Oct 1, 2010
Pasir Ris condo plot receives four tenders
By Joyce Teo
A CONDOMINIUM plot in Pasir Ris attracted four bidders, though the offers were relatively conservative.
The top tender - from a joint venture between Frasers Centrepoint and Far East Organization - came in slightly lower than expected at $151.38 million, or $334.85 per sq ft (psf) per plot ratio (ppr).
That was 7.6 per cent above the $140.69 million offered by a tie-up between Hoi Hup Realty, Sunway Developments and SC Wong Holdings.
Allgreen Properties was next with $131.89 million, with Meadows Investment, a firm owned by Tiong Aik Group executive director Neo Tiam Boon, in fourth place with $106 million.
Property experts said the response shows that developers who lodged bids were in two minds - cautious following the August cooling measures but fairly keen on this particular site even though it is not near an MRT station.
The 99-year leasehold plot at the junction of Pasir Ris Drive 3 and Pasir Ris Drive 4 is a 10-minute walk from the Downtown East lifestyle and entertainment hub. It has a site area of about 20,000 sq m and an allowable gross floor area of 42,000 sq m.
If successful, Frasers Centrepoint and Far East plan to build a 12-storey condo with 11 blocks comprising 400 to 450 units in all and aimed at HDB upgraders.
'The quantum of the bids indicates that the developers are optimistic about this site, given the strong sales at the recently launched NV Residences in Pasir Ris Drive 1, in addition to the sea view for units on the higher floors,' said CBRE Research executive director Li Hiaw Ho.
Before the August cooling measures were introduced, industry sources said the site might not attract strong bids as it was not near an MRT station. One forecast bids of between $350 and $390 psf ppr, although even that proved optimistic.
The bid from Frasers and Far East translates into a break-even cost of $650 to $680 psf, according to CBRE Research. Units in the new project on the site would possibly sell for about $800 psf.
NV Residences nearby reportedly sold around 350 units at the average price of $835 psf last month, it added.
Units in Livia, adjacent to NV Residences, were sold at between $720 and $840 psf in the July to September period.
And units at Oasis @ Elias in Elias Road sold for between $650 and $740 psf in the same period, noted Mr Li.
The Frasers and Far East joint offer was similar to the highest bid some executive condominium sites received in the first half, noted Cushman & Wakefield's senior manager of research, Asia Pacific, Mr Ong Kah Seng.
Lower prices are ultimately beneficial for developers as the break-even price will be lower, he added.
The potential for better profit margins is there should prices not fall significantly, he said.
Developers are increasingly cautious given an expected economic slowdown after robust first-half growth, uncertainties in the wider economy and a temporary slowdown in buying interest, he added.
The HDB said it will evaluate the tender bids and announce the results within two weeks.
Friday, October 1, 2010
ST : Foreigners parking assets for PR must invest $10m
Oct 1, 2010
Foreigners parking assets for PR must invest $10m
Minimum asset value to double from next year under MAS investor scheme
By Teh Joo Lin
FOREIGNERS aiming to become permanent residents in Singapore through a government scheme will have to double the minimum value of assets they park here to $10 million.
The Monetary Authority of Singapore's (MAS) Financial Investor Scheme (FIS) is the second permanent residency programme targeted at wealthy foreigners which has tightened its qualifying criteria recently.
Stricter rules for the Economic Development Board's Global Investor Programme (GIP), some of which kick in today, were reported early this week.
These moves come as the Government acts to better manage the pace and flow of immigrants to address concerns among Singaporeans.
The new FIS rules, effective from Jan 1 next year, require applicants to place at least $10 million in assets for a continuous period of five years, up from a minimum of $5 million previously. The assets must be placed with a financial institution regulated by the MAS, although a portion - up to $2 million - can be used to buy private residential properties.
The MAS declined to comment on the changes. But The Straits Times understands that some banks were notified of the new rules about a month ago.
While the more stringent criteria may dampen response for the PR scheme in the short run, analysts are confident that over time, wealthy individuals will still be attracted to park their funds and settle here.
Bank of Singapore's executive director Lee Woon Shiu told The Straits Times they will 'realise Singapore is a serious private wealth banking hub which doesn't want to attract just a quick inflow of funds'.
'Ten million is a fair amount to attract the right pedigree of clients - not just the newly minted crowd who have struck the jackpot once,' he said.
Other changes to the FIS scheme include allowing the applicant's parents and parents-in-law to apply only for five-year long-term visit passes. Currently, they can be included as part of his PR application if he puts up $2.5 million per parent.
Banks and immigration specialists The Straits Times spoke to expect a surge in applications from China, Taiwan and Indonesia before the changes take effect.
For many prospective FIS applicants, the raised bar was an issue of willingness, not affordability, said Mr Pearce Cheng, an immigration and relocation specialist.
Noting that current applicants generally need a personal net worth of $20 million, he said: 'It could be a turn-off for them to park so much money and be locked in for five years, because there are many other options such as Canada and the United States.'
Sociologist Tan Ern Ser said: 'The point is how you balance the need for good global talent while satisfying local citizens, so maybe they did some linear programming and found this is the optimum solution.'
joolin@sph.com.sg
Foreigners parking assets for PR must invest $10m
Minimum asset value to double from next year under MAS investor scheme
By Teh Joo Lin
FOREIGNERS aiming to become permanent residents in Singapore through a government scheme will have to double the minimum value of assets they park here to $10 million.
