ST : Nov inflation up slightly

Dec 23, 2009
Nov inflation up slightly
By Fiona Chan



Housing cost went up by 0.2 per cent in November on account of higher gas tariffs. -- ST PHOTO: ALPHONSUS CHERN

INFLATION in Singapore stayed largely flat last month, according to the latest figures released by the Department of Statistics (DOS) on Wednesday.

Consumer prices slid 0.2 per cent in November from a year ago, the eighth straight month of year-on-year decline.

The slip was largely due to the lower cost of electricity and gas tariffs, said DOS. But this was partly offset by higher prices for transport and communication, food, and healthcare.

On a month-on-month basis, the consumer price index (CPI) inched up 0.4 per cent between October and November. Adjusted for seasonal differences, the increase would have been 0.5 per cent.

This follows a 0.6 per cent rise between September and October, an uptrend that looks set to continue into next year, economists said.

Retail rents start to pick up

Retail rents start to pick up
Dec 22, 2009 - PropertyGuru.com.sg

Retail rents in the prime Orchard Road and suburban malls are creeping up in the last quarter, after declining for 4 straight quarters.

A report by DTZ Research showed the gross rents of prime first-storey retail space in Scotts and Orchard roads increased 1 percent to $39.70 psf per month, after it dropped 7.3 percent over the past four quarters.

In the suburban areas, retail rents escalated after it stabilized in the previous months, while rents in other areas such as Great World City and Bugis Junction continue to fall. Quarter-on-quarter prime first-storey retail rents in suburban malls increased 1.5 percent to $33.50 psf per month, after falling 2.1 percent from its peak in the third quarter last year.

Ms. Chua Chor Hoon, DTZ South-east Asia Research head, said the leasing activity has increased, as retailers gain more confidence due to the economic recovery. "There is strong demand for prime first-storey space, evident from the little availability and speed at which they are being taken up, despite the amount of new space that has come up along Orchard Road.”

DTZ estimates that 2.6 million square feet of new retail space, including Mandarin Gallery and 313@Somerset, were added to the supply this year. This is the highest new stock ever seen. Ms. Chua expects that retail rents in Scotts and Orchard Road, and the suburban areas will continue to increase by 2 to 7 percent in 2010.

The new stocks of retail spaces in Orchard Road are expected to reach 165,000 square feet next year, nearly 7 percent of the almost 2.4 million square feet of new retail space expected to be available next year. Most of the new supply outside the city areas will be concentrated in Serangoon Central, Resorts World Sentosa and Nex.

Mayfair Gardens up for en bloc sale

Mayfair Gardens up for en bloc sale
Dec 22, 2009 - PropertyGuru.com.sg

There are more signs of life in the en bloc market, with owners of Mayfair Gardens located in Rifle Range Road being the most recent to put their estate up for sale.

Mayfair residents want $210 million or more for their 99-year leasehold plot, which accounts to around $857 per square foot of potential gross floor area.

That would permit owners of the development with 124 units to earn between $1 million and $2.1 million each, depending on the unit’s size.

In March, only about 80 percent of owners supported a sale but they preferred to hold back until the market starts to pick up prior to their launching.

Their price tag of $210 million also includes the topping of the site's lease to 99 years and an estimated development charge of $40 million.

The marketing agent for Mayfair Gardens is CKS Property Consultants, which also brokered the collective sale of Dragon Mansions.

Quest set to explore the Singapore market

Quest set to explore the Singapore market
Dec 22, 2009 - PropertyGuru.com.sg

Quest, a serviced apartment provider based in Australia is interested to break into the Asian market, beginning with Singapore. It has properties in Fiji, New Zealand and Australia.

Paul Constantinou, chairman of Quest, said that Singapore is a ‘priority market’, with its ability to lure both business travelers and investments and its stable economic performance.

“We know the market conditions here and have seen the industry to be a resilient one,” he said, referring to the Ascott Group and Frasers who have also set up in Australia. “The market is now ready for individual players to buy into the industry.”

The business model of Quest operates mainly on a franchised system. Apartments are built by Quest or a developer, and are sold to property trusts and individual investors, who lease it back to Quest for 25 years. Franchisees can buy the rights to manage the serviced apartment.

