26 JAN 2011,
New measures help more first-time buyers to own flats
THE measures introduced in August last year and this month aim to stabilise the property market ('Genuine buyer's problems' by Mr Adam Reutens-Tan; Jan 18).
Together with the increased supply of housing units, they help more first-time buyers to own their homes.
The lower loan-to-value (LTV) limit of 60 per cent is meant to encourage financial prudence and reduce non- urgent housing demand.
Only buyers who take bank loans to buy a second property, while they have an existing loan for their current property, are affected.
Households earning up to $8,000 that wish to upgrade or downsize to another flat are not affected if they are eligible for an HDB concessionary loan. They may apply for an HDB loan of up to 90 per cent LTV, subject to credit assessment.
We urge flat sellers to carry out financial planning and consider their housing arrangements before committing to buy another property.
If they do not have sufficient cash or Central Provident Fund savings to pay the down payment for their next property due to the lower LTV limit, they should reconsider their decision to avoid overstretching themselves.
Alternatively, they can discharge their outstanding housing loan or sell their existing property before buying another.
Otherwise, when interest rates eventually rise, those who have over-extended themselves in property purchases may be severely affected.
Although the measures may inconvenience some home owners, they will help foster a more stable and sustainable property market, which will be beneficial to all stakeholders in the long run.
HDB will also continue to monitor the market closely to ensure that there is enough flat supply to meet demand.
Chan-Wong Jee Choo Lily (Mrs)
Deputy Director (Policy & Property)
Housing & Development Board
Monday, February 7, 2011
ST Forum : Indicative valuations are a vital tool
26 JAN 2011,
Indicative valuations are a vital tool
INDICATIVE valuations are a daily part of the property business ('Don't rely on indicative valuations' by the Singapore Institute of Surveyors and Valuers; Monday).
For every sale or purchase, clients want to know the 'bank valuation'. Buyers need the bank to lend them money. Would a purchaser's bank be bound by a professional valuation done by the Singapore Institute of Surveyors and Valuers, or would the bank still send their valuers, who might arrive at a different value?
If the latter, what is the point of getting a professional valuation from a valuer and not through a bank?
I am in the real estate business and I always ask a few bankers from different banks for an indicative valuation of a unit. The most blatant answer for a unit valuation in an established condo was a range of $3.2 million to $4 million involving four different valuations from three banks. So where is the real value?
It was a four-year-old condo with all parameters known to the bankers and their valuers.
A desktop valuation should be very much possible in a case like this. Units like this have been traded before, all figures are there to be seen by agents, so I assume the valuers have similar tools.
The indicative valuations for condo apartments that I receive from bankers (who get them from their valuers) usually differ by between $50,000 and $200,000.
Monika Fischer (Ms)
Indicative valuations are a vital tool
INDICATIVE valuations are a daily part of the property business ('Don't rely on indicative valuations' by the Singapore Institute of Surveyors and Valuers; Monday).
For every sale or purchase, clients want to know the 'bank valuation'. Buyers need the bank to lend them money. Would a purchaser's bank be bound by a professional valuation done by the Singapore Institute of Surveyors and Valuers, or would the bank still send their valuers, who might arrive at a different value?
If the latter, what is the point of getting a professional valuation from a valuer and not through a bank?
I am in the real estate business and I always ask a few bankers from different banks for an indicative valuation of a unit. The most blatant answer for a unit valuation in an established condo was a range of $3.2 million to $4 million involving four different valuations from three banks. So where is the real value?
It was a four-year-old condo with all parameters known to the bankers and their valuers.
A desktop valuation should be very much possible in a case like this. Units like this have been traded before, all figures are there to be seen by agents, so I assume the valuers have similar tools.
The indicative valuations for condo apartments that I receive from bankers (who get them from their valuers) usually differ by between $50,000 and $200,000.
Monika Fischer (Ms)
ST : Flats for seniors at Bt Batok: Will buyers bite?
25 JAN 2011,
Flats for seniors at Bt Batok: Will buyers bite?
Experts expect modest sales for newly launched flats there and in Yishun
By Cheryl Ong
HOMEBUYERS seeking homes in Yishun and Bukit Batok now have more options.
The Housing Board yesterday launched 1,728 build-to-order (BTO) flats in these two areas, the first batch of up to 22,000 new BTO flats in the pipeline this year if demand is sustained.
Industry watchers said the three projects - Orchid Spring @ Yishun, Vista Spring @ Yishun, and the seniors-friendly Golden Daisy in Bukit Batok - are expected to attract modest sales, due to their distance from MRT stations.
Strong demand for new flats and those in the resale sector led the Housing Board to roll out 16,000 flats last year, the highest number since the BTO system was launched in 2002. It allows flats to be built according to demand.
Some 95 per cent of the new flats will be reserved for first-time buyers.
Orchid Spring in Yishun Avenue 11 will have eight 13-storey blocks housing 948 two-, three- and four-room flats.
Vista Spring in Yishun Avenue 1 will also have eight 13-storey blocks, featuring 504 four- and five-room flats. The project also has 96 three-room flats which are reserved for sale in the future.
Prices in the Yishun projects range from $93,000 to $112,000 for a two-room flat, and from $292,000 to $353,000 for a five-room unit. More than half the Yishun flats on offer are four-room homes.
Golden Daisy, in Bukit Batok Street 21, will offer two sizes of studio apartment for residents aged 55 and older. They will be fitted out with essentials like built-in furniture. Apartments of 398.3 sq ft in size will cost between $83,000 and $94,000, while 505.9 sq ft ones will cost between $105,000 and $118,000.
PropNex corporate communications manager Adam Tan said Golden Daisy may not see high sales due to the modest popularity of studio apartments. 'While the development is situated near a park and neighbourhood centre for the residents' enjoyment, they would still have to take a bus to nearby Bukit Batok MRT station.'
Mr Tan said the three-room flats in Yishun are expected to see stronger demand due to their price, which is 40 per cent lower than current median resale prices in the neighbourhood.
The Yishun offerings feature amenities like childcare centres in the block as well as close proximity to parks and Lower Seletar Reservoir. However, Yishun MRT station is a few minutes away by bus.
HDB said the construction of Orchid Spring is expected to be completed in the fourth quarter of 2014, and Vista Spring in the third quarter of the same year.
Golden Daisy is expected to be ready in the first quarter of 2014.
Homebuyers can apply online at www.hdb.gov.sg from now till Feb 7.
ongyiern@sph.com.sg
Flats for seniors at Bt Batok: Will buyers bite?
Experts expect modest sales for newly launched flats there and in Yishun
By Cheryl Ong
HOMEBUYERS seeking homes in Yishun and Bukit Batok now have more options.
The Housing Board yesterday launched 1,728 build-to-order (BTO) flats in these two areas, the first batch of up to 22,000 new BTO flats in the pipeline this year if demand is sustained.
Industry watchers said the three projects - Orchid Spring @ Yishun, Vista Spring @ Yishun, and the seniors-friendly Golden Daisy in Bukit Batok - are expected to attract modest sales, due to their distance from MRT stations.
Strong demand for new flats and those in the resale sector led the Housing Board to roll out 16,000 flats last year, the highest number since the BTO system was launched in 2002. It allows flats to be built according to demand.
Some 95 per cent of the new flats will be reserved for first-time buyers.
Orchid Spring in Yishun Avenue 11 will have eight 13-storey blocks housing 948 two-, three- and four-room flats.