The Monetary Authority of Singapore's (MAS) Financial Investor Scheme (FIS) is the second permanent residency programme targeted at wealthy foreigners which has tightened its qualifying criteria recently.
Stricter rules for the Economic Development Board's Global Investor Programme (GIP), some of which kick in today, were reported early this week.
These moves come as the Government acts to better manage the pace and flow of immigrants to address concerns among Singaporeans.
The new FIS rules, effective from Jan 1 next year, require applicants to place at least $10 million in assets for a continuous period of five years, up from a minimum of $5 million previously. The assets must be placed with a financial institution regulated by the MAS, although a portion - up to $2 million - can be used to buy private residential properties.
The MAS declined to comment on the changes. But The Straits Times understands that some banks were notified of the new rules about a month ago.
While the more stringent criteria may dampen response for the PR scheme in the short run, analysts are confident that over time, wealthy individuals will still be attracted to park their funds and settle here.
Bank of Singapore's executive director Lee Woon Shiu told The Straits Times they will 'realise Singapore is a serious private wealth banking hub which doesn't want to attract just a quick inflow of funds'.
'Ten million is a fair amount to attract the right pedigree of clients - not just the newly minted crowd who have struck the jackpot once,' he said.
Other changes to the FIS scheme include allowing the applicant's parents and parents-in-law to apply only for five-year long-term visit passes. Currently, they can be included as part of his PR application if he puts up $2.5 million per parent.
Banks and immigration specialists The Straits Times spoke to expect a surge in applications from China, Taiwan and Indonesia before the changes take effect.
For many prospective FIS applicants, the raised bar was an issue of willingness, not affordability, said Mr Pearce Cheng, an immigration and relocation specialist.
Noting that current applicants generally need a personal net worth of $20 million, he said: 'It could be a turn-off for them to park so much money and be locked in for five years, because there are many other options such as Canada and the United States.'
Sociologist Tan Ern Ser said: 'The point is how you balance the need for good global talent while satisfying local citizens, so maybe they did some linear programming and found this is the optimum solution.'
joolin@sph.com.sg
ST : New Buangkok EC attracts keen interest
Oct 1, 2010
New Buangkok EC attracts keen interest
300 at showflat viewing of first new executive condo project in 5 years
By Esther Teo
HOME buyers showed keen interest at a viewing of Esparina Residences near Buangkok MRT Station yesterday - the first new executive condominium (EC) up for sale in five years.
Despite light rain, more than 300 potential buyers visited the showflat yesterday, with 220 registering interest in a ballot next Friday to book a preferred unit.
They came in droves even though new rules allow the so-called sandwich class - households earning between $8,000 to $10,000 - to also buy the cheaper design, build and sell scheme (DBSS) flats.
The EC is among the first new housing projects to hit the market since new rules unveiled in August to curb speculation.
Experts say the keen interest was due to the limited supply of ECs, pent-up demand from first-time home buyers, and affordable price tags for smaller units.
These flats boast condo-like facilities and were once the only way the sandwich class - ineligible for build-to-order (BTO) flats - could buy new HDB flats.
But they can now buy DBSS flats after the Government raised the income cap for these homes to $10,000. The last DBSS project launched was Parc Lumiere in Simei in April last year.
Esparina developer Frasers Centrepoint Homes said many of those visiting yesterday were young couples, young families and professionals under 40.
The 99-year leasehold project with 573 units will be the first EC launched since Far East's La Casa in Woodlands in 2005. Units range from 829 sq ft for a two-bedroom flat to 2,583 sq ft for a four-bedroom penthouse, with prices ranging from $730 to $750 per sq ft on average, Frasers said.
Two-bedders will be sold for between $590,000 and $723,000, three-bedders for between $697,000 and $981,000, and four-bedders at $1.005 million to $1.181 million. Penthouse prices will range from $864,000 to $1.3 million.
Frasers will also offer 71 dual-key units - a studio attached to either a two- or three-bedder - to cater to extended families who want to live close together.
Frasers chief operating officer Cheang Kok Kheong said the keen interest was driven by a sandwich class aspiring to the lifestyle element that an EC offers: 'The sandwich class is very interesting because with their income at $10,000, they must be rising up the corporate ladder somehow, or having their own businesses, so their expectations are high but yet they want something to start with first.'
Although up to 30 per cent might be interested in DBSS flats, the other 70 per cent like condo facilities, and this would sustain demand, Mr Cheang said.
ERA Asia-Pacific associate director Eugene Lim said that demand was expected to be strong since it was the logical and affordable choice for the sandwich class.
'DBSS flats might be priced lower but they lack facilities; an EC is more lifestyle-driven and many home buyers aspire to live in condos,' he added.
But one industry player said that the pricing of Esparina was on the high side. ECs are usually about 20 per cent below private condos to make up for their sale restrictions, he said. 'With NV Residences in Pasir Ris selling at $830 psf, the pricing here might not be that attractive.'
One potential buyer, who wanted to be known only as Mrs Ong, said she and her husband of two years will apply for Esparina's ballot as they had been unable to get a flat through the BTO scheme. They are now above the $8,000 income ceiling.
'Compared with an HDB resale flat, we feel an EC provides more value for money,' she said, adding the facilities would be good as they have a child.
esthert@sph.com.sg
More than 300 attended an Esparina Residences viewing yesterday, even though new rules allow the 'sandwich' class to also buy design, build and sell scheme flats. -- ST PHOTO: CHEW SENG KIM
New Buangkok EC attracts keen interest
300 at showflat viewing of first new executive condo project in 5 years
By Esther Teo
HOME buyers showed keen interest at a viewing of Esparina Residences near Buangkok MRT Station yesterday - the first new executive condominium (EC) up for sale in five years.
