Oct 18, 2010
Canopy sells 100 units over the weekend
WITHIN an hour of opening its doors on Saturday, The Canopy in Yishun had sold all the 20 units allocated to upgraders.
Another 80 or so units were booked by first-time buyers over the weekend, said Mr Tan Zhi Yong, managing director of MCC Land, which is developing the project.
The executive condominium (EC) - only the second to be launched in the last five years - has 406 units in total. In the first month of sale, 95 per cent of the units are set aside for first-timers, which means upgraders and other buyers can only buy 5 per cent of these units.
But next month, the remaining unsold units will be opened up to all buyers.
Mr Tan expects better sales then, saying demand is especially strong from upgraders.
In total, the project drew about 450 applications for its units, Mr Tan told The Straits Times.
But he said some applicants dropped out of the race because their monthly income levels exceeded the $10,000 cap imposed on EC buyers.
ECs, the most premium form of public housing, are subject to similar restrictions on eligibility, ownership and resale as normal HDB flats. But after 10 years, these restrictions are lifted and the developments become like private condos.
Several hundred interested buyers thronged the showroom over the weekend, Mr Tan said.
But not all the visitors ended up booking a flat, because while ECs have risen in price and quality over the last 10 years, the income ceiling for eligible buyers has stayed the same.
This means many buyers who can afford the units in The Canopy have breached the income cap, he said.
'A lot of buyers asked us to appeal for them, some saying that they had just crossed the income ceiling this month only.'
FIONA CHAN
Thursday, October 21, 2010
ST : Condo's by-laws have teeth
Oct 17, 2010
Condo mayhem
Residents who behave badly can make life miserable for others
By Sandra Leong
Beyond the idyllic depiction of classy condominium living, another facet may lurk: the resident or visitor from hell.
For instance, residents at a condominium in the East suspected that the same culprit was repeatedly urinating and defecating in the swimming pool, said the estate's managing agent Victor Charles.
The company he works for, Philip Motha Property Management, manages more than 40 private estates here.
To catch the mischief maker, Mr Charles, 50, installed a closed-circuit television camera system around the pool. No one was caught but the cameras seemed to have scared off the culprit.
There have also been cases of balconies used as dumping grounds.
Media director Jamie Sze, 42, found used tissue paper, onion skins, cigarette butts and even used sanitary pads thrown onto her second-storey balcony at Goodluck Garden in Toh Tuck Road.
Said the mother of three, who has since moved to Maplewood along Bukit Timah Road: 'There was no way we could stop them. It's not as if I could park myself at the balcony all day...We didn't have concrete evidence but we had our suspicions. The sanitary pad was the ultimate.'
Unlike the happier outcome in the earlier example, the litterbug was never caught. Her complaint to the condo management merely led to a general letter reminding residents not to litter.
Earlier this month, former Singapore Idol Hady Mirza, a tenant at Mimosa Park in Yio Chu Kang, was banned from using the condo's recreational facilities for six months after a poolside party his family hosted left behind a mess.
Paper plates and uneaten food were found in the swimming pool, the management council said. Toilets were choked and damaged.
Hady has since apologised. The party, he said, was a children's bash gone awry.
People want to live in private estates for the pluses, including facilities such as swimming pools and gyms, and the 'exclusivity'.
But residents, management councils and managing agents told The Sunday Times that there will always be people who behave badly in their estates.
Boorish behaviour may range from littering to bizarre acts, like soiling the pool, skinny dipping or using communal shower facilities to save on the water bill.
On the other hand, management corporations or councils have the power to act. The office-bearers are fellow residents voted in by the others.
Managing agents are professionals hired to run the estates.
These bodies have a mandate to upkeep the condo by tapping into maintenance contribution funds - which range from about $280 to $500 a month - paid by owner- residents.
One of their responsibilities is to uphold the condo's by-laws, essentially a set of rules to foster harmonious living.
Depending on what the by-laws allow, warnings, fines and bans can be meted out. But the enforcement of these rules can be a challenge.
'Sometimes a resident may say to the manager, 'I'm paying your salary'. But we have to be clear that certain behaviour is unacceptable,' said Mr Lionel de Souza, 67, a former council chairman of Stratford Court in Bedok.
Mr Francis Zhan, 65, chief executive officer of the Association of Management Corporations in Singapore, said problems such as residents not cleaning up after booking facilities like barbecue pits and function rooms are 'widespread'.
But these occurrences are seldom severe, said Mr Eric Tay, 48, director of Total Estate Management Services, which manages 25 condominium properties.
He estimated that there are fewer than 10 such disputes in each estate every year, most of which are resolved without the need for external mediation.
It can cost at least $200 to clean up after irresponsible residents, he said.
In one serious case he saw at a condo in the East, a rowdy party of 20-somethings repeatedly ignored requests by security guards to clear up after a barbecue. The management then retained the hosts' $100 deposit to pay for the cleaning services, and barred them from using the facilities for the next three months.
Though they did not cause any permanent damage, they had left food and furniture strewn around the common areas. The condo's cleaners had to do 'extra work' to clear up the mess, said Mr Tay.
A check with the Strata Titles Board, which arbitrates disputes between owners or between owners and management, found that over the past two years, there were no cases brought before it over misuse of facilities.
Still, the horror stories do go round, even within swankier developments.
At the Caribbean at Keppel Bay, resident Eugene Wee, 38, went to the carpark one morning about two years ago to find the windscreen of his Toyota MR2 convertible smashed by a pole.
The vandal was a drunk tenant who had also destroyed two other cars in the early hours of the morning. Luckily for Mr Wee, a general manager in the marine industry, the culprit forked out $10,000 for the damage to his car.
The main perpetrators of bad conduct are tenants, not owner-residents, say estate managers.
Mr Zhan, who was the council chairman of Regent Garden in West Coast Road until it was sold to developers in 2007, said: 'Owners are less likely to misbehave as they do not want to affect the value of the property. Tenants don't have a stake; why should they take care of it?'
To address this problem at Regent Garden, the council there introduced maintenance fund rebates to owner-occupiers so they would not have to feel as if they were subsidising excess maintenance costs created by the tenants, he added.
Fairly or unfairly, some residents say the lifestyles of some foreigners may be a factor.
Mr Jimmy Ling, 57, the estate manager of Woodsvale condominium in Woodlands, has encountered foreign residents who invite up to 100 guests for weekend parties that mess up the barbecue pits.
He said he also dealt with a non-local family who lived on a high floor. They threw water out of their window every day as part of a religious cleansing ritual.
But locals are not blameless either.
'Attitude is the biggest problem we face,' said Mr Ling, who added that some condo residents feel no need to take personal responsibility for their surroundings because 'they don't actually see what they are paying'. Money for repairs is usually taken from maintenance funds.
Sociologist Paulin Tay Straughan from the National University of Singapore said bad behaviour can occur in any type of communal living.
'It is not limited to those living in HDB estates. It is just that in condominiums, because there is a condo manager and security personnel, there is an on-site outlet for grievances to be heard.
'Expectations will tend to be elevated and tolerance is lowered as well.'
sandral@sph.com.sg
Additional reporting by Cheryl Ong
--------------------------------------------------------------------------------
Condo's by-laws have teeth
It is rare for the police to step in when a boorish resident upsets his fellow condo residents or the estate's managers.
Typically, the condominium's by-laws have the teeth to deal with the perpetrator.
Most such offences - like dirtying or damaging common property or leaving cars in non- designated areas - are spelt out in the by-laws, so the condo managers can deal with them.
Owners of condo units are subsidiary proprietors and they all have a share in the common facilities.
'As subsidiary proprietors, they voted to pass these by-laws,' said property lawyer Norman Ho. So anyone who breaches any by-law faces the stipulated penalty, he said.
Penalties may be warnings, bans and fines.
Even if a resident disputes, say, damage done to a shared facility, what may happen next is a civil suit, not a criminal case, Mr Ho said.
But Dr Lim Lan Yuan, a real estate lecturer at the National University of Singapore and chairman of the Association of Facility and Property Managers, felt that mediation through bodies like the Strata Titles Board and the Singapore Institute of Surveyors and Valuers is a better option.
'Even the courts will probably ask you to resolve the problem amicably,' he said. 'The aim as a community should be to establish good rapport with one another.'
The police, however, can and should be called in for cases of vandalism or when residents or their visitors become a public nuisance.
Never take the law into your hands, Mr Ho advised. 'If a fight starts and the resident accuses the management council or managing agent of using force, they will be in a difficult position.'
Sandra Leong
Additional reporting by Cheryl Ong
Condo mayhem
Residents who behave badly can make life miserable for others
By Sandra Leong
Beyond the idyllic depiction of classy condominium living, another facet may lurk: the resident or visitor from hell.
For instance, residents at a condominium in the East suspected that the same culprit was repeatedly urinating and defecating in the swimming pool, said the estate's managing agent Victor Charles.
The company he works for, Philip Motha Property Management, manages more than 40 private estates here.
To catch the mischief maker, Mr Charles, 50, installed a closed-circuit television camera system around the pool. No one was caught but the cameras seemed to have scared off the culprit.
There have also been cases of balconies used as dumping grounds.
Media director Jamie Sze, 42, found used tissue paper, onion skins, cigarette butts and even used sanitary pads thrown onto her second-storey balcony at Goodluck Garden in Toh Tuck Road.
Said the mother of three, who has since moved to Maplewood along Bukit Timah Road: 'There was no way we could stop them. It's not as if I could park myself at the balcony all day...We didn't have concrete evidence but we had our suspicions. The sanitary pad was the ultimate.'
Unlike the happier outcome in the earlier example, the litterbug was never caught. Her complaint to the condo management merely led to a general letter reminding residents not to litter.
Earlier this month, former Singapore Idol Hady Mirza, a tenant at Mimosa Park in Yio Chu Kang, was banned from using the condo's recreational facilities for six months after a poolside party his family hosted left behind a mess.
Paper plates and uneaten food were found in the swimming pool, the management council said. Toilets were choked and damaged.
Hady has since apologised. The party, he said, was a children's bash gone awry.
People want to live in private estates for the pluses, including facilities such as swimming pools and gyms, and the 'exclusivity'.
But residents, management councils and managing agents told The Sunday Times that there will always be people who behave badly in their estates.
Boorish behaviour may range from littering to bizarre acts, like soiling the pool, skinny dipping or using communal shower facilities to save on the water bill.
On the other hand, management corporations or councils have the power to act. The office-bearers are fellow residents voted in by the others.
Managing agents are professionals hired to run the estates.
These bodies have a mandate to upkeep the condo by tapping into maintenance contribution funds - which range from about $280 to $500 a month - paid by owner- residents.
One of their responsibilities is to uphold the condo's by-laws, essentially a set of rules to foster harmonious living.
Depending on what the by-laws allow, warnings, fines and bans can be meted out. But the enforcement of these rules can be a challenge.
'Sometimes a resident may say to the manager, 'I'm paying your salary'. But we have to be clear that certain behaviour is unacceptable,' said Mr Lionel de Souza, 67, a former council chairman of Stratford Court in Bedok.
Mr Francis Zhan, 65, chief executive officer of the Association of Management Corporations in Singapore, said problems such as residents not cleaning up after booking facilities like barbecue pits and function rooms are 'widespread'.
But these occurrences are seldom severe, said Mr Eric Tay, 48, director of Total Estate Management Services, which manages 25 condominium properties.
He estimated that there are fewer than 10 such disputes in each estate every year, most of which are resolved without the need for external mediation.
It can cost at least $200 to clean up after irresponsible residents, he said.
In one serious case he saw at a condo in the East, a rowdy party of 20-somethings repeatedly ignored requests by security guards to clear up after a barbecue. The management then retained the hosts' $100 deposit to pay for the cleaning services, and barred them from using the facilities for the next three months.
Though they did not cause any permanent damage, they had left food and furniture strewn around the common areas. The condo's cleaners had to do 'extra work' to clear up the mess, said Mr Tay.
A check with the Strata Titles Board, which arbitrates disputes between owners or between owners and management, found that over the past two years, there were no cases brought before it over misuse of facilities.
Still, the horror stories do go round, even within swankier developments.
At the Caribbean at Keppel Bay, resident Eugene Wee, 38, went to the carpark one morning about two years ago to find the windscreen of his Toyota MR2 convertible smashed by a pole.
The vandal was a drunk tenant who had also destroyed two other cars in the early hours of the morning. Luckily for Mr Wee, a general manager in the marine industry, the culprit forked out $10,000 for the damage to his car.
The main perpetrators of bad conduct are tenants, not owner-residents, say estate managers.
Mr Zhan, who was the council chairman of Regent Garden in West Coast Road until it was sold to developers in 2007, said: 'Owners are less likely to misbehave as they do not want to affect the value of the property. Tenants don't have a stake; why should they take care of it?'
To address this problem at Regent Garden, the council there introduced maintenance fund rebates to owner-occupiers so they would not have to feel as if they were subsidising excess maintenance costs created by the tenants, he added.
Fairly or unfairly, some residents say the lifestyles of some foreigners may be a factor.
Mr Jimmy Ling, 57, the estate manager of Woodsvale condominium in Woodlands, has encountered foreign residents who invite up to 100 guests for weekend parties that mess up the barbecue pits.
He said he also dealt with a non-local family who lived on a high floor. They threw water out of their window every day as part of a religious cleansing ritual.
But locals are not blameless either.
'Attitude is the biggest problem we face,' said Mr Ling, who added that some condo residents feel no need to take personal responsibility for their surroundings because 'they don't actually see what they are paying'. Money for repairs is usually taken from maintenance funds.
Sociologist Paulin Tay Straughan from the National University of Singapore said bad behaviour can occur in any type of communal living.
'It is not limited to those living in HDB estates. It is just that in condominiums, because there is a condo manager and security personnel, there is an on-site outlet for grievances to be heard.
'Expectations will tend to be elevated and tolerance is lowered as well.'
sandral@sph.com.sg
Additional reporting by Cheryl Ong
--------------------------------------------------------------------------------
Condo's by-laws have teeth
It is rare for the police to step in when a boorish resident upsets his fellow condo residents or the estate's managers.
Typically, the condominium's by-laws have the teeth to deal with the perpetrator.
Most such offences - like dirtying or damaging common property or leaving cars in non- designated areas - are spelt out in the by-laws, so the condo managers can deal with them.
Owners of condo units are subsidiary proprietors and they all have a share in the common facilities.
'As subsidiary proprietors, they voted to pass these by-laws,' said property lawyer Norman Ho. So anyone who breaches any by-law faces the stipulated penalty, he said.
Penalties may be warnings, bans and fines.
Even if a resident disputes, say, damage done to a shared facility, what may happen next is a civil suit, not a criminal case, Mr Ho said.
But Dr Lim Lan Yuan, a real estate lecturer at the National University of Singapore and chairman of the Association of Facility and Property Managers, felt that mediation through bodies like the Strata Titles Board and the Singapore Institute of Surveyors and Valuers is a better option.
'Even the courts will probably ask you to resolve the problem amicably,' he said. 'The aim as a community should be to establish good rapport with one another.'
The police, however, can and should be called in for cases of vandalism or when residents or their visitors become a public nuisance.
Never take the law into your hands, Mr Ho advised. 'If a fight starts and the resident accuses the management council or managing agent of using force, they will be in a difficult position.'
Sandra Leong
Additional reporting by Cheryl Ong
ST : ECs may bebetter investments than private housing
Oct 17, 2010
property
ECs may bebetter investments than private housing
Prices of some ECs have gone up more than mass market private condos in same area since launch
By Esther Teo
Are executive condominiums better investments than private housing? They may well be, if price gains are anything to go by.
Some executive condominiums (ECs) - the poshest type of public housing - have gone up more in price over the years than private mass market condominiums in the same areas, a check by The Sunday Times has found.
ECs such as Bishan Loft, Woodsvale in Woodlands and The Eden in Tampines have beaten the big boys by chalking up higher price gains compared to nearby mass market condos launched during the same periods.
Pinevale, for example, an EC in Tampines launched in 1997 at $450 per sq ft (psf), has seen an average selling price of $569 psf for its 13 transactions this year - an increase of 26 per cent.
Nearby, however, Hong Leong's 537-unit The Tropica - also launched in 1997 - has sold at an average of $663 psf this year, an 11 per cent increase from its launch price of $600 psf.
