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Tuesday, May 25, 2010

CNA : Woodlands residents & businesses see revival with railway station in neighbourhood

Woodlands residents & businesses see revival with railway station in neighbourhood
By Lynda Hong | Posted: 24 May 2010 2239 hrs

SINGAPORE: It's not just the leaders who're pleased with the move. Residents and businesses in Woodlands are counting on the railway station in the neighbourhood to revive the estate.

The sleepy neighbourhood at Woodlands Centre Road expects to enjoy some buzz with the railway station.

Some people expect to save time and money.

A member of the public said: "I am staying in the Bukit Timah, Choa Chu Kang area. Going to Woodlands is more convenient for me rather than going to Tanjong Pagar which is very far. Taking MRT is far, and if I drive also it will also incur ERP charges for me."

Others believe the station will bring more business.

"We expect more people to come here because here we are near the Woodlands Checkpoint,” said one man in the street.

"The train stop here is much better because here at Woodlands, there are a lot of shops unlike Tanjong Pagar, where there's nothing in town," said another member of the public.

But some businesses are worried that the shops in the area may not appeal to commuters.

One woman said: "I think there’s no air-conditioning here. If the station comes here, commuters will go back immediately. So I don't think they will stay here and shop."

As for the station at Tanjong Pagar, it will be missed.

"Tanjong Pagar is easier for us. It’s not troublesome. Besides, we are more used to it," said one man in the street.

But the station will have a special place as a conserved building. - CNA/vm

For joint statement by Prime Minister Lee Hsien Loong and Malaysia Prime Minister Najib Razak at the Singapore-Malaysia Leaders' Retreat, click here.

CNA : Current KTMB station site provides opportunities for devt: property watchers

Current KTMB station site provides opportunities for devt: property watchers
By May Wong | Posted: 24 May 2010 2033 hrs

SINGAPORE: Property watchers said the current Malayan Railway station site at Tanjong Pagar offers tremendous opportunities for residential and commercial development. But these will likely take shape only in 2015 or 2016.

Singapore and Malaysia announced on Monday that the Tanjong Pagar railway station will be relocated to Woodlands by July next year.

Property observers say the Tanjong Pagar site, located in the Southern part of Singapore, is located on prime land. It's near the city centre and a big shopping mall Vivocity.

The attraction is the size of the land spanning about five football fields.

A high-rise commercial development with a gross floor area of over a million square feet could be built there.

Though the site is zone for commercial use now, market watchers said residential units may be allowed too.

Donald Han, managing director, Cushman & Wakefield, said: “Currently it's zoned under commercial, that means potentially you might be allowed some retail component, you'd be allowed commercial office as well.

“I think a developer, whoever comes in, to take over the land potentially can build a combination of retail as well as office. But that being said, a lot of the commercial prime properties of the outskirts of the main financial district may be allowed potential conversion of use to residential.

“So in some cases, you may get a combination of commercial and potentially residential, on top of this site. The site is huge so it can have a multitude variety of different uses in that sense, subject to of course, getting the necessary planning approval.

“If it's going to be pure commercial, based on the land area, over the plot ratio, we estimate price per square foot, per plot ratio about S$600-650 per square foot, plot ratio. That translates to a price, total quantum of about S$650-700 million in that sense.

“If you get conversion of residential use, the value for residential, which is currently highest and best used in the financial district can potentially be about 25 to 30 per cent higher than the figures I quoted you just now."

Analysts said relocating the railway station is also timely as Singapore plans to re-develop the Tanjong Pagar area into a new waterfront city.

And when the station moves to Woodlands in the north, that area is set to become more vibrant.

Mr Han said: "Right now, if you go into Woodlands, there is only the Causeway Bay shopping mall, that's currently located. There are not many activities that are coming up.

“If you look at the potential relocation of the KTM, if it allows an integrated development to be located there, I think it will certainly help to increase land values and existing property values in the area."