Despite light rain, more than 300 potential buyers visited the showflat yesterday, with 220 registering interest in a ballot next Friday to book a preferred unit.
They came in droves even though new rules allow the so-called sandwich class - households earning between $8,000 to $10,000 - to also buy the cheaper design, build and sell scheme (DBSS) flats.
The EC is among the first new housing projects to hit the market since new rules unveiled in August to curb speculation.
Experts say the keen interest was due to the limited supply of ECs, pent-up demand from first-time home buyers, and affordable price tags for smaller units.
These flats boast condo-like facilities and were once the only way the sandwich class - ineligible for build-to-order (BTO) flats - could buy new HDB flats.
But they can now buy DBSS flats after the Government raised the income cap for these homes to $10,000. The last DBSS project launched was Parc Lumiere in Simei in April last year.
Esparina developer Frasers Centrepoint Homes said many of those visiting yesterday were young couples, young families and professionals under 40.
The 99-year leasehold project with 573 units will be the first EC launched since Far East's La Casa in Woodlands in 2005. Units range from 829 sq ft for a two-bedroom flat to 2,583 sq ft for a four-bedroom penthouse, with prices ranging from $730 to $750 per sq ft on average, Frasers said.
Two-bedders will be sold for between $590,000 and $723,000, three-bedders for between $697,000 and $981,000, and four-bedders at $1.005 million to $1.181 million. Penthouse prices will range from $864,000 to $1.3 million.
Frasers will also offer 71 dual-key units - a studio attached to either a two- or three-bedder - to cater to extended families who want to live close together.
Frasers chief operating officer Cheang Kok Kheong said the keen interest was driven by a sandwich class aspiring to the lifestyle element that an EC offers: 'The sandwich class is very interesting because with their income at $10,000, they must be rising up the corporate ladder somehow, or having their own businesses, so their expectations are high but yet they want something to start with first.'
Although up to 30 per cent might be interested in DBSS flats, the other 70 per cent like condo facilities, and this would sustain demand, Mr Cheang said.
ERA Asia-Pacific associate director Eugene Lim said that demand was expected to be strong since it was the logical and affordable choice for the sandwich class.
'DBSS flats might be priced lower but they lack facilities; an EC is more lifestyle-driven and many home buyers aspire to live in condos,' he added.
But one industry player said that the pricing of Esparina was on the high side. ECs are usually about 20 per cent below private condos to make up for their sale restrictions, he said. 'With NV Residences in Pasir Ris selling at $830 psf, the pricing here might not be that attractive.'
One potential buyer, who wanted to be known only as Mrs Ong, said she and her husband of two years will apply for Esparina's ballot as they had been unable to get a flat through the BTO scheme. They are now above the $8,000 income ceiling.
'Compared with an HDB resale flat, we feel an EC provides more value for money,' she said, adding the facilities would be good as they have a child.
esthert@sph.com.sg
More than 300 attended an Esparina Residences viewing yesterday, even though new rules allow the 'sandwich' class to also buy design, build and sell scheme flats. -- ST PHOTO: CHEW SENG KIM
ST : Shatec in $4m rental dispute
Oct 1, 2010
Shatec in $4m rental dispute
Company sues tourism training school over lease on building space
By Selina Lum
HOSPITALITY and tourism training school Shatec is being sued for nearly $4million in a rental dispute.
The company that has filed the lawsuit, multimedia products manufacturer and distributor General Magnetics, claims it had leased out space in its building in Toa Payoh to Shatec, but the school repeatedly pushed back the handover date.
It also refused to take over the premises or to formalise the tenancy agreement, said General Magnetics. The company, in its suit filed last week in the High Court, is claiming $3.98 million in rent from August last year to 2012.
In the second half of 2008, it appointed Savills to handle the leasing out of the first three storeys of its five-storey GenMag building in Lorong 4 Toa Payoh.
It said in court filings that around October, Shatec - set up in 1983 as the training arm of the Singapore Hotel Association - indicated through Savills that it was keen to rent the space and use it as a food catering and ancillary training centre.
General Magnetic, represented by Mr Adrian Wong, claims there was an agreement to lease out the premises to Shatec. A letter dated Nov 3, 2008 offered Shatec the five floors, totalling 104,185 sq ft, at $1.30 per sq ft.
The rent for the first three floors, about $86,000, was payable in advance, while that for the fourth and fifth floors was to be paid on handover.
General Magnetics claims that the terms and conditions were 'unconditionally and irrevocably' accepted by Shatec. To formalise the lease, draft agreements were circulated.
In March last year, General Magnetics told Shatec that it was ready to hand over the first three floors, but Shatec refused to take delivery until approvals from the relevant authorities were obtained.
It was later agreed that the first three floors would be handed over on the Housing Board's approval, and the fifth floor, two months after that.
On April 23, General Magnetics received in-principle approval from HDB to change the use of the premises to a food catering and training centre, and told Shatec it would hand over the building by May 1.
Shatec asked for this to be delayed until May 30. General Magnetics delayed the handover to May 15, and a draft agreement with this new date was sent to Shatec, but it went unsigned.
Later, the handover was again pushed to June 29, and still Shatec asked for another extension.
On July 13, when the school was asked again to finalise the tenancy agreement, it said the document had to be cleared by its board, which would take a few weeks.