In Singapore, Quest hopes to associate with land owners and local developers.

Mr. Constantinou sees a rising tide of people who want to get involved in the serviced apartment industry, due to the growing wealth in Asia.

“Based on our own experience of starting out with a mix of company-owned and franchised properties, we found that franchised properties were able to deliver a better bottom line and scored a 15 per cent to 20 per cent better performance,” Mr. Constantinou said.

“The benefits of franchising are that the person who owns the business runs the business and there is certainty of income for the developer. Developers want the surety of income over extended periods of time.”

Currently, Quest owns 128 properties in New Zealand, Australia and Fiji, with 74 franchisees.

Hong Leong unveils lowest HDB loan rates

Hong Leong unveils lowest HDB loan rates
Dec 22, 2009 - PropertyGuru.com.sg

Hong Leong Finance unveiled a new HDB loan package with the lowest rates in town.

The latest offering by the finance company is aimed at one of the hottest segments in the market, with extreme interest in projects like the new flats to be constructed at Queenstown’s Dawson estate.

Last week it unveiled a loan package for the good class bungalow market – the other end of the spectrum.

It now offers HDB buyers with variable rates for loans of $100,000 and above, with financing up to 80 percent, at 1.33 percent for the first year, 2.03 percent for the second, and 2.63 percent for the third.

This package is another step down in rates from last month’s offer of the company, with equivalent loan rates of 2.13 percent for the second year and 2.83 percent for the third.

Hong Leong now provides a borrower looking for a two-year fixed rate loan with a rate of 2.13 percent in the second year, down from 2.63 percent.

By comparison, DBS Bank is offering a two-year fixed rate of 2.9 percent for loans intended for owner-occupied homes that have been completed, with up to 60 percent financing.

According to Hong Leong, the intensifying activity in the HDB market led to more inquiries for loans of HDB homes.

“We anticipate continued growth of our HDB home loans portfolio in 2010, which will be boosted in part by HDB's plans to launch at least one build-to-order project per month to meet the housing demand here,” said President Ian Macdonald.

The company also offers its customers an added sweetener of a $20 Millenium and Copthorne hotels gift voucher for every $100,000 loan.

Customers with small loans have not been left out. Those with loans less than $100,000, and up to 80 percent financing will now be offered a variable rate of 1.93 percent for the first year, and fixed rates from 2.33 percent for over two years.

Opening of Marina Bay IR delayed

Opening of Marina Bay IR delayed
Dec 22, 2009 - PropertyGuru.com.sg

The Marina Bay Sands Integrated Resort will open its first phase of operation by mid-April 2010, instead of February, as earlier announced.

About half of the integrated resort, including the casino and most of the restaurant units, will open by the end of March. The entire $5.5 billion IR project is expected to be completed by the end of next year, said Sheldon Adelson, chairman of Las Vegas Sands.

Job training for newly hired staff will only begin in January, he said. About 12,000 to 14,000 people are needed to run the entire IR. 85 percent of hired employees are Singaporeans.

The Marina Bay Sands, one of two casinos being constructed in Singapore, was scheduled to start operating this month. However, Mr. Adelson said in July that the opening of the casino would be postponed until February next year. But, heavy rains and bankruptcy of some of its sub-contractors have further pushed back its opening, said Mr. Adelson.

Mr. Adelson told reporters on Monday that it was only a “minor delay”. “We are in this not for a day or a week, but for decades. So the delay of a day or a week is nothing. If we are going to do it, we are going to do it right.”

The other casino project, Resorts World at Sentosa, is expected to open its first phase by Q1 of next year, said a spokesman from project developer Genting International. When asked about the profit projection for the said project, Mr. Adelson said the company expects around US$1 billion annually before deducting taxes, interest, amortisations and depreciation expenses.

Asian stocks closed mixed and HK property market hit

Asian stocks closed mixed and HK property market hit
Dec 22, 2009 - PropertyGuru.com.sg

Asian markets ended Monday on a mixed note with major indexes posting reasonable moves in pre-holiday trade, as concerns over the cooling measures of the property market weighed on Hong Kong.

"We would expect the remainder of the week to see similar, small moves in Asian markets," said Richard Hastings, a consumer strategist from Global Hunter Securities.

