Treasure Well Investments puts in S$251m top bid for Upper Thomson Rd site
By Irene Chan, Channel NewsAsia | Posted: 05 November 2009 2055 hrs
SINGAPORE : The Urban Redevelopment Authority (URA) has received a top bid of S$251 million for a residential site at Upper Thomson Road.
The bid was submitted by Treasure Well Investments and works out to about S$5,741 per square metre.
The URA said it received a total six bids with the lowest one at S$135 million.
Among the bidders of the site were Frasers Centrepoint and Sim Lian Land.
The Upper Thomson Road site, located in the vicinity of Lower Peirce Reservoir, has an area of about 2.1 hectares.
It can generate a maximum permissible gross floor area of 43,781 square metres.
The URA said it will announce the decision on the award of the tender at a later date after the bids have been evaluated. - CNA /ls
Friday, November 6, 2009
ST Forum : Opening of new MRT stations still depends on nearby developments
Nov 5, 2009
Opening of new MRT stations still depends on nearby developments
I WOULD like to add some context to Monday's report, 'No mothballing of MRT stations in future', which we had earlier provided the writer, Mr Christopher Tan.
Readers of the report may have the impression that financial viability considerations will no longer be applied in future when deciding which stations will be opened for service.
This is not so. What we will do is open stations when there are sufficient developments around a station. As rail lines and their stations are built to cater to both near- and long-term needs, there will be areas along the rail line where development plans are to be realised only in the long term.
We will make provisions for this by building shell stations and fitting them out for operations in the future only when there are sufficient developments in the surrounding areas. However, we will ensure that, going forward, all completed stations in new lines that are ready are opened for revenue service.
This is why when the Circle Line is fully opened in 2011, Bukit Brown station will remain a shell station, as it is located at an unoccupied plot of land with no developments nearby. This is also why the two Circle Line stations, Caldecott and Haw Par Villa, which were initially planned as shell stations, will now be fitted out and opened with the rest of the Circle Line stations in 2011, because the surrounding developments have since picked up.
Phua Hooi Boon
Director (Land Transport Division)
Ministry of Transport
Opening of new MRT stations still depends on nearby developments
I WOULD like to add some context to Monday's report, 'No mothballing of MRT stations in future', which we had earlier provided the writer, Mr Christopher Tan.
Readers of the report may have the impression that financial viability considerations will no longer be applied in future when deciding which stations will be opened for service.
This is not so. What we will do is open stations when there are sufficient developments around a station. As rail lines and their stations are built to cater to both near- and long-term needs, there will be areas along the rail line where development plans are to be realised only in the long term.
We will make provisions for this by building shell stations and fitting them out for operations in the future only when there are sufficient developments in the surrounding areas. However, we will ensure that, going forward, all completed stations in new lines that are ready are opened for revenue service.
This is why when the Circle Line is fully opened in 2011, Bukit Brown station will remain a shell station, as it is located at an unoccupied plot of land with no developments nearby. This is also why the two Circle Line stations, Caldecott and Haw Par Villa, which were initially planned as shell stations, will now be fitted out and opened with the rest of the Circle Line stations in 2011, because the surrounding developments have since picked up.
Phua Hooi Boon
Director (Land Transport Division)
Ministry of Transport
ST : Phase 1 of Marina Bay project 72% leased
Nov 5, 2009
Phase 1 of Marina Bay project 72% leased
By Gabriel Chen
PHASE 1 of the new Marina Bay Financial Centre (MBFC) mega office development is now 72 per cent leased, thanks to mining company BHP Billiton taking a further four floors.
The company has taken the additional floor space at Tower Two which, together with Tower One, comprises the first phase of the ambitious project intended as a seamless extension of the Central Business District.
BHP committed to 142,000 sq ft at Tower Two a year ago and is now slated to have a total leased floor area for 10 years from 2011 of 231,000 sq ft on levels 40 to 50 of Tower Two.
Phase 2 of MBFC will be complete when Tower Three has been opened. But already, about 64 per cent of total office space in Phases 1 and 2 has been leased.
The three office towers have almost three million sq ft of grade A office space. MBFC will also have two residential towers of 649 luxury apartments, and 176,000 sq ft of retail space.
Mr Wilson Kwong, chief executive of Raffles Quay Asset Management, which manages the centre, said BHP's decision to take up additional space is testament to the MBFC's vision of being Asia's best business address.
BHP's commitment is a healthy boost of confidence for the Asian office market, which some analysts have tipped to improve as rental decline slows further.
According to a new report by property consultancy firm CB Richard Ellis, the Asian office market downturn stabilised in the third quarter, as the improvement in Asian employment markets clearly indicated that the office market was close to bottoming out.
It also said that activity surrounding the planning of new premises in Singapore rose, as did occupier requests for relocation alternatives.
The firm noted that while Singaporean office rents fell for the fourth consecutive quarter, clear evidence has emerged that the pace of rental decline has eased following an improvement in business confidence.
The MBFC is being developed by a joint venture comprising property developers Cheung Kong Holdings, Hongkong Land and Keppel Land.
Phase 1 of Marina Bay project 72% leased
By Gabriel Chen
PHASE 1 of the new Marina Bay Financial Centre (MBFC) mega office development is now 72 per cent leased, thanks to mining company BHP Billiton taking a further four floors.
The company has taken the additional floor space at Tower Two which, together with Tower One, comprises the first phase of the ambitious project intended as a seamless extension of the Central Business District.
BHP committed to 142,000 sq ft at Tower Two a year ago and is now slated to have a total leased floor area for 10 years from 2011 of 231,000 sq ft on levels 40 to 50 of Tower Two.
Phase 2 of MBFC will be complete when Tower Three has been opened. But already, about 64 per cent of total office space in Phases 1 and 2 has been leased.
The three office towers have almost three million sq ft of grade A office space. MBFC will also have two residential towers of 649 luxury apartments, and 176,000 sq ft of retail space.
Mr Wilson Kwong, chief executive of Raffles Quay Asset Management, which manages the centre, said BHP's decision to take up additional space is testament to the MBFC's vision of being Asia's best business address.
BHP's commitment is a healthy boost of confidence for the Asian office market, which some analysts have tipped to improve as rental decline slows further.
According to a new report by property consultancy firm CB Richard Ellis, the Asian office market downturn stabilised in the third quarter, as the improvement in Asian employment markets clearly indicated that the office market was close to bottoming out.
It also said that activity surrounding the planning of new premises in Singapore rose, as did occupier requests for relocation alternatives.
The firm noted that while Singaporean office rents fell for the fourth consecutive quarter, clear evidence has emerged that the pace of rental decline has eased following an improvement in business confidence.
The MBFC is being developed by a joint venture comprising property developers Cheung Kong Holdings, Hongkong Land and Keppel Land.
ST : S'pore-KL work group for Iskandar project
Nov 5, 2009
S'pore-KL work group for Iskandar project
By Teo Cheng Wee
SINGAPORE and Malaysia formed a work group yesterday to study the joint development of an iconic economic project in Iskandar.
Working together on an iconic project in the Johor economic zone was one of the key issues discussed when Prime Minister Lee Hsien Loong met Malaysian Prime Minister Najib Razak in Singapore in May.
The bilateral project was mooted as a showcase of the commitment of both countries to build a strong, productive and enduring relationship, the two countries' Joint Ministerial Committee (JMC) for Iskandar Malaysia said yesterday.
At the meeting in May, Mr Lee had suggested a mixed-use township development, while Datuk Seri Najib was keen on a wellness centre that could provide spas and other services.
But what the project will eventually be has not been finalised.
Yesterday's meeting at the Grand Hyatt hotel in Singapore was the fifth for the JMC. It was formed in 2007 with the aim of facilitating cooperation between Malaysia and Singapore on the Iskandar project.
The meeting was jointly chaired by National Development Minister Mah Bow Tan and Tan Sri Nor Mohamed Yakcop, Malaysia's Minister in the Prime Minister's Department.
The committee also includes Johor chief minister Ghani Othman and Singapore's Transport Minister Raymond Lim. The JMC also reviewed the progress made by four sub-groups on immigration, transportation, tourism and the environment.
A study has been commissioned to assess the feasibility of jointly developing nature sites as tourism spots.
On the immigration front, the pilot test of the Malaysian Automated Clearance System - which gives frequent travellers to Iskandar Malaysia access to 'fast track' lanes - was extended to all frequent travellers to Malaysia in September.
Both countries also agreed to double cross-border bus services by next January. The JMC will meet again in the first half of next year.
S'pore-KL work group for Iskandar project
By Teo Cheng Wee
SINGAPORE and Malaysia formed a work group yesterday to study the joint development of an iconic economic project in Iskandar.
Working together on an iconic project in the Johor economic zone was one of the key issues discussed when Prime Minister Lee Hsien Loong met Malaysian Prime Minister Najib Razak in Singapore in May.
The bilateral project was mooted as a showcase of the commitment of both countries to build a strong, productive and enduring relationship, the two countries' Joint Ministerial Committee (JMC) for Iskandar Malaysia said yesterday.
At the meeting in May, Mr Lee had suggested a mixed-use township development, while Datuk Seri Najib was keen on a wellness centre that could provide spas and other services.
But what the project will eventually be has not been finalised.
Yesterday's meeting at the Grand Hyatt hotel in Singapore was the fifth for the JMC. It was formed in 2007 with the aim of facilitating cooperation between Malaysia and Singapore on the Iskandar project.
The meeting was jointly chaired by National Development Minister Mah Bow Tan and Tan Sri Nor Mohamed Yakcop, Malaysia's Minister in the Prime Minister's Department.
The committee also includes Johor chief minister Ghani Othman and Singapore's Transport Minister Raymond Lim. The JMC also reviewed the progress made by four sub-groups on immigration, transportation, tourism and the environment.
A study has been commissioned to assess the feasibility of jointly developing nature sites as tourism spots.
On the immigration front, the pilot test of the Malaysian Automated Clearance System - which gives frequent travellers to Iskandar Malaysia access to 'fast track' lanes - was extended to all frequent travellers to Malaysia in September.
Both countries also agreed to double cross-border bus services by next January. The JMC will meet again in the first half of next year.
