May 10, 2010
Do more to prevent property bubble
I REFER to last Friday's article, 'Most flats sold with low cash upfront: HDB'. I believe this trend is not healthy as it indicates that valuation figures for HDB flats have finally caught up with the recent years' soaring HDB resale flat prices.
From these soaring prices, no one would have believed that we went through and are still recovering from an economic downturn. A three-room HDB flat in Tanjong Pagar Plaza was going for $280,000 in 2008, but in just two years, it is now going for more than $400,000.
The younger generation of Singaporeans and even their parents are feeling that an HDB resale flat is no longer within their means.
Generally, new job entrants who are thinking of starting a family would rather buy a resale flat in mature estates than a new flat in the outskirts. This is to cut down on the time taken for their daily commute to work, particularly if they have young children that they need to take to grandparents' homes or childcare centres each day.
I notice that the Ministry of National Development and the Monetary Authority of Singapore have been taking sporadic measures to curb the sharp increases in property prices, but the impact is not really visible. I understand that the Government has to balance the needs of different groups - investors who wish for property prices to rise, and home buyers who are averse to soaring prices.
The Government should take more comprehensive preventive measures to curb a property bubble, rather than resort to remedial actions when a bubble forms or bursts.
Recent strong measures taken by the Chinese government to curb undue property speculation have sent a strong signal to potential speculators that the Chinese government means business. These measures have also done much to reassure the public. I wonder if our Government has taken sufficient measures to do the same.
Ong Boot Lian (Ms)
Monday, May 10, 2010
ST : Connery's property in probe on money-laundering
May 10, 2010
Connery's property in probe on money-laundering
Madrid - Property once owned by Oscar-winning film star Sean Connery in the south of Spain is at the centre of a money-laundering investigation.
Twenty-eight people are under judicial investigation in the case, the spokesman for the Superior Court of Justice of Andalucia said. She did not say if the 79-year-old former James Bond star was among them.
The money-laundering and malfeasance case - prompted by a complaint from a local resident - relates to 'land which once belonged to him and which was reclassified' under conditions deemed suspicious by investigators, she said.
'The investigation is covered by judicial secrecy and we do not reveal the names of those under judicial investigation, much less when they have not yet been summoned by the court,' the spokesman added.
Police raided the law offices of Diaz-Bastien and Truan in the jetset resort of Marbella and in Madrid as part of the investigation, a police spokesman said without giving further details.
Spanish media reported that the law firm represented the Hollywood actor.
Spanish news network Cadena Ser and other media outlets say Connery and his wife Micheline Roquebrune will be called to a court over the case.
The star had bought the seaside villa named Malibu just east of Marbella in the early 1970s, and put it up for sale in 1998 for US$9 million, the Madrid newspaper El Pais reported.
The villa was subsequently knocked down and afour-storey luxury apartment complex was built on the land where it once stood.
Agence France-Presse
Actor Sean Connery and his wife, Micheline (both above), will be called to a court over the case, reported Spanish news media. -- PHOTO: AP
Connery's property in probe on money-laundering
Madrid - Property once owned by Oscar-winning film star Sean Connery in the south of Spain is at the centre of a money-laundering investigation.
Twenty-eight people are under judicial investigation in the case, the spokesman for the Superior Court of Justice of Andalucia said. She did not say if the 79-year-old former James Bond star was among them.
The money-laundering and malfeasance case - prompted by a complaint from a local resident - relates to 'land which once belonged to him and which was reclassified' under conditions deemed suspicious by investigators, she said.
'The investigation is covered by judicial secrecy and we do not reveal the names of those under judicial investigation, much less when they have not yet been summoned by the court,' the spokesman added.
Police raided the law offices of Diaz-Bastien and Truan in the jetset resort of Marbella and in Madrid as part of the investigation, a police spokesman said without giving further details.
Spanish media reported that the law firm represented the Hollywood actor.
Spanish news network Cadena Ser and other media outlets say Connery and his wife Micheline Roquebrune will be called to a court over the case.
The star had bought the seaside villa named Malibu just east of Marbella in the early 1970s, and put it up for sale in 1998 for US$9 million, the Madrid newspaper El Pais reported.
The villa was subsequently knocked down and afour-storey luxury apartment complex was built on the land where it once stood.
Agence France-Presse
Actor Sean Connery and his wife, Micheline (both above), will be called to a court over the case, reported Spanish news media. -- PHOTO: AP
ST : Ornamental fish farms may get tenancy reprieve
May 10, 2010
Ornamental fish farms may get tenancy reprieve
Exporters fear lack of time to set up at new sites when leases end
By Jessica Lim
FISH exporters in Jalan Kayu worried about their leases expiring at the year end may well get a reprieve.
The Singapore Land Authority (SLA) told The Straits Times that it is working closely with relevant agencies to extend the tenancies. The 17 affected exporters account for about 80 per cent of Singapore's ornamental fish export industry, which, as a world leader, is worth around $100 million a year.
The land these exporters now occupy is being taken back by the Government for redevelopment. The exporters are worried they may have to wind up their businesses if they cannot be relocated elsewhere by Dec 31, when their leases expire. The SLA has released four plots of land for tender as alternative sites for the fish farms, but the land area is not enough to take in all the affected farms.
Already, 14 of the 17 Jalan Kayu farms have submitted 19 bids for these four plots, with some farms submitting more than one bid; the remaining three affected farms are thinking of shutting down.
The SLA has designated another 10 sites in Yishun for the fish exporters, but these will go up for tender only at the end of the month.
Those in the business are worried on two counts: One is that the entry of new bidders will narrow their chances of securing a site. The other worry - a bigger one - is the lack of time in which to get their new farms up and running by the year end.
For now, it is still not known when the tenders will be awarded. The new plots are little more than empty tracts of land now and it will take at least a year to put in the necessary infrastructure such as fish tanks and warehouses, said Mr Fong Ching Loon, 72, who owns Pisces Tropica in Seletar West Farmway 1.
He welcomes the assurance from the SLA, which has said: 'To ensure a smooth transition between Jalan Kayu and the new site, SLA will work closely with the relevant agencies to extend the tenancies in Jalan Kayu.'
Mr Fong, who also chairs the Singapore Aquarium Fish Exporters' Association, said the association's 44 members hope something can be done - and soon.
'If not, we will be forced to stop business for a while, and we will lose customers,' said the exporter, who is nonetheless hedging his chances by submitting bids for two of the four new plots.
The uncertainty has irked some exporters, who have made Singapore the ornamental fish capital of the world.
Ms Pauline Teo, 46, the third-generation owner of the oldest fish-exporting company here, Teo Way Yong & Sons, said her company has moved four times since the 1920s: 'Each time we move, it costs money. We're always worried we'll be told to move.'
She and Mr Fong noted that the business is given more support overseas.
Mr Fong said he learnt from an ornamental fish convention in China that a tech park there has been kitted up with a communal filter system that cleans water and pipes oxygen to the tanks.
The Agri-Food and Veterinary Authority of Singapore (AVA), which regulates fish exporters here, said it will continue working with them to see what more can be done for the industry.
Dr Ling Kai Huat, its senior ornamental fish specialist, said the tech park Mr Fong mentioned was a commercially driven venture, and that if the exporters here are keen on the system, they can band together to propose and develop it.
'AVA will certainly do its best to support and facilitate such a venture if it is demanded by the local industry.'
limjess@sph.com.sg
Ornamental fish farms may get tenancy reprieve
Exporters fear lack of time to set up at new sites when leases end
By Jessica Lim
FISH exporters in Jalan Kayu worried about their leases expiring at the year end may well get a reprieve.
The Singapore Land Authority (SLA) told The Straits Times that it is working closely with relevant agencies to extend the tenancies. The 17 affected exporters account for about 80 per cent of Singapore's ornamental fish export industry, which, as a world leader, is worth around $100 million a year.
The land these exporters now occupy is being taken back by the Government for redevelopment. The exporters are worried they may have to wind up their businesses if they cannot be relocated elsewhere by Dec 31, when their leases expire. The SLA has released four plots of land for tender as alternative sites for the fish farms, but the land area is not enough to take in all the affected farms.
Already, 14 of the 17 Jalan Kayu farms have submitted 19 bids for these four plots, with some farms submitting more than one bid; the remaining three affected farms are thinking of shutting down.
The SLA has designated another 10 sites in Yishun for the fish exporters, but these will go up for tender only at the end of the month.
Those in the business are worried on two counts: One is that the entry of new bidders will narrow their chances of securing a site. The other worry - a bigger one - is the lack of time in which to get their new farms up and running by the year end.
For now, it is still not known when the tenders will be awarded. The new plots are little more than empty tracts of land now and it will take at least a year to put in the necessary infrastructure such as fish tanks and warehouses, said Mr Fong Ching Loon, 72, who owns Pisces Tropica in Seletar West Farmway 1.
He welcomes the assurance from the SLA, which has said: 'To ensure a smooth transition between Jalan Kayu and the new site, SLA will work closely with the relevant agencies to extend the tenancies in Jalan Kayu.'
Mr Fong, who also chairs the Singapore Aquarium Fish Exporters' Association, said the association's 44 members hope something can be done - and soon.
'If not, we will be forced to stop business for a while, and we will lose customers,' said the exporter, who is nonetheless hedging his chances by submitting bids for two of the four new plots.
The uncertainty has irked some exporters, who have made Singapore the ornamental fish capital of the world.
Ms Pauline Teo, 46, the third-generation owner of the oldest fish-exporting company here, Teo Way Yong & Sons, said her company has moved four times since the 1920s: 'Each time we move, it costs money. We're always worried we'll be told to move.'
She and Mr Fong noted that the business is given more support overseas.
Mr Fong said he learnt from an ornamental fish convention in China that a tech park there has been kitted up with a communal filter system that cleans water and pipes oxygen to the tanks.
The Agri-Food and Veterinary Authority of Singapore (AVA), which regulates fish exporters here, said it will continue working with them to see what more can be done for the industry.
Dr Ling Kai Huat, its senior ornamental fish specialist, said the tech park Mr Fong mentioned was a commercially driven venture, and that if the exporters here are keen on the system, they can band together to propose and develop it.
'AVA will certainly do its best to support and facilitate such a venture if it is demanded by the local industry.'
limjess@sph.com.sg
ST : Many buildings still not elderly-friendly
May 10, 2010
Many buildings still not elderly-friendly
Only $2.2m of $40m fund tapped by building owners to make premises accessible to less able-bodied, handicapped
By Carolyn Quek
SINCE its launch three years ago, only $2.2 million out of a $40 million fund has been tapped by building owners to make older premises more suitable for the elderly and wheelchair-bound to navigate.
This equates to the upgrading of 52 buildings constructed before 1990, when the code requiring owners to make sure their buildings are accessible to the disabled came into effect.
The Building and Construction Authority (BCA) said nine more applications are pending. It does not know how many buildings were constructed before 1990, but its own target is for at least 300 buildings to be upgraded by 2014.
From checks on more than 2,000 buildings by the BCA since 2007, there are still 600 premises that do not accommodate those who are less able-bodied.
To assist these people, the BCA has created a database of buildings that are suitable for the physically disabled and elderly. Currently, about 1,400 make the grade with at least ramps and wheelchair-accessible toilets.
Buildings like Liat Towers, Tong Building and Midpoint Orchard in Orchard Road are still not accessible to the wheelchair-bound. All three, for example, still have only steps as a means to enter the buildings.
A BCA spokesman believes owners are procrastinating because upgrading their premises might mean stopping operations, albeit temporarily.
'Businesses are concerned about disrupting their operations and overcoming the physical constraints inherent in their premises that impede the construction of accessible features such as ramps or stairlifts,' he said.
