BT : It may look like a bubble, but it's stronger

Business Times - 13 Mar 2010

SHOW ME THE MONEY
It may look like a bubble, but it's stronger

Beijing, it seems, will have to come up with harsher measures to control the rapid rise in property prices

By TEH HOOI LING
SENIOR CORRESPONDENT

IS there or is there not a property bubble in China? That is the billion-dollar question that everybody is asking now. Before we attempt to answer that, it is instructive to examine what caused prices to race ahead in the last one year.

The obvious answer was the government's four trillion yuan (S$816 billion) stimulus package introduced to support the economy in view of the collapse in exports. In his weekly market report recently, Tan Teng Boo of Capital Dynamics outlined how the stimulus package led to the rapid increase in property prices last year.

As part of the stimulus package, the central government ordered banks to turn on the tap to give loans freely. Last year, China's financial institutions extended 9.59 trillion yuan in new credit. Of that, 1.4 trillion yuan went to individual housing loans and 576.4 billion yuan to housing development loans.

At the same time, the government was carrying out its stimulus programmes through the state-owned enterprises (SOEs). With slacking demand, many SOEs found themselves with excess capacities. Where to put the money that the government has injected? Since the property market has a reputation of generating quick and high returns, it became the natural choice for the SOEs to channel the extra money that they had received. Many SOEs established new business entities to venture into the lucrative property market. The participation of the SOEs with deep pockets into the property market initially sent land prices sky high. This subsequently led to elevated house prices.

Two, with the real economy slowing down significantly, some businesses decided to get out of their original business activities and instead used the profits that they had made in the past few years to invest in the property market. The switch gave further impetus to the property market. And three, in addition to the measures provided in the stimulus package to accelerate the construction of low-cost housing, the government also introduced other preferential policies in 2008-2009, directed specifically at the property sector. These included:

* Cutting the deed tax rate for first-time buyers of houses under 90 sq m from 3.5 per cent to one per cent;

* Exempting stamp duty on property purchases;

* Exempting land value-added tax on property sales;

* Cutting the minimum down payment for first-time home buyers to 20 per cent from 30 per cent;

* Cutting the interest rate for personal housing provident fund loans from 4.32 per cent to 4.05 per cent for five-year loans; for loans above five years, the reduction was from 4.86 per cent to 4.59 per cent;

* Cutting the interest rate on mortgages to 70 per cent of the benchmark lending rate;

* Reducing the ownership period eligible for tax exemption for sales of homes by individuals from five years to two years.

All the above measures drew in droves of buyers. Prices climbed. Then there was the hot money. China's economy bottomed out in the first quarter of 2009.

According to Mr Tan, when it became apparent that economic activities have been successfully revived by the Chinese government's aggressive expansionary policies, hot money began to flow in to take advantage of the opportunities presented by the fact that China's economy would recover earlier and faster than the other economies. In 2009, China's trade surplus fell US$99.4 billion from 2008, yet its foreign exchange reserves surged by US$453.1 billion to US$2.4 trillion. The strong inflow of hot money also played a role in pushing up property prices.

Meanwhile, there are compelling factors which ensure a strong and sustained domestic demand for property. First, the rapid rate of urbanisation. According to Lu Dadao, president of the Geographic Society of China, China took 22 years to increase its urbanisation rate from 17.9 per cent to 39.1 per cent. It took the UK 120 years, the United States 80 years and Japan more than 30 years to accomplish the same feat. With the relaxation of the household registration system, more and more people are moving to the cities, creating strong demand for urban housing.

Meanwhile, the psychological make-up of the Chinese, coupled with the lack of options in which to grow their nest eggs, make real estate an attractive place to park one's money. Real estate is like the proverbial bar of gold. In a recent article, Time magazine interviewed a taxi driver in Shanghai who owns three apartments in the city. He hasn't tried to rent out two of his three apartments, saying: 'It's not that important to gain income from them; there is security in just owning them. They are paid for, and I know that if I ever get into any kind of economic trouble, I can sell them. That's real security.'

Real estate makes for a good hedge against inflation given the sharp expansion in money supply in 2009. That many are using their savings to pay for the apartment is supported by the statistics that China's mortgage market constitutes only about 10 per cent of its gross domestic product. This compared with 48 per cent for Hong Kong. Keeping money in the bank yields only 2.25 per cent in a one-year fixed deposit.

Now, of course, the government is trying to reverse some of the policies. The question is, is it too late? For that, we need to answer how far ahead of fundamentals have property prices gone in China. In Japan, in the four years right before its property bubble went bust the average growth rate of residential land prices in the country's six major cities was 25 per cent. China's appreciation is nowhere near that.

And while the growth rate in US house prices in the 10 years before the sub-prime crisis broke out was not as strong as that of Japan's, it was stronger and more sustained than that of China's.

The worrying thing is, China's prices are catching up fast. House prices in 70 large and medium-sized Chinese cities climbed 3.9 per cent in October last year. The pace of increase picked up to 5.7 per cent in November, and yet even higher to 7.8 per cent in December. In January this year, the number was a 9.5 per cent rise from one year earlier, the fastest growth in 19 months.

The government, it seems, will have to come up with harsher measures to cool things down. The consolation is, the consequences of a reversal in property prices would not inflict that great a pain in the Chinese economy given the lesser extent of credit being used in the market.

In China, personal savings and parental contribution are the two major sources of financing for home purchases. According to Patrick Chovanec, a professor at Beijing's Tsinghua University who studies the Chinese real estate sector, only about 50 per cent of residential purchases are made using mortgages. The other half are paid for in full at the time of acquisition. (In the US, by contrast, over 90 per cent of residential housing transactions are financed with mortgages.) Wong Kok Hoi of APS Asset Management is of the view that if prices were to decline 20 per cent, a portion of the Chinese people's substantial savings would be moved to the property market.

