May 24, 2010
Mapping out 'future' MRT lines
FIVE years after Calvin Teo created a map of Singapore's MRT network and put it online, the drawing - which includes possible future rail lines - is still creating a stir.
The map even shows a near-accurate depiction of Downtown Lines 1 and 2, which were not announced by the Ministry of Transport until two years after the map was drawn.
Government Parliamentary Committee for Transport chairman Lim Wee Kiak said: 'The plan looks great. I do believe at the current rate we are investing in the rail system, we can achieve a network similar in density over the next 50 years.'
Mr Teo, 20, formerly a student at Raffles Institution and now an NSman, said he has always been interested in public transport.
He said information on future rail lines is 'out there', it just takes a bit of searching to find. His resources: Urban Redevelopment Authority masterplans, National Library archives, the Land Transport Authority (LTA) website and articles in The Straits Times.
He cautioned that not all the lines on the map will be as accurate as the Downtown Line, which is expected to be completed by 2015.
'The further into the future a line is, the less accurate,' he said.
He added that other enthusiasts have added to the map, putting in lines that go to Johor Baru and through Serangoon Gardens.
LTA chief executive Yam Ah Mee remembers Mr Teo well. He invited the young man over for tea when the map first surfaced in 2005.
'It's great that our young people are so keen about the land transport system - it belongs to them,' Mr Yam said.
The LTA however would not comment on lines shown on the map that have not been announced in detail officially. These include the Thomson Line, Downtown Line 3 and Eastern Region Line.
Mr Yam would say only that the rail network will continue to grow with the population.
The map has nevertheless become a favourite among property agents. It has been lifted from its Wikipedia page and posted on real estate sites such as singaporepropertylisting.com.
Land transport blogger Daniel Chin, 28, said similar maps have surfaced.
'There are unannounced new rail lines being studied and possibly implemented in the longer term, but whether or not they bear fruit depends on many factors,' he said.
CHRISTOPHER TAN
Monday, May 24, 2010
ST : 5 MRT lines to Marina Bay
May 24, 2010
5 MRT lines to Marina Bay
By 2018, it will have at least 6 stations, meaning walks of 5 minutes or less to reach one
By Christopher Tan
MARINA Bay is fast taking shape as Singapore's most rail-connected district, with no fewer than five MRT lines converging at the 360 ha reclaimed waterfront plot.
The first three new lines will open between 2012 and 2014, followed by two more by 2020.
And by 2018, the Marina Bay district will have six or more MRT stations within an area no bigger than Sengkang, while people who live or work there will have to walk no more than five minutes to reach one.
Land Transport Authority transport planning director Lina Lim said: 'The rail and road network in Marina Bay, which includes the upcoming Marina Coastal Expressway, will greatly enhance its accessibility.'
The rail lines, she added, will connect the new downtown to all the residential and commercial hubs of Singapore.
Academics say the area is a textbook example of a transport-oriented development (TOD), a catch phrase describing urban developments that maximise access to public transport.
But making it work in practice is not always as straightforward.
Government Parliamentary Committee for Transport chief Lim Wee Kiak said Marina Bay had a head start. 'The business district was planned from scratch, hence planners were able to ensure all essential elements, including transportation, were carefully considered.
'Since it is going to be our new business district, it has to be well connected, or super connected.'
An MRT line to Marina Bay was first announced in 1998. It was then known as the Marina Line, linking Dhoby Ghaut to the new downtown, and was to be completed in 2004. But the project was redrawn, and in 2005 it resurfaced as a Circle Line extension.
Transport researcher Lee Der Horng of the National University of Singapore said Marina Bay's success as a TOD depends on how convenient public transport there is compared with driving.
'Hong Kong is a very good example of a successful TOD,' he said. 'Hong Kong does not have COE or ERP, but the residents there choose public transport... The reason is very simple - public transport is easier and more convenient.'
Developers are excited about the prospects of a super-connected downtown. Hong Leong Group spokesman Gerry de Silva said prices of properties near MRT stations will rise as the network expands.
Last year, Transport Minister Raymond Lim told Parliament that commuters in the Marina Bay area will be able to reach an MRT station by walking no more than 400m on average. Some links will be completely underground, like the one joining City Hall station and Suntec City.
Mega developments at Marina Bay include the Marina Bay Sands integrated resort, Gardens at Marina South, and a new financial centre. Residential projects include The Sail. An international cruise centre capable of handling the world's biggest cruise liners will also be built there.
The Central Promontory, just across from the upcoming Downtown MRT station, will be a venue for entertainment and the arts.
But on the question of whether the new vibrancy will call for MRT trains to run longer hours, Associate Professor Anthony Chin, who specialises in transport economics at NUS, said: 'It takes more than night trains to make a city liveable and globally competitive. Someone has to pay for the increased cost of more night services. We have to weigh the incremental costs against the incremental benefits.'
christan@sph.com.sg
5 MRT lines to Marina Bay
By 2018, it will have at least 6 stations, meaning walks of 5 minutes or less to reach one
By Christopher Tan
MARINA Bay is fast taking shape as Singapore's most rail-connected district, with no fewer than five MRT lines converging at the 360 ha reclaimed waterfront plot.
The first three new lines will open between 2012 and 2014, followed by two more by 2020.
And by 2018, the Marina Bay district will have six or more MRT stations within an area no bigger than Sengkang, while people who live or work there will have to walk no more than five minutes to reach one.
Land Transport Authority transport planning director Lina Lim said: 'The rail and road network in Marina Bay, which includes the upcoming Marina Coastal Expressway, will greatly enhance its accessibility.'
The rail lines, she added, will connect the new downtown to all the residential and commercial hubs of Singapore.
Academics say the area is a textbook example of a transport-oriented development (TOD), a catch phrase describing urban developments that maximise access to public transport.
But making it work in practice is not always as straightforward.
Government Parliamentary Committee for Transport chief Lim Wee Kiak said Marina Bay had a head start. 'The business district was planned from scratch, hence planners were able to ensure all essential elements, including transportation, were carefully considered.
'Since it is going to be our new business district, it has to be well connected, or super connected.'
An MRT line to Marina Bay was first announced in 1998. It was then known as the Marina Line, linking Dhoby Ghaut to the new downtown, and was to be completed in 2004. But the project was redrawn, and in 2005 it resurfaced as a Circle Line extension.
Transport researcher Lee Der Horng of the National University of Singapore said Marina Bay's success as a TOD depends on how convenient public transport there is compared with driving.
'Hong Kong is a very good example of a successful TOD,' he said. 'Hong Kong does not have COE or ERP, but the residents there choose public transport... The reason is very simple - public transport is easier and more convenient.'
Developers are excited about the prospects of a super-connected downtown. Hong Leong Group spokesman Gerry de Silva said prices of properties near MRT stations will rise as the network expands.
Last year, Transport Minister Raymond Lim told Parliament that commuters in the Marina Bay area will be able to reach an MRT station by walking no more than 400m on average. Some links will be completely underground, like the one joining City Hall station and Suntec City.
Mega developments at Marina Bay include the Marina Bay Sands integrated resort, Gardens at Marina South, and a new financial centre. Residential projects include The Sail. An international cruise centre capable of handling the world's biggest cruise liners will also be built there.
The Central Promontory, just across from the upcoming Downtown MRT station, will be a venue for entertainment and the arts.
But on the question of whether the new vibrancy will call for MRT trains to run longer hours, Associate Professor Anthony Chin, who specialises in transport economics at NUS, said: 'It takes more than night trains to make a city liveable and globally competitive. Someone has to pay for the increased cost of more night services. We have to weigh the incremental costs against the incremental benefits.'
christan@sph.com.sg
ST : Waterfront promenade opens in north
May 24, 2010
Waterfront promenade opens in north
Phase 1 of $19m park in Woodlands boasts 400m long jetty and 'sky walk'
By Tan Weizhen
THE Woodlands coast took its most significant step yet in its transformation from sleepy industrial area to bustling waterfront promenade yesterday.
Once occupied by warehouses, the waterfront now boasts a modern park with highlights such as a 400m-long jetty - the longest in Singapore - and a playground equipped with a two-storey-high 'sky walk'.
Over 2,500 residents joined Sembawang GRC MP and Senior Parliamentary Secretary for Manpower and Health Hawazi Daipi yesterday for the phase one opening of the Woodlands Waterfront.
Phase two of the $19 million, 9ha park - which will feature, among other things, nature trails and a 700m promenade which will hang over the sea - will be opened only by the end of the year.
When fully completed, the 1.5km Woodlands promenade will form a significant part of the Urban Redevelopment Authority's (URA's) plan to link the north region's green spaces with park connectors, which by 2015, will stretch to 90km. Currently, the region has 19km of park connectors. URA's national objective is to build a 150km round island route, which will allow residents to walk, cycle or jog around Singapore.
Feedback played a crucial role in designing the Woodlands Waterfront, which offers a green oasis for residents to play, exercise or gather for activities, while enjoying the sea view. Ultimately, the final concept was a marriage of all that the stakeholders - residents, grassroot leaders and designers - wanted.
Mrs Cheong Koon Hean, URA's chief executive officer, said: 'It will bring the scenic northern coastline closer to people and offer more recreational choices, particularly for residents in the north.'
Features that are accessible now include a large event space called Central Spine, where residents can hold community activities, and Singapore's longest jetty.
The jetty, which dates back to the 1920s, has been refurbished and offers a close-up view of Johor Baru.
Jogging, cycling trails and rest areas weave through the promenade, together with a playground featuring a two- storey-high 'sky walk', a mesh bridge which people can climb up and across.
Residents who braved the scorching sun yesterday to enjoy the facilities were rewarded by the great sea view that the new waterfront offers.
Ms Wong Bee Ling, 39, who was there with her husband and children, was delighted with the facilities, especially the children's playground and the jetty.
'I'm pleasantly surprised, I didn't realise there was this spot in Woodlands. The view is nice and I'll be sure to come again in the future,' said the shipping executive, who lives in Woodlands.
tanwz@sph.com.sg
--------------------------------------------------------------------------------
MORE CHOICE FOR FUN
'It will bring the scenic northern coastline closer to people and offer more recreational choices.'
Mrs Cheong Koon Hean, chief executive officer of URA
Waterfront promenade opens in north
Phase 1 of $19m park in Woodlands boasts 400m long jetty and 'sky walk'
By Tan Weizhen
THE Woodlands coast took its most significant step yet in its transformation from sleepy industrial area to bustling waterfront promenade yesterday.
Once occupied by warehouses, the waterfront now boasts a modern park with highlights such as a 400m-long jetty - the longest in Singapore - and a playground equipped with a two-storey-high 'sky walk'.
Over 2,500 residents joined Sembawang GRC MP and Senior Parliamentary Secretary for Manpower and Health Hawazi Daipi yesterday for the phase one opening of the Woodlands Waterfront.
Phase two of the $19 million, 9ha park - which will feature, among other things, nature trails and a 700m promenade which will hang over the sea - will be opened only by the end of the year.