ECs were first introduced for homeowners with rising housing aspirations and whose household income is above $8,000 but below $10,000.
They are more popular when the gap between public and private housing widens and lose popularity when mass market condos become more affordable.
The last EC launch was La Casa in Woodlands in 2005 before Esparina Residences near Buangkok MRT station was launched this month.
ECs, like other Housing Board (HDB) flats, are subject to a minimum occupation period (MOP) of five years. After that, they can be sold only to Singaporeans and permanent residents. They become private property after 10 years, and can then be sold to foreigners.
They are usually priced up to 25 per cent lower to compensate for these sales restrictions and thus start off from a lower base, experts say.
They note, however, that since EC owners need to meet a MOP of five years, they might not be able to profit even if residential capital values are on the uptrend.
Mr Png Poh Soon, Knight Frank senior manager of consultancy and research, said that an analysis of the ECs that have met their MOP has shown a 66.9 per cent price appreciation from 2004 to this year.
This is higher than the 51.8 per cent price increase in mass market residential homes based off the change in the Urban Redevelopment Authority price index of non-landed properties outside the central region, he said.
'Interestingly, the price gap of ECs narrowed significantly with nearby properties after the fifth-year mark,' he added, with location playing a significant part in the rate of price appreciation.
However, some experts say that buying an EC requires some good luck and timing if an owner is looking for an investment as well.
Mr Colin Tan, head of research and consultancy at Chesterton Suntec International, said that ECs which serve the so-called sandwich class thrive only during periods of high property prices.
'The quality of ECs is still generally inferior to that of private property. When private property prices decline, the difference in quality will show and ECs will become less popular...So if you need to invest in ECs, you need to time your entry and exit,' he added.
DMG and Partners analyst Brandon Lee added that historically, EC prices have shot up only when mass market prices increased since demand for mass market condos would filter into ECs that have fulfilled their MOPs.
Buyers however are still biting, with recent launches of ECs - the first in five years - such as Esparina Residences, and The Canopy in Yishun Avenue 11, receiving keen interest.
But Knight Frank's Mr Png added that as the Government launches more EC sites, not all will be equally attractive.
Interested buyers should assess the location of the development, as well as how much lower the price of the EC units will be compared with surrounding private properties, before making a purchase.
esthert@sph.com.sg
--------------------------------------------------------------------------------
Timing crucial for investors
'The quality of ECs is still generally inferior to that of private property...So if you need to invest in ECs, you need to time your entry and exit.'
MR COLIN TAN, head of research and consultancy at Chesterton Suntec International. The Bishan Loft EC has chalked up higher price gains than nearby mass market condos.
property
ECs may bebetter investments than private housing
Prices of some ECs have gone up more than mass market private condos in same area since launch
By Esther Teo
Are executive condominiums better investments than private housing? They may well be, if price gains are anything to go by.
Some executive condominiums (ECs) - the poshest type of public housing - have gone up more in price over the years than private mass market condominiums in the same areas, a check by The Sunday Times has found.
ECs such as Bishan Loft, Woodsvale in Woodlands and The Eden in Tampines have beaten the big boys by chalking up higher price gains compared to nearby mass market condos launched during the same periods.
Pinevale, for example, an EC in Tampines launched in 1997 at $450 per sq ft (psf), has seen an average selling price of $569 psf for its 13 transactions this year - an increase of 26 per cent.
Nearby, however, Hong Leong's 537-unit The Tropica - also launched in 1997 - has sold at an average of $663 psf this year, an 11 per cent increase from its launch price of $600 psf.
ECs were first introduced for homeowners with rising housing aspirations and whose household income is above $8,000 but below $10,000.
They are more popular when the gap between public and private housing widens and lose popularity when mass market condos become more affordable.
The last EC launch was La Casa in Woodlands in 2005 before Esparina Residences near Buangkok MRT station was launched this month.
ECs, like other Housing Board (HDB) flats, are subject to a minimum occupation period (MOP) of five years. After that, they can be sold only to Singaporeans and permanent residents. They become private property after 10 years, and can then be sold to foreigners.
They are usually priced up to 25 per cent lower to compensate for these sales restrictions and thus start off from a lower base, experts say.
They note, however, that since EC owners need to meet a MOP of five years, they might not be able to profit even if residential capital values are on the uptrend.
Mr Png Poh Soon, Knight Frank senior manager of consultancy and research, said that an analysis of the ECs that have met their MOP has shown a 66.9 per cent price appreciation from 2004 to this year.
This is higher than the 51.8 per cent price increase in mass market residential homes based off the change in the Urban Redevelopment Authority price index of non-landed properties outside the central region, he said.
'Interestingly, the price gap of ECs narrowed significantly with nearby properties after the fifth-year mark,' he added, with location playing a significant part in the rate of price appreciation.
However, some experts say that buying an EC requires some good luck and timing if an owner is looking for an investment as well.
Mr Colin Tan, head of research and consultancy at Chesterton Suntec International, said that ECs which serve the so-called sandwich class thrive only during periods of high property prices.
'The quality of ECs is still generally inferior to that of private property. When private property prices decline, the difference in quality will show and ECs will become less popular...So if you need to invest in ECs, you need to time your entry and exit,' he added.
DMG and Partners analyst Brandon Lee added that historically, EC prices have shot up only when mass market prices increased since demand for mass market condos would filter into ECs that have fulfilled their MOPs.
Buyers however are still biting, with recent launches of ECs - the first in five years - such as Esparina Residences, and The Canopy in Yishun Avenue 11, receiving keen interest.
But Knight Frank's Mr Png added that as the Government launches more EC sites, not all will be equally attractive.
Interested buyers should assess the location of the development, as well as how much lower the price of the EC units will be compared with surrounding private properties, before making a purchase.
esthert@sph.com.sg
--------------------------------------------------------------------------------
Timing crucial for investors
'The quality of ECs is still generally inferior to that of private property...So if you need to invest in ECs, you need to time your entry and exit.'
MR COLIN TAN, head of research and consultancy at Chesterton Suntec International. The Bishan Loft EC has chalked up higher price gains than nearby mass market condos.
ST : Remaking KL
Oct 16, 2010
Remaking KL
Plans to turn Malaysian capital into a top city spark cheer as well as worry
By Leslie Lopez
KUALA LUMPUR: Malaysia is making sweeping plans to turn Kuala Lumpur into a world-class financial hub by 2020 via a slew of multibillion-dollar land privatisation deals, stirring both excitement and concern.
The remaking of Kuala Lumpur - a central plank of Prime Minister Najib Razak's ambitious 10-year Economic Transformation Programme (ETP) - will involve the redevelopment of large swathes of real estate, including a military airbase on the fringe of the capital and the construction of an underground mass rail transit (MRT) network.
A major part of the plans is relocating the 196ha Sungei Besi airbase, located in the capital's southern district, to pave the way for a RM26 billion (S$11 billion) Kuala Lumpur International Financial District led by sovereign wealth fund 1Malaysia Development Berhad (1MDB), which has signed a memorandum of understanding with Abu Dhabi's Mubadala Group to develop the project.
Also on the cards is the redevelopment of Kampung Baru, a Malay enclave near the landmark Petronas Towers. It has been a symbol of ethnic Malay pride but also a nagging boil to pro-development politicians, like former premier Mahathir Mohamad, who have long wanted the wood and concrete kampung houses to make way for more upscale development.
To alleviate public transport woes, a RM40 billion MRT project has been announced. Set to emerge as the single-largest infrastructure undertaking in Malaysia, the rail network will comprise three networks running over a stretch of 141km.
A 100-storey building is also being planned, set to be completed in 2015.
The sprawling city and proposed economic hub will include 10 municipalities and encompass an area of 279,327ha - which is four times that of Singapore.
The plans will transform the city into one of the top 20 in city economic growth and put it among the global top 20 most liveable cities by 2020, said Federal Territories and Urban Well-being Minister Raja Nong Chik Raja Zainal Abidin.
They are also the latest in a series of initiatives over the last 15 years which have changed Kuala Lumpur's skyline dramatically. Landmark projects such as the Petronas Towers, once ranked as the world's tallest structures, have been completed, and lifestyle hubs such as those in suburbs like Mont Kiara and Bandar Utama have sprouted.
Despite this, Kuala Lumpur faces fierce competition from regional cities in its push to attract talent and multinational corporations.
It lags behind many other Asian cities because of bureaucratic corruption, red tape in securing work permits and concerns over crime. Also, transportation infrastructure has not kept pace with rapid development.
To kick-start the ambitious new initiatives, the government has tapped several state-owned corporations, including 1MDB and the state pension agency, the Employees Provident Fund, to take the lead in joint ventures with foreign groups.
The plans have triggered a stampede among politically well-connected business groups eager for a piece of the action. They include businessman Syed Mokhtar Al-Bukhary, who wants to secure rights to develop 1,200ha of land in a north-west suburb of Kuala Lumpur, and low-key businessman Desmond Lim, a close confidant of Datuk Seri Najib, who is eyeing a stake in the Sungei Besi airbase redevelopment.
But while a significant amount of interest has been generated, there has also been unease.
For a start, bankers and private economists wonder how this mammoth undertaking will be financed.
Government economic planners are hoping that the private sector, including foreign investors, will fund up to 90 per cent of Kuala Lumpur's makeover and the entire national ETP, which is estimated to cost US$443 billion (S$574 billion).
Property consultants, stunned by the gargantuan dimensions of the redevelopment, also worry that Malaysia's already sluggish property sector could face an overhang of new office and residential properties that would take decades for the market to absorb.
The ETP is also drawing heat from opposition and government politicians who are demanding greater transparency in the privatisation of the land deals.
They want the government to adopt public auctions as practised in Hong Kong and Singapore, where land is sold under a public bidding exercise and funds derived from the sale are directed towards infrastructure development.
'Land is a very sensitive topic among Malays and the opposition parties are now claiming that the government is selling strategic land to foreigners and non-Malay cronies,' said a senior Umno official, referring to the military airbase. 'We need to be ready to counter these claims.'
ljlopez@sph.com.sg
--------------------------------------------------------------------------------
Big plans in store
· Sungei Besi airbase will be relocated for the RM26 billion (S$11 billion) Kuala Lumpur International Financial District.
· Sungei Buloh, with about 1,200ha of land in KL's north-west, will be redeveloped as one of the green belts. Estimated cost: RM10 billion.
· A 100-storey building will be finished in 2015. Estimated cost: RM5 billion.
· A three-network MRT will include two rail lines running through the main economic clusters. A circular rail network linking the inner city is also planned. Estimated cost: RM40 billion.
Remaking KL
Plans to turn Malaysian capital into a top city spark cheer as well as worry
By Leslie Lopez
KUALA LUMPUR: Malaysia is making sweeping plans to turn Kuala Lumpur into a world-class financial hub by 2020 via a slew of multibillion-dollar land privatisation deals, stirring both excitement and concern.
The remaking of Kuala Lumpur - a central plank of Prime Minister Najib Razak's ambitious 10-year Economic Transformation Programme (ETP) - will involve the redevelopment of large swathes of real estate, including a military airbase on the fringe of the capital and the construction of an underground mass rail transit (MRT) network.
A major part of the plans is relocating the 196ha Sungei Besi airbase, located in the capital's southern district, to pave the way for a RM26 billion (S$11 billion) Kuala Lumpur International Financial District led by sovereign wealth fund 1Malaysia Development Berhad (1MDB), which has signed a memorandum of understanding with Abu Dhabi's Mubadala Group to develop the project.
Also on the cards is the redevelopment of Kampung Baru, a Malay enclave near the landmark Petronas Towers. It has been a symbol of ethnic Malay pride but also a nagging boil to pro-development politicians, like former premier Mahathir Mohamad, who have long wanted the wood and concrete kampung houses to make way for more upscale development.
To alleviate public transport woes, a RM40 billion MRT project has been announced. Set to emerge as the single-largest infrastructure undertaking in Malaysia, the rail network will comprise three networks running over a stretch of 141km.
A 100-storey building is also being planned, set to be completed in 2015.
The sprawling city and proposed economic hub will include 10 municipalities and encompass an area of 279,327ha - which is four times that of Singapore.
The plans will transform the city into one of the top 20 in city economic growth and put it among the global top 20 most liveable cities by 2020, said Federal Territories and Urban Well-being Minister Raja Nong Chik Raja Zainal Abidin.
They are also the latest in a series of initiatives over the last 15 years which have changed Kuala Lumpur's skyline dramatically. Landmark projects such as the Petronas Towers, once ranked as the world's tallest structures, have been completed, and lifestyle hubs such as those in suburbs like Mont Kiara and Bandar Utama have sprouted.
Despite this, Kuala Lumpur faces fierce competition from regional cities in its push to attract talent and multinational corporations.
It lags behind many other Asian cities because of bureaucratic corruption, red tape in securing work permits and concerns over crime. Also, transportation infrastructure has not kept pace with rapid development.
To kick-start the ambitious new initiatives, the government has tapped several state-owned corporations, including 1MDB and the state pension agency, the Employees Provident Fund, to take the lead in joint ventures with foreign groups.
The plans have triggered a stampede among politically well-connected business groups eager for a piece of the action. They include businessman Syed Mokhtar Al-Bukhary, who wants to secure rights to develop 1,200ha of land in a north-west suburb of Kuala Lumpur, and low-key businessman Desmond Lim, a close confidant of Datuk Seri Najib, who is eyeing a stake in the Sungei Besi airbase redevelopment.
But while a significant amount of interest has been generated, there has also been unease.
For a start, bankers and private economists wonder how this mammoth undertaking will be financed.
Government economic planners are hoping that the private sector, including foreign investors, will fund up to 90 per cent of Kuala Lumpur's makeover and the entire national ETP, which is estimated to cost US$443 billion (S$574 billion).
Property consultants, stunned by the gargantuan dimensions of the redevelopment, also worry that Malaysia's already sluggish property sector could face an overhang of new office and residential properties that would take decades for the market to absorb.
The ETP is also drawing heat from opposition and government politicians who are demanding greater transparency in the privatisation of the land deals.
They want the government to adopt public auctions as practised in Hong Kong and Singapore, where land is sold under a public bidding exercise and funds derived from the sale are directed towards infrastructure development.
'Land is a very sensitive topic among Malays and the opposition parties are now claiming that the government is selling strategic land to foreigners and non-Malay cronies,' said a senior Umno official, referring to the military airbase. 'We need to be ready to counter these claims.'
ljlopez@sph.com.sg
--------------------------------------------------------------------------------
Big plans in store
· Sungei Besi airbase will be relocated for the RM26 billion (S$11 billion) Kuala Lumpur International Financial District.
· Sungei Buloh, with about 1,200ha of land in KL's north-west, will be redeveloped as one of the green belts. Estimated cost: RM10 billion.
· A 100-storey building will be finished in 2015. Estimated cost: RM5 billion.
· A three-network MRT will include two rail lines running through the main economic clusters. A circular rail network linking the inner city is also planned. Estimated cost: RM40 billion.
ST : 'Govt watches out for bubbles'
Oct 16, 2010
'Govt watches out for bubbles'
Direct, targeted actions are effective: SM Goh
By Zakir Hussain
THE Government is always looking out for potential bubbles, especially in property, said Senior Minister Goh Chok Tong.
'We periodically act pre-emptively to let some air out of property bubbles before they burst with a bang,' he told alumni at his alma mater Williams College in Massachusetts on Thursday.
And what has proven effective in cooling the property markets are direct and targeted measures, he added.
These include reducing the maximum loan for buying a second residential property and imposing stamp duty on owners who sell their properties within three years of buying them.
But, he added: 'Broad monetary policy actions may not be best suited since they can be blunt, and if applied too aggressively, can have unintended negative effects on the entire economy.'
Mr Goh made these points in a speech at a panel discussion, during which Williams College graduates from several countries discussed the lessons the United States can draw from developing countries in the recent global financial crisis.
His remarks come two months after the Government announced sweeping measures to take some heat out of the booming property market, the third cooling measure in a one-year period.
Mr Goh, however, stressed that he would hesitate to draw lessons from the way Singapore and China handled the financial crisis for the US.
