Four HDB flats confiscated
05:55 AM Jul 29, 2010
by Esther Ng
SINGAPORE - One homeowner had sublet her flat illegally to a religious group while she stayed with her family. Another had used his flat as collateral and allowed his moneylender to sublet the flat to repay his loan.
Both did not resume occupation in their flats even though they had been warned by the Housing and Development Board (HDB). Both were among four owners who had their flats confiscated between January and May - compared to four cases over the last two years - while six others had to pay a penalty of $4,200 to $14,400.
The latest figures are the first since the HDB set up a hotline in March for people to complain about homeowners illegally subletting their flats - and 740 people have called since.
However, the bulk of cases detected have come from stepped-up routine inspections - 1,860 to be exact.
In the first five months of the year, a record 2,600 checks were conducted - a four-fold increase from 690 inspections carried out from August to December last year.
Real estate agents told MediaCorp that unauthorised subletting is widespread.
"Some rent the whole unit, as they had taken out bank loans and their Central Provident Fund contribution is not enough to pay for their mortgage," said property agent Azhar Johar. Others stay with their parents or live in their private property to cash in on the red-hot rental market.
"Demand from foreigners and limited flat supply have pushed up HDB rentals even in Woodlands," said real estate agent Liz Choo. "A few years ago, you could get a four-room flat there for $1,300. Now, the minimum is $1,600."
There also have been cases of flat owners who try to circumvent HDB's rules by locking up one room and subletting the rest of the flat without physically staying in the flat.
Such cases will be treated as unauthorised subletting of flats if home owners did not meet the minimum occupation period and did not seek HDB's approval to sublet their flats, said HDB. They must also register their sub-tenants if they sublet rooms.
Members of the public are encouraged to call HDB's hotline on 1800-555-6370 to report any suspected cases of unauthorised subletting.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
Thursday, July 29, 2010
ST : Exodus of property agents expected
Jul 29, 2010
Exodus of property agents expected
New rules on education level likely to shrink pool, but lifeline exists
By Joyce Teo
THOUSANDS more property agents are set to bail out of the industry over the next 17 months due to tough new rules being introduced by the Government.
The regulations will impose a basic educational standard - a minimum four GCE O-level passes - on estate agents.
There are now no such requirements and no mandatory examination, so anyone can easily become a property agent.
While the new rules allow agents who do not meet the educational requirements to sit an industry exam to earn qualification, the immediate effect will be an exodus from the industry, say experts.
ERA Asia-Pacific associate director Eugene Lim estimates that the number of agents who do not have four O-level passes may comprise up to 30 per cent of the 30,000-strong pool of agents.
Experts forecast a drop of up to 25 per cent to 30 per cent in the number of agents by the end of next year.
About 15 per cent to 20 per cent will drop out by the end of this year, and possibly another 10 per cent by the end of 2011, although new ones may join, said Mr Lim.
But there is a lifeline for existing agents once the rules kick in later this year.
The Ministry of National Development (MND) recently told real estate agencies that agents who have done at least three property deals over the past two years will not need to have the minimum O-level passes.
But they will need to pass the new mandatory exam for agents within a year from January 2011.
This means that older, experienced full-time agents who do not have the four O-levels or the equivalent will have more time to pass the industry exam.
New agents who may have joined the industry earlier this year will also benefit as they will be able to complete three deals fairly quickly, said Dennis Wee Group director Chris Koh.
Under the new rules, agents need to have a minimum educational requirement and take an industry exam.
They will also have to register through their firms at a new statutory board called the Council for Estate Agencies.
But the expected clear-out should not affect the industry too much, given the big number of agents, including inactive ones.
'Nobody knows exactly how many agents are out there. Many agencies have not done any housekeeping at all. I won't be surprised if some names are repeated at different agencies,' said Mr Koh.
He recently let go of 1,500 inactive agents, leaving 3,500. That was after he tried to recall all agents to update their particulars to meet MND requests.
Mr Koh said the 1,500 agents had not done any deals in a year and had failed to update their particulars. Some quit as they are in the civil service and do not want their names in the public registry, as is required under the new rules.
'Every month, I bring in new agents and let go of some inactive agents. But previously, there was no urgency to terminate so many,' Mr Koh said.
At HSR Property Group, executive director (agency) Jeffrey Hong said the firm will do a 'screening exercise' in the next two weeks. It now has 7,000 agents and has not had a regular practice of terminating inactive ones.
There has been little change at the other two big agencies - ERA and PropNex - as they have been doing their housekeeping.
ERA's Mr Lim said: 'We do not need to chop just because of the new rules. On average, we let go of about 100 inactive agents every month. Our sales force is about 3,000-strong and it is active.'
PropNex chief executive Mohamed Ismail added: 'I let go of 2,800 agents two years ago and another 1,200 this January.
'All my agents are covered by professional indemnity insurance and are active. My next audit will be in October.'
joyceteo@sph.com.sg
Exodus of property agents expected
New rules on education level likely to shrink pool, but lifeline exists
By Joyce Teo
THOUSANDS more property agents are set to bail out of the industry over the next 17 months due to tough new rules being introduced by the Government.
The regulations will impose a basic educational standard - a minimum four GCE O-level passes - on estate agents.
There are now no such requirements and no mandatory examination, so anyone can easily become a property agent.
While the new rules allow agents who do not meet the educational requirements to sit an industry exam to earn qualification, the immediate effect will be an exodus from the industry, say experts.
ERA Asia-Pacific associate director Eugene Lim estimates that the number of agents who do not have four O-level passes may comprise up to 30 per cent of the 30,000-strong pool of agents.
Experts forecast a drop of up to 25 per cent to 30 per cent in the number of agents by the end of next year.
About 15 per cent to 20 per cent will drop out by the end of this year, and possibly another 10 per cent by the end of 2011, although new ones may join, said Mr Lim.
But there is a lifeline for existing agents once the rules kick in later this year.
The Ministry of National Development (MND) recently told real estate agencies that agents who have done at least three property deals over the past two years will not need to have the minimum O-level passes.
But they will need to pass the new mandatory exam for agents within a year from January 2011.
This means that older, experienced full-time agents who do not have the four O-levels or the equivalent will have more time to pass the industry exam.
New agents who may have joined the industry earlier this year will also benefit as they will be able to complete three deals fairly quickly, said Dennis Wee Group director Chris Koh.
Under the new rules, agents need to have a minimum educational requirement and take an industry exam.
They will also have to register through their firms at a new statutory board called the Council for Estate Agencies.
But the expected clear-out should not affect the industry too much, given the big number of agents, including inactive ones.
'Nobody knows exactly how many agents are out there. Many agencies have not done any housekeeping at all. I won't be surprised if some names are repeated at different agencies,' said Mr Koh.
He recently let go of 1,500 inactive agents, leaving 3,500. That was after he tried to recall all agents to update their particulars to meet MND requests.
Mr Koh said the 1,500 agents had not done any deals in a year and had failed to update their particulars. Some quit as they are in the civil service and do not want their names in the public registry, as is required under the new rules.
'Every month, I bring in new agents and let go of some inactive agents. But previously, there was no urgency to terminate so many,' Mr Koh said.
At HSR Property Group, executive director (agency) Jeffrey Hong said the firm will do a 'screening exercise' in the next two weeks. It now has 7,000 agents and has not had a regular practice of terminating inactive ones.
There has been little change at the other two big agencies - ERA and PropNex - as they have been doing their housekeeping.
ERA's Mr Lim said: 'We do not need to chop just because of the new rules. On average, we let go of about 100 inactive agents every month. Our sales force is about 3,000-strong and it is active.'
PropNex chief executive Mohamed Ismail added: 'I let go of 2,800 agents two years ago and another 1,200 this January.
'All my agents are covered by professional indemnity insurance and are active. My next audit will be in October.'
joyceteo@sph.com.sg
ST : Mass market condos still hot property
Jul 29, 2010
Mass market condos still hot property
200 units at The Scala in Serangoon snapped up at launch yesterday
By Esther Teo
HUNDREDS of eager buyers yesterday braved the early morning rain, making a beeline for the public launch of Hong Leong's The Scala, as keen interest in mass market condominiums shows no sign of abating.
Demand for the 300 or so remaining units of the 99-year leasehold project near Lorong Chuan MRT station was so strong that balloting was needed to sort out who got to enter the showflat first.
By late morning, more than 800 property agents and potential buyers who had submitted blank cheques had packed the balloting tent at the condo site in Serangoon Avenue 3. This is the biggest turnout at a mass market public launch since Trevista in Toa Payoh and Hundred Trees in the West Coast area were launched late last year.
A private preview was held on Tuesday for Hong Leong staff and buyers who had registered their interest with the developer. About 150 units were sold then.
Hong Leong said that as of yesterday, more than 75 per cent of the project's 468 units had been sold. That means more than 350 were sold, of which about 200 went yesterday.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said the condo had set a benchmark price for new projects near MRT stations in the north-east.
'There is a demand for mass market homes among investors and they generally feel more comfortable buying projects near MRT stations,' he said.
Mr Colin Tan, research and consultancy director of Chesterton Suntec International, said: 'The market is still hungry, and the proximity of the project to the Circle Line has given (buyers) a reason to buy.' He said worries over the euro debt crisis had receded so buying sentiment had turned positive again.
Property experts say the strong demand for mass market homes is expected to continue, with prices set to rise about 7 per cent in the second half of this year.
The Government is rolling out a record number of residential sites in the second half of this year, and has assured buyers that there will be no shortage of homes.
Units at The Scala, in five residential towers, are between 474 and 2,142 sq ft each and range from one- to four-bedroom apartments. They were sold at an average of $1,150 per sq ft (psf).
In terms of total price, the smallest units were priced from $600,000 while the four-bedders were from $1.5 million.
Hong Leong said the buyers, mainly locals, comprised a good mix of HDB flat upgraders and investors.
Most buyers The Straits Times spoke to listed as key selling points the project's close proximity to newly opened Lorong Chuan MRT station and the range of amenities such as the NEX mega mall due to be completed next year.
Some buyers also cited nearby schools such as the Australian International School and the Stamford American International School. They said this could mean high rental yields.
Sales executive Tammy Lim, 30, bought a two-bedroom unit. She said the project is near her parents' home.
In addition, the project is close to schools that her three-year-old daughter could attend later, she said. 'Prices keep increasing. We decided to buy now rather than keep waiting.'
Nearby Chiltern Park condo, completed in 1995, saw an average selling price of $746 psf for five units sold last month, according to caveats lodged with the Urban Redevelopment Authority.
The Scala is expected to be completed in the first quarter of 2014.
esthert@sph.com.sg
So many people turned up for the public launch of The Scala, a new condominium near Lorong Chuan MRT station, that entry to the showflat had to be decided by balloting. The units were sold at an average of $1,150 psf. -- ST PHOTOS: LIM WUI LIANG
Mass market condos still hot property
200 units at The Scala in Serangoon snapped up at launch yesterday
By Esther Teo
HUNDREDS of eager buyers yesterday braved the early morning rain, making a beeline for the public launch of Hong Leong's The Scala, as keen interest in mass market condominiums shows no sign of abating.
Demand for the 300 or so remaining units of the 99-year leasehold project near Lorong Chuan MRT station was so strong that balloting was needed to sort out who got to enter the showflat first.
By late morning, more than 800 property agents and potential buyers who had submitted blank cheques had packed the balloting tent at the condo site in Serangoon Avenue 3. This is the biggest turnout at a mass market public launch since Trevista in Toa Payoh and Hundred Trees in the West Coast area were launched late last year.
A private preview was held on Tuesday for Hong Leong staff and buyers who had registered their interest with the developer. About 150 units were sold then.
Hong Leong said that as of yesterday, more than 75 per cent of the project's 468 units had been sold. That means more than 350 were sold, of which about 200 went yesterday.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said the condo had set a benchmark price for new projects near MRT stations in the north-east.
'There is a demand for mass market homes among investors and they generally feel more comfortable buying projects near MRT stations,' he said.
Mr Colin Tan, research and consultancy director of Chesterton Suntec International, said: 'The market is still hungry, and the proximity of the project to the Circle Line has given (buyers) a reason to buy.' He said worries over the euro debt crisis had receded so buying sentiment had turned positive again.
Property experts say the strong demand for mass market homes is expected to continue, with prices set to rise about 7 per cent in the second half of this year.
The Government is rolling out a record number of residential sites in the second half of this year, and has assured buyers that there will be no shortage of homes.
Units at The Scala, in five residential towers, are between 474 and 2,142 sq ft each and range from one- to four-bedroom apartments. They were sold at an average of $1,150 per sq ft (psf).
In terms of total price, the smallest units were priced from $600,000 while the four-bedders were from $1.5 million.
Hong Leong said the buyers, mainly locals, comprised a good mix of HDB flat upgraders and investors.
Most buyers The Straits Times spoke to listed as key selling points the project's close proximity to newly opened Lorong Chuan MRT station and the range of amenities such as the NEX mega mall due to be completed next year.
Some buyers also cited nearby schools such as the Australian International School and the Stamford American International School. They said this could mean high rental yields.
Sales executive Tammy Lim, 30, bought a two-bedroom unit. She said the project is near her parents' home.
In addition, the project is close to schools that her three-year-old daughter could attend later, she said. 'Prices keep increasing. We decided to buy now rather than keep waiting.'
Nearby Chiltern Park condo, completed in 1995, saw an average selling price of $746 psf for five units sold last month, according to caveats lodged with the Urban Redevelopment Authority.
The Scala is expected to be completed in the first quarter of 2014.
esthert@sph.com.sg
So many people turned up for the public launch of The Scala, a new condominium near Lorong Chuan MRT station, that entry to the showflat had to be decided by balloting. The units were sold at an average of $1,150 psf. -- ST PHOTOS: LIM WUI LIANG
ST : Liat Towers may get 60cm wall
Jul 29, 2010
Liat Towers may get 60cm wall
By Jessica Lim
A KNEE-HIGH flood barrier is set to come up in front of Liat Towers, to protect the shops below street level which were flooded three times in the last two months.
The building's owner is waiting for the go-ahead to put up a roughly 40m-long barrier on the Orchard Road pedestrian mall, to stretch from Orange Julius food and drink outlet on the Paterson Road side of the building to Hermes boutique on the Angullia Park side.
One-quarter of the 60cm-high and 15cm-thick barrier will be made of concrete and immovable. The rest of it will be of aluminium or glass, and would be put up only during heavy rainfall.
Supervisors at Goldvein, which owns the building, met architects and engineers a fortnight ago to come up with the plan. The price has yet to be decided.
Mr Chik Hai Lam, a Goldvein supervisor, said a proposal would be submitted to the Urban Redevelopment Authority (URA) this week. He said: 'We have to reassure tenants that we are doing something, it is our responsibility.'
Experts told The Straits Times that the cost could range from $40,000 to $200,000, depending on the design and materials used. 'These things can be expensive, but effective,' said Mr Eugene Seah, owner of cost management company Davis Langdon and Seah, which helped build flood stop-gaps for Wisma Atria and Ion Orchard malls.
In an unseasonably rainy year, floods occurred on June 16 and 25 and July 17.
Liat Towers was particularly badly affected in the June 16 flood. Water spilt into the lower level and submerged shops up to waist-high.
URA confirmed it would 'work closely with the management of Liat Towers on any proposed works to address the flooding issues and expedite the necessary approvals'. The government agency will also work with them to ensure that the proposed works are well integrated with the building and with Orchard Road.
Liat Towers' tenants welcomed the move. Said Ms Goh Wee Ling, spokesman for US fast-food chain Wendy's, which has been closed for the past six weeks: 'Such preventive measures will give us peace of mind.' She added that the chain has lost more than half a million dollars because of the floods.
Such barriers could prevent floods like those experienced recently, said Professor Chiew Yee Meng, head of Nanyang Technological University's Division of Environmental and Water Resources Engineering.
Liat Towers may get 60cm wall
By Jessica Lim
A KNEE-HIGH flood barrier is set to come up in front of Liat Towers, to protect the shops below street level which were flooded three times in the last two months.
The building's owner is waiting for the go-ahead to put up a roughly 40m-long barrier on the Orchard Road pedestrian mall, to stretch from Orange Julius food and drink outlet on the Paterson Road side of the building to Hermes boutique on the Angullia Park side.
One-quarter of the 60cm-high and 15cm-thick barrier will be made of concrete and immovable. The rest of it will be of aluminium or glass, and would be put up only during heavy rainfall.
Supervisors at Goldvein, which owns the building, met architects and engineers a fortnight ago to come up with the plan. The price has yet to be decided.
Mr Chik Hai Lam, a Goldvein supervisor, said a proposal would be submitted to the Urban Redevelopment Authority (URA) this week. He said: 'We have to reassure tenants that we are doing something, it is our responsibility.'
Experts told The Straits Times that the cost could range from $40,000 to $200,000, depending on the design and materials used. 'These things can be expensive, but effective,' said Mr Eugene Seah, owner of cost management company Davis Langdon and Seah, which helped build flood stop-gaps for Wisma Atria and Ion Orchard malls.
In an unseasonably rainy year, floods occurred on June 16 and 25 and July 17.
Liat Towers was particularly badly affected in the June 16 flood. Water spilt into the lower level and submerged shops up to waist-high.
URA confirmed it would 'work closely with the management of Liat Towers on any proposed works to address the flooding issues and expedite the necessary approvals'. The government agency will also work with them to ensure that the proposed works are well integrated with the building and with Orchard Road.
Liat Towers' tenants welcomed the move. Said Ms Goh Wee Ling, spokesman for US fast-food chain Wendy's, which has been closed for the past six weeks: 'Such preventive measures will give us peace of mind.' She added that the chain has lost more than half a million dollars because of the floods.
Such barriers could prevent floods like those experienced recently, said Professor Chiew Yee Meng, head of Nanyang Technological University's Division of Environmental and Water Resources Engineering.
ST : Mega space headache for megachurches
Jul 29, 2010
Mega space headache for megachurches
The big churches' need for more space might exceed available supply
By Lee Siew Hua
THE Government has taken the guesswork out of religious groups' decisions on how much commercial space they should use for their activities.
Churches have for years rented commercial premises, from cinemas to convention halls, for their Sunday services. Some did so even while wondering if they would one day be served notice that they would have to stop.
The state of uncertainty ended last week when the Urban Redevelopment Authority's (URA) guidelines on the issue were made public for the first time. No more than 20,000 sq m or 20 per cent - whichever is lower - of any commercial complex's gross floor area may be used for religious reasons. And each religious organisation can take up only a maximum 10,000 sq m in a commercial place.
Making the guidelines public was a wise and necessary move, followingthe controversial moves by large space-hungry churches into commercial quarters.
The URA has made it clear its guidelines apply to all religious groups and do not target any specific community.
