Jun 6, 2010
CapitaLand to build affordable housing in China
By Robin Chan
Promising to be a long-term player in China, Singapore's property giant CapitaLand wants to make its name as a builder of affordable homes for the Chinese.
It will do this with standardised designs and more control over costs and land, CapitaLand's president and chief executive Liew Mun Leong revealed for the first time.
This approach will give it an edge over Chinese developers in the growing urban property scene, Mr Liew told reporters on the sidelines of the Asian Investment Conference and Exhibition (AICE) at Suntec Convention Centre yesterday.
The Chinese government is now reining in the property market with a slew of cooling measures. As a result, developers are looking to tap the growing demand in every urbanising city in China for lower priced homes.
CapitaLand currently has in the pipeline about 20,000 units in China. Its bid to build affordable homes is still in the planning stage, said Mr Liew.
'We have been building quite a fair bit of usually mid-range or higher-end range (homes). But we think the demand for affordable housing will go up,' said Mr Liew, who gave a keynote address on China's urbanisation and its impact on the property market there.
'I think we are able to bring designs that are standardised, we think that we can control costs in a more disciplined way, and we have got to try to discuss with local officials to get land... at a lower price, more affordable land.'
He said CapitaLand will be looking to build in 'any city that has demand'.
'If you look at the urbanisation... they will probably need 10 million to 15 million homes a year. That is a big number.'
Mr Liew also said that while there may be short-term uncertainty in China's property market, he believes that the market is sustainable in the long run.
Strong economic growth, rapid rural to urban migration, and high speed railway developments connecting more parts of China in shorter times will create more demand for homes.
'People ask, where is your best market outside Singapore? I can't think of any other market that is stronger than China. We will be a long-term player there.'
He acknowledged concerns over a property bubble there but said that, because of the country's size, different cities face different-sized property bubbles.
'You must segregate different cities and then you must segregate the high end from the normal end, which is not so bad because the affordability is still there. The bubble is not forming in that sense.'
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said going into affordable housing in China is a timely move for property developers given the cooling measures, though Singapore developers are likely to face many challenges.
'It's a numbers game as the developer has to sell a lot more and also has to compete with local players who are experienced. If they go into the second- and third-tier cities, they will be coming up against more local players.'
The two-day AICE started yesterday. Organised by the Securities Investors Association (Singapore), it allows listed companies and financial institutions to educate investors on current market trends.
Sunday, June 6, 2010
ST : Er, what is 'joint tenants'?
Jun 6, 2010
FINANCIAL QUOTIENT
Er, what is 'joint tenants'?
Where do you see this?
In estate planning and home ownership articles.
What does this mean?
Homeowners have two ways to specify how they share a property - as joint tenants or tenants-in-common.
When a couple hold a property under joint tenancy, ownership goes to the surviving party when one owner dies. If, say, the wife dies first, the property will belong solely to the husband.
But if the couple holds the property as tenants-in-common, their shares will go to their respective estates on their deaths.
Why is it important?
It is important to be clear on the holding status of your property as it will have a bearing on what happens to it when one owner dies.
This is especially so if one party has paid a larger share in buying a property and wants to have a bigger say on who should benefit from it when he dies.
Let's assume you paid more for your matrimonial home and it was bought in joint tenancy with your spouse. You discover he has an affair and file for a divorce.
It may be prudent at this point to change the holding status to that of a tenants-in-common so that you can will your share of the property to your children. If you fail to do so and you die before the property is split, ownership will go completely to your spouse, even if your will states otherwise.
So you want to use the term. Just say...
'My apartment is held by my sister and I as joint tenants. So if I should die first, she will get the entire property.'
Lorna Tan
FINANCIAL QUOTIENT
Er, what is 'joint tenants'?
Where do you see this?
In estate planning and home ownership articles.
What does this mean?
Homeowners have two ways to specify how they share a property - as joint tenants or tenants-in-common.
When a couple hold a property under joint tenancy, ownership goes to the surviving party when one owner dies. If, say, the wife dies first, the property will belong solely to the husband.
But if the couple holds the property as tenants-in-common, their shares will go to their respective estates on their deaths.
Why is it important?
It is important to be clear on the holding status of your property as it will have a bearing on what happens to it when one owner dies.