Vista Spring in Yishun Avenue 1 will also have eight 13-storey blocks, featuring 504 four- and five-room flats. The project also has 96 three-room flats which are reserved for sale in the future.
Prices in the Yishun projects range from $93,000 to $112,000 for a two-room flat, and from $292,000 to $353,000 for a five-room unit. More than half the Yishun flats on offer are four-room homes.
Golden Daisy, in Bukit Batok Street 21, will offer two sizes of studio apartment for residents aged 55 and older. They will be fitted out with essentials like built-in furniture. Apartments of 398.3 sq ft in size will cost between $83,000 and $94,000, while 505.9 sq ft ones will cost between $105,000 and $118,000.
PropNex corporate communications manager Adam Tan said Golden Daisy may not see high sales due to the modest popularity of studio apartments. 'While the development is situated near a park and neighbourhood centre for the residents' enjoyment, they would still have to take a bus to nearby Bukit Batok MRT station.'
Mr Tan said the three-room flats in Yishun are expected to see stronger demand due to their price, which is 40 per cent lower than current median resale prices in the neighbourhood.
The Yishun offerings feature amenities like childcare centres in the block as well as close proximity to parks and Lower Seletar Reservoir. However, Yishun MRT station is a few minutes away by bus.
HDB said the construction of Orchid Spring is expected to be completed in the fourth quarter of 2014, and Vista Spring in the third quarter of the same year.
Golden Daisy is expected to be ready in the first quarter of 2014.
Homebuyers can apply online at www.hdb.gov.sg from now till Feb 7.
ongyiern@sph.com.sg
ST : Confidence up in US but home prices down
25 JAN 2011,
Confidence up in US but home prices down
WASHINGTON: Confidence among United States consumers has risen more than forecast this month to the highest level in eight months as Americans became more optimistic about job prospects.
The Conference Board's index of sentiment increased to 60.6 from a revised 53.3 the prior month that was higher than previously estimated, figures from the New York-based private research group showed yesterday.
Economists projected the January gauge would rise to 54, according to the median forecast in a Bloomberg News survey.
A pickup in optimism, an improving labour market and tax relief may combine to encourage consumers, whose spending accounts for about 70 per cent of the economy.
'Confidence is going in the right direction,' Mr Brian Jones, an economist at Societe Generale in New York, said before the report. 'In general, the labour market is improving, and you need to have continued improvement there to keep consumer confidence rising.'
The Conference Board's measure of present conditions rose to the highest since November 2008 - to 31 from a revised 24.9.
The gauge of expectations for the next six months rose to 80.3 from 72.3.
The gain contrasts with the Thomson Reuters/University of Michigan preliminary consumer sentiment index, which fell this month as Americans feared higher petrol prices would hurt their finances.
Another report yesterday showed housing prices in November fell the most in a year, indicating housing has yet to join the economic rebound.
US single-family home prices fell for a fifth straight month in November and could plumb new lows soon, a closely watched survey showed.
The Standard & Poor's/Case-Shiller composite index of 20 metropolitan areas declined 0.5 per cent in November from October on a seasonally adjusted basis, though it was not as sharp as the 0.8 per cent fall expected by economists.
Prices have fallen 1.6 per cent in the past year, sharper than the 1.4 per cent predicted by Reuters-polled economists.
Sixteen of the 20 cities showed annual price declines in November, while 19 of 20 cities showed monthly price drops.
The housing market has been struggling since homebuyer tax credits expired earlier this year. To take advantage of the tax credits, buyers had to sign purchase contracts by April 30.
'A double-dip could be confirmed before Spring,' said Mr David Blitzer, chairman of the index committee at S&P.
He defined a double-dip as both the 10- and 20-city composite indices setting new post-peak lows. The 10-city index is 4.8 per cent above its April 2009 low, while the 20-city index is just 3.3 per cent higher than its low that same month.
BLOOMBERG, REUTERS
Confidence up in US but home prices down
WASHINGTON: Confidence among United States consumers has risen more than forecast this month to the highest level in eight months as Americans became more optimistic about job prospects.
The Conference Board's index of sentiment increased to 60.6 from a revised 53.3 the prior month that was higher than previously estimated, figures from the New York-based private research group showed yesterday.
Economists projected the January gauge would rise to 54, according to the median forecast in a Bloomberg News survey.
A pickup in optimism, an improving labour market and tax relief may combine to encourage consumers, whose spending accounts for about 70 per cent of the economy.
'Confidence is going in the right direction,' Mr Brian Jones, an economist at Societe Generale in New York, said before the report. 'In general, the labour market is improving, and you need to have continued improvement there to keep consumer confidence rising.'
The Conference Board's measure of present conditions rose to the highest since November 2008 - to 31 from a revised 24.9.
The gauge of expectations for the next six months rose to 80.3 from 72.3.
The gain contrasts with the Thomson Reuters/University of Michigan preliminary consumer sentiment index, which fell this month as Americans feared higher petrol prices would hurt their finances.
Another report yesterday showed housing prices in November fell the most in a year, indicating housing has yet to join the economic rebound.
US single-family home prices fell for a fifth straight month in November and could plumb new lows soon, a closely watched survey showed.
The Standard & Poor's/Case-Shiller composite index of 20 metropolitan areas declined 0.5 per cent in November from October on a seasonally adjusted basis, though it was not as sharp as the 0.8 per cent fall expected by economists.
Prices have fallen 1.6 per cent in the past year, sharper than the 1.4 per cent predicted by Reuters-polled economists.
Sixteen of the 20 cities showed annual price declines in November, while 19 of 20 cities showed monthly price drops.
The housing market has been struggling since homebuyer tax credits expired earlier this year. To take advantage of the tax credits, buyers had to sign purchase contracts by April 30.
'A double-dip could be confirmed before Spring,' said Mr David Blitzer, chairman of the index committee at S&P.
He defined a double-dip as both the 10- and 20-city composite indices setting new post-peak lows. The 10-city index is 4.8 per cent above its April 2009 low, while the 20-city index is just 3.3 per cent higher than its low that same month.
BLOOMBERG, REUTERS
ST Forum : Let singles own HDB flats at 25
24 JAN 2011,
Let singles own HDB flats at 25
WHILE it is gratifying to read that the Housing Board is reviewing the rule governing co-sharing of flats by siblings ('HDB to review rule on siblings'; Jan 18), the HDB should also lower the age for flat ownership by single citizens by a decade to 25 years of age.
As Singaporeans adopt a more urbanised Western attitude, it would make sense to accommodate their obvious desire to live on their own.
Such a move should not be seen as a lack of filial concern for their parents. My two children do not live with me, yet we have healthy relationships.
Staying out enables young people to grow up and be more independent. It prepares them to be better partners and parents in the future.
Many parents in our Asian culture still mother their adult children and make decisions for them. Many even impose curfew hours for their single adult children when the latter are well into their early 30s.
We can encourage these young single people to get married by providing generous incentives when they upgrade their flats to get married.
Young adult citizens at an early stage of their careers form a large proportion of the group of Singaporeans who face the middle-income squeeze and they would certainly welcome assistance, given the stiff property prices.
Dr Lau Geok Theng
Let singles own HDB flats at 25
WHILE it is gratifying to read that the Housing Board is reviewing the rule governing co-sharing of flats by siblings ('HDB to review rule on siblings'; Jan 18), the HDB should also lower the age for flat ownership by single citizens by a decade to 25 years of age.