When fully completed, the 1.5km Woodlands promenade will form a significant part of the Urban Redevelopment Authority's (URA's) plan to link the north region's green spaces with park connectors, which by 2015, will stretch to 90km. Currently, the region has 19km of park connectors. URA's national objective is to build a 150km round island route, which will allow residents to walk, cycle or jog around Singapore.
Feedback played a crucial role in designing the Woodlands Waterfront, which offers a green oasis for residents to play, exercise or gather for activities, while enjoying the sea view. Ultimately, the final concept was a marriage of all that the stakeholders - residents, grassroot leaders and designers - wanted.
Mrs Cheong Koon Hean, URA's chief executive officer, said: 'It will bring the scenic northern coastline closer to people and offer more recreational choices, particularly for residents in the north.'
Features that are accessible now include a large event space called Central Spine, where residents can hold community activities, and Singapore's longest jetty.
The jetty, which dates back to the 1920s, has been refurbished and offers a close-up view of Johor Baru.
Jogging, cycling trails and rest areas weave through the promenade, together with a playground featuring a two- storey-high 'sky walk', a mesh bridge which people can climb up and across.
Residents who braved the scorching sun yesterday to enjoy the facilities were rewarded by the great sea view that the new waterfront offers.
Ms Wong Bee Ling, 39, who was there with her husband and children, was delighted with the facilities, especially the children's playground and the jetty.
'I'm pleasantly surprised, I didn't realise there was this spot in Woodlands. The view is nice and I'll be sure to come again in the future,' said the shipping executive, who lives in Woodlands.
tanwz@sph.com.sg
--------------------------------------------------------------------------------
MORE CHOICE FOR FUN
'It will bring the scenic northern coastline closer to people and offer more recreational choices.'
Mrs Cheong Koon Hean, chief executive officer of URA
ST : Smaller developers rise above giants
May 24, 2010
Smaller developers rise above giants
Some are outbidding big boys to top up their fast-depleting land banks
By Esther Teo
SMALL to mid-sized property developers are punching above their weight amid the aggressive jostling among industry players to replenish depleting land banks.
As the property market keeps sizzling, with a near-record 2,207 private homes sold last month, the rush to buy new residential sites has intensified with both higher-than-expected bid prices and a staggering number of developers' bids.
Yet, despite the fierce competition, the supposedly smaller fry have outdone the big boys. Chip Eng Seng's CEL Development, Fragrance Properties and Sim Lian Land are some which have outbid their larger competitors in recent government land tenders.
They have also shown their muscle in collective land sales, snagging most of the six en bloc sites that have been sold so far this year such as Culford Gardens in Siglap and Changi Complex.
Out of nine awarded tenders by the Government Land Sales (GLS) programme in the first half of this year for residential development, smaller developers have managed to clinch at least a respectable one-third of the pie, elbowing out bigger names such as Frasers Centrepoint and Far East Organization.
CEL, for example, emerged the top bidder out of a total of 18 with a much higher-than-expected bid of $152.69 million for a well-positioned 99-year leasehold site in Simei Street 3. This was 3 per cent higher than Frasers Centrepoint's bid of $148 million. Other bidders included Far East, MCL Land and Keppel Land.
Sim Lian Land also topped seven others - including a venture between heavyweights Frasers Centrepoint and Far East - to lodge the highest bid of $302 million for a residential site at the junction of Tampines Avenue 1 and Avenue 10.
Analysts say that while the boom in the property market caught both larger and smaller developers by surprise, the latter's typically smaller land banks meant they would soon be running low.
UOB Kay Hian senior investment analyst Vikrant Pandey said: 'Those hungry for land are bidding the most aggressively and it seems that, relative to larger developers, smaller developers have seen their land banks deplete much faster.'
Most of the en bloc sales sealed this year were also of smaller sites suitable for smaller scale residential projects that small to mid-sized developers - generally without the deep pockets of bigger developers - go for.
DMG & Partners Securities property analyst Brandon Lee said this 'aggressive bidding' by smaller developers indicated their confidence in at least a 10 per cent increase in home prices in the next seven to 12 months.
Larger developers such as Far East and Hong Leong were 'relatively more equipped', with larger land banks under their belts, while the smaller developers have been less successful in acquiring land over the past year, he said.
He said some smaller developers like Sim Lian and Chip Eng Seng had tried in vain for about eight months before succeeding in land tenders recently.
'(But) for the larger developers, the tender exercises helped to replenish the majority of what they cleared last year as some, notably Far East, Hong Leong and City Developments, have already managed to acquire about two to three sites since July last year,' Mr Lee added.
Some small to mid-cap players such as Allgreen Properties, Ho Bee Investment and GuocoLand have yet to secure new sites since the second half of last year.
Colliers International research and advisory director Tay Huey Ying said larger developers had already bid aggressively for land last year, while the smaller players might be less heavily committed and thus able to bid more.
'Private sector land might not be as forthcoming this time around... The process is also less straightforward than acquiring land from the GLS programme so smaller developers might be starting to divert their attention to bigger sites.'
Ngee Ann Polytechnic real estate lecturer Nicholas Mak added that recent bids might also suggest that as these firms gathered experience, they were also starting to graduate to larger sites.
He said that some of the smaller developers - construction firms that have made forays into property development - have an added incentive in tendering for development sites since both segments would benefit. The construction cost can also be managed more effectively.
'After the completion of the two integrated resorts, they might also be looking for new jobs to make sure that they continue to have a profit and revenue stream,' he said.
Despite these high bids, however, banks are usually willing to offer loans of up to 60 per cent to 70 per cent of the bid price, DMG's Mr Lee said. He does not expect financing to be an issue.
UOB's Mr Pandey added: 'Liquidity is still strong and banks are still more than willing to lend.'
esthert@sph.com.sg
Smaller developers rise above giants
Some are outbidding big boys to top up their fast-depleting land banks
By Esther Teo
SMALL to mid-sized property developers are punching above their weight amid the aggressive jostling among industry players to replenish depleting land banks.
As the property market keeps sizzling, with a near-record 2,207 private homes sold last month, the rush to buy new residential sites has intensified with both higher-than-expected bid prices and a staggering number of developers' bids.
Yet, despite the fierce competition, the supposedly smaller fry have outdone the big boys. Chip Eng Seng's CEL Development, Fragrance Properties and Sim Lian Land are some which have outbid their larger competitors in recent government land tenders.
They have also shown their muscle in collective land sales, snagging most of the six en bloc sites that have been sold so far this year such as Culford Gardens in Siglap and Changi Complex.
Out of nine awarded tenders by the Government Land Sales (GLS) programme in the first half of this year for residential development, smaller developers have managed to clinch at least a respectable one-third of the pie, elbowing out bigger names such as Frasers Centrepoint and Far East Organization.
CEL, for example, emerged the top bidder out of a total of 18 with a much higher-than-expected bid of $152.69 million for a well-positioned 99-year leasehold site in Simei Street 3. This was 3 per cent higher than Frasers Centrepoint's bid of $148 million. Other bidders included Far East, MCL Land and Keppel Land.
Sim Lian Land also topped seven others - including a venture between heavyweights Frasers Centrepoint and Far East - to lodge the highest bid of $302 million for a residential site at the junction of Tampines Avenue 1 and Avenue 10.
Analysts say that while the boom in the property market caught both larger and smaller developers by surprise, the latter's typically smaller land banks meant they would soon be running low.
UOB Kay Hian senior investment analyst Vikrant Pandey said: 'Those hungry for land are bidding the most aggressively and it seems that, relative to larger developers, smaller developers have seen their land banks deplete much faster.'
Most of the en bloc sales sealed this year were also of smaller sites suitable for smaller scale residential projects that small to mid-sized developers - generally without the deep pockets of bigger developers - go for.
DMG & Partners Securities property analyst Brandon Lee said this 'aggressive bidding' by smaller developers indicated their confidence in at least a 10 per cent increase in home prices in the next seven to 12 months.
Larger developers such as Far East and Hong Leong were 'relatively more equipped', with larger land banks under their belts, while the smaller developers have been less successful in acquiring land over the past year, he said.
He said some smaller developers like Sim Lian and Chip Eng Seng had tried in vain for about eight months before succeeding in land tenders recently.
'(But) for the larger developers, the tender exercises helped to replenish the majority of what they cleared last year as some, notably Far East, Hong Leong and City Developments, have already managed to acquire about two to three sites since July last year,' Mr Lee added.
Some small to mid-cap players such as Allgreen Properties, Ho Bee Investment and GuocoLand have yet to secure new sites since the second half of last year.
Colliers International research and advisory director Tay Huey Ying said larger developers had already bid aggressively for land last year, while the smaller players might be less heavily committed and thus able to bid more.
'Private sector land might not be as forthcoming this time around... The process is also less straightforward than acquiring land from the GLS programme so smaller developers might be starting to divert their attention to bigger sites.'
Ngee Ann Polytechnic real estate lecturer Nicholas Mak added that recent bids might also suggest that as these firms gathered experience, they were also starting to graduate to larger sites.
He said that some of the smaller developers - construction firms that have made forays into property development - have an added incentive in tendering for development sites since both segments would benefit. The construction cost can also be managed more effectively.
'After the completion of the two integrated resorts, they might also be looking for new jobs to make sure that they continue to have a profit and revenue stream,' he said.
Despite these high bids, however, banks are usually willing to offer loans of up to 60 per cent to 70 per cent of the bid price, DMG's Mr Lee said. He does not expect financing to be an issue.
UOB's Mr Pandey added: 'Liquidity is still strong and banks are still more than willing to lend.'
esthert@sph.com.sg
BT : Woodlands Waterfront launched
Business Times - 24 May 2010
Woodlands Waterfront launched
Project part of plan to enhance green spaces, water bodies
By ABIGAIL KOR
WOODLANDS Waterfront - Singapore's latest recreational addition in the north - was officially launched yesterday.
The launch, organised by Sembawang GRC, Nee Soon Central and Nee Soon East SMCs, was held in conjunction with a community walk and sports carnival attended by more than 2,500 people.
The project is part of the Urban Redevelopment Authority's Parks and Waterbodies Plan to enhance Singapore's green spaces and water bodies.
Woodlands Waterfront forms part of a network of parks and park connectors in the area and will be linked to the recently completed Admiralty Park and the park connector along Woodlands Centre Road and Admiralty Road West.
The project is being developed in two phases. Phase one, which features a 200m waterfront promenade connected to a 400m refurbished jetty, an interactive playground and an event plaza, has been completed.
The facilities have been designed to boost community bonding. For instance, the playground has facilities and fitness equipment to encourage residents of all age groups to interact. The waterfront promenade also offers various recreational activities to facilitate interaction.
Phase two, which will be completed by year-end, will provide a further 1.3km long waterfront promenade with fitness stations and lookout points.
Aiming for the new development to cater to the needs of the community, URA designed Woodlands Waterfront according to feedback from local people.
URA chief executive Cheong Koon Hean said: 'The Woodlands Waterfront is part of URA's plan to continually enhance the living environment by capitalising on natural assets to improve the quality of life.
'It will bring the scenic northern coastline closer to people and offer more choices, particularly for residents in the north.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Woodlands Waterfront launched
Project part of plan to enhance green spaces, water bodies
By ABIGAIL KOR
WOODLANDS Waterfront - Singapore's latest recreational addition in the north - was officially launched yesterday.
