Priced out of Singapore?
As bids for private and government land reach record highs, where can smaller property developers go?
05:55 AM May 13, 2010
by Ephraim Seow ephraimseow@mediacorp.com.sg
SINGAPORE - As tender bids heat up here, many small-sized property developers are seeing themselves priced out by big players and foreign firms. This has made it more difficult for these smaller developers to get their hands on land for development - a situation that could put their businesses at risk, and things do not improve.
Bid prices and the number of bidders escalated to record highs in the latest tender results for government land - and the gap between the big players' and smaller firms' bids are stark.
For instance, boutique property developers like Invest-Ho Properties had submitted a $9.1 million bid for a land parcel at Tampines Road but lost out to the highest tender of $16.25 million by Fragrance Properties.
Invest-Ho Properties Group manager Edwin Ho said it was its first time bidding for a land parcel under the Government Land Sales (GLS) Programme, as buying freehold land and private land has become more expensive.
Adding salt to the wound, these developers are also feeling the pinch from the entry of foreign developers looking to expand here - driving land prices even higher.
"With the current Chinese tightening measures, some Chinese developers are moving to familiar overseas markets to capitalise on their reserves of cash," said Mr Colin Tan, Chesterton Suntec International research and consultancy director.
Analysts said that if the trend continues, the industry could see a major shake-up that could drive small developers to look elsewhere for business opportunities.
"It's a little difficult for them to go for en bloc (sales) because some of the prices are very high. As a result, they will turn to land sales - and if the Government does not sell enough of such land, it will affect their businesses," said Ngee Ann Polytechnic real estate lecturer Nicholas Mak.
Owner expectations from collective sales also pose a challenge for small developers, said Mr Joseph Tan, executive director of property consultancy firm CB Richard Ellis. "The gestation period is longer and by the time the land is available, the market and pricing may have changed," he said.
But while small and medium property developers may find options with GLS sites, the number of such lands that may be "palatable" to them are limited, said Mr Mak.
The latest tender for the land parcel at Simei Street 3 garnered 18 bids, with CEL Development Pte Ltd submitting the highest bid at $152.69 million by. The parcel is one of the smallest residential sites launched under the GLS in the first half of this year.
Apart from forging joint ventures, some small developers are setting their sights to acquiring land overseas as market watchers say the situation could go even dire for them.
But the road will hardly be a smooth one even with such alternatives as joint ventures requiring competitors to work together will be difficult for smaller companies run by families or centered on personalities," said Mr Colin Tan.
As for overseas markets, he said smaller developers face the risks of unfamiliarity and inexperience.
For some, they would prefer to wait on the sidelines and rely on other means to generate business.
Vigcon Construction which made and lost its bid of about $9.9 million for the Tampines Road site said that the company has a budget of just "a few millions" for tenders.
Its director, Mr Teo Tiow Guan, said as property development is not its core business, the company can afford to wait for land parcels that could be avaliable and are within their means.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
Thursday, May 13, 2010
BT : CPF interest rate for members' OA to remain at 2.5%
Business Times - 13 May 2010
CPF interest rate for members' OA to remain at 2.5%
THE Central Provident Fund Board said yesterday that it will continue to pay 2.5 per cent interest per annum for members' CPF savings in their Ordinary Account (OA) from July 1 to Sept 30.
The rate of 2.5 per cent was decided upon despite the computed CPF interest rate of 0.41 per cent per annum, which is derived from the major local banks' interest rates for the three-month period from February to end-April.
The CPF Board explained that this is because the CPF Act provides for a minimum CPF interest rate of 2.5 per cent per annum.
The concessionary interest rate for an HDB mortgage loan, which is pegged at 0.1 percentage point above the CPF interest rate for the OA, will remain unchanged at 2.6 per cent per annum for the same period.
In addition, an extra one per cent interest will continue to be paid on the first $60,000 of a member's combined balances, with up to $20,000 from the OA.
The extra interest from the Ordinary Account will go into the member's Special or Retirement Account to enhance his retirement savings.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
CPF interest rate for members' OA to remain at 2.5%
THE Central Provident Fund Board said yesterday that it will continue to pay 2.5 per cent interest per annum for members' CPF savings in their Ordinary Account (OA) from July 1 to Sept 30.
The rate of 2.5 per cent was decided upon despite the computed CPF interest rate of 0.41 per cent per annum, which is derived from the major local banks' interest rates for the three-month period from February to end-April.
The CPF Board explained that this is because the CPF Act provides for a minimum CPF interest rate of 2.5 per cent per annum.
The concessionary interest rate for an HDB mortgage loan, which is pegged at 0.1 percentage point above the CPF interest rate for the OA, will remain unchanged at 2.6 per cent per annum for the same period.
In addition, an extra one per cent interest will continue to be paid on the first $60,000 of a member's combined balances, with up to $20,000 from the OA.
The extra interest from the Ordinary Account will go into the member's Special or Retirement Account to enhance his retirement savings.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Pulau Sebarok to be site of petrochemicals storage
Business Times - 13 May 2010
Pulau Sebarok to be site of petrochemicals storage
EPC tender for the structures to go out as early as year-end or early next year
By RONNIE LIM
SINGAPORE is going ahead to build floating oil / petrochemicals storage at Pulau Sebarok.
JTC Corporation is now getting a consultant to prepare the engineering, procurement and construction (EPC) tender for the very large floating structures (VLFS), with the tender possibly going out as early as year-end or early next year.
The floating storage will help boost supply of oil/ petrochemicals storage needed in Singapore's oil refining/trading hub.
With the shortage of land here on one hand, and increased demand for oil storage by traders on the other, JTC also recently embarked on building the $890 million first phase of Jurong Rock Cavern to store oil underground.
The corporation yesterday put out a notice seeking a multi-disciplinary team of consultants 'to develop the preliminary structural conceptual design and construct the VLFS storage facility at the proposed site at Pulau Sebarok'.
This follows its completion of feasibility studies on the VLFS in March this year.
Phase one, which started in 2007, and which developed a preliminary structural conceptual design of an attached-to-land VLFS storage, progressed to phase two - covering areas like environmental impact, marine soil investigation and engineering surveys and sea current monitoring and metocean design data analysis.
The development of the VLFS will now proceed in four stages, according to the latest JTC 'Expression of Interest' document.
Under stage one, the appointed consultant will review the preliminary structural conceptual design of the floating storage and redesign it such that the VLFS will have the flexibility of being constructed from concrete or steel. It will also need to provide cost comparisons for the two.
Stage two involves preparing tender documents for the calling of the EPC tender as well as that for the environmental management and monitoring plan; while stage three covers calling and evaluation of the tender; and stage four, the VLFS construction and completion.
Given the target completion dates set by JTC, the EPC tenders could go out as soon as this year-end or early next year.
The chosen site, Pulau Sebarok, is currently used for onshore storage by Dutch terminal operator Vopak and PetroChina- owned Singapore Petroleum Company. It is not far from Jurong Island, Singapore's main oil / petrochemicals hub.
JTC studies earlier ascertained that to be economical, the minimum storage capacity of a VLFS should be 300,000 cubic metres, or equivalent to that of a very large crude carrier.
The VLFS would comprise two rectangular modules, each measuring 180m by 80m by 15m, and with 150,000 cu m capacity.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Plans afloat: Oil tankers congregating in front of Pulau Sebarok, a 46.8-hectare island located approximately 9km off the southern coastline of Singapore
Pulau Sebarok to be site of petrochemicals storage
EPC tender for the structures to go out as early as year-end or early next year
By RONNIE LIM
SINGAPORE is going ahead to build floating oil / petrochemicals storage at Pulau Sebarok.
JTC Corporation is now getting a consultant to prepare the engineering, procurement and construction (EPC) tender for the very large floating structures (VLFS), with the tender possibly going out as early as year-end or early next year.
The floating storage will help boost supply of oil/ petrochemicals storage needed in Singapore's oil refining/trading hub.
With the shortage of land here on one hand, and increased demand for oil storage by traders on the other, JTC also recently embarked on building the $890 million first phase of Jurong Rock Cavern to store oil underground.
The corporation yesterday put out a notice seeking a multi-disciplinary team of consultants 'to develop the preliminary structural conceptual design and construct the VLFS storage facility at the proposed site at Pulau Sebarok'.
This follows its completion of feasibility studies on the VLFS in March this year.
Phase one, which started in 2007, and which developed a preliminary structural conceptual design of an attached-to-land VLFS storage, progressed to phase two - covering areas like environmental impact, marine soil investigation and engineering surveys and sea current monitoring and metocean design data analysis.
The development of the VLFS will now proceed in four stages, according to the latest JTC 'Expression of Interest' document.
Under stage one, the appointed consultant will review the preliminary structural conceptual design of the floating storage and redesign it such that the VLFS will have the flexibility of being constructed from concrete or steel. It will also need to provide cost comparisons for the two.
Stage two involves preparing tender documents for the calling of the EPC tender as well as that for the environmental management and monitoring plan; while stage three covers calling and evaluation of the tender; and stage four, the VLFS construction and completion.
Given the target completion dates set by JTC, the EPC tenders could go out as soon as this year-end or early next year.
The chosen site, Pulau Sebarok, is currently used for onshore storage by Dutch terminal operator Vopak and PetroChina- owned Singapore Petroleum Company. It is not far from Jurong Island, Singapore's main oil / petrochemicals hub.
JTC studies earlier ascertained that to be economical, the minimum storage capacity of a VLFS should be 300,000 cubic metres, or equivalent to that of a very large crude carrier.
The VLFS would comprise two rectangular modules, each measuring 180m by 80m by 15m, and with 150,000 cu m capacity.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Plans afloat: Oil tankers congregating in front of Pulau Sebarok, a 46.8-hectare island located approximately 9km off the southern coastline of Singapore
ST : S'pore property prices: Here's a key worry
May 13, 2010
ASK: NUS ECONOMISTS
S'pore property prices: Here's a key worry
We begin today a new feature, ASK: NUS ECONOMISTS. Write in to stask@sph.com.sg with whatever questions you might have on economics, international or domestic. Each week, one or two questions will be selected to be answered by a panel of National University of Singapore economists.
By Ivan Png
· With real estate prices rebounding and new launches selling out, is the Singapore property market overheating again?
LAST month, my next-door neighbour dropped by with a requisition to convene an extraordinary general meeting of our condominium. For what else but an en-bloc sale? The dream of some owners and the nightmare of others.
The key to real estate prices is affordability. In the late 1980s, Japanese real estate prices shot up to the point that banks were reputed to have extended three-generation mortgages.
These were loans to be repaid over three generations! Inevitably, the bubble burst and property prices have yet to recover to their peaks.
In the United States, the real estate boom earlier this decade was the proximate cause of the Great Recession. Banks lent to people who could not afford the repayments. Buying real estate made sense only because purchasers and lenders assumed that prices would just continue going up.
What about the current situation in Singapore? Yes, the prices of private housing have shaken off the Great Recession and overtaken the recent 2007-08 peak, and are heading towards 1995-96 levels. However, the incomes of the higher-income earners have also increased.
The red graph in the chart here represents the trend in the price of private property and the green graph represents the 90th percentile of household income (10 per cent of households would have a higher income than the 90th percentile).
Last year, the income from work of the 90th percentile household was $14,495 per month, or about $174,000 a year.
The blue graph represents affordability - the price of housing relative to the 90th percentile of household income. On a relative basis, the situation still looks better than in 2007 and much better than in the heady days of 1995-96.
However, more worrying is affordability on an absolute basis. In the first quarter of this year, the price of the average condo unit sold was $1.497 million. Supposing a buyer puts a 20 per cent down-payment, he or she would need to borrow $1.197 million.
That is 6.88 times the income from work of the 90th percentile household.
By contrast, I recall that when I started my professional life in the US, in the boring days before the sub-prime crisis, a common rule of thumb in lending was that a mortgage loan should not exceed three times a borrower's income.
The writer is the Lim Kim San Professor at the NUS Business School, and Professor of Information Systems and Economics at the National University of Singapore.
A condominium under construction on Minbu Road. There is concern that with real estate prices rebounding and new launches selling out, the Singapore property market could overheat again. -- ST PHOTO: ALPHONSUS CHERN
ASK: NUS ECONOMISTS
S'pore property prices: Here's a key worry
We begin today a new feature, ASK: NUS ECONOMISTS. Write in to stask@sph.com.sg with whatever questions you might have on economics, international or domestic. Each week, one or two questions will be selected to be answered by a panel of National University of Singapore economists.