But all this will not be immediate and will take between three and six years. - CNA/vm

For joint statement by Prime Minister Lee Hsien Loong and Malaysia Prime Minister Najib Razak at the Singapore-Malaysia Leaders' Retreat, click here.

CNA : 2,300 DBSS flats in pipeline

2,300 DBSS flats in pipeline
By Mustafa Shafawi | Posted: 24 May 2010 1821 hrs

SINGAPORE : Flat buyers can look forward to more public housing choices under the Design, Build and Sell Scheme (DBSS).

The Housing and Development Board (HDB) on Monday awarded a tender for a site that could yield about 700 DBSS flats in Yishun to Guthrie (DBP) and SK Land for S$148.9 million.

HDB will tender another three new DBSS sites later this year that could yield about 1,600 flats in Tampines, Bedok Reservoir and Upper Serangoon.

The first site will be launched for sale next month, while the other two will be rolled out in the second half of the year. The combined estimated yield from these three sites is 1,590 units.

The total of 2,300 DBSS flats in the pipeline will further supplement the Build-To-Order (BTO) system, which is the main supply of new HDB flats.

DBSS flats are developed and sold by private developers. They have a 99-year lease and are sold under similar HDB eligibility conditions.

Ninety-five percent of the flat supply for applicants will be set aside for first-timers.

- CNA/al

CNA : Rental cheat gets 16 months' jail

Rental cheat gets 16 months' jail
By Ong Dai Lin | Posted: 24 May 2010 1716 hrs

SINGAPORE : A man was sentenced to 16 months' jail in a district court on Monday for cheating four China nationals of S$10,700 in rental fees.

Ivan Tey, who is 35, owns a four-room flat in Jurong West.

Although he had rented the flat to other tenants, he approached different housing agents in October and November last year to look for prospective tenants to rent the flat to.

He found four different tenants and collected rental deposits from them.

The tenants later realised Tey had signed tenancy agreements with other tenants and found other tenants living in the flat.

They then separately made police reports.

Tey's lawyer, Mr Joseph Chen, told the court that Tey committed the offences as he was in financial difficulty and had to support two young children.

He said Tey's father is receiving treatment for cancer and urged the court to impose a shorter jail sentence.

- CNA/al

BT : Property shares rise on disputed tax-delay news

Business Times - 25 May 2010

Property shares rise on disputed tax-delay news

China's property shares index ends up 4.6 per cent

(BEIJING) Chinese real estate stocks surged yesterday after a report said that a speculated property tax will not be introduced for at least three years, even after the government researcher quoted in the story denied making the comments.

Chinese property companies have been under pressure since the central government unveiled harsh measures in mid-April to cool the sizzling sector, including raising down payment requirements and mortgage rates for second homes.

Real estate stocks rallied strongly yesterday after a weekend report in the Beijing-based China Times, which quoted Huang Hanquan from the National Development and Reform Commission (NDRC) as saying that the government would not impose a property tax within three years.

However, Mr Huang denied making the comments.

'It is purely an unfounded report, and I have never said that,' Mr Huang, a rural economy researcher at the NDRC, said.

Although the NDRC is China's powerful economic planning agency, it is not the main government organisation overseeing the country's tax regulations, which are typically shaped by the finance ministry and tax bureau.

Despite the denial, China's property shares index closed up 4.6 per cent, helping the broader Shanghai Composite index post its biggest one-day percentage gain in more than seven months, ending up 3.5 per cent.

China Vanke, a major property counter, was up 4 per cent, while Poly Real Estate ended 8.8 per cent higher.

The property index had lost 24 per cent since the start of this year and 16 per cent since mid-April when the measures were announced.

Apart from the central government's measures, local governments sometimes draft tougher rules, but some cities and provinces, except for Beijing, have not done so. Beijing's local government said in late April that it will allow each household to buy only one home, on top of the central government's measures.

New rules unveiled over the past week by the cities of Guangzhou, Shenzhen and Chongqing, and the Zhejiang provincial government mainly stuck to the central government's mid-April measures.

As a result, investors now expect China to pause its tightening campaign, as the government assesses initial results, which are evident from declining transactions and slower housing price rises this month.