ST : Foreigners back in private home market
Nov 5, 2009
Foreigners back in private home market
They account for 22.7% of such sales in Q3, above the 19.7% average
By Joyce Teo
FOREIGN buyers are streaming back into the private homes market in growing numbers, especially those from China.
New research from property consultancy Savills Singapore shows foreigners accounted for 22.7 per cent of private home sales in the third quarter - above the 19.7 per cent average since the start of 2000.
Buyers from China have dislodged those from India for the No. 3 spot in the rankings this year with a contribution of nearly 15 per cent of total foreign purchases. This puts China just behind Indonesia in the second spot and Malaysia at No. 1
In the past two years, India had been in third spot, but it has slipped to fourth.
Last year, buyers from China had moved up to the No. 4 spot, dislodging buyers from Britain.
Buyers from Myanmar featured more strongly, coming in at No. 8. They did not make it to the top 10 last year, and were 10th in 2007.
In the July to September period, foreign buyers - including permanent residents - lodged 2,448 private home caveats, a key step to buying a home.
This is up from 1,807 caveats in the second quarter and just 498 in the first, according to data compiled by Savills.
In all, permanent residents bought 1,389 homes in the third quarter.
DTZ said its preliminary data for the third quarter showed that foreigners accounted for about 25 per cent of total sales, compared with about 33 per cent during the boom of 2007.
The most popular project sought by foreigners was Sophia Residence, a project launched in July. Then came Caribbean at Keppel Bay, Ascentia Sky, One Devonshire and Viva.
Permanent residents preferred Melville Park, a 99-year leasehold condominium in Simei, the recently launched Trevista, followed by Caribbean at Keppel Bay.
About 54 per cent of the purchases by China buyers were for resale homes, said DTZ head of South-east Asia research Chua Chor Hoon.
Like Malaysian buyers, buyers from China tend to prefer homes priced between $500,000 and $1 million.
One-fifth of them bought homes costing $1.5 million to as much as $5 million.
Indonesians, however, tended to go for higher priced projects, particularly those priced $1.5 million to $5 million.
They like properties located at Novena, River Valley and the Singapore River.
They had been the biggest group of foreign buyers, taking first place from 2004 to 2007, only to lose the spot to Malaysia during the recent economic crisis, said Ms Christine Sun, Savills Singapore's senior research & consultancy manager.
The latest figures featured a substantial rise in the number of foreign transactions for higher-priced properties.
A total of 86 properties priced above $5 million were sold in the quarter, up from 27 in the second and a mere six in the first.
Also, there was a 60 per cent rise in deals for projects costing between $1.5 million and $5 million. Demand from foreigners for mass market homes was little changed from the second quarter.
Savills said recent data showed that foreigners who are not permanent residents tend to buy more pricey projects.
This group was also more likely to buy homes in prime districts than permanent residents, said Ms Sun. 'We are hearing that more of these super-rich mainland Chinese buyers have come in recent weeks to buy prime properties like the bungalows in Sentosa Cove.'
But the big influx of foreigners to the luxury market in the 2006-2007 boom has not quite returned, consultants said.
Still, support from regional buyers could rise further. Jones Lang LaSalle's head of residential, Ms Jacqueline Wong, said the firm has had rising interest from new potential buyers from India, China and Russia in the past four months.
'We are one of the places they are considering. They see Singapore as a safe haven,' said Ms Wong.
A senior private banker at a foreign bank said: 'We are seeing some clients consider buying a Singapore property as one of a string of homes they have around the world. Luxury homes have come down 30 per cent from the peak, so they are better value now.'
DTZ's Ms Chua said foreign buyers see the growing attraction of Singapore as a global city and expect prices to keep rising as the economy strengthens.
'Prices of prime and luxurious units have not reached 2007 levels and there is still the potential of capital appreciation depending on the rate of economic recovery,' she said.
joyceteo@sph.com.sg
Foreigners back in private home market
They account for 22.7% of such sales in Q3, above the 19.7% average
By Joyce Teo
FOREIGN buyers are streaming back into the private homes market in growing numbers, especially those from China.
New research from property consultancy Savills Singapore shows foreigners accounted for 22.7 per cent of private home sales in the third quarter - above the 19.7 per cent average since the start of 2000.
Buyers from China have dislodged those from India for the No. 3 spot in the rankings this year with a contribution of nearly 15 per cent of total foreign purchases. This puts China just behind Indonesia in the second spot and Malaysia at No. 1
In the past two years, India had been in third spot, but it has slipped to fourth.
Last year, buyers from China had moved up to the No. 4 spot, dislodging buyers from Britain.
Buyers from Myanmar featured more strongly, coming in at No. 8. They did not make it to the top 10 last year, and were 10th in 2007.
In the July to September period, foreign buyers - including permanent residents - lodged 2,448 private home caveats, a key step to buying a home.
This is up from 1,807 caveats in the second quarter and just 498 in the first, according to data compiled by Savills.
In all, permanent residents bought 1,389 homes in the third quarter.
DTZ said its preliminary data for the third quarter showed that foreigners accounted for about 25 per cent of total sales, compared with about 33 per cent during the boom of 2007.
The most popular project sought by foreigners was Sophia Residence, a project launched in July. Then came Caribbean at Keppel Bay, Ascentia Sky, One Devonshire and Viva.
Permanent residents preferred Melville Park, a 99-year leasehold condominium in Simei, the recently launched Trevista, followed by Caribbean at Keppel Bay.
About 54 per cent of the purchases by China buyers were for resale homes, said DTZ head of South-east Asia research Chua Chor Hoon.
Like Malaysian buyers, buyers from China tend to prefer homes priced between $500,000 and $1 million.
One-fifth of them bought homes costing $1.5 million to as much as $5 million.
Indonesians, however, tended to go for higher priced projects, particularly those priced $1.5 million to $5 million.
They like properties located at Novena, River Valley and the Singapore River.
They had been the biggest group of foreign buyers, taking first place from 2004 to 2007, only to lose the spot to Malaysia during the recent economic crisis, said Ms Christine Sun, Savills Singapore's senior research & consultancy manager.
The latest figures featured a substantial rise in the number of foreign transactions for higher-priced properties.
A total of 86 properties priced above $5 million were sold in the quarter, up from 27 in the second and a mere six in the first.
Also, there was a 60 per cent rise in deals for projects costing between $1.5 million and $5 million. Demand from foreigners for mass market homes was little changed from the second quarter.
Savills said recent data showed that foreigners who are not permanent residents tend to buy more pricey projects.
This group was also more likely to buy homes in prime districts than permanent residents, said Ms Sun. 'We are hearing that more of these super-rich mainland Chinese buyers have come in recent weeks to buy prime properties like the bungalows in Sentosa Cove.'
But the big influx of foreigners to the luxury market in the 2006-2007 boom has not quite returned, consultants said.
Still, support from regional buyers could rise further. Jones Lang LaSalle's head of residential, Ms Jacqueline Wong, said the firm has had rising interest from new potential buyers from India, China and Russia in the past four months.
'We are one of the places they are considering. They see Singapore as a safe haven,' said Ms Wong.
A senior private banker at a foreign bank said: 'We are seeing some clients consider buying a Singapore property as one of a string of homes they have around the world. Luxury homes have come down 30 per cent from the peak, so they are better value now.'
DTZ's Ms Chua said foreign buyers see the growing attraction of Singapore as a global city and expect prices to keep rising as the economy strengthens.
'Prices of prime and luxurious units have not reached 2007 levels and there is still the potential of capital appreciation depending on the rate of economic recovery,' she said.
joyceteo@sph.com.sg
ST : Singapore a top choice for migrants
Nov 5, 2009
Singapore a top choice for migrants
Gallup index shows S'pore population would jump to 13m if it takes in all who wished to come here
By Lin Zhaowei
SINGAPORE is a top immigration hot spot, according to a global survey conducted by Gallup.
If it were to take in all adults who wish to settle in the country, its adult population of 3.6 million would jump to 13 million, said the survey released this week.
Gallup arrived at this figure by using what it called the Potential Net Migration Index (PNMI).
The index is the estimated number of adults who wish to leave a country permanently subtracted from the estimated number who wish to immigrate to the country, as a proportion of the total adult population.
The higher a positive PNMI value, the greater the potential of net population gain, proportional to the population size.
Singapore emerged tops with the highest PNMI value of 260 per cent, followed by Saudi Arabia (180 per cent), New Zealand (175 per cent), Canada (170 per cent) and Australia (145 per cent).
At the other end of the scale, the Democratic Republic of the Congo's score was minus 60 per cent, which means that more people want to leave the country permanently than settle in it.
For the Gulf Cooperation Council countries, only Arab nationals and Arab expatriates were interviewed for the 2007-2009 survey, which polled about 260,000 people aged 15 and older in 135 countries.
Singapore's ranking in the PNMI may not be entirely surprising given its relatively small population size and strong and stable economy, analysts said.
According to the United Nations' 2009 Human Development Report, Singapore is already a popular immigration destination.
It ranked No. 10 in the world in terms of the share of immigrants as part of total population, at 35 per cent.
The UN report also showed that Singapore had a relatively low emigration rate of 6.3 per cent.
'If most of those who say they want to come here are mostly economic migrants from other Asian countries, I won't be surprised because Singapore's economy is doing quite well relatively,' Dr Chua Beng Huat, a sociology professor at the National University of Singapore, told The Straits Times when asked to comment on the Gallup survey findings.
On the whole, the survey found that some 700 million people - or 16 per cent of the world's population - would like to relocate permanently to another country, if they had the chance.
The United States was the most desired destination overall in terms of numbers - around 165 million adults would like to move there permanently if they could.
Other top destinations included Canada, Britain, France (all three with around 45 million potential migrants); Spain (35 million) and Saudi Arabia (30 million).
Sub-Saharan Africa was the region with the highest percentage of people who would like to emigrate, at around 38 per cent.
The corresponding figure for the Middle East and North Africa was 23 per cent, and 19 per cent and 18 per cent respectively for Europe and the Americas.
Those living in Asia were the least likely to emigrate, with only 10 per cent expressing a desire to do so.
Ms Neli Esipova, Gallup's director of research for global migration, said the findings showed that hundreds of millions of people around the world felt pulled or pushed towards countries other than their own.
