ST : Ten Mile Junction's rail-themed facelift

Nov 3, 2010

Ten Mile Junction's rail-themed facelift

$28m makeover for mall near future Bukit Panjang MRT station; renamed Junction 10, it will be finished by end-2011

By Esther Teo




An artist's impression of the mall on the 99-year leasehold site. Hypermarket Giant will be its anchor tenant, occupying more than 30 per cent of the mall. -- PHOTO: FAR EAST ORGANIZATION

TEN Mile Junction mall is set for a $28 million makeover with a nostalgic railway theme, just as the nearby Malayan Railway line is to become a memory.

Still, plans for the residential and commercial 99-year leasehold site include a link to a modern railway. It is linked to the Ten Mile Junction LRT station and near the future Bukit Panjang MRT station, part of the upcoming Downtown Line 2.

The plans for the site at the junction of Choa Chu Kang Road and Woodlands Road were unveiled by developer Far East Organization yesterday.

The two-storey mall, expected to be completed by the end of next year after addition and alteration works are completed, will be renamed Junction 10, with 92,000 sq ft of net lettable area (NLA), up from 81,000 sq ft before. Unit sizes will range from 400 sq ft to 2,000 sq ft.

The mall's makeover will give it a link to its past as a railway junction by 'marrying modern 21st- century design elements with the nostalgia of railway travel', said Far East. Its decor will feature rail elements like timber sleepers, runners and rivets to give it a 'distinct railway-chic flavour'.

Mr Kelvin Ling, chief operating officer for Far East's retail business group, said that although the site is no longer a junction, it still serves as a meeting point for the LRT network.

It will be a small development that will provide a cosy setting and cater to middle-income earners, mainly young families and professionals, who make up the demographic profile of the area, he added.

Far East's executive director of development and planning Chng Kiong Huat said Junction 10 will be a fusion of Holland Village and its Greenwich V project in Seletar. 'When we did Greenwich V... everything was very green, very open. This is an enclosed Greenwich V; it's air-conditioned and things are much more comfortable. You still have restaurants on the outside,' he said.

Hypermarket Giant has already been secured as an anchor tenant, and will occupy more than 30 per cent of the mall. The remaining space will house retailers such as mid-priced eateries and family and lifestyle outlets, said Far East.

Rental rates will range from $12 per sq ft (psf) to $22 psf per month, it said. Experts say Ten Mile Junction's average rental is now less than $10 psf.

Knight Frank group managing director Danny Yeo said tenants would still bite despite rent increases if the new concept adds value to business.

'It is visible and easily accessible...The residential component and the pull of the hypermarket will also provide a catchment of shoppers,' he said.

Its catchment area is about 381,000 strong, including residents of Bukit Panjang, Upper Bukit Timah, Bukit Batok and Choa Chu Kang, as well as students and professionals from nearby areas.

Far East added that 338 Soho-type (small office, home office) units located above the mall will also be launched in the first quarter of next year. The entire project's construction costs are estimated to be $100 million.

esthert@sph.com.sg

ST : Condo manager and MCST settle dispute

Nov 4, 2010

JOBS CREDIT MONEY TUSSLE

Condo manager and MCST settle dispute



Both CKH Strata Management and Bayshore Park's MCST claimed to be the rightful employer of 13 site staff working at the condominium. -- ST PHOTO: LIM CHIN PING

THE condominium manager which sued Bayshore Park over a Jobs Credit money dispute has reached a settlement with the management corporation strata title (MCST).

CKH Strata Management, which had initially sued for $55,742 in unpaid management fees, has accepted a sum of $11,000 from the MCST following a pre-trial conference on Oct 27.

A week before that, the condo management company's managing director, Mr Chan Kok Hong, filed a civil suit against his former employers after the condo failed to pay the company its management fees from April to June last year.

In retaliation, Bayshore Park counter-sued for $83,705.

This included $13,917 in Jobs Credit money it claimed was not CKH's to take.

Each claimed to be the 'true employer' of 13 site staff working at the Upper East Coast condo.

The sum also included an amount of $48,778, which the condo wanted for 59 fire-rated doors, saying CKH had overcharged for them in 2008.

Bayshore Park's lawyer, Mr Kevin Kwek, said: 'It was a very good settlement, in favour of the MCST, in the light of the substantial amount that was deducted from what CKH wanted originally.'

But he said the Jobs Credit money dispute remains unresolved as a judgment was not made to determine which party should have the money.

The Jobs Credit scheme was introduced during the economic downturn last year as a quarterly cash payment from the Inland Revenue Authority of Singapore for every Singaporean and permanent resident on a company's Central Provident Fund (CPF) payroll.

The grant was 12 per cent of the first $2,500 of a worker's pay each month, designed to help employers retain their staff.

Mr Chan claimed he was the rightful employer of the condo's 13 site staff, because he decided on their 13th-month bonuses and CPF contributions were made in his company's name.

Bayshore Park claimed otherwise, saying that the management company was at most a facilitator, because the MCST has been paying the salaries and CPF contributions of the site staff.

CKH's lawyer, Mr Michael Low, declined to comment, citing a confidentiality clause in the settlement.

CHERYL ONG

ST : DBSS site at Bedok Reservoir draws six bids

Nov 3, 2010

DBSS site at Bedok Reservoir draws six bids

THE tender for a land parcel at Bedok Reservoir Crescent, slated for public housing, closed yesterday with six bids received.