'Furthermore, it is often more difficult for buildings with multiple owners to arrive at a unanimous decision to upgrade their premises.'
The fund will pay for the building owners to install basic features that will allow accessibility from the entrance to and within the first floor, and an accessible toilet on the same floor. Building owners The Straits Times spoke to who are aware of the fund said they have not applied for help due to various reasons.
Ms Lydia Tjhia, director of Bonvests Holdings, which owns Liat Towers, said it would have to seek its tenants' consent and do further studies to see how best to tap into the fund. 'While we are mindful of the need to improve access for the disabled, the management also needs to consider the tenants' rights... and the potential business disruption as a result of the renovation.'
Mr Steven Lee, chairman of Midpoint Orchard's management committee, cited 'site constraints'. For instance, he said, the steps to the entrance were too steep to build a ramp according to BCA's stipulations.
The Disabled People's Association president Leo Chen Ian wants businesses to recognise that Singapore's population is greying, which presents a whole set of problems. 'It makes business sense to make your buildings more elderly- and disabled- friendly now,' he said.
The Hong San See Temple in Mohamed Sultan Road installed a platform stairlift in January after receiving $200,000 from the fund. It saves the older devotees from having to walk up the 58 steps to reach the temple. Said temple chairman Tan Aik Hock, 41: 'A lot of old people complained that climbing up the steps was very tough for them.'
Now, Mr Tan said, people complain that the lift takes too long to get to the top. It takes about three minutes.
'But it's better than nothing,' he added.
To find out which buildings in Singapore have accessible features, visit: www.friendlybuildings.sg
carolynq@sph.com.sg
Many buildings still not elderly-friendly
Only $2.2m of $40m fund tapped by building owners to make premises accessible to less able-bodied, handicapped
By Carolyn Quek
SINCE its launch three years ago, only $2.2 million out of a $40 million fund has been tapped by building owners to make older premises more suitable for the elderly and wheelchair-bound to navigate.
This equates to the upgrading of 52 buildings constructed before 1990, when the code requiring owners to make sure their buildings are accessible to the disabled came into effect.
The Building and Construction Authority (BCA) said nine more applications are pending. It does not know how many buildings were constructed before 1990, but its own target is for at least 300 buildings to be upgraded by 2014.
From checks on more than 2,000 buildings by the BCA since 2007, there are still 600 premises that do not accommodate those who are less able-bodied.
To assist these people, the BCA has created a database of buildings that are suitable for the physically disabled and elderly. Currently, about 1,400 make the grade with at least ramps and wheelchair-accessible toilets.
Buildings like Liat Towers, Tong Building and Midpoint Orchard in Orchard Road are still not accessible to the wheelchair-bound. All three, for example, still have only steps as a means to enter the buildings.
A BCA spokesman believes owners are procrastinating because upgrading their premises might mean stopping operations, albeit temporarily.
'Businesses are concerned about disrupting their operations and overcoming the physical constraints inherent in their premises that impede the construction of accessible features such as ramps or stairlifts,' he said.
'Furthermore, it is often more difficult for buildings with multiple owners to arrive at a unanimous decision to upgrade their premises.'
The fund will pay for the building owners to install basic features that will allow accessibility from the entrance to and within the first floor, and an accessible toilet on the same floor. Building owners The Straits Times spoke to who are aware of the fund said they have not applied for help due to various reasons.
Ms Lydia Tjhia, director of Bonvests Holdings, which owns Liat Towers, said it would have to seek its tenants' consent and do further studies to see how best to tap into the fund. 'While we are mindful of the need to improve access for the disabled, the management also needs to consider the tenants' rights... and the potential business disruption as a result of the renovation.'
Mr Steven Lee, chairman of Midpoint Orchard's management committee, cited 'site constraints'. For instance, he said, the steps to the entrance were too steep to build a ramp according to BCA's stipulations.
The Disabled People's Association president Leo Chen Ian wants businesses to recognise that Singapore's population is greying, which presents a whole set of problems. 'It makes business sense to make your buildings more elderly- and disabled- friendly now,' he said.
The Hong San See Temple in Mohamed Sultan Road installed a platform stairlift in January after receiving $200,000 from the fund. It saves the older devotees from having to walk up the 58 steps to reach the temple. Said temple chairman Tan Aik Hock, 41: 'A lot of old people complained that climbing up the steps was very tough for them.'
Now, Mr Tan said, people complain that the lift takes too long to get to the top. It takes about three minutes.
'But it's better than nothing,' he added.
To find out which buildings in Singapore have accessible features, visit: www.friendlybuildings.sg
carolynq@sph.com.sg
ST : Building heritage for the young
May 10, 2010
SOAPBOX
Building heritage for the young
Our national monuments are tools to teach the next generation our history
By Eisen Teo
OUR national monuments are symbols of our shared heritage as a nation.
But to ensure their preservation, we must demonstrate their relevance to the next generation.
And that relevance seems to be fading away, fast.
A recent Straits Times report said national monuments that no longer ring a bell with the average Singaporean have fallen into disarray, or are closed to the public.
There is the Sun Yat Sen Nanyang Memorial Hall, which gets only 450 visitors a month, and Memories at Old Ford Factory, which has 800 a month.
Other sites like the Nagore Dargah Shrine in Telok Ayer Street remain closed to the public, years after their architectural makeovers.
Even an icon like Lau Pa Sat has lost its historical significance, lamented a recent Straits Times Forum letter, and is now known only as a popular hawker centre.
Does it matter anymore that the Sun Yat Sen Memorial Hall is a standing reminder of how politics in mainland China once played out in Singapore, for example, or that the Nagore Dargah Shrine symbolises the efforts of Chulia Indians to spread Islam around South- east Asia?
Yes. For that is the stuff of social studies and history textbooks.
Yet many students dread plodding through thick textbooks chock-full of facts and dates.
How about taking them out of the classroom and into each and every one of our 61 national monuments?
In the whitewashed environment of the classroom, history rarely comes alive - it is too much of a stretch of the imagination to re-enact historical events and figures.
But walk through a space imbued with historical meaning, and the importance of the past leaps out from the walls. Who once called this place his abode, office or place of worship? What decisions or rituals, victories or disap- pointments unfolded within these corridors? What broader significance does this building have with regard to our history?
I am not suggesting we organise more one-off school tours, where students book in, peer and poke at dusty artefacts, and scoot off.
Stage lessons, presentations and re- enactments within these hallowed spaces. Task students with 'selling' the value of these buildings to the public as 'ambassadors'.
Only then can the significance of our national monuments - and our shared history - dawn on many a bored history student, and revitalise the cobwebbed monoliths that are supposed to be our heritage.
To rephrase a popular philosophical question: If an unknown building of historical value is demolished, did it ever exist? My answer: No.
Using these buildings as teaching tools ensures their unique stories are passed on to the next generation.
And who knows: With the vibrancy and creativity of youth, their stories might even be told better.
eisenteo@sph.com.sg
SOAPBOX
Building heritage for the young
Our national monuments are tools to teach the next generation our history
By Eisen Teo
OUR national monuments are symbols of our shared heritage as a nation.
But to ensure their preservation, we must demonstrate their relevance to the next generation.
And that relevance seems to be fading away, fast.
A recent Straits Times report said national monuments that no longer ring a bell with the average Singaporean have fallen into disarray, or are closed to the public.
There is the Sun Yat Sen Nanyang Memorial Hall, which gets only 450 visitors a month, and Memories at Old Ford Factory, which has 800 a month.
Other sites like the Nagore Dargah Shrine in Telok Ayer Street remain closed to the public, years after their architectural makeovers.
Even an icon like Lau Pa Sat has lost its historical significance, lamented a recent Straits Times Forum letter, and is now known only as a popular hawker centre.
Does it matter anymore that the Sun Yat Sen Memorial Hall is a standing reminder of how politics in mainland China once played out in Singapore, for example, or that the Nagore Dargah Shrine symbolises the efforts of Chulia Indians to spread Islam around South- east Asia?
Yes. For that is the stuff of social studies and history textbooks.
Yet many students dread plodding through thick textbooks chock-full of facts and dates.
How about taking them out of the classroom and into each and every one of our 61 national monuments?
In the whitewashed environment of the classroom, history rarely comes alive - it is too much of a stretch of the imagination to re-enact historical events and figures.
But walk through a space imbued with historical meaning, and the importance of the past leaps out from the walls. Who once called this place his abode, office or place of worship? What decisions or rituals, victories or disap- pointments unfolded within these corridors? What broader significance does this building have with regard to our history?
I am not suggesting we organise more one-off school tours, where students book in, peer and poke at dusty artefacts, and scoot off.
Stage lessons, presentations and re- enactments within these hallowed spaces. Task students with 'selling' the value of these buildings to the public as 'ambassadors'.
Only then can the significance of our national monuments - and our shared history - dawn on many a bored history student, and revitalise the cobwebbed monoliths that are supposed to be our heritage.
To rephrase a popular philosophical question: If an unknown building of historical value is demolished, did it ever exist? My answer: No.
Using these buildings as teaching tools ensures their unique stories are passed on to the next generation.
And who knows: With the vibrancy and creativity of youth, their stories might even be told better.
eisenteo@sph.com.sg
ST : A peek into the business of quick cash
May 9, 2010
special report: moneylending outfits
A peek into the business of quick cash
Spike in number of moneylenders in the last two years; the criteria are straightforward but the job has its risks
By Irene Tham , Shuli Sudderuddin , Sumita Sreedharan
Mr G. Chua became a moneylender last year because he felt it 'complemented' his job as a real estate agent.
But he will end his lending business soon because of new rules that prohibit licensed moneylenders from working as property agents and vice versa.
The rules, announced last week and to be introduced in the second half of this year, aim to curb errant estate agents and protect home buyers and sellers.
'I have to give one up,' said Mr Chua, 43, last Friday.
'My focus now is to collect the money owed to me, then I'll 'close shop',' he said, adding that he has stopped accepting new clients.
He said he started the business 'as a value-added service' to home sellers as many needed money urgently.
He entered the industry with about $100,000 capital which he borrowed from a bank, friends and from his own savings.
He operates his moneylending business from a desk in a pleasantly decorated office in a HDB rental office in Toa Payoh Central.
He declined to name the property agency he is affiliated to.
He shares the 35 sq m space with four others. Like him, they are one-man moneylending 'companies' which basically comprise the lender working from a table with a computer and a phone.
One of them is also a property agent cum moneylender. Mr E. Chua, 42, said he resigned from his property agent job last Friday to focus on moneylending.
Moneylenders like them have been under the spotlight following reports of how cash-strapped HDB flat sellers may be exploited.
For instance, an agent who is giving a loan to a home seller may delay closing the property transaction to make the seller pay more in loan interests. The agent may also close the transaction at a lower price so that the seller takes larger loans to raise the money he needs.
To rein in such rogue behaviour, National Development Minister Mah Bow Tan announced in Parliament that new rules were being drafted.
They include a new statutory board - the Council for Estate Agencies - to regulate the industry and impose disciplinary measures like fines and debarment of errant agents.
Industry players say that the number of moneylenders who double as estate agents is small.
Mr Steven Tan, executive director of OrangeTee's residential division, said: 'I do not know anyone who does double duty. Real estate firms do not encourage this. Moneylenders do not usually take up an estate agent job once we make our stand clear.'
What is clear, though, is that the number of licensed moneylenders has shot up in the last two years, with many specialising in 'housing loans'.
There are currently 260 licensed moneylenders, up from 173 in 2008 and 169 in 2007.
In 2008, the Moneylending Act was amended to remove the cap on maximum interest rates that lenders can charge.
Previously, licensed moneylenders could only impose a maximum interest rate of 18 per cent for unsecured loans, and 12 per cent for secured loans.