'China will ease its pace of macro control in the short term in order to stabilise the economy,' Fang Yan and Ou Ruiming, analysts at Guosen Securities, said in a note to clients.

The market expects China to introduce a property tax if prices fail to ease significantly.

Shanghai could roll out a property tax on a trial basis by slapping a 0.6 per cent tax on residents who own large apartments, according to market sources.

China's property prices have been soaring, hitting a record annual 12.8 per cent rise in April, although analysts expect price increases to ease in coming months. -- Reuters



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

BT : M'sia, S'pore see light at the end of rail tunnel

Business Times - 25 May 2010

M'sia, S'pore see light at the end of rail tunnel

Tg Pagar station to shift; KTM land may be developed jointly or swapped for other plots

By LEE U-WEN

(SINGAPORE) Many of the disputes that have dogged ties between Singapore and Malaysia over the past 20 years have stunningly been resolved.

The relationship is entering a new phase in which travelling between here and Johor Bahru will be a breeze while Singapore's Temasek Holdings and Malaysia's Khazanah Nasional join hands for a major project to develop Malayan Railway land here.

The jigsaw puzzle fell in place as an agreement was reached to move the 78-year-old Tanjong Pagar railway station - which sits on Malaysia-owned land along the fringes of the Republic's financial district - to Woodlands by July 1 next year. The announcements were made yesterday by Prime Minister Lee Hsien Loong and his Malaysian counterpart Najib Razak as they stood nearly shoulder-to-shoulder during a joint press conference at the Shangri-la Hotel here after a two-day retreat.

The breakthrough could see the Points of Agreement (POA) - a document signed back in November 1990 but stalled for years - finally put to rest as early as next month.

'There is urgency,' said Mr Lee. 'This matter really cannot wait indefinitely because it is already 20 years. And there are many development projects in Singapore which have been held up because the POA has not been implemented as it should have many years ago.'

One immediate fallout concerns the land owned in Singapore by Malayan Railway, which is said to be worth billions of dollars and runs alongside the tracks from Tanjong Pagar to Woodlands.

With an agreement on the Tanjong Pagar KTM station finally reached (Singapore will help move the station to the Woodlands train checkpoint), the focus shifts to developing six parcels of Malayan Railway land - one each in Tanjong Pagar, Kranji and Woodlands, and the other three in Bukit Timah.

To do this, the two countries have agreed to set up a company called M-S Pte Ltd to jointly develop the land. The company, which will be established by December at the latest, will be 60 per cent of the equity owned by the Malaysian government's investment holding arm Khazanah Nasional Berhad, with the remaining 40 per cent stake held by Singapore's state investment agency Temasek Holdings.

One option mentioned by Mr Lee yesterday was to obtain an updated valuation of the KTM land and make an offer to Mr Najib to swap the six land parcels for land of equivalent value in Marina South near the Marina Bay Sands integrated resort and/or the Ophir-Rochor area.

Mr Lee said he would make a trip to Kuala Lumpur in June to make such an offer to Mr Najib.

'We will make them an offer and it's up to them whether they want to accept. It will be very substantial, these are very valuable pieces of land we have developed,' said Mr Lee in response to queries from the media. 'Land prices have been moving over the past one year as the property market is quite active. That's why we didn't settle the land swap today.'

Song Seng Wun, a regional economist with CIMB-GK Research in Singapore, told AFP that the railway land's worth 'could be in the billions' of dollars.

Meanwhile, other pieces of the jigsaw have also fallen in place and they will boost connectivity between Singapore and Johor.

Once the railway station has been shifted to Woodlands, the Singapore government will ensure that train commuters will enjoy proper bus service connections to a nearby MRT station.

The two countries agreed to build a rapid transit system link between Tanjung Puteri in Johor and Singapore by 2018. The plan is to integrate this with public transport services to improve connectivity even further. The Customs, Immigration and Quarantine (CIQ) facility will be co-located in Singapore. Malaysia has the option of moving the new Woodlands KTM station to Johor after 2018 should it wish to do so.