The launch, organised by Sembawang GRC, Nee Soon Central and Nee Soon East SMCs, was held in conjunction with a community walk and sports carnival attended by more than 2,500 people.
The project is part of the Urban Redevelopment Authority's Parks and Waterbodies Plan to enhance Singapore's green spaces and water bodies.
Woodlands Waterfront forms part of a network of parks and park connectors in the area and will be linked to the recently completed Admiralty Park and the park connector along Woodlands Centre Road and Admiralty Road West.
The project is being developed in two phases. Phase one, which features a 200m waterfront promenade connected to a 400m refurbished jetty, an interactive playground and an event plaza, has been completed.
The facilities have been designed to boost community bonding. For instance, the playground has facilities and fitness equipment to encourage residents of all age groups to interact. The waterfront promenade also offers various recreational activities to facilitate interaction.
Phase two, which will be completed by year-end, will provide a further 1.3km long waterfront promenade with fitness stations and lookout points.
Aiming for the new development to cater to the needs of the community, URA designed Woodlands Waterfront according to feedback from local people.
URA chief executive Cheong Koon Hean said: 'The Woodlands Waterfront is part of URA's plan to continually enhance the living environment by capitalising on natural assets to improve the quality of life.
'It will bring the scenic northern coastline closer to people and offer more choices, particularly for residents in the north.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
ST : Sub-sales hold steady but prices are up
May 23, 2010
property
Sub-sales hold steady but prices are up
Rise in prices mainly because of property market restrictions
By Joyce Teo
Investors who wish to enter the sub-sale market may have to be prepared to fork out more cash.
Although the volume of sub-sale transactions of non-landed homes stayed stable at 13 per cent of total non-landed sales in the first quarter, prices have risen, said property consultancy DTZ's latest report.
The median sub-sale price of non-landed private homes rose 9 per cent from the fourth quarter of last year to reach $1,190 per sq ft (psf) in the first quarter.
A sub-sale takes place when a buyer buys a new apartment, then resells it before it is built.
These deals are usually used as an indicator of speculative activity in the property market.
To rein in speculators, the Government implemented a seller's stamp duty and lowered the loan-to-value limit for housing loans from 90 per cent to 80 per cent in February this year.
Because of the extra 3 per cent that sellers have to pay for stamp duty if they offload a property within a year of purchase, they will want to push up their prices by a bit more, said Mr Joseph Tan of CBRE Research.
But DTZ said that these measures would not have much impact on the market as sub-sales are already at a low level.
During the 1995-1996 boom, sub-sales were a lot higher, contributing as much as 35 per cent of total sales, it said.
In the first quarter, One Amber in the Amber Road area saw the highest number of sub-sale deals, followed by The Parc Condominium at West Coast Walk.
Median prices of One Amber sub-sale units rose 5.9 per cent to $1,200 psf while The Parc Condominium saw a 3.3 per cent rise to $959 psf.
But that is because both projects are expected to be granted temporary occupation permit in the second quarter, DTZ said.
Interest in sub-sales tends to hot up just before a development is ready for occupation.
That is when some may want to cash out of their investment. And those who buy are able to move in immediately to a brand new home or rent it out.
Ms Chua Chor Hoon of DTZ said sub-sales should remain steady as many people buy for long-term investment, but prices are expected to rise in line with economic growth.
Next month, the sub-sale market may quieten down further because of the school holidays, the World Cup and the eurozone crisis, said Mr Tan. Activity could return after July if sentiment improves, he added.
joyceteo@sph.com.sg
property
Sub-sales hold steady but prices are up
Rise in prices mainly because of property market restrictions
By Joyce Teo
Investors who wish to enter the sub-sale market may have to be prepared to fork out more cash.
Although the volume of sub-sale transactions of non-landed homes stayed stable at 13 per cent of total non-landed sales in the first quarter, prices have risen, said property consultancy DTZ's latest report.
The median sub-sale price of non-landed private homes rose 9 per cent from the fourth quarter of last year to reach $1,190 per sq ft (psf) in the first quarter.
A sub-sale takes place when a buyer buys a new apartment, then resells it before it is built.
These deals are usually used as an indicator of speculative activity in the property market.
To rein in speculators, the Government implemented a seller's stamp duty and lowered the loan-to-value limit for housing loans from 90 per cent to 80 per cent in February this year.
Because of the extra 3 per cent that sellers have to pay for stamp duty if they offload a property within a year of purchase, they will want to push up their prices by a bit more, said Mr Joseph Tan of CBRE Research.
But DTZ said that these measures would not have much impact on the market as sub-sales are already at a low level.
During the 1995-1996 boom, sub-sales were a lot higher, contributing as much as 35 per cent of total sales, it said.
In the first quarter, One Amber in the Amber Road area saw the highest number of sub-sale deals, followed by The Parc Condominium at West Coast Walk.
Median prices of One Amber sub-sale units rose 5.9 per cent to $1,200 psf while The Parc Condominium saw a 3.3 per cent rise to $959 psf.
But that is because both projects are expected to be granted temporary occupation permit in the second quarter, DTZ said.
Interest in sub-sales tends to hot up just before a development is ready for occupation.
That is when some may want to cash out of their investment. And those who buy are able to move in immediately to a brand new home or rent it out.
Ms Chua Chor Hoon of DTZ said sub-sales should remain steady as many people buy for long-term investment, but prices are expected to rise in line with economic growth.
Next month, the sub-sale market may quieten down further because of the school holidays, the World Cup and the eurozone crisis, said Mr Tan. Activity could return after July if sentiment improves, he added.
joyceteo@sph.com.sg
ST : Bukit Sembawang stages strong revival
May 22, 2010
Bukit Sembawang stages strong revival
By Marissa Lee
PROPERTY developer Bukit Sembawang Estates has posted a hefty $41.9 million fourth quarter net profit in a strong comeback from a $61.4 million net loss in the same period last year.
This was despite higher expenses, mainly the higher construction and land costs of the company's development projects.
For the full year ended March 31, Bukit Sembawang posted a $53 million net profit, reversing a $48.4 million net loss in the year before.
This was partly attributable to a write-back of allowance for foreseeable losses amounting to $40 million, arising from an increase in the valuation of the group's Fairways development project.
Fourth quarter revenue more than quadrupled to $21 million from $4.9 million in the same period a year earlier.
Full-year revenue was $66 million, up 5.4 per cent from the previous year's figure.
Bukit Sembawang said in a statement yesterday that it expects profit for the current year ending March 31 next year to surpass its recent result.
The group cited Urban Redevelopment Authority statistics, showing that new residential property sales had hit 4,380 units in the first quarter of this year.
'With the positive economic climate and improved sentiment in the Singapore residential property market, the group expects a sustainable pace of sale of our residential development projects this year,' the report said.
Last month, the group launched Luxus Hills Phase 3, involving 46 units, to strong response from home buyers. All units have been sold.
In the months to come, the group is set to launch two more residential development projects. These are Paterson Suites (82 units) and The Vermont on Cairnhill ( 158 units).
Full-year earnings per share were 22.71 cents, down from a loss per share of 39.35 cents the previous year.
The group's net asset value per share stood at $3.21 as of March 31, down from $3.77 a year earlier.
The company's board has recommended a final dividend of four cents a share.
Bukit Sembawang shares closed three cents lower at $4.60 yesterday.
Bukit Sembawang stages strong revival
By Marissa Lee
PROPERTY developer Bukit Sembawang Estates has posted a hefty $41.9 million fourth quarter net profit in a strong comeback from a $61.4 million net loss in the same period last year.
This was despite higher expenses, mainly the higher construction and land costs of the company's development projects.
For the full year ended March 31, Bukit Sembawang posted a $53 million net profit, reversing a $48.4 million net loss in the year before.
This was partly attributable to a write-back of allowance for foreseeable losses amounting to $40 million, arising from an increase in the valuation of the group's Fairways development project.
Fourth quarter revenue more than quadrupled to $21 million from $4.9 million in the same period a year earlier.
Full-year revenue was $66 million, up 5.4 per cent from the previous year's figure.
Bukit Sembawang said in a statement yesterday that it expects profit for the current year ending March 31 next year to surpass its recent result.
The group cited Urban Redevelopment Authority statistics, showing that new residential property sales had hit 4,380 units in the first quarter of this year.
'With the positive economic climate and improved sentiment in the Singapore residential property market, the group expects a sustainable pace of sale of our residential development projects this year,' the report said.
Last month, the group launched Luxus Hills Phase 3, involving 46 units, to strong response from home buyers. All units have been sold.
In the months to come, the group is set to launch two more residential development projects. These are Paterson Suites (82 units) and The Vermont on Cairnhill ( 158 units).
Full-year earnings per share were 22.71 cents, down from a loss per share of 39.35 cents the previous year.
The group's net asset value per share stood at $3.21 as of March 31, down from $3.77 a year earlier.
The company's board has recommended a final dividend of four cents a share.
Bukit Sembawang shares closed three cents lower at $4.60 yesterday.
ST : Real estate group unveils enhanced accreditation system
May 22, 2010
Real estate group unveils enhanced accreditation system
By Dawn Zeng
A REAL estate agency body has unveiled a revamped system of accreditation that allows its members to complement the Government's newly announced mandatory licensing scheme for the industry.
According to the Singapore Accredited Estate Agencies (SAEA), its enhanced accreditation role for estate agencies and agents seeks to further develop the industry in collaboration with the Singapore Institute of Surveyors and Valuers (SISV) - the national real estate professional body.
Under a new regulatory framework the Government announced two weeks ago, all property agents will need to be registered with the Council for Estate Agencies, a new statutory board that will also be responsible for licensing estate agencies.
SAEA said the enhanced accreditation would complement the new registration system set up by the Government.
'To be registered with the Council for Estate Agencies shall be a basic entry requirement into the industry, and that is only the beginning,' said Dr Tan Tee Khoon, chief executive of SAEA.
'Having the SAEA accreditation adds value to the agency, agent or salesman as having achieved the mark of professional business practice,' he added.
Accredited agencies of SAEA will get assistance in cutting business costs, developing leadership, engaging in professional upgrading courses and increasing their capabilities to compete not just in Singapore but internationally as well.
The two organisations will jointly organise continuing professional development courses for SAEA members. This will help to provide a pathway to SISV membership.
SAEA will also use SISV's existing mediation centre facilities.
SISV offers mediation services to its members, even in disputes between agencies and between agents, an area not addressed in the new regime, said its executive director, Ms Evelyn Chang.
'SISV remains committed to its role of nurturing and developing the estate agency industry. We fully support the Government's introduction of the new regulatory system in Singapore,' she said.
Real estate group unveils enhanced accreditation system
By Dawn Zeng
A REAL estate agency body has unveiled a revamped system of accreditation that allows its members to complement the Government's newly announced mandatory licensing scheme for the industry.
According to the Singapore Accredited Estate Agencies (SAEA), its enhanced accreditation role for estate agencies and agents seeks to further develop the industry in collaboration with the Singapore Institute of Surveyors and Valuers (SISV) - the national real estate professional body.
