ST : Showflats & their telling displays

Jun 13, 2010

property

Showflats & their telling displays

Would-be buyers should be aware of optical illusions and custom-built fittings

By Joyce Teo

Visiting showflats on weekends is very much a Singaporean pastime. Many who throng the showflats are not buyers, but browsers with noisy families in tow.

But for those who are thinking of putting down some hard-earned cash for a brand new home, this seemingly leisurely activity is actually the homework they should do carefully before they commit themselves to a purchase.

They should scrutinise every nook and corner in the showflat and be clear that they may not get all that they see.

Showflats, after all, are done up by interior designers engaged by the developers to make them look as attractive or as spacious as possible.

Ngee Ann Polytechnic real estate lecturer Nicholas Mak advises potential buyers to take note of 'optical illusions' employed to make the units look bigger.

For instance, glass partitions are often used instead of walls to separate the bedrooms from the living area. This gives the illusion of more space than there actually is.

Glass partitions are also thinner than actual walls, and thus take up less space.

A buyer can always do the same for his own unit, but may then have to compromise on privacy.

It is common for developers to remove the non-structural wall of the bedroom nearer the living area to make the unit look bigger and allow more space for visitors, said EL Development managing director Lim Yew Soon.

'In such instances, buyers should ask whether the wall can actually be removed,' he said.

'Another question they should ask is whether all the appliances - for instance, the non-standard ones like dishwashers and washing machines - are provided or are there for interior design purposes.'

Wall mirrors are also often employed to give the living area the illusion of spaciousness, experts say.

'The buyer can also use a wall mirror in his own home, but the key is where is the best place to put it. And that depends on the individual unit,' said Mr William Ong, executive chairman of Axis ID.

'Showflats do give you an indication of what you can put into the unit.

'When you do up your own unit, you have to first think about how much furniture you need and how much storage you need.'

Where furniture is concerned, the key is in having it in the right scale, said Mr Ong.

Another expert, who declined to be named, warns that some small projects may use very small customised furniture. For instance, a supposed double bed in a bedroom may be much smaller than an actual double bed.

When checking out the bedrooms, Mr Mak says, potential buyers should ignore the furnishings and try to imagine if they can comfortably fit in a normal- size single or queen-size bed, a desk and a wardrobe.

Also, experts say buyers have to consider how efficient the layout is. A square or rectangular- shaped room is always easier to manage.

For odd-shaped apartments, it may be a good idea to engage an interior designer who can help to maximise space.

'The smaller the apartment, the more you need expert help to help you maximise space,' said Mr Ong.

Some home hunters have complained about having to pay for bay windows and planter boxes when they have no use for them.

For instance, the actual living space in a 1,200 sq ft unit that includes bay windows and planter boxes is much smaller than 1,200 sq ft.

But, under a new government ruling from January last year, developers - although they can still build bay windows and planter boxes - no longer have the incentive to do so because they will have to pay for the space for these features. Previously, they did not have to.

One good thing about showflats is that they are chockful of design ideas.

And as Mr Ong said: 'Whatever developers show in the showflat is usually achievable. The ideas are there to make the space look bigger but they are doable ideas.'

joyceteo@sph.com.sg


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Showing the way

'Whatever developers show in the showflat is usually achievable. The ideas are there to make the space look bigger but they are doable ideas.'

MR WILLIAM ONG, executive chairman of Axis ID



Showflats may have mirrors, custom-made smaller-size furniture or fewer walls to make the space look bigger than it really is. -- ST FILE PHOTO

ST : Sand and the city at new KL condo

Jun 13, 2010

Sand and the city at new KL condo

By Elizabeth Looi

Kuala Lumpur: Living in an apartment in the middle of the city, but looking for a suntan by the sea? Just head to the rooftop.

Developer Bukit Kiara Properties (BKP) has come up with a unique feature for its latest condominium, the Vox Tower, in Kuala Lumpur's posh suburb of Mont Kiara: A beach with real sand and palm trees, perched high up on the 37th floor.

It appears to be a first for the country, as developers keep trying to outdo one another with increasingly creative attractions to draw buyers.

Not too long ago, developer One KLCC completed One KL, a posh 35-storey condominium opposite the Petronas Twin Towers, which boasts a private pool in every unit.

One KL's apartments come at a price, though: RM4.5 million (S$1.9 million) and more for the larger units covering 300 sq m to 350 sq m.

By comparison, a five-room HDB flat in Singapore is typically 110 sq m in size and costs up to $500,000.

BKP's rooftop beach, which it calls the Versilica Sky Beach, is touted to be Malaysia's first. It has recreational rooms, a bar, jet pool, lap pool, garden and terrace.

BKP's group managing director N.K. Tong told The Sunday Times that the idea had come from a brainstorming session.

'Most of the ideas that came from my staff had sun, sand and surf,' he said. 'Building a sky beach sounded really silly at first, but as we did more brainstorming, we found the idea quite possible after all.'

BKP did not want to reveal the cost of the Vox Tower, but the sky beach and rooftop facilities alone are estimated to cost between RM2million and RM3 million.

The sandy beach covers about 370 sq m, and sits next to a 20m by 3m lap pool.

The condo is selling well, but Mr Tong and his team have yet to figure out how and where to source for the sand, and which type of sand to use. To add a greater touch of reality to the idea of a sky-high beach, the team also plans to use salty chlorinated water in the pool.

The Vox Tower is one of four blocks in BKP's Verve Suites project, and is expected to be ready by end-2013.

Prices range from about RM580,000 for a 43 sq m one-bedroom unit to RM1.8 million for a 130 sq m three-bedroom unit.

Mr Tong says BKP is targeting mainly local buyers who are 'young at heart' - and presumably, those who want a seaside visit without stepping out of their condo.



An artist's impression of the rooftop beach planned for the Vox Tower condominium developed by BKP in Mont Kiara in KL, believed to be a first for Malaysia. -- PHOTO: BUKIT KIARA PROPERTIES

ST : The big squeeze

Jun 13, 2010

special report: church land

The big squeeze

Line between religion and business crossing in bid for land as congregations grow

By Lee Siew Hua , Susan Long

The rising cost and scarcity of church land, coupled by fierce bidding over the past five years, have made it more viable for some churches to venture into commercial territory and go into business to pay for it.

In the past few years, the winning bids for church land with 30-year leases have shot through the roof, with prices breaching $4,500 per sq m in 2007 - much more than similar suburban residential land costs.

'As a ballpark comparison, the church site sold in 2007 worked out to $3,238 psm per plot ratio. If we convert that to a 99-year equivalent, it would be about $4,860 psm per plot ratio, which is over 50 per cent higher than the prices of suburban residential land sites sold in that period,' notes Associate Professor Yu Shi-Ming, head of the National University of Singapore's (NUS) Department of Real Estate.

The Government plans and zones land for places of worship, factoring in population growth in towns and mindful of Singapore's multi-religious setting. Each parcel of land is open for tender by the Housing Board only to each particular religious group. The HDB is a government land sales agent, along with the Urban Redevelopment Authority (URA).

The sky-high rates for church land could partly be because very few sites were released after 2005. Before that, about a couple of sites were released every year - with up to four in 1992 and three in 1998.

But in the last five years, only two sites have been released. Both were hotly contested by various church denominations seeking to plant new churches or upgrade to bigger premises.

In 2007, a 3,000 sq m tract of land in Compassvale Link in Sengkang sold for a whopping $13.6 million, after intense bidding by nine churches. The Church of Jesus Christ of Latter-day Saints clinched the parcel, using tithes from its 2,300 members here, plus gifts from sister churches worldwide.