CEL Development came out tops with a bid of $112.6 million, or $224.3 per sq ft per plot ratio (psf ppr) for the site, which could yield 430 homes under the Design, Build and Sell Scheme (DBSS). Analysts said the top bid was more subdued than bids in the past.

The second highest bid came from Kwan Hwee Investment, at $109.8 million or $218.7 psf ppr, which was just 3 per cent lower than CEL's. This was followed by a joint bid by Hoi Hup Realty, Sunway Developments and SC Wong Holdings, at $107.2 million or $213.3 psf ppr. At the bottom was a joint bid from United Engineers Developments and Maxdin at $88.2 million, or $175.5 psf ppr.

The site is located about 10 minutes' walk from Bedok Town Park MRT station, which is expected to be completed in 2017.

Mr Nicholas Mak, executive director of SLP International Property Consultants, said the top bid could translate to a break-even cost of about $430-$470 psf. He found the bids varied across a narrower range, compared to the previous tender for a DBSS site at Tampines Avenue 5/Central 8, where the top bid was $261 psf ppr.

But he doubts that the sites left available for sale before the end of the year, at Upper Serangoon Road and Yuan Ching Road, will fetch higher bids.

'They do not enjoy a close proximity to the nearby MRT station compared to this site at Bedok Reservoir Crescent,' he said.

CHERYL ONG

ST : Weeding out rogue property agents

Nov 3, 2010

Weeding out rogue property agents

IT WILL take a few years before new rules aimed at weeding out rogue property agents drive down the number of complaints, the Consumers Association of Singapore (Case) said yesterday.

Case director Seah Seng Choon made the prediction as it emerged that property agents are among the 10 most-complained-about professions here. A code of conduct for the industry, announced last month, is being enforced by a new statutory body, the Council for Estate Agencies (CEA).

Mr Seah said: 'It'll take a few years for agents and consumers to be more familiar with the rules. That's when I expect the complaints to go down.'

He was speaking at a PropNex Realty convention at Suntec convention centre, where the firm's book, The Ultimate Guide To Real Estate Investment In Singapore, was launched.

Last year, Case received 1,079 complaints against property agents for unsatisfactory service and making misleading claims. This makes the industry the sixth most-complained-about sector. The three most-complained- about sectors last year were timeshare (2,523 cases), beauty (2,060 cases) and education (1,843 cases).

The CEA has the authority to fine, suspend or revoke the licences of property agents who break the rules. From Jan 1, only CEA-registered agents will be allowed to work.

The new code bans agents from representing both buyer and seller, or referring clients to moneylenders. They must also have a system for handling complaints and follow advertising guidelines.

CHERYL ONG

ST : Govt keeping a close eye on property market

Nov 3, 2010

Govt keeping a close eye on property market

PRIME Minister Lee Hsien Loong said yesterday that the Government is keeping a close eye on the property market to avert the formation of an asset bubble.

Recent measures to cool the market have dampened sentiment, but liquidity is awash in the region, he told news agency Reuters in an interview on the risks facing Singapore.

Mr Lee also vowed to continue to take action if necessary, Reuters reported.

'Our property market has been taking off, which is causing some consternation,' he said.

'We have had a series of measures to squelch the property market, but liquidity is awash, sloshing around the whole region.

'We are watching carefully. The last set of measures were announced at the end of August, they seem to have dampened sentiment some, but we will have to watch and see.'

The latest Government measures to stem overheating include reducing the maximum loan for buying a second residential property, imposing stamp duty on owners who sell properties within three years of buying them and tighter restrictions on those buying HDB resale flats.

As for Singapore's future, Mr Lee said it could define itself as one of the world's most attractive global financial centres with a less reactive approach to currently emotional issues like regulation.

He noted the swift legislative responses to the financial crisis in countries such as the United States and Britain, saying: 'We want to maintain a system where there are adequate safeguards, but at the same time, the basic principle is free market and caveat emptor (buyer beware).'

He added: 'We are trying to be stable.

'I don't say that we are consciously less volatile than others, but I think it is good for us if we can maintain a stable long-term perspective and rise above the immediate pressures of the crisis at the moment.'

Mr Lee also touched on relations between the United States and China.

He said Singapore needed both countries to work out their differences to ensure prosperity.

'If that turns sour, a lot of things can go wrong,' he said, noting that the mood towards China was quite sour on the ground in the US.

'And not just among the unions and the Democratic (Party) left wing, but even the corporates, the businessmen.'

Mr Lee said he was worried that short-term thinking could lead to bad decisions.

'Nobody is speaking up to say 'please manage this with a long-term perspective',' he said.

But he was optimistic about the eventual health and development of both major powers' economies, even though both needed many years of transformation.

Beijing, he noted, required fundamental structural change to drive more domestic demand and investment.

'It is not going to happen overnight, but over 10 years, I see change,' he said.

The US needed to transcend the difficulties of domestic partisan politics to take tough decisions on fiscal policy.

'If you look at it on a five-year timeframe, you can't help being worried, but if you look at it in a 20-year timeframe, you say of all the economies in the world, the Americans are the ones most capable of re-inventing themselves,' Mr Lee said.


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WATCH AND SEE

'Our property market has been taking off, which is causing some consternation. We have had a series of measures to squelch the property market, but liquidity is awash, sloshing around the whole region...We are watching carefully. The last set of measures were announced at the end of August, they seem to have dampened sentiment some, but we will have to watch and see.'