This is especially so if one party has paid a larger share in buying a property and wants to have a bigger say on who should benefit from it when he dies.
Let's assume you paid more for your matrimonial home and it was bought in joint tenancy with your spouse. You discover he has an affair and file for a divorce.
It may be prudent at this point to change the holding status to that of a tenants-in-common so that you can will your share of the property to your children. If you fail to do so and you die before the property is split, ownership will go completely to your spouse, even if your will states otherwise.
So you want to use the term. Just say...
'My apartment is held by my sister and I as joint tenants. So if I should die first, she will get the entire property.'
Lorna Tan
ST : Seaside living in Indonesia
Jun 6, 2010
property
Seaside living in Indonesia
But potential buyers of Bintan and Batam properties should be aware they won't get title deeds
By Lee Zhi Xin
Fancy living by the sea but cannot afford Sentosa Cove? You may want to check out two seaside residential developments in the two nearby Indonesian islands of Bintan and Batam.
In Bintan, which is a 45-minute ferry ride away from Tanah Merah Ferry Terminal, Singapore developer BU Holdings is marketing a 162-villa seaside project called Pantai Indah.
BU Holdings is a one-year-old company set up by Mr Chia Tek Yew, a former managing partner of PricewaterhouseCoopers Consulting, specially to develop the Lagoi Bay area of Bintan. Pantai Indah is its first project.
It is partnering Singapore-listed Gallant Venture, whose projects include Nirwana Gardens and Laguna Bintan, for this development.
Buyers get to choose from three- and four-bedroom villas which range from 400 sq m to 800 sq m in size. Prices start at $700,000 and go up to $1.8 million.
The more expensive beachfront villas come with lap pools and the option to install a jacuzzi and Roman bar, while the other units come with optional swimming pools. There is also a clubhouse for residents - with tennis courts and a multipurpose hall, among other facilities.
The project was designed by Singapore-based DP Architects, which counts VivoCity and Resorts World Sentosa as its clients.
The villas are situated near Lagoi Beach Village on the northern part of the island, which will have shopping and food and beverage outlets upon completion in the fourth quarter of 2012.
Established hotels and resorts nearby, such as Banyan Tree, also offer a combined 36 food and beverage outlets and four golf courses.
Ten of the project's 26 beachfront villas have been sold in its soft launch, mostly to expatriates based in Singapore who intend to use the villas for weekend stays or for retirement, said Mr Chia, chairman and chief executive officer of BU Holdings and a Singaporean. There are also some interested investors.
The project will be officially launched early next month.
Over in Batam, which is also less than an hour's ferry ride away, is Montigo Resorts, which offers 88 villas priced from $420,000, and 45 semi-detached and terrace houses priced from $1 million.
The villas are about 280 sq m in size while the houses are in excess of 560 sq m. The developer is Singapore-based KOP Group, whose portfolio includes Ritz-Carlton Residences and Hamilton Scotts.
Designed by Eco-id Consultancy, all homes come with the option of private swimming pools and jacuzzis.
Thirty-six of the 88 units launched for sale have been snapped up. As with Pantai Indah, buyers are both Singaporeans and expatriates based here. For investors, the project guarantees an 8 per cent rental yield, said chief executive officer of KOP Properties Leny Suparman.
Under Indonesia's property laws, foreigners cannot buy freehold land in the country.
Pantai Indah has a 30-year lease that is renewable for up to 84 years, provided owners use the land for residential purposes and pay a lease renewal fee of about 0.5 per cent of the tax assessment value of the property.
'Although the title, which attracts tax, doesn't transfer to the buyer under our lease scheme, it is pretty safe under Indonesian law. Even if the company holding the titles is sold or turns bankrupt, all leases have to be honoured,' Mr Chia assured.
Montigo Resorts also has a 30-year lease that is renewable for up to 80 years.
But Asia-Pacific head of Savills' international marketing division Julian Sedgwick warned about such leases: 'If anything happens in Indonesia and laws change, the title deeds won't be with you.'
His advice for potential buyers: 'Seek legal advice, and make sure you know who the landowner is. For properties which hand you the title deeds, do research to understand the difference between the five or six kinds of titles that exist in Indonesia and check that you have the right title.'
