Jul 11, 2010
property
Higher home prices to stay, say some
Others say excessive liquidity exaggerates prices
By Jessica Cheam
PROPERTY prices of both private and Housing Board resale flats have, for the first time, surpassed previous peaks to reach new records.
Latest official estimates show private home prices rose 5.2 per cent in the second quarter, after a 5.6 per cent jump in the first quarter. That means prices are now 1.5 per cent above the 1996 highs.
HDB resale flat prices rose 3.8 per cent in the second quarter, marking the eighth straight quarter that prices have broken records since 2008, when they surpassed the peak levels of 1996.
The rise in prices signals a strong demand for homes in the property market. But with prices at record levels, can this demand be sustained?
For home-buyers and investors still on the lookout, the big question is: To buy or not to buy? Does it make sense to buy now, given that prices are at the highest levels?
Or is this a new era of property prices in Singapore?
Most industry analysts whom The Sunday Times spoke to seemed to think so.
The increase in levels of affluence in Singapore and in Asia due to a robust regional economy has helped to fuel prices, said C&H Realty managing director Albert Lu.
These prices move up and down in tandem with property cycles, but each peak is higher than the previous peak and each bottom is higher than the previous bottom, noted ERA Asia-Pacific associate director Eugene Lim.
'So, if we were to plot a trend line across all the cycles, we can see that property prices will be on an uptrend over time,' he said.
Given Singapore's economy is roaring at double-digit growth rates, property prices can be expected to continue their march upwards in the short term, he added.
Even if private property buyers wait a year or two, there is no guarantee that prices will come down. And when they do, desirable properties are often taken off the market. 'So if you see something you like, do your sums and if it is affordable for you, then go for it.'
Mr Lu agreed. Buyers who cannot wait might want to buy before prices go up further, although if the purchase can be put on hold, 'it would be best to catch the next down cycle', he said.
This means the absolute loan amount a buyer takes will be lower and more affordable.
But prices are unlikely to return to the 2004 levels and the next down cycle could be as far as five years away, he said.
Chesterton Suntec International research and consultancy director Colin Tan has a contrarian's view.
This new level of prices is 'somewhat exaggerated by the excessive liquidity in all the markets today', he said.
While the market has achieved new peaks, it has done so on the back of 'abnormally low interest rates' - three times less than normal interest rates, he added.
The fundamental level of prices is likely much lower and close to pre-2007 price levels, he said.
'So although we're on a higher plane, current price levels will correct significantly to their true levels. The big question is when.'
So have investors missed the boat? 'In a sense, they have. But it's a boat lined with super glue - easy to jump into but difficult to disembark,' cautioned Mr Tan.
The rental market has plateaued in the second quarter and from anecdotal evidence by agents, investors are finding it difficult to achieve the rental returns they had hoped for, he added. As a general rule, investors should aim for a 3 per cent to 4 per cent rental yield per year, said Mr Lim.
Despite the high price levels, Associate Professor Sing Tien Foo of the National University of Singapore's real estate department observed that the current growth in prices is 'still not as high compared with the growth in prices in the previous peaks in the 1990s'.
However, 'we have to be concerned about the high volatility created by the active markets' and cautious about the possibility of a property bubble, especially if prices continue to increase at a pace that is not sustainable or reflective of the health of the economy, he added.
jcheam@sph.com.sg
Monday, July 12, 2010
ST : Ground rent does not mean right to stay on
Jul 11, 2010
Ground rent does not mean right to stay on
If there is no evidence that a 'squatter' paying ground rent is entitled to stay on the land permanently, then he needs only to be compensated reasonably for his house, Justice Chan Seng Onn had said.
He added that the law to repossess such land is clear.
The case has a precedent. In 1973, a landowner successfully evicted someone who bought an attap house on his land and paid $3 ground rent per month.
The judge had concluded that the landowner should be allowed to recover possession of the land, provided he made reasonable compensation to the defendant.
Lawyers said the latest case was a throwback to more than 50 years ago when it was a practice for some landowners to allow others to build houses on their land and reside in these houses, provided they continued to pay rent for the land as ground tenants.
Mr Patrick Tan, a lawyer who handles property cases, said it is very rare to find people paying ground rent in Singapore now.
'Most of the time now, a landowner will own both the structure on the land and the land. Developers, for example, will buy both the property and land when a place goes en bloc,' he said.
He added that the case is 'archaic and complicated' and that, in the past, the only way for a tenant to lay claim to the land was to prove he had an 'interest', that is, had developed roots and ownership there over a very long period.
Another property lawyer, who declined to be named, said the practice of ground rent dates back to the time of slums when it would have cost landowners nothing to allow a tenant to beautify and improve their land by squatting on it and building a house.
Shuli Sudderuddin
Ground rent does not mean right to stay on
If there is no evidence that a 'squatter' paying ground rent is entitled to stay on the land permanently, then he needs only to be compensated reasonably for his house, Justice Chan Seng Onn had said.
He added that the law to repossess such land is clear.
The case has a precedent. In 1973, a landowner successfully evicted someone who bought an attap house on his land and paid $3 ground rent per month.
The judge had concluded that the landowner should be allowed to recover possession of the land, provided he made reasonable compensation to the defendant.
Lawyers said the latest case was a throwback to more than 50 years ago when it was a practice for some landowners to allow others to build houses on their land and reside in these houses, provided they continued to pay rent for the land as ground tenants.
Mr Patrick Tan, a lawyer who handles property cases, said it is very rare to find people paying ground rent in Singapore now.
'Most of the time now, a landowner will own both the structure on the land and the land. Developers, for example, will buy both the property and land when a place goes en bloc,' he said.
He added that the case is 'archaic and complicated' and that, in the past, the only way for a tenant to lay claim to the land was to prove he had an 'interest', that is, had developed roots and ownership there over a very long period.
Another property lawyer, who declined to be named, said the practice of ground rent dates back to the time of slums when it would have cost landowners nothing to allow a tenant to beautify and improve their land by squatting on it and building a house.
Shuli Sudderuddin
ST : Landlord battles hard to evict home owners
Jul 11, 2010
Landlord battles hard to evict home owners
One of them demands $2m, but court awards him $74k
By K. C. Vijayan , Shuli Sudderuddin
A palatial bungalow sits at 20A Meng Suan Road, in stark contrast to Nos. 20 to 28 - old one-storey terrace houses, most of them with zinc roofs.
Over the past 10 years, families and workers have moved in and out of the nine terrace houses, which sit on land owned by Mr Ong Beng Chong, who lives in the bungalow.
In recent years, Mr Ong has been trying to get the occupants out so that he could redevelop the land.
The job looks simple enough, given that he is the landlord and calls the shots.
Except that the 21,066 sq ft piece of land in Mandai has a history that dates back to the 1950s, when people could own the land, and let others build houses on it in return for 'ground rent'.
In this case, that amounted to between $7 and $20 a month.
As of January 2008, the plot had an indicative price of around $250 to $260 per sq ft. Inclusive of the development charge, this would put its worth at about $5 million.
Mr Ong sent quit notices to tenants, with offers of compensation.
But he found several unwilling to budge.
Then the takeover battle started.
In March last year, he sued to evict the home owners of Nos. 21 and 23 after they refused his $40,000 compensation. He failed.
Justice Lai Siu Chiu ruled that Mr Ong's father had, in 1959, sold the two houses to Mr Yeo Ang Moo and Ms Victoria Jayaram's father, at a price for which they could have bought houses outright in other parts of Singapore.
Mr Ong's offer of $40,000 compensation then was 'derisory' and not a reasonable sum compared to the $5 million he stood to gain by auctioning off the land on which the row of houses stood.
Although Mr Ong lost the suit then, he appealed further and the case was subsequently settled through mediation.
He acquired the two units and the land they sat on.
He then moved on to acquire one more unit, settling the matter with the unit owner out of court.
Retiree Goh Kim Thong of No. 24, however, held out. He refused $225,000 and wanted between $1.8 million and $2 million instead. Mr Ong applied to evict him.
Mr Goh had bought the house for $10,000 in 1983 from the previous owner and lived there, paying a $7 monthly ground rent.
Based on the original 1959 agreement, Mr Goh argued in court he was entitled 'to squat on the land at $7 per month until the 999-year lease ran out in 2883', according to court documents.
Twice, the High Court warned Mr Goh that he might not end up getting the amount he wanted.
Twice, Mr Goh insisted on pressing his case, never mind that independent valuers had placed the value of the 51-year-old buildings at between $67,000 and $74,000 - far lower than what he had been offered.
Mr Goh, who represented himself, had taken what Justice Chan Seng Onn described as 'a gamble'.
He lost.
Justice Chan said the law to repossess such land is clear. The original land owner could retake the land as long as the building owner was reasonably compensated.
He awarded him $74,000 for the house based on its present condition and ordered him to hand over the premises within four months.
Mr Goh, who does not live at No. 24, signalled that he would be fighting on with an appeal.
The house is now occupied by six workers from Malaysia who are renting the house for $180 each. Mr Pang Kah Peng, 48, a tiling worker who has been living there for six years, said: 'We've heard before that we are supposed to move out, but we still don't know when. No one has told us anything.'
It is now four units down for Mr Ong. Two others are occupied by Mr Ong's family and relatives.
That leaves just Nos. 22, 26 and 28.
No. 28 is owned by the Lim Clan Association. Member Lim Teck Huat, 78, a retiree, said the clan had been offered $225,000 for it, but may want to ask for more.
'We have been here for over 20 years and don't have an alternative location yet. The house is so big, surely we should be given more,' he said.