'Who these potential migrants are, where they would like to go and why will continue to be crucial for leaders in countries of origin and destination to understand as they develop migration and development strategies during the economic crisis and well after,' she said.
Singapore a top choice for migrants
Gallup index shows S'pore population would jump to 13m if it takes in all who wished to come here
By Lin Zhaowei
SINGAPORE is a top immigration hot spot, according to a global survey conducted by Gallup.
If it were to take in all adults who wish to settle in the country, its adult population of 3.6 million would jump to 13 million, said the survey released this week.
Gallup arrived at this figure by using what it called the Potential Net Migration Index (PNMI).
The index is the estimated number of adults who wish to leave a country permanently subtracted from the estimated number who wish to immigrate to the country, as a proportion of the total adult population.
The higher a positive PNMI value, the greater the potential of net population gain, proportional to the population size.
Singapore emerged tops with the highest PNMI value of 260 per cent, followed by Saudi Arabia (180 per cent), New Zealand (175 per cent), Canada (170 per cent) and Australia (145 per cent).
At the other end of the scale, the Democratic Republic of the Congo's score was minus 60 per cent, which means that more people want to leave the country permanently than settle in it.
For the Gulf Cooperation Council countries, only Arab nationals and Arab expatriates were interviewed for the 2007-2009 survey, which polled about 260,000 people aged 15 and older in 135 countries.
Singapore's ranking in the PNMI may not be entirely surprising given its relatively small population size and strong and stable economy, analysts said.
According to the United Nations' 2009 Human Development Report, Singapore is already a popular immigration destination.
It ranked No. 10 in the world in terms of the share of immigrants as part of total population, at 35 per cent.
The UN report also showed that Singapore had a relatively low emigration rate of 6.3 per cent.
'If most of those who say they want to come here are mostly economic migrants from other Asian countries, I won't be surprised because Singapore's economy is doing quite well relatively,' Dr Chua Beng Huat, a sociology professor at the National University of Singapore, told The Straits Times when asked to comment on the Gallup survey findings.
On the whole, the survey found that some 700 million people - or 16 per cent of the world's population - would like to relocate permanently to another country, if they had the chance.
The United States was the most desired destination overall in terms of numbers - around 165 million adults would like to move there permanently if they could.
Other top destinations included Canada, Britain, France (all three with around 45 million potential migrants); Spain (35 million) and Saudi Arabia (30 million).
Sub-Saharan Africa was the region with the highest percentage of people who would like to emigrate, at around 38 per cent.
The corresponding figure for the Middle East and North Africa was 23 per cent, and 19 per cent and 18 per cent respectively for Europe and the Americas.
Those living in Asia were the least likely to emigrate, with only 10 per cent expressing a desire to do so.
Ms Neli Esipova, Gallup's director of research for global migration, said the findings showed that hundreds of millions of people around the world felt pulled or pushed towards countries other than their own.
'Who these potential migrants are, where they would like to go and why will continue to be crucial for leaders in countries of origin and destination to understand as they develop migration and development strategies during the economic crisis and well after,' she said.
ST : New up-ramp to West Coast Highway viaduct [1 Attachment]
Nov 5, 2009
New up-ramp to West Coast Highway viaduct
A NEW up-ramp to the West Coast Highway viaduct at Telok Blangah Road will open tomorrow at 11am.
The existing up-ramp heading east will be converted into a down-ramp by January.
This is so that motorists headed for Henderson Road may use the viaduct to bypass busy junctions along Telok Blangah Road.
The nearest available down-ramp westbound now is at Alexandra Road.
These works are part of overall improvements by the Land Transport Authority to increase traffic capacity by 30 per cent in the Sentosa-Harbourfront area, ahead of the opening of the new integrated resort and future developments in the area.
New up-ramp to West Coast Highway viaduct
A NEW up-ramp to the West Coast Highway viaduct at Telok Blangah Road will open tomorrow at 11am.
The existing up-ramp heading east will be converted into a down-ramp by January.
This is so that motorists headed for Henderson Road may use the viaduct to bypass busy junctions along Telok Blangah Road.
The nearest available down-ramp westbound now is at Alexandra Road.
These works are part of overall improvements by the Land Transport Authority to increase traffic capacity by 30 per cent in the Sentosa-Harbourfront area, ahead of the opening of the new integrated resort and future developments in the area.
ST : China buyers prefer properties under $1m
Nov 5, 2009
China buyers prefer properties under $1m
HOME buyers from China prefer properties under $1 million and tend to favour apartments near MRT stations as they generally do not own cars here.
Many are permanent residents and work here, possibly in areas such as Jurong, Bedok and Kallang.
That is the typical profile of a buyer from China, say agents The Straits Times spoke to.
A total of 707 buyers from China, of whom 432 were PRs, bought homes in the first nine months of the year.
As with buyers from Malaysia and India, PRs from China far outnumber those who are non-PRs, data from Savills Singapore showed.
'Lately, for mass market products, we are seeing more Chinese buyers than Indian buyers,' said PropNex chief executive Mohamed Ismail Gafoor.
Agents said a large group of China buyers are Singapore PRs who already have families or are about to settle down here and are buying properties for their own use.
A small group of investors are young couples in their 30s to 40s who run their own businesses back home, said mortgage consultant Ally Yang of her clients.
There is also a group of 'flamboyant high net worth types who has at least several millions to burn' looking to buy, possibly for investment, said a property agent who deals mainly with new projects.
A Frasers Centrepoint spokesman said a lot more China buyers had snapped up units at its Caspian project next to Lakeside MRT station, launched in February, than earlier projects.
Those China buyers were residing or working in the area, she said.
Savills said that most of the buying activity from China nationals this year was concentrated in Jurong West and Bedok, followed by Kallang.
'Those who want to invest like Singapore because the rental returns are better and they can look forward to capital appreciation. They would have a friend or relative here,' said Ms Yang, a PR from China. 'They are happy with leasehold properties here because in China, the maximum lease is only 70 years.'
JOYCE TEO
China buyers prefer properties under $1m
HOME buyers from China prefer properties under $1 million and tend to favour apartments near MRT stations as they generally do not own cars here.
Many are permanent residents and work here, possibly in areas such as Jurong, Bedok and Kallang.
That is the typical profile of a buyer from China, say agents The Straits Times spoke to.
A total of 707 buyers from China, of whom 432 were PRs, bought homes in the first nine months of the year.
As with buyers from Malaysia and India, PRs from China far outnumber those who are non-PRs, data from Savills Singapore showed.
'Lately, for mass market products, we are seeing more Chinese buyers than Indian buyers,' said PropNex chief executive Mohamed Ismail Gafoor.
Agents said a large group of China buyers are Singapore PRs who already have families or are about to settle down here and are buying properties for their own use.
A small group of investors are young couples in their 30s to 40s who run their own businesses back home, said mortgage consultant Ally Yang of her clients.
There is also a group of 'flamboyant high net worth types who has at least several millions to burn' looking to buy, possibly for investment, said a property agent who deals mainly with new projects.
A Frasers Centrepoint spokesman said a lot more China buyers had snapped up units at its Caspian project next to Lakeside MRT station, launched in February, than earlier projects.
Those China buyers were residing or working in the area, she said.
Savills said that most of the buying activity from China nationals this year was concentrated in Jurong West and Bedok, followed by Kallang.
'Those who want to invest like Singapore because the rental returns are better and they can look forward to capital appreciation. They would have a friend or relative here,' said Ms Yang, a PR from China. 'They are happy with leasehold properties here because in China, the maximum lease is only 70 years.'
JOYCE TEO
BT : Supermarket? It only looks like one: owner
Business Times - 05 Nov 2009
Supermarket? It only looks like one: owner
URA investigates Mustafa Warehouse for unauthorised change of use
(SINGAPORE) It looks like a department store and supermarket facility but its owner insists that it isn't.
The six-storey Mustafa Warehouse on Kallang Pudding Road has been around for more than five years now, but its first two levels were shuttered for many years, although it held warehouse sales on and off.
About three weeks ago, the doors to the first two levels were opened on a 'permanent' basis and this has raised the eyebrows of some competitors, who see a department store on the first level and a supermarket on the second with rows of cashier checkout counters - just like in a retail facility.
They say that by operating a retail business out of warehouse premises - which is not allowed under Singapore's planning regulations - Mustafa is deriving an unfair advantage over other retailers that have to pay for more costly retail space.
The Urban Redevelopment Authority (URA) has now begun investigating whether there has been an unauthorised change of use.
A URA spokesman said: 'The subject premises at 8 Kallang Pudding Road is a six-storey building approved for warehouse use. We are currently investigating the subject premises and hence, it would not be appropriate for us to make any comments on the investigation at this point in time.
'If there is a breach in our planning controls, enforcement action will be taken against the persons responsible.'
BT understands that after URA officers went down to the premises to investigate, Mustafa put up signboards at the premises listing the building's activities. These include wholesale operations, a worldwide distribution showroom for overseas customers and payment system testing for EZlink, online and biometric card systems.
When BT visited the place earlier this week, a few shoppers were seen carrying groceries in shopping baskets and paying at checkout counters.
General merchandise such as pharmaceuticals, electronic goods and accessories are displayed in racks on the first level, while a supermarket with groceries, frozen foods and other items displayed amid spartan hypermarket-style fixtures and bare ceiling are on the second level.
When contacted, Mohamed Mustafa & Samsuddin Co managing director Mustaq Ahmad insisted: 'This is not a retail outlet although it may look like (it).'
Instead, the building's first two levels serve as a showroom and small order processing centre to cater to Mustafa's home delivery business.
Instead of having to open up a large carton in its warehouse coldroom to meet a small order, Mustafa reckons that it is more convenient to display smaller quantities of goods on shelves on the first two levels of the building.
'So we needed to have something like a shop within the warehouse itself,' said Mr Mustaq.
Mustafa developed the building on a 58,400 square foot freehold site it bought in 2000. At the time, the plan was to build a 120,000-sq-ft warehouse and showroom on the site. Under Master Plan 2008, the site is zoned Business 1, which means uses such as clean industry and warehouse are allowed.