Earlier this month, a 2,973 sq m plot at Gangsa Road in Bukit Panjang fetched $11.28 million, with the 1,500-member Korean Church In Singapore outbidding three other churches.

What has aggravated the problem is that religious land leases were shortened from 60 to 30 years around 1990. Lighthouse Evangelism is said to have snapped up the last of the 60-year-leases with its church in Tampines, which opened in 1992 on National Day.

Pastors say the clock starts ticking the moment they successfully land a site. Before they finish paying for the building costs, which can be equivalent to or greater than land costs, they have to start saving for the next 30 years.

'The trouble is that there are no indicators as to what the new lease price will be, and what considerations will go into renewal of lease,' says the pastor of a large mainline church in the central area, speaking on condition of anonymity.

As some churches close in on their expiry date in about 10 years' time, pastors hope the authorities will reveal the criteria and quantum for lease extension soon. Deacon Jack Ho of the New Creation Church wonders if it will be like 'the development charge to top up the lease, like what happens in an en bloc sale'.

Space crunch

Meanwhile, second-guessing and uncertainty have led to a bidding frenzy whenever a new plot is released. The recent bid for the Gangsa Road site even led to cloak-and- dagger corporate tactics.

For example, some churches got more than one cashier's order from different banks to make up their deposit, in case other contending congregations with members working in one of the banks were able to guess their bid amount.

Some churches, like the 12,000- strong Lighthouse Evangelism, have a group of people continually looking at land acquisition. Lighthouse has put in bids for the last five rounds of tenders between 2003 and this year, only five years after it acquired its second piece of land in Woodlands Circle in 1998. Other frequent bidders in the last 12 years include Victory Family Centre and Bethesda Community.

In fact, fast-growing churches like City Harvest hire property consultants like Knight Frank for tenant representation - a suite of services that can involve analysis of options and negotiation of contracts.

This is because large churches say they are hit by a double whammy - a space crunch as membership grows, as well as the trend that church land sites have been shrinking over the years. Since 2000, released sites have been consistently under 3,000 sq m in size, compared with 4,617 sq m in 1995, according to HDB data.

The challenge for growing churches is how to keep the whole congregation in one auditorium. At the 20,000-strong New Creation Church, the main auditorium in Suntec City accommodates 1,400, or about a quarter of those who attend each of its four Sunday services. The majority have to watch the simulcast at five other venues - two Eng Wah cinema halls and three overflow rooms - in Suntec City.

From today, the church is expanding to its sixth overflow room - a GV Marina cinema hall - with a capacity for 1,800 people.

New Creation, which first met in a member's Holland Drive HDB flat in 1983, was registered the following year. From 30 people that year, attendance has soared to 20,000 and, along the way, the me- gachurch has outgrown about 10 venues.

'Over the years, we were sojourning through hotel ballrooms mostly,' says Deacon Ho, whose list includes Grand Central, New Otani and Westin.

Then in 1998, the church rented an auditorium from Suntec City, forming Rock Productions to rent out the venue for secular uses on weekdays to get around zoning issues, and to secure for itself a large- enough venue for its weekend worship services. But with an annual church growth rate of 12 per cent over the past five years, it is now bursting at the seams for its first two Sunday services.

No-signboard churches

Smaller churches with fewer resources are also resorting to contortions to get around expensive church land. Many move their meetings from home to home, or settle between greasy workshops in industrial estates. They go without signboards, careful to maintain friendly relations with neighbours and keep the decibels low.

The pastor of one such 50-member church, which operates out of a rented $2,000-a-month shophouse in the heartland, says: 'I always remind everyone to keep their shoes indoors and not to create a nuisance.'

However, it is understood that the authorities are about to clarify principles on the use of secular space. This has caused much anxiety among churches without their own land, which are now more diligently than ever saving towards their next bid.

'Rising land cost has become a big pressure point and some churches' biggest-ticket item, exceeding even staffing costs. But when you grow beyond a few hundred, it is imperative to secure a stable location and facilities,' says a prominent denominational pastor here.

A comparison of data over the last decade shows that church land costs on average about 50 per cent more per square metre than Chinese temple land. It also costs 3.5 times more than Hindu temple land, based on 1992 figures, when the last Hindu site was tendered. Mosque sites are allocated to the Islamic Religious Council of Singapore (Muis) at a price determined by the chief valuer, usually three to four times below market value, according to a paper by NUS geographer Lily Kong.

Since churches are paying market rates for land, by extension, some have also resorted to the market and doing business to pay for it.

'After all, they must be creative to recoup funds to operate, and the quickest way to make it back is to go into business. And it becomes a vicious circle,' says a seminary dean, who declined to be named.

Commercial investments

Seeking a better return from assets, two megachurches have invested hugely in commercial spaces. New Creation's business arm Rock Productions has teamed up with mall developer CapitaMalls Asia to build a $1 billion lifestyle hub in one- north. This will house shops, a concert hall and a theatre, when ready in 2012.

In 2001, Rock Productions also bought Marine Cove, hoping to build an auditorium, for which the previous owner had received in- principle approval from the National Parks Board. But the deal fell through as the URA had zoned the beachfront cluster for food and recreation. The owner then dropped the price, from the valuation of $14 million to $10 million. Marine Cove is known to be 'profitable' for the church today.

In March, City Harvest Church announced it was paying $310 million to become a co-owner of Suntec Singapore. The church is looking to move to a 12,000-seat auditorium there in the second quarter of next year, after its Singapore Expo lease expires. The plan is that profits will eventually be able to cover the rent, and that financing will be self-sustaining.

Responding to these moves, theologians here say the Bible is not explicit on whether churches should be in the real estate business, but that their core business should be spiritual.

They note that churches often start out acquiring commercial land to secure more permanent church premises, then incorporate a company to run it independently in accordance with regulatory requirements, both done out of necessity. But along the way, they discover the joy of making profits.

Many pastors then feel compelled to run their churches like CEOs. Executive Pastor Derek Dunn of City Harvest Church, for instance, serves as CEO for Singapore's biggest church with a congregation of 33,000.

Sociologist Mathew Matthews observes that the corporate model has now permeated churches here, many of which amass a wealth of professional and managerial talent on their boards. This is pervasive in the United States and developed nations. 'Congregations like organised and professional structures,' says Dr Matthews, who has written on Christianity in Singapore.

The trouble, says Dr Roland Chia, dean of postgraduate studies at Trinity Theological College, is when the church becomes distracted from its core mission. 'The church, of course, is not a business enterprise. Its main work is the proclamation of the gospel of Jesus Christ,' he says.

But undeniably, the stakes are so high today that becoming big, if not mega, is necessary to some extent for survival, say pastors.

Two under one roof

So what are viable solutions to this space crunch, going forward?

Mr Teoh Chong Tatt, a pastor at Bukit Panjang Gospel Chapel, is not convinced that every church needs its own land. 'Why can't a couple of churches join forces and resources to bid together for one space and share it? Otherwise, the building is often under-utilised, especially on weekdays.'

A pastor of an 800-strong Presbyterian church agrees: 'There are just too many church buildings in Singapore. Do we need another one? I believe that the church should be a blessing to others and not just to itself. The money used in acquiring land could be better used to fight poverty and social problems.'

After all, Hindu temples do share premises. As many as 13 temples merged into four in the mid-1990s. They combined to build new temples, responding to a 1992 call by the Government, which had noticed that Hindus were overstretched trying to raise funds to build temples.

