market has cooled, the brokerage's Hong Kong- based economist Paul Cavey said in a report on Wednesday.
The State Council on April 15 announced measures including a 50 per cent down payment and 1.1 times benchmark rate on second homes, and a ban on third mortgages. Property prices in 70 cities surged a record 11.7 per cent in March, defying a Jan 10 directive that ordered quickened construction of affordable housing and 'strict' second-mortgage policies.
'This time it seems measures adopted by local governments are more harsh than required' as the government made it clear that local officials will be held responsible for failing to curb home prices, said Shanghai-based Mr Li at Shenyin Wanguo.
In Beijing, average contracts signed dropped by 82 per cent from April to 211 units per day in the first two days of May, Bocom International analyst Toni Ho Chi Chung said in a May 5 report, citing government data. The Chinese capital last week ordered developers to start selling uncompleted apartments within three days of pre-sale approval, compared with a 10-day requirement imposed by the housing ministry to quicken supply.
'The wait-and-see atmosphere among buyers has grown very dense,' Zhang Kunyu, general manager of investment consulting at Centaline Property Agency Ltd's Beijing branch, said. Besides hefty declines in sales and a 'more obvious' drop in second-hand homes, some new projects have also started to cut prices, she added, without being specific.
Still, widespread price cuts for new homes are unlikely to take place soon, as it's 'obviously not wise' for developers to seek an unguaranteed boost to sales by sacrificing profit margins, according to a Sealand Securities Co report on April 29.
'Prices could stay sticky until September or October, when developers decide to accelerate sales, and potentially cut prices' as supplies increase in the second half, the Mirae Asset analysts said.
Developers found to delay home sales to speculate on further price gains or hoard land will be barred from share sales, 'major asset restructurings,' or bank borrowing, the State Council said on April 15. Five days later, the government ordered developers not to take deposits for sales of uncompleted apartments without proper approval and barred them from charging 'abnormally high' prices.
The government plans to restrict the use of pre-sale proceeds to the construction of related projects until their completion, the China Securities Journal reported yesterday without saying where it got the information. The move will put 'huge pressure' on developers' finances and prevent them from using the funds to buy land at high prices, the report said, citing Soho China Ltd chairman Pan Shiyi.
'My understanding of the policy is housing prices must come down, and prices need to go back to levels before mid-2009,' China Jianyin said in an April 29 report, citing Li Wenjie, a member of a State Council experts panel on property market controls. Mr Li is also North China head of Centaline.
The average price of new apartments in Shenzhen surged by 86.4 per cent from a year earlier in March, Xinhua reported on April 1, citing government data. Contracted sales in the southern city last week dropped 42 per cent from the preceding seven days and were 80 per cent down from 2009's average, according to Changjiang Securities Co. -- Bloomberg
Friday, May 7, 2010
ST Forum : HDB clears the air on lease expiry
May 7, 2010
HDB clears the air on lease expiry
I REFER to Mr Wong Pang Yee's letter, 'Allay uncertainty over HDB leasehold' (April 13).
HDB flats are 99-year leasehold properties. Like all leasehold properties, the land will revert to the Government when the lease on the land expires. The overwhelming majority of HDB flats today are far from expiry of their leases.
However, some flats in older estates may be selected for redevelopment under the Selective En Bloc Redevelopment Scheme, if it is economically viable. To maintain the value of older flats, the Government has also introduced various upgrading programmes such as the Home Improvement Programme and Lift Upgrading Programme.
Chan-Wong Jee Choo Lily (Mrs)
Deputy Director, Policy and Property
Housing & Development Board
HDB clears the air on lease expiry
I REFER to Mr Wong Pang Yee's letter, 'Allay uncertainty over HDB leasehold' (April 13).
HDB flats are 99-year leasehold properties. Like all leasehold properties, the land will revert to the Government when the lease on the land expires. The overwhelming majority of HDB flats today are far from expiry of their leases.
However, some flats in older estates may be selected for redevelopment under the Selective En Bloc Redevelopment Scheme, if it is economically viable. To maintain the value of older flats, the Government has also introduced various upgrading programmes such as the Home Improvement Programme and Lift Upgrading Programme.
Chan-Wong Jee Choo Lily (Mrs)
Deputy Director, Policy and Property
Housing & Development Board
ST : Three projects lauded for beating site challenges
May 7, 2010
Three projects lauded for beating site challenges
Engineers win BCA awards for using creative designs while ensuring safety
By Esther Teo
CONSULTING engineers Meinhardt faced major headaches while designing 313@Somerset in Orchard Road.
It had to divert the 10m-wide Stamford Canal, which ran through the building site, and handle 55,000 passers-by a day during construction.
To add to the challenge, the 313@Somerset complex is close to the Somerset MRT station and train tunnels.
Meinhardt's efforts at beating these challenges have now been recognised: It won the Building and Construction Authority (BCA) Design and Engineering Safety Excellence Award.
It swept two of the three awards announced by the BCA yesterday, for its work on 313@Somerset and City Square Residences. T.Y. Lin International received the third, for 78 Shenton Way.
Into its third year, the award recognises the often overlooked behind-the- scenes engineers for overcoming site challenges through creative engineering designs for site and public safety.
Nine merit winners, including Marina Barrage and the Singapore Flyer, were also recognised.
At the 313@Somerset site, Meinhardt Infrastructure - part of the Meinhardt group - managed to minimise ground movement using a reinforced concrete wall, and built temporary sheltered walkways for the hordes of commuters passing the construction site.
Meinhardt Infrastructure associate director Joanne Wong said the many challenges - including both integrating and diverting Stamford Canal within the development while ensuring it kept running - made the project 'very exciting'.
'It was very tough because Orchard Road is a very busy road and you have to keep the road clean all the time and look good even during construction,' she said.
'But our construction site, like any other, has dirt, earth, water, concrete trucks and steel bars coming in big vehicles and we have to plan the access well because the road has such heavy traffic.'
Ms Wong added that the route for pedestrian traffic had to be moved 15 times in the three years of construction, as the team dealt with challenges such as demolishing and reconstructing the station entrance amid a constant flow of human traffic and soft soil conditions.
Meinhardt's ability to deal with the tight space in the heart of the shopping district impressed the judges.
'To my knowledge, this is the first time here that you have a canal passing directly through a building,' said BCA building engineering director Chew Keat Chuan.
The project at 78 Shenton Way, whose civil and structural consultant was T.Y. Lin International, was also mentioned for its unique challenge of having a seven-storey office built above an existing four-storey carpark, which had to be in operation throughout the construction.
The site is also close to buildings in one of the busiest parts of Singapore, the Central Business District, said the BCA. This meant careful and meticulous planning was needed during construction to ensure that public safety was not compromised.
'With major roads...nearby, we had to carefully time our road closures with the authorities and also work at night to minimise disruptions to the office workers...We didn't have much space to store our equipment on site,' said T.Y. Lin principal Kenneth Liew.
And at the City Square Residences site, Meinhardt (Singapore), faced with difficult soil conditions - a 20m-thick layer of marine clay, to be exact - earned its distinction by constructing a circular wall 126m in diameter to protect the structural safety of old shophouses in the vicinity.
esthert@sph.com.sg
313@SOMERSET - Divert canal running through site, and handle 55,000 pedestrians a day -- ST FILE PHOTO, CB RICHARD ELLIS, BERITA HARIAN
Three projects lauded for beating site challenges
Engineers win BCA awards for using creative designs while ensuring safety
By Esther Teo
CONSULTING engineers Meinhardt faced major headaches while designing 313@Somerset in Orchard Road.
It had to divert the 10m-wide Stamford Canal, which ran through the building site, and handle 55,000 passers-by a day during construction.
To add to the challenge, the 313@Somerset complex is close to the Somerset MRT station and train tunnels.
Meinhardt's efforts at beating these challenges have now been recognised: It won the Building and Construction Authority (BCA) Design and Engineering Safety Excellence Award.
It swept two of the three awards announced by the BCA yesterday, for its work on 313@Somerset and City Square Residences. T.Y. Lin International received the third, for 78 Shenton Way.
Into its third year, the award recognises the often overlooked behind-the- scenes engineers for overcoming site challenges through creative engineering designs for site and public safety.
Nine merit winners, including Marina Barrage and the Singapore Flyer, were also recognised.
At the 313@Somerset site, Meinhardt Infrastructure - part of the Meinhardt group - managed to minimise ground movement using a reinforced concrete wall, and built temporary sheltered walkways for the hordes of commuters passing the construction site.
Meinhardt Infrastructure associate director Joanne Wong said the many challenges - including both integrating and diverting Stamford Canal within the development while ensuring it kept running - made the project 'very exciting'.
'It was very tough because Orchard Road is a very busy road and you have to keep the road clean all the time and look good even during construction,' she said.
'But our construction site, like any other, has dirt, earth, water, concrete trucks and steel bars coming in big vehicles and we have to plan the access well because the road has such heavy traffic.'
Ms Wong added that the route for pedestrian traffic had to be moved 15 times in the three years of construction, as the team dealt with challenges such as demolishing and reconstructing the station entrance amid a constant flow of human traffic and soft soil conditions.
Meinhardt's ability to deal with the tight space in the heart of the shopping district impressed the judges.
'To my knowledge, this is the first time here that you have a canal passing directly through a building,' said BCA building engineering director Chew Keat Chuan.
The project at 78 Shenton Way, whose civil and structural consultant was T.Y. Lin International, was also mentioned for its unique challenge of having a seven-storey office built above an existing four-storey carpark, which had to be in operation throughout the construction.
The site is also close to buildings in one of the busiest parts of Singapore, the Central Business District, said the BCA. This meant careful and meticulous planning was needed during construction to ensure that public safety was not compromised.
'With major roads...nearby, we had to carefully time our road closures with the authorities and also work at night to minimise disruptions to the office workers...We didn't have much space to store our equipment on site,' said T.Y. Lin principal Kenneth Liew.
