Reliable $1 Web Hosting by 3iX

Wednesday, November 17, 2010

ST : Condo-style flats in Yishun to draw young couples

Nov 17, 2010

Condo-style flats in Yishun to draw young couples

By Daryl Chin



An artist's impression of Adora Green, which comprises about 800 apartments. It is slated to be launched in the first quarter of next year. -- PHOTO: GUTHRIE SK LAND

PLANS for Yishun's first Design, Build and Sell Scheme (DBSS) development were announced yesterday.

Adora Green, which comprises about 800 apartments, was announced at a ground-breaking ceremony attended by developers, prospective buyers and Mr K. Shanmugam, an MP for Sembawang GRC.

The development is slated to be launched in the first quarter of next year, and is likely to be the first DBSS project put up for sale since measures to cool the property market were introduced earlier this year.

Of the units available, an estimated 520 will be four-room flats of 990 sq ft each, 160 three-room units of 721 sq ft, and 120 five-roomers of 1,205 sq ft each.

Under DBSS, the developer tenders for the land and can exercise flexibility in pricing and design while preserving key elements of public housing, such as open access to common properties.

Guthrie SK Land, which won the bid at $148.89million for the 27,474 sq m site, will be selling the flats with a 99-year lease.

The units will likely be priced between $450 and $500 per sq ft (psf), said Mr Michael Leong, director of Guthrie SK Land, adding that some costs have yet to be factored in.

The Peak@Toa Payoh, the last DBSS project, fetched up to $600 psf when it was launched in April this year.

Speaking at the event, Mr Shanmugam, who is also Minister for Home Affairs and Law, said the project was significant for Yishun, a middle-aged town selected by the Housing Board in 2007 to enjoy a slew of new upgrading programmes.

He said Adora Green would attract younger couples because of Yishun's new facilities - such as the Heritage Garden and Khoo Teck Puat Hospital - and the recent relaxing of housing rules.

Eligible first-timer households with a monthly income of between $8,000 and $10,000 - the 'sandwich class' - can now buy new DBSS flats with Central Provident Fund housing grants of $30,000. The provision is applicable only to flats launched for public sale after Aug30.

Sandwich-class civil servant John Chan, 31, said he and his wife had been looking for a flat to buy for the past two years. 'We looked at private properties, executive condominiums and resale flats, but they were all out of reach. This project should be affordable,' he said.

But fellow civil servant Jason Tan is worried about competition because his combined household income is less than $8,000. 'With the new rules, you have quite a lot more people competing for the same property,' he said.

ST : Hougang residents want lift upgrading

Nov 17, 2010

Hougang residents want lift upgrading

Resounding 'yes' from first batch of residents in constituency polled

By Teo Wan Gek

THE first residents in opposition-held Hougang to be offered lift upgrading gave the programme a resounding 'Yes' when polls closed yesterday.

There was 100 per cent support from residents of two blocks, and more than 80 per cent support in the four other blocks that were selected.

Lift Upgrading Programmes (LUP) in eligible Housing Board estates will proceed only when 75 per cent of households vote for it.

Polling among residents of Blocks 351, 352, and 354 to 357 in Hougang Avenue 7, opened last Friday night.

Housewife Lim Bee Choo, 60, who lives in a three-room maisonette in Block 357 with her three sons, voted for LUP even though her home is on the second floor.

'When I get older, I think I will need it even more. Even now, having a lift will be useful. When I carry heavy bags of groceries up the stairs, my legs get tired,' she said in Mandarin.

Madam Lim, who will have to pay $3,000 for the LUP, added: 'There are also others in the block who need it more than me.'

The constituency's People's Action Party (PAP) grassroots adviser Eric Low, who announced last October that the six blocks of 360 units were selected for LUP, cheered the results.

'I am delighted that residents involved in this first precinct in Hougang have given total support in all six blocks,' he told The Straits Times in an e-mail.

'The result reflects well on the approach taken by HDB and our grassroots leaders. We are confident the same methodology will be repeated in the next three precincts I have already announced.'

Mr Low said on Oct 31 that a further 32 blocks in three precincts had already been identified for the LUP. As for the remaining three precincts in the constituency - whose MP is Workers' Party chief Low Thia Khiang - he said that he expects to be able to make an announcement about lift upgrading for them next year.

The national programme to have lifts stop at every floor in eligible HDB blocks is heavily subsidised by the Government. Residents and town councils each co-pay between 5 per cent and 12.5 per cent of the cost.

Mr Eric Low said last week that the Government will give a subsidy of $9.5 million to upgrade lifts in the first batch of six blocks, while the town council's share of the cost will be 'just under a million'.

Construction work on the project for the first batch of flats is likely to start in the third quarter of next year, and be completed by 2013.

It usually takes about 24 to 30 months for works to complete.

The HDB has said that the nationwide LUP is on track to be completed by 2014.

Lift upgrading in Potong Pasir - the other opposition-held ward whose MP is Singapore People's Party chief Chiam See Tong - has also been previously announced.

The first precinct with nine blocks was offered LUP last year. And just over a week ago, Mr Sitoh Yih Pin, the PAP grassroots adviser there, said another 22 blocks of flats in three precincts had been identified for the LUP.

wangekt@sph.com.sg

ST : Home buyers from Europe, US are back

Nov 17, 2010

Home buyers from Europe, US are back

Purchases surge 70%; mainland Chinese one of fastest growing groups

By Esther Teo



US and European buyers have flocked to prime districts 9, 10 and 11, covering areas such as Tanglin (above), Orchard, Holland, Newton and Bukit Timah, and District 15 in the east and District 5 in the west. -- ST PHOTO: ALPHONSUS CHERN

HOME buyers from the Americas and Europe leapt back into the Singapore property market in the first nine months of this year, with purchases surging more than 70 per cent from a year earlier.

Property consultancy Savills Singapore said that the total number of purchases by Americans jumped to 246 units this year from 154 last year, while sales to Europeans shot up to 619 units from 353 units in the same period last year.

Ms Christine Sun, Savills' senior manager of research and consultancy, said the surge in interest followed the recovery of some key Western economies.

A number of banks in these countries have shifted hedge funds here, bringing along a number of high net worth individuals and private investors who are on long-term work assignments here.

'Some may prefer to buy a private home rather than lease as current interest rates are low. Some may also be buying in anticipation of further strengthening of the Singdollar,' Ms Sun added.

Together, Americans and Europeans made up 13 per cent of home purchases by foreigners in the first three quarters of this year. Buyers from countries such as the United States, Canada, Britain, France and Germany accounted for the largest increase, Savills said.

They have flocked to prime districts 9, 10 and 11, covering areas such as Orchard, Holland, Newton and Bukit Timah. District 15, which includes Katong, Telok Kurau and East Coast Road, and District 5 in the West Coast are also popular.

Almost half of these Western buyers have also purchased homes in the $1.5 million to $5 million range.

With interest rates expected to remain low for the next few years and the US embarking on another round of effective money printing, American buyers are set to be more active in the coming months.

However, despite the rebound, their numbers are still far from levels seen in 2007 when 1,617 buyers from North and South America and Europe entered the local property market in the first nine months of 2007.

Asian buyers, however, are still expected to dominate the market as the number of wealthy Asians is set to grow further and Singapore remains a popular migration and investment choice, Ms Sun said.

In fact, Asian buyers made up 83 per cent of all foreign purchases in the first three quarters of this year. Purchases by foreigners from Oceania and Australia have also increased 60 per cent year-on-year, Savills data showed.

Foreign buyers from Malaysia, Indonesia, China, India and Britain make up the top five. Mainland Chinese buyers are one of the fastest growing groups of foreign buyers this year, with purchases surging 54per cent in the first nine months year-on-year.

A total of 1,190 homes were snapped up by Chinese buyers in the period, more than the 1,055 sold for all of last year.

Savills data also showed an increasing proportion of foreigners in the market on a month-on-month basis.

Singaporean purchasers fell to 66 per cent last month, or 947 purchases out of 1,446 in total, the lowest monthly proportion since 2007.

Foreign purchasers - including permanent residents - however, have gradually risen from 22 per cent in August to 30 per cent last month, making up 436 out of 1,446 purchases.

One such foreign buyer is Mr Abhi Shroff, an Australian citizen who bought a home in Bukit Timah earlier this year after renting for the past two years.

With low interest rates and plans to be located here for the next few years, he has decided that paying a mortgage makes more sense than paying monthly rental.

'There is also a lot of development taking place in the Bukit Timah area, such as the upcoming MRT line, which could make the location more appealing in the future... Although the property market can be quite volatile, the rental yield is okay and could be worth keeping in the long term,' he added.

esthert@sph.com.sg

ST : Condos must allow new broadband cabling

Nov 17, 2010

Condos must allow new broadband cabling

They face fines if they reject wiring, must bear cost if they want cables hidden, says IDA

By Chua Hian Hou

CONDOMINIUM residents will be able to enjoy high-speed fibre broadband after all.

The Government yesterday said that all condominiums will be required to allow the installation of the fibre-optic cabling needed for the network.

Individual homeowners, however, will have the option of having the cables in their homes - cables which will enable access to the new billion-dollar broadband network, which promises cheaper, faster broadband access and other services now unavailable with SingTel and StarHub.