Prime Minister Lee Hsien Loong

BT : Chip Eng Seng tops bid for DBSS site in Bedok

Business Times - 03 Nov 2010


Chip Eng Seng tops bid for DBSS site in Bedok

By EMILYN YAP

CHIP Eng Seng Corporation yesterday put in the highest bid for a public housing site at Bedok Reservoir Crescent.

The tender for the site - launched by the Housing & Development Board under the design, build and sell scheme (DBSS) - closed yesterday. Chip Eng Seng beat five other participants with a bid of $112.69 million or $224 per square foot per plot ratio (psf ppr).

The second highest bidder was Kwan Hwee Investment, linked to Low Keng Huat (Singapore). Its offer was $109.89 million or $219 psf ppr - just 2.5 per cent below Chip Eng Seng's.

Other developers which took part in the tender included Hoi Hup Realty, in partnership with Sunway Developments and SC Wong Holdings; Sim Lian Land; and a unit of Ho Lee Group.

A joint venture between United Engineers Developments and Maxdin Pte Ltd submitted the lowest bid of $88.2 million or $176 psf ppr.

This DBSS project will be Chip Eng Seng's first. The plot measures 179,400 sq ft, has a maximum gross floor area of 502,400 sq ft, and carries a lease term of 103 years (which takes into account a two-year construction period).

HDB estimates that 430 units can be built on the site. The estate will be between two green lungs - Bedok Reservoir Park and Bedok Town Park. In the vicinity, the new Bedok Town Park MRT station on Downtown Line 3 will be completed in 2017.

SLP International Property Consultants executive director Nicholas Mak estimates that Chip Eng Seng's bid could translate to a breakeven cost of about $430-470 psf.

A five-room flat in the project could be launched at about $590,000-620,000, he added.

Chip Eng Seng closed unchanged on the stock market yesterday at 40 cents.

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

ST : Land swop deal talks this month

Nov 2, 2010

Land swop deal talks this month

KUALA LUMPUR: Singapore and Malaysia officials will meet at the end of this month to continue working out details of a breakthrough land swop deal involving Malayan Railway land.

The meetings - the fourth in a series - will be held in Singapore, Deputy Foreign Minister Richard Riot told MPs in a Parliament session yesterday.

The Nov 29-30 meeting of the Malaysia-Singapore Joint Implementation Team, he said, would continue talks on the moving of the train station from Tanjong Pagar to Woodlands, setting up of a Customs, immigration and quarantine complex in Woodlands, and the setting up of M-S Pte Ltd. Both countries had agreed to set up this joint venture to develop six land parcels in Ophir-Rochor and Marina South involved in the land swop. Mr Riot noted the meetings would culminate in the signing of an agreement in Kuala Lumpur on Dec 31.

Both countries have noted that past meetings of the joint implementation team had proved successful. Yesterday, Mr Riot also stressed that the bilateral relationship was improving: 'The frequent visits between top leaders in both countries have contributed to strengthening the relationship. Such exchanges help increase cooperation and foster closer diplomatic and economic ties for mutual benefit.'

BERNAMA, THE STAR/ASIA NEWS NETWORK

ST : URA to call tender for Tanjong Pagar site

Nov 2, 2010

URA to call tender for Tanjong Pagar site

By Aaron Low

A HOTEL site in Tanjong Pagar, at the junction of Peck Seah Street and Gopeng Street, will be put up for sale by public tender in two weeks.

The Urban Redevelopment Authority said yesterday that an unnamed party has put in a bid of $94 million for the 0.23ha site, thereby triggering the tender process.

The 99-year leasehold site in the Central Business District is within walking distance of the Tanjong Pagar MRT station. It can yield a maximum gross floor area of about 208,992 sq ft and can be built up to 30 storeys.

A hotel on the site would do well mainly because there is a lack of quality four-star hotels in the CBD, said Mr Donald Han, managing director of real estate consultancy Cushman & Wakefield.

He expects bids to come in at between $650 and $750 per sq ft per plot ratio (psf ppr). The trigger bid was $450 psf ppr.

The Tanjong Pagar site has been on the Government's reserve list since February 2008.

Under this list of development sites, a site will be put up for tender only after a developer commits to a bid that reaches a minimum level set by the Government.

Mr Han said that the business convention sector is recovering well and noted that the Amara Singapore Hotel, which is situated nearby, is also doing well.

URA said: 'The successful sale and ongoing development of several new office high-rise residential and hotel sites in the area will further enhance the vibrancy and activities of the Tanjong Pagar commercial district.'

Separately, Asimont@Barker has been launched for collective sale at a reserve price of $68 million.

The 20-year-old, freehold low-rise condominium is situated off Barker Road near Anglo-Chinese School (Barker). It was first put up for collective sale in February 2008, several months before the global financial crisis broke out.

The owners then had set a reserve price of $75 million but did not manage to attract a single bid.

The site has an area of about 43,138 sq ft and with its new reserve price of $68 million, this works out to be about $1,175 psf ppr.

The marketing agent for the collective sale is Realtorhub Real Estate.

ST : Luxury home market sees good sales

Nov 2, 2010

Luxury home market sees good sales

Demand buoyed by low interest rates and potential for upside

By Esther Teo



About 75 per cent of 150 units at The Glyndebourne were snapped up at an average price of $2,100 per sq ft during a private preview which began last Friday. -- PHOTO: CITY DEVELOPMENTS

BUYERS appear to be returning to the high-end housing market, with strong sales at a string of recent luxury projects.

City Developments' (CDL) freehold project The Glyndebourne saw 112 apartments - or about 75 per cent - of the 150 units snapped up during a private preview which began last Friday.