Under a new regulatory framework the Government announced two weeks ago, all property agents will need to be registered with the Council for Estate Agencies, a new statutory board that will also be responsible for licensing estate agencies.
SAEA said the enhanced accreditation would complement the new registration system set up by the Government.
'To be registered with the Council for Estate Agencies shall be a basic entry requirement into the industry, and that is only the beginning,' said Dr Tan Tee Khoon, chief executive of SAEA.
'Having the SAEA accreditation adds value to the agency, agent or salesman as having achieved the mark of professional business practice,' he added.
Accredited agencies of SAEA will get assistance in cutting business costs, developing leadership, engaging in professional upgrading courses and increasing their capabilities to compete not just in Singapore but internationally as well.
The two organisations will jointly organise continuing professional development courses for SAEA members. This will help to provide a pathway to SISV membership.
SAEA will also use SISV's existing mediation centre facilities.
SISV offers mediation services to its members, even in disputes between agencies and between agents, an area not addressed in the new regime, said its executive director, Ms Evelyn Chang.
'SISV remains committed to its role of nurturing and developing the estate agency industry. We fully support the Government's introduction of the new regulatory system in Singapore,' she said.
ST : Largest land release for private homes
May 22, 2010
Largest land release for private homes
Govt's move likely to rein in sky-high bids by developers, say experts
By Joyce Teo & Fiona Chan
THE Government has moved to meet surging demand for housing by lining up the largest ever release of state land for private homes.
It has placed 18 residential or residential/commercial sites on the programme for confirmed sale in the second half of the year.
There will also be 13 sites for residential use on the reserve list. These plots - of which 20 are new and not rolled over previously - could accommodate about 13,905 new homes.
The plots range from areas in Jurong West to Pasir Ris and include land in mass-market areas like Hougang and Tampines.
'I hope that with this increased supply, home buyers will be assured that there is ample supply in the market and therefore... there is no need to rush,' said National Development Minister Mah Bow Tan yesterday.
'So this will probably... dampen some of the exuberance in the market,' he added.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said 'home buyers will be spoilt for choice and the competition should moderate mass market home prices'.
The supply announced yesterday is 32 per cent more than the amount of land introduced in the first half of this year and is sure to put the brakes on developers bidding sky-high prices for sites, say property experts. And that means more reasonable prices for buyers as well.
'The Government is sending a strong signal to developers that there is no need to bid very high prices. Developers also have a good choice of reserve list sites but they will have to share the responsibility if there is a glut,' said Mr Mak.
The 18 confirmed list sites include five executive condominium plots. They will go on sale regardless of developers' prior indications of interest.
They will yield an estimated 8,135 housing units. This will be the highest number of units in any one release since land sales started in 1967.
The previous record was a release in the second half of the 2007 boom year that could accommodate just 3,000 units.
The reserve list contains 12 residential sites and one plot for commercial and residential use. These go on sale only if developers signal interest by making an acceptable initial offer.
Apart from a mixed-use site, the confirmed non-landed residential plots are in mass market spots such as Hougang, Punggol, Woodlands and Tampines. They can yield 265 to 810 units each.
CBRE Research believes that sites near MRT stations will continue to attract strong interest.
Mr Mah had said in March this year that the Government will ramp up supply in the second half of the year to give developers more choice.
His comments came after the Government introduced two rounds of cooling measures, in September last year and again in February.
Yet demand has remained strong. In the first four months of the year, developers have already sold 6,587 units of new private homes - nearly 45 per cent of the entire sales last year.
Mass-market home prices have exceeded the 2007 peak levels and look set to rise further with developers bidding hard for sites.
'Developers afraid of emptying their landbank were bidding aggressively and prices were getting too crazy. Now, the whole system will adjust itself,' said a developer.
Colliers International investment sales executive director Ho Eng Joo added: 'Many developers are still hungry for land, but the huge confirmed list supply will prevent prices from rising significantly.'
Jones Lang LaSalle's head of research for South-east Asia, Dr Chua Yang Liang, agreed: 'It looks like they are using the supply approach to cool prices. But the large supply is likely to affect prices only in the longer term.
'In the short term, demand is still supported by the economic recovery in the region and low interest rate environment.'
Dr Chua added the pace of demand has slowed in recent weeks, due to uncertainty over the euro zone crisis in Europe.
'Overall, mass-market home prices have risen. Will this supply bring it back down? I don't think so but it will help check the price growth.'
joyceteo@sph.com.sg
fiochan@sph.com.sg
Largest land release for private homes
Govt's move likely to rein in sky-high bids by developers, say experts
By Joyce Teo & Fiona Chan
THE Government has moved to meet surging demand for housing by lining up the largest ever release of state land for private homes.
It has placed 18 residential or residential/commercial sites on the programme for confirmed sale in the second half of the year.
There will also be 13 sites for residential use on the reserve list. These plots - of which 20 are new and not rolled over previously - could accommodate about 13,905 new homes.
The plots range from areas in Jurong West to Pasir Ris and include land in mass-market areas like Hougang and Tampines.
'I hope that with this increased supply, home buyers will be assured that there is ample supply in the market and therefore... there is no need to rush,' said National Development Minister Mah Bow Tan yesterday.
'So this will probably... dampen some of the exuberance in the market,' he added.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said 'home buyers will be spoilt for choice and the competition should moderate mass market home prices'.
The supply announced yesterday is 32 per cent more than the amount of land introduced in the first half of this year and is sure to put the brakes on developers bidding sky-high prices for sites, say property experts. And that means more reasonable prices for buyers as well.
'The Government is sending a strong signal to developers that there is no need to bid very high prices. Developers also have a good choice of reserve list sites but they will have to share the responsibility if there is a glut,' said Mr Mak.
The 18 confirmed list sites include five executive condominium plots. They will go on sale regardless of developers' prior indications of interest.
They will yield an estimated 8,135 housing units. This will be the highest number of units in any one release since land sales started in 1967.
The previous record was a release in the second half of the 2007 boom year that could accommodate just 3,000 units.
The reserve list contains 12 residential sites and one plot for commercial and residential use. These go on sale only if developers signal interest by making an acceptable initial offer.
Apart from a mixed-use site, the confirmed non-landed residential plots are in mass market spots such as Hougang, Punggol, Woodlands and Tampines. They can yield 265 to 810 units each.
CBRE Research believes that sites near MRT stations will continue to attract strong interest.
Mr Mah had said in March this year that the Government will ramp up supply in the second half of the year to give developers more choice.
His comments came after the Government introduced two rounds of cooling measures, in September last year and again in February.
Yet demand has remained strong. In the first four months of the year, developers have already sold 6,587 units of new private homes - nearly 45 per cent of the entire sales last year.
Mass-market home prices have exceeded the 2007 peak levels and look set to rise further with developers bidding hard for sites.
'Developers afraid of emptying their landbank were bidding aggressively and prices were getting too crazy. Now, the whole system will adjust itself,' said a developer.
Colliers International investment sales executive director Ho Eng Joo added: 'Many developers are still hungry for land, but the huge confirmed list supply will prevent prices from rising significantly.'
Jones Lang LaSalle's head of research for South-east Asia, Dr Chua Yang Liang, agreed: 'It looks like they are using the supply approach to cool prices. But the large supply is likely to affect prices only in the longer term.
'In the short term, demand is still supported by the economic recovery in the region and low interest rate environment.'
Dr Chua added the pace of demand has slowed in recent weeks, due to uncertainty over the euro zone crisis in Europe.
'Overall, mass-market home prices have risen. Will this supply bring it back down? I don't think so but it will help check the price growth.'
joyceteo@sph.com.sg
fiochan@sph.com.sg
ST : Show & sell
May 22, 2010
Show & sell
Showflats furnished to the tune of thousands of dollars are later sold lock, stock and barrel
By tay suan chiang
Property buyers know that the mantra is location, location, location, but once inside the showflat, what can clinch a deal is the furniture, furniture, furniture.
No expense is spared by developers in decking out their showflats, sometimes to the tune of many thousands of dollars, to persuade a hopeful buyer that this is The One.
Think plush sofas and chairs, and marble dining tables with matching dining chairs. And luxurious beds piled high with plump pillows in stylish fabrics.
'A great deal of attention and time is spent on the interior design of our showflats to enhance the unit's quality finishings and layout,' says Ms Tan Bee Kim, director of Wheelock Properties.
The showflat is open for inspection during the sale period. After that, it is dismantled if it is a stand-alone unit or sold off if it is part of the project.
But what happens to all that desirable furniture? Developers that Life! spoke to have several ways of handling that.
Ms Tan says that 'if the showflat is built within an actual unit, the furnishings will be sold together with the unit. Where the showflat is built in a temporary structure, furnishings are sold off'.
One of Wheelock's latest projects is luxury condo Orchard View in Anguilla Park, which has 30 four-bedroom units. One of these is used as the showflat.
Orchard View received its TOP (Temporary Occupation Permit) earlier this week and six units have been sold since its soft launch two week ago. The unfurnished units are going from $3,100 per square foot.
The showflat is decked out with wallpaper, plush sofas and even an outdoor swinging day bed which overlooks Orchard Road.
Wheelock declined to reveal the cost of this furnished unit but says that some customers have expressed interest in purchasing the showflat complete with decor.
However, they will have to wait as it will be up for grabs only when the project is fully sold.
On the allure of this all-in-one unit, Ms Tan says: 'Our showflats are meticulously styled by a team of consultants with furnishing and accessories sourced locally and overseas.
'Bespoke pieces further enhance the personality of the apartment and offer buyers a unique home ready for immediate occupation.'
Similarly for property developer Wing Tai, it has three on-site showflats at its Belle Vue project in Oxley Walk that will be put up for sale fully furnished.
Furniture and accessories from well-known brands such as Poltrona Frau, Moooi, Carl Hansen, Cassina and Kartell dot one of these, a $6.5-million four-bedroom apartment. A similar unfurnished one costs $6 million.
'Some buyers, especially our overseas clients, seek a furnished apartment for the convenience of relocation and immediate occupation,' says Ms Len Siew Lian, Wing Tai's general manager for property.
Should a home owner buy that unit but does not like the furnishings, Ms Len says 'it's the owner's choice what he wishes to do with it after the purchase'.
She adds that the apartment will be cleaned before being handed over to the buyer. 'Once sold, there'll be no more viewing of that particular showflat unit,' she says.
Mr Thio Gim Hock, chief executive officer of property developer Overseas Union Enterprise (OUE), says he will not have a problem of leftover furniture on his hands for his company's only residential development, Twin Peaks, an upcoming project in Leonie Hill Road at the former Grangeford condo site.
That is because the project is being sold fully furnished - a first in Singapore. All its 462 units will come with the same furniture seen at its showflat.
'The chairs, lights, tables, beds, blinds and even bedlinen will all be provided,' says Mr Thio. 'The apartments will be ready for use.' It has hired interior firm Suying Design to fit out the apartments.
The furniture includes designer classics such as Carl Hansen Wishbone chairs and the Eames Lounger and Ottoman by designer duo Charles and Ray Eames.