In coming up with the guidelines, the Government has to balance the need to allow room for religion while protecting the secular character of commercial places like Suntec City, where City Harvest Church plans to relocate to next year.
The church has bought into the complex, becoming a new minority shareholder. Even so, the URA guidelines will apply in this case too, and City Harvest will not be able to use more than 10,000 sq m of space in Suntec City.
But while the guidelines spell out the limits clearly, they may in fact be a short-term fix. This is because some megachurches are already using all the space they are allowed under the guidelines.
City Harvest and Faith Community Baptist Church, for example, are each leasing halls of about 10,000 sq m at the Singapore Expo.
Given that the 33,000-strong City Harvest has grown at an average 15 per cent a year in the last decade, it is reasonable to expect that it will soon be bursting at the seams at its Expo location, even if the current probe into its leaders for alleged misuse of funds slows expansion.
City Harvest, Singapore's biggest Protestant church, is now studying implications of the URA guidelines with Suntec Singapore. It is always possible that its architectural plans for an auditorium there may be redrawn to stay safely within the rules.
Another megachurch, the 20,000-strong New Creation, faces a similar space crunch in the near future. It has grown 12 per cent annually in the last five years. It, too, has to be sure that its footprint does not exceed 10,000 sq m when it sets up an auditorium at the one-north lifestyle hub being developed by its business arm Rock Productions with property giant CapitaLand. The church plans to move in 2012.
Every smidgen of its space there will be stretched to house Sunday school classes for some 2,000 children, hospitality rooms, ministry zones, aisles and other church needs. Will 10,000 sq m be enough?
Another guideline stipulates that religious activities may be held for no more than two days a week in any commercial setting. This affects some churches that conduct house prayer meetings, Bible classes, leadership training, worship practices and assorted activities on weekdays.
Some activities may have to be scaled back, or squeezed into the weekend. Ironically, this in a way raises the church's visibility on weekends, if those in a crowd can be identified as churchgoers. If so, this might alter the secular, commercial character of the venue more than if gatherings were dispersed over shorter bursts during the week.
In the long term, churches' use of commercial space is really a second-best option. Many churches prefer a permanent site on a purchased plot.
But in the last five years, fewer plots have been released for church purposes. They have also shrunk in size, from 4,617 sq m in 1995 to under 3,000 sq m now. A building on a land plot this size can house an auditorium for 1,000 - too small for megachurches used to holding services for five times that size.
The scarcity has also prompted a bidding war, putting land beyond the reach of some churches.
The short lease for land devoted to religious purposes was trimmed from 60 to 30 years around 1990. This can reduce the incentive to spend on developing a building.
The first of the 30-year church leases are due to expire around 2020. Ten years is not a long time to start to plan a major move for possibly thousands of members. The URA should start talks with tenants on conditions for lease renewal so that churches can plan ahead.
In general, more open dialogue between the Government and religious groups can help the latter find alternative venues to house their flocks.
One suggestion is for different-sized plots to be released so groups of varying sizes can vie for land on a more equal footing.
Another idea is to have one big tract of land set aside to develop, say, several high-rise churches, big and small. Sharing premises would lower the development cost and make the land price more affordable.
Apart from tinkering with land leases, the two sides can jointly explore the use of existing premises. Mission schools already open their auditoriums for church activities. Government schools can think about doing the same for a rental fee - with the proviso that no religious paraphernalia be set up. Groups can also hook up with the 1,000 private schools, some with auditoriums and rooms suitable for Sunday activities.
With religiosity rising in Singapore, the number of people who attend religious activities will only go up.
The URA guidelines capping the use of commercial premises by religious groups are a good solution for now. But they will probably need to be revised in a few years if current trends persist.
The URA has shown its ability to balance competing uses for scarce land. Similarly, it will need to recalibrate policy over time for religious groups seeking a home.
siewhua@sph.com.sg
Mega space headache for megachurches
The big churches' need for more space might exceed available supply
By Lee Siew Hua
THE Government has taken the guesswork out of religious groups' decisions on how much commercial space they should use for their activities.
Churches have for years rented commercial premises, from cinemas to convention halls, for their Sunday services. Some did so even while wondering if they would one day be served notice that they would have to stop.
The state of uncertainty ended last week when the Urban Redevelopment Authority's (URA) guidelines on the issue were made public for the first time. No more than 20,000 sq m or 20 per cent - whichever is lower - of any commercial complex's gross floor area may be used for religious reasons. And each religious organisation can take up only a maximum 10,000 sq m in a commercial place.
Making the guidelines public was a wise and necessary move, followingthe controversial moves by large space-hungry churches into commercial quarters.
The URA has made it clear its guidelines apply to all religious groups and do not target any specific community.
In coming up with the guidelines, the Government has to balance the need to allow room for religion while protecting the secular character of commercial places like Suntec City, where City Harvest Church plans to relocate to next year.
The church has bought into the complex, becoming a new minority shareholder. Even so, the URA guidelines will apply in this case too, and City Harvest will not be able to use more than 10,000 sq m of space in Suntec City.
But while the guidelines spell out the limits clearly, they may in fact be a short-term fix. This is because some megachurches are already using all the space they are allowed under the guidelines.
City Harvest and Faith Community Baptist Church, for example, are each leasing halls of about 10,000 sq m at the Singapore Expo.
Given that the 33,000-strong City Harvest has grown at an average 15 per cent a year in the last decade, it is reasonable to expect that it will soon be bursting at the seams at its Expo location, even if the current probe into its leaders for alleged misuse of funds slows expansion.
City Harvest, Singapore's biggest Protestant church, is now studying implications of the URA guidelines with Suntec Singapore. It is always possible that its architectural plans for an auditorium there may be redrawn to stay safely within the rules.
Another megachurch, the 20,000-strong New Creation, faces a similar space crunch in the near future. It has grown 12 per cent annually in the last five years. It, too, has to be sure that its footprint does not exceed 10,000 sq m when it sets up an auditorium at the one-north lifestyle hub being developed by its business arm Rock Productions with property giant CapitaLand. The church plans to move in 2012.
Every smidgen of its space there will be stretched to house Sunday school classes for some 2,000 children, hospitality rooms, ministry zones, aisles and other church needs. Will 10,000 sq m be enough?
Another guideline stipulates that religious activities may be held for no more than two days a week in any commercial setting. This affects some churches that conduct house prayer meetings, Bible classes, leadership training, worship practices and assorted activities on weekdays.
Some activities may have to be scaled back, or squeezed into the weekend. Ironically, this in a way raises the church's visibility on weekends, if those in a crowd can be identified as churchgoers. If so, this might alter the secular, commercial character of the venue more than if gatherings were dispersed over shorter bursts during the week.
In the long term, churches' use of commercial space is really a second-best option. Many churches prefer a permanent site on a purchased plot.
But in the last five years, fewer plots have been released for church purposes. They have also shrunk in size, from 4,617 sq m in 1995 to under 3,000 sq m now. A building on a land plot this size can house an auditorium for 1,000 - too small for megachurches used to holding services for five times that size.
The scarcity has also prompted a bidding war, putting land beyond the reach of some churches.
The short lease for land devoted to religious purposes was trimmed from 60 to 30 years around 1990. This can reduce the incentive to spend on developing a building.
The first of the 30-year church leases are due to expire around 2020. Ten years is not a long time to start to plan a major move for possibly thousands of members. The URA should start talks with tenants on conditions for lease renewal so that churches can plan ahead.
In general, more open dialogue between the Government and religious groups can help the latter find alternative venues to house their flocks.
One suggestion is for different-sized plots to be released so groups of varying sizes can vie for land on a more equal footing.
Another idea is to have one big tract of land set aside to develop, say, several high-rise churches, big and small. Sharing premises would lower the development cost and make the land price more affordable.
Apart from tinkering with land leases, the two sides can jointly explore the use of existing premises. Mission schools already open their auditoriums for church activities. Government schools can think about doing the same for a rental fee - with the proviso that no religious paraphernalia be set up. Groups can also hook up with the 1,000 private schools, some with auditoriums and rooms suitable for Sunday activities.
With religiosity rising in Singapore, the number of people who attend religious activities will only go up.
The URA guidelines capping the use of commercial premises by religious groups are a good solution for now. But they will probably need to be revised in a few years if current trends persist.
The URA has shown its ability to balance competing uses for scarce land. Similarly, it will need to recalibrate policy over time for religious groups seeking a home.
siewhua@sph.com.sg
ST : Grand Park Orchard is ready
Jul 29, 2010
Grand Park Orchard is ready
Revamp adds 308 rooms to industry's 45,000 as usual busy period nears
By Jessica Lim
SINGAPORE'S newest five-star hotel will open its doors on Aug 8 - just in time for a bumper travel period which includes the inaugural Youth Olympic Games (YOG) and the SingTel Singapore Grand Prix (SGP).
The completion of the former Park Hotel Orchard's $80 million makeover coincides with the traditionally busy period for the hotel industry.
Renamed Grand Park Orchard, the hotel at 270 Orchard Road will add 308 rooms to the 45,000 available, including the 4,300 at the two integrated resorts.
The supply may even fall short during holiday seasons or mega events like next month's YOG and September's SGP, said analysts.
Many more tourists are expected, especially as the IRs swing into full gear, said National Association of Travel Agents Singapore chief executive Robert Khoo.
'Right now, the occupancy is already so high. There may not be enough rooms with the back-to-back events coming up,' he said, adding that an event like the SGP can attract 50,000 more tourists.
Ngee Ann Polytechnic tourism lecturer Michael Chiam also predicts that there will be a 'crunch in the supply of hotel rooms' if tourist numbers continue rising.
Hotel occupancy rates have been hovering close to 90 per cent since March. The strong numbers are on the back of seven consecutive record-breaking months of tourist arrivals, putting the country on target for the Singapore Tourism Board's goal of 11.5 million to 12.5 million visitors for the year.
Grand Park Orchard's opening is timely, said its general manager, Mr Darren Ware, adding that it was 'very important to open before the F1 season'. 'If you follow the trend, hotels in Orchard Road were full during that time in past years,' he said.
While the hotel is primed to receive its first visitors, with invited guests already there, the road to a full makeover was not without bumps. It was originally due to open in May but the management felt that improvements needed to be made to the rooms.
The other portion of the development, the 83,000 sq ft luxury four-storey retail podium Knightsbridge, will open progressively from the third week of August, starting with yoga studio Pure Yoga, said Mr Ware.
Confirmed tenants include The Hour Glass and CIMB Bank.limjess@sph.com.sg
Grand Park Orchard is ready
Revamp adds 308 rooms to industry's 45,000 as usual busy period nears
By Jessica Lim
SINGAPORE'S newest five-star hotel will open its doors on Aug 8 - just in time for a bumper travel period which includes the inaugural Youth Olympic Games (YOG) and the SingTel Singapore Grand Prix (SGP).
The completion of the former Park Hotel Orchard's $80 million makeover coincides with the traditionally busy period for the hotel industry.
Renamed Grand Park Orchard, the hotel at 270 Orchard Road will add 308 rooms to the 45,000 available, including the 4,300 at the two integrated resorts.
The supply may even fall short during holiday seasons or mega events like next month's YOG and September's SGP, said analysts.
Many more tourists are expected, especially as the IRs swing into full gear, said National Association of Travel Agents Singapore chief executive Robert Khoo.
'Right now, the occupancy is already so high. There may not be enough rooms with the back-to-back events coming up,' he said, adding that an event like the SGP can attract 50,000 more tourists.
Ngee Ann Polytechnic tourism lecturer Michael Chiam also predicts that there will be a 'crunch in the supply of hotel rooms' if tourist numbers continue rising.
Hotel occupancy rates have been hovering close to 90 per cent since March. The strong numbers are on the back of seven consecutive record-breaking months of tourist arrivals, putting the country on target for the Singapore Tourism Board's goal of 11.5 million to 12.5 million visitors for the year.
Grand Park Orchard's opening is timely, said its general manager, Mr Darren Ware, adding that it was 'very important to open before the F1 season'. 'If you follow the trend, hotels in Orchard Road were full during that time in past years,' he said.
While the hotel is primed to receive its first visitors, with invited guests already there, the road to a full makeover was not without bumps. It was originally due to open in May but the management felt that improvements needed to be made to the rooms.
The other portion of the development, the 83,000 sq ft luxury four-storey retail podium Knightsbridge, will open progressively from the third week of August, starting with yoga studio Pure Yoga, said Mr Ware.
Confirmed tenants include The Hour Glass and CIMB Bank.limjess@sph.com.sg
ST : Sale of house: Lawyers win appeal against PI
Jul 29, 2010
Sale of house: Lawyers win appeal against PI
Private eye had sued them over commission paid to property agency
By Selina Lum
A PRIVATE eye who initially won his case against four lawyers in the Subordinate Courts now has to return the $52,000 that had been paid to him, after the High Court overturned the lower court's decision.
The amount included the $24,000 legal costs he was awarded after he sued
Ms Amarjit Kour, Mr Gregory Tang, Ms Belinda Ang and Mr Peter Low.
Mr Simon Suppiah Sunmugam, 62, had sued them for wrongly paying out $28,000 as commission to property agency ERA from the sale of his matrimonial home in 2002.
In April, a district court said the money should not have been paid out as the agreement between Mr Suppiah's former wife and ERA was invalid.
But on Tuesday, High Court judge Kan Ting Chiu allowed an appeal by the four lawyers, represented by Senior Counsel Molly Lim, holding that they had not breached their duties. Mr Suppiah was also ordered to pay another $20,000 in costs.
The suit arose out of his divorce from Madam Nee Shyan Huey, 44, and the sale of their house in Punggol. Madam Nee signed an agreement with ERA to sell the house. The agency found a buyer who offered $1.6 million but Mr Suppiah rejected it and later, found someone who was willing to pay $1.75 million.
In 2002, he realised that $28,000 had been deducted from the sale proceeds for ERA's commission.
Six years later, he sued the four lawyers from the firm that acted for his wife, and his own divorce lawyer, Mr Andrew Hanam, alleging that they had been negligent in releasing the commission. Mr Hanam was cleared of any fault.
At the appeal, Justice Kan noted that Madam Nee, who has permission by the court to solely handle the sale, had to pay the commission and did not have to get Mr Suppiah's consent. The judge questioned how the lawyers, carrying out her instructions, could be held liable when, in a separate hearing, the High Court had ruled that Madam Nee need not refund Mr Suppiah.
Yesterday, Ms Ang told The Straits Times that the lawyers fought the case on principle, and had spent nearly four times the claim amount on legal fees. 'Even though we are covered by insurance, we had to clear our names,' she said.
selinal@sph.com.sg
Sale of house: Lawyers win appeal against PI
Private eye had sued them over commission paid to property agency
By Selina Lum
A PRIVATE eye who initially won his case against four lawyers in the Subordinate Courts now has to return the $52,000 that had been paid to him, after the High Court overturned the lower court's decision.
The amount included the $24,000 legal costs he was awarded after he sued
Ms Amarjit Kour, Mr Gregory Tang, Ms Belinda Ang and Mr Peter Low.
Mr Simon Suppiah Sunmugam, 62, had sued them for wrongly paying out $28,000 as commission to property agency ERA from the sale of his matrimonial home in 2002.
In April, a district court said the money should not have been paid out as the agreement between Mr Suppiah's former wife and ERA was invalid.
But on Tuesday, High Court judge Kan Ting Chiu allowed an appeal by the four lawyers, represented by Senior Counsel Molly Lim, holding that they had not breached their duties. Mr Suppiah was also ordered to pay another $20,000 in costs.
The suit arose out of his divorce from Madam Nee Shyan Huey, 44, and the sale of their house in Punggol. Madam Nee signed an agreement with ERA to sell the house. The agency found a buyer who offered $1.6 million but Mr Suppiah rejected it and later, found someone who was willing to pay $1.75 million.
In 2002, he realised that $28,000 had been deducted from the sale proceeds for ERA's commission.
Six years later, he sued the four lawyers from the firm that acted for his wife, and his own divorce lawyer, Mr Andrew Hanam, alleging that they had been negligent in releasing the commission. Mr Hanam was cleared of any fault.
At the appeal, Justice Kan noted that Madam Nee, who has permission by the court to solely handle the sale, had to pay the commission and did not have to get Mr Suppiah's consent. The judge questioned how the lawyers, carrying out her instructions, could be held liable when, in a separate hearing, the High Court had ruled that Madam Nee need not refund Mr Suppiah.
Yesterday, Ms Ang told The Straits Times that the lawyers fought the case on principle, and had spent nearly four times the claim amount on legal fees. 'Even though we are covered by insurance, we had to clear our names,' she said.
selinal@sph.com.sg
ST : Why flats were taken back
Jul 29, 2010
Why flats were taken back
IN AN unprecedented crackdown on illegal subletting, the Housing Board (HDB) has taken action against four flat owners and compulsorily acquired their flats.
These owners did not live in the flats they purchased and sublet their homes without meeting the minimum period of occupation - five years for subsidised flats and three years for non-subsidised flats - or obtaining the HDB's approval.
· Locked out, then found out
The owner sought the HDB's help in getting into his flat after he was locked out of it.
That was when he was found out. He had allowed his three-room flat in the western part of Singapore to be used as collateral for a loan. His moneylender had sublet the flat as repayment.
After he got back into his flat, the HDB reminded him repeatedly that he had to resume occupation of it and evict the tenants.
But he did neither, even after he was given a grace period.
The HDB thus took over the flat.
· Let out too soon
She let out her flat without the HDB's approval only a year after she had bought the property. The HDB requires home owners to live in their flats for a minimum period before they can let them out.
Though she did as told by the HDB and evicted her tenants, she failed to move back in, and left the flat empty.
The HDB then took over the flat.
· Didn't live in matrimonial home
She bought the flat with her former husband, a foreigner, while they were married.
But she never moved in. Instead, she lived abroad and sublet the flat without meeting the minimum occupation period or getting approval from the HDB.
When their marriage broke down, her ex-husband wrote to the HDB to say that the flat was never intended as their matrimonial home and he had, in fact, never even seen it.
Even after she returned to Singapore, she chose to live with her family and not in her own property.
The HDB proceeded to acquire the flat.
· Sublet to religious group
The flat owner lived in another home with her family while she sublet her unit to a religious group.
The flat was compulsorily acquired on the grounds that it was let out without the HDB's approval and that the owner did not resume occupation.
Why flats were taken back
IN AN unprecedented crackdown on illegal subletting, the Housing Board (HDB) has taken action against four flat owners and compulsorily acquired their flats.
These owners did not live in the flats they purchased and sublet their homes without meeting the minimum period of occupation - five years for subsidised flats and three years for non-subsidised flats - or obtaining the HDB's approval.
