Business Times - 10 Nov 2009
Clementi Mall tender draws top bid of almost $542 million
By KALPANA RASHIWALA
The Housing & Development Board's tender for Clementi Mall has attracted a total of six bids. The top bid by CM Domain Pte Ltd, a unit of Singapore Press Holdings, was for $541.898 million, which works out to $2,800 per square foot based on the net lettable area of 18,000 sq metres or 193,750 sq ft.
The mall is being sold on 99-year leasehold tenure.
HDB is building only the core structure and facade, which it aims to hand over to the eventual buyer around August next year. The new owner will then finish the project internally, with flexibility to plan the theme and layout. The buyer will also have naming rights to the mall.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Tuesday, November 10, 2009
BT : More action may be needed if recent property measures inadequate: MAS
Business Times - 10 Nov 2009
More action may be needed if recent property measures inadequate: MAS
Risk of speculation escalating as market expects low interest rates to persist
By CONRAD TAN
(SINGAPORE) Further action to cool the Singapore property market may be needed if recent measures to dampen speculation prove insufficient, the Monetary Authority of Singapore said yesterday.
Looking ahead, 'price levels and transaction activity bear close monitoring', MAS said in its yearly Financial Stability Review, published yesterday.
'As Singapore emerges from recession and with the market expecting low interest rates to persist for some time, the risk of a renewed escalation of speculative momentum cannot be discounted.'
Despite lingering uncertainties in the economic outlook for Singapore and the rest of the world, 'the domestic property market activity has taken on its own dynamic', MAS said in a special section in the report highlighting what it sees as the key risks to Singapore's financial system.
Other downside risks centre on the sustainability of the global economic recovery after governments start to withdraw their fiscal stimulus and tighten monetary policy, MAS said.
'Should growth turn out weaker than expected, property buyers and speculators could face capital losses as the market corrects. Conversely, if the recovery stays on course, interest rates will eventually rise and drive up financing costs with severe implications for those who have overextended themselves,' it said elsewhere in the report, commenting on the recent sharp rise in private home prices.
'While the market rebound may appear to be aligned with improved prospects for the domestic economy, the current low interest rate environment has also played a part by reducing the cost of property financing,' MAS said.
'If unchecked, this could lead to a rising spiral of demand and prices as more and more property buyers and speculators are drawn into the market, and expose the property market to the continuing risks in the global economy.'
The steep increase in property prices here in recent months has already prompted the government to act to discourage speculation.
In September, the government banned interest-only housing loans and the interest absorption scheme that allows developers to absorb interest payments for apartments that are still being built.
It also restarted the confirmed list of the Government Land Sales programme in the first half of next year to meet the strong demand for private homes.
Unlike sites listed on the reserve list, confirmed-list land sites are put up for sale at a pre-determined date, without the need for the sale to be triggered by an application from developers.
Last Friday, the National Development Ministry said that it would place eight residential sites on the confirmed list for the first six months of next year.
That definite increase in residential land for sale is expected to have a dampening effect on overall home prices.
'We would view the comments made by the MAS as more of a pre-emptive signal for now,' said Donald Chua, an equity analyst at CIMB here in a note to clients.
'A low interest rate environment coupled with strong property demand has led to fears of rising speculative activity.'
However, since the recent measures to discourage speculation were announced, 'the euphoria on property has clearly cooled down in recent months, which should lead to more normalised property demand', he added.
If the latest measures aren't effective in curbing home price increases quickly enough, the government's next step could be to reduce the limit on how much of a property's price may be financed with a bank loan, from 80-90 per cent now, Mr Chua said.
Banks' loan exposures to the property sector remain in line with historical trends, MAS said.
Its most recent aggregate bank lending data show that half of all Singapore-dollar bank loans at the end of September were to the broad property sector, with business loans to the building and construction sector making up 17.8 per cent of total bank lending, and consumer housing loans contributing another 31.6 per cent.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved
More action may be needed if recent property measures inadequate: MAS
Risk of speculation escalating as market expects low interest rates to persist
By CONRAD TAN
(SINGAPORE) Further action to cool the Singapore property market may be needed if recent measures to dampen speculation prove insufficient, the Monetary Authority of Singapore said yesterday.
Looking ahead, 'price levels and transaction activity bear close monitoring', MAS said in its yearly Financial Stability Review, published yesterday.
'As Singapore emerges from recession and with the market expecting low interest rates to persist for some time, the risk of a renewed escalation of speculative momentum cannot be discounted.'
Despite lingering uncertainties in the economic outlook for Singapore and the rest of the world, 'the domestic property market activity has taken on its own dynamic', MAS said in a special section in the report highlighting what it sees as the key risks to Singapore's financial system.
Other downside risks centre on the sustainability of the global economic recovery after governments start to withdraw their fiscal stimulus and tighten monetary policy, MAS said.
'Should growth turn out weaker than expected, property buyers and speculators could face capital losses as the market corrects. Conversely, if the recovery stays on course, interest rates will eventually rise and drive up financing costs with severe implications for those who have overextended themselves,' it said elsewhere in the report, commenting on the recent sharp rise in private home prices.
'While the market rebound may appear to be aligned with improved prospects for the domestic economy, the current low interest rate environment has also played a part by reducing the cost of property financing,' MAS said.
'If unchecked, this could lead to a rising spiral of demand and prices as more and more property buyers and speculators are drawn into the market, and expose the property market to the continuing risks in the global economy.'
The steep increase in property prices here in recent months has already prompted the government to act to discourage speculation.
In September, the government banned interest-only housing loans and the interest absorption scheme that allows developers to absorb interest payments for apartments that are still being built.
It also restarted the confirmed list of the Government Land Sales programme in the first half of next year to meet the strong demand for private homes.
Unlike sites listed on the reserve list, confirmed-list land sites are put up for sale at a pre-determined date, without the need for the sale to be triggered by an application from developers.
Last Friday, the National Development Ministry said that it would place eight residential sites on the confirmed list for the first six months of next year.
That definite increase in residential land for sale is expected to have a dampening effect on overall home prices.
'We would view the comments made by the MAS as more of a pre-emptive signal for now,' said Donald Chua, an equity analyst at CIMB here in a note to clients.
'A low interest rate environment coupled with strong property demand has led to fears of rising speculative activity.'
However, since the recent measures to discourage speculation were announced, 'the euphoria on property has clearly cooled down in recent months, which should lead to more normalised property demand', he added.
If the latest measures aren't effective in curbing home price increases quickly enough, the government's next step could be to reduce the limit on how much of a property's price may be financed with a bank loan, from 80-90 per cent now, Mr Chua said.
Banks' loan exposures to the property sector remain in line with historical trends, MAS said.
Its most recent aggregate bank lending data show that half of all Singapore-dollar bank loans at the end of September were to the broad property sector, with business loans to the building and construction sector making up 17.8 per cent of total bank lending, and consumer housing loans contributing another 31.6 per cent.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved
BT : nex mall to have roof garden dog run
Business Times - 10 Nov 2009
nex mall to have roof garden dog run
By KALPANA RASHIWALA
(SINGAPORE) nex, the mall which is being built next to Serangoon MRT Station, will have a dog run - the first in a shopping centre here.
The 2,000 sq ft run will be on the roof garden at the fourth level. 'We hope that with the introduction of a designated dog area at nex, perhaps we can attract a new group of regular mall visitors who are pet lovers,' says Tong Kok Wing, general manager of Guthrie Consultancy Services, which is providing project consultancy and marketing for nex.
The run has been set aside for dogs to exercise and play in an off-leash environment under the supervision of their owners. 'Under guidelines stipulated by the Agri-Food and Veterinary Authority (AVA), certain breeds of dogs must be muzzled and the same will apply here,' a Guthrie spokeswoman said.
To visit the dog run, dog owners and their pets will have to use designated lifts in the mall or escalators outside. Dogs will not be allowed in other parts of the mall.
A Pet Safari store will be on the same level as the dog park. The store, operated by Pet Lovers Centre - one of Singapore's largest pet food retailers - will occupy more than 5,000 sq ft in a double-storey unit. It will offer pet food, accessories, veterinary services and pets for sale.
So far, more than 70 per cent of retail space at nex has been committed. Anchor tenants include Challenger, rivals Fairprice Xtra and Cold Storage, Courts, Isetan, Shaw Cineplex, Food Republic and Food Junction. The mall is being developed at an estimated cost of $1.3 billion and is slated to be completed by end-2010.
Other places in Singapore where there are dog runs include West Coast Park, Bishan Park and Pasir Ris Farmway.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
For pet lovers: Dog owners and their pets will have to use designated lifts in the mall or escalators outside. Dogs will not be allowed in other parts of the mall
nex mall to have roof garden dog run
By KALPANA RASHIWALA
(SINGAPORE) nex, the mall which is being built next to Serangoon MRT Station, will have a dog run - the first in a shopping centre here.
The 2,000 sq ft run will be on the roof garden at the fourth level. 'We hope that with the introduction of a designated dog area at nex, perhaps we can attract a new group of regular mall visitors who are pet lovers,' says Tong Kok Wing, general manager of Guthrie Consultancy Services, which is providing project consultancy and marketing for nex.
The run has been set aside for dogs to exercise and play in an off-leash environment under the supervision of their owners. 'Under guidelines stipulated by the Agri-Food and Veterinary Authority (AVA), certain breeds of dogs must be muzzled and the same will apply here,' a Guthrie spokeswoman said.
To visit the dog run, dog owners and their pets will have to use designated lifts in the mall or escalators outside. Dogs will not be allowed in other parts of the mall.
A Pet Safari store will be on the same level as the dog park. The store, operated by Pet Lovers Centre - one of Singapore's largest pet food retailers - will occupy more than 5,000 sq ft in a double-storey unit. It will offer pet food, accessories, veterinary services and pets for sale.
So far, more than 70 per cent of retail space at nex has been committed. Anchor tenants include Challenger, rivals Fairprice Xtra and Cold Storage, Courts, Isetan, Shaw Cineplex, Food Republic and Food Junction. The mall is being developed at an estimated cost of $1.3 billion and is slated to be completed by end-2010.
Other places in Singapore where there are dog runs include West Coast Park, Bishan Park and Pasir Ris Farmway.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
For pet lovers: Dog owners and their pets will have to use designated lifts in the mall or escalators outside. Dogs will not be allowed in other parts of the mall
BT : Ho Bee, MCL sell 51 units at Parvis
Business Times - 10 Nov 2009
Ho Bee, MCL sell 51 units at Parvis
(SINGAPORE) Ho Bee Investment and MCL Land last week sold 51 units at their Parvis condo at Holland Hill at an average price of about $1,480 per square foot (psf).
Unlike the recent trend of smallest units in a project selling out first, what happened at Parvis was quite the reverse, with four-bedroom apartments accounting for the most number of units sold - 19. This was followed by two-bedders (15 units) and three-bedders (14 units).
MCL and Ho Bee even sold three penthouses in response to buyer interest, although these were not part of the initial batch of 85 units they released for the preview.
They are now proceeding to do an official launch of the project at the weekend, when they will release more units in the freehold condo, which has a total of 248 units. The 12-storey project is being built on the former Holland Hill Mansions site.
Ho Bee general manager Chong Hock Chang revealed that ex-owners of Holland Hill Mansions had picked up seven apartments.
Singaporeans bought 39 of the 51 units sold. Permanent residents and foreigners acquired the remaining 12 units; they were mostly Malaysians, with some Indonesians, Mr Chong added.
The three penthouses sold comprise two single-level units of 2,300 square feet each, with three bedrooms and costing about $3.3 million apiece, and a 2,800-sq-ft duplex unit with four bedrooms, priced at about $4.1 million. The duplex was picked up by a foreigner while Singaporeans bought the two single-level penthouses.
Last month, Ho Bee released the freehold Trilight condo on Newton Road. To date, it has sold 61 units in the 30-storey project at an average price of $1,650 psf.
Ho Bee, MCL sell 51 units at Parvis
(SINGAPORE) Ho Bee Investment and MCL Land last week sold 51 units at their Parvis condo at Holland Hill at an average price of about $1,480 per square foot (psf).
Unlike the recent trend of smallest units in a project selling out first, what happened at Parvis was quite the reverse, with four-bedroom apartments accounting for the most number of units sold - 19. This was followed by two-bedders (15 units) and three-bedders (14 units).
MCL and Ho Bee even sold three penthouses in response to buyer interest, although these were not part of the initial batch of 85 units they released for the preview.
They are now proceeding to do an official launch of the project at the weekend, when they will release more units in the freehold condo, which has a total of 248 units. The 12-storey project is being built on the former Holland Hill Mansions site.
Ho Bee general manager Chong Hock Chang revealed that ex-owners of Holland Hill Mansions had picked up seven apartments.
Singaporeans bought 39 of the 51 units sold. Permanent residents and foreigners acquired the remaining 12 units; they were mostly Malaysians, with some Indonesians, Mr Chong added.
The three penthouses sold comprise two single-level units of 2,300 square feet each, with three bedrooms and costing about $3.3 million apiece, and a 2,800-sq-ft duplex unit with four bedrooms, priced at about $4.1 million. The duplex was picked up by a foreigner while Singaporeans bought the two single-level penthouses.