As Singaporeans adopt a more urbanised Western attitude, it would make sense to accommodate their obvious desire to live on their own.
Such a move should not be seen as a lack of filial concern for their parents. My two children do not live with me, yet we have healthy relationships.
Staying out enables young people to grow up and be more independent. It prepares them to be better partners and parents in the future.
Many parents in our Asian culture still mother their adult children and make decisions for them. Many even impose curfew hours for their single adult children when the latter are well into their early 30s.
We can encourage these young single people to get married by providing generous incentives when they upgrade their flats to get married.
Young adult citizens at an early stage of their careers form a large proportion of the group of Singaporeans who face the middle-income squeeze and they would certainly welcome assistance, given the stiff property prices.
Dr Lau Geok Theng
ST : 3 sites up for collective sale
24 JAN 2011,
3 sites up for collective sale
THREE freehold sites - two residential and one commercial - have been put up for collective sale, a further sign that the market remains buoyant.
The residential plots are the MacPherson Green condominium near Tai Seng MRT station and Holland Tower in Holland Heights.
The owners of MacPherson Green want up to $115 million for the 66,928 sq ft plot. Two strips of land nearby are also being offered as part of the sale.
The site consists of a 13-storey tower block of 48 apartments and nine townhouses. At that price, each owner can expect around $1.56 million for a 1,216 sq ft two-bedroom unit or $2.76 million for a 2,325 sq ft townhouse.
The other residential plot, Holland Tower, which sits on 21,879 sq ft of land, is a 14-storey tower with 19 apartments and is sited near the upcoming Holland Village MRT station.
No development charge is payable.
Marketing agent Jones Lang LaSalle declined to give an indicative price but recent developments in the area have sold for between $1,363 and $1,388 per sq ft per plot ratio.
Tenders for the two sites close on Feb 23.
The North Bridge Road Commercial Complex is also up for sale, with the tender closing on March 3. The six-storey block is used for retail outlets and offices.
The 11,615 sq ft plot can be built to a gross floor area of about 48,784 sq ft. However, marketing agent DTZ is seeking the Urban Redevelopment Authority's approval to retain the building's current gross floor area of 66,614 sq ft for the plot's future owners.
The indicative price is between $110 million and $115 million.
CHERYL LIM
3 sites up for collective sale
THREE freehold sites - two residential and one commercial - have been put up for collective sale, a further sign that the market remains buoyant.
The residential plots are the MacPherson Green condominium near Tai Seng MRT station and Holland Tower in Holland Heights.
The owners of MacPherson Green want up to $115 million for the 66,928 sq ft plot. Two strips of land nearby are also being offered as part of the sale.
The site consists of a 13-storey tower block of 48 apartments and nine townhouses. At that price, each owner can expect around $1.56 million for a 1,216 sq ft two-bedroom unit or $2.76 million for a 2,325 sq ft townhouse.
The other residential plot, Holland Tower, which sits on 21,879 sq ft of land, is a 14-storey tower with 19 apartments and is sited near the upcoming Holland Village MRT station.
No development charge is payable.
Marketing agent Jones Lang LaSalle declined to give an indicative price but recent developments in the area have sold for between $1,363 and $1,388 per sq ft per plot ratio.
Tenders for the two sites close on Feb 23.
The North Bridge Road Commercial Complex is also up for sale, with the tender closing on March 3. The six-storey block is used for retail outlets and offices.
The 11,615 sq ft plot can be built to a gross floor area of about 48,784 sq ft. However, marketing agent DTZ is seeking the Urban Redevelopment Authority's approval to retain the building's current gross floor area of 66,614 sq ft for the plot's future owners.
The indicative price is between $110 million and $115 million.
CHERYL LIM
ST Forum : Don't rely on indicative valuations
24 JAN 2011,
Don't rely on indicative valuations
VALUATION is indeed based on detailed research and analysis and not on sentiments (Ms Yvonne Lee-Lek Siew Ling, 'Same bank, same property but... Valuations differed by $200,000.'; last Tuesday).
Indicative valuations provided via agents or banks (if obtained from valuers) are rough estimates as they are given without field inspections, in-depth analysis and data.
They should not be relied upon when making decisions on property investment or divestment.
We caution against relying on such indications, and urge buyers or sellers to obtain proper valuation reports from licensed appraisers if they need to ascertain the market values of their properties.
They will thus avoid getting a wide $200,000 difference in estimate of the same property given by agents or banks.
Desktop valuations are not a subscribed practice and should not be treated as proper valuations.
Ms Lee cited her experience about receiving assurances from agents and bank officers that they could offer valuations to match the asking price.
We seek Ms Lee's assistance to provide us with more details to help us address the problem.
Evelyn Chang (Ms)
Executive Director
Singapore Institute of Surveyors and Valuers
Don't rely on indicative valuations
VALUATION is indeed based on detailed research and analysis and not on sentiments (Ms Yvonne Lee-Lek Siew Ling, 'Same bank, same property but... Valuations differed by $200,000.'; last Tuesday).
Indicative valuations provided via agents or banks (if obtained from valuers) are rough estimates as they are given without field inspections, in-depth analysis and data.
They should not be relied upon when making decisions on property investment or divestment.
We caution against relying on such indications, and urge buyers or sellers to obtain proper valuation reports from licensed appraisers if they need to ascertain the market values of their properties.
They will thus avoid getting a wide $200,000 difference in estimate of the same property given by agents or banks.
Desktop valuations are not a subscribed practice and should not be treated as proper valuations.
Ms Lee cited her experience about receiving assurances from agents and bank officers that they could offer valuations to match the asking price.
We seek Ms Lee's assistance to provide us with more details to help us address the problem.
Evelyn Chang (Ms)
Executive Director
Singapore Institute of Surveyors and Valuers
ST : Waterfront park opens in Woodlands
24 JAN 2011,
Waterfront park opens in Woodlands
WOODLANDS' $19 million coastal park and promenade were officially opened yesterday.
Woodlands Waterfront, as this recreational playground for residents in the north has been named, comprises a 9ha coastal park and a 1.5km-long waterfront promenade.
It also has an event plaza, picnic areas, a playground and an undulating track for cyclists and runners.
Health Minister and Sembawang GRC MP Khaw Boon Wan, who was the guest of honour at the official opening, called the Urban Redevelopment Authority (URA) project 'good value for money'.
He said: 'I've been here several times now, at different times of the day, and it is very well used. I've noticed many come here either to do exercise... or fishing, catching crabs. Or just simply to look at the sunrise and sunset and in the evening, the night skyline of Johor Baru.'
At least 10,000 people have visited the green space so far, said a URA spokesman.
Work on Woodlands Waterfront began in 2009. The first phase launched in May last year made the first 3ha of coastal park and a 400m jetty - one of Singapore's longest recreational ones - accessible to residents.
Mr Ler Seng Ann, URA's group director for conservation and development services, said more improvements are in the pipeline, with the rejuvenation of the Yishun Pond area.
In the meantime, Woodlands Waterfront has become a hit with residents such as Mr Sethupillai Ganesan, a 37-year-old assistant safety manager who lives in Marsiling.
He has been going there with his 11/2-year-old son up to three times a week.
He said: 'I used to have to go all the way to East Coast Park. Now, good air, a free sea view and plenty of greenery are just five minutes away from home.'