· Locked out, then found out
The owner sought the HDB's help in getting into his flat after he was locked out of it.
That was when he was found out. He had allowed his three-room flat in the western part of Singapore to be used as collateral for a loan. His moneylender had sublet the flat as repayment.
After he got back into his flat, the HDB reminded him repeatedly that he had to resume occupation of it and evict the tenants.
But he did neither, even after he was given a grace period.
The HDB thus took over the flat.
· Let out too soon
She let out her flat without the HDB's approval only a year after she had bought the property. The HDB requires home owners to live in their flats for a minimum period before they can let them out.
Though she did as told by the HDB and evicted her tenants, she failed to move back in, and left the flat empty.
The HDB then took over the flat.
· Didn't live in matrimonial home
She bought the flat with her former husband, a foreigner, while they were married.
But she never moved in. Instead, she lived abroad and sublet the flat without meeting the minimum occupation period or getting approval from the HDB.
When their marriage broke down, her ex-husband wrote to the HDB to say that the flat was never intended as their matrimonial home and he had, in fact, never even seen it.
Even after she returned to Singapore, she chose to live with her family and not in her own property.
The HDB proceeded to acquire the flat.
· Sublet to religious group
The flat owner lived in another home with her family while she sublet her unit to a religious group.
The flat was compulsorily acquired on the grounds that it was let out without the HDB's approval and that the owner did not resume occupation.
ST : HDB seizes flats of four home owners
Jul 29, 2010
HDB seizes flats of four home owners
Six other flat owners fined, in clampdown on illegal subletting
By Leow Si Wan , Teh Joo Lin
FOUR Housing Board home owners lost their flats in the first five months of this year, after the HDB launched an unprecedented crackdown on those who let out their flats illegally.
Six others have been fined amounts that ranged from $4,200 to $14,400.
Making good its earlier pledge to clamp down on illegal subletting, HDB inspectors checked 2,600 homes from January to May, four times more than in the preceding five months last year.
Some 2,300 flat owners are in the clear, but of the 300 still being investigated, 59 cases have been classified as suspicious.
The crackdown comes after measures announced in March to ensure that heavily subsidised HDB flats are used as homes, and not as money-making tools.
For example, the minimum occupation period for resale flat buyers before they can sell the flat was lengthened to three years, up from as short as one year, to cool speculative demand for HDB flats.
The Government had said that illegal subletting was not rampant, but it also gave the assurance that it would step up enforcement against owners who flouted the rules to milk rental income.
The HDB confirmed that this is the biggest number of flats checked and compulsorily acquired over a five-month time frame.
In the preceding two years, the HDB repossessed four flats out of 56 illegal subletting cases. The other 52 were fined amounts ranging from $1,000 to $21,000.
'HDB flats are primarily meant for owner occupation. Subletting of HDB flats without HDB's approval is an infringement of the lease conditions,' its spokesman said yesterday.
As of the end of last month, 30,500 HDB flat owners, or 3.6 per cent, out of a total of 841,000 flat owners have obtained approval to sublet their flats.
In the latest blitz, the spokesman said that in all 10 cases, the flat owners were not living in their homes and had sublet the whole flat without HDB approval.
She said a fine would generally be imposed on first-time offenders, unless their actions were particularly blatant, such as repeatedly ignoring HDB reminders to evict tenants.
Then, under the HDB Act, it would resort to compulsory acquisition, returning the owner only the value at which he had bought the flat.
A penalty would also be deducted from that amount.
The HDB cited one case in which a woman bought a flat with her then-husband but stayed overseas all the while.
When the marriage broke up, the ex-husband confirmed that they had no intention of living in the flat, which had been sublet before the expiry of the minimum occupation period.
One owner even allowed his moneylender to let out his flat to collect rent that constituted his debt repayment.
The HDB also found cases where flat owners skirted subletting rules by locking up one room and renting out the rest of the flat.
The rules mandate that owners can sublet their whole flats only after they fulfil the minimum occupation periods of five years for subsidised flats and three years for non-subsidised flats.
Approval must be obtained from the HDB, with caps on the number of sub-tenants allowed, based on flat size.
Former chairman of the Government Parliamentary Committee for National Development Charles Chong said the crackdown will 'send out a very strong message that the flats are not for people to make money, but for accommodation'.
There had been public concern that illegal subletting was indirectly linked to rising resale prices.
However, property analysts interviewed said that stricter enforcement is unlikely to have a significant impact on the market.
Said group managing director Danny Yeo of Knight Frank real estate consultancy: 'There are many illegal subletters, but compared to the total number of flats available, the numbers are small.'
Mr Gerard Thomas, marketing director of SHL Realty, said: 'There are also external factors to consider, for example, what the economy is like, whether there are any disasters.'
Mr Thomas added that the stricter enforcement would reduce the incentive for people to sublet illegally because the 'price is too high to pay'.
About three in every 10 cases in the crackdown came from public tip-offs.
While flat owners who rent out rooms do not need HDB approval, they must register the subletting details within a week, on pain of a fine of up to $3,000.
This move helps track tenants who use the flat addresses to borrow from loan sharks.
A six-month grace period for those who had sublet their flats before the start of February expires at the end of this month.
Those who want to report on illegal subletting can call the HDB on 1800-555-6370.
HDB seizes flats of four home owners
Six other flat owners fined, in clampdown on illegal subletting
By Leow Si Wan , Teh Joo Lin
FOUR Housing Board home owners lost their flats in the first five months of this year, after the HDB launched an unprecedented crackdown on those who let out their flats illegally.
Six others have been fined amounts that ranged from $4,200 to $14,400.
Making good its earlier pledge to clamp down on illegal subletting, HDB inspectors checked 2,600 homes from January to May, four times more than in the preceding five months last year.
Some 2,300 flat owners are in the clear, but of the 300 still being investigated, 59 cases have been classified as suspicious.
The crackdown comes after measures announced in March to ensure that heavily subsidised HDB flats are used as homes, and not as money-making tools.
For example, the minimum occupation period for resale flat buyers before they can sell the flat was lengthened to three years, up from as short as one year, to cool speculative demand for HDB flats.
The Government had said that illegal subletting was not rampant, but it also gave the assurance that it would step up enforcement against owners who flouted the rules to milk rental income.
The HDB confirmed that this is the biggest number of flats checked and compulsorily acquired over a five-month time frame.
In the preceding two years, the HDB repossessed four flats out of 56 illegal subletting cases. The other 52 were fined amounts ranging from $1,000 to $21,000.
'HDB flats are primarily meant for owner occupation. Subletting of HDB flats without HDB's approval is an infringement of the lease conditions,' its spokesman said yesterday.
As of the end of last month, 30,500 HDB flat owners, or 3.6 per cent, out of a total of 841,000 flat owners have obtained approval to sublet their flats.
In the latest blitz, the spokesman said that in all 10 cases, the flat owners were not living in their homes and had sublet the whole flat without HDB approval.
She said a fine would generally be imposed on first-time offenders, unless their actions were particularly blatant, such as repeatedly ignoring HDB reminders to evict tenants.
Then, under the HDB Act, it would resort to compulsory acquisition, returning the owner only the value at which he had bought the flat.
A penalty would also be deducted from that amount.
The HDB cited one case in which a woman bought a flat with her then-husband but stayed overseas all the while.
When the marriage broke up, the ex-husband confirmed that they had no intention of living in the flat, which had been sublet before the expiry of the minimum occupation period.
One owner even allowed his moneylender to let out his flat to collect rent that constituted his debt repayment.
The HDB also found cases where flat owners skirted subletting rules by locking up one room and renting out the rest of the flat.
The rules mandate that owners can sublet their whole flats only after they fulfil the minimum occupation periods of five years for subsidised flats and three years for non-subsidised flats.
Approval must be obtained from the HDB, with caps on the number of sub-tenants allowed, based on flat size.
Former chairman of the Government Parliamentary Committee for National Development Charles Chong said the crackdown will 'send out a very strong message that the flats are not for people to make money, but for accommodation'.
There had been public concern that illegal subletting was indirectly linked to rising resale prices.
However, property analysts interviewed said that stricter enforcement is unlikely to have a significant impact on the market.
Said group managing director Danny Yeo of Knight Frank real estate consultancy: 'There are many illegal subletters, but compared to the total number of flats available, the numbers are small.'
Mr Gerard Thomas, marketing director of SHL Realty, said: 'There are also external factors to consider, for example, what the economy is like, whether there are any disasters.'
Mr Thomas added that the stricter enforcement would reduce the incentive for people to sublet illegally because the 'price is too high to pay'.
About three in every 10 cases in the crackdown came from public tip-offs.
While flat owners who rent out rooms do not need HDB approval, they must register the subletting details within a week, on pain of a fine of up to $3,000.
This move helps track tenants who use the flat addresses to borrow from loan sharks.
A six-month grace period for those who had sublet their flats before the start of February expires at the end of this month.
Those who want to report on illegal subletting can call the HDB on 1800-555-6370.
BT : Iskandar shows more promise
Business Times - 29 Jul 2010
Iskandar shows more promise
WHEN the two Prime Ministers of Singapore and Malaysia announced recently, and rather unexpectedly, a resolution to the long-standing issue of Malaysian railway land, there was a quiet sense of relief on both sides. But for none more so than among the backers of Iskandar Malaysia, an ambitious concept mooted in 2006 by the Malaysian government with the vision of transforming greenfield clusters in Johor into a sustainable and prosperous metropolis by 2025.
Singapore's initial response to the mega development plan was lukewarm. Singapore businesses viewed warily the rosy forecast of lucrative investment opportunities in waterfront projects and building and operating educational institutions and theme parks. The onslaught of the global financial crisis in 2008 did not help matters and Iskandar developments appeared to be moving slowly.
However, to the credit of the project's planners and managers, and the commitment of the Malaysian government, hundreds of millions of dollars have been sunk into developing the necessary infrastructure. Roads and highways were built, rivers cleaned up, and water and energy services to the area upgraded. In short, Malaysia's planners spared no effort and now the development is ripe for takeoff.
Private investments have been picking up. The catalytic driver of investments for the area, Iskandar Investments, signed on some major projects and achieved its own target for joint ventures. Indeed, Iskandar Malaysia is reported to have gone beyond its target of achieving US$13.2 billion in investments by 2010. However, there can be no denying that Singapore investors have been by and large in 'wait and see' mode.
Several business delegations have gone across from Singapore over the past two years to take a look at the region and see developments for themselves. But except for a few small investors, there was no notable commitment from a Singapore party - until recently, when the Management Development Institute of Singapore (MDIS) announced one of its biggest forays overseas, a $128 million investment to set up a 30-acre campus in an area within Iskandar's EduCity. The new facility will be about five times bigger than its Singapore campus.
Now that political reassurances have been made, and basic infrastructure is in place, will potential investors from Singapore take the plunge? Already Temasek Holdings is eyeing some 200 hectares of land in the development zone for a medical and wellness centre. This must be the clearest signal that the Malaysian project has got that it is ready to fly.
But while government assurances and commitments are necessary, nothing can replace the hard-nosed approach of business people, who base their decisions purely on investment returns. How much, and how quickly, private investment flows into Iskandar Malaysia will be the real test. But it must be said that the prospects now look better than at any time since the project's launch.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Iskandar shows more promise
WHEN the two Prime Ministers of Singapore and Malaysia announced recently, and rather unexpectedly, a resolution to the long-standing issue of Malaysian railway land, there was a quiet sense of relief on both sides. But for none more so than among the backers of Iskandar Malaysia, an ambitious concept mooted in 2006 by the Malaysian government with the vision of transforming greenfield clusters in Johor into a sustainable and prosperous metropolis by 2025.
Singapore's initial response to the mega development plan was lukewarm. Singapore businesses viewed warily the rosy forecast of lucrative investment opportunities in waterfront projects and building and operating educational institutions and theme parks. The onslaught of the global financial crisis in 2008 did not help matters and Iskandar developments appeared to be moving slowly.
However, to the credit of the project's planners and managers, and the commitment of the Malaysian government, hundreds of millions of dollars have been sunk into developing the necessary infrastructure. Roads and highways were built, rivers cleaned up, and water and energy services to the area upgraded. In short, Malaysia's planners spared no effort and now the development is ripe for takeoff.
Private investments have been picking up. The catalytic driver of investments for the area, Iskandar Investments, signed on some major projects and achieved its own target for joint ventures. Indeed, Iskandar Malaysia is reported to have gone beyond its target of achieving US$13.2 billion in investments by 2010. However, there can be no denying that Singapore investors have been by and large in 'wait and see' mode.
Several business delegations have gone across from Singapore over the past two years to take a look at the region and see developments for themselves. But except for a few small investors, there was no notable commitment from a Singapore party - until recently, when the Management Development Institute of Singapore (MDIS) announced one of its biggest forays overseas, a $128 million investment to set up a 30-acre campus in an area within Iskandar's EduCity. The new facility will be about five times bigger than its Singapore campus.
Now that political reassurances have been made, and basic infrastructure is in place, will potential investors from Singapore take the plunge? Already Temasek Holdings is eyeing some 200 hectares of land in the development zone for a medical and wellness centre. This must be the clearest signal that the Malaysian project has got that it is ready to fly.
But while government assurances and commitments are necessary, nothing can replace the hard-nosed approach of business people, who base their decisions purely on investment returns. How much, and how quickly, private investment flows into Iskandar Malaysia will be the real test. But it must be said that the prospects now look better than at any time since the project's launch.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : NUS estimates confirm private home prices tapered off in June
Business Times - 29 Jul 2010
NUS estimates confirm private home prices tapered off in June
By KALPANA RASHIWALA
(SINGAPORE) Latest flash estimates from National University of Singapore (NUS) confirm what property industry players have already experienced on the ground - a rapid slowdown in the growth of non-landed private home prices in June compared with May.
NUS's overall price index for non-landed homes for June rose 0.3 per cent month on month, compared with month-on-month gains of 2.4 per cent each for May and April.
It was the same story for the sub-index for the Central region, which covers a basket of properties in districts 1-4 and 9-11. It increased 0.7 per cent month on month in June, slower than gains of 2.1 per cent in May and 3.4 per cent in April.
The sub-index for Non-Central region was unchanged in June from the preceding month, after rises of 2.7 per cent in May and 1.7 per cent in April.
The Singapore Residential Price Index (SRPI), compiled by the NUS Institute of Real Estate Studies, covers only completed properties.
DTZ executive director (consulting) Ong Choon Fah said: 'The latest indices confirm the slowdown in buying momentum felt on the ground in June - because of the school holidays, World Cup and continued uncertainty in the eurozone economies.
'People found no reason to rush and buy a home. Developers have also been holding back launches and the projects they did launch were not priced at the top end of their own target range; so developers have also moderated their own price expectation.'
Since the end of last year, all three NUS indices have appreciated - to the tune of 8.7 per cent for the overall index, 8.2 per cent for Central region and 9.2 per cent for Non-Central region. Based on the latest June flash estimates, NUS's overall SRPI is now 36.3 per cent above the post-financial crisis low in March 2009. Over the same period, the growth for the Central region has been 42.1 per cent and that for the Non-Central region, about 33.3 per cent.
The June flash estimate for Central region is still 3.5 per cent below the pre-crisis high in November 2007. However, for the Non-Central region, the latest index surpassed its respective pre-crisis peak in January 2008 by 11.2 per cent. As a result, the overall SRPI flash estimate for June is 5.7 above its November 2007 high.
Looking ahead, Mrs Ong reckoned the overall and Central region indices are likely to remain flat in July, but the index for the Non-Central region could either be flat or post a marginal increase, supported by high cash-over-valuations in the HDB resale market.
Meanwhile Hong Leong Holdings said yesterday it has sold over 75 per cent of the 468 units available at The Scala, a 99-year condo at Serangoon Avenue 3. The units are sized between 474 and 2,142 sq ft, and sold at an average of $1,150 per square foot. Buyers comprised a good mix of HDB upgraders and investors, with the majority made up of locals.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
NUS estimates confirm private home prices tapered off in June
By KALPANA RASHIWALA
(SINGAPORE) Latest flash estimates from National University of Singapore (NUS) confirm what property industry players have already experienced on the ground - a rapid slowdown in the growth of non-landed private home prices in June compared with May.
NUS's overall price index for non-landed homes for June rose 0.3 per cent month on month, compared with month-on-month gains of 2.4 per cent each for May and April.
It was the same story for the sub-index for the Central region, which covers a basket of properties in districts 1-4 and 9-11. It increased 0.7 per cent month on month in June, slower than gains of 2.1 per cent in May and 3.4 per cent in April.
The sub-index for Non-Central region was unchanged in June from the preceding month, after rises of 2.7 per cent in May and 1.7 per cent in April.
The Singapore Residential Price Index (SRPI), compiled by the NUS Institute of Real Estate Studies, covers only completed properties.
DTZ executive director (consulting) Ong Choon Fah said: 'The latest indices confirm the slowdown in buying momentum felt on the ground in June - because of the school holidays, World Cup and continued uncertainty in the eurozone economies.
'People found no reason to rush and buy a home. Developers have also been holding back launches and the projects they did launch were not priced at the top end of their own target range; so developers have also moderated their own price expectation.'
Since the end of last year, all three NUS indices have appreciated - to the tune of 8.7 per cent for the overall index, 8.2 per cent for Central region and 9.2 per cent for Non-Central region. Based on the latest June flash estimates, NUS's overall SRPI is now 36.3 per cent above the post-financial crisis low in March 2009. Over the same period, the growth for the Central region has been 42.1 per cent and that for the Non-Central region, about 33.3 per cent.
The June flash estimate for Central region is still 3.5 per cent below the pre-crisis high in November 2007. However, for the Non-Central region, the latest index surpassed its respective pre-crisis peak in January 2008 by 11.2 per cent. As a result, the overall SRPI flash estimate for June is 5.7 above its November 2007 high.
Looking ahead, Mrs Ong reckoned the overall and Central region indices are likely to remain flat in July, but the index for the Non-Central region could either be flat or post a marginal increase, supported by high cash-over-valuations in the HDB resale market.
Meanwhile Hong Leong Holdings said yesterday it has sold over 75 per cent of the 468 units available at The Scala, a 99-year condo at Serangoon Avenue 3. The units are sized between 474 and 2,142 sq ft, and sold at an average of $1,150 per square foot. Buyers comprised a good mix of HDB upgraders and investors, with the majority made up of locals.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Property business to carry on as usual, says F&N
Business Times - 29 Jul 2010
Property business to carry on as usual, says F&N
Temasek nominee Ng Yat Chung steps down from board
By EMILYN YAP
(SINGAPORE) Kirin Holdings' presence as the second largest shareholder of Fraser & Neave (F&N) is unlikely to have any impact on the latter's property and beer businesses.