But the reality is that doctrinal differences among churches often stand in the way of sharing. As the pastor of one of the oldest churches here puts it: 'Though we have one God, we have many different perspectives how to do church. Each church has its own mores, traditions, theological perspectives, decision-making processes and structures.'

Plus, church is a seasonal business. Everyone wants the best slots on Sunday, say pastors. No one wants to be allotted the sleepy hours in the afternoon.

Since 1982, only about three sets of churches have forged a successful land-sharing arrangement. That year, Mount Carmel Bible-Presbyterian Church and independent Bible Church jointly tendered for a West Coast Road site. Both ended their nomadic days in 1985 with the launch of Clementi Bible Centre.

In 1985, the Lutherans and Anglicans also evenly split the cost of building and running Yishun Christian Centre. A joint parish committee now administers the building and coordinates usage. This union has worked out, say observers, because while the two denominations are distinct, both sprang from the 16th-century Reformation Movement when the Protestants broke away from the Roman Catholic church. Plus Anglicans and Lutherans are 'liturgical', reading scriptures on a similar schedule.

Even more doctrinally compatible is the example of Hebron Bible-Presbyterian Church. In 1993, it won a bid for a 3,915 sq m plot in Choa Chu Kang. At least three sister Bible-Presbyterian churches now rent premises there. Sunday services run like clockwork - at 9am, 10am, 11am, 1pm, 5pm and 8pm.

One 100-member tenant church based there is Mount Horeb Bible-Presbyterian Church, led by Reverend Timothy Phua, who is mindful that it takes effort for churches to coexist and that his 5pm service slot is not ideal.

But he says: 'The Lord opened the door for this time slot, so we went in. From a worldly perspective, everyone will want the best property in Orchard Road, a 200-space car park, food court, MRT. Sure, the church will grow.'

He says he sticks to the 'main philosophical question of what the church is for', which is to win over people wherever it is planted.

Land-scarce solutions

Going forward, there are no easy solutions to the problem. Should the Government release more land for religious use, and perhaps consider different-sized plots and clearer guidelines on land leases for these purposes?

The URA says it sets aside land for places of worship in its masterplan, and has a zoning system to clearly define the uses allowed at each location. In planning for the size and location of each site, it seeks to balance the needs of various religious groups and the public.

But more immediately, to ease pent-up demand for sites, NUS' Prof Yu says existing sports halls and school auditoriums could be opened up for church use, which would increase their usage on weekends.

Anglicans and Methodists already use the halls of their mission schools for church activities, notes Deacon Ho of New Creation. Why not let government schools also earn some money by renting out their halls? 'As long as there are no crosses and altars,' he qualifies, and suggests that when churches install good sound and video systems, that too will benefit the schools.

Ngee Ann Polytechnic real estate lecturer Nicholas Mak, however, thinks schools should stay secular. 'Using industrial premises on weekends may be a more creative solution,' he says, but adds that there may be issues like security and parking woes in industrial estates.

He maintains it is no fault of the Government that the size of some congregations have outstripped national provision for church land. 'The Government can't change plans each time just because a few churches grow very fast.'

And perhaps, there is some comfort after all from the daunting data on church land prices.

Knight Frank group managing director Danny Yeo calculates that from 1991 to 2010, the average land price paid by churches was about $1,900 psm. Prices for parcels moved up and down in those years, 'mostly in line with the general market', he says.

But the real disconnect, he notes, is that supersized churches today 'have the budget but no choice' in a situation where sites on offer are too small to meet their requirements. With new sites offered all below 3,000 sq m, the biggest auditoriums that can be built will seat only 1,000.

'But megachurches like New Creation and City Harvest need auditoriums that seat 4,000 to 5,000 at least. They need much larger premises,' he says.

If not, churches will perpetually be on the move, having to devise various market solutions and at risk of encroaching into secular space.

siewhua@sph.com.sg

suelong@sph.com.sg


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TWO VIEWS

A necessity

'Rising land costs have become a big pressure point, and some churches' biggest-ticket item, exceeding even staffing costs. But when you grow beyond a few hundred, it is imperative to secure a stable location and facilities.'

A prominent denominational pastor



An indulgence?

'There are just too many church buildings in Singapore. Do we need another one? I believe that the church should be a blessing to others and not just to itself. The money used in acquiring land could be better used to fight poverty and social problems.'

A pastor of an 800-strong Presbyterian church



The congregation at a City Harvest Church service at the Singapore Expo last Sunday. --ST PHOTOS: LAU FOOK KONG, NG SOR LUAN




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URA Response

The Government sets aside land for places of worship, taking into account Singapore's population growth and demographic make-up, and mindful of various religious needs in a multicultural setting.

The land sites are 'planned and safeguarded' for use as places of worship in the masterplan for the city and released in the Housing Board tender, in tandem with the population growth in each town.

The Urban Redevelopment Authority (URA) highlighted these principles in response to The Sunday Times' queries as to what guides the authorities in planning and zoning land for religious use.

In planning for the size and location of each site, the URA says it seeks to balance the needs of various religious groups and the public.

These places of worship are planned near or amid neighbourhoods as a 'social amenity', to be conveniently close to worshippers.

'On the other hand, we have to ensure that the size and location of these sites do not lead to significant traffic, noise and other disturbances to residents living close by,' said a URA spokesman.

Singapore has a land use zoning system that defines clearly the nature of the uses allowed at specific locations. 'The zoning system is important as it helps to safeguard the amenity of certain locations and provides certainty and transparency on land use to home owners, businesses, and various groups in society,' the spokesman added.

In response to questions about churches venturing into commercial land, the URA said sites zoned for 'commercial' use are intended for commercial activities and to serve as 'secular spaces for people from all segments of our society'.

'While we recognise that there may be a need for various religious organisations to make use of commercial venues for large-scale events on an ad hoc basis, sustained and significant use of commercial venues for religious activities should not crowd out the commercial uses and significantly alter the secular nature of these places,' said the spokesman.

ST : $36m home could be S'pore's most expensive

Jun 13, 2010

$36m home could be S'pore's most expensive

Chinese national buys 99-year Sentosa Cove bungalow, complete with berth for yacht

By Irene Tham

A Chinese national is believed to have set the record price for a bungalow here, forking out a handsome $36 million for a luxury home in Sentosa Cove.

The property in Paradise Island was sold last month in the resale market at $2,403 per sq ft (psf), based on latest Urban Redevelopment Authority (URA) caveat records.

The house has a land area of 14,983 sq ft and a built-up area of about 17,000 sq ft.

It is probably the most expensive bungalow in Sentosa Cove in terms of the total amount paid and its per sq ft price, going by URA's caveat records.

At $2,403 per sq ft, it is also possibly the most expensive bungalow in Singapore, property agents say.

Mr Steven Tan, OrangeTee executive director (residential), pointed out that it is also on a 99-year leasehold tenure, unlike many bungalows in prime areas in mainland Singapore like Nassim Hill and the Holland area, which are freehold.

In May last year, China-born action star Jet Li paid $19.8 million for a 22,723 sq ft good class bungalow in Bukit Timah.

Sentosa Cove is a gated community comprising more than 2,000 homes, of which 400 are landed. The rest are condominium units.

Paradise Island is located in the northern part of the cove. The other developments in Sentosa Cove include Sandy Island, Coral Island and Quayside Isle.