Last month, Ho Bee released the freehold Trilight condo on Newton Road. To date, it has sold 61 units in the 30-storey project at an average price of $1,650 psf.
ST : Billionaire eyes islands beyond Singapore
Nov 9, 2009
Billionaire eyes islands beyond Singapore
By Amresh Gunasingham
HE ARRIVED in a whirlwind of publicity earlier this year and bought a $15.46 million penthouse at The Sail @ Marina Bay condominium.
Now, Indian billionaire Bhupendra Kumar Modi is setting his sights beyond Singapore.
He wants to spend US$100 million (S$140 million) to buy beach resorts in popular spots such as Bintan and Batam, and invest in at least four smaller islands which remain largely underdeveloped.
The privately owned islands with a combined land area of more than 300ha - or two-thirds the size of Sentosa - are north of Batam.
Dr Modi is the flamboyant founder-chairman of conglomerate Spice Group, which has interests ranging from telecommunications to entertainment. Speaking to The Straits Times at his 5,834 sq ft home, the Singapore permanent resident said he expects more than a 100 per cent return on his investments.
'I never realised until I came to this country that these islands were so big and so close,' said Dr Modi, 60, who moved here in May from the United States.
He also relocated the global headquarters of Mumbai-based Spice Corp to Singapore, and set aside US$200 million to invest through his office here. Already, well over US$100 million has been sunk into investments, from property and office space to acquiring a 20 per cent stake in online telephony firm MediaRing in August.
Now he is looking further afield. He plans to turn popular tourist spots such as the Pura Jaya resort in Batam into attractive havens for the rich and famous from Bollywood.
The carrot? Casinos and private villas with pools and spas. He also plans to build more and better houses, schools and hospitals on these islands.
Pura Jaya's owner, Indonesian businessman Zulkarnain Khadir, has confirmed that he is looking to sell the resort and is in discussions with Dr Modi as well as some other parties.
'For the last 12 years, these islands have lacked investment. There has been little change,' Dr Modi noted. He is understood to be in discussions with a number of banks as potential partners.
He feels developing the nearby islands offers an avenue to overcoming the challenge of land scarcity in Singapore: 'Looking at future development, we cannot continue doing what we have (here) for the last 50 years because it has reached a point of saturation. These islands could be examples of the future, that would also be commercially viable.'
Mr Michael Yong, a director of Kosmo Suria - the company that owns the group of islands just off Batam - said it was in early-stage discussions with Dr Modi: 'We have a meeting planned... to take these plans further. Our estimated target to start development is early next year.'
Dr Modi has also made his presence felt in other areas. He has pledged one of the largest single donations of $1.3 million to the Lee Kuan Yew School of Public Policy, which will fund scholarships and executive training programmes.
This contribution was recognised at the school's annual dinner in September, which was graced by Minister Mentor Lee Kuan Yew.
'I'm not here just to do business. I could do business anywhere. I'm here because I see a long-term future,' Dr Modi said.
Dr Modi wants to buy resorts in popular spots like Bintan and Batam and invest in at least four smaller islands. -- PHOTO: BHUPENDRA KUMAR MODI
Billionaire eyes islands beyond Singapore
By Amresh Gunasingham
HE ARRIVED in a whirlwind of publicity earlier this year and bought a $15.46 million penthouse at The Sail @ Marina Bay condominium.
Now, Indian billionaire Bhupendra Kumar Modi is setting his sights beyond Singapore.
He wants to spend US$100 million (S$140 million) to buy beach resorts in popular spots such as Bintan and Batam, and invest in at least four smaller islands which remain largely underdeveloped.
The privately owned islands with a combined land area of more than 300ha - or two-thirds the size of Sentosa - are north of Batam.
Dr Modi is the flamboyant founder-chairman of conglomerate Spice Group, which has interests ranging from telecommunications to entertainment. Speaking to The Straits Times at his 5,834 sq ft home, the Singapore permanent resident said he expects more than a 100 per cent return on his investments.
'I never realised until I came to this country that these islands were so big and so close,' said Dr Modi, 60, who moved here in May from the United States.
He also relocated the global headquarters of Mumbai-based Spice Corp to Singapore, and set aside US$200 million to invest through his office here. Already, well over US$100 million has been sunk into investments, from property and office space to acquiring a 20 per cent stake in online telephony firm MediaRing in August.
Now he is looking further afield. He plans to turn popular tourist spots such as the Pura Jaya resort in Batam into attractive havens for the rich and famous from Bollywood.
The carrot? Casinos and private villas with pools and spas. He also plans to build more and better houses, schools and hospitals on these islands.
Pura Jaya's owner, Indonesian businessman Zulkarnain Khadir, has confirmed that he is looking to sell the resort and is in discussions with Dr Modi as well as some other parties.
'For the last 12 years, these islands have lacked investment. There has been little change,' Dr Modi noted. He is understood to be in discussions with a number of banks as potential partners.
He feels developing the nearby islands offers an avenue to overcoming the challenge of land scarcity in Singapore: 'Looking at future development, we cannot continue doing what we have (here) for the last 50 years because it has reached a point of saturation. These islands could be examples of the future, that would also be commercially viable.'
Mr Michael Yong, a director of Kosmo Suria - the company that owns the group of islands just off Batam - said it was in early-stage discussions with Dr Modi: 'We have a meeting planned... to take these plans further. Our estimated target to start development is early next year.'
Dr Modi has also made his presence felt in other areas. He has pledged one of the largest single donations of $1.3 million to the Lee Kuan Yew School of Public Policy, which will fund scholarships and executive training programmes.
This contribution was recognised at the school's annual dinner in September, which was graced by Minister Mentor Lee Kuan Yew.
'I'm not here just to do business. I could do business anywhere. I'm here because I see a long-term future,' Dr Modi said.
Dr Modi wants to buy resorts in popular spots like Bintan and Batam and invest in at least four smaller islands. -- PHOTO: BHUPENDRA KUMAR MODI
ST : Katong Mall changing hands at $248m
Nov 10, 2009
Katong Mall changing hands at $248m
It will get $55m revamp to become lifestyle, F&B hub
By Joyce Teo
A FORMER CapitaLand executive has stitched together a $247.55 million deal to snap up Katong Mall.
Mr Pua Seck Guan (second picture) set up a private trust called Perennial Katong Retail Trust to buy the mall from Tuan Sing Holdings' Golden Cape Investment. The investors are no more than six parties, including corporate and institutional investors and Mr Pua.
The seven-storey centre, in a fairly affluent neighbourhood at the junction of East Coast and Joo Chiat roads, will undergo a $55 million revamp lasting 12 to 15 months.
This will transform it into a lifestyle and food and beverage hub, said Mr Pua, who was chief executive of CapitaLand Retail before stepping down a year ago.
Tuan Sing bought the mall en bloc for $219 million last July.
Mr Pua said this deal started about three weeks ago when 'some one approached me'.
'After pumping in the upgrading cost, the returns can be attractive,' he said, adding that the expected net property yield after completion will be about 6 per cent to 8 per cent.
Its gross floor area will be relatively unchanged at 282,000 sq ft after redevelopment works.
But its net lettable area will rise from 172,170 sq ft to over 206,000 sq ft, said a statement from Perennial Real Estate.
The revamp will add 99 more carpark spaces to make a total of 278. These will be on basements two and three. About 30,000 sq ft of retail space on basement two will then be relocated to more prime areas on the upper floors as well as a newly created fifth floor - now the rooftop.
A cinema will occupy the top floor, while anchor tenants will include a food court and gourmet supermarket, said the statement.
BreakTalk has expressed interest in leasing space at the mall.
Mr Pua is the founder and CEO of Perennial Real Estate but still heads the international operations at Indian real estate giant DLF, which he joined after leaving CapitaLand.
Apart from asset management, he is looking to put together a fund at DLF as well a real estate investment trust for the firm's India assets. He said the DLF job 'allows him to be more entrepreneurial'.
More plans are in the pipeline for Perennial, formed to engage in real estate activities, including fund and asset management and retail management in Singapore, India and China, he said.
The Katong Mall transaction is expected to be completed by the end of January. The mall is likely to close around the middle of next year for renovation works.
Katong Mall changing hands at $248m
It will get $55m revamp to become lifestyle, F&B hub
By Joyce Teo
A FORMER CapitaLand executive has stitched together a $247.55 million deal to snap up Katong Mall.
Mr Pua Seck Guan (second picture) set up a private trust called Perennial Katong Retail Trust to buy the mall from Tuan Sing Holdings' Golden Cape Investment. The investors are no more than six parties, including corporate and institutional investors and Mr Pua.
The seven-storey centre, in a fairly affluent neighbourhood at the junction of East Coast and Joo Chiat roads, will undergo a $55 million revamp lasting 12 to 15 months.
This will transform it into a lifestyle and food and beverage hub, said Mr Pua, who was chief executive of CapitaLand Retail before stepping down a year ago.
Tuan Sing bought the mall en bloc for $219 million last July.
Mr Pua said this deal started about three weeks ago when 'some one approached me'.
'After pumping in the upgrading cost, the returns can be attractive,' he said, adding that the expected net property yield after completion will be about 6 per cent to 8 per cent.
Its gross floor area will be relatively unchanged at 282,000 sq ft after redevelopment works.
But its net lettable area will rise from 172,170 sq ft to over 206,000 sq ft, said a statement from Perennial Real Estate.
The revamp will add 99 more carpark spaces to make a total of 278. These will be on basements two and three. About 30,000 sq ft of retail space on basement two will then be relocated to more prime areas on the upper floors as well as a newly created fifth floor - now the rooftop.
A cinema will occupy the top floor, while anchor tenants will include a food court and gourmet supermarket, said the statement.
BreakTalk has expressed interest in leasing space at the mall.
Mr Pua is the founder and CEO of Perennial Real Estate but still heads the international operations at Indian real estate giant DLF, which he joined after leaving CapitaLand.
Apart from asset management, he is looking to put together a fund at DLF as well a real estate investment trust for the firm's India assets. He said the DLF job 'allows him to be more entrepreneurial'.
More plans are in the pipeline for Perennial, formed to engage in real estate activities, including fund and asset management and retail management in Singapore, India and China, he said.
The Katong Mall transaction is expected to be completed by the end of January. The mall is likely to close around the middle of next year for renovation works.
ST : New flats for Bukit Merah View residents
Nov 9, 2009
New flats for Bukit Merah View residents
300 families can pick Sers replacement flats in nearby Tiong Bahru
By Jennani Durai
FAMILIES in about 300 flats in Bukit Merah View will be offered new homes in nearby Tiong Bahru as their old blocks are slated for redevelopment.
The homeowners can choose from 700 units of new flats ranging from studio to 5-roomers in the Boon Tiong Road area that will be built by the Housing Board.
The 36-year-old flats in Blocks 110, 111, 113 and 114 will be torn down, to be replaced by 700 units, under the Selective En-bloc Redevelopment Scheme (Sers).
News of the move was announced yesterday by the ward's MP, Ms Indranee Rajah, who was making good on her earlier promise to the constituents.
She gave the news at Tanjong Pagar GRC's Tree Planting Day, at which Minister Mentor Lee Kuan Yew was the guest of honour.
The Bukit Merah move brings to 73 the total number of sites identified for Sers since August 1995.
The area's residents had expressed disappointment at being passed over for upgrading when Ms Indranee became MP for Tanglin-Cairnhill in 2001.
'I promised them that I would look into it and since that time I have had an ongoing dialogue with the HDB over the residents' concerns.'
She found from her walkabouts and a survey of the residents that most preferred Sers over upgrading.
Ms Linda Cheang, 44, who lives on the third floor of Block 114, said: 'We told Ms Indranee twice... that we wished to have the en-bloc scheme. She said some of the other residents wanted upgrading. We said we don't want that as the flats are too old...'
Sers involves redeveloping old blocks of flats and rehousing residents in new and better flats nearby.
The homeowners will be compensated according to current market value, said Ms Indranee. In turn, they can buy the replacement flats at subsidised prices. Each owner will be informed by the HDB of his compensation amount, she added.
Ms Indranee noted that the replacement flats will be at a prime location, near Tiong Bahru Plaza and an MRT station. In addition, some shops and an eating house will be built.
The news came as a relief to many residents who had been waiting a long time for improvement work on their blocks.
'When we heard a few years ago the blocks opposite ours were going en-bloc, I felt disappointed as I had almost bought a flat there. Now, I'm glad these flats will finally go en-bloc,' said food-seller K.W. Teo, who lives in Block 110.
Ms Cheang agreed: 'I am very happy.'
The homeowners may register for their replacement flat in the third quarter of next year, said an HDB statement.
The HDB will also hold an exhibition from Nov 12-18 near Block 114 for residents to find out more about Sers.
Construction of the replacement flats will begin in early 2011 and is expected to be completed by mid-2014.
But Block 116 will not be torn down. The four-storey block was considered for Sers, said the MP. But a study of the area found that it, along with Block 115, which houses the market and hawker centre, formed 'an integral focus point of the community at the neighbourhood centre'.
