Dec 14,2010
Two more sites for collective sale launched
By Cheryl Lim
THE collective sale market continues to pick up steam, with two more developments - Euro-Asia Apartments and Bartley Grove Apartments - launched today.
Euro-Asia Apartments, an 84-unit freehold development in Serangoon Road, has an asking price of $142 million or $899 per square ft per plot ratio (psf ppr).
This includes a development charge of about $339,000.
With apartments ranging from 840 sq ft to 2,443 sq ft, the owners could each collect between $1.09 million and $2.6 million - around 20 per cent above prevailing market rates.
The Euro-Asia site is about 56,476 sq ft with a plot ratio of 2.8.
Urban Front Real Estate, which is marketing the estate, said the plot could be redeveloped into a 140-unit condominium with units of about 1,130 sq ft each.
The tender closes on Jan 25.
Owners at the freehold Bartley Grove Apartments want $70 million, or about $904 psf ppr. The buyer may not have to pay a development charge.
A successful sale could reap owners of the 25 units, sized from 1,065 sq ft to 3,778 sq ft, between $1.38 million and $3.59 million each - about 22 per cent above the market rate.
The site is about 55,287 sq ft with a plot ratio of 1.4 and can be redeveloped into an 80-unit project with flats of about 1,000 sq ft each.
Bartley Grove Apartments is near St Andrew's Junior College and Cedar Girls Secondary School, and is minutes away from Paya Lebar Central, an upcoming commercial hub.
Urban Front Real Estate is also handling the sale. The tender closes on Jan 26.
Credo Real Estate executive director Tan Hong Boon said 31 collective sales deals have been sealed so far this year, with a total of more than $1.5 billion.
Meanwhile, executive condominium project Prive has processed 302 sales options - almost half its 680 units.
There were 1,036 e-applications received prior to the public launch of sales for the project, with second-time applicants making up almost 50 per cent.
The average price for the project is between $660 per sq ft and $690 per sq ft.
The 99-year leasehold project at Punggol Central is a joint development between NTUC Choice Homes Co-operative and Chip Eng Seng.
Wednesday, December 15, 2010
ST : Buyers snap up 270 units of Punggol EC
Dec 14,2010
Buyers snap up 270 units of Punggol EC
More than a third of units sold on executive condo's first day of sales
By Esther Teo
BUYERS have flocked to the latest in a spate of executive condominium (EC) launches, snapping up 270 homes - more than one-third of those on offer - on the first day of sales of the Punggol project.
Launches of ECs, an upmarket hybrid of public and private housing, are coming fast and furious after a five-year drought.
The NTUC Choice Homes Cooperative's 680-unit EC project Prive at the junction of Punggol Field and Punggol Road is the third EC in the past couple of months with another possibly on the way this month and more likely next year.
The average price for the project is $660 per sq ft to $690 per sq ft (psf). It had received 1,036 applications as at Tuesday.
With the Prive sales on day one yesterday, it means nearly 1,000 EC units have been sold in the recent flurry.
Before this year's launches, the last EC launch was La Casa in Woodlands in 2005.
Then in October this year, Esparina Residences by Frasers Centrepoint Homes near Buangkok MRT station was launched. This was swiftly followed by MCC Land's The Canopy in Yishun in the same month and most recently, Prive.
United Engineers' Australian-themed EC project, the 540-unit Austville Residences, next to Punggol Park is expected to be launched in the next few weeks.
Prive is offering the deferred payment scheme (DPS) allowing buyers to pay just a 5 per cent booking fee and 15 per cent of the purchase price. They need not make further payment until completion.
Many had assumed DPS was scrapped for ECs, as for other property, in October 2007 to curb speculation. However, it has emerged that ECs were exempted from the change. NTUC Choice Homes said yesterday that fewer than 10 per cent of Prive buyers had opted for DPS.
With this deluge of new homes to meet demand from the so-called sandwich class - households earning $8,000 to $10,000 - buyers are spoilt for choice with another four EC sites in areas like Tampines, Choa Chu Kang, Punggol and Serangoon on the government land sales programme for the first half of next year.
Experts said, however, that with supply being ramped up, not all ECs will perform as well, as buyers weigh different factors such as pricing, location and accessibility more carefully before buying.
Propnex chief executive Mohamed Ismail said these are the key considerations of realistic buyers seeking greater convenience in the light of rising transport costs.
Esparina Residences, for example, has set the highest benchmark price for an EC with 513 out of 573 units sold at an average price of $740 psf - about 14 per cent pricier than 406-unit The Canopy which had sold 210 units at an average $650 psf.
Despite the higher price, sales have been stronger at Esparina, which is next to Buangkok MRT station. The Canopy is further from Yishun MRT Station though it is right by Yishun Park.
Neither Esparina nor The Canopy has offered the DPS.
Prices for Austville Residences will start from $620 psf and like Prive, it will offer the DPS.
Mr Simon Lee, 36, successfully balloted for a 1,098 sq ft three-bedroom plus study apartment at Prive for $806,000 - or about $734 psf. He decided to upgrade from his Bishan HDB flat, as the convenience of the MRT station next to the new project was a big draw.
'We have two boys and we think that the condo environment with its facilities will be good for them... We tried Esparina as well but didn't get it,' he added.
esthert@sph.com.sg
Buyers snap up 270 units of Punggol EC
More than a third of units sold on executive condo's first day of sales
By Esther Teo
BUYERS have flocked to the latest in a spate of executive condominium (EC) launches, snapping up 270 homes - more than one-third of those on offer - on the first day of sales of the Punggol project.
Launches of ECs, an upmarket hybrid of public and private housing, are coming fast and furious after a five-year drought.
The NTUC Choice Homes Cooperative's 680-unit EC project Prive at the junction of Punggol Field and Punggol Road is the third EC in the past couple of months with another possibly on the way this month and more likely next year.
The average price for the project is $660 per sq ft to $690 per sq ft (psf). It had received 1,036 applications as at Tuesday.
With the Prive sales on day one yesterday, it means nearly 1,000 EC units have been sold in the recent flurry.
Before this year's launches, the last EC launch was La Casa in Woodlands in 2005.
Then in October this year, Esparina Residences by Frasers Centrepoint Homes near Buangkok MRT station was launched. This was swiftly followed by MCC Land's The Canopy in Yishun in the same month and most recently, Prive.
United Engineers' Australian-themed EC project, the 540-unit Austville Residences, next to Punggol Park is expected to be launched in the next few weeks.
Prive is offering the deferred payment scheme (DPS) allowing buyers to pay just a 5 per cent booking fee and 15 per cent of the purchase price. They need not make further payment until completion.
Many had assumed DPS was scrapped for ECs, as for other property, in October 2007 to curb speculation. However, it has emerged that ECs were exempted from the change. NTUC Choice Homes said yesterday that fewer than 10 per cent of Prive buyers had opted for DPS.
With this deluge of new homes to meet demand from the so-called sandwich class - households earning $8,000 to $10,000 - buyers are spoilt for choice with another four EC sites in areas like Tampines, Choa Chu Kang, Punggol and Serangoon on the government land sales programme for the first half of next year.
Experts said, however, that with supply being ramped up, not all ECs will perform as well, as buyers weigh different factors such as pricing, location and accessibility more carefully before buying.
Propnex chief executive Mohamed Ismail said these are the key considerations of realistic buyers seeking greater convenience in the light of rising transport costs.
Esparina Residences, for example, has set the highest benchmark price for an EC with 513 out of 573 units sold at an average price of $740 psf - about 14 per cent pricier than 406-unit The Canopy which had sold 210 units at an average $650 psf.
Despite the higher price, sales have been stronger at Esparina, which is next to Buangkok MRT station. The Canopy is further from Yishun MRT Station though it is right by Yishun Park.
Neither Esparina nor The Canopy has offered the DPS.
Prices for Austville Residences will start from $620 psf and like Prive, it will offer the DPS.
Mr Simon Lee, 36, successfully balloted for a 1,098 sq ft three-bedroom plus study apartment at Prive for $806,000 - or about $734 psf. He decided to upgrade from his Bishan HDB flat, as the convenience of the MRT station next to the new project was a big draw.
'We have two boys and we think that the condo environment with its facilities will be good for them... We tried Esparina as well but didn't get it,' he added.
esthert@sph.com.sg
ST : Retiring comfortably on property income
Dec 10,2010
Retiring comfortably on property income
Real estate investor shares hot deals and advice in her seminars
By Gabriel Chen
A KEY Singapore investor in a new RM500 million (S$209 million) Johor waterfront residential and commercial project takes a novel approach to property development.
Ms Tan Yang Po runs investment seminars on finding hot property deals - and often invites her students to invest in projects that she is involved with.
The latest instance came this week when Ms Tan, 48, made a big splash with the news that she is pumping about RM150 million into the 1.68ha Azea Properties at Danga Bay, a major site in the Iskandar Malaysia development corridor.
She said buyers of the high-end development, which will feature 700 high-rise service apartments and retail space, will include those attending her seminars.
The project, brokered by local real estate agency GPS Alliance, will be jointly developed with Malaysian investors.
Ms Tan owns a two-year-old property investing education outfit on the seventh floor of Clifford Centre known as Azea Personal Coaching. It has more than 1,000 members, including housewives and professionals, who pay as much as $1,600 a year to get exposure to hot property deals that are sourced by Azea's contacts worldwide.
Founder Ms Tan said she guides her members by setting goals and targets for them. She also advises them of the merits of distress investing, that is, buying properties way below market value, and doing property deals with no downpayment - possible in some foreign markets.
'The only way you can retire comfortably is if you have passive income. A lot of people are stuck in the rut where they make quick money and then lose money fast,' said Ms Tan.
The mother-of-two, an economics and political science graduate from the National University of Singapore, used to head the Asia-Pacific regional office of Yves Saint Laurent Comestic, Skincare and Fragrance during the 1990s.
In 2002, she teamed up with local entrepreneur Richard Tan of Success Resources to build e-learning systems provider SkyQuestCom from scratch.
She left SkyQuestCom in 2008 to start her current business, which includes property arm Azea Property Development.
Ms Tan has not worked in the property line full time, but insists she is no novice at real estate investing.
She caught the property bug after her first foray in the early 1990s, when she bought a two-bedroom condominium in River Valley after securing a 90 per cent bank loan. 'Within three months, I flipped the property and made $60,000. That was my first experience and it taught me that property is good,' she said.
She now owns four properties in Singapore. She rents out three of them, and said she derives her main income from her property investments, rather than from her seminars.
She said that Azea seminar participants or members need not worry about finding individual properties, as her team will compile deals. Members can order them through its website.
'Typically, we don't take a commission out of the deal because we are co-investors. But in very rare instances, we do. Normally, it's just admin charges and investors know they are charged that amount,' she said.
Group investing is encouraged.
Typically, a company is formed to invest in overseas properties, and members who participate will become shareholders of the company. The amount of debt taken on by these companies depends on the property deal.
Some can be as high as 40 per cent equity, while some can be as low as no capital outlay, she explained.
No member has pulled out of a group investment, but if they need to, 'they sell their share and exit'.
Azea members recently acquired £3 million (S$6.2 million) worth of 12 Victorian-styled apartment units in London and another 200 units of landed properties valued at more than US$7 million (S$9.1 million) in Houston - all of which were on offer below their market values.
Ms Tan has her fair share of supporters and critics.
A real estate agent who attended her seminars said many of her strategies are not relevant to the Singapore market. But another agent said that she is informed and has 'trained a lot of property agents here'.
Ms Tan believes her margin of safety is adequate. 'There are people who say there's going to be a double dip (recession), but if you are buying a (Houston landed) property at US$15,000 (a unit), how far can it go below that?'
'It's just next to impossible. The chances of the upside are so much more than the downside.'
gabrielc@sph.com.sg
Azea Property Investment founder Tan Yang Po is pumping about RM150 million (S$62.6 million) into the 1.68ha Azea Properties project at Danga Bay, Johor. -- ST PHOTO: AZIZ HUSSIN
Retiring comfortably on property income
Real estate investor shares hot deals and advice in her seminars
By Gabriel Chen
A KEY Singapore investor in a new RM500 million (S$209 million) Johor waterfront residential and commercial project takes a novel approach to property development.
Ms Tan Yang Po runs investment seminars on finding hot property deals - and often invites her students to invest in projects that she is involved with.
The latest instance came this week when Ms Tan, 48, made a big splash with the news that she is pumping about RM150 million into the 1.68ha Azea Properties at Danga Bay, a major site in the Iskandar Malaysia development corridor.
She said buyers of the high-end development, which will feature 700 high-rise service apartments and retail space, will include those attending her seminars.
The project, brokered by local real estate agency GPS Alliance, will be jointly developed with Malaysian investors.
Ms Tan owns a two-year-old property investing education outfit on the seventh floor of Clifford Centre known as Azea Personal Coaching. It has more than 1,000 members, including housewives and professionals, who pay as much as $1,600 a year to get exposure to hot property deals that are sourced by Azea's contacts worldwide.
Founder Ms Tan said she guides her members by setting goals and targets for them. She also advises them of the merits of distress investing, that is, buying properties way below market value, and doing property deals with no downpayment - possible in some foreign markets.
'The only way you can retire comfortably is if you have passive income. A lot of people are stuck in the rut where they make quick money and then lose money fast,' said Ms Tan.
The mother-of-two, an economics and political science graduate from the National University of Singapore, used to head the Asia-Pacific regional office of Yves Saint Laurent Comestic, Skincare and Fragrance during the 1990s.
In 2002, she teamed up with local entrepreneur Richard Tan of Success Resources to build e-learning systems provider SkyQuestCom from scratch.
She left SkyQuestCom in 2008 to start her current business, which includes property arm Azea Property Development.
Ms Tan has not worked in the property line full time, but insists she is no novice at real estate investing.
She caught the property bug after her first foray in the early 1990s, when she bought a two-bedroom condominium in River Valley after securing a 90 per cent bank loan. 'Within three months, I flipped the property and made $60,000. That was my first experience and it taught me that property is good,' she said.
She now owns four properties in Singapore. She rents out three of them, and said she derives her main income from her property investments, rather than from her seminars.
She said that Azea seminar participants or members need not worry about finding individual properties, as her team will compile deals. Members can order them through its website.
'Typically, we don't take a commission out of the deal because we are co-investors. But in very rare instances, we do. Normally, it's just admin charges and investors know they are charged that amount,' she said.
Group investing is encouraged.
Typically, a company is formed to invest in overseas properties, and members who participate will become shareholders of the company. The amount of debt taken on by these companies depends on the property deal.
Some can be as high as 40 per cent equity, while some can be as low as no capital outlay, she explained.
No member has pulled out of a group investment, but if they need to, 'they sell their share and exit'.
Azea members recently acquired £3 million (S$6.2 million) worth of 12 Victorian-styled apartment units in London and another 200 units of landed properties valued at more than US$7 million (S$9.1 million) in Houston - all of which were on offer below their market values.
Ms Tan has her fair share of supporters and critics.
A real estate agent who attended her seminars said many of her strategies are not relevant to the Singapore market. But another agent said that she is informed and has 'trained a lot of property agents here'.
Ms Tan believes her margin of safety is adequate. 'There are people who say there's going to be a double dip (recession), but if you are buying a (Houston landed) property at US$15,000 (a unit), how far can it go below that?'
'It's just next to impossible. The chances of the upside are so much more than the downside.'
gabrielc@sph.com.sg
Azea Property Investment founder Tan Yang Po is pumping about RM150 million (S$62.6 million) into the 1.68ha Azea Properties project at Danga Bay, Johor. -- ST PHOTO: AZIZ HUSSIN
ST : Plot thickens in Profitable Plots case
DEC 10,2010
Plot thickens in Profitable Plots case
More complaints made against investment firm than previously stated
By Francis Chan
POLICE have received significantly more complaints about scandal-hit Profitable Plots than indicated earlier, according to the latest updates on an ongoing probe into the investment firm.
A report by the Commercial Affairs Department (CAD), submitted as part of proceedings at the Subordinate Courts yesterday, stated that 174 complaints relating to $18.5 million worth of investments have been made against the firm.
This is well above the 106 cases involving $9.5 million in investments, indicated by the CAD last month.
The firm came to the attention of the white-collar police after its clients complained that the firm was dragging its feet over paying out investment returns due to them upon maturity.
The clients, mainly retail investors, had bought into land and lubricant investments, among other things, since the firm was set up here in 2004.
The CAD said in its latest report that investigations into the different investments sold by the firm are still ongoing.
However, the CAD has found that the 'principal investments and/or returns owing to the complainants upon maturity... had significantly exceeded the amount seized from the bank accounts'.
This was despite Profitable Plots recording a consolidated group revenue of $35.4 million last year and $32.8 million in 2008, added the CAD.
An Oct 12 investigation report by the CAD, submitted during court proceedings last month, revealed that Profitable Plots' liabilities and obligations to clients far exceeded its assets, giving the police grounds to suspect that the company's investment schemes were 'introduced to defraud its clients'.
But the court yesterday rejected an application by the Attorney-General's Chambers (AGC) to freeze the investment firm's accounts for another six months, pending the investigations of the CAD.