MELISSA PANG
Woodlands Waterfront comprises a 9ha coastal park and a 1.5km-long waterfront promenade. It also has a 400m jetty (above), which was launched in May last year. -- ST PHOTO: LAU FOOK KONG
Waterfront park opens in Woodlands
WOODLANDS' $19 million coastal park and promenade were officially opened yesterday.
Woodlands Waterfront, as this recreational playground for residents in the north has been named, comprises a 9ha coastal park and a 1.5km-long waterfront promenade.
It also has an event plaza, picnic areas, a playground and an undulating track for cyclists and runners.
Health Minister and Sembawang GRC MP Khaw Boon Wan, who was the guest of honour at the official opening, called the Urban Redevelopment Authority (URA) project 'good value for money'.
He said: 'I've been here several times now, at different times of the day, and it is very well used. I've noticed many come here either to do exercise... or fishing, catching crabs. Or just simply to look at the sunrise and sunset and in the evening, the night skyline of Johor Baru.'
At least 10,000 people have visited the green space so far, said a URA spokesman.
Work on Woodlands Waterfront began in 2009. The first phase launched in May last year made the first 3ha of coastal park and a 400m jetty - one of Singapore's longest recreational ones - accessible to residents.
Mr Ler Seng Ann, URA's group director for conservation and development services, said more improvements are in the pipeline, with the rejuvenation of the Yishun Pond area.
In the meantime, Woodlands Waterfront has become a hit with residents such as Mr Sethupillai Ganesan, a 37-year-old assistant safety manager who lives in Marsiling.
He has been going there with his 11/2-year-old son up to three times a week.
He said: 'I used to have to go all the way to East Coast Park. Now, good air, a free sea view and plenty of greenery are just five minutes away from home.'
MELISSA PANG
Woodlands Waterfront comprises a 9ha coastal park and a 1.5km-long waterfront promenade. It also has a 400m jetty (above), which was launched in May last year. -- ST PHOTO: LAU FOOK KONG
ST : SC Global to provide 'butler-style' service
24 Jan 2011,
SC Global to provide 'butler-style' service
By Cheryl Lim
FIVE-STAR service, once exclusive to private households, hotels, castles and palaces, will be now available at all of developer SC Global's properties such as Hilltops along Cairnhill Circle.
This swish service will also be on offer at the properties the firm manages, including the Lincoln Modern at Newton.
SC Global is going the extra mile, by training its property management staff to act and think intuitively when serving residents at its properties.
Concierge service will be available at SC Global's four properties while the properties the group manages will have off-site concierge service available.
About 25 frontline staff including condo managers, concierges and technicians from all its properties have undergone a customised six-day programme conducted by Mr Robert Watson, trainer and managing director of the prestigious Guild of Professional English Butlers.
SC Global marketing communications manager Sarah-Jane Smith said exceptional service comes from being observant and picking up on the smaller details.
'(The training will cover) what are the things you think about when you are talking to someone so that you can provide exceptional service,' said Ms Smith. 'Noticing their details, patterns and lifestyles so that you can think 'how I can better provide for them'.'
This attention to detail will eventually cultivate long-term service relationships with residents, said Ms Smith, and is something that will leave residents feeling 'relaxed and comfortable'.
But these soft skills, which could be as simple as remembering a resident's birthday or their preference for tea, often take years to cultivate, said Ms Smith.
SC Global's long-term plan is to send more of its staff for such training.
These skills, she said, will allow SC Global to build up a system of consistently good service.
This will be done through regular training sessions conducted by the guild and creating a 'domino chain' of getting trained staff to pass on their skills and knowledge to their colleagues.
Staff will also undergo different variations of the course to expose them to a range of service scenarios. Examples of these variations would include on-the-job training and individual coaching.
Skills, Mr Watson said, will set them apart from other service providers in Asia, which typically do not have a proactive approach towards service.
Having previously worked with international celebrities such as the late Michael Jackson, Mr Watson has been exposed to many different markets.
But he said Singapore could be a challenging market to serve in because of its multi-cultural environment.
This means staff will need to adapt their services to suit the individual nuances of each culture.
'For example, the English are a little stiff and formal and have to stop for afternoon tea. And if you have an American guest, as long as you've got tomato ketchup on the table you're fine,' said Mr Watson.
Concierge staff during training at The Marq. SC Global is going the extra mile, by training its property management staff to act and think intuitively when serving residents at its properties. -- PHOTO: SC GLOBAL
SC Global to provide 'butler-style' service
By Cheryl Lim
FIVE-STAR service, once exclusive to private households, hotels, castles and palaces, will be now available at all of developer SC Global's properties such as Hilltops along Cairnhill Circle.
This swish service will also be on offer at the properties the firm manages, including the Lincoln Modern at Newton.
SC Global is going the extra mile, by training its property management staff to act and think intuitively when serving residents at its properties.
Concierge service will be available at SC Global's four properties while the properties the group manages will have off-site concierge service available.
About 25 frontline staff including condo managers, concierges and technicians from all its properties have undergone a customised six-day programme conducted by Mr Robert Watson, trainer and managing director of the prestigious Guild of Professional English Butlers.
SC Global marketing communications manager Sarah-Jane Smith said exceptional service comes from being observant and picking up on the smaller details.
'(The training will cover) what are the things you think about when you are talking to someone so that you can provide exceptional service,' said Ms Smith. 'Noticing their details, patterns and lifestyles so that you can think 'how I can better provide for them'.'
This attention to detail will eventually cultivate long-term service relationships with residents, said Ms Smith, and is something that will leave residents feeling 'relaxed and comfortable'.
But these soft skills, which could be as simple as remembering a resident's birthday or their preference for tea, often take years to cultivate, said Ms Smith.
SC Global's long-term plan is to send more of its staff for such training.
These skills, she said, will allow SC Global to build up a system of consistently good service.
This will be done through regular training sessions conducted by the guild and creating a 'domino chain' of getting trained staff to pass on their skills and knowledge to their colleagues.
Staff will also undergo different variations of the course to expose them to a range of service scenarios. Examples of these variations would include on-the-job training and individual coaching.
Skills, Mr Watson said, will set them apart from other service providers in Asia, which typically do not have a proactive approach towards service.
Having previously worked with international celebrities such as the late Michael Jackson, Mr Watson has been exposed to many different markets.
But he said Singapore could be a challenging market to serve in because of its multi-cultural environment.
This means staff will need to adapt their services to suit the individual nuances of each culture.
'For example, the English are a little stiff and formal and have to stop for afternoon tea. And if you have an American guest, as long as you've got tomato ketchup on the table you're fine,' said Mr Watson.
Concierge staff during training at The Marq. SC Global is going the extra mile, by training its property management staff to act and think intuitively when serving residents at its properties. -- PHOTO: SC GLOBAL
ST : Upcoming property launches to test cooling measures
24 Jan 2011,
Upcoming property launches to test cooling measures
Demand is still there, at least for smaller units, say experts
By Esther Teo
THE impact of the latest property cooling measures could soon be tested as developers and marketing agents muster interest for three new property launches.
Far East Organization has been marketing The Cape, its 76-unit development at Amber Road, as 'the pairing of cosmopolitan sensibilities with idyllic sensitivities'.
At the District 15 freehold property - right next to the firm's Silversea project - a one-bedroom unit of 600 sq ft to 650 sq ft is going for about $1.2 million, based on indications from some property agents. This would work out to about $2,000 per sq ft (psf).