'If Block 116 was...torn down, it would be like ripping away part of the heart of the community,' said Ms Indranee.
But she assured the residents that she will seek HDB's approval for the block to be considered for the Lift Upgrading Programme. 'Again, this promise is not made lightly. I am very conscious that there are many elderly people in Block 116 who would benefit greatly from having lifts. So I will do my best for Block 116.
'You will not be left out.'
New flats for Bukit Merah View residents
300 families can pick Sers replacement flats in nearby Tiong Bahru
By Jennani Durai
FAMILIES in about 300 flats in Bukit Merah View will be offered new homes in nearby Tiong Bahru as their old blocks are slated for redevelopment.
The homeowners can choose from 700 units of new flats ranging from studio to 5-roomers in the Boon Tiong Road area that will be built by the Housing Board.
The 36-year-old flats in Blocks 110, 111, 113 and 114 will be torn down, to be replaced by 700 units, under the Selective En-bloc Redevelopment Scheme (Sers).
News of the move was announced yesterday by the ward's MP, Ms Indranee Rajah, who was making good on her earlier promise to the constituents.
She gave the news at Tanjong Pagar GRC's Tree Planting Day, at which Minister Mentor Lee Kuan Yew was the guest of honour.
The Bukit Merah move brings to 73 the total number of sites identified for Sers since August 1995.
The area's residents had expressed disappointment at being passed over for upgrading when Ms Indranee became MP for Tanglin-Cairnhill in 2001.
'I promised them that I would look into it and since that time I have had an ongoing dialogue with the HDB over the residents' concerns.'
She found from her walkabouts and a survey of the residents that most preferred Sers over upgrading.
Ms Linda Cheang, 44, who lives on the third floor of Block 114, said: 'We told Ms Indranee twice... that we wished to have the en-bloc scheme. She said some of the other residents wanted upgrading. We said we don't want that as the flats are too old...'
Sers involves redeveloping old blocks of flats and rehousing residents in new and better flats nearby.
The homeowners will be compensated according to current market value, said Ms Indranee. In turn, they can buy the replacement flats at subsidised prices. Each owner will be informed by the HDB of his compensation amount, she added.
Ms Indranee noted that the replacement flats will be at a prime location, near Tiong Bahru Plaza and an MRT station. In addition, some shops and an eating house will be built.
The news came as a relief to many residents who had been waiting a long time for improvement work on their blocks.
'When we heard a few years ago the blocks opposite ours were going en-bloc, I felt disappointed as I had almost bought a flat there. Now, I'm glad these flats will finally go en-bloc,' said food-seller K.W. Teo, who lives in Block 110.
Ms Cheang agreed: 'I am very happy.'
The homeowners may register for their replacement flat in the third quarter of next year, said an HDB statement.
The HDB will also hold an exhibition from Nov 12-18 near Block 114 for residents to find out more about Sers.
Construction of the replacement flats will begin in early 2011 and is expected to be completed by mid-2014.
But Block 116 will not be torn down. The four-storey block was considered for Sers, said the MP. But a study of the area found that it, along with Block 115, which houses the market and hawker centre, formed 'an integral focus point of the community at the neighbourhood centre'.
'If Block 116 was...torn down, it would be like ripping away part of the heart of the community,' said Ms Indranee.
But she assured the residents that she will seek HDB's approval for the block to be considered for the Lift Upgrading Programme. 'Again, this promise is not made lightly. I am very conscious that there are many elderly people in Block 116 who would benefit greatly from having lifts. So I will do my best for Block 116.
'You will not be left out.'
ST : MAS flags two risks to property buyers
Nov 10, 2009
MAS flags two risks to property buyers
Danger of loss in a weak economy or interest rate burden in a buoyant one
By Gabriel Chen
HOME buyers are being advised to pause a moment before leaping into the purchase of that dream apartment.
The Monetary Authority of Singapore (MAS) yesterday cited two scenarios in which the resurgent private property sector may not stay quite so rosy.
The central bank also flagged possible fresh measures to cool the sector, on top of last week's government announcement that plenty of mass market condominium sites will be released next year.
The first scenario MAS outlined is that if economic growth proves to be weaker than expected, property buyers - including speculators - could suffer losses as the market corrects and home prices fall.
Second, even if the economic recovery stays on course, property buyers could suffer a hit of a different kind in the longer term, the central bank warned.
In a rebounding economy, it is more likely that interest rates - now at rock bottom levels - will eventually rise, and this will drive up monthly instalments on home loans that are not fixed.
This could have severe implications for buyers who have over-extended themselves with big home loans, believing interest rates will always stay low.
The MAS issued the words of caution in its annual Financial Stability Review released yesterday, even as it acknowledged a strong rebound of the economy.
It said households here have weathered the crisis relatively well, owing to their sound money management. Banks are not weighed down by risky loans.
However, MAS said that with the market expecting interest rates to stay low for some time, more buyers, including speculators, may be drawn to the market, driving up demand and prices.
Given the risks, MAS said prices and sales needed to be monitored closely.
It outlined earlier government market cooling steps, adding: 'The nature and timing of further measures, if deemed necessary, would have to be balanced against the still-uncertain path of economic recovery.'
According to Urban Redevelopment Authority data, private home prices surged 15.8 per cent in the third quarter - the sharpest quarterly rise in 28 years.
Volume has been strong with 12,969 homes sold in the first nine months of the year. Experts expect full-year sales to exceed the 2007 new home sales record of 14,811 units.
The MAS warning comes as a growing number of Asian nations, such as Hong Kong and South Korea, step up efforts to rein in property buying, for fear of a home prices bubble.
In September, Singapore, for its part, announced a slew of measures to cool the market, including the withdrawal of the interest absorption scheme that allowed home buyers to defer payments.
Details of mass market land sites to be offered to developers in the first half of next year were unveiled last week.
These steps have had some effect already - with the number of home sales falling in the last two months. A key indicator of speculative activity, sub-sales - when uncompleted homes are bought and resold before being built - are also down.
MAS pointed to encouraging signs on banks' property exposure. More than 70 per cent of housing loans are for owner-occupied residential properties, which suggests a lower risk profile, it said.
One trend MAS noted: the share of total loans where the value of the outstanding loan is above 80 per cent of the property's value has surged from 8 per cent last December to 17 per cent in September this year. However, dreaded negative equity, where a home loan exceeds the value of the home, remains very low at less than 3 per cent of loans.
In any case, banks' checks include the person's debt-servicing ability. Said Standard Chartered Singapore's general manager for retail banking products, Mr Dennis Khoo: 'You should not have more than $1 for every $2 that you earn going into overall debt servicing.'
MAS flags two risks to property buyers
Danger of loss in a weak economy or interest rate burden in a buoyant one
By Gabriel Chen
HOME buyers are being advised to pause a moment before leaping into the purchase of that dream apartment.
The Monetary Authority of Singapore (MAS) yesterday cited two scenarios in which the resurgent private property sector may not stay quite so rosy.
The central bank also flagged possible fresh measures to cool the sector, on top of last week's government announcement that plenty of mass market condominium sites will be released next year.
The first scenario MAS outlined is that if economic growth proves to be weaker than expected, property buyers - including speculators - could suffer losses as the market corrects and home prices fall.
Second, even if the economic recovery stays on course, property buyers could suffer a hit of a different kind in the longer term, the central bank warned.
In a rebounding economy, it is more likely that interest rates - now at rock bottom levels - will eventually rise, and this will drive up monthly instalments on home loans that are not fixed.
This could have severe implications for buyers who have over-extended themselves with big home loans, believing interest rates will always stay low.
The MAS issued the words of caution in its annual Financial Stability Review released yesterday, even as it acknowledged a strong rebound of the economy.
It said households here have weathered the crisis relatively well, owing to their sound money management. Banks are not weighed down by risky loans.
However, MAS said that with the market expecting interest rates to stay low for some time, more buyers, including speculators, may be drawn to the market, driving up demand and prices.
Given the risks, MAS said prices and sales needed to be monitored closely.
It outlined earlier government market cooling steps, adding: 'The nature and timing of further measures, if deemed necessary, would have to be balanced against the still-uncertain path of economic recovery.'
According to Urban Redevelopment Authority data, private home prices surged 15.8 per cent in the third quarter - the sharpest quarterly rise in 28 years.
Volume has been strong with 12,969 homes sold in the first nine months of the year. Experts expect full-year sales to exceed the 2007 new home sales record of 14,811 units.
The MAS warning comes as a growing number of Asian nations, such as Hong Kong and South Korea, step up efforts to rein in property buying, for fear of a home prices bubble.
In September, Singapore, for its part, announced a slew of measures to cool the market, including the withdrawal of the interest absorption scheme that allowed home buyers to defer payments.
Details of mass market land sites to be offered to developers in the first half of next year were unveiled last week.
These steps have had some effect already - with the number of home sales falling in the last two months. A key indicator of speculative activity, sub-sales - when uncompleted homes are bought and resold before being built - are also down.
MAS pointed to encouraging signs on banks' property exposure. More than 70 per cent of housing loans are for owner-occupied residential properties, which suggests a lower risk profile, it said.
One trend MAS noted: the share of total loans where the value of the outstanding loan is above 80 per cent of the property's value has surged from 8 per cent last December to 17 per cent in September this year. However, dreaded negative equity, where a home loan exceeds the value of the home, remains very low at less than 3 per cent of loans.
In any case, banks' checks include the person's debt-servicing ability. Said Standard Chartered Singapore's general manager for retail banking products, Mr Dennis Khoo: 'You should not have more than $1 for every $2 that you earn going into overall debt servicing.'
'More curbs if needed'
Today :
Analysts mull options like lower loan caps, capital gains tax
by Esther Fung 05:55 AM Nov 10, 2009
SINGAPORE - More state land has been set aside for homes and mortgage financing schemes have been tightened - but still, the Government is keeping a watchful eye and may do more to temper sentiment in the property market if need be.
In its annual Financial Stability Review released yesterday, the Monetary Authority of Singapore (MAS) said: "As Singapore emerges from recession, and with the market expecting low interest rates to persist for some time, the risk of a renewed escalation of speculative momentum cannot be discounted."
"More measures might then be necessary," though their nature and timing "would have to be balanced against the still uncertain path of economic recovery", added the regulator.
Given the special note made of loan interest rates - and property analyst Colin Tan's belief that excess liquidity is the cause of the exuberance - should Singapore take a leaf from Hong Kong, which plans to lower mortgage caps for luxury property to 60 per cent, from 70 per cent?
Observers note that the froth here is in the mass-market projects rather than the luxury segment - but still, the principle could be adopted.
Policy-makers could impose a lower loan quantum for home purchases, forcing buyers to fork out more cash up front. Since 2005, buyers have been able to borrow up to 90 per cent of a property's value (though most take up to 80 per cent as it is more costly to borrow above this level).
"Right now, the greater concern is to reduce the lending to the property sector," said Mr Tan, head of consultancy and research at Chesterton Suntec International.
Another option is to reinstate the capital gains tax, which was part of the 1996 anti-speculation package. Some observers felt it would not be effective, as there is not as much "flipping" activity now compared to 13 years ago.
Indeed, sub-sale transactions - where a buyer of a new home sells it before it is built - averaged just 11 per cent of all transactions in the second and third quarters, below the peaks seen in 1996 to 1997, said MAS, but "close to the 13 per cent average" in 2007 and 2008.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said: "Reviving the capital gains tax is quite a hard-handed move, and this could impair Singapore's attractiveness to foreign investors."
Introducing stamp duties of which home sellers would have to pay a portion could be another option. Currently, only buyers pay stamp duty, about 3 per cent of the property price. But this is a blunt tool, as it also hurts genuine demand, noted Mr Mak.
The Government would have to implement more calibrated measures to target giddy investors, yet ensure they do not stub out the nascent economic recovery, most analysts said.
Associate Professor Annie Koh, dean of executive and professional education at the Singapore Management University, said: "To come up with a tight policy right now might kill the goose that lays the golden egg. Central bankers would be watching how much of the real sector is actually recovering, before they do anything drastic."
In September, the Government banned the Interest Absorption Scheme and interest-only loans. It is also reinstating its land sales confirmed list, identifying eight sites for the first half of 2010.
Analysts mull options like lower loan caps, capital gains tax
by Esther Fung 05:55 AM Nov 10, 2009
SINGAPORE - More state land has been set aside for homes and mortgage financing schemes have been tightened - but still, the Government is keeping a watchful eye and may do more to temper sentiment in the property market if need be.
In its annual Financial Stability Review released yesterday, the Monetary Authority of Singapore (MAS) said: "As Singapore emerges from recession, and with the market expecting low interest rates to persist for some time, the risk of a renewed escalation of speculative momentum cannot be discounted."
"More measures might then be necessary," though their nature and timing "would have to be balanced against the still uncertain path of economic recovery", added the regulator.
Given the special note made of loan interest rates - and property analyst Colin Tan's belief that excess liquidity is the cause of the exuberance - should Singapore take a leaf from Hong Kong, which plans to lower mortgage caps for luxury property to 60 per cent, from 70 per cent?
Observers note that the froth here is in the mass-market projects rather than the luxury segment - but still, the principle could be adopted.