The Business Times reported yesterday that the sellers of the $36 million bungalow are understood to be Singaporeans, with the deal brokered by DTZ. The Chinese buyer is a Singapore permanent resident.

The house was first sold by its developer Ho Bee in April 2007 for $18.1 million ($1,208 psf). It was resold for $20.18 million ($1,347 psf) in September last year.

This makes the Chinese national the third owner of the property, which received its temporary occupation permit (TOP) in May last year.

The two-and-a-half storey bungalow faces a waterway, with a berth for a yacht. It also has a private pool.

The high price can be explained by its features, said property agents.

'This is truly resort-style living,' said Mr Tan.

Ms Margaret Thean, executive director of DTZ, said: 'Many high net worth individuals appreciate the privacy of a gated community, waterfront facing and having a berth for a yacht. This could be their second, third or fourth home around the world.'

Landed home prices on Sentosa could have also been driven up by the fact that foreigners are allowed to buy them, said property agents.

This opens the market to the entire world, although such sales are still subject to approval from the Singapore Land Dealings (Approval) Unit.

Landed homes on the mainland can be bought only by citizens and permanent residents.

Also, foreigners buying a landed home in Sentosa Cove do not have to hold the property for three years before they can sell it - which they have to do when buying a landed property on the mainland.

But whether on the mainland or in Sentosa Cove, foreigners may own only one landed property in Singapore at any time. Also, they cannot rent out the home.

The Sunday Times understands that properties on Sentosa attract mostly foreigners, with Chinese nationals growing in numbers.

Take Kasara - The Lake collection at Sentosa Cove from YTL Corporation.

The Sunday Times understands that of the 13 units launched in December last year, more than half were bought by Chinese nationals.

The Business Times reported yesterday that four members of a Liu family from Liaoning bought a bungalow each at Kasara in March.

The prices range from $15.9 million to almost $26 million a bungalow. This translates to $1,731 to 1,780 psf (on land area). The bungalows are expected to receive their TOPs in June 2012.

'Buyers from China have in the past year been more prominent in snapping up homes in Sentosa Cove,' said DTZ executive director (consulting) Ong Choon Fah.

'This is a result of China's exuberant economic growth,' Mrs Ong said.

Traditionally, the foreigners who buy landed homes here are Indonesians and Malaysians.

itham@sph.com.sg


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On a roll

'Buyers from China have in the past year been more prominent in snapping up homes in Sentosa Cove... This is a result of China's exuberant economic growth.'

DTZ executive director (consulting) Ong Choon Fah



The two-and-a-half-storey bungalow faces a waterway, with a berth for a yacht. It also has a private pool. The house was first sold by its developer Ho Bee in April 2007 for $18.1 million. -- BT FILE PHOTO

ST : Farrer Road logjam set to run its course

Jun 13, 2010

Farrer Road logjam set to run its course

Work on MRT station ending soon, bringing relief and hopefully pick-up in business

By Sumita Sreedharan

The logjam in Farrer Road looks set to clear at year-end.

That is when major works to build the Farrer MRT station - the cause of the congestion - are expected to be completed.

Already, the stretch of Farrer Road - towards Bukit Timah - has been straightened.

The other stretch - bound for Holland Road - remains one of twists and turns, choking up traffic during peak hours.

This estimated 1.6km stretch of Farrer Road, in the vicinity of Queen's Road and Empress Road, used to be straight before work started on the Circle Line MRT station.

The contract for building the station was awarded in 2004.

A Land Transport Authority spokesman said that with most of the structural works for the station due for completion, all affected roads will be back to their original state by the end of this year.

It will also widen the affected section of Farrer Road from three to four lanes in both directions.

That is good news for residents like Ms Jenny Lim, 41, an administrative assistant, who said going to work has been a headache. But with an MRT station coming up, 'all the time I've wasted stuck in jams will be for a good reason'.

Businessmen in the area cannot wait for the changes to come. Take Mr Mohd Sani, 57, who has run Farrer's Salon for 32 years at Block 4 Queen's Road. 'With all the construction, our businesses have been affected,' he said of his and other tenants' takings.

Things were made worse when a collective sale of Farrer Court in 2007 led to residents of the 618 units moving out.

Which is why businessman Alvin Gan is pinning his hopes on the MRT station, slated to open next year, to give a booster shot.

'It will definitely be more convenient for our customers to visit our shop then,' said the owner of Piore, which sells organic and natural products. He runs the 21- month-old shop with his sister.

Tenants said the HDB reduced rent a year ago to provide some relief.

An HDB spokesman said the 25 per cent rent rebate will continue till the major construction works are completed.

But there has only been a minimal impact on property prices.

'Most buyers tend to be familiar with the nearby amenities and the fact that Farrer Road is just minutes from town overrides the short-term inconvenience of road works,' said Mr Adam Tan, corporate communications and marketing manager of PropNex Realty.

Property watchers expect prices to rise once the MRT station is up and running.

'Even for those who plan to move out of the area, they are holding on, or waiting for the road works to be completed. They know that the property can then command a higher price,' said Mr Tan.

sumitas@sph.com.sg



Farrer Road, with one stretch back on the straight while the opposite is still in twists and turns. But this is expected to be straightened by the end of the year. -- ST PHOTO: ALPHONSUS CHERN


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Elsewhere...

· CTE

Widening of the Central Expressway (CTE) started in mid-2008 between Ang Mo Kio Avenues 1 and 3. It was completed in July last year.

The Land Transport Authority is now widening four stretches, involving seven flyovers and construction of a new pair of flyovers between the PIE and Braddell Road.

There will be four lanes in both directions of the CTE (from Bukit Timah to Yio Chu Kang roads) when the project is completed at end-2011.

· Eunos Link

Work to widen Eunos Link and Jalan Eunos (from Airport Road to Sims Avenue) from three to four lanes in both directions is slated for completion by the end of this year.

Source: LTA

ST : Asians snapping up London property

Jun 13, 2010

Asians snapping up London property

London - Investors from Singapore, Hong Kong, Malaysia and China are buying up property in London, attracted by a weak pound and rising rents.

Asian investors made up almost half of all buyers in the London residential property market in the past year, according to research by Knight Frank.

Investors from China, Hong Kong, Singapore and Malaysia made up 28 per cent of London home purchases in the year ended March, the London-based broker said. Buyers from the rest of Asia, not including India, amounted to 18 per cent, while British purchasers represented 37 per cent of sales.

'Current international investment demand is almost totally concentrated on London and is primarily coming from Asia,' said Knight Frank head of residential research Liam Bailey. 'The interaction of currency movements, strong capital price growth and, more recently, rising rents have created an attractive investment case.'

Chinese investors are also looking to buy property overseas to spread their risk if the China market bursts, Knight Frank said. Many are looking to gain access to British universities, with the number of Asian students studying there rising 175 per cent over the past decade, the broker said.

The most attractive homes for Asian investors are located in the two central London zones and within a few minutes' walk of a subway station.

Asian investment in London property has totalled £761 million (S$1.6 billion) over the past 12 months, according to the broker. Of the 7,579 new homes built in the last year in central London, 41 per cent were bought by investors rather than buyers who planned to live in the residence.

Bloomberg

ST : Land investors show up at Speakers' Corner

Jun 13, 2010

Land investors show up at Speakers' Corner

By Kimberly Spykerman

More than 40 disgruntled investors turned up at Speakers' Corner yesterday morning to share their woes on investments gone sour.

They were convinced by Singapore- based investment firm Profitable Group that parting with their cash would bring them guaranteed returns.