Even if prices were to decline by 30 per cent, the majority of home-owners would still not walk away from their mortgage obligations, as we saw in the US, because they still have positive equity in their homes, reckons Mr Wong. In that scenario, Shanghai-based banks would see their non-performing loans rise to 2 per cent and their profits impacted by 7 per cent.

All in all, it seems the bubble trouble in China is not as big as a lot of people fear it to be.

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.



VALUABLE ASSET
In China, property is like the proverbial bar of gold, and a good hedge against inflation given the sharp expansion in money supply last year.

CNA : HDB takes action against 56 flat owners for illegal sub-letting

HDB takes action against 56 flat owners for illegal sub-letting
By Mustafa Shafawi | Posted: 12 March 2010 1946 hrs

SINGAPORE : The Housing and Development Board (HDB) has taken action against 56 flat owners for illegal sub-letting between January 2008 and December last year.

Most were fined between S$1,000 and S$21,000.

One owner had his flat repossessed for blatantly flouting HDB's sub-letting rules.

Giving details of the case, HDB said it first received feedback on the unauthorised sub-letting of a unit in Block 336 Bukit Batok Street 32 on November 11 last year.

The flat was bought by Poh Boon Kay, who is a registered real estate agent. His wife was listed as an occupier.

He purchased the four-room flat from the open market in June 2007 without any loan.

HDB said the couple are also owners of five private properties. Its investigations found that the flat was sublet without its prior approval to three couples.

Mr Poh and his family did not live in the flat.

He was informed on November 25 to take immediate steps to evict the unauthorised sub-tenants, failing which HDB would take compulsory acquisition action.

However, the subtenants continued to occupy the flat. A notice to compulsorily acquire the flat was then served on December 23.

Mr Poh informed HDB on the same day that the sub-tenants had signed an undertaking to vacate the flat by the end of December.

A day later, the couple appealed. He claimed that the sub-tenant needed time to work out his finances before buying over the flat from Mr Poh.

He had therefore decided to rent out the flat to the sub-tenants in the interim.

On January 5, when the couple was interviewed by HDB, they claimed they did not know that they needed to seek the board's prior approval before subletting the flat.

They also claimed that they were not aware of the policy for flat owners to fulfil the Minimum Occupation Period (MOP) of three years before they were eligible to sublet the whole flat.

HDB's further investigations have shown that Mr Poh is also related to two other cases of unauthorised subletting at Bukit Batok and Telok Blangah.

With these further instances of unauthorised subletting related to Mr Poh, his claims that he is "unaware" of HDB rules cannot be substantiated.

HDB said as he has blatantly flouted HDB's rules, there are no grounds for leniency and legal action has been taken to compulsorily acquire the flat.

HDB will also be taking legal action to compulsorily acquire the other two flats.

HDB would like to emphasise the severity of unauthorised subletting. HDB flats are meant for owner occupation. Flat owners who wish to sublet their whole flat must obtain approval from HDB and fulfil the MOP.

The current MOP for the subletting of flats is as follows:

*Flats bought directly from HDB - 5 years

*Resale flats purchased with CPF Housing Grant - 5 years

*Resale flats purchased without CPF Housing Grant - 3 years

- CNA/ms

CNA : URA to launch sale of residential site

URA to launch sale of residential site
By Mustafa Shafawi | Posted: 12 March 2010 1439 hrs

SINGAPORE: Another Reserve List site has been triggered.

The Urban Redevelopment Authority (URA) said it will launch for sale a residential site at the junction of Upper Changi Road North and Flora Drive in two weeks' time.

It said a developer has committed to bid no less than S$82 million for the three-hectare site. The minimum price is acceptable to the government.

URA said the land parcel can yield 390 units.

Some analysts said the top bid for the Upper Changi Road North site could range between S$160 million and S$185 million.

That would translate to about S$350 to S$400 per square foot per plot ratio.

A residential site at Sengkang West Avenue has already been sold via the Reserve List in February.

Together these two sites can potentially yield about 855 residential units.

There are another 16 residential sites remaining on the Reserve List of the first half of 2010 Government Land Sales (GLS) Programme that can potentially be triggered for sale.

- CNA/sc/ms

CNA : Govt amends Stamp Duties Act

Govt amends Stamp Duties Act
By May Wong | Posted: 12 March 2010 2146 hrs

SINGAPORE: Parliament has passed changes to the Stamp Duties Act. The amendments will give legislative effect to the seller's stamp duty, which was re-introduced on February 20 as one of the measures to discourage property speculation.

Those who sell their residential properties and residential lands within one year of purchase February 20 will have to pay a duty of one per cent for the first S$180,000, two per cent for the next S$180,000 and three per cent for the balance.

Speaking at the second reading of the bill on Friday, Finance Minister Tharman Shanmugaratnam said the government first introduced the seller's stamp duty in 1996 to cool the overheating property market.

It was subsequently suspended in November 1997. Relevant provisions in the Stamp Duties Act were subsequently repealed in 2005.

Another key change - the government will now be able to introduce, vary or remove the seller's stamp duty, via a Ministerial Order that will be published in the Government Gazette.

The Finance Minister said the process of introducing and repealing provisions in the Stamp Duties Act each time the government wants to introduce, vary or remove the duty is not efficient, especially when it has to respond to changes in the property market cycle in a timely and calibrated manner.

Mr Tharman stressed that the government does not intend to change the seller's stamp duty liberally.

He said: "Any future change to the seller's stamp duty will be a carefully considered decision, taking into account all prevailing and projected factors at the time.” - CNA/vm

ASIAONE : Housing agent sublet flat illegally three times

Housing agent sublet flat illegally three times

HDB will now acquire his flat as they step up enforcement against illegal sub-letting. -AsiaOne

Fri, Mar 12, 2010
AsiaOne

In 2007, Mr Poh Boon Kay, a registered real estate agent with five other properties, bought his 4-room Bukit Batok flat at $150,000 without any loans, listing his wife, Mdm Khoo Kim Cheng as occupier.