Policy-makers could impose a lower loan quantum for home purchases, forcing buyers to fork out more cash up front. Since 2005, buyers have been able to borrow up to 90 per cent of a property's value (though most take up to 80 per cent as it is more costly to borrow above this level).
"Right now, the greater concern is to reduce the lending to the property sector," said Mr Tan, head of consultancy and research at Chesterton Suntec International.
Another option is to reinstate the capital gains tax, which was part of the 1996 anti-speculation package. Some observers felt it would not be effective, as there is not as much "flipping" activity now compared to 13 years ago.
Indeed, sub-sale transactions - where a buyer of a new home sells it before it is built - averaged just 11 per cent of all transactions in the second and third quarters, below the peaks seen in 1996 to 1997, said MAS, but "close to the 13 per cent average" in 2007 and 2008.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said: "Reviving the capital gains tax is quite a hard-handed move, and this could impair Singapore's attractiveness to foreign investors."
Introducing stamp duties of which home sellers would have to pay a portion could be another option. Currently, only buyers pay stamp duty, about 3 per cent of the property price. But this is a blunt tool, as it also hurts genuine demand, noted Mr Mak.
The Government would have to implement more calibrated measures to target giddy investors, yet ensure they do not stub out the nascent economic recovery, most analysts said.
Associate Professor Annie Koh, dean of executive and professional education at the Singapore Management University, said: "To come up with a tight policy right now might kill the goose that lays the golden egg. Central bankers would be watching how much of the real sector is actually recovering, before they do anything drastic."
In September, the Government banned the Interest Absorption Scheme and interest-only loans. It is also reinstating its land sales confirmed list, identifying eight sites for the first half of 2010.
Monday, November 9, 2009
HDB: Divorcee should be able to get loan
Nov 8, 2009
YOUR LETTERS
HDB: Divorcee should be able to get loan
We refer to the letter from Ms Norliah Abu, 'Divorced and can't afford a flat' (Oct11).
We have looked into Ms Norliah's circumstances. She has enjoyed housing subsidies in the form of a Central Provident Fund (CPF) housing grant and HDB concessionary loan. She transferred her executive flat to her ex-husband in December 2007.
Based on her CPF savings and her monthly salary, she should be able to obtain a bank loan to purchase a flat.
Ms Norliah and her two children are currently living with her brother. She has applied for a four-room flat in Jurong West under our Sale of Balance Flats exercise.
The average purchase price of a four-room flat in Jurong West is about $260,500.
Based on the Housing Board's preliminary assessment, she will need a bank loan of about $140,000 for the intended flat purchase. She can pay her monthly instalments solely using her monthly CPF contributions.
She can also consider buying a more affordable flat to minimise her loan.
Ms Norliah is not eligible to apply for a subsidised rental flat, as it is meant for the needy who have no other housing options.
If she is unable to obtain a bank loan, she may contact the HDB on 6490-3827 for assistance.
Tay Koon Quie
Deputy Director (Sales)
Housing & Development Board
YOUR LETTERS
HDB: Divorcee should be able to get loan
We refer to the letter from Ms Norliah Abu, 'Divorced and can't afford a flat' (Oct11).
We have looked into Ms Norliah's circumstances. She has enjoyed housing subsidies in the form of a Central Provident Fund (CPF) housing grant and HDB concessionary loan. She transferred her executive flat to her ex-husband in December 2007.
Based on her CPF savings and her monthly salary, she should be able to obtain a bank loan to purchase a flat.
Ms Norliah and her two children are currently living with her brother. She has applied for a four-room flat in Jurong West under our Sale of Balance Flats exercise.
The average purchase price of a four-room flat in Jurong West is about $260,500.
Based on the Housing Board's preliminary assessment, she will need a bank loan of about $140,000 for the intended flat purchase. She can pay her monthly instalments solely using her monthly CPF contributions.
She can also consider buying a more affordable flat to minimise her loan.
Ms Norliah is not eligible to apply for a subsidised rental flat, as it is meant for the needy who have no other housing options.
If she is unable to obtain a bank loan, she may contact the HDB on 6490-3827 for assistance.
Tay Koon Quie
Deputy Director (Sales)
Housing & Development Board
Tiny flats a good buy?
(Abstract from The Straits Times 8th Nov, 2009)
First, there were the 'mickey mouse' apartments of 500 sq ft or smaller. In Suites@Guillemard. for example, there are units as small as 258 sqft, which is the size of 21/2 carpark spaces. Now penthouses in several developments to be launched have shrunk too, to less than 1,000 sqft. In Kembangan Suites, there are shrunken penthouses as small as 635 sq ft, about the size of an average three-room Housing Board flat.
The trend of 'mickey mouse' flats took off last year. Nearly 500 of them have been bought this year, up from 299 last year and 275 in 2007. Driving the sales is affordability. Amid rising prices, a 350 sq ft one-bedder going for less than $400,000 can be alluring.
Industry people are divided over how viable these small flats are. One of them assumed that most buyers are investors. The problem? They may have difficulty leasing them out long-term, so they may have to settle for monthly, weekly or even hourly renting. Some investment! Another property specialist says it is hard to imagine anyone living comfortably in a 300 sq ft apartment, but lifestyles evolve and tiny spaces in the heart of town could appeal to singles.
The Sunday Times is amused by the trend. We hope it is a passing fad. Buyers should not be so desperate to own private property that they will plonk down good money for what is most affordable without regard for acceptable living space. It would be too late to regret their purchase if they discover that the tight squeeze is just unliveable.
Also, why do such buyers not consider HDB flats? They are larger and much cheaper. The landscaped grounds and living environment are comparable to those of a mid-range condominium. If they are singles, which is likely the case, they can buy resale HDB flats. They can easily get a four-room or even five-room unit for $400,000.
Ultimately, it is their decision. Good luck, we say.
First, there were the 'mickey mouse' apartments of 500 sq ft or smaller. In Suites@Guillemard. for example, there are units as small as 258 sqft, which is the size of 21/2 carpark spaces. Now penthouses in several developments to be launched have shrunk too, to less than 1,000 sqft. In Kembangan Suites, there are shrunken penthouses as small as 635 sq ft, about the size of an average three-room Housing Board flat.
The trend of 'mickey mouse' flats took off last year. Nearly 500 of them have been bought this year, up from 299 last year and 275 in 2007. Driving the sales is affordability. Amid rising prices, a 350 sq ft one-bedder going for less than $400,000 can be alluring.
Industry people are divided over how viable these small flats are. One of them assumed that most buyers are investors. The problem? They may have difficulty leasing them out long-term, so they may have to settle for monthly, weekly or even hourly renting. Some investment! Another property specialist says it is hard to imagine anyone living comfortably in a 300 sq ft apartment, but lifestyles evolve and tiny spaces in the heart of town could appeal to singles.
The Sunday Times is amused by the trend. We hope it is a passing fad. Buyers should not be so desperate to own private property that they will plonk down good money for what is most affordable without regard for acceptable living space. It would be too late to regret their purchase if they discover that the tight squeeze is just unliveable.
Also, why do such buyers not consider HDB flats? They are larger and much cheaper. The landscaped grounds and living environment are comparable to those of a mid-range condominium. If they are singles, which is likely the case, they can buy resale HDB flats. They can easily get a four-room or even five-room unit for $400,000.
Ultimately, it is their decision. Good luck, we say.
Career switch pays off
Property agent earns more and has more time to spend with her little daughter
(Abstract from The Straits Times 8th Nov, 2009 by Lorna Tan)
Wishing to spend more time with her two-year-old daughter, Ms Faith Teo left her advertising and marketing managerial post at financial magazine The Edge to become a property agent in July.
So far, her decision to join RealStar Premier Property Consultant as an associate sales manager has proven to be financially rewarding. Not only did she earn the title of 'top rookie' in the third quarter of this year, but her income has gone up as well.
'I'm earning more than before. In the first three months at RealStar, I already earned what I would previously earn in a year, which was $70,000," said Ms Teo, 34.
Her biggest property transaction to date was a 3,000 sq ft bungalow in Bukit Timah, on a land area of 12,000 sq ft, which she marketed for $10.6 million together with another agent. It was a co-broke deal and Ms Teo pocketed $25,000 in commission.
Armed with a chemical processing diploma from Singapore Polytechnic in 1995, Ms Teo worked in the advertising sales departments of a few media and print firms for several years.
She studied part-time while working and graduated with a business administration degree (marketing) awarded by La Trobe University, Melbourne, in 2000. Prior to The Edge, where she worked for three years, she was a senior advertising manager at CR Media.
When it comes to financial planning, she and her husband, Mr Allan Chin, 36, a director in a global risk management firm, share an investment portfolio comprising stocks and cash. They have a daughter, Anya.
Q: Are you a spender or saver?
I save 25 per cent of my income, which goes into investments. Another 25 per cent goes to family expenses and parents' allowances, and the balance 50 per cent is channelled into charitable causes which include the Salvation Army, National Kidney Foundation and World Vision.
Q: How much do you charge to your credit cards every month?
I usually use two out of my six credit cards, which are all supplementary cards from my husband. On average, I charge less than $500 a month on my cards. We pay our card bills in full every month. I draw only about $200 a month from the ATM as I usually use my credit cards.
Q: What financial planning have you done for yourself?
I have a whole life cover, three endowment plans, a hospitalisation policy and several investment- linked policies.
Allan manages our combined investment portfolio. We have a five- to 10-year investment horizon and our target returns are between 5 and 10 per cent per annum. Our current portfolio is about 70 per cent in cash and 30 per cent in blue-chip equities like CapitaLand and real estate investment trusts (Reits) like CMT, StarHill and Suntec Reit. The latter includes my personal investment of about $50,000 in stocks. Separately, I invested $20,000 of my Central Provident Fund savings in investment-linked insurance plans. The funds are mainly in emerging markets and India.
We favour more cash and liquidity for rainy days. We track our family balance sheet's 'quick ratio' (derived from current assets divided by current liabilities) carefully such that we have sufficient emergency cash to last us for at least 11/2 to two years.
Q: Moneywise, what were your growing up years like?
I grew up living with my parents and younger sister in a four-room HDB flat in Jalan Rajah. Life was simple. My father helped to run my paternal family's provision stall in Balestier and delivered gas cylinders, while my mum sewed clothes at home to supplement the family income.
My mum has always been the prudent one who taught us about the importance of savings and self-reliance, and educated us about the dangers of borrowing money and being in debt to other people and banks. She is the one who saved for our family needs. I also learnt from my dad when I helped out at the provision stall. Be hard-working and honest in your work and money will come.
Q: How did you get interested in investing?
Until I started reading financial books, my knowledge of financial planning was very simple. I was scrimping on what I made and saving very hard...a painfully slow process. Later, I read interesting books like Robert Kiyosaki's Rich Dad Poor Dad and Don't Go To School, which made me ponder on the importance of financial planning. I even attended a two-hour talk by the man himself here in 2001. I also read books by Warren Buffett and Jack D. Schwager.
Last year, I attended some seminars on exchange traded funds and online trading.
Q: What property do you own?
We own a 1,248 sq ft, four-room HDB flat in Bukit Batok. It is our matrimonial home which we bought in 1998 for $276,000. Back then, my husband had just started working as a bank management trainee after his graduation.
Q: What's the most extravagant thing you have bought?
I think my most extravagant purchase was the four Furla bags I bought for a total of $1,400 during a clearance sale last year. I've no regrets as they are of good quality and design and will last me a long time. One is a cream document bag and the other three are handbags of different colours.
Q: What's your retirement plan?
About $6,000 a month in present value will be sufficient for both of us to live very comfortably in our golden years. I plan to continue as a real estate professional for as long as I can work. We hope to be financially independent by our 40s and spend more time with Anya and our loved ones. My belief has always been 'Do your best and God will do the rest'.
We expect our passive income flow to come from Reits and rentals from our future investment properties.
Q: I drive?
A red Toyota Wish.
lorna@sph.com.sg
Lessons from mum and dad
'My mum has always been the prudent one who taught us about the importance of savings and self-reliance, and educated us about the dangers of borrowing money and being in debt to other people and banks. She is the one who saved for our family needs. I also learnt from my dad when I helped out at the provision stall. Be hard-working and honest in your work and money will come.'
MS FAITH TEO, on what she learnt during her growing up years
--------------------------------------------------------------------------------
WORST AND BEST BETS
Q: What has been your worst investment to date?
In October 2007, I invested $10,000 in Singapore-listed stock China Oilfield purely out of hearsay and without diligent research.
I bought 10 lots at the initial public offering price of $1 per share.
I'm still invested in the stock and my paper losses amount to $8,350.
Q: And your best investment?
My best investments have been in love, family and friendship, which have delivered great upside beyond the financial dimension. My investments in blue-chip equities like CapitaLand, and local Reits like CapitaMall Trust have been good. From 2007 to now, I have invested about $50,000. Expected returns are about 4 per cent to 5per cent per annum.
(Abstract from The Straits Times 8th Nov, 2009 by Lorna Tan)
Wishing to spend more time with her two-year-old daughter, Ms Faith Teo left her advertising and marketing managerial post at financial magazine The Edge to become a property agent in July.