As many as nine in 10 condominiums had previously refused, largely on aesthetic grounds.

OpenNet, the firm appointed by the Government for the work, has been contracted to lay the cables via boxy plastic piping on wall surfaces.

But many condominiums want the cables hidden within walls or false ceilings, which costs more, and neither they nor OpenNet is willing to pay the difference.

The standoff threatened to cut off the 20 per cent of Singapore's one million households living in condominiums from the network.

At a media briefing yesterday, technology sector regulator the Infocomm Development Authority of Singapore (IDA) said condominiums will have to allow OpenNet to install the cables, and that condominium management committees which want the cables concealed will have to foot the bill. Condominiums that fail to comply with the requirement - part of a building owner's obligations under the Telecoms Act - can be fined up to $1,000 a day.

The IDA has issued OpenNet an official letter clarifying building owners' obligations.

OpenNet, which has approached about half the 2,000 condominiums here so far, has since re-started talks with those who closed their doors. Of these, six in 10 have now agreed to let OpenNet go ahead. The Straits Times understands that it is in negotiations with the rest.

The Government's move was good news to condo resident and business undergraduate Janice Huang, 23. 'It's silly to choose form over function, considering how we depend so heavily on the Internet for everything from research to entertainment.'

But some parties remain opposed to a blanket requirement. Chief executive of the Association of Management Corporations in Singapore Francis Zhan said the association supports the national broadband initiative, but he called for condos to be given the choice of rejecting the cabling.

'Put yourself in our shoes. You are a new condo where everything is spick and span and then suddenly you run trunking all over the wall. It will affect the development's market value.'

chuahh@sph.com.sg

ST : More trains for Bukit Panjang LRT?

Nov 17, 2010

More trains for Bukit Panjang LRT?

Commuter woes set to increase as township grows

By Goh Chin Lian

TRAIN operator SMRT is considering raising the capacity of the Bukit Panjang Light Rail Transit (LRT) system as more flats are slated to be built in the area.

Average daily ridership on the LRT has grown from 39,000 at the end of 2000 to 47,000 for just the first 10 months of this year, the operator said.

The township's population is expected to jump, with at least three Build-To-Order projects due to be completed over the next few years. They are the 528-unit Segar Grove at Segar Road, the 741-unit Senja Gateway at Woodlands Road, and the 577-unit Senja Parc View at Senja Road.

Current estimates put the number of people living in the township at over 110,000. They occupy more than 29,000 HDB flats in the Bukit Panjang estate.

Commuters using the 11-year-old line are already finding trains packed during peak hours, with some saying they have had to wait for a second, third, or even fourth train.

Mr Liang Eng Hwa, an MP for Holland-Bukit Timah GRC, plans to raise the issue of packed LRT trains in Parliament on Monday.

Said Mr Liang, who used the service in the morning to gain first-hand experience of the packed trains: 'If we don't solve it ahead of time, there'll be a problem when the flats are ready.'

He wants SMRT to increase its fleet of 19 trains so that it can run the entire line with two-car trains instead of a mixture of two- and single-car trains. He also wants their frequency to be increased.

The population in Bukit Panjang and Choa Chu Kang has swelled since the line opened on Nov 6, 1999. The worry then was that not enough people were taking the LRT, he noted.

Demand for the service also increased when the Institute of Technical Education opened its College West campus in Choa Chu Kang in July, with 7,200 full-time students and 8,100 part-time students attending.

The new Downtown MRT line could also feed more passengers to the LRT. The line's second phase, connecting Little India and Newton MRT stations to Bukit Panjang, is due to open in 2015.

However, the Bukit Panjang line has been operating at a loss for a number of years. Its turnaround into profitability last year has proved short-lived. It posted a $75,000 operating loss in the first half of this year, a reversal from a gain of $164,000 over the same period in the previous year.

An SMRT spokesman told The Straits Times: 'We have been working closely with the Land Transport Authority to explore increasing the capacity of the Bukit Panjang LRT system, to meet increased demand from the developments in the region.'

Of the 19 vehicles in its fleet, 18 are used during the peak period, with one on standby. SMRT operates up to six two-car trains at peak hours, with the remaining six being single-car trains.

The fleet size allows for an average frequency during peak hours of two to three minutes between Choa Chu Kang and Bukit Panjang stations, and four to five minutes between Petir and Senja stations, the SMRT said.

When The Straits Times visited on Monday between 7am and 9am, it found the trains almost packed at Senja and Petir stations. Some commuters had to stand close to the doors after boarding because of the crowd.

Accounts assistant Wong Siew Choo, 41, said she has had to wait for two or three trains at Senja station: 'The train has one car sometimes. It should be two cars all the time during busy hours.'

Naval architect Zhang Zhongming, 45, who also boards at Senja, wants a higher frequency during peak hours, from one every five minutes now to one every three or four minutes.

The LTA is already exploring the feasibility of having two-car trains on the newer Sengkang and Punggol LRT lines, to be run by SBS Transit. Both LRT systems now operate single-car trains.

chinlian@sph.com.sg

ST : Brisk sales at UOL's condo near Tanjong Pagar

Nov 17, 2010

Brisk sales at UOL's condo near Tanjong Pagar

By Esther Teo



Spottiswoode Residences saw 130 units sold in a three-day preview ahead of its main launch today. -- PHOTO: UOL

SPOTTISWOODE Residences, near the soon-to-be-rejuvenated Tanjong Pagar area, has achieved brisk sales of 130 units during a three-day preview.

Prices ranged from $1,720 per sq ft to $2,150 psf, developer UOL Group said. Four out of the seven penthouses were also sold, with one fetching a price of $1,850 psf.

UOL said that 86 per cent of the buyers were Singaporeans, mostly aged 40 and above. They tended to buy higher-priced units commanding sea views, and included doctors, professionals, bankers and businessmen, UOL said.

The remaining 14 per cent of buyers were evenly split between permanent residents and foreigners, who were mostly Malaysians.

The freehold plot, which will host a 36-storey tower, is next to Spottiswoode Park and close to Tanjong Pagar, which is slated to be transformed into a bustling waterfront district once container terminals in the vicinity move out.

The firm will release 80 more units at the 351-unit project during its main launch today.

UOL Group chief operating officer Liam Wee Sin told The Straits Times that the good take-up rate - and benchmark prices seen at some recent property launches - reflected the growth potential that some of these locations offered.

Private home sales for the entire Singapore market last month totalled a healthy 1,058 units, he said.

'We don't want to see sales figures drop drastically low... I'm not worried that the market is overly hot if sales are about 1,000 units a month.'

Demand remains healthy for homes in good locations and for well-conceived projects, as buyers - often in the prime of their careers and with financial reserves - recognise the longer-term potential of many of these projects, Mr Liam added.

He said that the Government's Aug 30 property market cooling measures, together with the increase in supply of residential sites through the government land sales programme, have also had their intended effect in cooling the mass market segment. Mr Liam expects prices to remain steady across the market.

The Spottiswoode plot is the last in UOL's residential land bank here. However, Mr Liam said the firm is continually looking for new market opportunities.

UOL said that more than 10 former owners of units in Spottiswoode Apartment and Oakswood Heights - which stood on the site before being sold en bloc in 2007 - bought units in the new project. Several people bought multiple units for family members, it added.

Spottiswoode Residences comprises a 36-storey block with mostly one- and two-bedroom apartments, 25 three-bedroom units and seven penthouses.

Sizes for the typical one- to three- bedroom units vary from 603 sq ft to 1,421 sq ft.

ST : Collective sale: Pine Grove gets nod at latest attempt

Nov 17, 2010

Collective sale: Pine Grove gets nod at latest attempt

Reserve price of $1.7b beats record set by Farrer Court in 2007

By Esther Teo



The 660-unit Pine Grove sits on 893,178 sq ft of land. Many units are 1,754 sq ft in size. The reserve price of $1.7 billion could work out to be between $2.1 million and $2.75 million per unit, depending on the apartment size and development charge. -- ST FILE PHOTO

PINE Grove residents have successfully obtained the crucial 80 per cent approval needed to embark on a collective sale of their sprawling Ulu Pandan estate.

This follows failed attempts to do so last year and during the 2007 boom.

The reserve price has been set at $1.7 billion, which means Pine Grove could become Singapore's largest residential collective sale, beating the $1.34 billion record set by Farrer Court in 2007.

The Straits Times understands that the condominium's latest attempt at a collective sale crossed the requisite 80 per cent majority approval threshold last Saturday. Jones Lang LaSalle is the marketing agent.

The process, however, is now going through a five-day 'cooling off' period during which home owners may change their minds. The period begins after a collective sale agreement is signed. The measure was introduced this year.

The collection of signatures at the 660-unit former Housing and Urban Development Company (HUDC) estate on 893,178 sq ft of land started on Nov 15 last year. Many units are 1,754 sq ft in size.

The reserve price of $1.7 billion could work out to be between $2.1 million and $2.75 million per unit, depending on the apartment size and development charge.

Resident Sing Tien Foo, who has been living at the estate since 2003, said it would be good to have the place redeveloped.

But the associate professor at the National University of Singapore added that there were many residents who have strong attachments to the estate.