The apartments - housed in eight blocks of five storeys each - were sold at an average price of $2,100 per sq ft (psf).

However, prices ranged from $1,900 psf to $2,350 psf, ranging from about $1.59 million for a one-bedroom plus study unit to about $7.15 million for a five-bedroom penthouse, CDL said.

The project - located on the Copthorne Orchid Hotel site - saw all one-bedroom with study, two-bedroom, and three-bedroom with study units sold. CDL said that 10 out of the 23 penthouses, which ranged from 3,541 sq ft to 3,563 sq ft, were also snapped up.

Seventy per cent of the buyers were local, with permanent residents and foreigners from countries such as Malaysia, Indonesia, South Korea and China making up the remaining 30 per cent.

CDL said that it had initially planned to release just 60 units in phase one of the preview. However, 'to cater to the strong demand', the firm released additional units progressively. It is managing the marketing of the condo on behalf of its hotel unit Millennium & Copthorne Hotels, which owns the hotel.

This strong performance comes on the back of similarly strong sales at Allgreen Properties' 118-unit Suites at Orchard. In the first two days after it went on sale last month, about 65 apartments were sold in the $2,000 to $2,200 psf range.

SC Global also sold a penthouse last month at The Boulevard Residence for $30 million, or $4,242 psf. Both in terms of the total price and the price psf, this is the highest achieved in the development.

Experts said that high-end homes have done well because of the low interest rate environment and the fact that luxury segment prices have yet to surpass their previous peak. There is also plenty of liquidity still in the market, they added.

Cushman & Wakefield managing director Donald Han said that high-end prices are about 12 per cent lower than their peak in the first quarter of 2008, providing investors, who were looking to park their money in good and stable investments, with the potential for upside.

It is the only segment of the property market here that has yet to surpass its previous price peak.

'The bottom line is that, as interest rates remain at historic lows, investors are looking for good opportunities and compelling buys to park their money,' he added.

A UOB Kay Hian report said that it expects high-end segment projects to do well in the coming months.

'They offer relatively better value compared to other segments and are well supported by lower interest rates and liquidity inflows,' it added.

Far East Organization also sold 30 units across its portfolio last week, including sales at Waterfront Gold in the Bedok Reservoir area; Vista Residences off Thomson Road; The Shore Residences in the Katong area; The Greenwich in Seletar Road; and Silversea in the East Coast area.

The firm will be officially launching the 214-unit The Lanai - which consists of two-, three- and four-bedroom units that range from 947 sq ft to 1,615 sq ft - along Hillview Avenue this weekend.

The 999-year leasehold project has already sold 76 units at a preview last month, which included a bulk purchase, with prices starting from $1,290 psf.

Industry players also said that several other high-end launches, such as Robinson Suites, Spottiswoode Residences and Helios Residences, might be launched soon.

They added that the launch of CapitaLand's former Farrer Court site, with more than 1,700 units, will also give further indications on the momentum in the high-end segment.

esthert@sph.com.sg


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MONEY TO BE MADE

'The bottom line is that as interest rates remain at historic lows, investors are looking for good opportunities and compelling buys to park their money.'

Mr Donald Han, Cushman & Wakefield managing director

ST : Surprise as 32,800 estate agents make cut

Oct 30, 2010

Surprise as 32,800 estate agents make cut

By Cheryl Ong

MORE than 32,000 property agents have met the minimum requirements for accreditation, despite the criteria being raised this year.

Enforcement by the Council for Estate Agencies (CEA), a new regulatory body, had been expected to root out a third of the 30,000 property agents thought to be practising here. So it has surprised the industry that 32,800 agents met the new, stricter requirements that kicked in a week ago, the CEA said yesterday.

A preliminary breakdown indicates that 70 per cent of those who made the cut had passed the industry exam; the rest did so by making at least three transactions in the last two years.

The statutory board, set up this year, required all estate agents to register with it by Nov 30. It will also require them to sit examinations and to stick to a code of ethics, failing which they and their agencies could be fined, suspended or have their licences revoked.

These moves follow growing complaints against property agents, and the need for some policing of the largely fragmented and self-regulating industry through mandatory licensing.

PropNex chief executive Mohamed Ismail said the surprisingly high number of agents who qualified for accreditation showed the actual number of agents here had been underestimated. 'All this while, we were groping in the dark. It really shows how badly the industry needs regulation,' he said.

But industry observers expect the number of agents to fall, with two more rounds of 'culling' coming before the year end.

The first of these is the Nov 30 deadline to register with the CEA. The other source of attrition will come from those with fraud convictions possibly not being cleared to practise. This is unlike the existing voluntary accreditation scheme, which lets agents rejoin the industry after their jail terms.

Dennis Wee Group director Chris Koh estimates the final tally of agents to be 25,000 by the year end.

Yesterday, the CEA listed the new rules effective from Nov 15: From that day, agents cannot represent both buyer and seller, or refer clients to moneylenders. Agencies must also have a system for handling complaints and follow advertising guidelines.

From Jan 1, only CEA-registered agents can work, and they must be covered by indemnity insurance.

Said Jurong GRC MP Halimah Yacob: 'You expect standards in every profession... If a property agent considers himself a professional, he should welcome the rules and regulations.'