Restrictions on advertising, methods of loan disbursements and collection of payments were also eased.
Moneylenders have been taking up advertisements in the media. Their ads promise quick cash for personal loans and for those selling their flats. A typical ad reads: 'Collect cash now!!! 100% approval'.
The Sunday Times visited 30 moneylenders last week and found that 20 were one-man outfits.
Some lenders were tough-looking men in their 40s decked in gold chains and gold bracelets.
Others are like Mr Chua, who look like fashionable office workers in their patterned long-sleeved shirts and tailored pants.
Some run their operations out of bare offices equipped with only tables, chairs, telephones and laptops, like those in the shabby Jalan Besar Plaza and old HDB retail shops in French Road near Lavender MRT.
Others are in central locations like Peninsula Plaza, Hill Street Centre and Toa Payoh Central, equipped with fax machines and manned by receptionists.
More often than not, several moneylenders share one office space.
In a unit in French Road, for example, four men wore similar black polo shirts and pants and sat behind desks answering phones. But they were all from different companies.
Some lenders specialise in personal loans while others provide housing loans. Some provide both.
Those targeting the housing market say their clients are HDB flat sellers who need cash ahead of their unit being sold.
Typically, flat sellers apply for loans ranging from $5,000 to $100,000. The loan amount is usually less than the amount they will get for their property.
Lenders charge interest rates ranging from 4 per cent to 20 per cent, depending on the loan amount, repayment period and the borrower's income.
They check to ensure that the borrower's house is indeed on the market and ask questions like: 'Do you have a housing agent?' or 'Have you made your first appointment with the HDB?'
If the answer is no, the lender will ask the borrower to get his house marketed first before trying to get a loan.
The borrower can get the money as quickly as 30 minutes in the form of cash or a cash cheque.
Typically, moneylenders file a caveat on the flat, which ensures they get a first bite of the sale proceeds.
The criteria for becoming a moneylender are fairly straightforward.
For example, the applicant and his employees must be above the age of 21, reside in Singapore and be 'of good character and fit and proper persons to carry on the moneylending business'.
He must be familiar with the provisions of the Moneylenders Act and operate from a place that is 'suitable for the conduct of the moneylending business'.
He must also place a security deposit of $20,000 with the Accountant-General.
Moneylenders said the job carries risks and they have been cheated many times by customers who default on payment.
Sometimes, borrowers pretend to be interested in selling their home but the sale never goes through, they said.
Mr G. Chua said that despite being careful, he has chalked up about $100,000 in unpaid loans and there is nothing he can do about it.
'Our hard-earned money is just lost like that, and apart from turning to the police, there is nothing we can do,' he said.
'After all, we're legal lenders, so we can't go around splashing paint on their doors.'
itham@sph.com.sg
shulis@sph.com.sg
sumitas@sph.com.sg
--------------------------------------------------------------------------------
Loan amount and interest rates
Besides licensed moneylenders, borrowers turn to banks, trade unions and illegal loan sharks. Here is how much they generally charge.
BANKS
· Effective interest rates for personal loan: 12 per cent to 25 per cent per annum depending on income and loan tenure
· Interest rates for housing loan: from 1.6 per cent per annum depending on loan tenure and type of loan
· Minimum income: $20,000 per annum
· Maximum amount that can be borrowed: up to four times the borrower's monthly income
UNIONS
· Interest rates for personal loans: 4.25 per cent to 6 per cent per annum
Minimum income: no minimum income but must be member of union
· Maximum amount that can be borrowed: two to eight times borrower's monthly salary or up to the value of the pledged collateral
LEGAL MONEYLENDERS
· Interest rates for personal loans: 3.33 per cent per week to 20 per cent per month
· Interest rate for housing loans: 4 per cent to 20 per cent per month, depending on the loan amount, repayment period and borrower's income
· Minimum income: $1,000 a month
· Maximum amount that can be borrowed: up to four times the borrower's monthly income
ILLEGAL MONEYLENDERS or LOAN SHARKS
· Interest rates: Usually a flat 20 per cent per month, regardless of the type of loan
· Minimum income: None. You need a guarantor who will pay up if you default.
Maximum amount that can be borrowed: Depends on how much you are trusted. Amounts start as small as $500 and can go up to thousands of dollars.
special report: moneylending outfits
A peek into the business of quick cash
Spike in number of moneylenders in the last two years; the criteria are straightforward but the job has its risks
By Irene Tham , Shuli Sudderuddin , Sumita Sreedharan
Mr G. Chua became a moneylender last year because he felt it 'complemented' his job as a real estate agent.
But he will end his lending business soon because of new rules that prohibit licensed moneylenders from working as property agents and vice versa.
The rules, announced last week and to be introduced in the second half of this year, aim to curb errant estate agents and protect home buyers and sellers.
'I have to give one up,' said Mr Chua, 43, last Friday.
'My focus now is to collect the money owed to me, then I'll 'close shop',' he said, adding that he has stopped accepting new clients.
He said he started the business 'as a value-added service' to home sellers as many needed money urgently.
He entered the industry with about $100,000 capital which he borrowed from a bank, friends and from his own savings.
He operates his moneylending business from a desk in a pleasantly decorated office in a HDB rental office in Toa Payoh Central.
He declined to name the property agency he is affiliated to.
He shares the 35 sq m space with four others. Like him, they are one-man moneylending 'companies' which basically comprise the lender working from a table with a computer and a phone.
One of them is also a property agent cum moneylender. Mr E. Chua, 42, said he resigned from his property agent job last Friday to focus on moneylending.
Moneylenders like them have been under the spotlight following reports of how cash-strapped HDB flat sellers may be exploited.
For instance, an agent who is giving a loan to a home seller may delay closing the property transaction to make the seller pay more in loan interests. The agent may also close the transaction at a lower price so that the seller takes larger loans to raise the money he needs.
To rein in such rogue behaviour, National Development Minister Mah Bow Tan announced in Parliament that new rules were being drafted.
They include a new statutory board - the Council for Estate Agencies - to regulate the industry and impose disciplinary measures like fines and debarment of errant agents.
Industry players say that the number of moneylenders who double as estate agents is small.
Mr Steven Tan, executive director of OrangeTee's residential division, said: 'I do not know anyone who does double duty. Real estate firms do not encourage this. Moneylenders do not usually take up an estate agent job once we make our stand clear.'
What is clear, though, is that the number of licensed moneylenders has shot up in the last two years, with many specialising in 'housing loans'.
There are currently 260 licensed moneylenders, up from 173 in 2008 and 169 in 2007.
In 2008, the Moneylending Act was amended to remove the cap on maximum interest rates that lenders can charge.
Previously, licensed moneylenders could only impose a maximum interest rate of 18 per cent for unsecured loans, and 12 per cent for secured loans.
Restrictions on advertising, methods of loan disbursements and collection of payments were also eased.
Moneylenders have been taking up advertisements in the media. Their ads promise quick cash for personal loans and for those selling their flats. A typical ad reads: 'Collect cash now!!! 100% approval'.
The Sunday Times visited 30 moneylenders last week and found that 20 were one-man outfits.
Some lenders were tough-looking men in their 40s decked in gold chains and gold bracelets.
Others are like Mr Chua, who look like fashionable office workers in their patterned long-sleeved shirts and tailored pants.
Some run their operations out of bare offices equipped with only tables, chairs, telephones and laptops, like those in the shabby Jalan Besar Plaza and old HDB retail shops in French Road near Lavender MRT.
Others are in central locations like Peninsula Plaza, Hill Street Centre and Toa Payoh Central, equipped with fax machines and manned by receptionists.
More often than not, several moneylenders share one office space.
In a unit in French Road, for example, four men wore similar black polo shirts and pants and sat behind desks answering phones. But they were all from different companies.
Some lenders specialise in personal loans while others provide housing loans. Some provide both.
Those targeting the housing market say their clients are HDB flat sellers who need cash ahead of their unit being sold.
Typically, flat sellers apply for loans ranging from $5,000 to $100,000. The loan amount is usually less than the amount they will get for their property.
Lenders charge interest rates ranging from 4 per cent to 20 per cent, depending on the loan amount, repayment period and the borrower's income.
They check to ensure that the borrower's house is indeed on the market and ask questions like: 'Do you have a housing agent?' or 'Have you made your first appointment with the HDB?'
If the answer is no, the lender will ask the borrower to get his house marketed first before trying to get a loan.
The borrower can get the money as quickly as 30 minutes in the form of cash or a cash cheque.
Typically, moneylenders file a caveat on the flat, which ensures they get a first bite of the sale proceeds.
The criteria for becoming a moneylender are fairly straightforward.
For example, the applicant and his employees must be above the age of 21, reside in Singapore and be 'of good character and fit and proper persons to carry on the moneylending business'.
He must be familiar with the provisions of the Moneylenders Act and operate from a place that is 'suitable for the conduct of the moneylending business'.
He must also place a security deposit of $20,000 with the Accountant-General.
Moneylenders said the job carries risks and they have been cheated many times by customers who default on payment.
Sometimes, borrowers pretend to be interested in selling their home but the sale never goes through, they said.
Mr G. Chua said that despite being careful, he has chalked up about $100,000 in unpaid loans and there is nothing he can do about it.
'Our hard-earned money is just lost like that, and apart from turning to the police, there is nothing we can do,' he said.
'After all, we're legal lenders, so we can't go around splashing paint on their doors.'
itham@sph.com.sg
shulis@sph.com.sg
sumitas@sph.com.sg
--------------------------------------------------------------------------------
Loan amount and interest rates
Besides licensed moneylenders, borrowers turn to banks, trade unions and illegal loan sharks. Here is how much they generally charge.
BANKS
· Effective interest rates for personal loan: 12 per cent to 25 per cent per annum depending on income and loan tenure
· Interest rates for housing loan: from 1.6 per cent per annum depending on loan tenure and type of loan
· Minimum income: $20,000 per annum
· Maximum amount that can be borrowed: up to four times the borrower's monthly income
UNIONS
· Interest rates for personal loans: 4.25 per cent to 6 per cent per annum
Minimum income: no minimum income but must be member of union
· Maximum amount that can be borrowed: two to eight times borrower's monthly salary or up to the value of the pledged collateral
LEGAL MONEYLENDERS
· Interest rates for personal loans: 3.33 per cent per week to 20 per cent per month
· Interest rate for housing loans: 4 per cent to 20 per cent per month, depending on the loan amount, repayment period and borrower's income
· Minimum income: $1,000 a month
· Maximum amount that can be borrowed: up to four times the borrower's monthly income
ILLEGAL MONEYLENDERS or LOAN SHARKS
· Interest rates: Usually a flat 20 per cent per month, regardless of the type of loan
· Minimum income: None. You need a guarantor who will pay up if you default.
Maximum amount that can be borrowed: Depends on how much you are trusted. Amounts start as small as $500 and can go up to thousands of dollars.
ST : Private home rents picking up again
May 9, 2010
property
Private home rents picking up again
Demand rising in tandem with arrival of more expats
By Joyce Teo
Private home rents are finally on the way up, official data shows.
But there is some anecdotal evidence that the rental market has since slowed in some areas.
Data from the Urban Redevelopment Authority (URA) a fortnight ago shows private home rents rose by 4.7 per cent in the first quarter. This is a clear improvement on the 0.6 per cent rise in the previous quarter which followed five quarters of rental decline.
Leasing activities have picked up as more expatriates arrive, and this year could turn out to be as busy as 2007, said Mr Patrick Lai, director of corporate residential leasing at Savills Singapore.
Most of them are still from the biomedical, pharmaceutical and petrochemical industries, he said.
But Mr Lai added: 'We are seeing a lot of returnees from the financial services - and bankers are the ones with deep pockets.'