HK’s Hang Seng Index ended 1.1 percent lower; South Korea's Kospi Composite lost 0. 2 percent; New Zealand's NZX-50 closed 0.1 percent lower; and Australia's S&P/ASX 200 dropped 0.3 percent. But Taiwan's main index and Japan's Nikkei 225 both added 0.4 percent, while the Shanghai Composite rose 0.3 percent.

Among the regional markets, India's Sensex lost 0.3 percent, Philippine shares ended up 0.1 percent and Singapore's Straits Times Index closed with 0.4 percent.

Hong Kong shares slipped as concerns over the government’s cooling measures on the property market continued to weigh on real estate developers and banking sectors. This followed China’s announcement of a new rule, requiring a 50 percent down payment for land purchases by all property developers.

Asian markets weakened last week amid rising concerns over property-cooling measures in Beijing, and due to "renewed global crisis fears prompted by the sovereign downgrade of Greece and warnings about potential future downgrades of Spain, the U.K. and the U.S.," said Martin Hennecke, the associate director of Tyche Group Ltd. in Hong Kong. "This sovereign debt crisis is ... only getting started and this clearly warrants caution for all investors, in all markets."

Even so, the stock market in Asia "may not be the worst place to have exposure to", particularly China’s undervaluation of the yuan, the low budget deficit and low sovereign debt of the country, and the economic recovery, said Hennecke.

In Australia, the stock market closed lower after finding support from strength in the resource stocks. Traders "seemed happy to push the market a bit higher on the back of reasonable leads from the U.S. session, but momentum waned in the afternoon and sellers took control" ahead of the holiday season, said Cameron Peacock, a market analyst from IG Markets in Melbourne.

ST : Rents end year-long fall

Dec 22, 2009
Rents end year-long fall
Most retail property watchers bullish about next year as economy improves
By Esther Teo



Leasing activity has increased as retailers gain more confidence along with the economic recovery. -- ST PHOTO: DESMOND WEE

IN KEEPING with the festive decorations lighting up the prime Orchard retail belt, landlords on the famous strip have just received news bound to brighten the gloomy mood cast by the downturn.

After four straight quarters of decline, rents for first-storey Orchard Road and Scotts Road retail space inched up 1 per cent to $39.70 per sq ft (psf), a month after falling 7.3 per cent since the third quarter of last year.

Rents in suburban areas seem to be stabilising as well, buoyed by the upswing in the economy, property reports suggest.

The report, from DTZ Research, also said prime first-storey gross rents in suburban areas rose 1.5 per cent quarter-on-quarter to $33.50 psf per month.

However, rents in fringe city areas such as Great World City and Bugis Junction continued to fall. These malls miss out on local residents, who patronise suburban malls, and the tourist crowd that heads to Orchard, said DTZ South-east Asia research head Chua Chor Hoon.

She added that leasing activity has increased as retailers gain more confidence along with the economic recovery: 'There is strong demand for prime first-storey space, evident from the little availability and speed at which they are taken up, despite the amount of new space that has come up along Orchard Road.'

ST : What's opening

Dec 22, 2009
What's opening

By mid-April: About 1,000 hotel rooms, parts of the convention centre and shopping area, restaurants (including three celebrity chef eateries) and casino


By mid-June (60 days later): The rest of the resort, including the Sands Sky Park, with the exception of the Art Science Museum and the two theatres


By September: One theatre


By end-2010: The Art Science Museum and remaining theatre

ST : Marina Sands IR up by Apr

Dec 22, 2009
Marina Sands IR up by Apr
By Jessica Lim



Las Vegas Sands chairman Sheldon Adelson at a meeting with the media yesterday to give an update on the progress of the integrated resort. He was in combative mood at the hour-long session, half of which was dominated by the delay in its opening. -- ST PHOTO: NG SOR LUAN

THE first guests at the Marina Bay Sands integrated resort (IR) will be able to check in, have a meal, attend a convention and gamble by the middle of April next year, at the latest.

That was the new deadline revealed by Las Vegas Sands chairman Sheldon Adelson on Monday.

That means about 1,000 hotel rooms, several eateries (including three of its six celebrity-chef restaurants), part of the convention facilities and the casino floor will have to be ready by then, or the operator risks failing to secure its casino licence.