However, in November 2009, the Housing and Development Board (HDB) discovered that Mr Poh was actually subletting the flat - without HDB's prior approval - to 3 Burmese couples (six adults and one child) at a monthly rent of $1,900. Mr Poh and his family were not residing in the flat.

Two weeks later, HDB informed him that unless the unauthorised sub-tenants are evicted, HDB would take compulsory acquisition action. As the subtenants continued to stay in the flat, a Notice of Board's Intention to compulsorily acquire the flat was served on December 23. On the same day, he said the sub-tenants had signed an undertaking that they would vacate the flat by the end of December.

Mr Poh appealed the next day, claiming that he rented out the flat to the sub-tenants while they worked out their finances in order to buy the flat from him.

When interviewed, he and his wife claimed they did not know that they needed to seek prior approval from HDB before subletting the flat, or that they needed to fulfill the Minimum Occupation Period (MOP) of three years before they are eligible to do so.

Two other cases of illegal sub-letting

HDB subsequently discovered that Mr Poh is related to two more cases of unauthorised sub-letting.

In the second case, he acted as the housing agent for his 91-year-old aunt, whose flat was sublet without HDB's approval to Burmese monks at a monthly rent of $1,400 since July last year. They had used it as a meditation centre, with monthly rents paid out to Mr Poh.

The third case involved his daughter's Telok Blangah flat which was again sublet without HDB's consent to subtenants for $900 a month.

According to a statement released by the HDB, "With these further instances of unauthorised subletting related to Mr. Poh, his claims that he is "unaware" of HDB rules cannot be substantiated. Furthermore, these regulations are publicly available from many sources such as HDB's InfoWeb or service hotline. There is clear evidence that Mr Poh, a housing agent by profession, has been intentionally abusing HDB flats for monetary gains."

HDB has now taken legal action to compulsorily acquire Mr Poh's flat. It plans to take the same action towards his aunt's and daughter's flats as well.

HDB ramps up enforcement against unauthorised subletting

In its statement, HDB said it 'would like to emphasize the severity of unauthorised subletting'.

It said it would take action in those who commit this infringement, from penalties that ranged from fines of $1,000 to $21,000, to repossession of flat. 56 owners have received these penalties from January 2008 to December 2009.

Flat owners who wish to sublet their whole flat must obtain approval from HDB and fulfil the Minimum Occupation Period (MOP). The current MOP for the subletting of flats is as follows:

Flats bought directly from HDB: 5 years
Resale flats purchased with CPF Housing Grant: 5 years
Resale flats purchased without CPF Housing Grant: 3 years
They must also comply with HDB's terms and conditions. For instance, the maximum number of subtenants allowed. 1-Room and 2-Room flats are allowed a maximum of four persons, 3-room flats can have 6 persons, while 4-Room and bigger flat types can have 9 persons in total.

Residents are encouraged to call our dedicated hotline at 1800-5556370 [Monday to Friday - 8am to 5pm] to report any suspected cases.

TODAY ONLINE : Land parcel at Woodlands Avenue 12 up for public tender

Land parcel at Woodlands Avenue 12 up for public tender

05:55 AM Mar 12, 2010

SINGAPORE - A land parcel at Woodlands Avenue 12 is set to be launched for public tender by the end of the month.

The Urban Redevelopment Authority (URA) said it had accepted an application from a developer which had committed to bid a price of not less than $25 million for the industrial site.

The land parcel was made available for sale through the Reserve List System last year.

Under the system, the Government will put up a Reserve List Site for public tender if it receives an application from a developer who commits to bid for the site at or above the minimum price which is acceptable to the Government.

The land parcel has a site area of about 3.2 hectares and a maximum gross plot ratio of 2.5. It is accessible via a network of roads such as Woodlands Avenue 12 and Seletar Expressway. Admiralty MRT is located about 600 metres from the site. It can be developed for a variety of uses under "Business 1" zoning, which includes clean and light industries. The site has a lease period of 60 years.

URA will launch the public tender for the site in about two weeks.

Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved

ST Forum : Leasing checklist for foreigners and bosses hiring them

Mar 12, 2010

Leasing checklist for foreigners and bosses hiring them

WITH reference to yesterday's report, 'Agent targeted foreigners in rental scam', we would like to offer the following guide to employers recruiting foreign talent as well as individual foreigners who are leasing residential properties in Singapore.

· Request for verification of property ownership such as the latest property tax statement or utilise the e-Valuation List service at the Internal Revenue Authority of Singapore (Iras) website to find out the name of the property owner for $2.50.

· If the property is an HDB flat, request for a copy of the Housing Board's approval letter to the landlord for subletting.

· Avoid paying a security deposit and advance rent by cash or cash cheque. Make out the cheque payable directly to the landlord. If you have no cheque account, buy a cashier's order with the appropriate payee's name.

· Whenever possible, make an appointment to meet the landlord to satisfy yourself that the prospective lease is in good faith.

· When responding to Internet advertisements, ensure that the source of the advertisement is from a credible website or property portal. If in doubt, contact the agency of the estate agent who posts the advertisement online to ensure it is not a hoax.

· Be aware of comparative rentals in the area where one is planning to lease a flat/ apartment and be wary of anyone who touts an incredibly low or attractive rental.

· Be sure that tenancy agreements signed are stamped by Iras as it is an offence to evade stamp duty on tenancy agreements. Moreover, if the tenancy agreement is not stamped, it may not be admissible in a court of law in the event of a legal dispute.

· Appoint an accredited estate agent or an agent from an accredited agency who has professional indemnity insurance.