By Ivan Png
· With real estate prices rebounding and new launches selling out, is the Singapore property market overheating again?
LAST month, my next-door neighbour dropped by with a requisition to convene an extraordinary general meeting of our condominium. For what else but an en-bloc sale? The dream of some owners and the nightmare of others.
The key to real estate prices is affordability. In the late 1980s, Japanese real estate prices shot up to the point that banks were reputed to have extended three-generation mortgages.
These were loans to be repaid over three generations! Inevitably, the bubble burst and property prices have yet to recover to their peaks.
In the United States, the real estate boom earlier this decade was the proximate cause of the Great Recession. Banks lent to people who could not afford the repayments. Buying real estate made sense only because purchasers and lenders assumed that prices would just continue going up.
What about the current situation in Singapore? Yes, the prices of private housing have shaken off the Great Recession and overtaken the recent 2007-08 peak, and are heading towards 1995-96 levels. However, the incomes of the higher-income earners have also increased.
The red graph in the chart here represents the trend in the price of private property and the green graph represents the 90th percentile of household income (10 per cent of households would have a higher income than the 90th percentile).
Last year, the income from work of the 90th percentile household was $14,495 per month, or about $174,000 a year.
The blue graph represents affordability - the price of housing relative to the 90th percentile of household income. On a relative basis, the situation still looks better than in 2007 and much better than in the heady days of 1995-96.
However, more worrying is affordability on an absolute basis. In the first quarter of this year, the price of the average condo unit sold was $1.497 million. Supposing a buyer puts a 20 per cent down-payment, he or she would need to borrow $1.197 million.
That is 6.88 times the income from work of the 90th percentile household.
By contrast, I recall that when I started my professional life in the US, in the boring days before the sub-prime crisis, a common rule of thumb in lending was that a mortgage loan should not exceed three times a borrower's income.
The writer is the Lim Kim San Professor at the NUS Business School, and Professor of Information Systems and Economics at the National University of Singapore.
A condominium under construction on Minbu Road. There is concern that with real estate prices rebounding and new launches selling out, the Singapore property market could overheat again. -- ST PHOTO: ALPHONSUS CHERN
ST : Demand for high-end homes may lose steam
May 13, 2010
Demand for high-end homes may lose steam
Investors turning wary as doubts are cast over global economic upturn
By Esther Teo
CELEBRATIONS for the much-anticipated full comeback of the luxury end of the property market this year might just have to be put on hold.
The sector's nascent recovery is looking a little shaky as investors grapple with lingering fears over the Greek debt crisis and general uncertainty still plaguing the global economy.
Analysts say that despite increasing demand and rising prices for upmarket residences since last year, investors might be starting to get wary again as the shaky European economy raises doubts as to whether the global recovery can be sustained.
'It is a fairly uncertain situation. We don't know if the crisis is really over or if other countries like Spain and Portugal could require more money,' Ngee Ann Polytechnic real estate lecturer Nicholas Mak said. '(The Greek debt crisis) puts a damper on sentiment, and if it continues affecting the global financial market, it could impact investors' available funds.'
The recovery so far has been impressive.
The high-end sector with homes in the core central region (CCR) was the star performer this year with first-quarter sales numbering 1,927 - or 44 per cent of total new homes sold - and a 4.4 per cent increase in prices.
The CCR includes prime districts, the financial district and Sentosa.
But analysts are more cautious, and expect the high-end segment to track rather than outperform the wider market.
For example, sales of condos at Sentosa Cove have been slow.
In releasing its first-quarter results yesterday, City Developments (CDL) said the 228-unit The Residences at W Singapore Sentosa Cove had sold about half of the 56 units launched in March.
The project has also been marketed in Hong Kong, Jakarta and Shanghai. The group says it still has confidence in Sentosa's medium to long-term potential.
'When the W Singapore Sentosa Cove hotel is operational, the property value will be enhanced, and there will be a premium attached to the branded residences,' CDL said in its results statement.
Marina Bay Suites - a 221-unit project with a 99-year lease - has seen a 100 per cent take-up of the 128 units it has released so far at two previews.
But while it released 90 units at its first preview last November, the figure was cut to 36 at its second preview late last month.
Raffles Quay Asset Management - the manager of the project - said that 'units launched were due to requests from guests who attended the preview'.
Mr Mak said the smaller second preview reflected weaker demand, as a project would be viewed poorly if its released units did not sell well.
However, he also noted an increase in psf prices the second time around.
SC Global's 41-unit Seven Palms has sold nine of the 10 units it has released to date. It was first launched last October, but no units have been launched this year. The developer has no current plans for further launches this year.
'As a general trend, however, we have seen an increasing number of high net worth individuals seek out tangible assets such as prime properties which are more stable and less prone to the volatility of the stock market,' a spokesman said.
Mr Colin Tan, research and consultancy director of Chesterton Suntec International, said developers often time project launches according to market conditions.
'Investors are taking a wait-and-see approach, especially with the sudden drop in the Dow Jones and the Greek crisis causing nervousness among some...
Sales might dip a bit for the moment, but will pick up again once the markets sort themselves out,' he said.
Showflats had gone quiet the past weekend in a 'drastic change of sentiment', as investors usually held back when markets were volatile, he said.
The lower than expected sales simply reflected weaker demand since the cash of the wealthy, and even their bonuses, are often tied to the health of the global economy, Mr Mak said.
However, DTZ's head of South-east Asia research Chua Chor Hoon believes that demand for luxury residences will be sustained as most of these home buyers are foreigners from Asian countries such as Indonesia, China and India, which are experiencing strong growth.
'There is caution and there is uncertainty, but the effect on the world economy remains to be seen...The recent European rescue package might be able to soothe fears in the market,' she said.
Most analysts, however, still expect prices for posh residences to trend upwards. Mr Mak and Ms Chua expect a 10 to 15 per cent rise in prices this year, while Chesterton's Mr Tan is less bullish with a prediction of 10 per cent or less.
'Even without the Greek crisis, it has been a struggle to reach previous price highs. The Greek crisis has now made it even harder to advance on the price front... (and) brought investors' attention to the fact that economic fundamentals are still a long way off from catching up with the price increases,' Mr Tan said.
esthert@sph.com.sg
Demand for high-end homes may lose steam
Investors turning wary as doubts are cast over global economic upturn
By Esther Teo
CELEBRATIONS for the much-anticipated full comeback of the luxury end of the property market this year might just have to be put on hold.
The sector's nascent recovery is looking a little shaky as investors grapple with lingering fears over the Greek debt crisis and general uncertainty still plaguing the global economy.
Analysts say that despite increasing demand and rising prices for upmarket residences since last year, investors might be starting to get wary again as the shaky European economy raises doubts as to whether the global recovery can be sustained.
'It is a fairly uncertain situation. We don't know if the crisis is really over or if other countries like Spain and Portugal could require more money,' Ngee Ann Polytechnic real estate lecturer Nicholas Mak said. '(The Greek debt crisis) puts a damper on sentiment, and if it continues affecting the global financial market, it could impact investors' available funds.'
The recovery so far has been impressive.
The high-end sector with homes in the core central region (CCR) was the star performer this year with first-quarter sales numbering 1,927 - or 44 per cent of total new homes sold - and a 4.4 per cent increase in prices.
The CCR includes prime districts, the financial district and Sentosa.
But analysts are more cautious, and expect the high-end segment to track rather than outperform the wider market.
For example, sales of condos at Sentosa Cove have been slow.
In releasing its first-quarter results yesterday, City Developments (CDL) said the 228-unit The Residences at W Singapore Sentosa Cove had sold about half of the 56 units launched in March.
The project has also been marketed in Hong Kong, Jakarta and Shanghai. The group says it still has confidence in Sentosa's medium to long-term potential.
'When the W Singapore Sentosa Cove hotel is operational, the property value will be enhanced, and there will be a premium attached to the branded residences,' CDL said in its results statement.
Marina Bay Suites - a 221-unit project with a 99-year lease - has seen a 100 per cent take-up of the 128 units it has released so far at two previews.
But while it released 90 units at its first preview last November, the figure was cut to 36 at its second preview late last month.
Raffles Quay Asset Management - the manager of the project - said that 'units launched were due to requests from guests who attended the preview'.
Mr Mak said the smaller second preview reflected weaker demand, as a project would be viewed poorly if its released units did not sell well.
However, he also noted an increase in psf prices the second time around.
SC Global's 41-unit Seven Palms has sold nine of the 10 units it has released to date. It was first launched last October, but no units have been launched this year. The developer has no current plans for further launches this year.
'As a general trend, however, we have seen an increasing number of high net worth individuals seek out tangible assets such as prime properties which are more stable and less prone to the volatility of the stock market,' a spokesman said.
Mr Colin Tan, research and consultancy director of Chesterton Suntec International, said developers often time project launches according to market conditions.
'Investors are taking a wait-and-see approach, especially with the sudden drop in the Dow Jones and the Greek crisis causing nervousness among some...
Sales might dip a bit for the moment, but will pick up again once the markets sort themselves out,' he said.
Showflats had gone quiet the past weekend in a 'drastic change of sentiment', as investors usually held back when markets were volatile, he said.
The lower than expected sales simply reflected weaker demand since the cash of the wealthy, and even their bonuses, are often tied to the health of the global economy, Mr Mak said.
However, DTZ's head of South-east Asia research Chua Chor Hoon believes that demand for luxury residences will be sustained as most of these home buyers are foreigners from Asian countries such as Indonesia, China and India, which are experiencing strong growth.
'There is caution and there is uncertainty, but the effect on the world economy remains to be seen...The recent European rescue package might be able to soothe fears in the market,' she said.
Most analysts, however, still expect prices for posh residences to trend upwards. Mr Mak and Ms Chua expect a 10 to 15 per cent rise in prices this year, while Chesterton's Mr Tan is less bullish with a prediction of 10 per cent or less.
'Even without the Greek crisis, it has been a struggle to reach previous price highs. The Greek crisis has now made it even harder to advance on the price front... (and) brought investors' attention to the fact that economic fundamentals are still a long way off from catching up with the price increases,' Mr Tan said.
esthert@sph.com.sg
ST : Courts is Orchard OG's new tenant
May 13, 2010
Courts is Orchard OG's new tenant
By Harsha Jethnani
RETAIL giant Courts will make its Orchard Road debut with an outlet in the OG Building near Somerset MRT that houses the John Little store.
High rents had deterred Courts from setting up shop in the Orchard area but the availability of cheaper space has enticed it to the prime shopping district.
Landlord OG had mentioned in earlier reports that the guide price was $10 per sq ft, with total rent of about $443,150 per month.
The retailer finalised a nine-year lease on Tuesday after negotiations which began last December and plans to open the store in July. The John Little lease expires on Sunday.
Chief executive Terry O'Connor said yesterday that he was enthusiastic about the site opposite the new 313@Somerset and Orchard Central malls: 'It's on the street with thousands of people walking past every day.'
With the Singapore Tourism Board expecting tourist arrivals of 11.5 million to 12.5 million this year, Courts believes that this is the time to 'ride on the uptrend to capture city and tourist shoppers', added Mr O'Connor.
Courts will open an eight-storey shop of about 44,000 sq ft. As in standard department stores, each floor will have its own theme and products, from bedding items to electrical appliances.
Courts will hold a pre-opening sale starting on May 19 while renovations take place.
The retailer will also open a store at the Nex Shopping mall in Serangoon this year.
The group entity, Courts Asia, operates 55 stores, nine in Singapore and 46 in Malaysia.
Courts is Orchard OG's new tenant
By Harsha Jethnani
RETAIL giant Courts will make its Orchard Road debut with an outlet in the OG Building near Somerset MRT that houses the John Little store.
High rents had deterred Courts from setting up shop in the Orchard area but the availability of cheaper space has enticed it to the prime shopping district.
Landlord OG had mentioned in earlier reports that the guide price was $10 per sq ft, with total rent of about $443,150 per month.
The retailer finalised a nine-year lease on Tuesday after negotiations which began last December and plans to open the store in July. The John Little lease expires on Sunday.
Chief executive Terry O'Connor said yesterday that he was enthusiastic about the site opposite the new 313@Somerset and Orchard Central malls: 'It's on the street with thousands of people walking past every day.'