ERA agent Shirley Chan, 65, said the rules are strict but necessary. 'The regulations make it clearer to us what behaviour flouts the rules, and makes us accountable for our actions,' she said

ST : Record bids for Sembawang land

Oct 29, 2010
Record bids for Sembawang land
Fourteen plots hotly contested, with 97 bidders registered
By Esther Teo

BIDDING was fast and furious yesterday as 14 land parcels along Sembawang Road earmarked for landed homes sold for $134.55 million, with prices hovering at record highs for the area. The hotly contested sites attracted an average of 50 bids each.

Analysts say a key factor for the keen interest was newly introduced flexible guidelines on building designs.

For instance, basements may protrude above the ground to let in more light.

Nine of the land parcels are being pilot-tested for the modified set of landed housing guidelines.

The auction by the Urban Redevelopment Authority (URA) of Phase Three of Sembawang Greenvale - right on the Johor Straits - attracted strong interest, mostly from smaller developers and individuals who turned up at the URA Centre in Maxwell Road.

A total of 97 bidders registered, more than six times that for the auction held for Phase Two in April 2008, which drew only 16 bidders.

Prices of the latest plots were $546 per sq ft (psf) of land area on average - more than double the previous phase's average of $223 psf, testament to the strong landed housing recovery.

The URA sold another 12 plots in nearby Phase One in October 2007 for about $285 psf on average.

The 99-year-leasehold plots - able to yield about 115 landed homes - include individual bungalow lots, small streetblock parcels each able to yield four to 17 terrace and semi-detached houses, and one parcel for a strata landed housing development.

Boutique property developer JBE Holdings, whose projects include Luxe Ville at Pasir Panjang Road and The Luxe at Handy Road, emerged tops, sweeping five sites - able to yield 39 terraces - for $43.35 million, or at $514 psf.

However, it also lodged the lowest winning bid of $443 psf, which worked out to a $7.16 million bid, for a 1,500sqm site on Penaga Place. The plot is able to yield six terrace units.

Fragrance Homes clinched the largest 3,796sqm site on Wak Hassan Drive, which can be developed into strata-landed or landed housing, for $26.15 million - a whopping $640 psf, the highest psf price.

Other successful bidders include Goodland Homes, MCS Development, Techcom Construction and Trading, and Sunway Developments.

However, the high prices also meant that some potential property investors went away empty-handed.

BuildTech Construction's W.P. Lim said he decided to try his hand at the auction as prices in the landed homes segment have skyrocketed in the past year. 'I was hoping to be able to develop some of the smaller sites to get some margins but prices are too high now, they are double that of the last round,' he said.

Experts say that the pent-up demand for landed homes, coupled with the limited supply, contributed to the strong bidding.

SLP International Property Consultants executive director Nicholas Mak that with the average price of landed properties rising by some 25 per cent since April 2008, developers are very confident of the landed housing market next year.

'Another factor that contributed to the fierce bidding today is the new...development guideline for landed housing, which allows the developer greater flexibility in the design and development, and possibly some cost saving as well,' he added.

Under the new guidelines, the URA will fix only the overall size of the house and do away with guidelines on internal features. Architects will gain more leeway in terms of the building's interior dimensions.

For instance, existing guidelines for the sites will be relaxed so homes built there can be four storeys, up from a limit of three now. Other options include loftier living rooms and more compact bedrooms.

According to URA data, landed home prices have surged by 24 per cent since the start of this year.

esthert@sph.com.sg

ST : Dispute over utility charges of $86,000

Oct 29, 2010

Dispute over utility charges of $86,000

Faulty transformer recorded lower power usage: SP

By Judith Tan



According to SP, Mr Phua paid a much lower bill for 3-1/2 years because the faulty transformer was sending irregular data. The terminals of the transformer - which is encased in a metal box - were corroded. -- ST PHOTO: CHEW SENG KIM

A BUSINESSMAN is disputing the utility charges he allegedly incurred, after the device meant for recording his consumption accurately failed.

Orchid farm owner Joseph Phua, who runs Orchidville, was shocked when Singapore Power (SP) Services sent him a bill in March for over $86,000 in back charges - for electricity used and not paid for in the last 3-1/2 years.

The reason: The terminals of the transformer, a device that transfers electrical energy from one circuit to another, were corroded, leading to irregular data.

Mr Phua said the hefty bill was a surprise as he had been paying about $10,000 a month for utilities since 2000 and had not defaulted once in his payments.

But according to SP, the transformer fault - discovered in November last year - resulted in Mr Phua, 56, paying a much lower bill for electricity used between April 2006 and November last year.

Mr Phua, however, countered that while he did pay, on average, between $1,500 and $2,600 less during the 3-1/2 years, he attributed the lower bill to cost-cutting measures he took during the economic downturn in 2006/2007.

He has appealed against the hefty bill, but is still being made to pay a monthly instalment of more than $9,000 while the appeal is being reviewed.

Mr Phua said: 'I was told to pay up despite my ongoing appeal otherwise (SP) would shut off my electricity. I am running a business here and I could not afford it doing so.'

The dispute, said lawyers The Straits Times spoke to, could be an interesting test case as it throws up the question of who should be liable for the upkeep of the sealed transformer - the service provider, which relies on it to assess usage, or the property owner.

Lawyer Chia Boon Teck said that on the face of it, the customer should not be liable since he has no access to the terminal point and no duty to maintain it.

He added: 'Even if the customer is contractually bound to maintain the transformer, he should seek legal advice.'

SP Services, however, is maintaining that the onus of ensuring that it is in good working condition lies with Mr Phua.

In an e-mail reply to The Straits Times, its spokesman said that under the Supply Handbook of Metering Requirement, customers are responsible for the maintenance of their transformers, which they own.