Mr Mustaq said that the facility also helps staff process home-delivery orders and reduce crowd levels at the retailer's Little India stores at Mustafa Centre and Serangoon Plaza.
He added that shoppers at the Kallang Pudding facility will have to register first before they can buy. 'Entry in future will be restricted only by membership. At this time, anybody can become a member. But later . . . we may have to limit the number of people coming there if there's congestion.'
Mustafa needs these members to help create transactions to test some business systems it is developing such as its online business and a biometric card payment system.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Supermarket? It only looks like one: owner
URA investigates Mustafa Warehouse for unauthorised change of use
(SINGAPORE) It looks like a department store and supermarket facility but its owner insists that it isn't.
The six-storey Mustafa Warehouse on Kallang Pudding Road has been around for more than five years now, but its first two levels were shuttered for many years, although it held warehouse sales on and off.
About three weeks ago, the doors to the first two levels were opened on a 'permanent' basis and this has raised the eyebrows of some competitors, who see a department store on the first level and a supermarket on the second with rows of cashier checkout counters - just like in a retail facility.
They say that by operating a retail business out of warehouse premises - which is not allowed under Singapore's planning regulations - Mustafa is deriving an unfair advantage over other retailers that have to pay for more costly retail space.
The Urban Redevelopment Authority (URA) has now begun investigating whether there has been an unauthorised change of use.
A URA spokesman said: 'The subject premises at 8 Kallang Pudding Road is a six-storey building approved for warehouse use. We are currently investigating the subject premises and hence, it would not be appropriate for us to make any comments on the investigation at this point in time.
'If there is a breach in our planning controls, enforcement action will be taken against the persons responsible.'
BT understands that after URA officers went down to the premises to investigate, Mustafa put up signboards at the premises listing the building's activities. These include wholesale operations, a worldwide distribution showroom for overseas customers and payment system testing for EZlink, online and biometric card systems.
When BT visited the place earlier this week, a few shoppers were seen carrying groceries in shopping baskets and paying at checkout counters.
General merchandise such as pharmaceuticals, electronic goods and accessories are displayed in racks on the first level, while a supermarket with groceries, frozen foods and other items displayed amid spartan hypermarket-style fixtures and bare ceiling are on the second level.
When contacted, Mohamed Mustafa & Samsuddin Co managing director Mustaq Ahmad insisted: 'This is not a retail outlet although it may look like (it).'
Instead, the building's first two levels serve as a showroom and small order processing centre to cater to Mustafa's home delivery business.
Instead of having to open up a large carton in its warehouse coldroom to meet a small order, Mustafa reckons that it is more convenient to display smaller quantities of goods on shelves on the first two levels of the building.
'So we needed to have something like a shop within the warehouse itself,' said Mr Mustaq.
Mustafa developed the building on a 58,400 square foot freehold site it bought in 2000. At the time, the plan was to build a 120,000-sq-ft warehouse and showroom on the site. Under Master Plan 2008, the site is zoned Business 1, which means uses such as clean industry and warehouse are allowed.
Mr Mustaq said that the facility also helps staff process home-delivery orders and reduce crowd levels at the retailer's Little India stores at Mustafa Centre and Serangoon Plaza.
He added that shoppers at the Kallang Pudding facility will have to register first before they can buy. 'Entry in future will be restricted only by membership. At this time, anybody can become a member. But later . . . we may have to limit the number of people coming there if there's congestion.'
Mustafa needs these members to help create transactions to test some business systems it is developing such as its online business and a biometric card payment system.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
BT : Oct developer sales probably just 700-800
Business Times - 05 Nov 2009
Oct developer sales probably just 700-800
Estimate is down significantly from September's 1,143
By KALPANA RASHIWALA
(SINGAPORE) A BT poll this week of major developers as well as agents that marketed projects actively in October showed that about 660 private homes were sold in the primary market in October.
Developers reckon that, including other developments on the market, the total tally for primary market sales last month could come in at about 700-800 units - down significantly from the 1,143 private homes sold in September.
Developers' monthly home sales peaked at 2,772 units in July this year, according to official data from Urban Redevelopment Authority. Its figures on developer sales for October will be released on Monday.
Market watchers noted that October was generally a quieter month, with developers launching fewer units as well as recording slower sales.
'Things have become more cautious, after the constant messaging from the authorities advising home buyers that there's no need to rush, that they should take their time and that there'll be enough supply,' said a property consultant who declined to be named.
Most developers would have sold fewer homes last month compared with September, unless they had released new projects during the month.
Far East Organization may possibly have sold the most homes last month. It told BT that it sold 173 private homes, more than double the September result of 78 units.
The 173 figure is made up of 162 units in uncompleted projects (including 13 in joint venture projects) and 11 units in completed developments. Far East's top seller last month was Cyan, which is located along Keng Chin Road in the Bukit Timah area, with 76 units sold.
Cyan, which was released last month, is priced at $1,850 per square foot on average. Far East's other better selling projects in October included Silversea along Marine Parade Road, and Mi Casa in Choa Chu Kang.
A joint venture involving Koh Brothers, Heeton Holdings, KSH Holdings and Lian Beng Group is said to have sold 50-plus units at Lincoln Suites at Khiang Guan Avenue in October. More than 65 units were sold at Suites@Guillemard last month.
Ho Bee Investment executive director Ong Chong Hua, who reckons that developers sold about 700-800 homes in October, said that sales volumes would ease in the fourth quarter of this year.
However, prices are unlikely to drop, he added.
'If you look at the competitive bids at state land tenders, there's no reason for developers to price their projects cheap. We're generally optimistic about the market going forward.'
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Oct developer sales probably just 700-800
Estimate is down significantly from September's 1,143
By KALPANA RASHIWALA
(SINGAPORE) A BT poll this week of major developers as well as agents that marketed projects actively in October showed that about 660 private homes were sold in the primary market in October.
Developers reckon that, including other developments on the market, the total tally for primary market sales last month could come in at about 700-800 units - down significantly from the 1,143 private homes sold in September.
Developers' monthly home sales peaked at 2,772 units in July this year, according to official data from Urban Redevelopment Authority. Its figures on developer sales for October will be released on Monday.
Market watchers noted that October was generally a quieter month, with developers launching fewer units as well as recording slower sales.
'Things have become more cautious, after the constant messaging from the authorities advising home buyers that there's no need to rush, that they should take their time and that there'll be enough supply,' said a property consultant who declined to be named.
Most developers would have sold fewer homes last month compared with September, unless they had released new projects during the month.
Far East Organization may possibly have sold the most homes last month. It told BT that it sold 173 private homes, more than double the September result of 78 units.
The 173 figure is made up of 162 units in uncompleted projects (including 13 in joint venture projects) and 11 units in completed developments. Far East's top seller last month was Cyan, which is located along Keng Chin Road in the Bukit Timah area, with 76 units sold.
Cyan, which was released last month, is priced at $1,850 per square foot on average. Far East's other better selling projects in October included Silversea along Marine Parade Road, and Mi Casa in Choa Chu Kang.
A joint venture involving Koh Brothers, Heeton Holdings, KSH Holdings and Lian Beng Group is said to have sold 50-plus units at Lincoln Suites at Khiang Guan Avenue in October. More than 65 units were sold at Suites@Guillemard last month.
Ho Bee Investment executive director Ong Chong Hua, who reckons that developers sold about 700-800 homes in October, said that sales volumes would ease in the fourth quarter of this year.
However, prices are unlikely to drop, he added.
'If you look at the competitive bids at state land tenders, there's no reason for developers to price their projects cheap. We're generally optimistic about the market going forward.'
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
BT : Pan Pacific Hotels seizing the day in tough times
Business Times - 05 Nov 2009
SINGAPORE INTERNATIONAL
Pan Pacific Hotels seizing the day in tough times
IN times like this, when business is hard to come by, the weakness of a poorly run or financially strapped company really shows up, says Eric Levy, Pan Pacific Hotels Group's senior vice-president for development.
When the going gets tough, owners of badly operated hotels or service apartments, weighed down by debt, have no choice but to turn to new operators or sell their assets, he says.
And that's when Pan Pacific Hotels Group, formerly Hotel Plaza and a subsidiary of Singapore-listed UOL Group, steps in - to offer its management services or buy the properties.
It's no wonder that Pan Pacific Hotels Group is expanding in the middle of a global recession.
The group unveiled Pan Pacific Xiamen in China in August and, within a few months, will add properties in Suzhou, Bangkok and Kuala Lumpur to its portfolio.
Pan Pacific Hotels Group is also building a new hotel in Tianjin, China.
'While several of the industry giants are slowing their development due to corporate cutbacks, Pan Pacific Hotels Group is taking the opportunity to prime itself for growth - by strengthening its Pan Pacific and Parkroyal brands and enhancing its capabilities,' Mr Levy says.
With consumers having cut back spending, Pan Pacific Hotels Group is offering lower-priced alternatives without compromising standards - to meet still-high expectations.
It is also offering more to hotel owners. 'With our increasing pipeline of new hotels, they can look forward to increased brand equity and awareness, and a larger customer base to leverage on,' says Mr Levy.
Pan Pacific Hotels Group is securing more hotel management contracts in key cities in North America, Greater China, Japan and Australia, he says.
'We have identified these cities as key feeder markets, and increasing our visibility and brand awareness in them will benefit all the properties in our portfolio.'
Mr Levy says Pan Pacific Hotels Group further plans to build up a presence in resort destinations such as Bali and Phuket, 'because we see the opportunity to tap into the discretionary travel segment'.
According to him, Pan Pacific Hotels Group has an advantage over other Singaporean hospitality players because both of its brands - Pan Pacific and Parkroyal - are international and backed by decades of heritage.
'Parkroyal Hotels & Resorts had its beginnings in Australia in the 1960s, while the first Pan Pacific Hotel was established in Jakarta in 1976,' Mr Levy says.
'We acknowledge the brand equity that both brands have and hope to leverage on this to grow them.'
In markets where it is just starting to make its presence felt, Pan Pacific Hotels Group intends to make greater inroads through its 'exemplary' service and product offerings, and through 'focused and expert sales and marketing capabilities'.
Mr Levy claims Pan Pacific Hotels Group also has an edge over other global hotel players when teaming up with hotel owners.