The caretaker of the clan's premises, Mr Soh Boon Ang, 71, has a different problem: 'I've been living here alone for 10 years. I'll have nowhere to go if we have to move out and I have to get an HDB flat.'
vijayan@sph.com.sg
shulis@sph.com.sg
Mr Ong Beng Chong, who lives in a bungalow in Meng Suan Road, is trying to evict the owners of adjacent terrace houses which sit on land that he owns. -- ST PHOTO: ALPHONSUS CHERN
Landlord battles hard to evict home owners
One of them demands $2m, but court awards him $74k
By K. C. Vijayan , Shuli Sudderuddin
A palatial bungalow sits at 20A Meng Suan Road, in stark contrast to Nos. 20 to 28 - old one-storey terrace houses, most of them with zinc roofs.
Over the past 10 years, families and workers have moved in and out of the nine terrace houses, which sit on land owned by Mr Ong Beng Chong, who lives in the bungalow.
In recent years, Mr Ong has been trying to get the occupants out so that he could redevelop the land.
The job looks simple enough, given that he is the landlord and calls the shots.
Except that the 21,066 sq ft piece of land in Mandai has a history that dates back to the 1950s, when people could own the land, and let others build houses on it in return for 'ground rent'.
In this case, that amounted to between $7 and $20 a month.
As of January 2008, the plot had an indicative price of around $250 to $260 per sq ft. Inclusive of the development charge, this would put its worth at about $5 million.
Mr Ong sent quit notices to tenants, with offers of compensation.
But he found several unwilling to budge.
Then the takeover battle started.
In March last year, he sued to evict the home owners of Nos. 21 and 23 after they refused his $40,000 compensation. He failed.
Justice Lai Siu Chiu ruled that Mr Ong's father had, in 1959, sold the two houses to Mr Yeo Ang Moo and Ms Victoria Jayaram's father, at a price for which they could have bought houses outright in other parts of Singapore.
Mr Ong's offer of $40,000 compensation then was 'derisory' and not a reasonable sum compared to the $5 million he stood to gain by auctioning off the land on which the row of houses stood.
Although Mr Ong lost the suit then, he appealed further and the case was subsequently settled through mediation.
He acquired the two units and the land they sat on.
He then moved on to acquire one more unit, settling the matter with the unit owner out of court.
Retiree Goh Kim Thong of No. 24, however, held out. He refused $225,000 and wanted between $1.8 million and $2 million instead. Mr Ong applied to evict him.
Mr Goh had bought the house for $10,000 in 1983 from the previous owner and lived there, paying a $7 monthly ground rent.
Based on the original 1959 agreement, Mr Goh argued in court he was entitled 'to squat on the land at $7 per month until the 999-year lease ran out in 2883', according to court documents.
Twice, the High Court warned Mr Goh that he might not end up getting the amount he wanted.
Twice, Mr Goh insisted on pressing his case, never mind that independent valuers had placed the value of the 51-year-old buildings at between $67,000 and $74,000 - far lower than what he had been offered.
Mr Goh, who represented himself, had taken what Justice Chan Seng Onn described as 'a gamble'.
He lost.
Justice Chan said the law to repossess such land is clear. The original land owner could retake the land as long as the building owner was reasonably compensated.
He awarded him $74,000 for the house based on its present condition and ordered him to hand over the premises within four months.
Mr Goh, who does not live at No. 24, signalled that he would be fighting on with an appeal.
The house is now occupied by six workers from Malaysia who are renting the house for $180 each. Mr Pang Kah Peng, 48, a tiling worker who has been living there for six years, said: 'We've heard before that we are supposed to move out, but we still don't know when. No one has told us anything.'
It is now four units down for Mr Ong. Two others are occupied by Mr Ong's family and relatives.
That leaves just Nos. 22, 26 and 28.
No. 28 is owned by the Lim Clan Association. Member Lim Teck Huat, 78, a retiree, said the clan had been offered $225,000 for it, but may want to ask for more.
'We have been here for over 20 years and don't have an alternative location yet. The house is so big, surely we should be given more,' he said.
The caretaker of the clan's premises, Mr Soh Boon Ang, 71, has a different problem: 'I've been living here alone for 10 years. I'll have nowhere to go if we have to move out and I have to get an HDB flat.'
vijayan@sph.com.sg
shulis@sph.com.sg
Mr Ong Beng Chong, who lives in a bungalow in Meng Suan Road, is trying to evict the owners of adjacent terrace houses which sit on land that he owns. -- ST PHOTO: ALPHONSUS CHERN
ST : A day at The Heeren: IT'S OH SO QUIET
Jul 11, 2010
A day at The Heeren: IT'S OH SO QUIET
Tenants hope new lifestyle store will lure crowds back to deserted mall, a former youth hangout
By Melissa Pang , Amanda Tan
It was lunch time last Wednesday at The Heeren Shops in busy Orchard Road.
You would think the eateries at its basement and on the fifth floor would be packed, but, at Thai Express, only a handful of tables were occupied.
Just two shop spaces away, at Fish & Co, not even one customer was spotted.
And it was not only the eateries that were deserted.
Manicurists at The Nail Spa & Wellness chit-chatted and worked on each other's nails.
A hairstylist at UrbanHair by Ginrich was busy - fussing over his own hair.
There were no customers at either shop.
The shopping mall, a popular hangout with young adults about four years ago, has lost a lot of its vibe.
A former anchor tenant, music store HMV, has packed up and gone, and glitzy malls like Ion Orchard and 313@Somerset are now the new buzzwords with shoppers.
'When The Heeren opened, people had to squeeze through crowds, and I'd see about 200 people walk past in an hour,' said Mr Richard Tat, 51, owner of Body Decor Tattoo and Piercing.
'These days, hardly anyone walks by,' said the Heeren tenant of 10 years, who now depends on regulars for business.
Days can be slow. Last Wednesday, six hours after he started work at noon, the tattoo artist had done just one tattoo and one piercing and had sold a replacement ball for a navel ring.
Indeed, that day was not a good one either for many other tenants, going by what The Sunday Times observed between 9.45am and 10pm.
We saw people venturing into the six-storey mall, but many just window shopped on the first floor before walking out.
Most of those interviewed said they were looking only for a specific item and were not interested in checking out the shops.
Even fewer bought anything.
Certainly, at 2pm, there were no shoppers in the youth zone on the fourth floor, as loud techno music blared from some shops.
Around 6pm, things got a little better. We counted about 30 people on the fourth floor, which is occupied mostly by shops selling apparel.
But there were fewer than 15 patrons at the restaurants on the fifth floor.
The dearth of traffic was despite at least 19 shops in the mall offering discounts of up to 75 per cent, though Pasta de Waraku's student discount of 25 per cent seemed to be working.
It was the only restaurant on the fifth floor that was half-full at 1.30pm and 8.30pm. Other eateries were, at the most, about one-fifth full.
It was the same story with the basement eateries.
They were mostly empty, save for the newly opened Kiseki Japanese Buffet Restaurant, which attracted a queue.
When the music stopped
Tenants have been wringing their hands ever since HMV pulled out in January this year. The music store relocated across the road to 313@Somerset, less than a five-minute walk away.
'When HMV was here, we would be able to get more foreigners and increase our sales. Without it, we see a 30 to 40 per cent decrease in sales,' said Ms Cherly Wong, store manager at shoe and apparel outlet Converse on the third floor.
Fewer customers could have prompted some tenants to pull out. The Sunday Times estimated that 25 per cent of shops were available for lease.
According to Swee Cheng Management, the company that manages the mall, it has an incoming tenant, hairdressing salon Shunji Matsuo. It is in talks to fill up six units.
Efforts have been made to keep up with the changes in the Orchard Road area.
The 14-year-old Heeren was renovated two years ago, with changes made to the basement and fifth floor to make for more retail and recreation space.
Last year, an outdoor refreshment area was built and several eateries, such as McDonald's, set up shop.
Last month, the mall even hosted this year's Manhunt Singapore in a bid to whip up excitement.
Shoppers, however, remained lukewarm.
Ms Jocelyn Chan, 22, a Singapore Management University student, said she used to shop at The Heeren during her secondary school days, when it was still a trendy hangout.
Now, she prefers malls that carry international brands like Zara and Topshop. 'These days, I come only when the eating places at other malls are too crowded,' she said.
Tenants are now banking their hopes on ALT, the new anchor tenant which takes up the space vacated by HMV.
ALT, a lifestyle concept store targeting shoppers from their mid-20s to mid-30s, opened last Thursday.
Mr Ignatius Koh, 27, owner of Coalition Store, which sells clothes and accessories on the fourth floor, said: 'The crowd has been slow because we've been missing an anchor tenant for three levels of shop space.
'I'm expecting things to go back to normal once ALT opens,' he said last Wednesday.
The folks at Indonesian restaurant Desa Kartika share the same hope.
'We'll be happier once the anchor tenant opens. It will revitalise Heeren again,' said a spokesman.
melpang@sph.com.sg
tamanda@sph.com.sg
--------------------------------------------------------------------------------
Empty feeling
'When The Heeren opened, people had to squeeze through crowds, and I'd see about 200 people walk past in an hour. These days, hardly anyone walks by.'
MR RICHARD TAT, owner of Body Decor Tattoo and Piercing
Missing an anchor
'The crowd has been slow because we've been missing an anchor tenant for three levels of shop space. I'm expecting things to go back to normal once ALT opens.'
MR IGNATIUS KOH, owner of Coalition Store, which sells clothes and accessories
Empty corridors full of shuttered shops are a common sight at The Heeren, once a popular hangout for young people. The Sunday Times, which visited the mall last Wednesday, saw few shoppers. Many were just window shopping on the first floor. -- ST PHOTOS: DESMOND LIM
A day at The Heeren: IT'S OH SO QUIET
Tenants hope new lifestyle store will lure crowds back to deserted mall, a former youth hangout
By Melissa Pang , Amanda Tan
It was lunch time last Wednesday at The Heeren Shops in busy Orchard Road.
You would think the eateries at its basement and on the fifth floor would be packed, but, at Thai Express, only a handful of tables were occupied.