Twin Peaks will be launched only next month, but Mr Thio says it has already shown the showflat to some 'bankers, investors and foreigners'.
'They have indicated their interest to buy,' he says. He declines to reveal how much the apartments will cost, saying only that they will be 'at market price'.
He also declines to say how much the furniture is worth. Buyers who do not like what is there can request a change. 'They can also select their own colours for the furniture,' he adds.
These furnished apartments will appeal to investors who want to rent out the apartments immediately, or to home owners who do not want to have to deal with finding furnishings for their home, he says.
Home buyers whom Life! spoke to have different thoughts on buying furnished showflats.
Financial consultant Brandon Tan, 49, gives it the thumbs-up. He says: 'It saves me the trouble of hunting for furniture, and the choice is tastefully selected. I need to take only my clothes to the new home when I move in.'
But for bank relationship manager Yasmine Lee, 30, buying a furnished apartment is not something she will consider.
'I don't like knowing hundreds of people have stepped into my home or sat on the furniture. Plus, I like the idea of dressing up the home myself,' she says.
Other developers choose to go the recycling route. A Frasers Centrepoint spokesman says that 'as part of our ongoing effort to be environmentally friendly, we will recycle some of the furniture, lighting and small landscaping items for our subsequent showflats'.
A Keppel Land spokesman says that for its showflats, a 'small number of items are recycled but the majority will be sold off'. He declines to give further details but adds that 'we may use them to furnish completed units that are unsold, if such opportunities are available, and sell these units furnished'.
Over at CapitaLand, its spokesman says that 'art pieces that are on loan are returned, while some basic furniture items are donated to charitable organisations and other household accessories are stored for future use'.
taysc@sph.com.sg
All the units in Twin Peaks are sold completely furnished while only three units in Belle Vue will come all done up. -- ST PHOTOS: MALCOLM KOH
Show & sell
Showflats furnished to the tune of thousands of dollars are later sold lock, stock and barrel
By tay suan chiang
Property buyers know that the mantra is location, location, location, but once inside the showflat, what can clinch a deal is the furniture, furniture, furniture.
No expense is spared by developers in decking out their showflats, sometimes to the tune of many thousands of dollars, to persuade a hopeful buyer that this is The One.
Think plush sofas and chairs, and marble dining tables with matching dining chairs. And luxurious beds piled high with plump pillows in stylish fabrics.
'A great deal of attention and time is spent on the interior design of our showflats to enhance the unit's quality finishings and layout,' says Ms Tan Bee Kim, director of Wheelock Properties.
The showflat is open for inspection during the sale period. After that, it is dismantled if it is a stand-alone unit or sold off if it is part of the project.
But what happens to all that desirable furniture? Developers that Life! spoke to have several ways of handling that.
Ms Tan says that 'if the showflat is built within an actual unit, the furnishings will be sold together with the unit. Where the showflat is built in a temporary structure, furnishings are sold off'.
One of Wheelock's latest projects is luxury condo Orchard View in Anguilla Park, which has 30 four-bedroom units. One of these is used as the showflat.
Orchard View received its TOP (Temporary Occupation Permit) earlier this week and six units have been sold since its soft launch two week ago. The unfurnished units are going from $3,100 per square foot.
The showflat is decked out with wallpaper, plush sofas and even an outdoor swinging day bed which overlooks Orchard Road.
Wheelock declined to reveal the cost of this furnished unit but says that some customers have expressed interest in purchasing the showflat complete with decor.
However, they will have to wait as it will be up for grabs only when the project is fully sold.
On the allure of this all-in-one unit, Ms Tan says: 'Our showflats are meticulously styled by a team of consultants with furnishing and accessories sourced locally and overseas.
'Bespoke pieces further enhance the personality of the apartment and offer buyers a unique home ready for immediate occupation.'
Similarly for property developer Wing Tai, it has three on-site showflats at its Belle Vue project in Oxley Walk that will be put up for sale fully furnished.
Furniture and accessories from well-known brands such as Poltrona Frau, Moooi, Carl Hansen, Cassina and Kartell dot one of these, a $6.5-million four-bedroom apartment. A similar unfurnished one costs $6 million.
'Some buyers, especially our overseas clients, seek a furnished apartment for the convenience of relocation and immediate occupation,' says Ms Len Siew Lian, Wing Tai's general manager for property.
Should a home owner buy that unit but does not like the furnishings, Ms Len says 'it's the owner's choice what he wishes to do with it after the purchase'.
She adds that the apartment will be cleaned before being handed over to the buyer. 'Once sold, there'll be no more viewing of that particular showflat unit,' she says.
Mr Thio Gim Hock, chief executive officer of property developer Overseas Union Enterprise (OUE), says he will not have a problem of leftover furniture on his hands for his company's only residential development, Twin Peaks, an upcoming project in Leonie Hill Road at the former Grangeford condo site.
That is because the project is being sold fully furnished - a first in Singapore. All its 462 units will come with the same furniture seen at its showflat.
'The chairs, lights, tables, beds, blinds and even bedlinen will all be provided,' says Mr Thio. 'The apartments will be ready for use.' It has hired interior firm Suying Design to fit out the apartments.
The furniture includes designer classics such as Carl Hansen Wishbone chairs and the Eames Lounger and Ottoman by designer duo Charles and Ray Eames.
Twin Peaks will be launched only next month, but Mr Thio says it has already shown the showflat to some 'bankers, investors and foreigners'.
'They have indicated their interest to buy,' he says. He declines to reveal how much the apartments will cost, saying only that they will be 'at market price'.
He also declines to say how much the furniture is worth. Buyers who do not like what is there can request a change. 'They can also select their own colours for the furniture,' he adds.
These furnished apartments will appeal to investors who want to rent out the apartments immediately, or to home owners who do not want to have to deal with finding furnishings for their home, he says.
Home buyers whom Life! spoke to have different thoughts on buying furnished showflats.
Financial consultant Brandon Tan, 49, gives it the thumbs-up. He says: 'It saves me the trouble of hunting for furniture, and the choice is tastefully selected. I need to take only my clothes to the new home when I move in.'
But for bank relationship manager Yasmine Lee, 30, buying a furnished apartment is not something she will consider.
'I don't like knowing hundreds of people have stepped into my home or sat on the furniture. Plus, I like the idea of dressing up the home myself,' she says.
Other developers choose to go the recycling route. A Frasers Centrepoint spokesman says that 'as part of our ongoing effort to be environmentally friendly, we will recycle some of the furniture, lighting and small landscaping items for our subsequent showflats'.
A Keppel Land spokesman says that for its showflats, a 'small number of items are recycled but the majority will be sold off'. He declines to give further details but adds that 'we may use them to furnish completed units that are unsold, if such opportunities are available, and sell these units furnished'.
Over at CapitaLand, its spokesman says that 'art pieces that are on loan are returned, while some basic furniture items are donated to charitable organisations and other household accessories are stored for future use'.
taysc@sph.com.sg
All the units in Twin Peaks are sold completely furnished while only three units in Belle Vue will come all done up. -- ST PHOTOS: MALCOLM KOH
ST : Construction of new Jurong mall finally kicks off
May 22, 2010
Construction of new Jurong mall finally kicks off
By Jessica Lim
AFTER much delay, construction of a new mall on the site of the former Jurong Entertainment Centre has started. It is one of several heartland malls opening in the next two years.
Work on the $200 million mall, owned by CapitaMall Trust and managed by CapitaMalls Asia, was stalled in 2008 as high construction costs and the competitive market for resources crippled the building industry here.
Looking back, the unforeseen deferment was perhaps a blessing in disguise, said chief executive of CapitaMall Trust Management, Mr Simon Ho, who added that the 'financial crisis had yet to wreak its full fury then'.
The opening of the mall, in the first quarter of 2012, will be timely because as it is, 'the overall economic outlook is more positive now, there is stronger consumer confidence and people are spending again', said Mr Ho, speaking at the mall's ground-breaking ceremony yesterday.
The new mall, named JCube, will have a net lettable area of 204,000 sq ft - double the size of the original mall - with a rooftop garden, an Olympic-size 30m by 60m ice-skating rink and a multiplex cinema. It is also likely to open till late, or even operate 24 hours, to meet the demands of shift workers in the area, said Mr Ho.
Its facade will resemble a glistening ice cube.
The eco-friendly mall, which features a rainwater harvesting tank and recycled water for its ice rink, joins a number of suburban malls opening in the next few years.
Frasers Centrepoint Malls' 81,000 sq ft Bedok Point will open in the fourth quarter of this year, Serangoon Central's 600,000 sq ft mall, nex, will open next March and the 190,000 sq ft Clementi Mall will open early next year.
Ms Grace Fu, Senior Minister of State for National Development and Education and an MP for Jurong GRC, said the JCube mall would provide a lot of new options to residents in the Jurong area. Residents, she said, have been 'eagerly waiting for the new mall to open'.
They were not the only ones.
The mall's opening has also been long anticipated by the Singapore Ice Skating Association, which cannot become a member of the International Skating Union (ISU) without an Olympic-size facility for use.
Singapore must be an ISU member for Singaporeans to compete in events like the Olympics and World Championships.
Construction of new Jurong mall finally kicks off
By Jessica Lim
AFTER much delay, construction of a new mall on the site of the former Jurong Entertainment Centre has started. It is one of several heartland malls opening in the next two years.
Work on the $200 million mall, owned by CapitaMall Trust and managed by CapitaMalls Asia, was stalled in 2008 as high construction costs and the competitive market for resources crippled the building industry here.
Looking back, the unforeseen deferment was perhaps a blessing in disguise, said chief executive of CapitaMall Trust Management, Mr Simon Ho, who added that the 'financial crisis had yet to wreak its full fury then'.
The opening of the mall, in the first quarter of 2012, will be timely because as it is, 'the overall economic outlook is more positive now, there is stronger consumer confidence and people are spending again', said Mr Ho, speaking at the mall's ground-breaking ceremony yesterday.
The new mall, named JCube, will have a net lettable area of 204,000 sq ft - double the size of the original mall - with a rooftop garden, an Olympic-size 30m by 60m ice-skating rink and a multiplex cinema. It is also likely to open till late, or even operate 24 hours, to meet the demands of shift workers in the area, said Mr Ho.
Its facade will resemble a glistening ice cube.
The eco-friendly mall, which features a rainwater harvesting tank and recycled water for its ice rink, joins a number of suburban malls opening in the next few years.
Frasers Centrepoint Malls' 81,000 sq ft Bedok Point will open in the fourth quarter of this year, Serangoon Central's 600,000 sq ft mall, nex, will open next March and the 190,000 sq ft Clementi Mall will open early next year.
Ms Grace Fu, Senior Minister of State for National Development and Education and an MP for Jurong GRC, said the JCube mall would provide a lot of new options to residents in the Jurong area. Residents, she said, have been 'eagerly waiting for the new mall to open'.
They were not the only ones.
The mall's opening has also been long anticipated by the Singapore Ice Skating Association, which cannot become a member of the International Skating Union (ISU) without an Olympic-size facility for use.
Singapore must be an ISU member for Singaporeans to compete in events like the Olympics and World Championships.