Responding to queries from BT, F&N said: 'Kirin's shareholding will not affect Frasers Centrepoint, which is one of the leading property companies in Singapore.'
Kirin will also not have a hand in operations at F&N's listed unit Asia Pacific Breweries (APB). 'Kirin will be a shareholder of F&N and will indirectly benefit from the continuing strong operating performance of APB, but it will not be involved in APB,' F&N said.
'If it makes commercial sense for APB and Kirin to work together in other markets, then (they) will have to meet and discuss the merits of furthering their relationship.'
APB currently distributes one of Kirin's beers, Kirin Ichiban, in Singapore.
F&N's comments provide a clearer picture of how it will work with Kirin. The Japanese beverage group said on Monday it is buying Temasek's 14.7 per cent stake in F&N for $1.336 billion. It also said it will explore collaboration with F&N.
Kirin's move got the market wondering if F&N's property business would be affected. There were also questions about future dynamics between Kirin and APB - the former is a beer giant in Japan while the latter has established itself in South-east Asia with Tiger beer.
F&N and Kirin have yet to discuss partnerships, but they could look for synergy in the soft drink and dairy sectors.
'We recognise their strengths in certain product categories such as dairies and soft drinks, and have always regarded the research and development capabilities of Japanese firms very highly,' F&N said.
While the shareholder change has yet to affect operations at F&N, it has triggered a movement on its board. Temasek's nominee Ng Yat Chung is stepping down from today.
He was a non-independent non-executive director, a member of the board's executive committee and a member of its food-and-beverage committee.
At Temasek, Mr Ng is head of portfolio management and operations and co-head (Singapore).
There is no indication who his replacement will be at F&N. But a Kirin investor relations person told BT on Tuesday the group hopes to have representation on F&N's board. F&N and Kirin have yet to discuss this.
According to F&N's website, there are eight seats on the board - including the one occupied by Mr Ng. The board is led by former Singapore Telecom chief executive officer Lee Hsien Yang, and its directors include Soon Tit Koon, OCBC Bank's head of group investments.
OCBC Group is F&N's largest shareholder, with a stake of about 18 per cent.
F&N's shares lost nine cents yesterday to close at $5.65.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Property business to carry on as usual, says F&N
Temasek nominee Ng Yat Chung steps down from board
By EMILYN YAP
(SINGAPORE) Kirin Holdings' presence as the second largest shareholder of Fraser & Neave (F&N) is unlikely to have any impact on the latter's property and beer businesses.
Responding to queries from BT, F&N said: 'Kirin's shareholding will not affect Frasers Centrepoint, which is one of the leading property companies in Singapore.'
Kirin will also not have a hand in operations at F&N's listed unit Asia Pacific Breweries (APB). 'Kirin will be a shareholder of F&N and will indirectly benefit from the continuing strong operating performance of APB, but it will not be involved in APB,' F&N said.
'If it makes commercial sense for APB and Kirin to work together in other markets, then (they) will have to meet and discuss the merits of furthering their relationship.'
APB currently distributes one of Kirin's beers, Kirin Ichiban, in Singapore.
F&N's comments provide a clearer picture of how it will work with Kirin. The Japanese beverage group said on Monday it is buying Temasek's 14.7 per cent stake in F&N for $1.336 billion. It also said it will explore collaboration with F&N.
Kirin's move got the market wondering if F&N's property business would be affected. There were also questions about future dynamics between Kirin and APB - the former is a beer giant in Japan while the latter has established itself in South-east Asia with Tiger beer.
F&N and Kirin have yet to discuss partnerships, but they could look for synergy in the soft drink and dairy sectors.
'We recognise their strengths in certain product categories such as dairies and soft drinks, and have always regarded the research and development capabilities of Japanese firms very highly,' F&N said.
While the shareholder change has yet to affect operations at F&N, it has triggered a movement on its board. Temasek's nominee Ng Yat Chung is stepping down from today.
He was a non-independent non-executive director, a member of the board's executive committee and a member of its food-and-beverage committee.
At Temasek, Mr Ng is head of portfolio management and operations and co-head (Singapore).
There is no indication who his replacement will be at F&N. But a Kirin investor relations person told BT on Tuesday the group hopes to have representation on F&N's board. F&N and Kirin have yet to discuss this.
According to F&N's website, there are eight seats on the board - including the one occupied by Mr Ng. The board is led by former Singapore Telecom chief executive officer Lee Hsien Yang, and its directors include Soon Tit Koon, OCBC Bank's head of group investments.
OCBC Group is F&N's largest shareholder, with a stake of about 18 per cent.
F&N's shares lost nine cents yesterday to close at $5.65.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : HDB steps up checks on unauthorised sub-letting
Business Times - 29 Jul 2010
HDB steps up checks on unauthorised sub-letting
THE Housing and Development Board has cracked down on unauthorised sub-letting. Almost four times as many checks were carried out in the first five months of this year - 2,600, versus 690 between August and December 2009.
About 70 per cent of the 2,600 checks were routine inspections. The others were carried out after public feedback.
HDB said it has taken compulsory acquisition action against four flat owners this year and fined six others for unauthorised sub-letting.
Those whose flats were repossessed were not staying in them and had sub-let without HDB approval.
Owners are allowed to sub-let whole flats only after occupying them for at least five years if they are subsidised flats, or three years if they are non-subsidised.
Owners must also obtain written approval from HDB before sub-letting an entire flat. Different flat types have different limits on the number of sub-tenants allowed. One and two-room flats are allowed four sub-tenants, three-rooms are allowed six and larger flats are allowed up to nine sub-tenants.
Approval is not required for sub-letting of rooms, but flat owners must let HDB know within seven days of doing so.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
HDB steps up checks on unauthorised sub-letting
THE Housing and Development Board has cracked down on unauthorised sub-letting. Almost four times as many checks were carried out in the first five months of this year - 2,600, versus 690 between August and December 2009.
About 70 per cent of the 2,600 checks were routine inspections. The others were carried out after public feedback.
HDB said it has taken compulsory acquisition action against four flat owners this year and fined six others for unauthorised sub-letting.
Those whose flats were repossessed were not staying in them and had sub-let without HDB approval.
Owners are allowed to sub-let whole flats only after occupying them for at least five years if they are subsidised flats, or three years if they are non-subsidised.
Owners must also obtain written approval from HDB before sub-letting an entire flat. Different flat types have different limits on the number of sub-tenants allowed. One and two-room flats are allowed four sub-tenants, three-rooms are allowed six and larger flats are allowed up to nine sub-tenants.
Approval is not required for sub-letting of rooms, but flat owners must let HDB know within seven days of doing so.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : More than 75% of The Scala sold
Business Times - 29 Jul 2010
More than 75% of The Scala sold
MORE than 75 per cent of the Hong Leong group's latest residential project, The Scala, has been sold at prices averaging $1,150 per square foot.
The 468-unit development in Serangoon Avenue 3 was publicly launched yesterday.
Hong Leong said yesterday that the units sold at the 99-year leasehold project are spread across five residential towers that feature one to four-bedroom units ranging from 474 square feet to 2,142 sq ft.
Buyers comprise a mix of Housing & Development Board upgraders and investors, with the majority being Singaporeans.
Betsy Chng, Hong Leong's head of sales and marketing, attributed the strong response to the project's location, unique features, finishing and pricing.
The Scala is next to the Circle Line's Lorong Chuan MRT Station and near several schools, including St Gabriel's Primary, Yangzheng Primary, Nanyang Junior College, the Australian International School, Stamford American International School and Lycee Francais de Singapour.
It is also close to a bus and MRT interchange at Serangoon Central, and the soon-to-be-opened NEX mega mall.
The project is slated for completion in the first quarter of 2014. Apart from the usual condominium facilities, The Scala will have features such as pavilions with wood-fired pizza ovens and teppanyaki hotplates, a Harvest Garden and a Green Gazebo.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
More than 75% of The Scala sold
MORE than 75 per cent of the Hong Leong group's latest residential project, The Scala, has been sold at prices averaging $1,150 per square foot.
The 468-unit development in Serangoon Avenue 3 was publicly launched yesterday.
Hong Leong said yesterday that the units sold at the 99-year leasehold project are spread across five residential towers that feature one to four-bedroom units ranging from 474 square feet to 2,142 sq ft.
Buyers comprise a mix of Housing & Development Board upgraders and investors, with the majority being Singaporeans.
Betsy Chng, Hong Leong's head of sales and marketing, attributed the strong response to the project's location, unique features, finishing and pricing.
The Scala is next to the Circle Line's Lorong Chuan MRT Station and near several schools, including St Gabriel's Primary, Yangzheng Primary, Nanyang Junior College, the Australian International School, Stamford American International School and Lycee Francais de Singapour.
It is also close to a bus and MRT interchange at Serangoon Central, and the soon-to-be-opened NEX mega mall.
The project is slated for completion in the first quarter of 2014. Apart from the usual condominium facilities, The Scala will have features such as pavilions with wood-fired pizza ovens and teppanyaki hotplates, a Harvest Garden and a Green Gazebo.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Real estate gets a new gauge of market pulse
Business Times - 29 Jul 2010
Real estate gets a new gauge of market pulse
New industry-backed index to measure sentiment shows mood has sobered slightly
By KALPANA RASHIWALA
(SINGAPORE) In a historic move, the Real Estate Developers' Association of Singapore has teamed up with the National University of Singapore's Department of Real Estate (DRE) to develop a Real Estate Sentiment Index (RESI), and it shows a lower reading for the second quarter of this year than for the first quarter.
Developers and industry players continue to express positive sentiments but expect market conditions to be less robust, Redas and DRE said.
More respondents were still positive (rather than negative) on the overall performance of the prime and suburban private residential markets over the next six months but the consensus as indicated by net balances weakened in the second quarter compared with the first quarter.
On the other hand, the net balance for offices improved substantially, in tandem with improving sentiment in this segment in April-June.
The survey also found that 51 per cent of developers polled for Q2 expect price growth for new residential launches, down from 85 per cent in Q1.
About 68 per cent of developers surveyed in Q2 expect more units to be launched over the next six months, down from 83 per cent in the Jan-March period.
The findings of the survey will be officially released this morning at the Redas Property Prospects Update 2010 seminar at Orchard Hotel.
Some market watchers welcomed Redas efforts in coming up with an objective method of gauging the confidence level of senior executives of property developers - and making it public. 'It's good to hear from the horse's mouth,' said DTZ executive director Ong Choon Fah.
Redas CEO Steven Choo noted that 'while business expectation surveys are available for the manufacturing and service industries, there is currently no indicator specifically tracking sentiment in the fast-paced real estate market of Singapore'.
Some industry watchers also pointed to the refreshing change at Redas. 'Previously, something like this, showing a slowdown in sentiment, would have been considered extremely sensitive and developers may have tried to hide it. Now they're more open about it,' said an observer.
Mrs Ong said: 'Releasing the RESI shows just how far Redas has come. It reflects the maturity of the property market and stakeholders. It's important to give the true market signals to all stakeholders - including home buyers and government - if we're going to have a sustainable property market based on sound fundamentals.'
Redas and DRE developed the quarterly structured-questionnaire survey, which is conducted among senior executives of Redas member firms - mostly developers but also property consultants, architects, quantity surveyors and other professionals.
Dr Choo, who assumed the post of Redas CEO nearly a year ago, says: 'The partnership between NUS and Redas has ensured academic rigour and added credibility to the new index. We are confident that in time, RESI will become an authoritative index and a highly-valued forward indicator for the property market, as well as an invaluable tool to guide the market and industry players, including investors and policymakers.'
Redas received about 70 responses for each of the Q1 and Q2 surveys - from largely the same people.
The survey measures respondents' perceptions of current market conditions/ performance (now, compared with six months ago) and future expectations (over the next six months).
The RESI comprises three indices. The Current Sentiment Index, where respondents are asked to rate overall Singapore real estate market conditions now compared with six months ago, fell from 7.2 in Q1 to 5.8 in Q2. The Future Sentiment Index, where respondents rate overall property market conditions over the next six months, also slipped from 6.4 to 5.9.
As a result, the Composite Sentiment Index, which is the average of the two indices, declined from 6.8 in Q1 to 5.9 in Q2.
The index ranges from 0 to 10, with a score below 5 indicating deteriorating market conditions. A score above 5 shows improving market conditions. The Q2 score shows that developers and industry players continue to express positive sentiments and expect market conditions to remain favourable, but less robust than before.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Real estate gets a new gauge of market pulse
New industry-backed index to measure sentiment shows mood has sobered slightly
By KALPANA RASHIWALA
(SINGAPORE) In a historic move, the Real Estate Developers' Association of Singapore has teamed up with the National University of Singapore's Department of Real Estate (DRE) to develop a Real Estate Sentiment Index (RESI), and it shows a lower reading for the second quarter of this year than for the first quarter.
Developers and industry players continue to express positive sentiments but expect market conditions to be less robust, Redas and DRE said.
More respondents were still positive (rather than negative) on the overall performance of the prime and suburban private residential markets over the next six months but the consensus as indicated by net balances weakened in the second quarter compared with the first quarter.
On the other hand, the net balance for offices improved substantially, in tandem with improving sentiment in this segment in April-June.
The survey also found that 51 per cent of developers polled for Q2 expect price growth for new residential launches, down from 85 per cent in Q1.
About 68 per cent of developers surveyed in Q2 expect more units to be launched over the next six months, down from 83 per cent in the Jan-March period.
The findings of the survey will be officially released this morning at the Redas Property Prospects Update 2010 seminar at Orchard Hotel.
Some market watchers welcomed Redas efforts in coming up with an objective method of gauging the confidence level of senior executives of property developers - and making it public. 'It's good to hear from the horse's mouth,' said DTZ executive director Ong Choon Fah.
Redas CEO Steven Choo noted that 'while business expectation surveys are available for the manufacturing and service industries, there is currently no indicator specifically tracking sentiment in the fast-paced real estate market of Singapore'.
Some industry watchers also pointed to the refreshing change at Redas. 'Previously, something like this, showing a slowdown in sentiment, would have been considered extremely sensitive and developers may have tried to hide it. Now they're more open about it,' said an observer.
Mrs Ong said: 'Releasing the RESI shows just how far Redas has come. It reflects the maturity of the property market and stakeholders. It's important to give the true market signals to all stakeholders - including home buyers and government - if we're going to have a sustainable property market based on sound fundamentals.'
Redas and DRE developed the quarterly structured-questionnaire survey, which is conducted among senior executives of Redas member firms - mostly developers but also property consultants, architects, quantity surveyors and other professionals.
Dr Choo, who assumed the post of Redas CEO nearly a year ago, says: 'The partnership between NUS and Redas has ensured academic rigour and added credibility to the new index. We are confident that in time, RESI will become an authoritative index and a highly-valued forward indicator for the property market, as well as an invaluable tool to guide the market and industry players, including investors and policymakers.'
Redas received about 70 responses for each of the Q1 and Q2 surveys - from largely the same people.
The survey measures respondents' perceptions of current market conditions/ performance (now, compared with six months ago) and future expectations (over the next six months).
The RESI comprises three indices. The Current Sentiment Index, where respondents are asked to rate overall Singapore real estate market conditions now compared with six months ago, fell from 7.2 in Q1 to 5.8 in Q2. The Future Sentiment Index, where respondents rate overall property market conditions over the next six months, also slipped from 6.4 to 5.9.
As a result, the Composite Sentiment Index, which is the average of the two indices, declined from 6.8 in Q1 to 5.9 in Q2.
The index ranges from 0 to 10, with a score below 5 indicating deteriorating market conditions. A score above 5 shows improving market conditions. The Q2 score shows that developers and industry players continue to express positive sentiments and expect market conditions to remain favourable, but less robust than before.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
TODAY ONLINE : Thousands of housing agents get the axe
Thousands of housing agents get the axe
Real estate firms take action ahead of implementation of new rules
05:55 AM Jul 28, 2010
by Joanne Chan
SINGAPORE - Real estate firms have axed thousands of housing agents ahead of enhanced regulations aimed at improving the professionalism of the industry.
Under a new regulatory framework to be implemented by the Ministry of National Development (MND), a statutory board known as the Council for Estate Agencies will be set up. MediaCorp understands that a Bill could be introduced in Parliament as early as October.
When contacted, MND would only say that a Bill will be introduced later this year, with the council operational by the end of the year. Under the new framework, all agents must register with the council before they are allowed to practice. In the meantime, MND had asked estate agencies to submit their agents' particulars and qualifications.
Some firms have taken the opportunity to do some housekeeping. Dennis Wee Group (DWG) updated the particulars of all its 5,000 agents earlier this month. They were also briefed on the new requirements.
DWG director Chris Koh said as a result of the exercise, some 1,500 agents were axed. They were mostly inactive or part-time agents.
"With the new central registry, where a member of public can turn to the registry and see if you are an agent, it's going to be difficult for those with a full-time job to moonlight as an agent."
Under the new guidelines, agents will also be required to pass a mandatory industry exam.
Only those with an industry certification will be exempted.
Rather than wait, DWG has asked all its agents to equip themselves - either with the Certified Estate Agent Course or the Common Examination for Salespersons.
Another real estate agency, PropNex, has also taken action.
Its CEO, Mohamed Ismail, said some 1,200 agents were terminated, either because they're inactive or unwilling to take up personal indemnity insurance. The insurance covers any financial liabilities arising from housing transactions.
Agents who are associated with moneylending have also been let go. "We have made it a policy that any PropNex agent, who has a moneylending licence, will not be allowed to practice because we do see a conflict of interest."
ERA, which has about 3,000 active agents, says it removes about 100 inactive agents from its database every month. Associate director of ERA Asia-Pacific, Mr Eugene Lim, said the company has also been training its agents for the Common Examination for Salespersons. To date, more than 2,500 ERA agents have taken the exam.
HSR, which represents about 7,000 agents, says it regularly checks its database for inactive agents, who are then put on a passive list and sent reminders to go for retraining.
There are an estimated 30,000 housing agents in Singapore.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
Real estate firms take action ahead of implementation of new rules
05:55 AM Jul 28, 2010
by Joanne Chan
SINGAPORE - Real estate firms have axed thousands of housing agents ahead of enhanced regulations aimed at improving the professionalism of the industry.
Under a new regulatory framework to be implemented by the Ministry of National Development (MND), a statutory board known as the Council for Estate Agencies will be set up. MediaCorp understands that a Bill could be introduced in Parliament as early as October.
When contacted, MND would only say that a Bill will be introduced later this year, with the council operational by the end of the year. Under the new framework, all agents must register with the council before they are allowed to practice. In the meantime, MND had asked estate agencies to submit their agents' particulars and qualifications.