The nature of the problems the US and various countries faced was vastly different, and 'the firestorm was in the US while the Asian economies felt only the heat'.
But, he said, he wanted to make the point that growth in the property sector and stock markets must be based on underlying economic fundamentals. 'Regulators must be vigilant of short-term speculative bubbles leveraged off cheap liquid funds,' he said.
Asia learnt its lesson from the property and stock market bubble during the Asian financial crisis in 1997, he added.
Mr Goh, who got a master's degree in development economics from Williams in 1967, is on a private visit to the US where he attended the 50th anniversary celebrations of the university's Centre for Development Economics.
In his speech, he outlined briefly how China and Singapore had managed the impact of the latest financial crisis.
Singapore's approach of cutting costs to save jobs rather than cutting jobs to save costs in the measures it adopted - Jobs Credit and skills upgrading - worked, he added.
It helped companies ramp up production to meet the surge in demand when the global economy recovered, enabling the economy to rebound.
But he indicated a similar approach may not be possible in the US because of the size of its economy and its free market philosophy.
Mr Goh also cautioned against innovative activity carried to extremes, such as creative credit instruments, which can have far-reaching risks.
He also argued that globalisation is beneficial to all countries and that governments cannot turn their backs on it, political pressure notwithstanding.
Mr Goh believes Asia will remain open and growing in the next decade and hold much economic opportunity for the US.
It was therefore better for Asian economies to stay coupled with the US, he said.
zakirh@sph.com.sg
'Govt watches out for bubbles'
Direct, targeted actions are effective: SM Goh
By Zakir Hussain
THE Government is always looking out for potential bubbles, especially in property, said Senior Minister Goh Chok Tong.
'We periodically act pre-emptively to let some air out of property bubbles before they burst with a bang,' he told alumni at his alma mater Williams College in Massachusetts on Thursday.
And what has proven effective in cooling the property markets are direct and targeted measures, he added.
These include reducing the maximum loan for buying a second residential property and imposing stamp duty on owners who sell their properties within three years of buying them.
But, he added: 'Broad monetary policy actions may not be best suited since they can be blunt, and if applied too aggressively, can have unintended negative effects on the entire economy.'
Mr Goh made these points in a speech at a panel discussion, during which Williams College graduates from several countries discussed the lessons the United States can draw from developing countries in the recent global financial crisis.
His remarks come two months after the Government announced sweeping measures to take some heat out of the booming property market, the third cooling measure in a one-year period.
Mr Goh, however, stressed that he would hesitate to draw lessons from the way Singapore and China handled the financial crisis for the US.
The nature of the problems the US and various countries faced was vastly different, and 'the firestorm was in the US while the Asian economies felt only the heat'.
But, he said, he wanted to make the point that growth in the property sector and stock markets must be based on underlying economic fundamentals. 'Regulators must be vigilant of short-term speculative bubbles leveraged off cheap liquid funds,' he said.
Asia learnt its lesson from the property and stock market bubble during the Asian financial crisis in 1997, he added.
Mr Goh, who got a master's degree in development economics from Williams in 1967, is on a private visit to the US where he attended the 50th anniversary celebrations of the university's Centre for Development Economics.
In his speech, he outlined briefly how China and Singapore had managed the impact of the latest financial crisis.
Singapore's approach of cutting costs to save jobs rather than cutting jobs to save costs in the measures it adopted - Jobs Credit and skills upgrading - worked, he added.
It helped companies ramp up production to meet the surge in demand when the global economy recovered, enabling the economy to rebound.
But he indicated a similar approach may not be possible in the US because of the size of its economy and its free market philosophy.
Mr Goh also cautioned against innovative activity carried to extremes, such as creative credit instruments, which can have far-reaching risks.
He also argued that globalisation is beneficial to all countries and that governments cannot turn their backs on it, political pressure notwithstanding.
Mr Goh believes Asia will remain open and growing in the next decade and hold much economic opportunity for the US.
It was therefore better for Asian economies to stay coupled with the US, he said.
zakirh@sph.com.sg
ST : More affordable housing for Taiwan
Oct 16, 2010
More affordable housing for Taiwan
TAIPEI: Taiwan officials said yesterday they planned to resume construction of affordable housing after an 11-year hiatus, another step to offset rising home prices that have kept average income earners out of the market.
The island's Interior Ministry will recommend by the end of this month how many more units to build and at what cost, ministry construction office head Yeh Shih-wen said.
That would raise the amount of affordable housing past the 5 per cent of today's total.
A new scramble to add affordable housing is designed to ease six straight years of price increases as speculators have taken advantage of low-interest loans, particularly in the capital Taipei.
Taiwan's central bank raised rates last month to 1.5 per cent, as the island's economy recovers steadily and to pre-empt asset bubbles from forming.
The ratio of home prices to disposable income in Taipei is at the highest in 20 years and the average price for an existing apartment was US$442,100 (S$571,500) in the first eight months of the year, 11.5 times the average yearly household income.
'Because home prices in the Taipei area have gone so high, average income earners can't afford them,' Mr Yeh said. 'The first phase of affordable housing will be directed at Taipei.'
Taiwan joins Hong Kong and major cities in mainland China, among other places, in trying to rein in home prices driven up largely by speculators.
Plans to add affordable housing follow a directive from Taiwan President Ma Ying-jeou earlier in the week. Mr Ma's Kuomintang faces mayoral and county magistrate elections next month as spiralling home prices weigh on voters.
In another move to check property prices, the central bank will ask lenders to report every two weeks loans made to construction firms and for land development, sources familiar with the issue said this month.
'Efforts to contain asset prices involve market-based measures as well as increasing the supply of housing,' said Mr Tim Condon, chief Asia economist with ING in Singapore.
Taiwan quit building affordable housing in 1999, replacing it with subsidies. But only about 70,000 households qualify for those, keeping middle-class Taipei residents out of the market.
Much of today's affordable housing is also reserved for military families or retired military personnel.
REUTERS
More affordable housing for Taiwan
TAIPEI: Taiwan officials said yesterday they planned to resume construction of affordable housing after an 11-year hiatus, another step to offset rising home prices that have kept average income earners out of the market.
The island's Interior Ministry will recommend by the end of this month how many more units to build and at what cost, ministry construction office head Yeh Shih-wen said.
That would raise the amount of affordable housing past the 5 per cent of today's total.
A new scramble to add affordable housing is designed to ease six straight years of price increases as speculators have taken advantage of low-interest loans, particularly in the capital Taipei.
Taiwan's central bank raised rates last month to 1.5 per cent, as the island's economy recovers steadily and to pre-empt asset bubbles from forming.
The ratio of home prices to disposable income in Taipei is at the highest in 20 years and the average price for an existing apartment was US$442,100 (S$571,500) in the first eight months of the year, 11.5 times the average yearly household income.
'Because home prices in the Taipei area have gone so high, average income earners can't afford them,' Mr Yeh said. 'The first phase of affordable housing will be directed at Taipei.'
Taiwan joins Hong Kong and major cities in mainland China, among other places, in trying to rein in home prices driven up largely by speculators.
Plans to add affordable housing follow a directive from Taiwan President Ma Ying-jeou earlier in the week. Mr Ma's Kuomintang faces mayoral and county magistrate elections next month as spiralling home prices weigh on voters.
In another move to check property prices, the central bank will ask lenders to report every two weeks loans made to construction firms and for land development, sources familiar with the issue said this month.
'Efforts to contain asset prices involve market-based measures as well as increasing the supply of housing,' said Mr Tim Condon, chief Asia economist with ING in Singapore.
Taiwan quit building affordable housing in 1999, replacing it with subsidies. But only about 70,000 households qualify for those, keeping middle-class Taipei residents out of the market.
Much of today's affordable housing is also reserved for military families or retired military personnel.
REUTERS
ST : Chinese property prices up in Sept
Oct 16, 2010
Chinese property prices up in Sept
BEIJING: Chinese property prices rose for the first time in four months in September, a sign that the market is ready to pounce on any let-up by the government in its crackdown on speculation.
A resumption of capital inflows to China in recent weeks and expectations of more monetary easing in developed markets have triggered worries that Chinese asset markets could soon face steep upward pressure.
In fact, Beijing had already detected the return of property inflation, reinforcing its tightening measures at the end of last month.
'It looked like the impact of the April (initial tightening) policy had started to fade, because we did see prices picking up again,' said Ms Jinny Yan, an economist at Shanghai's Standard Chartered Bank. 'So it was obviously conviction from the centre that we need to keep prices stable. Without any movement in interest rate policy, this is perhaps the No.1 focus for Beijing to keep asset price inflation at bay.'
Property prices were up 0.5 per cent in September from a month earlier, the first month-on- month rise since May, according to figures released by the National Bureau of Statistics yesterday.
Beijing took fresh steps on Sept 29 to reinforce its curbs on property speculation, in response to signs of a pick-up in housing deals and prices. Early evidence is that it has been successful.
'There has to be a downward correction in property prices,' said Mr Yi Xianrong, an economist at the Chinese Academy of Social Sciences, a government think-tank. 'Otherwise, we may see a big bubble in property market.'
Mr Yi said the tool needed to curb property speculation would be an annual housing tax, a levy based on the appraised value of homes.
REUTERS
Chinese property prices up in Sept
BEIJING: Chinese property prices rose for the first time in four months in September, a sign that the market is ready to pounce on any let-up by the government in its crackdown on speculation.
A resumption of capital inflows to China in recent weeks and expectations of more monetary easing in developed markets have triggered worries that Chinese asset markets could soon face steep upward pressure.
In fact, Beijing had already detected the return of property inflation, reinforcing its tightening measures at the end of last month.
'It looked like the impact of the April (initial tightening) policy had started to fade, because we did see prices picking up again,' said Ms Jinny Yan, an economist at Shanghai's Standard Chartered Bank. 'So it was obviously conviction from the centre that we need to keep prices stable. Without any movement in interest rate policy, this is perhaps the No.1 focus for Beijing to keep asset price inflation at bay.'
Property prices were up 0.5 per cent in September from a month earlier, the first month-on- month rise since May, according to figures released by the National Bureau of Statistics yesterday.
Beijing took fresh steps on Sept 29 to reinforce its curbs on property speculation, in response to signs of a pick-up in housing deals and prices. Early evidence is that it has been successful.
'There has to be a downward correction in property prices,' said Mr Yi Xianrong, an economist at the Chinese Academy of Social Sciences, a government think-tank. 'Otherwise, we may see a big bubble in property market.'
Mr Yi said the tool needed to curb property speculation would be an annual housing tax, a levy based on the appraised value of homes.
REUTERS
ST : Private home sales down
Oct 16, 2010
Private home sales down
Cooling measures seem to have immediate impact, with 911 units sold last month
By Joyce Teo
PRIVATE home sales last month were down sharply from August, suggesting that the recent steps to cool the surging property market had immediate impact.
Developers sold 911 flats last month - down from 1,259 in August - and a substantial part of that was due to heavy demand for one project.
The level of launches was slightly lower, with 1,058 units released last month, from 1,165 in August, according to the Urban Redevelopment Authority yesterday.
While last month's figures were down, in comparison with the preceding months of mostly bumper transactions, they were still fairly robust and brought sales of new private homes for the first nine months to 12,136. This compares with 12,828 units shifted in the same period last year.
Developers sold 14,688 new homes in the whole of last year, just short of the 2007 record of 14,811 units.
The Aug 30 cooling measures introduced tighter lending rules for people with existing mortgages looking to buy another home, and barred owners who plan to buy a HDB resale flat from keeping their private property, including any held overseas.
Experts say the steps managed to dampen demand although the extent of the fall in sales was largely expected.
But marketing agent Jones Lang LaSalle said the move fell short of expectations as cooling measures introduced in September last year had a greater and faster effect in moderating sales volumes.
'The numbers suggest that the initial shock of government policies is over as the market adjusts to a stricter regulatory environment each time,' said Dr Chua Yang Liang, its head of research for South-east Asia.
'In contrast with the first set of measures (last year), which were aimed at cooling the overall market, the latest measures are targeted specifically at the 'double-barrelled speculators' who form only a small part of the universe as shown by the smaller drop in sales volume.'
Last month's sales would have been much lower if not for strong demand for NV Residences. The Pasir Ris project was last month's clear top seller, moving 347 units at a median price of $859 per sq ft (psf).
Vacanza@East in Lengkong Tujuh was next with 89 units sold at a median price of $1,107 psf.
Experts noted that last month's sales in suburban areas, or what is known as the outside central region, grew by 10 per cent over August to reach 601 units.
Sales in the city fringes and core city centre fell by 50 per cent and 60 per cent respectively from August, indicating that some with deeper pockets were holding back.
There had been forecasts that the dampening moves would hit the mass market fairly hard but the segment seems to have 'held its own' and 'could buck the declining sales trend in spite of the cooling measures', said Colliers International's director for research and advisory, Ms Tay Huey Ying.
She said it could be a sign that the fall in demand from buyers with HDB addresses could have been offset by a rise in demand from new groups of buyers.
These include people priced out of the higher-tier markets by the tighter financing rules and those planning to buy HDB flats who may now choose a private home to avoid giving up their foreign property.
Experts say developers' sales may hover around 800 to 1,000 units in the fourth quarter, with transactions for the year likely exceeding 14,000.
Knight Frank's managing director of residential services, Mr Peter Ow, told The Straits Times: 'People have a lot of confidence in the market because there's plenty of liquidity, the stock market is strong, and interest rates remain low.'
Home prices are also tipped to remain stable for the rest of the year.
According to Ms Tay, any possible rise in mass market prices would have been curbed by buyer resistance and developers' need to move sales and clear their inventory.
PropNex chief executive Mohamed Ismail said developers could price their new projects lower as recent land bids have moderated.
Mr Ow added that price direction next year will largely hinge on the amount of supply coming onstream.
joyceteo@sph.com.sg
Private home sales down
Cooling measures seem to have immediate impact, with 911 units sold last month
By Joyce Teo
PRIVATE home sales last month were down sharply from August, suggesting that the recent steps to cool the surging property market had immediate impact.
Developers sold 911 flats last month - down from 1,259 in August - and a substantial part of that was due to heavy demand for one project.
The level of launches was slightly lower, with 1,058 units released last month, from 1,165 in August, according to the Urban Redevelopment Authority yesterday.
While last month's figures were down, in comparison with the preceding months of mostly bumper transactions, they were still fairly robust and brought sales of new private homes for the first nine months to 12,136. This compares with 12,828 units shifted in the same period last year.
Developers sold 14,688 new homes in the whole of last year, just short of the 2007 record of 14,811 units.
The Aug 30 cooling measures introduced tighter lending rules for people with existing mortgages looking to buy another home, and barred owners who plan to buy a HDB resale flat from keeping their private property, including any held overseas.
Experts say the steps managed to dampen demand although the extent of the fall in sales was largely expected.
But marketing agent Jones Lang LaSalle said the move fell short of expectations as cooling measures introduced in September last year had a greater and faster effect in moderating sales volumes.
'The numbers suggest that the initial shock of government policies is over as the market adjusts to a stricter regulatory environment each time,' said Dr Chua Yang Liang, its head of research for South-east Asia.
'In contrast with the first set of measures (last year), which were aimed at cooling the overall market, the latest measures are targeted specifically at the 'double-barrelled speculators' who form only a small part of the universe as shown by the smaller drop in sales volume.'
Last month's sales would have been much lower if not for strong demand for NV Residences. The Pasir Ris project was last month's clear top seller, moving 347 units at a median price of $859 per sq ft (psf).
Vacanza@East in Lengkong Tujuh was next with 89 units sold at a median price of $1,107 psf.
Experts noted that last month's sales in suburban areas, or what is known as the outside central region, grew by 10 per cent over August to reach 601 units.
Sales in the city fringes and core city centre fell by 50 per cent and 60 per cent respectively from August, indicating that some with deeper pockets were holding back.
There had been forecasts that the dampening moves would hit the mass market fairly hard but the segment seems to have 'held its own' and 'could buck the declining sales trend in spite of the cooling measures', said Colliers International's director for research and advisory, Ms Tay Huey Ying.
She said it could be a sign that the fall in demand from buyers with HDB addresses could have been offset by a rise in demand from new groups of buyers.