With the Singapore Tourism Board expecting tourist arrivals of 11.5 million to 12.5 million this year, Courts believes that this is the time to 'ride on the uptrend to capture city and tourist shoppers', added Mr O'Connor.
Courts will open an eight-storey shop of about 44,000 sq ft. As in standard department stores, each floor will have its own theme and products, from bedding items to electrical appliances.
Courts will hold a pre-opening sale starting on May 19 while renovations take place.
The retailer will also open a store at the Nex Shopping mall in Serangoon this year.
The group entity, Courts Asia, operates 55 stores, nine in Singapore and 46 in Malaysia.
ST : How the rates here are determined
May 13, 2010
How the rates here are determined
IN MANY countries, central banks determine interest rates with the aim of delivering low and stable inflation, and in some cases to deflate developing asset bubbles.
But Singapore is different. Due to the country's small size and high degree of openness, the Monetary Authority of Singapore (MAS) has found the exchange rate to be a more effective tool for controlling inflation.
But this means the MAS must give up control of the interest rate as it cannot control both at the same time. This leaves local banks to set interest rates.
There are two widely used benchmark or reference interest rates here: the Singapore Interbank Offered Rate, or Sibor, and the Swap Offer Rate, or SOR.
Both are fixed by the Association of Banks in Singapore (ABS) every day, with input from a selected panel of banks.
Sibor is the rate at which banks are willing to lend to one another. It is used as a reference rate not just in Singapore but also in Asia, and can be thought of as the Asian version of the London Interbank Offered Rate (Libor) or the Euro Interbank Offered Rate (Euribor).
SOR, on the other hand, represents the average cost of funds that banks in Singapore use for commercial lending. It also takes into account the exchange rate of the Singapore dollar against the United States dollar and so tends to be more volatile than Sibor, according to the MAS' MoneySense website.
The Sibor and SOR are influenced by market forces, particularly two key factors.
One is changes in US interest rates, which Singapore rates track. Historically, Singapore rates have run consistently lower than those in the US.
The second factor affecting interest rates here is the amount of liquidity in the banking system: Excess liquidity tends to push down short-term interest rates.
Finally, each bank also sets its own internal prime rate or board rate, which is the lowest rate at which it is willing to lend money to its best customers. Many other interest rates that a bank uses - including its deposit rates and loan rates - are based on this rate.
Banks arrive at their own prime rate after taking into account its cost of funds, operating expenses, credit risks and desired return for shareholders, according to the ABS.
How the rates here are determined
IN MANY countries, central banks determine interest rates with the aim of delivering low and stable inflation, and in some cases to deflate developing asset bubbles.
But Singapore is different. Due to the country's small size and high degree of openness, the Monetary Authority of Singapore (MAS) has found the exchange rate to be a more effective tool for controlling inflation.
But this means the MAS must give up control of the interest rate as it cannot control both at the same time. This leaves local banks to set interest rates.
There are two widely used benchmark or reference interest rates here: the Singapore Interbank Offered Rate, or Sibor, and the Swap Offer Rate, or SOR.
Both are fixed by the Association of Banks in Singapore (ABS) every day, with input from a selected panel of banks.
Sibor is the rate at which banks are willing to lend to one another. It is used as a reference rate not just in Singapore but also in Asia, and can be thought of as the Asian version of the London Interbank Offered Rate (Libor) or the Euro Interbank Offered Rate (Euribor).
SOR, on the other hand, represents the average cost of funds that banks in Singapore use for commercial lending. It also takes into account the exchange rate of the Singapore dollar against the United States dollar and so tends to be more volatile than Sibor, according to the MAS' MoneySense website.
The Sibor and SOR are influenced by market forces, particularly two key factors.
One is changes in US interest rates, which Singapore rates track. Historically, Singapore rates have run consistently lower than those in the US.
The second factor affecting interest rates here is the amount of liquidity in the banking system: Excess liquidity tends to push down short-term interest rates.
Finally, each bank also sets its own internal prime rate or board rate, which is the lowest rate at which it is willing to lend money to its best customers. Many other interest rates that a bank uses - including its deposit rates and loan rates - are based on this rate.
Banks arrive at their own prime rate after taking into account its cost of funds, operating expenses, credit risks and desired return for shareholders, according to the ABS.
BT : Shanghai may impose property tax
Business Times - 13 May 2010
Shanghai may impose property tax
City's prices seen falling as much as 40%; declines in other cities to follow
(SHANGHAI) Shanghai may impose its own residential property tax to cool price increases in China's richest city, Shanghai Securities News reported yesterday, citing unidentified people close to the government.
The steps may be introduced as early as this month, the newspaper said. The Shanghai Municipal Housing Support and Building Administration Bureau didn't respond to questions from Bloomberg when contacted by telephone.
Property prices in Shanghai may fall as much as 40 per cent if the new tax is imposed, and declines in other cities would follow, according to Wu Jianxiong, a Shanghai-based analyst at Central China Securities Holdings.
Shanghai would be the first city in China to impose its own property tax to combat speculation in the housing market and control price increases that have sparked inflation concerns in Beijing.
Real estate prices rose by a record 12.8 per cent in April from a year earlier, the National Bureau of Statistics said on Tuesday. That increase was the 'last glimmer of the setting sun' before government actions to curb prices take effect, Mr Wu said.
China has restricted pre-sales by developers, curbed loans for second and third-home purchases and, on Monday, raised the minimum reserve requirements at banks for the third time this year.
'It's very likely that we will see many real estate developers offer more discounts for newly built apartments in Shanghai in the near term,' said Lu Qilin, a Shanghai-based researcher at U-Win Real Estate Research Center.
Chinese banks can withstand a 30 per cent to 40 per cent decline in home prices, the 21st Century Business Herald reported on Monday on its website, citing unidentified bank officials. The nation's banks have finished stress tests on mortgage exposure, the Guangzhou-based newspaper said.
The idea of a city-wide property tax is 'entirely normal', the Shanghai municipal housing bureau said in an April 8 statement. Local governments can implement the tax with central government approval, it said.
China's surging property market is in its 'last madness' and speculators may retreat on caution by local authorities, Central bank adviser Li Daokui said on April 17.
The government is trying to reduce the effects of a stimulus plan and a US$1.4 trillion lending binge that revived economic growth and increased the risk of an asset bubble.
'China has plenty of demand right now, so this is no bubble in my definition,' Hang Lung Properties Ltd chairman Ronnie Chan said in a Bloomberg Television interview on Monday broadcast yesterday.
'A bubble to me, if you want to be more precise, is the huge rise in market prices in the absence of demand.
'I think the buying opportunities are ahead of us, not behind us,' he said\. \-- Bloomberg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Crowd puller: Real estate prices rose by a record 12.8 per cent in April from a year earlier, the National Bureau of Statistics said on Tuesday
Shanghai may impose property tax
City's prices seen falling as much as 40%; declines in other cities to follow
(SHANGHAI) Shanghai may impose its own residential property tax to cool price increases in China's richest city, Shanghai Securities News reported yesterday, citing unidentified people close to the government.
The steps may be introduced as early as this month, the newspaper said. The Shanghai Municipal Housing Support and Building Administration Bureau didn't respond to questions from Bloomberg when contacted by telephone.
Property prices in Shanghai may fall as much as 40 per cent if the new tax is imposed, and declines in other cities would follow, according to Wu Jianxiong, a Shanghai-based analyst at Central China Securities Holdings.
Shanghai would be the first city in China to impose its own property tax to combat speculation in the housing market and control price increases that have sparked inflation concerns in Beijing.
Real estate prices rose by a record 12.8 per cent in April from a year earlier, the National Bureau of Statistics said on Tuesday. That increase was the 'last glimmer of the setting sun' before government actions to curb prices take effect, Mr Wu said.
China has restricted pre-sales by developers, curbed loans for second and third-home purchases and, on Monday, raised the minimum reserve requirements at banks for the third time this year.
'It's very likely that we will see many real estate developers offer more discounts for newly built apartments in Shanghai in the near term,' said Lu Qilin, a Shanghai-based researcher at U-Win Real Estate Research Center.
Chinese banks can withstand a 30 per cent to 40 per cent decline in home prices, the 21st Century Business Herald reported on Monday on its website, citing unidentified bank officials. The nation's banks have finished stress tests on mortgage exposure, the Guangzhou-based newspaper said.
The idea of a city-wide property tax is 'entirely normal', the Shanghai municipal housing bureau said in an April 8 statement. Local governments can implement the tax with central government approval, it said.
China's surging property market is in its 'last madness' and speculators may retreat on caution by local authorities, Central bank adviser Li Daokui said on April 17.
The government is trying to reduce the effects of a stimulus plan and a US$1.4 trillion lending binge that revived economic growth and increased the risk of an asset bubble.
'China has plenty of demand right now, so this is no bubble in my definition,' Hang Lung Properties Ltd chairman Ronnie Chan said in a Bloomberg Television interview on Monday broadcast yesterday.
'A bubble to me, if you want to be more precise, is the huge rise in market prices in the absence of demand.
'I think the buying opportunities are ahead of us, not behind us,' he said\. \-- Bloomberg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Crowd puller: Real estate prices rose by a record 12.8 per cent in April from a year earlier, the National Bureau of Statistics said on Tuesday
ST : Could interest rates hit zero?
May 13, 2010
Could interest rates hit zero?
Not quite, say economists, but rates may fall further this year
By Robin Chan
INTEREST rates are falling but could they end up close to zero?
That was the startling situation posited in an analyst report last week - good news for mortgage holders but painful for those looking for some return on their bank deposits.
Thankfully, economists polled by The Straits Times say that the spectre of zero interest rates - seen most recently in Japan - is unlikely to occur in Singapore. But they warn rates will probably fall further this year to skirt the absolute baseline, before rising a little by year end.
The trend here is in stark contrast to the rest of Asia and Australia, where central banks are lifting rates, sometimes aggressively, to fight inflation.
Rates started falling here after the Monetary Authority of Singapore (MAS) decided last month to let the Singapore dollar rise against a basket of currencies.
The MAS had been intervening in the currency market up to that point to hold rates at the same level, and at the same time keep the Singdollar within its trading band.
Mr David Carbon, managing director for economic and currency research at DBS, has estimated that the MAS intervened to the tune of US$63 billion (S$86.9 billion), but it has now allowed the currency to appreciate and interest rates to adjust back to their actual levels.
The money market response to all this has been dramatic.
After hovering at 0.65 per cent for the past 14 months, the benchmark three-month Singapore Interbank Offer Rate (Sibor) fell 13 basis points to a new low of 0.52 per cent two weeks ago, before edging up slightly to 0.53 per cent. Sibor is the rate at which banks lend to each other and serves as a handy benchmark for all kinds of rates here, particularly mortgages.
Banks reacted to the falling Sibor by offering savings rates of a measly 0.1 to 0.2 per cent. Fixed deposits are marginally better at 0.4 to 0.6 per cent for a period of one to two years.
So a deposit of $10,000 for two years could earn you an annual interest of about $60: a few pizzas and a beer.
With such pitiful returns, investors have been looking elsewhere to put their cash. But mortgage holders are cheering as the falling Sibor means loans pinned to it have fallen as well, although some banks have raised the fixed amount that is added on to the base rate.
Others stuck in long-term mortgages are also looking to refinance for better rates, say financial planners.
'Sibor can't go to zero but it can take another step or two in that direction and seems likely to do so,' says Mr Carbon, who forecasts Sibor to bottom out at 0.43 per cent by the end of next month, and to start rising slowly to 0.61 per cent by the end of the year.
Economic issues unfolding across the globe, particularly in the United States, and the way Singapore responds mean low rates will continue for a while.
Unlike most other countries, Singapore's high dependence on exports and imports means the MAS controls monetary policy through its exchange rates. During high inflation, a stronger currency helps to make imports cheaper and so eases pressure from imported inflation.
Singapore's policy also means it tracks the interest rate policy of its major trading partners, including the US where rates are at rock bottom - between zero and 0.25 per cent.
So rates here 'are likely to remain depressed as long as US rates are low', wrote economists at Standard Chartered in a report on April 29. They expect Sibor to drop further to 0.5 per cent by the end of the second quarter and stay there for the rest of the year.