And at the City Square Residences site, Meinhardt (Singapore), faced with difficult soil conditions - a 20m-thick layer of marine clay, to be exact - earned its distinction by constructing a circular wall 126m in diameter to protect the structural safety of old shophouses in the vicinity.
esthert@sph.com.sg
313@SOMERSET - Divert canal running through site, and handle 55,000 pedestrians a day -- ST FILE PHOTO, CB RICHARD ELLIS, BERITA HARIAN
ST : 16 bids for Hougang housing site
May 7, 2010
16 bids for Hougang housing site
By Esther Teo
RESIDENTIAL development sites continue to be snapped up aggressively with the tender of a site zoned for landed or apartment housing on Tampines Road receiving a total of 16 bids.
Fragrance Properties topped the tender, which closed yesterday, with a bid of $16.25 million - or $405 per sq ft per plot ratio (psf ppr)- just beating Whye Wah Group, with $15.5 million.
Fragrance's bid was also more than double the lowest bid of $7.5 million - or $187 psf ppr - by Kim Hoe Corporation.
The 99-year leasehold site near Hougang Avenue 3 has a land area of 28,656 sq ft and a maximum gross floor area of 40,118 sq ft, the HDB said. It was triggered for sale when a developer lodged an acceptable offer of $6.5 million.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said this high participation rate indicated that both large and small developers were still very hungry for development sites and bullish on the property market next year.
'There is a shortage of small residential development sites in the present Government Land Sale (GLS) programme that cost less than $30 million, which smaller developers could easily acquire,' he said.
The Government should thus consider including a few more of these small sites in the next GLS programme, he said.
Mr Mak noted that the highest bid could translate into a break-even price of $720 psf to $750 psf, with the developer likely to develop small apartments on this site to maximise the psf selling price.
16 bids for Hougang housing site
By Esther Teo
RESIDENTIAL development sites continue to be snapped up aggressively with the tender of a site zoned for landed or apartment housing on Tampines Road receiving a total of 16 bids.
Fragrance Properties topped the tender, which closed yesterday, with a bid of $16.25 million - or $405 per sq ft per plot ratio (psf ppr)- just beating Whye Wah Group, with $15.5 million.
Fragrance's bid was also more than double the lowest bid of $7.5 million - or $187 psf ppr - by Kim Hoe Corporation.
The 99-year leasehold site near Hougang Avenue 3 has a land area of 28,656 sq ft and a maximum gross floor area of 40,118 sq ft, the HDB said. It was triggered for sale when a developer lodged an acceptable offer of $6.5 million.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said this high participation rate indicated that both large and small developers were still very hungry for development sites and bullish on the property market next year.
'There is a shortage of small residential development sites in the present Government Land Sale (GLS) programme that cost less than $30 million, which smaller developers could easily acquire,' he said.
The Government should thus consider including a few more of these small sites in the next GLS programme, he said.
Mr Mak noted that the highest bid could translate into a break-even price of $720 psf to $750 psf, with the developer likely to develop small apartments on this site to maximise the psf selling price.
ST : Govt steps in to curb errant property agents
May 7, 2010
Govt steps in to curb errant property agents
New statutory board to regulate industry after rise in complaints
By Joyce Teo
NEW rules to nail errant property agents and protect Singapore's home buyers and sellers will be introduced by the Government.
It is planning a new statutory board - the Council for Estate Agencies - to regulate the industry and require all property agents to sit examinations, register and stick to a binding code of ethics and conduct.
Agents and agencies that flout the council's rules will be subjected to a range of disciplinary measures, including debarment.
A key impetus for the Government's get-tough initiative is the rising number of complaints made against property agents in recent years.
The Consumers Association of Singapore (Case) received 358 real estate cases, including complaints, in the first four months of this year, against 1,079 cases last year and 1,100 in 2008.
And there has been a range of gripes from consumers about agents failing to give proper advice, using misleading sales tactics and not honouring agreements.
Players in the largely fragmented and self-regulating industry had called for a mandatory licensing scheme for individual agents to help crack down on errant operators switching firms after being fired.
The existing voluntary accreditation programme had allowed some agents to rejoin the industry after serving prison sentences for fraud.
The changes - set to be introduced in the second half of the year - are destined to give regulation more focus, given that the Ministry of National Development has opted for a central body to license agencies and register agents.
Under the new regime, all estate agents will have to register through their agencies with the Council for Estate Agencies, which will also take over the Inland Revenue Authority of Singapore's role in licensing estate agencies.
To practise, property agents will need to pass a mandatory industry examination and undertake compulsory continuing professional development.
Those who have already passed an industry exam will not need to sit the new test.
New agents must have a minimum of four GCE O-level passes or the equivalent.
Licensed moneylenders, or employees of a licensed moneylender, are to be prohibited from becoming an estate agent or agency, and vice versa.
There have been reports of moneylenders trading as estate agents and exploiting cash-strapped HDB flat sellers. And National Development Minister Mah Bow Tan had announced in Parliament that new measures were being drafted to tackle the issue.
Additionally, the new regulations will set out standard prescribed estate agency agreements for sale and leasing deals.
Measures aimed at avoiding conflicts of interest are planned and will mean, for example, that agents will not be allowed to represent both the seller and buyer in the same transaction.
To keep errant players in check, the framework will have the backing of legislation and disciplinary mechanisms. This will give the Council for Estate Agencies the power to hit agencies and agents with warnings, fines, suspension and debarment.
ERA Asia-Pacific associate director Eugene Lim welcomed the introduction of the new controls.
'Errant agents can now hide behind the companies. With the change, they can be struck off the register and won't be able to practise any more,' he said.
In the area of consumer dispute resolution, agencies and agents will need to participate in mediation and adjudication.
This process will tap existing facilities, such as consumer watchdog Case and the Singapore Mediation Centre, instead of a special tribunal as earlier suggested.
The changes being implemented are going to mean that the Singapore Accredited Estate Agencies (SAEA) will no longer be accrediting agents.
SAEA chief executive Tan Tee Khoon said that the SAEA can help small firms with mediation services for dispute resolution and training, given that agencies will have to set up dispute resolution and training systems for their agents.
Mr Jeff Foo, president of the Institute of Estate Agents (IEA), said that the changes would mean the IEA becoming more relevant, given that as the platform and voice of the real estate sector, it can provide feedback to the new statutory board.
joyceteo@sph.com.sg
--------------------------------------------------------------------------------
Key elements of new framework
· Property agents need to be registered with a new statutory board called the Council for Estate Agencies. The board will also be licensing estate agencies.
· Agents must pass a mandatory industry examination, undertake mandatory continuing professional development of six hours a day, and have a minimum of four GCE O-level passes or the equivalent.
· Agents will not be allowed to represent both the seller and buyer in the same transaction.
· Estate agencies and agents must not be a licensed moneylender or an employee of a licensed moneylender.
· New legislative powers and mechanisms will be introduced to discipline agencies and agents. Such actions include warnings, fines, suspension and debarment of agencies and agents.
· A public registry of estate agencies and agents will allow consumers to check on the particular agency or agent they are engaging.
Govt steps in to curb errant property agents
New statutory board to regulate industry after rise in complaints
By Joyce Teo
NEW rules to nail errant property agents and protect Singapore's home buyers and sellers will be introduced by the Government.
It is planning a new statutory board - the Council for Estate Agencies - to regulate the industry and require all property agents to sit examinations, register and stick to a binding code of ethics and conduct.
Agents and agencies that flout the council's rules will be subjected to a range of disciplinary measures, including debarment.
A key impetus for the Government's get-tough initiative is the rising number of complaints made against property agents in recent years.
The Consumers Association of Singapore (Case) received 358 real estate cases, including complaints, in the first four months of this year, against 1,079 cases last year and 1,100 in 2008.
And there has been a range of gripes from consumers about agents failing to give proper advice, using misleading sales tactics and not honouring agreements.
Players in the largely fragmented and self-regulating industry had called for a mandatory licensing scheme for individual agents to help crack down on errant operators switching firms after being fired.
The existing voluntary accreditation programme had allowed some agents to rejoin the industry after serving prison sentences for fraud.
The changes - set to be introduced in the second half of the year - are destined to give regulation more focus, given that the Ministry of National Development has opted for a central body to license agencies and register agents.
Under the new regime, all estate agents will have to register through their agencies with the Council for Estate Agencies, which will also take over the Inland Revenue Authority of Singapore's role in licensing estate agencies.
To practise, property agents will need to pass a mandatory industry examination and undertake compulsory continuing professional development.
Those who have already passed an industry exam will not need to sit the new test.
New agents must have a minimum of four GCE O-level passes or the equivalent.
Licensed moneylenders, or employees of a licensed moneylender, are to be prohibited from becoming an estate agent or agency, and vice versa.
There have been reports of moneylenders trading as estate agents and exploiting cash-strapped HDB flat sellers. And National Development Minister Mah Bow Tan had announced in Parliament that new measures were being drafted to tackle the issue.
Additionally, the new regulations will set out standard prescribed estate agency agreements for sale and leasing deals.
Measures aimed at avoiding conflicts of interest are planned and will mean, for example, that agents will not be allowed to represent both the seller and buyer in the same transaction.
To keep errant players in check, the framework will have the backing of legislation and disciplinary mechanisms. This will give the Council for Estate Agencies the power to hit agencies and agents with warnings, fines, suspension and debarment.
ERA Asia-Pacific associate director Eugene Lim welcomed the introduction of the new controls.
'Errant agents can now hide behind the companies. With the change, they can be struck off the register and won't be able to practise any more,' he said.
In the area of consumer dispute resolution, agencies and agents will need to participate in mediation and adjudication.
This process will tap existing facilities, such as consumer watchdog Case and the Singapore Mediation Centre, instead of a special tribunal as earlier suggested.
The changes being implemented are going to mean that the Singapore Accredited Estate Agencies (SAEA) will no longer be accrediting agents.