Just two shop spaces away, at Fish & Co, not even one customer was spotted.
And it was not only the eateries that were deserted.
Manicurists at The Nail Spa & Wellness chit-chatted and worked on each other's nails.
A hairstylist at UrbanHair by Ginrich was busy - fussing over his own hair.
There were no customers at either shop.
The shopping mall, a popular hangout with young adults about four years ago, has lost a lot of its vibe.
A former anchor tenant, music store HMV, has packed up and gone, and glitzy malls like Ion Orchard and 313@Somerset are now the new buzzwords with shoppers.
'When The Heeren opened, people had to squeeze through crowds, and I'd see about 200 people walk past in an hour,' said Mr Richard Tat, 51, owner of Body Decor Tattoo and Piercing.
'These days, hardly anyone walks by,' said the Heeren tenant of 10 years, who now depends on regulars for business.
Days can be slow. Last Wednesday, six hours after he started work at noon, the tattoo artist had done just one tattoo and one piercing and had sold a replacement ball for a navel ring.
Indeed, that day was not a good one either for many other tenants, going by what The Sunday Times observed between 9.45am and 10pm.
We saw people venturing into the six-storey mall, but many just window shopped on the first floor before walking out.
Most of those interviewed said they were looking only for a specific item and were not interested in checking out the shops.
Even fewer bought anything.
Certainly, at 2pm, there were no shoppers in the youth zone on the fourth floor, as loud techno music blared from some shops.
Around 6pm, things got a little better. We counted about 30 people on the fourth floor, which is occupied mostly by shops selling apparel.
But there were fewer than 15 patrons at the restaurants on the fifth floor.
The dearth of traffic was despite at least 19 shops in the mall offering discounts of up to 75 per cent, though Pasta de Waraku's student discount of 25 per cent seemed to be working.
It was the only restaurant on the fifth floor that was half-full at 1.30pm and 8.30pm. Other eateries were, at the most, about one-fifth full.
It was the same story with the basement eateries.
They were mostly empty, save for the newly opened Kiseki Japanese Buffet Restaurant, which attracted a queue.
When the music stopped
Tenants have been wringing their hands ever since HMV pulled out in January this year. The music store relocated across the road to 313@Somerset, less than a five-minute walk away.
'When HMV was here, we would be able to get more foreigners and increase our sales. Without it, we see a 30 to 40 per cent decrease in sales,' said Ms Cherly Wong, store manager at shoe and apparel outlet Converse on the third floor.
Fewer customers could have prompted some tenants to pull out. The Sunday Times estimated that 25 per cent of shops were available for lease.
According to Swee Cheng Management, the company that manages the mall, it has an incoming tenant, hairdressing salon Shunji Matsuo. It is in talks to fill up six units.
Efforts have been made to keep up with the changes in the Orchard Road area.
The 14-year-old Heeren was renovated two years ago, with changes made to the basement and fifth floor to make for more retail and recreation space.
Last year, an outdoor refreshment area was built and several eateries, such as McDonald's, set up shop.
Last month, the mall even hosted this year's Manhunt Singapore in a bid to whip up excitement.
Shoppers, however, remained lukewarm.
Ms Jocelyn Chan, 22, a Singapore Management University student, said she used to shop at The Heeren during her secondary school days, when it was still a trendy hangout.
Now, she prefers malls that carry international brands like Zara and Topshop. 'These days, I come only when the eating places at other malls are too crowded,' she said.
Tenants are now banking their hopes on ALT, the new anchor tenant which takes up the space vacated by HMV.
ALT, a lifestyle concept store targeting shoppers from their mid-20s to mid-30s, opened last Thursday.
Mr Ignatius Koh, 27, owner of Coalition Store, which sells clothes and accessories on the fourth floor, said: 'The crowd has been slow because we've been missing an anchor tenant for three levels of shop space.
'I'm expecting things to go back to normal once ALT opens,' he said last Wednesday.
The folks at Indonesian restaurant Desa Kartika share the same hope.
'We'll be happier once the anchor tenant opens. It will revitalise Heeren again,' said a spokesman.
melpang@sph.com.sg
tamanda@sph.com.sg
--------------------------------------------------------------------------------
Empty feeling
'When The Heeren opened, people had to squeeze through crowds, and I'd see about 200 people walk past in an hour. These days, hardly anyone walks by.'
MR RICHARD TAT, owner of Body Decor Tattoo and Piercing
Missing an anchor
'The crowd has been slow because we've been missing an anchor tenant for three levels of shop space. I'm expecting things to go back to normal once ALT opens.'
MR IGNATIUS KOH, owner of Coalition Store, which sells clothes and accessories
Empty corridors full of shuttered shops are a common sight at The Heeren, once a popular hangout for young people. The Sunday Times, which visited the mall last Wednesday, saw few shoppers. Many were just window shopping on the first floor. -- ST PHOTOS: DESMOND LIM
ST : Some missing out on property boom
Jul 10, 2010
Some missing out on property boom
Older estates struggle to reach price peak amid flood of new projects
By Esther Teo
SOME developments have missed the price gravy train in the private homes sector and are languishing at levels below their benchmark launch values set more than a decade ago.
Their plight is at odds with the prevailing market, where values are now 1.5 per cent above 1996's record prices.
Part of the problem is that they can look like poor cousins compared with the flashy new estates being built now, but many were also launched amid a property boom when speculators sent prices soaring to unsustainable levels.
One of the laggards is Far East Organization's 99-year leasehold Bishan 8, which stunned market watchers when it was sold at an average of $1,100 per sq ft (psf) in June 1997.
That was a record selling price then for a leasehold condo outside of the traditional prime areas.
A 980 sq ft unit cost $1.07 million, while one at 1,163 sq ft cost $1.36 million.
However, caveats lodged with the Urban Redevelopment Authority found that despite the development's selling points - its proximity to Junction 8 mall, Bishan MRT station and Raffles Institution, for instance - prices have struggled to reach their peak.
The 15 units sold since July last year averaged $802 psf. The most recent transaction was a 1,163 sq ft apartment that sold for $912 psf last month.
Owners at City Developments' freehold, 40-unit Chelsea Gardens are in a similar position.
It launched in May 1997 with average prices at $1,900 psf, but a recent sale of a 1,787 sq ft flat in March went for only $1,620 psf.
Prices were even lower in August last year, with the second most recent transaction of a 2,508 sq ft unit going for just $1,396 psf.
Seasons View, a 99-year leasehold project by Far East's mainboard-listed Orchard Parade Holdings on Pemimpin Drive, was launched at $888 psf in June 1997. Prices for the 18 caveats lodged since July last year showed an average sale price of just $715 psf.
Property experts said apart from some of these developments being about 10 years into their 99-year lease, which inevitably resulted in a depreciation in value, they were also launched at peak prices during a period where speculative activity was high.
'A few projects were sold at the peak of the cycle in the light of strong speculative activity, with a lot of sub-sales in the market,' said Mr Steven Tan, executive director of residential at the OrangeTee agency.
'Some of these projects were launched at future prices,' he added.
PropNex chief executive Mohamed Ismail said consumers were now spoilt for choice and lifestyle options with the slew of new property launches that have inundated the market in recent months.
'The price index includes new properties which buyers are willing to pay more for... It might take a longer time for a second-hand product to climb up to the level of the current price index,' he said.
Older projects are often sold at about 10 per cent to 20 per cent less than a new project nearby, Mr Ismail said. However, if they are in a good location, they are likely to fetch break-even prices eventually, even if they are 20 years old.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak added that properly maintaining an older project is vital to its selling price. However, buyers may still prefer new launches if they feel that the design of an older condo and its facilities have become dated.
Some experts also point out that certain popular areas in the past have lost some attention as new residential enclaves such as Dakota and West Coast compete for the attention of buyers.
ERA Asia-Pacific associate director Eugene Lim said the circle and downtown lines are making more areas accessible, giving buyers more options.
'Buyers are more open these days and might decide to invest in an area they see growth potential in, such as the Jurong Lake district, rather than buying an older condo,' he added.
Official estimates show prices rose a higher-than-expected 5.2 per cent in the second quarter after a 5.6 per cent jump in the first. That means private home prices have risen 11.1 per cent so far this year.
Prices are expected to continue to edge up this year, given the positive economic outlook, property experts forecast.
esthert@sph.com.sg
Some missing out on property boom
Older estates struggle to reach price peak amid flood of new projects
By Esther Teo
SOME developments have missed the price gravy train in the private homes sector and are languishing at levels below their benchmark launch values set more than a decade ago.
Their plight is at odds with the prevailing market, where values are now 1.5 per cent above 1996's record prices.
Part of the problem is that they can look like poor cousins compared with the flashy new estates being built now, but many were also launched amid a property boom when speculators sent prices soaring to unsustainable levels.
One of the laggards is Far East Organization's 99-year leasehold Bishan 8, which stunned market watchers when it was sold at an average of $1,100 per sq ft (psf) in June 1997.
That was a record selling price then for a leasehold condo outside of the traditional prime areas.
A 980 sq ft unit cost $1.07 million, while one at 1,163 sq ft cost $1.36 million.
However, caveats lodged with the Urban Redevelopment Authority found that despite the development's selling points - its proximity to Junction 8 mall, Bishan MRT station and Raffles Institution, for instance - prices have struggled to reach their peak.
The 15 units sold since July last year averaged $802 psf. The most recent transaction was a 1,163 sq ft apartment that sold for $912 psf last month.
Owners at City Developments' freehold, 40-unit Chelsea Gardens are in a similar position.
It launched in May 1997 with average prices at $1,900 psf, but a recent sale of a 1,787 sq ft flat in March went for only $1,620 psf.
Prices were even lower in August last year, with the second most recent transaction of a 2,508 sq ft unit going for just $1,396 psf.