The huge Europe bailout package and continued scepticism over that region's ability to grow amid a burgeoning deficit has some analysts believing rate hikes in Asia may have to be delayed. But it may not derail a rise in the Federal Reserve's rates as economic indicators continue to point to an improving situation in the US.
That is prompting economists to tip Sibor to recover near the end of the year.
Barclays Capital economist Leong Wai Ho believes it will rise a little to 0.6 per cent by then, while OCBC economist Selena Ling sees rates rising to 0.8 per cent.
Financial advisers suggest savers could invest in mutual funds and unit trusts that are relatively low risk and have given higher returns of 2 to 3 per cent.
More sophisticated investors might try short-term bond funds, said Fundsupermart general manager Wong Sui Jau. While bonds can be seen as risky, he noted that only once in the past eight years - 2008 - did bond funds produce negative returns: 'Generally they are not volatile and are relatively low risk.'
Investors willing to take even more risk could try funds investing in Asia and emerging markets bonds.
'Currency appreciation in those countries is likely to be on a par with the Singdollar appreciation and would give a decent amount of yield,' Mr Wong said.
chanckr@sph.com.sg
--------------------------------------------------------------------------------
ALL DOWNHILL IN THE NEAR TERM
'Interest rates seem likely to continue downward in the near term... Sibor can't go to zero but it can take another step or two in that direction and seems likely to do so.'
Mr David Carbon, managing director for economic and currency research at DBS
Could interest rates hit zero?
Not quite, say economists, but rates may fall further this year
By Robin Chan
INTEREST rates are falling but could they end up close to zero?
That was the startling situation posited in an analyst report last week - good news for mortgage holders but painful for those looking for some return on their bank deposits.
Thankfully, economists polled by The Straits Times say that the spectre of zero interest rates - seen most recently in Japan - is unlikely to occur in Singapore. But they warn rates will probably fall further this year to skirt the absolute baseline, before rising a little by year end.
The trend here is in stark contrast to the rest of Asia and Australia, where central banks are lifting rates, sometimes aggressively, to fight inflation.
Rates started falling here after the Monetary Authority of Singapore (MAS) decided last month to let the Singapore dollar rise against a basket of currencies.
The MAS had been intervening in the currency market up to that point to hold rates at the same level, and at the same time keep the Singdollar within its trading band.
Mr David Carbon, managing director for economic and currency research at DBS, has estimated that the MAS intervened to the tune of US$63 billion (S$86.9 billion), but it has now allowed the currency to appreciate and interest rates to adjust back to their actual levels.
The money market response to all this has been dramatic.
After hovering at 0.65 per cent for the past 14 months, the benchmark three-month Singapore Interbank Offer Rate (Sibor) fell 13 basis points to a new low of 0.52 per cent two weeks ago, before edging up slightly to 0.53 per cent. Sibor is the rate at which banks lend to each other and serves as a handy benchmark for all kinds of rates here, particularly mortgages.
Banks reacted to the falling Sibor by offering savings rates of a measly 0.1 to 0.2 per cent. Fixed deposits are marginally better at 0.4 to 0.6 per cent for a period of one to two years.
So a deposit of $10,000 for two years could earn you an annual interest of about $60: a few pizzas and a beer.
With such pitiful returns, investors have been looking elsewhere to put their cash. But mortgage holders are cheering as the falling Sibor means loans pinned to it have fallen as well, although some banks have raised the fixed amount that is added on to the base rate.
Others stuck in long-term mortgages are also looking to refinance for better rates, say financial planners.
'Sibor can't go to zero but it can take another step or two in that direction and seems likely to do so,' says Mr Carbon, who forecasts Sibor to bottom out at 0.43 per cent by the end of next month, and to start rising slowly to 0.61 per cent by the end of the year.
Economic issues unfolding across the globe, particularly in the United States, and the way Singapore responds mean low rates will continue for a while.
Unlike most other countries, Singapore's high dependence on exports and imports means the MAS controls monetary policy through its exchange rates. During high inflation, a stronger currency helps to make imports cheaper and so eases pressure from imported inflation.
Singapore's policy also means it tracks the interest rate policy of its major trading partners, including the US where rates are at rock bottom - between zero and 0.25 per cent.
So rates here 'are likely to remain depressed as long as US rates are low', wrote economists at Standard Chartered in a report on April 29. They expect Sibor to drop further to 0.5 per cent by the end of the second quarter and stay there for the rest of the year.
The huge Europe bailout package and continued scepticism over that region's ability to grow amid a burgeoning deficit has some analysts believing rate hikes in Asia may have to be delayed. But it may not derail a rise in the Federal Reserve's rates as economic indicators continue to point to an improving situation in the US.
That is prompting economists to tip Sibor to recover near the end of the year.
Barclays Capital economist Leong Wai Ho believes it will rise a little to 0.6 per cent by then, while OCBC economist Selena Ling sees rates rising to 0.8 per cent.
Financial advisers suggest savers could invest in mutual funds and unit trusts that are relatively low risk and have given higher returns of 2 to 3 per cent.
More sophisticated investors might try short-term bond funds, said Fundsupermart general manager Wong Sui Jau. While bonds can be seen as risky, he noted that only once in the past eight years - 2008 - did bond funds produce negative returns: 'Generally they are not volatile and are relatively low risk.'
Investors willing to take even more risk could try funds investing in Asia and emerging markets bonds.
'Currency appreciation in those countries is likely to be on a par with the Singdollar appreciation and would give a decent amount of yield,' Mr Wong said.
chanckr@sph.com.sg
--------------------------------------------------------------------------------
ALL DOWNHILL IN THE NEAR TERM
'Interest rates seem likely to continue downward in the near term... Sibor can't go to zero but it can take another step or two in that direction and seems likely to do so.'
Mr David Carbon, managing director for economic and currency research at DBS
BT : Is demand for GLS sites outstripping supply?
Business Times - 13 May 2010
COMMENTARY
Is demand for GLS sites outstripping supply?
Going by recent state tenders, new records likely to be set in residential property prices
By ARTHUR SIM
CORRESPONDENT
RECORD property prices are being set for new developments even before a single unit is sold.
While this may seem ludicrous to some, high prices that developers have been paying for recent Government Land Sales (GLS) sites already presupposes this, suggesting that demand for GLS sites is outstripping supply.
A site at Simei Street 3 has just sold for $152.69 million after receiving 18 bids. Analysts at CBRE believe a new project on this site would have a breakeven cost of $860-$900 psf and would fetch an average price of around $1,000 psf. Interestingly, CBRE also noted that units of a new development in the same area went for $660-750 psf this year.
Last month, a site at Boon Lay Way sold for $303 million after receiving 14 bids. CBRE said then that this means the development would have a breakeven cost in the $800-870 psf range with the developer selling the units for at least $1,000 psf. This would similarly set a new benchmark for the area, as subsale units of The Caspian in the vicinity transacted at $650-800 psf while resale units at The Lakeshore nearby have been trading at $680-900 psf over the previous four months.
Also likely to set a new benchmark for Upper Thomson Road will be the development built on a site that sold for $251.3 million in November 2009. With an estimated breakeven cost of about $850-900 psf, units will sell for over $1,000 psf. The developer who bought the site also recently helped set a new benchmark price for the West Coast with its development that sold for between $1,000 psf and $1,200 psf.
Operating in the free market, developers can pay anything they want for GLS sites. Some of the bigger developers might even find the current prices affordable, especially with the current low interest rates.
In this light, the government might want to consider if the rate at which it conducts land sales is an effective enough strategy to maintain the supply/demand balance.
But going by some of the recent tender prices for government land sales, efforts to keep property prices in check by releasing more sites do not seem to be working, with tender prices on the GLS reserve list at least, much higher than what the government is actually prepared to accept.
The tender process for reserve list sites is unique in that the site is only released for public tender after one developer has committed to make a minimum bid that is acceptable by the government. This in effect 'triggers' the site for public tender and sets a 'reserve price' for the site.
While it is not defined as such, the 'trigger price', which is made public, translates as the minimum price the government is prepared to accept for the land.
Looking at the four GLS reserve list sites that were awarded in the second half of 2009, what is interesting to note is that all sold for 150-200 per cent more than the trigger price.
The one reserve list site sold in 2010 so far has gone for 80 per cent more than the trigger price.
In comparison, the two sites on the reserve list that sold in the second half of 2007 during the previous peak sold for just between 25-30 per cent more than the trigger price.
The one reserve list site that sold in the first half of 2008 went for 70 per cent more than the trigger price, but it should be pointed out that the trigger price for that site was just $30 million.
The dynamics of the property market were different during the recent peak in 2007, with most land sales derived from collective sale sites. Property prices were also largely driven by the high-end market. So it is difficult to make a like-for-like comparison.
What is easier to say for certain, however, is that the government clearly wants to keep property prices in check and the GLS is one strategy it employs to do this, largely by making what it believes is a reasonable number of sites available for development with supply of new sites solely in its hands.
But one negative consequence of this was played out in 2006 and 2007, when there were fewer GLS sites available and developers turned instead to the collective sales market that resulted in the 'en bloc fever' which to some degree, destabilised the property market by creating significant supply and demand imbalances - the repercussions of which are still being felt today.
By controlling the supply of development sites again, the government has released a record number of sites for sale through the GLS. For the 1H10, residential sites with a total potential of over 10,000 units have been made available through the GLS, the highest number of potential units in recent years.
Need for faster response
Still, the high bids received by developers suggest that the market can absorb even more units.
Certainly if 20,000 potential units were made available through the GLS, the current bidding would not be as aggressive.
While the government has acted to cool the market recently, it seems it will have to respond much faster to market movements.
It is true that the already large number of residential sites on the current GLS programme (H110) was considered by some to have been too many. But judging by developers' appetites in recent tenders, it may need to release many more in H210 or prices will keep going up.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
COMMENTARY
Is demand for GLS sites outstripping supply?
Going by recent state tenders, new records likely to be set in residential property prices
By ARTHUR SIM
CORRESPONDENT
RECORD property prices are being set for new developments even before a single unit is sold.
While this may seem ludicrous to some, high prices that developers have been paying for recent Government Land Sales (GLS) sites already presupposes this, suggesting that demand for GLS sites is outstripping supply.
A site at Simei Street 3 has just sold for $152.69 million after receiving 18 bids. Analysts at CBRE believe a new project on this site would have a breakeven cost of $860-$900 psf and would fetch an average price of around $1,000 psf. Interestingly, CBRE also noted that units of a new development in the same area went for $660-750 psf this year.
Last month, a site at Boon Lay Way sold for $303 million after receiving 14 bids. CBRE said then that this means the development would have a breakeven cost in the $800-870 psf range with the developer selling the units for at least $1,000 psf. This would similarly set a new benchmark for the area, as subsale units of The Caspian in the vicinity transacted at $650-800 psf while resale units at The Lakeshore nearby have been trading at $680-900 psf over the previous four months.
Also likely to set a new benchmark for Upper Thomson Road will be the development built on a site that sold for $251.3 million in November 2009. With an estimated breakeven cost of about $850-900 psf, units will sell for over $1,000 psf. The developer who bought the site also recently helped set a new benchmark price for the West Coast with its development that sold for between $1,000 psf and $1,200 psf.
Operating in the free market, developers can pay anything they want for GLS sites. Some of the bigger developers might even find the current prices affordable, especially with the current low interest rates.
In this light, the government might want to consider if the rate at which it conducts land sales is an effective enough strategy to maintain the supply/demand balance.
But going by some of the recent tender prices for government land sales, efforts to keep property prices in check by releasing more sites do not seem to be working, with tender prices on the GLS reserve list at least, much higher than what the government is actually prepared to accept.
The tender process for reserve list sites is unique in that the site is only released for public tender after one developer has committed to make a minimum bid that is acceptable by the government. This in effect 'triggers' the site for public tender and sets a 'reserve price' for the site.
While it is not defined as such, the 'trigger price', which is made public, translates as the minimum price the government is prepared to accept for the land.
Looking at the four GLS reserve list sites that were awarded in the second half of 2009, what is interesting to note is that all sold for 150-200 per cent more than the trigger price.
The one reserve list site sold in 2010 so far has gone for 80 per cent more than the trigger price.
In comparison, the two sites on the reserve list that sold in the second half of 2007 during the previous peak sold for just between 25-30 per cent more than the trigger price.
The one reserve list site that sold in the first half of 2008 went for 70 per cent more than the trigger price, but it should be pointed out that the trigger price for that site was just $30 million.