Yet, transformers are encased inside a steel box and secured with several seals, ensuring no tampering.

Under the law, anyone guilty of altering or tampering with any meter supplied by an electricity licensee can be fined up to $50,000 or jailed up to three years, or both.

An SP spokesman said while current transformers are sealed in a chamber, the customer can still look through the transparent plastic cover of the chamber and check visually for any oxidation.

Mr Phua also feels that SP's calculation of the back charges is unfair.

SP officials, in an e-mail message, told him that his average monthly electricity consumption before and during the irregularity was 21,000kwh. It was 32,000kwh after it was fixed.

Mr Phua said when SP calculated the difference in back charges, it did not consider two factors - the economic downturn of 2006/2007, and the fact that he had since expanded his business to include a restaurant in 2007 within the 43ha Mandai farm.

In the meantime, Mr Phua has little choice but to continue paying the back charges by instalments until the dispute over the electricity charges can be settled.

ST : Property firms less upbeat with market set to cool

Oct 29, 2010
Property firms less upbeat with market set to cool
Sentiment index for the next six months drops slightly following Govt's recent curbs
By Harsha Jethnani

PROPERTY companies are less optimistic about market conditions in the next six months, following the Government's introduction of cooling measures in August.

According to the third-quarter Real Estate Sentiment Index (Resi), the future sentiment index - which gauges sentiment about the next six months - dropped to 4.8 from 5.9 in the second quarter of the year.

Released yesterday, the quarterly questionnaire survey developed by the Real Estate Developers' Association of Singapore (Redas) and the National University of Singapore's Department of Real Estate (NUS DRE) polled 71 Redas members, of which 61 per cent were developers.

Although slightly less upbeat, developers did not expect the market to weaken significantly over the next six months, the survey found.

But fewer of them expected more new residential units to be launched in the next six months - 44 per cent as compared to 68 per cent in the second quarter of this year.

On prices, those questioned suggest levels will moderate over the coming months.

More than half - 54 per cent - anticipated residential prices remaining unchanged over the next two quarters, and 34 per cent saw them becoming moderately lower. Just 12 per cent thought they would rise, compared to 51 per cent when the survey was last conducted in June.

In a statement released yesterday, Associate Professor Sing Tien Foo of the NUS Department of Real Estate said 'the strong historical price growth is not likely to be sustained moving forward'.

Resi's composite sentiment index - an indicator of overall market sentiment - also dropped to 4.8 from 5.9, indicating that respondents were less upbeat and expected more uncertain market conditions over the near term.

The survey found that respondents were negative about prospects for the suburban residential market, expecting it to perform less well over the next six months.

The sector had a 'net balance percentage' of minus 43 per cent.

This figure indicates the overall direction of change in sentiment according to the Resi report.

Some 76 per cent of respondents anticipated that recent government measures would have a significant impact on the HDB resale market over the next half-year, and 65 per cent thought they would hit mass-market private housing. About 45 per cent of developers did not expect to see a change in the level of interest in government land sale (GLS) sites and collective sales, but 47 per cent thought interest for government land sale sites would reduce over the next six months, compared to 24 per cent in the last quarter.

About 33 per cent of developers anticipate less interest in collective sales, compared to 15 per cent in the previous quarter.

Redas chief executive Steven Choo said the divergent views reflected short-term uncertainty about market movements, 'but by and large, the development industry is expected to stay on course to meet demand in the housing market'.

harshamj@sph.com.sg

ST : Rules will benefit all in longer term

Oct 28, 2010

NEW HOUSING MEASURES

Rules will benefit all in longer term

WE REFER to Sunday's article ('HDB flat sellers left in tight spot by new rules').

The new measures announced on Aug 30 are designed to stabilise the property market and help more first-time home buyers. They seek to dampen demand from potential buyers not in urgent need of housing.

Specifically, the lower loan-to-valuation (LTV) limit of 70 per cent for those with outstanding loans encourages them to exercise greater financial prudence in their next housing purchase.

Resale flat buyers eligible for HDB concessionary loans are not affected by the measures, as they can get up to 90 per cent LTV, subject to credit assessment. Those who do not have an existing mortgage loan are also not affected by the new rules.

The article reported that sellers in more than half of resale transactions today are illegally overstaying in their flats after sale, due to the lower LTV requirement. This cannot be true. While more than half of resale transactions involve bank loans, the new rule applies only to buyers who take bank loans while they still have an existing loan for their current property. This group comprises less than 15 per cent of HDB resale transactions today. This was so even before Aug 30.

Moreover, among them, some buyers are eligible for HDB concessionary loans, but choose to take bank loans instead. While some flat sellers may also buy a private property, this is not a large number. Lastly, not all who are affected have interim housing problems.

The new rules are meant to encourage financial prudence. Buyers who do not have sufficient cash down payment due to the lower loan eligibility should reconsider buying another flat now, in order to avoid overstretching themselves. Sellers should carry out proper financial planning and ensure they have made subsequent housing arrangements before selling their flats.

To date, HDB has not received any appeal for special approval for the flat seller to continue staying in the flat temporarily after completion of sale.

We wish to highlight that while flat owners cannot sublet the entire flat within the minimum occupation period, they may sublet room(s). Those in doubt should check with HDB or seek advice from their agents. Agents should give correct and proper advice to their clients and not be involved in unauthorised subletting arrangements.

We wish to reiterate that the recent property measures will help to promote a more stable and sustainable property market over the longer term. This will benefit all parties, including those who may be temporarily inconvenienced.