SAEA chief executive Tan Tee Khoon said that the SAEA can help small firms with mediation services for dispute resolution and training, given that agencies will have to set up dispute resolution and training systems for their agents.
Mr Jeff Foo, president of the Institute of Estate Agents (IEA), said that the changes would mean the IEA becoming more relevant, given that as the platform and voice of the real estate sector, it can provide feedback to the new statutory board.
joyceteo@sph.com.sg
--------------------------------------------------------------------------------
Key elements of new framework
· Property agents need to be registered with a new statutory board called the Council for Estate Agencies. The board will also be licensing estate agencies.
· Agents must pass a mandatory industry examination, undertake mandatory continuing professional development of six hours a day, and have a minimum of four GCE O-level passes or the equivalent.
· Agents will not be allowed to represent both the seller and buyer in the same transaction.
· Estate agencies and agents must not be a licensed moneylender or an employee of a licensed moneylender.
· New legislative powers and mechanisms will be introduced to discipline agencies and agents. Such actions include warnings, fines, suspension and debarment of agencies and agents.
· A public registry of estate agencies and agents will allow consumers to check on the particular agency or agent they are engaging.
ST : Budding ideas on greening buildings, keeping heritage alive
May 7, 2010
Budding ideas on greening buildings, keeping heritage alive
By Jessica Cheam & Lee Yen Nee
IDEAS on how to ensure Singapore becomes a green and endearing home for its residents were unveiled by a focus group yesterday at a public forum.
Key recommendations by the 30-member group included an emphasis on greening buildings from the design stage right through the building's 'life cycle', to creating a heritage charter on activities allowed in heritage areas.
The members are from various local communities and were appointed by the Urban Redevelopment Authority (URA).
Yesterday's forum was part of the URA's review of the Concept Plan 2011, which maps out directions for Singapore's land use and transport for the next 40 to 50 years.
Co-chair ambassador Ong Keng Yong of the Institute of Policy Studies said Singapore needed to further green its infrastructure to ensure sustainability.
One key idea to emerge from the four months of discussions was to adopt a 'life cycle' approach to buildings, starting from the design stage, he said.
The group suggested that Singapore implement more policies and incentives to encourage the 'greening' of buildings, including considering sustainability as a criterion for the award of land tenders.
Other ideas included encouraging owners to retrofit existing buildings with green features.
'It's important we have a mindset change to these activities,' Mr Ong told the 200-strong forum at the URA Centre in Maxwell Road.
The other co-chair, Mr Lee Tzu Yang, chairman of Shell Companies in Singapore, emphasised that keeping the nation's heritage alive was key to fostering a feeling of belonging.
'Everyone wants a place they belong to, that's no argument. The tensions during discussions was on the pace of change, and whether in the process, we lose the things we have,' he said.
The group suggested keeping certain key areas 'relevant for the young and old'. For example, the proposed heritage charter would be jointly created by the public, private and community sectors to guide the types of activities and uses allowed in heritage areas, he said.
Other recommendations included keeping significant buildings, iconic structures and spaces in housing estates as 'physical anchors of our collective social memories'.
People at the forum generally agreed with the focus group's recommendations but suggested various improvements. One idea thrown up called for the Green Mark scheme for green buildings to be enhanced to assess the life cycle impact of buildings.
Budding ideas on greening buildings, keeping heritage alive
By Jessica Cheam & Lee Yen Nee
IDEAS on how to ensure Singapore becomes a green and endearing home for its residents were unveiled by a focus group yesterday at a public forum.
Key recommendations by the 30-member group included an emphasis on greening buildings from the design stage right through the building's 'life cycle', to creating a heritage charter on activities allowed in heritage areas.
The members are from various local communities and were appointed by the Urban Redevelopment Authority (URA).
Yesterday's forum was part of the URA's review of the Concept Plan 2011, which maps out directions for Singapore's land use and transport for the next 40 to 50 years.
Co-chair ambassador Ong Keng Yong of the Institute of Policy Studies said Singapore needed to further green its infrastructure to ensure sustainability.
One key idea to emerge from the four months of discussions was to adopt a 'life cycle' approach to buildings, starting from the design stage, he said.
The group suggested that Singapore implement more policies and incentives to encourage the 'greening' of buildings, including considering sustainability as a criterion for the award of land tenders.
Other ideas included encouraging owners to retrofit existing buildings with green features.
'It's important we have a mindset change to these activities,' Mr Ong told the 200-strong forum at the URA Centre in Maxwell Road.
The other co-chair, Mr Lee Tzu Yang, chairman of Shell Companies in Singapore, emphasised that keeping the nation's heritage alive was key to fostering a feeling of belonging.
'Everyone wants a place they belong to, that's no argument. The tensions during discussions was on the pace of change, and whether in the process, we lose the things we have,' he said.
The group suggested keeping certain key areas 'relevant for the young and old'. For example, the proposed heritage charter would be jointly created by the public, private and community sectors to guide the types of activities and uses allowed in heritage areas, he said.
Other recommendations included keeping significant buildings, iconic structures and spaces in housing estates as 'physical anchors of our collective social memories'.
People at the forum generally agreed with the focus group's recommendations but suggested various improvements. One idea thrown up called for the Green Mark scheme for green buildings to be enhanced to assess the life cycle impact of buildings.
ST : 1,050 BTO flats for Boon Lay, Yishun
May 7, 2010
1,050 BTO flats for Boon Lay, Yishun
Two new build-to-order projects meant to allay housing shortage fears
By Dickson Li
THE Housing Board is offering 1,050 flats at two new build-to-order (BTO) projects, in yet another sortie into the market to allay fears of a public housing shortage.
It launched 450 BTO units in Boon Lay and 600 in Yishun. This brings the total number of new BTO flats offered to the public this year to 6,132.
The launches are in line with the HDB's plan to offer an islandwide spread of at least 12,000 new BTO flats - in areas such as Punggol, Woodlands and Bukit Panjang - by September this year.
Next on the horizon are 2,400 additional BTO flats in Punggol and Sengkang, as well as the first public housing parcel along the Punggol waterway, the HDB said yesterday. Last month, the HDB released 1,429 flats for sale in fast-developing Punggol.
The projects launched yesterday - Boon Lay Grove in Jurong West Avenue 2 and Floral Spring @ Yishun in Yishun Avenue 11 - will be priced below 'equivalent market prices', the HDB said.
Boon Lay Grove is served by facilities from the Boon Lay estate including a shopping centre, community centre, park and schools. Sited five minutes away from the Pan-Island Expressway, it offers 300 four-room and 150 five-room flats.
Floral Spring @ Yishun, which is near an HDB neighbourhood centre, parks and schools, offers 96 studio apartments, 264 four-room and 240 five-room units.
The HDB is setting aside 95 per cent of the four- and five-room flats for first-time home buyers.
Applications for the new units are now open and will close on May 19. Those eligible can apply for a housing grant of up to $40,000.
dicksonl@sph.com.sg
1,050 BTO flats for Boon Lay, Yishun
Two new build-to-order projects meant to allay housing shortage fears
By Dickson Li
THE Housing Board is offering 1,050 flats at two new build-to-order (BTO) projects, in yet another sortie into the market to allay fears of a public housing shortage.
It launched 450 BTO units in Boon Lay and 600 in Yishun. This brings the total number of new BTO flats offered to the public this year to 6,132.
The launches are in line with the HDB's plan to offer an islandwide spread of at least 12,000 new BTO flats - in areas such as Punggol, Woodlands and Bukit Panjang - by September this year.
Next on the horizon are 2,400 additional BTO flats in Punggol and Sengkang, as well as the first public housing parcel along the Punggol waterway, the HDB said yesterday. Last month, the HDB released 1,429 flats for sale in fast-developing Punggol.
The projects launched yesterday - Boon Lay Grove in Jurong West Avenue 2 and Floral Spring @ Yishun in Yishun Avenue 11 - will be priced below 'equivalent market prices', the HDB said.
Boon Lay Grove is served by facilities from the Boon Lay estate including a shopping centre, community centre, park and schools. Sited five minutes away from the Pan-Island Expressway, it offers 300 four-room and 150 five-room flats.
Floral Spring @ Yishun, which is near an HDB neighbourhood centre, parks and schools, offers 96 studio apartments, 264 four-room and 240 five-room units.
The HDB is setting aside 95 per cent of the four- and five-room flats for first-time home buyers.
Applications for the new units are now open and will close on May 19. Those eligible can apply for a housing grant of up to $40,000.
dicksonl@sph.com.sg
ST : Most flats sold with low cash upfront: HDB
May 7, 2010
Most flats sold with low cash upfront: HDB
Figures show 7 in 10 paid less than $30,000 in past six months
By Jessica Cheam & Esther Teo
THE Housing Board (HDB) has released fresh figures that show the bulk of resale flat sales - about seven in 10 - in the past six months were done with less than $30,000 cash upfront needed.
More than half, or 54 per cent, of home buyers paid less than $25,000 cash upfront for their resale homes.
And about 40 per cent of flats sold in the September to March period were transacted with cash-over-valuations (COV) of below $20,000.
COV refers to the cash paid upfront by buyers above the valuation of a flat.
This figure - regarded as an indicator of the level of demand in the resale market by analysts - stabilised at a median of $25,000 for the first quarter ended March 31, up just $1,000 from the median of $24,000 in the previous quarter.
The HDB said it released detailed figures of COV levels for the first time because several media stories recently on 'extremely high COVs in areas like Bishan and Queenstown...do not provide a balanced picture'.
'Even in a market with rising COVs, there is always the flip side of transactions with lower COVs,' said the HDB in an e-mail to The Straits Times.
The HDB's figures showed that about 15 per cent of home buyers in the past six months bought their resale homes with $10,000 or less cash upfront needed.
Housing analysts said yesterday the new information will help home buyers and will also allay concerns about runaway COV prices highlighted in some recent media reports.