But many said they have yet to see their money despite persistent calls to the company.

The five-year-old company, which deals in land and lubricants investments among other things, made headlines recently when angry investors stormed its headquarters in Stanley Street demanding their payouts.

It has also been reported that the company had been placed on the Monetary Authority of Singapore's (MAS) Investor Alert List in the latter part of last year.

One investor who was at Speakers' Corner, Mr Annamalai Meyyappan, 42, chief executive of a software consultancy, told The Sunday Times: 'We want the public to know about this group... It will be hard to get back our money.'

He said that he had invested US$7,000 (S$9,800) on a fuel product called Boron, with a promise that he would reap a guaranteed profit of 12.5per cent after six months.

His investment matured at the end of April but he has yet to see the money. In fact, he claimed that the company had fobbed him off numerous times.

Some investors had parted with as much as $180,000.

Many said they were taken in by the sleek presentation and the fact that company had a quality seal.

Said Mr H. Yeo, 35, who works in retail: 'Their roadshow was at nice shopping centres like Raffles City; it looked very well done, so it was very professional and impressive.'

He had invested £13,000 in 2008 (about S$33,000 at the time) in land in the Philippines, and had been due to get his returns last year.

Many who turned up also came to discuss what further options they might have.

A group of 20 had lodged a collective police report late last year, while another person had gone to the Small Claims Tribunal, only to be told that investments did not fall under its purview.

The group yesterday signed a petition for regulatory action to be taken, and will submit it to the MAS. About 10 of them also went to the nearby police post to lodge a report.

Mr Tan Kin Lian, president of the Financial Services Consumers Association, was on hand to offer advice. He suggested that investments of more than $10,000 should be regulated.

He also proposed that these large sums be treated as deposits so that the companies taking the money would be beholden to the laws that govern banks and financial institutions.

Calls to the Profitable Group yesterday went unanswered.


--------------------------------------------------------------------------------

Impressive roadshow

'Their roadshow was at nice shopping centres like Raffles City; it looked very well done, so it was very professional and impressive.'

MR H. YEO, 35, who works in retail



Mr Tan Kin Lian was on hand to offer advice to the disgruntled investors who had gathered. He suggested that investments of more than $10,000 should be regulated. -- ST PHOTO: BENJAMIN NG

ST : Old Huang's capsule remedy for housing woes

Jun 12, 2010

people

Old Huang's capsule remedy for housing woes

By The Straits Times China Bureau

BEIJING: Old Huang's Capsules sound like a remedy for rheumatism or other ailments but their real purpose is harder to swallow.

Retired engineer Huang Rixin invented them as a cure for the increasing problem of overcrowding in China's big cities. He launched the country's first capsule hotel in March. Proving age is no barrier to entrepreneurship, the 78-year-old sank 30,000 yuan (S$6,000) of his own savings into the low-cost project.

His experiment targeted what is known as the city's Ant Tribe - the vast number of young, poorly paid urban graduates who live in slum-like conditions.

The small-scale launch involved eight capsules, each 2.4m long, 1.6m high, and 0.72m to 0.92m wide. The capsules are in two apartments that Mr Huang rented and then refitted.

The grassroots inventor filed multiple patents for his capsule designs and even came up with his own registered trademark, Huang Lao Jiao Nang, or Old Huang's Capsules.

The cheap rent - just 8 yuan a day - won him plaudits and tenants. In less than a month, all eight capsules were snapped up by low-wage workers and fresh graduates.

'One graduate from Jilin was so grateful he couldn't stop thanking me,' Mr Huang said. 'He arrived in Beijing to job hunt with just 1,000 yuan, and while even a cheap hotel room would have cost 50 yuan a day, my capsules came at a fraction of that.'

Tenants have to share bathrooms and kitchens with other capsule occupants.

Mr Huang thinks of himself more as a social activist than a businessman, screening each applicant closely to ensure that only the needy get them.

Capsules, he argues, are the key to solving the long-standing problem of how to house everyone cheaply in the nation's increasingly overcrowded cities.

Boarded up with cement and steel to make them fireproof and soundproof, the capsules - modelled after those in Japan, but larger - offer a 'dignified' lifestyle to occupants, he said.

After Mr Huang became a media sensation, the government said it was mulling over a change of rules: Each partitioned room must be no smaller than 4 sq m, or double the size of his current capsules.

The announcement prompted Mr Huang to shut down operations - three of his eight tenants have left, the other five will not be renewed once contracts are up. But he has already begun planning a new project. This time, he is in talks with an investor to build 100 capsules complying with the new regulations by the end of this month.

Observers will be watching the new project closely, to see if capsule hotels take off in China as they have in Japan. 'They're calling me the 'Father of Capsule Hotels' in China,' said Mr Huang. 'But more importantly, I think it's great that people are thinking about an alternative solution to our housing problems.'



Retired engineer Huang Rixin walking along the corridor of the capsule hotel he operates in Beijing. Each capsule costs 8 yuan a day to rent. Mr Huang thinks of himself as a social activist providing cheap accommodation to low-wage workers and fresh graduates. -- PHOTO: REUTERS

ST : Fire at condo site destroys dormitories

Jun 12, 2010

Fire at condo site destroys dormitories

By Mavis Goh & Alexis Cai

A HUGE fire that broke out at a construction site for a condominium project yesterday afternoon cost the workers at the site their living quarters.

The blaze occurred at the site of The Trizon at Ridgewood Close, off Holland Road.

It was believed to have started in one of the eight containers - similar to those used to carry goods - which functioned as worker dormitories. All eight were destroyed by the blaze.

There were 41 workers at the construction site when the fire broke out, and all managed to escape unharmed.

The Singapore Civil Defence Force (SCDF) said it received a call at about 3.45pm and dispatched two fire bikes, one fire engine and two red rhinos to the scene.

The SCDF said that the fire was under control within 15 minutes.

A resident living in the Montview condominium, which faces the site, said that she heard a loud explosion before seeing flames and smoke.

'For a while, the wind blew the flames directly into the uncompleted units, and I saw about five workers still standing there looking at the fire below. I'm not sure if they ran off after that as the smoke was too thick,' said the 36-year-old housewife, Madam Siriwan Yau.

The Trizon, a 289-unit luxury development by developer Singapore Land, is scheduled to be completed in 2013.

The Straits Times understands that about 40 per cent of the units have been sold.

Attempts to contact the developer were unsuccessful.

ST : Hydrogen power for JTC building

Jun 12, 2010

Hydrogen power for JTC building

Developer's CleanTech One building to be first of its kind here in 2011

By Grace Chua

THE first building in the upcoming CleanTech Park in Jurong will be the first in Singapore to run on hydrogen power generated in-house.

To be completed late next year, the developer JTC Corporation's CleanTech One building will have a one-megawatt power plant that will generate hydrogen when it is fed wood chips, plant waste and other biological material.

The fuel-cell plant, expected to provide about 20 per cent of CleanTech One's power needs, is the latest foray into hydrogen-fuel technology here.

The fuel produces no polluting carbon dioxide when turned into energy and is hence regarded as 'clean'.

Companies and institutions worldwide are trying to adopt hydrogen-fuel technology as a possible replacement for fossil fuels, which produce carbon dioxide when burned to generate electricity.

The accumulation of carbon dioxide in the atmosphere has been identified as a key factor behind climate change.

Besides chugging along on hydrogen power, CleanTech One has other eco-friendly features, including the generous use of natural ventilation, a dehumidifier powered by solar energy and a biodigester to decompose food waste cleanly, a JTC spokesman said.