The dynamics of the property market were different during the recent peak in 2007, with most land sales derived from collective sale sites. Property prices were also largely driven by the high-end market. So it is difficult to make a like-for-like comparison.
What is easier to say for certain, however, is that the government clearly wants to keep property prices in check and the GLS is one strategy it employs to do this, largely by making what it believes is a reasonable number of sites available for development with supply of new sites solely in its hands.
But one negative consequence of this was played out in 2006 and 2007, when there were fewer GLS sites available and developers turned instead to the collective sales market that resulted in the 'en bloc fever' which to some degree, destabilised the property market by creating significant supply and demand imbalances - the repercussions of which are still being felt today.
By controlling the supply of development sites again, the government has released a record number of sites for sale through the GLS. For the 1H10, residential sites with a total potential of over 10,000 units have been made available through the GLS, the highest number of potential units in recent years.
Need for faster response
Still, the high bids received by developers suggest that the market can absorb even more units.
Certainly if 20,000 potential units were made available through the GLS, the current bidding would not be as aggressive.
While the government has acted to cool the market recently, it seems it will have to respond much faster to market movements.
It is true that the already large number of residential sites on the current GLS programme (H110) was considered by some to have been too many. But judging by developers' appetites in recent tenders, it may need to release many more in H210 or prices will keep going up.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Upturn for JTC ready-built facilities
Business Times - 13 May 2010
Upturn for JTC ready-built facilities
Q1 net allocation turns positive after 6 negative quarters
By UMA SHANKARI
JTC Corp said yesterday that net allocation of its ready-built facilities (RBF) returned to positive territory in the first quarter of this year after six consecutive negative quarters.
Net allocation hit 8,900 square metres in Q1 - a turnaround from Q4 2009, when it fell 1,300 sq m - the government agency said in its quarterly facilities report.
JTC previously said in its Q4 2009 report that net allocation had turned positive during that quarter, but revised numbers released yesterday show that net allocation was still negative in the fourth quarter of last year. Net allocation only turned positive in Q1 2010, JTC said.
The turnaround was supported by the standard factory and business park segments which recovered to register positive net allocations of 6,300 sq m and 100 sq m respectively.
Stronger demand also boosted the occupancy rate for RBF, which rose 0.3 percentage point to 97.4 per cent in Q1.
Year on year, net allocation of RBF turned around the negative 8,900 sq m in Q1 last year. But occupancy rate in Q1 this year was still lower than the 97.7 per cent recorded in Q1 last year.
JTC said that gross allocation jumped in the first three months of this year as the manufacturing sector took up more space. Just over half of the gross allocation of RBF space (51 per cent) went to the manufacturing sector, supported by higher take-up from the precision engineering segment. Analysts have said that industrial rents showed signs of recovery in the first three months of this year.
'With the economy on the growth path, the industrial rental market is expected to bottom in 2010,' said Chua Chor Hoon, DTZ's head of research for Southeast Asia. But recovery will be slow because new supply is set to come on stream, she said.
According to DTZ Research, new supply of 9.3 million and 8.3 million sq ft is expected in 2010 and 2011 respectively - slightly below the historical 10-year average new supply of 10 million sq ft.
JTC also said in its report that net allocation of its prepared industrial land (PIL) stayed positive in Q1 2010. Net allocation of PIL was 23.2 hectares - down from an exceptionally strong 105 ha achieved in the previous quarter.
Year on year, net allocation rose 65 per cent from 14 ha in Q1 last year.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Upturn for JTC ready-built facilities
Q1 net allocation turns positive after 6 negative quarters
By UMA SHANKARI
JTC Corp said yesterday that net allocation of its ready-built facilities (RBF) returned to positive territory in the first quarter of this year after six consecutive negative quarters.
Net allocation hit 8,900 square metres in Q1 - a turnaround from Q4 2009, when it fell 1,300 sq m - the government agency said in its quarterly facilities report.
JTC previously said in its Q4 2009 report that net allocation had turned positive during that quarter, but revised numbers released yesterday show that net allocation was still negative in the fourth quarter of last year. Net allocation only turned positive in Q1 2010, JTC said.
The turnaround was supported by the standard factory and business park segments which recovered to register positive net allocations of 6,300 sq m and 100 sq m respectively.
Stronger demand also boosted the occupancy rate for RBF, which rose 0.3 percentage point to 97.4 per cent in Q1.
Year on year, net allocation of RBF turned around the negative 8,900 sq m in Q1 last year. But occupancy rate in Q1 this year was still lower than the 97.7 per cent recorded in Q1 last year.
JTC said that gross allocation jumped in the first three months of this year as the manufacturing sector took up more space. Just over half of the gross allocation of RBF space (51 per cent) went to the manufacturing sector, supported by higher take-up from the precision engineering segment. Analysts have said that industrial rents showed signs of recovery in the first three months of this year.
'With the economy on the growth path, the industrial rental market is expected to bottom in 2010,' said Chua Chor Hoon, DTZ's head of research for Southeast Asia. But recovery will be slow because new supply is set to come on stream, she said.
According to DTZ Research, new supply of 9.3 million and 8.3 million sq ft is expected in 2010 and 2011 respectively - slightly below the historical 10-year average new supply of 10 million sq ft.
JTC also said in its report that net allocation of its prepared industrial land (PIL) stayed positive in Q1 2010. Net allocation of PIL was 23.2 hectares - down from an exceptionally strong 105 ha achieved in the previous quarter.
Year on year, net allocation rose 65 per cent from 14 ha in Q1 last year.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Asian firms revive debt plans as markets calm
Business Times - 13 May 2010
Asian firms revive debt plans as markets calm
(HONG KONG) China's underground mall developer Renhe Commercial Holdings was expected to price its bonds as early as yesterday, sources said, a few days after it was deferred, in a sign that debt markets are stabilising.
Renhe last Friday delayed its plan to price its benchmark-sized five-year dollar bonds, citing poor market conditions. It postponed pricing after debt spreads widened to 10-month highs on fears that the sovereign debt crisis in the eurozone would prompt investors to pull their funds out of Asia.
But issuers may have to pay more to attract wary investors, who remain sceptical whether Greece and other European countries can muster enough political will to cut swelling budget deficits and mounting debt.
'The market is stabilising, for sure, but if you look at the price that the issuers are getting, it is still optimal compared to where they would have liked it to be a few weeks ago,' a banker involved in recent deals said.
'Accounts are slowly prepared to be involved in new issues, but clearly the size they are prepared to put to work is less and the pricing that they expect now is higher.'
For instance, Renhe's indicated pricing terms in a range of between 11.75 and 12.25 per cent for its bonds were at least 25 basis points (bps) higher than what the market had expected a few days before it was put on hold, the banker said.
Another issuer, Macau casino operator Melco Crown Entertainment, was expected to price up to US$600 million of bonds later yesterday.
The issuer has set a guidance of 10.5 per cent for the eight-year bonds.
The deal has so far attracted US$1.1 billion in orders, indicating that despite the concerns about Europe's sovereign credits, demand for Asia's high-yielding bonds was still intact.
'There is a lot of demand for issuers who want to raise funds in the market, but ultimately it depends on how much flexibility the borrowers have in terms of pricing,' one trader said here. 'For Chinese names that are concerned about the tightening of credits at home, they will come at whatever price.' - Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Asian firms revive debt plans as markets calm
(HONG KONG) China's underground mall developer Renhe Commercial Holdings was expected to price its bonds as early as yesterday, sources said, a few days after it was deferred, in a sign that debt markets are stabilising.
Renhe last Friday delayed its plan to price its benchmark-sized five-year dollar bonds, citing poor market conditions. It postponed pricing after debt spreads widened to 10-month highs on fears that the sovereign debt crisis in the eurozone would prompt investors to pull their funds out of Asia.
But issuers may have to pay more to attract wary investors, who remain sceptical whether Greece and other European countries can muster enough political will to cut swelling budget deficits and mounting debt.
'The market is stabilising, for sure, but if you look at the price that the issuers are getting, it is still optimal compared to where they would have liked it to be a few weeks ago,' a banker involved in recent deals said.
'Accounts are slowly prepared to be involved in new issues, but clearly the size they are prepared to put to work is less and the pricing that they expect now is higher.'
For instance, Renhe's indicated pricing terms in a range of between 11.75 and 12.25 per cent for its bonds were at least 25 basis points (bps) higher than what the market had expected a few days before it was put on hold, the banker said.
Another issuer, Macau casino operator Melco Crown Entertainment, was expected to price up to US$600 million of bonds later yesterday.
The issuer has set a guidance of 10.5 per cent for the eight-year bonds.
The deal has so far attracted US$1.1 billion in orders, indicating that despite the concerns about Europe's sovereign credits, demand for Asia's high-yielding bonds was still intact.
'There is a lot of demand for issuers who want to raise funds in the market, but ultimately it depends on how much flexibility the borrowers have in terms of pricing,' one trader said here. 'For Chinese names that are concerned about the tightening of credits at home, they will come at whatever price.' - Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Hotels make case for lower F1 levy on room revenue
Business Times - 13 May 2010
Hotels make case for lower F1 levy on room revenue
By NISHA RAMCHANDANI
(SINGAPORE) With race day looming and a full house at stake, some hotels are not so keen on the cards they've been dealt.
Several hotels are lobbying for a reduction in the Formula One (F1) levy on hotel room revenue, according to sources, in hopes that it will be further cut from four days to three.
However, it is unclear at this point how this hand will play out, given that the levy was already revised last year in what was meant to be a one-off concession.
'The one-day reduction in 2009 was intended as a one-off concession in view of the economic downturn and its impact on the hotel industry,' said Justin Chew, the Singapore Tourism Board's (STB) executive director of F1 & sports & hospitality, in response to a query from BT.
For the inaugural F1 race in 2008, the Ministry of Trade and Industry (MTI) and STB implemented an F1 levy to defray some of the cost of staging the F1 race in Singapore. The tax spanned five days (Sept 24-28) - leading up to and including race weekend - to the tune of 30 per cent of total room revenue for trackside hotels and 20 per cent for non-trackside hotels.
In March 2009, MTI and STB announced that the 2009 F1 levy period would be shortened after the tourism industry was hit hard by the recession. In response to feedback from hoteliers, MTI and STB trimmed the period from five nights to four while maintaining the percentage rates at 30 and 20 per cent respectively. An official announcement on the 2010 F1 levy has yet to be made.
'The F1 levy for 2010 will be announced after consultation with the relevant stakeholders,' added Mr Chew.
The Singapore Hotel Association (SHA), which is said to be liaising with the hotels, did not respond to queries from BT.
One reason that the hotels are hoping for a revision of the levy is that some don't expect to see significant growth over last year in room revenue from F1, BT understands.
Other hotels that BT contacted pointed out that the tax penalises visitors who are not in town for the race since costs are passed on to the consumer.
'It does not seem very fair for guests who are here for meetings . . . to pay a levy because of the extra day,' said Rendezvous Hotel's general manager Kellvin Ong.
Room rates typically rise sharply for the F1 period (especially at trackside hotels) due to the significant demand for rooms as well as the F1 tax.
In the event of a revision, the savings could be put to better use, reckons Patrick Fiat, general manager of Royal Plaza on Scotts.
'F1 is very much a weekend race. The costs saved can be used to promote our property in conjunction with the race event, in addition to STB's efforts in promoting F1,' said Mr Fiat.
There is also the question of whether more hotels - such as Marina Bay Sands (MBS) - will be roped in as trackside hotels this year. Last year, the Grand Park City Hall and boutique hotel Naumi were declared trackside hotels, bumping up the number of trackside hotels from 11 in 2008 to 13 in 2009.
Hotels along the track may also face stiffer competition filling up rooms this year, thanks to the debut of MBS, which is fairly close to the race track. MBS launched some 960 rooms in its first phase in April but will have a total of 2,560 rooms operational by June, several months ahead of this year's race from Sept 24-26.
As it is, the poor global economy took some of the shine off the numbers at last year's Grand Prix.
According to data previously released by STB, 30 per cent of the 90,000 spectators at the 2009 Grand Prix came from overseas, versus some 40 per cent of the 100,000 spectators who attended the inaugural race - a shortfall of roughly 13,000 foreign spectators.