'I have mixed feelings about the sale as well. While we will get a higher price than if we sell the units individually, I like this place very much,' he said.

Mr Colin Tan, research and consultancy director of property firm Chesterton Suntec International, said Pine Grove was likely to be redeveloped into a high-end to luxury development.

It is in a good location, he said, in an established expatriate area near an international school and close to an area of good-class bungalows.

Mr Tan added that bigger property players or joint ventures formed to mitigate the level of risk are likely to bid as the reserve price of $1.7 billion is a very large sum to stump up.

'The luxury market hasn't quite recovered yet, so if we are targeting developers who plan to launch such luxury condos, then maybe it isn't the right time to launch the sale yet... although the market is likely to pick up in the future.'

Pine Grove's collective sale attempt in 2007 failed to bear fruit, even though the average payout was eventually raised to about $2 million a unit.

The current record for a collective sale is held by Farrer Court located along Farrer Road, also a former HUDC estate. It was sold to CapitaLand and had a development charge of about $500 million.

esthert@sph.com.sg

ST : Retail giants to compete under one roof

Nov 17, 2010

Retail giants to compete under one roof

Serangoon's Nex mall will house two foodcourts and two supermarkets

By Jamie Ee Wen Wei



Nex, which is about the size of Ion Orchard, is the largest suburban mall in the north-east, and will feature a 24-hour FairPrice Xtra hypermarket, as well as Cold Storage, an Isetan outlet, a cinema and a 2,000 sq ft dog run on the roof garden. -- ST PHOTO: DESMOND LIM

NEX shopping mall in Serangoon is pitting retailers against each other: Cold Storage versus FairPrice, Food Republic versus Food Junction.

While it may seem unusual for rival brands to co-exist under one roof, mall manager Guthrie Consultancy Services is confident that its retail space is 'big enough to accommodate establishments in the same retail category'.

Nex is similar to sprawling suburban malls in the United States, Britain and Australia, where more than one anchor tenant and supermarket sit comfortably under one roof.

The seven-storey mall, located next to Serangoon interchange station, has over 600,000 sq ft of retail space. It is about the size of Ion Orchard and is the largest suburban mall in the north-east.

The $1.3 billion shopping centre, which took about two years to build, is slated to open by the end of this month.

A spokesman for Nex said rival brands - such as Cold Storage and FairPrice - will appeal to different types of shoppers.

The Cold Storage supermarket will feature several exclusive imported products, while the 24-hour hypermarket FairPrice Xtra will offer products from food to home electronics and casual wear.

The mall will also have two foodcourts, Food Junction and Food Republic, 'to offer more food varieties and choices for family shoppers', its spokesman said.

Food Junction will run a 17,000sqft foodcourt that can seat about 500 people, while Food Republic's 6,500sqft food atrium will seat about 250 people.

Residents in the area clearly welcome the choices at the mall.

Madam Daisy Toh, 75, likes having the two rival supermarkets in the same mall. The retiree, who lives about five bus stops away from the mall, said: 'If I want to shop for gourmet food, I will go to Cold Storage. But if I want to buy daily items, I will go to FairPrice Xtra.'

At present, the mall is almost fully occupied. Its anchor tenants are Japanese chain store Isetan, cinema chain Shaw, FairPrice Xtra and the Serangoon Public Library.

Other key tenants include bookstore Popular, Japanese food street Shokutsu 10, Courts, Crystal Jade Kitchen, Party World KTV and children's boutique Kiddy Palace.

It hopes to draw about two million customers each month. To do so, it is introducing a number of new concepts.

Department store Isetan, which is opening its first outlet in 14 years, will have a section dedicated to handbags and fashion labels from Japan.

Its spokesman said the merchandise mix at its new three-storey outlet will be better than those offered by malls in the vicinity. For one thing, it will have more than 14 cosmetic brands not available in those malls, he said.

Guardian pharmacy will have its first private patient care counselling room for its clinical pharmacist to help patients better understand their medication and draw out treatment plans for those with long-term disease or weight issues.

Food-wise, there will also be new offerings: Japan's popular burger chain Freshness Burger and famous pasta restaurant Kabe no Ana will open their debut outlets.

There is a retail and food zone that operates on extended hours till about 2am.

Dog owners can also make use of the 2,000sqft dog run located on the roof garden. The run is the first in a mall here, and is meant for dogs to exercise and play in an off-leash environment under the supervision of their owners.

The run can be accessed via designated lifts and escalators. Dogs, however, are not allowed in other areas of the mall.

To cater to families, there will also be a children's playground with dry and wet interactive play equipment, and 11 nursing rooms for mothers - more than any other mall.

Housewife Jennifer Yew, 36, who used to shop at Compasspoint in Sengkang, said she is likely to shop at Nex instead after it opens.

'I will take my two children to the library and the playground. But one of the most attractive things is the cinema, which other nearby malls do not have,' she said.

jamieee@sph.com.sg

ST : Tanjong Pagar site draws $1.7 billion bid

Nov 17, 2010

Tanjong Pagar site draws $1.7 billion bid

GuocoLand's offer is second-highest ever for government land

By Cheryl Lim

A PRIME hotel and office development site right next to Tanjong Pagar MRT station has drawn the second-highest ever bid for government land: $1.71 billion.

Units of developer GuocoLand, controlled by Malaysian billionaire Quek Leng Chan, submitted the bullish offer, which was well above market expectations.

The tender closed yesterday with six bids for the sprawling 1.5ha plot at the corner of Peck Seah and Choon Guan streets.

Five of the bids were above $1 billion - the level analysts had predicted. Among them were offers from a consortium including Hongkong Land; Frasers Centrepoint; and a firm linked to CapitaLand.

GuocoLand's bid works out to $1,006 per sq ft per plot ratio.

Consultants said the site is set to become a landmark development in the heart of Tanjong Pagar, which is being touted as Singapore's next property hot spot. The area will be transformed into a vibrant waterfront precinct when its container terminals move out.

A nearby site, where Keppel Towers and GE Tower stand, was recently bought by developer Keppel Land for $573 million. It plans a major residential project.

Property firm Cushman & Wakefield's managing director Donald Han said the bullish bids for the Peck Seah Street site are reminiscent of the booming pre-crisis market. In 2007, a Marina View parcel drew a $2 billion top bid - the highest ever - while the South Beach development drew a $1.69 billion offer.

The Peck Seah Street plot will host an office and hotel complex that could include apartments. It can hold a maximum gross floor area of nearly 1.7 million sq ft.

At least 60 per cent of the site's area must be devoted to offices and 10 per cent to hotel rooms, but the winning developer can do whatever it wants with the remaining 30 per cent. Property experts believe the space is most likely to be used for high-end condominium units.

CBRE Research executive director Li Hiaw Ho said this would make sense, 'given the growing popularity of inner-city living in the last few years'.

'The development of this mammoth project in the heart of the Tanjong Pagar area would inevitably achieve landmark status, and would further propel the Tanjong Pagar area into a growth region for commercial activity.'

He expects apartments at this 'mega development' to sell at $2,400 to $2,500 psf. Newly launched apartments in nearby projects have been transacted at between $2,000 and $2,500 psf.

Mr Ong said: 'The development has a strong advantage being on top of an MRT station, which should see it attracting lots of buyers and commanding high prices.'

Credo Real Estate executive director Ong Teck Hui said the top few bids reflect confidence that the strong office and residential markets can be sustained.

If GuocoLand is awarded the tender, the project will mark its maiden foray into the Singapore hotel market.

cherlim@sph.com.sg

BT : If OpenNet knocks, condos must open doors

Business Times - 17 Nov 2010

If OpenNet knocks, condos must open doors

IDA says that they cannot reject installation of nationwide broadband network

By VICTORIA HO

(Singapore)

PRIVATE condominiums have been told in no uncertain terms that they cannot refuse to have their premises wired up for the new, high-speed fibre broadband network. Those that have rejected the government-mandated network will soon have to let installation work begin.

The Infocomm Development Authority (IDA) said during a briefing yesterday that, under the Telecoms Act, building owners have to allow government-appointed contractor, OpenNet, to wire up their premises for the upcoming nationwide broadband network (NBN).

Building owners who do not comply face fines of up to $10,000, and a further $1,000 for every subsequent day that the violation continues.

This announcement follows reports of condominiums which have refused to allow OpenNet to lay the fibre cabling, which is being offered for free.

OpenNet said last month that as many as nine in 10 private apartment management committees approached had rejected the offer, with some saying that the exposed trunking of the cabling was an eyesore. OpenNet uses surface trunking, with the cables lined against common corridors behind white plastic piping.

These committees wanted concealed trunking, but could not reach an agreement with OpenNet on who should bear the additional cost of the construction work.

The condos have been told that they can no longer say 'no'.

The IDA pointed out that the Code of Practice for Infocomm Facilities in Building (Copif) from 2008 already provides for the inclusion of fibre in new buildings.

The IDA has the power to direct building owners to provide access to facilities - such as main distribution frame rooms and risers - at their own expense.

The plan for the next-generation NBN was first unveiled in 2006 by the government, which set aside $1 billion to help fund its roll-out.