So far, her decision to join RealStar Premier Property Consultant as an associate sales manager has proven to be financially rewarding. Not only did she earn the title of 'top rookie' in the third quarter of this year, but her income has gone up as well.
'I'm earning more than before. In the first three months at RealStar, I already earned what I would previously earn in a year, which was $70,000," said Ms Teo, 34.
Her biggest property transaction to date was a 3,000 sq ft bungalow in Bukit Timah, on a land area of 12,000 sq ft, which she marketed for $10.6 million together with another agent. It was a co-broke deal and Ms Teo pocketed $25,000 in commission.
Armed with a chemical processing diploma from Singapore Polytechnic in 1995, Ms Teo worked in the advertising sales departments of a few media and print firms for several years.
She studied part-time while working and graduated with a business administration degree (marketing) awarded by La Trobe University, Melbourne, in 2000. Prior to The Edge, where she worked for three years, she was a senior advertising manager at CR Media.
When it comes to financial planning, she and her husband, Mr Allan Chin, 36, a director in a global risk management firm, share an investment portfolio comprising stocks and cash. They have a daughter, Anya.
Q: Are you a spender or saver?
I save 25 per cent of my income, which goes into investments. Another 25 per cent goes to family expenses and parents' allowances, and the balance 50 per cent is channelled into charitable causes which include the Salvation Army, National Kidney Foundation and World Vision.
Q: How much do you charge to your credit cards every month?
I usually use two out of my six credit cards, which are all supplementary cards from my husband. On average, I charge less than $500 a month on my cards. We pay our card bills in full every month. I draw only about $200 a month from the ATM as I usually use my credit cards.
Q: What financial planning have you done for yourself?
I have a whole life cover, three endowment plans, a hospitalisation policy and several investment- linked policies.
Allan manages our combined investment portfolio. We have a five- to 10-year investment horizon and our target returns are between 5 and 10 per cent per annum. Our current portfolio is about 70 per cent in cash and 30 per cent in blue-chip equities like CapitaLand and real estate investment trusts (Reits) like CMT, StarHill and Suntec Reit. The latter includes my personal investment of about $50,000 in stocks. Separately, I invested $20,000 of my Central Provident Fund savings in investment-linked insurance plans. The funds are mainly in emerging markets and India.
We favour more cash and liquidity for rainy days. We track our family balance sheet's 'quick ratio' (derived from current assets divided by current liabilities) carefully such that we have sufficient emergency cash to last us for at least 11/2 to two years.
Q: Moneywise, what were your growing up years like?
I grew up living with my parents and younger sister in a four-room HDB flat in Jalan Rajah. Life was simple. My father helped to run my paternal family's provision stall in Balestier and delivered gas cylinders, while my mum sewed clothes at home to supplement the family income.
My mum has always been the prudent one who taught us about the importance of savings and self-reliance, and educated us about the dangers of borrowing money and being in debt to other people and banks. She is the one who saved for our family needs. I also learnt from my dad when I helped out at the provision stall. Be hard-working and honest in your work and money will come.
Q: How did you get interested in investing?
Until I started reading financial books, my knowledge of financial planning was very simple. I was scrimping on what I made and saving very hard...a painfully slow process. Later, I read interesting books like Robert Kiyosaki's Rich Dad Poor Dad and Don't Go To School, which made me ponder on the importance of financial planning. I even attended a two-hour talk by the man himself here in 2001. I also read books by Warren Buffett and Jack D. Schwager.
Last year, I attended some seminars on exchange traded funds and online trading.
Q: What property do you own?
We own a 1,248 sq ft, four-room HDB flat in Bukit Batok. It is our matrimonial home which we bought in 1998 for $276,000. Back then, my husband had just started working as a bank management trainee after his graduation.
Q: What's the most extravagant thing you have bought?
I think my most extravagant purchase was the four Furla bags I bought for a total of $1,400 during a clearance sale last year. I've no regrets as they are of good quality and design and will last me a long time. One is a cream document bag and the other three are handbags of different colours.
Q: What's your retirement plan?
About $6,000 a month in present value will be sufficient for both of us to live very comfortably in our golden years. I plan to continue as a real estate professional for as long as I can work. We hope to be financially independent by our 40s and spend more time with Anya and our loved ones. My belief has always been 'Do your best and God will do the rest'.
We expect our passive income flow to come from Reits and rentals from our future investment properties.
Q: I drive?
A red Toyota Wish.
lorna@sph.com.sg
Lessons from mum and dad
'My mum has always been the prudent one who taught us about the importance of savings and self-reliance, and educated us about the dangers of borrowing money and being in debt to other people and banks. She is the one who saved for our family needs. I also learnt from my dad when I helped out at the provision stall. Be hard-working and honest in your work and money will come.'
MS FAITH TEO, on what she learnt during her growing up years
--------------------------------------------------------------------------------
WORST AND BEST BETS
Q: What has been your worst investment to date?
In October 2007, I invested $10,000 in Singapore-listed stock China Oilfield purely out of hearsay and without diligent research.
I bought 10 lots at the initial public offering price of $1 per share.
I'm still invested in the stock and my paper losses amount to $8,350.
Q: And your best investment?
My best investments have been in love, family and friendship, which have delivered great upside beyond the financial dimension. My investments in blue-chip equities like CapitaLand, and local Reits like CapitaMall Trust have been good. From 2007 to now, I have invested about $50,000. Expected returns are about 4 per cent to 5per cent per annum.
The Penthouse Squeeze
They were bungalows in the sky once; now penthouses can be smaller than 800 sq ft!
(Abstract from The Straits Times 8th Nov, 2009 by Joyce Teo)
Mention penthouses and one immediately thinks of big, luxurious bungalows in the sky, with wraparound views and a multimillion- dollar price tag.
But these days they can be as small as 800 sq ft or less.
These penthouses have come on the market along with mostly yet-to-be-completed developments featuring 'mickey mouse' apartments of 500 sq ft or less.
There is no market data on the number of these small penthouses but a survey of some recent projects with small units shows they are not uncommon.
At the recently released five- storey, 40-unit City Loft project near Farrer Park MRT station, the two-bedroom penthouses are 743 to 904 sq ft in size.
Another recent launch Suites@Guillemard - with units as small as 258 sq ft - has penthouses of 797 to 1,109 sq ft. Some sales were done around a median level of $1,250 psf.
At the 114-unit Siglap V, penthouses come as small as 760 sq ft and go up to 1,300 sq ft. This yet-to-be-launched project opposite Siglap Centre otherwise offers units starting from 380 to 730 sq ft.
Kembangan Suites also has small penthouses that come with private jacuzzis. The smallest, at 635 sq ft, includes a roof terrace that looks similar to the size of the private jacuzzi.
The project's 60 units were sold for $775 to $1,097 psf in March.
These penthouses of around 700 to 780 sq ft may appear to be as big as a three-room HDB flat - HDB's new build-to-order project Fernvale Palms, for instance, offers three- room units of about 721 sq ft - but they have less usable space.
'These small penthouses are a more recent phenomenon - some units will lose more usable space to planter boxes and bay windows, in addition to the staircase and roof terrace,' said Ngee Ann Polytechnic lecturer Nicholas Mak.
The Urban Redevelopment Authority (URA) does not differentiate penthouses from other residential units, so there are no specific planning guidelines or requirements for penthouses.
'As long as the premises are used for residential purposes, the layout and design features of penthouses are left to the developer or the owner to decide, depending on the market or the owner's needs,' said a URA spokesman.
The Merriam-Webster dictionary defines a penthouse as a structure or dwelling built on the roof of a building.
Still, not all private developments have penthouses. EL Development did away with them for its sold-out 19-storey Illuminaire on Devonshire, which has only apartments of 441 to 721 sq ft.
'If you build a lot of small units, it may be a mismatch to have a four-bedroom penthouse,' explained its managing director Lim Yew Soon.
There may not be any official guidelines for penthouses, but the industry norm for one has always been a large, top-floor unit with a rooftop terrace.
Otherwise, a penthouse will be no different from any apartment, experts said. Size matters too.
'I think penthouse buyers have a certain expectation of sizes,' said DP Architects director Tai Lee Siang. 'The norm is still around 2,000-3,000 sq ft. At $5 million to $10 million, they don't make much difference for anyone who could be earning a few million dollars a month.'
Said Jones Lang LaSalle's head of residential, Ms Jacqueline Wong: 'A penthouse is typically 3,000 sq ft and up. It is at least a duplex unit, has four bedrooms and rooftop access. They are bungalows in the sky.'
Penthouses are also mostly for owner occupation.
Huge ones were in vogue during the run-up of 2006 to 2007, when developers were vying with one another to build bigger and bigger units, and to add super-posh features to differentiate the penthouses from regular units.
In late 2006, a five-bedroom penthouse at Marina Bay Residences made the news when it was sold for nearly $27 million, or $2,446 psf. It boasts a whopping 11,012 sqft from the 53rd to 55th floors, and has a rooftop terrace, a 20m outdoor pool and two private lift lobbies.
At one point during the boom, the psf price for penthouses cost even more than that for regular units. But today, you can buy a penthouse with a budget of less than $1 million.
Industry experts said these low-priced units are clearly aimed not at the typical penthouse buyers, but at investors or buyers looking for an affordable apartment.
Because affordability is key, developers are building smaller apartments.
They reap higher profits if units are sold at a higher marginal price than larger units, said National University of Singapore associate professor for real estate Sin Tien Foo. 'The absolute values for small units are also more affordable and they appeal to a wider target group.'
So far, buyers have indeed been biting. Kembangan Suites, for instance, got very strong response.
'I think people will gradually accept smaller penthouses so long as these are highest premium units in a development and usually located at the highest floors,' said Mr Tai.
'If the entire building comprises small units, a 1,000 sq ft penthouse is not unthinkable.'
(Abstract from The Straits Times 8th Nov, 2009 by Joyce Teo)
Mention penthouses and one immediately thinks of big, luxurious bungalows in the sky, with wraparound views and a multimillion- dollar price tag.
But these days they can be as small as 800 sq ft or less.
These penthouses have come on the market along with mostly yet-to-be-completed developments featuring 'mickey mouse' apartments of 500 sq ft or less.
There is no market data on the number of these small penthouses but a survey of some recent projects with small units shows they are not uncommon.
At the recently released five- storey, 40-unit City Loft project near Farrer Park MRT station, the two-bedroom penthouses are 743 to 904 sq ft in size.
Another recent launch Suites@Guillemard - with units as small as 258 sq ft - has penthouses of 797 to 1,109 sq ft. Some sales were done around a median level of $1,250 psf.
At the 114-unit Siglap V, penthouses come as small as 760 sq ft and go up to 1,300 sq ft. This yet-to-be-launched project opposite Siglap Centre otherwise offers units starting from 380 to 730 sq ft.
Kembangan Suites also has small penthouses that come with private jacuzzis. The smallest, at 635 sq ft, includes a roof terrace that looks similar to the size of the private jacuzzi.
The project's 60 units were sold for $775 to $1,097 psf in March.
These penthouses of around 700 to 780 sq ft may appear to be as big as a three-room HDB flat - HDB's new build-to-order project Fernvale Palms, for instance, offers three- room units of about 721 sq ft - but they have less usable space.
'These small penthouses are a more recent phenomenon - some units will lose more usable space to planter boxes and bay windows, in addition to the staircase and roof terrace,' said Ngee Ann Polytechnic lecturer Nicholas Mak.
The Urban Redevelopment Authority (URA) does not differentiate penthouses from other residential units, so there are no specific planning guidelines or requirements for penthouses.
'As long as the premises are used for residential purposes, the layout and design features of penthouses are left to the developer or the owner to decide, depending on the market or the owner's needs,' said a URA spokesman.
The Merriam-Webster dictionary defines a penthouse as a structure or dwelling built on the roof of a building.
Still, not all private developments have penthouses. EL Development did away with them for its sold-out 19-storey Illuminaire on Devonshire, which has only apartments of 441 to 721 sq ft.
'If you build a lot of small units, it may be a mismatch to have a four-bedroom penthouse,' explained its managing director Lim Yew Soon.
There may not be any official guidelines for penthouses, but the industry norm for one has always been a large, top-floor unit with a rooftop terrace.
Otherwise, a penthouse will be no different from any apartment, experts said. Size matters too.
'I think penthouse buyers have a certain expectation of sizes,' said DP Architects director Tai Lee Siang. 'The norm is still around 2,000-3,000 sq ft. At $5 million to $10 million, they don't make much difference for anyone who could be earning a few million dollars a month.'
Said Jones Lang LaSalle's head of residential, Ms Jacqueline Wong: 'A penthouse is typically 3,000 sq ft and up. It is at least a duplex unit, has four bedrooms and rooftop access. They are bungalows in the sky.'
Penthouses are also mostly for owner occupation.
Huge ones were in vogue during the run-up of 2006 to 2007, when developers were vying with one another to build bigger and bigger units, and to add super-posh features to differentiate the penthouses from regular units.
In late 2006, a five-bedroom penthouse at Marina Bay Residences made the news when it was sold for nearly $27 million, or $2,446 psf. It boasts a whopping 11,012 sqft from the 53rd to 55th floors, and has a rooftop terrace, a 20m outdoor pool and two private lift lobbies.