These include people priced out of the higher-tier markets by the tighter financing rules and those planning to buy HDB flats who may now choose a private home to avoid giving up their foreign property.
Experts say developers' sales may hover around 800 to 1,000 units in the fourth quarter, with transactions for the year likely exceeding 14,000.
Knight Frank's managing director of residential services, Mr Peter Ow, told The Straits Times: 'People have a lot of confidence in the market because there's plenty of liquidity, the stock market is strong, and interest rates remain low.'
Home prices are also tipped to remain stable for the rest of the year.
According to Ms Tay, any possible rise in mass market prices would have been curbed by buyer resistance and developers' need to move sales and clear their inventory.
PropNex chief executive Mohamed Ismail said developers could price their new projects lower as recent land bids have moderated.
Mr Ow added that price direction next year will largely hinge on the amount of supply coming onstream.
joyceteo@sph.com.sg
ST : Lukewarm response to HK housing measures
Oct 15, 2010
Lukewarm response to HK housing measures
Move not enough to meet people's needs or curb prices, analysts say
HONG KONG: New measures outlined in Hong Kong chief executive Donald Tsang's policy blueprint will not satisfy the people's demand for government help to become home owners and will have no immediate impact on rising property prices, academics and market watchers said.
Mr Tsang announced on Wednesday measures aimed at cooling the housing market - which took up nearly a quarter of his policy address, the South China Morning Post reported yesterday.
Mr Nicholas Brooke, chairman of Professional Property Services, said the policies were medium-term measures which will not solve the immediate problems facing society, the Post reported. A new subsidised-housing scheme under which 5,000 rent-and-buy flats will be supplied is not enough to solve the problem, he said. The first batch of 1,000 such flats in Tsing Yi will be available only by 2014.
'Why can't we sell the sites this year, or next month?' said Mr Brooke. 'Home prices will continue to rise.'
Mr Tsang had announced the 'rent-and-buy' programme called My Home Purchase Plan for the sandwich class who are too affluent to get public rental housing, but who do not have enough savings to make a down payment on a home.
Under the new scheme, the government will provide land for the Housing Society to build about 5,000 'no-frills' flats for lease to individuals and families at prevailing market rent for up to five years. During that time, tenants can buy the flat they are renting or another flat under the plan at its market price, or they can buy a flat in the private market, within a specified time.
They will receive a subsidy equivalent to half the net rental they paid during the tenancy period, and use it for part of the down payment.
To qualify for the scheme, applicants with families should earn a household income of no more than HK$39,000 (S$6,500) a month and have assets of no more than HK$600,000, the Post reported.
Primary school teacher Brian Cheung, 29, said it would be a long time before the rent-and-buy scheme starts. He hoped the HK$39,000 cap under the scheme could be raised because his earnings, combined with his fiancee's, exceeded it, but they still found it difficult to buy with government help.
Mr Tsang admitted that the scheme could not answer the public's immediate need, but said land and flat supply would be sufficient in the coming years, the Post reported.
His housing plans include increasing land supply by launching a public consultation on the reclamation outside Victoria Harbour to generate more land in the long run. The authorities will also speed up internal procedures to make more residential sites available to the market.
He pledged that in the next decade, the government would offer enough sites to build an average of 20,000 private flats a year.
And from yesterday, applicants to the Capital Investment Entrant Scheme - which earlier allowed investors, such as those from the Chinese mainland, to invest in real estate or specified financial assets to obtain permanent residency in Hong Kong - are no longer able to use real estate as an investment category. The government also raised the minimum investment under the scheme from HK$6.5 million to HK$10 million.
Mr Louis Chan, real estate agency Centaline's managing director for residential sales, predicted just a 5 per cent drop in the number of mainlanders buying high-end property following Mr Tsang's announcement, Agence France-Presse reported.
Property prices here have risen 15 per cent since the beginning of the year, after rising by a third last year. The increase is fuelled mainly by low interest rates and purchases by wealthy mainland Chinese facing policy tightening at home.
Dr Lau Kwok Yu, associate professor at City University's public and social administration department, said he was disappointed that the government rejected public calls for the resumption of the subsidised Home Ownership Scheme.
Mr Stewart Leung, vice-president of the Real Estate Developers Association, believed the new measures would not dampen the market, saying the land supply target of 20,000 units a year would have a positive impact on prices, the Post said.
Lukewarm response to HK housing measures
Move not enough to meet people's needs or curb prices, analysts say
HONG KONG: New measures outlined in Hong Kong chief executive Donald Tsang's policy blueprint will not satisfy the people's demand for government help to become home owners and will have no immediate impact on rising property prices, academics and market watchers said.
Mr Tsang announced on Wednesday measures aimed at cooling the housing market - which took up nearly a quarter of his policy address, the South China Morning Post reported yesterday.
Mr Nicholas Brooke, chairman of Professional Property Services, said the policies were medium-term measures which will not solve the immediate problems facing society, the Post reported. A new subsidised-housing scheme under which 5,000 rent-and-buy flats will be supplied is not enough to solve the problem, he said. The first batch of 1,000 such flats in Tsing Yi will be available only by 2014.
'Why can't we sell the sites this year, or next month?' said Mr Brooke. 'Home prices will continue to rise.'
Mr Tsang had announced the 'rent-and-buy' programme called My Home Purchase Plan for the sandwich class who are too affluent to get public rental housing, but who do not have enough savings to make a down payment on a home.
Under the new scheme, the government will provide land for the Housing Society to build about 5,000 'no-frills' flats for lease to individuals and families at prevailing market rent for up to five years. During that time, tenants can buy the flat they are renting or another flat under the plan at its market price, or they can buy a flat in the private market, within a specified time.
They will receive a subsidy equivalent to half the net rental they paid during the tenancy period, and use it for part of the down payment.
To qualify for the scheme, applicants with families should earn a household income of no more than HK$39,000 (S$6,500) a month and have assets of no more than HK$600,000, the Post reported.
Primary school teacher Brian Cheung, 29, said it would be a long time before the rent-and-buy scheme starts. He hoped the HK$39,000 cap under the scheme could be raised because his earnings, combined with his fiancee's, exceeded it, but they still found it difficult to buy with government help.
Mr Tsang admitted that the scheme could not answer the public's immediate need, but said land and flat supply would be sufficient in the coming years, the Post reported.
His housing plans include increasing land supply by launching a public consultation on the reclamation outside Victoria Harbour to generate more land in the long run. The authorities will also speed up internal procedures to make more residential sites available to the market.
He pledged that in the next decade, the government would offer enough sites to build an average of 20,000 private flats a year.
And from yesterday, applicants to the Capital Investment Entrant Scheme - which earlier allowed investors, such as those from the Chinese mainland, to invest in real estate or specified financial assets to obtain permanent residency in Hong Kong - are no longer able to use real estate as an investment category. The government also raised the minimum investment under the scheme from HK$6.5 million to HK$10 million.
Mr Louis Chan, real estate agency Centaline's managing director for residential sales, predicted just a 5 per cent drop in the number of mainlanders buying high-end property following Mr Tsang's announcement, Agence France-Presse reported.
Property prices here have risen 15 per cent since the beginning of the year, after rising by a third last year. The increase is fuelled mainly by low interest rates and purchases by wealthy mainland Chinese facing policy tightening at home.
Dr Lau Kwok Yu, associate professor at City University's public and social administration department, said he was disappointed that the government rejected public calls for the resumption of the subsidised Home Ownership Scheme.
Mr Stewart Leung, vice-president of the Real Estate Developers Association, believed the new measures would not dampen the market, saying the land supply target of 20,000 units a year would have a positive impact on prices, the Post said.
Thursday, October 14, 2010
ST : HK chief addresses housing concerns
Oct 14, 2010
HK chief addresses housing concerns
Govt to release more land, curb property investment immigration
HONG KONG: The city will suspend a permanent residency scheme for wealthy investors and build more flats, as part of new measures to cool its overheating property sector and appease public anger.
In his annual policy address laying out Hong Kong's policy blueprint for the coming year, Chief Executive Donald Tsang said he was responding to public concern about the residential housing shortage and skyrocketing prices.
'Housing is currently the greatest concern of our people,' he said. 'Many find it unnerving that property prices have kept rising and years of hard-earned savings cannot even cover a down payment.'
To increase supply, the government will release land for about 20,000 more private flats annually over the coming decade, while about 61,000 private residential units will be added over the next three to four years.
Mr Tsang also announced plans to build residential property on the site of the city's old airport, Kai Tak, which was closed down in 1998. The prime site at Victoria Harbour remains undeveloped as the government cleans up heavy aviation pollution.
Property prices here have risen 15 per cent since the beginning of the year, after rising by a third last year. The increase is mainly fuelled by low interest rates and purchases by wealthy mainland Chinese facing policy tightening at home.
Some investors, such as those from the Chinese mainland, bought apartments in Hong Kong to take part in a scheme allowing them to obtain permanent residency if they invest at least HK$6.5 million (S$1.1 million) in real estate or specified financial assets. Since the introduction of the Capital Investment Scheme in October 2003, a total of HK$52.9 billion has been invested in the city, with a third of that going into property, Citigroup said in a report.
Mr Tsang said the government would adopt a temporary amendment to the scheme, which takes effect from today.
The speech sent share prices of major property developers plunging before the sector recovered much of its lost ground. Sun Hung Kai Properties dropped 0.59 per cent and Sino Land fell 0.12 per cent.
Mr Simon Smith, head of research at consultancy Savills Valuation and Professional Services, said: 'The new policy measures are fairly conservative... It is the government's intention to gently head off the bubble; it is not easy to do.'
Mr Tsang also said yesterday that Hong Kong's economy is expected to grow 5 to 6 per cent this year as it completes its recovery from the global financial crisis.
Noting the city's rich-poor gap, he said his administration will set up a HK$10 billion 'Community Care Fund' to provide assistance in areas not covered by the existing welfare system. He will raise half of the fund from the business community.
Critics said, however, that the proposals do not address poverty and property prices systematically. Opposition legislator Lee Cheuk-yan said the new charity fund is too ad hoc, urging Mr Tsang to launch a tax credit for the poor and a government-run pension instead.
Public anger was on display outside as Mr Tsang spoke inside the British colonial era Legislative Council building.
'With property prices soaring to new heights, the poorer sections of society have no hopes of buying their own apartments,' protester Penny Keung said.
Poor air quality, which is another frequent complaint of residents, was also addressed in Mr Tsang's speech. He said he aims to cut the city's greenhouse gas emissions by up to 33 per cent by 2020 with a shift from fossil fuels to nuclear energy, but environmentalists warned about the dangers of nuclear waste.
AGENCE FRANCE-PRESSE, REUTERS
HK chief addresses housing concerns
Govt to release more land, curb property investment immigration
HONG KONG: The city will suspend a permanent residency scheme for wealthy investors and build more flats, as part of new measures to cool its overheating property sector and appease public anger.
In his annual policy address laying out Hong Kong's policy blueprint for the coming year, Chief Executive Donald Tsang said he was responding to public concern about the residential housing shortage and skyrocketing prices.
'Housing is currently the greatest concern of our people,' he said. 'Many find it unnerving that property prices have kept rising and years of hard-earned savings cannot even cover a down payment.'
To increase supply, the government will release land for about 20,000 more private flats annually over the coming decade, while about 61,000 private residential units will be added over the next three to four years.
Mr Tsang also announced plans to build residential property on the site of the city's old airport, Kai Tak, which was closed down in 1998. The prime site at Victoria Harbour remains undeveloped as the government cleans up heavy aviation pollution.
Property prices here have risen 15 per cent since the beginning of the year, after rising by a third last year. The increase is mainly fuelled by low interest rates and purchases by wealthy mainland Chinese facing policy tightening at home.
Some investors, such as those from the Chinese mainland, bought apartments in Hong Kong to take part in a scheme allowing them to obtain permanent residency if they invest at least HK$6.5 million (S$1.1 million) in real estate or specified financial assets. Since the introduction of the Capital Investment Scheme in October 2003, a total of HK$52.9 billion has been invested in the city, with a third of that going into property, Citigroup said in a report.
Mr Tsang said the government would adopt a temporary amendment to the scheme, which takes effect from today.
The speech sent share prices of major property developers plunging before the sector recovered much of its lost ground. Sun Hung Kai Properties dropped 0.59 per cent and Sino Land fell 0.12 per cent.
Mr Simon Smith, head of research at consultancy Savills Valuation and Professional Services, said: 'The new policy measures are fairly conservative... It is the government's intention to gently head off the bubble; it is not easy to do.'
Mr Tsang also said yesterday that Hong Kong's economy is expected to grow 5 to 6 per cent this year as it completes its recovery from the global financial crisis.
Noting the city's rich-poor gap, he said his administration will set up a HK$10 billion 'Community Care Fund' to provide assistance in areas not covered by the existing welfare system. He will raise half of the fund from the business community.
Critics said, however, that the proposals do not address poverty and property prices systematically. Opposition legislator Lee Cheuk-yan said the new charity fund is too ad hoc, urging Mr Tsang to launch a tax credit for the poor and a government-run pension instead.
Public anger was on display outside as Mr Tsang spoke inside the British colonial era Legislative Council building.
'With property prices soaring to new heights, the poorer sections of society have no hopes of buying their own apartments,' protester Penny Keung said.
Poor air quality, which is another frequent complaint of residents, was also addressed in Mr Tsang's speech. He said he aims to cut the city's greenhouse gas emissions by up to 33 per cent by 2020 with a shift from fossil fuels to nuclear energy, but environmentalists warned about the dangers of nuclear waste.
AGENCE FRANCE-PRESSE, REUTERS
ST : Woman loses battle to save her property firm
Oct 14, 2010
Woman loses battle to save her property firm
Court orders winding up of debt-ridden Consult Asia
By K.C. Vijayan
A BUSINESSWOMAN here has failed to stop her debt-ridden firm, property developer Consult Asia, from being wound up.
High Court Judge Lai Siu Chiu, who ordered the winding up of Ms Florence Koh's firm, has approved the appointment of FTI Consulting as liquidators for Consult Asia.
FTI will move in to search and recover assets the firm may have, in order to settle its debts.
Ms Koh, 46, a former lawyer, has been battling for the last five months to keep a grip on her firm, which began in 1993 as a management consultancy and went on to become a developer. She had owned all but one of the firm's one million shares.
In December 2006, she approached DB Trustee (Hong Kong), a Hong Kong-based subsidiary of Deutsche Bank, to underwrite a loan of $54.6 million.
To secure the loan, she pledged Consult Asia's assets to DB as collateral.
When Consult Asia started defaulting on the loan in August 2008, DB Trustee sought repayment.
Receivers moved in that month, seizing two of the firm's key properties and selling them, retrieving $40.8 million.
One property was a refurbished conservation house with a six-storey extension in Balestier Road; the other was a plot of land at the junction of Still and Changi roads, which had been earmarked for development into a mall-cum-residence.
With $40.8 million in returns from the sale, DB Trustee was still owed some $26 million as of July, said court documents.
This outstanding sum led to Monday's move to wind up the firm.
The firm, through its lawyer Nicholas Narayanan, objected to the High Court move to liquidate it on the grounds that the two properties had been sold at less than what they were worth; Mr Narayanan said a valuation report estimated that they could have fetched about $75 million, which would have cleared its debts and forestalled the liquidation.
To Consult Asia's making a claim against DB Trustee for the undervaluation, DB's lawyers countered that Consult Asia should have sued the receivers and managers appointed to handle the sale if they were unhappy.
For Ms Koh, the court order is her third setback in five months. In July, she was ordered to pay a $20,000 fine for being in contempt of court; she had repeatedly failed to hand over records sought by receivers and managers. Two months before that, she was ordered to personally bear legal costs for two cases she lost in the Court of Appeal involving the firm.
vijayan@sph.com.sg
Woman loses battle to save her property firm
Court orders winding up of debt-ridden Consult Asia
By K.C. Vijayan
A BUSINESSWOMAN here has failed to stop her debt-ridden firm, property developer Consult Asia, from being wound up.
High Court Judge Lai Siu Chiu, who ordered the winding up of Ms Florence Koh's firm, has approved the appointment of FTI Consulting as liquidators for Consult Asia.
FTI will move in to search and recover assets the firm may have, in order to settle its debts.