It gave the CAD another three months instead, after which a review will be conducted on March 9 next year, said lawyer Wendell Wong of Drew & Napier, who is representing Profitable Plots.
The latest ruling follows an earlier decision by High Court Judge Lee Seiu Kin, who on Dec 1 gave the green light for the firm to withdraw funds from those bank accounts to pay former employees.
At the time, Justice Lee noted that it was approaching the end of the year and that former staff would have been owed their salaries and Central Provident Fund monies since August.
In its early days, Profitable Plots was known for its TV commercials featuring former professional footballers urging viewers to 'Buy UK land'.
But it made headlines earlier this year when a dozen angry clients stormed its offices demanding their investment payouts, which they said were either delayed or not paid.
Numerous police reports lodged against the firm led to a raid by the CAD on the firm's Stanley Street headquarters on Aug 11.
The following day, the CAD froze the firm's three bank accounts with Citibank that held a total of $277,590.
Yesterday, the police reported that the balance held by Profitable Plots was $55,548.42, after deducting the amount ordered by the court to be released to the firm to pay its staff. The CAD also confirmed that money invested by the clients was deposited into the firm's bank accounts.
Mr Wong told The Straits Times yesterday that the firm has applied to the CAD and is now waiting for the green light to pay its staff the salaries and CPF contributions owed to them.
To date, no charges have been filed against Profitable Plots and director Tim Goldring had reportedly refuted the CAD findings.
The CAD was ordered by the court yesterday to give an update on the status of its probe against the firm during a hearing on March 9.
franchan@sph.com.sg
--------------------------------------------------------------------------------
About the case
PROFITABLE Plots started out in Singapore as a strategic land investment firm by a group of British expatriates in 2004.
It was investigated by the Commercial Affairs Department (CAD) after several investors complained that the company owed them money.
The white-collar crime police raided the firm's Stanley Street offices in August, seizing documents and taking directors in for questioning, according to earlier reports.
The CAD also froze the company's three bank accounts, but the High Court has since ordered some of the money to be released.
Profitable Plots is part of global investment entity Profitable Group, which has offices in Malaysia, Canada and Brunei, among other countries.
The firm was placed on the Monetary Authority of Singapore's Investor Alert List last year.
A group of unhappy investors waiting outside the firm's offices in Stanley Street months ago, wanting to find out why their investments, which they claimed had been promised a certain return after six months, had not been honoured. --NEW PAPER FILE PHOTO
Plot thickens in Profitable Plots case
More complaints made against investment firm than previously stated
By Francis Chan
POLICE have received significantly more complaints about scandal-hit Profitable Plots than indicated earlier, according to the latest updates on an ongoing probe into the investment firm.
A report by the Commercial Affairs Department (CAD), submitted as part of proceedings at the Subordinate Courts yesterday, stated that 174 complaints relating to $18.5 million worth of investments have been made against the firm.
This is well above the 106 cases involving $9.5 million in investments, indicated by the CAD last month.
The firm came to the attention of the white-collar police after its clients complained that the firm was dragging its feet over paying out investment returns due to them upon maturity.
The clients, mainly retail investors, had bought into land and lubricant investments, among other things, since the firm was set up here in 2004.
The CAD said in its latest report that investigations into the different investments sold by the firm are still ongoing.
However, the CAD has found that the 'principal investments and/or returns owing to the complainants upon maturity... had significantly exceeded the amount seized from the bank accounts'.
This was despite Profitable Plots recording a consolidated group revenue of $35.4 million last year and $32.8 million in 2008, added the CAD.
An Oct 12 investigation report by the CAD, submitted during court proceedings last month, revealed that Profitable Plots' liabilities and obligations to clients far exceeded its assets, giving the police grounds to suspect that the company's investment schemes were 'introduced to defraud its clients'.
But the court yesterday rejected an application by the Attorney-General's Chambers (AGC) to freeze the investment firm's accounts for another six months, pending the investigations of the CAD.
It gave the CAD another three months instead, after which a review will be conducted on March 9 next year, said lawyer Wendell Wong of Drew & Napier, who is representing Profitable Plots.
The latest ruling follows an earlier decision by High Court Judge Lee Seiu Kin, who on Dec 1 gave the green light for the firm to withdraw funds from those bank accounts to pay former employees.
At the time, Justice Lee noted that it was approaching the end of the year and that former staff would have been owed their salaries and Central Provident Fund monies since August.
In its early days, Profitable Plots was known for its TV commercials featuring former professional footballers urging viewers to 'Buy UK land'.
But it made headlines earlier this year when a dozen angry clients stormed its offices demanding their investment payouts, which they said were either delayed or not paid.
Numerous police reports lodged against the firm led to a raid by the CAD on the firm's Stanley Street headquarters on Aug 11.
The following day, the CAD froze the firm's three bank accounts with Citibank that held a total of $277,590.
Yesterday, the police reported that the balance held by Profitable Plots was $55,548.42, after deducting the amount ordered by the court to be released to the firm to pay its staff. The CAD also confirmed that money invested by the clients was deposited into the firm's bank accounts.
Mr Wong told The Straits Times yesterday that the firm has applied to the CAD and is now waiting for the green light to pay its staff the salaries and CPF contributions owed to them.
To date, no charges have been filed against Profitable Plots and director Tim Goldring had reportedly refuted the CAD findings.
The CAD was ordered by the court yesterday to give an update on the status of its probe against the firm during a hearing on March 9.
franchan@sph.com.sg
--------------------------------------------------------------------------------
About the case
PROFITABLE Plots started out in Singapore as a strategic land investment firm by a group of British expatriates in 2004.
It was investigated by the Commercial Affairs Department (CAD) after several investors complained that the company owed them money.
The white-collar crime police raided the firm's Stanley Street offices in August, seizing documents and taking directors in for questioning, according to earlier reports.
The CAD also froze the company's three bank accounts, but the High Court has since ordered some of the money to be released.
Profitable Plots is part of global investment entity Profitable Group, which has offices in Malaysia, Canada and Brunei, among other countries.
The firm was placed on the Monetary Authority of Singapore's Investor Alert List last year.
A group of unhappy investors waiting outside the firm's offices in Stanley Street months ago, wanting to find out why their investments, which they claimed had been promised a certain return after six months, had not been honoured. --NEW PAPER FILE PHOTO
ST : Will Mah lose votes over rising flat prices?
Dec 10,2010
Will Mah lose votes over rising flat prices?
As National Development Minister, the leader of the Tampines GRC PAP team is seen as a lightning rod for voter dissatisfaction with rising public housing prices. How will Mr Mah Bow Tan face the flak? Or does his service of 22 years as MP make him politically invincible? Cai Haoxiang and Li Xueying report
FIFTEEN years ago, air cargo industry worker Syed Mahmood, 48, and his wife bought their four-room HDB flat in Tampines for $110,000. Today, it is worth $400,000.
But the couple are worried that their three children - aged 23, 22 and 17 - will not be able to buy flats of their own when they get married.
'Property prices just keep increasing,' Mr Mahmood laments. 'We will have to step in to support them. We will sell our flat and downgrade to a three-room flat.'
Despite his anxiety over rising property prices, Mr Mahmood remains unwavering in his support for the ruling People's Action Party.
'It is a good Government and, to be fair, they have given us a lot of medical and education subsidies,' he says.
Sentiments like Mr Mahmood's abound in the five-ward Tampines GRC, going by a straw poll of 30 voters.
Their pride in living in an award-winning township is evident. Tampines New Town won the United Nations World Habitat Award in 1992.
Now it boasts even more amenities, including various parks and three malls near the Tampines MRT station: Tampines Mall, Century Square and Tampines 1, which opened in April last year.
Tampines is called a 'maturing town' where many residents bought their flats about 20 years ago and are now in their 50s and 60s with teenage children, like Mr Mahmood.
What is notable about Tampines GRC is that it is not only much coveted by Singaporeans as a self-sufficient residential town, but also by the opposition as a hot battleground. It was contested by the National Solidarity Party (NSP) in four elections - in 1988, 1991, 2001 and 2006.
For the next polls, the NSP is once again raring to go. It intends to capitalise on ground disaffection with rising flat prices to hit out at public housing policies and in particular the GRC's anchor minister, National Development Minister Mah Bow Tan.
The NSP plans to field its 'A' team comprising its 'top five', its secretary-general Goh Meng Seng tells Insight. He will lead the team but declines to reveal the line-up.
His message to Tampines' middle-class voters: Flat prices are becoming unaffordable. The PAP's asset-enhancement concept is a 'myth'.
'People cannot sell the flats anyway as the capital gains are only on paper,' he says, noting that earlier generations only needed 15 years to pay off their loans.
'Now, if you get married at age 30 and pay off your flat at age 60, how much CPF will you have for retirement? If the PAP's policies continue, future generations might take 40 or 50 years to pay off their loans,' he says.
The NSP is zeroing in on the housing issue as it has been a red-hot topic these past two years. Such was the outcry that in a dialogue in January, Minister Mentor Lee Kuan Yew said that if Mr Mah could not defend the HDB's asset-enhancement policy, he 'deserves to lose'.
Angst over price hikes
THE HDB resale market has seen nine straight quarters of record prices on the back of a vigorous economic recovery that began in the second half of last year.
Last month, flats were still being sold in mature estates at jaw-dropping prices. The median resale prices for five-room flats were $565,000 in Bishan and $725,000 for Queenstown.
Some Singaporeans, especially upgraders and young couples, are upset that their desired property is out of reach.
Tampines resident Chia Tuck Seng, 50, who lives in a three-room flat with his wife and two children aged 12 and 15, wants to upgrade to a four-room flat.
'But over the last two or three years, the prices are just too high. Yes, we can get a lot for this flat, but we will have to pay a lot for the new flat too,' he says.
Student Sarah Ismail, 24, and her boyfriend Farhan Halid, 26, a senior sales associate, want their own flat but failed twice to be picked for the HDB's Build-To-Order scheme.
'It's quite disheartening,' she says. 'We want to get married and want our own flat. At the same time, we can't afford resale flats because the COVs are too high.' COV, or cash over valuation, is the cash premium that buyers pay.
Human resources manager Jessling Koh, 42, who is single, says that while she is content living in Tampines, it will be difficult if she moves out of her parents' home and buys her own flat.
'I need to take 20 to 30 years to pay for the flat and work for the rest of my life, and I don't want that,' she says.
But surprisingly, 28 of the 30 voters Insight interviewed say that while they might be uneasy about rising flat prices and burdened by the higher cost of living, they do not blame Mr Mah as they believe that the PAP has mostly done right for the country.
As hairdresser Nancy Chung, 50, puts it: 'High prices are not Mr Mah's fault. The demand for flats is high. There must be a reason for the PAP's policies that resulted in high flat prices.'
Machine repairman Ye Chye Huatt, 49, says philosophically: 'Flat prices are like fish prices. They rise and fall.'
To cool the property market, the Government has been launching new flats and releasing more land for residential use. New measures include restricting home buyers from owning both a private home and an HDB flat within the minimum occupancy period.
The man in the hot seat is making sure his voice is heard in various media. Mr Mah has written commentaries in Today newspaper on affordable housing and housing for the poor, noting that he has received positive feedback.
'I just keep on explaining,' he tells Insight. 'I explain that prices are affordable, you can afford it, and you'll have a nice house to stay in. That house will increase in value over time and that value will be used to fund your retirement.'
Last month, he noted that the price stabilisation measures were working, with median COV payments falling from $30,000 in the third quarter to $25,000 in October. Earlier this week, he said that COVs had fallen to $22,000 last month.
'What is more important to me is to give the sense that prices are stabilising,' he says. 'If people see that prices are running away, they get very anxious, they want to rush in and compete. But if prices are stabilising and in fact start coming down, people start to be calmer.'
Municipal grouses
WHEN it comes to municipal issues, cleanliness continues to be the top concern among constituents.
In October, Tampines North residents were up in arms over rubbish chutes that stank with overflowing rubbish, and void decks strewn with litter for days.
A new contractor had problems getting foreign workers, and the town council was slow in reporting problems. An emergency task force was set up and a new contractor hired. MPs stress that residents have a part to play in keeping the estate clean.
At Block 208, Tampines Street 21, a resident who wishes to be known only as Mr Kuek rants about how rubbish does not get cleared from the grassy area.
Says the 46-year-old repairman: 'It's an embarrassment. If foreigners walk by and look at this, they will ask, why is it that Singapore's Government is so rich but this place is so dirty?'
Lift upgrading used to be an issue but not any more, say residents. This is because lifts have been upgraded to stop at every floor or will be upgraded soon. All eligible blocks in Tampines GRC will have their lifts upgraded by 2013.
Another municipal issue is the lack of parking space for residents. 'Some even have three cars per family,' notes Mr Mah, who is looking at broadening parking zones.
The most common problems brought up at Meet-the-People sessions relate to financial assistance and housing - loan repayments, people wanting rental housing, and young couples asking for faster allocation of flats.
Problems peculiar to Malay residents, say Tampines North MP Ong Kian Min, are big families and overcrowded flats.
To mitigate social problems, MPs run various welfare programmes. For example, Mr Sin Boon Ann runs a wish-fulfilment programme for children in Tampines Central, while Ms Irene Ng has an elderly-befriending and support project in Tampines Changkat.
The influx of foreigners working at nearby Changi Airport and the banks in Tampines Central has created some resentment and friction with the locals.
Ms Stephanie Low, 24, a market researcher, voices a common complaint about overcrowding by foreigners. 'The Government encourages us to take public transport but when you take the train, it is too crowded,' she says.
Housewife Noor Aishah, 42, is concerned about 'jobs that go to foreigners', while bank vice-president Francis Lee, 40, feels that not enough is being done to groom and retain local talent.
'As I grow older, it erodes my chances of employment. The foreigners cause social problems, force property prices up... this affects my vote against the PAP,' he says.
How will they vote?
OUT of the 30 residents interviewed, about half say they are PAP supporters and most of the rest are undecided, with a few die-hard opposition supporters.
Says Madam Chung: 'I will vote for PAP. It has managed the country well, but it should think of those who cannot afford to buy flats.'
The fence-sitters say that if they support the opposition, it will not be because flat prices are high. Rather, it will be because they have found high-quality opposition candidates whom they can relate to.
Expressing such a sentiment, lorry driver Ong Chuan Eng, 56, who has lived in a four-room flat for 10 years, says: 'Now I am 50-50 in deciding whom to support. I will support the opposition party which can change Singapore for the better.
'There must be competition. If one party can do whatever it wants, then we don't need to have Parliament.'
Although Mr Mah, who has been the National Development Minister since 1999, is ready for any political challenge anywhere, he hopes to remain as MP for Tampines East ward.
As MP for five terms, Mr Mah has pioneered innovations such as the 'three-in-one' family centre. This houses a child-care centre, a day centre for the elderly, and a before-and-after-school care centre.
He recalls abortive attempts in the 1990s to launch a neighbourhood TV station and a website for the town. These ideas were 'ahead of their time', he notes.
Tampines has the distinction of being Singapore's first cycling town with broad pedestrian paths. The push came from Ms Ng, who wanted cyclists to ride on pavements instead of busy roads.
Reflecting on his emotional attachment to his ward, which he has looked after for 22 years, Mr Mah says of his constituents: 'I've seen their kids grow up, have children, I've seen them growing old in this place. I've grown old with them actually.
'So I hope that when the Prime Minister decides who to go where, he will decide to keep me here.'
haoxiang@sph.com.sg
xueying@sph.com.sg
------------------------------------------------------------------------------
'I get more flak than usual'
In an interview with Insight, National Development Minister Mah Bow Tan talked about the housing issue and the Singapore dream. Here are some excerpts.
People say they have to take 30 years to pay off their mortgage, and when they retire at 62, they have nothing left in their Central Provident Fund account. What is your response?
Would they be better off leaving their money in their CPF and paying rent for 30 years, instead of putting it into their HDB flat? The HDB flat is a store of value, and the value goes up over time. We make it easy for people to convert that value into cash when they retire, through various schemes such as Lease Buyback, or downgrading to a smaller flat. This will partly fund their retirement, in addition to other income from their CPF such as CPF Life, plus other savings and investments.
Does it mean that if you have a five-room flat, you would need to downgrade to a four-room or three-room and use the money to fund your retirement?
I think it is quite a normal and rational thing to do. People who own private property downgrade to a smaller house or an HDB flat. People who buy HDB five-room flats downgrade to a four-room, three-room or even studio apartment. If we did not have the home ownership scheme, people would still have to stay somewhere, and they end up renting. At the end of 30 years, they have zero assets, are they better off?
It's a massive subsidy that we've put into housing that has created this home-owning population. Of course, the opposition will come around during elections and say why not increase the subsidy even further, why not make it cheaper. But who's going to pay for it?
They don't have the responsibility of creating the wealth to pay for it or making the decisions, the trade-offs, such as which part of the Budget to cut - defence, education, health care. We shall see whether that line will sell in the elections.
Isn't it politically risky to tell people to downgrade if they have no retirement savings?