Chesterton Suntec International research and consultancy director Colin Tan said: 'The reality is different from the perception, so such figures help home buyers gauge the true picture on the ground.
'But at the $25,000 level, it may still be a high amount for some households,' he said. 'The good news is, as more new flats hit the market, demand will shift from the resale market and COV prices will eventually come down.'
On a different note, Ngee Ann Polytechnic real estate lecturer Nicholas Mak observed that the percentage of home buyers paying more than $30,000 rose from 26 per cent in the fourth quarter to 30 per cent in the first quarter.
'This shows there is still demand pressure and people are paying more,' he said. But there are signs that the HDB resale market is stabilising, he added.
HDB resale flat prices rose 3.9 per cent in the fourth quarter of last year, and rose at a slower rate of 2.8 per cent in the three months ended March 31.
'In a stabilising market - where prices continue to slow down - valuation of flats will catch up and COVs will get smaller,' said Mr Mak.
Valuation of flats is based on flat attributes and historical transactions.
PropNex chief executive Mohamed Ismail said agents are seeing resistance from buyers in paying high COVs since prices of HDB resale flats are already at their peak.
He expects COVs to correct to about a median of $20,000 by the end of the third quarter as the HDB's recent policy changes - such as raising the minimum time required for a seller to sell a home - take effect.
ECG Property Group chief executive Eric Cheng agreed, adding that owners asking for higher COVs had to be realistic, given new HDB housing developments coming up and restrictions placed on permanent resident home buyers.
One such home buyer refusing to pay high prices is Ms Pamela Yap, 25, who recently bought a three-room flat at Everton Park with her self-employed husband, 28, for $322,000 - $10,000 below valuation.
Ms Yap, who intends to spend $20,000 on renovations on her eighth-floor flat, said she was happy with the price, adding that it was the result of 'months of hunting for a good bargain'.
'We viewed many units before this and many of them asked for high COVs. We did not want to pay so much so we kept looking until we found one,' she said.
jcheam@sph.com.sg
esthert@sph.com.sg
--------------------------------------------------------------------------------
'As more new flats hit the market, demand will shift from the resale market and COV prices will eventually come down.'
Mr Colin Tan, research and consultancy director, Chesterton Suntec International
Most flats sold with low cash upfront: HDB
Figures show 7 in 10 paid less than $30,000 in past six months
By Jessica Cheam & Esther Teo
THE Housing Board (HDB) has released fresh figures that show the bulk of resale flat sales - about seven in 10 - in the past six months were done with less than $30,000 cash upfront needed.
More than half, or 54 per cent, of home buyers paid less than $25,000 cash upfront for their resale homes.
And about 40 per cent of flats sold in the September to March period were transacted with cash-over-valuations (COV) of below $20,000.
COV refers to the cash paid upfront by buyers above the valuation of a flat.
This figure - regarded as an indicator of the level of demand in the resale market by analysts - stabilised at a median of $25,000 for the first quarter ended March 31, up just $1,000 from the median of $24,000 in the previous quarter.
The HDB said it released detailed figures of COV levels for the first time because several media stories recently on 'extremely high COVs in areas like Bishan and Queenstown...do not provide a balanced picture'.
'Even in a market with rising COVs, there is always the flip side of transactions with lower COVs,' said the HDB in an e-mail to The Straits Times.
The HDB's figures showed that about 15 per cent of home buyers in the past six months bought their resale homes with $10,000 or less cash upfront needed.
Housing analysts said yesterday the new information will help home buyers and will also allay concerns about runaway COV prices highlighted in some recent media reports.
Chesterton Suntec International research and consultancy director Colin Tan said: 'The reality is different from the perception, so such figures help home buyers gauge the true picture on the ground.
'But at the $25,000 level, it may still be a high amount for some households,' he said. 'The good news is, as more new flats hit the market, demand will shift from the resale market and COV prices will eventually come down.'
On a different note, Ngee Ann Polytechnic real estate lecturer Nicholas Mak observed that the percentage of home buyers paying more than $30,000 rose from 26 per cent in the fourth quarter to 30 per cent in the first quarter.
'This shows there is still demand pressure and people are paying more,' he said. But there are signs that the HDB resale market is stabilising, he added.
HDB resale flat prices rose 3.9 per cent in the fourth quarter of last year, and rose at a slower rate of 2.8 per cent in the three months ended March 31.
'In a stabilising market - where prices continue to slow down - valuation of flats will catch up and COVs will get smaller,' said Mr Mak.
Valuation of flats is based on flat attributes and historical transactions.
PropNex chief executive Mohamed Ismail said agents are seeing resistance from buyers in paying high COVs since prices of HDB resale flats are already at their peak.
He expects COVs to correct to about a median of $20,000 by the end of the third quarter as the HDB's recent policy changes - such as raising the minimum time required for a seller to sell a home - take effect.
ECG Property Group chief executive Eric Cheng agreed, adding that owners asking for higher COVs had to be realistic, given new HDB housing developments coming up and restrictions placed on permanent resident home buyers.
One such home buyer refusing to pay high prices is Ms Pamela Yap, 25, who recently bought a three-room flat at Everton Park with her self-employed husband, 28, for $322,000 - $10,000 below valuation.
Ms Yap, who intends to spend $20,000 on renovations on her eighth-floor flat, said she was happy with the price, adding that it was the result of 'months of hunting for a good bargain'.
'We viewed many units before this and many of them asked for high COVs. We did not want to pay so much so we kept looking until we found one,' she said.
jcheam@sph.com.sg
esthert@sph.com.sg
--------------------------------------------------------------------------------
'As more new flats hit the market, demand will shift from the resale market and COV prices will eventually come down.'
Mr Colin Tan, research and consultancy director, Chesterton Suntec International
BT : URA focus group shares suggestions
Business Times - 07 May 2010
URA focus group shares suggestions
By UMA SHANKARI
A FOCUS group set up to look at sustainability and identity issues for the Concept Plan 2011 recommends that Singapore aim to be 'environmentally and socially sustainable'.
The group, set up by the Urban Redevelopment Authority in January, announced its draft recommendations and sought public feedback on them at a forum yesterday.
The recommendations have two main thrusts: building a sustainable city and making Singapore an endearing home.
Under the first key thrust, the group wants stronger 'green' infrastructure and greater sharing and ownership of sustainable practices.
This can include reviewing the land tender system to include criteria to encourage developers to incorporate more green features in their projects, and establishing an island-wide waste-reduction and recycling programme.
The focus group also advocates promoting environmentally friendly transport and reviewing car parking policies to discourage the use of private transport - for example, by reducing the number of car parking lots or charging higher car parking fees in the city and town centres.
Ong Keng Yong, co-chairman of the focus group and director of the Institute of Policy Studies, said a 'holistic' blueprint - rather than a 'piecemeal' approach - is needed to make Singapore sustainable.
Under the second key thrust - making Singapore an endearing home - the focus group asks the government to safeguard the island's built and natural heritage, including historic districts such as Chinatown, Kampong Glam and Little India, monuments such as the old Supreme Court and City Hall and natural areas such as Bukit Timah Nature Reserve and Pulau Ubin.
The focus group also wants to enhance people's experience of Singapore's built and natural heritage and involve the community in shaping an endearing Singapore. It recommends greater involvement of local communities, schools, stakeholders and NGOs in designing and managing 'endearing' spaces.
'It's to try to build a consensus among all the stakeholders in a particular area on how to cherish, safeguard the things we love in that district,' said Lee Tzu Yang, co-chairman of the focus group and chairman of Shell Singapore.
The public feedback sought by URA will be considered by the focus group for incorporation in its final report.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
URA focus group shares suggestions
By UMA SHANKARI
A FOCUS group set up to look at sustainability and identity issues for the Concept Plan 2011 recommends that Singapore aim to be 'environmentally and socially sustainable'.
The group, set up by the Urban Redevelopment Authority in January, announced its draft recommendations and sought public feedback on them at a forum yesterday.
The recommendations have two main thrusts: building a sustainable city and making Singapore an endearing home.
Under the first key thrust, the group wants stronger 'green' infrastructure and greater sharing and ownership of sustainable practices.
This can include reviewing the land tender system to include criteria to encourage developers to incorporate more green features in their projects, and establishing an island-wide waste-reduction and recycling programme.
The focus group also advocates promoting environmentally friendly transport and reviewing car parking policies to discourage the use of private transport - for example, by reducing the number of car parking lots or charging higher car parking fees in the city and town centres.
Ong Keng Yong, co-chairman of the focus group and director of the Institute of Policy Studies, said a 'holistic' blueprint - rather than a 'piecemeal' approach - is needed to make Singapore sustainable.
Under the second key thrust - making Singapore an endearing home - the focus group asks the government to safeguard the island's built and natural heritage, including historic districts such as Chinatown, Kampong Glam and Little India, monuments such as the old Supreme Court and City Hall and natural areas such as Bukit Timah Nature Reserve and Pulau Ubin.
The focus group also wants to enhance people's experience of Singapore's built and natural heritage and involve the community in shaping an endearing Singapore. It recommends greater involvement of local communities, schools, stakeholders and NGOs in designing and managing 'endearing' spaces.
'It's to try to build a consensus among all the stakeholders in a particular area on how to cherish, safeguard the things we love in that district,' said Lee Tzu Yang, co-chairman of the focus group and chairman of Shell Singapore.
The public feedback sought by URA will be considered by the focus group for incorporation in its final report.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Fraser keen to buy Malaysia malls
Business Times - 07 May 2010
Fraser keen to buy Malaysia malls
FRASERS Centrepoint Trust (FCT) said yesterday it is confident of maintaining historical revenue growth rates and is looking to buy malls in Malaysia to diversify its business.
FCT, which owns four suburban malls in Singapore, recorded compounded gross revenue growth of 7.5 per cent per annum since listing in 2006. During this period, distribution to shareholders rose by an average of 5.7 per cent per unit each year.