Ms Koh, 46, a former lawyer, has been battling for the last five months to keep a grip on her firm, which began in 1993 as a management consultancy and went on to become a developer. She had owned all but one of the firm's one million shares.
In December 2006, she approached DB Trustee (Hong Kong), a Hong Kong-based subsidiary of Deutsche Bank, to underwrite a loan of $54.6 million.
To secure the loan, she pledged Consult Asia's assets to DB as collateral.
When Consult Asia started defaulting on the loan in August 2008, DB Trustee sought repayment.
Receivers moved in that month, seizing two of the firm's key properties and selling them, retrieving $40.8 million.
One property was a refurbished conservation house with a six-storey extension in Balestier Road; the other was a plot of land at the junction of Still and Changi roads, which had been earmarked for development into a mall-cum-residence.
With $40.8 million in returns from the sale, DB Trustee was still owed some $26 million as of July, said court documents.
This outstanding sum led to Monday's move to wind up the firm.
The firm, through its lawyer Nicholas Narayanan, objected to the High Court move to liquidate it on the grounds that the two properties had been sold at less than what they were worth; Mr Narayanan said a valuation report estimated that they could have fetched about $75 million, which would have cleared its debts and forestalled the liquidation.
To Consult Asia's making a claim against DB Trustee for the undervaluation, DB's lawyers countered that Consult Asia should have sued the receivers and managers appointed to handle the sale if they were unhappy.
For Ms Koh, the court order is her third setback in five months. In July, she was ordered to pay a $20,000 fine for being in contempt of court; she had repeatedly failed to hand over records sought by receivers and managers. Two months before that, she was ordered to personally bear legal costs for two cases she lost in the Court of Appeal involving the firm.
vijayan@sph.com.sg
ST : Paramount Hotel site up for sale again
Oct 14, 2010
Paramount Hotel site up for sale again
By Joyce Teo
THE freehold site occupied by Paramount Hotel and Paramount Shopping Centre is up for collective sale with the same asking price as that three years ago - $200 million.
Located near the popular Parkway Parade mall in the east, the plot boasts frontage along both Marine Parade and East Coast roads.
The ageing 229-room hotel and 95 shops that the land currently hosts are housed in a four-storey podium and an eight-storey tower block.
Marketing agent Jones Lang LaSalle said the 102,685 sq ft site - which the owners unsuccessfully tried to sell in 2007 - has a gross plot ratio of up to 3.0 and an indicative price of $200 million.
The firm said the land currently zoned for hotel use could be redeveloped into a hotel-cum-retail development, with a gross floor area of up to 308,056 sq ft and up to 460 hotel rooms.
Jones Lang LaSalle's national director and head of commercial investments, Ms Quek Soh Hoon, said the site - located in an established residential area - can be converted to residential use, albeit at a lower gross plot ratio of 2.1.
She said it could take a high-rise tower with 205 residential apartments, assuming a unit size of 1,000 sq ft.
Assuming 60 per cent of the site is redeveloped into a hotel with the rest earmarked for commercial use, the vendors' asking price for the land parcel would work out to $691 per sq ft (psf) per plot ratio.
This is inclusive of a development charge of about $12.8 million.
But if a potential buyer wants to build a condominium on the site, the asking price would work out to $1,113 psf, inclusive of a higher development charge of $40 million, said Ms Quek.
In this case, condo units may have to be sold at $1,900 to $2,000 psf - a new benchmark level for the area.
Singapore-based YTC Corporation owns Paramount Hotel as well as a few shop units, while the other shops are owned by different individuals.
YTC also owns Peninsula Excelsior Hotel in Coleman Street.
The tender closes on Nov 23.
Paramount Hotel site up for sale again
By Joyce Teo
THE freehold site occupied by Paramount Hotel and Paramount Shopping Centre is up for collective sale with the same asking price as that three years ago - $200 million.
Located near the popular Parkway Parade mall in the east, the plot boasts frontage along both Marine Parade and East Coast roads.
The ageing 229-room hotel and 95 shops that the land currently hosts are housed in a four-storey podium and an eight-storey tower block.
Marketing agent Jones Lang LaSalle said the 102,685 sq ft site - which the owners unsuccessfully tried to sell in 2007 - has a gross plot ratio of up to 3.0 and an indicative price of $200 million.
The firm said the land currently zoned for hotel use could be redeveloped into a hotel-cum-retail development, with a gross floor area of up to 308,056 sq ft and up to 460 hotel rooms.
Jones Lang LaSalle's national director and head of commercial investments, Ms Quek Soh Hoon, said the site - located in an established residential area - can be converted to residential use, albeit at a lower gross plot ratio of 2.1.
She said it could take a high-rise tower with 205 residential apartments, assuming a unit size of 1,000 sq ft.
Assuming 60 per cent of the site is redeveloped into a hotel with the rest earmarked for commercial use, the vendors' asking price for the land parcel would work out to $691 per sq ft (psf) per plot ratio.
This is inclusive of a development charge of about $12.8 million.
But if a potential buyer wants to build a condominium on the site, the asking price would work out to $1,113 psf, inclusive of a higher development charge of $40 million, said Ms Quek.
In this case, condo units may have to be sold at $1,900 to $2,000 psf - a new benchmark level for the area.
Singapore-based YTC Corporation owns Paramount Hotel as well as a few shop units, while the other shops are owned by different individuals.
YTC also owns Peninsula Excelsior Hotel in Coleman Street.
The tender closes on Nov 23.
ST : HDB flats - a plump investment option
Oct 14, 2010
HDB flats - a plump investment option
No surprise, given their great locations and high rental yields
By Dennis Chan
LAST week's news of an HUDC flat in Bishan changing hands at $1.1 million has ignited fresh discussion on public housing among keen property watchers.
Should a 24-year-old public flat on a 99-year lease be worth so much?
To be fair, it is a misnomer to equate the record-setting Shunfu Road flat at Block 315 with public housing - although technically, it is correct.
HUDC estates are an anachronism from the 1970s, a hybrid housing type to meet the needs of middle-income Singaporeans who did not qualify for Housing Board (HDB) flats but could not afford private property. Only 18 such estates were built before the HUDC programme was stopped in 1987 due to falling demand.
Since then, all HUDC estates, with the exception of Braddell View, have been privatised or earmarked for privatisation.
This explains the $1.1 million price tag for the 1,668 sq foot apartment, which works out to $659 per sq foot (psf). The Shunfu HUDC estate is in the midst of being privatised, explaining the high price. The value of an HUDC flat usually rises when the estate is privatised and ownership restrictions are lifted. Some estates also gate up their grounds and build a clubhouse and swimming pool, increasing the value to buyers.
The price paid is reasonable for a private apartment in District 20, a short walk to the Marymount MRT station.
But for a true reflection of the value of an HDB flat, you have to look at HDB transactions in that area.
A bigger HDB executive maisonette at Block 301, even closer to the MRT station, fetched $760,000 or $447 psf.
These two Shunfu transactions, registered last month, were likely inked around July - before the Government's Aug 30 measures to cool the property market. Since then, HDB estimates that transaction volumes last month have fallen by a quarter compared with the previous month.
Under these circumstances, we are unlikely to see an HDB flat cross the psychological threshold of $1 million soon. The record of $900,000 for a penthouse maisonette in Bishan Street 24 transacted in July should remain safe for a while.
In fact, some property analysts are predicting a slide in HDB prices, following the tightening of credit and changes in rules making it harder for private property owners to buy an HDB resale flat.
Based on lower upfront cash demanded by sellers, ERA Asia-Pacific associate director Eugene Lim estimated prices have softened by 5 per cent.
While the recent cooling measures may dampen prices for a while, market fundamentals will take over. So long as the economy hums along and the population continues to grow, prices of HDB flats will remain firm, as they are good investment options with high rental yield.
Take a three-room flat in Toa Payoh. Based on HDB data, the median price is $300,000 while the median rent is $1,550 a month. This works out to a rental yield of 6.2 per cent. And if the Toa Payoh flat price were to fall by 10 per cent, the yield will rise to almost 7 per cent.
Consider that banks pay a measly 0.125 per cent for deposits, and that home financing costs hover at 1.5 per cent to 2.6 per cent interest - and it seems almost a no-brainer to buy an HDB flat, fulfil the requisite minimum occupation period (now five years) and then let it out.
There is a simple reason why HDB flats attract such good yield.
They tend to be well located, with many within walking distance of MRT stations, and with an abundance of amenities such as schools, markets and eating outlets nearby. Buyers also have the confidence that even an ageing HDB estate will be well maintained.
Moreover, HDB flat prices are, in a sense, artificially depressed because of ownership restrictions. Buyers must stay in a flat for five years. Only citizens and permanent residents are eligible to buy HDB flats.
HDB flats thus exchange hands at prices lower than what they could fetch if those ownership restrictions were lifted.
In contrast, rental rates for HDB flats reflect the full market value of their excellent location and surrounding amenities, which is why HDB flats, on a psf basis, can be rented out for as much if not more than private condos in far-flung estates.
When rental rates are high while sale prices are depressed, the rental yield becomes more attractive.
The Government's commitment to public housing and its constant injection of funds to spruce up HDB estates, means an HDB flat here has enormous stored value, unlike public housing elsewhere.
It was baffling to hear some analysts advising owners to sell their flats, on the premise that prices have peaked, with little upside expected.
Between selling an HDB flat for capital gain and keeping it for long-term rental income, I would plump for the latter.
So what if someone offers you $50,000 more than what your flat is worth today? You can make back that same amount by letting it out for less than three years, if you take the example of the three-room Toa Payoh flat above.
Just how much stored value there is in HDB estates can be estimated by looking at the Pinnacle@Duxton development in Tanjong Pagar. A recent classified advertisement had an asking rent of $4,500 a month for a five-room unit. The eventual rental may be a tad lower, but the asking price is indicative of the attractiveness of HDB flats in prime locations.
The Pinnacle, with its excellent location and ground-breaking architecture, sold at an average price of $335,000 for four-room flats and $395,000 for five-room flats at its 2004 initial launch. Leftover flats were sold at average prices of $486,000 and $590,000 respectively last year. The priciest was a 49th-storey unit sold at $645,800.
Pinnacle flats should be available on the resale market from end-2014 when the five-year minimum occupation period is up. If there is one HDB development that can breach the $1 million mark, the Pinnacle is it.
And remember, you read it here first.
dennis@sph.com.sg
HDB flats - a plump investment option
No surprise, given their great locations and high rental yields
By Dennis Chan
LAST week's news of an HUDC flat in Bishan changing hands at $1.1 million has ignited fresh discussion on public housing among keen property watchers.
Should a 24-year-old public flat on a 99-year lease be worth so much?
To be fair, it is a misnomer to equate the record-setting Shunfu Road flat at Block 315 with public housing - although technically, it is correct.
HUDC estates are an anachronism from the 1970s, a hybrid housing type to meet the needs of middle-income Singaporeans who did not qualify for Housing Board (HDB) flats but could not afford private property. Only 18 such estates were built before the HUDC programme was stopped in 1987 due to falling demand.
Since then, all HUDC estates, with the exception of Braddell View, have been privatised or earmarked for privatisation.
This explains the $1.1 million price tag for the 1,668 sq foot apartment, which works out to $659 per sq foot (psf). The Shunfu HUDC estate is in the midst of being privatised, explaining the high price. The value of an HUDC flat usually rises when the estate is privatised and ownership restrictions are lifted. Some estates also gate up their grounds and build a clubhouse and swimming pool, increasing the value to buyers.
The price paid is reasonable for a private apartment in District 20, a short walk to the Marymount MRT station.
But for a true reflection of the value of an HDB flat, you have to look at HDB transactions in that area.
A bigger HDB executive maisonette at Block 301, even closer to the MRT station, fetched $760,000 or $447 psf.
These two Shunfu transactions, registered last month, were likely inked around July - before the Government's Aug 30 measures to cool the property market. Since then, HDB estimates that transaction volumes last month have fallen by a quarter compared with the previous month.
Under these circumstances, we are unlikely to see an HDB flat cross the psychological threshold of $1 million soon. The record of $900,000 for a penthouse maisonette in Bishan Street 24 transacted in July should remain safe for a while.
In fact, some property analysts are predicting a slide in HDB prices, following the tightening of credit and changes in rules making it harder for private property owners to buy an HDB resale flat.
Based on lower upfront cash demanded by sellers, ERA Asia-Pacific associate director Eugene Lim estimated prices have softened by 5 per cent.
While the recent cooling measures may dampen prices for a while, market fundamentals will take over. So long as the economy hums along and the population continues to grow, prices of HDB flats will remain firm, as they are good investment options with high rental yield.
Take a three-room flat in Toa Payoh. Based on HDB data, the median price is $300,000 while the median rent is $1,550 a month. This works out to a rental yield of 6.2 per cent. And if the Toa Payoh flat price were to fall by 10 per cent, the yield will rise to almost 7 per cent.
Consider that banks pay a measly 0.125 per cent for deposits, and that home financing costs hover at 1.5 per cent to 2.6 per cent interest - and it seems almost a no-brainer to buy an HDB flat, fulfil the requisite minimum occupation period (now five years) and then let it out.
There is a simple reason why HDB flats attract such good yield.
They tend to be well located, with many within walking distance of MRT stations, and with an abundance of amenities such as schools, markets and eating outlets nearby. Buyers also have the confidence that even an ageing HDB estate will be well maintained.
Moreover, HDB flat prices are, in a sense, artificially depressed because of ownership restrictions. Buyers must stay in a flat for five years. Only citizens and permanent residents are eligible to buy HDB flats.
HDB flats thus exchange hands at prices lower than what they could fetch if those ownership restrictions were lifted.
In contrast, rental rates for HDB flats reflect the full market value of their excellent location and surrounding amenities, which is why HDB flats, on a psf basis, can be rented out for as much if not more than private condos in far-flung estates.
When rental rates are high while sale prices are depressed, the rental yield becomes more attractive.
The Government's commitment to public housing and its constant injection of funds to spruce up HDB estates, means an HDB flat here has enormous stored value, unlike public housing elsewhere.
It was baffling to hear some analysts advising owners to sell their flats, on the premise that prices have peaked, with little upside expected.
Between selling an HDB flat for capital gain and keeping it for long-term rental income, I would plump for the latter.
So what if someone offers you $50,000 more than what your flat is worth today? You can make back that same amount by letting it out for less than three years, if you take the example of the three-room Toa Payoh flat above.
Just how much stored value there is in HDB estates can be estimated by looking at the Pinnacle@Duxton development in Tanjong Pagar. A recent classified advertisement had an asking rent of $4,500 a month for a five-room unit. The eventual rental may be a tad lower, but the asking price is indicative of the attractiveness of HDB flats in prime locations.
The Pinnacle, with its excellent location and ground-breaking architecture, sold at an average price of $335,000 for four-room flats and $395,000 for five-room flats at its 2004 initial launch. Leftover flats were sold at average prices of $486,000 and $590,000 respectively last year. The priciest was a 49th-storey unit sold at $645,800.
Pinnacle flats should be available on the resale market from end-2014 when the five-year minimum occupation period is up. If there is one HDB development that can breach the $1 million mark, the Pinnacle is it.
And remember, you read it here first.
dennis@sph.com.sg
Tuesday, October 12, 2010
ST : Freehold city condo in the works
Oct 12, 2010
Freehold city condo in the works
Project is a result of Keppel Land and K-Reit Asia property swop
By Fiona Chan
ONE of the few freehold residential projects to be built in Singapore's city centre is now on the drawing board thanks to an unusual property deal.
The project will be constructed in Tanjong Pagar, where Keppel Towers and GE Tower now stand, and is the result of a rare swop of properties between two companies.
K-Reit Asia, the real estate investment trust that owns Keppel Towers and GE Tower, is selling the two freehold office buildings to Keppel Land for $573 million.
In return, Keppel Land will sell its one-third stake in Phase One of Marina Bay Financial Centre (MBFC) to K-Reit Asia for just over $1.4 billion. Keppel will reap a net gain of about $321 million from selling the asset.
Based on these prices, the values of the properties work out to be $2,450 per sq ft (psf) for MBFC, and $1,201 psf for the total potential floor area of Keppel Towers and GE Tower.