JTC's director of its aerospace, marine and cleantech cluster Tang Wai Yee said CleanTech One would be a test-bed for such technology, and expressed hope that other clean technologies would be discovered or commercialised there.

Hydrogen fuel cells work by converting the chemical energy of hydrogen into electricity and water. The gas can be obtained from hydrocarbon-containing fuels like natural gas, biogas and diesel.

Cost is one obstacle to its wider use.

Producing power from hydrogen fuel cells now costs about $4,000 per kilowatt (kW), said Mr Avier Lim, the founder of fuel-cell firm GasHub Technology.

This price tag makes hydrogen power generation competitive only in places like rural Indonesia, for instance, where the costs of diesel-power generation and generator maintenance are relatively high.

Statistics from the United States Department of Energy put the cost of diesel-power generation at US$800 to US$1,500 (S$1,130 to S$2,120) per kW.

Developer JTC would not disclose the cost of its hydrogen fuel cell plant; it would say only that it was included in the $90 million it cost to design and build its building.

GasHub's Mr Lim reckons a plant that size can take three to four years to recoup its costs, depending on its efficiency.

Hydrogen fuel projects have had a patchy record here.

In last year's Shell Eco-Marathon, a hydrogen fuel cell car built by a National University of Singapore team travelled 484km on a single litre of the fuel.

But previous hydrogen-fuel pilot projects, such as a scheme to make small, powerful power generators, have failed.

The Rolls Royce one costing US$100 million to US$200 million started five years ago, in which the Singapore Government had a stake, could not progress to production stage due to technical issues.

Mr Lim said fuel cells need more support infrastructure and government endorsement, as is available in other countries.

Associate Professor Lu Wen Feng of the National University of Singapore, who supervises the Eco-Marathon hydrogen car team, said the efficiency and reliability of fuel cells need improving.

caiwj@sph.com.sg



Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access

ST : S'pore millionaire club the fastest growing

Jun 12, 2010

S'pore millionaire club the fastest growing

11% of households in S'pore have investable assets of over US$1m

By Gabriel Chen

SINGAPORE added millionaires at a faster rate than anywhere else in the world last year, despite a recession that decimated wealth in many nations.

The millionaire club grew by 35 per cent here, putting Singapore just ahead of second-placed Malaysia, with a 33 per cent gain, and Slovakia on 32 per cent and China on 31 per cent.

In absolute numbers, the United States still has by far the most millionaire households at 4.7 million, followed by Japan and China. But you are more likely to bump into a millionaire here.

An annual study by Boston Consulting Group (BCG) showed that Singapore had the highest concentration of millionaires, as in 2008. A total of 11.4 per cent of households here own more than US$1 million (S$1.4 million) - defined as those with investable assets of over US$1 million, exclusive of property and items like art. BCG did not provide the number of millionaire households in Singapore.

Hong Kong was next in terms of concentration, followed by Switzerland, Kuwait, Qatar, the United Arab Emirates and the US.

Singaporean T.J. Thang, who belongs to the elite group, did not fare too badly during the downturn. 'Some of my stocks fell in value during the recession, but I was still getting attractive property rental yields, and hence my cash grew,' said the 49-year-old businessman.

Economists and wealth managers cite a number of factors as to why Singapore is leading the way in the growth of millionaire households. One is the increasing number of property owners reaping profits from en bloc sales.

'I had a few friends who benefited from the en-bloc windfall and they parked their money in stocks and bonds,' said Mr Richard Wee, chief executive of private bank Lombard Odier Darier Hentsch & Cie (Singapore).

People here are also more likely to capitalise on their familiarity with the region by investing in shares in fast-growing Asia. The MSCI index of Asia-Pacific stocks traded outside Japan rose nearly 70per cent last year - its best performance since 1993 - far outpacing expected gains of just over 20per cent in US and European stocks.

Then there is Singapore's 'liberal admissions policy' to attract talent and the well-heeled, said CIMB Research economist Song Seng Wun.

Today, virtually every big-name private bank which caters to the well-heeled has made Singapore its regional hub.

What this latest report means is, 'for all the private bankers who are here, it confirms that this is the right spot to be', said Mr Rolf Gerber, chief executive of LGT Bank in Liechtenstein (Singapore).

BCG told The Straits Times yesterday: 'Part of the reason for high wealth is that Singapore has a much higher savings rate than a lot of countries with higher average incomes.

'In terms of the 'average Singaporean', the majority of households in Singapore (about 60 per cent) have bankable assets worth between US$250,000 and US$1 million, with more at the lower end of the range than the higher end.'

Another factor could have been the strength of the Singapore currency against the US dollar.

The sharp rise is also likely taking place from a low base. A Merrill Lynch Cap Gemini report last year reported that the number of millionaires in Singapore had fallen 21 per cent to 61,000 in 2008 due to the financial crisis.

Separately, the latest figures from Singapore's taxman show that there were 3,838 taxpayers who earned more than $1 million in 2007.

BCG's study reviewed the assets under management covering 62 markets representing around 99 per cent of global economic output.

gabrielc@sph.com.sg


--------------------------------------------------------------------------------

Top of the list

Country growth in millionaire households

· Singapore: 35%

· Malaysia: 33%

· Slovakia: 32%

· China: 31%

· Morocco: 28%

· South Korea: 28%

· United Arab Emirates: 23%

· Germany: 23%

· Indonesia: 21%

· Algeria: 21%

ST : Wanted: Feedback on changes to Property Tax Act

Jun 12, 2010

Wanted: Feedback on changes to Property Tax Act

THE Ministry of Finance is seeking public feedback on proposed changes to the Property Tax Act.

The proposals are aimed at improving tax administration and providing greater clarity to taxpayers, the ministry said in a statement yesterday.

A total of 12 changes have been proposed in the draft Property Tax (Amendment) Bill.

One proposal is to streamline reporting requirements of property owners by removing the obligation for them to inform the Inland Revenue Authority of Singapore of certain events, such as when a building is completed, rebuilt, enlarged, altered or improved.

Another proposal is to shorten the time for the tax authorities to recover outstanding property tax and refund excess property tax paid from six to five years.

This is in line with the term applying to income tax and goods and services tax.

The ministry also suggests that interest payable on the refund of excess funds pursuant to court orders be computed from the date of the order - similar to income tax matters.

At present, the Property Tax Act does not specify how interest in such matters is to be computed.

The public feedback exercise started yesterday and ends on June 25.

Consultation documents can be accessed at the ministry's website and the Reach consultation portal.

HARSHA JETHNANI

BT : Feedback on property tax bill wanted

Business Times - 12 Jun 2010

Feedback on property tax bill wanted

THE Ministry of Finance (MOF) yesterday launched a public consultation to seek feedback on proposed changes to the Property Tax Act.

There will be 12 suggested changes in the draft Property Tax (Amendment) Bill 2010. They are the result of periodic reviews of the property tax system, and 'aim to improve tax administration or provide clarity to taxpayers', MOF said in a release.

One proposed amendment will streamline reporting requirements for property owners - they will no longer need to inform the taxman about certain events, such as when a building is completed or rebuilt.

Another suggested change will allow the Comptroller of Property Tax to recover property tax for redevelopment sites prior to the current year, subject to a time-bar limit of five years.

The public consultation exercise will end on June 25. Consultation documents and explanations for the draft bill are available at MOF's website and the REACH consultation portal.