The fact is that most people don't need to downgrade. HDB surveys show this. The house is just one of the assets that people have. They have CPF savings, other savings, some continue to work, others get support from their family. Of course, the political agitation and the pressure is there, to make it more affordable. So we'll have to explain why it's already affordable, why we're already spending so much on housing, about a billion dollars a year, and why we think that that's about the right level, what the country can afford.
Have voter aspirations changed over time?
No. They haven't changed. People want to have a good life, good jobs, good homes, stability and security. The heartlander in the HDB flat wants to provide good meals for his family, good education for his children, so he needs good jobs. He also wants to relax, to walk around, talk to his friends, take part in some community functions, sing karaoke, go for tours. He just wants a simple life. He has a sense of who he can trust to deliver this good life.
Will the Singapore dream of owning a property be out of reach for future generations?
No, it should not be. He should still be able to own a property. But the type of property may have to change. If you are a young person in Hong Kong today, 27, 28 years old, three to five years after university, what can you afford to buy? Hardly anything. What can a Singaporean afford? A nice home in Punggol, Bukit Panjang, in Tampines, and if you're lucky you can even get one in Dawson or Pinnacle. That's the difference.
We have to work with the cards that we have been dealt. Singapore is a small country with limited land, no resources. To earn a living we have got to be cleverer and work harder than other people.
The Singapore dream is owning a property, but it's also about a better life for us and our children, and a society which gives you fulfilment, where you can actually make a difference. We can achieve this Singapore Dream.
Is your job stressful?
I think I do get more flak than usual. I get more than my fair share of people attacking me, especially on the Internet. But I've been in this situation before, when I was dealing with transport. That was another hot seat.
I have been dealing with housing for slightly more than 10 years now, and for eight of those years it was not an issue. I believe that our housing policy is the right policy and what we are doing is good not just for people today but for people down the road, future generations.
There's no easy way out, we have limited land. I think we've done pretty well as a country and as a people.
Will Mah lose votes over rising flat prices?
As National Development Minister, the leader of the Tampines GRC PAP team is seen as a lightning rod for voter dissatisfaction with rising public housing prices. How will Mr Mah Bow Tan face the flak? Or does his service of 22 years as MP make him politically invincible? Cai Haoxiang and Li Xueying report
FIFTEEN years ago, air cargo industry worker Syed Mahmood, 48, and his wife bought their four-room HDB flat in Tampines for $110,000. Today, it is worth $400,000.
But the couple are worried that their three children - aged 23, 22 and 17 - will not be able to buy flats of their own when they get married.
'Property prices just keep increasing,' Mr Mahmood laments. 'We will have to step in to support them. We will sell our flat and downgrade to a three-room flat.'
Despite his anxiety over rising property prices, Mr Mahmood remains unwavering in his support for the ruling People's Action Party.
'It is a good Government and, to be fair, they have given us a lot of medical and education subsidies,' he says.
Sentiments like Mr Mahmood's abound in the five-ward Tampines GRC, going by a straw poll of 30 voters.
Their pride in living in an award-winning township is evident. Tampines New Town won the United Nations World Habitat Award in 1992.
Now it boasts even more amenities, including various parks and three malls near the Tampines MRT station: Tampines Mall, Century Square and Tampines 1, which opened in April last year.
Tampines is called a 'maturing town' where many residents bought their flats about 20 years ago and are now in their 50s and 60s with teenage children, like Mr Mahmood.
What is notable about Tampines GRC is that it is not only much coveted by Singaporeans as a self-sufficient residential town, but also by the opposition as a hot battleground. It was contested by the National Solidarity Party (NSP) in four elections - in 1988, 1991, 2001 and 2006.
For the next polls, the NSP is once again raring to go. It intends to capitalise on ground disaffection with rising flat prices to hit out at public housing policies and in particular the GRC's anchor minister, National Development Minister Mah Bow Tan.
The NSP plans to field its 'A' team comprising its 'top five', its secretary-general Goh Meng Seng tells Insight. He will lead the team but declines to reveal the line-up.
His message to Tampines' middle-class voters: Flat prices are becoming unaffordable. The PAP's asset-enhancement concept is a 'myth'.
'People cannot sell the flats anyway as the capital gains are only on paper,' he says, noting that earlier generations only needed 15 years to pay off their loans.
'Now, if you get married at age 30 and pay off your flat at age 60, how much CPF will you have for retirement? If the PAP's policies continue, future generations might take 40 or 50 years to pay off their loans,' he says.
The NSP is zeroing in on the housing issue as it has been a red-hot topic these past two years. Such was the outcry that in a dialogue in January, Minister Mentor Lee Kuan Yew said that if Mr Mah could not defend the HDB's asset-enhancement policy, he 'deserves to lose'.
Angst over price hikes
THE HDB resale market has seen nine straight quarters of record prices on the back of a vigorous economic recovery that began in the second half of last year.
Last month, flats were still being sold in mature estates at jaw-dropping prices. The median resale prices for five-room flats were $565,000 in Bishan and $725,000 for Queenstown.
Some Singaporeans, especially upgraders and young couples, are upset that their desired property is out of reach.
Tampines resident Chia Tuck Seng, 50, who lives in a three-room flat with his wife and two children aged 12 and 15, wants to upgrade to a four-room flat.
'But over the last two or three years, the prices are just too high. Yes, we can get a lot for this flat, but we will have to pay a lot for the new flat too,' he says.
Student Sarah Ismail, 24, and her boyfriend Farhan Halid, 26, a senior sales associate, want their own flat but failed twice to be picked for the HDB's Build-To-Order scheme.
'It's quite disheartening,' she says. 'We want to get married and want our own flat. At the same time, we can't afford resale flats because the COVs are too high.' COV, or cash over valuation, is the cash premium that buyers pay.
Human resources manager Jessling Koh, 42, who is single, says that while she is content living in Tampines, it will be difficult if she moves out of her parents' home and buys her own flat.
'I need to take 20 to 30 years to pay for the flat and work for the rest of my life, and I don't want that,' she says.
But surprisingly, 28 of the 30 voters Insight interviewed say that while they might be uneasy about rising flat prices and burdened by the higher cost of living, they do not blame Mr Mah as they believe that the PAP has mostly done right for the country.
As hairdresser Nancy Chung, 50, puts it: 'High prices are not Mr Mah's fault. The demand for flats is high. There must be a reason for the PAP's policies that resulted in high flat prices.'
Machine repairman Ye Chye Huatt, 49, says philosophically: 'Flat prices are like fish prices. They rise and fall.'
To cool the property market, the Government has been launching new flats and releasing more land for residential use. New measures include restricting home buyers from owning both a private home and an HDB flat within the minimum occupancy period.
The man in the hot seat is making sure his voice is heard in various media. Mr Mah has written commentaries in Today newspaper on affordable housing and housing for the poor, noting that he has received positive feedback.
'I just keep on explaining,' he tells Insight. 'I explain that prices are affordable, you can afford it, and you'll have a nice house to stay in. That house will increase in value over time and that value will be used to fund your retirement.'
Last month, he noted that the price stabilisation measures were working, with median COV payments falling from $30,000 in the third quarter to $25,000 in October. Earlier this week, he said that COVs had fallen to $22,000 last month.
'What is more important to me is to give the sense that prices are stabilising,' he says. 'If people see that prices are running away, they get very anxious, they want to rush in and compete. But if prices are stabilising and in fact start coming down, people start to be calmer.'
Municipal grouses
WHEN it comes to municipal issues, cleanliness continues to be the top concern among constituents.
In October, Tampines North residents were up in arms over rubbish chutes that stank with overflowing rubbish, and void decks strewn with litter for days.
A new contractor had problems getting foreign workers, and the town council was slow in reporting problems. An emergency task force was set up and a new contractor hired. MPs stress that residents have a part to play in keeping the estate clean.
At Block 208, Tampines Street 21, a resident who wishes to be known only as Mr Kuek rants about how rubbish does not get cleared from the grassy area.
Says the 46-year-old repairman: 'It's an embarrassment. If foreigners walk by and look at this, they will ask, why is it that Singapore's Government is so rich but this place is so dirty?'
Lift upgrading used to be an issue but not any more, say residents. This is because lifts have been upgraded to stop at every floor or will be upgraded soon. All eligible blocks in Tampines GRC will have their lifts upgraded by 2013.
Another municipal issue is the lack of parking space for residents. 'Some even have three cars per family,' notes Mr Mah, who is looking at broadening parking zones.
The most common problems brought up at Meet-the-People sessions relate to financial assistance and housing - loan repayments, people wanting rental housing, and young couples asking for faster allocation of flats.
Problems peculiar to Malay residents, say Tampines North MP Ong Kian Min, are big families and overcrowded flats.
To mitigate social problems, MPs run various welfare programmes. For example, Mr Sin Boon Ann runs a wish-fulfilment programme for children in Tampines Central, while Ms Irene Ng has an elderly-befriending and support project in Tampines Changkat.
The influx of foreigners working at nearby Changi Airport and the banks in Tampines Central has created some resentment and friction with the locals.
Ms Stephanie Low, 24, a market researcher, voices a common complaint about overcrowding by foreigners. 'The Government encourages us to take public transport but when you take the train, it is too crowded,' she says.
Housewife Noor Aishah, 42, is concerned about 'jobs that go to foreigners', while bank vice-president Francis Lee, 40, feels that not enough is being done to groom and retain local talent.
'As I grow older, it erodes my chances of employment. The foreigners cause social problems, force property prices up... this affects my vote against the PAP,' he says.
How will they vote?
OUT of the 30 residents interviewed, about half say they are PAP supporters and most of the rest are undecided, with a few die-hard opposition supporters.
Says Madam Chung: 'I will vote for PAP. It has managed the country well, but it should think of those who cannot afford to buy flats.'
The fence-sitters say that if they support the opposition, it will not be because flat prices are high. Rather, it will be because they have found high-quality opposition candidates whom they can relate to.
Expressing such a sentiment, lorry driver Ong Chuan Eng, 56, who has lived in a four-room flat for 10 years, says: 'Now I am 50-50 in deciding whom to support. I will support the opposition party which can change Singapore for the better.
'There must be competition. If one party can do whatever it wants, then we don't need to have Parliament.'
Although Mr Mah, who has been the National Development Minister since 1999, is ready for any political challenge anywhere, he hopes to remain as MP for Tampines East ward.
As MP for five terms, Mr Mah has pioneered innovations such as the 'three-in-one' family centre. This houses a child-care centre, a day centre for the elderly, and a before-and-after-school care centre.
He recalls abortive attempts in the 1990s to launch a neighbourhood TV station and a website for the town. These ideas were 'ahead of their time', he notes.
Tampines has the distinction of being Singapore's first cycling town with broad pedestrian paths. The push came from Ms Ng, who wanted cyclists to ride on pavements instead of busy roads.
Reflecting on his emotional attachment to his ward, which he has looked after for 22 years, Mr Mah says of his constituents: 'I've seen their kids grow up, have children, I've seen them growing old in this place. I've grown old with them actually.
'So I hope that when the Prime Minister decides who to go where, he will decide to keep me here.'
haoxiang@sph.com.sg
xueying@sph.com.sg
------------------------------------------------------------------------------
'I get more flak than usual'
In an interview with Insight, National Development Minister Mah Bow Tan talked about the housing issue and the Singapore dream. Here are some excerpts.
People say they have to take 30 years to pay off their mortgage, and when they retire at 62, they have nothing left in their Central Provident Fund account. What is your response?
Would they be better off leaving their money in their CPF and paying rent for 30 years, instead of putting it into their HDB flat? The HDB flat is a store of value, and the value goes up over time. We make it easy for people to convert that value into cash when they retire, through various schemes such as Lease Buyback, or downgrading to a smaller flat. This will partly fund their retirement, in addition to other income from their CPF such as CPF Life, plus other savings and investments.
Does it mean that if you have a five-room flat, you would need to downgrade to a four-room or three-room and use the money to fund your retirement?
I think it is quite a normal and rational thing to do. People who own private property downgrade to a smaller house or an HDB flat. People who buy HDB five-room flats downgrade to a four-room, three-room or even studio apartment. If we did not have the home ownership scheme, people would still have to stay somewhere, and they end up renting. At the end of 30 years, they have zero assets, are they better off?
It's a massive subsidy that we've put into housing that has created this home-owning population. Of course, the opposition will come around during elections and say why not increase the subsidy even further, why not make it cheaper. But who's going to pay for it?
They don't have the responsibility of creating the wealth to pay for it or making the decisions, the trade-offs, such as which part of the Budget to cut - defence, education, health care. We shall see whether that line will sell in the elections.
Isn't it politically risky to tell people to downgrade if they have no retirement savings?
The fact is that most people don't need to downgrade. HDB surveys show this. The house is just one of the assets that people have. They have CPF savings, other savings, some continue to work, others get support from their family. Of course, the political agitation and the pressure is there, to make it more affordable. So we'll have to explain why it's already affordable, why we're already spending so much on housing, about a billion dollars a year, and why we think that that's about the right level, what the country can afford.
Have voter aspirations changed over time?
No. They haven't changed. People want to have a good life, good jobs, good homes, stability and security. The heartlander in the HDB flat wants to provide good meals for his family, good education for his children, so he needs good jobs. He also wants to relax, to walk around, talk to his friends, take part in some community functions, sing karaoke, go for tours. He just wants a simple life. He has a sense of who he can trust to deliver this good life.
Will the Singapore dream of owning a property be out of reach for future generations?
No, it should not be. He should still be able to own a property. But the type of property may have to change. If you are a young person in Hong Kong today, 27, 28 years old, three to five years after university, what can you afford to buy? Hardly anything. What can a Singaporean afford? A nice home in Punggol, Bukit Panjang, in Tampines, and if you're lucky you can even get one in Dawson or Pinnacle. That's the difference.
We have to work with the cards that we have been dealt. Singapore is a small country with limited land, no resources. To earn a living we have got to be cleverer and work harder than other people.
The Singapore dream is owning a property, but it's also about a better life for us and our children, and a society which gives you fulfilment, where you can actually make a difference. We can achieve this Singapore Dream.
Is your job stressful?
I think I do get more flak than usual. I get more than my fair share of people attacking me, especially on the Internet. But I've been in this situation before, when I was dealing with transport. That was another hot seat.
I have been dealing with housing for slightly more than 10 years now, and for eight of those years it was not an issue. I believe that our housing policy is the right policy and what we are doing is good not just for people today but for people down the road, future generations.
There's no easy way out, we have limited land. I think we've done pretty well as a country and as a people.
BT : Good Class Bungalow deals hit record $1.85b
Good Class Bungalow deals hit record $1.85b
At least another $100m of GCB deals could be finalised by year-end
THE value of Good Class Bungalow (GCB) transactions so far this year has reached nearly $1.85 billion, a new record and up 7.3 per cent from the $1.72 billion worth of deals done for the whole of 2009, based on CB Richard Ellis's analysis of URA Realis caveats information as at Dec 8.
However, based on information gathered by BT, there could be at least another $100 million of GCB deals where options have yet to be exercised and which could be finalised by year's end.
Among the deals already closed but for which caveats have yet to be lodged is said to be the Japanese government's sale of 18 Astrid Hill for about $28.4 million or about $1,500 per square foot on the land area of 18,939 sq ft.
BT understands the buyer is Hersing Corporation chairman Harry Chua, who is expected to tear down and redevelop the freehold property. The current two-storey bungalow on the site was the former home of the Japanese ambassador in Singapore. The property was sold through a tender conducted by Knight Frank on behalf of the Japanese government.
Interestingly, a neighbouring property in Astrid Hill was sold in November for $25 million or $1,169 psf based on the land area of 21,377 sq ft. Its seller reaped a handsome profit of $6.4 million or about 34 per cent from a holding period of under a year; the property was previously transacted in February this year for $18.6 million.
Another recent profitable GCB transaction was a property at Cluny Hill, which sold last month for $30 million or $1,533 psf, a 63 per cent return measured against the seller's purchase price of $18.38 million in April last year.
A profitable exit was also achieved on a bungalow at Belmont Road that traded in October at $35.76 million or $1,220 psf on land area of 29,310 sq ft; it previously changed hands in October last year for $27.35 million. The latest buyer is said to be Jardine Cycle & Carriage.
The $1.85 billion of GCB deals YTD 2010 involved 101 transactions - slightly shy of the 109 deals in 2009 and 119 deals in 2006. The average price of GCBs sold has doubled from $501 psf on land area in 2006 to $1,056 psf for YTD 2010. The latest figure is also 27.1 per cent higher than the $831 psf average price for last year.
As well, the average GCB transaction size has also grown from $10.3 million in 2006 to $18.3 million so far this year. The latest figure is up 15.8 per cent from last year.
CB Richard Ellis's director, luxury homes, Douglas Wong credits the increase in GCB prices to Singapore's economic growth, its ability to attract ultra high net worth permanent residents and citizens in recent years, the opening of the integrated resorts, and the limited stock of GCBs, numbering about 2,400.
'GCBs have also appealed to ultra high networths seeking a hedge against inflation, especially given Singapore's political stability,' he added.