Keppel plans to redevelop the office buildings in Hoe Chiang Road diagonally opposite Amara Singapore hotel into a high-rise condominium with shops and restaurants on the first floor. It will comprise two towers of 620 apartments in all.
The developer has already obtained outline planning permission from the Urban Redevelopment Authority to redevelop the site with a plot ratio of 5.6 and a total gross floor area of 481,800 sq ft.
At a joint press conference yesterday, senior executives of both companies described the deal as a 'win-win' situation.
It is a chance for Keppel Land to acquire a freehold residential site in an area that will undergo major redevelopment in the coming years, with the relocation of ports and the Malaysian railway station.
'The site is well-positioned to ride on the growing popularity of city living,' said its chief financial officer Lim Kei Hin.
Property consultants told The Straits Times they expect strong demand for the new freehold condominium.
'There are hardly any freehold residential properties downtown, and the site is well-located between the financial district and the HarbourFront area,' said Ms Tay Huey Ying, director of research and advisory at Colliers International.
Going by the break-even price and values of other condominiums in the area, the new project could fetch prices above $2,000 psf, said Cushman & Wakefield managing director Donald Han.
He also noted that the asset swop reflects the 'symbiotic relationship' between Keppel and K-Reit, which provides a steady stream of properties to each company, helping them get around the difficulty of acquiring new and desirable assets on the open market.
Keppel's Mr Lim said yesterday that divesting the MBFC stake allows his firm to unlock the value of that investment and help in the growth of K-Reit Asia, of which Keppel has a 40 per cent stake.
The chief executive of K-Reit Asia Management Ng Hsueh Ling said she had approached Keppel to suggest the deal, as Keppel Towers and GE Tower were getting old and required increasingly expensive maintenance. Keppel Towers is 19 years old while GE Tower is 17 years old.
After the asset swop goes through, 90 per cent of K-Reit Asia's portfolio will be in the prime Marina Bay and Raffles Place areas, up from 60 per cent previously, said Ms Ng.
The 99-year leasehold MBFC consists of two office towers that are fully leased to tenants, including Standard Chartered Bank and Barclays, as well as the underground Marina Bay Link Mall, which is about 87 per cent leased.
More importantly, the transaction announced yesterday will strengthen both companies' financials.
Keppel will receive net cash proceeds of $812 million from the deal, which Mr Lim said it will use to seek out investment opportunities in commercial and residential properties in Singapore, China, Vietnam, Indonesia and India.
K-Reit said the acquisition of the MBFC stake will give its unit holders a higher average return than before, although it could not reveal exact figures yet. It will finance the deal with proceeds from the sale of Keppel Towers and GE Tower, additional loans and proceeds from last year's rights issue.
fiochan@sph.com.sg
--------------------------------------------------------------------------------
· Keppel Land will buy Keppel Towers and GE Tower (both in photo above, Keppel Towers at left) from K-Reit Asia for $573 million.
· Keppel Land plans to redevelop the site into a high-rise freehold condominium with a plot ratio of 5.6 and a total gross floor area of 481,800 sq ft.
· It will have two towers and 620 apartments. On the first floor, there will be shops and restaurants.
-- BT FILE PHOTO
Freehold city condo in the works
Project is a result of Keppel Land and K-Reit Asia property swop
By Fiona Chan
ONE of the few freehold residential projects to be built in Singapore's city centre is now on the drawing board thanks to an unusual property deal.
The project will be constructed in Tanjong Pagar, where Keppel Towers and GE Tower now stand, and is the result of a rare swop of properties between two companies.
K-Reit Asia, the real estate investment trust that owns Keppel Towers and GE Tower, is selling the two freehold office buildings to Keppel Land for $573 million.
In return, Keppel Land will sell its one-third stake in Phase One of Marina Bay Financial Centre (MBFC) to K-Reit Asia for just over $1.4 billion. Keppel will reap a net gain of about $321 million from selling the asset.
Based on these prices, the values of the properties work out to be $2,450 per sq ft (psf) for MBFC, and $1,201 psf for the total potential floor area of Keppel Towers and GE Tower.
Keppel plans to redevelop the office buildings in Hoe Chiang Road diagonally opposite Amara Singapore hotel into a high-rise condominium with shops and restaurants on the first floor. It will comprise two towers of 620 apartments in all.
The developer has already obtained outline planning permission from the Urban Redevelopment Authority to redevelop the site with a plot ratio of 5.6 and a total gross floor area of 481,800 sq ft.
At a joint press conference yesterday, senior executives of both companies described the deal as a 'win-win' situation.
It is a chance for Keppel Land to acquire a freehold residential site in an area that will undergo major redevelopment in the coming years, with the relocation of ports and the Malaysian railway station.
'The site is well-positioned to ride on the growing popularity of city living,' said its chief financial officer Lim Kei Hin.
Property consultants told The Straits Times they expect strong demand for the new freehold condominium.
'There are hardly any freehold residential properties downtown, and the site is well-located between the financial district and the HarbourFront area,' said Ms Tay Huey Ying, director of research and advisory at Colliers International.
Going by the break-even price and values of other condominiums in the area, the new project could fetch prices above $2,000 psf, said Cushman & Wakefield managing director Donald Han.
He also noted that the asset swop reflects the 'symbiotic relationship' between Keppel and K-Reit, which provides a steady stream of properties to each company, helping them get around the difficulty of acquiring new and desirable assets on the open market.
Keppel's Mr Lim said yesterday that divesting the MBFC stake allows his firm to unlock the value of that investment and help in the growth of K-Reit Asia, of which Keppel has a 40 per cent stake.
The chief executive of K-Reit Asia Management Ng Hsueh Ling said she had approached Keppel to suggest the deal, as Keppel Towers and GE Tower were getting old and required increasingly expensive maintenance. Keppel Towers is 19 years old while GE Tower is 17 years old.
After the asset swop goes through, 90 per cent of K-Reit Asia's portfolio will be in the prime Marina Bay and Raffles Place areas, up from 60 per cent previously, said Ms Ng.
The 99-year leasehold MBFC consists of two office towers that are fully leased to tenants, including Standard Chartered Bank and Barclays, as well as the underground Marina Bay Link Mall, which is about 87 per cent leased.
More importantly, the transaction announced yesterday will strengthen both companies' financials.
Keppel will receive net cash proceeds of $812 million from the deal, which Mr Lim said it will use to seek out investment opportunities in commercial and residential properties in Singapore, China, Vietnam, Indonesia and India.
K-Reit said the acquisition of the MBFC stake will give its unit holders a higher average return than before, although it could not reveal exact figures yet. It will finance the deal with proceeds from the sale of Keppel Towers and GE Tower, additional loans and proceeds from last year's rights issue.
fiochan@sph.com.sg
--------------------------------------------------------------------------------
· Keppel Land will buy Keppel Towers and GE Tower (both in photo above, Keppel Towers at left) from K-Reit Asia for $573 million.
· Keppel Land plans to redevelop the site into a high-rise freehold condominium with a plot ratio of 5.6 and a total gross floor area of 481,800 sq ft.
· It will have two towers and 620 apartments. On the first floor, there will be shops and restaurants.
-- BT FILE PHOTO
ST : Small investors get a chance at mega IPO
Oct 12, 2010
Small investors get a chance at mega IPO
GIC sets aside 102m shares for the public at $1.96 apiece
By Francis Chan
THE Government of Singapore Investment Corporation (GIC) has, for the first time, swung open its doors for the man in the street to invest in one of its businesses.
Yesterday, Global Logistics Properties (GLP), the real estate unit of the sovereign wealth fund, launched what could be Singapore's largest initial public offering (IPO) since SingTel went public in 1993.
GLP is set to raise $3.45 billion by listing its shares - priced at $1.96 apiece - on the Singapore Exchange (SGX).
The IPO will comprise 1.76 billion shares, of which about 102 million will be offered to small-time investors.
Application for GLP shares opened at 6pm yesterday for retail investors, who must apply for at least 1,000 shares, or $1,960 worth of the counter.
As with most listings on the SGX, the lion's share of this widely anticipated IPO will go to institutional players and other larger investors. In GLP's case, this works out to about one billion shares.
The remaining 589 million shares will be taken up by 10 other parties with deeper pockets, often referred to as 'cornerstone investors'.
According to GLP chairman Jeffrey Schwartz, some of these cornerstone investors have already committed close to $1.2 billion in the firm.
They include establishments such as China's National Council for Social Security Fund, e-commerce firm Alibaba Group, and wealthy individuals like Singapore's former 'remisier king' Peter Lim.
However, if interest from the market is strong, another 235 million shares could be offered as part of an 'over-allotment' option.
This would bump up GLP's offer to about $3.9 billion, close to SingTel's $4 billion-plus deal launched 17 years ago.
GLP is a major player in the fast-growing modern logistics facilities market in China and Japan, two of Asia's largest economies.
It owns, manages and leases out a network of 296 properties located across 25 major cities in the two countries. Some of its multinational and domestic clients include Wal-Mart China, major logistics players such as DHL, FedEx, and UPS, and electronics giants Sony and Panasonic.
Dr Seet Ngee Huat, president of GIC Real Estate, said the capital raised from the IPO will help GLP maximise its growth potential.
'GLP is looking to position itself for long-term growth through this proposed listing,' added Dr Seet.
Mr Peter Lim told The Straits Times that the counter was a good investment with a lot of growth potential, especially in China.
Retail investors also welcomed the mega-IPO, but some like Mr Benjamin Tan, 47, have gripes about the modest size of the offer for retail investors, who would likely have to ballot for a stake.
'It's a GIC-backed share and their business is in a growing segment in China, so naturally I would be keen, but small-timers like me can only keep my fingers crossed and hope I get to take part,' added Mr Tan.
Analysts are expecting the counter to be 'hotly subscribed' owing to its GIC connection.
In a lunchtime note to clients yesterday, analysts from Kim Eng Securities said there was 'no harm subscribing' to the offer because of the 56.8 per cent controlling stake GIC retains in GLP.
GIC will remain as the largest single shareholder of GLP after the IPO.
The offer closes at 10am this Thursday and trading of the stock is expected to start next Monday.
franchan@sph.com.sg
Small investors get a chance at mega IPO
GIC sets aside 102m shares for the public at $1.96 apiece
By Francis Chan
THE Government of Singapore Investment Corporation (GIC) has, for the first time, swung open its doors for the man in the street to invest in one of its businesses.
Yesterday, Global Logistics Properties (GLP), the real estate unit of the sovereign wealth fund, launched what could be Singapore's largest initial public offering (IPO) since SingTel went public in 1993.
GLP is set to raise $3.45 billion by listing its shares - priced at $1.96 apiece - on the Singapore Exchange (SGX).
The IPO will comprise 1.76 billion shares, of which about 102 million will be offered to small-time investors.
Application for GLP shares opened at 6pm yesterday for retail investors, who must apply for at least 1,000 shares, or $1,960 worth of the counter.
As with most listings on the SGX, the lion's share of this widely anticipated IPO will go to institutional players and other larger investors. In GLP's case, this works out to about one billion shares.
The remaining 589 million shares will be taken up by 10 other parties with deeper pockets, often referred to as 'cornerstone investors'.
According to GLP chairman Jeffrey Schwartz, some of these cornerstone investors have already committed close to $1.2 billion in the firm.
They include establishments such as China's National Council for Social Security Fund, e-commerce firm Alibaba Group, and wealthy individuals like Singapore's former 'remisier king' Peter Lim.
However, if interest from the market is strong, another 235 million shares could be offered as part of an 'over-allotment' option.
This would bump up GLP's offer to about $3.9 billion, close to SingTel's $4 billion-plus deal launched 17 years ago.
GLP is a major player in the fast-growing modern logistics facilities market in China and Japan, two of Asia's largest economies.
It owns, manages and leases out a network of 296 properties located across 25 major cities in the two countries. Some of its multinational and domestic clients include Wal-Mart China, major logistics players such as DHL, FedEx, and UPS, and electronics giants Sony and Panasonic.
Dr Seet Ngee Huat, president of GIC Real Estate, said the capital raised from the IPO will help GLP maximise its growth potential.
'GLP is looking to position itself for long-term growth through this proposed listing,' added Dr Seet.
Mr Peter Lim told The Straits Times that the counter was a good investment with a lot of growth potential, especially in China.
Retail investors also welcomed the mega-IPO, but some like Mr Benjamin Tan, 47, have gripes about the modest size of the offer for retail investors, who would likely have to ballot for a stake.
'It's a GIC-backed share and their business is in a growing segment in China, so naturally I would be keen, but small-timers like me can only keep my fingers crossed and hope I get to take part,' added Mr Tan.
Analysts are expecting the counter to be 'hotly subscribed' owing to its GIC connection.
In a lunchtime note to clients yesterday, analysts from Kim Eng Securities said there was 'no harm subscribing' to the offer because of the 56.8 per cent controlling stake GIC retains in GLP.
GIC will remain as the largest single shareholder of GLP after the IPO.
The offer closes at 10am this Thursday and trading of the stock is expected to start next Monday.
franchan@sph.com.sg
ST : 'Landed' HDB units fetch top dollar
Oct 12, 2010
'Landed' HDB units fetch top dollar
Recent transactions see COVs reaching as high as $98,000
By Daryl Chin
EXTREMELY rare, highly sought- after and only the cash-rich need apply.
'Landed' public flats, which come with an initial 99-year lease, are in hot demand, with some fetching cash-over-valuation (COV) of close to $100,000.
There are only 285 such units in Singapore and the scarcity of these two-storey terrace units, which are no longer built, explains why buyers are willing to pay the high COVs.
Located in Queenstown and Whampoa, these units come under Housing Board (HDB) rules. They were built in the 1960s by the Singapore Improvement Trust, the HDB's predecessor.
Those in Whampoa - along Jalan Bahagia, Jalan Ma'mor and Jalan Tenteram - were ready for occupation in 1972; the ones in Stirling Road, in Queenstown, were available in 1968.
Most are classified as three-room HDB units, that is, one living room and two bedrooms. Some Stirling Road units are four-roomers, with three bedrooms.
All started with a 99-year lease, so there are 61 years left for the Whampoa units and 57 years for Queenstown ones.
These units, which range from 840 sq ft to 3,000 sq ft, sold for about $12,000 to $21,000 back then.
Now, they are still seen as a sound investment. Current prices start at $570,000 and one was recently sold for $888,000.
Would-be buyers seem to be drawn to such units which - while pricier than typical surrounding high-rise HDB units - have 'landed home' qualities and are cheaper than private properties.
Mr Eugene Lim, associate director of ERA Asia Pacific, said: 'Buyers here are going for the 'landed' lifestyle without having to spend 'landed pricing'.
'These units are very hard to come by as there are very few built and most occupiers do not want to sell.'
Added Ms Janice Chan, director of Asia Breeze housing agency: 'Although they are old estates...you are getting a landed property in a good location with amenities such as eateries and shops, which means residents can expect to retain value - hence the premium.'
Price comparisons per-square-foot (psf) may be difficult, given market fluctuations. But this year, a three-room HDB terrace unit in Stirling Road sold at $670 psf, while a nearby three-room unit in an HDB high-rise block went for $470 psf.
In comparison, a slightly bigger private unit in nearby Queens condominium went for $1,200 psf, while a much larger semi-detached house along Merino Crescent went for $970 psf.
Ms Kayleigh Tan, who has been a property agent for 14 years, started specialising in Jalan Bahagia units last year because of the demand.
'Once you put a unit here on sale, the response is tremendous - twice that of a typical HDB flat. While most are younger couples, the eventual buyers tend to be older and more cash-rich,' said Ms Tan, 38.
The high COV these places command could be a reason. She is currently overseeing the sale of a 2,400 sq ft unit in Jalan Bahagia for $888,000.
The COV? An eye-popping $98,000 over its valuation price of $790,000.
But new measures to cool the property market may dampen demand for these units, which still fall under HDB rules.
Mr Adam Tan, corporate communications manager at PropNex, said: 'This means that although buyers could qualify for government housing loans...new rules like a minimum occupancy period of five years or giving up their private property still apply. Some might prefer to just buy private property instead.'