The toll charges at the Second Link will be 'reduced significantly' on both sides to increase usage there, with the new amounts to be announced next month, said Mr Lee.

And instead of taxis picking up and dropping passengers only at designated stands in Singapore and Johor, they will be allowed to do so anywhere on the domestic leg of their journey.

The number of cross-border bus services will be doubled with eight additional routes, four from each side, between two pick-up points in Johor and the Marina Bay Sands and Resorts World Sentosa IRs, Boon Lay, Yishun, Newton and Changi Airport in Singapore. 'The improved rail and road connectivity would cut down the amount of transfer time,' Credit Suisse AG's director and Asian chief economist Joseph Tan told BT. 'There is definitely a positive effect on aggregate and this may take some business away from the airlines too.'

Meanwhile, the existing Tanjong Pagar railway building will be conserved given its historical significance, while the old Bukit Timah railway station building at Blackmore Drive could also be preserved.

'We see now the light at the end of the tunnel,' said Mr Najib. 'This is a big legacy issue and the time has come for a resolution. We cannot allow it to fester because it will always be seen as an impediment preventing us to progress and move forward in terms of our bilateral ties.'

Mr Lee added: 'It's a matter for rejoicing. We've got a good deal, and both sides are happy.'

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



New phase: PM Lee Hsien Loong and Malaysia PM Najib Razak at yesterday's joint press conference


BT : Property stocks stay firm despite land injection

Business Times - 25 May 2010

Property stocks stay firm despite land injection

News seen as positive for some developers who are low on landbanks

By UMA SHANKARI

(SINGAPORE) Property stocks defied market expectations and stayed firm yesterday, the first day of trading after the government said that it will release a record supply of land for private homes in the second half of this year.

The FTSE ST real estate holding and development index gained one per cent to close at 639.59 points yesterday, shaking off the Ministry of National Development's announcement last Friday that it will offer 27 residential sites for sale in its H2 2010 land sales programme.

Analysts were expecting developer stocks to pull back on news that a total of 13,905 units can be built on the 27 sites - which will dramatically increase the supply of land for private homes and hence bring down home prices.

But share prices of major property groups stayed flat or rose slightly for the most part yesterday - in line with the rest of the market. CapitaLand gained 0.9 per cent to close at $3.54; City Developments rose 0.8 per cent to close at $10.20 and Keppel Land rose 2 per cent to end at $3.53.

An analyst with a foreign bank here said that the news is 'not necessarily negative' for developers, many of whom are running low on their landbanks.

In fact, the shortage of land sites was pushing some developers to over-bid and over-pay for the more attractive sites, he said. And if the trend had continued, developers here could have been driven into paying ever-increasing prices for land sites and then ended up having to make provisions for these sites when the current property bull run ends.

But analysts agreed that one outcome from the large supply of land in the second half of the year will be a reduction of land prices for suburban plots. Many of the 27 residential sites offered by the government are in the 'outside central region', a proxy for suburban mass market locations.

'With so many sites available, developers are likely to be more selective and prudent in their bids for the available sites. We believe the most immediate impact would be lower land prices,' said Citigroup analyst Wendy Koh.

Echoed DMG & Partners Research analyst Brandon Lee: 'In view of the increased supply, we expect land prices for upcoming tenders to immediately taper off from the recent $450-$500 per square foot (psf) range to $350-$400 psf, a range which implies a more affordable selling price of $800-$850 psf (as compared to the present $900-$950 psf) - assuming a modest profit before tax margin of 10 per cent.'

The number of bids for each government land tender should also 'normalise' to 6 to 8 from the current 10 to 15, Mr Lee said.

But given that there is still some time before the sites will reach the public as new residential projects for sale, the mass market could still remain strong given the tight supply of HDB flats and the record-low mortgage rates, Ms Koh added.

And analysts also continued to be bullish on the high-end and luxury segments of the private property market, where the supply of land still remains scarce.

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

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