'We have an ownership mentality as owners of over 15 hotel assets ourselves,' he says.
'As such, we are able to adopt an ownership mentality in approaching all the properties in our management portfolio. Our experience as hotel owners allows us to efficiently partner with owners to maximise returns and enhance the value of their assets.'
Singapore International - A fortnightly series brought to you by IE Singapore and The Business Times
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
SINGAPORE INTERNATIONAL
Pan Pacific Hotels seizing the day in tough times
IN times like this, when business is hard to come by, the weakness of a poorly run or financially strapped company really shows up, says Eric Levy, Pan Pacific Hotels Group's senior vice-president for development.
When the going gets tough, owners of badly operated hotels or service apartments, weighed down by debt, have no choice but to turn to new operators or sell their assets, he says.
And that's when Pan Pacific Hotels Group, formerly Hotel Plaza and a subsidiary of Singapore-listed UOL Group, steps in - to offer its management services or buy the properties.
It's no wonder that Pan Pacific Hotels Group is expanding in the middle of a global recession.
The group unveiled Pan Pacific Xiamen in China in August and, within a few months, will add properties in Suzhou, Bangkok and Kuala Lumpur to its portfolio.
Pan Pacific Hotels Group is also building a new hotel in Tianjin, China.
'While several of the industry giants are slowing their development due to corporate cutbacks, Pan Pacific Hotels Group is taking the opportunity to prime itself for growth - by strengthening its Pan Pacific and Parkroyal brands and enhancing its capabilities,' Mr Levy says.
With consumers having cut back spending, Pan Pacific Hotels Group is offering lower-priced alternatives without compromising standards - to meet still-high expectations.
It is also offering more to hotel owners. 'With our increasing pipeline of new hotels, they can look forward to increased brand equity and awareness, and a larger customer base to leverage on,' says Mr Levy.
Pan Pacific Hotels Group is securing more hotel management contracts in key cities in North America, Greater China, Japan and Australia, he says.
'We have identified these cities as key feeder markets, and increasing our visibility and brand awareness in them will benefit all the properties in our portfolio.'
Mr Levy says Pan Pacific Hotels Group further plans to build up a presence in resort destinations such as Bali and Phuket, 'because we see the opportunity to tap into the discretionary travel segment'.
According to him, Pan Pacific Hotels Group has an advantage over other Singaporean hospitality players because both of its brands - Pan Pacific and Parkroyal - are international and backed by decades of heritage.
'Parkroyal Hotels & Resorts had its beginnings in Australia in the 1960s, while the first Pan Pacific Hotel was established in Jakarta in 1976,' Mr Levy says.
'We acknowledge the brand equity that both brands have and hope to leverage on this to grow them.'
In markets where it is just starting to make its presence felt, Pan Pacific Hotels Group intends to make greater inroads through its 'exemplary' service and product offerings, and through 'focused and expert sales and marketing capabilities'.
Mr Levy claims Pan Pacific Hotels Group also has an edge over other global hotel players when teaming up with hotel owners.
'We have an ownership mentality as owners of over 15 hotel assets ourselves,' he says.
'As such, we are able to adopt an ownership mentality in approaching all the properties in our management portfolio. Our experience as hotel owners allows us to efficiently partner with owners to maximise returns and enhance the value of their assets.'
Singapore International - A fortnightly series brought to you by IE Singapore and The Business Times
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
BT : Ho Bee, MCL launching Parvis condo at $1,480 psf average
Business Times - 05 Nov 2009
Ho Bee, MCL launching Parvis condo at $1,480 psf average
By KALPANA RASHIWALA
(SINGAPORE) As other developers mull over whether to release new projects this quarter or hold back until 2010, Ho Bee and MCL Land have moved to launch their Parvis condo at Holland Hill this week.
The average price is about $1,480 per sq ft for the initial batch of 85 units. The 12-storey freehold project has 248 units.
The pricing is considered fair for the location, said a property consultant who is not marketing Parvis, adding that it could easily be $1,500-1,600 psf on average.
The Lush on Holland Hill nearby is selling for about $1,500 psf on average. In the secondary market, units at Waterfall Gardens in Farrer Road are changing hands for about $1,450-1,500 psf.
The 85 units MCL Land and Ho Bee are releasing at Parvis will be priced between $1,400 psf and $1,600 psf. In absolute terms, prices range from $1.62 million for a two-bedroom unit of 990 sq ft to $3.02 million for a four-bedder of 1,991 sq ft.
The project comprises three blocks being built on the former Holland Hill Mansions site, which Ho Bee and MCL bought in late 2006 for $292 million or $750 psf per plot ratio.
Market watchers estimate the developers' breakeven cost could be about $1,200 psf. Assuming a $1,480 psf average selling price for the entire development, their total pre-tax profit for the project could be about $120 million, some analysts reckon.
This is the second time MCL Land and Ho Bee have teamed up. Their first partnership was the 716-unit Rio Vista condo at Hougang. The project was launched in 2001 and completed three years later.
MCL is developing solo a 608-unit condo on a 99-year leasehold plot near Yishun MRT Station, fronting Lower Seletar Reservoir and close to Singapore Orchid Country Club/Golf Course.
It paid $350 psf ppr for the site in a state tender in March last year. The project, named The Estuary, will be launch-ready by year-end but is more likely to be released only in the first quarter of next year, said MCL's CEO Koh Teck Chuan.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Ho Bee, MCL launching Parvis condo at $1,480 psf average
By KALPANA RASHIWALA
(SINGAPORE) As other developers mull over whether to release new projects this quarter or hold back until 2010, Ho Bee and MCL Land have moved to launch their Parvis condo at Holland Hill this week.
The average price is about $1,480 per sq ft for the initial batch of 85 units. The 12-storey freehold project has 248 units.
The pricing is considered fair for the location, said a property consultant who is not marketing Parvis, adding that it could easily be $1,500-1,600 psf on average.
The Lush on Holland Hill nearby is selling for about $1,500 psf on average. In the secondary market, units at Waterfall Gardens in Farrer Road are changing hands for about $1,450-1,500 psf.
The 85 units MCL Land and Ho Bee are releasing at Parvis will be priced between $1,400 psf and $1,600 psf. In absolute terms, prices range from $1.62 million for a two-bedroom unit of 990 sq ft to $3.02 million for a four-bedder of 1,991 sq ft.
The project comprises three blocks being built on the former Holland Hill Mansions site, which Ho Bee and MCL bought in late 2006 for $292 million or $750 psf per plot ratio.
Market watchers estimate the developers' breakeven cost could be about $1,200 psf. Assuming a $1,480 psf average selling price for the entire development, their total pre-tax profit for the project could be about $120 million, some analysts reckon.
This is the second time MCL Land and Ho Bee have teamed up. Their first partnership was the 716-unit Rio Vista condo at Hougang. The project was launched in 2001 and completed three years later.
MCL is developing solo a 608-unit condo on a 99-year leasehold plot near Yishun MRT Station, fronting Lower Seletar Reservoir and close to Singapore Orchid Country Club/Golf Course.
It paid $350 psf ppr for the site in a state tender in March last year. The project, named The Estuary, will be launch-ready by year-end but is more likely to be released only in the first quarter of next year, said MCL's CEO Koh Teck Chuan.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
BT : CapitaLand sells two Kallang properties
Business Times - 05 Nov 2009
CapitaLand sells two Kallang properties
Group now left with another two S'pore industrial assets in its portfolio
By KALPANA RASHIWALA
CAPITALAND has agreed to sell two of its industrial properties in Kallang for a total of $68 million to construction and industrial property development group Chiu Teng.
The move, which is part of a strategy to divest non-core assets, leaves CapitaLand with just two industrial properties - Corporation Place in Jurong, in which it has a 75 per cent stake, and Technopark@Chai Chee, which it fully owns.
BT reported in November last year that the property giant was believed to be looking to sell its four industrial properties in Singapore either individually or as a portfolio.
Technopark had a book value of $210 million at end-2008. Corporation Place was understood to be worth about $80 million at end-June 2009.
A CapitaLand spokeswoman said: 'We will continue to look into the possibility of divesting Corporation Place and Technopark at the appropriate time, for the right price and when target returns are met. However, as of now, we have no definitive plans for their sale.'
CapitaLand said in a news release yesterday that it expects to book a gain of about $19.2 million on the completion of sale of the two leasehold Kallang properties, which is expected to be next month.
Had the sale been effected on Jan 1, 2009, CapitaLand's earnings per share for the nine months ended Sept 30 would have increased almost 10 per cent, from 4.1 to 4.5 cents.
CapitaLand said yesterday the book value at Sept 30, 2009, of Kallang Bahru Complex (KBC) was $28.9 million and that of Kallang Avenue Industrial Centre (KAIC) was $19.4 million.
Colliers International brokered the sale of the two properties through an expression-of-interest and tender process that ended last month. Chiu Teng was the highest bidder.
Bidders had to make offers for the two assets together, said Colliers managing director Dennis Yeo.
'The properties have redevelopment potential,' he said. 'Under Master Plan 2008, the sites are zoned for Business 1 use with a plot ratio of 2.5 plus a bonus plot ratio of 0.5 for white uses such as offices, shops and showrooms.'
KAIC, which is on a site with a remaining lease of about 65 years, comprises four blocks of two-storey light industrial factory space occupied by SMEs such as carpentry, printing and engineering workshops.
KBC is a nine-storey flatted warehouse with total net lettable area of about 170,000 square feet. It is on a 109,000-sq-ft site with a remaining lease of about 68 years. The current occupancy rates for KBC and KAIC are 97 per cent and 82 per cent respectively.
CapitaLand Commercial CEO Ee Chee Hong said: 'This sale is in line with our active portfolio management strategy which includes divesting non-core assets. The current positive market sentiment provided us a window of opportunity to unlock the value of KAIC and KBC through divestment.
'Proceeds from the sale will be redeployed to new investments that will enhance our presence in our core office business, and for expansion in high-growth overseas markets.'
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
CapitaLand sells two Kallang properties
Group now left with another two S'pore industrial assets in its portfolio
By KALPANA RASHIWALA
CAPITALAND has agreed to sell two of its industrial properties in Kallang for a total of $68 million to construction and industrial property development group Chiu Teng.