Dr Tan Tee Khoon
Chief Executive Officer
Singapore Accredited Estate Agencies

ST : China firm tops bid for EC site

Mar 12, 2010

China firm tops bid for EC site

MCC's $281 psf bid for Yishun site beats experts' forecast of $150-$210 psf

By Joyce Teo

A CHINESE firm new to Singapore's residential development scene has topped the bidding for an executive condominium (EC) site in Yishun.

Beijing-headquartered MCC Land (Singapore), which lost out on last week's tender for an EC site in Sengkang, was the highest bidder for the 15,074 sq m Yishun plot.

Its $127.8 million bid, or $281.31 per sq ft (psf) of gross floor area, easily beat earlier analysts' expectations of $150-$210 psf of gross floor area.

Qingdao-based firm Qingjian Realty - which is behind the Natura Loft HDB design, build and sell scheme in Bishan - came in second, with a bid of $118.89 million or $261.71 psf of gross floor area.

Maxdin, part of United Engineers' unit Greatearth Holding, was edged into a close third place with its offer of $117 million or $257.53 psf of gross floor area.

Among the other unsuccessful contenders were Far East Organization, Sim Lian Land and Boon Keng Development.

Most bidders also tendered for the Sengkang site last week.

Many of them are construction companies with the know-how to control and manage building costs, and are well placed to keep development expenses as low as possible, experts noted.

'The results of this second EC site tender demonstrate developers' fervour in acquiring sites for mass-market housing,' said CBRE Research executive director Li Hiaw Ho.

MCC Land is part of listed Metallurgical Corporation of China, one of the world's largest engineering and construction firms.

It has provided engineering and construction services in Singapore, and in 2008 clinched a contract for Universal Studios Singapore at Resorts World Sentosa. Qingjian Realty also began operations here as a contractor.

The Yishun EC plot can yield about 385 units and is near the completed Lilydale EC project. In the resale market of January-February this year, units there were selling at between $510 psf and $540 psf.

Although not within walking distance of an MRT station, the Yishun site is close to Yishun Park, Orchid Country Club and Lower Seletar Reservoir.

CBRE Research said the winning bid will translate into a break-even price of around $520 psf.

At this level, the final selling price of the EC units is likely to be around $600-$650 psf, said Colliers International's executive director of investment sales Ho Eng Joo.

The winning bid, he said, took its cue from last week's Sengkang EC tender, which attracted a higher-than-expected top bid of $315 psf of gross floor area.

Mr Li said the success of the recent launch of The Estuary private condominium in Yishun Avenue 1 had boosted developer confidence in selling EC projects in this location to first-timers. Over 500 units of The Estuary were reportedly sold at a price of $750-$800 psf, he said.

The winners of the Sengkang and Yishun EC tenders have to set aside 95 per cent of units in the initial month of sale for first-time home buyers.

ECs were introduced in 1995 to bridge the gap between public housing and private apartments. Only those with a gross monthly household income of $10,000 or less can apply.

joyceteo@sph.com.sg

CNA : EC site at Yishun Ave 11 attracts 10 bids

EC site at Yishun Ave 11 attracts 10 bids
By Wong Siew Ying | Posted: 11 March 2010 2307 hrs



The site at Yishun Ave 11 earmarked for executive condo development

SINGAPORE: The executive condominium site at Yishun Avenue 11 has attracted 10 bids.

MCC Land Singapore put in the top bid of $127.8m for the 99-year leasehold plot. This translates into S$281 per square foot per plot ratio.

The second highest bid came from Qingjian Realty, at S$118.8m, followed by Maxdin Pte Ltd which placed a bid of S$117m. The remaining offers range between S$46.8m and S$116m.

Real estate consultancy firm CB Richard Ellis says the tender results show that developers in Singapore are keen to acquire land for mass market housing.

An earlier tender for an EC site at Compassvale Bow had attracted 11 bids.

CBRE also noted that developers may have been more confident, following the success of The Estuary project which was launched recently at Yishun Avenue 1.

CBRE said the top bid of $127.8m for the latest EC site will work out to a breakeven price of S$520 psf.

- CNA/ir

CNA : Govt building vacancies in CBD could open half a million square feet of space

Govt building vacancies in CBD could open half a million square feet of space
By Desmond Wong | Posted: 11 March 2010 2133 hrs

SINGAPORE: About half a million square feet of office space in the core business district and fringe areas could become available when government bodies move out of Singapore's city centre by 2015.

Experts said that with occupancy in the CBD bouncing back after the downturn, the space will be sorely needed.

Government agencies such as the Ministry of National Development will be moving out of their premises in the CBD by 2015.

And when that happens, they could be leaving behind as much as half a million square feet of real estate space.

While this could present an opportunity for market players and tenants to pick up a bargain, experts said full redevelopment will be needed, for these properties to reach full commercial potential.

Chris Archibold, regional director, Head of Markets, Jones Lang LaSalle, said: "It's going to be a land sale and a total redevelopment. That's probably the most likely scenario. A top up of the land lease so that they're a 99 year lease, then a sale to the private sector so the buildings can be redeveloped to international standards and specifications.

“I think releasing a number of those buildings in their existing condition, the older ones, is not necessarily a good thing."

The government bodies that are slated to move include the Ministry of National Development, the Agri-Food and Veterinary Authority, the Building and Construction Authority and the Ministry of the Environment and Water Resources.

Office occupancy rates within the CBD have hit 93 per cent in recent months, their highest levels in a year.

And property-watchers said the additional space left vacant by the government agencies will help to relieve growing pressure on demand for prime office space.

They expect supply to be tight, even with additional space at the Marina Bay Financial Centre.

Donald Han, managing director, Cushman & Wakefield, said: "There will be a scenario of supply overhang that flows into the year but the scenario is that landlords are becoming more confident of the market.

They're no longer dropping rentals as fast as they did 12 months ago. On top of that, if you look at the economic prospects, a lot of tenants are looking into an expansionary process, looking to increase head count."