Seasons View, a 99-year leasehold project by Far East's mainboard-listed Orchard Parade Holdings on Pemimpin Drive, was launched at $888 psf in June 1997. Prices for the 18 caveats lodged since July last year showed an average sale price of just $715 psf.
Property experts said apart from some of these developments being about 10 years into their 99-year lease, which inevitably resulted in a depreciation in value, they were also launched at peak prices during a period where speculative activity was high.
'A few projects were sold at the peak of the cycle in the light of strong speculative activity, with a lot of sub-sales in the market,' said Mr Steven Tan, executive director of residential at the OrangeTee agency.
'Some of these projects were launched at future prices,' he added.
PropNex chief executive Mohamed Ismail said consumers were now spoilt for choice and lifestyle options with the slew of new property launches that have inundated the market in recent months.
'The price index includes new properties which buyers are willing to pay more for... It might take a longer time for a second-hand product to climb up to the level of the current price index,' he said.
Older projects are often sold at about 10 per cent to 20 per cent less than a new project nearby, Mr Ismail said. However, if they are in a good location, they are likely to fetch break-even prices eventually, even if they are 20 years old.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak added that properly maintaining an older project is vital to its selling price. However, buyers may still prefer new launches if they feel that the design of an older condo and its facilities have become dated.
Some experts also point out that certain popular areas in the past have lost some attention as new residential enclaves such as Dakota and West Coast compete for the attention of buyers.
ERA Asia-Pacific associate director Eugene Lim said the circle and downtown lines are making more areas accessible, giving buyers more options.
'Buyers are more open these days and might decide to invest in an area they see growth potential in, such as the Jurong Lake district, rather than buying an older condo,' he added.
Official estimates show prices rose a higher-than-expected 5.2 per cent in the second quarter after a 5.6 per cent jump in the first. That means private home prices have risen 11.1 per cent so far this year.
Prices are expected to continue to edge up this year, given the positive economic outlook, property experts forecast.
esthert@sph.com.sg
ST : Katong Mall gets $60m facelift
Jul 10, 2010
Katong Mall gets $60m facelift
Makeover to give 20-year-old mall a cinema, mix of F&B outlets and upmarket brands
By Fiona Low
THE 20-year-old Katong Mall in East Coast Road will undergo a $60 million facelift.
When it reopens in the third quarter of next year, the mall will have about 150 shops including a cinema, retail outlets as well as a myriad of food and beverage outlets, pubs and bars.
The current five-storey building will have an additional floor built at the top to house a Golden Village cineplex.
There will also be an additional basement level to ease the building's parking squeeze. The extra level will boost the maximum capacity of its carpark to 310 spaces, from the current 179.
The mall will also have a Peranakan-themed concept to fit the neighbourhood, which has historically been a Peranakan enclave in Singapore. The management said it will also consider bringing in tenants that tie in with the theme, such as Peranakan restaurants.
The new look for Katong Mall is the developer's overall plan to jazz up the building to appeal to the affluent working professionals living in the area.
Previously, the tenants in the mall were mainly educational and child enrichment services such as tuition and dance classes.
'We hope to better the experience for our retail customers as we redevelop the site into a more vibrant hub with an exciting and desirable tenant mix,' said Mr Loh Chin Hua, managing director of Alpha Investment Partners, which holds a majority stake in Katong Mall.
The mall, which will be renamed, was bought over earlier this year from Tuan Sing Holdings for $247.55 million.
The new owners are a consortium of investors brought together by Mr Pua Seck Guan, chief executive officer of Perennial Real Estate.
The mall had previously faced controversy when 23 of its former tenants banded together to lodge a protest with the Strata Titles Board against the collective sale of the shopping complex in late 2007. The matter was eventually resolved early last year when the objection was withdrawn by the tenants.
All previous tenants have now moved out and the new management said there are no immediate plans to bring any of them back.
'We have to consider the positioning of the new mall as a lifestyle and F&B hub,' said Mr Pua. 'However, we will still consider the old tenants if they fit in with this concept,' he added.
In the past, the mall was largely patronised by young students on their way to various enrichment programmes and after-school activities.
Now, the management wants to attract professionals in the vicinity who have spending power.
Mr Pua said the new mall will aim for more upmarket brands to draw in those who live nearby, who mostly live in private houses and condominiums.
The mall has already signed up three anchor tenants - Golden Village (GV), Cold Storage and BreadTalk Group - which will occupy about 32 per cent of the available space between them.
GV's eight screening halls will have two of its more upmarket Gold Class halls - the first such halls in the eastern part of the island.
Cold Storage's supermarket will also be of a more upscale concept, known as Market Place, which is also the first in the east. Other Market Place outlets are found in the city, such as in shopping complexes Paragon and Tanglin Mall.
The revamped mall is also a first for several other reasons.
It is Mr Pua's first local venture in property since stepping down as chief executive of CapitaLand Retail in November 2008, after about eight years with the company.
It will also mark BreadTalk's first venture into retail property investment as it holds about an 8 per cent stake in the mall.
BreadTalk chairman George Quek said: 'After 10 years of opening our food and beverage outlets in malls, I've seen and learnt how they work. This area also suits us as we do not have many of our brands here.'
The BreadTalk Group operates the BreadTalk bakeries, Food Republic food courts, and the Din Tai Fung and RamenPlay restaurants.
To Katong residents, this new shopping mall is a welcome addition to the neighbourhood.
'I'm really looking forward to having a movie theatre in the area because it will be so much more convenient when I want to catch a late-night movie,' said Ms Jacqueline Tan, 23, who lives in East Coast Avenue.
'More parking space would be great along that stretch of road which is notorious for its limited spaces,' she added.
fionalow@sph.com.sg
--------------------------------------------------------------------------------
New name, new look
Previously
· Katong Mall used to house mainly educational and child enrichment services, such as tuition and dance centres.
After revamp
· The mall will be renamed and turned into a lifestyle and food and beverage hub with a Peranakan-themed concept.
· There will be 150 shops including a Golden Village cinema, Market Place supermarket, other retail and F&B outlets.
--------------------------------------------------------------------------------
'We hope to better the experience for our retail customers as we redevelop the site into a more vibrant hub with an exciting and desirable tenant mix.'
Mr Loh Chin Hua, managing director of Alpha Investment Partners, which holds a majority stake in Katong Mall
Katong Mall gets $60m facelift
Makeover to give 20-year-old mall a cinema, mix of F&B outlets and upmarket brands
By Fiona Low
THE 20-year-old Katong Mall in East Coast Road will undergo a $60 million facelift.
When it reopens in the third quarter of next year, the mall will have about 150 shops including a cinema, retail outlets as well as a myriad of food and beverage outlets, pubs and bars.
The current five-storey building will have an additional floor built at the top to house a Golden Village cineplex.
There will also be an additional basement level to ease the building's parking squeeze. The extra level will boost the maximum capacity of its carpark to 310 spaces, from the current 179.
The mall will also have a Peranakan-themed concept to fit the neighbourhood, which has historically been a Peranakan enclave in Singapore. The management said it will also consider bringing in tenants that tie in with the theme, such as Peranakan restaurants.
The new look for Katong Mall is the developer's overall plan to jazz up the building to appeal to the affluent working professionals living in the area.
Previously, the tenants in the mall were mainly educational and child enrichment services such as tuition and dance classes.
'We hope to better the experience for our retail customers as we redevelop the site into a more vibrant hub with an exciting and desirable tenant mix,' said Mr Loh Chin Hua, managing director of Alpha Investment Partners, which holds a majority stake in Katong Mall.
The mall, which will be renamed, was bought over earlier this year from Tuan Sing Holdings for $247.55 million.
The new owners are a consortium of investors brought together by Mr Pua Seck Guan, chief executive officer of Perennial Real Estate.
The mall had previously faced controversy when 23 of its former tenants banded together to lodge a protest with the Strata Titles Board against the collective sale of the shopping complex in late 2007. The matter was eventually resolved early last year when the objection was withdrawn by the tenants.
All previous tenants have now moved out and the new management said there are no immediate plans to bring any of them back.
'We have to consider the positioning of the new mall as a lifestyle and F&B hub,' said Mr Pua. 'However, we will still consider the old tenants if they fit in with this concept,' he added.
In the past, the mall was largely patronised by young students on their way to various enrichment programmes and after-school activities.
Now, the management wants to attract professionals in the vicinity who have spending power.
Mr Pua said the new mall will aim for more upmarket brands to draw in those who live nearby, who mostly live in private houses and condominiums.
The mall has already signed up three anchor tenants - Golden Village (GV), Cold Storage and BreadTalk Group - which will occupy about 32 per cent of the available space between them.
GV's eight screening halls will have two of its more upmarket Gold Class halls - the first such halls in the eastern part of the island.
Cold Storage's supermarket will also be of a more upscale concept, known as Market Place, which is also the first in the east. Other Market Place outlets are found in the city, such as in shopping complexes Paragon and Tanglin Mall.
The revamped mall is also a first for several other reasons.
It is Mr Pua's first local venture in property since stepping down as chief executive of CapitaLand Retail in November 2008, after about eight years with the company.
It will also mark BreadTalk's first venture into retail property investment as it holds about an 8 per cent stake in the mall.
BreadTalk chairman George Quek said: 'After 10 years of opening our food and beverage outlets in malls, I've seen and learnt how they work. This area also suits us as we do not have many of our brands here.'
The BreadTalk Group operates the BreadTalk bakeries, Food Republic food courts, and the Din Tai Fung and RamenPlay restaurants.
To Katong residents, this new shopping mall is a welcome addition to the neighbourhood.
'I'm really looking forward to having a movie theatre in the area because it will be so much more convenient when I want to catch a late-night movie,' said Ms Jacqueline Tan, 23, who lives in East Coast Avenue.