The move, which is part of a strategy to divest non-core assets, leaves CapitaLand with just two industrial properties - Corporation Place in Jurong, in which it has a 75 per cent stake, and Technopark@Chai Chee, which it fully owns.
BT reported in November last year that the property giant was believed to be looking to sell its four industrial properties in Singapore either individually or as a portfolio.
Technopark had a book value of $210 million at end-2008. Corporation Place was understood to be worth about $80 million at end-June 2009.
A CapitaLand spokeswoman said: 'We will continue to look into the possibility of divesting Corporation Place and Technopark at the appropriate time, for the right price and when target returns are met. However, as of now, we have no definitive plans for their sale.'
CapitaLand said in a news release yesterday that it expects to book a gain of about $19.2 million on the completion of sale of the two leasehold Kallang properties, which is expected to be next month.
Had the sale been effected on Jan 1, 2009, CapitaLand's earnings per share for the nine months ended Sept 30 would have increased almost 10 per cent, from 4.1 to 4.5 cents.
CapitaLand said yesterday the book value at Sept 30, 2009, of Kallang Bahru Complex (KBC) was $28.9 million and that of Kallang Avenue Industrial Centre (KAIC) was $19.4 million.
Colliers International brokered the sale of the two properties through an expression-of-interest and tender process that ended last month. Chiu Teng was the highest bidder.
Bidders had to make offers for the two assets together, said Colliers managing director Dennis Yeo.
'The properties have redevelopment potential,' he said. 'Under Master Plan 2008, the sites are zoned for Business 1 use with a plot ratio of 2.5 plus a bonus plot ratio of 0.5 for white uses such as offices, shops and showrooms.'
KAIC, which is on a site with a remaining lease of about 65 years, comprises four blocks of two-storey light industrial factory space occupied by SMEs such as carpentry, printing and engineering workshops.
KBC is a nine-storey flatted warehouse with total net lettable area of about 170,000 square feet. It is on a 109,000-sq-ft site with a remaining lease of about 68 years. The current occupancy rates for KBC and KAIC are 97 per cent and 82 per cent respectively.
CapitaLand Commercial CEO Ee Chee Hong said: 'This sale is in line with our active portfolio management strategy which includes divesting non-core assets. The current positive market sentiment provided us a window of opportunity to unlock the value of KAIC and KBC through divestment.
'Proceeds from the sale will be redeployed to new investments that will enhance our presence in our core office business, and for expansion in high-growth overseas markets.'
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Wednesday, November 4, 2009
ST Online Forum : Have minimum educational requirement for property agents
Nov 4, 2009
Have minimum educational requirement for property agents
I AGREE with the latest efforts to regulate property agents . Having retired after being a managing director of two housing agencies, I am privy to the many unseemly practices of unscrupulous property agents.
Needless to say, I had to terminate the employment of some of these agents when their unsavoury practices came to light.
Besides adding an ethical component to the housing agents' certification, I believe setting a minimum educational benchmark is quintessential, for example, a minimum prerequisite of three O-level credits, like what DTZ has set for its agents.
This would enhance the agents' ability to discern correct work ethics when it concerns substantial amounts of monies being paid by unsuspecting parties.
Palanisamy Ramadas
Have minimum educational requirement for property agents
I AGREE with the latest efforts to regulate property agents . Having retired after being a managing director of two housing agencies, I am privy to the many unseemly practices of unscrupulous property agents.
Needless to say, I had to terminate the employment of some of these agents when their unsavoury practices came to light.
Besides adding an ethical component to the housing agents' certification, I believe setting a minimum educational benchmark is quintessential, for example, a minimum prerequisite of three O-level credits, like what DTZ has set for its agents.
This would enhance the agents' ability to discern correct work ethics when it concerns substantial amounts of monies being paid by unsuspecting parties.
Palanisamy Ramadas
ST Online Forum : Why property agents should act for only one party
Nov 4, 2009
Why property agents should act for only one party
I REFER to last Thursday's Forum Online letters by Mrs Teresa Yao ('How new rules can protect property agents') and Mr Teo Kueh Liang ('Barring same-agent property brokerage not practical').
Both writers have highlighted the plight of the majority of ethical property agents, whose image has been tarnished by a small group of unscrupulous and dishonest agents.
In any profession, it is impossible to completely wipe out the bad hats. Therefore, after an acceptable standard of practice has been established, understood and made into law, non-compliant practices should be punished.
In any property transaction, the two most important parties are the seller and the buyer. They must enter into a legally binding contract in order for the sale to go through. It is therefore natural that we facilitate the interests of the seller and the buyer first.
The interests of the property agent come after those of the seller and the buyer, as his role can come into being only after he has been appointed.
The terms of appointment, that is, what the agent can or cannot do, for example, must be expressedly agreed between him and the one who appoints him, so that there is no ambiguity that leads to future problems.
When the Ministry of National Development puts into law a system for the seller, the buyer and the property agent, it must separately examine the relationship between the seller or buyer and the property agent, from the relationship between the seller and the buyer. If the seller or the buyer chooses to hand the responsibilities over to his agent, he must adequately reward the agent.
To protect his own interests, the property agent should act for only one party and not both.
Patrick Sio
Why property agents should act for only one party
I REFER to last Thursday's Forum Online letters by Mrs Teresa Yao ('How new rules can protect property agents') and Mr Teo Kueh Liang ('Barring same-agent property brokerage not practical').
Both writers have highlighted the plight of the majority of ethical property agents, whose image has been tarnished by a small group of unscrupulous and dishonest agents.
In any profession, it is impossible to completely wipe out the bad hats. Therefore, after an acceptable standard of practice has been established, understood and made into law, non-compliant practices should be punished.
In any property transaction, the two most important parties are the seller and the buyer. They must enter into a legally binding contract in order for the sale to go through. It is therefore natural that we facilitate the interests of the seller and the buyer first.
The interests of the property agent come after those of the seller and the buyer, as his role can come into being only after he has been appointed.
The terms of appointment, that is, what the agent can or cannot do, for example, must be expressedly agreed between him and the one who appoints him, so that there is no ambiguity that leads to future problems.
When the Ministry of National Development puts into law a system for the seller, the buyer and the property agent, it must separately examine the relationship between the seller or buyer and the property agent, from the relationship between the seller and the buyer. If the seller or the buyer chooses to hand the responsibilities over to his agent, he must adequately reward the agent.
To protect his own interests, the property agent should act for only one party and not both.
Patrick Sio
ST : Lawyer ordered to return $300,000 over failed deal
Nov 4, 2009
Lawyer ordered to return $300,000 over failed deal
By K.C. Vijayan
A BUSINESSMAN who lost his investment in a property deal and sued the lawyer involved managed to obtain $300,000 out of the $1 million invested.
Mr Satinder Singh Garcha said he was talked into investing the sum and claimed that his lawyer S. Uthayasurian, who is also known as Mr Surian, was instrumental in the loss of that money.
Among other things, Mr Singh claimed the lawyer did not tell him that the middleman involved in the deal was an undischarged bankrupt. But Judicial Commissioner Quentin Loh, who released his judgment on Monday, said Mr Singh knew this all along.
Mr Uthayasurian, who has 18 years of legal experience, has already been suspended from practising for a year by a Court of Three Judges in May, in disciplinary proceedings over the same case.
He had acted for multiple parties involved in a property development project on a 117,000 sq ft plot of land in Tanglin Hill owned by the Brunei government.
Mr Singh not only put in the money in May 2006 but also authorised an undischarged bankrupt, Mr Louis Ang, to disburse the funds.
A week later, he found that most of the money had gone to other parts of the project and legal costs.
Mr Singh, represented by WongPartnership lawyers, sued Mr Surian to get back his investment.
Mr Surian, who was paid legal fees of $100,000 out of the investment, refunded the payment made to him, but Mr Singh wanted the rest of his money back.
He claimed that Mr Surian did not alert him to Mr Ang's status as a bankrupt, nor advise him about the risks of giving a bankrupt 'unfettered authority' to handle money.
But Mr Surian's lawyer N. Sreenivasan countered that Mr Singh knew Mr Ang was an undischarged bankrupt and that, being an experienced businessman, was aware of the risks involved, such as having to forgo any claim against a bankrupt should anything go wrong.
Judicial Commissioner Loh, in his 34-page judgment, agreed with the defence.
He added that Mr Surian never thought of bringing up Mr Ang's bankruptcy status with Mr Singh because Mr Ang had been open about it and had raised it in various meetings with relevant parties which included Mr Singh.
Judicial Commissioner Loh said Mr Singh was 'someone who was willing to shape his evidence, in not insignificant areas, to suit his case'.
He said Mr Singh would still have participated in the project even if he knew Mr Ang was a bankrupt as he was keen to develop long-term ties with the Brunei royal family and government.
The judge held that Mr Surian was not liable for the $550,000 paid to two other parties from the funds provided by Mr Singh. It was clear that money was meant for the intended recipients.
But the lawyer was liable for $300,000 paid to one Mr Lim Beng Huat, who was Mr Ang's driver.
The judge made it clear that Mr Surian had been negligent in making the payout to the driver without probing the reasons or checking with Mr Singh, and this led to the loss.
Mr Singh, who was described as 'extremely intelligent, very sharp and very quick' by the judge, came from the United States to settle in Singapore several years ago.
The businessman is also an avid polo player who captained the Singapore team to a silver medal in the 2007 SEA Games.
Lawyer ordered to return $300,000 over failed deal
By K.C. Vijayan
A BUSINESSMAN who lost his investment in a property deal and sued the lawyer involved managed to obtain $300,000 out of the $1 million invested.
Mr Satinder Singh Garcha said he was talked into investing the sum and claimed that his lawyer S. Uthayasurian, who is also known as Mr Surian, was instrumental in the loss of that money.
Among other things, Mr Singh claimed the lawyer did not tell him that the middleman involved in the deal was an undischarged bankrupt. But Judicial Commissioner Quentin Loh, who released his judgment on Monday, said Mr Singh knew this all along.
Mr Uthayasurian, who has 18 years of legal experience, has already been suspended from practising for a year by a Court of Three Judges in May, in disciplinary proceedings over the same case.