The rest of the project will open in phases before the end of next year.

Sands training 'early next year'

Mr Adelson also had an update for new employees, some of whom were in the news last week waiting to hear when training for their new jobs as dealers and croupiers would start.

ST : $10,000 fine for forging cert

Dec 21, 2009
$10,000 fine for forging cert
By Khushwant Singh



A former board member of the Intellectual Property Office of Singapore (IPOS), Ho Ying Dat (pictured) was fined $10,000 for forging a certificate when registering as a patent agent in 2002

A FORMER board member of the Intellectual Property Office of Singapore (IPOS) was fined $10,000 for forging a certificate when registering as a patent agent in 2002

Ho Ying Dat, 52, who pleaded guilty on Monday, could have been jailed for up to two years.

His lawyer B. Ganesh said that Ho, a Malaysian and a Singapore permanent resident, had passed the examinations set by the United States Patent and Trademark Office (USPTO) in April 1992.

However, he failed to fulfil the residency qualification of working in the US for a year. The Malaysian returned here as his father was very ill then.

In July 1992, he set up his own patent firm Lawrence Y.D. Ho & Associates, with his wife.

In 2002, IPOS required all patent agents to be licensed. Ho was worried he may not be registered as he did not have certification and decided to forge an USPTA certificate.

ST : Retail rents creeping up

Dec 21, 2009
Retail rents creeping up
By Esther Teo



Retail space in the prime Orchard retail belt and suburban malls have crept up in the last quarter, buoyed by the upswing in the economy, after four consecutive quarters of decline. -- ST PHOTO: ALPHONSUS CHERN

RETAIL space in the prime Orchard retail belt and suburban malls have crept up in the last quarter, buoyed by the upswing in the economy, after four consecutive quarters of decline.

In its report released on Monday, DTZ Research said that gross rents of prime first-storey retail space in Orchard and Scotts roads rose slightly by 1 per cent to $39.70 per sq feet per month, after falling 7.3 per cent in the previous four quarters.

In the suburban areas, retail rents moved up after having stablilised in the previous quarter, while rents in the other city areas like Bugis Junction and Great World City continued to fall. Prime first-storey retail gross rents in suburban malls rose 1.5 per cent quarter-on-quarter to $33.50 per square ft per month, after having fallen 2.1 per cent from the peak of the third quarter last year.

DTZ South-east Asia Research head Ms Chua Chor Hoon said that leasing activity has increased as retailers gain more confidence, along with the economic recovery. "There is strong demand for prime first-storey space, evident from the little availability and speed at which they are being taken up, despite the amount of new space that has come up along Orchard Road," she said.

DTZ estimates that 2.6 million square feet of new retail space, which included 313@Somerset and Mandarin Gallery, were added to the stock this year. This is the highest new supply ever seen. Ms Chua expects prime retail rents in Orchard and Scotts Road and the suburban areas to continue to move up by 2 to 7 per cent next year.

The new supply in Orchard Road is expected to fall to about 165,000 sq ft next year and will be a mere 7 per cent of the almost 2.4 million sq feet of new retail space projected to be available next year. Outside of the city areas, most of the new supply will be concentrated in Resorts World Sentosa, Nex and Serangoon Central.

Showflats to remain open during the year-end holidays

Showflats to remain open during the year-end holidays
Dec 21, 2009 - PropertyGuru.com.sg

The market for new homes is quiet, as potential buyers and developers take their time off for the holidays.

“If you are going to sell one or two units now, you might as well close shop and wait till next year,” said Donald Han, managing director of Cushman & Wakefield. “Salespeople and consultants have worked very hard this year. So, to be fair, they need a break.”

However, potential buyers who want to see new projects even during the end-year holidays can visit some showflats that remain open. These are the projects launched in recent months.

A list prepared by property consultancy firm Knight Frank shows that at least 35 showflats will be available for public viewing this holiday season.

Potential buyers looking for mass-market projects can visit Livia in Pasir Ris, Trevista in Toa Payoh, Waterfront Key in Bedok Reservoir and Double Bay Residences in Simei.