At one point during the boom, the psf price for penthouses cost even more than that for regular units. But today, you can buy a penthouse with a budget of less than $1 million.
Industry experts said these low-priced units are clearly aimed not at the typical penthouse buyers, but at investors or buyers looking for an affordable apartment.
Because affordability is key, developers are building smaller apartments.
They reap higher profits if units are sold at a higher marginal price than larger units, said National University of Singapore associate professor for real estate Sin Tien Foo. 'The absolute values for small units are also more affordable and they appeal to a wider target group.'
So far, buyers have indeed been biting. Kembangan Suites, for instance, got very strong response.
'I think people will gradually accept smaller penthouses so long as these are highest premium units in a development and usually located at the highest floors,' said Mr Tai.
'If the entire building comprises small units, a 1,000 sq ft penthouse is not unthinkable.'
More land for homes soon, so don't rush
Private developers will have a variety of sites to choose from by first half of 2010, says Mah
(Abstract from The Straits Times 8th Nov,2009 by Goh Chin Lian)
There is no need to rush to buy homes, now that a slew of land parcels will be released to private developers in the first half of next year.
That was the assurance given yesterday by National Development Minister Mah Bow Tan.
Similarly, he assured developers that they will have a variety of sites to choose from, with some up for grabs as early as January.
He was speaking to reporters a day after the Government announced that at least eight residential sites - and as many as 26 - will be offered to developers.
It made the move to allay fears of a shortage of homes in the private property market that may have sent prices surging to levels seen in the previous boom.
Five of the 26 sites are for executive condominiums, to cater to the 'sandwiched group', Mr Mah said.
These are people who do not qualify for new HDB flats because they earn more than the $8,000 monthly income cap, but who may find private property too expensive.
The 26 sites could yield 10,550 private homes, the most from half-yearly government land sales since the second half of 2001.
Mr Mah said: 'It sends a signal that there is ample supply, and if the demand is high, we are able to meet this demand by releasing more land.'
Another 60,000 units are also in the pipeline and have yet to be sold, he pointed out.
'So no need to panic, no need to rush. Just take your time, look around, and you will find a home that's suitable for you and that is within your budget,' he said.
Earlier, Mr Mah presented certificates to 41 newly registered professional engineers, at an annual event to recognise the contributions of such professionals.
In his speech, he identified two challenges facing engineers.
One is to find ways to make buildings environmentally friendly and adopt sustainable construction practices, such as using more recycled materials.
Another challenge is to advance the construction industry through innovation, such as the prefabrication technology used to build the 50-storey residential towers at Pinnacle@Duxton.
Mr Mah also recognised the Professional Engineers Board's efforts to promote the profession as a lifelong career.
New blood is needed, he pointed out, as six in 10 professional engineers with practising certificates are aged 50 or above.
(Abstract from The Straits Times 8th Nov,2009 by Goh Chin Lian)
There is no need to rush to buy homes, now that a slew of land parcels will be released to private developers in the first half of next year.
That was the assurance given yesterday by National Development Minister Mah Bow Tan.
Similarly, he assured developers that they will have a variety of sites to choose from, with some up for grabs as early as January.
He was speaking to reporters a day after the Government announced that at least eight residential sites - and as many as 26 - will be offered to developers.
It made the move to allay fears of a shortage of homes in the private property market that may have sent prices surging to levels seen in the previous boom.
Five of the 26 sites are for executive condominiums, to cater to the 'sandwiched group', Mr Mah said.
These are people who do not qualify for new HDB flats because they earn more than the $8,000 monthly income cap, but who may find private property too expensive.
The 26 sites could yield 10,550 private homes, the most from half-yearly government land sales since the second half of 2001.
Mr Mah said: 'It sends a signal that there is ample supply, and if the demand is high, we are able to meet this demand by releasing more land.'
Another 60,000 units are also in the pipeline and have yet to be sold, he pointed out.
'So no need to panic, no need to rush. Just take your time, look around, and you will find a home that's suitable for you and that is within your budget,' he said.
Earlier, Mr Mah presented certificates to 41 newly registered professional engineers, at an annual event to recognise the contributions of such professionals.
In his speech, he identified two challenges facing engineers.
One is to find ways to make buildings environmentally friendly and adopt sustainable construction practices, such as using more recycled materials.
Another challenge is to advance the construction industry through innovation, such as the prefabrication technology used to build the 50-storey residential towers at Pinnacle@Duxton.
Mr Mah also recognised the Professional Engineers Board's efforts to promote the profession as a lifelong career.
New blood is needed, he pointed out, as six in 10 professional engineers with practising certificates are aged 50 or above.
Saturday, November 7, 2009
10,550 private homes, maybe
(Abstract from TodayOnline 7th Nov, 2009 by Tan Hui Leng)
SINGAPORE - It has come a month earlier this year than usual, in what seems a clear move to tackle concerns about the property market's exuberance. On Friday, the Government released details of its Land Sales programme for the first half of next year, signalling a potential addition of 10,550 private homes - the most since the programme began in 2001.
The much-anticipated reinstatement of the Confirmed List - a list suspended a year ago as the recession bit - saw eight residential sites identified to be put up for tender in the first four months. These could yield 2,925 units, just short of the high at the peak of the property boom in 2007.
"Since people say there's some anxiety about housing supply and so on ... it's better to tell people (now) that there's going to be adequate housing supply," said the Urban Redevelopment Authority's senior group director (land sales and administration) Choy Chan Pong.
On the Reserve List - for sites whose tender will only be triggered if there is a minimum bid - are 16 residential sites and two mixed-used sites that could include residential units.
All 26 sites in the programme will be outside the Core Central Region, to increase the supply of more affordable private housing, said Mr Choy. Four of the Confirmed List sites are new - at Buangkok, Lakeside, Simei and Upper Serangoon. Their selection is based on national development plans: For instance, the Lakeside area will be developed as part of the Jurong Lake District.
Analysts believe this injection of new units could put a lid on private home prices, which in the third quarter grew 15.8 per cent - the steepest on-quarter rise since 1981.
"It's the intention of the Government to make sure that property prices don't run away," said Knight Frank's Peter Ow.
Cushman and Wakefield Singapore's Donald Han expects more developers from China and Hong Kong to join the fray, as the high-end markets here have not peaked price-wise.
As of the third quarter, there were some 59,700 units in the pipeline, not including the 2,010 units from the Reserve List sites sold this year.
Copyright 2009 MediaCorp Pte Ltd | All Rights Reserved
SINGAPORE - It has come a month earlier this year than usual, in what seems a clear move to tackle concerns about the property market's exuberance. On Friday, the Government released details of its Land Sales programme for the first half of next year, signalling a potential addition of 10,550 private homes - the most since the programme began in 2001.
The much-anticipated reinstatement of the Confirmed List - a list suspended a year ago as the recession bit - saw eight residential sites identified to be put up for tender in the first four months. These could yield 2,925 units, just short of the high at the peak of the property boom in 2007.
"Since people say there's some anxiety about housing supply and so on ... it's better to tell people (now) that there's going to be adequate housing supply," said the Urban Redevelopment Authority's senior group director (land sales and administration) Choy Chan Pong.
On the Reserve List - for sites whose tender will only be triggered if there is a minimum bid - are 16 residential sites and two mixed-used sites that could include residential units.
All 26 sites in the programme will be outside the Core Central Region, to increase the supply of more affordable private housing, said Mr Choy. Four of the Confirmed List sites are new - at Buangkok, Lakeside, Simei and Upper Serangoon. Their selection is based on national development plans: For instance, the Lakeside area will be developed as part of the Jurong Lake District.
Analysts believe this injection of new units could put a lid on private home prices, which in the third quarter grew 15.8 per cent - the steepest on-quarter rise since 1981.
"It's the intention of the Government to make sure that property prices don't run away," said Knight Frank's Peter Ow.
Cushman and Wakefield Singapore's Donald Han expects more developers from China and Hong Kong to join the fray, as the high-end markets here have not peaked price-wise.
As of the third quarter, there were some 59,700 units in the pipeline, not including the 2,010 units from the Reserve List sites sold this year.
Copyright 2009 MediaCorp Pte Ltd | All Rights Reserved
Bubble brewing?
(Abstract from TodayOnline 7th Nov, 2009 by Colin Tan)
WITH the recent release of third-quarter real estate data, it may be timely to ask: Is there a real estate bubble, and if so, how bad is it? When the figures were unveiled in the last week of October, private-housing prices were out-of-sync with the rest of the market. Prices and rents were down for the other major sectors - office, retail and industrial. These trends were in line with current economic conditions.
Private-housing prices rebounded sharply by 15.8 per cent, easily the highest quarterly rise in more than 25 years. This is aggravated by the decline of housing rentals. Prices dropped by 2.2 per cent despite the third quarter traditionally being the best in terms of number of leases closed, as this is when many expatriates return from their holidays and sign new rental contracts.
Although the overall housing rental trend is down, rentals in some areas have improved and recorded increases in August and September. These increases could partly be due to the large number of expatriates signing new leases in the third quarter. Overseas managerial staff from the integrated resorts would also have signed on during this period.
Rents will go up for some developments due to competition. There are also signs that some tenants are moving to smaller units. This may also lead to rises in some unit types but declines for others.
In the third quarter, 921 units were added to the total number of vacant housing units or a growth of 6.6 per cent, as 3,666 units were completed during the quarter - the highest quarterly figure in more than a decade. The last time the market saw any significant growth was in the first quarter of last year, when the number of vacant units grew by 1,728 units or 13.2 per cent.
The number of units completing in the final quarter and next year may not be big - 1,805 for the fourth quarter and 5,737 for the whole of 2010. But the pressure resumes, with 11,667 in 2011 and 12,991 in 2012.
Owner occupiers or investors?
The Singapore private-housing market has traditionally been anchored by owner-occupier purchases, giving stability to prices.
But in 2007 and 2009, the proportion of investors rose significantly. There is no formal information on the actual percentage of investors but a small sample of about 33 cases show investor-purchases at 87.8 per cent of the total, showing an increased downward pressure on housing rentals in the future.
Judging from land prices, which have increased by more than 30 per cent based on the winning bids from five triggered Government sites, housing prices can be expected to rise.
The latest announcement that the Government intends to launch eight housing sites from the confirmed list in the first four months of next year is timely as it helps to increase supply. With ample liquidity and the low cost of funds in the market, it will be awhile before prices begin to drop.
For those still contemplating investing in the property market, recognise the activity for what it is - a high risk, high gain play. It is never a low-risk, high-gain activity. ¢
The writer is the head of research and consultancy at Chesterton Suntec International. The opinions expressed here are his own.
Copyright 2009 MediaCorp Pte Ltd | All Rights Reserved
WITH the recent release of third-quarter real estate data, it may be timely to ask: Is there a real estate bubble, and if so, how bad is it? When the figures were unveiled in the last week of October, private-housing prices were out-of-sync with the rest of the market. Prices and rents were down for the other major sectors - office, retail and industrial. These trends were in line with current economic conditions.
Private-housing prices rebounded sharply by 15.8 per cent, easily the highest quarterly rise in more than 25 years. This is aggravated by the decline of housing rentals. Prices dropped by 2.2 per cent despite the third quarter traditionally being the best in terms of number of leases closed, as this is when many expatriates return from their holidays and sign new rental contracts.
Although the overall housing rental trend is down, rentals in some areas have improved and recorded increases in August and September. These increases could partly be due to the large number of expatriates signing new leases in the third quarter. Overseas managerial staff from the integrated resorts would also have signed on during this period.
Rents will go up for some developments due to competition. There are also signs that some tenants are moving to smaller units. This may also lead to rises in some unit types but declines for others.
In the third quarter, 921 units were added to the total number of vacant housing units or a growth of 6.6 per cent, as 3,666 units were completed during the quarter - the highest quarterly figure in more than a decade. The last time the market saw any significant growth was in the first quarter of last year, when the number of vacant units grew by 1,728 units or 13.2 per cent.
The number of units completing in the final quarter and next year may not be big - 1,805 for the fourth quarter and 5,737 for the whole of 2010. But the pressure resumes, with 11,667 in 2011 and 12,991 in 2012.
Owner occupiers or investors?
The Singapore private-housing market has traditionally been anchored by owner-occupier purchases, giving stability to prices.
But in 2007 and 2009, the proportion of investors rose significantly. There is no formal information on the actual percentage of investors but a small sample of about 33 cases show investor-purchases at 87.8 per cent of the total, showing an increased downward pressure on housing rentals in the future.
Judging from land prices, which have increased by more than 30 per cent based on the winning bids from five triggered Government sites, housing prices can be expected to rise.
The latest announcement that the Government intends to launch eight housing sites from the confirmed list in the first four months of next year is timely as it helps to increase supply. With ample liquidity and the low cost of funds in the market, it will be awhile before prices begin to drop.
For those still contemplating investing in the property market, recognise the activity for what it is - a high risk, high gain play. It is never a low-risk, high-gain activity. ¢
The writer is the head of research and consultancy at Chesterton Suntec International. The opinions expressed here are his own.