He had acted for multiple parties involved in a property development project on a 117,000 sq ft plot of land in Tanglin Hill owned by the Brunei government.
Mr Singh not only put in the money in May 2006 but also authorised an undischarged bankrupt, Mr Louis Ang, to disburse the funds.
A week later, he found that most of the money had gone to other parts of the project and legal costs.
Mr Singh, represented by WongPartnership lawyers, sued Mr Surian to get back his investment.
Mr Surian, who was paid legal fees of $100,000 out of the investment, refunded the payment made to him, but Mr Singh wanted the rest of his money back.
He claimed that Mr Surian did not alert him to Mr Ang's status as a bankrupt, nor advise him about the risks of giving a bankrupt 'unfettered authority' to handle money.
But Mr Surian's lawyer N. Sreenivasan countered that Mr Singh knew Mr Ang was an undischarged bankrupt and that, being an experienced businessman, was aware of the risks involved, such as having to forgo any claim against a bankrupt should anything go wrong.
Judicial Commissioner Loh, in his 34-page judgment, agreed with the defence.
He added that Mr Surian never thought of bringing up Mr Ang's bankruptcy status with Mr Singh because Mr Ang had been open about it and had raised it in various meetings with relevant parties which included Mr Singh.
Judicial Commissioner Loh said Mr Singh was 'someone who was willing to shape his evidence, in not insignificant areas, to suit his case'.
He said Mr Singh would still have participated in the project even if he knew Mr Ang was a bankrupt as he was keen to develop long-term ties with the Brunei royal family and government.
The judge held that Mr Surian was not liable for the $550,000 paid to two other parties from the funds provided by Mr Singh. It was clear that money was meant for the intended recipients.
But the lawyer was liable for $300,000 paid to one Mr Lim Beng Huat, who was Mr Ang's driver.
The judge made it clear that Mr Surian had been negligent in making the payout to the driver without probing the reasons or checking with Mr Singh, and this led to the loss.
Mr Singh, who was described as 'extremely intelligent, very sharp and very quick' by the judge, came from the United States to settle in Singapore several years ago.
The businessman is also an avid polo player who captained the Singapore team to a silver medal in the 2007 SEA Games.
BT : Saizen Reit defaults on 7.25b yen loan
Business Times - 04 Nov 2009
Saizen Reit defaults on 7.25b yen loan
Property trust says maturity default not likely to affect its ability to operate
(SINGAPORE) Singapore-listed property trust Saizen Reit said yesterday it had defaulted on a 7.253 billion yen (S$112.65 million) commercial mortgage-backed securities loan.
The company said in a statement the 'maturity default' was not expected to affect Saizen Reit's ability to operate as a going concern nor impair its ability to get further financing.
A maturity default occurs when the borrower fails to pay the lender the balloon payment, or principal balance, at maturity.
'The main impact of this maturity default is an increase in the interest rate from 3.07 per cent to a default rate of 7.07 per cent per annum,' Saizen said in a statement.
The loan, known as 'YK Sintoku', is a non-recourse and not cross-collateralised against other properties in Saizen Reit's portfolio. It was originally provided by Credit Suisse Principal Investments Ltd, a unit of Credit Suisse, in 2005 and was later securitised and transferred to an issuer of the commercial-mortgage backed securities, the statement said.
Saizen, which went to market in November 2007, is the only Singapore-listed real estate investment trust (Reit) with purely Japanese regional residential properties\. \-- Reuters
Saizen Reit defaults on 7.25b yen loan
Property trust says maturity default not likely to affect its ability to operate
(SINGAPORE) Singapore-listed property trust Saizen Reit said yesterday it had defaulted on a 7.253 billion yen (S$112.65 million) commercial mortgage-backed securities loan.
The company said in a statement the 'maturity default' was not expected to affect Saizen Reit's ability to operate as a going concern nor impair its ability to get further financing.
A maturity default occurs when the borrower fails to pay the lender the balloon payment, or principal balance, at maturity.
'The main impact of this maturity default is an increase in the interest rate from 3.07 per cent to a default rate of 7.07 per cent per annum,' Saizen said in a statement.
The loan, known as 'YK Sintoku', is a non-recourse and not cross-collateralised against other properties in Saizen Reit's portfolio. It was originally provided by Credit Suisse Principal Investments Ltd, a unit of Credit Suisse, in 2005 and was later securitised and transferred to an issuer of the commercial-mortgage backed securities, the statement said.
Saizen, which went to market in November 2007, is the only Singapore-listed real estate investment trust (Reit) with purely Japanese regional residential properties\. \-- Reuters
BT : US commercial property prices up in Q3: index
Business Times - 04 Nov 2009
US commercial property prices up in Q3: index
(NEW YORK) The prices of investment-grade commercial real estate rose more than 4 per cent in the third quarter, possibly signalling an end to the sector's year-long downward spiral, according to an leading property index released yesterday.
The 4.4 per cent third-quarter increase in the MIT Center for Real Estate's transaction-based index (TBI) index is the first positive price change in the index in more than a year and the largest increase since the market downturn began in mid-2007.
'One quarter does not a trend make and we are still well below normal trading volume,' David Geltner, director of research at MIT/CRE, said in a statement. 'Nevertheless, this is the strongest sign of a bottom that we've had in two years.'
The US commercial real estate market has been in a downward spiral for more than two years. Borrowers are facing shortfalls in financings when loans come due. Some borrowers are struggling to meet even monthly payments.
The delinquency rate of US commercial real estate loans securitised into Commercial Mortgage-Backed Securities (CMBS) hit 4.8 per cent in October, up from 4.36 the prior month and dwarfing the 0.77 rate of a year earlier, according to Trepp, which tracks CMBS loans.
The TBI tracks the prices that institutional investors, such as pension funds pay or receive when buying or selling commercial properties such as shopping centres, apartment complexes and office towers.
The price index at the third quarter stood at 36.5 per cent below its 2007 peak, up from its 39 per cent deficit seen last quarter, which now could be the trough and suggests the US commercial property market may have finally found a price bottom.
In addition, the number of transactions rose for the second straight month in the third quarter to 90 from 42 in the second quarter.
'The big news this quarter is not just that the price index increased, but that transaction volume substantially increased for the second quarter in a row, reflecting the first increase in market sentiment in two years,' Mr Geltner noted.
MIT/CRE also compiles indexes that gauge movements on the demand side and on the supply side of the institutional property market. The demand-side index rose to 42 per cent below the 2007 peak, up from 48 per cent last quarter. It ended eight consecutive declines. -- Reuters
US commercial property prices up in Q3: index
(NEW YORK) The prices of investment-grade commercial real estate rose more than 4 per cent in the third quarter, possibly signalling an end to the sector's year-long downward spiral, according to an leading property index released yesterday.
The 4.4 per cent third-quarter increase in the MIT Center for Real Estate's transaction-based index (TBI) index is the first positive price change in the index in more than a year and the largest increase since the market downturn began in mid-2007.
'One quarter does not a trend make and we are still well below normal trading volume,' David Geltner, director of research at MIT/CRE, said in a statement. 'Nevertheless, this is the strongest sign of a bottom that we've had in two years.'
The US commercial real estate market has been in a downward spiral for more than two years. Borrowers are facing shortfalls in financings when loans come due. Some borrowers are struggling to meet even monthly payments.
The delinquency rate of US commercial real estate loans securitised into Commercial Mortgage-Backed Securities (CMBS) hit 4.8 per cent in October, up from 4.36 the prior month and dwarfing the 0.77 rate of a year earlier, according to Trepp, which tracks CMBS loans.
The TBI tracks the prices that institutional investors, such as pension funds pay or receive when buying or selling commercial properties such as shopping centres, apartment complexes and office towers.
The price index at the third quarter stood at 36.5 per cent below its 2007 peak, up from its 39 per cent deficit seen last quarter, which now could be the trough and suggests the US commercial property market may have finally found a price bottom.
In addition, the number of transactions rose for the second straight month in the third quarter to 90 from 42 in the second quarter.
'The big news this quarter is not just that the price index increased, but that transaction volume substantially increased for the second quarter in a row, reflecting the first increase in market sentiment in two years,' Mr Geltner noted.
MIT/CRE also compiles indexes that gauge movements on the demand side and on the supply side of the institutional property market. The demand-side index rose to 42 per cent below the 2007 peak, up from 48 per cent last quarter. It ended eight consecutive declines. -- Reuters
Market may turn bullish soon
Business Times - 04 Nov 2009
Market may turn bullish soon
Because the plunge of September 2008 will not be included in most statements, turning attitudes positive, says PAUL J LIM
THOUGH stocks have soared more than 50 per cent since the market hit bottom in March, the sentiment of individual investors is hardly euphoric.
In fact, the percentage who say that they are 'bullish' today is only slightly higher than it was in the summer, when the market was much lower, according to a survey by the American Association of Individual Investors.
Yet these attitudes could change soon, but not because anything has changed fundamentally in the market. It's simply that time is passing, and the quarterly performance reports sent to investors will soon no longer highlight the worst of last year's losses.
At the moment, the quarterly brokerage and 401(k) plan statements still reflect an important time lag. Open a recent statement and you're likely to find that despite their gains of late, most of your stock investments still lost money for the 12 months through the third quarter. The Standard & Poor's 500-stock index, for example, was off nearly 7 per cent in the 12 months ended Sept 30.
Fast-forward to current figures, which won't be reflected in most printed investment reports for some weeks. Even after last Friday's losses, many numbers look much better. That's mainly because the market plunge of September last year is no longer included in them. Right now, the S&P 500 is up nearly 12 per cent from its level 12 months ago. Through last Thursday, domestic stock funds were doing even better, with gains of more than 23 per cent, on average, according to Morningstar, the fund tracker.
Investors may think that the market has improved tremendously over just the last few weeks. It hasn't. It's just that by the end of October, the market was more than a year beyond the stock market swoon that followed the collapse of Lehman Brothers. During the worst of the 2008 panic, from the start of September through Oct 10, the market lost nearly a third of its value.
People are often told that they should invest for the long run, but Greg Schultz, a principal at Asset Allocation Advisors, a financial planning firm in Walnut Creek, California, said that 'shorter time frames actually impact investor psychology more'.