After the board meeting, the two sides could not agree on the issues of the capping of rent and the availability of the fourth floor.
General Magnetics then pressed Shatec to sign the agreement by Aug 25. The school brought up three matters to be resolved, and the deadline was pushed to Sept 1.
That day, Shatec asked for two more rent-free months to fit out the building, but General Magnetics rejected this.
At a meeting on Sept 9, Shatec asked General Magnetics to waive a month's rent. The company said it would waive half a month's rent if Shatec returned a signed copy of the agreement.
The school asked for more time. In its suit, General Magnetics said it has not received a signed agreement from Shatec.
Contacted by The Straits Times, Shatec said it will be 'vigorously defending the claim'.
selinal@sph.com.sg
--------------------------------------------------------------------------------
Key dates
· October 2008: Shatec indicated it was keen to rent General Magnetics' five-storey building in Toa Payoh.
· March 2009: General Magnetics told Shatec it was ready to hand over the first three floors, but Shatec refused to take delivery.
· April 2009: General Magnetics received in-principle approval from the HDB to change the use of the premises to a food catering and training centre.
· July 2009: When Shatec was again asked to finalise the tenancy agreement, it said the agreement had to be approved by its board.
· Sept 1, 2009: Shatec asked for two more months rent-free so it could fit out the building, but General Magnetics rejected this.
· Sept 9, 2009: At a meeting Shatec asked General Magnetics to waive a month's rent, and again asked for more time.
Shatec in $4m rental dispute
Company sues tourism training school over lease on building space
By Selina Lum
HOSPITALITY and tourism training school Shatec is being sued for nearly $4million in a rental dispute.
The company that has filed the lawsuit, multimedia products manufacturer and distributor General Magnetics, claims it had leased out space in its building in Toa Payoh to Shatec, but the school repeatedly pushed back the handover date.
It also refused to take over the premises or to formalise the tenancy agreement, said General Magnetics. The company, in its suit filed last week in the High Court, is claiming $3.98 million in rent from August last year to 2012.
In the second half of 2008, it appointed Savills to handle the leasing out of the first three storeys of its five-storey GenMag building in Lorong 4 Toa Payoh.
It said in court filings that around October, Shatec - set up in 1983 as the training arm of the Singapore Hotel Association - indicated through Savills that it was keen to rent the space and use it as a food catering and ancillary training centre.
General Magnetic, represented by Mr Adrian Wong, claims there was an agreement to lease out the premises to Shatec. A letter dated Nov 3, 2008 offered Shatec the five floors, totalling 104,185 sq ft, at $1.30 per sq ft.
The rent for the first three floors, about $86,000, was payable in advance, while that for the fourth and fifth floors was to be paid on handover.
General Magnetics claims that the terms and conditions were 'unconditionally and irrevocably' accepted by Shatec. To formalise the lease, draft agreements were circulated.
In March last year, General Magnetics told Shatec that it was ready to hand over the first three floors, but Shatec refused to take delivery until approvals from the relevant authorities were obtained.
It was later agreed that the first three floors would be handed over on the Housing Board's approval, and the fifth floor, two months after that.
On April 23, General Magnetics received in-principle approval from HDB to change the use of the premises to a food catering and training centre, and told Shatec it would hand over the building by May 1.
Shatec asked for this to be delayed until May 30. General Magnetics delayed the handover to May 15, and a draft agreement with this new date was sent to Shatec, but it went unsigned.
Later, the handover was again pushed to June 29, and still Shatec asked for another extension.
On July 13, when the school was asked again to finalise the tenancy agreement, it said the document had to be cleared by its board, which would take a few weeks.
After the board meeting, the two sides could not agree on the issues of the capping of rent and the availability of the fourth floor.
General Magnetics then pressed Shatec to sign the agreement by Aug 25. The school brought up three matters to be resolved, and the deadline was pushed to Sept 1.
That day, Shatec asked for two more rent-free months to fit out the building, but General Magnetics rejected this.
At a meeting on Sept 9, Shatec asked General Magnetics to waive a month's rent. The company said it would waive half a month's rent if Shatec returned a signed copy of the agreement.
The school asked for more time. In its suit, General Magnetics said it has not received a signed agreement from Shatec.
Contacted by The Straits Times, Shatec said it will be 'vigorously defending the claim'.
selinal@sph.com.sg
--------------------------------------------------------------------------------
Key dates
· October 2008: Shatec indicated it was keen to rent General Magnetics' five-storey building in Toa Payoh.
· March 2009: General Magnetics told Shatec it was ready to hand over the first three floors, but Shatec refused to take delivery.
· April 2009: General Magnetics received in-principle approval from the HDB to change the use of the premises to a food catering and training centre.
· July 2009: When Shatec was again asked to finalise the tenancy agreement, it said the agreement had to be approved by its board.
· Sept 1, 2009: Shatec asked for two more months rent-free so it could fit out the building, but General Magnetics rejected this.
· Sept 9, 2009: At a meeting Shatec asked General Magnetics to waive a month's rent, and again asked for more time.
BT : China's property stocks jump despite new curbs
Business Times - 01 Oct 2010
China's property stocks jump despite new curbs
Rally likely to be short-lived because of sector's cloudy outlook: traders
(SHANGHAI) China's property shares unexpectedly soared yesterday, a day after the government announced fresh measures to subdue bubbly real estate prices.
Shanghai's property sub-index closed up 3.9 per cent, with one major developer, Poly Real Estate Group Co Ltd, climbing 8.9 per cent.