Meanwhile, for interested buyers of high-end homes, they can check out Reflections at Keppel Bay, or Cyan and Ferrell Residences in Bukit Timah Road. The showflat for St Regis Residences is also open this month, but viewing the place is by appointment only, said City Developments.

Property investments in APAC region to double in 2010

Property investments in APAC region to double in 2010
Dec 21, 2009 - PropertyGuru.com.sg

The Asia Pacific region will have around $85 billion to spend for direct investment in property by next year. The amount is twice the $43 billion transacted in the past 12 months, according to DTZ Research.

The $85 billion translates to 27 percent of the total capital worth $315 billion, which will be available in 2010 for direct investment in property worldwide, added DTZ in its "The Great Wall of Money" report yesterday.

DTZ also said that worldwide transaction volume in 2010 should be more than double the $157 billion this year and could return to 2004 levels.

Globally, the capital chasing property ratio is around $2 for every deal volume worth $1.

“Asia Pacific and Europe are relative winners, with more money targeting these regions for investment than they are raising and investing elsewhere,” according to DTZ's report. “Together, these regions are targets for 77 per cent combined of the total investment in 2010 but are raising only 49 per cent of available money.”

However, it cites one main caveat - capital necessary for de-leveraging. It refers to the substantial amount of commercial property lending which is due for refinancing within the next two to four years.

“While some of the available capital may be diverted to this purpose - for example, through provision of debt financing - we expect the de-leveraging and unwinding of support policies will be slowly phased in over time, limiting the immediate impact in 2010,” said DTZ.

The largest investor category is the third party-managed funds, which accounts for 60 percent of available equity. It is followed by institutions with 28 percent and sovereign wealth funds with 6 percent. The German open-ended funds raised the remaining equity.

According to DTZ, 81 percent of the total capital yield is being directed towards multi-sector investments than to the single-sector investments. Only 19 percent of the capital was reserved to target a specific property sector - primarily in retail (3 percent), industrial (5 percent) and office (4 percent).

Also, 70 percent of the total capital will target two or more countries. Those who invest in a single country are mainly focused on the prime liquid markets of the US and UK, accounting for 7 and 9 percent respectively of total planned investment. Expected to compose the combined 5 percent of planned investment are China, Germany and Japan.

“Globally, most investors are adopting multi-sector and/or multi-country strategies as part of sector and geographic diversification strategies, and reflecting the opportunistic nature of most fund mandates,” said DTZ Research’s associate director of real estate strategy, Nigel Almond.

Prices of prime real-estate sets new high

Prices of prime real-estate sets new high
Dec 21, 2009 - PropertyGuru.com.sg

Prices of resale landed homes have already set high records this year despite the uncertain economic recovery, according to a recent report.

The report by DTZ Research highlights the prices of resale landed homes in the prime districts of 9, 10 and 11, including the Bukit Timah, Orchard and Tanglin areas.

Among the expensive homes, good class bungalows (GCBs) also recorded a psf price high. But prices of non-landed homes such as luxury condos are also catching up.

The average price of prime freehold landed resale homes increased 4.6 percent in Q4 or 18.4 percent for the whole of 2009 to hit a new price of $1,447 per sq ft (psf).

This is about 12 percent above the previous price of $1,293 psf in Q1 last year, the report said.

The average price of freehold landed resale homes outside the prime districts also climbed 2.8 percent in Q4 or 12.2 percent for the whole year to reach a new high of $860 psf.

Mortgagee sales volume at 12-year low

Mortgagee sales volume at 12-year low
Dec 21, 2009 - PropertyGuru.com.sg

Many are expecting to see a surge in the volume of home loan defaults, with the worst recession in the history of Singapore and the growing tide of unemployed people who struggle with mortgage installments.

It turns out that nothing could be further from the truth. The volume of properties up for mortgagee sales dropped to a 12-year low in 2009, according to the report from Colliers International.

Of the 927 properties up for auction in 2009, only 195 were forced sales of repossessed properties or mortgagee sales. It said that the figure is 25 percent lower than the 260 properties in 2008.

When banks repossess properties defaulted by homebuyers, they constantly prefer to sell at an auction as it is a transparent and fast mode of sale.

The recent low figures are far different from the situation in 1998, when the Asian financial turmoil hit home. A total of 452 properties were put up that year for mortgagee sale, it said.