At the same time, incremental tourism receipts racked up from hosting the F1 nearly halved year-on- year. Singapore chalked up some $93 million in incremental tourism receipts during the race period last year, missing the $100 million target. In 2008, it registered $168 million in incremental tourism receipts.
With the F1 race now in its third year, there is also the added challenge of fading novelty, although the Singapore Grand Prix is unique in that it offers a night race on a street circuit. Veteran driver Michael Schumacher - 'Schumi' to his legions of fans - could also be a huge draw if he ends up racing in Singapore come September.
And now that the global economy is in a much healthier place, hoteliers are keeping their fingers crossed that bookings will pick up speed.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Hotting up: Hotels along the F1 track may face stiffer competition this year because of the debut of MBS
Hotels make case for lower F1 levy on room revenue
By NISHA RAMCHANDANI
(SINGAPORE) With race day looming and a full house at stake, some hotels are not so keen on the cards they've been dealt.
Several hotels are lobbying for a reduction in the Formula One (F1) levy on hotel room revenue, according to sources, in hopes that it will be further cut from four days to three.
However, it is unclear at this point how this hand will play out, given that the levy was already revised last year in what was meant to be a one-off concession.
'The one-day reduction in 2009 was intended as a one-off concession in view of the economic downturn and its impact on the hotel industry,' said Justin Chew, the Singapore Tourism Board's (STB) executive director of F1 & sports & hospitality, in response to a query from BT.
For the inaugural F1 race in 2008, the Ministry of Trade and Industry (MTI) and STB implemented an F1 levy to defray some of the cost of staging the F1 race in Singapore. The tax spanned five days (Sept 24-28) - leading up to and including race weekend - to the tune of 30 per cent of total room revenue for trackside hotels and 20 per cent for non-trackside hotels.
In March 2009, MTI and STB announced that the 2009 F1 levy period would be shortened after the tourism industry was hit hard by the recession. In response to feedback from hoteliers, MTI and STB trimmed the period from five nights to four while maintaining the percentage rates at 30 and 20 per cent respectively. An official announcement on the 2010 F1 levy has yet to be made.
'The F1 levy for 2010 will be announced after consultation with the relevant stakeholders,' added Mr Chew.
The Singapore Hotel Association (SHA), which is said to be liaising with the hotels, did not respond to queries from BT.
One reason that the hotels are hoping for a revision of the levy is that some don't expect to see significant growth over last year in room revenue from F1, BT understands.
Other hotels that BT contacted pointed out that the tax penalises visitors who are not in town for the race since costs are passed on to the consumer.
'It does not seem very fair for guests who are here for meetings . . . to pay a levy because of the extra day,' said Rendezvous Hotel's general manager Kellvin Ong.
Room rates typically rise sharply for the F1 period (especially at trackside hotels) due to the significant demand for rooms as well as the F1 tax.
In the event of a revision, the savings could be put to better use, reckons Patrick Fiat, general manager of Royal Plaza on Scotts.
'F1 is very much a weekend race. The costs saved can be used to promote our property in conjunction with the race event, in addition to STB's efforts in promoting F1,' said Mr Fiat.
There is also the question of whether more hotels - such as Marina Bay Sands (MBS) - will be roped in as trackside hotels this year. Last year, the Grand Park City Hall and boutique hotel Naumi were declared trackside hotels, bumping up the number of trackside hotels from 11 in 2008 to 13 in 2009.
Hotels along the track may also face stiffer competition filling up rooms this year, thanks to the debut of MBS, which is fairly close to the race track. MBS launched some 960 rooms in its first phase in April but will have a total of 2,560 rooms operational by June, several months ahead of this year's race from Sept 24-26.
As it is, the poor global economy took some of the shine off the numbers at last year's Grand Prix.
According to data previously released by STB, 30 per cent of the 90,000 spectators at the 2009 Grand Prix came from overseas, versus some 40 per cent of the 100,000 spectators who attended the inaugural race - a shortfall of roughly 13,000 foreign spectators.
At the same time, incremental tourism receipts racked up from hosting the F1 nearly halved year-on- year. Singapore chalked up some $93 million in incremental tourism receipts during the race period last year, missing the $100 million target. In 2008, it registered $168 million in incremental tourism receipts.
With the F1 race now in its third year, there is also the added challenge of fading novelty, although the Singapore Grand Prix is unique in that it offers a night race on a street circuit. Veteran driver Michael Schumacher - 'Schumi' to his legions of fans - could also be a huge draw if he ends up racing in Singapore come September.
And now that the global economy is in a much healthier place, hoteliers are keeping their fingers crossed that bookings will pick up speed.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Hotting up: Hotels along the F1 track may face stiffer competition this year because of the debut of MBS
BT : Apartments' rent pays way for national park
Business Times - 13 May 2010
Apartments' rent pays way for national park
Rehabilitation of abandoned hospital into luxury building helping to push park towards self-sufficiency
(SAN FRANCISCO) Renters here will soon have an unusual housing option: a 154-unit luxury apartment building inside a national park.
For the last 30 years, the property was an abandoned hospital covered in graffiti, where trespassers caroused in operating rooms and shot photos of empty drawers in the morgue.
The rehabilitation of the 78-year-old building, once the Public Health Service Hospital, is the biggest renovation project undertaken so far by the Presidio Trust, the government agency established in 1996 to oversee the Presidio, the former military base in San Francisco that is now a 1,500-acre (607 hectares) national park.
But unlike most parks, the Presidio has about 800 buildings, more than half of them listed on the National Register of Historic Places.
Preserving and maintaining those old military barracks, officers' quarters, stables and other structures has been an expensive challenge.
Even more daunting is that the Presidio's Congressional financing runs out at the end of 2012, when the trust is expected to be financially self-sustaining, relying on income from the commercial and residential tenants that have gradually occupied the Presidio's renovated office buildings and homes.
'We're headed toward self-sufficiency in a couple years - and we'll make it,' said Craig Middleton, executive director of the Presidio Trust. 'In fiscal year '09, we made US$70 million in revenue, and 95 per cent of that was rental income.'
The Presidio's annual operating budget is about US$56 million, which is spent on maintaining the buildings and landscaping, utilities, roads, public safety services and other administrative costs. That rental income ranges from the US$9 million a year paid by Lucasfilm for the Letterman Digital Arts Center, a 23-acre campus on the site of the Letterman Hospital, to the US$1,700 a month that renters pay for modest apartments on the base.
In early April, a six-bedroom former officer's home with San Francisco Bay views was available to rent for US$9,580 a month.
While the trust has handled many renovation projects on its own, it joined with Forest City Enterprises on the Public Health Service Hospital redevelopment, which will open this summer as the Presidio Landmark apartments.
The six-storey apartment complex, on the southern edge of the park, will offer one- and two-bedroom apartments and all the amenities of modern living, including a doorman, stainless steel appliances, granite countertops, a fitness centre, a wine storage room and a communal lounge.
Renters will have easy access to the park's miles of hiking and biking trails, bucolic views - some looking out to the Pacific Ocean - and a green buffer from city noise. They will also have one of the most coveted perks of any urban setting: a parking spot.
But the level of detail involved in designing that parking lot illustrates the challenges faced by developers working on a project inside a national park.
'You have to think about how the parking lot is designed so there's minimal headlight spillover,' Alexa Arena, a vice-president of Forest City, said as she gave a tour of the site last month.
Saucer-shaped hoods above the lamp posts minimise the light shed on the park at night, while berms around the terraced lot keep headlight glare from spreading far and wide. Other rules restricted demolition projects during raptor nesting season and mandated that native plants be used for landscaping.
The former hospital's historic designation presented additional renovation hurdles. The original width of the hallways had to be maintained, Ms Arena said, and painted indentations appear along halls to show the places where doors were removed. In some cases, exposed brick had to be covered with drywall, since the modern appeal of brick interiors was not in keeping with 1930s standards - though remnants of the graffiti still visible on some walls represented another history that would be covered up.
Forest City removed two wings added to the hospital in the 1950s, which was partly a concession to community concerns about the developer's original proposal to create 350 apartments. The building is in an area of the Presidio that had mostly been abandoned for decades, so although the hospital was widely considered an eyesore, some neighbours were worried about the additional traffic a large apartment complex would bring to the area.
But the smaller scale of the project may turn out to be an advantage as the economy struggles to recover. Although rental prices have not yet been announced, Kevin Ratner, president of Forest City Residential West, said that he did not think it would be a problem to find tenants because of the building's setting.
Mr Middleton said that the overall occupancy rate in the Presidio was 97 per cent for the park's residential units, which are predominantly larger apartments originally built for military families. About 3,000 people currently live in the Presidio, with preference given to employees of organisations that have offices in the park. Between 12 per cent and 19 per cent of the apartments are priced based on the tenants' income level, Mr Middleton said, although the Presidio Landmark units will be market-rate rentals.
According to RealFacts, a research firm that surveys buildings with 50 or more apartments, the average asking rent in San Francisco was US$2,219 in the first quarter of this year, down 4.5 per cent from the same quarter last year. The occupancy rate was 92.4 per cent, down 3.5 per cent compared with the first quarter of 2009.
Still, compared with other parts of the country, San Francisco's rental rates have held up well.
'Because it's a blue-chip market, it hasn't depreciated as much as many other markets,' said Sarah Bridge, the owner of RealFacts.
The soft economy has had more of an effect on the Presidio's commercial space, according to the trust's latest annual report, with newly renovated offices taking longer to fill. Yet, the roster of tenants that have moved to the Presidio represents a mix of non-profit groups, arts organisations, athletic facilities, schools and commercial enterprises, creating a diverse and growing community within the park\. \-- NYT
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Hosting the past: A sign sits at the Presidio Parade Grounds in San Francisco, California. Unlike most parks, the Presidio has about 800 buildings, more than half of them listed on the National Register of Historic Places
Apartments' rent pays way for national park
Rehabilitation of abandoned hospital into luxury building helping to push park towards self-sufficiency
(SAN FRANCISCO) Renters here will soon have an unusual housing option: a 154-unit luxury apartment building inside a national park.
For the last 30 years, the property was an abandoned hospital covered in graffiti, where trespassers caroused in operating rooms and shot photos of empty drawers in the morgue.
The rehabilitation of the 78-year-old building, once the Public Health Service Hospital, is the biggest renovation project undertaken so far by the Presidio Trust, the government agency established in 1996 to oversee the Presidio, the former military base in San Francisco that is now a 1,500-acre (607 hectares) national park.
But unlike most parks, the Presidio has about 800 buildings, more than half of them listed on the National Register of Historic Places.
Preserving and maintaining those old military barracks, officers' quarters, stables and other structures has been an expensive challenge.
Even more daunting is that the Presidio's Congressional financing runs out at the end of 2012, when the trust is expected to be financially self-sustaining, relying on income from the commercial and residential tenants that have gradually occupied the Presidio's renovated office buildings and homes.
'We're headed toward self-sufficiency in a couple years - and we'll make it,' said Craig Middleton, executive director of the Presidio Trust. 'In fiscal year '09, we made US$70 million in revenue, and 95 per cent of that was rental income.'
The Presidio's annual operating budget is about US$56 million, which is spent on maintaining the buildings and landscaping, utilities, roads, public safety services and other administrative costs. That rental income ranges from the US$9 million a year paid by Lucasfilm for the Letterman Digital Arts Center, a 23-acre campus on the site of the Letterman Hospital, to the US$1,700 a month that renters pay for modest apartments on the base.
In early April, a six-bedroom former officer's home with San Francisco Bay views was available to rent for US$9,580 a month.
While the trust has handled many renovation projects on its own, it joined with Forest City Enterprises on the Public Health Service Hospital redevelopment, which will open this summer as the Presidio Landmark apartments.
The six-storey apartment complex, on the southern edge of the park, will offer one- and two-bedroom apartments and all the amenities of modern living, including a doorman, stainless steel appliances, granite countertops, a fitness centre, a wine storage room and a communal lounge.
Renters will have easy access to the park's miles of hiking and biking trails, bucolic views - some looking out to the Pacific Ocean - and a green buffer from city noise. They will also have one of the most coveted perks of any urban setting: a parking spot.
But the level of detail involved in designing that parking lot illustrates the challenges faced by developers working on a project inside a national park.
'You have to think about how the parking lot is designed so there's minimal headlight spillover,' Alexa Arena, a vice-president of Forest City, said as she gave a tour of the site last month.