Traders said investors were jumping back into the market after a slump in property shares since mid-April, in response to a clampdown on real estate speculation.
But they cautioned that the rally was likely to be short-lived because of a cloudy outlook for the sector.
Surging property prices that are unbalancing the economy have become a serious headache for the government and pose a potential threat to social stability. Prices are beyond the reach of large segments of the population.
Following up on its April campaign, Beijing on Wednesday instructed banks to demand a downpayment of at least 30 per cent from all mortgage applicants and to restrict loans to buyers of third homes.
'The market was expecting negative news on new property controls, so now that the information is out, property companies like Vanke which have been in a continuous slump are able to gain,' said Ren Chengde, an analyst at Galaxy Securities in Shanghai.
Shanghai's stock market, one of the world's worst-performing bourses, gained 11 per cent in the third quarter but is still down nearly 21 per cent so far this year. China's restrictions on bank lending and the property market have taken a toll despite robust economic growth.
Industry experts said the government had responded to a rebound in property transactions and prices, worrying that they could set the stage for a new flurry of speculative buying.
'The new steps were taken at the perfect time, when potential buyers are hesitating whether to enter the market,' said Liu Yuan, a senior research manager at the Centaline Group, a leading domestic property service and research institution.
Property companies helped the Shanghai market close up 1.7 per cent at a three-week high.
The country's largest listed developer, China Vanke Co Ltd jumped 7.6 per cent, while Gemdale Corp rose 5.3 per cent.
China's property inflation slowed to 9.3 per cent in the year to August, down from a peak of 12.8 per cent in April. But real estate investment has remained buoyant, with growth picking up to 34.1 per cent in the year to August from 33 per cent in July.
'These gains may just be a short-term burst. I expect property shares could gain a maximum of 10-15 per cent,' said Zheng Weigang, a senior trader at Shanghai Securities. -- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
China's property stocks jump despite new curbs
Rally likely to be short-lived because of sector's cloudy outlook: traders
(SHANGHAI) China's property shares unexpectedly soared yesterday, a day after the government announced fresh measures to subdue bubbly real estate prices.
Shanghai's property sub-index closed up 3.9 per cent, with one major developer, Poly Real Estate Group Co Ltd, climbing 8.9 per cent.
Traders said investors were jumping back into the market after a slump in property shares since mid-April, in response to a clampdown on real estate speculation.
But they cautioned that the rally was likely to be short-lived because of a cloudy outlook for the sector.
Surging property prices that are unbalancing the economy have become a serious headache for the government and pose a potential threat to social stability. Prices are beyond the reach of large segments of the population.
Following up on its April campaign, Beijing on Wednesday instructed banks to demand a downpayment of at least 30 per cent from all mortgage applicants and to restrict loans to buyers of third homes.
'The market was expecting negative news on new property controls, so now that the information is out, property companies like Vanke which have been in a continuous slump are able to gain,' said Ren Chengde, an analyst at Galaxy Securities in Shanghai.
Shanghai's stock market, one of the world's worst-performing bourses, gained 11 per cent in the third quarter but is still down nearly 21 per cent so far this year. China's restrictions on bank lending and the property market have taken a toll despite robust economic growth.
Industry experts said the government had responded to a rebound in property transactions and prices, worrying that they could set the stage for a new flurry of speculative buying.
'The new steps were taken at the perfect time, when potential buyers are hesitating whether to enter the market,' said Liu Yuan, a senior research manager at the Centaline Group, a leading domestic property service and research institution.
Property companies helped the Shanghai market close up 1.7 per cent at a three-week high.
The country's largest listed developer, China Vanke Co Ltd jumped 7.6 per cent, while Gemdale Corp rose 5.3 per cent.
China's property inflation slowed to 9.3 per cent in the year to August, down from a peak of 12.8 per cent in April. But real estate investment has remained buoyant, with growth picking up to 34.1 per cent in the year to August from 33 per cent in July.
'These gains may just be a short-term burst. I expect property shares could gain a maximum of 10-15 per cent,' said Zheng Weigang, a senior trader at Shanghai Securities. -- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : CDL sells The Corporate Office for $215m
Business Times - 01 Oct 2010
CDL sells The Corporate Office for $215m
Price around $1,956 psf of net lettable area; buyer led by Oxley Holdings
By KALPANA RASHIWALA
(SINGAPORE) City Developments Ltd (CDL) is said to be selling a 21-storey freehold office block at the corner of Robinson Road and McCallum Street for $215 million.
The buyer of The Corporate Office is understood to be a consortium led by Oxley Holdings group. The price works out to $1,956 per square foot based on the building's net lettable area of 109,920 sq ft.
The Corporate Office, which is about 25 years old, has 112 carpark lots, something of a rarity in office towers in that part of the CBD. About 15 per cent of the building's net lettable area is currently vacant and the lease for a further 7-8 per cent of space is said to expire early next year. But that's not necessarily a bad thing for the buyers.
Sources suggest that Oxley - which is headed by Ching Chiat Kwong - is looking to move its headquarters into The Corporate Office. The group currently operates out of Singapore Land Tower in Raffles Place and is said to be gunning for an initial public offer by year end. Oxley has been in the news lately for developing projects with shoebox apartments, including Suites@Guillemard and VivaVista in Pasir Panjang.