'More parking space would be great along that stretch of road which is notorious for its limited spaces,' she added.
fionalow@sph.com.sg
--------------------------------------------------------------------------------
New name, new look
Previously
· Katong Mall used to house mainly educational and child enrichment services, such as tuition and dance centres.
After revamp
· The mall will be renamed and turned into a lifestyle and food and beverage hub with a Peranakan-themed concept.
· There will be 150 shops including a Golden Village cinema, Market Place supermarket, other retail and F&B outlets.
--------------------------------------------------------------------------------
'We hope to better the experience for our retail customers as we redevelop the site into a more vibrant hub with an exciting and desirable tenant mix.'
Mr Loh Chin Hua, managing director of Alpha Investment Partners, which holds a majority stake in Katong Mall
ST : New Thomson condo units selling well
Jul 10, 2010
New Thomson condo units selling well
By Esther Teo
BUYERS have snapped up 96 of the 120 units launched at the 368 Thomson condominium since previews began on Thursday.
The District 11 development was priced at an average of $1,350 per sq ft (psf).
Sale prices ranged from $918,000 for a 689 sq ft one-plus-study flat to $4.4 million for the 3,391 sq ft five-bedroom penthouses.
The 36-storey tower, which will be built on the former Concorde Residences site in Thomson Road, will have 157 units. They comprise 31 one-plus-study flats, 62 two-bedroom units, 31 three-bedders, 31 four-bedroom units and two penthouses.
City Developments (CDL) said it will release more units to cater to demand.
The private preview - for former owners of Concorde Residences, Balestier Court and Bright Building, as well as CDL directors and staff - started on Thursday. The public were admitted yesterday.
Most of the buyers were Singaporeans, with permanent residents and foreigners - mainly from Malaysia, Indonesia, China and Hong Kong - making up 25 per cent, CDL said.
Its general manager, Mr Chia Ngiang Hong, said the strong demand for the project is testament to the popularity of the prime District 11 vicinity.
Buyers will also benefit from the growth cluster in the area, he said.
The developer launched Cube 8, a 36-storey condo comprising 177 units, in January in Thomson Road, on the site of the former The Albany and Thomson Mansion.
The Cube 8 project is next to CDL's The Arte in Thomson, which it began selling in March last year at an average price of $880 psf.
The 368 Thomson estate is expected to be completed in 2015.
Terrene at Bukit Timah has also sold well. More than 50 out of the 85 units launched at the preview sale for developers UOL and La Salle's business associates and staff were taken.
The average selling price for the 999-year leasehold condominium was $1,250 psf.
The project offers over 140 one- to four-bedroom apartments, and 30 three- to five-bedroom penthouses, all with rooftop jacuzzis.
Sizes vary from 506 sq ft for a one-bedder to 3,025 sq ft for a five-bedroom penthouse. The development is expected to be ready by April 2014.
New Thomson condo units selling well
By Esther Teo
BUYERS have snapped up 96 of the 120 units launched at the 368 Thomson condominium since previews began on Thursday.
The District 11 development was priced at an average of $1,350 per sq ft (psf).
Sale prices ranged from $918,000 for a 689 sq ft one-plus-study flat to $4.4 million for the 3,391 sq ft five-bedroom penthouses.
The 36-storey tower, which will be built on the former Concorde Residences site in Thomson Road, will have 157 units. They comprise 31 one-plus-study flats, 62 two-bedroom units, 31 three-bedders, 31 four-bedroom units and two penthouses.
City Developments (CDL) said it will release more units to cater to demand.
The private preview - for former owners of Concorde Residences, Balestier Court and Bright Building, as well as CDL directors and staff - started on Thursday. The public were admitted yesterday.
Most of the buyers were Singaporeans, with permanent residents and foreigners - mainly from Malaysia, Indonesia, China and Hong Kong - making up 25 per cent, CDL said.
Its general manager, Mr Chia Ngiang Hong, said the strong demand for the project is testament to the popularity of the prime District 11 vicinity.
Buyers will also benefit from the growth cluster in the area, he said.
The developer launched Cube 8, a 36-storey condo comprising 177 units, in January in Thomson Road, on the site of the former The Albany and Thomson Mansion.
The Cube 8 project is next to CDL's The Arte in Thomson, which it began selling in March last year at an average price of $880 psf.
The 368 Thomson estate is expected to be completed in 2015.
Terrene at Bukit Timah has also sold well. More than 50 out of the 85 units launched at the preview sale for developers UOL and La Salle's business associates and staff were taken.
The average selling price for the 999-year leasehold condominium was $1,250 psf.
The project offers over 140 one- to four-bedroom apartments, and 30 three- to five-bedroom penthouses, all with rooftop jacuzzis.
Sizes vary from 506 sq ft for a one-bedder to 3,025 sq ft for a five-bedroom penthouse. The development is expected to be ready by April 2014.
ST : NTU to build more hostels to ease crunch
Jul 10, 2010
NTU to build more hostels to ease crunch
By 2015, 8 new hostels will offer 14,200 places; second hall for graduate students also planned
IN FIVE years, Nanyang Technological University (NTU) hopes to silence complaints among its students who want rooms on campus but fail to get them.
Eight more hostels will be built to add to its current 16. This will create 14,200 hostel places, up from the current 9,200, it said on Thursday.
The university estimates that two-thirds of its undergraduate population in 2015 will want to stay on campus, either because they are foreigners or are Singaporeans who live far away from the campus in Jurong.
The university's current undergraduate enrolment is 23,000.
NTU's senior associate provost, Professor Er Meng Hwa, told The Straits Times that the estimate of 14,200 hostel places for 2015 was based on past hall application trends and projections of the likely future demand for rooms.
The university added that hostel fees will be gradually increased to cover operational costs.
Prof Er did not give the timeframe or the quantum of the hike, but said the university would be mindful of keeping fees affordable.
An NTU student now pays between $165 and $210 a month for a twin-sharing room, and between $230 and $290 for a single room. Fees were last raised in 2008.
NTU also announced it will build a second hostel for graduate students by early 2013. Together, the two halls will provide 1,170 places, up from the 480 places now available.
News of the additional places was welcomed by students, who are allocated rooms based on criteria such as the time taken for them to get from home to campus, their level of involvement in co-curricular activities and their willingness to room with a foreign student.
Prof Er said that of the 11,000 students who apply for hostel rooms every year, 83 per cent are successful.
Economics student Ng Yee Theng, 22, is among the remaining 17 per cent who did not get a room this year, despite being on the team producing the campus newspaper, being a member of a business club, and living in the east.
She will have graduated by the time more rooms become available in five years. Looking ahead to next month, when she will begin her final year, she said: 'It would help if I could save time travelling, so I'm quite disappointed.'
AMELIA TAN
NTU to build more hostels to ease crunch
By 2015, 8 new hostels will offer 14,200 places; second hall for graduate students also planned
IN FIVE years, Nanyang Technological University (NTU) hopes to silence complaints among its students who want rooms on campus but fail to get them.
Eight more hostels will be built to add to its current 16. This will create 14,200 hostel places, up from the current 9,200, it said on Thursday.
The university estimates that two-thirds of its undergraduate population in 2015 will want to stay on campus, either because they are foreigners or are Singaporeans who live far away from the campus in Jurong.
The university's current undergraduate enrolment is 23,000.
NTU's senior associate provost, Professor Er Meng Hwa, told The Straits Times that the estimate of 14,200 hostel places for 2015 was based on past hall application trends and projections of the likely future demand for rooms.
The university added that hostel fees will be gradually increased to cover operational costs.
Prof Er did not give the timeframe or the quantum of the hike, but said the university would be mindful of keeping fees affordable.
An NTU student now pays between $165 and $210 a month for a twin-sharing room, and between $230 and $290 for a single room. Fees were last raised in 2008.
NTU also announced it will build a second hostel for graduate students by early 2013. Together, the two halls will provide 1,170 places, up from the 480 places now available.
News of the additional places was welcomed by students, who are allocated rooms based on criteria such as the time taken for them to get from home to campus, their level of involvement in co-curricular activities and their willingness to room with a foreign student.
Prof Er said that of the 11,000 students who apply for hostel rooms every year, 83 per cent are successful.
Economics student Ng Yee Theng, 22, is among the remaining 17 per cent who did not get a room this year, despite being on the team producing the campus newspaper, being a member of a business club, and living in the east.
She will have graduated by the time more rooms become available in five years. Looking ahead to next month, when she will begin her final year, she said: 'It would help if I could save time travelling, so I'm quite disappointed.'
AMELIA TAN
ST : 65m empty homes = one big bubble
Jul 10, 2010
65m empty homes = one big bubble
Financial and social stability at risk, economist warns
BEIJING: China's property market remains dangerously overheated and failing to tame the speculative bubble could threaten financial and social stability, a prominent economist said in an official newspaper yesterday.
Dr Yi Xianrong, an economist at the Chinese Academy of Social Sciences, a government think-tank in Beijing, noted that estimates from electricity meter readings show 64.5 million empty apartments and houses in urban China, many of them bought by people wagering on a constantly rising property market.
In the overseas edition of the People's Daily, Dr Yi said the 'shocking' level of empty housing shows the dangers brought about by the country's property boom, which the central government has been trying to cool.
'If this outsized property bubble does not burst, it will hurt residents' well-being, and also affect national financial security and coordinated national economic development,' wrote Dr Yi.
The People's Daily is the main newspaper of China's ruling Communist Party, and the overseas edition is a small- circulation offshoot that tends to be more forthright than the main, domestic edition. While the paper is not an unerring mirror of official policy, Dr Yi's commentary suggests that the real estate market remains a worry for policymakers.
On Tuesday, Dr Kenneth Rogoff, a Harvard University economics professor and former chief economist at the International Monetary Fund, said China's property market was beginning a 'collapse' that would hit the nation's banking system.
Beijing has announced a slew of measures over the past months to cool the property market, including raising downpayments and mortgage rates, and the move has already caused deal volumes to drop and property inflation to slow in many cities.