Copyright 2009 MediaCorp Pte Ltd | All Rights Reserved
Cheung Kong is top bidder for Upper Thomson Rd condo plot
(Abstract from Business Times 7th Nov, 2009 By KALPANA RASHIWALA)
THE top bidder for the 99-year condo site on Upper Thomson Road on Thursday has been revealed as a unit of Hong Kong tycoon Li Ka-shing's Cheung Kong Holdings.
This was confirmed yesterday by Raymond Chui, general manager of the group's Singapore-based unit Property Enterprises Development.
Cheung Kong unit Treasure Well Investments' bid was for $251.3 million or about $533 per square foot per plot ratio (psf ppr) - the highest seen for a private housing site at a state land tender this year.
Mr Chui said the estimated breakeven cost of about $850 to $900 psf forecast by analysts quoted in the media was pretty accurate. 'We'll probably develop around 340 to 350 units,' he added.
Treasure Well's top bid was 21.5 per cent above the next highest offer, which was made by Singapore's Far East Organization.
When asked if Cheung Kong regretted having paid such a wide margin, especially in hindsight as the government announced its H1 2010 land sales programme the next day with substantial supply in the confirmed list, Mr Chui replied: 'We've done our sums. The site is in a very good location and we have confidence in the future of the Singapore property market.'
The Upper Thomson Road site is located opposite the Singapore Island Country Club's Island Golf Course and Lower Peirce Reservoir.
The group will also be developing a 295-unit condo on a 99-year-leasehold site facing West Coast Park and overlooking the sea.
That is likely to be launched next year, possibly in the second quarter, Mr Chui revealed.
The project will comprise fairly regular-sized units. 'Our showflat is not yet ready,' he added.
Cheung Kong clinched the West Coast site at a state tender in March last year, paying $110.44 million or $305 psf ppr.
Interestingly, it also outbid Far East Organization for that site, but with a much narrower winning margin of just 1.4 per cent.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
THE top bidder for the 99-year condo site on Upper Thomson Road on Thursday has been revealed as a unit of Hong Kong tycoon Li Ka-shing's Cheung Kong Holdings.
This was confirmed yesterday by Raymond Chui, general manager of the group's Singapore-based unit Property Enterprises Development.
Cheung Kong unit Treasure Well Investments' bid was for $251.3 million or about $533 per square foot per plot ratio (psf ppr) - the highest seen for a private housing site at a state land tender this year.
Mr Chui said the estimated breakeven cost of about $850 to $900 psf forecast by analysts quoted in the media was pretty accurate. 'We'll probably develop around 340 to 350 units,' he added.
Treasure Well's top bid was 21.5 per cent above the next highest offer, which was made by Singapore's Far East Organization.
When asked if Cheung Kong regretted having paid such a wide margin, especially in hindsight as the government announced its H1 2010 land sales programme the next day with substantial supply in the confirmed list, Mr Chui replied: 'We've done our sums. The site is in a very good location and we have confidence in the future of the Singapore property market.'
The Upper Thomson Road site is located opposite the Singapore Island Country Club's Island Golf Course and Lower Peirce Reservoir.
The group will also be developing a 295-unit condo on a 99-year-leasehold site facing West Coast Park and overlooking the sea.
That is likely to be launched next year, possibly in the second quarter, Mr Chui revealed.
The project will comprise fairly regular-sized units. 'Our showflat is not yet ready,' he added.
Cheung Kong clinched the West Coast site at a state tender in March last year, paying $110.44 million or $305 psf ppr.
Interestingly, it also outbid Far East Organization for that site, but with a much narrower winning margin of just 1.4 per cent.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Govt to offer slew of sites for homes
Eight confirmed sites and as many as 26 to allay fears of shortage
(Abstract from The Strait Times 7th Nov, 2009 by Joyce Teo)
THE Government acted ahead of schedule yesterday in following through on its pledge to release plenty of land sites to meet strong demand for mass market homes outside the city centre.
In the first half of next year, at least eight residential sites - and as many as 26 sites - will be offered to developers.
The move is being seen as a bid to allay fears of a shortage of these homes - often bought by HDB upgraders - which may have sent prices surging.
The 26 sites could produce 10,550 private homes - the highest number from any half-yearly government land sales since the second half of 2001, said the Urban Redevelopment Authority (URA).
In an announcement that came a few weeks earlier than usual, the Government said it would put eight residential sites, including two executive condominium (EC) sites, on the confirmed list. This is where sites are put up for sale regardless of developers' prior expressions of interest.
These sites could boast about 2,925 new homes, close to the boom time 3,000 in the second half of 2007.
'There's some anxiety about housing supply, so its better to tell people that there will be adequate supply,' said URA senior group director of land sales and administration Choy Chan Pong.
'The private residential market has seen very strong demand in the past eight months, so we want to ensure there is enough supply to meet demand, so that prices can move more in sync with economic fundamentals,' he said.
To calm the market, National Development Minister Mah Bow Tan, in mid-September, flagged the move to reinstate the confirmed list after it was suspended for about a year.
Sales of new private homes this year are now above 12,828 units and could hit 2007's record of 14,811 units. Developers have thus been bidding for land at much higher than expected prices.
The high-end homes market has not fully recovered, but mass market prices are now similar to levels seen in the previous boom, sparking fears of runaway mass market prices, experts said.
'The programme will ensure the property market stays stable and price increases are kept to moderate levels,' said Knight Frank's executive director of residential, Mr Peter Ow.
Aggressive bids by developers could also become a thing of the past.
The Government is trying to calm panicky buyers as well as developers who have been tendering for sites at record prices, said Cushman & Wakefield managing director Donald Han.
Of the 26 sites for residential use on the land sales programme, 10 are new sites, not rolled out previously.
In January, the Government will push out three confirmed sites, including a new EC site in Buangkok Drive.
The five EC sites, one new, will mean the largest EC supply since 2000.
'Putting two ECs on the confirmed list reflects the Government's concern about the widening gap between HDB resale prices and private housing prices,' said DTZ head of South-east Asia research Chua Chor Hoon.
Two of the 26 residential sites are mixed-use, whereby private homes can be built. Another 16 are on the reserve list, whereby sites are offered for sale after a developer commits to a minimum bid.
Two confirmed list sites near MRT stations - in Pheng Geck Avenue and Simei Street 3 - are very attractive, and could fetch $400 to $500 per sq ft of gross floor area, Mr Ow estimated.
Units on the sites may then sell for close to $1,000 psf, he added.
On the reserve list, the sites likely to be triggered for tender are in Bishan Street14, Bartley Road and Stirling Road, said CBRE Research.
In all, 42 sites are available for sale in the first half of next year, comprising 24 purely residential sites, two mixed use sites that must include residential use, five commercial sites, 10 hotel sites and one site permitting a range of uses.
joyceteo@sph.com.sg
(Abstract from The Strait Times 7th Nov, 2009 by Joyce Teo)
THE Government acted ahead of schedule yesterday in following through on its pledge to release plenty of land sites to meet strong demand for mass market homes outside the city centre.
In the first half of next year, at least eight residential sites - and as many as 26 sites - will be offered to developers.
The move is being seen as a bid to allay fears of a shortage of these homes - often bought by HDB upgraders - which may have sent prices surging.
The 26 sites could produce 10,550 private homes - the highest number from any half-yearly government land sales since the second half of 2001, said the Urban Redevelopment Authority (URA).
In an announcement that came a few weeks earlier than usual, the Government said it would put eight residential sites, including two executive condominium (EC) sites, on the confirmed list. This is where sites are put up for sale regardless of developers' prior expressions of interest.
These sites could boast about 2,925 new homes, close to the boom time 3,000 in the second half of 2007.
'There's some anxiety about housing supply, so its better to tell people that there will be adequate supply,' said URA senior group director of land sales and administration Choy Chan Pong.
'The private residential market has seen very strong demand in the past eight months, so we want to ensure there is enough supply to meet demand, so that prices can move more in sync with economic fundamentals,' he said.
To calm the market, National Development Minister Mah Bow Tan, in mid-September, flagged the move to reinstate the confirmed list after it was suspended for about a year.
Sales of new private homes this year are now above 12,828 units and could hit 2007's record of 14,811 units. Developers have thus been bidding for land at much higher than expected prices.
The high-end homes market has not fully recovered, but mass market prices are now similar to levels seen in the previous boom, sparking fears of runaway mass market prices, experts said.
'The programme will ensure the property market stays stable and price increases are kept to moderate levels,' said Knight Frank's executive director of residential, Mr Peter Ow.
Aggressive bids by developers could also become a thing of the past.
The Government is trying to calm panicky buyers as well as developers who have been tendering for sites at record prices, said Cushman & Wakefield managing director Donald Han.
Of the 26 sites for residential use on the land sales programme, 10 are new sites, not rolled out previously.
In January, the Government will push out three confirmed sites, including a new EC site in Buangkok Drive.
The five EC sites, one new, will mean the largest EC supply since 2000.
'Putting two ECs on the confirmed list reflects the Government's concern about the widening gap between HDB resale prices and private housing prices,' said DTZ head of South-east Asia research Chua Chor Hoon.
Two of the 26 residential sites are mixed-use, whereby private homes can be built. Another 16 are on the reserve list, whereby sites are offered for sale after a developer commits to a minimum bid.
Two confirmed list sites near MRT stations - in Pheng Geck Avenue and Simei Street 3 - are very attractive, and could fetch $400 to $500 per sq ft of gross floor area, Mr Ow estimated.
Units on the sites may then sell for close to $1,000 psf, he added.
On the reserve list, the sites likely to be triggered for tender are in Bishan Street14, Bartley Road and Stirling Road, said CBRE Research.
In all, 42 sites are available for sale in the first half of next year, comprising 24 purely residential sites, two mixed use sites that must include residential use, five commercial sites, 10 hotel sites and one site permitting a range of uses.
joyceteo@sph.com.sg
Buffet-table spread of sites for developers
But the jury is out on whether the govt's release of plots will tame land bids, which have soared wildly at state tenders
(Abstract from Business Times 7th Nov, 2009 By KALPANA RASHIWALA)
THE government is offering developers a platter of residential sites through the confirmed and reserve lists for the next half - including several plots in the vicinities of hot-selling condo launches this year, such as Caspian near Jurong Lake and Alexis near Queenstown MRT Station.
However, the jury is out on how much this will tame land bids, which have soared wildly at recent state tenders.
Four of the eight sites on the confirmed list and at least four reserve list sites are near MRT stations - but there are also many sites not in the vicinity of train stations where more affordable private housing could be built.
A few plots are close to the city while the majority are in typical suburban locations where private condos catering to HDB upgraders are located.
Peter Ow, Knight Frank executive director (residential), said: 'The government's main message is that it is taking care of the upgraders' market. The current release is to tackle and try to moderate prices in the upgraders market which concerns most Singaporeans.'
For new private homes, prices in the mass-market segment have surpassed their 2007 peak levels; whereas for high-end homes, prices have yet to recover to their 2007-highs, he added.
'Thus, there are no sites in the Core Central Region, which includes the prime districts. The government recognises the fact that not all sectors of the residential market are doing well, especially high-end homes.'
Chua Chor Hoon, DTZ's South-east Asia research head, said that with so many choices, developers are unlikely to put in aggressive land bids in future tenders.
Leonard Tay, CB Richard Ellis director (research), said that the latest supply may moderate slightly some of the exuberance at recent state tenders but prime sites near MRT stations would still be well contested and developers may put in a premium.
Putting the latest supply numbers in perspective, Knight Frank chairman Tan Tiong Cheng suggested that the 2,925 private homes that can be developed on the eight confirmed list plots for H1 2010 would not significantly bring down land bids as the reintroduction of supply on this list is long overdue after an absence of one year.
'So it's more like catching up. Plus, there's no alternative supply of mass market sites from the private sector through collective sales, for instance,' he added.
Of the 10 new housing sites on the latest confirmed and reserve lists, Knight Frank's Mr Ow picks out the confirmed list plot next to Potong Pasir MRT Station, which can yield about 150 private homes, and the reserve list site at Stirling Road near Queenstown MRT Station as the ones likely to fetch the highest bids - about $500 per square foot per plot ratio (psf ppr) and above $500 psf ppr respectively, because of their proximity to the city.
DTZ's Ms Chua pointed out that the Stirling Road site, which can be be turned into a condo with about 405 units, is quite near the CBD and very close to HDB flats. A new condo on the site would generate demand from both owner occupiers and investors. 'There's good rental demand for Queens and Anchorage condos nearby,' she said.
Agreeing, Mr Ow said that the Stirling plot, with a 4.2 plot ratio (ratio of maximum potential gross floor area to land area) could probably be built up to 40 storeys, in line with Queens condo just in front of it as well as HDB blocks in the Dawson estate nearby.
Property consultants said that other new sites that are likely to be popular include plots near Simei and Lakeside MRT stations as well as a plot in Pasir Ris near Downtown East and Pasir Ris Park.