On the group's purchase of The Corporate Office along Robinson Road, market watchers suggest that in the medium term, Oxley and its partners may consider redeveloping the property, which has a land area of 16,032 sq ft, into a residential project with commercial use on the first storey or into a commercial-residential development. Under Master Plan 2008, the site is zoned for commercial use with an 11.2+ plot ratio (ratio of maximum potential gross floor area to land area). The site can be developed up to 35 storeys high. The Corporate Office's existing gross floor area is said to reflect a plot ratio of about 9.27, which points to some unutilised plot ratio.
DTZ is thought to have brokered the sale of The Corporate Office through a private treaty deal. The property consultancy also brokered the sale of Chow House next door a couple of months ago for $101 million to a group led by WyWy Group' founder, YY Wong.
The price for Chow House, a six-storey freehold office block which has redevelopment potential, is said to work out to about $1,300 per square foot per plot ratio assuming it is redeveloped into apartments. The site has a land area of 9,084 sq ft and is zoned for commercial use with an 11.2+ plot ratio under Master Plan 2008. However, outline planning permission has been granted to redevelop the Chow House site into residential use with commercial use on the first storey.
Chow House sits between The Corporate Office and another CDL-owned property - The Corporate Building.
The property giant's sale of The Corporate Office is its latest divestment of non-core assets. In recent years, CDL has also sold North Bridge Commercial Complex (near Bugis Junction), The Office Chamber along Jalan Besar, Chinatown Point mall, and Commerce Point near Raffles Place MRT Station.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
CDL sells The Corporate Office for $215m
Price around $1,956 psf of net lettable area; buyer led by Oxley Holdings
By KALPANA RASHIWALA
(SINGAPORE) City Developments Ltd (CDL) is said to be selling a 21-storey freehold office block at the corner of Robinson Road and McCallum Street for $215 million.
The buyer of The Corporate Office is understood to be a consortium led by Oxley Holdings group. The price works out to $1,956 per square foot based on the building's net lettable area of 109,920 sq ft.
The Corporate Office, which is about 25 years old, has 112 carpark lots, something of a rarity in office towers in that part of the CBD. About 15 per cent of the building's net lettable area is currently vacant and the lease for a further 7-8 per cent of space is said to expire early next year. But that's not necessarily a bad thing for the buyers.
Sources suggest that Oxley - which is headed by Ching Chiat Kwong - is looking to move its headquarters into The Corporate Office. The group currently operates out of Singapore Land Tower in Raffles Place and is said to be gunning for an initial public offer by year end. Oxley has been in the news lately for developing projects with shoebox apartments, including Suites@Guillemard and VivaVista in Pasir Panjang.
On the group's purchase of The Corporate Office along Robinson Road, market watchers suggest that in the medium term, Oxley and its partners may consider redeveloping the property, which has a land area of 16,032 sq ft, into a residential project with commercial use on the first storey or into a commercial-residential development. Under Master Plan 2008, the site is zoned for commercial use with an 11.2+ plot ratio (ratio of maximum potential gross floor area to land area). The site can be developed up to 35 storeys high. The Corporate Office's existing gross floor area is said to reflect a plot ratio of about 9.27, which points to some unutilised plot ratio.
DTZ is thought to have brokered the sale of The Corporate Office through a private treaty deal. The property consultancy also brokered the sale of Chow House next door a couple of months ago for $101 million to a group led by WyWy Group' founder, YY Wong.
The price for Chow House, a six-storey freehold office block which has redevelopment potential, is said to work out to about $1,300 per square foot per plot ratio assuming it is redeveloped into apartments. The site has a land area of 9,084 sq ft and is zoned for commercial use with an 11.2+ plot ratio under Master Plan 2008. However, outline planning permission has been granted to redevelop the Chow House site into residential use with commercial use on the first storey.
Chow House sits between The Corporate Office and another CDL-owned property - The Corporate Building.
The property giant's sale of The Corporate Office is its latest divestment of non-core assets. In recent years, CDL has also sold North Bridge Commercial Complex (near Bugis Junction), The Office Chamber along Jalan Besar, Chinatown Point mall, and Commerce Point near Raffles Place MRT Station.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Frasers C'point launches Esparina Residences EC
Business Times - 01 Oct 2010
Frasers C'point launches Esparina Residences EC
FRASERS Centrepoint's new 573-unit executive condominium (EC), Esparina Residences, drew more than 300 visitors who took up 230 ballot numbers at the project's launch yesterday.
Apartment sizes at the Sengkang project range from 829 square feet for a two-bedroom flat to 2,583 sq ft for a four-bedroom penthouse. Prices range from $590,000 to $723,000 for a two-bedder; $697,000 to $981,000 for a three-bedder; and $1 million to $1.18 million for a four-bedroom unit. Penthouses are priced at between $864,000 and $1.3 million. Applications are open until Oct 5. Successful applicants will be issued a ballot number. On Oct 8, they will get priority to enter the showflat for the balloting and booking of units. Those without a ballot number will be admitted to the showflat only after all ballot numbers have been processed.
Frasers Centrepoint, which is the property arm of Fraser and Neave, said 71 units - or 12 per cent of all apartments - at Esparina Residences will be dual-key units. This means they can be divided into two separate apartments with different entrances. The design was conceptualised and introduced at Frasers Centrepoint's Caspian and 8@Woodleigh condominiums. More such units are available at Esparina Residences due to their past popularity, said Cheang Kok Kheong, chief executive of Frasers Centrepoint Homes. 'These dual-key units were snapped up very quickly in our previous launches,' he said.