The all-fibre network will bring Internet access speeds of more than 1Gbps to homes and businesses islandwide.

The regulator said that the OpenNet consortium, which won the bid to build the network infrastructure, is in the process of re-engaging management committees that have rejected the offer. The IDA has issued letters asserting OpenNet's rights and clarifying the buildings' obligations regarding the matter.

It is up to management committees to determine how the costs should be split, either by individual residents applying for cabling, or dipping into their sinking funds.

When contacted, a representative from the Bayshore condominium said OpenNet has begun its process of laying the cabling. He said the trunking is concealed, because of the building's false ceilings on each lift landing which allows it to be done without additional cost.

According to reports, OpenNet has approached about half of the island's private estates. These account for about 20 per cent of Singapore's one million households.

Housing Board residents do not face this issue as the HDB (Housing Development Board) has allowed OpenNet to install cabling across the flats.

OpenNet could not be contacted by press time.

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

BT : GuocoLand aims for the sky with 78-storey homes

Business Times - 17 Nov 2010

GuocoLand aims for the sky with 78-storey homes

It submits highest of 6 bids for site above Tanjong Pagar MRT Station, plans $3 billion mixed-development project

By KALPANA RASHIWALA

(Singapore)

MALAYSIAN tycoon Quek Leng Chan's GuocoLand is planning to build Singapore's tallest residences, up to 78 storeys high, within a $3 billion mixed-development project on a site above Tanjong Pagar MRT Station.

The $3 billion development cost includes the $1.708 billion or $1,006 per square foot per plot ratio (psf ppr) that Singapore-listed GuocoLand will pay for the 99-year leasehold plot. It placed the highest of six bids for the 'white' site, which was offered at a state tender which closed yesterday.

GuocoLand is required to allocate at least 60 per cent of the maximum 1.7 million sq ft gross floor area (GFA) to offices and another 10 per cent for hotel use, under the rules for the site set by Urban Redevelopment Authority.

GuocoLand Singapore managing director Trina Loh says that with a maximum height of 280 metres above mean sea level the proposed development will join Republic Plaza, UOB Plaza and OUB Centre in Raffles Place as Singapore's tallest buildings.

'Within the Tanjong Pagar area, it will be the tallest project and we'll also offer the tallest residences in the whole of Singapore,' Mrs Loh added.

The group plans to develop two towers, possibly with a mix of uses. In addition to offices, a hotel and apartments, there will also be ground-floor retail space. 'What makes this site very exciting is that it can be a truly, fully-integrated development above the MRT Station, plus the height of the project.

'And as the winner of two BCA Green Mark Platinum awards, we'll ensure this latest proposed development will also be eco friendly,' she added.

GuocoLand bid 11.8 per cent or about $180 million more than its closest rival. The partnership comprising Keppel Land, Hongkong Land and Cheung Kong Holdings which is developing the Marina Bay Financial Centre was the second highest bidder at yesterday's tender. It offered about $1.53 billion or $900 psf ppr.

Frasers Centrepoint teamed up with Far East Organization and Japan's Sekisui House to emerge as the third highest bidder, at around $1.43 billion or $844 psf ppr. The other bidders were CapitaLand group ($777 psf ppr), Malaysia's IOI Properties Berhad ($730 psf ppr) and Lippo-unit Overseas Union Enterprise ($362 psf ppr).

In addition to these six offers, URA received a submission from a tenderer that was disqualified - Wee Jong Dit.

A person bearing the same name received the Public Service Medal at the 2002 National Day Awards. He is understood to be a former banker (involved in forex dealing).

Typically, a bidder at a state land tender would be disqualified if he does not fulfil tender conditions, the most important of which is that the submission must be accompanied by a tender deposit (of at least 5 per cent of the bid price).

GuocoLand has been on the lookout for a mega development site in Singapore for years. It was unsuccessful in its bids for the plots that have since been developed into Marina Bay Financial Centre site and Ion Orchard/Or- chard Residences.

BT understands that some overseas parties are keen on teaming up with GuocoLand for the proposed Tanjong Pagar project.

The group's bid was above market expectations; property consultants polled in late July when the site was launched had forecast bids of up to $1.4 billion.

However, Cushman & Wakefield Singapore vice-chairman Donald Han said yesterday that GuocoLand's bid was 'still workable'. 'Singapore Grade A office rents have been recovering nicely and investors' appetite in completed office buildings has also returned. GuocoLand may sell the Tanjong Pagar project's office portion after completion. The group has experience in developing residential and office properties. And its sister company, Thistle Hotels of UK, may get an entry to manage a Singapore hotel,' he added.

CBRE Research executive director Li Hiaw Ho said: 'In order to obtain this top bid of $1,006 psf ppr, the gross development value for the 60 per cent office component is estimated at $2,200-2,300 psf.

'The mandatory 10 per cent of GFA for hotel use would translate into 330-350 rooms with each room estimated at $800,000-900,000. Based on the top bid, condo units at this mega development could possibly transact at $2,400-2,500 psf when ready for launch.'

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

BT : First Yishun DBSS project to be launched after CNY

Business Times - 17 Nov 2010

First Yishun DBSS project to be launched after CNY

By KAREN NG

ADORA Green, for which a groundbreaking ceremony was held yesterday, will be the first design, build and sell project in Yishun under the Housing & Development Board's DBS Scheme. 'The development will be launched next year after the Chinese New Year season,' said Guthrie SK Land executive director Michael Leong. 'The price of the flats is expected to range from $450-500 per square foot.'

The project, at the junction of Yishun Avenue 11 and Yishun Central, will comprise about 800 apartments. Some 65 per cent will be four-room flats, 15 per cent will be five-room flats and the remaining 20 per cent three-room flats. Sizes range from 67 square metres for a three-room flat, 92 sq m for a four-room flat and 112 sq m for a five-room flat. Costs will be $300,000-400,000 plus for a three-room flat, $400,000-500,000 plus for a four-room flat, and $500,000-600,000 plus for a five-room flat.

Under DBSS, private developers build public housing flats with condo-like finishes. Adora Green will comprise six 16-storey blocks, with recreational facilities such as fitness stations and barbecue pits, as well as commercial facilities such as a mini-mart, shops, an eating house and childcare facilities.

At yesterday's ground-breaking ceremony, Minister for Law and Home Affairs K Shanmugam said: 'One of these measures was to allow eligible first-time households with a monthly income between $8,000 and $10,000 to buy new DBSS flats with a CPF housing grant of $30,000. This revision will be applicable to DBSS projects launched for public sale after Aug 30, 2010 which includes Adora Green.'

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



HOME SWEET HOME
Adora Green will comprise six 16-storey blocks, with recreational and commercial facilities such as shops and a childcare centre

BT : Pine Grove to en bloc, $1.7b reserve price: report

Business Times - 17 Nov 2010

Pine Grove to en bloc, $1.7b reserve price: report

THE 99-year leasehold Pine Grove in Ulu Pandan could be up for collective sale again with an estimated reserve price of $1.7 billion, said Channel NewsAsia yesterday.

The deal, if successful, would be the largest in the collective sales market since Farrer Court changed hands for $1.34 billion in 2007.

Channel NewsAsia said that property agents have been gathering residents' signatures since November last year, and they have amassed 80 per cent of votes for the collective sale to start. A cooling period is now in place in case residents change their minds.

The 660-unit Pine Grove is a former HUDC estate. Several discussions had taken place between agents and residents to sell the estate in the last few years. The en bloc fever was particularly strong in 2007 as the property market heated up and developers snapped up several estates.

But not all residents in Pine Grove were keen on a deal then. A 'Save The Pine Grove' group was even formed to stop the sale process.

The collective sales market took a breather during the financial crisis and has revived recently, but deals have involved mostly smaller estates with more affordable price tags.

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

BT : UOL to release 80 more units at Spottiswoode

Business Times - 17 Nov 2010

UOL to release 80 more units at Spottiswoode

UOL Group said it is releasing another 80 units at its Spottiswoode Residences for the project's official launch today after finding buyers for 130 of the 150 units released last week during the project's preview.

The units sold thus far have achieved prices ranging from $1,720 psf to $2,150 psf. Four of the project's seven penthouses were sold, with one fetching $1,850 psf.

'Of the buyers, 86 per cent were Singaporeans who snapped up the higher-priced units which command sea views. They include doctors, professionals, bankers and businessmen . . . ' UOL said.

The freehold 36-storey development comprises 351 apartments - mostly one- and two-bedroom apartments. It is near Outram MRT Station.

The 130 units sold include about a dozen bought by former owners of apartments in the two developments that used to stand on the site - Spottiswoode Apartment and Oakswood Heights.

UOL acquired the two adjoining sites through separate collective sales in 2007. It paid $740 psf per plot ratio for Oakswood Heights; no development charge was payable for this site.

UOL bought the next-door Spottiswoode Apartment site for $732 psf per plot ratio including a development charge based on an earlier media report.

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

ST : October private home sales beat forecasts

Nov 16, 2010

October private home sales beat forecasts

Over 1,000 units sold last month, rising to nearly 1,600 if ECs are included

By Esther Teo

A HIGHER-THAN-EXPECTED 1,058 new private homes were sold last month, up from 911 in September, leading some property analysts to predict a possible record number of sales for the full year.