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

BT : Preview of EL Development's Stevens Suites within weeks

Business Times - 12 Jun 2010

Preview of EL Development's Stevens Suites within weeks

By UMA SHANKARI

BOUTIQUE property group EL Development will start previewing its 32-unit Stevens Suites late this month or early next month.

The freehold project at Stevens Close will be priced from $1,680 to $2,050 per square foot (psf). It will feature one, two and three-bedroom apartments, and eight penthouses. EL Development bought the site in September 2009 for $900 psf per plot ratio through a private treaty, said the company's managing director Lim Yew Soon.

As the property was designed with small to mid-size families in mind, most of the units are 800-sq-ft two-bedders or 1,100-sq-ft three-bedders, he said. However, larger families can buy two units and connect a two-bedroom unit with a three-bedroom one, which will turn the home into a spacious four-bedroom apartment with a study.

All units will have bathrooms tiled with either natural marble or granite, and will be fitted with European branded kitchen appliances, sanitary ware and fittings. The eight penthouse duplexes will have their own private spas. Other facilities include a gymnasium, a pool and a playground for children, as well as men's and women's steam rooms.

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



FIT FOR SMALL, MEDIUM FAMILIES
Most of the units at Stevens Close are 800-sq-ft two-bedders or 1,100-sq-ft three-bedders. The freehold project will be priced at $1,680 to $2,050 psf.

BT : Millionaire households on the rise

Business Times - 12 Jun 2010

Millionaire households on the rise

Singapore stands out, with such households rising by 35% last year

By GENEVIEVE CUA

THE rebound in asset markets last year has buoyed the global wealth market by 11.5 per cent to US$111.5 trillion, with Singapore making its mark yet again as the market with the highest growth in millionaire households.

Singapore's millionaire households rose 35 per cent in 2009, says the Boston Consulting Group (BCG) in its latest Global Wealth Report. Singapore also had the highest concentration of millionaire households at 11.4 per cent, followed by Hong Kong at 8.8 per cent.

These comprise households with at least US$1 million in assets under management (AUM). BCG's data cover liquid assets and exclude property.

But while asset growth may look robust, there are sobering aspects to the business. Wealth managers' average profitability fell to 22 basis points, from 27 basis points in 2008.

The survey of 114 wealth-management institutions worldwide found that revenues fell despite the fact that assets under management of the firms surveyed increased by an average of 14.3 per cent. Revenue margins - measured by return on assets - slipped by an average 12 basis points to 83 basis points. While managers' costs fell, it was not enough to offset the fall in revenues. Cost-to-income ratio hence rose to 74.4 per cent from 72.3 per cent previously.

BCG says in its report: 'The recovery in AUM masks significant and lasting challenges to the industry's profitability. In most regions, wealth managers face the prospect of persistently low revenues and revenue margins, along with stubbornly high costs.'

It adds: 'Wealth managers must not allow the surge of global wealth to lead to a sense of complacency or a lack of urgency when it comes to addressing (the) challenges. They must focus on quality, precision and service delivery - as well as on truly understanding the client.'

The average cost-to-income ratio in Asia actually rose 24 percentage points between 2007 and 2009. This is a greater magnitude than the global average increase of five percentage points in the same period.

What's more, global assets in 2009 remained in a state of flux. This was driven, says BCG, by a couple of trends: Clients moved assets out of global institutions, spreading them among multiple banks. And, regulatory pressure led to a repatriation of assets from offshore centres to clients' home markets.

Still, net new assets - the difference between asset inflows and outflows excluding market performance - rose by an average of just 1.5 per cent globally. Asia-Pacific saw net new money of 6.2 per cent.

The outlook for Asia and the emerging markets, however, remains bright. BCG expects global wealth to grow at an annual clip of nearly 6 per cent from end-2009 to 2014. Asia's growth is expected to be nearly twice the global rate.

BCG partner Tjun Tang, who also co-authored the report, said: 'There is no doubt that wealth will continue to grow faster in emerging markets, fuelled by strong economic growth. We expect Asia-Pacific, including Japan, to grow at nearly twice the global rate, raising its share of global wealth from 15 per cent in 2009 to almost 20 per cent in 2014.'

Switzerland remained the largest offshore wealth centre with US$2 trillion or 27 per cent of global offshore wealth. BCG lists Singapore and Hong Kong's combined share at US$700 billion or about 9.4 per cent of total offshore AUM of US$7.4 trillion.

In Asia and Europe, market values and increased savings played an equal part in the AUM rise. In the United States, market values accounted for 70 per cent of the rise in AUM. While Europe remained the largest wealth region with US$37 trillion in AUM, the largest absolute gain in wealth was seen in North America. Asia registered the greatest percentage gain in wealth of 22 per cent to US$3.1 trillion.

Clients' asset allocation remained fairly conservative in 2009. Globally, allocations to cash rose declined from 51 per cent in 2008 to 48 per cent last year. But the latter is still higher than the 2007 cash allocation of 44 per cent.

Equities' share was 30 per cent. Here lies part of the reason for wealth managers' lower margins as clients still preferred simpler products. This is in addition to the pressure of fewer transactions and tougher price negotiations.

Tongjai Thanachanan, a core member of BCG's South-east Asia asset and wealth management practice, said: 'Investors have started moving assets out of safe havens, but they still have a lot of wealth parked in basic, low-margin products.

'Their asset allocations tend to be more conservative than their actual risk profiles. In addition, the use of discretionary mandates is down, as investors remain wary of signing over control of their wealth.'

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

BT : Price of Sentosa Cove home defies gravity

Business Times - 12 Jun 2010

Price of Sentosa Cove home defies gravity

Top-end bungalow sells for $36m at $2,403 psf despite cautious mood in property market

By KALPANA RASHIWALA

AMID the caution that has crept into the market for mainstream condos since last month, a record price has been set for a top-end bungalow on Sentosa Cove. The property at Paradise Island changed hands in the resale market for $36 million or $2,403 per square foot on land area last month. In terms of both, the absolute amount and unit land price, this is believed to be the priciest bungalow deal in the upscale waterfront housing district, based on caveat records captured by the URA Realis system.

The $2,403 psf unit land price is also probably the highest for a bungalow transaction anywhere in Singapore, property agents say. The deal is understood to have been brokered by DTZ. The two-and-a-half storey bungalow fronting the waterway has a private pool and a berth for a yacht. Homes on Sentosa Cove are sold on 99-year leasehold tenure sites.

The new owner of the Paradise Island bungalow is believed to be a Chinese national who is a Singapore permanent resident. The sellers, who are understood to be Singaporeans, have reaped a handsome profit. According to caveats data, the house was last transacted in September last year at $20.18 million or $1,347 psf. The property was first sold in April 2007 by Ho Bee, the developer of Paradise Island, for $18.1 million or $1,208 psf. The bungalow has a land area of 14,983 sq ft and a built up area of about 17,000 sq ft.

A nearby property on Paradise Island also changed hands in March at $2,390 psf in the resale market but as its land area was smaller at about 8,105 sq ft, the lumpsum price was lower at $19.38 million. Ho Bee's Pardise Island project received Temporary Occupation Permit (TOP) in May last year.

A new record bungalow price could be set for the location if Satinder Garcha's Elevation Developments gets the $3,000 psf it is looking at for its three-storey bungalow at 81 Ocean Drive, which has been completed. With a land area of 9,436 sq ft, the total price would work out to $28.3 million sq ft. The unit's built-up area is 11,500 sq ft. According to KH Tan, managing director of Newsman Realty, which is marketing the property, an offer for $2,700 psf from an American has been received, but Elevation is waiting for its target price.