Agreeing, CBRE executive director, residential, Mr Joseph Tan said: 'The recovering Singapore economy has resulted in positive business sentiment and expansion plans, especially in finance and banking.
'Some top-level executives were known to have relocated from Britain to Singapore to enjoy some tax savings.'
Experts said rentals for good class bungalows and detached houses are up as their supply is limited.
Area-wise, the city centre is likely to do better than the city fringes or suburbs, said Mr Tan. URA data shows the median rents of some residential buildings in districts 9 and 10 such as The Claymore have grown by 1 to 27 per cent in the last six months.
The prime districts, and increasingly downtown Marina Bay and Sentosa Cove as well, are favourite locations for expatriates because of their amenities, network of foreigners, and accessibility to international schools, Mr Tan said.
As for the other areas, things are not as bright, though some parts are doing better. Rentals for both non-landed and landed homes in the Serangoon Gardens and Lorong Chuan areas, for instance, are heading up because of the presence of the Australian and French international schools there, said Mr Tan.
URA data shows that rents of non-landed homes in the city fringe areas and suburban spots rose by 4 per cent and 4.8 per cent respectively in the first quarter.
Rents of non-landed homes in the core city centre, or what URA calls the core central region, rose the most, at 5.3 per cent.
URA's second-quarter data will not be out until end-July but already, some agents are seeing more supply in certain parts of the market.
'The rental volume is there but lessees have more choices now. Quite a few projects were completed in the past few months and they will have created more competition in the market,' said ECG Property Group chief executive Eric Cheng.
The market did recover quite a bit earlier this year but things have slowed since then, with rentals staying mostly flat, said a seasoned agent who declined to be named.
In particular, the mid-tier rental segment - homes asking for about $3,500 to $8,000 a month - is expected to see even more supply than demand as more projects such as Sky @ Eleven and Southbank are completed, experts said.
An executive about to sign a lease for a three-bedroom apartment of some 1,500 sq ft in Upper Bukit Timah for $3,000 a month said the landlord had lowered the rent from $3,500 a month. 'Rents are very negotiable now,' she said.
Mr Tan said business prospects could remain favourable for the rest of the year, based on the Government's projection of gross domestic product growth of 7 per cent to 9 per cent this year.
'But the Greek financial crisis may put a dampener on the global markets,' he cautioned.
'Although companies may continue their expansion plans, they might not review their housing budget for expatriate staff. This is likely to check the rise in residential rents for the rest of the year.'
joyceteo@sph.com.sg
property
Private home rents picking up again
Demand rising in tandem with arrival of more expats
By Joyce Teo
Private home rents are finally on the way up, official data shows.
But there is some anecdotal evidence that the rental market has since slowed in some areas.
Data from the Urban Redevelopment Authority (URA) a fortnight ago shows private home rents rose by 4.7 per cent in the first quarter. This is a clear improvement on the 0.6 per cent rise in the previous quarter which followed five quarters of rental decline.
Leasing activities have picked up as more expatriates arrive, and this year could turn out to be as busy as 2007, said Mr Patrick Lai, director of corporate residential leasing at Savills Singapore.
Most of them are still from the biomedical, pharmaceutical and petrochemical industries, he said.
But Mr Lai added: 'We are seeing a lot of returnees from the financial services - and bankers are the ones with deep pockets.'
Agreeing, CBRE executive director, residential, Mr Joseph Tan said: 'The recovering Singapore economy has resulted in positive business sentiment and expansion plans, especially in finance and banking.
'Some top-level executives were known to have relocated from Britain to Singapore to enjoy some tax savings.'
Experts said rentals for good class bungalows and detached houses are up as their supply is limited.
Area-wise, the city centre is likely to do better than the city fringes or suburbs, said Mr Tan. URA data shows the median rents of some residential buildings in districts 9 and 10 such as The Claymore have grown by 1 to 27 per cent in the last six months.
The prime districts, and increasingly downtown Marina Bay and Sentosa Cove as well, are favourite locations for expatriates because of their amenities, network of foreigners, and accessibility to international schools, Mr Tan said.
As for the other areas, things are not as bright, though some parts are doing better. Rentals for both non-landed and landed homes in the Serangoon Gardens and Lorong Chuan areas, for instance, are heading up because of the presence of the Australian and French international schools there, said Mr Tan.
URA data shows that rents of non-landed homes in the city fringe areas and suburban spots rose by 4 per cent and 4.8 per cent respectively in the first quarter.
Rents of non-landed homes in the core city centre, or what URA calls the core central region, rose the most, at 5.3 per cent.
URA's second-quarter data will not be out until end-July but already, some agents are seeing more supply in certain parts of the market.
'The rental volume is there but lessees have more choices now. Quite a few projects were completed in the past few months and they will have created more competition in the market,' said ECG Property Group chief executive Eric Cheng.
The market did recover quite a bit earlier this year but things have slowed since then, with rentals staying mostly flat, said a seasoned agent who declined to be named.
In particular, the mid-tier rental segment - homes asking for about $3,500 to $8,000 a month - is expected to see even more supply than demand as more projects such as Sky @ Eleven and Southbank are completed, experts said.
An executive about to sign a lease for a three-bedroom apartment of some 1,500 sq ft in Upper Bukit Timah for $3,000 a month said the landlord had lowered the rent from $3,500 a month. 'Rents are very negotiable now,' she said.
Mr Tan said business prospects could remain favourable for the rest of the year, based on the Government's projection of gross domestic product growth of 7 per cent to 9 per cent this year.
'But the Greek financial crisis may put a dampener on the global markets,' he cautioned.
'Although companies may continue their expansion plans, they might not review their housing budget for expatriate staff. This is likely to check the rise in residential rents for the rest of the year.'
joyceteo@sph.com.sg
ST Letter : Projected value of ageing flats too rosy
May 9, 2010
YOUR LETTERS
Projected value of ageing flats too rosy
I refer to the article, 'What if you can't afford to retire?' (April25).
I am surprised with the example given by the Society of Financial Service Professionals' Mr Leong Sze Hian that a Housing Board flat valued at $200,000 now could be worth $864,388 in 30years.
Suppose a flat has 70years of lease left. In 30years, it would be down to only 40years left. Is it really possible that such a unit can fetch more than $864,000?
Mr Leong's rosy picture is not sustainable. The value of a leasehold property must come down at some point. Where exactly the turning point along the 99-year timeline is depends on several factors, such as government intervention.
It is possible to control the price movement by making available cheap lease top-up options. But if no extension is allowed, the value of a flat can move towards zero when the lease is fully expended.
This uncertainty has never been addressed. HDB flats with less than 65 years of lease left are changing hands as though they are freehold properties. Age is not factored into pricing negotiations. Surely this can't last. Imagine the consequences: A nation with a growing ageing population holding on to fast depreciating assets and not having enough funds for retirement.
Wong Pang Yee
YOUR LETTERS
Projected value of ageing flats too rosy
I refer to the article, 'What if you can't afford to retire?' (April25).
I am surprised with the example given by the Society of Financial Service Professionals' Mr Leong Sze Hian that a Housing Board flat valued at $200,000 now could be worth $864,388 in 30years.
Suppose a flat has 70years of lease left. In 30years, it would be down to only 40years left. Is it really possible that such a unit can fetch more than $864,000?
Mr Leong's rosy picture is not sustainable. The value of a leasehold property must come down at some point. Where exactly the turning point along the 99-year timeline is depends on several factors, such as government intervention.
It is possible to control the price movement by making available cheap lease top-up options. But if no extension is allowed, the value of a flat can move towards zero when the lease is fully expended.
This uncertainty has never been addressed. HDB flats with less than 65 years of lease left are changing hands as though they are freehold properties. Age is not factored into pricing negotiations. Surely this can't last. Imagine the consequences: A nation with a growing ageing population holding on to fast depreciating assets and not having enough funds for retirement.
Wong Pang Yee
ST Forum : Check lawyers first
May 8, 2010
ERRANT PROPERTY DEALS
Check lawyers first
I REFER to yesterday's report, 'Govt steps in to curb errant property agents', and the response by Dr Tan Tee Khoon of Singapore Accredited Estate Agencies ('Estate agents shouldn't work with moneylenders'; Thursday) to Monday's report, 'Realty firms halt lending activities'.
While estate agents appear to be the culprits singled out, should the authorities be more concerned that if lawyers continue to draft such agreements and have these caveats frivolously lodged, the problems will persist?
In the first place, the situation should be such that lawyers decline to work with moneylenders and estate agents when requested to draft such agreements and lodge such caveats.
Are not these lawyers duty-bound to check the validity of their clients' claims instead?
Should not such lawyers have advised their clients accordingly of the principle in Rule 40 of the Legal Profession (Professional Conduct) Rules?
Rule 40 states as follows: 'An advocate and solicitor shall in appropriate cases evaluate with a client whether the consequence of a matter justifies the expense or the risk involved.'
Will we eventually see many negative sales in the property market because of the unnecessary litigation involved in such caveats as many lawyers draft such agreements, generate litigation and lodge caveats?
Tan Chin Aik
ERRANT PROPERTY DEALS
Check lawyers first
I REFER to yesterday's report, 'Govt steps in to curb errant property agents', and the response by Dr Tan Tee Khoon of Singapore Accredited Estate Agencies ('Estate agents shouldn't work with moneylenders'; Thursday) to Monday's report, 'Realty firms halt lending activities'.
While estate agents appear to be the culprits singled out, should the authorities be more concerned that if lawyers continue to draft such agreements and have these caveats frivolously lodged, the problems will persist?
In the first place, the situation should be such that lawyers decline to work with moneylenders and estate agents when requested to draft such agreements and lodge such caveats.
Are not these lawyers duty-bound to check the validity of their clients' claims instead?
Should not such lawyers have advised their clients accordingly of the principle in Rule 40 of the Legal Profession (Professional Conduct) Rules?
Rule 40 states as follows: 'An advocate and solicitor shall in appropriate cases evaluate with a client whether the consequence of a matter justifies the expense or the risk involved.'
Will we eventually see many negative sales in the property market because of the unnecessary litigation involved in such caveats as many lawyers draft such agreements, generate litigation and lodge caveats?
Tan Chin Aik
ST : Towards better property agents
May 8, 2010
Towards better property agents
New regulations include higher entry level and mandatory examination
By Joyce Teo
TOUGH new rules for property agents are likely to make it harder for people to quickly switch careers and jump into the real estate market when it turns red-hot.
The upcoming regulations will raise the entry barrier far higher and so deter agencies signing up new sales staff - full or part-time - at a moment's notice.
The rules announced on Thursday will require Singapore's 25,000 or so agents to register through their firms at a new statutory board called the Council for Estate Agencies.
They will also have to pass a mandatory industry exam and undertake continuing professional development of six hours a year. Agents will also need to have four GCE 'O' levels.
This is a sea change. There are now no educational requirements and no mandatory exam, so anyone - from housewives to executives - is able to easily try his luck as an agent.
'Those who may want to make a mid-life career switch into property won't be able to do so if they do not have the four Os,' said ERA Asia-Pacific associate director Eugene Lim.
The buying and selling of property is probably a person's biggest investment and all deals involve paperwork, so this new rule will protect consumers, he added.
Existing agents will be exempted from this educational qualification criterion and those who have passed an industry exam will not need to take the new test.
The new rules - they will kick in once legislation is introduced in Parliament in the second half of the year - will outlaw an agent representing both buyer and seller in a transaction.
Some agents dealing in HDB flats may see a drop in their income if they are not willing to co-broke, said C&H Realty managing director Albert Lu.
Agents representing the buyer and the seller in the same transaction is a widespread practice in the HDB resale market, even though there is a conflict of interest.