A two-bedroom unit would set a buyer back by about $1.7 million. The prices will probably be subject to change until the project goes on sale - the timing is expected to be around Chinese New Year.
Far East is offering some early-bird buyers a 5 per cent cash rebate, which will be paid out only when the project is completed. The Straits Times understands this move is in line with the company's aim of building a stronger base of long-term buyers.
Also coming up is La Fleur, a 'shoebox' development in Geylang, which is expected to hold a preview today. All the 58 units are one-bedders, with sizes ranging from 409 sq ft to 646 sq ft. Prices start at an estimated $490,000 - or roughly $1,200 psf - based on marketing material obtained by The Straits Times.
The District 14 project, which consists of two eight-storey blocks, is being developed by Teambuild Properties.
Over at Balestier, Okio Residences by SDB Asia - a subsidiary of Malaysia-listed Selangor Dredging - will be previewed on Thursday.
Half of the 104 units in the 18-storey freehold project are shoebox apartments of less than 500 sq ft. It also has two-bedroom units, with sizes ranging from 570 sq ft to 667 sq ft, and four penthouses that go up to 1,098 sq ft.
Agents said a 420 sq ft apartment would cost an estimated $650,000.
Separately, at d'Leedon, CapitaLand's 1,715-unit project at Farrer Road, the showroom was reopened to the public over the weekend after the company sold 232 of the 250 units released during the initial launch last month.
Experts said projects with smaller units were still being launched because the purchase price of such units remained manageable for buyers.
Mr Colin Tan, a research and consultancy director at Chesterton Suntec International, said that even though buying sentiment had been affected by the cooling measures, there was still demand from home buyers.
'Developers can't push sales and prices at the same time - something has got to give. But demand is still there, so it's up to the developers to be creative in enticing buyers,' he noted.
esthert@sph.com.sg
Upcoming property launches to test cooling measures
Demand is still there, at least for smaller units, say experts
By Esther Teo
THE impact of the latest property cooling measures could soon be tested as developers and marketing agents muster interest for three new property launches.
Far East Organization has been marketing The Cape, its 76-unit development at Amber Road, as 'the pairing of cosmopolitan sensibilities with idyllic sensitivities'.
At the District 15 freehold property - right next to the firm's Silversea project - a one-bedroom unit of 600 sq ft to 650 sq ft is going for about $1.2 million, based on indications from some property agents. This would work out to about $2,000 per sq ft (psf).
A two-bedroom unit would set a buyer back by about $1.7 million. The prices will probably be subject to change until the project goes on sale - the timing is expected to be around Chinese New Year.
Far East is offering some early-bird buyers a 5 per cent cash rebate, which will be paid out only when the project is completed. The Straits Times understands this move is in line with the company's aim of building a stronger base of long-term buyers.
Also coming up is La Fleur, a 'shoebox' development in Geylang, which is expected to hold a preview today. All the 58 units are one-bedders, with sizes ranging from 409 sq ft to 646 sq ft. Prices start at an estimated $490,000 - or roughly $1,200 psf - based on marketing material obtained by The Straits Times.
The District 14 project, which consists of two eight-storey blocks, is being developed by Teambuild Properties.
Over at Balestier, Okio Residences by SDB Asia - a subsidiary of Malaysia-listed Selangor Dredging - will be previewed on Thursday.
Half of the 104 units in the 18-storey freehold project are shoebox apartments of less than 500 sq ft. It also has two-bedroom units, with sizes ranging from 570 sq ft to 667 sq ft, and four penthouses that go up to 1,098 sq ft.
Agents said a 420 sq ft apartment would cost an estimated $650,000.
Separately, at d'Leedon, CapitaLand's 1,715-unit project at Farrer Road, the showroom was reopened to the public over the weekend after the company sold 232 of the 250 units released during the initial launch last month.
Experts said projects with smaller units were still being launched because the purchase price of such units remained manageable for buyers.
Mr Colin Tan, a research and consultancy director at Chesterton Suntec International, said that even though buying sentiment had been affected by the cooling measures, there was still demand from home buyers.
'Developers can't push sales and prices at the same time - something has got to give. But demand is still there, so it's up to the developers to be creative in enticing buyers,' he noted.
esthert@sph.com.sg
ST : Property curbs for more Chinese cities
24 Jan 2011,
Property curbs for more Chinese cities
Home buyers in second- and third-tier cities to be reined in
BEIJING: China is to extend its curbs on property purchases to second- and third- tier cities, it was reported yesterday, as it rolls out more measures to cap soaring housing prices.
The authorities have drawn up a list of cities - among them Qingdao and Jinan - that will have to implement the limits, the Chongqing Evening News quoted an unnamed high-level official at the Ministry of Housing and Urban-Rural Development as saying. There is no formal definition of a second-tier city. A city with at least four million people, fast-growing purchasing power, good growth numbers, developed infrastructure, or a combination of these factors, can be deemed second-tier. Most provincial capitals such as Jinan and Harbin are considered third-tier cities.
The latest curbs come after top-tier cities such as Beijing and Shanghai have issued property purchase limits.
Beijing was the first to introduce tough measures when it barred families from buying more than one home in May last year. Shanghai followed suit in October.
According to yesterday's report, 16 cities have issued such regulations - one of several measures aimed at cooling China's heated property market.
The government has also raised minimum downpayments needed for property transactions to at least 30 per cent, and the central bank has increased interest rates twice since October last year.
It has also raised the amount of money that banks must keep in reserve, in a bid to curb lending.
However, property prices have stayed stubbornly high, posting their fourth straight month-on-month rise last month, even though December is usually a slow month for home sales.
Shanghai and Chongqing have already announced that they will introduce a property tax to curb speculation so as to increase the supply of affordable housing.
Shanghai, China's richest city, is expected to impose the tax only on those buying new homes, while Chongqing will impose it on those buying expensive residential units, local reports said.
Analysts have blamed the government's massive stimulus measures launched to combat the financial crisis in late 2008 for flooding the market with liquidity that has led to rising property prices and inflation.
Meanwhile, new regulations aimed at ending illegal forced demolitions came into effect last Friday.
The rules seek to reduce disputes over the expropriation and demolition of people's homes to make way for new buildings, the official Xinhua news agency reported late on Saturday.
Under the rules, violence or coercion cannot be used to evict homeowners.
If the government authorities cannot reach an agreement with residents over expropriation or compensation for their property, demolitions can be carried out only after the local court has reviewed and approved them.
The previous rules had authorised local governments to enforce demolitions, the report said, quoting unnamed officials at the Ministry of Housing and Urban-Rural Development and the State Council, China's Cabinet.
Land disputes have become China's most volatile social problem as officials and developers seek to cash in on the property boom, sometimes forcing people out of their homes without proper compensation.
According to figures released by the China Academy of Social Sciences, a top government think-tank, fights over land account for 65 per cent of rural 'mass conflicts', and the problem is prevalent in cities too.
AGENCE FRANCE-PRESSE, BLOOMBERG, REUTERS
Property curbs for more Chinese cities
Home buyers in second- and third-tier cities to be reined in
BEIJING: China is to extend its curbs on property purchases to second- and third- tier cities, it was reported yesterday, as it rolls out more measures to cap soaring housing prices.