'Investors aren't looking at 10 years,' he said. 'They're looking at how they've been doing over six months, nine months, 12 months.'
In the last few weeks, there have been signs that small investors are starting to view this rally as real, said Mike Scarborough, president of Scarborough Capital Management, a 401(k) advisory firm based in Annapolis, Maryland. But most of the bandwagon followers - market timers who fled stocks after last year's tumble but who now want to make a quick buck after equities have already soared - have yet to re-enter the market in droves, he said.
Mr Scarborough believes that this kind of market timing is ill-advised.
'The pigs haven't shown up yet,' he said. 'But when they do, you'll know the market is nearing a top.'
At that point, he said, he is likely to start ratcheting down his clients' exposure to equities by around 5-10 percentage points. He guesses that this will take place in January and February, when investors are likely to open brokerage statements showing double-digit gains for 2009. Those statements are also likely to show modestly positive gains for most types of stock funds over the last five years.
Barring another market swoon, investor confidence is also likely to get a big boost in March. That's when the year-over-year performance figures for stocks will move beyond the sell-off that occurred in the first quarter of this year.
If the market treads water between now and March, the one-year performance figures on March 9 will show a climb of more than 53 per cent. Without further gains, of course, people may focus on the 51 per cent gain that would still be needed to attain the levels of the market's last peak, which was reached in October 2007.
'Psychologically, a lot of people measure themselves off of the highs,' said Ronald W Roge, a financial planner in Bohemia, New York. For now, though, the danger is that the market may be entering a period of rising optimism just as the fundamentals sour.
For example, when the rally began in March, the price-to-earnings ratio for the S&P 500 stood at a modest 14, based on the trailing four quarters of operating profits. Today, that P/E is about 27.
Even if you use a more conservative profit gauge - 10-year averaged earnings, a measure that smoothes out wild swings - you find that valuations have begun to soar. In March, the price-to-earnings ratio for the broad market using these 'normalised' earnings was 13.3, well below the market's historical average of around 16. This P/E has since climbed to 19.5.
A surge in investor confidence could be a shot of adrenaline for a rally that's maturing. But if fundamental stock values are weakening, and investors pour money in anyway, the bears are likely to see this as a sign of a market top. -- NYT
The writer is a senior editor at 'Money' magazine
Market may turn bullish soon
Because the plunge of September 2008 will not be included in most statements, turning attitudes positive, says PAUL J LIM
THOUGH stocks have soared more than 50 per cent since the market hit bottom in March, the sentiment of individual investors is hardly euphoric.
In fact, the percentage who say that they are 'bullish' today is only slightly higher than it was in the summer, when the market was much lower, according to a survey by the American Association of Individual Investors.
Yet these attitudes could change soon, but not because anything has changed fundamentally in the market. It's simply that time is passing, and the quarterly performance reports sent to investors will soon no longer highlight the worst of last year's losses.
At the moment, the quarterly brokerage and 401(k) plan statements still reflect an important time lag. Open a recent statement and you're likely to find that despite their gains of late, most of your stock investments still lost money for the 12 months through the third quarter. The Standard & Poor's 500-stock index, for example, was off nearly 7 per cent in the 12 months ended Sept 30.
Fast-forward to current figures, which won't be reflected in most printed investment reports for some weeks. Even after last Friday's losses, many numbers look much better. That's mainly because the market plunge of September last year is no longer included in them. Right now, the S&P 500 is up nearly 12 per cent from its level 12 months ago. Through last Thursday, domestic stock funds were doing even better, with gains of more than 23 per cent, on average, according to Morningstar, the fund tracker.
Investors may think that the market has improved tremendously over just the last few weeks. It hasn't. It's just that by the end of October, the market was more than a year beyond the stock market swoon that followed the collapse of Lehman Brothers. During the worst of the 2008 panic, from the start of September through Oct 10, the market lost nearly a third of its value.
People are often told that they should invest for the long run, but Greg Schultz, a principal at Asset Allocation Advisors, a financial planning firm in Walnut Creek, California, said that 'shorter time frames actually impact investor psychology more'.
'Investors aren't looking at 10 years,' he said. 'They're looking at how they've been doing over six months, nine months, 12 months.'
In the last few weeks, there have been signs that small investors are starting to view this rally as real, said Mike Scarborough, president of Scarborough Capital Management, a 401(k) advisory firm based in Annapolis, Maryland. But most of the bandwagon followers - market timers who fled stocks after last year's tumble but who now want to make a quick buck after equities have already soared - have yet to re-enter the market in droves, he said.
Mr Scarborough believes that this kind of market timing is ill-advised.
'The pigs haven't shown up yet,' he said. 'But when they do, you'll know the market is nearing a top.'
At that point, he said, he is likely to start ratcheting down his clients' exposure to equities by around 5-10 percentage points. He guesses that this will take place in January and February, when investors are likely to open brokerage statements showing double-digit gains for 2009. Those statements are also likely to show modestly positive gains for most types of stock funds over the last five years.
Barring another market swoon, investor confidence is also likely to get a big boost in March. That's when the year-over-year performance figures for stocks will move beyond the sell-off that occurred in the first quarter of this year.
If the market treads water between now and March, the one-year performance figures on March 9 will show a climb of more than 53 per cent. Without further gains, of course, people may focus on the 51 per cent gain that would still be needed to attain the levels of the market's last peak, which was reached in October 2007.
'Psychologically, a lot of people measure themselves off of the highs,' said Ronald W Roge, a financial planner in Bohemia, New York. For now, though, the danger is that the market may be entering a period of rising optimism just as the fundamentals sour.
For example, when the rally began in March, the price-to-earnings ratio for the S&P 500 stood at a modest 14, based on the trailing four quarters of operating profits. Today, that P/E is about 27.
Even if you use a more conservative profit gauge - 10-year averaged earnings, a measure that smoothes out wild swings - you find that valuations have begun to soar. In March, the price-to-earnings ratio for the broad market using these 'normalised' earnings was 13.3, well below the market's historical average of around 16. This P/E has since climbed to 19.5.
A surge in investor confidence could be a shot of adrenaline for a rally that's maturing. But if fundamental stock values are weakening, and investors pour money in anyway, the bears are likely to see this as a sign of a market top. -- NYT
The writer is a senior editor at 'Money' magazine
BT : UK home prices fall at slowest pace
Business Times - 03 Nov 2009
UK home prices fall at slowest pace
(LONDON) British house prices fell at their slowest annual rate since June 2008 last month, dropping 4.2 per cent, due to an ongoing lack of housing for sale after the credit crunch, property data company Hometrack said yesterday.
Hometrack's monthly survey of estate agents and surveyors showed that house prices rose 0.2 per cent in England and Wales last month on a non-seasonally adjusted basis, the same rate of increase as in September.
However, this rise was largely concentrated in London, where prices rose 0.4 per cent, while in 84 per cent of postal code areas, house prices were static last month, Hometrack said.
The number of new buyers registering with estate agents grew only 1.2 per cent, down sharply from an average of 7.5 per cent in spring and early summer when many Britons typically start house-hunting.
'The pent-up demand that has boosted the market in recent months is starting to fade in the face of firmer pricing and fewer clear bargains,' said Richard Donnell, Hometrack's director of research.
'Looking ahead, new buyer registrations are likely to slow further in the coming weeks as we approach Christmas. And with a continuing lack of new housing for sale, prices are expected to remain under upward pressure in the near term.'
Low interest rates and a sharp fall in house prices since their peak in late 2007 have made British property more affordable than in many years, but rising unemployment and the difficulty many homebuyers have in finding mortgages have kept a lid on demand.
Hometrack's survey shows weaker recent growth in house prices than that of mortgage lender Nationwide, which said on Friday that prices rose 0.4 per cent last month and were up 2 per cent on the year, based on mortgage approvals.
The Land Registry, whose record of completed transactions lags other surveys, reported that prices rose 0.9 per cent in September but were still 5.6 per cent down on a year earlier. -- Reuters
UK home prices fall at slowest pace
(LONDON) British house prices fell at their slowest annual rate since June 2008 last month, dropping 4.2 per cent, due to an ongoing lack of housing for sale after the credit crunch, property data company Hometrack said yesterday.
Hometrack's monthly survey of estate agents and surveyors showed that house prices rose 0.2 per cent in England and Wales last month on a non-seasonally adjusted basis, the same rate of increase as in September.
However, this rise was largely concentrated in London, where prices rose 0.4 per cent, while in 84 per cent of postal code areas, house prices were static last month, Hometrack said.
The number of new buyers registering with estate agents grew only 1.2 per cent, down sharply from an average of 7.5 per cent in spring and early summer when many Britons typically start house-hunting.
'The pent-up demand that has boosted the market in recent months is starting to fade in the face of firmer pricing and fewer clear bargains,' said Richard Donnell, Hometrack's director of research.
'Looking ahead, new buyer registrations are likely to slow further in the coming weeks as we approach Christmas. And with a continuing lack of new housing for sale, prices are expected to remain under upward pressure in the near term.'
Low interest rates and a sharp fall in house prices since their peak in late 2007 have made British property more affordable than in many years, but rising unemployment and the difficulty many homebuyers have in finding mortgages have kept a lid on demand.
Hometrack's survey shows weaker recent growth in house prices than that of mortgage lender Nationwide, which said on Friday that prices rose 0.4 per cent last month and were up 2 per cent on the year, based on mortgage approvals.
The Land Registry, whose record of completed transactions lags other surveys, reported that prices rose 0.9 per cent in September but were still 5.6 per cent down on a year earlier. -- Reuters
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Pre-development Land Investing
In business for over 30 years, success in providing real estate investment opportunities to clients around the world is a simple, yet effective separation of roles and responsibilites. The four pillars of strength guide the land from the research and acquisition, through to the exit, including the distribution of proceeds to our clients ......
To know more how this is really work for you and your clients....
Please contact me Terence Tay @ (+65) 9387-5896 or email : terencetay.kh@gmail.com
To know more how this is really work for you and your clients....
Please contact me Terence Tay @ (+65) 9387-5896 or email : terencetay.kh@gmail.com
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