ST : Estate agents dropping moneylending role a good move: SAEA
May 22, 2010
Estate agents dropping moneylending role a good move: SAEA
WITH reference to Thursday's report ('Grouses spark crackdown on moneylenders'), the Singapore Accredited Estate Agencies (SAEA) is heartened to learn that licensed moneylenders who are concurrently running property businesses have indicated their intention to give up the former and concentrate on their estate agency work.
SAEA has always held that the two businesses should not mix and does not agree with the view that the credit business is a natural corollary of estate agency work as conflict of interest will arise in acting for a client in a property transaction and extending a loan to the same.
It is also felt by some cited in the report that 'people will turn to loan sharks again' if licensed moneylenders cannot lodge caveats on HDB flats as a collateral for lending and even the small number of property agencies and/or agents who are in the credit business are shipping out of it. The concerns may be unfounded.
The police have relentlessly pressed on with its ground efforts against loan sharks. Arrest figures reported remain high - 958 arrests last year which is a 90 per cent increase from the year before. Arrests apparently reached a high of 132 in January this year, compared to a monthly arrest rate of 80 last year. That shows that law enforcement agencies are focusing on this problem, apprehending runners as well as targeting syndicates.
On Jan 12, Parliament passed the Bill to strengthen the Moneylenders Act, including mandatory caning for first-time offenders who carry out or instigate harassment activities, and freezing the assets of loan sharks. While the proposal to criminalise those who borrow from loan sharks has been put on hold for now, borrowers who provide loan sharks with a false or outdated address may be jailed for up to a year. With the slew of measures in place in the amended Moneylenders Act, the fear that people will turn to loan sharks again is more imagined than real.
Estate agents who are aware of their clients' dire financial plight should advise them to seek appropriate avenues in addressing their debt situation, such as Credit Counselling Singapore, and not encourage them to sell their HDB flats as a first resort.
Dr Tan Tee Khoon
Chief Executive Officer
Singapore Accredited Estate Agencies
Estate agents dropping moneylending role a good move: SAEA
WITH reference to Thursday's report ('Grouses spark crackdown on moneylenders'), the Singapore Accredited Estate Agencies (SAEA) is heartened to learn that licensed moneylenders who are concurrently running property businesses have indicated their intention to give up the former and concentrate on their estate agency work.
SAEA has always held that the two businesses should not mix and does not agree with the view that the credit business is a natural corollary of estate agency work as conflict of interest will arise in acting for a client in a property transaction and extending a loan to the same.
It is also felt by some cited in the report that 'people will turn to loan sharks again' if licensed moneylenders cannot lodge caveats on HDB flats as a collateral for lending and even the small number of property agencies and/or agents who are in the credit business are shipping out of it. The concerns may be unfounded.
The police have relentlessly pressed on with its ground efforts against loan sharks. Arrest figures reported remain high - 958 arrests last year which is a 90 per cent increase from the year before. Arrests apparently reached a high of 132 in January this year, compared to a monthly arrest rate of 80 last year. That shows that law enforcement agencies are focusing on this problem, apprehending runners as well as targeting syndicates.
On Jan 12, Parliament passed the Bill to strengthen the Moneylenders Act, including mandatory caning for first-time offenders who carry out or instigate harassment activities, and freezing the assets of loan sharks. While the proposal to criminalise those who borrow from loan sharks has been put on hold for now, borrowers who provide loan sharks with a false or outdated address may be jailed for up to a year. With the slew of measures in place in the amended Moneylenders Act, the fear that people will turn to loan sharks again is more imagined than real.
Estate agents who are aware of their clients' dire financial plight should advise them to seek appropriate avenues in addressing their debt situation, such as Credit Counselling Singapore, and not encourage them to sell their HDB flats as a first resort.
Dr Tan Tee Khoon
Chief Executive Officer
Singapore Accredited Estate Agencies
BT : Writeback boost for Bt Sembawang
Business Times - 22 May 2010
Writeback boost for Bt Sembawang
By EMILYN YAP
THANKS mainly to a $40 million allowance writeback, property developer Bukit Sembawang Estates(BSE) turned in a net profit of $41.9 million for the fourth quarter ended March 31. The results were a turnaround from the net loss of $61.4 million a year ago when it provided a $70 million allowance for foreseeable losses on development properties.
The bottomline was also helped by a more than four-fold surge in revenue from $4.9 million to $21 million. But gross profit was up just 29.1 per cent higher at $5.5 million as cost of sales soared because of higher construction and land costs for its development projects.
Bukit Sembawang wrote back $40 million worth of allowance for foreseeable losses on development properties because the valuation of its Fairways development project increased. Q4 earnings per share were 17.52 cents, against a loss per share of 54.6 cents a year earlier. For the full year, the group also returned to the black with a net profit of $53 million, against a net loss of $48.4 million for the preceding 12 months. Full-year revenue inched up 5.4 per cent to $66 million. Bukit Sembawang has proposed a final dividend of four cents per share, double that a year earlier.
The developer is positive about prospects. Last month, it launched the third phase of sales for Luxus Hills and all 46 units have been sold.
There are plans to launch the 82-unit Paterson Suites near Orchard MRT station, and the 158-unit The Vermont on Cairnhill near Cairnhill Road, in the current financial year.
'With the positive economic climate and improved sentiments in the Singapore residential property market, the group expects a sustainable pace of sales for our residential development projects this year,' Bukit Sembawang said. It foresees profit for the year ending March 31, 2011, to exceed that of the preceding year.
Bukit Sembawang shares closed three cents down yesterday at $4.60.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
GOOD SHOW
Bukit Sembawang Estates is positive about prospects. Last month, it launched the third phase of sales for Luxus Hills and all 46 units have been sold
Writeback boost for Bt Sembawang
By EMILYN YAP
THANKS mainly to a $40 million allowance writeback, property developer Bukit Sembawang Estates(BSE) turned in a net profit of $41.9 million for the fourth quarter ended March 31. The results were a turnaround from the net loss of $61.4 million a year ago when it provided a $70 million allowance for foreseeable losses on development properties.
The bottomline was also helped by a more than four-fold surge in revenue from $4.9 million to $21 million. But gross profit was up just 29.1 per cent higher at $5.5 million as cost of sales soared because of higher construction and land costs for its development projects.
Bukit Sembawang wrote back $40 million worth of allowance for foreseeable losses on development properties because the valuation of its Fairways development project increased. Q4 earnings per share were 17.52 cents, against a loss per share of 54.6 cents a year earlier. For the full year, the group also returned to the black with a net profit of $53 million, against a net loss of $48.4 million for the preceding 12 months. Full-year revenue inched up 5.4 per cent to $66 million. Bukit Sembawang has proposed a final dividend of four cents per share, double that a year earlier.
The developer is positive about prospects. Last month, it launched the third phase of sales for Luxus Hills and all 46 units have been sold.
There are plans to launch the 82-unit Paterson Suites near Orchard MRT station, and the 158-unit The Vermont on Cairnhill near Cairnhill Road, in the current financial year.
'With the positive economic climate and improved sentiments in the Singapore residential property market, the group expects a sustainable pace of sales for our residential development projects this year,' Bukit Sembawang said. It foresees profit for the year ending March 31, 2011, to exceed that of the preceding year.
Bukit Sembawang shares closed three cents down yesterday at $4.60.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
GOOD SHOW
Bukit Sembawang Estates is positive about prospects. Last month, it launched the third phase of sales for Luxus Hills and all 46 units have been sold
BT : Meyer cluster bungalows going for $5.9m
Business Times - 22 May 2010
Meyer cluster bungalows going for $5.9m
Developer adjusts price after mulling offers received
BOUTIQUE property firm Wah Khiaw Developments is selling four freehold cluster bungalows at Meyer Road for some $5.9 million each, or $1,220 per sq ft of built-up area.
Anyone who raises an eyebrow at the asking price should take note of this - it has dropped since marketing of the project began two weeks ago.
Each two-and-a-half storey bungalow has a built-up area of 4,820 sq ft, and comes with an attic, basement carpark, swimming pool, and roof garden. The units are expected to receive temporary occupation permit in August.
According to an earlier press release, the asking price was $6.25 million, which works out to about $1,300 psf of built-up area.
But RealStar Premier Property Consultant managing director William Wong said that the developer has adjusted the price to around $5.9 million, after considering the offers which came in. RealStar is the marketing agent for the project.
Mr Wong does not believe that the European debt crisis is affecting the market. Things may be quieter during May and June because families are busy with school examinations and other activities, he said.
A caveat lodged with the authorities in March show that a detached house at Meyer Road changed hands for $6 million, or $1,132 psf of land area.
At a nearby condominium project, The Seafront On Meyer, units were sold at $1,290-$1,555 psf of strata area last month.
The landed property segment has performed well in the last few months, with prices going up by 8.3 per cent in Q1 based on official data. Mr Wong is optimistic about prospects, expecting these prices to rise around 5 per cent for the rest of the year.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Meyer cluster bungalows going for $5.9m
Developer adjusts price after mulling offers received
BOUTIQUE property firm Wah Khiaw Developments is selling four freehold cluster bungalows at Meyer Road for some $5.9 million each, or $1,220 per sq ft of built-up area.
Anyone who raises an eyebrow at the asking price should take note of this - it has dropped since marketing of the project began two weeks ago.
Each two-and-a-half storey bungalow has a built-up area of 4,820 sq ft, and comes with an attic, basement carpark, swimming pool, and roof garden. The units are expected to receive temporary occupation permit in August.
According to an earlier press release, the asking price was $6.25 million, which works out to about $1,300 psf of built-up area.
But RealStar Premier Property Consultant managing director William Wong said that the developer has adjusted the price to around $5.9 million, after considering the offers which came in. RealStar is the marketing agent for the project.
Mr Wong does not believe that the European debt crisis is affecting the market. Things may be quieter during May and June because families are busy with school examinations and other activities, he said.
A caveat lodged with the authorities in March show that a detached house at Meyer Road changed hands for $6 million, or $1,132 psf of land area.
At a nearby condominium project, The Seafront On Meyer, units were sold at $1,290-$1,555 psf of strata area last month.
The landed property segment has performed well in the last few months, with prices going up by 8.3 per cent in Q1 based on official data. Mr Wong is optimistic about prospects, expecting these prices to rise around 5 per cent for the rest of the year.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Govt bumps up land supply to cool market
Business Times - 22 May 2010
Govt bumps up land supply to cool market
Record 14,405 private homes can be built on land offered this year; move likely to immediately douse sales, and tame prices ahead
By KALPANA RASHIWALA AND UMA SHANKARI
THE government yesterday dramatically increased the supply of land for the second half of this year to meet the demand for private homes. And the impact of this strong signal to the market is expected to be immediate, in terms of cooling home sales as well as dampening land bids. Prices are also expected to lose steam.
A record number of at least 14,405 private homes are expected to be built from land sold this year - comprising an estimated 6,270 units from sites sold in H1 and an 8,135-unit supply from confirmed list sites that will be launched in the second half.
This surpasses the previous record supply in 1997 when the government sold land for about 8,500 units.