And with little new space in the pipeline after 2013 in both the fringe and non-core CBD areas, experts said the government's plan to move out within three to five years is timely because it gives developers additional time to figure out what to do with the area once it becomes available.

CNA : Industrial site at Woodlands Ave 12 put up for public tender

Industrial site at Woodlands Ave 12 put up for public tender
By Jonathan Peeris | Posted: 11 March 2010 1504 hrs

SINGAPORE: The government has accepted an application from a developer to put up an industrial site at Woodlands Avenue 12 for public tender.

The Urban Redevelopment Authority (URA) said it has received an application from a developer who has committed to bid a price of not less than S$25 million for the land parcel.

The land parcel has a site area of about 3.2 hectares and a maximum gross plot ratio of 2.5. It can be developed for a variety of uses under "Business 1" zoning and has a lease period of 60 years.

URA will launch the public tender for the site in about four weeks.

The land parcel was made available for sale through the Reserve List System.

Under the system, the government will put up a Reserve List Site for public tender if it receives an application from a developer who commits to bid at or above an acceptable minimum price.

- CNA/sc

Motivation Articles : Suspect, Prospect or Customer?

Suspect, Prospect or Customer?

Achieve better results by identifying the potential sale…..

FINDING leads to convert into sales is probably the most daunting part of a sales job. Good-quality leads are known as prospects, and they are what make sales possible.
Clearly, prospects are more than just a fancy pipe-dream of every stressed-out sales executive.
In fact, top sales professionals know to avoid wasting precious time and effort chasing leads that ultimately prove to be invalid.
Here is a four-step checklist to quickly and efficiently weed out dead-end leads and create a strong list of quality prospects.

1. Know who among your target audience will buy, and who won’t
To achieve the best results, you must learn to differentiate clearly between “suspects”,”prospect” and “customer”.
• A suspect is defined as someone who you think may have a need for your product.
• A prospect is someone who may buy from you. A suspect turns into a prospect if he signals:
1. a need or desire for your product,
2. the money and/or decision-making power to make a purchase, and
3. willingness to meet you to discuss a possible transaction.
• A customer is someone who has bought from you. Keep in mind that a customer may also have a need for other products you offer, and so becomes a prospect for these other items.
Prospecting, then, means to screen suspects into “prospects” or “non-prospects”.
By doing so, you then become certain about who on your list deserves your priority, moving on to the next stage of the sales process with the “prospects” group.
2. Refine you list further
To maximize your results, refine your list further to save time and effort.
In doing so, keep in mind that you want to zero in on the top-priority targets. Therefore, focus on need, clout or authority and willingness to purchase.
Strike out all suspects who :
• Have already obtained a similar product from a competitor; they would not have the need or want for your product in this case.
• Do not have the budget to buy from you due to impending insolvency, troubled finances or a freeze in spending. The exception is if your products are meant to help struggling companies.



3. Perform your initial prospecting
Having weeded out the dead-ends, your list now contains only good-quality suspects.
Follow these steps to help you start mining :
• Start by calculating how many suspects you need to convert to prospects to meet your sales quota. Work out how long it will take to convert the target number of suspects (determined above) into prospects.
For example, if cold-calling 10 suspects results in one prospect, and you need 30 prospects to make quota, then you need to cold-call 300 suspects.
Assuming you spend two-minutes on each cold call, you will need to spend a total of 10 hours cold-calling to reach your target number of suspects.
• Create a conversational script to use during a cold call to check whether your suspect has the need, budget and purchasing power.
• Cold calling can be daunting and demands the best from you. Take the time and space to prepare yourself for victory.
• You need to reach your goal of calling your target number of prospects. No ands, ifs or buts. So make certain that you are not disturbed. Then make your calls.
Remember that this part of the sales process is about prospecting, not selling, so resist the temptation to rattle off the benefits of your product.
But if the suspect brings up the desire to purchase, seize the opportunity to close the sale.
At the end of your prospect calling, you will have a list of prospects that will allow you to meet your quota.


4. Power tips for prospecting
Use the following tips to accelerate and improve the efficiency of the prospecting process described the Steps 2 and 3 above.
• Work from highest-quality suspect list you can find. The likelihood of a higher conversion rate from suspect to prospect increases with the amount of pre-qualification done. A list populated with referrals from existing customers is the best suspect list.
• Watch your timing. Motivation and attitude play a huge part in the quality of the cold calls you make. Being sensitive to the best time for cold calling makes the process more productive for both you and your suspect.
• Clos at all costs! When you become more effective at closing and selling, you won’t need to generate as many prospect to meet your quota.
If you fail to pay attention to your ability to close the sale, your competitors will benefit from the priming effect your sales efforts have created.
Always remember that a prospect is ready and willing to buy from someone. Let that someone be you.


Article by Aslam Sardar, managing director of The 8th Pinnacle, a training and consultancy firm that specializes in team-building, leadership, change management sales, negotiation and communication. For details, call 6323-1680, email aslam@8pinnacle.com or visit www.8pinnacle.com

ST : Record prices eyed for West Coast condo

Mar 11, 2010

Record prices eyed for West Coast condo

The Vision units to be priced mostly at $1,000-$1,200 psf during preview

By Joyce Teo

ONE of Hong Kong's biggest developers, Cheung Kong, has made its intentions clear for a sleepy mass market corner of the West Coast.

It is asking what would be - if achieved - record prices for the area at a preview for The Vision, on West Coast Crescent.

The preview, starting tomorrow, involves the release of up to 100 units mostly priced at $1,000 to $1,200 per sq ft (psf). This puts the starting price for an 818 sq ft two-bedder at nearly $900,000.

Cheung Kong's vision is to develop a high-end project to be the area's most luxurious building, said sales manager Cannas Ho at a media briefing yesterday: 'We're not building a mass product, we're building a high-quality product.'