Saucer-shaped hoods above the lamp posts minimise the light shed on the park at night, while berms around the terraced lot keep headlight glare from spreading far and wide. Other rules restricted demolition projects during raptor nesting season and mandated that native plants be used for landscaping.
The former hospital's historic designation presented additional renovation hurdles. The original width of the hallways had to be maintained, Ms Arena said, and painted indentations appear along halls to show the places where doors were removed. In some cases, exposed brick had to be covered with drywall, since the modern appeal of brick interiors was not in keeping with 1930s standards - though remnants of the graffiti still visible on some walls represented another history that would be covered up.
Forest City removed two wings added to the hospital in the 1950s, which was partly a concession to community concerns about the developer's original proposal to create 350 apartments. The building is in an area of the Presidio that had mostly been abandoned for decades, so although the hospital was widely considered an eyesore, some neighbours were worried about the additional traffic a large apartment complex would bring to the area.
But the smaller scale of the project may turn out to be an advantage as the economy struggles to recover. Although rental prices have not yet been announced, Kevin Ratner, president of Forest City Residential West, said that he did not think it would be a problem to find tenants because of the building's setting.
Mr Middleton said that the overall occupancy rate in the Presidio was 97 per cent for the park's residential units, which are predominantly larger apartments originally built for military families. About 3,000 people currently live in the Presidio, with preference given to employees of organisations that have offices in the park. Between 12 per cent and 19 per cent of the apartments are priced based on the tenants' income level, Mr Middleton said, although the Presidio Landmark units will be market-rate rentals.
According to RealFacts, a research firm that surveys buildings with 50 or more apartments, the average asking rent in San Francisco was US$2,219 in the first quarter of this year, down 4.5 per cent from the same quarter last year. The occupancy rate was 92.4 per cent, down 3.5 per cent compared with the first quarter of 2009.
Still, compared with other parts of the country, San Francisco's rental rates have held up well.
'Because it's a blue-chip market, it hasn't depreciated as much as many other markets,' said Sarah Bridge, the owner of RealFacts.
The soft economy has had more of an effect on the Presidio's commercial space, according to the trust's latest annual report, with newly renovated offices taking longer to fill. Yet, the roster of tenants that have moved to the Presidio represents a mix of non-profit groups, arts organisations, athletic facilities, schools and commercial enterprises, creating a diverse and growing community within the park\. \-- NYT
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Hosting the past: A sign sits at the Presidio Parade Grounds in San Francisco, California. Unlike most parks, the Presidio has about 800 buildings, more than half of them listed on the National Register of Historic Places
BT : Courts takes on Orchard Rd
Business Times - 13 May 2010
Courts takes on Orchard Rd
New 8-level store at Somerset a timely move ahead of IPO
By ARTHUR SIM
COURTS, which has a strong presence in the heartlands, has decided to open a high profile store on Orchard Road - and just in time to raise its profile for its upcoming IPO too.
A market leader in electrical, IT and furniture retail, Courts' only store in the city is at Funan Centre. But this looks set to change.
Courts Asia, which has 55 retail stores in Singapore and Malaysia, lodged a preliminary prospectus for an initial public offering (IPO) in Singapore in March. CEO Terry O'Connor said that the opening of the eight-level Orchard Road store would be 'timely', and the new store will create 'brand presence'. However, he also added that it would have gone ahead with the new store regardless of the IPO. 'The (Orchard Road) store has a low breakeven,' he added.
Mr O'Connor did not reveal the rental but earlier reports put the estimated rent at $443,150 per month. This roughly works out to $10 psf.
While prime Orchard Road might easily be three times as much, Mr O'Connor said that the rental will include a component that is based on the store's gross turnover. But this only kicks in at level 'where we are already comfortable,' he explained.
While he did not comment on the progress of the IPO, he did say that the IPO roadshows with potential investors were still on-going. It was earlier reported that the IPO could raise over $150 million.
Mr O'Connor was speaking at a media briefing for its new store, which will be located in a 44,000 sq ft building owned by OG and recently vacated by John Little. It is opposite 313@Somerset and Orchard Central.
On how Courts fits in with Orchard Road, Mr O'Connor said he believes Singapore's most famous shopping street has become more 'polarised' of late, with the area closer to Scotts Road more 'upscale' compared to the more 'middle and mass-market' area closer to Cavanagh Road.
'Our core competition also have stores in the city,' he added.
Mr O'Connor said it would be prepared to tweak its retail concept for Orchard Road if needed. Already, Courts plans to roll out a new retail concept called Brand Connectivity which will focus on new technology in electrical and IT products.
For Orchard Road, Courts is also working with Apple to create a dedicated retail area that looks set to open in time for the launch of the highly anticipated Apple iPads in July. Mr O'Connor said Apple is likely to occupy the prime space on the ground facing Orchard Road.
Not to disappoint its core customers, Courts at Orchard Road will kick off with a sale starting May 19. It will officially open in July.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Courts takes on Orchard Rd
New 8-level store at Somerset a timely move ahead of IPO
By ARTHUR SIM
COURTS, which has a strong presence in the heartlands, has decided to open a high profile store on Orchard Road - and just in time to raise its profile for its upcoming IPO too.
A market leader in electrical, IT and furniture retail, Courts' only store in the city is at Funan Centre. But this looks set to change.
Courts Asia, which has 55 retail stores in Singapore and Malaysia, lodged a preliminary prospectus for an initial public offering (IPO) in Singapore in March. CEO Terry O'Connor said that the opening of the eight-level Orchard Road store would be 'timely', and the new store will create 'brand presence'. However, he also added that it would have gone ahead with the new store regardless of the IPO. 'The (Orchard Road) store has a low breakeven,' he added.
Mr O'Connor did not reveal the rental but earlier reports put the estimated rent at $443,150 per month. This roughly works out to $10 psf.
While prime Orchard Road might easily be three times as much, Mr O'Connor said that the rental will include a component that is based on the store's gross turnover. But this only kicks in at level 'where we are already comfortable,' he explained.
While he did not comment on the progress of the IPO, he did say that the IPO roadshows with potential investors were still on-going. It was earlier reported that the IPO could raise over $150 million.
Mr O'Connor was speaking at a media briefing for its new store, which will be located in a 44,000 sq ft building owned by OG and recently vacated by John Little. It is opposite 313@Somerset and Orchard Central.
On how Courts fits in with Orchard Road, Mr O'Connor said he believes Singapore's most famous shopping street has become more 'polarised' of late, with the area closer to Scotts Road more 'upscale' compared to the more 'middle and mass-market' area closer to Cavanagh Road.
'Our core competition also have stores in the city,' he added.
Mr O'Connor said it would be prepared to tweak its retail concept for Orchard Road if needed. Already, Courts plans to roll out a new retail concept called Brand Connectivity which will focus on new technology in electrical and IT products.
For Orchard Road, Courts is also working with Apple to create a dedicated retail area that looks set to open in time for the launch of the highly anticipated Apple iPads in July. Mr O'Connor said Apple is likely to occupy the prime space on the ground facing Orchard Road.
Not to disappoint its core customers, Courts at Orchard Road will kick off with a sale starting May 19. It will officially open in July.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : KL to sell select plots of land to private sector
Business Times - 13 May 2010
KL to sell select plots of land to private sector
By S JAYASANKARAN
IN KUALA LUMPUR
THE Malaysian government agreed last week to the privatisation of several tracts of government- owned land in Kuala Lumpur, executives familiar with the matter say.
The largest of the deals will be the sale of Sungei Besi airport, a 160-hectare field south of Kuala Lumpur that still houses an air-force base and a flying school. It is the single largest remaining tract of government-owned real estate in Kuala Lumpur and could be worth hundreds of millions of ringgit.
According to the executives, the area is likely to be privatised to a consortium that includes the Armed Forces Superannuation Fund (30 per cent), One Malaysia Development Fund (30 per cent) and a company linked to businessman Desmond Lim (40 per cent). Mr Lim, a confidant of Prime Minister Najib Razak, owns listed development company Malton, which is a shareholder in the wildly successful Pavilion shopping complex in Kuala Lumpur.
It isn't clear how much they will pay the government for the land but it is believed that the consortium will push ahead with over RM1 billion (S$430 million) of development that will include an Islamic Financial Centre.
The freeing up of the state land was first announced by Mr Najib in his Budget speech last year and repeated in his recent address unveiling his New Economic Model (NEM). The projects are aimed at boosting growth and raising cash to pare the government's growing budget deficit.
The Armed Forces Fund's inclusion in the project isn't surprising as the airport used to be an air-force base. Meanwhile, the RM5 billion One Malaysia Development Fund is a multi-billion-ringgit fund set up by Mr Najib last year to drive strategic initiatives that can create long-term sustainable growth.
Other tracts of real estate that have been cleared for privatisation include small plots of land in Jalan Stonor and Jalan Cochrane in the capital. And the exercise is likely to extend to the historic Sultan Abdul Samad building in central Kuala Lumpur, which used to house the government court complex. The building is likely to be gentrified although it will keep its original façade as it is considered a heritage landmark. It isn't clear which parties will snag these deals.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
KL to sell select plots of land to private sector
By S JAYASANKARAN
IN KUALA LUMPUR
THE Malaysian government agreed last week to the privatisation of several tracts of government- owned land in Kuala Lumpur, executives familiar with the matter say.
The largest of the deals will be the sale of Sungei Besi airport, a 160-hectare field south of Kuala Lumpur that still houses an air-force base and a flying school. It is the single largest remaining tract of government-owned real estate in Kuala Lumpur and could be worth hundreds of millions of ringgit.
According to the executives, the area is likely to be privatised to a consortium that includes the Armed Forces Superannuation Fund (30 per cent), One Malaysia Development Fund (30 per cent) and a company linked to businessman Desmond Lim (40 per cent). Mr Lim, a confidant of Prime Minister Najib Razak, owns listed development company Malton, which is a shareholder in the wildly successful Pavilion shopping complex in Kuala Lumpur.
It isn't clear how much they will pay the government for the land but it is believed that the consortium will push ahead with over RM1 billion (S$430 million) of development that will include an Islamic Financial Centre.
The freeing up of the state land was first announced by Mr Najib in his Budget speech last year and repeated in his recent address unveiling his New Economic Model (NEM). The projects are aimed at boosting growth and raising cash to pare the government's growing budget deficit.
The Armed Forces Fund's inclusion in the project isn't surprising as the airport used to be an air-force base. Meanwhile, the RM5 billion One Malaysia Development Fund is a multi-billion-ringgit fund set up by Mr Najib last year to drive strategic initiatives that can create long-term sustainable growth.
Other tracts of real estate that have been cleared for privatisation include small plots of land in Jalan Stonor and Jalan Cochrane in the capital. And the exercise is likely to extend to the historic Sultan Abdul Samad building in central Kuala Lumpur, which used to house the government court complex. The building is likely to be gentrified although it will keep its original façade as it is considered a heritage landmark. It isn't clear which parties will snag these deals.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : HK says measures to cool property sector working
Business Times - 13 May 2010
HK says measures to cool property sector working
(HONG KONG) Hong Kong said yesterday that its efforts to cool the property market in the crowded former British colony showed signs of working after its latest land sale met a lacklustre response.
A site for non-industrial use near the city's international airport went under the hammer for HK$3.42 billion (S$607 million) on Tuesday, far below a HK$4.63 billion average forecast of analysts polled by Dow Jones Newswires.
The 282,017-square foot plot was sold to unlisted developer Nan Fung Group, one of only two bidders, after the auctioneer threatened to cancel the sale if the government's reserve price was not met.
In recent months, government officials have taken a high-profile stance in reining in soaring residential property prices after they jumped nearly 30 per cent last year.
Financial Secretary John Tsang said that the lukewarm result was a sign that the market was starting to stabilise, after luxury flat prices recently climbed to the boom levels of 1997, driven by deep-pocketed mainland buyers.
'The result of the auction has reflected the market situation. We have always hoped the property market will develop in a stable manner,' he told reporters.
He pledged to continue to increase land supply in the coming months, repeating a promise that he made in his February budget speech aimed at preventing a bubble.
'We will have land sales in June and July. The sales will keep coming.'
Analysts said that developers stayed on the sidelines at Tuesday's auction due to uncertainty about the full impact of the government's cooling measures.