The jump was even more pronounced after including sales of executive condominiums (ECs), an upscale type of public housing, as new EC sites went on sale for the first time in five years.

Taking ECs into account, sales surged 74 per cent to 1,587 as buyers in the so-called 'sandwich class' flocked to purchase these two new EC projects.

Esparina Residences near Buangkok MRT station saw 425 units sold, and The Canopy in Yishun had 104 units snapped up.

The sandwich class refers to households whose income falls between $8,000 and $10,000.

Experts said, however, that the buoyant figures did not necessarily mean the Government's property cooling measures in August were losing bite.

They noted that the target segment - mass market condos in suburban areas - had suffered a drop of about 25 per cent in sales volume, compared with the figure in September.

In contrast, homes in the core city centre - involving wealthier buyers less adversely affected by the buying restrictions - saw bumper sales of 335 units. This was almost four times the sales volume in the previous month.

In city fringe areas, 271 homes were sold, up 20 per cent from the number in September.

Jones Lang LaSalle research head Chua Yang Liang said the cooling measures announced on Aug 30, coupled with the rolling out of EC sites, had helped to temper mass market demand.

Mr Ong Kah Seng, Cushman & Wakefield's senior manager of Asia-Pacific research, however, said that while the government measures have had 'some effects on cooling the home buying frenzy, it did not dampen home buying sentiments', as developer sales of private residential units still totalled about 1,000 units each in the two months after the measures were announced.

Analysts suggested that another factor behind the overall rise in home sales was that buyers returned once the impact of the new property rules became clearer.

Permanent residents (PRs), for example, might have chosen to buy a condo rather than an HDB flat, in response to new rules that required them to sell any property they owned abroad if they bought an HDB flat.

The rosy economic outlook, low interest rates and robust stock market have also seeded optimism and confidence in the property market, they added.

Cushman's Mr Ong said: 'Several home buyers who have been on the sidelines for about a month might have decided to proceed with purchasing properties that offer investment potential or a possibility for capital appreciation.'

Ms Tay Huey Ying, Colliers' director of research and advisory, said private home sales this year - totalling 13,109 units in the first 10 months - could be on track to beat the 2007 record of 14,811 units.

An average of 851 homes a month have to be sold for the next two months to equal that figure. With Keppel Land's The Lakefront Residences having sold about 320 units over the weekend, and big launches such as CapitaLand's 1,715-unit residential project on the Farrer Court site set to be launched by year end, that figure seems within reach.

Ms Tay said: 'It shows us that speculative purchases are a minority; the market is not only flush with genuine buyers but also those who are financially strong, such that they can still afford to purchase despite the higher cash upfront needed.'

Foreigners, including PRs, accounted for 34 per cent of all non-landed caveats lodged and captured by the Urban Redevelopment Authority so far for last month. This is the highest for the year and is a sharp jump from the 26.8 per cent average for January to August this year prior to the introduction of the cooling measures, Colliers said.

Ms Christine Sun, Savills Singapore's senior manager of research and consultancy, said buyers might have returned to the market as a long-anticipated post-cooling measure price drop has not happened.

She added that the ECs had also seen good take-up as they had been launched 'at a time when HDB build-to-order flats have been very much oversubscribed and mass market private home prices have skyrocketed'.

In all, 1,070 units at private projects were launched for sale last month, slightly up from 1,058 in the previous month, with sales at The Glyndebourne - located on the Copthorne Orchid Hotel site - topping the table with 112 units sold at a median price of $2,149 per sq ft (psf).

NV Residences in Pasir Ris sold 81 units at a median $831 psf, Suites at Orchard in Handy Road had 80 units snapped up at a median of $2,140 psf, while The Lanai along Hillview Avenue sold 77 units at a median of $1,295 psf.

esthert@sph.com.sg

ST : Serene Centre up for collective sale

Nov 16, 2010

Serene Centre up for collective sale

So too is nearby freehold residential site Serene House

By Cheryl Lim



A favourite hangout with students in the Bukit Timah area, Serene Centre once housed Comics Mart. -- PHOTO: COLLIERS INTERNATIONAL

SERENE Centre, a favourite hangout with students in the Bukit Timah area, may soon be just a fond memory.

The well-known building once housed long-time tenants such as upscale supermarket Tierney's Gourmet and Comics Mart, one of the oldest comic shops here.

It has been put up for collective sale and could be redeveloped into a project with a maximum gross plot area of about 96,675 sq ft, based on a proposed plot ratio of 3.0.

The indicative price is $120 million to $130 million. This works out to $1,500 per sq ft per plot ratio (psf ppr).

Serene Centre is a mixed-use development that sits on a 32,225 sq ft plot on the corner of Farrer Road and Bukit Timah Road.

The four-storey commercial-residential development is made up of shop units on the first two storeys and 10 apartment units on the third and fourth storeys. Carpark facilities are located in the building's basement.

Potential buyers are asked to submit expression of interest by Dec 14.

The neighbouring site, Serene House, a freehold residential site located at 1A/B/C to 11 A/B/C Jalan Serene, is also up for sale.

The 39,828 sq ft development comprises a four-storey walk-up residential block of 24 apartment units. The site, which has a gross plot ratio of 1.4, can be redeveloped into a project of up to four storeys, with 80 units of 850 sq ft each.

The successful buyer has the option of increasing the total land area to about 49,020 sq ft by combining the site with the neighbouring plot of state land which measures 9,192 sq ft.

Assuming there is no development charge, the indicative price is in the region of $95 million to $98 million, including the alienation of the state land.This works out to $1,500 psf ppr.

The tender for Serene House will close on Dec 14.

Colliers International is brokering the sale of both sites.

cherlim@sph.com.sg

ST : Wanted: Sound ideas to cut traffic noise

Nov 16, 2010

Wanted: Sound ideas to cut traffic noise

NEA study to focus on residential buildings near roads and rail lines

By Goh Chin Lian



Mr Naidu in his bedroom overlooking TPE. The noise from motorbikes with modified exhausts racing along TPE in the wee hours keeps him awake at night. -- ST PHOTO: NURIA LING

THE authorities are taking a fresh look at reducing traffic noise from expressways, major roads, the MRT and LRT, as more vehicles take to the road and the frequency of train services increases.

Of concern is the impact of prolonged exposure to noise on people living near these thoroughfares, which experts say is linked to sleep disturbance, bad temper and heart disease.

The National Environment Agency (NEA) plans to hire a consultant in three months' time to look into reducing noise from existing and future major roads and rail lines.

Noise along these stretches can exceed 60 decibels, the equivalent of noise in a supermarket. Sleep is found to be significantly disrupted when background noise is 55 decibels or more.

The NEA hopes to study noise barriers and other steps used by cities in developed countries. Past studies here and abroad have yielded few workable solutions for a land-scarce, high-rise city like Singapore.

The authorities had previously explored the idea of noise barriers, such as a wall built in 1994 to shield the 12-storey Block 173 in Toa Payoh Lorong 1 from a slip road of the Pan-Island Expressway. But they were ineffective in reducing noise levels at the upper floors of high-rise buildings.

Conventional thinking among experts is that walls have to be 10m high and 1m wide to shave off just 5 decibels for a 15-storey block of flats.

Such barriers would take up too much land here, cost a lot to build and maintain, and be an eyesore. Where barriers have gaps for traffic to enter and exit an expressway, noise seeps through.

The NEA's targets are ambitious. It wants the recommended measures to be cost-effective, easy to maintain and reduce noise by at least 5 to 15 decibels for residential buildings of at least 12 storeys.

The study, which should take at least eight months, will focus on residential buildings fronting all nine expressways, 10 major arterial roads and above-ground MRT and LRT stations and tracks.

It could take a leaf out of the books of cities such as Australia's Melbourne, which built a 500m wall along a freeway partly with solar panels. These panels save on concrete, deflect noise and power street lights and closed-circuit TV cameras.

Associate Professor Lynne Lim, director of the Centre for Hearing Intervention and Language Development at the National University Hospital, noted that loud traffic noise can reach 80 to 85 decibels. A constant noise level of 65 decibels has been associated with increased risks of hypertension and heart disease, and 40 decibels with reduced concentration.

Associate Professor Low Wong Kein, director of the Centre for Hearing and Ear Implants at the Singapore General Hospital, said the link between traffic noise and heart disease is indirect.

He said: 'The irritating noise disturbs sleep, blood pressure is affected and stress level goes up. That indirectly has some effects on blood vessels and possibly results in a heart attack.'

The past two years have been a nightmare for the Naidu family, after they moved into a 15th-storey HDB five-room flat in Punggol facing the Tampines Expressway (TPE).

Mrs Vijaya Naidu, 29, often wakes three times at night because motorcycles with modified exhausts race along the expressway in the early hours. This is on top of noise from a rising number of lorries, motorcycles and cars on the highway.

The housewife, who goes to bed at 10.30pm, said: 'I can't sleep deeply. I am woken up at 1.30am, 3.30am and 6.30am, and I take more than half an hour to fall asleep again each time.'

Her neighbours in Block 117, Edgefield Plains hear the din too, but they told The Straits Times that they cope by closing all the windows and switching on the air-conditioning.