'Looking at revenue trends and looking at rental reversions, in general, we think that this is quite a sustainable trend,' chief executive Chew Tuan Chiong said when asked if growth was sustainable.
'There was growth even during the downturn and right now, things are looking bright,' he told Reuters in an interview.
He said rental income from existing malls could rise as rents at its properties are below the market average, although he added that FCT preferred to 'put less pressure' on tenants.
The property trust recently refurbished one of its malls called Northpoint, which is already benefiting from a higher stream of rental income. Rents at Northpoint have risen by about 20 per cent since the renovations, he said.
Most analysts have a 'buy' recommendation on FCT, favouring it over rivals such as CapitaMall Trust and Suntec due to the greater potential for rent increases.
FCT will also benefit from the likely injection of new properties by parent Fraser and Neave , a property, beer and soft drinks conglomerate.
OCBC, for example, predicts FCT could raise rents at Causeway Point, the trust's largest property, to S$13-S$14 per square foot per month from S$11-12 psf/month through asset enhancement.
Mr Chew, who joined FCT in March this year, said the trust will buy malls with stable income streams from its parent company as well as seek acquisitions from third parties.
'We are quite interested in Malaysia because we have very similar operations parameters,' he said.
FCT already owns a 31 per cent stake in Hektar Reit, a Malaysian-listed Reit, and Mr Chew said the Singapore property trust is prepared to invest directly in Malaysian malls.
Mr Chew said FCT plans to stay focused on Singapore suburban malls as they command steady rents unlike swankier malls along the Orchard Road shopping belt that depend a lot on tourism\. \-- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Fraser keen to buy Malaysia malls
FRASERS Centrepoint Trust (FCT) said yesterday it is confident of maintaining historical revenue growth rates and is looking to buy malls in Malaysia to diversify its business.
FCT, which owns four suburban malls in Singapore, recorded compounded gross revenue growth of 7.5 per cent per annum since listing in 2006. During this period, distribution to shareholders rose by an average of 5.7 per cent per unit each year.
'Looking at revenue trends and looking at rental reversions, in general, we think that this is quite a sustainable trend,' chief executive Chew Tuan Chiong said when asked if growth was sustainable.
'There was growth even during the downturn and right now, things are looking bright,' he told Reuters in an interview.
He said rental income from existing malls could rise as rents at its properties are below the market average, although he added that FCT preferred to 'put less pressure' on tenants.
The property trust recently refurbished one of its malls called Northpoint, which is already benefiting from a higher stream of rental income. Rents at Northpoint have risen by about 20 per cent since the renovations, he said.
Most analysts have a 'buy' recommendation on FCT, favouring it over rivals such as CapitaMall Trust and Suntec due to the greater potential for rent increases.
FCT will also benefit from the likely injection of new properties by parent Fraser and Neave , a property, beer and soft drinks conglomerate.
OCBC, for example, predicts FCT could raise rents at Causeway Point, the trust's largest property, to S$13-S$14 per square foot per month from S$11-12 psf/month through asset enhancement.
Mr Chew, who joined FCT in March this year, said the trust will buy malls with stable income streams from its parent company as well as seek acquisitions from third parties.
'We are quite interested in Malaysia because we have very similar operations parameters,' he said.
FCT already owns a 31 per cent stake in Hektar Reit, a Malaysian-listed Reit, and Mr Chew said the Singapore property trust is prepared to invest directly in Malaysian malls.
Mr Chew said FCT plans to stay focused on Singapore suburban malls as they command steady rents unlike swankier malls along the Orchard Road shopping belt that depend a lot on tourism\. \-- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : 78 Shenton Way, 313 and City Square bag awards
Business Times - 07 May 2010
78 Shenton Way, 313 and City Square bag awards
THE Building and Construction Authority yesterday announced the three winners of this year's Design and Engineering Safety Excellence Awards.
The winners - 313@Somerset, 78 Shenton Way and City Square Residences - were chosen from 20 entrants by a panel of industry experts.
Another nine projects - including City Square Mall, Changi Terminal 3 and the Singapore Flyer - received merit awards. The BCA Design and Engineering Safety Excellence Award, now in its third year, recognises engineers and project team members for coming up with excellent design in the face of challenges, while maintaining high safety standards. Winners will be presented with their awards at a function on May 26 at the Shangri-La Hotel.
Assessing committee chairman and BCA board member Pek Lian Guan said: 'In our densely built environment, engineers are constantly challenged to overcome constraints and difficulties with creative design solutions. I commend their professionalism and tireless effort in contributing to our safe environment.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
78 Shenton Way, 313 and City Square bag awards
THE Building and Construction Authority yesterday announced the three winners of this year's Design and Engineering Safety Excellence Awards.
The winners - 313@Somerset, 78 Shenton Way and City Square Residences - were chosen from 20 entrants by a panel of industry experts.
Another nine projects - including City Square Mall, Changi Terminal 3 and the Singapore Flyer - received merit awards. The BCA Design and Engineering Safety Excellence Award, now in its third year, recognises engineers and project team members for coming up with excellent design in the face of challenges, while maintaining high safety standards. Winners will be presented with their awards at a function on May 26 at the Shangri-La Hotel.
Assessing committee chairman and BCA board member Pek Lian Guan said: 'In our densely built environment, engineers are constantly challenged to overcome constraints and difficulties with creative design solutions. I commend their professionalism and tireless effort in contributing to our safe environment.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : 40% of resold flats had COV below $20,000
Business Times - 07 May 2010
40% of resold flats had COV below $20,000
HDB releases COV figures amid worries caused by reports of sky-high resale flat prices
By EMILYN YAP
(SINGAPORE) As resale flat prices continue to climb, is it still possible to secure a home by paying a cash premium of $20,000 or less? According to the Housing & Development Board (HDB), some 40 per cent of buyers in the last six months managed to do so.
HDB yesterday released fresh figures on the amount of cash-over-valuation (COV) buyers fork out, in a bid to calm nerves frayed by reports of sky-high flat prices.
Of 7,907 resale transactions in Q1, 39 per cent involved COVs of $20,000 or less. In another 31 per cent of cases, COVs ranged from $20,001-$30,000. For the remaining 30 per cent, COVs exceeded $30,000.
There were no details on what the highest COV in Q1 was, or what the profile of buyers who paid COVs of more than $30,000 are.
The breakdown was similar in Q4 2009. Of 8,297 resale cases, 41 per cent involved COVs of $20,000 or less. COVs went up to $30,000 for another 33 per cent of deals, and exceeded $30,000 for the remaining 26 per cent.
HDB revealed these numbers after reports of high COVs surfaced. Last month, owners of a penthouse maisonette in Bishan were said to have sold their flat for $900,000, which included a cash premium of $170,000.
Another penthouse in Queenstown almost changed hands for $950,000 - inclusive of a COV of $75,000 - but the deal fell through.
These reported cash premiums are astounding compared with the norm. The median COV for all resale transactions in Q1 was $25,000, slightly higher than the $24,000 a quarter ago.
The median COV was as low as $3,000 in Q2 last year, when the financial crisis was at its worst.
Regardless of whether the reported transactions go through, such news have encouraged some flat owners to demand higher cash premiums, said HSR executive director (agency) Jeffrey Hong. Flats with COVs of 'less than $20,000 are still quite hard to find'.
Those in popular areas tend to command larger COVs. According Q1 HDB statistics, median cash premiums are highest in areas such as Bishan and Queenstown.
Mr Hong notes that home seekers who can afford a cash premium of $20,000 - $22,000 will probably have to settle for a flat in the outskirts of town, such as Marsiling, Ubi or Jurong West.
The attributes of the flat also matter, said ERA Asia Pacific associate director Eugene Lim. He observes that COVs for four to five-room flats, as well as for newer flats in good condition, are usually higher.
According to both agents, COV levels have stabilised recently. ERA's Mr Lim said that flat valuations are high, and that has put a cap on how much buyers can pay in all.
HDB gives out housing grants to help eligible home seekers buy a flat. It said that last year, it disbursed about $360 million in grants to some 9,100 resale flat buyers.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
40% of resold flats had COV below $20,000
HDB releases COV figures amid worries caused by reports of sky-high resale flat prices
By EMILYN YAP
(SINGAPORE) As resale flat prices continue to climb, is it still possible to secure a home by paying a cash premium of $20,000 or less? According to the Housing & Development Board (HDB), some 40 per cent of buyers in the last six months managed to do so.
HDB yesterday released fresh figures on the amount of cash-over-valuation (COV) buyers fork out, in a bid to calm nerves frayed by reports of sky-high flat prices.
Of 7,907 resale transactions in Q1, 39 per cent involved COVs of $20,000 or less. In another 31 per cent of cases, COVs ranged from $20,001-$30,000. For the remaining 30 per cent, COVs exceeded $30,000.
There were no details on what the highest COV in Q1 was, or what the profile of buyers who paid COVs of more than $30,000 are.
The breakdown was similar in Q4 2009. Of 8,297 resale cases, 41 per cent involved COVs of $20,000 or less. COVs went up to $30,000 for another 33 per cent of deals, and exceeded $30,000 for the remaining 26 per cent.
HDB revealed these numbers after reports of high COVs surfaced. Last month, owners of a penthouse maisonette in Bishan were said to have sold their flat for $900,000, which included a cash premium of $170,000.
Another penthouse in Queenstown almost changed hands for $950,000 - inclusive of a COV of $75,000 - but the deal fell through.
These reported cash premiums are astounding compared with the norm. The median COV for all resale transactions in Q1 was $25,000, slightly higher than the $24,000 a quarter ago.
The median COV was as low as $3,000 in Q2 last year, when the financial crisis was at its worst.
Regardless of whether the reported transactions go through, such news have encouraged some flat owners to demand higher cash premiums, said HSR executive director (agency) Jeffrey Hong. Flats with COVs of 'less than $20,000 are still quite hard to find'.