CBRE forecasts about 100 GCB deals next year at about $2 billion with average price appreciation of about 8-10 per cent.
'The GCB market is set to remain firm based on the interplay of demand and supply factors. Like an evergreen product, GCBs will continue to attract well-heeled local businessmen, bankers, doctors and lawyers as well as permanent residents,' he added.
RealStar Premier Property managing director William Wong too is optimistic about the GCB market next year. 'We'll be seeing more PRs turning to Singapore citizens next year and this will allow them to buy bigger-plot GCBs or more than one GCB. I believe there will be shortage of big-plot GCBs to meet the demand of some of these ultra-rich new citizens. Prices of GCBs in prime locations such as Tanglin will likely hit above $2,000 psf next year from about $1,800 psf currently,' he said.
Typically, one has to be a Singapore citizen before one can own a GCB. However, PRs who have made sufficient economic contribution are known to have been given permission by the Land Dealings (Approval) Unit on a case-by-case basis to buy a small GCB with land area up to 15,000 sq ft for owner occupation.
Some foreign companies, depending on their economic footprint here, have also been given LDAU's nod to buy a GCB, typically for use as their chief executive's residence.
Typically the minimum land area of a GCB is 15,069 sq ft. However, when GCB Areas were gazetted in 1980, there were some existing sites smaller than that in these locations. They are still considered GCBs and bound by the other planning rules.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
18 Astrid Hill: Said to have been sold by the Japanese govt for $28.4 million or about $1,500 per square foot. A larger neighbouring plot was transacted last month for $25 million or $1,169 psf
At least another $100m of GCB deals could be finalised by year-end
THE value of Good Class Bungalow (GCB) transactions so far this year has reached nearly $1.85 billion, a new record and up 7.3 per cent from the $1.72 billion worth of deals done for the whole of 2009, based on CB Richard Ellis's analysis of URA Realis caveats information as at Dec 8.
However, based on information gathered by BT, there could be at least another $100 million of GCB deals where options have yet to be exercised and which could be finalised by year's end.
Among the deals already closed but for which caveats have yet to be lodged is said to be the Japanese government's sale of 18 Astrid Hill for about $28.4 million or about $1,500 per square foot on the land area of 18,939 sq ft.
BT understands the buyer is Hersing Corporation chairman Harry Chua, who is expected to tear down and redevelop the freehold property. The current two-storey bungalow on the site was the former home of the Japanese ambassador in Singapore. The property was sold through a tender conducted by Knight Frank on behalf of the Japanese government.
Interestingly, a neighbouring property in Astrid Hill was sold in November for $25 million or $1,169 psf based on the land area of 21,377 sq ft. Its seller reaped a handsome profit of $6.4 million or about 34 per cent from a holding period of under a year; the property was previously transacted in February this year for $18.6 million.
Another recent profitable GCB transaction was a property at Cluny Hill, which sold last month for $30 million or $1,533 psf, a 63 per cent return measured against the seller's purchase price of $18.38 million in April last year.
A profitable exit was also achieved on a bungalow at Belmont Road that traded in October at $35.76 million or $1,220 psf on land area of 29,310 sq ft; it previously changed hands in October last year for $27.35 million. The latest buyer is said to be Jardine Cycle & Carriage.
The $1.85 billion of GCB deals YTD 2010 involved 101 transactions - slightly shy of the 109 deals in 2009 and 119 deals in 2006. The average price of GCBs sold has doubled from $501 psf on land area in 2006 to $1,056 psf for YTD 2010. The latest figure is also 27.1 per cent higher than the $831 psf average price for last year.
As well, the average GCB transaction size has also grown from $10.3 million in 2006 to $18.3 million so far this year. The latest figure is up 15.8 per cent from last year.
CB Richard Ellis's director, luxury homes, Douglas Wong credits the increase in GCB prices to Singapore's economic growth, its ability to attract ultra high net worth permanent residents and citizens in recent years, the opening of the integrated resorts, and the limited stock of GCBs, numbering about 2,400.
'GCBs have also appealed to ultra high networths seeking a hedge against inflation, especially given Singapore's political stability,' he added.
CBRE forecasts about 100 GCB deals next year at about $2 billion with average price appreciation of about 8-10 per cent.
'The GCB market is set to remain firm based on the interplay of demand and supply factors. Like an evergreen product, GCBs will continue to attract well-heeled local businessmen, bankers, doctors and lawyers as well as permanent residents,' he added.
RealStar Premier Property managing director William Wong too is optimistic about the GCB market next year. 'We'll be seeing more PRs turning to Singapore citizens next year and this will allow them to buy bigger-plot GCBs or more than one GCB. I believe there will be shortage of big-plot GCBs to meet the demand of some of these ultra-rich new citizens. Prices of GCBs in prime locations such as Tanglin will likely hit above $2,000 psf next year from about $1,800 psf currently,' he said.
Typically, one has to be a Singapore citizen before one can own a GCB. However, PRs who have made sufficient economic contribution are known to have been given permission by the Land Dealings (Approval) Unit on a case-by-case basis to buy a small GCB with land area up to 15,000 sq ft for owner occupation.
Some foreign companies, depending on their economic footprint here, have also been given LDAU's nod to buy a GCB, typically for use as their chief executive's residence.
Typically the minimum land area of a GCB is 15,069 sq ft. However, when GCB Areas were gazetted in 1980, there were some existing sites smaller than that in these locations. They are still considered GCBs and bound by the other planning rules.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
18 Astrid Hill: Said to have been sold by the Japanese govt for $28.4 million or about $1,500 per square foot. A larger neighbouring plot was transacted last month for $25 million or $1,169 psf
ST : Mediapolis is MediaCorp's new home
Dec 09,2010
Mediapolis is MediaCorp's new home
By boon chan
The kings and queens of Caldecott Hill will have to change their titles when broadcaster and media company MediaCorp moves from its current premises to Buona Vista.
It was announced yesterday that MediaCorp will be an anchor tenant at the 19ha Mediapolis, a cluster of buildings in Buona Vista which is devoted to media and gaming-related companies. The move will be in phases starting from end-2014 and is expected to be completed by mid-2015.
MediaCorp will occupy 1.5ha of land area - roughly the size of two football fields - with an estimated gross floor area of 79,500sqm.
While the design of the new complex has yet to be decided, it will be a high-rise building with the television studios and theatres located on the lower floors.
The company had said in 2006 that it was moving to a site in Bukit Batok but the plan was shelved due to high construction costs and the onset of the economic crisis.
Pending approval from the relevant authorities, the current plot at Caldecott Hill will be sold to finance the construction of the new complex at Mediapolis. In response to queries, MediaCorp said it was 'premature at this time to discuss the cost of the new facility'.
It is not known what will happen to the prime Caldecott Hill plot.
Media Development Authority (MDA) chief executive officer Aubeck Kam says: 'MediaCorp's relocation will allow the company to leverage on the advanced infrastructure of Mediapolis@one-north to deliver content in more exciting ways and beyond TV as we know it today.'
When completed in 2020, Mediapolis is envisioned to have movie studios, digital production and broadcast facilities, research labs, games and animation studios, offices and service apartments.
It was previously announced that production house Infinite Frameworks is investing $100 million to build a sound stage facility there.
According to MDA's 2010 annual report, the media sector contributed $22.4 billion in revenue to the Singapore economy in 2008.
Mediapolis is MediaCorp's new home
By boon chan
The kings and queens of Caldecott Hill will have to change their titles when broadcaster and media company MediaCorp moves from its current premises to Buona Vista.
It was announced yesterday that MediaCorp will be an anchor tenant at the 19ha Mediapolis, a cluster of buildings in Buona Vista which is devoted to media and gaming-related companies. The move will be in phases starting from end-2014 and is expected to be completed by mid-2015.
MediaCorp will occupy 1.5ha of land area - roughly the size of two football fields - with an estimated gross floor area of 79,500sqm.
While the design of the new complex has yet to be decided, it will be a high-rise building with the television studios and theatres located on the lower floors.
The company had said in 2006 that it was moving to a site in Bukit Batok but the plan was shelved due to high construction costs and the onset of the economic crisis.
Pending approval from the relevant authorities, the current plot at Caldecott Hill will be sold to finance the construction of the new complex at Mediapolis. In response to queries, MediaCorp said it was 'premature at this time to discuss the cost of the new facility'.
It is not known what will happen to the prime Caldecott Hill plot.
Media Development Authority (MDA) chief executive officer Aubeck Kam says: 'MediaCorp's relocation will allow the company to leverage on the advanced infrastructure of Mediapolis@one-north to deliver content in more exciting ways and beyond TV as we know it today.'
When completed in 2020, Mediapolis is envisioned to have movie studios, digital production and broadcast facilities, research labs, games and animation studios, offices and service apartments.
It was previously announced that production house Infinite Frameworks is investing $100 million to build a sound stage facility there.
According to MDA's 2010 annual report, the media sector contributed $22.4 billion in revenue to the Singapore economy in 2008.
ST : Interest rates likely to rise
Dec 09,2010
Interest rates likely to rise
THOSE record-low interest rates home buyers have been enjoying are on the way out, according to economists.
They expect rates to inch up next year, largely because the United States is also forecast to lift its rates.
The three-month US-dollar Singapore Interbank Offered Rate (Sibor) is forecast to rise 0.2 percentage point to 0.5 per cent next year, according to a survey of 22 economists by the Monetary Authority of Singapore.
Similarly, the three-month Singdollar interbank rate is projected to climb to 0.7 per cent from 0.5 per cent now.
Economists have forecast rate rises because they expect the US to tighten monetary conditions and raise interest rates towards the second half of next year.
Barclays Capital economist Leong Wai Ho said rates in Singapore follow those in the US very closely.
'There is an upward bias of interest rates in the US, and although I don't expect the rates there to jump to 3.5 per cent any time soon, rates are on an upward trend,' he said.
Mr Dennis Ng, founder of mortgage consultancy portal HousingLoanSG.com, does not think that the minuscule increase will have much of an impact on people taking up mortgages linked to the Sibor rates.
Some banks peg mortgages to the Sibor and add a fixed premium on top of it.
'Right now, most such mortgage loan rates are 1.2 per cent. It is still at record lows and I don't think people will be severely affected until rates hit 3 per cent or more,' he said.
A 3 per cent rate on a $500,000 loan would mean a monthly repayment of about $2,300, compared to only $1,900 if the rate is 1.2 per cent.
Interest rates likely to rise
THOSE record-low interest rates home buyers have been enjoying are on the way out, according to economists.
They expect rates to inch up next year, largely because the United States is also forecast to lift its rates.
The three-month US-dollar Singapore Interbank Offered Rate (Sibor) is forecast to rise 0.2 percentage point to 0.5 per cent next year, according to a survey of 22 economists by the Monetary Authority of Singapore.
Similarly, the three-month Singdollar interbank rate is projected to climb to 0.7 per cent from 0.5 per cent now.
Economists have forecast rate rises because they expect the US to tighten monetary conditions and raise interest rates towards the second half of next year.
Barclays Capital economist Leong Wai Ho said rates in Singapore follow those in the US very closely.
'There is an upward bias of interest rates in the US, and although I don't expect the rates there to jump to 3.5 per cent any time soon, rates are on an upward trend,' he said.
Mr Dennis Ng, founder of mortgage consultancy portal HousingLoanSG.com, does not think that the minuscule increase will have much of an impact on people taking up mortgages linked to the Sibor rates.
Some banks peg mortgages to the Sibor and add a fixed premium on top of it.
'Right now, most such mortgage loan rates are 1.2 per cent. It is still at record lows and I don't think people will be severely affected until rates hit 3 per cent or more,' he said.
A 3 per cent rate on a $500,000 loan would mean a monthly repayment of about $2,300, compared to only $1,900 if the rate is 1.2 per cent.
ST : PoMo, Tanglin Shopping Centre up for sale
Dec 09,2010
PoMo, Tanglin Shopping Centre up for sale
By Fiona Chan
TWO commercial buildings in the city area were put up for sale yesterday.
One is the former Paradiz Centre in Selegie Road, now called PoMo, which is seeking expressions of interest, said marketing agent Jones Lang LaSalle (JLL).
The 99-year leasehold building between Parklane Shopping Mall and School of the Arts was built in the 1990s but recently underwent a major refurbishment.
It sits on a 43,027 sq ft site and has a net lettable area of 182,060 sq ft. Shops take up about 40 per cent of the space, with the rest devoted to offices.
PoMo is wholly owned by Australian property firm Lend Lease and a private fund. It is 99 per cent occupied, said JLL.
While no price has been specified for the sale, JLL's national director of investments, Mr Anthony Barr, said recent building sales in the area could be a reference.
He pointed to nearby IOI Plaza at the junction of Middle Road and Prinsep Street, which was reported to have been sold last month for $139 million, or about $1,380 per sq ft (psf).
Reports also said the freehold Prime Centre in Middle Road was recently sold for $103 million or $1,415 psf.
'So in terms of a price guidance for PoMo, it would be about $1,400 psf based on the net lettable area, which takes it to around $255 million,' said Mr Barr.The deadline for expressions of interest for the property is Jan 28.
Meanwhile, the owners of Tanglin Shopping Centre in Tanglin Road have put the building up for collective sale, which could be the biggest of its kind in the area.
The property now comprises 363 shop, office and medical units, but can be redeveloped to have homes, shops, offices, or hotel rooms, said ERA Realty Network, which is handling the sale.
Reports have put the reserve price for Tanglin Shopping Centre at $1.25 billion. This works out to a record price of about $4,000 per sq ft of potential gross floor area. It is located on a freehold site of about 68,512 sq ft, with a plot ratio of 4.2.
Millennium & Copthorne Hotels, the London-listed hotel arm of City Developments, said in June it had signed the collective sale agreement for the property. It owns 85 retail and office units and 325 parking lots that have been held since 1981.
PoMo, Tanglin Shopping Centre up for sale
By Fiona Chan
TWO commercial buildings in the city area were put up for sale yesterday.
One is the former Paradiz Centre in Selegie Road, now called PoMo, which is seeking expressions of interest, said marketing agent Jones Lang LaSalle (JLL).
The 99-year leasehold building between Parklane Shopping Mall and School of the Arts was built in the 1990s but recently underwent a major refurbishment.
It sits on a 43,027 sq ft site and has a net lettable area of 182,060 sq ft. Shops take up about 40 per cent of the space, with the rest devoted to offices.
PoMo is wholly owned by Australian property firm Lend Lease and a private fund. It is 99 per cent occupied, said JLL.
While no price has been specified for the sale, JLL's national director of investments, Mr Anthony Barr, said recent building sales in the area could be a reference.
He pointed to nearby IOI Plaza at the junction of Middle Road and Prinsep Street, which was reported to have been sold last month for $139 million, or about $1,380 per sq ft (psf).
Reports also said the freehold Prime Centre in Middle Road was recently sold for $103 million or $1,415 psf.
'So in terms of a price guidance for PoMo, it would be about $1,400 psf based on the net lettable area, which takes it to around $255 million,' said Mr Barr.The deadline for expressions of interest for the property is Jan 28.
Meanwhile, the owners of Tanglin Shopping Centre in Tanglin Road have put the building up for collective sale, which could be the biggest of its kind in the area.
The property now comprises 363 shop, office and medical units, but can be redeveloped to have homes, shops, offices, or hotel rooms, said ERA Realty Network, which is handling the sale.
Reports have put the reserve price for Tanglin Shopping Centre at $1.25 billion. This works out to a record price of about $4,000 per sq ft of potential gross floor area. It is located on a freehold site of about 68,512 sq ft, with a plot ratio of 4.2.
Millennium & Copthorne Hotels, the London-listed hotel arm of City Developments, said in June it had signed the collective sale agreement for the property. It owns 85 retail and office units and 325 parking lots that have been held since 1981.
ST : Property market still hot but not feverish
Dec 09,2010
COMMENTARY
Property market still hot but not feverish
Cooling measures are curbing speculation without stifling demand
By Esther Teo
THREE months after the Government's latest measures to cool it, the property market remains buoyant.
This has led some to question if the Aug 30 measures to tighten financing for those with existing loans and dampen demand for resale Housing Board flats were sufficient. These measures came on the back of earlier ones in September last year and February this year to cool the red-hot property market.
Others think the measures are effective. National Development Minister Mah Bow Tan declared recently that the calibrated cooling measures 'are starting to take effect'.
Those who think the market did not cool sufficiently may point to rising sales volumes for new private homes. After dipping in September, sales rebounded in October. Last month's figures look rosy so far, with more than 950 homes sold in three projects alone: Waterview, Spottiswoode Residences and Lakefront Residences.
Private home sales totalled 13,109 units in the first 10 months of this year, and may beat the 2007 record of 14,811.
The sales volumes suggest strong underlying demand for new private properties. Overall, the property market remains strong. But then it was never the intention of the Government to precipitate a fall in demand or prices.
No fewer than three ministers have said in the past month that the Government is monitoring the market closely - watching it 'like a hawk' as Mr Mah put it - and that it will not hesitate to introduce further cooling measures if necessary. Prime Minister Lee Hsien Loong and Finance Minister Tharman Shanmugaratnam have both said as much.