Mrs Naidu and her two children, aged five and two, sometimes do the same, but end up with runny noses. Her husband, Mr Parupalli Venkata Surya Raghava Naidu, 36, said that every few days, he moves into an air-conditioned room by himself, while his wife and children sleep with the windows open. The interrupted sleep has taken a toll on Mrs Naidu's health. She developed headaches and a sensitive nose, for which she has to use an inhaler when it acts up.

Mr Naidu, a Singapore permanent resident from India who has lived here for 10 years, wrote to the authorities in August asking them to reduce the noise or clamp down on illegally modified motorcycles, but was told nothing much could be done.

His block is almost 60m from the TPE, or double the minimum 30m required for buildings near expressways, the HDB said.

A multi-storey carpark separates Mr Naidu's block from the TPE, but he felt it screened noise only up to the seventh floor.

The IT network manager admits he underestimated the traffic noise when he bought the resale flat in October 2008. He viewed the flat on only one Sunday afternoon before he bought it.

chinlian@sph.com.sg


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

Current measures

1 Industrial buildings, multi-storey carparks or parks are placed between roads and residential buildings to screen out noise.

2 A buffer distance of at least 30m is set between buildings and expressways; at least 35m for homes facing an MRT track.

3 Trees are planted to shield homes for psychological relief. Trees attract birds, whose songs mask traffic noise.

4 Roads are surfaced with porous asphalt that absorbs vehicle noise.

5 Caps on noise emissions by new vehicles were lowered last month. Existing vehicles face a stricter regime from April 1 next year.

6 Vehicles with illegally modified exhaust systems are clamped down on.

7 MRT train wheels and rails are ground to even out surfaces and remove defects that generate noise.

8 Public address systems at MRT stations project sound inward towards stations. Volume is turned down at night.

BT : After blip, property is hot again

Business Times - 16 Nov 2010

After blip, property is hot again

Primary market shrugs off impact of cooling measures as Oct sales rise; industry watchers wonder if this will prompt new steps from govt

By KALPANA RASHIWALA

(SINGAPORE) After September's slump came October's rebound. This turnaround, reflected in the latest developer sales figures revealed yesterday, has prompted some industry observers to say that another round of demand-cooling measures may follow, as those announced on Aug 30 do not seem to have had a strong or lasting impact.

Developers sold 1,058 private homes excluding executive condominium (EC) units in October, up 16.1 per cent from September's sales volume of 911 units, according to primary-market sales data released by the Urban Redevelopment Authority yesterday. In addition, developers sold 529 ECs in October (no ECs were sold in September), taking total developer sales (including ECs) for October to 1,587 units.

The number of private homes sold in the $2,000 to $2,500 per square foot price band in October was 207 units, or about eight times the 26 units developers sold in September. The increase was partly due to the release of The Glyndebourne (along Dunearn Road) and Suites at Orchard (at Handy Road).

Excluding ECs (which are a hybrid of public and private housing), developers had sold 1,259 units in August before the cooling measures pushed this number down to 911 in September. It climbed back to 1,058 in October.

Said Knight Frank chairman Tan Tiong Cheng: 'Gauging by new sales, I suppose what government is trying to do doesn't seem to have had a severe impact on the market.

'The market is still buoyant; it's hard to say it's not. It would seem to me that if the government feels that current price levels are still high, we can expect more measures to cool the market.'

In the first 10 months of this year, developers sold 13,109 private homes excluding ECs - against 14,688 units for the whole of last year. Property consultants reckon the full-year tally may reach 14,700-15,000 and could surpass the record 14,811 units sold in 2007.

DTZ executive director (consulting) Ong Choon Fah said: 'Demand is still liquidity driven; it goes beyond the property market. It's an overall market phenomenon.'

She also pointed to the emergence of a two-tier market, with new projects launched by developers commanding a price premium of 20 per cent or more to earlier developments in the area.

The number of private homes (excluding ECs) sold by developers in the Core Central Region and Rest of Central Region rose, but sales in Outside Central Region (where mass-market homes are found) fell about 25 per cent.

In tandem with this trend, Colliers International's analysis shows that the number of private homes (excluding ECs) costing up to $1,000 psf sold by developers declined from 427 units in September to 183 last month.

Some of the demand in the low-price band was probably siphoned off to the two new EC projects released last month - Esparina Residences in Buangkok and The Canopy in Yishun - the first EC launches in five years, with sales of 425 units (at $761 psf median price) and 104 units (at $658 psf median price). Developers also continued to roll out smallish units to drive up sales and per square foot prices, such as Suites @ Sims, RV Point along River Valley Road and Kovan Grandeur.

The most expensive new home sold by a developer last month was a $4,800 psf unit at Boulevard Vue, a 33-storey freehold development at Cuscaden Walk. BT understands that the deal involved a 4,500 sq ft high-floor apartment, amounting to $21.6 million.

Other high-priced deals in October included Tomlinson Heights ($3,416 psf), Marina Bay Suites ($3,328 psf), Paterson Suites ($3,133 psf), Alba in Cairnhill Rise ($3,100 psf), Twin Peaks in the Leonie Hill area ($2,885 psf) and Seascape in Sentosa Cove ($2,838 psf).

In terms of sales volume, October's top-selling primary market projects included the two new ECs. The total of 979 units in these two projects boosted total units launched by developers in October to 2,049 units.

Excluding ECs, developers released 1,070 private homes in October, slightly above the 1,058 units in September.

Other projects that sold well last month include The Glyndebourne (112 units at $2,149 psf median price), NV Residences in Pasir Ris (81 units at $831 psf), Suites at Orchard (80 units at $2,140 psf) and Vacanza @ East (77 units at $1,081 psf).

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

BT : Understanding property developers

Business Times - 16 Nov 2010

BLUESKY FESTIVAL 2010
Understanding property developers

Hong Leong Finance has many clients in capital intensive industries, reports EMILYN YAP

ANYONE gathering case studies of the management principle 'vertical integration' need look no further than Singapore's property development industry.

Several small to mid-size developers here started out as construction or engineering firms, building homes or offices for other developers. With bigger margins to be made down the value chain, these firms later decided to go into property development themselves.

Tee International is one such example. It began operations in the 1980s as an electrical and mechanical engineer. In 2007, it started to acquire properties for redevelopment into new homes, sometimes with joint venture partners.

Tee International's projects include Thomson Duplex and Cantiz @ Rambai. It will be co-developing a condominium project at Cairnhill Circle with another partner.

Teambuild Construction Pte Ltd is another example. It started out in 1992 handling small sub-contracting jobs for Housing and Development Board projects, and later moved on to doing full construction and upgrading works.

Today, the firm is also a private property developer, with residential projects such as Casa Aerata, D'Casita and Blissville under its belt.

Obtaining funding for new ventures is critical and Tee International and Teambuild were both backed by Hong Leong Finance (HLF).

Established relationship

According to Tee International's group chief executive and managing director Phua Chian Kin, the firm started borrowing from HLF four to five years ago and went back to it for construction and land loans for its first property development Thomson Duplex.

Tee International is also taking up loans from HLF for the Cairnhill Circle project. Having an established relationship with the lender helps as the firm does not have to re-acquaint bankers with its entire business, Mr Phua said.

There was a similar progression in the relationship between Teambuild and HLF. Teambuild had struck hire purchase and cash flow financing arrangements with HLF in the earlier years, and continued to borrow from the latter for residential projects.

The initial steps into property development were challenging not only because the product was different, but also because the firm had to obtain loans for sites, said Teambuild executive director Tang Hee Sung. The firm had worked with HLF for years and was comfortable going back to it for funds, he said.

HLF has many clients in capital intensive industries, said its president Ian Macdonald. 'Each company has got its own issue, each company's got its own requirements,' he said. 'You just can't pull something off the shelf, you've got to be able to understand the business.'

Continued support

Other clients of HLF include Mini Environment Service Pte Ltd and Double Wong Foundation Pte Ltd. For these two companies, HLF's continued support during the recent recession kept their businesses going.

Double Wong relies on hire purchase loans to buy machines for foundation works and while other banks 'removed the umbrella when it was raining', HLF continued to lend, said the firm's CEO Wong Tuck Wai.

Mini Environment CEO Mohamed Abdul Jaleel also said that HLF recently revised rates for its loans as the Singapore interbank offered rate fell.

HLF recently set up an SME centre at City Square Mall to serve more clients in the area, and is looking to open another at Jurong East by year-end.

Not all businessmen want to go to the central business district to meet their bankers, Mr Macdonald said. Also, 'it's much better for us to go out to someone's business. Then you can actually see, touch, feel, get to know your customer.'

The financing company is continually exploring ways to improve the banking experience, he said. 'No one wakes up in the morning and wants to borrow money. What they want to do is buy stuff, grow their business, look at overseas opportunities. So it's how we can provide that service in the timeframe that customers need.'

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



'No one wakes up in the morning and wants to borrow money. What they want to do is buy stuff, grow their business, look at overseas opportunities. So it's how we can provide that service in the timeframe that customers need.'
- Ian Macdonald, Hong Leong Finance president

BT : Serene House and Serene Centre up for sale

Business Times - 16 Nov 2010

Serene House and Serene Centre up for sale

SERENE House and Serene Centre, both off Bukit Timah Road, have been put up for sale through property firm Colliers International.