That may explain the relatively high pricing for a project in something of a backwater. A property expert noted there is no particular MRT advantage there.

Experts said if the units sell at the asking prices, it would be a record for the West Coast area.

Next door, Blue Horizon registered seven deals this year at $764 to $841 psf.

Last year, Far East Organization made the news when it launched the 329-unit Centro Residences in Ang Mo Kio at over $1,100 psf - a suburban record.

Ms Ho said it is targeting upgraders, families and expatriates, and has fielded more than 1,000 inquiries in the past fortnight.

A second phase will be offered by year-end. Pricing depends on the market then, 'but we must adjust it upwards', she said.

She said The Vision, to boast 281 apartments and 14 strata terrace units, is near the science and lifestyle hub one-north, and educational institutions.

The apartments are mostly between 818 sq ft and 1,604 sq ft, with two four-bedroom penthouses at 2,702 sq ft each. The two-bedder is the smallest unit.

Cheung Kong is packing The Vision with stylish fittings and branded appliances designed to give the 99-year leasehold project a luxurious vibe.

For instance, the kitchen comes with a Smeg induction cooker and electric oven and the bathroom has a Hansa rainforest shower with body jet.

A clubhouse, Sky Paragon, is on the top floor of the 33-storey building, with a gym, spa, bar and function room.

At the preview, Cheung Kong will release up to half of the 14 strata terrace units, each with a built-up area of about 5,000 sq ft. Interested parties will have to submit offers, said Ms Ho.

Cheung Kong clinched the site in a state tender in March 2008 with a bid of $305 psf per plot ratio (ppr). Last year, the developer paid a much higher than expected sum of about $533 psf ppr for an Upper Thomson Road plot.

Meanwhile, Sing Holdings will hold a preview of its 229-unit The Laurels at Cairnhill Road this weekend, concurrently in Singapore and Jakarta, while Tiong Aik will preview Coralis near Marine Parade tomorrow.

About 100 The Laurels units will be released with typical units priced at $2,600 to $3,050 psf.

Over 80 units have been sold since the first special sale to ex-owners, staff and business associates was held late last month at $2,500 to $2,900 psf.

joyceteo@sph.com.sg



An artist's impression of The Vision in West Coast Crescent. The apartments are mostly between 818 sq ft and 1,604 sq ft. -- PHOTO: CHEUNG KONG

CNA : Second-best place for expats to raise kids

Second-best place for expats to raise kids
Posted: 11 March 2010 0726 hrs

SINGAPORE: The talk may be all about how to help foreigners fit in Singapore, but children of expatriates here seem to find it relatively easy to integrate.

Some 56 per cent of expat parents said their children are more socially integrated here than they were in their home countries, according to the world's largest survey of expats, Expat Explorer.

Not only did 71 per cent say their kids adapted "really well" to the education system here (compared to the global average of 49 per cent), 65 per cent said their children found it easy to make new friends (global average 50 per cent).

Expat kids fit in easiest in Australia. In contrast, expat kids in the United Kingdom and United States struggled the hardest to make friends and integrate.

These were the findings of the second annual survey issued by HSBC Bank International, which polled over 3,100 expats from more than 50 countries.

Overall, Singapore was ranked next best, behind Australia, for expats to raise a family. Nine in 10 expat parents living here felt they had moved to a safer, more childcare-friendly place for their youngsters.

Three in four said education standards were better than in their home country (global average 56 per cent), while 70 per cent felt childcare had improved since moving here (global average 50 per cent).

But the Republic was also rated one of the most expensive place to raise a child - 60 per cent said they now spend more on childcare.

As for providing an environment to raise healthy kids, expat children in Singapore ate the least junk food, according to the survey. But over a third tended to spend less time outdoors and playing sports after moving here.

Overall, the UK was indicated as the worst country for childcare and education.

Agreeing with the survey's findings was one expat based here - Mr Sebastian Arcuri, HSBC Bank International's head of personal financial services.

"As a father of three young children, all born in Singapore, I have been able to experience first-hand how child-friendly Singapore is and can vouch for the high standard of childcare available here," he said.

"I found it easy to enroll my children in local kindergartens and international schools, which provide a quality education as well as a conducive environment for them to make new friends and integrate into the community here ... Having lived in five different countries, I think Singapore is a great place to raise children and I am very glad the survey confirms this."

ST : Sports Hub on schedule

Mar 11, 2010

Sports Hub on schedule

By Rachel Lin

CONSTRUCTION of the much-postponed Sports Hub is still on track to begin in the middle of this year, Mr Teo Ser Luck, Senior Parliamentary Secretary at the Ministry of Community Development, Youth and Sports, said yesterday.

The entire complex should be up and running by the end of 2013 or early 2014, which is in line with the new target date set last November.

The Sports Hub, a $1.87 billion mega-project built through a public-private partnership, was originally slated to open this year. It would have been the venue of the 2013 SEA Games, had rising construction costs and last year's financial downturn not scuppered attempts to get it off the ground.

As it became harder to raise funds for the project, the hub's completion date was pushed back to next year, 2012 and now 2013. These delays forced Singapore to pull out of hosting the 2013 SEA Games last December.

Mr Michael Palmer (Pasir Ris-Punggol GRC) expressed frustration at the repeated postponements. 'We have had many final matches at the National Stadium and frankly, it's becoming a bit of a joke.'

The House was assured by Mr Teo that no further delays were expected. The consortium building the hub - Singapore Sports Hub Consortium - held a funding competition late last year and banks have shown considerable interest, he said.

Mr Teo defended the hub's public-private partnership model, saying it was not to blame for the delays.

'It harnesses the efficiencies, innovation, energy and financial rigour of private sector enterprise and banks to bring about a vibrant, compelling, viable and fully utilised public facility,' he said.