'The impact can be especially strong on the small and medium residential flats, in light of the calls for the government to resume the construction of' subsidised housing, Charles Chan, managing director and valuation specialist at Savills in Hong Kong, told AFP.
Macquarie said that the poor response would weaken sentiment in the residential market in the near term, but predicted more active bidding at future sales because of a general land shortage and the greater attractiveness of the sites in question.
'Developers will likely remain active to replenish land but they might be more picky in light of more choices available,' it said in a report.
Apart from increasing land supply, the government has also raised the stamp duty for luxury flats to try to curb speculation and pledged to avoid excessive mortgage lending\. \-- AFP
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Boosting supply: A pedestrian walking past a property agency in Hong Kong. Financial Secretary John Tsang has pledged to continue to increase land supply in the coming months
HK says measures to cool property sector working
(HONG KONG) Hong Kong said yesterday that its efforts to cool the property market in the crowded former British colony showed signs of working after its latest land sale met a lacklustre response.
A site for non-industrial use near the city's international airport went under the hammer for HK$3.42 billion (S$607 million) on Tuesday, far below a HK$4.63 billion average forecast of analysts polled by Dow Jones Newswires.
The 282,017-square foot plot was sold to unlisted developer Nan Fung Group, one of only two bidders, after the auctioneer threatened to cancel the sale if the government's reserve price was not met.
In recent months, government officials have taken a high-profile stance in reining in soaring residential property prices after they jumped nearly 30 per cent last year.
Financial Secretary John Tsang said that the lukewarm result was a sign that the market was starting to stabilise, after luxury flat prices recently climbed to the boom levels of 1997, driven by deep-pocketed mainland buyers.
'The result of the auction has reflected the market situation. We have always hoped the property market will develop in a stable manner,' he told reporters.
He pledged to continue to increase land supply in the coming months, repeating a promise that he made in his February budget speech aimed at preventing a bubble.
'We will have land sales in June and July. The sales will keep coming.'
Analysts said that developers stayed on the sidelines at Tuesday's auction due to uncertainty about the full impact of the government's cooling measures.
'The impact can be especially strong on the small and medium residential flats, in light of the calls for the government to resume the construction of' subsidised housing, Charles Chan, managing director and valuation specialist at Savills in Hong Kong, told AFP.
Macquarie said that the poor response would weaken sentiment in the residential market in the near term, but predicted more active bidding at future sales because of a general land shortage and the greater attractiveness of the sites in question.
'Developers will likely remain active to replenish land but they might be more picky in light of more choices available,' it said in a report.
Apart from increasing land supply, the government has also raised the stamp duty for luxury flats to try to curb speculation and pledged to avoid excessive mortgage lending\. \-- AFP
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Boosting supply: A pedestrian walking past a property agency in Hong Kong. Financial Secretary John Tsang has pledged to continue to increase land supply in the coming months
BT : Aussie home loan demand falls
Business Times - 13 May 2010
Aussie home loan demand falls
(SYDNEY) Australian demand for loans to buy houses sank to nine-year lows in March, providing further evidence that rising interest rates and a roll back in government cash handouts were hurting the mood of home buyers.
The slackening demand adds to the case for the Reserve Bank of Australia (RBA) to refrain from tightening policy for a while, having already lifted rates in six of its last seven policy meetings.
'The odds are that the RBA stays on the sidelines for a couple of months,' said Su-Lin Ong, an analyst at RBC Capital.
'The combination of higher mortgage rates, a paring back of the first home owners grant at the start of this year, and further strength in house prices in the first quarter is clearly having a marked impact upon the appetite for borrowing.'
The number of home loans taken out in March fell 3.4 per cent to 48,620, seasonally adjusted, the lowest since March 2001.
Notably, demand for loans to build new homes also dropped a hefty 7.3 per cent, the biggest fall in nearly eight years, suggesting that construction activity could cool next year after booming this year.
If indeed fewer homes are to be built next year, property prices may climb even higher, an outcome that could unsettle the RBA. For as it is, Australian home prices are among the least affordable in the world due to a chronic shortage in housing.
Analysts say that demand for home loans usually flag the growth in approvals for constructing new homes by three to six months.
'The RBA will not want to see a marked slowing in construction given the already established shortfall. This would simply put further pressure on house prices,' Ms Ong said.
The market was steady on the data, with the Australian dollar little changed at US$0.8939. Interbank futures showed investors were only fully priced for rates to rise to 4.75 per cent by November, from 4.5 per cent now.
Yesterday's data showed investment demand was the only resilient part of the market for home loans, with a 3.0 per cent rise in March after seasonal adjustments. That boded well for the rental market as it suggested more houses were available.
Yet, Julene Lee, an economist at Westpac, said that it is crucial to differentiate whether investors were buying existing housing stock or if they were looking to invest in new homes.
'Certainly there is the need for further additions to the housing stock given pent-up demand and strong population growth,' Ms Lee said.
The RBA has warned repeatedly that a shortage in housing may push up home prices. Prices have already recovered to record highs by most measures, even as the rest of the world is only starting to emerge from the financial crisis.
A private report showed that Australian house prices grew a sizzling 16.2 per cent in the first quarter, their fastest pace in six years.
The run-up in home prices was one reason the RBA has lifted rates by an aggressive 150 basis points since October to cool property demand.
But it is also well aware that higher borrowing costs are a double-edged sword since they crimp the construction of new homes, which is just what the market needs\. \-- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Aussie home loan demand falls
(SYDNEY) Australian demand for loans to buy houses sank to nine-year lows in March, providing further evidence that rising interest rates and a roll back in government cash handouts were hurting the mood of home buyers.
The slackening demand adds to the case for the Reserve Bank of Australia (RBA) to refrain from tightening policy for a while, having already lifted rates in six of its last seven policy meetings.
'The odds are that the RBA stays on the sidelines for a couple of months,' said Su-Lin Ong, an analyst at RBC Capital.
'The combination of higher mortgage rates, a paring back of the first home owners grant at the start of this year, and further strength in house prices in the first quarter is clearly having a marked impact upon the appetite for borrowing.'
The number of home loans taken out in March fell 3.4 per cent to 48,620, seasonally adjusted, the lowest since March 2001.
Notably, demand for loans to build new homes also dropped a hefty 7.3 per cent, the biggest fall in nearly eight years, suggesting that construction activity could cool next year after booming this year.
If indeed fewer homes are to be built next year, property prices may climb even higher, an outcome that could unsettle the RBA. For as it is, Australian home prices are among the least affordable in the world due to a chronic shortage in housing.
Analysts say that demand for home loans usually flag the growth in approvals for constructing new homes by three to six months.
'The RBA will not want to see a marked slowing in construction given the already established shortfall. This would simply put further pressure on house prices,' Ms Ong said.
The market was steady on the data, with the Australian dollar little changed at US$0.8939. Interbank futures showed investors were only fully priced for rates to rise to 4.75 per cent by November, from 4.5 per cent now.
Yesterday's data showed investment demand was the only resilient part of the market for home loans, with a 3.0 per cent rise in March after seasonal adjustments. That boded well for the rental market as it suggested more houses were available.
Yet, Julene Lee, an economist at Westpac, said that it is crucial to differentiate whether investors were buying existing housing stock or if they were looking to invest in new homes.
'Certainly there is the need for further additions to the housing stock given pent-up demand and strong population growth,' Ms Lee said.
The RBA has warned repeatedly that a shortage in housing may push up home prices. Prices have already recovered to record highs by most measures, even as the rest of the world is only starting to emerge from the financial crisis.
A private report showed that Australian house prices grew a sizzling 16.2 per cent in the first quarter, their fastest pace in six years.
The run-up in home prices was one reason the RBA has lifted rates by an aggressive 150 basis points since October to cool property demand.
But it is also well aware that higher borrowing costs are a double-edged sword since they crimp the construction of new homes, which is just what the market needs\. \-- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Property agencies clean-up long overdue
Business Times - 13 May 2010
Property agencies clean-up long overdue
SELDOM has news about an upcoming new statutory board been more welcomed than the announcement that a Council for Estate Agencies is on the cards, even if it's a move that's not so much timely as long overdue.
The new licensing requirements and rules under the new regulatory framework come at a time when the real estate agencies industry is operating in an almost unbridled laissez faire manner - where, with hardly any entry barriers to speak of, any Tom, Dick, housewife, retiree or school-leaver can not only become a housing agent in the red-hot Singapore market but thrive at it, as indeed many have done. Little wonder that the number of property agents here is variously estimated at between 25,000 and 30,000, from some 1,700 agencies, big and small. This is a remarkable figure considering that one would be hard pressed to come up with more than a dozen or so familiar big names among them.
One-person agencies, it would seem, rule the roost. But perhaps for not much longer. Up ahead, prospective agents will have to meet stiffer criteria, including holding at least four GCE O-level passes, passing a new mandatory industry examination, and enrolling in at least six hours of professional training a year. As well, those who want to set up a property agency cannot be undischarged bankrupts, possess criminal records involving fraud or dishonesty, or have previous track records of complaints as agents.
And they can't fleece cash-strapped homebuyers by brandishing a moneylender's licence. Indeed, enterprising entrepreneurs with great aptitude for both moneylending and property-transacting will have to give up their dreams of pursuing this dual-track career, and choose one or the other. And not least, a property agency licensee will need to have professional indemnity insurance to cover financial liabilities. One must wonder: if there are rules and regulations for the marketing and sale of personal financial products (albeit also only after much industry upheaval and public outcry), why has the marketing of property - which typically involves much bigger sums, and which is an individual's biggest investment - been unpoliced for so long?
Yet it remains to be seen if the proposed new regime will be enough to rid the real estate agency industry of its shady side. Insiders are not convinced. As one agency boss sees it, 'a lot of cowboys are still in the industry; the new rules will help improve the industry but will not clean it up'. But individual homebuyers can, and should, also help themselves. Here, the other focus of the council's work, apart from the measures directed at housing agents, is as noteworthy: public education. There will be measures to equip consumers with the knowledge to conduct their property transactions 'prudently and with due diligence', the government says. Indeed, with some effort and legwork, some people surely do it all themselves, thereby sending shoddy or errant housing agents the best notice.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Property agencies clean-up long overdue
SELDOM has news about an upcoming new statutory board been more welcomed than the announcement that a Council for Estate Agencies is on the cards, even if it's a move that's not so much timely as long overdue.
The new licensing requirements and rules under the new regulatory framework come at a time when the real estate agencies industry is operating in an almost unbridled laissez faire manner - where, with hardly any entry barriers to speak of, any Tom, Dick, housewife, retiree or school-leaver can not only become a housing agent in the red-hot Singapore market but thrive at it, as indeed many have done. Little wonder that the number of property agents here is variously estimated at between 25,000 and 30,000, from some 1,700 agencies, big and small. This is a remarkable figure considering that one would be hard pressed to come up with more than a dozen or so familiar big names among them.
One-person agencies, it would seem, rule the roost. But perhaps for not much longer. Up ahead, prospective agents will have to meet stiffer criteria, including holding at least four GCE O-level passes, passing a new mandatory industry examination, and enrolling in at least six hours of professional training a year. As well, those who want to set up a property agency cannot be undischarged bankrupts, possess criminal records involving fraud or dishonesty, or have previous track records of complaints as agents.
And they can't fleece cash-strapped homebuyers by brandishing a moneylender's licence. Indeed, enterprising entrepreneurs with great aptitude for both moneylending and property-transacting will have to give up their dreams of pursuing this dual-track career, and choose one or the other. And not least, a property agency licensee will need to have professional indemnity insurance to cover financial liabilities. One must wonder: if there are rules and regulations for the marketing and sale of personal financial products (albeit also only after much industry upheaval and public outcry), why has the marketing of property - which typically involves much bigger sums, and which is an individual's biggest investment - been unpoliced for so long?
Yet it remains to be seen if the proposed new regime will be enough to rid the real estate agency industry of its shady side. Insiders are not convinced. As one agency boss sees it, 'a lot of cowboys are still in the industry; the new rules will help improve the industry but will not clean it up'. But individual homebuyers can, and should, also help themselves. Here, the other focus of the council's work, apart from the measures directed at housing agents, is as noteworthy: public education. There will be measures to equip consumers with the knowledge to conduct their property transactions 'prudently and with due diligence', the government says. Indeed, with some effort and legwork, some people surely do it all themselves, thereby sending shoddy or errant housing agents the best notice.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
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