“The low number of mortgagee sales could be due to the introduction of the Government's Jobs Credit scheme which stabilized the employment market; which, in turn, provided some home owners with the ability to service their monthly mortgage loans,” said Grace Ng, deputy managing director (agency and business services) of the firm.

“Additionally, buoyant sales experienced in the primary market and a steadily improving economy boosted sentiments in the secondary market, hence enabling owners to dispose of their properties and evading the need for banks to foreclose their properties.”

Based on the Colliers report, 118 properties amounting to $168.39 million were auctioned off in 2009, a little more than double the $83.67 million generated in 2008.

This year, residential sales at auctions totaled to $88.35 million, up from last year’s $25.23 million, as the low housing loan rates and more positive economic sentiments motivated the upgraders.

Ms. Ng also noted that there was competitive bidding this year for old semi-detached houses with big land areas.

ST : Sands IR on track to open

Dec 21, 2009
Sands IR on track to open



Artist impression of the Marina Bay IR by Las Vegas Sands. --PHOTO: LAS VEGAS SANDS

HONG KONG - LAS Vegas Sands, the world's second-most valuable casino operator by market capitalisation, said on Monday that its US$5.5 billion (S$7.7 billion) Singapore casino resort is on track to open around the end of March.

Elsewhere in Asia, the company, which saw many of its projects under development on Macau's Cotai Strip put on hold during the global financial crisis, could also 'easily open' all its planned properties there in the next five years, Chief Executive and Chairman Sheldon Adelson said in an interview on CNBC.

Sands' original target was to open the Marina Bay Sands casino-resort on the edge of Singapore's central business district by the fourth quarter of 2009. The opening date was later revised to end-March 2010 because of a shortage of sand and workers.

The Singapore project, which was originally expected to cost around $3.2 billion, has also suffered massive cost overruns. -- REUTERS

ST : Having a splash in the park

Dec 20, 2009
Having a splash in the park
By Amresh Gunasingham

SPORTS enthusiasts in Pasir Ris will have a shiny new facility to call on in by June 2011. Built at a cost of $40 million, it will be equipped with swimming pools, a 2,000-seater multi-purpose sports hall and tennis courts, among other features.

Work on the project, located near the MRT and bus interchange, commenced officially yesterday at a ceremony attended by Deputy Prime Minister Teo Chee Hean and Minister for Community, Youth and Sports, Dr Vivian Balakrishnan.

First announced at the 2006 General Election as part of the Government's $850-million plan to spruce up the Pasir Ris, Punggol and Sengkang areas, it will also be retrofitted with green features to reduce its energy consumption. These include the installation of solar panels and a rainwater-harvesting container that channels stormwater into a storage tank to be later used to irrigate plants.

Savings of up to 15 per cent in operating costs could be earned annually on electrical equipment alone, said Mr Kenneth Hui, chief of sports facilities group at the Singapore Sports Council (SSC).

ST : Punggol renewal

Dec 19, 2009
Punggol renewal



More than a decade after its first masterplan was unveiled, Punggol is finally taking shape as a waterfront haven that will be a top residential and recreational spot. -- ST PHOTO: AZIZ HUSSIN

MORE than a decade after its first masterplan was unveiled, Punggol is finally taking shape as a waterfront haven that will be a top residential and recreational spot.

Lifestyle tells you what you can expect to see from this former backwater town.

ST : Still open for viewing

Dec 19, 2009
Still open for viewing
By Joyce Teo, Property Correspondent



Artist impression of the Double Bay Residences in Simei. -- PHOTO: UOL

THE market for new homes is quiet as most developers and potential buyers have taken time off for the year-end holidays.

'If you are going to sell one or two units now, you might as well close shop and wait till next year,' said Cushman & Wakefield managing director Donald Han.

'Salespeople and consultants have worked very hard this year. So, to be fair, they need a break.'

But for those potential buyers itching to check out new projects, a fair number of showflats are still open. These are mostly projects launched in recent months.

A list compiled by property consultancy Knight Frank shows there are at least 35 showflats staying open this month.

Those keen on mass-market projects can check out Waterfront Key in Bedok Reservoir, Livia in Pasir Ris, Double Bay Residences in Simei and Trevista in Toa Payoh.