Nationwide, property prices rose 0.2 per cent in May from a month earlier, and were 12.4 per cent higher than a year earlier. The increases were smaller than in April.
Property prices will fall within a few months as government steps to cool the real estate market bite deeper, Mr Xu Shaoshi, the Minister of Land and Resources, said on Sunday.
But Dr Yi suggested that more robust steps are needed to beat back property price rises fuelled by speculation.
'The problem now is that investment in the domestic property market has completely overturned China's traditional concepts of wealth management and investment and its price formation system,' he wrote.
REUTERS
65m empty homes = one big bubble
Financial and social stability at risk, economist warns
BEIJING: China's property market remains dangerously overheated and failing to tame the speculative bubble could threaten financial and social stability, a prominent economist said in an official newspaper yesterday.
Dr Yi Xianrong, an economist at the Chinese Academy of Social Sciences, a government think-tank in Beijing, noted that estimates from electricity meter readings show 64.5 million empty apartments and houses in urban China, many of them bought by people wagering on a constantly rising property market.
In the overseas edition of the People's Daily, Dr Yi said the 'shocking' level of empty housing shows the dangers brought about by the country's property boom, which the central government has been trying to cool.
'If this outsized property bubble does not burst, it will hurt residents' well-being, and also affect national financial security and coordinated national economic development,' wrote Dr Yi.
The People's Daily is the main newspaper of China's ruling Communist Party, and the overseas edition is a small- circulation offshoot that tends to be more forthright than the main, domestic edition. While the paper is not an unerring mirror of official policy, Dr Yi's commentary suggests that the real estate market remains a worry for policymakers.
On Tuesday, Dr Kenneth Rogoff, a Harvard University economics professor and former chief economist at the International Monetary Fund, said China's property market was beginning a 'collapse' that would hit the nation's banking system.
Beijing has announced a slew of measures over the past months to cool the property market, including raising downpayments and mortgage rates, and the move has already caused deal volumes to drop and property inflation to slow in many cities.
Nationwide, property prices rose 0.2 per cent in May from a month earlier, and were 12.4 per cent higher than a year earlier. The increases were smaller than in April.
Property prices will fall within a few months as government steps to cool the real estate market bite deeper, Mr Xu Shaoshi, the Minister of Land and Resources, said on Sunday.
But Dr Yi suggested that more robust steps are needed to beat back property price rises fuelled by speculation.
'The problem now is that investment in the domestic property market has completely overturned China's traditional concepts of wealth management and investment and its price formation system,' he wrote.
REUTERS
BT : Freehold Geylang site sold en bloc
Business Times - 10 Jul 2010
Freehold Geylang site sold en bloc
By EMILYN YAP
PEOPLE'S Mansion, a freehold residential development at Geylang Lorong 31, has been sold en bloc for $42.68 million.
Private firm Tomlinson Investment - which also developed the Tan Swie Hian Museum nearby - won the tender for the 37,497 sq ft plot. The site has a plot ratio of 2.8 and a maximum gross floor area of 104,991 sq ft.
The price does not include a development charge. If it does, it will work out to $421 psf per plot ratio. The collective sale is subject to approval from the Strata Titles Board. People's Mansion has 32 apartments ranging in size from 1,313-1,496 sq ft. Urban Front Real Estate Pte Ltd, which handled the collective sale, said it can be redeveloped into a project with 115 units of an average size of 900 sq ft.
Based on a caveat lodged, a unit at People's Mansion was sold for $521 psf in February. Next door, apartments at Torieview Mansions changed hands for $537-575 psf in May. Tomlinson Investment beat three other bidders to win People's Mansion. Its director Tan Tien Chi told BT that the company is discussing plans for the new project with an architect.
According to Mr Tan, Tomlinson developed a few projects in Singapore some years back. One of these is Tan Swie Hian Museum, which showcases paintings, sculptures and other works of Cultural Medallion recipient Tan Swie Hian.
Collective sales have been gradually making a return to the market. Last week, BT reported BS Capital's purchase of the Colourscan building at Kim Keat Road for just over $36 million.
Urban Front Real Estate told BT that it has been appointed to handle another potential collective sale, involving a residential site measuring around 20,000 sq ft in District 10.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Freehold Geylang site sold en bloc
By EMILYN YAP
PEOPLE'S Mansion, a freehold residential development at Geylang Lorong 31, has been sold en bloc for $42.68 million.
Private firm Tomlinson Investment - which also developed the Tan Swie Hian Museum nearby - won the tender for the 37,497 sq ft plot. The site has a plot ratio of 2.8 and a maximum gross floor area of 104,991 sq ft.
The price does not include a development charge. If it does, it will work out to $421 psf per plot ratio. The collective sale is subject to approval from the Strata Titles Board. People's Mansion has 32 apartments ranging in size from 1,313-1,496 sq ft. Urban Front Real Estate Pte Ltd, which handled the collective sale, said it can be redeveloped into a project with 115 units of an average size of 900 sq ft.
Based on a caveat lodged, a unit at People's Mansion was sold for $521 psf in February. Next door, apartments at Torieview Mansions changed hands for $537-575 psf in May. Tomlinson Investment beat three other bidders to win People's Mansion. Its director Tan Tien Chi told BT that the company is discussing plans for the new project with an architect.
According to Mr Tan, Tomlinson developed a few projects in Singapore some years back. One of these is Tan Swie Hian Museum, which showcases paintings, sculptures and other works of Cultural Medallion recipient Tan Swie Hian.
Collective sales have been gradually making a return to the market. Last week, BT reported BS Capital's purchase of the Colourscan building at Kim Keat Road for just over $36 million.
Urban Front Real Estate told BT that it has been appointed to handle another potential collective sale, involving a residential site measuring around 20,000 sq ft in District 10.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Good response to new condos 368 Thomson, The Terrene
Business Times - 10 Jul 2010
Good response to new condos 368 Thomson, The Terrene
By KALPANA RASHIWALA
CITY Developments Ltd (CDL) and UOL Group seem to have struck a chord with home buyers with their latest condo previews.
CDL has sold 96 of the 120 units released in the first phase of its 368 Thomson condo, as at 5pm yesterday. The average price is $1,350 per square foot for the 36-storey freehold condo in District 11. The project comprises 157 units. CDL said it is releasing more units progressively to cater to demand.
Over in the Toh Tuck/Jalan Jurong Kechil area, UOL released 85 units at The Terrene on the former Rainbow Gardens site and as at 10pm yesterday, had sold about 50 units. The average selling price for the five-storey, 999-year leasehold condo is about $1,250 psf. The project comprises 172 units. UOL is developing the condo jointly with LaSalle Investment Management.
Developers of both projects began sales to their respective staff/directors and former owners of the sites on Thursday, followed by previews to other buyers yesterday.
CDL said prices of 368 Thomson range, in absolute dollar quantum, from $918,000 for the 689 sq ft one-plus-study units to $4.4 million for the 3,391 sq ft, five-bedroom penthouses.
The 96 units sold include all 62 two-bedders in the development and about 12-15 one-bedders as well as one of the condo's two penthouses.
DMG & Partners analyst Brandon Lee described CDL's pricing as 'reasonable and in line with current prices in the area', given that newish projects in the area are fetching between $1,250 and $1,450 psf.
Agreeing, a seasoned property consultant noted that prices of new condos in the Newton area, which is closer to Orchard, are hovering around the $1,700-2,000 psf range.
A back-of-the-envelope calculation shows CDL stands to book pre-tax profit of about $70 million from 368 Thomson. This is the third condo the group is developing in the location. Its first, The Arte at Thomson, was previewed in March last year at an average price of $880 psf, followed by Cube 8 in January this year at $1,250 psf on average.
CDL said that about 75 per cent of buyers at 368 Thomson were Singaporeans, with the rest comprising permanent residents and other foreigners - mainly from Malaysia, Indonesia, China and Hong Kong.
'With its prime District 11 location, freehold status and attractive pricing, 368 Thomson represents an excellent investment opportunity and also good rental potential,' said CDL's group general manager Chia Ngiang Hong.
UOL and La Salle Investment Management on the other hand are targeting primarily owner-occupiers for The Terrene.
'The majority of units sold are two-bedroom apartments, followed by three bedders. Seven penthouses have also been sold,' said Knight Frank managing director (residential services) Peter Ow. Buyers mostly have addresses in the surrounding area - districts 21 (such as Upper Bukit Timah) and 23 (which includes Bukit Batok and Toh Tuck) and comprise a mix of HDB flat dwellers and private home dwellers.
'Most of the buyers are locals,' he added. The 85 units released are priced between $920 psf and $1,480 psf. Knight Frank is marketing Terrene jointly with Jones Lang LaSalle.
The project's 172 units range from one bedders (starting from 506 sq ft) to five-bedroom penthouses (up to 3,025 sq ft).
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
368 THOMSON
CDL has sold 96 units (of the 120 released in the first phase) of the 36- storey freehold condo in District 11 at an average price of $1,350 psf
Good response to new condos 368 Thomson, The Terrene
By KALPANA RASHIWALA
CITY Developments Ltd (CDL) and UOL Group seem to have struck a chord with home buyers with their latest condo previews.
CDL has sold 96 of the 120 units released in the first phase of its 368 Thomson condo, as at 5pm yesterday. The average price is $1,350 per square foot for the 36-storey freehold condo in District 11. The project comprises 157 units. CDL said it is releasing more units progressively to cater to demand.
Over in the Toh Tuck/Jalan Jurong Kechil area, UOL released 85 units at The Terrene on the former Rainbow Gardens site and as at 10pm yesterday, had sold about 50 units. The average selling price for the five-storey, 999-year leasehold condo is about $1,250 psf. The project comprises 172 units. UOL is developing the condo jointly with LaSalle Investment Management.