TODAY ONLINE : No hike, say some town councils

No hike, say some town councils

05:55 AM Mar 11, 2010

by Ong Dai Lin

SINGAPORE - Residents in at least seven People's Action Party (PAP) town councils can breathe a sigh of relief for the time being.

Despite rising electricity prices and maintenance costs, these town councils tell MediaCorp they will not be raising Service and Conservancy Charges (S&CC) for now. They are Ang Mo Kio-Yio Chu Kang, Bishan-Toa Payoh, East Coast, Holland-Bukit Panjang, Jalan Besar, Sembawang and Tampines.

This assurance comes after Aljunied and Jurong town councils revealed last week that they were increasing S&CC from next month. The town councils said that although their funds are sufficient to stave off a hike for now, a raise is inevitable in the future as costs keep growing.

Tampines Town Council chairman Masagos Zulkifli said: "We have no plans to raise S&CC fees at the moment but we are spending a lot of our funds on the Lift Upgrading Programme (LUP) and beautifying the place as Tampines is a relatively old town."

Mr Hawazi Daipi, chairman of Sembawang Town Council, said: "We've studied our finances and there is a need to consider increasing the fees in the future. But we want to hold on to the current fees for as long as possible ... despite the increasing costs."

To keep power bills down, the town council had in 2008 embarked on an energy-saving campaign, replacing 630 fluorescent-illuminated block signs with more energy-efficient LED ones. The lights in every other staircase landing were also turned off after midnight.

The last time all 14 PAP town councils raised S&CC was in 2004. In 2008, they had decided against another hike, following the Government's lead in freezing fees for its services because of high inflation.

Last year, because of the recession, Jurong Town Council held off increasing conservancy fees - but, MP Halimah Yacob (Jurong GRC) told MediaCorp, "costs incurred over the last few years mean that if we don't increase the fees … our service quality will be affected".

And yes, the town council does make use of energy-saving measures, but even so the rising costs impact each town council differently. "Some towns are newer and the cyclical maintenance costs are lower," explained Mdm Halimah.

Mr Hawazi agreed: "Their profiles and needs vary, and they will have different cost structures as well."

The other five PAP town councils - Hong Kah, Marine Parade, Pasir Ris-Punggol, Tanjong Pagar and West Coast - did not reply to MediaCorp queries by press time.

Hougang and Potong Pasir town councils, which are under the purview of the Workers' Party and Singapore People's Party respectively, also did not respond by press time.

Both had increased conservancy fees in 2007 by $2 to $9 and $2.50 to $8 per month, respectively.

Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved

ST : Agent targeted foreigners in rental scam

Mar 11, 2010

Agent targeted foreigners in rental scam

A PART-TIME property agent duped eight foreigners in a rental scam and collected nearly $22,000 for herself and her accomplices.

Razieya Mohamed Ali was jailed for 11 months by a district court yesterday.

From November 2008 to February last year, the 34-year-old divorcee would post flats-for-rent advertisements on the Internet and invite foreigners working here to view the premises.

To entice them to sign the tenancy agreement after they had seen the flats, she would offer very low rents. She knew that the flats were occupied and by the time her victims found out, she and her accomplices would be long gone.

However, the police tracked her down.

She initially denied the charges and on the first day of the trial on Nov 30, her friend turned up instead. She claimed that Razieya had been raped by her former husband and was in no condition to attend court proceedings.

No police report or medical certificate was offered.

Assistant Public Prosecutor Santhra Aiyyasamy said yesterday that Razieya did not attend any police interview to substantiate the accusation.

Yesterday, the prosecutor asked for a deterrent sentence as Razieya had targeted foreigners, who were vulnerable to such scams.

Two of her accomplices were dealt with last year. Axley Alexander Ryan Shah, 40, a serial offender, was sentenced to six years' jail while Letchimi Kasinathan, 52, was sentenced to 2 1/2 years.

A third accomplice, Arul Rajoo Michael Rajoo, 39, remains at large.

The court heard that in January last year, he hatched a plan with Razieya and Ryan to offer his leased flat for rent to foreigners and to cheat them of the deposit and rental. Their victims included Chinese, Filipino, Indian and Myanmar nationals.

Razieya also conspired with Letchimi, whose son stayed in a rented flat in Lengkok Bahru, near Jalan Bukit Merah. Without his knowledge, they offered it to Mr Jun Ojima, 43, a Japanese working here as a golf coach, for $1,000 a month on Jan 1 last year.

He handed over a deposit of $1,000 but two days later, he complained that the rent was too high and the two women lowered it to $700 on the condition that he pay up six months in advance.

Payment was made but before he could move in, Razieya cancelled the agreement.

BT : Grand Park Orchard to open in July

Business Times - 11 Mar 2010

Grand Park Orchard to open in July

(SINGAPORE) Grand Park Orchard - formerly known as Park Hotel Orchard - will be opening its doors in July after an $80 million makeover.

The five-star 308-room hotel at Orchard Road is Park Hotel Group's flagship property. Room rates are expected to be around $350 per night.

Grand Park Orchard will bring more sparkle to the shopping belt with an eight-storey-tall media wall. It will also add to food and beverage establishments in the area, with all-day restaurant Open House serving pizzas, dim sum, sandwiches, claypot dishes and roast meat; the Champagne Bar serving Veuve Clicquot cocktails; and the Onyx Bar.

Shoppers can also look forward to the opening of Grand Park Orchard's four-storey retail podium, Knightsbridge.

Park Hotel Group has positioned Knightsbridge as a space for luxury brands, and it will soon reveal the names taking residence.

It said that it has secured pre-commitments for more than 50 per cent of the space so far.

Park Hotel Group director Allen Law said that Grand Park Orchard 'represents the aspirations of the group as we scale the heights to be the leading hospitality chain in the Asia-Pacific'.