'I hope that with this increased supply, homebuyers will be assured that there is ample supply in the market and therefore there is no need to rush. This will probably dampen some of the exuberance in the market,' National Development Minister Mah Bow Tan told reporters at a door-stop interview yesterday evening.
More demand side measures could be introduced if necessary, he added.
Under the Ministry of National Development's record land sales programme, the 8,135 private homes (including executive condos) from the confirmed list sites for H2 is some 2.8 times the supply of 2,925 units from the H1 confirmed list.
Through the reserve list, MND will offer land for 5,770 private homes in H2, lower than the 7,625 units in H1. Reserve list sites are launched for tender only upon successful application by developers, unlike confirmed list plots which are released according to a prestated schedule regardless of developer interest.
Nonetheless, the total supply of 13,905 units that can be generated from both confirmed and reserve lists in H2 is also the highest ever that the government has offered.
DTZ executive director (consulting) Ong Choon Fah said: 'The impact will be quite immediate because the message being sent is clear, that the government will ensure that there is sufficient supply to meet demand.
'Land bids are likely to moderate at the next tender, which closes next week. And we could also see impact on home sales this weekend. There could be some knee-jerk reaction, and people may start to evaluate and look at the latest sites on offer to see if they can afford to wait a little longer as they have more choices now. However, underlying demand for owner occupation remains strong as HDB upgraders aspire to upgrade to a condo.'
'As land prices start to moderate, developers will have more flexibility on their pricing strategy,' she added.
Frasers Centrepoint group CEO Lim Ee Seng told BT that while the 8,135-unit confirmed list supply was much higher than he had expected, it was not totally a surprise given the high land bids at state tenders.
'One of the reasons our company has not been bidding aggressively at state tenders is a fear that government will jack up supply, and our fear has materialised.'
Frasers Centrepoint has clinched just one site at state tenders in the past nine months - an EC site in Sengkang.
MND's H2 2010 land supply programme announcement yesterday evening was almost a fortnight earlier than last year's second half announcement date. Mr Lim welcomed the government's transparency with giving details as early as it could, as that will guide developers in bids at coming tenders.
For the second half of this year, the government is offering a total of 45 sites comprising 18 confirmed list and 27 reserve list plots. The land parcels consist of 27 residential plots, three commercial sites, another three commercial and residential land parcels, two white sites and 10 hotel sites.
In addition to 13,905 private homes (including 2,360 executive condo or EC units), the H2 2010 programme can yield 4.3 million sq ft gross floor area of commercial space and 3,750 hotel rooms.
Twenty-three of the 45 sites are new. The other 22 are being carried over from the H1 slate.
All five EC sites are on the confirmed list. Most of the residential land parcels in the H2 slate are in the Outside Central Region or in locations in the Rest of Central Region that are close to HDB estates. These sites will 'therefore provide additional supply of more affordable private housing', the Ministry of National Development noted.
MND has removed the white site at Ophir/Rochor roads that was on the reserve list 'as the development plan for the site is being reviewed'.
Cushman & Wakefield managing director Donald Han said that this may have to do with all the construction works going on around the site from the Downtown Line but noted that the government has compensated for this by introducing a plum 'white' site opposite International Plaza (above Tanjong Pagar MRT Station) to the confirmed list.
This will have minimum office and hotel components, although the plot is also envisaged to accommodate 490 residences.
MND also introduced two sites with minimum office components to the reserve list - a commercial plot next to Paya Lebar MRT Station and a white site beside Jurong East MRT Station - to propel the development of the two locations as major commercial hubs outside the CBD.
DTZ's Mrs Ong noted, however, that other than the white site at Tanjong Pagar, the Government has not offered any CBD office sites, perhaps suggesting it was adopting a cautious view of the office market.
CB Richard Ellis executive director Li Hiaw Ho suggested 'the Government should perhaps look into placing more commercial sites in the CBD on the confirmed list in the next six to 12 months to ensure a steady stream of office space for the business and and financial community from 2013 onwards'.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Govt bumps up land supply to cool market
Record 14,405 private homes can be built on land offered this year; move likely to immediately douse sales, and tame prices ahead
By KALPANA RASHIWALA AND UMA SHANKARI
THE government yesterday dramatically increased the supply of land for the second half of this year to meet the demand for private homes. And the impact of this strong signal to the market is expected to be immediate, in terms of cooling home sales as well as dampening land bids. Prices are also expected to lose steam.
A record number of at least 14,405 private homes are expected to be built from land sold this year - comprising an estimated 6,270 units from sites sold in H1 and an 8,135-unit supply from confirmed list sites that will be launched in the second half.
This surpasses the previous record supply in 1997 when the government sold land for about 8,500 units.
'I hope that with this increased supply, homebuyers will be assured that there is ample supply in the market and therefore there is no need to rush. This will probably dampen some of the exuberance in the market,' National Development Minister Mah Bow Tan told reporters at a door-stop interview yesterday evening.
More demand side measures could be introduced if necessary, he added.
Under the Ministry of National Development's record land sales programme, the 8,135 private homes (including executive condos) from the confirmed list sites for H2 is some 2.8 times the supply of 2,925 units from the H1 confirmed list.
Through the reserve list, MND will offer land for 5,770 private homes in H2, lower than the 7,625 units in H1. Reserve list sites are launched for tender only upon successful application by developers, unlike confirmed list plots which are released according to a prestated schedule regardless of developer interest.
Nonetheless, the total supply of 13,905 units that can be generated from both confirmed and reserve lists in H2 is also the highest ever that the government has offered.
DTZ executive director (consulting) Ong Choon Fah said: 'The impact will be quite immediate because the message being sent is clear, that the government will ensure that there is sufficient supply to meet demand.
'Land bids are likely to moderate at the next tender, which closes next week. And we could also see impact on home sales this weekend. There could be some knee-jerk reaction, and people may start to evaluate and look at the latest sites on offer to see if they can afford to wait a little longer as they have more choices now. However, underlying demand for owner occupation remains strong as HDB upgraders aspire to upgrade to a condo.'
'As land prices start to moderate, developers will have more flexibility on their pricing strategy,' she added.
Frasers Centrepoint group CEO Lim Ee Seng told BT that while the 8,135-unit confirmed list supply was much higher than he had expected, it was not totally a surprise given the high land bids at state tenders.
'One of the reasons our company has not been bidding aggressively at state tenders is a fear that government will jack up supply, and our fear has materialised.'
Frasers Centrepoint has clinched just one site at state tenders in the past nine months - an EC site in Sengkang.
MND's H2 2010 land supply programme announcement yesterday evening was almost a fortnight earlier than last year's second half announcement date. Mr Lim welcomed the government's transparency with giving details as early as it could, as that will guide developers in bids at coming tenders.
For the second half of this year, the government is offering a total of 45 sites comprising 18 confirmed list and 27 reserve list plots. The land parcels consist of 27 residential plots, three commercial sites, another three commercial and residential land parcels, two white sites and 10 hotel sites.
In addition to 13,905 private homes (including 2,360 executive condo or EC units), the H2 2010 programme can yield 4.3 million sq ft gross floor area of commercial space and 3,750 hotel rooms.
Twenty-three of the 45 sites are new. The other 22 are being carried over from the H1 slate.
All five EC sites are on the confirmed list. Most of the residential land parcels in the H2 slate are in the Outside Central Region or in locations in the Rest of Central Region that are close to HDB estates. These sites will 'therefore provide additional supply of more affordable private housing', the Ministry of National Development noted.
MND has removed the white site at Ophir/Rochor roads that was on the reserve list 'as the development plan for the site is being reviewed'.
Cushman & Wakefield managing director Donald Han said that this may have to do with all the construction works going on around the site from the Downtown Line but noted that the government has compensated for this by introducing a plum 'white' site opposite International Plaza (above Tanjong Pagar MRT Station) to the confirmed list.
This will have minimum office and hotel components, although the plot is also envisaged to accommodate 490 residences.
MND also introduced two sites with minimum office components to the reserve list - a commercial plot next to Paya Lebar MRT Station and a white site beside Jurong East MRT Station - to propel the development of the two locations as major commercial hubs outside the CBD.
DTZ's Mrs Ong noted, however, that other than the white site at Tanjong Pagar, the Government has not offered any CBD office sites, perhaps suggesting it was adopting a cautious view of the office market.
CB Richard Ellis executive director Li Hiaw Ho suggested 'the Government should perhaps look into placing more commercial sites in the CBD on the confirmed list in the next six to 12 months to ensure a steady stream of office space for the business and and financial community from 2013 onwards'.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Residential sites expected to be sought after
Business Times - 22 May 2010
Residential sites expected to be sought after
Many of the 27 sites on GLS programme for H2 2010 are near MRT stations, popular launches
By UMA SHANKARI
THE government has done its homework to make sure that the residential sites on the latest instalment of the government land sales (GLS) programme will be popular with both home-buyers and developers.
Many of the 27 residential sites on the programme for the second half of 2010 are near MRT stations and some are even located right next to recently launched projects that sold well. There are also four new executive condominium (EC) sites on the confirmed list - bringing the total number of EC sites, which are in high demand, to five. In comparison, there were just two EC sites in the H1 2010 confirmed list.
'There is a gap right now between mass market affordability and HDB prices,' noted Cushman & Wakefield managing director Donald Han. 'So there is an immediate need to cater for those who have been sandwiched out of the market.'
Mass market private homes are now generally selling for upwards of $800 per square foot (psf), Mr Han noted. EC units, which can sell for around $700 psf, give more buyers a cheaper option.
Li Hiaw Ho, executive director of CBRE Research, also noted that recent state land tenders for two EC sites in March 2010 received good response. This could have led to the four new EC sites being placed on the confirmed list, he said. The new sites are scattered across the island in Punggol, Pasir Ris, Tampines and Segar Road.
Analysts also said that a lot of the residential sites offered in this round of the GLS programme are near MRT stations.
'As is the case with GLS tenders in the last nine months, the sites in close proximity to MRT stations will too prove to be popular and are likely to be hotly contested, as are the ones that are situated closer to the city,' said CBRE's Mr Li. 'For example, in the recent tender exercise at Simei Street 3, there were 18 bidders in total.'
Echoed Chua Chor Hoon, head of DTZ's South-east Asia research team: 'Sites that are near to MRT or LRT stations with HDB upgrader demand are likely to see greater interest from developers.'
She cited the Punggol EC as well as private housing sites in Punggol Central/Punggol Walk; Tanah Merah Kechil Road/Tanah Merah Kechil Link; and Sengkang Square/Compassvale Road as plots likely to be popular.
The same criterion works for commercial sites too. Colliers International's executive director for investment sales Ho Eng Joo said that a white site at Boon Lay Way (next to Jurong East MRT) and a commercial plot at Paya Lebar Central (beside Paya Lebar MRT) will prove to be top draws.
Analysts also noted another interesting trend: some residential sites on the 2H 2010 GLS programme are located beside recently launched projects that have sold well. A residential site at Petir Road (in Bukit Panjang) is next to City Developments' Tree House condo.