Those in popular areas tend to command larger COVs. According Q1 HDB statistics, median cash premiums are highest in areas such as Bishan and Queenstown.
Mr Hong notes that home seekers who can afford a cash premium of $20,000 - $22,000 will probably have to settle for a flat in the outskirts of town, such as Marsiling, Ubi or Jurong West.
The attributes of the flat also matter, said ERA Asia Pacific associate director Eugene Lim. He observes that COVs for four to five-room flats, as well as for newer flats in good condition, are usually higher.
According to both agents, COV levels have stabilised recently. ERA's Mr Lim said that flat valuations are high, and that has put a cap on how much buyers can pay in all.
HDB gives out housing grants to help eligible home seekers buy a flat. It said that last year, it disbursed about $360 million in grants to some 9,100 resale flat buyers.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Asia should watch for tidal waves of cash coming its way
Business Times - 07 May 2010
Asia should watch for tidal waves of cash coming its way
By WILLIAM PESEK JR
IT feels a lot like 1996. It was then, a year before the region plunged into chaos, when investors were rushing to Asia with nary a concern about hot money overwhelming developing economies. It ended in tears for governments, households and financiers alike. The good news is that Asia is standing its ground amid the global crisis. The bad news is that Asia is home to the next great asset bubble as tidal waves of capital rush its way. Expect lots of interest- rate volatility as central banks search for a balance between healthy growth and too much. And don't be surprised if capital controls are a big part of the process.
Yes, that bane of investors' existence is coming at least moderately into vogue. That was clear in Tashkent this week as policymakers at the International Monetary Fund (IMF) and Asian Development Bank (ADB) appeared less hostile to the idea of limiting the movement of money.
As Asia goes full circle from the late 1990s when capital controls were the financial equivalent of a mortal sin, investors are left with no choice but to adapt. That may not be as big a problem as many think. Anything that provides a shock absorber to keep Asia from overheating will be welcome.
'I, as an investor, loathe capital controls in all forms, but we will certainly see more of them,' Robert Parker, London-based senior adviser at Credit Suisse Group, told me in Tashkent, where the ADB held its annual meeting.
When I asked Naoyuki Shinohara, deputy managing director of the IMF, he admitted the institution is now more open to such barriers on capital. The key, of course, is not to go too far by inhibiting growth and scaring off foreign investment that's needed to support it. It's a breathtaking sea change when you consider how the IMF was militantly against controls 12 years ago. Back then, Malaysian prime minister Mahathir Mohamad was an international pariah for implementing them. In late 2006, investors chastised Thailand for slapping controls on markets.
The shift speaks to Asia's predicament over the next couple of years. Asia has weathered the financial crisis, as just about anyone visiting Tashkent agreed. China and India beat the odds and continue to grow strongly. South Korea confounded the sceptics anew, as did Indonesia. Japan's persistent malaise aside, Asia is hot and getting hotter. The trouble is, all this good press means Asia may have too much of a good thing on its hands. As the United States grapples with unemployment, the euro area is trying to avoid disintegration. Greece's woes are reverberating through markets. There's little confidence in Asia that a recent US$146 billion bailout will be the last in Europe. The buzz in Asia is who's next? Even if concerns about contagion from Europe are overdone, Asia must brace itself for the opposite: fast-accelerating capital flows from West to East. With official interest rates in the euro area, UK, US and Japan close to zero, world markets are awash in liquidity searching for higher yields.
For many, that means Asia. Emerging markets need to take 'urgent action' on the surge of liquidity and capital flowing into their economies because they could spur inflation and trigger another crisis, according to a report last week by Standard Chartered plc. One area for concern is debt markets. While vastly improved since the 1990s, Asia still hasn't built the deep, liquid bond arenas needed to stabilise growth. It means that lots of the capital flowing Asia's way will end up in stocks and property. In a perfect world, investors would move into bonds as asset prices get frothy. The lack of dynamic secondary debt markets means many may just leave Asia, as opposed to diversifying into the region's fixed-income investments. It makes Asia more volatile than it should be in 2010.
Capital controls could help ameliorate the problem. One way to go is to implement 'targeted controls', says Masahiro Kawai, head of the Tokyo-based Asian Development Bank Institute. He points to Brazil as an example. In 2009, Brazil implemented a tax on foreign purchases of stocks and fixed-income investment in a bid to stem the currency's advance. Markets took the step much better than Thailand's 2006 moves, which sent stocks plunging.
A point lost on few is that China and India, which have more conservative regulations than the West, weathered the crisis. With the G-20 nations dragging their feet on crafting a safer global financial system, governments will feel pressed to do what they can to tame markets.
Unlike in 1996, Asia knows a tsunami of cash is coming its way and that it comes with risks. Carefully employed, capital controls could siphon some of the heat from Asia's latest hot-money challenge. Free-market champions are unlikely to concede that any curbs on money flows are appropriate. Smart people can, and will, debate this issue. It's inevitable, though, and the sooner markets learn to live with it, the better.
William Pesek is a Bloomberg News columnist.
The opinions expressed are his own
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Asia should watch for tidal waves of cash coming its way
By WILLIAM PESEK JR
IT feels a lot like 1996. It was then, a year before the region plunged into chaos, when investors were rushing to Asia with nary a concern about hot money overwhelming developing economies. It ended in tears for governments, households and financiers alike. The good news is that Asia is standing its ground amid the global crisis. The bad news is that Asia is home to the next great asset bubble as tidal waves of capital rush its way. Expect lots of interest- rate volatility as central banks search for a balance between healthy growth and too much. And don't be surprised if capital controls are a big part of the process.
Yes, that bane of investors' existence is coming at least moderately into vogue. That was clear in Tashkent this week as policymakers at the International Monetary Fund (IMF) and Asian Development Bank (ADB) appeared less hostile to the idea of limiting the movement of money.
As Asia goes full circle from the late 1990s when capital controls were the financial equivalent of a mortal sin, investors are left with no choice but to adapt. That may not be as big a problem as many think. Anything that provides a shock absorber to keep Asia from overheating will be welcome.
'I, as an investor, loathe capital controls in all forms, but we will certainly see more of them,' Robert Parker, London-based senior adviser at Credit Suisse Group, told me in Tashkent, where the ADB held its annual meeting.
When I asked Naoyuki Shinohara, deputy managing director of the IMF, he admitted the institution is now more open to such barriers on capital. The key, of course, is not to go too far by inhibiting growth and scaring off foreign investment that's needed to support it. It's a breathtaking sea change when you consider how the IMF was militantly against controls 12 years ago. Back then, Malaysian prime minister Mahathir Mohamad was an international pariah for implementing them. In late 2006, investors chastised Thailand for slapping controls on markets.
The shift speaks to Asia's predicament over the next couple of years. Asia has weathered the financial crisis, as just about anyone visiting Tashkent agreed. China and India beat the odds and continue to grow strongly. South Korea confounded the sceptics anew, as did Indonesia. Japan's persistent malaise aside, Asia is hot and getting hotter. The trouble is, all this good press means Asia may have too much of a good thing on its hands. As the United States grapples with unemployment, the euro area is trying to avoid disintegration. Greece's woes are reverberating through markets. There's little confidence in Asia that a recent US$146 billion bailout will be the last in Europe. The buzz in Asia is who's next? Even if concerns about contagion from Europe are overdone, Asia must brace itself for the opposite: fast-accelerating capital flows from West to East. With official interest rates in the euro area, UK, US and Japan close to zero, world markets are awash in liquidity searching for higher yields.
For many, that means Asia. Emerging markets need to take 'urgent action' on the surge of liquidity and capital flowing into their economies because they could spur inflation and trigger another crisis, according to a report last week by Standard Chartered plc. One area for concern is debt markets. While vastly improved since the 1990s, Asia still hasn't built the deep, liquid bond arenas needed to stabilise growth. It means that lots of the capital flowing Asia's way will end up in stocks and property. In a perfect world, investors would move into bonds as asset prices get frothy. The lack of dynamic secondary debt markets means many may just leave Asia, as opposed to diversifying into the region's fixed-income investments. It makes Asia more volatile than it should be in 2010.
Capital controls could help ameliorate the problem. One way to go is to implement 'targeted controls', says Masahiro Kawai, head of the Tokyo-based Asian Development Bank Institute. He points to Brazil as an example. In 2009, Brazil implemented a tax on foreign purchases of stocks and fixed-income investment in a bid to stem the currency's advance. Markets took the step much better than Thailand's 2006 moves, which sent stocks plunging.
A point lost on few is that China and India, which have more conservative regulations than the West, weathered the crisis. With the G-20 nations dragging their feet on crafting a safer global financial system, governments will feel pressed to do what they can to tame markets.
Unlike in 1996, Asia knows a tsunami of cash is coming its way and that it comes with risks. Carefully employed, capital controls could siphon some of the heat from Asia's latest hot-money challenge. Free-market champions are unlikely to concede that any curbs on money flows are appropriate. Smart people can, and will, debate this issue. It's inevitable, though, and the sooner markets learn to live with it, the better.
William Pesek is a Bloomberg News columnist.
The opinions expressed are his own
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : HDB offers another 1,050 new BTO flats
Business Times - 07 May 2010
HDB offers another 1,050 new BTO flats
By EMILYN YAP
THE Housing & Development Board (HDB) is offering 1,050 new flats in Jurong West and Yishun under the build-to-order (BTO) scheme.
This brings the number of new BTO units it has launched since January to 6,132, and more will be coming up.
Over at Jurong West Avenue 2, Boon Lay Grove will offer 450 flats. The estate is near Boon Lay Shopping Centre, and is some distance from the Boon Lay and Lakeside MRT stations.
There will be 300 four-room flats and 150 five-room flats. Home seekers can expect to pay $298,000 - $358,000 for a five roomer. According to HDB, the price of a comparable five-room resale flat in the area is $365,000 - $415,000.