Loh Swee Heng
Deputy Director (Resale)
Housing & Development Board

AsiaOne : Is buying or renting better?

Business @ AsiaOne

Is buying or renting better?

Explore the advantages and disadvantages of both renting and buying a property.

Fri, Oct 01, 2010
The Star/Asia News Network

By Chan Ai Cheng

In this article, we will explore the advantages and disadvantages of both renting and buying a property and in the process, help you decide which option will suit you best.

Why renting is better?

Time-efficient
Renting is the most logical choice when you need a place to move in immediately.

The property is already there for your choosing. True, you may have to spend some time looking at several houses before you decide on one that suits your fancy, but it is considerably faster than having to search, buy and renovate the property before you can move in.

With a rented property, all you have to do once you decide is to sign a tenancy agreement with your Landlord and you can move in when you are ready. Unlike the long process of purchasing a property, rental transactions can be completed within a day or two.

Furthermore, renting allows you the option of choosing a length of stay that you are most comfortable with. You can choose to rent on a monthly basis or opt for a longer period such as a year. With a payment of a small premium, you can even opt for a fully-furnished property, where you can just pack your bags and move in!

Flexible
For those who have not decided where to settle down, renting provides great flexibility as you may move out whenever you please. This is especially so for those who may need to move out on short notice.

For example, you receive a job offer in another location and wish to be closer to work. In this case, all you have to do is inform your Landlord to end your tenancy agreement. There may be a small fee as a penalty for early termination of the tenancy agreement but other than that, there won't be much stopping you from moving.

This would not be the case if you owned the property as you will have to go through the hassle of putting it up for sale, finding a suitable buyer and negotiating the price before you can move house with your mind at peace.

Responsibility of Repairs Falls on Others
You don't have to fret if a pipe bursts or the light goes off on you because you are not responsible for it.

Your Landlord is, and it is up to him or her to find a contractor to repair the problems.

Keeping in mind that repair costs can be quite high, it is a relief to know that your Landlord is also the one who pays for the repairs.

Your only responsibility is to pick up the phone and notify your Landlord of any problems with the property. The repair works are usually completed within 14 to 21 days of notification.

Less Upfront Cost Compared to Buying
The Landlord usually requires some upfront payments that are in accordance with the tenancy agreement. This common practice usually entails the following:

Security Deposit: 2-3 months' rent (refundable upon end of tenancy)
Advance Rental: 1 month's rent
Utility Deposit: 1 month's rent

Assuming that the rent is RM 2 500 ($1,066) per month, you will have to pay between RM 10 000 to RM 12 500 to your Landlord upon execution of the tenancy agreement.

Other expenses such as the water and electricity bills, cable and internet service are payments that you have to foot yourself, depending on your usage.

Occasionally, the property's maintenance fees are included in the rent, in accordance with the contents of the tenancy agreement. Of course, you are free to negotiate with your Landlord on what payments to include or exclude from the rent.

On the other hand, being a tenant, you are on the losing end if your Landlord decides to increase the rent or choose not to renew your tenancy upon the expiration of the tenancy agreement.

You will have to either put up with paying more or find a new place to move to in a hurry. Either way, you have no say in the matter as you have no ownership of the property, which also means that you will enjoy neither capital appreciation nor the chance to convert your property to investment property to generate more cash flows in the future.

Why buy?

Pride of ownership and security
When you buy a property, it is yours to decide whatever you want to do with it. You can demolish, re built, refurbish or redecorate any part you wish.

There is no need to worry about seeking the Landlord's permission or restoring the place to its original glory when your tenancy expires. Also, it will definitely give you peace of mind to know that your tenancy will never expire!

Pay towards Owning Your Own Home
It's a given that no matter you rent or buy property, you have to fork out cash.

The difference is rental payments go towards occupancy for a specific period of time, where ownership will never be in reach.

Loan repayments, meanwhile, lead towards total ownership of the property. If the figures are only slightly different, it is advisable to consider buying than renting as ownership of property is almost always preferred.

If you are not sure of how to pay for a property, seek advice from your local bank. You can also research on different bank mortgage plans and utilise the loan calculators available on most banks' websites to help figure out which loan repayment scheme most suits you.

Capital appreciation and conversion into investment property
When the value of a property increases, who else will gain most from it but you, the property's owner?

This is a great upside to buying compared to renting, where tenants will have to pay more for the increased value of the property.

If you must move to a new property but is unwilling to sell your old property, convert it into an investment property! This will help you to generate cash flows while at the same time, maintain your ownership over the place.

Hedge against inflation
One major attraction of owning property is that it has proven to be an effective hedge against inflation.

Research has shown that property values can be trusted to increase at a rate greater than inflation. This comes as good news as everyone wants to maintain, if not increase, their purchasing power against rising prices of goods and services.

A great disadvantage of buying property is the hefty upfront costs.

If you purchase a home in the secondary market, you have to bear a minimum of 10% of the cost of the property before the Sale and Purchase Agreement can be executed. The 90% balance must be settled within 90 days, of which is usually done by way of mortgage.

This will lead to monthly commitments of payments to the bank or financial institution for repayment of the mortgage. Then, there are the legal fees for the Sale and Purchase Agreement and Loan Agreement, Stamp Duties, Insurance, and monthly maintenance fees and sinking funds.

You must also take into account the cost to renovate and redecorate the place. You are the Landlord.

Therefore, if any appliance in your home is broken, you will have to fork out the money to repair it. If it cannot be repaired, you will have to pay a bigger amount to replace it entirely.