Developers of both projects began sales to their respective staff/directors and former owners of the sites on Thursday, followed by previews to other buyers yesterday.
CDL said prices of 368 Thomson range, in absolute dollar quantum, from $918,000 for the 689 sq ft one-plus-study units to $4.4 million for the 3,391 sq ft, five-bedroom penthouses.
The 96 units sold include all 62 two-bedders in the development and about 12-15 one-bedders as well as one of the condo's two penthouses.
DMG & Partners analyst Brandon Lee described CDL's pricing as 'reasonable and in line with current prices in the area', given that newish projects in the area are fetching between $1,250 and $1,450 psf.
Agreeing, a seasoned property consultant noted that prices of new condos in the Newton area, which is closer to Orchard, are hovering around the $1,700-2,000 psf range.
A back-of-the-envelope calculation shows CDL stands to book pre-tax profit of about $70 million from 368 Thomson. This is the third condo the group is developing in the location. Its first, The Arte at Thomson, was previewed in March last year at an average price of $880 psf, followed by Cube 8 in January this year at $1,250 psf on average.
CDL said that about 75 per cent of buyers at 368 Thomson were Singaporeans, with the rest comprising permanent residents and other foreigners - mainly from Malaysia, Indonesia, China and Hong Kong.
'With its prime District 11 location, freehold status and attractive pricing, 368 Thomson represents an excellent investment opportunity and also good rental potential,' said CDL's group general manager Chia Ngiang Hong.
UOL and La Salle Investment Management on the other hand are targeting primarily owner-occupiers for The Terrene.
'The majority of units sold are two-bedroom apartments, followed by three bedders. Seven penthouses have also been sold,' said Knight Frank managing director (residential services) Peter Ow. Buyers mostly have addresses in the surrounding area - districts 21 (such as Upper Bukit Timah) and 23 (which includes Bukit Batok and Toh Tuck) and comprise a mix of HDB flat dwellers and private home dwellers.
'Most of the buyers are locals,' he added. The 85 units released are priced between $920 psf and $1,480 psf. Knight Frank is marketing Terrene jointly with Jones Lang LaSalle.
The project's 172 units range from one bedders (starting from 506 sq ft) to five-bedroom penthouses (up to 3,025 sq ft).
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
368 THOMSON
CDL has sold 96 units (of the 120 released in the first phase) of the 36- storey freehold condo in District 11 at an average price of $1,350 psf
BT : New Katong Mall attracts 3 key tenants
Business Times - 10 Jul 2010
New Katong Mall attracts 3 key tenants
Cold Storage's Market Place, Golden Village and BreadTalk will lease about 32% of NLA
By NICHOLAS YEO
A NEW Peranakan-themed mall will soon take the place of the former Katong Mall and mark the debut mall for Pua Seck Guan's Perennial Real Estate in Singapore.
Mr Pua is CEO of Perennial Real Estate and formerly CEO of Capitaland Retail.
The mall, located at the junction of East Coast Road and Joo Chiat Road, will have a net lettable area (NLA) of 207,000 sq ft, 20 per cent larger than before.
It has already secured three key tenants. Cold Storage's Market Place will take up about 13,000 sq ft of space. Meanwhile, Golden Village multiplex will take up 30,000 sq ft, boasting eight halls, two of which will be Gold Class Halls. This will be a first in the eastern part of Singapore. The third key tenant is George Quek's BreadTalk group, which will open a 15,000 sq ft Food Republic Food Atrium and 7,500 sq ft of restaurants such as BreadTalk, Din Tai Fung and Toastbox.
The space leased by these three tenants will amount to about 32 per cent of the NLA.
The mall will feature six levels of retail - basement 1 and from level 1 to 5, with an atrium on level 2. Basements 2 and 3 will have 310 carpark lots.
The mall is owned by Perennial Katong Retail trust, a private trust constituted for the purpose of buying Katong Mall. Investors in the trust include Alpha Investment Partners Limited's Asia Macro Trends Fund, which holds a majority stake of 77 per cent. It is a unit of Keppel Corp. Other investors include BreadTalk Group Limited and Mr Pua, among others. The mall will be managed by Perennial (Singapore) Retail Management Pte Ltd.
Katong Mall is currently undergoing redevelopment and is expected to be ready by the third quarter of 2011. The contract is worth $60 million and has been awarded to SEF Construction Pte Ltd.
'The expected rent is about $12 psf per month on average,' said Mr Pua.
The mall, designed by DP Architects, will reflect the Peranakan culture that surrounds the mall and seamlessly integrate itself with the many F&B outlets around the area. For example, the first two floors will be dedicated to F&B and bars that will operate till extended closing hours that will complement the surroundings and the cinema upstairs.
Mr Pua believes that the new mall will do better than the former strata-titled Katong Mall because it will come under single ownership, where Perennial Retail Management will be able to control the tenant mix and positioning.
About 30 per cent of the mall space is expected to be designated F&B with another 30 per cent dedicated to fashion and accessories.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
New Katong Mall attracts 3 key tenants
Cold Storage's Market Place, Golden Village and BreadTalk will lease about 32% of NLA
By NICHOLAS YEO
A NEW Peranakan-themed mall will soon take the place of the former Katong Mall and mark the debut mall for Pua Seck Guan's Perennial Real Estate in Singapore.
Mr Pua is CEO of Perennial Real Estate and formerly CEO of Capitaland Retail.
The mall, located at the junction of East Coast Road and Joo Chiat Road, will have a net lettable area (NLA) of 207,000 sq ft, 20 per cent larger than before.
It has already secured three key tenants. Cold Storage's Market Place will take up about 13,000 sq ft of space. Meanwhile, Golden Village multiplex will take up 30,000 sq ft, boasting eight halls, two of which will be Gold Class Halls. This will be a first in the eastern part of Singapore. The third key tenant is George Quek's BreadTalk group, which will open a 15,000 sq ft Food Republic Food Atrium and 7,500 sq ft of restaurants such as BreadTalk, Din Tai Fung and Toastbox.
The space leased by these three tenants will amount to about 32 per cent of the NLA.
The mall will feature six levels of retail - basement 1 and from level 1 to 5, with an atrium on level 2. Basements 2 and 3 will have 310 carpark lots.
The mall is owned by Perennial Katong Retail trust, a private trust constituted for the purpose of buying Katong Mall. Investors in the trust include Alpha Investment Partners Limited's Asia Macro Trends Fund, which holds a majority stake of 77 per cent. It is a unit of Keppel Corp. Other investors include BreadTalk Group Limited and Mr Pua, among others. The mall will be managed by Perennial (Singapore) Retail Management Pte Ltd.
Katong Mall is currently undergoing redevelopment and is expected to be ready by the third quarter of 2011. The contract is worth $60 million and has been awarded to SEF Construction Pte Ltd.
'The expected rent is about $12 psf per month on average,' said Mr Pua.
The mall, designed by DP Architects, will reflect the Peranakan culture that surrounds the mall and seamlessly integrate itself with the many F&B outlets around the area. For example, the first two floors will be dedicated to F&B and bars that will operate till extended closing hours that will complement the surroundings and the cinema upstairs.
Mr Pua believes that the new mall will do better than the former strata-titled Katong Mall because it will come under single ownership, where Perennial Retail Management will be able to control the tenant mix and positioning.
About 30 per cent of the mall space is expected to be designated F&B with another 30 per cent dedicated to fashion and accessories.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
TODAY ONLINE : Residential units post higher rentals
Residential units post higher rentals
Rates have followed the dizzying rise in private property prices but 'will stabilise or even correct'
05:55 AM Jul 09, 2010
by Jo-Ann Huang Limin
SINGAPORE - Rental rates for residential units have tracked the dizzying rise in private property prices, with rents for condominiums posting a significant increase of 5.8 per cent over the first five months of this year.
Based on data from the Urban Redevelopment Authority (URA), median rentals of non-landed residential properties in January amount to $30.54 per square metre (psm) but were propelled higher to $32.41 psm in May.
Rentals for units in the central region are even higher at $36.89 psm in May.
The maximum rental per month for non-landed residential properties in the central region amounts to $114.58 psm, while minimum rental amounts to $11.64 psm.
Condominiums in the east and west recorded median rents of $27.68 psm and $27 psm, respectively, for the same period.
Meanwhile, rentals in the north-east region hit $26.39 psm, while north region rentals stand at $24.47 psm.
As for the rest of the country, maximum rentals range from $33.65 psm to $60.87 psm, while minimum rentals range from $10.18 psm to $14.36 psm.
Market watchers said the significant increase in residential rents is due to an improving economy and a robust property market.
Donald Han, managing director of Cushman and Wakefield, attributed the rise to landlords looking to pocket higher returns from the bullish growth by increasing rents.
"Businesses have started to relocate to Singapore and are bringing in a lot of foreign workers, which have increased demand for residential housing, as compared to the first half of last year, when companies were shedding staff," said Mr Han.
However, Mr Colin Tan, head of research and consultancy at Chesterton Suntec International, said the rental increase is due to a sharp drop in housing supply.
In the fourth quarter of last year, the number of demolitions jumped to 1,441 - more than the 1,400 units available.
Mr Tan attributes this to an increased number of collective sales, which resulted in more units being demolished during that period.
Unable to make up for the drastic loss, the first quarter of this year, only saw 1,407 units available for occupancy.
"The higher number of demolitions is probably a one-off effect. The numbers of demolished units returned to about 400 units-odd in the first quarter of this year," added Mr Tan.
With a lot fewer units available and the ongoing high demand for residential properties, rentals hence saw a considerable increase.
Barring drastic changes, he expects rentals to stabilise in the coming months.
"Once the effect of the sharp reduction in housing stock wears off, the rise in rentals will stabilise and may even correct in the coming quarters unless demand is ramped up suddenly but that does not seem to be the case," he said.