The second BTO project at Yishun Avenue 11, Floral Spring @ Yishun, will have 600 flats comprising 96 studio apartments, 264 four-roomers and 240 five-roomers.
The estate is near a HDB neighbourhood centre and a park. It is some distance from the Khatib and Yishun MRT stations.
The price for a five-room flat at Floral Spring @ Yishun ranges from $289,000 - $332,000. A comparable five-room resale flat in the vicinity will go for $340,000 - $374,000.
Applications for the new flats will close on May 19. PropNex believes that demand for both projects will be strong, and each could be oversubscribed by at least six times.
This is despite the fact that both projects will be some distance from an MRT station. Residents may have to walk at least 10 to 15 minutes to reach the nearest one, PropNex pointed out.
HDB plans to launch at least 12,000 new BTO flats by September. It will be releasing some 2,400 BTO flats in Punggol and Sengkang next month, and some of these will be from the first public housing parcel along the Punggol waterway.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
HDB offers another 1,050 new BTO flats
By EMILYN YAP
THE Housing & Development Board (HDB) is offering 1,050 new flats in Jurong West and Yishun under the build-to-order (BTO) scheme.
This brings the number of new BTO units it has launched since January to 6,132, and more will be coming up.
Over at Jurong West Avenue 2, Boon Lay Grove will offer 450 flats. The estate is near Boon Lay Shopping Centre, and is some distance from the Boon Lay and Lakeside MRT stations.
There will be 300 four-room flats and 150 five-room flats. Home seekers can expect to pay $298,000 - $358,000 for a five roomer. According to HDB, the price of a comparable five-room resale flat in the area is $365,000 - $415,000.
The second BTO project at Yishun Avenue 11, Floral Spring @ Yishun, will have 600 flats comprising 96 studio apartments, 264 four-roomers and 240 five-roomers.
The estate is near a HDB neighbourhood centre and a park. It is some distance from the Khatib and Yishun MRT stations.
The price for a five-room flat at Floral Spring @ Yishun ranges from $289,000 - $332,000. A comparable five-room resale flat in the vicinity will go for $340,000 - $374,000.
Applications for the new flats will close on May 19. PropNex believes that demand for both projects will be strong, and each could be oversubscribed by at least six times.
This is despite the fact that both projects will be some distance from an MRT station. Residents may have to walk at least 10 to 15 minutes to reach the nearest one, PropNex pointed out.
HDB plans to launch at least 12,000 new BTO flats by September. It will be releasing some 2,400 BTO flats in Punggol and Sengkang next month, and some of these will be from the first public housing parcel along the Punggol waterway.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : New board to regulate property firms, agents
Business Times - 07 May 2010
New board to regulate property firms, agents
Council for Estate Agencies to raise standards, introduce new rules by year-end
By UMA SHANKARI
(SINGAPORE) The Ministry of National Development (MND) will set up a new statutory board to raise the professionalism of the real estate agency industry and better safeguard consumers' interests.
The proposed board - the Council for Estate Agencies (CEA) - will implement a new framework to regulate the industry.
MND will introduce a Bill in Parliament in the second half of this year to set up the board - which will take over the Inland Revenue Authority of Singapore's current role in licensing real estate agencies - and establish the new regulatory framework.
CEA is expected to be operational by year-end. BT has reported that it will be led by Chionh Chye Khye, executive director (designate) with MND.
The setting-up of CEA will lead to more stringent licensing requirements for real estate firms and the mandatory registration of all property agents. New regulations on the conduct of estate agency work and discipline and dispute resolution mechanisms will also be introduced.
Analysts highlighted several criteria proposed under the new regulatory framework - such as mandatory professional indemnity insurance, mandatory continuing professional development of six hours a year, and no dual representation - as positive steps that will help raise professionalism.
'The government is sending a clear signal that in the long haul, stringent entry requirements are needed to be a property agent,' said Tan Tee Khoon, chief executive of industry body Singapore Accredited Estate Agencies (SAEA). 'This will raise the image and professionalism of the industry.'
Institute of Estate Agents (IEA) president Mohamed Ismail said: 'This will definitely shake up the industry - an industry that has long had a reputation of not being regulated.'
The proposed framework comes as the number of complaints against property agents has been rising in recent years. A significant number of these complaints involved HDB transactions, MND said.
MND and other agencies started studying ways to strengthen the regulatory framework in mid-2009.
Under the new framework, real estate agencies will have to satisfy enhanced licensing conditions. Firms must put into place systems and processes to ensure the proper management of business and agents, be covered by professional indemnity insurance and must not be licensed moneylenders or employees of licensed moneylenders.
The principal licensee of an agency, as well as aspiring agents, must also not be an undischarged bankrupt, have a criminal record involving fraud or dishonesty or a track record of complaints or convictions.
'Agencies will also be expected to exercise effective supervision of their agents and take responsibility for their actions,' MND said. To enable agencies to do this effectively, agents will be allowed to contract with only one agency.
Potential agents will also have to meet a set of criteria to be registered - including having at least four GCE O Level passes or the equivalent, passing a new exam and undergoing compulsory continuing professional development.
CEA will be given legislative powers and tools to investigate and discipline agencies and agents that fail to comply with the new regulations and codes. Disciplinary action will include warnings, fines, suspension and even the debarment of agencies and agents. Alleged criminal offences such as fraud and cheating will continue to be referred to police.
Firms and agents will also be required to participate in a dedicated dispute resolution process covering both mediation and adjudication to address consumer complaints.
Last but not least, public education will be stepped up. Among various things, a public registry of real estate agencies and agents will be set up to provide a comprehensive listing of all licensed agencies and registered agents.
The public registry will include any records of disciplinary action taken over the preceding three years or any recognition or award received. Consumers can then check on the particular agency or agent they choose to engage.
'There will be more transparency in an agent's conduct,' said SAEA's Mr Tan. 'Right now, there is no way to do a reference check on any agent you might want to hire.'
But there are worries that there could some teething problems as the new regulations kick in. Auditing the over 20,000 agents in Singapore may present some difficulties, said PropNex corporate communications manager Adam Tan. IEA's Mr Ismail, who is also chief executive of PropNex, said the number of agents could fall within three years.
MND said arrangements will be made to help existing estate agencies and agents switch to the new licensing and registration framework.
For example, they will be exempt from the new minimum four GCE O Level passes or equivalent educational qualification criterion.
Those who have passed an industry examination - such as the Common Examination for House Agents, the Common Examination for Salespersons, the Certified Estate Agents Examination or the National Skills Recognition System - will also not be required to take a new exam. Those who have not passed any existing industry exam will be given one year after the start of the new exam to pass it, and will be given a provisional registration in the meantime.
MND said it will work out further details of the new framework over the next few months.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
New board to regulate property firms, agents
Council for Estate Agencies to raise standards, introduce new rules by year-end
By UMA SHANKARI
(SINGAPORE) The Ministry of National Development (MND) will set up a new statutory board to raise the professionalism of the real estate agency industry and better safeguard consumers' interests.
The proposed board - the Council for Estate Agencies (CEA) - will implement a new framework to regulate the industry.
MND will introduce a Bill in Parliament in the second half of this year to set up the board - which will take over the Inland Revenue Authority of Singapore's current role in licensing real estate agencies - and establish the new regulatory framework.
CEA is expected to be operational by year-end. BT has reported that it will be led by Chionh Chye Khye, executive director (designate) with MND.
The setting-up of CEA will lead to more stringent licensing requirements for real estate firms and the mandatory registration of all property agents. New regulations on the conduct of estate agency work and discipline and dispute resolution mechanisms will also be introduced.
Analysts highlighted several criteria proposed under the new regulatory framework - such as mandatory professional indemnity insurance, mandatory continuing professional development of six hours a year, and no dual representation - as positive steps that will help raise professionalism.
'The government is sending a clear signal that in the long haul, stringent entry requirements are needed to be a property agent,' said Tan Tee Khoon, chief executive of industry body Singapore Accredited Estate Agencies (SAEA). 'This will raise the image and professionalism of the industry.'
Institute of Estate Agents (IEA) president Mohamed Ismail said: 'This will definitely shake up the industry - an industry that has long had a reputation of not being regulated.'
The proposed framework comes as the number of complaints against property agents has been rising in recent years. A significant number of these complaints involved HDB transactions, MND said.
MND and other agencies started studying ways to strengthen the regulatory framework in mid-2009.
Under the new framework, real estate agencies will have to satisfy enhanced licensing conditions. Firms must put into place systems and processes to ensure the proper management of business and agents, be covered by professional indemnity insurance and must not be licensed moneylenders or employees of licensed moneylenders.
The principal licensee of an agency, as well as aspiring agents, must also not be an undischarged bankrupt, have a criminal record involving fraud or dishonesty or a track record of complaints or convictions.
'Agencies will also be expected to exercise effective supervision of their agents and take responsibility for their actions,' MND said. To enable agencies to do this effectively, agents will be allowed to contract with only one agency.
Potential agents will also have to meet a set of criteria to be registered - including having at least four GCE O Level passes or the equivalent, passing a new exam and undergoing compulsory continuing professional development.
CEA will be given legislative powers and tools to investigate and discipline agencies and agents that fail to comply with the new regulations and codes. Disciplinary action will include warnings, fines, suspension and even the debarment of agencies and agents. Alleged criminal offences such as fraud and cheating will continue to be referred to police.
Firms and agents will also be required to participate in a dedicated dispute resolution process covering both mediation and adjudication to address consumer complaints.
Last but not least, public education will be stepped up. Among various things, a public registry of real estate agencies and agents will be set up to provide a comprehensive listing of all licensed agencies and registered agents.
The public registry will include any records of disciplinary action taken over the preceding three years or any recognition or award received. Consumers can then check on the particular agency or agent they choose to engage.
'There will be more transparency in an agent's conduct,' said SAEA's Mr Tan. 'Right now, there is no way to do a reference check on any agent you might want to hire.'