The Government's preference for a series of calibrated measures is borne of painful experience, after the Big Bang approach in the last property boom in 1996 led to a prolonged bust, no thanks in part to a global downturn.
Ideally, cooling measures should aim to remove speculative froth from the market, yet allow the property sector to grow in a stable and sustainable manner, with prices moving in line with economic fundamentals. This way, genuine home buyers are not priced out by cash-rich speculators flipping properties for quick gains.
If this is the yardstick, then the slew of measures so far this year have worked well: removing speculative froth from both private and public housing markets, yet keeping the overall market strong.
The evidence?
First, growth in private home prices has moderated. Prices rose by a smaller 2.9 per cent in the third quarter, down from 5.3 per cent the quarter before, according to the Urban Redevelopment Authority (URA). The URA index tracks prices of new projects - which tend to be priced higher - as well as those under completion and already completed.
Another price index, the Singapore Residential Price Index (SRPI) by the National University of Singapore (NUS), tracks only prices of completed projects. This index was 0.7 per cent lower in October than in September. The last time the overall index fell was in July, when it dipped by 0.1 per cent. NUS has been compiling the index since March this year.
Second, recent winning bids for private residential sites in the government land sales (GLS) programme have mostly plateaued in the $300 to $350 per sq ft per plot ratio range. The gaps between bids have narrowed considerably, indicating developers' more conservative outlook.
Third and more importantly, property prices and rents are now moving upwards in tandem and in line with economic fundamentals, said property firm Cushman & Wakefield's senior manager of Asia-Pacific research Ong Kah Seng.
In the bubbly second half of last year, prices of completed non-landed private homes gained 26 per cent. But rents actually fell by 1.7 per cent compared with the first half of the year. The economy grew by 10 per cent in that period.
This showed prices soaring without regard for rental yield and fast outstripping economic growth. Mr Ong notes: 'A prolonged period of price increase amid rental decline may suggest that some home buyers have intentions to speculate.'
In contrast, in the first nine months of this year, the prices of completed non-landed private homes have risen 13 per cent, keeping pace with a 15 per cent rise in rents and expected 15 per cent growth in the economy for the full year.
Fourth, speculative fervour has cooled with fewer sub-sales of private homes - when someone buys and then sells a property still under construction. This fell 52 per cent month-on-month in September.
In the private property market, prices are rising, but the froth is subsiding. But what of the public housing market? This has been a red-hot issue, with first-time buyers complaining of having to fork out large sums in excess of valuation, or cash over valuation (COV).
Mr Mah said recently that overall HDB resale transactions have fallen 30 per cent in the fourth quarter so far, against the previous quarter. Median COVs fell to $22,000 last month from $30,000 in the third quarter.
An objective observer would say the property market today is strong and healthy, and no longer feverish - for now.
But Singapore's open economy makes its property sector vulnerable to global developments. There is excess liquidity worldwide. Funds are fleeing faltering Western economies to Asia, including Singapore, in search of better yield. Already, Singapore has been flagged as the top real estate investment destination by the non-profit Urban Land Institute and PricewaterhouseCoopers.
Domestically, low interest rates and the spectre of up to 3 per cent inflation this year make property an attractive inflation-hedging investment. As Singapore's population crossed the five million mark in June, underlying demand is driving up prices.
With domestic and global factors aligned for a property boom that could become a bubble, a prudent government would rightly watch the market like a hawk for signs of excessive exuberance. So far, using calibrated measures has worked well. So too have the Government's moves on both sides of the property equation to trim demand while releasing more supply.
In this context, if prices outstrip economic fundamentals again, the more pertinent question is not whether, but when, there will be another round of measures.
esthert@sph.com.sg
COMMENTARY
Property market still hot but not feverish
Cooling measures are curbing speculation without stifling demand
By Esther Teo
THREE months after the Government's latest measures to cool it, the property market remains buoyant.
This has led some to question if the Aug 30 measures to tighten financing for those with existing loans and dampen demand for resale Housing Board flats were sufficient. These measures came on the back of earlier ones in September last year and February this year to cool the red-hot property market.
Others think the measures are effective. National Development Minister Mah Bow Tan declared recently that the calibrated cooling measures 'are starting to take effect'.
Those who think the market did not cool sufficiently may point to rising sales volumes for new private homes. After dipping in September, sales rebounded in October. Last month's figures look rosy so far, with more than 950 homes sold in three projects alone: Waterview, Spottiswoode Residences and Lakefront Residences.
Private home sales totalled 13,109 units in the first 10 months of this year, and may beat the 2007 record of 14,811.
The sales volumes suggest strong underlying demand for new private properties. Overall, the property market remains strong. But then it was never the intention of the Government to precipitate a fall in demand or prices.
No fewer than three ministers have said in the past month that the Government is monitoring the market closely - watching it 'like a hawk' as Mr Mah put it - and that it will not hesitate to introduce further cooling measures if necessary. Prime Minister Lee Hsien Loong and Finance Minister Tharman Shanmugaratnam have both said as much.
The Government's preference for a series of calibrated measures is borne of painful experience, after the Big Bang approach in the last property boom in 1996 led to a prolonged bust, no thanks in part to a global downturn.
Ideally, cooling measures should aim to remove speculative froth from the market, yet allow the property sector to grow in a stable and sustainable manner, with prices moving in line with economic fundamentals. This way, genuine home buyers are not priced out by cash-rich speculators flipping properties for quick gains.
If this is the yardstick, then the slew of measures so far this year have worked well: removing speculative froth from both private and public housing markets, yet keeping the overall market strong.
The evidence?
First, growth in private home prices has moderated. Prices rose by a smaller 2.9 per cent in the third quarter, down from 5.3 per cent the quarter before, according to the Urban Redevelopment Authority (URA). The URA index tracks prices of new projects - which tend to be priced higher - as well as those under completion and already completed.
Another price index, the Singapore Residential Price Index (SRPI) by the National University of Singapore (NUS), tracks only prices of completed projects. This index was 0.7 per cent lower in October than in September. The last time the overall index fell was in July, when it dipped by 0.1 per cent. NUS has been compiling the index since March this year.
Second, recent winning bids for private residential sites in the government land sales (GLS) programme have mostly plateaued in the $300 to $350 per sq ft per plot ratio range. The gaps between bids have narrowed considerably, indicating developers' more conservative outlook.
Third and more importantly, property prices and rents are now moving upwards in tandem and in line with economic fundamentals, said property firm Cushman & Wakefield's senior manager of Asia-Pacific research Ong Kah Seng.
In the bubbly second half of last year, prices of completed non-landed private homes gained 26 per cent. But rents actually fell by 1.7 per cent compared with the first half of the year. The economy grew by 10 per cent in that period.
This showed prices soaring without regard for rental yield and fast outstripping economic growth. Mr Ong notes: 'A prolonged period of price increase amid rental decline may suggest that some home buyers have intentions to speculate.'
In contrast, in the first nine months of this year, the prices of completed non-landed private homes have risen 13 per cent, keeping pace with a 15 per cent rise in rents and expected 15 per cent growth in the economy for the full year.
Fourth, speculative fervour has cooled with fewer sub-sales of private homes - when someone buys and then sells a property still under construction. This fell 52 per cent month-on-month in September.
In the private property market, prices are rising, but the froth is subsiding. But what of the public housing market? This has been a red-hot issue, with first-time buyers complaining of having to fork out large sums in excess of valuation, or cash over valuation (COV).
Mr Mah said recently that overall HDB resale transactions have fallen 30 per cent in the fourth quarter so far, against the previous quarter. Median COVs fell to $22,000 last month from $30,000 in the third quarter.
An objective observer would say the property market today is strong and healthy, and no longer feverish - for now.
But Singapore's open economy makes its property sector vulnerable to global developments. There is excess liquidity worldwide. Funds are fleeing faltering Western economies to Asia, including Singapore, in search of better yield. Already, Singapore has been flagged as the top real estate investment destination by the non-profit Urban Land Institute and PricewaterhouseCoopers.
Domestically, low interest rates and the spectre of up to 3 per cent inflation this year make property an attractive inflation-hedging investment. As Singapore's population crossed the five million mark in June, underlying demand is driving up prices.
With domestic and global factors aligned for a property boom that could become a bubble, a prudent government would rightly watch the market like a hawk for signs of excessive exuberance. So far, using calibrated measures has worked well. So too have the Government's moves on both sides of the property equation to trim demand while releasing more supply.
In this context, if prices outstrip economic fundamentals again, the more pertinent question is not whether, but when, there will be another round of measures.
esthert@sph.com.sg
ST : Holland Village park? Motorists prefer carpark
Dec 09,2010
Holland Village park? Motorists prefer carpark
By Goh Chin Lian
HOLLAND Village is to get its own park - but it is not the kind some residents and visitors want.
While planners envision a green space where people can gather and relax, motorists who complain of a shortage of parking spaces say they would rather have a carpark.
The mini park next to a Circle Line MRT station is due to be completed by the fourth quarter of next year. Located at the junction of Holland Avenue and Holland Road, it will mark the entrance to the enclave of restaurants, cafes and pubs popular with Singaporeans and expatriates alike.
However, critics say the green lung does nothing to address a shortage of parking spaces close to the shops and eating places.
The 0.3ha area marked out for the park used to be a 46-space carpark, until it was closed for MRT works in October 2004, along with another carpark with 70 spaces next to a former post office.
This came after 32 parking spaces fronting restaurants and pubs were removed due to security concerns after the Bali bomb blasts in 2002.
The Land Transport Authority said at the time that the two carparks would be reinstated when MRT construction was completed.
By 2005, the Urban Redevelopment Authority had added 157 parking spaces, nine more than those removed.
Transport planners hope visitors to Holland Village will leave their cars behind and take the Circle Line when it opens next year.
But motorists said the parking crunch remains. When The Straits Times visited the area yesterday afternoon, cars were streaming in and out of a makeshift driveway as workers were building the entrance of the Holland Village MRT station.
Advertising agency account director Jeffrey Maher, 45, who goes to a bank there once a week, felt parking spaces were more needed than green spaces. 'The carparks are always full around lunch time,' said the Briton, who lives in a condominium in nearby Cornwall Gardens.
Motorists like salesman Shawn Loh, 38, find the carparks too far a walk from the banks, adding: 'This area should be a carpark, not a park.'
The park will be triangular with four long benches, said the National Parks Board. It will be split into two levels, linked by a flight of stairs on which people can sit and watch outdoor performances.
Five existing mature rain trees will provide shade. Tall grass will be planted to shield it from a busy road junction.
Student Nick Jachowski, 24, who visits the area two to three times a week, wants a park. 'There isn't too much green space in Holland Village. There isn't a place to sit down unless you go into the shops,' said the American PhD student at the National University of Singapore.
Student Faith Ong, 13, who lives at the Leedon 2 condominium in Leedon Road, is also in favour of a park, saying: 'I can sit around and talk to my friends at the park instead of going to the malls.'
Holland Village park? Motorists prefer carpark
By Goh Chin Lian
HOLLAND Village is to get its own park - but it is not the kind some residents and visitors want.
While planners envision a green space where people can gather and relax, motorists who complain of a shortage of parking spaces say they would rather have a carpark.
The mini park next to a Circle Line MRT station is due to be completed by the fourth quarter of next year. Located at the junction of Holland Avenue and Holland Road, it will mark the entrance to the enclave of restaurants, cafes and pubs popular with Singaporeans and expatriates alike.
However, critics say the green lung does nothing to address a shortage of parking spaces close to the shops and eating places.
The 0.3ha area marked out for the park used to be a 46-space carpark, until it was closed for MRT works in October 2004, along with another carpark with 70 spaces next to a former post office.
This came after 32 parking spaces fronting restaurants and pubs were removed due to security concerns after the Bali bomb blasts in 2002.
The Land Transport Authority said at the time that the two carparks would be reinstated when MRT construction was completed.
By 2005, the Urban Redevelopment Authority had added 157 parking spaces, nine more than those removed.
Transport planners hope visitors to Holland Village will leave their cars behind and take the Circle Line when it opens next year.
But motorists said the parking crunch remains. When The Straits Times visited the area yesterday afternoon, cars were streaming in and out of a makeshift driveway as workers were building the entrance of the Holland Village MRT station.
Advertising agency account director Jeffrey Maher, 45, who goes to a bank there once a week, felt parking spaces were more needed than green spaces. 'The carparks are always full around lunch time,' said the Briton, who lives in a condominium in nearby Cornwall Gardens.
Motorists like salesman Shawn Loh, 38, find the carparks too far a walk from the banks, adding: 'This area should be a carpark, not a park.'
The park will be triangular with four long benches, said the National Parks Board. It will be split into two levels, linked by a flight of stairs on which people can sit and watch outdoor performances.
Five existing mature rain trees will provide shade. Tall grass will be planted to shield it from a busy road junction.
Student Nick Jachowski, 24, who visits the area two to three times a week, wants a park. 'There isn't too much green space in Holland Village. There isn't a place to sit down unless you go into the shops,' said the American PhD student at the National University of Singapore.
Student Faith Ong, 13, who lives at the Leedon 2 condominium in Leedon Road, is also in favour of a park, saying: 'I can sit around and talk to my friends at the park instead of going to the malls.'
ST : MediaCorp to move to Mediapolis@one-north
Dec 09,2010
MediaCorp to move to Mediapolis@one-north
By Yasmine Yahya
BROADCASTER MediaCorp is leaving its Caldecott Hill base for the new Mediapolis@one-north complex in Buona Vista.
MediaCorp said yesterday that the move will be carried out in phases, starting from the end of 2014, with the transition to its 1.5ha site complete by 2015.
The decision has been welcomed by the Government, which expects other media firms to follow the firm's lead and bring life to Mediapolis.
Mediapolis is a planned 19ha digital media hub that is slated to be completed by 2020. It will include state-of-the-art facilities as well as serviced apartments and hotels.
Minister for Information, Communications and the Arts Lui Tuck Yew said MediaCorp's move will likely entice other local and foreign media businesses to also set up shop in Mediapolis.
It would allow them to participate more easily in collaborative projects, added Mr Lui, who gave the opening address at the Asia Television Forum yesterday.
'With its relocation, Media- Corp could also extend its new-built facilities and services, such as studios and equipment, to other production houses for greater synergies and possible cost benefits,' he added.
MediaCorp chief executive Lucas Chow was similarly upbeat, saying that the firm can play the role of 'queen bee' at Mediapolis by generating a consistent pipeline of projects for the production houses and other media service providers operating there.
'The entire value chain can be built organically, which will in turn sustain the Mediapolis ecosystem comprising media and media-related companies,' he said.
This is not the first time that MediaCorp has announced a relocation.
In 2006, the firm said it was planning to move to Bukit Batok, but that plan was shelved due to high construction costs and the onset of the economic crisis.
In an internal note to Media- Corp staff, Mr Chow said that the move would be in line with the firm's vision to be a top Asian media company.
'As you know, the ageing infrastructure and ad hoc constructions over the last decades have rendered our current operations at Caldecott Broadcast Centre sub-optimal,' he said.
'Relocation would provide the opportunity for MediaCorp to fully exploit the latest technologies.'
The firm has been at Caldecott Hill since 1966. Pending approval from the relevant authorities, the land that the firm now occupies will be sold to finance the construction of its new premises at Mediapolis, said a spokesman.
According to the Urban Redevelopment Authority's 2008 Master Plan, the plot is zoned for a 'civic/community institution'.
Mr Ong Kah Seng, senior manager of Asia-Pacific research at Cushman & Wakefield, said: 'Currently, the site is surrounded mainly by residential properties, including choice landed homes.
'There could be possibilities for the plum site to be rezoned for residential or mixed use, should the land be returned to the Government upon MediaCorp's vacating.'
The masterplan is reviewed every five years.
If the land is rezoned for residential, commercial or mixed use, developers should be quite keen, Mr Ong added, as the plot is quite near central Singapore.
The accessibility of the area will be enhanced with the completion of Caldecott MRT station on the Circle Line.
MediaCorp to move to Mediapolis@one-north
By Yasmine Yahya
BROADCASTER MediaCorp is leaving its Caldecott Hill base for the new Mediapolis@one-north complex in Buona Vista.
MediaCorp said yesterday that the move will be carried out in phases, starting from the end of 2014, with the transition to its 1.5ha site complete by 2015.
The decision has been welcomed by the Government, which expects other media firms to follow the firm's lead and bring life to Mediapolis.
Mediapolis is a planned 19ha digital media hub that is slated to be completed by 2020. It will include state-of-the-art facilities as well as serviced apartments and hotels.
Minister for Information, Communications and the Arts Lui Tuck Yew said MediaCorp's move will likely entice other local and foreign media businesses to also set up shop in Mediapolis.
It would allow them to participate more easily in collaborative projects, added Mr Lui, who gave the opening address at the Asia Television Forum yesterday.
'With its relocation, Media- Corp could also extend its new-built facilities and services, such as studios and equipment, to other production houses for greater synergies and possible cost benefits,' he added.