Some firms have taken the opportunity to do some housekeeping. Dennis Wee Group (DWG) updated the particulars of all its 5,000 agents earlier this month. They were also briefed on the new requirements.
DWG director Chris Koh said as a result of the exercise, some 1,500 agents were axed. They were mostly inactive or part-time agents.
"With the new central registry, where a member of public can turn to the registry and see if you are an agent, it's going to be difficult for those with a full-time job to moonlight as an agent."
Under the new guidelines, agents will also be required to pass a mandatory industry exam.
Only those with an industry certification will be exempted.
Rather than wait, DWG has asked all its agents to equip themselves - either with the Certified Estate Agent Course or the Common Examination for Salespersons.
Another real estate agency, PropNex, has also taken action.
Its CEO, Mohamed Ismail, said some 1,200 agents were terminated, either because they're inactive or unwilling to take up personal indemnity insurance. The insurance covers any financial liabilities arising from housing transactions.
Agents who are associated with moneylending have also been let go. "We have made it a policy that any PropNex agent, who has a moneylending licence, will not be allowed to practice because we do see a conflict of interest."
ERA, which has about 3,000 active agents, says it removes about 100 inactive agents from its database every month. Associate director of ERA Asia-Pacific, Mr Eugene Lim, said the company has also been training its agents for the Common Examination for Salespersons. To date, more than 2,500 ERA agents have taken the exam.
HSR, which represents about 7,000 agents, says it regularly checks its database for inactive agents, who are then put on a passive list and sent reminders to go for retraining.
There are an estimated 30,000 housing agents in Singapore.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
ST : Just two bids for one-north office site
Jul 28, 2010
Just two bids for one-north office site
By Joyce Teo
A TENDER for a large high-rise commercial site in the 200ha innovation and research hub one-north has attracted just two bidders.
Ho Bee Developments put in the top bid of $410.99 million or $342.20 per sq ft per plot ratio (psf ppr).
That is about 7 per cent above the second highest bid of $384 million or $319.80 psf ppr from Mapletree Trustee.
Ho Bee's general manager of marketing and business development, Mr Chong Hock Chang, said its plan is to rent out the office units for recurring income, and it is looking at achieving office rents of $5 psf.
'We believe we can build an iconic building on this landmark site,' he said.
The 99-year leasehold site has been on the Government's reserve list of sites since April 2008. A tender was finally triggered in May when Mapletree committed to a minimum bid of $320 million, or $266 psf ppr, which the Government found acceptable.
The site of about 1.8ha is located at the junction of North Buona Vista Road and Commonwealth Avenue West and is near the Buona Vista MRT station. It has a
potential yield of 111,565 sq m, with 2,000 sq m being set aside for retail use.
JTC said the building will provide office space outside the Central Business District for the business support companies of the research institutes at one-north.
Cushman & Wakefield managing director Donald Han said the bids were within the expected range.
The low level of interest is due to the huge price sum involved, he added.
Also, 'as an office product, it is untested in the area, which is predominantly industrial in nature', he said.
CBRE Research said the development cost for a predominantly office tower is about $900 psf, based on the top bid.
Just under 1 million sq ft of net lettable area of commercial space could be developed on this parcel, said its executive director Li Hiaw Ho.
'This would facilitate the expansion of research and development functions at one-north and serve as an alternative source of office supply post-2013 in the Buona Vista sub-regional centre,' he said.
Mr Han said current rents in the area are about $3.80 psf to $4.50 psf.
As office rents have bottomed out in the second quarter, they are expected to rise in time. 'The rental yield would therefore be in excess of 5 per cent,' said Mr Han.
Just two bids for one-north office site
By Joyce Teo
A TENDER for a large high-rise commercial site in the 200ha innovation and research hub one-north has attracted just two bidders.
Ho Bee Developments put in the top bid of $410.99 million or $342.20 per sq ft per plot ratio (psf ppr).
That is about 7 per cent above the second highest bid of $384 million or $319.80 psf ppr from Mapletree Trustee.
Ho Bee's general manager of marketing and business development, Mr Chong Hock Chang, said its plan is to rent out the office units for recurring income, and it is looking at achieving office rents of $5 psf.
'We believe we can build an iconic building on this landmark site,' he said.
The 99-year leasehold site has been on the Government's reserve list of sites since April 2008. A tender was finally triggered in May when Mapletree committed to a minimum bid of $320 million, or $266 psf ppr, which the Government found acceptable.
The site of about 1.8ha is located at the junction of North Buona Vista Road and Commonwealth Avenue West and is near the Buona Vista MRT station. It has a
potential yield of 111,565 sq m, with 2,000 sq m being set aside for retail use.
JTC said the building will provide office space outside the Central Business District for the business support companies of the research institutes at one-north.
Cushman & Wakefield managing director Donald Han said the bids were within the expected range.
The low level of interest is due to the huge price sum involved, he added.
Also, 'as an office product, it is untested in the area, which is predominantly industrial in nature', he said.
CBRE Research said the development cost for a predominantly office tower is about $900 psf, based on the top bid.
Just under 1 million sq ft of net lettable area of commercial space could be developed on this parcel, said its executive director Li Hiaw Ho.
'This would facilitate the expansion of research and development functions at one-north and serve as an alternative source of office supply post-2013 in the Buona Vista sub-regional centre,' he said.
Mr Han said current rents in the area are about $3.80 psf to $4.50 psf.
As office rents have bottomed out in the second quarter, they are expected to rise in time. 'The rental yield would therefore be in excess of 5 per cent,' said Mr Han.
BT : Ho Bee Investment puts in top bid for Buona Vista site
Business Times - 28 Jul 2010
Ho Bee Investment puts in top bid for Buona Vista site
By EMILYN YAP
HO Bee Investment is planning to invest about $1 billion to develop a commercial project at North Buona Vista Drive.
The company told BT this after it submitted the top bid for a 99-year leasehold commercial plot located in the one-north research area yesterday.
The tender for the 1.8 hectare site attracted two bids. Ho Bee's was $410.99 million, which works out to $342 per sq ft per plot ration (psf ppr).
The second bid came from Mapletree Investments, at $384 million or $320 psf ppr.
The site has a maximum allowable gross floor area (GFA) of 1.2 million sq ft. Ho Bee hopes to set aside some 1-2 per cent of space in the commercial development for retail shops. It is also exploring the possibility of having service apartments within the development.
The site has a good size for creating 'a landmark building in a very attractive location', Ho Bee said. It plans to lease the development out for recurring income when it is ready in about four years' time.
Market watchers had expected demand for the site to be lukewarm given its large size, which would involve a huge capital commitment.
But the site has other attractions: it is near Buona Vista MRT Station and lies within a growing research cluster for the biomedical, infocommunication and media industries.
CB Richard Ellis Research executive director Li Hiaw Ho believes the site can yield a net lettable commercial area of just under a million sq ft. 'This would facilitate the expansion of R&D functions at one-north and serve as an alternative source of office supply post- 2013 in the Buona Vista sub-regional centre.'
Sentiment in the commercial property market has picked up of late. Official figures show that office rents increased 1.1 per cent in the second quarter from a quarter ago. Prices of office space climbed 4.6 per cent.
There was also a net increase of 398,264 sq ft in office space demand in the second quarter.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Ho Bee Investment puts in top bid for Buona Vista site
By EMILYN YAP
HO Bee Investment is planning to invest about $1 billion to develop a commercial project at North Buona Vista Drive.
The company told BT this after it submitted the top bid for a 99-year leasehold commercial plot located in the one-north research area yesterday.
The tender for the 1.8 hectare site attracted two bids. Ho Bee's was $410.99 million, which works out to $342 per sq ft per plot ration (psf ppr).
The second bid came from Mapletree Investments, at $384 million or $320 psf ppr.
The site has a maximum allowable gross floor area (GFA) of 1.2 million sq ft. Ho Bee hopes to set aside some 1-2 per cent of space in the commercial development for retail shops. It is also exploring the possibility of having service apartments within the development.
The site has a good size for creating 'a landmark building in a very attractive location', Ho Bee said. It plans to lease the development out for recurring income when it is ready in about four years' time.
Market watchers had expected demand for the site to be lukewarm given its large size, which would involve a huge capital commitment.
But the site has other attractions: it is near Buona Vista MRT Station and lies within a growing research cluster for the biomedical, infocommunication and media industries.
CB Richard Ellis Research executive director Li Hiaw Ho believes the site can yield a net lettable commercial area of just under a million sq ft. 'This would facilitate the expansion of R&D functions at one-north and serve as an alternative source of office supply post- 2013 in the Buona Vista sub-regional centre.'
Sentiment in the commercial property market has picked up of late. Official figures show that office rents increased 1.1 per cent in the second quarter from a quarter ago. Prices of office space climbed 4.6 per cent.
There was also a net increase of 398,264 sq ft in office space demand in the second quarter.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Building of Labrador nature walk begins
Business Times - 28 Jul 2010
Building of Labrador nature walk begins
CONSTRUCTION for the long-awaited Labrador Nature and Coastal Walk began yesterday and by the first half of 2012, the public will be able to explore new nature walks over the sea, mangrove and forested areas.
The Walk at the Labrador Nature Reserve will cost $13.5 million, and is part of the Parks and Waterbodies Plan first announced by Urban Renewal Authority in 2002, which aims to enhance Singapore's green spaces and waterbodies islandwide.
As an extension of the Southern Ridges, the Walk will link the Southern Ridges to the Southern Waterfront via a series of connections from Alexandra Road to the waterfront at Bukit Chermin, and will enable visitors to experience 'diverse settings comprising hills, mangroves and coastlines all in a single day', according to an Urban Redevelopment Authority press release.
URA chief executive Cheong Koon Hean said: 'The Labrador Nature and Coastal Walk will allow visitors to get even closer to nature and open up the coastal areas at Bukit Chermin, which are currently inaccessible.'
The 2.1 km walk comprises three thematically distinct trails. First is the Alexandra Road garden trail between Depot Road and Telok Blangah Road. The second, the Berlayer Creek mangrove trail, begins at the area surrounding the future Labrador Park MRT station. The third is the Bukit Chermin Harbour View boardwalk over the sea, which will connect Labrador Park to the Reflections at Keppel Bay condominium.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Building of Labrador nature walk begins
CONSTRUCTION for the long-awaited Labrador Nature and Coastal Walk began yesterday and by the first half of 2012, the public will be able to explore new nature walks over the sea, mangrove and forested areas.
The Walk at the Labrador Nature Reserve will cost $13.5 million, and is part of the Parks and Waterbodies Plan first announced by Urban Renewal Authority in 2002, which aims to enhance Singapore's green spaces and waterbodies islandwide.
As an extension of the Southern Ridges, the Walk will link the Southern Ridges to the Southern Waterfront via a series of connections from Alexandra Road to the waterfront at Bukit Chermin, and will enable visitors to experience 'diverse settings comprising hills, mangroves and coastlines all in a single day', according to an Urban Redevelopment Authority press release.
URA chief executive Cheong Koon Hean said: 'The Labrador Nature and Coastal Walk will allow visitors to get even closer to nature and open up the coastal areas at Bukit Chermin, which are currently inaccessible.'
The 2.1 km walk comprises three thematically distinct trails. First is the Alexandra Road garden trail between Depot Road and Telok Blangah Road. The second, the Berlayer Creek mangrove trail, begins at the area surrounding the future Labrador Park MRT station. The third is the Bukit Chermin Harbour View boardwalk over the sea, which will connect Labrador Park to the Reflections at Keppel Bay condominium.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
CNA : S'pore real estate firms axe thousands of agents ahead of new MND regulations
S'pore real estate firms axe thousands of agents ahead of new MND regulations
By Joanne Chan | Posted: 27 July 2010 2026 hrs
SINGAPORE: Real estate firms in Singapore have axed thousands of agents, ahead of the regulatory framework to be implemented by the National Development Ministry.
The framework seeks to professionalise the industry, with the introduction of a new statutory board, known as the Council for Estate Agencies, and enhanced regulatory guidelines.
Channel NewsAsia understands that a Bill for the framework could be introduced in Parliament as early as October.
When contacted, the Ministry would only say that a Bill will be introduced in the second half of this year, with the Council operational by year-end.
Director of Dennis Wee Group, Chris Koh said: "It's going to be difficult for agents with a full-time job while moonlighting as an agent. Because the moment the employer goes into this public registry, the employer will know that you are an agent, and you stand to lose your existing full-time job."
Earlier this month, Dennis Wee Group's (DWG) housing agents were called back to their office to update their personal information and be briefed on the requirements of the new regulatory framework. The information collected was then submitted to the National Development Ministry, to be part of a new central registry of all agents.
1,500 of 5,000 agents were axed as a result of the exercise - mostly inactive or part-time staff.
Under the new guidelines, agents will also be required to pass a mandatory industry examination. Only those who already have industry certification will be exempted.
Rather than wait for the new examination, DWG has asked all its agents to get themselves certified with either the Certified Estate Agent Course or the Common Examination for Salespersons.
Another firm, PropNex, terminated 1,200 agents at the start of this year, either because they were inactive or unwilling to take up personal indemnity insurance.
The insurance covers any financial liabilities arising from housing transactions.
Agents associated with money-lending were also released.
CEO of PropNex, Mohd Ismail said: "Any PropNex agent who has a money-lending licence will not be allowed to practice. He or she will have to make a decision, because we do see a conflict of interest. We have terminated an agent who has been very active, however, he wanted to maintain both and that was not acceptable to us."
ERA, which has about 3,000 active agents, says it removes about 100 inactive agents from its database every month.
Associate director of ERA Asia Pacific, Eugene Lim said the company has also been conducting training to prepare their agents for the Common Examination for Salespersons.
To date, more than 2,500 ERA agents have taken this exam, with some having to do retakes for the paper.
HSR, which represents some 7,000 agents, says it regularly checks its database for inactive agents who are then put on a passive list and sent reminders to go for retraining.
There are an estimated 30,000 housing agents in Singapore.
The National Development Ministry has also been in consultation with various real estate firms to standardise documents used in the trade.
These include documents governing an agent's exclusive right to sell a property.
Currently, each agency has its own terms and conditions, which can be confusing for consumers.
- CNA/jm
By Joanne Chan | Posted: 27 July 2010 2026 hrs
SINGAPORE: Real estate firms in Singapore have axed thousands of agents, ahead of the regulatory framework to be implemented by the National Development Ministry.
The framework seeks to professionalise the industry, with the introduction of a new statutory board, known as the Council for Estate Agencies, and enhanced regulatory guidelines.
Channel NewsAsia understands that a Bill for the framework could be introduced in Parliament as early as October.
When contacted, the Ministry would only say that a Bill will be introduced in the second half of this year, with the Council operational by year-end.
Director of Dennis Wee Group, Chris Koh said: "It's going to be difficult for agents with a full-time job while moonlighting as an agent. Because the moment the employer goes into this public registry, the employer will know that you are an agent, and you stand to lose your existing full-time job."
Earlier this month, Dennis Wee Group's (DWG) housing agents were called back to their office to update their personal information and be briefed on the requirements of the new regulatory framework. The information collected was then submitted to the National Development Ministry, to be part of a new central registry of all agents.
1,500 of 5,000 agents were axed as a result of the exercise - mostly inactive or part-time staff.
Under the new guidelines, agents will also be required to pass a mandatory industry examination. Only those who already have industry certification will be exempted.
Rather than wait for the new examination, DWG has asked all its agents to get themselves certified with either the Certified Estate Agent Course or the Common Examination for Salespersons.
Another firm, PropNex, terminated 1,200 agents at the start of this year, either because they were inactive or unwilling to take up personal indemnity insurance.
The insurance covers any financial liabilities arising from housing transactions.
Agents associated with money-lending were also released.
CEO of PropNex, Mohd Ismail said: "Any PropNex agent who has a money-lending licence will not be allowed to practice. He or she will have to make a decision, because we do see a conflict of interest. We have terminated an agent who has been very active, however, he wanted to maintain both and that was not acceptable to us."
ERA, which has about 3,000 active agents, says it removes about 100 inactive agents from its database every month.
Associate director of ERA Asia Pacific, Eugene Lim said the company has also been conducting training to prepare their agents for the Common Examination for Salespersons.
To date, more than 2,500 ERA agents have taken this exam, with some having to do retakes for the paper.
HSR, which represents some 7,000 agents, says it regularly checks its database for inactive agents who are then put on a passive list and sent reminders to go for retraining.
There are an estimated 30,000 housing agents in Singapore.
The National Development Ministry has also been in consultation with various real estate firms to standardise documents used in the trade.
These include documents governing an agent's exclusive right to sell a property.
Currently, each agency has its own terms and conditions, which can be confusing for consumers.
- CNA/jm
ST : Welcome to new look Serangoon North Village
Jul 26, 2010
Welcome to new look Serangoon North Village
By Andrea Ong
MERCHANTS of the former Serangoon North Neighbourhood Centre are giving the thumbs up to their newly upgraded shopfronts and walkways.
The area, known for its many pet shops, has been renamed Serangoon North Village under the Housing Board's Revitalisation of Shops scheme.
At a dinner marking the completion of the two-year $6-million project, Aljunied GRC MP Lim Hwee Hua said it was important to give new life to shops in the area.
'As you have more malls coming up, the shops experience competition. Therefore we want to ensure that they will always remain attractive to residents because they are actually more conveniently located,' said the Minister in the Prime Minister's Office.
Mrs Lim and fellow Aljunied GRC MPs - Foreign Minister George Yeo, Senior Minister of State (Foreign Affairs) Zainul Abidin Rasheed, Madam Cynthia Phua and Mr Yeo Guat Kwang - launched a sign with the area's new name located on top of Block 153 Serangoon North Avenue 1.
The revitalisation scheme upgrades the shopping environment and business operations of shops in town or neighbourhood centres. Works include flattening uneven ground, building walkways and creating spaces for residents to mingle.
The new Central Plaza between Blocks 151 and 152, for instance, has space for carnivals and performances. There is also a 'Pet Walk' promenade for pet shops.
'The grassy ground outside our shops used to be very uneven. It would also get muddy and smelly when it rained,' said Dr Edmond Tan, 51. He runs a veterinary surgery in the area. With the land flattened and walkways built, it has become more accessible to the elderly.
Serangoon North is one of three sites with such upgrading works completed this year. The others are Teck Whye Shopping Centre and Bedok Town Centre.
Dr Tan, who is first vice-president of the Serangoon North Merchants' Association, worked with the HDB and Aljunied Town Council to implement the scheme.
It was not easy carrying out the works, he admitted. The association took six months to persuade the 123 shops in the area to commit to the scheme.
Under the scheme, the HDB and town council foot half the bill, up to $10,000 for items directly benefiting shops such as awnings. Shop owners bear the rest of the cost.