Another issue is that for HDB properties, the occupant is renting the space from the Government. Ms Chan of Asia Breeze said: 'For private properties, you own the title deed whereas for the HDB units, you are a lessee. If HDB decides to take back the land, you'll have very little choice.'
darylc@sph.com.sg
Two-storey terrace houses, such as these in Stirling Road, are rare, with only 285 such units in Singapore today. -- ST PHOTO: CHEW SENG KIM
Dream home in 'modern kampung'
MR LARRY Cheong and his wife waited two years for their dream home - a cosy 1,200 sq ft two-storey, three-room Housing Board (HDB) terrace house tucked away in a quiet locale.
Mr Cheong, 31, feels the Jalan Bahagia site is like a 'modern kampung'. The couple undertook 'countless viewings and site visits' before they bought the house and moved in earlier this year.
The salesman and his wife Yen, 28, a senior product specialist, paid just under $600,000 for their unit, which is in the Whampoa area. It has 61 years left, from the original 99-year lease.
'This place was very hard to get, as it is not like typical HDB flats. You don't have problems like having people on the floor above disturbing you, or waiting for the lift in a multi-storey block,' said Mr Cheong.
'When you go to most flats nowadays, people will just close the door when they get home. Here, there is really a sense of community,' he added, citing examples such as neighbours watering each other's plants and regular potluck sessions.
But not many potential buyers are as lucky as Mr Cheong.
While residents regularly receive offers for their houses, few take them up.
Mr Charlie Wong, 81, who owns a 1,400 sq ft terrace unit in Stirling Road, said he will not part with his home, which holds many memories for him. The house, which he bought in 1968 for $12,000, was where he and his wife Au Sang Yoon, 78, had their six children.
Not even offers of more than $420,000 can sway the retired mechanic.
'Besides, this place has a lot of convenient amenities. The train station nearby means it is very easy for us to move around,' he told The Straits Times.
Ms Audrey Lim, who grew up in another such unit in Stirling Road, is staying put for now.
'It is not very breezy and is near the road so there's dust and sometimes it floods when it rains,' said Ms Lim, 47. 'But I bought it from my parents - it's their prized possession - so I'll stay here for now.'
DARYL CHIN
Mr Cheong and his wife landed this terrace house for just under $600,000. -- ST PHOTO: AZIZ HUSSIN
'Landed' HDB units fetch top dollar
Recent transactions see COVs reaching as high as $98,000
By Daryl Chin
EXTREMELY rare, highly sought- after and only the cash-rich need apply.
'Landed' public flats, which come with an initial 99-year lease, are in hot demand, with some fetching cash-over-valuation (COV) of close to $100,000.
There are only 285 such units in Singapore and the scarcity of these two-storey terrace units, which are no longer built, explains why buyers are willing to pay the high COVs.
Located in Queenstown and Whampoa, these units come under Housing Board (HDB) rules. They were built in the 1960s by the Singapore Improvement Trust, the HDB's predecessor.
Those in Whampoa - along Jalan Bahagia, Jalan Ma'mor and Jalan Tenteram - were ready for occupation in 1972; the ones in Stirling Road, in Queenstown, were available in 1968.
Most are classified as three-room HDB units, that is, one living room and two bedrooms. Some Stirling Road units are four-roomers, with three bedrooms.
All started with a 99-year lease, so there are 61 years left for the Whampoa units and 57 years for Queenstown ones.
These units, which range from 840 sq ft to 3,000 sq ft, sold for about $12,000 to $21,000 back then.
Now, they are still seen as a sound investment. Current prices start at $570,000 and one was recently sold for $888,000.
Would-be buyers seem to be drawn to such units which - while pricier than typical surrounding high-rise HDB units - have 'landed home' qualities and are cheaper than private properties.
Mr Eugene Lim, associate director of ERA Asia Pacific, said: 'Buyers here are going for the 'landed' lifestyle without having to spend 'landed pricing'.
'These units are very hard to come by as there are very few built and most occupiers do not want to sell.'
Added Ms Janice Chan, director of Asia Breeze housing agency: 'Although they are old estates...you are getting a landed property in a good location with amenities such as eateries and shops, which means residents can expect to retain value - hence the premium.'
Price comparisons per-square-foot (psf) may be difficult, given market fluctuations. But this year, a three-room HDB terrace unit in Stirling Road sold at $670 psf, while a nearby three-room unit in an HDB high-rise block went for $470 psf.
In comparison, a slightly bigger private unit in nearby Queens condominium went for $1,200 psf, while a much larger semi-detached house along Merino Crescent went for $970 psf.
Ms Kayleigh Tan, who has been a property agent for 14 years, started specialising in Jalan Bahagia units last year because of the demand.
'Once you put a unit here on sale, the response is tremendous - twice that of a typical HDB flat. While most are younger couples, the eventual buyers tend to be older and more cash-rich,' said Ms Tan, 38.
The high COV these places command could be a reason. She is currently overseeing the sale of a 2,400 sq ft unit in Jalan Bahagia for $888,000.
The COV? An eye-popping $98,000 over its valuation price of $790,000.
But new measures to cool the property market may dampen demand for these units, which still fall under HDB rules.
Mr Adam Tan, corporate communications manager at PropNex, said: 'This means that although buyers could qualify for government housing loans...new rules like a minimum occupancy period of five years or giving up their private property still apply. Some might prefer to just buy private property instead.'
Another issue is that for HDB properties, the occupant is renting the space from the Government. Ms Chan of Asia Breeze said: 'For private properties, you own the title deed whereas for the HDB units, you are a lessee. If HDB decides to take back the land, you'll have very little choice.'
darylc@sph.com.sg
Two-storey terrace houses, such as these in Stirling Road, are rare, with only 285 such units in Singapore today. -- ST PHOTO: CHEW SENG KIM
Dream home in 'modern kampung'
MR LARRY Cheong and his wife waited two years for their dream home - a cosy 1,200 sq ft two-storey, three-room Housing Board (HDB) terrace house tucked away in a quiet locale.
Mr Cheong, 31, feels the Jalan Bahagia site is like a 'modern kampung'. The couple undertook 'countless viewings and site visits' before they bought the house and moved in earlier this year.
The salesman and his wife Yen, 28, a senior product specialist, paid just under $600,000 for their unit, which is in the Whampoa area. It has 61 years left, from the original 99-year lease.
'This place was very hard to get, as it is not like typical HDB flats. You don't have problems like having people on the floor above disturbing you, or waiting for the lift in a multi-storey block,' said Mr Cheong.
'When you go to most flats nowadays, people will just close the door when they get home. Here, there is really a sense of community,' he added, citing examples such as neighbours watering each other's plants and regular potluck sessions.
But not many potential buyers are as lucky as Mr Cheong.
While residents regularly receive offers for their houses, few take them up.
Mr Charlie Wong, 81, who owns a 1,400 sq ft terrace unit in Stirling Road, said he will not part with his home, which holds many memories for him. The house, which he bought in 1968 for $12,000, was where he and his wife Au Sang Yoon, 78, had their six children.
Not even offers of more than $420,000 can sway the retired mechanic.
'Besides, this place has a lot of convenient amenities. The train station nearby means it is very easy for us to move around,' he told The Straits Times.
Ms Audrey Lim, who grew up in another such unit in Stirling Road, is staying put for now.
'It is not very breezy and is near the road so there's dust and sometimes it floods when it rains,' said Ms Lim, 47. 'But I bought it from my parents - it's their prized possession - so I'll stay here for now.'
DARYL CHIN
Mr Cheong and his wife landed this terrace house for just under $600,000. -- ST PHOTO: AZIZ HUSSIN
ST : Weekend sales for ECs slow
Oct 12, 2010
Weekend sales for ECs slow
By Joyce Teo
WEEKEND sales for executive condominiums (ECs) slowed somewhat after a burst of excitement last Friday when the first new EC in five years went on sale.
Still, experts expect demand for ECs - a hybrid between public and private housing - to remain relatively strong.
The 406-unit EC project The Canopy in Yishun Avenue 11 has attracted 250 applicants since viewing started last Friday. Prices are from $600 to $700 per square foot (psf) and bookings start this Saturday.
This response seems less enthusiastic than that for the recently launched EC project Esparina Residences in Sengkang, though an industry source noted the latter - near an MRT station - is better located.
Last Friday, buyers had snapped up 344 units of Esparina, near Buangkok MRT station. Another 20 units of the 573-unit project were sold over the weekend, said developer Frasers Centrepoint.
It had received 1,155 applicants in all. Prices are from $730 to $750 psf.
New ECs have initial sale restrictions similar to those for other public housing, and they are cheaper than new mass market condos.
On the private condo front, Far East Organization released 110 units of The Lanai in Hillview Avenue at a preview over the weekend and has sold 76 units, including a bulk buy.
The 999-year leasehold condo is priced from $1,290 psf and will be launched this weekend, it said.
At the freehold Vacanza@East in Lengkong Tujoh, another 20 units or so were sold over the weekend, taking total sales to 130 units, said Hoi Hup Sunway.
The 473-unit project started its preview late last month, when it moved nearly 90 units. It is priced at slightly more than $1,000 psf on average.
'The effect of the property measures has sunk in. Investors are a bit more cautious,' said Cushman and Wakefield managing director Donald Han.
'Speculators are out, so that took some wind out of the market. The good thing is we have not seen prices coming down.'
The Government implemented measures to cool the market on Aug 30.
Mr Han said developers will now take a longer period to sell units. 'It's all about pricing. Prices in some locations may come down slightly but overall, it's going to be a flat fourth quarter.'
While buyers snapped up 344 units of Esparina Residences (above) in Sengkang last Friday, the response for The Canopy in Yishun seems less enthusiastic. -- PHOTOS: THE CANOPY, FRASERS CENTREPOINT HOMES
Weekend sales for ECs slow
By Joyce Teo
WEEKEND sales for executive condominiums (ECs) slowed somewhat after a burst of excitement last Friday when the first new EC in five years went on sale.
Still, experts expect demand for ECs - a hybrid between public and private housing - to remain relatively strong.
The 406-unit EC project The Canopy in Yishun Avenue 11 has attracted 250 applicants since viewing started last Friday. Prices are from $600 to $700 per square foot (psf) and bookings start this Saturday.
This response seems less enthusiastic than that for the recently launched EC project Esparina Residences in Sengkang, though an industry source noted the latter - near an MRT station - is better located.
Last Friday, buyers had snapped up 344 units of Esparina, near Buangkok MRT station. Another 20 units of the 573-unit project were sold over the weekend, said developer Frasers Centrepoint.
It had received 1,155 applicants in all. Prices are from $730 to $750 psf.
New ECs have initial sale restrictions similar to those for other public housing, and they are cheaper than new mass market condos.
On the private condo front, Far East Organization released 110 units of The Lanai in Hillview Avenue at a preview over the weekend and has sold 76 units, including a bulk buy.
The 999-year leasehold condo is priced from $1,290 psf and will be launched this weekend, it said.
At the freehold Vacanza@East in Lengkong Tujoh, another 20 units or so were sold over the weekend, taking total sales to 130 units, said Hoi Hup Sunway.
The 473-unit project started its preview late last month, when it moved nearly 90 units. It is priced at slightly more than $1,000 psf on average.
'The effect of the property measures has sunk in. Investors are a bit more cautious,' said Cushman and Wakefield managing director Donald Han.
'Speculators are out, so that took some wind out of the market. The good thing is we have not seen prices coming down.'
The Government implemented measures to cool the market on Aug 30.
Mr Han said developers will now take a longer period to sell units. 'It's all about pricing. Prices in some locations may come down slightly but overall, it's going to be a flat fourth quarter.'
While buyers snapped up 344 units of Esparina Residences (above) in Sengkang last Friday, the response for The Canopy in Yishun seems less enthusiastic. -- PHOTOS: THE CANOPY, FRASERS CENTREPOINT HOMES
ST : Roadblock on property route to riches
Oct 10, 2010
Roadblock on property route to riches
By Jessica Cheam
For as long as I can remember, Singaporeans have had a lifetime preoccupation with property.
Even with the Government's recent cooling measures to tighten financing and restrict home ownership, new showflats were chock-a-block across the island over the past week, albeit with people looking but not buying just yet.
A home is not just a home by most Singaporeans' definition. Singaporeans are property-obsessed people, frequently comparing notes with peers on how best to make money from the land-scarce country's property market.
The majority have come to regard it as something they deserve for being Singaporean - first, through buying subsidised Housing Board flats. Many then regard it as a de facto path to greater riches, through selling their flats for a profit to upgrade to bigger homes, or investing in private property for capital gains or rental yields.
This is the quintessential Singapore Dream, made accessible by the economic environment such as available financing, relatively low interest rates and the absence of controls such as capital gains tax.
Of course, the recent cooling measures have stopped many in their tracks.
As the latest HDB data showed, sales volume of resale flats dipped 25 per cent last month, compared with the August figure.
Property agencies have suggested that prices will soften by 5 per cent or more, with cash needed upfront for flats expected to fall to a median $10,000 by the year end.
Industry analysts attribute it to the tightened rules, which have effectively shut out of the market private property owners and permanent residents with properties in their home countries.
Every segment of the population has been affected in some way, but genuine middle-income upgraders and long-term investors seem to feel they have been hit the hardest.
Anecdotally, I have heard private property owners curse the new rules as they were on the verge of investing in an HDB flat; or long-term investors who had saved for the 20 per cent down payment to invest in a unit, but whose plans are now thwarted by the ruling - that second mortgages can qualify for only a 70 per cent loan.
There are also grumbles from young families that had saved up for the 20 per cent down payment to upgrade to an executive condominium, but now cannot do so unless they fork out 30 per cent. The alternative would be to sell their home now and rent for three years while their new unit is being built - but not many will do this.
The 10 per cent difference could range from $80,000 to $100,000 if the home being eyed is a typical suburban condo costing $800,000 to $1 million.
It's not a small sum - saving it could take a few more years.
A Forum letter writer recently questioned: 'Is it fair to inconvenience the majority of us who are not speculative? What if we have plans to use property investment for future retirement or future educational funds for our children?'
All these grievances were aired in Parliament recently, when Non-Constituency MP Sylvia Lim and Marine Parade GRC MP Lim Biow Chuan asked if the new rules were making it hard for upgraders and retirees to monetise their flats.
National Development Minister Mah Bow Tan had acknowledged the concerns, but emphasised that the new policy was to reinforce the use of an HDB flat for long-term owner occupation - not as a mode of investment.
This makes sense, except that some critics such as National University of Singapore sociologist Tan Ern Ser observe that the unintended consequence of such a policy - especially if implemented for a long period of time - is a wider divide between the rich, and the middle-class and below.
While the measures help entry-level home buyers, Dr Tan said, the wealthier classes could indirectly get a boost since middle-class folk are less able to play the property investment game, making the market less crowded for the rich.
Wealthy individuals will no doubt be waiting on the sidelines to scoop up investment homes when prices decline - hence encouraging the rich to get richer.
Already, Singapore's income inequality has worsened over the past two decades. Its Gini coefficient - 1 representing complete inequality and 0 complete equality - increased from 0.41 for most of the 1990s to 0.489 in 2007, before dipping to 0.478 last year.
With government transfers, it came down to 0.453, but this figure remains well above the 0.31 average of the Organisation for Economic Cooperation and Development countries.
Will the new rules cause this gulf between the rich and the poor to widen? Will Singapore's property market - beyond the one roof above your head - become largely a rich man's playground?
If the measures are short-term, this is unlikely. But if the rules stay the same for a long time, it is not an unlikely scenario.
This has prompted many to ask if the rules could have been fine-tuned to make a distinction between genuine middle-income upgraders or investors and short-term speculators.
For example, 80 per cent financing could still be allowed for those who pledge to live in their new home for five years - a minimum occupation period, similar to the one in the HDB market, could be implemented.
Or the stricter rules could apply to homes costing above a certain price, say, $1 million, leaving the market below $1 million more dynamic for middle-class upgraders.
But it is difficult to predict whether such measures will distort market forces, creating potentially negative consequences.
Alternatively, this group of buyers could look at the rules from a different perspective instead of fretting about the current restrictions.
If property prices come down as a result of the cooling measures, the 20 per cent they have saved could be enough for a 30 per cent down payment in a couple of years.
As Singapore's property cycle is now at its peak, it would seem unwise for those chasing properties to make hasty decisions when prices are at historic highs.