It would be a wise move to check on the sales price trends of the area in which your property is located. If prices spot a declining trend, then perhaps it is not worth your time and money to invest in that property after all.

Rent with the option to buy
This option is growing in popularity as it provides assurance of the mind, as the tenant is secure in having a place to stay. Some Landlords are willing to accept portions of the rent as downpayment towards the home, meaning that the ownership of the property will one day go to you.

In other instances, tenants are given the first right to refuse to purchase the property should the Landlord decide to sell the property while the tenancy is still in effect.

All these depend on the agreement achieved between the tenant and the Landlord. Although tenants usually are left in a lurch to look for a new place when new owners take over the property, some new Landlords do honour ongoing tenancies so existing tenants do not have to worry about moving out.

Conclusion
As appealing as being a property owner might sound, not everyone should rush out and purchase a property now.

There are other factors to be considered first, such as your financial situation, job, and etc.

Both renting and buying have their perks, but buying is almost always preferred as it can benefit you in the long run.

However, depending on what suits your needs, sometimes it is more worthwhile for you to rent first. When you are sure that you will be able to afford to purchase a property, it won't be too late for you to start doing so.

AsiaOne : How to buy choice property

Business @ AsiaOne

How to buy choice property

The glossy brochures selling a dream are lovely to collect, but it is difficult to turn the dream into reality without hard work. -myp

Tue, Oct 26, 2010
my paper

By Rachel Chan

AS CHEQUES fly at sell-out roadshows for overseas property, Mr Png Poh Soon, senior manager of consultancy & research at Knight Frank, gets a little worried.

The glossy brochures selling a dream are lovely to collect, but it is difficult to turn the dream into reality without hard work and thorough research, he said.

"Two in 10 people haven't visited the place in which they are buying property," the 33-year-old observed. "If you're putting money on a piece of swamp or a desert, that's it."

Many Singaporeans make the big mistake of assuming that Singapore's institutional framework applies similarly to foreign investments, he said.

He warned buyers not to be bowled over by promises of high rental yields or beautiful surroundings, and advised them to ask their agents some hard questions instead.

For example, is the "promised" rental yield of 7 per cent gross or net yield? Does the jurisdiction there charge capital-gains tax? How much would the agent charge for his fees? What will be the difference in price if there is no "rental guarantee"?

With bank interest rates being outstripped by rising inflation, many investors feel that it is more lucrative to invest in property offering guaranteed 7 per cent rental yields. Be that as it may, Mr Png urged prudence.

He pointed out that some countries, such as Vietnam, have inflation rates exceeding 10 per cent, making property investments there relatively less attractive.

Other pitfalls await the investor who is too eager to part with his hard-earned money, he said. For example, buyers often do not get a complete picture of a property by just visiting its roadshow.

"Sure, the sales agents know how large the rooms are and what amenities are available in the area, but you need to go beyond the product," said Mr Png.

Some due diligence is in order: Buyers should investigate the developer's track record and check if they are new to the market.

They should also find out who owns the land, and learn how they could be affected if the developer goes bankrupt.

Mr Png recalled that, during the early 1990s, some fly-by-night companies set up roadshows for properties that never materialised.

So, to prevent history from repeating itself, buyers need to do their homework before committing cash.

As for Mr Png, he lives in a five-room Housing Board flat in Ang Mo Kio, and he is still biding his time, waiting for the perfect opportunity to buy his second property.

He noted that the recent cooling measures introduced by the Government seem to be taking effect, with private home sales and HDB resale transactions dipping in the third quarter, according to the latest statistics released by the Urban Redevelopment Authority last Friday.

Buyers are expecting prices to decrease as the market corrects itself, but developers are holding onto their prices, he said.

"Prices should either stabilise or drop by 10 to 15 per cent," he said. "As for when that will happen, it depends on who blinks first.

Developers are waiting for buyers to come in but buyers are being cautious at the moment."

In the meantime, investors could consider commercial assets instead, he said. Stratatitle offices - shophouses, basically - have rental yields of 4 to 5 per cent.

Investing is not the same as speculating, Mr Png emphasised, and the key to choosing a good investment is to do it early and at the right time.

"I believe in property cycles," he said.

"Many buyers want to make investments quickly as they fear the property will be sold out during its launch.

"But if you like it so much, you can enter at an opportune time and buy it off the resale market a few years down the road."

Beware different rules for overseas homes

IF YOU are thinking of investing in overseas property, here are some points you should consider before signing that cheque:

Do not assume that Singapore's institutional framework applies overseas. You might want to consider engaging an independent professional for advice. Also, check what legal recourse is available should you run into trouble with the developer.
Find out if there are any hidden costs. Some jurisdictions impose a capital-gains tax, and some banks charge a penalty for absentee landlords. Beware of foreign-exchange risks.
Investigate the developer. Find out if the company is listed, study its track record, and check whether you are paying it directly or through a third party.
Do not buy any property without first visiting the development site and its location. Try to gauge if there is local demand for the property you are interested in.
Do not be deceived by guarantees of high rental yields. You are probably paying a higher figure up front for a "guaranteed" rental yield, so try to bargain down the agent's asking price, as yields will go back to normal after the guarantee period expires. Also, calculate how much net yield you will get after deducting utilities, maintenance costs and other fees.
Know what you are buying. Are there restrictions on ownership rights? Do you get the title deed or a strata title to your property? If joining a land-banking scheme, be wary of hidden risks like urban zoning. Your lot might well fall into a green belt where development is restricted.