Shop owners and residents also had to put up with the inconvenience of upgrading works.
For Madam Toh Ah Hong, fewer customers came to her incense shop once upgrading started.
'But business is picking up now, especially on weekends. It's cleaner and roomier,' said the 47-year-old.
Mrs Lim said the town council tried to dovetail the project with its regular upgrading works and the Lift Upgrading Programme. This minimised inconvenience for residents and shop owners.
Welcome to new look Serangoon North Village
By Andrea Ong
MERCHANTS of the former Serangoon North Neighbourhood Centre are giving the thumbs up to their newly upgraded shopfronts and walkways.
The area, known for its many pet shops, has been renamed Serangoon North Village under the Housing Board's Revitalisation of Shops scheme.
At a dinner marking the completion of the two-year $6-million project, Aljunied GRC MP Lim Hwee Hua said it was important to give new life to shops in the area.
'As you have more malls coming up, the shops experience competition. Therefore we want to ensure that they will always remain attractive to residents because they are actually more conveniently located,' said the Minister in the Prime Minister's Office.
Mrs Lim and fellow Aljunied GRC MPs - Foreign Minister George Yeo, Senior Minister of State (Foreign Affairs) Zainul Abidin Rasheed, Madam Cynthia Phua and Mr Yeo Guat Kwang - launched a sign with the area's new name located on top of Block 153 Serangoon North Avenue 1.
The revitalisation scheme upgrades the shopping environment and business operations of shops in town or neighbourhood centres. Works include flattening uneven ground, building walkways and creating spaces for residents to mingle.
The new Central Plaza between Blocks 151 and 152, for instance, has space for carnivals and performances. There is also a 'Pet Walk' promenade for pet shops.
'The grassy ground outside our shops used to be very uneven. It would also get muddy and smelly when it rained,' said Dr Edmond Tan, 51. He runs a veterinary surgery in the area. With the land flattened and walkways built, it has become more accessible to the elderly.
Serangoon North is one of three sites with such upgrading works completed this year. The others are Teck Whye Shopping Centre and Bedok Town Centre.
Dr Tan, who is first vice-president of the Serangoon North Merchants' Association, worked with the HDB and Aljunied Town Council to implement the scheme.
It was not easy carrying out the works, he admitted. The association took six months to persuade the 123 shops in the area to commit to the scheme.
Under the scheme, the HDB and town council foot half the bill, up to $10,000 for items directly benefiting shops such as awnings. Shop owners bear the rest of the cost.
Shop owners and residents also had to put up with the inconvenience of upgrading works.
For Madam Toh Ah Hong, fewer customers came to her incense shop once upgrading started.
'But business is picking up now, especially on weekends. It's cleaner and roomier,' said the 47-year-old.
Mrs Lim said the town council tried to dovetail the project with its regular upgrading works and the Lift Upgrading Programme. This minimised inconvenience for residents and shop owners.
BT : HDB resale prices should stabilise in a year or so: Mah
Business Times - 26 Jul 2010
HDB resale prices should stabilise in a year or so: Mah
By EMILYN YAP
(SINGAPORE) Prices of resale flats should stabilise in a year or so as the Housing & Development Board (HDB) releases a record number of new flats into the market.
This was according to National Development Minister Mah Bow Tan, who spoke on the sidelines of HDB's 50th anniversary celebrations at Tampines yesterday.
Resale flat prices have been climbing in the last few quarters and they rose 4.1 per cent in Q2 from Q1 to a new high.
There is an 'imbalance' in the resale flat market, Mr Mah said. With the economy doing well, demand for resale flats from both first-time buyers and upgraders has been strong.
'I hope that with HDB pushing out a record number of flats, this imbalance will be addressed over the medium term,' he said. There should be stability 'maybe in another year or so'.
HDB will be launching 16,000 build-to-order (BTO) flats this year, 80 per cent more than in the previous year. Another 4,700 flats from executive condominium projects and the Design, Build and Sell scheme are potentially coming up.
It would be hard to say how resale flat prices will move in the short term, Mr Mah said. 'The economy for the first half was very strong, but all indications are that it may not be so smooth going in the second half.'
If the economy cools, 'the demand for housing will also slow down,' he said.
Accompanying the rise in resale flat prices was a hike in cash premiums which buyers pay. The median cash over valuation (COV) across all resale deals in Q2 was $30,000, up from Q1's $25,000.
Rising COVs are a concern but they are determined by demand and supply in the market and the government cannot intervene, Mr Mah said.
He advised first-time buyers to turn to the BTO market 'where there is zero COV, where the prices are lower, where the flats are of newer designs,' he said.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
HDB resale prices should stabilise in a year or so: Mah
By EMILYN YAP
(SINGAPORE) Prices of resale flats should stabilise in a year or so as the Housing & Development Board (HDB) releases a record number of new flats into the market.
This was according to National Development Minister Mah Bow Tan, who spoke on the sidelines of HDB's 50th anniversary celebrations at Tampines yesterday.
Resale flat prices have been climbing in the last few quarters and they rose 4.1 per cent in Q2 from Q1 to a new high.
There is an 'imbalance' in the resale flat market, Mr Mah said. With the economy doing well, demand for resale flats from both first-time buyers and upgraders has been strong.
'I hope that with HDB pushing out a record number of flats, this imbalance will be addressed over the medium term,' he said. There should be stability 'maybe in another year or so'.
HDB will be launching 16,000 build-to-order (BTO) flats this year, 80 per cent more than in the previous year. Another 4,700 flats from executive condominium projects and the Design, Build and Sell scheme are potentially coming up.
It would be hard to say how resale flat prices will move in the short term, Mr Mah said. 'The economy for the first half was very strong, but all indications are that it may not be so smooth going in the second half.'
If the economy cools, 'the demand for housing will also slow down,' he said.
Accompanying the rise in resale flat prices was a hike in cash premiums which buyers pay. The median cash over valuation (COV) across all resale deals in Q2 was $30,000, up from Q1's $25,000.
Rising COVs are a concern but they are determined by demand and supply in the market and the government cannot intervene, Mr Mah said.
He advised first-time buyers to turn to the BTO market 'where there is zero COV, where the prices are lower, where the flats are of newer designs,' he said.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
ST : Chinese developers eye S'pore property
Jul 26, 2010
Chinese developers eye S'pore property
Cash-rich firms spot growth opportunity here as cooling steps take effect at home
By Esther Teo
CHINESE developers eager for a slice of the red-hot housing pie are nudging their way into Singapore's property scene.
Chinese developers bid for at least 10 out of the 15 residential land sites put up for tender in the Government Land Sales (GLS) programme for the first half of this year.
They have landed three plots and narrowly missed out with second-place bids on at least two other sites.
MCC Land and Qingjian Group are two of the most active, although lesser-known Ningbo Construction Group unsuccessfully bid for a private residential plot in Tampines Road in May.
Property experts say this might herald a growing trend as Chinese developers, cashed up and eager to mitigate cooling measures that could derail property prices in China, shift their focus to Singapore where prices are expected to keep rising.
Their aggressive bidding could also be due to their lack of a landbank compared with local developers, and that many of their initial bids had failed to top the tender, experts say.
Mr Colin Tan, research and consultancy director of Chesterton Suntec International, said: 'Singapore is preferred as it is seen as a stable and safe market.
'Chinese developers will probably expand their presence here and I won't be surprised if we see more mainland firms coming into the property market.'
DMG & Partners property analyst Brandon Lee said that as most of the Chinese firms started out in the construction business, progressing to property development was not surprising as the margins were much higher.
'There are also an increasing number of mainland Chinese buyers entering the market, making up about 15 per cent of total foreign buyers, so the Chinese developers might be hoping to target this segment,' he added.
MCC Land's first attempt at a GLS tender was in March, for an executive condo site near Buangkok MRT Station. It fell a fraction short, tendering 1.4 per cent below the top bid of $193.3 million.
But it won the day with a $127.8 million bid for a site at Yishun, also in March. Last month, the firm clinched a Sembawang Road/Canberra Drive site for $131.7 million.
MCC Land is part of the Chinese state-owned enterprise Metallurgical Corporation of China (MCC Group) - a Fortune 500 company listed on the Shanghai and Hong Kong bourses. It is involved in engineering, procurement and construction, mining and property development.
While MCC Land is a new entrant, MCC Group's local construction unit, China Jingye Engineering Corporation, has been doing business here for almost 14 years. It was the main contractor for Universal Studios at Resorts World Sentosa.
MCC Land managing director Tan Zhiyong said that it was a natural progression to branch out into property development as it expanded its footprint here.
Although the firm is mostly involved in the residential market, he does not rule out entering the commercial sector if the opportunity arises.
'We don't have a fixed goal in terms of what we want to accomplish... If a good opportunity arises, we will act but this also depends on how the market moves, the timing and the location of a site,' he said.
Mr Tan added that while he does not expect property prices here to increase as fast in the rest of the year as they did in the first half, he expects values to remain stable and so might bid for more sites.
The other main player - the Qingjian group - also began operations here as a contractor for HDB projects. It marked its first foray into property development in 2008 with Natura Loft - an HDB design, build and sell scheme in Bishan.
Qingdao Construction - part of the Qingjian Group - has since clinched a site next to Potong Pasir MRT station for $113.7 million. Its bid of $607 per sq ft per plot ratio was a record land price for the area and ahead of more established property players like Frasers Centrepoint, Far East Organization and Hong Leong Holdings.
Qingdao Construction director Zuo Haibin said Singapore's growing economy provided a stable investment platform. He hopes to at least double the size of the firm's development arm in the next year and has identified sites in the upcoming GLS programme the firm may bid for.
esthert@sph.com.sg
Chinese developers eye S'pore property
Cash-rich firms spot growth opportunity here as cooling steps take effect at home
By Esther Teo
CHINESE developers eager for a slice of the red-hot housing pie are nudging their way into Singapore's property scene.
Chinese developers bid for at least 10 out of the 15 residential land sites put up for tender in the Government Land Sales (GLS) programme for the first half of this year.
They have landed three plots and narrowly missed out with second-place bids on at least two other sites.
MCC Land and Qingjian Group are two of the most active, although lesser-known Ningbo Construction Group unsuccessfully bid for a private residential plot in Tampines Road in May.
Property experts say this might herald a growing trend as Chinese developers, cashed up and eager to mitigate cooling measures that could derail property prices in China, shift their focus to Singapore where prices are expected to keep rising.
Their aggressive bidding could also be due to their lack of a landbank compared with local developers, and that many of their initial bids had failed to top the tender, experts say.
Mr Colin Tan, research and consultancy director of Chesterton Suntec International, said: 'Singapore is preferred as it is seen as a stable and safe market.
'Chinese developers will probably expand their presence here and I won't be surprised if we see more mainland firms coming into the property market.'
DMG & Partners property analyst Brandon Lee said that as most of the Chinese firms started out in the construction business, progressing to property development was not surprising as the margins were much higher.
'There are also an increasing number of mainland Chinese buyers entering the market, making up about 15 per cent of total foreign buyers, so the Chinese developers might be hoping to target this segment,' he added.
MCC Land's first attempt at a GLS tender was in March, for an executive condo site near Buangkok MRT Station. It fell a fraction short, tendering 1.4 per cent below the top bid of $193.3 million.
But it won the day with a $127.8 million bid for a site at Yishun, also in March. Last month, the firm clinched a Sembawang Road/Canberra Drive site for $131.7 million.
MCC Land is part of the Chinese state-owned enterprise Metallurgical Corporation of China (MCC Group) - a Fortune 500 company listed on the Shanghai and Hong Kong bourses. It is involved in engineering, procurement and construction, mining and property development.
While MCC Land is a new entrant, MCC Group's local construction unit, China Jingye Engineering Corporation, has been doing business here for almost 14 years. It was the main contractor for Universal Studios at Resorts World Sentosa.
MCC Land managing director Tan Zhiyong said that it was a natural progression to branch out into property development as it expanded its footprint here.
Although the firm is mostly involved in the residential market, he does not rule out entering the commercial sector if the opportunity arises.
'We don't have a fixed goal in terms of what we want to accomplish... If a good opportunity arises, we will act but this also depends on how the market moves, the timing and the location of a site,' he said.
Mr Tan added that while he does not expect property prices here to increase as fast in the rest of the year as they did in the first half, he expects values to remain stable and so might bid for more sites.
The other main player - the Qingjian group - also began operations here as a contractor for HDB projects. It marked its first foray into property development in 2008 with Natura Loft - an HDB design, build and sell scheme in Bishan.
Qingdao Construction - part of the Qingjian Group - has since clinched a site next to Potong Pasir MRT station for $113.7 million. Its bid of $607 per sq ft per plot ratio was a record land price for the area and ahead of more established property players like Frasers Centrepoint, Far East Organization and Hong Leong Holdings.
Qingdao Construction director Zuo Haibin said Singapore's growing economy provided a stable investment platform. He hopes to at least double the size of the firm's development arm in the next year and has identified sites in the upcoming GLS programme the firm may bid for.
esthert@sph.com.sg
ST : Duo jailed for tricking eight in HDB flat rental scam
Jul 27, 2010
Duo jailed for tricking eight in HDB flat rental scam
TWO women were jailed yesterday for a rental scam that duped eight people into parting with almost $24,000 in rental deposits.
Between last November and March this year, friends Phey Mui Hoon, 45, and Kuan Ai Lee, 47, targeted their victims - seven of them foreigners - through advertisements.
Yesterday, Phey was jailed for a year and 41/2 months, while Kuan, who had a previous cheating conviction, was sentenced to a year and eight months behind bars.
A district court heard that they had a locksmith install new locks at an empty flat in Block 28B, Dover Crescent, before offering it for rent on at least eight occasions. But they did not even own the 12th-storey apartment in the first place.
On April 5, a draftsman reported to the police that he had been cheated of $3,500 by the two women. He said he was promised the keys to the flat on March 27, but could not reach either of them for more than a week.
The pair were eventually arrested at a hotel in Joo Chiat.
Besides facing eight cheating charges, Phey and Kuan were each also charged with eight counts of criminal trespass for entering the flat without permission from the HDB.
Real estate agents told The Straits Times that although there had been a handful of rental scams in the past, the problem grew dramatically in recent years because of the increasing number of foreigners coming here to work or study.
According to the police, there were 355 cases in 2008 and 324 cases of rental scams last year.
Police advise potential tenants to verify and confirm the ownership of the property before signing the tenancy agreement or making any advance or deposit payment.
They also suggest that tenants request for all parties, such as the owners and the housing agents, to be present when signing tenancy documents.
Real estate agent Annie Tan said alarm bells should be ringing when ridiculously low rents are offered.
'Since the con artist will take the money and run, he or she will try to make the offer irresistible,' she said.
KHUSHWANT SINGH
Duo jailed for tricking eight in HDB flat rental scam
TWO women were jailed yesterday for a rental scam that duped eight people into parting with almost $24,000 in rental deposits.
Between last November and March this year, friends Phey Mui Hoon, 45, and Kuan Ai Lee, 47, targeted their victims - seven of them foreigners - through advertisements.
Yesterday, Phey was jailed for a year and 41/2 months, while Kuan, who had a previous cheating conviction, was sentenced to a year and eight months behind bars.
A district court heard that they had a locksmith install new locks at an empty flat in Block 28B, Dover Crescent, before offering it for rent on at least eight occasions. But they did not even own the 12th-storey apartment in the first place.
On April 5, a draftsman reported to the police that he had been cheated of $3,500 by the two women. He said he was promised the keys to the flat on March 27, but could not reach either of them for more than a week.
The pair were eventually arrested at a hotel in Joo Chiat.
Besides facing eight cheating charges, Phey and Kuan were each also charged with eight counts of criminal trespass for entering the flat without permission from the HDB.
Real estate agents told The Straits Times that although there had been a handful of rental scams in the past, the problem grew dramatically in recent years because of the increasing number of foreigners coming here to work or study.
According to the police, there were 355 cases in 2008 and 324 cases of rental scams last year.
Police advise potential tenants to verify and confirm the ownership of the property before signing the tenancy agreement or making any advance or deposit payment.
They also suggest that tenants request for all parties, such as the owners and the housing agents, to be present when signing tenancy documents.
Real estate agent Annie Tan said alarm bells should be ringing when ridiculously low rents are offered.
'Since the con artist will take the money and run, he or she will try to make the offer irresistible,' she said.
KHUSHWANT SINGH
ST : Pastoral View tries to sell en bloc again
Jul 27, 2010
Pastoral View tries to sell en bloc again
After failed 2008 attempt, it is making another bid, this time with adjoining vacant plot
By Joyce Teo
THE revival in the collective sale market this year is continuing, with a small development and adjoining land parcel in the Novena area the latest to go on sale.
The 50-unit Pastoral View and the vacant plot have a combined asking price of about $130 million to $150 million.
The two sites in Bassein Road have a total land area of 51,395 sq ft and can be built up to some 143,906 sq ft of gross floor area and a height of 36 storeys. They are near Novena MRT station.
Credo Real Estate, which is marketing the freehold sites, said the buyer can choose to build a high-rise tower comprising 140 apartments with an average size of 1,000 sq ft each.
The price translates to a land rate of $904 to $1,043 per sq ft per plot ratio, said its deputy managing director Tan Hong Boon.
This includes a modest development charge of about $157,000 for the plot at 11 Bassein Road to redevelop it.
No development charge is payable for the 10-storey Pastoral View, which was previously put up for sale in early 2008 at an asking price of $95 million without the adjoining plot.
But the market had turned for the worse by the time the tender closed in April that year, and it was not sold.
Credo said buyers can opt to tender for the combined sites or either one.
Pastoral View alone is 34,193 sq ft in size and going for $86.6 million to $100 million. If the sale goes through at the minimum asking price, the estate's owners will stand to reap at least $1.04 million to $4.56 million each, depending on their unit's size.
The smaller adjoining plot at 11 Bassein Road is 17,203 sq ft in size. The asking price for the plot alone is about $43.4 million to $50 million. A search shows that it is owned by OCBC Bank.
So far this year, at least 16 sites worth $786 million have been sold en bloc, compared with just one last year at $100.8 million, said Credo.
More sites are expected to be put up for collective sale this year, said Mr Tan.
joyceteo@sph.com.sg
Pastoral View tries to sell en bloc again
After failed 2008 attempt, it is making another bid, this time with adjoining vacant plot
By Joyce Teo
THE revival in the collective sale market this year is continuing, with a small development and adjoining land parcel in the Novena area the latest to go on sale.
The 50-unit Pastoral View and the vacant plot have a combined asking price of about $130 million to $150 million.
The two sites in Bassein Road have a total land area of 51,395 sq ft and can be built up to some 143,906 sq ft of gross floor area and a height of 36 storeys. They are near Novena MRT station.