There will also be seven thematic spas in the development. ECs are a hybrid of public and private housing. New ECs are sold with initial eligibility, ownership and resale restrictions similar to public housing, but these restrictions cease to apply after 10 years.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Frasers C'point launches Esparina Residences EC
FRASERS Centrepoint's new 573-unit executive condominium (EC), Esparina Residences, drew more than 300 visitors who took up 230 ballot numbers at the project's launch yesterday.
Apartment sizes at the Sengkang project range from 829 square feet for a two-bedroom flat to 2,583 sq ft for a four-bedroom penthouse. Prices range from $590,000 to $723,000 for a two-bedder; $697,000 to $981,000 for a three-bedder; and $1 million to $1.18 million for a four-bedroom unit. Penthouses are priced at between $864,000 and $1.3 million. Applications are open until Oct 5. Successful applicants will be issued a ballot number. On Oct 8, they will get priority to enter the showflat for the balloting and booking of units. Those without a ballot number will be admitted to the showflat only after all ballot numbers have been processed.
Frasers Centrepoint, which is the property arm of Fraser and Neave, said 71 units - or 12 per cent of all apartments - at Esparina Residences will be dual-key units. This means they can be divided into two separate apartments with different entrances. The design was conceptualised and introduced at Frasers Centrepoint's Caspian and 8@Woodleigh condominiums. More such units are available at Esparina Residences due to their past popularity, said Cheang Kok Kheong, chief executive of Frasers Centrepoint Homes. 'These dual-key units were snapped up very quickly in our previous launches,' he said.
There will also be seven thematic spas in the development. ECs are a hybrid of public and private housing. New ECs are sold with initial eligibility, ownership and resale restrictions similar to public housing, but these restrictions cease to apply after 10 years.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Top bid for Pasir Ris site from Frasers Centrepoint, Far East
Business Times - 01 Oct 2010
Top bid for Pasir Ris site from Frasers Centrepoint, Far East
FRASERS Centrepoint and Far East Organization have jointly put in the top bid of $151.4 million, or $335 per square foot per plot ratio (psf ppr) for a residential site at Pasir Ris.
Just four bids were received for the 99-year leasehold site at the junction of Pasir Ris Drive 3 and Pasir Ris Drive 4 at close of the state tender yesterday.
Frasers Centrepoint and Far East plan to build a project with 400-450 units through a 50:50 joint venture if the site is awarded to them. The project, which will be completed in about five years, will target HDB upgraders in the east and the vicinity.
The offer by the two developers was 8 per cent above the second-highest offer of $140.7 million or $311 psf ppr from Hoi Hup Realty, Sunway Developments and SC Wong Holdings.
The two other bids came from Allgreen Properties ($131.9 million or $292 psf ppr) and Meadows Investment ($106 million or $234 psf ppr).
The tender result mirrors that for an executive condominium site at Punggol which closed on Sept 23 and drew just four bids.
Since the government introduced new measures to cool the property market on Aug 30, developers have been increasingly cautious with land tender bids, said Nicholas Mak, executive director of SLP International Property Consultants.
He also noted that in the current second half-year, no Reserve List site has been triggered for tender as the government is pushing out a large supply of land under the Confirmed List.
The top bid of $335 psf ppr for the Pasir Ris site translates to a breakeven cost of $650-$680 psf, said Li Hiaw Ho, executive director of CBRE Research. He expects that units in the new residential project could sell for about $800 psf.
CBRE's data shows that private homes nearby have been selling for around that price.
Around 350 units at the nearby NV Residences have reportedly been sold at an average price of $835 psf in the past month. And units at Livia, adjacent to NV Residences, went for between $720 psf and $840 psf between July and September. Over at Elias Road, units at Oasis@Elias sold at between $650 psf and $740 psf in the same period.
Separately, the Urban Redevelopment Authority yesterday released detailed sale conditions for an industrial site at Woodlands Avenue 12.
Developers interested in purchasing the site can now apply to URA for it to be put up for tender.
The 60-year leasehold parcel - the first of four new sites to be released for sale under the Reserve List of the government's H2 2010 industrial land sales programme - covers about 2.1 ha and has a gross plot ratio of 2.5.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Top bid for Pasir Ris site from Frasers Centrepoint, Far East
FRASERS Centrepoint and Far East Organization have jointly put in the top bid of $151.4 million, or $335 per square foot per plot ratio (psf ppr) for a residential site at Pasir Ris.
Just four bids were received for the 99-year leasehold site at the junction of Pasir Ris Drive 3 and Pasir Ris Drive 4 at close of the state tender yesterday.
Frasers Centrepoint and Far East plan to build a project with 400-450 units through a 50:50 joint venture if the site is awarded to them. The project, which will be completed in about five years, will target HDB upgraders in the east and the vicinity.
The offer by the two developers was 8 per cent above the second-highest offer of $140.7 million or $311 psf ppr from Hoi Hup Realty, Sunway Developments and SC Wong Holdings.
The two other bids came from Allgreen Properties ($131.9 million or $292 psf ppr) and Meadows Investment ($106 million or $234 psf ppr).
The tender result mirrors that for an executive condominium site at Punggol which closed on Sept 23 and drew just four bids.
Since the government introduced new measures to cool the property market on Aug 30, developers have been increasingly cautious with land tender bids, said Nicholas Mak, executive director of SLP International Property Consultants.
He also noted that in the current second half-year, no Reserve List site has been triggered for tender as the government is pushing out a large supply of land under the Confirmed List.
The top bid of $335 psf ppr for the Pasir Ris site translates to a breakeven cost of $650-$680 psf, said Li Hiaw Ho, executive director of CBRE Research. He expects that units in the new residential project could sell for about $800 psf.