The authorities have drawn up a list of cities - among them Qingdao and Jinan - that will have to implement the limits, the Chongqing Evening News quoted an unnamed high-level official at the Ministry of Housing and Urban-Rural Development as saying. There is no formal definition of a second-tier city. A city with at least four million people, fast-growing purchasing power, good growth numbers, developed infrastructure, or a combination of these factors, can be deemed second-tier. Most provincial capitals such as Jinan and Harbin are considered third-tier cities.
The latest curbs come after top-tier cities such as Beijing and Shanghai have issued property purchase limits.
Beijing was the first to introduce tough measures when it barred families from buying more than one home in May last year. Shanghai followed suit in October.
According to yesterday's report, 16 cities have issued such regulations - one of several measures aimed at cooling China's heated property market.
The government has also raised minimum downpayments needed for property transactions to at least 30 per cent, and the central bank has increased interest rates twice since October last year.
It has also raised the amount of money that banks must keep in reserve, in a bid to curb lending.
However, property prices have stayed stubbornly high, posting their fourth straight month-on-month rise last month, even though December is usually a slow month for home sales.
Shanghai and Chongqing have already announced that they will introduce a property tax to curb speculation so as to increase the supply of affordable housing.
Shanghai, China's richest city, is expected to impose the tax only on those buying new homes, while Chongqing will impose it on those buying expensive residential units, local reports said.
Analysts have blamed the government's massive stimulus measures launched to combat the financial crisis in late 2008 for flooding the market with liquidity that has led to rising property prices and inflation.
Meanwhile, new regulations aimed at ending illegal forced demolitions came into effect last Friday.
The rules seek to reduce disputes over the expropriation and demolition of people's homes to make way for new buildings, the official Xinhua news agency reported late on Saturday.
Under the rules, violence or coercion cannot be used to evict homeowners.
If the government authorities cannot reach an agreement with residents over expropriation or compensation for their property, demolitions can be carried out only after the local court has reviewed and approved them.
The previous rules had authorised local governments to enforce demolitions, the report said, quoting unnamed officials at the Ministry of Housing and Urban-Rural Development and the State Council, China's Cabinet.
Land disputes have become China's most volatile social problem as officials and developers seek to cash in on the property boom, sometimes forcing people out of their homes without proper compensation.
According to figures released by the China Academy of Social Sciences, a top government think-tank, fights over land account for 65 per cent of rural 'mass conflicts', and the problem is prevalent in cities too.
AGENCE FRANCE-PRESSE, BLOOMBERG, REUTERS
ST : How to invest in a non-residential property
23 Jan 2011,
How to invest in a non-residential property
A clear budget and a firm grasp of how much one can sensibly borrow are essential before deciding on which commercial or industrial property to buy.
It is also important for an investor to visit the site to ensure that he is comfortable with the existing tenant mix and to choose, if possible, a trade that he is already familiar with. This will allow him to use the unit for his own purposes should the economy head south.
Experts say that while sophistication is not a prerequisite, investors will need to arm themselves with a good understanding of the market dynamics and practices.
These tend to differ from those of the residential sector, since the commercial and industrial sector is more specialised.
International Property Advisor chief executive Ku Swee Yong said that once an investor is convinced that he has the appetite for these segments, he should find a specialised agent to assist him.
'You would not only require a trustworthy agent to guide you to the appropriate properties, but also to assist with the rentals after you have invested,' he said.
Other professionals - such as specialised consultants or brokers - can also help provide comparative advice on which sector might be most suitable for your budget and assist in obtaining financing assistance.
In addition, investors should also determine the price-tier they are keen on investing in, as the pool of potential tenants will be different for each.
DTZ's South-east Asia research head, Ms Chua Chor Hoon, added that investors with no prior knowledge about the segment can read up more on economic and property market reports to learn more about current and future trends.
They can also visit the properties and their surroundings, ascertain the rental demand and possible rental returns, recent transacted price and historical trends. They can also speak to the banks on how much they can borrow and applicable mortgage rates, she added.
Investors should also find out the different subclassifications for each sector - especially for industrial properties - which determine the uses that are allowed for the space. This is important as it will determine the rentals achieved.
It should be noted that unlike the residential sector - which has the population as its potential demand base - commercial and industrial properties, being business premises, are more susceptible to economic cycles and might be more adversely affected during a recession.
How to invest in a non-residential property
A clear budget and a firm grasp of how much one can sensibly borrow are essential before deciding on which commercial or industrial property to buy.
It is also important for an investor to visit the site to ensure that he is comfortable with the existing tenant mix and to choose, if possible, a trade that he is already familiar with. This will allow him to use the unit for his own purposes should the economy head south.
Experts say that while sophistication is not a prerequisite, investors will need to arm themselves with a good understanding of the market dynamics and practices.
These tend to differ from those of the residential sector, since the commercial and industrial sector is more specialised.
International Property Advisor chief executive Ku Swee Yong said that once an investor is convinced that he has the appetite for these segments, he should find a specialised agent to assist him.
'You would not only require a trustworthy agent to guide you to the appropriate properties, but also to assist with the rentals after you have invested,' he said.
Other professionals - such as specialised consultants or brokers - can also help provide comparative advice on which sector might be most suitable for your budget and assist in obtaining financing assistance.
In addition, investors should also determine the price-tier they are keen on investing in, as the pool of potential tenants will be different for each.
DTZ's South-east Asia research head, Ms Chua Chor Hoon, added that investors with no prior knowledge about the segment can read up more on economic and property market reports to learn more about current and future trends.
They can also visit the properties and their surroundings, ascertain the rental demand and possible rental returns, recent transacted price and historical trends. They can also speak to the banks on how much they can borrow and applicable mortgage rates, she added.
Investors should also find out the different subclassifications for each sector - especially for industrial properties - which determine the uses that are allowed for the space. This is important as it will determine the rentals achieved.
It should be noted that unlike the residential sector - which has the population as its potential demand base - commercial and industrial properties, being business premises, are more susceptible to economic cycles and might be more adversely affected during a recession.
ST : Lakeside city centre planned for Jurong
23 Jan 2011,
Lakeside city centre planned for Jurong
By Rachel Chang
A new city centre in the west will take shape by Jurong Lake over the next decade under the Remaking Our Heartland programme.
To be called Jurong Gateway, it will span an area the size of 70 football fields and be the largest commercial hub outside the Central Business District.
It will be home to the Jurong General Hospital and Community Hospital, a mall with an Olympic-sized ice-skating rink, and office facilities.
The existing heartland neighbourhoods in Jurong are also set for a thorough facelift: a 24km network of pedestrian and cycling tracks linking up the region will be completed in five years.
A Bukit Batok resident will then have a through path to the Jurong East MRT station - one which crosses the Pan-Island Expressway - and he or she will even be able to make it to the Bukit Timah Nature Reserve.
Two new iconic Housing Board estates in the mould of Pinnacle@Duxton will also spring up alongside Bukit Batok Avenue 1, providing some 1,200 homes for new families or upgraders.
All in all, the plan to 'remake' the Jurong Lake area aims to propel the region beyond its industrial reputation into a destination neighbourhood.
Unveiling details of the remaking plans yesterday, Minister in the Prime Minister's Office Lim Boon Heng, an MP in Jurong GRC, said: 'There was a time when nobody believed we could transform the Jurong area from swamps to a thriving industrial area.'