Such agents collect commissions from both the seller (usually 2 per cent) and the buyer (often 1 per cent) if the buyer does not have an agent, said Mr Lu.
Agents handling rental deals who are not willing to co-broke may see a drop in income of up to 50 per cent, he added.
These agents usually charge the landlord a commission of one month's rent for a two-year lease and the same commission for the tenant if he does not have an agent.
The new regime is in response to rising complaints against errant agents in what some have termed a 'cowboy' industry.
Dodgy agents have been known to rejoin the industry right after getting out of jail for fraud but this will be impossible under the new rules.
Agents will also not be able to represent more than one agency and will have to wear a standard agent identification card when on the job.
And a public registry of real estate agencies and agents will be set up so that consumers can check on a particular agency or agent. The registry will list any disciplinary action taken over the past three years but it still may not be enough.
ECG Property Group's chief executive Eric Cheng said: 'All the agency bosses will have to work together to police the industry.
'A lot of cowboys are still in the industry. The new rules will help improve the industry but it will not clean it up. There must be constant improvement.'
The impact of the new rules may be felt more when they are clearly defined and in effect, said ERA's Mr Lim.
Industry experts say the ranks of agents will not shrink considerably, though there will be dropouts.
About 10 to 20 per cent of agents may retire within two years if they are not up to the mark as the new rules will require them to take an exam, said PropNex chief executive Mohamed Ismail, who is also president of the Institute of Estate Agents.
Agents who have not passed any existing industry exam will have one year after the start of the new exam to pass it.
'The whole idea behind the new rules is to remove those who don't fit the bill or who don't behave,' said Mr Lim.
About 1,700 agencies with 20,000 to 25,000 agents deal in HDB and private homes.
Knight Frank's managing director of residential services, Mr Peter Ow, said: 'The framework is a good start. The impact won't be felt immediately but perhaps over a four-to-five-year period. The standard of the industry will improve.'
joyceteo@sph.com.sg
Towards better property agents
New regulations include higher entry level and mandatory examination
By Joyce Teo
TOUGH new rules for property agents are likely to make it harder for people to quickly switch careers and jump into the real estate market when it turns red-hot.
The upcoming regulations will raise the entry barrier far higher and so deter agencies signing up new sales staff - full or part-time - at a moment's notice.
The rules announced on Thursday will require Singapore's 25,000 or so agents to register through their firms at a new statutory board called the Council for Estate Agencies.
They will also have to pass a mandatory industry exam and undertake continuing professional development of six hours a year. Agents will also need to have four GCE 'O' levels.
This is a sea change. There are now no educational requirements and no mandatory exam, so anyone - from housewives to executives - is able to easily try his luck as an agent.
'Those who may want to make a mid-life career switch into property won't be able to do so if they do not have the four Os,' said ERA Asia-Pacific associate director Eugene Lim.
The buying and selling of property is probably a person's biggest investment and all deals involve paperwork, so this new rule will protect consumers, he added.
Existing agents will be exempted from this educational qualification criterion and those who have passed an industry exam will not need to take the new test.
The new rules - they will kick in once legislation is introduced in Parliament in the second half of the year - will outlaw an agent representing both buyer and seller in a transaction.
Some agents dealing in HDB flats may see a drop in their income if they are not willing to co-broke, said C&H Realty managing director Albert Lu.
Agents representing the buyer and the seller in the same transaction is a widespread practice in the HDB resale market, even though there is a conflict of interest.
Such agents collect commissions from both the seller (usually 2 per cent) and the buyer (often 1 per cent) if the buyer does not have an agent, said Mr Lu.
Agents handling rental deals who are not willing to co-broke may see a drop in income of up to 50 per cent, he added.
These agents usually charge the landlord a commission of one month's rent for a two-year lease and the same commission for the tenant if he does not have an agent.
The new regime is in response to rising complaints against errant agents in what some have termed a 'cowboy' industry.
Dodgy agents have been known to rejoin the industry right after getting out of jail for fraud but this will be impossible under the new rules.
Agents will also not be able to represent more than one agency and will have to wear a standard agent identification card when on the job.
And a public registry of real estate agencies and agents will be set up so that consumers can check on a particular agency or agent. The registry will list any disciplinary action taken over the past three years but it still may not be enough.
ECG Property Group's chief executive Eric Cheng said: 'All the agency bosses will have to work together to police the industry.
'A lot of cowboys are still in the industry. The new rules will help improve the industry but it will not clean it up. There must be constant improvement.'
The impact of the new rules may be felt more when they are clearly defined and in effect, said ERA's Mr Lim.
Industry experts say the ranks of agents will not shrink considerably, though there will be dropouts.
About 10 to 20 per cent of agents may retire within two years if they are not up to the mark as the new rules will require them to take an exam, said PropNex chief executive Mohamed Ismail, who is also president of the Institute of Estate Agents.
Agents who have not passed any existing industry exam will have one year after the start of the new exam to pass it.
'The whole idea behind the new rules is to remove those who don't fit the bill or who don't behave,' said Mr Lim.
About 1,700 agencies with 20,000 to 25,000 agents deal in HDB and private homes.
Knight Frank's managing director of residential services, Mr Peter Ow, said: 'The framework is a good start. The impact won't be felt immediately but perhaps over a four-to-five-year period. The standard of the industry will improve.'
joyceteo@sph.com.sg
ST : Property Fear
May 8, 2010
Property Fear
With the global economy recovering from the crisis, property markets are seeing a rebound around the world. The Straits Times bureaus look at whether people are buying and selling - or not - in two of the world's biggest economies.
By Bhagyashree Garekar US CORRESPONDENT
Sales pick up but no room for celebration yet
Jobless rate remains high and govt incentive schemes are ending
WASHINGTON: When Mrs Elaine Kay put up her house for sale last week, she hardly expected it to be snapped up before breakfast on the very first day of its listing.
Her worry now is being able to find a new home in the town she is moving to. 'All the nice ones get taken... like that,' she said, snapping her fingers.
'Sold' signs have been popping up like mushrooms across the capital's leafy
suburbs. For the first time in three years, say local realtors, buyers are showing a new confidence and throwing up multiple offers for properties. Indices tracking sales volumes have also risen.
'We've had a fantastic two months,' said Ms Jane Fairweather, whose brokerage specialises in the Washington Metro Area real estate market.
It is not altogether a surprise that the journey to revival has been a short one in the nation's capital, where there is a concentration of high-wage earners and the impact of the economic crisis was least felt.
The surprise is that signs of revival are showing up across the nation - the northeast, mid-west, south and west.
The bounce, however, has come later than is typical after recessions. In the last seven recessions, housing was one of the first sectors to recover. But since the housing collapse was at the centre of the recession this time, it has picked up only after the economy registered two quarters of growth.
Still, delay aside, the numbers have beat forecasts. In March, sales of new homes across the US surged by 27 per cent - the biggest monthly gain in 47 years. In the south and north-east, sales were even stronger, rising by 43.5 per cent and 35.7 per cent respectively.
Sales of existing homes also rose, by 6.8 per cent, again beating expectations.
Unsurprisingly, the rise in sales has nudged up prices, though not by much. According to the widely followed S&P/Case-Shiller index, home prices in 20 cities rose by 0.6 per cent in February from last year, the first annual gain since December 2006.
This perking up derives from a number of factors.
The most significant is the support from numerous government incentives. They include a home-buyer tax credit, the US$75 billion (S$105 billion) foreclosure prevention plan, the Federal Reserve's US$1.25 trillion programme to drive down mortgage rates, and the US$126 billion stabilisation of mortgage finance companies Fannie Mae and Freddie Mac.
The question is whether the growth will endure as these government incentives wear off.
The Fed programme to buy mortgage- backed securities - pushing down the mortgage rates to record lows - ended in March, while the tax credit expired last week.
But many analysts believe that this will be countered by low home prices and low mortgage rates.
Still, market watchers remain cautious in their predictions. Investor Warren Buffett expects to see a sustainable recovery within a year, while housing analyst David Abromowitz said it depends on the employment situation and the threat from more foreclosures.
'So long as unemployment remains high, and many prospective buyers worry about layoffs or income cutbacks, it seems unlikely that strong demand for homes will return to the market,' he said.
More than 25 per cent of home mortgages, he pointed out, remain 'underwater', or worth more than the market price of the homes.
If some of the 15 million borrowers in this category were to foreclose, the houses would end up with banks which would eventually put them on the market, increasing the supply and thus lowering prices.
Indeed, figures indicate a slow overall recovery, despite the rebound in sales.
Housing prices, which plummeted 33 per cent from their 2006 peak, have gained back only 4 per cent so far.
And construction and other housing-related services remain weak, accounting for just 2.5 per cent of the US economy - sharply down from the 6.3 per cent at the peak of the housing boom.
'We have been through the worst housing market I've ever seen,' said Ms Fairweather, who has been in the real estate business for nearly three decades.
'It will take us at least 10 years to reach the 2005 highs once again.'
bhagya@sph.com.sg
Property Fear
With the global economy recovering from the crisis, property markets are seeing a rebound around the world. The Straits Times bureaus look at whether people are buying and selling - or not - in two of the world's biggest economies.
By Bhagyashree Garekar US CORRESPONDENT
Sales pick up but no room for celebration yet
Jobless rate remains high and govt incentive schemes are ending
WASHINGTON: When Mrs Elaine Kay put up her house for sale last week, she hardly expected it to be snapped up before breakfast on the very first day of its listing.
Her worry now is being able to find a new home in the town she is moving to. 'All the nice ones get taken... like that,' she said, snapping her fingers.
'Sold' signs have been popping up like mushrooms across the capital's leafy
suburbs. For the first time in three years, say local realtors, buyers are showing a new confidence and throwing up multiple offers for properties. Indices tracking sales volumes have also risen.
'We've had a fantastic two months,' said Ms Jane Fairweather, whose brokerage specialises in the Washington Metro Area real estate market.
It is not altogether a surprise that the journey to revival has been a short one in the nation's capital, where there is a concentration of high-wage earners and the impact of the economic crisis was least felt.
The surprise is that signs of revival are showing up across the nation - the northeast, mid-west, south and west.
The bounce, however, has come later than is typical after recessions. In the last seven recessions, housing was one of the first sectors to recover. But since the housing collapse was at the centre of the recession this time, it has picked up only after the economy registered two quarters of growth.
Still, delay aside, the numbers have beat forecasts. In March, sales of new homes across the US surged by 27 per cent - the biggest monthly gain in 47 years. In the south and north-east, sales were even stronger, rising by 43.5 per cent and 35.7 per cent respectively.
Sales of existing homes also rose, by 6.8 per cent, again beating expectations.
Unsurprisingly, the rise in sales has nudged up prices, though not by much. According to the widely followed S&P/Case-Shiller index, home prices in 20 cities rose by 0.6 per cent in February from last year, the first annual gain since December 2006.
This perking up derives from a number of factors.
The most significant is the support from numerous government incentives. They include a home-buyer tax credit, the US$75 billion (S$105 billion) foreclosure prevention plan, the Federal Reserve's US$1.25 trillion programme to drive down mortgage rates, and the US$126 billion stabilisation of mortgage finance companies Fannie Mae and Freddie Mac.
The question is whether the growth will endure as these government incentives wear off.
The Fed programme to buy mortgage- backed securities - pushing down the mortgage rates to record lows - ended in March, while the tax credit expired last week.
But many analysts believe that this will be countered by low home prices and low mortgage rates.
Still, market watchers remain cautious in their predictions. Investor Warren Buffett expects to see a sustainable recovery within a year, while housing analyst David Abromowitz said it depends on the employment situation and the threat from more foreclosures.