The unit comes with a glass lift, two master suites, three smaller en-suite bedrooms, an infinity pool, a home theatre room and a spacious lawn. Elevation is offering the property furnished and fitted.

Foreign buyers, including mainland Chinese, have been active buying landed homes in Sentosa Cove, say property agents.

In March, four members of a Liu family from Liaoning are said to have acquired a bungalow each at Kasara - The Lake collection at Sentosa Cove from YTL Corporation. Their purchase prices range from about $15.9 million to nearly $26 million per bungalow or $1,731-1,780 psf on land area. The villas are slated to receive TOP in June 2012.

DTZ executive director (consulting) Ong Choon Fah is not expecting bungalow prices on Sentosa Cove to keep climbing at the same pace, given the more cautious global economic climate which could dent foreign interest. 'However, there is limited supply of just 400 landed homes on Sentosa Cove. And long-term investors may draw the conclusion that putting their money in the Singapore property market is a good investment when you consider the alternatives,' she added. Some market watchers say that the opening of Resorts World Sentosa has also boosted the appeal of owning a home on Sentosa Cove to some foreigners.

Sentosa Cove is the the only place where foreigners who are not Singapore permanent residents are allowed to buy landed homes, although this is still subject to approval from the Land Dealings (Approval) Unit. Also, foreigners buying a landed home on Sentosa Cove do not have to hold the property for at least three years before they can resell it, unlike the case when they buy a landed property on the mainland.

Whether on the mainland or on Sentosa Cove, foreigners may at any one time own just one landed home in Singapore and that too for owner occupation only.

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



UPSCALE HOME
The two-and-a-half storey bungalow fronting the waterway has a private pool and a berth for a yacht

BT : US home foreclosures jump 44% to hit another record

Business Times - 11 Jun 2010

US home foreclosures jump 44% to hit another record

(NEW YORK) US home foreclosures reached a record for the second consecutive month in May, with increases in every state, as lenders stepped up property seizures, according to RealtyTrac Inc.

Bank repossessions climbed 44 per cent from May 2009 to 93,777, the Irvine, California-based data company said yesterday in a statement. Foreclosure filings, including default and auction notices, rose about one per cent to 322,920. One out of every 400 US households received a filing.

'We're nowhere near out of the woods,' Rick Sharga, RealtyTrac's senior vice president for marketing, said in a telephone interview. 'We're likely to set a quarterly record for home seizures if June is anything like May.'

Lenders are completing the 'inevitable progression' of taking properties from homeowners who stopped paying, Mr Sharga said. He predicted last month that another 5 million delinquent mortgages will end in foreclosure in addition to properties that had already been repossessed. 'The second quarter won't be the peak,' Mr Sharga said. 'I'm not even sure 2010 will be.'

The previous record for seizures was 92,432 in April. Last month was the first in which every state had an increase in repossessions from a year earlier, according to RealtyTrac.

US private payrolls rose by 41,000 in May, Labor Department data showed last week. The hiring of temporary census workers boosted overall payroll growth to 431,000. The jobless rate fell to 9.7 per cent, from 9.9 per cent in April.

Almost a quarter of America's mortgage holders owed more than their homes were worth in the first quarter, Zillow.com said last month. Bank sales of foreclosed properties accounted for more than a fifth of all US home transactions in March, the Seattle-based real estate data provider said.

Wells Fargo & Co and Bank of America Corp, the two largest US home lenders, are cutting principal on some mortgages in an effort to keep owners in properties and get them to pay at least part of what they owe. -- Bloomberg

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

BT : China's May property price surge second highest on record

Business Times - 11 Jun 2010

China's May property price surge second highest on record

Govt measures so far have affected only transaction volumes: economist

(BEIJING) China's property prices rose at the second- fastest pace on record in May, showing little sign yet that the government crackdown on speculation will work to avert an asset-price bubble.

The 12.4 per cent gain compared with a record 12.8 per cent increase in April from a year earlier, the National Bureau of Statistics said on its website. The data series, covering 70 cities, began in 2005. The value of sales slid 25 per cent.

Yesterday's figures, along with data showing a bigger jump in exports than forecast in May, signal the dangers of maintaining stimulus measures adopted during the global recession. Concern that Premier Wen Jiabao's government will step up policy tightening, along with dangers posed from Europe's debt crisis, has sent China's benchmark stock index down 21 per cent this year.

'Housing prices continue to grow apace, it appears the government measures so far have only affected the transaction volumes,' said Liu Li-Gang, an economist at Australia and New Zealand Banking Group in Hong Kong. 'The government will have to work more to contain the strong demand' for property, he said, adding that higher interest rates would be most effective.

Last month marked the first easing in the annual rate of property price gains in 11 months. On a monthly basis, values advanced 0.2 per cent.

Sales in Beijing, Shanghai and Shenzhen fell as much as 70 per cent in May from the previous month and land sales for residential development projects in 70 Chinese cities fell 14 per cent, the official Shanghai Securities News reported earlier this month.

An index tracking 34 real-estate companies has plunged about 28 per cent this year, the worst performer among five subgroups of Shanghai's stock benchmark. It slid one per cent yesterday.

Sales by China Vanke, the nation's biggest publicly traded property developer, dropped 20 per cent in May from a year ago, and Guangzhou R&F Properties Co's contracted sales last month shrank 48 per cent on year, according to the developers' stock exchange filings.

'These exceptionally low transaction volumes are partly a result of banks' unwillingness to lend and also the result of buyers taking a step back' to wait and see what the government's next measures may be, Michael Klibaner, head of research in China for Jones Lang LaSalle said earlier this week.

Officials may introduce a trial property tax after already tightening sales rules for developers, raising some down payment requirements and restricting loans for multiple-home buyers, according to state media.

Besides industry-specific measures such as requirements for larger down-payments for some homes, the government on May 2 raised banks' reserve requirements for the third time this year to contain overheating risks after first-quarter economy expanded at the fastest pace in almost 3 years.

'The government's recent measures to cool the housing market focus on limiting investment and increasing the supply of public and low-cost housing,' Barclays economists Peng Wensheng and Chang Jian wrote in a June 7 report. 'This represents a regime shift in housing policy' and more measures are likely to come, they wrote.

Prices may tumble between 20 per cent and 30 per cent in coming quarters, according to the Barclays analysts' projections. The impact on the economy will be cushioned by rising public housing construction, they wrote.

Last month's biggest year-on-year price gains were in Hainan, the southern island being developed as a tourist destination. Hainan's Haikou and Sanya cities reported annual increases of 52.8 per cent and 50.8 per cent. Among the 70 cities covered, 12 had price declines in May from the previous month, including Beijing, Nanjing and Guangzhou. Eastern China's Hangzhou saw the biggest monthly drop, at 0.6 per cent.

Investment in real estate rose 38 per cent to 1.39 trillion yuan (S$288 billion) in the first five months of this year, after a 36.2 per cent gain in the January-April period, according to the statistics bureau.

Property sales by area rose 22.5 per cent in the first five months to 302 million square metre, the statistics bureau said. The pace is compared with an increase of 32.8 per cent between January and April. The area under construction rose 72.4 per cent from a year earlier to 615 million square metres.

For the full year, property sales may shrink 30 per cent from 2009, Jing Ulrich, Hong Kong-based chairwoman of China equities and commodities at JPMorgan Chase, said before yesterday's release. -- Bloomberg

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