He was referring to the early days of Singapore's independence in the 1960s, when multinational corporations were invited to set up 'pioneer' industries in Jurong, a move that was seen as make-or-break for the fledgling nation's economy.
'Not only have we proven all the critics wrong, but we are now taking it one step further,' he said.
The makeover is part of the $1 billion second phase of the Housing Board's Remaking Our Heartland programme to rejuvenate mature estates over the next five years. The other two towns selected are Hougang and East Coast.
The plans for Jurong Lake, the third and last to be revealed by the Housing Board, combine the need to rejuvenate Jurong's old estates with the impetus to develop the swathes of vacant land in its vicinity for a younger generation of home owners.
All 10 of its existing neighbourhood centres, from Boon Lay to Taman Jurong, are slated for a variety of changes such as new pavilions, better lighting, playgrounds and sports facilities. Two new parks near Jurong East MRT station and at Toh Guan will boast attractions such as dog runs and plant nurseries.
The waterfront facilities available at Lakeside, Pandan Reservoir and Jurong Lake will include restaurants and hotels and will cater for activities such as water sports.
Mr Lim later told reporters he hoped the new hotels would make Jurong, an industrial town with many factories and offices, a one-stop location for foreigners here on business. 'With the beautiful scenery of Jurong Lake, I'm sure the hotels will give the hotels in town a run for their money,' he said.
The project's aim is to increase the quality of life for Jurong residents, he added, but he also hoped it would not lead to a rush to move into the area that unnecessarily pushed up property prices.
Quality assurance engineer Ng Kian Hoo, 40, said he felt that his Jurong East neighbourhood, about 30 years old, was 'overdue' for a facelift.
'I'm happiest with the Jurong Gateway regional centre. When that is up, the value of my flat will increase,' he said.
The public exhibition, in a white tent next to Jurong East MRT station, will be open until Wednesday.
Lakeside city centre planned for Jurong
By Rachel Chang
A new city centre in the west will take shape by Jurong Lake over the next decade under the Remaking Our Heartland programme.
To be called Jurong Gateway, it will span an area the size of 70 football fields and be the largest commercial hub outside the Central Business District.
It will be home to the Jurong General Hospital and Community Hospital, a mall with an Olympic-sized ice-skating rink, and office facilities.
The existing heartland neighbourhoods in Jurong are also set for a thorough facelift: a 24km network of pedestrian and cycling tracks linking up the region will be completed in five years.
A Bukit Batok resident will then have a through path to the Jurong East MRT station - one which crosses the Pan-Island Expressway - and he or she will even be able to make it to the Bukit Timah Nature Reserve.
Two new iconic Housing Board estates in the mould of Pinnacle@Duxton will also spring up alongside Bukit Batok Avenue 1, providing some 1,200 homes for new families or upgraders.
All in all, the plan to 'remake' the Jurong Lake area aims to propel the region beyond its industrial reputation into a destination neighbourhood.
Unveiling details of the remaking plans yesterday, Minister in the Prime Minister's Office Lim Boon Heng, an MP in Jurong GRC, said: 'There was a time when nobody believed we could transform the Jurong area from swamps to a thriving industrial area.'
He was referring to the early days of Singapore's independence in the 1960s, when multinational corporations were invited to set up 'pioneer' industries in Jurong, a move that was seen as make-or-break for the fledgling nation's economy.
'Not only have we proven all the critics wrong, but we are now taking it one step further,' he said.
The makeover is part of the $1 billion second phase of the Housing Board's Remaking Our Heartland programme to rejuvenate mature estates over the next five years. The other two towns selected are Hougang and East Coast.
The plans for Jurong Lake, the third and last to be revealed by the Housing Board, combine the need to rejuvenate Jurong's old estates with the impetus to develop the swathes of vacant land in its vicinity for a younger generation of home owners.
All 10 of its existing neighbourhood centres, from Boon Lay to Taman Jurong, are slated for a variety of changes such as new pavilions, better lighting, playgrounds and sports facilities. Two new parks near Jurong East MRT station and at Toh Guan will boast attractions such as dog runs and plant nurseries.
The waterfront facilities available at Lakeside, Pandan Reservoir and Jurong Lake will include restaurants and hotels and will cater for activities such as water sports.
Mr Lim later told reporters he hoped the new hotels would make Jurong, an industrial town with many factories and offices, a one-stop location for foreigners here on business. 'With the beautiful scenery of Jurong Lake, I'm sure the hotels will give the hotels in town a run for their money,' he said.
The project's aim is to increase the quality of life for Jurong residents, he added, but he also hoped it would not lead to a rush to move into the area that unnecessarily pushed up property prices.
Quality assurance engineer Ng Kian Hoo, 40, said he felt that his Jurong East neighbourhood, about 30 years old, was 'overdue' for a facelift.
'I'm happiest with the Jurong Gateway regional centre. When that is up, the value of my flat will increase,' he said.
The public exhibition, in a white tent next to Jurong East MRT station, will be open until Wednesday.
ST : How about real estate investment trusts?
23 Jan 2011,
How about real estate investment trusts?
Real estate investment trusts (Reits) - which invest in a portfolio of properties and get income from rents - also offer investors access to the industrial and commercial market without buying bricks and mortar.
Reits may have a portfolio of offices or malls, such as CapitaCommercial Trust, K-Reit Asia, CapitaMall Trust and Suntec Reit. They are listed on the Singapore Exchange.
Experts said, however, there are significant differences between investing in a listed industrial or commercial Reit and a physical property of that type.
Colliers International director of research and advisory Tay Huey Ying said that the advantages of investing in a physical property include property rights ownership and pride of ownership.
A physical property is a visible asset and would give the investor a better sense of stability and security. It is also the preferred form of bequeathing wealth to the next generation in traditional families, she added.
'By owning the property, the investor is given the exclusive right to use the property while Reit investors hold only a share of the portfolio of properties and do not have exclusive rights to it.'
There is, however, a downside to the investment involving the larger capital needed to be stumped up and the more active role needed in the property's management and repair, said Mr Ong Kah Seng, Cushman & Wakefield's senior manager for Asia-Pacific research.
Direct property investment usually requires a higher investment sum owing to the indivisibility of properties, unlike Reits, and higher transactional costs such as legal and agency fees, experts added.
There is also less potential for diversification. The high investment outlay and location-specific characteristics mean that retail investors can afford to purchase only a limited number of properties, Colliers' Ms Tay said.
She added that Reits, however, allow the manager to acquire a variety of properties in different locations - including cross-border locations - allowing it to diversify the Reit's risks more effectively.
How about real estate investment trusts?
Real estate investment trusts (Reits) - which invest in a portfolio of properties and get income from rents - also offer investors access to the industrial and commercial market without buying bricks and mortar.
Reits may have a portfolio of offices or malls, such as CapitaCommercial Trust, K-Reit Asia, CapitaMall Trust and Suntec Reit. They are listed on the Singapore Exchange.
Experts said, however, there are significant differences between investing in a listed industrial or commercial Reit and a physical property of that type.
Colliers International director of research and advisory Tay Huey Ying said that the advantages of investing in a physical property include property rights ownership and pride of ownership.
A physical property is a visible asset and would give the investor a better sense of stability and security. It is also the preferred form of bequeathing wealth to the next generation in traditional families, she added.
'By owning the property, the investor is given the exclusive right to use the property while Reit investors hold only a share of the portfolio of properties and do not have exclusive rights to it.'