'So long as unemployment remains high, and many prospective buyers worry about layoffs or income cutbacks, it seems unlikely that strong demand for homes will return to the market,' he said.
More than 25 per cent of home mortgages, he pointed out, remain 'underwater', or worth more than the market price of the homes.
If some of the 15 million borrowers in this category were to foreclose, the houses would end up with banks which would eventually put them on the market, increasing the supply and thus lowering prices.
Indeed, figures indicate a slow overall recovery, despite the rebound in sales.
Housing prices, which plummeted 33 per cent from their 2006 peak, have gained back only 4 per cent so far.
And construction and other housing-related services remain weak, accounting for just 2.5 per cent of the US economy - sharply down from the 6.3 per cent at the peak of the housing boom.
'We have been through the worst housing market I've ever seen,' said Ms Fairweather, who has been in the real estate business for nearly three decades.
'It will take us at least 10 years to reach the 2005 highs once again.'
bhagya@sph.com.sg
ST : 'Mickey mouse flats' still selling well
May 8, 2010
'Mickey mouse flats' still selling well
Record number of flats of 500 sq ft or less sold last year; demand still strong so far this year
By Esther Teo
SALES of small apartments - the so-called mickey mouse flats - skyrocketed last year and are still going strong this year.
There were 696 flats of 500 sq ft or less in size sold last year, based on caveats lodged with the Urban Redevelopment Authority's Realis system.
That is the highest level since such records began in 1995.
And sales of units between 500 and 800 sq ft hit 1,285 last year, according to a report from property firm CB Richard Ellis (CBRE).
Buyer interest is still strong with 533 units of 800 sq ft or less sold in the first four months of this year. The total number of flats of 800 sq ft or less in the primary residential market comprises about 23 per cent of the 2,300 caveats lodged since yesterday, CBRE said.
CBRE residential executive director Joseph Tan said: 'What started as a notable trend in 2009 appears to have caught on in the early part of 2010.
'Small-format units form a significant proportion of the overall burgeoning sales volume that we have seen in the first four months of this year.
'Developers continue to provide these small- format units and home buyers seem to be biting.'
These units are commonly included as one-bedroom flats in project launches. The Altez, for example, has a substantial number of units ranging from 527 to 816 sq ft while the 134 one-bedroom units at 76 Shenton range from 592 to 624 sq ft.
Buyers like the relatively smaller price quantum for such units, making them more affordable compared to family-size flats.
Developers can also maximise their returns by selling these units at a higher price per sq ft (psf), CBRE said.
Mr Tan added: 'When these units are eventually completed, the most likely occupier profile would consist of expatriate tenants or Singaporean single professionals.'
As lifestyle choices in Singapore continue to evolve in a cosmopolitan environment and the demand for these smaller units remains strong, developers will continue to provide small-format units in the residential market, he said.
DMG & Partners Securities property analyst Brandon Lee said small units were the main draw during his visit to small to medium-sized projects last weekend.
Small units, which comprise 70 per cent of Oxley Ventures' Parc Somme near Farrer Park, had a swift take-up, he said.
One-bedders of between 300 sq ft and 450 sq ft fetched $1,350 psf while two-bedders from 550 to 670 sq ft were selling for $920 psf.
Mr Steven Tan, executive director of OrangeTee's residential division, said the trend for shoe-box- size units took off only a couple of years ago.
'The most important thing is to notice the layout of the unit. It's better to have just two bedrooms in an 800 sq ft apartment than squeezing three bedrooms in and making the place unattractive due to its tight space,' he added.
Although expatriates have been returning to Singapore, Mr Tan cautioned that if the economic recovery falters, owners of small units might struggle to find tenants.
esthert@sph.com.sg
--------------------------------------------------------------------------------
THE BUYERS
'When these units are eventually completed, the most likely occupier profile would consist of expatriate tenants or Singaporean single professionals.'
CB Richard Ellis residential executive director Joseph Tan
'Mickey mouse flats' still selling well
Record number of flats of 500 sq ft or less sold last year; demand still strong so far this year
By Esther Teo
SALES of small apartments - the so-called mickey mouse flats - skyrocketed last year and are still going strong this year.
There were 696 flats of 500 sq ft or less in size sold last year, based on caveats lodged with the Urban Redevelopment Authority's Realis system.
That is the highest level since such records began in 1995.
And sales of units between 500 and 800 sq ft hit 1,285 last year, according to a report from property firm CB Richard Ellis (CBRE).
Buyer interest is still strong with 533 units of 800 sq ft or less sold in the first four months of this year. The total number of flats of 800 sq ft or less in the primary residential market comprises about 23 per cent of the 2,300 caveats lodged since yesterday, CBRE said.
CBRE residential executive director Joseph Tan said: 'What started as a notable trend in 2009 appears to have caught on in the early part of 2010.
'Small-format units form a significant proportion of the overall burgeoning sales volume that we have seen in the first four months of this year.
'Developers continue to provide these small- format units and home buyers seem to be biting.'
These units are commonly included as one-bedroom flats in project launches. The Altez, for example, has a substantial number of units ranging from 527 to 816 sq ft while the 134 one-bedroom units at 76 Shenton range from 592 to 624 sq ft.
Buyers like the relatively smaller price quantum for such units, making them more affordable compared to family-size flats.
Developers can also maximise their returns by selling these units at a higher price per sq ft (psf), CBRE said.
Mr Tan added: 'When these units are eventually completed, the most likely occupier profile would consist of expatriate tenants or Singaporean single professionals.'
As lifestyle choices in Singapore continue to evolve in a cosmopolitan environment and the demand for these smaller units remains strong, developers will continue to provide small-format units in the residential market, he said.
DMG & Partners Securities property analyst Brandon Lee said small units were the main draw during his visit to small to medium-sized projects last weekend.
Small units, which comprise 70 per cent of Oxley Ventures' Parc Somme near Farrer Park, had a swift take-up, he said.
One-bedders of between 300 sq ft and 450 sq ft fetched $1,350 psf while two-bedders from 550 to 670 sq ft were selling for $920 psf.
Mr Steven Tan, executive director of OrangeTee's residential division, said the trend for shoe-box- size units took off only a couple of years ago.
'The most important thing is to notice the layout of the unit. It's better to have just two bedrooms in an 800 sq ft apartment than squeezing three bedrooms in and making the place unattractive due to its tight space,' he added.
Although expatriates have been returning to Singapore, Mr Tan cautioned that if the economic recovery falters, owners of small units might struggle to find tenants.
esthert@sph.com.sg
--------------------------------------------------------------------------------
THE BUYERS
'When these units are eventually completed, the most likely occupier profile would consist of expatriate tenants or Singaporean single professionals.'
CB Richard Ellis residential executive director Joseph Tan
ST : Sales fall as buyers and sellers hold back
May 8, 2010
CHINA
Sales fall as buyers and sellers hold back
Govt measures to curb market taking effect; analysts expect prices to plunge by 30%
BEIJING: New government measures to curb housing prices in China have sent sales volumes into a tailspin as both buyers and sellers are holding back to see how the market will react.
Prices have not fallen significantly because sellers are still playing wait-and-see, but brokerages are already predicting a 30 per cent drop eventually.
Yesterday, Housing and Urban-Rural Development Vice-Minister Qi Ji, in justifying the latest measures, said rising property prices had to be reined in to prevent social instability.
Meant to cool the overheated market, the measures include higher downpayments and loan rates. When they were announced in the middle of last month, the number of deals fell by more than half in major cities across China over the May Day holidays.
In the capital Beijing, where the regulations were among the harshest, average daily sales have fallen by more than 80 per cent from last month. Shanghai, Guangzhou, Tianjin and Hangzhou also reported drops of 50 per cent to 70 per cent.
'If new sales continue to stay sluggish, it is just a matter of time before prices also start to fall,' said Professor Dong Fan, director of the Real Estate Research Centre at Beijing Normal University.
This is exactly what the policies were meant to achieve.
Runaway home prices have in recent years become a hot issue in China, where a culture of home ownership rather than renting dominates.
In March, the property price index of 70 major Chinese cities jumped 11.7 per cent in a year, the fastest rise since the index began in 2005.
More dramatic hikes were seen in the larger cities. In Beijing, the average price of a new apartment rose 88 per cent to 21,880 yuan (S$4,485) per sq m.
The Chinese government had previously appeared to vacillate on the issue, but came under increasing pressure to intervene.
The pressure came from first-time home buyers as well as economists who believed a US-style housing bubble was in the making.
Last month, the central government raised the mandatory downpayment by 10 percentage points, hiked home loan rates and announced a trial for an impending property tax.
The municipality of Beijing followed up with more severe regulations, restricting families to buying just one new property each, on top of however many they now own.
Sceptics, however, doubt the measures will achieve their aim. While many buyers are holding back, they point out, a sizzling economy growing at 11.9 per cent will prop up the demand.
Besides, others note, the Chinese are notoriously adept at finding loopholes in the law.
According to a Xinhua news agency report, banks in Shenzhen were already skirting round the new loan limits by disguising housing loans as other forms of consumer credit.
Some buyers, add analysts, may also fake divorces or delay marriages to get around the restrictions that apply to family units.
And even if the new measures work, the Chinese government itself could partially withdraw it - for fear that an overcooling of the property market might spark loan defaults and property-related layoffs, causing a general downturn.
Doomsayers cite as evidence the falling Shanghai stock index, which has dropped 10 per cent since the cooling measures were first announced. Real estate companies had led the losers' table.
A paper released by the Chinese Academy of Social Sciences on Wednesday also raised concerns that China's economic growth may be too dependent on the real estate industry, suggesting that it needs to be gradually weaned off.
Prof Dong warned: 'Real estate is like a huge web that connects a dozen other industries. If they collapse together, the consequences would be unimaginable.'
But for now, it is the genuine home buyers who are smiling.stbeijing@gmail.com
Additional reporting by Lina Miao
Grim figures over May Day holidays
Beijing: Down 82%
Shanghai: Down 75%
Guangzhou: Down 70%
Wuhan: Down 50%
Tianjin: Down 50%
Month-on-month figures
A sales agent (right) speaking to a visitor in front of the model of a house at a real estate fair in Shenzhen, China this week. The government has introduced cooling measures, on fears of a US-style housing bubble forming. -- PHOTO: REUTERS
CHINA
Sales fall as buyers and sellers hold back
Govt measures to curb market taking effect; analysts expect prices to plunge by 30%
BEIJING: New government measures to curb housing prices in China have sent sales volumes into a tailspin as both buyers and sellers are holding back to see how the market will react.
Prices have not fallen significantly because sellers are still playing wait-and-see, but brokerages are already predicting a 30 per cent drop eventually.
Yesterday, Housing and Urban-Rural Development Vice-Minister Qi Ji, in justifying the latest measures, said rising property prices had to be reined in to prevent social instability.
Meant to cool the overheated market, the measures include higher downpayments and loan rates. When they were announced in the middle of last month, the number of deals fell by more than half in major cities across China over the May Day holidays.
In the capital Beijing, where the regulations were among the harshest, average daily sales have fallen by more than 80 per cent from last month. Shanghai, Guangzhou, Tianjin and Hangzhou also reported drops of 50 per cent to 70 per cent.
'If new sales continue to stay sluggish, it is just a matter of time before prices also start to fall,' said Professor Dong Fan, director of the Real Estate Research Centre at Beijing Normal University.
This is exactly what the policies were meant to achieve.
Runaway home prices have in recent years become a hot issue in China, where a culture of home ownership rather than renting dominates.
In March, the property price index of 70 major Chinese cities jumped 11.7 per cent in a year, the fastest rise since the index began in 2005.
More dramatic hikes were seen in the larger cities. In Beijing, the average price of a new apartment rose 88 per cent to 21,880 yuan (S$4,485) per sq m.