MediaCorp chief executive Lucas Chow was similarly upbeat, saying that the firm can play the role of 'queen bee' at Mediapolis by generating a consistent pipeline of projects for the production houses and other media service providers operating there.
'The entire value chain can be built organically, which will in turn sustain the Mediapolis ecosystem comprising media and media-related companies,' he said.
This is not the first time that MediaCorp has announced a relocation.
In 2006, the firm said it was planning to move to Bukit Batok, but that plan was shelved due to high construction costs and the onset of the economic crisis.
In an internal note to Media- Corp staff, Mr Chow said that the move would be in line with the firm's vision to be a top Asian media company.
'As you know, the ageing infrastructure and ad hoc constructions over the last decades have rendered our current operations at Caldecott Broadcast Centre sub-optimal,' he said.
'Relocation would provide the opportunity for MediaCorp to fully exploit the latest technologies.'
The firm has been at Caldecott Hill since 1966. Pending approval from the relevant authorities, the land that the firm now occupies will be sold to finance the construction of its new premises at Mediapolis, said a spokesman.
According to the Urban Redevelopment Authority's 2008 Master Plan, the plot is zoned for a 'civic/community institution'.
Mr Ong Kah Seng, senior manager of Asia-Pacific research at Cushman & Wakefield, said: 'Currently, the site is surrounded mainly by residential properties, including choice landed homes.
'There could be possibilities for the plum site to be rezoned for residential or mixed use, should the land be returned to the Government upon MediaCorp's vacating.'
The masterplan is reviewed every five years.
If the land is rezoned for residential, commercial or mixed use, developers should be quite keen, Mr Ong added, as the plot is quite near central Singapore.
The accessibility of the area will be enhanced with the completion of Caldecott MRT station on the Circle Line.
ST : Punggol site draws top bid of $363m
Dec 08,2010
COMPANIES
Punggol site draws top bid of $363m
By Cheryl Lim
A NEW 16-storey condominium is set to come up near Punggol MRT station after a tender for a land site there closed yesterday with seven competitive bids.
Sim Lian Land and Sim Lian Development submitted the top offer for the land parcel at the corner of Punggol Central and Punggol Walk, according to the Urban Redevelopment Authority.
Their bid of $363 million for the 2.7ha site just topped the second-highest offer of $361.7 million. That bid was submitted by China-based Qingdao Construction (Singapore).
Next was Hong Leong Group's Intrepid Investments with a bid of $321 million, while Keppel Land Realty tabled an offer of $318.8 million.
The partnership between FCL Topaz, Far East Civil Engineering and Sekisui House put in a $297 million bid, and Ho Lee Group's Khai Wah Development sent in a $266.7 million bid. Allgreen Properties rounded up the list with a bid of $257.9 million.
Sim Lian's offer works out to $406.30 per sq ft (psf) per plot ratio. The developer said yesterday that it plans to build a 16-storey project comprising 800 units.
The development will offer a mix of units ranging from two- to four-bedroom apartments and penthouse units, Sim Lian said. It is expecting to launch the project by the fourth quarter of next year.
The plot of land has a maximum permissible gross floor area of 888,905 sq ft, and an additional 4,489 sq ft to include the existing conservation building, Matilda House, located within the site.
Matilda House, which is to be conserved and restored as part of the development, is the only remaining historic bungalow in Punggol Town. The building can be restored for use as a clubhouse or for private residential use within the development.
CB Richard Ellis Research executive director Li Hiaw Ho said the historic building, a piece of history from old Punggol, would enhance the lifestyle of the project's future residents.
Mr Li pointed out that the bids in the tender yesterday showed the keen interest that developers had in the site, which could be because of its proximity to an MRT station.
He observed that units at Oasis@Elias , a private condominium in Pasir Ris, were sold at $650 psf to $780 psf in the September to November period.
But nearby NV Residences fetched higher prices for the same period - between $830 psf and $910 psf - because of its proximity to Pasir Ris MRT station and White Sands shopping mall, said Mr Li.
He added that the top bid of $363 million for the Punggol site translates to a break-even cost of about $750 psf, and that the project may be able to fetch around $800 psf when it is ready for launch.
COMPANIES
Punggol site draws top bid of $363m
By Cheryl Lim
A NEW 16-storey condominium is set to come up near Punggol MRT station after a tender for a land site there closed yesterday with seven competitive bids.
Sim Lian Land and Sim Lian Development submitted the top offer for the land parcel at the corner of Punggol Central and Punggol Walk, according to the Urban Redevelopment Authority.
Their bid of $363 million for the 2.7ha site just topped the second-highest offer of $361.7 million. That bid was submitted by China-based Qingdao Construction (Singapore).
Next was Hong Leong Group's Intrepid Investments with a bid of $321 million, while Keppel Land Realty tabled an offer of $318.8 million.
The partnership between FCL Topaz, Far East Civil Engineering and Sekisui House put in a $297 million bid, and Ho Lee Group's Khai Wah Development sent in a $266.7 million bid. Allgreen Properties rounded up the list with a bid of $257.9 million.
Sim Lian's offer works out to $406.30 per sq ft (psf) per plot ratio. The developer said yesterday that it plans to build a 16-storey project comprising 800 units.
The development will offer a mix of units ranging from two- to four-bedroom apartments and penthouse units, Sim Lian said. It is expecting to launch the project by the fourth quarter of next year.
The plot of land has a maximum permissible gross floor area of 888,905 sq ft, and an additional 4,489 sq ft to include the existing conservation building, Matilda House, located within the site.
Matilda House, which is to be conserved and restored as part of the development, is the only remaining historic bungalow in Punggol Town. The building can be restored for use as a clubhouse or for private residential use within the development.
CB Richard Ellis Research executive director Li Hiaw Ho said the historic building, a piece of history from old Punggol, would enhance the lifestyle of the project's future residents.
Mr Li pointed out that the bids in the tender yesterday showed the keen interest that developers had in the site, which could be because of its proximity to an MRT station.
He observed that units at Oasis@Elias , a private condominium in Pasir Ris, were sold at $650 psf to $780 psf in the September to November period.
But nearby NV Residences fetched higher prices for the same period - between $830 psf and $910 psf - because of its proximity to Pasir Ris MRT station and White Sands shopping mall, said Mr Li.
He added that the top bid of $363 million for the Punggol site translates to a break-even cost of about $750 psf, and that the project may be able to fetch around $800 psf when it is ready for launch.
ST : Resale flat transactions and COVs fall: Mah Bow Tan
Dec 07,2010
Resale flat transactions and COVs fall: Mah Bow Tan
By Daryl Chin
MORE signs have emerged that the Government's cooling measures are having an impact on the property market.
Home buyers are paying lower cash premiums for Housing Board resale flats, and fewer resale transactions are taking place now, according to National Development Minister Mah Bow Tan.
The median cash-over-valuation (COV) amount for HDB resale flats dipped to $22,000 last month, down from $25,000 in October, Mr Mah said in an interview with Channel NewsAsia (CNA).
This is the second month in a row that the median COV has slid. October's figure was itself a drop from the $30,000 median COV seen in the third quarter.
Resale transactions have also fallen by some 30 per cent so far in the fourth quarter as compared with the third quarter, Mr Mah was quoted as saying in the report, which CNA broadcast yesterday.
He also said that the full impact of the measures would only be felt in another month or two, and though there is no need for further action now, the Government will take more steps if necessary.
High COV numbers, among other factors, led to cooling measures being introduced in August. These included restricting home buyers from owning both a private home and an HDB flat within a minimum occupancy period.
ERA Asia-Pacific associate director Eugene Lim said the measures 'effectively take out... private property owners from bumping up the COV prices'.
But he cautioned that COVs were only part of the whole story.
'Most deals are closed based on COVs rather than price, but I believe actual prices will still rise despite falling COVs, simply because valuation numbers are still going up.' Valuations are done by a panel assigned by HDB and are based on factors such as the price of past transactions.
He added: 'For example, a four-room flat in the Bedok area valued at $400,000 three months ago would be about $420,000 as of last month.'
Analysts The Straits Times spoke to said median COVs may fall even further.
SLP International Property Consultants' research executive director Nicholas Mak said: '$22,000 is still a bit high, it will likely fall further because of factors such as an increased housing supply.' HDB has said it will release 22,000 new flats next year, up from 16,000 this year.
In the CNA interview, Mr Mah said housing could be a key topic in the next general election: 'It's always been an issue at every election as far as I can remember. But this time round, it would probably be more than an issue.'
He also said he welcomes a contest from opposition parties in his Tampines GRC.
Resale flat transactions and COVs fall: Mah Bow Tan
By Daryl Chin
MORE signs have emerged that the Government's cooling measures are having an impact on the property market.
Home buyers are paying lower cash premiums for Housing Board resale flats, and fewer resale transactions are taking place now, according to National Development Minister Mah Bow Tan.
The median cash-over-valuation (COV) amount for HDB resale flats dipped to $22,000 last month, down from $25,000 in October, Mr Mah said in an interview with Channel NewsAsia (CNA).
This is the second month in a row that the median COV has slid. October's figure was itself a drop from the $30,000 median COV seen in the third quarter.
Resale transactions have also fallen by some 30 per cent so far in the fourth quarter as compared with the third quarter, Mr Mah was quoted as saying in the report, which CNA broadcast yesterday.
He also said that the full impact of the measures would only be felt in another month or two, and though there is no need for further action now, the Government will take more steps if necessary.
High COV numbers, among other factors, led to cooling measures being introduced in August. These included restricting home buyers from owning both a private home and an HDB flat within a minimum occupancy period.
ERA Asia-Pacific associate director Eugene Lim said the measures 'effectively take out... private property owners from bumping up the COV prices'.
But he cautioned that COVs were only part of the whole story.
'Most deals are closed based on COVs rather than price, but I believe actual prices will still rise despite falling COVs, simply because valuation numbers are still going up.' Valuations are done by a panel assigned by HDB and are based on factors such as the price of past transactions.
He added: 'For example, a four-room flat in the Bedok area valued at $400,000 three months ago would be about $420,000 as of last month.'
Analysts The Straits Times spoke to said median COVs may fall even further.
SLP International Property Consultants' research executive director Nicholas Mak said: '$22,000 is still a bit high, it will likely fall further because of factors such as an increased housing supply.' HDB has said it will release 22,000 new flats next year, up from 16,000 this year.
In the CNA interview, Mr Mah said housing could be a key topic in the next general election: 'It's always been an issue at every election as far as I can remember. But this time round, it would probably be more than an issue.'
He also said he welcomes a contest from opposition parties in his Tampines GRC.
ST : Property sales off to a strong start this month
Dec 07,2010
Property sales off to a strong start this month
By Cheryl Lim
NEW property launches and robust sales have given this usually sleepy month a surprisingly strong start.
December is traditionally a slow one early on, but the way buyers came out in force at the weekend overturned that notion.
However, it is too soon to tell whether this market enthusiasm will stay the course of the month, said one analyst.
'It's usually a trend to see people travelling and going on holidays in December, especially in the second half of the month,' said Credo Real Estate executive director Tan Hong Boon.
The big winner was Robinson Suites, which chalked up a 97per cent take-up within the first two hours of its weekend launch, said DMG & Partners analyst Brandon Lee. The freehold project in Robinson Road has 167 flats, primarily 600 sq ft and below. Prices range from $2,300 to $3,300 per sq ft (psf).
CapitaLand's d'Leedon also enjoyed a good response and has offloaded 205 units since its public launch last weekend - about 82per cent of the 250 units on sale.
Prices have been about $1,680 psf. So a 635 sq ft one-room plus one-study apartment went for $1.1million, while a 1,055 sqft two-bedder cost $1.5million or so.
The development in King's Road, on the former Farrer Court condominium site, consists of 1,703 apartments and 12 semi-detached houses.
CapitaLand said Singaporeans made up 80per cent of buyers with foreigners and permanent residents making up the rest.
Executive condominium (EC) Prive at Punggol Central is another hit, with more than 800 applications as of last night.
Prive is the first EC in the area and will feature about 680 units. Applications close today, with balloting due on Friday.
The busy start to the month has confirmed to CBRE residential director Joseph Tan that the concept of anticipating property trends by 'seasons' is outdated.
'It used to be that people would avoid buying property during the seventh lunar month,' said Mr Tan. 'But if the (economic) climate is good, the product is good, there's good expectations for a development, then there's no reason to wait.'
Meanwhile, a survey out yesterday from the non-profit Urban Land Institute and PricewaterhouseCoopers found Singapore has emerged as a top real estate investment destination among 20 Asian cities.
Based on the responses of more than 280 property professionals, strong economic growth here and brisk activity in the financial and high-tech industries set it apart from Osaka, Bangkok, Mumbai and other centres.
Analysts agree that all indicators point towards a more positive local property market next year. 'Property is directly linked to the economy, so when the economy performs well, property as a subset also performs well. Now with liquidity and low interest rates, buyers who are looking to buy property are also fuelling the demand,' said Mr Tan.
Small indicators, like the expansion of the financial market and staff movements, also support the prediction, he added.
On another front, CapitaLand unit The Ascott has been awarded the master tenancy of 33 black and white bungalows at Mount Pleasant for residential use. The serviced residence firm submitted the third highest bid of $435,000 per month.
The bungalows are being offered for an initial tenancy of three years with an option to renew for two more three-year terms. They are popular with diplomats and business executives, said Ascott.
The show gallery for CapitaLand's d'Leedon, which stands on the site of the former Farrer Court condominium. Out of 250 units released so far, 205 have been sold since its public launch last weekend. -- ST PHOTO: KEVIN LIM
Property sales off to a strong start this month
By Cheryl Lim
NEW property launches and robust sales have given this usually sleepy month a surprisingly strong start.
December is traditionally a slow one early on, but the way buyers came out in force at the weekend overturned that notion.
However, it is too soon to tell whether this market enthusiasm will stay the course of the month, said one analyst.
'It's usually a trend to see people travelling and going on holidays in December, especially in the second half of the month,' said Credo Real Estate executive director Tan Hong Boon.
The big winner was Robinson Suites, which chalked up a 97per cent take-up within the first two hours of its weekend launch, said DMG & Partners analyst Brandon Lee. The freehold project in Robinson Road has 167 flats, primarily 600 sq ft and below. Prices range from $2,300 to $3,300 per sq ft (psf).
CapitaLand's d'Leedon also enjoyed a good response and has offloaded 205 units since its public launch last weekend - about 82per cent of the 250 units on sale.
Prices have been about $1,680 psf. So a 635 sq ft one-room plus one-study apartment went for $1.1million, while a 1,055 sqft two-bedder cost $1.5million or so.
The development in King's Road, on the former Farrer Court condominium site, consists of 1,703 apartments and 12 semi-detached houses.
CapitaLand said Singaporeans made up 80per cent of buyers with foreigners and permanent residents making up the rest.
Executive condominium (EC) Prive at Punggol Central is another hit, with more than 800 applications as of last night.
Prive is the first EC in the area and will feature about 680 units. Applications close today, with balloting due on Friday.
The busy start to the month has confirmed to CBRE residential director Joseph Tan that the concept of anticipating property trends by 'seasons' is outdated.
'It used to be that people would avoid buying property during the seventh lunar month,' said Mr Tan. 'But if the (economic) climate is good, the product is good, there's good expectations for a development, then there's no reason to wait.'
Meanwhile, a survey out yesterday from the non-profit Urban Land Institute and PricewaterhouseCoopers found Singapore has emerged as a top real estate investment destination among 20 Asian cities.
Based on the responses of more than 280 property professionals, strong economic growth here and brisk activity in the financial and high-tech industries set it apart from Osaka, Bangkok, Mumbai and other centres.
Analysts agree that all indicators point towards a more positive local property market next year. 'Property is directly linked to the economy, so when the economy performs well, property as a subset also performs well. Now with liquidity and low interest rates, buyers who are looking to buy property are also fuelling the demand,' said Mr Tan.
Small indicators, like the expansion of the financial market and staff movements, also support the prediction, he added.
On another front, CapitaLand unit The Ascott has been awarded the master tenancy of 33 black and white bungalows at Mount Pleasant for residential use. The serviced residence firm submitted the third highest bid of $435,000 per month.
The bungalows are being offered for an initial tenancy of three years with an option to renew for two more three-year terms. They are popular with diplomats and business executives, said Ascott.
The show gallery for CapitaLand's d'Leedon, which stands on the site of the former Farrer Court condominium. Out of 250 units released so far, 205 have been sold since its public launch last weekend. -- ST PHOTO: KEVIN LIM
ST : Tulip Garden up for sale again - at $650m
Dec 07,2010
Tulip Garden up for sale again - at $650m
Condo owners stand to collect between $3.14m and $5.45m if deal goes through
By Esther Teo
TULIP Garden is up for collective sale again, with a hefty price tag of $650 million although there are expectations keen developers could offer even more.
The 164-unit development completed in 1985 is sited primarily in Farrer Road but also backs onto Leedon Heights, on a property golden mile where Singapore's two largest collective deals were struck.
The former HUDC Farrer Court site - now CapitaLand's 1,715-unit d'Leedon project - went for $1.34 billion in 2007 while Leedon Heights was sold for $835 million in the same year.