Also, the changing of rules does not mean the end of property investment as we know it.
As Mr Mah put it: 'If you already own a private property, then please don't at this point in time go and compete with the others to buy an HDB resale (flat) unless you're genuinely downgrading.'
His choice of words suggests that this policy will change in time to come - and perhaps sooner than anticipated.
But what is clear is that with this new property landscape, property-obsessed Singaporeans should take a breather and re-evaluate their notion of property as a quick and given path to riches.
jcheam@sph.com.sg
--------------------------------------------------------------------------------
A wider divide?
Will the new rules cause this gulf between the rich and the poor to widen? Will Singapore's property market - beyond the one roof above your head - become largely a rich man's playground?
Roadblock on property route to riches
By Jessica Cheam
For as long as I can remember, Singaporeans have had a lifetime preoccupation with property.
Even with the Government's recent cooling measures to tighten financing and restrict home ownership, new showflats were chock-a-block across the island over the past week, albeit with people looking but not buying just yet.
A home is not just a home by most Singaporeans' definition. Singaporeans are property-obsessed people, frequently comparing notes with peers on how best to make money from the land-scarce country's property market.
The majority have come to regard it as something they deserve for being Singaporean - first, through buying subsidised Housing Board flats. Many then regard it as a de facto path to greater riches, through selling their flats for a profit to upgrade to bigger homes, or investing in private property for capital gains or rental yields.
This is the quintessential Singapore Dream, made accessible by the economic environment such as available financing, relatively low interest rates and the absence of controls such as capital gains tax.
Of course, the recent cooling measures have stopped many in their tracks.
As the latest HDB data showed, sales volume of resale flats dipped 25 per cent last month, compared with the August figure.
Property agencies have suggested that prices will soften by 5 per cent or more, with cash needed upfront for flats expected to fall to a median $10,000 by the year end.
Industry analysts attribute it to the tightened rules, which have effectively shut out of the market private property owners and permanent residents with properties in their home countries.
Every segment of the population has been affected in some way, but genuine middle-income upgraders and long-term investors seem to feel they have been hit the hardest.
Anecdotally, I have heard private property owners curse the new rules as they were on the verge of investing in an HDB flat; or long-term investors who had saved for the 20 per cent down payment to invest in a unit, but whose plans are now thwarted by the ruling - that second mortgages can qualify for only a 70 per cent loan.
There are also grumbles from young families that had saved up for the 20 per cent down payment to upgrade to an executive condominium, but now cannot do so unless they fork out 30 per cent. The alternative would be to sell their home now and rent for three years while their new unit is being built - but not many will do this.
The 10 per cent difference could range from $80,000 to $100,000 if the home being eyed is a typical suburban condo costing $800,000 to $1 million.
It's not a small sum - saving it could take a few more years.
A Forum letter writer recently questioned: 'Is it fair to inconvenience the majority of us who are not speculative? What if we have plans to use property investment for future retirement or future educational funds for our children?'
All these grievances were aired in Parliament recently, when Non-Constituency MP Sylvia Lim and Marine Parade GRC MP Lim Biow Chuan asked if the new rules were making it hard for upgraders and retirees to monetise their flats.
National Development Minister Mah Bow Tan had acknowledged the concerns, but emphasised that the new policy was to reinforce the use of an HDB flat for long-term owner occupation - not as a mode of investment.
This makes sense, except that some critics such as National University of Singapore sociologist Tan Ern Ser observe that the unintended consequence of such a policy - especially if implemented for a long period of time - is a wider divide between the rich, and the middle-class and below.
While the measures help entry-level home buyers, Dr Tan said, the wealthier classes could indirectly get a boost since middle-class folk are less able to play the property investment game, making the market less crowded for the rich.
Wealthy individuals will no doubt be waiting on the sidelines to scoop up investment homes when prices decline - hence encouraging the rich to get richer.
Already, Singapore's income inequality has worsened over the past two decades. Its Gini coefficient - 1 representing complete inequality and 0 complete equality - increased from 0.41 for most of the 1990s to 0.489 in 2007, before dipping to 0.478 last year.
With government transfers, it came down to 0.453, but this figure remains well above the 0.31 average of the Organisation for Economic Cooperation and Development countries.
Will the new rules cause this gulf between the rich and the poor to widen? Will Singapore's property market - beyond the one roof above your head - become largely a rich man's playground?
If the measures are short-term, this is unlikely. But if the rules stay the same for a long time, it is not an unlikely scenario.
This has prompted many to ask if the rules could have been fine-tuned to make a distinction between genuine middle-income upgraders or investors and short-term speculators.
For example, 80 per cent financing could still be allowed for those who pledge to live in their new home for five years - a minimum occupation period, similar to the one in the HDB market, could be implemented.
Or the stricter rules could apply to homes costing above a certain price, say, $1 million, leaving the market below $1 million more dynamic for middle-class upgraders.
But it is difficult to predict whether such measures will distort market forces, creating potentially negative consequences.
Alternatively, this group of buyers could look at the rules from a different perspective instead of fretting about the current restrictions.
If property prices come down as a result of the cooling measures, the 20 per cent they have saved could be enough for a 30 per cent down payment in a couple of years.
As Singapore's property cycle is now at its peak, it would seem unwise for those chasing properties to make hasty decisions when prices are at historic highs.
Also, the changing of rules does not mean the end of property investment as we know it.
As Mr Mah put it: 'If you already own a private property, then please don't at this point in time go and compete with the others to buy an HDB resale (flat) unless you're genuinely downgrading.'
His choice of words suggests that this policy will change in time to come - and perhaps sooner than anticipated.
But what is clear is that with this new property landscape, property-obsessed Singaporeans should take a breather and re-evaluate their notion of property as a quick and given path to riches.
jcheam@sph.com.sg
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A wider divide?
Will the new rules cause this gulf between the rich and the poor to widen? Will Singapore's property market - beyond the one roof above your head - become largely a rich man's playground?
ST : Family home restored
Oct 9, 2010
Family home restored
Growing up, sisters Linda and Lydia Lee used to spend hours running in the spacious verandah of their single-storey bungalow in 25 Chapel Road in the East Coast.
'We also used to play underneath the house,' Lydia fondly recalls of her home, which was built in the early 1900s and stood on brick piers. It sits on 11,000 sq ft of land.
The house was bought by their grandfather, money broker Tan Swee Hee, in 1932 for $12,000. It has remained with the family since.
The two sisters - Linda, 59, and Lydia, 56 - lived there till they were in their 20s. Now retired, the siblings are now based in Britain.
Lydia says there were two bedrooms in the Chapel Road house. One was used by her grandparents while the other was shared by her parents and the two sisters.
'Later, my father built an extension at the back, and my parents used that room,' she says. Their father, George Lee, was also a broker while their mother, Alice, was a housewife.
In 2008, the house was given a $1.7-million makeover after their father died. Lydia says: 'It was still in good condition but you could see the wear and tear. We wanted to do up the house and go the whole hog, rather than renovate bits and pieces.'
The sisters had plans to rent out the property. But an agent told them that the house would need at least four bedrooms if it were to attract tenants.
'We searched for a few architects, met Richard Ho and saw his work,' says Lydia.
It was not difficult for Mr Ho of the award-winning RichardHo Architects to convince the sisters to conserve the house. 'Their house is full of memories and history. I told them they've a house that's unique and rare in Singapore, especially in the East Coast, where most homes have been demolished to make way for new developments,' says Mr Ho, 52.
Unique features in the house were repaired and reinstated. These include the intricate floral mouldings along the sides of the external walls, colourful Peranakan glazed tiles on the flights of steps leading to the house and the intricate ironmongery on the windows and doors.
To meet the needs of modern living, Mr Ho designed a new double-storey wing. Located next to the old house, it has five ensuite bedrooms, a covered patio and a 12m lap pool.
As the bedrooms are now in the new wing, the old house's original quartered layout has been reconfigured into a single-volume living and dining area. It is now rented out for an undisclosed sum.
'Our old home has been immaculately restored and it is like how we remember it,' says Lydia.
Built in the early 1900s, the single-storey bungalow has a polygonal open verandah, with coloured cork flooring installed by Linda and Lydia Lee's father. The building is now used as a living and dining area. Its bedrooms are in the new wing (above), which is separated from the old one by a lap pool. -- PHOTO: RICHARDO ARCHITECTS
Family home restored
Growing up, sisters Linda and Lydia Lee used to spend hours running in the spacious verandah of their single-storey bungalow in 25 Chapel Road in the East Coast.
'We also used to play underneath the house,' Lydia fondly recalls of her home, which was built in the early 1900s and stood on brick piers. It sits on 11,000 sq ft of land.
The house was bought by their grandfather, money broker Tan Swee Hee, in 1932 for $12,000. It has remained with the family since.
The two sisters - Linda, 59, and Lydia, 56 - lived there till they were in their 20s. Now retired, the siblings are now based in Britain.
Lydia says there were two bedrooms in the Chapel Road house. One was used by her grandparents while the other was shared by her parents and the two sisters.
'Later, my father built an extension at the back, and my parents used that room,' she says. Their father, George Lee, was also a broker while their mother, Alice, was a housewife.
In 2008, the house was given a $1.7-million makeover after their father died. Lydia says: 'It was still in good condition but you could see the wear and tear. We wanted to do up the house and go the whole hog, rather than renovate bits and pieces.'
The sisters had plans to rent out the property. But an agent told them that the house would need at least four bedrooms if it were to attract tenants.
'We searched for a few architects, met Richard Ho and saw his work,' says Lydia.
It was not difficult for Mr Ho of the award-winning RichardHo Architects to convince the sisters to conserve the house. 'Their house is full of memories and history. I told them they've a house that's unique and rare in Singapore, especially in the East Coast, where most homes have been demolished to make way for new developments,' says Mr Ho, 52.
Unique features in the house were repaired and reinstated. These include the intricate floral mouldings along the sides of the external walls, colourful Peranakan glazed tiles on the flights of steps leading to the house and the intricate ironmongery on the windows and doors.
To meet the needs of modern living, Mr Ho designed a new double-storey wing. Located next to the old house, it has five ensuite bedrooms, a covered patio and a 12m lap pool.
As the bedrooms are now in the new wing, the old house's original quartered layout has been reconfigured into a single-volume living and dining area. It is now rented out for an undisclosed sum.
'Our old home has been immaculately restored and it is like how we remember it,' says Lydia.
Built in the early 1900s, the single-storey bungalow has a polygonal open verandah, with coloured cork flooring installed by Linda and Lydia Lee's father. The building is now used as a living and dining area. Its bedrooms are in the new wing (above), which is separated from the old one by a lap pool. -- PHOTO: RICHARDO ARCHITECTS
ST : Make mine light and breezy
Oct 9, 2010
Make mine light and breezy
A conservation terrace house in Blair Road and a bungalow in East Coast are among the eight Architectural Heritage Award recipients this year. TAY SUAN CHIANG checks in on them
When the owner of this conservation terrace house in 55 Blair Road first laid eyes on it a few years ago, she was taken in by the airwell in the centre of the unit and the volume of space it offered.
But there were some things she hated. 'I disliked that the original ground floor looked like a bowling alley - long, narrow and very dark,' says the owner, a British expatriate-turned-Singapore permanent resident who declines to be named.
The two-storey house, believed to be built between 1900 and 1940, was last renovated in 1997. As it was meant to be tenanted out, the previous owner put in four bedrooms.
The new owner paid $1.5 million for the renovations which started in 2008 and took 10 months to complete.
Her brief to the architectural team at Ong & Ong was to bring maximum light into the long and dark space, improve ventilation and air flow, and update the house to meet current needs.
Before the renovations could start, however, there was a sticky problem the team had to resolve: When the owner took over the house, which sits on 1,625 sq ft of land, she discovered a sticky liquid oozing through the ceiling.
The roof was stripped to find the source, which turned out to be a beehive leaking honey. The hive was removed, the roof reinstated and renovations began.
The house previously had a small courtyard - to allow for more living space - unlike the tradition of such houses having large courtyards.
In its latest transformation, the architects made the open-air courtyard bigger, with space for a plunge pool as well. The bigger courtyard also boosts ventilation and allows more light to enter the house.
The owner's bedroom on the second storey has a bathroom that is cantilevered and overlooks the pool below.
On this floor, too, is the study-family room, with built-in shelves on both sides of the room to form a mini library.
Two ensuite bedrooms in a rear block are for the maid and guests. While the interiors were given a new look, the facade had to be retained under conservation rules. Where necessary, the facade was retouched and repainted.
The owner says: 'It is an easy house to live in. There is hidden storage everywhere, allowing us to maintain the house as it was meant to be: simple and elegant.'
taysc@sph.com.sg
The master bedroom is cantilevered over the plunge pool (above). Aluminium-cladded walls flank the central courtyard, helping to cast more light into the house. Slide open the glass partitions of the dining area-cum-kitchen as well as the living area, and the entire ground floor becomes a single, long space for entertaining. -- PHOTO: ONG & ONG
THE ARCHITECTURAL HERITAGE AWARDS
Organised by the Urban Redevelopment Authority, the Architectural Heritage Awards honour well-restored monuments and conservation buildings.
This year's eight winners include a cluster of shophouses turned into home-cum-office spaces, entertainment hotspot StJames Power Station and terrace houses in Spottiswoode Park Road and Cairnhill Road.
The awards, which began in 1995, are given to the buildings' owners, architects, engineers and principal contractors. There is no prize money. A total of 100 projects have received the awards since their launch.
Make mine light and breezy
A conservation terrace house in Blair Road and a bungalow in East Coast are among the eight Architectural Heritage Award recipients this year. TAY SUAN CHIANG checks in on them
When the owner of this conservation terrace house in 55 Blair Road first laid eyes on it a few years ago, she was taken in by the airwell in the centre of the unit and the volume of space it offered.
But there were some things she hated. 'I disliked that the original ground floor looked like a bowling alley - long, narrow and very dark,' says the owner, a British expatriate-turned-Singapore permanent resident who declines to be named.
The two-storey house, believed to be built between 1900 and 1940, was last renovated in 1997. As it was meant to be tenanted out, the previous owner put in four bedrooms.
The new owner paid $1.5 million for the renovations which started in 2008 and took 10 months to complete.
Her brief to the architectural team at Ong & Ong was to bring maximum light into the long and dark space, improve ventilation and air flow, and update the house to meet current needs.
Before the renovations could start, however, there was a sticky problem the team had to resolve: When the owner took over the house, which sits on 1,625 sq ft of land, she discovered a sticky liquid oozing through the ceiling.
The roof was stripped to find the source, which turned out to be a beehive leaking honey. The hive was removed, the roof reinstated and renovations began.
The house previously had a small courtyard - to allow for more living space - unlike the tradition of such houses having large courtyards.
In its latest transformation, the architects made the open-air courtyard bigger, with space for a plunge pool as well. The bigger courtyard also boosts ventilation and allows more light to enter the house.
The owner's bedroom on the second storey has a bathroom that is cantilevered and overlooks the pool below.
On this floor, too, is the study-family room, with built-in shelves on both sides of the room to form a mini library.
Two ensuite bedrooms in a rear block are for the maid and guests. While the interiors were given a new look, the facade had to be retained under conservation rules. Where necessary, the facade was retouched and repainted.
The owner says: 'It is an easy house to live in. There is hidden storage everywhere, allowing us to maintain the house as it was meant to be: simple and elegant.'
taysc@sph.com.sg
The master bedroom is cantilevered over the plunge pool (above). Aluminium-cladded walls flank the central courtyard, helping to cast more light into the house. Slide open the glass partitions of the dining area-cum-kitchen as well as the living area, and the entire ground floor becomes a single, long space for entertaining. -- PHOTO: ONG & ONG
THE ARCHITECTURAL HERITAGE AWARDS
Organised by the Urban Redevelopment Authority, the Architectural Heritage Awards honour well-restored monuments and conservation buildings.
This year's eight winners include a cluster of shophouses turned into home-cum-office spaces, entertainment hotspot StJames Power Station and terrace houses in Spottiswoode Park Road and Cairnhill Road.
The awards, which began in 1995, are given to the buildings' owners, architects, engineers and principal contractors. There is no prize money. A total of 100 projects have received the awards since their launch.
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