Colliers said yesterday that Serene House, a freehold residential site, will be offered via tender with an indicative price of $95 million to $98 million, or about $1,500 per sq ft per plot ratio.

This assumes that no development charge is payable and includes the alienation of a neighbouring government-owned site.

Serene House is a four- storey walk-up residential block comprising 24 apartments. The land area is 39,828 sq ft. Under the 2008 Master Plan, the rectangular site is zoned for residential use and has a gross plot ratio of 1.4.

Colliers said the successful buyer can increase the total land area to 49,020 sq ft by amalgamating the neighbouring state land of 9,192 sq ft.

The combined site can accommodate a new residential development comprising a four-storey block with 80 units of 850 sq ft each. The tender for Serene House closes on Dec 14.

Serene Centre, a commercial / residential development, is being put up for sale through expression of interest.

The indicative price is $120 million to $130 million, which works out to $1,500 per sq ft per plot ratio, based on a proposed plot ratio of three.

The four-storey development comprises shop units on the first and second storeys, and 10 apartments on the third and fourth storeys.

Serene Centre is on a 32,225 sq ft corner land plot fronting Farrer and Bukit Timah roads. Under the 2008 Master Plan, the site is zoned for commercial / residential use.

The buyer can either refurbish the property to enhance the lettable area or redevelop the site into a new commercial / residential development. Expressions of interest must be submitted by Dec 14.

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

BT : More reclaimed land for new industries on Jurong Island

Business Times - 16 Nov 2010

More reclaimed land for new industries on Jurong Island

Move comes as Shell ramps up output at its HPEO plant

By RONNIE LIM

(SINGAPORE) More land is being reclaimed off Ayer Merbau on Jurong Island to accommodate new investors like soap and detergent makers at a new value-add petrochemicals corridor shaping up there, as well as other potential downstream parties, BT has learnt.

Shell just last week said it was ramping production of high-purity ethylene oxide (HPEO) needed by investors at the new corridor there.

And sources said that JTC Corporation is reclaiming about 18 hectares off Ayer Merbau, starting with some 7-8 ha in the south and another 5 ha in the north of the area.

Ayer Merbau is where Shell's mono-ethylene glycol (MEG) plant - part of its new US$3 billion petrochemical complex - and its now wholly-owned Ethylene Glycols Singapore plant, is sited.

Shell just last week bought out its Japanese partners in EGS, with this now enabling it to better integrate the EGS and MEG plants so that it can increase its HPEO production to 100,000 tonnes per annum right away, or up from 60,000 tpa currently.

Shell Chemicals vice-president, Iain Lo, told BT last Thursday that this will allow it to supply enough HPEO to downstream customers whose new plants will be up and running in about 18-24 months time. HPEO - which through ethoxylation, like putting ethylene oxide on alcohols - is used for products like soap and detergent.

Shell is now evaluating longer-term HPEO requirements, including from other customers, before proceeding with its plans to add even more capacity by investing in a new HPEO column or plant at its MEG plant.

In connection with the land work at Ayer Merbau, JTC has also just tendered for a consultant to do environmental monitoring and to come up with a management plan for the reclamation there.

Sources estimate that the reclamation is expected to add some 10 per cent more land to Ayer Merbau, where Singapore's first petrochemical complex, Petrochemical Corporation of Singapore is also sited.

BT earlier reported that some other Japanese and German investors are also looking at possible new downstream plant investments there.

Germany's Lanxess, which is currently building a 400 million euros (S$687 million) synthetic rubber plant on Jurong Island, is said to be discussing butadiene feedstock for a possible second plant here to produce Nd-PBR, another hard-wearing synthetic rubber used for making tyres.

Its most likely butadiene source here will be Shell, whose new petrochemicals complex here has a butadient extraction unit.

Another is Mitsui Chemicals, which has already invested over S$1 billion in five plants here, and which indicated earlier this year that it was now considering a sixth plant in Singapore.

This could possibly be for additional capacity for elastomers (flexible and light resin modifiers that improve the impact resistance of moulded products like car bumpers).

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

BT : HDB launches Lakeside site for 580 DBSS flats

Business Times - 16 Nov 2010

HDB launches Lakeside site for 580 DBSS flats

2.1 hectare plot expected to draw bids of $195-215 per sq ft per plot ratio

By EMILYN YAP

THE Housing and Development Board (HDB) is launching a public housing site at Lakeside for sale, which can potentially yield 580 flats.

The 2.1 hectare plot comes under HDB's design, build and sell scheme (DBSS).

It is at Yuan Ching Road, near open spaces such as Jurong Lake and the Jurong Country Club golf course, and education institutions such as Jurong Secondary School.

The site is also near the upcoming Jurong Lake District, which the government is developing as a major regional centre.

However, the plot is some distance away from an MRT station.

Both the Lakeside and Boon Lay stations are several bus stops away.

The land parcel has a maximum allowable gross floor area of 684,574 sq ft and carries a lease term of 103 years (including a four-year construction period). The tender will close on Jan 5.

SLP International Property Consultants' research executive director Nicholas Mak believes that the top bid for the site could range from $133.5-147 million, translating to $195-215 per sq ft per plot ratio (psf ppr).

There might be four to six bidders, most of whom would be contractors- cum-developers, he added.

'Compared to some of the earlier DBSS sites sold this year, this site is less attractive as it is not situated near the nearest MRT station,' Mr Mak said.

As a result, he expects bids for the Yuan Ching site to be lower.

He cited as an example a DBSS site at Bedok Reservoir Crescent, near an upcoming MRT station on the Downtown line, which was recently sold for $224 psf ppr.

'The prices of resale flats in Bedok are also generally higher than those in Jurong West,' he said.

According to him, the average price of five-room resale flats in Bedok is $500,000, while that in Jurong West is $490,000.

Under the DBSS, the winning developer enjoys flexibility in designing, pricing and selling the flats.

First-timer households with a monthly income of up to $10,000 are now able to buy new DBSS flats and they can apply for a CPF housing grant of $30,000, but they will not be able to obtain a HDB concessionary loan.

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



The Yuan Ching Rd site is less attractive than other DBSS sites as it's not near an MRT station.
- Nicholas Mak

CNA : Private property sales rebound in Oct

Private property sales rebound in Oct
Posted: 15 November 2010 1302 hrs

SINGAPORE: Sales of private home units rebounded in October, climbing above the 1,000 units level yet again.

Data released on Monday by the Urban Redevelopment Authority (URA) showed that 1,058 private units were sold last month.

Including Executive Condominiums, the total sales would have reached an even more impressive figure of 1,587.

That's higher than the 911 units sold in the previous month.

Chalking up the best sales was Esparina Residences at Buangkok Drive, which sold 425 units.

Sales fell in September after the government imposed property cooling measures that took effect from August 30.

-CNA/wk

BT : Property bubble fears hurt Spain's recovery

Business Times - 15 Nov 2010

Property bubble fears hurt Spain's recovery

Prices have dropped; about 1.5m homes are lying unsold

(MADRID) Knock-down home prices, idle cranes and builders forced to retrain for new jobs: despite sliding prices the spectre of a Spanish property bubble is hurting a fragile economic recovery.

The new labour minister, Valeriano Gomez, summed it up when he took over at the end of October: 'Three out of four jobs lost in the crisis are in construction and related sectors.'

Spain has the euro zone's highest jobless rate at about 20 per cent.

All-out building in suburbs, the country and especially on the coast was the engine of the economy in the past decade. 'In the last eight years, two-thirds of the homes built in Europe were in Spain,' said Christian Palau, director of the online real estate advertising site Fotocasa.

From 2000, Spain built about 700,000 homes a year, as many as in France, Germany and Britain combined, until the 2008 glut pricked the bubble, with a price slump and a slew of property developer bankruptcies.

Recently, the market appeared to regain some health. Sales leapt 30 per cent in August and prices in the third quarter of this year only dropped 3.4 per cent from a year earlier, according to official data.

Many buyers are taking the plunge to take advantage of a home purchase tax deduction, which expires on Dec 31. But the frenetic activity should not hide an accumulated stock of housing, with about 1.5 million new and older homes unsold. It is estimated that 16 per cent of Spanish homes are vacant, a record for Europe.

No surprise then that Banesto bank launched in mid-October an unprecedented programme slashing the cost of 600 homes across Spain to 50 per cent of the market price. Because the real problem is that property prices, even after dropping 25 per cent since 2007, must fall further. The Economist calculated recently that Spanish properties remained 46.7 per cent overpriced.

'We are no longer in a bubble,' said Jose Luis Suarez, professor at Madrid's IESE Business School de Madrid. 'But that does not mean that prices cannot decline further.'

The building and public works sector is on pause waiting for the market to take off again. 'You only have to look at the number of homes in construction, about 100,000 this year. You could almost say there is no building activity this year,' said Mr Suarez.

'This slump to record lows has consequences for employment,' he stressed, since the sector has been a huge employer over the years. The result is that construction industry workers, most without formal qualifications, are out of work, and it will cost a lot to replace them, said Mr Palau.