There is, however, a downside to the investment involving the larger capital needed to be stumped up and the more active role needed in the property's management and repair, said Mr Ong Kah Seng, Cushman & Wakefield's senior manager for Asia-Pacific research.
Direct property investment usually requires a higher investment sum owing to the indivisibility of properties, unlike Reits, and higher transactional costs such as legal and agency fees, experts added.
There is also less potential for diversification. The high investment outlay and location-specific characteristics mean that retail investors can afford to purchase only a limited number of properties, Colliers' Ms Tay said.
She added that Reits, however, allow the manager to acquire a variety of properties in different locations - including cross-border locations - allowing it to diversify the Reit's risks more effectively.
ST : Property investors starting to look overseas
21 Jan 2011,
Property investors starting to look overseas
Interest in foreign markets on the rise in the wake of recent cooling measures, say experts
By Cheryl Lim
A PASSION by investors here for buying into Singapore's sizzling residential property market may be giving way to a foreign affair, say some property analysts.
They suggest that in the wake of the Government's latest round of property market cooling measures, some investors may turn their attention abroad instead.
A stronger Singapore dollar is giving them more buying power in many overseas markets.
Investors make up a sizeable part of the buying market here. Deterred by a far higher stamp duty on sellers and the need to stump more cash up front, these investors are looking to markets as far afield as Switzerland.
This is in addition to projects in foreign markets such as Australia, Britain and Malaysia, which have long been widely promoted in Singapore.
A recent spate of sales exhibitors here have been marketing projects in Japan, Switzerland and New York.
Buyers who leave a foreign property to be rented out by local professionals typically pay management fees of between 10 per cent and 40 per cent of total annual rentals.
DTZ's South-east Asia research head Chua Chor Hoon said a surge in interest here in such properties signals more opportunities for foreign developers in the Singapore market.
'Residential prices are at their peak and the Government has been intervening. So more Singaporeans are looking at non-residential assets or looking to invest in foreign properties,' she said.
Sales of such projects are small compared to launches of other local developments, but developers are promising rental yields of between 6 per cent and 9 per cent.
Developers of a Swiss project in the alpine town of Nendaz said while no sales were closed at its pre-sale cocktail session on Thursday, there has been 'strong buyer interest' in the development. Prices for a 592 sq ft chalet-style apartment start from 369,000 Swiss francs (S$493,000).
Investors were also keen on units at the Shiki Niseko ski resort in Japan. A sales exhibition held last weekend saw 100 walk-in participants. About 26 of the units were sold in Singapore, with 90 per cent of buyers purchasing for investment.
The freehold development features 69 fully furnished one-, two- and three-bedroom units and two-bedroom penthouses ranging between 632 sq ft and 1,636 sq ft, with prices starting from about US$600,000 (S$773,000) for a one-bedroom unit.
One buyer, who declined to be named, bought units at both the Swiss and Japanese projects. He also has two London apartments for his children to live in.
Although he purchased those properties for personal reasons, he agreed that buying property overseas would be an attractive option for any investor.
'If you hold it long enough, property will appreciate... when we bought the London apartments, we never considered whether prices would appreciate. Now after 10 years, if we can sell it, the profit we'll make will be more than enough to cover my children's education fees,' he said.
But such rewards are not without risks. In 2001, about 90 Singaporeans paid $16,000 for units at Villa Temasek development in Bintan, but the developer disappeared before work was completed.
And in 1996, more than 40 buyers in Singapore and Malaysia lost between US$54,000 and US$98,000 when an 816-unit condominium project in Bangalore was aborted.
DTZ's Ms Chua highlighted other risks including a drop in the property's value in Singdollar terms if the country's currency depreciates against the Singdollar.
She added that investors also should be aware of the various rules and restrictions overseas before signing any deal.
International property investment company IP Global's managing director Tim Murphy agreed and said property is like any other investment product.
Investors need to do research before ploughing their money into it, he said.
'People need to know what the cost and rental rates are going to be, they need to find out if they are getting the best mortgages. They should also be a bit sceptical of locations, they're not always fantastic,' he said.
cherlim@sph.com.sg
Property investors starting to look overseas
Interest in foreign markets on the rise in the wake of recent cooling measures, say experts
By Cheryl Lim
A PASSION by investors here for buying into Singapore's sizzling residential property market may be giving way to a foreign affair, say some property analysts.
They suggest that in the wake of the Government's latest round of property market cooling measures, some investors may turn their attention abroad instead.
A stronger Singapore dollar is giving them more buying power in many overseas markets.
Investors make up a sizeable part of the buying market here. Deterred by a far higher stamp duty on sellers and the need to stump more cash up front, these investors are looking to markets as far afield as Switzerland.
This is in addition to projects in foreign markets such as Australia, Britain and Malaysia, which have long been widely promoted in Singapore.
A recent spate of sales exhibitors here have been marketing projects in Japan, Switzerland and New York.
Buyers who leave a foreign property to be rented out by local professionals typically pay management fees of between 10 per cent and 40 per cent of total annual rentals.
DTZ's South-east Asia research head Chua Chor Hoon said a surge in interest here in such properties signals more opportunities for foreign developers in the Singapore market.
'Residential prices are at their peak and the Government has been intervening. So more Singaporeans are looking at non-residential assets or looking to invest in foreign properties,' she said.
Sales of such projects are small compared to launches of other local developments, but developers are promising rental yields of between 6 per cent and 9 per cent.
Developers of a Swiss project in the alpine town of Nendaz said while no sales were closed at its pre-sale cocktail session on Thursday, there has been 'strong buyer interest' in the development. Prices for a 592 sq ft chalet-style apartment start from 369,000 Swiss francs (S$493,000).
Investors were also keen on units at the Shiki Niseko ski resort in Japan. A sales exhibition held last weekend saw 100 walk-in participants. About 26 of the units were sold in Singapore, with 90 per cent of buyers purchasing for investment.
The freehold development features 69 fully furnished one-, two- and three-bedroom units and two-bedroom penthouses ranging between 632 sq ft and 1,636 sq ft, with prices starting from about US$600,000 (S$773,000) for a one-bedroom unit.
One buyer, who declined to be named, bought units at both the Swiss and Japanese projects. He also has two London apartments for his children to live in.
Although he purchased those properties for personal reasons, he agreed that buying property overseas would be an attractive option for any investor.
'If you hold it long enough, property will appreciate... when we bought the London apartments, we never considered whether prices would appreciate. Now after 10 years, if we can sell it, the profit we'll make will be more than enough to cover my children's education fees,' he said.
But such rewards are not without risks. In 2001, about 90 Singaporeans paid $16,000 for units at Villa Temasek development in Bintan, but the developer disappeared before work was completed.
And in 1996, more than 40 buyers in Singapore and Malaysia lost between US$54,000 and US$98,000 when an 816-unit condominium project in Bangalore was aborted.
DTZ's Ms Chua highlighted other risks including a drop in the property's value in Singdollar terms if the country's currency depreciates against the Singdollar.
She added that investors also should be aware of the various rules and restrictions overseas before signing any deal.
International property investment company IP Global's managing director Tim Murphy agreed and said property is like any other investment product.
Investors need to do research before ploughing their money into it, he said.
'People need to know what the cost and rental rates are going to be, they need to find out if they are getting the best mortgages. They should also be a bit sceptical of locations, they're not always fantastic,' he said.
cherlim@sph.com.sg
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