Another site at West Coast Link/West Coast Crescent is next to Cheung Kong Holdings' The Vision, which set a new benchmark price for private homes in the West Coast area. Noted one market watcher: 'The government could be trying to make sure prices don't run up in the sub-sale market.'
Another side-effect could be felt by builders and owners of small one and two-bedroom units, which cater largely to investors.
'If developers continue to build many small units, the concern is that there will be many such units completing in a few years' time and competing in the market for sale or rental,' said DTZ's Ms Chua. The situation could be worsened if new investors can pick up larger units for the same total quantum as smaller units generally go for higher per square foot prices.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Residential sites expected to be sought after
Many of the 27 sites on GLS programme for H2 2010 are near MRT stations, popular launches
By UMA SHANKARI
THE government has done its homework to make sure that the residential sites on the latest instalment of the government land sales (GLS) programme will be popular with both home-buyers and developers.
Many of the 27 residential sites on the programme for the second half of 2010 are near MRT stations and some are even located right next to recently launched projects that sold well. There are also four new executive condominium (EC) sites on the confirmed list - bringing the total number of EC sites, which are in high demand, to five. In comparison, there were just two EC sites in the H1 2010 confirmed list.
'There is a gap right now between mass market affordability and HDB prices,' noted Cushman & Wakefield managing director Donald Han. 'So there is an immediate need to cater for those who have been sandwiched out of the market.'
Mass market private homes are now generally selling for upwards of $800 per square foot (psf), Mr Han noted. EC units, which can sell for around $700 psf, give more buyers a cheaper option.
Li Hiaw Ho, executive director of CBRE Research, also noted that recent state land tenders for two EC sites in March 2010 received good response. This could have led to the four new EC sites being placed on the confirmed list, he said. The new sites are scattered across the island in Punggol, Pasir Ris, Tampines and Segar Road.
Analysts also said that a lot of the residential sites offered in this round of the GLS programme are near MRT stations.
'As is the case with GLS tenders in the last nine months, the sites in close proximity to MRT stations will too prove to be popular and are likely to be hotly contested, as are the ones that are situated closer to the city,' said CBRE's Mr Li. 'For example, in the recent tender exercise at Simei Street 3, there were 18 bidders in total.'
Echoed Chua Chor Hoon, head of DTZ's South-east Asia research team: 'Sites that are near to MRT or LRT stations with HDB upgrader demand are likely to see greater interest from developers.'
She cited the Punggol EC as well as private housing sites in Punggol Central/Punggol Walk; Tanah Merah Kechil Road/Tanah Merah Kechil Link; and Sengkang Square/Compassvale Road as plots likely to be popular.
The same criterion works for commercial sites too. Colliers International's executive director for investment sales Ho Eng Joo said that a white site at Boon Lay Way (next to Jurong East MRT) and a commercial plot at Paya Lebar Central (beside Paya Lebar MRT) will prove to be top draws.
Analysts also noted another interesting trend: some residential sites on the 2H 2010 GLS programme are located beside recently launched projects that have sold well. A residential site at Petir Road (in Bukit Panjang) is next to City Developments' Tree House condo.
Another site at West Coast Link/West Coast Crescent is next to Cheung Kong Holdings' The Vision, which set a new benchmark price for private homes in the West Coast area. Noted one market watcher: 'The government could be trying to make sure prices don't run up in the sub-sale market.'
Another side-effect could be felt by builders and owners of small one and two-bedroom units, which cater largely to investors.
'If developers continue to build many small units, the concern is that there will be many such units completing in a few years' time and competing in the market for sale or rental,' said DTZ's Ms Chua. The situation could be worsened if new investors can pick up larger units for the same total quantum as smaller units generally go for higher per square foot prices.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Watch out, it is starting to look like Sept 2008 all over again
Business Times - 22 May 2010
Watch out, it is starting to look like Sept 2008 all over again
By ANDREW MARKS
NEW YORK CORRESPONDENT
THE great 'de-risking' of 2010 has seemingly just gotten underway, and with the ghosts of September 2008 lurking, it looks like plenty more is in store for equity markets in coming weeks. Rampant fear and uncertainty brought on by Europe's headline-making sovereign debt crisis and an onslaught of high volatility in the stock markets has led to a flight to the US dollar and gold by investors looking to reduce the damage many expect in equity-laden portfolios.
'The financial markets are telling us they are far from convinced the European Union's debt rescue plan will prevent defaults and won't choke off growth. The markets want assurances from the EU, similar to when the US government took equity stakes in the big banks,' said Mary Ann Bartels, chief technical analyst at Bank of America - Merrill Lynch.
'We've broken key support levels at 1150 on the S&P 500, and that tells you we're in a corrective phase now. We're facing a situation where the question is how deep is the correction.'
In the face of continued negative sentiment and economic uncertainty - and big selling in the European markets, Wall Street had another day that was best forgotten on Thursday, with the Dow Jones industrial average, Standard & Poor's 500 and Nasdaq Composite Index closing down significantly.
But by midday yesterday, sentiment appeared to turn slightly with the Dow Jones up 91.82 points at 10,159.83 after dropping briefly below 10,000 earlier. The S&P was up 14.53 points, at 1,086.12 while Nasdaq was up 30.40 points at 2,234.41.
Yes, instead of Lehman Brothers failing and AIG, Citigroup and Merrill Lynch on the brink of disaster, investors now have Greece, Portugal and Spain in danger of defaulting on their debt.
This crisis around, the catalysts for the rush to the exits in search of safe havens are currency volatility by way of the euro's crash, worries over market structure, as seen in last week's 20-minute, 970-point 'flash crash', and government legislative action, ranging from the EU's US$1 trillion debt rescue package and austerity measures to Germany's naked short sale ban, the debate over financial regulatory reform in the US and China's moves to put the brakes on its economy.
Throw in worries over the possibility of new bubbles forming in Chinese real estate, and add precious metals, for good measure. 'Add all that up and many investors now see a greater risk of a 'double dip' in the global economy than they have in the last year,' noted Nick Colas, chief market strategist at ConvergEx. 'We've had a textbook recovery from the lows, but that textbook will probably not be much help in hiding from the challenges facing investors and the world's economies, and their ability to do real damage to risk markets in the weeks ahead,' he said.
Said Ms Bartels, 'The market is telling me we're going to test the 1050 range on the S&P 500, and then the question became whether we break through the key support at 1044, which is the February low.'
'If we do break the February lows, then we probably test the 1000 to 950 range, which is the next level of support,' she said on Wednesday afternoon.
There's some good news. 'American companies appear to be in far better position to weather this European-borne storm than they were the one made in the USA,' noted Mr Colas.
But for now, Ms Bartels cautions, there are only more signs of technical deterioration in the key charts she's focusing on to forecast market behaviour in this cycle.
Her two 'favourite' indicators overseas are the LIBOR OIS spread, which measures the health of credit markets by comparing the London Interbank Offered Rate and rates on Overnight Index Swaps, instruments that allow financial institutions to swap fixed for variable interest rates on their loans; and the Shanghai stock market, which has been a leading indicator for the US and European markets for the several months.
'Both are pointing toward more deterioration. The Shanghai market is showing no sign of bottom, and that's especially troubling,' she said.
'Once we finish this pull-back there will be a great opportunity in high quality US mega-cap companies, especially financials,' Ms Bartels believes. 'The question is how far the market has to correct before we get to that point. It's 50-50 between whether the February lows can hold and we get a 15 per cent correction, or we break through them and get a 25-30 per cent correction,' she said.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Watch out, it is starting to look like Sept 2008 all over again
By ANDREW MARKS
NEW YORK CORRESPONDENT
THE great 'de-risking' of 2010 has seemingly just gotten underway, and with the ghosts of September 2008 lurking, it looks like plenty more is in store for equity markets in coming weeks. Rampant fear and uncertainty brought on by Europe's headline-making sovereign debt crisis and an onslaught of high volatility in the stock markets has led to a flight to the US dollar and gold by investors looking to reduce the damage many expect in equity-laden portfolios.
'The financial markets are telling us they are far from convinced the European Union's debt rescue plan will prevent defaults and won't choke off growth. The markets want assurances from the EU, similar to when the US government took equity stakes in the big banks,' said Mary Ann Bartels, chief technical analyst at Bank of America - Merrill Lynch.
'We've broken key support levels at 1150 on the S&P 500, and that tells you we're in a corrective phase now. We're facing a situation where the question is how deep is the correction.'
In the face of continued negative sentiment and economic uncertainty - and big selling in the European markets, Wall Street had another day that was best forgotten on Thursday, with the Dow Jones industrial average, Standard & Poor's 500 and Nasdaq Composite Index closing down significantly.
But by midday yesterday, sentiment appeared to turn slightly with the Dow Jones up 91.82 points at 10,159.83 after dropping briefly below 10,000 earlier. The S&P was up 14.53 points, at 1,086.12 while Nasdaq was up 30.40 points at 2,234.41.
Yes, instead of Lehman Brothers failing and AIG, Citigroup and Merrill Lynch on the brink of disaster, investors now have Greece, Portugal and Spain in danger of defaulting on their debt.
This crisis around, the catalysts for the rush to the exits in search of safe havens are currency volatility by way of the euro's crash, worries over market structure, as seen in last week's 20-minute, 970-point 'flash crash', and government legislative action, ranging from the EU's US$1 trillion debt rescue package and austerity measures to Germany's naked short sale ban, the debate over financial regulatory reform in the US and China's moves to put the brakes on its economy.
Throw in worries over the possibility of new bubbles forming in Chinese real estate, and add precious metals, for good measure. 'Add all that up and many investors now see a greater risk of a 'double dip' in the global economy than they have in the last year,' noted Nick Colas, chief market strategist at ConvergEx. 'We've had a textbook recovery from the lows, but that textbook will probably not be much help in hiding from the challenges facing investors and the world's economies, and their ability to do real damage to risk markets in the weeks ahead,' he said.
Said Ms Bartels, 'The market is telling me we're going to test the 1050 range on the S&P 500, and then the question became whether we break through the key support at 1044, which is the February low.'
'If we do break the February lows, then we probably test the 1000 to 950 range, which is the next level of support,' she said on Wednesday afternoon.
There's some good news. 'American companies appear to be in far better position to weather this European-borne storm than they were the one made in the USA,' noted Mr Colas.
But for now, Ms Bartels cautions, there are only more signs of technical deterioration in the key charts she's focusing on to forecast market behaviour in this cycle.
Her two 'favourite' indicators overseas are the LIBOR OIS spread, which measures the health of credit markets by comparing the London Interbank Offered Rate and rates on Overnight Index Swaps, instruments that allow financial institutions to swap fixed for variable interest rates on their loans; and the Shanghai stock market, which has been a leading indicator for the US and European markets for the several months.
'Both are pointing toward more deterioration. The Shanghai market is showing no sign of bottom, and that's especially troubling,' she said.
'Once we finish this pull-back there will be a great opportunity in high quality US mega-cap companies, especially financials,' Ms Bartels believes. 'The question is how far the market has to correct before we get to that point. It's 50-50 between whether the February lows can hold and we get a 15 per cent correction, or we break through them and get a 25-30 per cent correction,' she said.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
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