CBRE's data shows that private homes nearby have been selling for around that price.
Around 350 units at the nearby NV Residences have reportedly been sold at an average price of $835 psf in the past month. And units at Livia, adjacent to NV Residences, went for between $720 psf and $840 psf between July and September. Over at Elias Road, units at Oasis@Elias sold at between $650 psf and $740 psf in the same period.
Separately, the Urban Redevelopment Authority yesterday released detailed sale conditions for an industrial site at Woodlands Avenue 12.
Developers interested in purchasing the site can now apply to URA for it to be put up for tender.
The 60-year leasehold parcel - the first of four new sites to be released for sale under the Reserve List of the government's H2 2010 industrial land sales programme - covers about 2.1 ha and has a gross plot ratio of 2.5.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Office investment deals surge in Q3
Business Times - 01 Oct 2010
PROPERTY
Office investment deals surge in Q3
Retail property deals jump from $6.8m in Q2 to $250m in Q3
By UMA SHANKARI
THE property investment market gained further momentum in the third quarter of this year, as transactions in the rebounding office sector crossed $1 billion - a level not breached since Q2 2008.
And the tally does not include deals for Chow House, Samsung Hub and Chevron House, which are pending legal completion.
Figures compiled by DTZ Research show office investment deals more than quadrupled quarter on quarter in Q3 to $1.7 billion, driven by the sale of DBS Towers 1 & 2. The $870.5 million that Overseas Union Enterprises paid for the two buildings accounted for half of all office sales.
Deals involving retail properties also jumped significantly, from just $6.8 million in Q2 to $250 million in Q3, partly due to the sale of 287 strata-titled units in Chinatown Point to a consortium led by Perennial Real Estate Group.
'The upturn in the commercial property market is creating opportunities for buyers and sellers,' said Shaun Poh, senior director for investment advisory services and auction at DTZ. 'More sales are envisaged in the next few months as a few deals are being finalised.'
Growing demand is likely to be hampered by a lack of supply, he said. Total investment sales in Q3 rose to $6.1 billion, up 23 per cent from $5 billion in Q2 2010.
Residential property investments hit $1.9 billion in Q3, accounting for the largest share - about 30 per cent - of all investment purchases.
Unlike in Q2 2010, when investments were mainly geared towards government land sales of residential sites, the private sector had a 59 per cent share of all residential transactions in Q3.
More than half of the private residential investment amount came from the collective sale market. Bulk purchases of luxury condominium units by institutions and funds accounted for the rest.
Collective sale deals totalled $634.8 million in Q3 2010, up from $329.9 million in Q2.
In contrast, government land sales of residential sites were less buoyant. After 15 sites were sold in the first half of the year, and with plenty of parcels yet to be released, government sales of residential sites fell 59 per cent quarter on quarter to $760.9 million in Q3.
The industrial segment gained ground during the quarter, with transactions rising 65 per cent quarter on quarter to $758.3 million.
Investment figures compiled by DTZ Research comprise transactions of more than $5 million. They exclude about $1.4 billion of transactions involving single residential units, lots that cannot be redeveloped or subdivided and deals deemed to be interested person or party transactions.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
PROPERTY
Office investment deals surge in Q3
Retail property deals jump from $6.8m in Q2 to $250m in Q3
By UMA SHANKARI
THE property investment market gained further momentum in the third quarter of this year, as transactions in the rebounding office sector crossed $1 billion - a level not breached since Q2 2008.
And the tally does not include deals for Chow House, Samsung Hub and Chevron House, which are pending legal completion.
Figures compiled by DTZ Research show office investment deals more than quadrupled quarter on quarter in Q3 to $1.7 billion, driven by the sale of DBS Towers 1 & 2. The $870.5 million that Overseas Union Enterprises paid for the two buildings accounted for half of all office sales.
Deals involving retail properties also jumped significantly, from just $6.8 million in Q2 to $250 million in Q3, partly due to the sale of 287 strata-titled units in Chinatown Point to a consortium led by Perennial Real Estate Group.
'The upturn in the commercial property market is creating opportunities for buyers and sellers,' said Shaun Poh, senior director for investment advisory services and auction at DTZ. 'More sales are envisaged in the next few months as a few deals are being finalised.'
Growing demand is likely to be hampered by a lack of supply, he said. Total investment sales in Q3 rose to $6.1 billion, up 23 per cent from $5 billion in Q2 2010.
Residential property investments hit $1.9 billion in Q3, accounting for the largest share - about 30 per cent - of all investment purchases.
Unlike in Q2 2010, when investments were mainly geared towards government land sales of residential sites, the private sector had a 59 per cent share of all residential transactions in Q3.
More than half of the private residential investment amount came from the collective sale market. Bulk purchases of luxury condominium units by institutions and funds accounted for the rest.
Collective sale deals totalled $634.8 million in Q3 2010, up from $329.9 million in Q2.
In contrast, government land sales of residential sites were less buoyant. After 15 sites were sold in the first half of the year, and with plenty of parcels yet to be released, government sales of residential sites fell 59 per cent quarter on quarter to $760.9 million in Q3.
The industrial segment gained ground during the quarter, with transactions rising 65 per cent quarter on quarter to $758.3 million.
Investment figures compiled by DTZ Research comprise transactions of more than $5 million. They exclude about $1.4 billion of transactions involving single residential units, lots that cannot be redeveloped or subdivided and deals deemed to be interested person or party transactions.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
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