Meanwhile the country, whose economy stalled with zero growth in the third quarter according to preliminary figures, has to decide 'what to do' and in which area to stake its future, Mr Palau said.

Besides idle building sites, many finished homes lie empty in 'ghost districts': 'They promised (buyers) that there would be shops, public transport, schools, but with the crisis the property developers left.' The solution, he said, could be greater support to the rental market, a poor cousin in a country where home-ownership is the common dream. Relying only on purchases, it could take 10-15 years to absorb existing stock, he added\. \-- AFP

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



Accumulated stock: A combination of pictures taken on Oct 28 showing signs in Spanish saying 'For sale' displayed on balconies in Madrid

BT : Getting burnt over high-end homes

Business Times - 15 Nov 2010

Getting burnt over high-end homes

However, 90% of sub-sale transactions still turned a profit

By UMA SHANKARI

(SINGAPORE) A handful of private homes nearing completion in the prime Orchard Road area have been re-sold at a loss.

A Savills analysis of caveats captured by the Urban Redevelopment Authority's Real Estate Information System (Realis) as at Oct 19 showed that nine units bought in 2007 were sold in 2010 at a loss in the sub-sale market.

But the bulk of homes bought from 2006 to 2009 - 78 out of 87 - were sold for a profit, the analysis found.

The sellers who lost money sold units in the following developments: three in Scotts Square, two in Parkview Eclat and one each in Grange Infinite, Leonie Parc View, Orion and Paterson Linc. Eight of the nine units were bought from developers. Size was not a factor - the units sold at a loss ranged from 818 to 3,250 square feet.

The two biggest losses were at Parkview Eclat, where two sellers were $1.75 million and $1.72 million poorer. Both owners bought the units from developer Chyau Fwu Group in 2007.

Steven Ming, executive director for prestige homes at Savills Singapore, said that the high-end market has not recovered to the peak levels of 2007 and 2008 and homes are still generally trading at discounts of 10-15 per cent.

The fact that all nine losses were on units bought in 2007 'may be due to the high prices the owners paid when the residential market reached its peak in 2007', Mr Ming said.

In contrast, units bought in 2006, 2008 and 2009 were re-sold at a profit in 2010. Mr Ming also noted that more owners suffered losses in the second and third quarters of this year than in the first.

Ku Swee Yong, chief executive of International Property Advisor, said that some owners could just be 'weary' of holding on to their properties, especially as tenants have become harder to find after an outflow of expatriates in 2009.

'If you were a tenant with a monthly budget of $9,000-12,000, there will be many vacant brand new properties to choose from - Ardmore II, CityVista, BelleVue, St Thomas Suites and Latitude, just to name a few - and these new projects will be competing with older, more established and larger-sized units such as those in Ardmore Park and Grange Residences,' Mr Ku said.

As of now, the number of loss-making transactions remains very low, Savills' Mr Ming noted. Ninety per cent of sub-sale transactions this year still made profits, ranging from $3,620 to $1.92 million.

By project, St Thomas Suites led the number of gains, with all 17 units sold at profits ranging from $3,620 to $1.36 million.

Ardmore II ranked second with 13 gains. A 34-storey unit in the development made the highest profit of $1.92 million among all 87 matched sub-sale transactions, followed by a 27-storey unit with a gain of $1.9 million.

The first unit was purchased in the sub-sale market at $3.74 million (or $1,849 per sq ft) in April 2009 and flipped for $5.66 million ($2,799 psf) in August 2010.The second unit was also purchased in the sub-sale market. The buyer paid $3.75 million ($1,853 psf) in January 2009, then sold it in July 2010 for $5.65 million ($2,792 psf).

Looking ahead, more owners could be keen to sell high-end units - even at losses - as oversupply concerns loom on the back of ample new inventory in the pipeline in the prime districts 9 and 10.

'The wave of construction that began in 2007 and 2008 means we are seeing significant completions of luxury properties from 2010 to 2012,' said Mr Ku. 'Coming soon are The Marq on Paterson Hill, Cliveden at Grange, Nassim Park Residences, Helios, Hilltops, The Orange Grove and Ritz Carlton Residences, among others.'

Mr Ming added: 'Property investments are best left to those that can afford to take knocks. While the middle to long-term market outlook is bright, it is not without some degree of volatility as hot money can go as quickly as it comes.'

For its analysis, Savills only compared sub-sale transactions for which there were caveats of previous transactions. The amount of profit or loss was calculated as the difference between sale and purchase prices and does not take into account stamp duty and other expenses.

Based on caveats downloaded on Oct 19, Savills found that 108 units in 16 projects in the Orchard Road vicinity were sold in the sub-sale market in 2010.

Of these units, the firm managed to match 87 units with their previous transactions. It found that nine units were re-sold for losses in the sub-sale market.

Sub-sales - which refer to secondary market transactions involving projects that have yet to receive a Certificate of Statutory Completion - are tracked as a gauge of property speculation.

At the low point of the market in Q1 2009, only 67.5 per cent of sub-sales of private apartments and condos yielded a profit. That proportion grew to 95.1 per cent in Q1 2010.

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

ST : Northern connector links towns to nature

Nov 15, 2010

Northern connector links towns to nature

25km loop connects not only parks but also communities in HDB heartland

By Chong Zi Liang

CYCLING enthusiasts at park connectors usually make their way round winding trails through nature reserves and forested areas, but the Northern Explorer Park Connector Network (PCN) will have them pedalling through urban landscapes as well.

The 25km loop links not only 11 nature sites and parks such as Admiralty Park, Yishun Park and Lower Seletar Reservoir Park, but also heartland towns in the northern part of Singapore.

At the launch of the northern network yesterday, Home Affairs and Law Minister K. Shanmugam noted that besides recreational uses, park connectors also helped facilitate inter-town commuting.

'Besides linking nature, the park connector network also links communities. By using the PCN, you can explore the residential heartland of Woodlands, Sembawang and Yishun towns,' he said.

The $19 million Northern Explorer PCN passes alongside six MRT stations and about half of the stretch runs along train viaducts.

But the connector also showcases Singapore's biodiversity. A wide variety of birds such as woodpeckers and kingfishers as well as different species of butterflies and dragonflies can be spotted along the way.

The Northern Explorer is the third loop of park connectors developed by the National Parks Board (NParks) - coming after the Eastern Coastal PCN, which opened in 2007, and the Western Adventure PCN, which opened last year.

Together, they make up 150km of cycling paths. NParks aims to complete 300km of an islandwide grid linking major parks, nature sites and housing estates by 2015.

A fourth loop in the north-eastern part of Singapore is expected to be unveiled next year.

The park connectors come at a time of growing interest in cycling - both for recreation and commuting - among Singaporeans.

There are currently seven designated cycling towns that will be outfitted with cycling paths, bicycle racks and parking spaces.

The park connectors are proving to be popular among cyclists, joggers and commuters alike. About 1,500 residents from Sembawang and Ang Mo Kio GRCs took part in a brisk walk to mark the Northern Explorer PCN's launch yesterday.

About 400 PCN users even formed a group called 'PC&Frens' to engage in outdoor activities and get the latest updates on park connectors.

One member is biking enthusiast Han Jok Kwang, 56, who cycles with a group of about five to 12 bikers every Sunday. He sends feedback to NParks based on what he sees on his trips.

He said the Northern Explorer has unique appeal because it forms a complete loop, unlike the eastern and western PCNs.

'There is more 'kick' in completing a circuit instead of having to turn around to get back to your starting point, which can be frustrating,' the information officer said.

ziliang@sph.com.sg


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

Ride through town and country

ROOKIE cycling enthusiasts would do well to take note of the 5km stretch that runs along Mandai Road and Mandai Avenue.

The stretch, which is part of the new 25km-long Northern Explorer Park Connector, sits on several slopes.

If the cyclist approaches it from Woodlands, it will be a leisurely downhill ride towards Khatib.

Coming from the opposite direction means an arduous uphill climb.

I took the easy route last week on the advice of National Parks Board officials and completed the trail in four hours, with frequent stops for photographs and rest.

At the most rustic part of the trail, the Ulu Sembawang Park Connector, I spotted a few colourful birds while taking a five-minute break.

Those unaccustomed to the great outdoors should not be daunted as that stretch is easy for first-timers.

Indeed, the ride through heartland towns was trickier.

I stopped to push my bicycle many times to avoid riding through human traffic as a lack of space sometimes means the path is shared by cyclists and pedestrians alike.

Some also seem to have the habit of walking on cycling paths and cycling on footpaths.

But there are benefits to taking a cycling trip on a track that runs through housing estates, as I ran out of steam halfway and stopped for drinks and snacks, which were easily available.

Failing which, if one is using a foldable bicycle, one can always hop on the MRT and call it a day.

CHONG ZI LIANG

Pre-development Land Investing

In business for over 30 years, success in providing real estate investment opportunities to clients around the world is a simple, yet effective separation of roles and responsibilites. The four pillars of strength guide the land from the research and acquisition, through to the exit, including the distribution of proceeds to our clients ......


To know more how this is really work for you and your clients....

Please contact me Terence Tay @ (+65) 9387-5896 or email : terencetay.kh@gmail.com