Six types of titles exist in Indonesia: the right to use the land (Hak Pakai), the right of ownership (Hak Milik), the right of cultivation (Hak Guna Usaha), the right of structure or building purposes (Hak Guna Bangunan), the right of management (Hak Pengelolaan) and the right of strata title ownership (Hak Milik atas Satuan Rumah Susun). Foreigners are allowed to own only the Hak Pakai title.
lzhixin@sph.com.sg
Units in Bintan's Pantai Indah (above), just like those in Batam's Montigo Resorts, are sold under their lease schemes, which means the properties' titles are not transferred to buyers. -- PHOTOS: KOP GROUP, BU HOLDINGS
property
Seaside living in Indonesia
But potential buyers of Bintan and Batam properties should be aware they won't get title deeds
By Lee Zhi Xin
Fancy living by the sea but cannot afford Sentosa Cove? You may want to check out two seaside residential developments in the two nearby Indonesian islands of Bintan and Batam.
In Bintan, which is a 45-minute ferry ride away from Tanah Merah Ferry Terminal, Singapore developer BU Holdings is marketing a 162-villa seaside project called Pantai Indah.
BU Holdings is a one-year-old company set up by Mr Chia Tek Yew, a former managing partner of PricewaterhouseCoopers Consulting, specially to develop the Lagoi Bay area of Bintan. Pantai Indah is its first project.
It is partnering Singapore-listed Gallant Venture, whose projects include Nirwana Gardens and Laguna Bintan, for this development.
Buyers get to choose from three- and four-bedroom villas which range from 400 sq m to 800 sq m in size. Prices start at $700,000 and go up to $1.8 million.
The more expensive beachfront villas come with lap pools and the option to install a jacuzzi and Roman bar, while the other units come with optional swimming pools. There is also a clubhouse for residents - with tennis courts and a multipurpose hall, among other facilities.
The project was designed by Singapore-based DP Architects, which counts VivoCity and Resorts World Sentosa as its clients.
The villas are situated near Lagoi Beach Village on the northern part of the island, which will have shopping and food and beverage outlets upon completion in the fourth quarter of 2012.
Established hotels and resorts nearby, such as Banyan Tree, also offer a combined 36 food and beverage outlets and four golf courses.
Ten of the project's 26 beachfront villas have been sold in its soft launch, mostly to expatriates based in Singapore who intend to use the villas for weekend stays or for retirement, said Mr Chia, chairman and chief executive officer of BU Holdings and a Singaporean. There are also some interested investors.
The project will be officially launched early next month.
Over in Batam, which is also less than an hour's ferry ride away, is Montigo Resorts, which offers 88 villas priced from $420,000, and 45 semi-detached and terrace houses priced from $1 million.
The villas are about 280 sq m in size while the houses are in excess of 560 sq m. The developer is Singapore-based KOP Group, whose portfolio includes Ritz-Carlton Residences and Hamilton Scotts.
Designed by Eco-id Consultancy, all homes come with the option of private swimming pools and jacuzzis.
Thirty-six of the 88 units launched for sale have been snapped up. As with Pantai Indah, buyers are both Singaporeans and expatriates based here. For investors, the project guarantees an 8 per cent rental yield, said chief executive officer of KOP Properties Leny Suparman.
Under Indonesia's property laws, foreigners cannot buy freehold land in the country.
Pantai Indah has a 30-year lease that is renewable for up to 84 years, provided owners use the land for residential purposes and pay a lease renewal fee of about 0.5 per cent of the tax assessment value of the property.
'Although the title, which attracts tax, doesn't transfer to the buyer under our lease scheme, it is pretty safe under Indonesian law. Even if the company holding the titles is sold or turns bankrupt, all leases have to be honoured,' Mr Chia assured.
Montigo Resorts also has a 30-year lease that is renewable for up to 80 years.
But Asia-Pacific head of Savills' international marketing division Julian Sedgwick warned about such leases: 'If anything happens in Indonesia and laws change, the title deeds won't be with you.'
His advice for potential buyers: 'Seek legal advice, and make sure you know who the landowner is. For properties which hand you the title deeds, do research to understand the difference between the five or six kinds of titles that exist in Indonesia and check that you have the right title.'