Credo Real Estate, which is marketing the freehold sites, said the buyer can choose to build a high-rise tower comprising 140 apartments with an average size of 1,000 sq ft each.
The price translates to a land rate of $904 to $1,043 per sq ft per plot ratio, said its deputy managing director Tan Hong Boon.
This includes a modest development charge of about $157,000 for the plot at 11 Bassein Road to redevelop it.
No development charge is payable for the 10-storey Pastoral View, which was previously put up for sale in early 2008 at an asking price of $95 million without the adjoining plot.
But the market had turned for the worse by the time the tender closed in April that year, and it was not sold.
Credo said buyers can opt to tender for the combined sites or either one.
Pastoral View alone is 34,193 sq ft in size and going for $86.6 million to $100 million. If the sale goes through at the minimum asking price, the estate's owners will stand to reap at least $1.04 million to $4.56 million each, depending on their unit's size.
The smaller adjoining plot at 11 Bassein Road is 17,203 sq ft in size. The asking price for the plot alone is about $43.4 million to $50 million. A search shows that it is owned by OCBC Bank.
So far this year, at least 16 sites worth $786 million have been sold en bloc, compared with just one last year at $100.8 million, said Credo.
More sites are expected to be put up for collective sale this year, said Mr Tan.
joyceteo@sph.com.sg
BT : More courses for building specialists
Business Times - 27 Jul 2010
More courses for building specialists
Shortage of industry professionals spurs BCAA, SISV initiative
THE booming construction industry over the years has created a shortage of qualified surveyors and other specialists.
As such, in a release by the Building and Construction Authority (BCA), it was revealed that the BCA Academy (BCAA) and Singapore Institute of Surveyors and Valuers (SISV) will put in place a number of initiatives to build up and strengthen the pool of building professionals within the industry.
Among the specialists in demand include quantity surveyors, land surveyors, valuers and property managers.
To resolve this, the BCAA and SISV will be jointly introducing more academic programmes such as diploma, specialist diploma and degree courses to train new professionals and to upgrade the skill sets of existing ones.
BCAA will also be working with SISV to initiate more dialogue sessions with firms in the industry to facilitate discussion on developing such capabilities.
To further promote the building profession, BCA and SISV signed a memorandum of understanding to share resources, promote educational programmes and jointly create and implement new products and services to drive the local building industry forward.
John Keung, CEO of BCA, said, 'I'm confident that this new collaboration will help elevate the occupational profile in the built environment. BCA looks forward to working with SISV to develop more programmes to train personnel at the technical and professional level to meet the needs of the industry.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
More courses for building specialists
Shortage of industry professionals spurs BCAA, SISV initiative
THE booming construction industry over the years has created a shortage of qualified surveyors and other specialists.
As such, in a release by the Building and Construction Authority (BCA), it was revealed that the BCA Academy (BCAA) and Singapore Institute of Surveyors and Valuers (SISV) will put in place a number of initiatives to build up and strengthen the pool of building professionals within the industry.
Among the specialists in demand include quantity surveyors, land surveyors, valuers and property managers.
To resolve this, the BCAA and SISV will be jointly introducing more academic programmes such as diploma, specialist diploma and degree courses to train new professionals and to upgrade the skill sets of existing ones.
BCAA will also be working with SISV to initiate more dialogue sessions with firms in the industry to facilitate discussion on developing such capabilities.
To further promote the building profession, BCA and SISV signed a memorandum of understanding to share resources, promote educational programmes and jointly create and implement new products and services to drive the local building industry forward.
John Keung, CEO of BCA, said, 'I'm confident that this new collaboration will help elevate the occupational profile in the built environment. BCA looks forward to working with SISV to develop more programmes to train personnel at the technical and professional level to meet the needs of the industry.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : OCBC, Pastoral View owners sell sites together
Business Times - 27 Jul 2010
OCBC, Pastoral View owners sell sites together
OCBC, which has owned a site at 11 Bassein Road in the Novena area since the 1940s, has teamed up with the owners of Pastoral View next door who are doing a collective sale, to sell the two properties together.
Both Pastoral View, which is at 7 Bassein Road, and OCBC's site, at 11 Bassein Road, are freehold.
'The sellers are expecting offers in the region of $130-150 million. This translates to a land rate of $904-1,043 per sq ft per plot ratio, after factoring in a marginal development charge of about $157,000 payable for No. 11 Bassein Road, to redevelop the site up to a 2.8 gross plot ratio. No DC is payable for Pastoral View,' said Tan Hong Boon, deputy managing director at Credo Real Estate, which is marketing the two properties.
More than 80 per cent of owners by share value and strata floor area at the 50-unit Pastoral View have signed a collective sale agreement. OCBC's next door property is an empty site.
The two sites have a combined land area of 51,395 sq ft and can be developed into a new condo with a gross floor area of 143,906 sq ft. This allows for a 36-storey project with 140 apartments of average size of 1,000 sq ft.
The site is zoned for residential use with a 2.8 plot ratio under Master Plan 2008.
Interested parties can bid for one or both sites.
'We believe developers would find the enlarged site more attractive because it would offer economies of scale and broaden their offering,' said Mr Tan.
There will be space for the winning developer to build a showflat before Pastoral View residents move out, Mr Tan said. This means that the developer can market the new project earlier, reducing holding costs and market risks.
Novena is home to office and retail blocks such as United Square, and hospitals such as Tan Tock Seng.
Credo believes that the new residential project will attract medical professionals and medical tourists.
Near Pastoral View, units at D'Ixoras have changed hands at more than $1,240 psf in the past two months, based on caveats lodged.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Pastoral View: More than 80% of owners by share value and strata floor area have signed a collective sale agreement
OCBC, Pastoral View owners sell sites together
OCBC, which has owned a site at 11 Bassein Road in the Novena area since the 1940s, has teamed up with the owners of Pastoral View next door who are doing a collective sale, to sell the two properties together.
Both Pastoral View, which is at 7 Bassein Road, and OCBC's site, at 11 Bassein Road, are freehold.
'The sellers are expecting offers in the region of $130-150 million. This translates to a land rate of $904-1,043 per sq ft per plot ratio, after factoring in a marginal development charge of about $157,000 payable for No. 11 Bassein Road, to redevelop the site up to a 2.8 gross plot ratio. No DC is payable for Pastoral View,' said Tan Hong Boon, deputy managing director at Credo Real Estate, which is marketing the two properties.
More than 80 per cent of owners by share value and strata floor area at the 50-unit Pastoral View have signed a collective sale agreement. OCBC's next door property is an empty site.
The two sites have a combined land area of 51,395 sq ft and can be developed into a new condo with a gross floor area of 143,906 sq ft. This allows for a 36-storey project with 140 apartments of average size of 1,000 sq ft.
The site is zoned for residential use with a 2.8 plot ratio under Master Plan 2008.
Interested parties can bid for one or both sites.
'We believe developers would find the enlarged site more attractive because it would offer economies of scale and broaden their offering,' said Mr Tan.
There will be space for the winning developer to build a showflat before Pastoral View residents move out, Mr Tan said. This means that the developer can market the new project earlier, reducing holding costs and market risks.
Novena is home to office and retail blocks such as United Square, and hospitals such as Tan Tock Seng.
Credo believes that the new residential project will attract medical professionals and medical tourists.
Near Pastoral View, units at D'Ixoras have changed hands at more than $1,240 psf in the past two months, based on caveats lodged.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Pastoral View: More than 80% of owners by share value and strata floor area have signed a collective sale agreement
ST : 'Imbalance' in HDB resale market: Mah
Jul 26, 2010
'Imbalance' in HDB resale market: Mah
Record boost to supply should stabilise prices in about a year, he says
By Melissa Kok
PRICES of HDB resale flats are high at present because of an 'imbalance' in supply and demand, which should be redressed by the record number of flats being released by the HDB this year.
The boost to supply should stabilise prices in about a year or so, said National Development Minister Mah Bow Tan yesterday, as he sought to address concerns over the cost of HDB resale flats, which has climbed steadily since 2008.
Speaking on the sidelines of a community event in Tampines, Mr Mah attributed the surge to strong economic growth and demand from first-time buyers, such as newly married couples, and owners looking to upgrade to bigger flats.
'I think at this point in time, there's still an imbalance,' he said. 'I hope that with HDB pushing out a record number of flats this year, this imbalance will be redressed over the medium term. I would expect that in another year or so, we should be able to stabilise everything.'
HDB launched almost 9,000 new build-to-order flats in the first half of the year, and will launch another 7,200 in the second half. The number is about 80 per cent more than for last year.
In addition, there are some 4,700 new flats under the design, build and sell scheme, in which HDB flats are built by private developers, and the executive condo (EC) housing scheme. In the pipeline are four more EC sites in Punggol, Pasir Ris, Bukit Panjang and Tampines, which should yield 1,900 units.
Resale prices for HDB flats rose for the eighth straight quarter between April and last month, surging 4.1 per cent from the previous quarter.
In the first half of this year, 17,598 resale applications were registered with HDB, compared to 16,630 for the same period last year and 14,121 in 2008.
The median cash over valuation (COV) - the cash amount paid upfront by a buyer over a flat's valuation by the HDB - also hit a record $30,000.
Mr Mah acknowledged this was 'equally a concern' as it made resale flats even less affordable, and urged first-time buyers to purchase their new home directly from the HDB instead.
He said: 'If you are a first-timer, then go for the build-to-order (BTO) market, where there is zero COV, where the prices are lower, where the flats are of newer design and so on.'
To newly married couples who say they cannot wait that long for a new flat, Mr Mah said the three-year waiting period was 'the norm for our standard, which is already higher than other cities'.
He added: 'If you want to, say, have a flat, zero waiting time, then obviously the price of the flats will be higher, and this is where the resale flat market comes in.
'That's why you have a disparity in price between resale flat and new flats. This cost difference reflects the time difference.'
Mr Mah said there were enough homes for first-time buyers and the increased number of flats being built would relieve the pressure on the resale market.
In the short-term, he said, it was not clear if prices would continue to rise.
'The economy for the first half was very strong, but all indications are that it may not be so smooth going in the second half; all indications are that there may be some slowdown. If that comes about, then obviously the demand for housing will also slow down,' he said.
PropNex chief executive Mohamed Ismail said the biggest group of people driving up the resale prices are owners of HDB flats who are motivated by the peak prices to sell.
'The majority of those who bought new four- and five-room HDB flats eight years ago, can probably make more than $100,000 cash profit now,' he said.
Newlyweds said getting a new flat from the HDB had its difficulties too.
Civil servant Jonathan Fong, 31, and wedding videographer Mylene Tong, 29, failed twice to get a new flat in the locations they wanted.
They eventually bought a three-room flat in Sin Ming Road in March for $237,000, with a COV of $29,000.
melk@sph.com.sg
'Imbalance' in HDB resale market: Mah
Record boost to supply should stabilise prices in about a year, he says
By Melissa Kok
PRICES of HDB resale flats are high at present because of an 'imbalance' in supply and demand, which should be redressed by the record number of flats being released by the HDB this year.
The boost to supply should stabilise prices in about a year or so, said National Development Minister Mah Bow Tan yesterday, as he sought to address concerns over the cost of HDB resale flats, which has climbed steadily since 2008.
Speaking on the sidelines of a community event in Tampines, Mr Mah attributed the surge to strong economic growth and demand from first-time buyers, such as newly married couples, and owners looking to upgrade to bigger flats.
'I think at this point in time, there's still an imbalance,' he said. 'I hope that with HDB pushing out a record number of flats this year, this imbalance will be redressed over the medium term. I would expect that in another year or so, we should be able to stabilise everything.'
HDB launched almost 9,000 new build-to-order flats in the first half of the year, and will launch another 7,200 in the second half. The number is about 80 per cent more than for last year.
In addition, there are some 4,700 new flats under the design, build and sell scheme, in which HDB flats are built by private developers, and the executive condo (EC) housing scheme. In the pipeline are four more EC sites in Punggol, Pasir Ris, Bukit Panjang and Tampines, which should yield 1,900 units.
Resale prices for HDB flats rose for the eighth straight quarter between April and last month, surging 4.1 per cent from the previous quarter.
In the first half of this year, 17,598 resale applications were registered with HDB, compared to 16,630 for the same period last year and 14,121 in 2008.
The median cash over valuation (COV) - the cash amount paid upfront by a buyer over a flat's valuation by the HDB - also hit a record $30,000.
Mr Mah acknowledged this was 'equally a concern' as it made resale flats even less affordable, and urged first-time buyers to purchase their new home directly from the HDB instead.
He said: 'If you are a first-timer, then go for the build-to-order (BTO) market, where there is zero COV, where the prices are lower, where the flats are of newer design and so on.'
To newly married couples who say they cannot wait that long for a new flat, Mr Mah said the three-year waiting period was 'the norm for our standard, which is already higher than other cities'.
He added: 'If you want to, say, have a flat, zero waiting time, then obviously the price of the flats will be higher, and this is where the resale flat market comes in.
'That's why you have a disparity in price between resale flat and new flats. This cost difference reflects the time difference.'
Mr Mah said there were enough homes for first-time buyers and the increased number of flats being built would relieve the pressure on the resale market.
In the short-term, he said, it was not clear if prices would continue to rise.
'The economy for the first half was very strong, but all indications are that it may not be so smooth going in the second half; all indications are that there may be some slowdown. If that comes about, then obviously the demand for housing will also slow down,' he said.
PropNex chief executive Mohamed Ismail said the biggest group of people driving up the resale prices are owners of HDB flats who are motivated by the peak prices to sell.
'The majority of those who bought new four- and five-room HDB flats eight years ago, can probably make more than $100,000 cash profit now,' he said.
Newlyweds said getting a new flat from the HDB had its difficulties too.
Civil servant Jonathan Fong, 31, and wedding videographer Mylene Tong, 29, failed twice to get a new flat in the locations they wanted.
They eventually bought a three-room flat in Sin Ming Road in March for $237,000, with a COV of $29,000.
melk@sph.com.sg
ST : $550 million upgrade for Hougang, Pasir Ris, Tampines
Jul 26, 2010
$550 million upgrade for Hougang, Pasir Ris, Tampines
New covered linkways, new windows and grilles in homes possible
By Melissa Kok
SOME 54,000 households in Hougang, Tampines and Pasir Ris can look forward to new amenities in their neighbourhoods with upgrading works now under way.
The improvements could include new covered linkways, car porches and upgrading of children's playgrounds.
Residents may also get upgrades to their flats, such as new waterproofing for their bathroom floors, and new windows and grilles.
No target completion date has been given for the works but the Government has set aside an extra $550 million for the three HDB towns under the Main Upgrading, Interim Upgrading and Lift Upgrading programmes.
As long as the Government had the financial resources, it would continue to rejuvenate housing estates, said Deputy Prime Minister and adviser to Pasir Ris-Punggol GRC grassroots organisation Teo Chee Hean yesterday. He was speaking at the launch of a community roadshow in Tampines Central to cap HDB's 50th anniversary celebrations.
Tampines, Hougang and Pasir Ris are mature towns that were developed in the 1980s and early 1990s. Together with the newer towns of Sengkang and Punggol, they are home to 197,100 flats, about 22 per cent of the total number of HDB homes in Singapore.
Some $540 million has already been spent to improve amenities for more than 67,000 households in the three towns.
Of the extra $550 million, around $263 million will go towards estates in Tampines; $180 million to Hougang and $107 million to Pasir Ris.
Mr Teo, noting how the three housing estates have transformed over the years into modern and bustling towns, said commercial and other social facilities will also be upgraded to keep up with renewed residential areas.
For example, six sites in Tampines and Hougang have benefited from HDB's Revitalisation of Shops Scheme (ROS) to increase the vibrancy and competitiveness of shops in the heartland.
Under the scheme, HDB provides partial funding for shopkeepers to spruce up their shopfronts and carry out promotions to attract more customers. The scheme will be extended to seven more sites in the two estates.
Loyang Point shopping centre in Pasir Ris will also be revamped at the end of the year.
Long-time residents welcomed the improvements to their neighbourhoods and shopping areas.
Mr Lee Kam Mun, who has lived in Tampines Central since 1998, said residents have got a lot out of the upgrading programmes.
Said the 42-year-old terminal manager in the oil and gas industry: 'We have a nicer outlook in the estate. You come back and feel relaxed. There are also more common areas that encourage us to meet and make friends with neighbours.'
melk@sph.com.sg
$550 million upgrade for Hougang, Pasir Ris, Tampines
New covered linkways, new windows and grilles in homes possible
By Melissa Kok
SOME 54,000 households in Hougang, Tampines and Pasir Ris can look forward to new amenities in their neighbourhoods with upgrading works now under way.
The improvements could include new covered linkways, car porches and upgrading of children's playgrounds.
Residents may also get upgrades to their flats, such as new waterproofing for their bathroom floors, and new windows and grilles.
No target completion date has been given for the works but the Government has set aside an extra $550 million for the three HDB towns under the Main Upgrading, Interim Upgrading and Lift Upgrading programmes.
As long as the Government had the financial resources, it would continue to rejuvenate housing estates, said Deputy Prime Minister and adviser to Pasir Ris-Punggol GRC grassroots organisation Teo Chee Hean yesterday. He was speaking at the launch of a community roadshow in Tampines Central to cap HDB's 50th anniversary celebrations.
Tampines, Hougang and Pasir Ris are mature towns that were developed in the 1980s and early 1990s. Together with the newer towns of Sengkang and Punggol, they are home to 197,100 flats, about 22 per cent of the total number of HDB homes in Singapore.
Some $540 million has already been spent to improve amenities for more than 67,000 households in the three towns.
Of the extra $550 million, around $263 million will go towards estates in Tampines; $180 million to Hougang and $107 million to Pasir Ris.
Mr Teo, noting how the three housing estates have transformed over the years into modern and bustling towns, said commercial and other social facilities will also be upgraded to keep up with renewed residential areas.
For example, six sites in Tampines and Hougang have benefited from HDB's Revitalisation of Shops Scheme (ROS) to increase the vibrancy and competitiveness of shops in the heartland.
Under the scheme, HDB provides partial funding for shopkeepers to spruce up their shopfronts and carry out promotions to attract more customers. The scheme will be extended to seven more sites in the two estates.
Loyang Point shopping centre in Pasir Ris will also be revamped at the end of the year.
Long-time residents welcomed the improvements to their neighbourhoods and shopping areas.
Mr Lee Kam Mun, who has lived in Tampines Central since 1998, said residents have got a lot out of the upgrading programmes.