The land parcel near Lakeside MRT Station, which is under the confirmed list, can produce some 525 private homes. It is next to Caspian, which sold like hot cakes in February and helped revive private homes sales after last year's global financial crash. Another plot on the confirmed list, diagonally opposite Simei MRT, can produce 250 units. It is also near UOL Group's Double Bay Residences which was released this year. The confirmed list site at Pheng Geck Avenue near Potong Pasir MRT is close to another 2009 hot seller, 8@Woodleigh.
Among the new reserve list sites, the Stirling Road plot is in the vicinity of Alexis condo, which was also among the earlier hot projects this year.
The Ministry of National Development has also injected two plots in Hougang into the latest reserve list - one at Hougang Avenue 2 designated for a low-rise development near Rosyth School, and the other, at Hougang Avenue 7.
Another new reserve list plot is at Miltonia Close in Yishun, next to The Shaughnessy, a completed condo. It may be far from town and not next to an MRT station but a new low-rise development on the site will be attractively located, next to Orchid Golf Course and near Lower Seletar Reservoir.
Developers more familiar with the Eunos area may consider a plot at Foo Kim Lin Road which can generate about 535 units. It is a new plot on the reserve list.
'Developers now have a whole buffet-table spread of sites to choose from,' summed up CBRE's Mr Tay.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
(Abstract from Business Times 7th Nov, 2009 By KALPANA RASHIWALA)
THE government is offering developers a platter of residential sites through the confirmed and reserve lists for the next half - including several plots in the vicinities of hot-selling condo launches this year, such as Caspian near Jurong Lake and Alexis near Queenstown MRT Station.
However, the jury is out on how much this will tame land bids, which have soared wildly at recent state tenders.
Four of the eight sites on the confirmed list and at least four reserve list sites are near MRT stations - but there are also many sites not in the vicinity of train stations where more affordable private housing could be built.
A few plots are close to the city while the majority are in typical suburban locations where private condos catering to HDB upgraders are located.
Peter Ow, Knight Frank executive director (residential), said: 'The government's main message is that it is taking care of the upgraders' market. The current release is to tackle and try to moderate prices in the upgraders market which concerns most Singaporeans.'
For new private homes, prices in the mass-market segment have surpassed their 2007 peak levels; whereas for high-end homes, prices have yet to recover to their 2007-highs, he added.
'Thus, there are no sites in the Core Central Region, which includes the prime districts. The government recognises the fact that not all sectors of the residential market are doing well, especially high-end homes.'
Chua Chor Hoon, DTZ's South-east Asia research head, said that with so many choices, developers are unlikely to put in aggressive land bids in future tenders.
Leonard Tay, CB Richard Ellis director (research), said that the latest supply may moderate slightly some of the exuberance at recent state tenders but prime sites near MRT stations would still be well contested and developers may put in a premium.
Putting the latest supply numbers in perspective, Knight Frank chairman Tan Tiong Cheng suggested that the 2,925 private homes that can be developed on the eight confirmed list plots for H1 2010 would not significantly bring down land bids as the reintroduction of supply on this list is long overdue after an absence of one year.
'So it's more like catching up. Plus, there's no alternative supply of mass market sites from the private sector through collective sales, for instance,' he added.
Of the 10 new housing sites on the latest confirmed and reserve lists, Knight Frank's Mr Ow picks out the confirmed list plot next to Potong Pasir MRT Station, which can yield about 150 private homes, and the reserve list site at Stirling Road near Queenstown MRT Station as the ones likely to fetch the highest bids - about $500 per square foot per plot ratio (psf ppr) and above $500 psf ppr respectively, because of their proximity to the city.
DTZ's Ms Chua pointed out that the Stirling Road site, which can be be turned into a condo with about 405 units, is quite near the CBD and very close to HDB flats. A new condo on the site would generate demand from both owner occupiers and investors. 'There's good rental demand for Queens and Anchorage condos nearby,' she said.
Agreeing, Mr Ow said that the Stirling plot, with a 4.2 plot ratio (ratio of maximum potential gross floor area to land area) could probably be built up to 40 storeys, in line with Queens condo just in front of it as well as HDB blocks in the Dawson estate nearby.
Property consultants said that other new sites that are likely to be popular include plots near Simei and Lakeside MRT stations as well as a plot in Pasir Ris near Downtown East and Pasir Ris Park.
The land parcel near Lakeside MRT Station, which is under the confirmed list, can produce some 525 private homes. It is next to Caspian, which sold like hot cakes in February and helped revive private homes sales after last year's global financial crash. Another plot on the confirmed list, diagonally opposite Simei MRT, can produce 250 units. It is also near UOL Group's Double Bay Residences which was released this year. The confirmed list site at Pheng Geck Avenue near Potong Pasir MRT is close to another 2009 hot seller, 8@Woodleigh.
Among the new reserve list sites, the Stirling Road plot is in the vicinity of Alexis condo, which was also among the earlier hot projects this year.
The Ministry of National Development has also injected two plots in Hougang into the latest reserve list - one at Hougang Avenue 2 designated for a low-rise development near Rosyth School, and the other, at Hougang Avenue 7.
Another new reserve list plot is at Miltonia Close in Yishun, next to The Shaughnessy, a completed condo. It may be far from town and not next to an MRT station but a new low-rise development on the site will be attractively located, next to Orchid Golf Course and near Lower Seletar Reservoir.
Developers more familiar with the Eunos area may consider a plot at Foo Kim Lin Road which can generate about 535 units. It is a new plot on the reserve list.
'Developers now have a whole buffet-table spread of sites to choose from,' summed up CBRE's Mr Tay.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Govt turns up supply tap to cool property fever
10 new sites signal intent to keep home prices affordable
(Abstract from Business Times 7th Nov, 2009 by Emilyn Yap)
THE government yesterday fired a clear signal that it intends to keep private homes affordable by announcing its land sales programme for the first half of 2010 earlier than expected.
The 10 new residential sites introduced through the confirmed and reserve lists will allow developers to build many more homes - some of these in executive condominiums (ECs). There will also be more plots in less pricey regions.
'The large number of sites in the confirmed and reserve lists shows how keen the government is to cool the residential property market,' observed DTZ South-east Asia research head Chua Chor Hoon.
The Ministry of National Development (MND) reinstated the confirmed list with eight residential sites - four are new while the other four are from the H2 2009 government land sales (GLS) programme. Of these eight parcels, three could be launched in January alone.
The government puts up sites on the confirmed list for tender according to scheduled dates. It suspended this list last October as the property market weakened, but recently decided to reinstate it as private home demand and prices surged in the last few months.
The eight parcels on the confirmed list can hold an estimated 2,925 units. This is close to the largest potential supply of 3,014 units from the confirmed list in H2 2007, since the confirmed list and reserve list system began in H2 2001.
The upcoming confirmed list is striking not just for the number of sites on it. Two of the eight parcels are designated for ECs - a hybrid of public and private housing with resale and other restrictions.
These developments cater particularly to those who can afford more than an HDB flat but are still priced out of private property.
MND also boosted the reserve list for H1 2010 with six new residential sites which can generate another 2,455 units. Sites on this list are launched only when developers successfully apply for them.
With 16 residential sites and two mixed-used sites in all, the reserve list will be able to supply 7,625 units.
Together, the confirmed and reserve lists can potentially bring 10,550 housing units into the market. This is the highest number from any half-yearly government land sales (GLS) programme since the reserve list system began in H2 2001.
Another notable point: the 26 residential and mixed-use sites on the confirmed and reserve lists are all in the outside central region (OCR) and rest of central region (RCR), where cheaper homes can be built. Of the potential supply of 10,550 units, 9,220 will be in OCR while the remaining 1,330 will be in CCR.
'There is a balanced spread of residential sites on the confirmed and reserve lists under the GLS programme for H1 2010, offering a variety of choices for the development of affordable homes,' the Real Estate Developers' Association of Singapore (Redas) said. 'We believe that there is adequate supply of housing in the pipeline to meet future demand.'
As at Q3 this year, some 59,700 private homes were already in the pipeline. Of these, 34,120 units had not been sold.
MND typically releases details on the GLS programme in December. Yesterday's announcement came weeks earlier than expected.
According to Urban Redevelopment Authority (URA) land sales and administration senior group director Choy Chan Pong, the market has been waiting for updates since National Development Minister Mah Bow Tan said in September that the confirmed list would be reinstated.
'Since people say there is some anxiety about housing supply, it's better to tell people now,' he explained.
Cushman & Wakefield Singapore managing director Donald Han reckoned that the announcement also sends a 'don't panic' signal to developers seeking to replenish their land banks. The likely launch of three sites from the confirmed list in January next year could help, because 'the longer the wait, the higher is the pent-up demand and the potential premium pricing,', he said.
MND did not introduce any commercial, hotel or white sites to the confirmed list for H1 2010. But it did add two new hotel plots to the reserve list. The reserve list will have five commercial sites, two white sites, 10 hotel sites and one commercial-and- residential site.
The ministry also underlined that more land could come from other government agencies. Planned supply from these agencies in H1 2010 can yield commercial space with a gross floor area of around 43,000 square metres.
'The government will continue to monitor the demand-and-supply conditions not only for the residential sector, but also for various property sectors. We will monitor it closely and review the GLS programme accordingly to ensure that supply is more than sufficient to meet demand,' URA's Mr Choy said.
The market had been prepared for new land supply to be introduced and major property counters managed to post gains on the stock market yesterday. City Developments shares, for instance, rose 17 cents to close at $10.02.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
(Abstract from Business Times 7th Nov, 2009 by Emilyn Yap)
THE government yesterday fired a clear signal that it intends to keep private homes affordable by announcing its land sales programme for the first half of 2010 earlier than expected.
The 10 new residential sites introduced through the confirmed and reserve lists will allow developers to build many more homes - some of these in executive condominiums (ECs). There will also be more plots in less pricey regions.
'The large number of sites in the confirmed and reserve lists shows how keen the government is to cool the residential property market,' observed DTZ South-east Asia research head Chua Chor Hoon.
The Ministry of National Development (MND) reinstated the confirmed list with eight residential sites - four are new while the other four are from the H2 2009 government land sales (GLS) programme. Of these eight parcels, three could be launched in January alone.
The government puts up sites on the confirmed list for tender according to scheduled dates. It suspended this list last October as the property market weakened, but recently decided to reinstate it as private home demand and prices surged in the last few months.
The eight parcels on the confirmed list can hold an estimated 2,925 units. This is close to the largest potential supply of 3,014 units from the confirmed list in H2 2007, since the confirmed list and reserve list system began in H2 2001.
The upcoming confirmed list is striking not just for the number of sites on it. Two of the eight parcels are designated for ECs - a hybrid of public and private housing with resale and other restrictions.
These developments cater particularly to those who can afford more than an HDB flat but are still priced out of private property.
MND also boosted the reserve list for H1 2010 with six new residential sites which can generate another 2,455 units. Sites on this list are launched only when developers successfully apply for them.
With 16 residential sites and two mixed-used sites in all, the reserve list will be able to supply 7,625 units.
Together, the confirmed and reserve lists can potentially bring 10,550 housing units into the market. This is the highest number from any half-yearly government land sales (GLS) programme since the reserve list system began in H2 2001.
Another notable point: the 26 residential and mixed-use sites on the confirmed and reserve lists are all in the outside central region (OCR) and rest of central region (RCR), where cheaper homes can be built. Of the potential supply of 10,550 units, 9,220 will be in OCR while the remaining 1,330 will be in CCR.
'There is a balanced spread of residential sites on the confirmed and reserve lists under the GLS programme for H1 2010, offering a variety of choices for the development of affordable homes,' the Real Estate Developers' Association of Singapore (Redas) said. 'We believe that there is adequate supply of housing in the pipeline to meet future demand.'
As at Q3 this year, some 59,700 private homes were already in the pipeline. Of these, 34,120 units had not been sold.
MND typically releases details on the GLS programme in December. Yesterday's announcement came weeks earlier than expected.
According to Urban Redevelopment Authority (URA) land sales and administration senior group director Choy Chan Pong, the market has been waiting for updates since National Development Minister Mah Bow Tan said in September that the confirmed list would be reinstated.
'Since people say there is some anxiety about housing supply, it's better to tell people now,' he explained.
Cushman & Wakefield Singapore managing director Donald Han reckoned that the announcement also sends a 'don't panic' signal to developers seeking to replenish their land banks. The likely launch of three sites from the confirmed list in January next year could help, because 'the longer the wait, the higher is the pent-up demand and the potential premium pricing,', he said.
MND did not introduce any commercial, hotel or white sites to the confirmed list for H1 2010. But it did add two new hotel plots to the reserve list. The reserve list will have five commercial sites, two white sites, 10 hotel sites and one commercial-and- residential site.
The ministry also underlined that more land could come from other government agencies. Planned supply from these agencies in H1 2010 can yield commercial space with a gross floor area of around 43,000 square metres.
'The government will continue to monitor the demand-and-supply conditions not only for the residential sector, but also for various property sectors. We will monitor it closely and review the GLS programme accordingly to ensure that supply is more than sufficient to meet demand,' URA's Mr Choy said.
The market had been prepared for new land supply to be introduced and major property counters managed to post gains on the stock market yesterday. City Developments shares, for instance, rose 17 cents to close at $10.02.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
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