Mr Han expects rentals to increase to about 5 per cent to 8 per cent by the end of this year, in line with the bright outlook for Singapore's growth.
With growing yields, it is also an ideal time for home owners looking to lease out their properties to hedge against inflation and volatile markets.
"Yields have risen slightly to 3 per cent to 3.8 per cent and are likely to go up over 4 per cent at end of the year. With the low interest rate of 1 per cent to 1.2 per cent, this is a good time for residential yields," said Mr Han.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
Rates have followed the dizzying rise in private property prices but 'will stabilise or even correct'
05:55 AM Jul 09, 2010
by Jo-Ann Huang Limin
SINGAPORE - Rental rates for residential units have tracked the dizzying rise in private property prices, with rents for condominiums posting a significant increase of 5.8 per cent over the first five months of this year.
Based on data from the Urban Redevelopment Authority (URA), median rentals of non-landed residential properties in January amount to $30.54 per square metre (psm) but were propelled higher to $32.41 psm in May.
Rentals for units in the central region are even higher at $36.89 psm in May.
The maximum rental per month for non-landed residential properties in the central region amounts to $114.58 psm, while minimum rental amounts to $11.64 psm.
Condominiums in the east and west recorded median rents of $27.68 psm and $27 psm, respectively, for the same period.
Meanwhile, rentals in the north-east region hit $26.39 psm, while north region rentals stand at $24.47 psm.
As for the rest of the country, maximum rentals range from $33.65 psm to $60.87 psm, while minimum rentals range from $10.18 psm to $14.36 psm.
Market watchers said the significant increase in residential rents is due to an improving economy and a robust property market.
Donald Han, managing director of Cushman and Wakefield, attributed the rise to landlords looking to pocket higher returns from the bullish growth by increasing rents.
"Businesses have started to relocate to Singapore and are bringing in a lot of foreign workers, which have increased demand for residential housing, as compared to the first half of last year, when companies were shedding staff," said Mr Han.
However, Mr Colin Tan, head of research and consultancy at Chesterton Suntec International, said the rental increase is due to a sharp drop in housing supply.
In the fourth quarter of last year, the number of demolitions jumped to 1,441 - more than the 1,400 units available.
Mr Tan attributes this to an increased number of collective sales, which resulted in more units being demolished during that period.
Unable to make up for the drastic loss, the first quarter of this year, only saw 1,407 units available for occupancy.
"The higher number of demolitions is probably a one-off effect. The numbers of demolished units returned to about 400 units-odd in the first quarter of this year," added Mr Tan.
With a lot fewer units available and the ongoing high demand for residential properties, rentals hence saw a considerable increase.
Barring drastic changes, he expects rentals to stabilise in the coming months.
"Once the effect of the sharp reduction in housing stock wears off, the rise in rentals will stabilise and may even correct in the coming quarters unless demand is ramped up suddenly but that does not seem to be the case," he said.
Mr Han expects rentals to increase to about 5 per cent to 8 per cent by the end of this year, in line with the bright outlook for Singapore's growth.
With growing yields, it is also an ideal time for home owners looking to lease out their properties to hedge against inflation and volatile markets.
"Yields have risen slightly to 3 per cent to 3.8 per cent and are likely to go up over 4 per cent at end of the year. With the low interest rate of 1 per cent to 1.2 per cent, this is a good time for residential yields," said Mr Han.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
BT : NTU to be residential campus by 2015
Business Times - 09 Jul 2010
NTU to be residential campus by 2015
NANYANG Technological University (NTU) has announced plans to become a residential campus in the next five years.
Under the university's Campus Master Plan, 5,000 new hostel places will be created by 2015 in order to provide a place to all undergraduates who want to live on campus. Already, NTU has 9,200 hostel places and all first-year undergraduates are guaranteed a place in the hostels. The current 9,200 places are spread over the existing 16 halls of residence.
NTU's senior associate provost, Professor Er Meng Hwa, said: 'We now have about 40 per cent of the undergraduate population living in the 16 halls of residence and another 20 per cent of the graduate students living in the graduate hall. The increase in hostel places will allow over two-thirds of the undergraduate population to stay on campus.'
NTU is the largest of Singapore's universities and takes pride in being a campus in a garden, with 200 hectares of lush greenery. The campus houses four colleges. three autonomous institutes and a host of research institutes and centres.
Monthly rental per student at the hostels ranges from $165-210 for twin- sharing rooms and $230- 290 for single rooms.The rates are the lowest of Singapore hostels but will increase as NTU plans to gradually move towards recovering operational costs of running the halls.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
NTU to be residential campus by 2015
NANYANG Technological University (NTU) has announced plans to become a residential campus in the next five years.
Under the university's Campus Master Plan, 5,000 new hostel places will be created by 2015 in order to provide a place to all undergraduates who want to live on campus. Already, NTU has 9,200 hostel places and all first-year undergraduates are guaranteed a place in the hostels. The current 9,200 places are spread over the existing 16 halls of residence.
NTU's senior associate provost, Professor Er Meng Hwa, said: 'We now have about 40 per cent of the undergraduate population living in the 16 halls of residence and another 20 per cent of the graduate students living in the graduate hall. The increase in hostel places will allow over two-thirds of the undergraduate population to stay on campus.'
NTU is the largest of Singapore's universities and takes pride in being a campus in a garden, with 200 hectares of lush greenery. The campus houses four colleges. three autonomous institutes and a host of research institutes and centres.
Monthly rental per student at the hostels ranges from $165-210 for twin- sharing rooms and $230- 290 for single rooms.The rates are the lowest of Singapore hostels but will increase as NTU plans to gradually move towards recovering operational costs of running the halls.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : More MRT retail areas coming
Business Times - 09 Jul 2010
More MRT retail areas coming
SMRT shares plans for Orchard, Circle Line at launch of Esplanade Xchange
By EMILYN YAP
SMRT is carving out a new shopping area at Orchard MRT station - and plans more such spaces at upcoming stations on the Circle Line.
The transport group shared the plans at the launch yesterday of Esplanade Xchange - a 2,000 sq m retail enclave at the Esplanade MRT station.
Teo Chew Hoon, vice-president of SMRT's commercial and taxi divisions, said that Orchard Xchange could be ready at the end of the year and will have a lettable area of around 1,500 sq m. The tender process for space has started and the group expects good take-up.
There are also plans for 'a few' Xchanges at MRT stations in Stages 4 and 5 of the Circle Line, Ms Teo said, without elaborating on where they might be. These stages of the line will run through such places as Botanic Gardens and Holland Village.
SMRT now has seven Xchanges. Esplanade Xchange is the third largest, after Raffles Xchange (about 2,400 sq m) and Tanjong Pagar Xchange (about 2,000 sq m). The group has about 29,000 sq m of retail space across the SMRT network.
Esplanade Xchange is fully let and there will be 26 shops. Tenants include the Infocomm Development Authority of Singapore's iExperience centre, Coffee & Toast, Dunkin Donuts and IT gadget retailer Juzz1. More than 90 per cent of the outlets have opened and all will be operating by the middle of this month.
Rents at Esplanade Xchange are at 'market rates', Ms Teo said, declining to elaborate further. At the nearby Suntec City Mall, the committed average passing rent was $10.89 per sq ft per month in March, according to Suntec Real Estate Investment Trust's first-quarter financial results.
Ms Teo said that Esplanade Xchange's location is a strong selling point. It is near Suntec City, Marina Square, CityLink Mall and Bras Basah, and will be directly linked to Raffles City Shopping Centre around the middle of the month. She expects pedestrian traffic to grow after the Circle Line is completed.
Juzz1 general manager Warren Teh said that the store has about 600 walk-in customers a day, and he expects the number to grow after the link to Raffles City opens.
SMRT shares closed unchanged yesterday at $2.32.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
More MRT retail areas coming
SMRT shares plans for Orchard, Circle Line at launch of Esplanade Xchange
By EMILYN YAP
SMRT is carving out a new shopping area at Orchard MRT station - and plans more such spaces at upcoming stations on the Circle Line.
The transport group shared the plans at the launch yesterday of Esplanade Xchange - a 2,000 sq m retail enclave at the Esplanade MRT station.
Teo Chew Hoon, vice-president of SMRT's commercial and taxi divisions, said that Orchard Xchange could be ready at the end of the year and will have a lettable area of around 1,500 sq m. The tender process for space has started and the group expects good take-up.
There are also plans for 'a few' Xchanges at MRT stations in Stages 4 and 5 of the Circle Line, Ms Teo said, without elaborating on where they might be. These stages of the line will run through such places as Botanic Gardens and Holland Village.
SMRT now has seven Xchanges. Esplanade Xchange is the third largest, after Raffles Xchange (about 2,400 sq m) and Tanjong Pagar Xchange (about 2,000 sq m). The group has about 29,000 sq m of retail space across the SMRT network.
Esplanade Xchange is fully let and there will be 26 shops. Tenants include the Infocomm Development Authority of Singapore's iExperience centre, Coffee & Toast, Dunkin Donuts and IT gadget retailer Juzz1. More than 90 per cent of the outlets have opened and all will be operating by the middle of this month.
Rents at Esplanade Xchange are at 'market rates', Ms Teo said, declining to elaborate further. At the nearby Suntec City Mall, the committed average passing rent was $10.89 per sq ft per month in March, according to Suntec Real Estate Investment Trust's first-quarter financial results.
Ms Teo said that Esplanade Xchange's location is a strong selling point. It is near Suntec City, Marina Square, CityLink Mall and Bras Basah, and will be directly linked to Raffles City Shopping Centre around the middle of the month. She expects pedestrian traffic to grow after the Circle Line is completed.
Juzz1 general manager Warren Teh said that the store has about 600 walk-in customers a day, and he expects the number to grow after the link to Raffles City opens.
SMRT shares closed unchanged yesterday at $2.32.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
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