Tulip Garden was actually sold en bloc for $516 million in July 2007, but the deal fell through when the buyers - a consortium led by developer Bravo Building Construction - backed out in 2008, citing trouble raising funds for the purchase.
If the Tulip Garden deal comes off now, it will be the third largest by value here and the first freehold collective sale that is more than $500 million in three years.
Marketing agent Credo Real Estate said more than 80 per cent of the owners signed a collective sale agreement in October. Owners at the estate, which has flats from 1,700 sq ft to 3,400 sq ft, stand to reap between $3.14 million and $5.45 million - around 50 per cent to 70 per cent above the market rate.
Credo managing director Karamjit Singh said developers have been craving large-scale freehold sites in prime districts. He 'would not be surprised' if the highest bid exceeds $700 million.
'The average deal size of the more than 30 successful en bloc sales this year so far was around $50 million. These sites tend to suit small to medium developers. For the large developers, they had lots of sites from the Government to consider but they are all leasehold and located in suburban estates,' he said.
At a gross plot ratio of 1.6425, the $650 million price works out to $1,250 per sq ft (psf) per plot ratio (ppr) for the 316,708 sq ft land parcel.
But if a developer chooses to maximise the 10 per cent allowable space for balconies, the effective land cost inclusive of $20.5 million in development charge is $1,203 psf ppr. Developers pay development charges to enhance the use of residential sites.
At this price, a developer could expect to break even at about $1,800 psf, said Credo. Units at neighbouring 99-year leasehold d'Leedon are being sold at about $1,680 psf while Glyndebourne, a freehold project off Dunearn Road from City Developments, achieved average prices of about $2,100 psf during its preview in October.
The Tulip Garden site, which is in District 10 and near the upcoming Farrer Road MRT Station, is zoned for residential use up to 12 storeys. It can be reconfigured into 400 flats with an average size of 1,325 sq ft, depending on layout and configuration, Credo said.
Mr Ben Liang, who has been living at Tulip Garden for more than 10 years, said he had supported the collective sale as he could get at least 30 per cent more than from selling his apartment individually.
'The development is getting old and and if you wanted to renovate the place you would have to change many things... It's better to get more value by selling it en bloc,' he added.
The huge Tulip Garden deal underlines the surge of collective sale activity this year with 31 sales sealed for a total of $1.5 billion. It is a striking change over last year when the $100.8 million Dragon Mansion sale was the only deal struck.
More mega sites are also expected on the market over the next few months.
Pine Grove in Ulu Pandan Road is expected to launch its tender early next year with a reserve price of $1.7 billion while Hawaii Tower in Meyer Road is looking at a reserve price of $700 million.
Experts warn the market could have trouble absorbing such big sites, especially if tenders close around the same time.
Colliers International's research and advisory director Tay Huey Ying added: 'In the current market where there is still uncertainty, bite-sized collective sale developments are still preferred and are easier to sell... They also involve less risk.'
But Ms Stella Hoh, head of investments at Jones Lang LaSalle, said developers remain keen to replenish prime sites.
esthert@sph.com.sg
--------------------------------------------------------------------------------
Other mega collective sales
Farrer Court: $1.34 billion (June 2007)
Leedon Heights: $835 million (April 2007)
The Grangeford: $625 million (June 2007)
UIC Building: $600 million (April 2007)
Gillman Heights: $548 million (February 2007)
Tulip Garden, now a 164-unit development (above), is near the upcoming Farrer Road MRT station. The site is earmarked for residential use up to 12 storeys and can yield 400 flats of an average size of 1,325 sq ft, depending on layout. -- ST PHOTOS: LENNE CHAI
Tulip Garden up for sale again - at $650m
Condo owners stand to collect between $3.14m and $5.45m if deal goes through
By Esther Teo
TULIP Garden is up for collective sale again, with a hefty price tag of $650 million although there are expectations keen developers could offer even more.
The 164-unit development completed in 1985 is sited primarily in Farrer Road but also backs onto Leedon Heights, on a property golden mile where Singapore's two largest collective deals were struck.
The former HUDC Farrer Court site - now CapitaLand's 1,715-unit d'Leedon project - went for $1.34 billion in 2007 while Leedon Heights was sold for $835 million in the same year.
Tulip Garden was actually sold en bloc for $516 million in July 2007, but the deal fell through when the buyers - a consortium led by developer Bravo Building Construction - backed out in 2008, citing trouble raising funds for the purchase.
If the Tulip Garden deal comes off now, it will be the third largest by value here and the first freehold collective sale that is more than $500 million in three years.
Marketing agent Credo Real Estate said more than 80 per cent of the owners signed a collective sale agreement in October. Owners at the estate, which has flats from 1,700 sq ft to 3,400 sq ft, stand to reap between $3.14 million and $5.45 million - around 50 per cent to 70 per cent above the market rate.
Credo managing director Karamjit Singh said developers have been craving large-scale freehold sites in prime districts. He 'would not be surprised' if the highest bid exceeds $700 million.
'The average deal size of the more than 30 successful en bloc sales this year so far was around $50 million. These sites tend to suit small to medium developers. For the large developers, they had lots of sites from the Government to consider but they are all leasehold and located in suburban estates,' he said.
At a gross plot ratio of 1.6425, the $650 million price works out to $1,250 per sq ft (psf) per plot ratio (ppr) for the 316,708 sq ft land parcel.
But if a developer chooses to maximise the 10 per cent allowable space for balconies, the effective land cost inclusive of $20.5 million in development charge is $1,203 psf ppr. Developers pay development charges to enhance the use of residential sites.
At this price, a developer could expect to break even at about $1,800 psf, said Credo. Units at neighbouring 99-year leasehold d'Leedon are being sold at about $1,680 psf while Glyndebourne, a freehold project off Dunearn Road from City Developments, achieved average prices of about $2,100 psf during its preview in October.
The Tulip Garden site, which is in District 10 and near the upcoming Farrer Road MRT Station, is zoned for residential use up to 12 storeys. It can be reconfigured into 400 flats with an average size of 1,325 sq ft, depending on layout and configuration, Credo said.
Mr Ben Liang, who has been living at Tulip Garden for more than 10 years, said he had supported the collective sale as he could get at least 30 per cent more than from selling his apartment individually.
'The development is getting old and and if you wanted to renovate the place you would have to change many things... It's better to get more value by selling it en bloc,' he added.
The huge Tulip Garden deal underlines the surge of collective sale activity this year with 31 sales sealed for a total of $1.5 billion. It is a striking change over last year when the $100.8 million Dragon Mansion sale was the only deal struck.
More mega sites are also expected on the market over the next few months.
Pine Grove in Ulu Pandan Road is expected to launch its tender early next year with a reserve price of $1.7 billion while Hawaii Tower in Meyer Road is looking at a reserve price of $700 million.
Experts warn the market could have trouble absorbing such big sites, especially if tenders close around the same time.
Colliers International's research and advisory director Tay Huey Ying added: 'In the current market where there is still uncertainty, bite-sized collective sale developments are still preferred and are easier to sell... They also involve less risk.'
But Ms Stella Hoh, head of investments at Jones Lang LaSalle, said developers remain keen to replenish prime sites.
esthert@sph.com.sg
--------------------------------------------------------------------------------
Other mega collective sales
Farrer Court: $1.34 billion (June 2007)
Leedon Heights: $835 million (April 2007)
The Grangeford: $625 million (June 2007)
UIC Building: $600 million (April 2007)
Gillman Heights: $548 million (February 2007)
Tulip Garden, now a 164-unit development (above), is near the upcoming Farrer Road MRT station. The site is earmarked for residential use up to 12 storeys and can yield 400 flats of an average size of 1,325 sq ft, depending on layout. -- ST PHOTOS: LENNE CHAI
ST : Lim Hwee Hua explains thinking on housing policy
Dec 06,2010
Lim Hwee Hua explains thinking on housing policy
Residents had asked about poor forecasting, latest HDB restrictions
By Zakir Hussain
THE housing market may be cooling, but it was a hot issue for two veteran Kampong Chai Chee grassroots leaders who quizzed Minister in the Prime Minister's Office Lim Hwee Hua on policy changes and what they saw as shortcomings.
Residents' committee member Bernard Choo, 64, wondered if the housing authorities slipped up in planning for population growth, leading to 'a huge housing demand chasing a very limited supply'.
Former community centre management committee chairman Png Wee Chor, 71, took issue with the tightening of restrictions on HDB owners buying private property, and private property owners buying resale HDB flats.
Both questions dominated an hour- long dialogue Mrs Lim had with residents during her visit yesterday to the Kampong Chai Chee ward of East Coast GRC. Other issues raised included future plans for the ward and amenities such as the food centre and sports facilities.
Mrs Lim, who acknowledged that housing was an issue close to people's hearts, used the opportunity to explain the complexities of planning for housing demand.
She noted that it was extremely difficult to be precise about a country's future needs as trends and preferences change.
In outlining the thinking behind the latest measures, she told Mr Png that when the Government saw that younger couples found it hard to get a flat, it discovered that a key obstacle was the rising cash-over-valuation for resale flats.
The HDB and National Development Ministry realised that a small group of private property owners were speculating on these flats, causing prices to rise faster.
Hence the Government decided to impose new ownership restrictions.
'The starting point is one of trying to meet the needs of Singaporeans who would like to own a flat, who feel that they have not been able to do so because others are participating - who perhaps can be left out until such time as the needs of younger Singaporeans especially have been met.'
Soaring resale flat prices of late prompted concerns that these are out of reach for many. New rules took effect in September, and on Nov 27, National Development Minister Mah Bow Tan said there were signs that these were working.
On Mr Choo's point about poor forecasting having led to 'a very mismanaged situation', Mrs Lim said:
'It's extremely difficult to do forecasting on a macro basis just based on straightforward population growth. The other difficulty revolves around shifting patterns of behaviour.'
She cited how young couples previously did not mind living with their parents after marriage, or renting a flat first. But now they want their own place, and are willing to live further away from the city.
She noted that 22,000 new flats - plus 4,000 Design, Build and Sell Scheme units and 4,000 executive condominium units - will be launched next year.
But, she added: 'It is of course in everybody's interest to try and get the projections right. The Government takes in some of these shifting preferences and puts out sufficient flats or sale of land to the private sector and makes sure there will be enough supply of public housing.'
Mr Png backed measures to cool the market, but found it unreasonable to bar HDB owners from having homes abroad.
'The Government asks us to venture and invest overseas, we need a place to stay,' he said in Mandarin.
New residents wanting to keep homes abroad for their parents there could no longer buy an HDB flat, he added.
Responding, Mrs Lim said that for exceptional cases, residents should approach their MP to appeal to HDB as it has said that it will consider such cases.
At the dialogue, Mr Png also said the Government should compensate those whose investments in financial products had collapsed during the 2008 economic crisis. 'Many suffered a lot of anguish and pain which may be reflected in the (next) election,' he said.
Mrs Lim, who is also Second Finance and Transport Minister, said the Monetary Authority of Singapore had imposed stricter regulations on financial products, and worked with banks on compensation processes. 'You can't have a blanket ruling saying everybody will get so much. A lot will depend on how knowledgeable the person is at the point of investing.'
zakirh@sph.com.sg
Lim Hwee Hua explains thinking on housing policy
Residents had asked about poor forecasting, latest HDB restrictions
By Zakir Hussain
THE housing market may be cooling, but it was a hot issue for two veteran Kampong Chai Chee grassroots leaders who quizzed Minister in the Prime Minister's Office Lim Hwee Hua on policy changes and what they saw as shortcomings.
Residents' committee member Bernard Choo, 64, wondered if the housing authorities slipped up in planning for population growth, leading to 'a huge housing demand chasing a very limited supply'.
Former community centre management committee chairman Png Wee Chor, 71, took issue with the tightening of restrictions on HDB owners buying private property, and private property owners buying resale HDB flats.
Both questions dominated an hour- long dialogue Mrs Lim had with residents during her visit yesterday to the Kampong Chai Chee ward of East Coast GRC. Other issues raised included future plans for the ward and amenities such as the food centre and sports facilities.
Mrs Lim, who acknowledged that housing was an issue close to people's hearts, used the opportunity to explain the complexities of planning for housing demand.
She noted that it was extremely difficult to be precise about a country's future needs as trends and preferences change.
In outlining the thinking behind the latest measures, she told Mr Png that when the Government saw that younger couples found it hard to get a flat, it discovered that a key obstacle was the rising cash-over-valuation for resale flats.
The HDB and National Development Ministry realised that a small group of private property owners were speculating on these flats, causing prices to rise faster.
Hence the Government decided to impose new ownership restrictions.
'The starting point is one of trying to meet the needs of Singaporeans who would like to own a flat, who feel that they have not been able to do so because others are participating - who perhaps can be left out until such time as the needs of younger Singaporeans especially have been met.'
Soaring resale flat prices of late prompted concerns that these are out of reach for many. New rules took effect in September, and on Nov 27, National Development Minister Mah Bow Tan said there were signs that these were working.
On Mr Choo's point about poor forecasting having led to 'a very mismanaged situation', Mrs Lim said:
'It's extremely difficult to do forecasting on a macro basis just based on straightforward population growth. The other difficulty revolves around shifting patterns of behaviour.'
She cited how young couples previously did not mind living with their parents after marriage, or renting a flat first. But now they want their own place, and are willing to live further away from the city.
She noted that 22,000 new flats - plus 4,000 Design, Build and Sell Scheme units and 4,000 executive condominium units - will be launched next year.
But, she added: 'It is of course in everybody's interest to try and get the projections right. The Government takes in some of these shifting preferences and puts out sufficient flats or sale of land to the private sector and makes sure there will be enough supply of public housing.'
Mr Png backed measures to cool the market, but found it unreasonable to bar HDB owners from having homes abroad.
'The Government asks us to venture and invest overseas, we need a place to stay,' he said in Mandarin.
New residents wanting to keep homes abroad for their parents there could no longer buy an HDB flat, he added.
Responding, Mrs Lim said that for exceptional cases, residents should approach their MP to appeal to HDB as it has said that it will consider such cases.
At the dialogue, Mr Png also said the Government should compensate those whose investments in financial products had collapsed during the 2008 economic crisis. 'Many suffered a lot of anguish and pain which may be reflected in the (next) election,' he said.
Mrs Lim, who is also Second Finance and Transport Minister, said the Monetary Authority of Singapore had imposed stricter regulations on financial products, and worked with banks on compensation processes. 'You can't have a blanket ruling saying everybody will get so much. A lot will depend on how knowledgeable the person is at the point of investing.'
zakirh@sph.com.sg
ST : Residents, shopkeepers cheer Bedok Town Centre upgrading
Dec 06,2010
Residents, shopkeepers cheer Bedok Town Centre upgrading
By Teo Wan Gek
THE completion of upgrading programmes in parts of Bedok Town Centre has cheered residents and shopkeepers, who have seen flat prices appreciate and an increase in business.
Security officer Saeman Musta, 43, of Block 201 Bedok North Street 1, has a new utility room, timber doors, grille gates and windows and upgraded bathrooms under the Main Upgrading Programme (MUP), which was completed earlier this year.
He is using the new utility room in his three-room flat as a study and playroom for his two children. 'They used to play in the kitchen or living room but it was noisy. Now, they have their own space.'
According to Mr Lee Yi Shyan, MP for the Kampong Chai Chee ward of East Coast GRC, the completion of the MUP for Blocks 201 to 203 has seen the value of flats there go up by at least 10 per cent.
Their average price is now around $335,000 compared to $297,000 for other similar three-room flats that have not undergone MUP.
Business in the town centre is also up by some 20 per cent after 163 shops had a facelift under the Revitalisation of Shops scheme, which includes installation of fixed awnings and vertical blinds at shop fronts to widen the covered corridors.
Residents at nine other HDB blocks in Bedok North Street 1 and New Upper Changi Road also now have lifts that stop on every floor, new linkways, drop-off porches and a plaza area under the Interim Upgrading Programme Plus.
Mr Lee, who is Minister of State (Trade and Industry and Manpower), said at a ceremony yesterday that the completion of upgrading showed the 'last four years have been very fruitful, in terms of working together to make Kampong Chai Chee a better place and better home'.
Minister in the Prime Minister's Office Lim Hwee Hua, who visited the ward to meet residents and shopkeepers, later commended grassroots leaders for their part in explaining and working with residents during the upgrading process.
'All this is also possible only because you are steered by a good MP like Mr Lee Yi Shyan, who is able to harness the different groups of people, whether the grassroots leaders or residents, to meet the challenges,' she said at a dialogue.
At the dialogue, fishball noodle stall owner Richard Teo, 51, said he was concerned about the future of the Block 207 food centre. Its lease is up in May 2014.
He gave Mrs Lim a petition signed by more than 50 of the 70 stallholders there who do not want the centre demolished. She said she would convey their views to the National Development Ministry.
Mr Lee is also keen to have the food centre remain in place, noting that it had many popular stalls and attracted Singaporeans from all over.