The Chinese government had previously appeared to vacillate on the issue, but came under increasing pressure to intervene.
The pressure came from first-time home buyers as well as economists who believed a US-style housing bubble was in the making.
Last month, the central government raised the mandatory downpayment by 10 percentage points, hiked home loan rates and announced a trial for an impending property tax.
The municipality of Beijing followed up with more severe regulations, restricting families to buying just one new property each, on top of however many they now own.
Sceptics, however, doubt the measures will achieve their aim. While many buyers are holding back, they point out, a sizzling economy growing at 11.9 per cent will prop up the demand.
Besides, others note, the Chinese are notoriously adept at finding loopholes in the law.
According to a Xinhua news agency report, banks in Shenzhen were already skirting round the new loan limits by disguising housing loans as other forms of consumer credit.
Some buyers, add analysts, may also fake divorces or delay marriages to get around the restrictions that apply to family units.
And even if the new measures work, the Chinese government itself could partially withdraw it - for fear that an overcooling of the property market might spark loan defaults and property-related layoffs, causing a general downturn.
Doomsayers cite as evidence the falling Shanghai stock index, which has dropped 10 per cent since the cooling measures were first announced. Real estate companies had led the losers' table.
A paper released by the Chinese Academy of Social Sciences on Wednesday also raised concerns that China's economic growth may be too dependent on the real estate industry, suggesting that it needs to be gradually weaned off.
Prof Dong warned: 'Real estate is like a huge web that connects a dozen other industries. If they collapse together, the consequences would be unimaginable.'
But for now, it is the genuine home buyers who are smiling.stbeijing@gmail.com
Additional reporting by Lina Miao
Grim figures over May Day holidays
Beijing: Down 82%
Shanghai: Down 75%
Guangzhou: Down 70%
Wuhan: Down 50%
Tianjin: Down 50%
Month-on-month figures
A sales agent (right) speaking to a visitor in front of the model of a house at a real estate fair in Shenzhen, China this week. The government has introduced cooling measures, on fears of a US-style housing bubble forming. -- PHOTO: REUTERS
ST : HK to study subsidies for home buyers
May 8, 2010
HK to study subsidies for home buyers
HONG KONG: Under pressure to address rising property prices while not alienating existing home-owners, the government has turned to an age-old solution - a public consultation.
Chief Executive Donald Tsang announced on Thursday that housing minister Eva Cheng would contact various stakeholders and the public over the next five months to gauge their views on using taxpayers' money to help people buy homes, the South China Morning Post reported yesterday.
The move comes eight years after the government shelved the Home Ownership Scheme (HOS) - which allows people to buy subsidised flats - to reverse a slump in the market.
Amid mounting calls for Mr Tsang to resume the scheme as property prices rise, he said the government was aware that some people who did not qualify for public rental flats could not afford to buy private ones.
'We appreciate the need to forge a consensus on provision of subsidies for people to buy property,' he said during a question-and-answer session in the Legislative Council.
He added that he would give an account in his policy address in October if the government had further ideas on the issue after the consultation.
A political scientist at City University of Hong Kong, Dr James Sung, said the government was trying to buy time, the Post reported.
'It needs some time to reach a consensus within the government and monitor the situation in the global economy,' he said.
Thursday's announcement came two days after housing minister Cheng said HOS flats were not the only option for home-starters, and questioned whether taxpayers' money should be used to help people buy flats.
Mr Tsang said he recognised that property prices had surged by one third between January last year and March this year. But he wondered whether public money should be used to subsidise people to buy private property.
He reminded the public of the painful lessons of the property bubble in the 1990s. 'After the property bubble burst in the wake of the Asian financial crisis, many home buyers suffering from negative equity blamed the government for encouraging them to buy homes.'
His remarks underlined the predicament facing the administration in trying to satisfy people who want to buy homes as well as existing home-owners who fear any change in policy will hit prices.
'The government has great power to ruin the property market but there is little it can do to stabilise property prices during a slump,' the Post quoted Mr Tsang as saying.
HK to study subsidies for home buyers
HONG KONG: Under pressure to address rising property prices while not alienating existing home-owners, the government has turned to an age-old solution - a public consultation.
Chief Executive Donald Tsang announced on Thursday that housing minister Eva Cheng would contact various stakeholders and the public over the next five months to gauge their views on using taxpayers' money to help people buy homes, the South China Morning Post reported yesterday.
The move comes eight years after the government shelved the Home Ownership Scheme (HOS) - which allows people to buy subsidised flats - to reverse a slump in the market.
Amid mounting calls for Mr Tsang to resume the scheme as property prices rise, he said the government was aware that some people who did not qualify for public rental flats could not afford to buy private ones.
'We appreciate the need to forge a consensus on provision of subsidies for people to buy property,' he said during a question-and-answer session in the Legislative Council.
He added that he would give an account in his policy address in October if the government had further ideas on the issue after the consultation.
A political scientist at City University of Hong Kong, Dr James Sung, said the government was trying to buy time, the Post reported.
'It needs some time to reach a consensus within the government and monitor the situation in the global economy,' he said.
Thursday's announcement came two days after housing minister Cheng said HOS flats were not the only option for home-starters, and questioned whether taxpayers' money should be used to help people buy flats.
Mr Tsang said he recognised that property prices had surged by one third between January last year and March this year. But he wondered whether public money should be used to subsidise people to buy private property.
He reminded the public of the painful lessons of the property bubble in the 1990s. 'After the property bubble burst in the wake of the Asian financial crisis, many home buyers suffering from negative equity blamed the government for encouraging them to buy homes.'
His remarks underlined the predicament facing the administration in trying to satisfy people who want to buy homes as well as existing home-owners who fear any change in policy will hit prices.
'The government has great power to ruin the property market but there is little it can do to stabilise property prices during a slump,' the Post quoted Mr Tsang as saying.
BT : Sales of small units hit new high in 2009
Business Times - 08 May 2010
Sales of small units hit new high in 2009
Most likely occupiers of such apartments are expatriate tenants or S'porean single professionals: CBRE
By UMA SHANKARI
A RECORD number of tiny new apartments were sold last year, according to property consultancy CB Richard Ellis (CBRE). A total of 696 new non-landed residential units of 500 square feet or less were transacted, it says in a new report.
CBRE Research also found that sales of units between 500 sq ft and 800 sq ft spiked to 1,285 last year.
And in the first four months of 2010, there were 211 transactions of new units of 500 sq ft or less and 322 transactions of new units of 500-800 sq ft.
In the primary residential market, non-landed units of 800 sq ft or less account for about 23 per cent of the 2,300 new sale caveats lodged so far this year.
'What started as a notable trend in 2009 appears to have caught on in the early part of 2010,' said CBRE's residential executive director Joseph Tan. 'Small-format units form a significant proportion of the overall burgeoning sales volume we have seen in the first four months of this year. Developers continue to provide these small-format units and home-buyers seem to be biting.'
DMG & Partners Research analyst Brandon Lee also said this week the market for small new units remains strong.
'We visited showflats for two small/medium size launches last weekend,' Mr Lee wrote in a May 4 note. 'Underpinned by low absolute price quantum, projects with compact-size units continue to draw strong buying interest, as evidenced by the swift take-up of Parc Somme and Suites @ Katong.'
Small units are commonly included as one-bedroom offerings in new projects. For example, Far East Organization's Altez has a substantial number of units ranging from 527 sq ft to 816 sq ft. And Hong Leong Holdings' 76 Shenton has unit sizes ranging from 596 sq ft to 624 sq ft.
Analysts say buyers are attracted to such units because their small size makes them more affordable than the usual family-size units. Developers can also maximise their returns by selling small units at a higher price per sq ft.
CBRE's Mr Tan said the most likely occupiers of such units are expatriate tenants or Singaporean single professionals. As lifestyle choices in Singapore continue to evolve in a cosmopolitan environment, and if demand for small units remains strong, developers will continue to provide them, he said.
Overall transaction volume in the private residential market has been strong this year. A total of 4,380 new homes were sold in the first three months.
And if this pace is maintained throughout the year, sales of new homes could be comparable to last year's 14,688 units, CBRE says.
But resistance to projects priced at hefty premiums of 20 per cent or more to nearby projects is beginning to set in. DMG's Mr Lee said this is especially the case in the mass and mid-market segments, where prices have already passed their last peaks.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
NEW PROJECTS
Far East Organization's Altez (left) has a substantial number of units ranging from 527 to 816 square feet and Hong Leong Holdings' 76 Shenton has unit sizes ranging from 596 to 624 square feet.
Sales of small units hit new high in 2009
Most likely occupiers of such apartments are expatriate tenants or S'porean single professionals: CBRE
By UMA SHANKARI
A RECORD number of tiny new apartments were sold last year, according to property consultancy CB Richard Ellis (CBRE). A total of 696 new non-landed residential units of 500 square feet or less were transacted, it says in a new report.
CBRE Research also found that sales of units between 500 sq ft and 800 sq ft spiked to 1,285 last year.
And in the first four months of 2010, there were 211 transactions of new units of 500 sq ft or less and 322 transactions of new units of 500-800 sq ft.
In the primary residential market, non-landed units of 800 sq ft or less account for about 23 per cent of the 2,300 new sale caveats lodged so far this year.
'What started as a notable trend in 2009 appears to have caught on in the early part of 2010,' said CBRE's residential executive director Joseph Tan. 'Small-format units form a significant proportion of the overall burgeoning sales volume we have seen in the first four months of this year. Developers continue to provide these small-format units and home-buyers seem to be biting.'
DMG & Partners Research analyst Brandon Lee also said this week the market for small new units remains strong.
'We visited showflats for two small/medium size launches last weekend,' Mr Lee wrote in a May 4 note. 'Underpinned by low absolute price quantum, projects with compact-size units continue to draw strong buying interest, as evidenced by the swift take-up of Parc Somme and Suites @ Katong.'
Small units are commonly included as one-bedroom offerings in new projects. For example, Far East Organization's Altez has a substantial number of units ranging from 527 sq ft to 816 sq ft. And Hong Leong Holdings' 76 Shenton has unit sizes ranging from 596 sq ft to 624 sq ft.
Analysts say buyers are attracted to such units because their small size makes them more affordable than the usual family-size units. Developers can also maximise their returns by selling small units at a higher price per sq ft.
CBRE's Mr Tan said the most likely occupiers of such units are expatriate tenants or Singaporean single professionals. As lifestyle choices in Singapore continue to evolve in a cosmopolitan environment, and if demand for small units remains strong, developers will continue to provide them, he said.
Overall transaction volume in the private residential market has been strong this year. A total of 4,380 new homes were sold in the first three months.
And if this pace is maintained throughout the year, sales of new homes could be comparable to last year's 14,688 units, CBRE says.
But resistance to projects priced at hefty premiums of 20 per cent or more to nearby projects is beginning to set in. DMG's Mr Lee said this is especially the case in the mass and mid-market segments, where prices have already passed their last peaks.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
NEW PROJECTS
Far East Organization's Altez (left) has a substantial number of units ranging from 527 to 816 square feet and Hong Leong Holdings' 76 Shenton has unit sizes ranging from 596 to 624 square feet.
BT : Ex-bank owner again fails to pay Ngee Ann rent
Business Times - 08 May 2010
Ex-bank owner again fails to pay Ngee Ann rent
His firm's furniture, movable property to be auctioned in May: sources
By FELDA CHAY AND KAREN NG
ONCE prominent bank owner Agus Anwar has failed to make the initial payment for rent owed to Ngee Ann Development despite promising to do so by April 30, sources told BT.