But there are worries that there could some teething problems as the new regulations kick in. Auditing the over 20,000 agents in Singapore may present some difficulties, said PropNex corporate communications manager Adam Tan. IEA's Mr Ismail, who is also chief executive of PropNex, said the number of agents could fall within three years.
MND said arrangements will be made to help existing estate agencies and agents switch to the new licensing and registration framework.
For example, they will be exempt from the new minimum four GCE O Level passes or equivalent educational qualification criterion.
Those who have passed an industry examination - such as the Common Examination for House Agents, the Common Examination for Salespersons, the Certified Estate Agents Examination or the National Skills Recognition System - will also not be required to take a new exam. Those who have not passed any existing industry exam will be given one year after the start of the new exam to pass it, and will be given a provisional registration in the meantime.
MND said it will work out further details of the new framework over the next few months.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Developers tap cheap loans in HK
Business Times - 07 May 2010
PROPERTY MARKET
Developers tap cheap loans in HK
(SINGAPORE) China's biggest developers are borrowing record amounts in Hong Kong, taking advantage of lower interest rates to circumvent a lending crackdown at home. While banks demand at least 5.2 per cent in annual interest for three-to-five year money in China, the cost of credit in Hong Kong dollars has fallen to the least since November 2004, according to data compiled by Bloomberg.
China Overseas Land & Investment agreed to an HK$8 billion (S$1.4 billion) loan in February that pays 1.45 per cent at current market levels, the data show.
'For property developers to keep growing in what is an extremely fragmented and competitive market they have to go offshore' for funds, said Brayan Lai at Credit Agricole CIB in Hong Kong. 'It's one way to circumvent tight onshore credit.'
Syndicated borrowing by Chinese developers in Hong Kong dollars jumped to HK$37.3 billion this year, the most since Bloomberg began compiling the data in 1999, from HK$3 billion in the same period of 2009. Total lending in the city rose six-fold to HK$63 billion from HK$8.7 billion as Chinese banks' share of the market fell to 21 per cent from 29 per cent, while yuan-denominated lending to Chinese developers dropped by 25 per cent. -- Bloomberg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
PROPERTY MARKET
Developers tap cheap loans in HK
(SINGAPORE) China's biggest developers are borrowing record amounts in Hong Kong, taking advantage of lower interest rates to circumvent a lending crackdown at home. While banks demand at least 5.2 per cent in annual interest for three-to-five year money in China, the cost of credit in Hong Kong dollars has fallen to the least since November 2004, according to data compiled by Bloomberg.
China Overseas Land & Investment agreed to an HK$8 billion (S$1.4 billion) loan in February that pays 1.45 per cent at current market levels, the data show.
'For property developers to keep growing in what is an extremely fragmented and competitive market they have to go offshore' for funds, said Brayan Lai at Credit Agricole CIB in Hong Kong. 'It's one way to circumvent tight onshore credit.'
Syndicated borrowing by Chinese developers in Hong Kong dollars jumped to HK$37.3 billion this year, the most since Bloomberg began compiling the data in 1999, from HK$3 billion in the same period of 2009. Total lending in the city rose six-fold to HK$63 billion from HK$8.7 billion as Chinese banks' share of the market fell to 21 per cent from 29 per cent, while yuan-denominated lending to Chinese developers dropped by 25 per cent. -- Bloomberg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Fragrance Properties' $16m bid tops Tampines land tender
Business Times - 07 May 2010
Fragrance Properties' $16m bid tops Tampines land tender
$405psf ppr offer is among 16 bids for plot near Kovan MRT Station
By KALPANA RASHIWALA
FRAGRANCE Properties has placed the highest bid of $16.25 million or about $405 per square foot of potential gross floor area at a state tender yesterday for a private residential plot along Tampines Road near the junction with Hougang Ave 3.
The tender for the 99-year leasehold plot drew a total of 16 bids.
The 28,656 sq ft plot, which is near landed homes, is about 700 metres from Kovan MRT Station. It can be developed into apartments or landed homes. Fragrance Group boss Koh Wee Meng told BT that the group's preference is to develop apartments on the site. 'Most probably the site might be able to accommodate 50 apartments, with a swimming pool and other facilities. We intend to launch the project towards the end of the year,' he added.
Market watchers reckon that for a developer to squeeze in 50 apartments, the average unit size would be about 780 sq ft.
Credo Real Estate managing director Karamjit Singh estimates Fragrance's breakeven cost could be in the low-$700 psf range.
Another property consultant observed that apartments and condos in the location have changed hands at $754-1,227 psf this year.
Fragrance has been on a land buying spree for the past year or so. Last month, it clinched Culford Gardens in Siglap through a collective sale for $39 million or $632 psf per plot ratio (psf ppr). Its acquisitions last year included Premier Centre, an office block at Beach Road, development land at Telok Kurau, a site in Changi Road and a row of shophouses at Pasir Panjang.
Those who bid at yesterday's state tender at Tampines Road comprised mostly smaller developers, construction companies and other contractors. However, there was at least one notable exception.
OPH Marymount Limited - a subsidiary of listed Orchard Parade Holdings, which in turn is part of the Far East Organization stable - placed the third highest bid of almost $15 million or $374 psf ppr.
The second highest bid, of $15.5 million or $386 psf ppr, came from Whye Wah Group, which is involved in the furniture-making and upholstery business as well as building construction.
Other bidders include Ningbo Construction Group (S) and JBE Holdings (whose directors include boutique developer Patrick Lam Kong Yin).
The lowest bid, from Kim Hoe Corporation, was $7.5 million or about $187 psf ppr. This was about 15 per cent above the minimum offer price of $6.5 million or $162 psf ppr indicated by the state for the site, which was triggered from the reserve list.
'Government land tenders have been attracting many more bids than private tenders due to low reserve prices and transparency of the reserve price, at least for reserve list sites, where the minimum price is made public. This has been enticing both opportunistic bidders as well as serious developers,' says Mr Singh.
The spread of bids reflects developers' different readings of the market and landbank situations, he added.
Earlier this week, another state tender for a 99-year condo site next to Lakeside MRT Station and near Jurong Lake drew 14 bids, ranging from CapitaLand's $273 psf ppr to Keppel Land's $499 psf ppr.
That site was awarded yesterday to KepLand, which said it plans to develop a condo with about 550 units of sizes ranging from 500 sq ft to 1,400 sq ft on the site.
The units will be in one-bedroom to four-bedroom configurations as well as penthouses. 'Presently in the design and development stage, the project is expected to be launch ready by end-2010 and completed in end-2013,' KepLand said in its release.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Mr Koh: Most probably the site might be able to accommodate 50 apartments, with a swimming pool and other facilities
Fragrance Properties' $16m bid tops Tampines land tender
$405psf ppr offer is among 16 bids for plot near Kovan MRT Station
By KALPANA RASHIWALA
FRAGRANCE Properties has placed the highest bid of $16.25 million or about $405 per square foot of potential gross floor area at a state tender yesterday for a private residential plot along Tampines Road near the junction with Hougang Ave 3.
The tender for the 99-year leasehold plot drew a total of 16 bids.
The 28,656 sq ft plot, which is near landed homes, is about 700 metres from Kovan MRT Station. It can be developed into apartments or landed homes. Fragrance Group boss Koh Wee Meng told BT that the group's preference is to develop apartments on the site. 'Most probably the site might be able to accommodate 50 apartments, with a swimming pool and other facilities. We intend to launch the project towards the end of the year,' he added.
Market watchers reckon that for a developer to squeeze in 50 apartments, the average unit size would be about 780 sq ft.
Credo Real Estate managing director Karamjit Singh estimates Fragrance's breakeven cost could be in the low-$700 psf range.
Another property consultant observed that apartments and condos in the location have changed hands at $754-1,227 psf this year.
Fragrance has been on a land buying spree for the past year or so. Last month, it clinched Culford Gardens in Siglap through a collective sale for $39 million or $632 psf per plot ratio (psf ppr). Its acquisitions last year included Premier Centre, an office block at Beach Road, development land at Telok Kurau, a site in Changi Road and a row of shophouses at Pasir Panjang.
Those who bid at yesterday's state tender at Tampines Road comprised mostly smaller developers, construction companies and other contractors. However, there was at least one notable exception.
OPH Marymount Limited - a subsidiary of listed Orchard Parade Holdings, which in turn is part of the Far East Organization stable - placed the third highest bid of almost $15 million or $374 psf ppr.
The second highest bid, of $15.5 million or $386 psf ppr, came from Whye Wah Group, which is involved in the furniture-making and upholstery business as well as building construction.
Other bidders include Ningbo Construction Group (S) and JBE Holdings (whose directors include boutique developer Patrick Lam Kong Yin).
The lowest bid, from Kim Hoe Corporation, was $7.5 million or about $187 psf ppr. This was about 15 per cent above the minimum offer price of $6.5 million or $162 psf ppr indicated by the state for the site, which was triggered from the reserve list.
'Government land tenders have been attracting many more bids than private tenders due to low reserve prices and transparency of the reserve price, at least for reserve list sites, where the minimum price is made public. This has been enticing both opportunistic bidders as well as serious developers,' says Mr Singh.
The spread of bids reflects developers' different readings of the market and landbank situations, he added.
Earlier this week, another state tender for a 99-year condo site next to Lakeside MRT Station and near Jurong Lake drew 14 bids, ranging from CapitaLand's $273 psf ppr to Keppel Land's $499 psf ppr.
That site was awarded yesterday to KepLand, which said it plans to develop a condo with about 550 units of sizes ranging from 500 sq ft to 1,400 sq ft on the site.
The units will be in one-bedroom to four-bedroom configurations as well as penthouses. 'Presently in the design and development stage, the project is expected to be launch ready by end-2010 and completed in end-2013,' KepLand said in its release.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Mr Koh: Most probably the site might be able to accommodate 50 apartments, with a swimming pool and other facilities
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