Said the 42-year-old terminal manager in the oil and gas industry: 'We have a nicer outlook in the estate. You come back and feel relaxed. There are also more common areas that encourage us to meet and make friends with neighbours.'
melk@sph.com.sg
ST : Like father, like son
Jul 24, 2010
Like father, like son
Architect Paul Tange's new office tower will adjoin his father's OUB Centre
By tay suan chiang
A Japanese architect whose famous father designed landmark buildings in Singapore is carrying on the family tradition here.
Paul Tange, 52, only son of the late renowned architect Kenzo Tange, is working on a $700-million project on the sites of the former Specialists' Centre/Hotel Phoenix and Orchard Emerald in Orchard Road. It involves office and retail space, and a hotel - and will include the strip's first glass pedestrian overhead bridge.
His dad, who died of heart failure in 2005 at the age of 91, was the architect behind OUB Centre, which was built in the mid-1980s, in Raffles Place. Other projects of his here include UOB Plaza and the Singapore Indoor Stadium.
His legacy continues, with Tange 'junior' working on several projects here, such as a soon-to-be-completed 38-storey office building right next to his dad's OUB Centre.
For the younger Tange, working on his latest Singapore project is a walk down memory lane in more ways than just following in the career footsteps of his father.
As a child, he recalls walking past the site of the then Specialists' Centre/Hotel Phoenix, as the family spent time in Singapore when his dad worked on OUB Centre.
'We stayed at the Meritus Mandarin hotel then, and my mother and I would walk past Specialists' Centre, towards the old Cathay building,' says Mr Tange.
He adds excitedly: 'Also, I've stayed many times at the Phoenix Hotel. Orchard Road is very close to my heart.'
Last week, developer United Engineers Limited unveiled his design for his project here. One half is a mixed development that will stand on the former Specialists' Centre/Hotel Phoenix site, which is owned by OCBC Bank. It is a 21-storey building comprising a four-star hotel with about 500 rooms and 20,800 sq m of retail space.
The other half is on the site of the former Orchard Emerald, diagonally across the road, and owned by Great Eastern Holdings, a subsidiary of OCBC Bank. It will be an 11-storey building with 3,500 sq m of office space and 2,700 sq m of retail space.
A glass pedestrian bridge will connect the two buildings, as will an underground passageway. On the street level, each building will have two open plazas for performances by artists and buskers. The project is expected to be completed in 2013.
Mr Tange is naturally very excited about the development, saying: 'For the first time, there will be a 'dialogue' on both sides of Orchard Road.'
On his choice of glass for the bridge, he says: 'I didn't want it as an obstruction which would be disturbing. Glass will make it look light and almost invisible.'
The hotel/retail building will also be connected to its neighbours, Orchard Central and 313@Somerset. 'This will help improve connectivity in Orchard Road. Connectivity will make the Orchard Road streetscape more exciting,' he says.
Mr Tange, who flies to Singapore almost every month, has other projects such as residential ones The Rochester in Buona Vista and The Linear in Upper Bukit Timah, and the redevelopment of The Cathay.
On the new OUB tower - its construction began in 2008 - that adjoins OUB Centre, he says: 'This project was challenging and scary. What kind of building could I build next to a Kenzo Tange one?'
He initially wanted a design that was similar to his father's but threw that idea out. 'My father taught me to look forward. It would be more meaningful to try something new.'
The two buildings will be known as One Raffles Place. The new building is as sculptural as the first tower but designed to give its users more views of the area.
Asked if he thinks his father would approve of the design, Mr Tange pauses before saying: 'Forty years later, when I'm in heaven, I will ask my father, and then e-mail you the answer.'
taysc@sph.com.sg
--------------------------------------------------------------------------------
'My father taught me to look forward. It would be more meaningful to try something new'
Paul Tange on not designing building similar to the OUB Centre, designed by his father, Kenzo Tange
Like father, like son
Architect Paul Tange's new office tower will adjoin his father's OUB Centre
By tay suan chiang
A Japanese architect whose famous father designed landmark buildings in Singapore is carrying on the family tradition here.
Paul Tange, 52, only son of the late renowned architect Kenzo Tange, is working on a $700-million project on the sites of the former Specialists' Centre/Hotel Phoenix and Orchard Emerald in Orchard Road. It involves office and retail space, and a hotel - and will include the strip's first glass pedestrian overhead bridge.
His dad, who died of heart failure in 2005 at the age of 91, was the architect behind OUB Centre, which was built in the mid-1980s, in Raffles Place. Other projects of his here include UOB Plaza and the Singapore Indoor Stadium.
His legacy continues, with Tange 'junior' working on several projects here, such as a soon-to-be-completed 38-storey office building right next to his dad's OUB Centre.
For the younger Tange, working on his latest Singapore project is a walk down memory lane in more ways than just following in the career footsteps of his father.
As a child, he recalls walking past the site of the then Specialists' Centre/Hotel Phoenix, as the family spent time in Singapore when his dad worked on OUB Centre.
'We stayed at the Meritus Mandarin hotel then, and my mother and I would walk past Specialists' Centre, towards the old Cathay building,' says Mr Tange.
He adds excitedly: 'Also, I've stayed many times at the Phoenix Hotel. Orchard Road is very close to my heart.'
Last week, developer United Engineers Limited unveiled his design for his project here. One half is a mixed development that will stand on the former Specialists' Centre/Hotel Phoenix site, which is owned by OCBC Bank. It is a 21-storey building comprising a four-star hotel with about 500 rooms and 20,800 sq m of retail space.
The other half is on the site of the former Orchard Emerald, diagonally across the road, and owned by Great Eastern Holdings, a subsidiary of OCBC Bank. It will be an 11-storey building with 3,500 sq m of office space and 2,700 sq m of retail space.
A glass pedestrian bridge will connect the two buildings, as will an underground passageway. On the street level, each building will have two open plazas for performances by artists and buskers. The project is expected to be completed in 2013.
Mr Tange is naturally very excited about the development, saying: 'For the first time, there will be a 'dialogue' on both sides of Orchard Road.'
On his choice of glass for the bridge, he says: 'I didn't want it as an obstruction which would be disturbing. Glass will make it look light and almost invisible.'
The hotel/retail building will also be connected to its neighbours, Orchard Central and 313@Somerset. 'This will help improve connectivity in Orchard Road. Connectivity will make the Orchard Road streetscape more exciting,' he says.
Mr Tange, who flies to Singapore almost every month, has other projects such as residential ones The Rochester in Buona Vista and The Linear in Upper Bukit Timah, and the redevelopment of The Cathay.
On the new OUB tower - its construction began in 2008 - that adjoins OUB Centre, he says: 'This project was challenging and scary. What kind of building could I build next to a Kenzo Tange one?'
He initially wanted a design that was similar to his father's but threw that idea out. 'My father taught me to look forward. It would be more meaningful to try something new.'
The two buildings will be known as One Raffles Place. The new building is as sculptural as the first tower but designed to give its users more views of the area.
Asked if he thinks his father would approve of the design, Mr Tange pauses before saying: 'Forty years later, when I'm in heaven, I will ask my father, and then e-mail you the answer.'
taysc@sph.com.sg
--------------------------------------------------------------------------------
'My father taught me to look forward. It would be more meaningful to try something new'
Paul Tange on not designing building similar to the OUB Centre, designed by his father, Kenzo Tange
ST : 92 properties to his name
Jul 25, 2010
me & my money
92 properties to his name
MD of real estate company relishes fire sales
By Lorna Tan
Managing director of real estate firm Austpac International David Yuen bought his first property in Brisbane, Australia, when he was just 23 in 1980.
Now, at 53 years old, he owns 92 properties in Asia, Australia and New Zealand. Together, they are worth a cool A$100 million (S$121 million) and their total monthly rental is A$300,000.
Mr Yuen is drawn to fire sales and those properties that require an initial low downpayment.
Besides properties, he is invested in shares, unit trusts and his firm Austpac. The latter was previously known as PRD Austpac.
Hong Kong-born Mr Yuen emigrated to Brisbane with his family when he was 12, after which he left for London to pursue his studies till he was 21. In 1978, he obtained a degree in mathematics and statistics from the former North London Polytechnic, now North London University. After his return to Australia, he set up a floor-covering business and owned a French restaurant, until 1986 when he joined a real estate firm Ray White Realty till 1989.
In 1989, he joined PRD Realty and, with initial capital of A$200,000, he set up a franchisee PRD Austwide - later known as PRD Austpac - in Hong Kong to market Australian real estate to Asia. Three years later, he opened an office in Singapore with a partner. In 2005, after PRD Realty was sold to Canada-listed Colliers, PRD Austpac changed its name to Austpac International. It handles 1,000 property transactions a year and its annual turnover is between A$350 million and A$400 million.
Mr Yuen is married to Hong Kong-born Heidi Ng, 41, and they have a son, James Lawrence, 10.
Q: Are you a spender or saver?
It depends on which stage of my life I'm at. When I was a university student holding vacation jobs, I was a saver, saving to pay for living expenses. Now, my income is much more than what my wife and I can spend every month. So we buy more properties.
Q: How much do you charge to your credit cards every month?
I charge about $20,000 to my Amex Centurion card every month and it's paid off duly. So far, I've accumulated 10 million reward points on that card. I withdraw $3,000 when I visit the ATM each week.
Q: What financial planning have you done for yourself?
My personal property portfolio comprises 92 properties, of which 26 are in Singapore, Hong Kong, Kuala Lumpur and Jakarta, worth over A$50 million, and another 66 in Australia and New Zealand, worth about A$40 million. They are mainly residential properties and some offices. About 30 of the 92 properties are under mortgage.
I have A$3 million invested in shares of some firms such as home-grown health-care firm Sourcelink Holding, HK-listed HSBC and Sun Hung Kai Properties. I also have another US$300,000 (S$412,000) in unit trusts. I am a shareholder of a few firms that hold properties and manage hotels.
Q: Moneywise, what were your growing-up years like?
I'm the oldest of three sons. My parents were accountants so they counted every cent. We lived in a 600 sq ft apartment in Kowloon next to Kai Tak Airport which my father bought for HK$5,000.
When I was eight, we moved to a 1,200 sq ft apartment in Kowloon Tong. Three years later, we emigrated to Brisbane where my parents started a Chinese restaurant.
When I was 13, I left for London to study. During my university days in North London, I held a few jobs including working at Kentucky Fried Chicken and in factories, and teaching wushu (martial arts), performing in wushu shows in England, Germany and South America.
Q: How did you get interested in investing?
I knew property prices would always go up, from observing my father who bought and sold properties in Hong Kong.
In 1967, he bought a shop in Tsim Sha Tsui for HK$50,000 and sold it in 1982 for HK$2 million. Today, it would be worth HK$100 million. He bought the Kowloon Tong apartment for HK$110,000 and sold it three years later for HK$360,000 when we emigrated.
I bought my first property in 1980 with A$30,000 when I got married, two years after I returned to Brisbane. It was a single-storey 2,300 sq ft house with a swimming pool, with a land size of 9,000 sq ft.
Back then, Australians received a home ownership grant of A$2,500 for their first home. Banks were allowed to finance 90 per cent of the purchase price, so my initial downpayment was just A$500. I gave the property to my ex-wife when we got divorced a year later.
Q: What property do you own in Singapore?
I bought four units of 780 sq ft each in Newton during the Sars epidemic in 2003. They cost about $650,000 to $680,000 each. I'm renting them out at $5,000 each. Together, they are worth about $5.6 million today.
I prefer small units of below 1,000 sq ft for rental as they offer more value than bigger units and are easier to rent out. The rent is usually the same whether it is a 1,000 sq ft two-bedroom unit or an 800 sq two-bedroom unit.
In 1997, I bought a 2,000 sq ft condo in Novena for $800,000. It is now worth $2.1 million.
Q: What's the most extravagant thing you have bought?
It was a $60,000 Cartier watch that I bought for my wife in 1998.
Q: What's your retirement plan?
At present, I work only eight months a year. From December, I take a four-month break in Hong Kong and Australia every year. That's when I participate in outdoor events like a 50km cross-country run, the Ironman and other triathlons.
I expect to semi-retire in my golden years. Ideally, I will work for only six months every year so I can stay in touch with the market.
Q: Home is now...
My condo at Novena.
Q: I drive...
Three cars. They are a blue Jaguar XJ, a black Jaguar XF and a silver Mini Cooper. My wife is chauffered in a seven-seater Nissan Elgrand.
lorna@sph.com.sg
--------------------------------------------------------------------------------
WORST AND BEST BETS
Q: What has been your worst investment to date?
I parked several millions with private bankers who invested them in financial instruments in 2002. I made money in the first six years but the portfolio of $10 million was wiped out during the 2008 financial crash. The financial instruments, such as structured products, had become more complicated, and it was a grey area between me not finding out enough and the bankers not telling me enough.
Q: And your best?
In 2007, I made a NZ$100,000 downpayment to buy 20 units of a development in Queenstown, New Zealand. The total sale price was NZ$4 million. I made NZ$1.6 million when I sold the 20 units for NZ$5.6 million after two years, before construction was completed. No progressive payments were required, so my investment was just NZ$100,000
me & my money
92 properties to his name
MD of real estate company relishes fire sales
By Lorna Tan
Managing director of real estate firm Austpac International David Yuen bought his first property in Brisbane, Australia, when he was just 23 in 1980.
Now, at 53 years old, he owns 92 properties in Asia, Australia and New Zealand. Together, they are worth a cool A$100 million (S$121 million) and their total monthly rental is A$300,000.
Mr Yuen is drawn to fire sales and those properties that require an initial low downpayment.
Besides properties, he is invested in shares, unit trusts and his firm Austpac. The latter was previously known as PRD Austpac.
Hong Kong-born Mr Yuen emigrated to Brisbane with his family when he was 12, after which he left for London to pursue his studies till he was 21. In 1978, he obtained a degree in mathematics and statistics from the former North London Polytechnic, now North London University. After his return to Australia, he set up a floor-covering business and owned a French restaurant, until 1986 when he joined a real estate firm Ray White Realty till 1989.
In 1989, he joined PRD Realty and, with initial capital of A$200,000, he set up a franchisee PRD Austwide - later known as PRD Austpac - in Hong Kong to market Australian real estate to Asia. Three years later, he opened an office in Singapore with a partner. In 2005, after PRD Realty was sold to Canada-listed Colliers, PRD Austpac changed its name to Austpac International. It handles 1,000 property transactions a year and its annual turnover is between A$350 million and A$400 million.
Mr Yuen is married to Hong Kong-born Heidi Ng, 41, and they have a son, James Lawrence, 10.
Q: Are you a spender or saver?
It depends on which stage of my life I'm at. When I was a university student holding vacation jobs, I was a saver, saving to pay for living expenses. Now, my income is much more than what my wife and I can spend every month. So we buy more properties.
Q: How much do you charge to your credit cards every month?
I charge about $20,000 to my Amex Centurion card every month and it's paid off duly. So far, I've accumulated 10 million reward points on that card. I withdraw $3,000 when I visit the ATM each week.
Q: What financial planning have you done for yourself?
My personal property portfolio comprises 92 properties, of which 26 are in Singapore, Hong Kong, Kuala Lumpur and Jakarta, worth over A$50 million, and another 66 in Australia and New Zealand, worth about A$40 million. They are mainly residential properties and some offices. About 30 of the 92 properties are under mortgage.
I have A$3 million invested in shares of some firms such as home-grown health-care firm Sourcelink Holding, HK-listed HSBC and Sun Hung Kai Properties. I also have another US$300,000 (S$412,000) in unit trusts. I am a shareholder of a few firms that hold properties and manage hotels.
Q: Moneywise, what were your growing-up years like?
I'm the oldest of three sons. My parents were accountants so they counted every cent. We lived in a 600 sq ft apartment in Kowloon next to Kai Tak Airport which my father bought for HK$5,000.
When I was eight, we moved to a 1,200 sq ft apartment in Kowloon Tong. Three years later, we emigrated to Brisbane where my parents started a Chinese restaurant.
When I was 13, I left for London to study. During my university days in North London, I held a few jobs including working at Kentucky Fried Chicken and in factories, and teaching wushu (martial arts), performing in wushu shows in England, Germany and South America.
Q: How did you get interested in investing?
I knew property prices would always go up, from observing my father who bought and sold properties in Hong Kong.
In 1967, he bought a shop in Tsim Sha Tsui for HK$50,000 and sold it in 1982 for HK$2 million. Today, it would be worth HK$100 million. He bought the Kowloon Tong apartment for HK$110,000 and sold it three years later for HK$360,000 when we emigrated.
I bought my first property in 1980 with A$30,000 when I got married, two years after I returned to Brisbane. It was a single-storey 2,300 sq ft house with a swimming pool, with a land size of 9,000 sq ft.
Back then, Australians received a home ownership grant of A$2,500 for their first home. Banks were allowed to finance 90 per cent of the purchase price, so my initial downpayment was just A$500. I gave the property to my ex-wife when we got divorced a year later.
Q: What property do you own in Singapore?
I bought four units of 780 sq ft each in Newton during the Sars epidemic in 2003. They cost about $650,000 to $680,000 each. I'm renting them out at $5,000 each. Together, they are worth about $5.6 million today.
I prefer small units of below 1,000 sq ft for rental as they offer more value than bigger units and are easier to rent out. The rent is usually the same whether it is a 1,000 sq ft two-bedroom unit or an 800 sq two-bedroom unit.
In 1997, I bought a 2,000 sq ft condo in Novena for $800,000. It is now worth $2.1 million.
Q: What's the most extravagant thing you have bought?
It was a $60,000 Cartier watch that I bought for my wife in 1998.
Q: What's your retirement plan?
At present, I work only eight months a year. From December, I take a four-month break in Hong Kong and Australia every year. That's when I participate in outdoor events like a 50km cross-country run, the Ironman and other triathlons.
I expect to semi-retire in my golden years. Ideally, I will work for only six months every year so I can stay in touch with the market.
Q: Home is now...
My condo at Novena.
Q: I drive...
Three cars. They are a blue Jaguar XJ, a black Jaguar XF and a silver Mini Cooper. My wife is chauffered in a seven-seater Nissan Elgrand.
lorna@sph.com.sg
--------------------------------------------------------------------------------
WORST AND BEST BETS
Q: What has been your worst investment to date?
I parked several millions with private bankers who invested them in financial instruments in 2002. I made money in the first six years but the portfolio of $10 million was wiped out during the 2008 financial crash. The financial instruments, such as structured products, had become more complicated, and it was a grey area between me not finding out enough and the bankers not telling me enough.
Q: And your best?
In 2007, I made a NZ$100,000 downpayment to buy 20 units of a development in Queenstown, New Zealand. The total sale price was NZ$4 million. I made NZ$1.6 million when I sold the 20 units for NZ$5.6 million after two years, before construction was completed. No progressive payments were required, so my investment was just NZ$100,000
Subscribe to:
Posts (Atom)
Posts