Six types of titles exist in Indonesia: the right to use the land (Hak Pakai), the right of ownership (Hak Milik), the right of cultivation (Hak Guna Usaha), the right of structure or building purposes (Hak Guna Bangunan), the right of management (Hak Pengelolaan) and the right of strata title ownership (Hak Milik atas Satuan Rumah Susun). Foreigners are allowed to own only the Hak Pakai title.
lzhixin@sph.com.sg
Units in Bintan's Pantai Indah (above), just like those in Batam's Montigo Resorts, are sold under their lease schemes, which means the properties' titles are not transferred to buyers. -- PHOTOS: KOP GROUP, BU HOLDINGS
CNA : Mass market housing in China remains affordable
Mass market housing in China remains affordable
By Desmond Wong | Posted: 05 June 2010 1650 hrs
SINGAPORE: Mass market housing in China remains affordable, and is unlikely to face the bubble pressures in the high-end segments and top-tier cities.
Speaking at an investor conference, CapitaLand CEO Liew Mun Leong added that opportunities in the retail property segment across the mainland continue to expand.
The China property market is hot. And fears of an asset bubble on the mainland have sparked government intervention and investor caution over Chinese real estate.
But Mr Liew Mun Leong said that the risk of a bubble is confined to a few segments of the market, like high-end residential and Tier 1 cities.
Mass market housing remains affordable, and is a segment CapitaLand that is interested in.
Mr Liew said; "It has not gone to the extent that it is not affordable. Today, they are going about 30-40 per cent. Which means they use 30 to 40 per cent of their income to pay for the housing mortgage. To us, that is something that is very fair. Even in Singapore, it is just below 40 per cent. So for that housing in China, it is fair. It is not alarming."
He added that in the first quarter of this year, almost half the home buyers across China were first time owners, while only a fifth were investors.
So, the chances of a bubble growing outside the high-end market or first-tier cities was unlikely.
He also expects retail property to gain ground.
At the moment, some 20 per cent of purchases in China are made through organised trade establishments like shopping malls, compared to the almost two-thirds in Singapore. As a result, the expectation for further growth in the China retail property segment is high.
Mr Liew also sees another emerging trend that is likely to spur growth in China's property market - namely improving transport links.
He said: "Once travelling time is reduced, urbanisation will increase, the economy will expand, domestic consumption will expand. The connections and mobility between the rural and urban areas will be enhanced, and this has a real economic impact, just like what happened in the US a hundred years ago."
According to government statistics, China aims to improve travel between locations to 9 per cent of existing times by 2014. - CNA/ms
By Desmond Wong | Posted: 05 June 2010 1650 hrs
SINGAPORE: Mass market housing in China remains affordable, and is unlikely to face the bubble pressures in the high-end segments and top-tier cities.
Speaking at an investor conference, CapitaLand CEO Liew Mun Leong added that opportunities in the retail property segment across the mainland continue to expand.
The China property market is hot. And fears of an asset bubble on the mainland have sparked government intervention and investor caution over Chinese real estate.
But Mr Liew Mun Leong said that the risk of a bubble is confined to a few segments of the market, like high-end residential and Tier 1 cities.
Mass market housing remains affordable, and is a segment CapitaLand that is interested in.
Mr Liew said; "It has not gone to the extent that it is not affordable. Today, they are going about 30-40 per cent. Which means they use 30 to 40 per cent of their income to pay for the housing mortgage. To us, that is something that is very fair. Even in Singapore, it is just below 40 per cent. So for that housing in China, it is fair. It is not alarming."
He added that in the first quarter of this year, almost half the home buyers across China were first time owners, while only a fifth were investors.
So, the chances of a bubble growing outside the high-end market or first-tier cities was unlikely.
He also expects retail property to gain ground.
At the moment, some 20 per cent of purchases in China are made through organised trade establishments like shopping malls, compared to the almost two-thirds in Singapore. As a result, the expectation for further growth in the China retail property segment is high.
Mr Liew also sees another emerging trend that is likely to spur growth in China's property market - namely improving transport links.
He said: "Once travelling time is reduced, urbanisation will increase, the economy will expand, domestic consumption will expand. The connections and mobility between the rural and urban areas will be enhanced, and this has a real economic impact, just like what happened in the US a hundred years ago."
According to government statistics, China aims to improve travel between locations to 9 per cent of existing times by 2014. - CNA/ms
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