BT understands that Mr Agus, who used to own banks in Indonesia, had proposed on April 28 to make a partial payment of the $1.2 million that his investment holding firm, Investoasia, owes Ngee Ann Development. The proposal was made just as the landlord was about to auction Investoasia's property to offset the unpaid rent. Ngee Ann Development then called off the auction.
Sources told BT that an auction to sell Investoasia's furniture and movable property will now be held in late May, and Mr Agus is currently negotiating with Ngee Ann Development on making payments for the outstanding rent.
This is not the first time the investment holding firm has failed on its promise to pay up. According to sources, Mr Agus had made numerous promises to pay the arrears owed, such as proposing an instalment plan, but did not make payment.
Investoasia's repeated failure to pay up prompted Ngee Ann Development to file a suit against it in February this year.
According to court documents, Investoasia owes Ngee Ann Development rent for two offices it occupied on the 24th and 25th storeys of Ngee Ann City's Tower A.
It owes Ngee Ann Development 13 months' rent amounting to about $900,000 for the 24th-floor office. It also has to pay the landlord additional rent after failing to hand over the office despite a notice to do so by Dec 11 last year.
Ngee Ann Development then seized the office - and Investoasia's property in it - through a court order issued on April 1.
Investoasia also owes Ngee Ann Development another $190,000 for office space it rented on the 25th floor between September and November 2008.
The current suit is among the many filed by creditors against Mr Agus and the firms controlled by him and his family.
Last December, he applied for a stay of bankruptcy proceedings, saying that he was looking to raise income from certain sources. His application was turned down - a decision he is appealing against.
Indonesian-born Mr Agus, now in his late 50s, moved here in 2000 to start afresh amid the fallout from the 1997 financial crisis. He became a Singapore citizen in 2004, the year news reports quoted Indonesian officials as saying that he owed the Indonesian government 3.2 trillion rupiah.
The money, equivalent to $633 million at the time, was said to have been used to bail out two of his Indonesia-based banks, which collapsed as a result of the 1997 financial crisis.
The banks, Bank Istimarat and Bank Pelita, are now defunct. According to the Indonesian Bank Restructuring Agency (Ibra), the two banks misused the Indonesian government's emergency loan.
Data from the Accounting and Corporate Regulatory Authority (Acra) show that Investoasia was set up in 2001 and is controlled by Mr Agus and Marcel Tjia Han Liong, chief executive and executive director of Interra Resources, a petroleum exploration and production company which is listed in Singapore and Australia. The Ngee Ann City office on the 24th floor is still listed as its registered office.
The latest financial data provided by Investoasia to Acra dates back to 2006, where it reported a $24 million loss - after tax from continuing operations - and $4.8 million in revenue.
Companies it has an interest in include Keppel Telecommunications and Transportation (Keppel T&T), in which it had a 6.5 per cent stake, according to Keppel T&T's 2009 annual report.
In January this year, High Court judge Lee Seiu Kin ordered Mr Agus to repay a $10.5 million loan he received in 2008 from Orion Oil, an investment firm.
The loan, secured through a mortgage on assets such as shares in Keppel T&T, was to have been repaid in three months with $500,000 in interest. However, Mr Agus filed a suit in court arguing that the loan was void because Orion Oil did not have a licence to lend money. This claim was rejected by Justice Lee. Mr Agus is appealing against the decision.
Last November, Mr Agus's two sons were ordered by the High Court to pay $15 million that their father owes to the local branch of Societe Generale Bank & Trust after they signed documents agreeing to be liable for his debts.
The sons appealed against the summary judgement and the Court of Appeal allowed the appeal at a hearing last month. As a result, the case will proceed to be heard in a full trial at a later date, where the facts of the case will be examined.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Ex-bank owner again fails to pay Ngee Ann rent
His firm's furniture, movable property to be auctioned in May: sources
By FELDA CHAY AND KAREN NG
ONCE prominent bank owner Agus Anwar has failed to make the initial payment for rent owed to Ngee Ann Development despite promising to do so by April 30, sources told BT.
BT understands that Mr Agus, who used to own banks in Indonesia, had proposed on April 28 to make a partial payment of the $1.2 million that his investment holding firm, Investoasia, owes Ngee Ann Development. The proposal was made just as the landlord was about to auction Investoasia's property to offset the unpaid rent. Ngee Ann Development then called off the auction.
Sources told BT that an auction to sell Investoasia's furniture and movable property will now be held in late May, and Mr Agus is currently negotiating with Ngee Ann Development on making payments for the outstanding rent.
This is not the first time the investment holding firm has failed on its promise to pay up. According to sources, Mr Agus had made numerous promises to pay the arrears owed, such as proposing an instalment plan, but did not make payment.
Investoasia's repeated failure to pay up prompted Ngee Ann Development to file a suit against it in February this year.
According to court documents, Investoasia owes Ngee Ann Development rent for two offices it occupied on the 24th and 25th storeys of Ngee Ann City's Tower A.
It owes Ngee Ann Development 13 months' rent amounting to about $900,000 for the 24th-floor office. It also has to pay the landlord additional rent after failing to hand over the office despite a notice to do so by Dec 11 last year.
Ngee Ann Development then seized the office - and Investoasia's property in it - through a court order issued on April 1.
Investoasia also owes Ngee Ann Development another $190,000 for office space it rented on the 25th floor between September and November 2008.
The current suit is among the many filed by creditors against Mr Agus and the firms controlled by him and his family.
Last December, he applied for a stay of bankruptcy proceedings, saying that he was looking to raise income from certain sources. His application was turned down - a decision he is appealing against.
Indonesian-born Mr Agus, now in his late 50s, moved here in 2000 to start afresh amid the fallout from the 1997 financial crisis. He became a Singapore citizen in 2004, the year news reports quoted Indonesian officials as saying that he owed the Indonesian government 3.2 trillion rupiah.
The money, equivalent to $633 million at the time, was said to have been used to bail out two of his Indonesia-based banks, which collapsed as a result of the 1997 financial crisis.
The banks, Bank Istimarat and Bank Pelita, are now defunct. According to the Indonesian Bank Restructuring Agency (Ibra), the two banks misused the Indonesian government's emergency loan.
Data from the Accounting and Corporate Regulatory Authority (Acra) show that Investoasia was set up in 2001 and is controlled by Mr Agus and Marcel Tjia Han Liong, chief executive and executive director of Interra Resources, a petroleum exploration and production company which is listed in Singapore and Australia. The Ngee Ann City office on the 24th floor is still listed as its registered office.
The latest financial data provided by Investoasia to Acra dates back to 2006, where it reported a $24 million loss - after tax from continuing operations - and $4.8 million in revenue.
Companies it has an interest in include Keppel Telecommunications and Transportation (Keppel T&T), in which it had a 6.5 per cent stake, according to Keppel T&T's 2009 annual report.
In January this year, High Court judge Lee Seiu Kin ordered Mr Agus to repay a $10.5 million loan he received in 2008 from Orion Oil, an investment firm.
The loan, secured through a mortgage on assets such as shares in Keppel T&T, was to have been repaid in three months with $500,000 in interest. However, Mr Agus filed a suit in court arguing that the loan was void because Orion Oil did not have a licence to lend money. This claim was rejected by Justice Lee. Mr Agus is appealing against the decision.
Last November, Mr Agus's two sons were ordered by the High Court to pay $15 million that their father owes to the local branch of Societe Generale Bank & Trust after they signed documents agreeing to be liable for his debts.
The sons appealed against the summary judgement and the Court of Appeal allowed the appeal at a hearing last month. As a result, the case will proceed to be heard in a full trial at a later date, where the facts of the case will be examined.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Moves to cool property market effective: China official
Business Times - 08 May 2010
Moves to cool property market effective: China official
(Beijing)
CHINA'S recent measures to rein in soaring property prices had been effective in stabilising the real estate market, a top housing official said yesterday during a rare online chat with Internet users.
'The trend of excessively fast rising residential property prices in some cities has been curbed, sparking a wide, positive response in society,' Qi Ji, vice minister of housing and urban-rural development, told Web users.
The official also warned excessive increases in property prices posed a risk to 'living standards, security of the financial system and social harmony and stability'.
The online discussion attracted hundreds of questions from Web users, highlighting growing fears that China's property market was at risk of overheating.
Beijing has introduced a series of measures in recent weeks to cool soaring prices amid growing complaints they are out of the reach of many Chinese people.
Questions posted on the central government's website covered a range of issues such as the lack of affordable housing and corruption among officials.
One Web user with the name 'Give Me Hope' complained he and his wife could not afford to buy an apartment in a second-tier city and were jealous of 'house slaves', referring to people with a mortgage.
'We cannot afford the down-payment at all, particularly after the issuance of the new policy requiring a down-payment of at least 30 per cent,' he wrote.
Prices in major cities rose 11.7 per cent year-on-year in March, the fastest pace since a nationwide survey was widened to 70 cities in July 2005, official data show.
At the Beijing Real Estate Expo last month, the average price of a new apartment in the Chinese capital was 21,164 yuan (S$4,332) per square metre, double that of last year, state media said. That means a 90-square-metre apartment in Beijing would cost 1.9 million yuan, compared with the average per capita income of 17,175 yuan in 2009.
A government-backed survey showed consumer confidence in the first quarter hit the highest level since 2007 but people were less willing to spend money, possibly due to rising property prices, state media said yesterday.
It is rare for Chinese government officials to chat directly to Web users.
In February, Premier Wen Jiabao took part in an online discussion ahead of the country's annual parliamentary session in March - only the second time he had ever done so.
China has the world's largest online population with at least 404 million users, according to state media.
The Internet in China is also regarded as one of the most heavily censored in the world, with the communist authorities seeking to block a wide range of issues they believe may threaten their rule. -- AFP
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Moves to cool property market effective: China official
(Beijing)
CHINA'S recent measures to rein in soaring property prices had been effective in stabilising the real estate market, a top housing official said yesterday during a rare online chat with Internet users.
'The trend of excessively fast rising residential property prices in some cities has been curbed, sparking a wide, positive response in society,' Qi Ji, vice minister of housing and urban-rural development, told Web users.
The official also warned excessive increases in property prices posed a risk to 'living standards, security of the financial system and social harmony and stability'.
The online discussion attracted hundreds of questions from Web users, highlighting growing fears that China's property market was at risk of overheating.
Beijing has introduced a series of measures in recent weeks to cool soaring prices amid growing complaints they are out of the reach of many Chinese people.
Questions posted on the central government's website covered a range of issues such as the lack of affordable housing and corruption among officials.
One Web user with the name 'Give Me Hope' complained he and his wife could not afford to buy an apartment in a second-tier city and were jealous of 'house slaves', referring to people with a mortgage.
'We cannot afford the down-payment at all, particularly after the issuance of the new policy requiring a down-payment of at least 30 per cent,' he wrote.
Prices in major cities rose 11.7 per cent year-on-year in March, the fastest pace since a nationwide survey was widened to 70 cities in July 2005, official data show.
At the Beijing Real Estate Expo last month, the average price of a new apartment in the Chinese capital was 21,164 yuan (S$4,332) per square metre, double that of last year, state media said. That means a 90-square-metre apartment in Beijing would cost 1.9 million yuan, compared with the average per capita income of 17,175 yuan in 2009.
A government-backed survey showed consumer confidence in the first quarter hit the highest level since 2007 but people were less willing to spend money, possibly due to rising property prices, state media said yesterday.
It is rare for Chinese government officials to chat directly to Web users.
In February, Premier Wen Jiabao took part in an online discussion ahead of the country's annual parliamentary session in March - only the second time he had ever done so.
China has the world's largest online population with at least 404 million users, according to state media.
The Internet in China is also regarded as one of the most heavily censored in the world, with the communist authorities seeking to block a wide range of issues they believe may threaten their rule. -- AFP
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
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