Residents, shopkeepers cheer Bedok Town Centre upgrading
By Teo Wan Gek
THE completion of upgrading programmes in parts of Bedok Town Centre has cheered residents and shopkeepers, who have seen flat prices appreciate and an increase in business.
Security officer Saeman Musta, 43, of Block 201 Bedok North Street 1, has a new utility room, timber doors, grille gates and windows and upgraded bathrooms under the Main Upgrading Programme (MUP), which was completed earlier this year.
He is using the new utility room in his three-room flat as a study and playroom for his two children. 'They used to play in the kitchen or living room but it was noisy. Now, they have their own space.'
According to Mr Lee Yi Shyan, MP for the Kampong Chai Chee ward of East Coast GRC, the completion of the MUP for Blocks 201 to 203 has seen the value of flats there go up by at least 10 per cent.
Their average price is now around $335,000 compared to $297,000 for other similar three-room flats that have not undergone MUP.
Business in the town centre is also up by some 20 per cent after 163 shops had a facelift under the Revitalisation of Shops scheme, which includes installation of fixed awnings and vertical blinds at shop fronts to widen the covered corridors.
Residents at nine other HDB blocks in Bedok North Street 1 and New Upper Changi Road also now have lifts that stop on every floor, new linkways, drop-off porches and a plaza area under the Interim Upgrading Programme Plus.
Mr Lee, who is Minister of State (Trade and Industry and Manpower), said at a ceremony yesterday that the completion of upgrading showed the 'last four years have been very fruitful, in terms of working together to make Kampong Chai Chee a better place and better home'.
Minister in the Prime Minister's Office Lim Hwee Hua, who visited the ward to meet residents and shopkeepers, later commended grassroots leaders for their part in explaining and working with residents during the upgrading process.
'All this is also possible only because you are steered by a good MP like Mr Lee Yi Shyan, who is able to harness the different groups of people, whether the grassroots leaders or residents, to meet the challenges,' she said at a dialogue.
At the dialogue, fishball noodle stall owner Richard Teo, 51, said he was concerned about the future of the Block 207 food centre. Its lease is up in May 2014.
He gave Mrs Lim a petition signed by more than 50 of the 70 stallholders there who do not want the centre demolished. She said she would convey their views to the National Development Ministry.
Mr Lee is also keen to have the food centre remain in place, noting that it had many popular stalls and attracted Singaporeans from all over.
ST : 11 YEARS AGO: Nearly bankrupt
Dec 05,2010
ME & MY MONEY
11 YEARS AGO: Nearly bankrupt
NOW: Owns 53 properties
Co-founder of training firm is an astute investor in real estate, gold and shares
Ms Wendy Kwek, 40, managing director of Executive Directions, with husband Joey Poh, 39, the firm's business development director, and their two pet dogs. The firm has 10 staff and a current yearly turnover of about $7 million. -- ST PHOTO: LENNE CHAI
By Lorna Tan
As part of her work, Ms Wendy Kwek, managing director of training firm Executive Directions, conducts public seminars advising investors on all aspects of property investments.
Ms Kwek, 40, walks the talk by investing in 53 properties in Singapore, Malaysia, the Philippines, Hong Kong, Australia, Britain, Canada and the United States. Some are co-owned with friends.
Out of these, 23 are generating a monthly rental income flow of $45,000. The rest are undergoing construction. Ten of the properties are fully paid up. She also invests in gold and shares.
It is hard to imagine that about 11 years ago, Ms Kwek was close to bankruptcy when she was unable to meet the monthly payments for her total outstanding loans of $600,000.
Back then, she had left Federal Express (FedEx) and was a freelance sales consultant with a training and consultancy firm. She was making good commissions of $250,000 within six months, but was not yet fully paid by the firm when she over-committed herself to a BMW and a condo.
Her financial trouble started when the firm refused to honour half of the commissions, she claimed.
To clear her debts, she sold the car and condo and cut down on her spending.
That was when she decided to be her own boss so as to have full control. In 2000, she set up Executive Directions with business partner Jerome Tan with just $52. That was enough to buy 20 files and a three-line newspaper advertisement to recruit sales people to market seminar events.
The firm made a profit of $50,000 within two months of operation. Now, it has 10 staff, and current yearly turnover is about $7 million.
Besides giving pointers on property investing, the firm offers programmes on stock investing, entrepreneurship and public speaking.
Ms Kwek graduated from the National University of Singapore with a business administration degree in 1992 and worked as a purchaser at Safe Superstore till 1994.
She left to become an executive search consultant at a recruitment firm for a year, before joining FedEx as a regional sales trainer from 1995 to 1999.
She is married to Mr Joey Poh, 39, who is Executive Directions' business development director.
Q Are you a spender or saver?
I used to be a spender when I was in the corporate world, spending more than I earned.
But after starting my own business, I learnt to become more resourceful and financially more disciplined as cash-flow management is crucial in business.
Within two years of starting my business, I began investing 10 per cent of my income, and slowly moved it up to half of my income.
As my business and property portfolios grow, they generate more positive cash flow monthly to take care of my living expenses. I now invest almost 80 per cent of my monthly income.
Q How much do you charge to your credit cards every month?
I charge about $3,000 a month for my personal expenses.
I also charge a lot to my credit cards for business expenses such as the cost of renting seminar venues and hotel function rooms.
I always pay my bills in full as I do not believe in paying 24 per cent interest per annum. I also always get my credit card membership fees waived.
Q What financial planning have you done for yourself?
Besides my investment properties, I have a six-figure sum invested in stocks. They are mainly blue chips such as SPH, SGX, SMRT and Genting. I select stocks based on the firm's fundamentals and track record. Some of the stocks are strictly for dividends and some for capital gains, so I look at the potential projected income that can be paid as dividends or capital gains.
In January this year, I invested in gold bars when gold was trading at US$1,120 per ounce. I am also covered with life insurance and mortgage insurance.
When investing in properties, it is important to know how to leverage. As a personal rule, I maintain a certain level of liquidity by having cash reserves that are more than a year's expenses. This acts as a buffer even if my properties go untenanted.
Q Moneywise, what were your growing-up years like?
I come from an average family and I have a younger sister. My mother was a housewife. My father was a police officer and his take- home income was on average $850 a month.
We lived in a three-room HDB flat in Ang Mo Kio for the first 30 years of my life. My dad was a gambler and we had to struggle when we were young. Sometimes, we had loan sharks visiting our flat.
I told myself that I must learn to be wise with money.
I paid my way through university by taking a study loan and giving tuition. My parents now live with me. My sister is married and in Ohio, in the United States.
Q How did you get interested in investing?
When I was 21, I realised that I really loved investing. So I cultivated it by studying technical and fundamental analyses of stocks from books and later by attending many courses.
I have spent about $200,000 on my personal development, learning about business and investments. This includes a 'Money and You' programme conducted by the Excellerated Business School in Malaysia, and leadership programmes by success coaches Anthony Robbins, John C. Maxwell and Robert Kiyosaki in Singapore. These programmes have paid me huge dividends.
For real estate, I invest across the different property classes. The reason I invested quite substantially in industrial properties recently is that it is a less understood and undervalued asset class with good growth potential.
The rental yield is easily twice that of the residential sector and I tend to be able to secure leases that are more long-term.
Q What properties do you own?
I realised from attending the personal development courses that property is one of the best ways for an average person to accumulate great wealth.
I own a terrace house at Jalan Kayu; an HDB flat near Jurong Point; five units of TradeHub 21 light industrial property in Boon Lay Way; two light industrial units of Northpoint Bizhub; a 1,600 sq ft HDB shophouse in Yishun; and two units of Midview City light industrial property at Sin Ming.
My overseas property investments include two office units at Bangsar in Kuala Lumpur; six condos in KL; a condo in Penang; 19 properties (including freehold carparks and student accommodation) in the Philippines; one property in Melbourne; and seven properties in Britain. I also have five pieces of land in Hong Kong, the US and Britain.
Q What's the most extravagant thing you have bought?
My hubby and I bought a white Porsche Boxster for more than $250,000 in August to celebrate my 40th birthday and my achievements so far.
Q What's your retirement plan?
I don't intend to fully retire, I think it will be very boring.
I want to continue doing what I'm currently doing for the rest of my life as it is more meaningful to be able to add value to people's lives.
I believe Joey and I will need about $10,000 a month in our golden years. By then, everything would have been paid off.
Currently, just the rental from four properties is more than enough to pay for the monthly instalments for my landed property, Porsche and BMW.
Q Home is now...
A 3,300 sq ft, 31/2-storey terrace house at Jalan Kayu. The land area is 1,630 sq ft. We bought the property brand new in March last year for $1.5 million and it is now valued at more than $2 million.
Q I drive...
A white Porsche Boxster and a silver BMW 318.
lorna@sph.com.sg
Liquidity crucial
'When investing in properties, it is important to know how to leverage. As a personal rule, I maintain a certain level of liquidity by having cash reserves that are more than a year's expenses. This acts as a buffer even if my properties go untenanted.'
MS WENDY KWEK, managing director of training firm Executive Directions
--------------------------------------------------------------------------------
BEST AND WORST BETS
Q My worst investment to date...
In 2004, I placed a RM5,000 deposit in a residential project Nas Pavilion, next to Sungei Wang and Lot 10 in Kuala Lumpur.
The developer abandoned the project a year later and I lost my deposit. It was a good lesson. I learnt the importance of evaluating the developers' reputations before entering into any deal.
Q My best investment to date...
In 2006, I invested in two industrial property units, each 1,500 sq ft, at TradeHub 21.
I bought them for $300,000 each and the rental income per unit was $3,000 a month, which worked out to a rental yield of 12 per cent.
I sold them for $520,000 each in 2008 and last year.
This year, I bought another five units at an average price of $450,000 each.
The current rental yield is 8 per cent to 10 per cent.
The current value of each unit is about $525,000.
ME & MY MONEY
11 YEARS AGO: Nearly bankrupt
NOW: Owns 53 properties
Co-founder of training firm is an astute investor in real estate, gold and shares
Ms Wendy Kwek, 40, managing director of Executive Directions, with husband Joey Poh, 39, the firm's business development director, and their two pet dogs. The firm has 10 staff and a current yearly turnover of about $7 million. -- ST PHOTO: LENNE CHAI
By Lorna Tan
As part of her work, Ms Wendy Kwek, managing director of training firm Executive Directions, conducts public seminars advising investors on all aspects of property investments.
Ms Kwek, 40, walks the talk by investing in 53 properties in Singapore, Malaysia, the Philippines, Hong Kong, Australia, Britain, Canada and the United States. Some are co-owned with friends.
Out of these, 23 are generating a monthly rental income flow of $45,000. The rest are undergoing construction. Ten of the properties are fully paid up. She also invests in gold and shares.
It is hard to imagine that about 11 years ago, Ms Kwek was close to bankruptcy when she was unable to meet the monthly payments for her total outstanding loans of $600,000.
Back then, she had left Federal Express (FedEx) and was a freelance sales consultant with a training and consultancy firm. She was making good commissions of $250,000 within six months, but was not yet fully paid by the firm when she over-committed herself to a BMW and a condo.
Her financial trouble started when the firm refused to honour half of the commissions, she claimed.
To clear her debts, she sold the car and condo and cut down on her spending.
That was when she decided to be her own boss so as to have full control. In 2000, she set up Executive Directions with business partner Jerome Tan with just $52. That was enough to buy 20 files and a three-line newspaper advertisement to recruit sales people to market seminar events.
The firm made a profit of $50,000 within two months of operation. Now, it has 10 staff, and current yearly turnover is about $7 million.
Besides giving pointers on property investing, the firm offers programmes on stock investing, entrepreneurship and public speaking.
Ms Kwek graduated from the National University of Singapore with a business administration degree in 1992 and worked as a purchaser at Safe Superstore till 1994.
She left to become an executive search consultant at a recruitment firm for a year, before joining FedEx as a regional sales trainer from 1995 to 1999.
She is married to Mr Joey Poh, 39, who is Executive Directions' business development director.
Q Are you a spender or saver?
I used to be a spender when I was in the corporate world, spending more than I earned.
But after starting my own business, I learnt to become more resourceful and financially more disciplined as cash-flow management is crucial in business.
Within two years of starting my business, I began investing 10 per cent of my income, and slowly moved it up to half of my income.
As my business and property portfolios grow, they generate more positive cash flow monthly to take care of my living expenses. I now invest almost 80 per cent of my monthly income.
Q How much do you charge to your credit cards every month?
I charge about $3,000 a month for my personal expenses.
I also charge a lot to my credit cards for business expenses such as the cost of renting seminar venues and hotel function rooms.
I always pay my bills in full as I do not believe in paying 24 per cent interest per annum. I also always get my credit card membership fees waived.
Q What financial planning have you done for yourself?
Besides my investment properties, I have a six-figure sum invested in stocks. They are mainly blue chips such as SPH, SGX, SMRT and Genting. I select stocks based on the firm's fundamentals and track record. Some of the stocks are strictly for dividends and some for capital gains, so I look at the potential projected income that can be paid as dividends or capital gains.
In January this year, I invested in gold bars when gold was trading at US$1,120 per ounce. I am also covered with life insurance and mortgage insurance.
When investing in properties, it is important to know how to leverage. As a personal rule, I maintain a certain level of liquidity by having cash reserves that are more than a year's expenses. This acts as a buffer even if my properties go untenanted.
Q Moneywise, what were your growing-up years like?
I come from an average family and I have a younger sister. My mother was a housewife. My father was a police officer and his take- home income was on average $850 a month.
We lived in a three-room HDB flat in Ang Mo Kio for the first 30 years of my life. My dad was a gambler and we had to struggle when we were young. Sometimes, we had loan sharks visiting our flat.
I told myself that I must learn to be wise with money.
I paid my way through university by taking a study loan and giving tuition. My parents now live with me. My sister is married and in Ohio, in the United States.
Q How did you get interested in investing?
When I was 21, I realised that I really loved investing. So I cultivated it by studying technical and fundamental analyses of stocks from books and later by attending many courses.
I have spent about $200,000 on my personal development, learning about business and investments. This includes a 'Money and You' programme conducted by the Excellerated Business School in Malaysia, and leadership programmes by success coaches Anthony Robbins, John C. Maxwell and Robert Kiyosaki in Singapore. These programmes have paid me huge dividends.
For real estate, I invest across the different property classes. The reason I invested quite substantially in industrial properties recently is that it is a less understood and undervalued asset class with good growth potential.
The rental yield is easily twice that of the residential sector and I tend to be able to secure leases that are more long-term.
Q What properties do you own?
I realised from attending the personal development courses that property is one of the best ways for an average person to accumulate great wealth.
I own a terrace house at Jalan Kayu; an HDB flat near Jurong Point; five units of TradeHub 21 light industrial property in Boon Lay Way; two light industrial units of Northpoint Bizhub; a 1,600 sq ft HDB shophouse in Yishun; and two units of Midview City light industrial property at Sin Ming.
My overseas property investments include two office units at Bangsar in Kuala Lumpur; six condos in KL; a condo in Penang; 19 properties (including freehold carparks and student accommodation) in the Philippines; one property in Melbourne; and seven properties in Britain. I also have five pieces of land in Hong Kong, the US and Britain.
Q What's the most extravagant thing you have bought?
My hubby and I bought a white Porsche Boxster for more than $250,000 in August to celebrate my 40th birthday and my achievements so far.
Q What's your retirement plan?
I don't intend to fully retire, I think it will be very boring.
I want to continue doing what I'm currently doing for the rest of my life as it is more meaningful to be able to add value to people's lives.
I believe Joey and I will need about $10,000 a month in our golden years. By then, everything would have been paid off.
Currently, just the rental from four properties is more than enough to pay for the monthly instalments for my landed property, Porsche and BMW.
Q Home is now...
A 3,300 sq ft, 31/2-storey terrace house at Jalan Kayu. The land area is 1,630 sq ft. We bought the property brand new in March last year for $1.5 million and it is now valued at more than $2 million.
Q I drive...
A white Porsche Boxster and a silver BMW 318.
lorna@sph.com.sg
Liquidity crucial
'When investing in properties, it is important to know how to leverage. As a personal rule, I maintain a certain level of liquidity by having cash reserves that are more than a year's expenses. This acts as a buffer even if my properties go untenanted.'
MS WENDY KWEK, managing director of training firm Executive Directions
--------------------------------------------------------------------------------
BEST AND WORST BETS
Q My worst investment to date...
In 2004, I placed a RM5,000 deposit in a residential project Nas Pavilion, next to Sungei Wang and Lot 10 in Kuala Lumpur.
The developer abandoned the project a year later and I lost my deposit. It was a good lesson. I learnt the importance of evaluating the developers' reputations before entering into any deal.
Q My best investment to date...
In 2006, I invested in two industrial property units, each 1,500 sq ft, at TradeHub 21.
I bought them for $300,000 each and the rental income per unit was $3,000 a month, which worked out to a rental yield of 12 per cent.
I sold them for $520,000 each in 2008 and last year.
This year, I bought another five units at an average price of $450,000 each.
The current rental yield is 8 per cent to 10 per cent.
The current value of each unit is about $525,000.
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