The hotel owner, developer and manager has eight properties across three countries. These include Park Hotel Clarke Quay and Grand Park City Hall in Singapore.

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.



Five-star luxury: The 308-room hotel is Park Hotel Group's flagship property; room rates are expected to be around $350 per night

BT : Sun Plaza goes on the market for over $300m

Business Times - 11 Mar 2010

Sun Plaza goes on the market for over $300m

Investment buzz in shopping centre scene; Alpha takes stake in Katong Mall

By KALPANA RASHIWALA

THE shopping centre investment scene seems to be abuzz. At least one property is being put on the market officially.

Sun Plaza, located between Sembawang MRT station and bus interchange, will be marketed through an expression of interest exercise.

The asking price for the 11-year-old mall, owned by Heeton Holdings and Koh Brothers, is understood to be in excess of $300 million or $2,000 per square foot (psf) of net lettable area.

The mall has seven levels, two of which are basement floors, and offers scope for asset enhancement work and repositioning to boost yields.

Meanwhile, over in the Katong area, a fund managed by Alpha Investment Partners is said to have taken a majority stake, believed to be around 70 per cent, in the consortium that bought Katong Mall late last year for $247.6 million.

The consortium, originated by former CapitaMalls Trust chief executive Pua Seck Guan, also includes China-based retailer Beijing Hualian Group and BreadTalk Group.

Katong Mall, located at the corner of East Coast and Joo Chiat roads, will be revamped and its net lettable area boosted by about 20 per cent.

Alpha, Keppel Land's fund management unit, has also been active in other segments of the property market. Another of its funds controls 90 per cent of a company that owns the newly spruced-up office block at Cecil Street known as The Spazio (formerly Dapenso Building).

In Shanghai, Alpha is expected to bag an upscale service apartment block from Morgan Stanley Real Estate in a transaction estimated at about 900 million yuan (S$184 million).

Over in Singapore's Sembawang area, CB Richard Ellis is handling the expression of interest exercise for Sun Plaza.

The property has been built to its maximum plot ratio; hence, it is being pitched for its asset enhancement potential.

For instance, a community library on the third level could be moved to a higher level with the library space decanted to create higher-value retail / restaurant space, for example, in basement 1.

As well, a cineplex on the fourth and fifth levels that was formerly operated by Eng Wah has been left vacant, presenting an opportunity for a new investor to reconfigure the space into smaller lots for lease to higher-paying tenants.

Sun Plaza's retail area is spread across six levels, including basement 1. Basement 2 is occupied by 260 carpark lots.

Currently, the average gross monthly rental for the mall is said to be about $8 per square foot but market watchers reckon that through asset enhancement works and improving tenant mix, it might be possible to raise this figure to $12-14 psf.

Sun Plaza is on a site with a remaining lease term of about 85 years. Tenants include NTUC FairPrice, Yamaha Music School, Taka Jewellery and Kopitiam.

Above Sun Plaza are 76 apartments which were sold by the developers years ago.

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.



Hopeful: Currently, the average gross monthly rental for Sun Plaza is said to be about $8 psf but market watchers reckon that through asset enhancement works and improving tenant mix, it might be possible to raise this figure to $12-14 psf

BT : Cheung Kong has a grand Vision for the West Coast

Business Times - 11 Mar 2010

Cheung Kong has a grand Vision for the West Coast

By EMILYN YAP

CHEUNG Kong has set its sights on building the tallest - and perhaps priciest - condominium project in the West Coast area.

The Hong Kong developer will launch The Vision at West Coast Crescent this weekend. It plans to release no more than 100 units at the 99-year leasehold project, and the average asking price will range from $1,000-$1,200 per sq ft (psf).

The Vision comprises 281 apartments and 14 strata terrace units. The apartments will be housed in two towers - one with 33 levels and the other with 32. The project will be the tallest residential development in the area, said Cheung Kong sales manager Cannas Ho yesterday.

It will have two-, three- and four-bedroom units ranging from 818-1,604 sq ft. There will also be two penthouses. Going by the average asking price cited, a four-bedder could cost about $1.9 million.

The target psf price tag for units at The Vision looks high compared with those at developments nearby. Just next door is the 99-year leasehold Blue Horizon, which was launched around 2001. Units there went for $764-$808 psf last month, as caveats lodged show.

Homes at ClementiWoods Condominium in the vicinity changed hands at $836-$957 psf last month. It has a 99-year lease and entered the market in 2007.

But Cheung Kong is marketing The Vision as a high-end project in the West Coast area - and that probably shows in the asking prices.

According to the developer, the construction cost is 'high due to the quality finishes and high-end fittings used'.

For instance, Cheung Kong says it will cost about three times more to build a bathroom in The Vision than in a typical condominium.

The developer says it is confident there will be demand because of several factors. For one thing, the site is across the road from West Coast Park, and about 70 per cent of units will enjoy unblocked sea views.

The area is also popular with expatriates. And this is a group which The Vision is targeting, besides Singaporeans.

Ms Ho expects owner-occupiers to make up the majority of buyers, and says there have been plenty of enquiries. BT understands agents have collected cheques from potential buyers.

Chesterton Suntec International research and consultancy director Colin Tan reckons The Vision's target pricing could be 'a bit strong' for owner-occupiers. Investors would not mind paying, if they believe property prices will continue rising, but they tend to be more interested in one- bedroom units, he said.

'If the launch is successful, it will set the benchmark' for developments in the West Coast area, he said.

Elsewhere, more property launches are on their way. Agents are gathering interest for Ho Bee's Seascape and City Developments' The Residences at W, both at Sentosa Cove.

Sources say Seascape could be launched towards the end of the month, at asking prices of $2,700-$3,000 psf.

Agents are also advertising for Hong Leong Group's 76 Shenton Way, said to comprise mostly one and two-bedders. BT understands it could be previewed at month-end, and agents are quoting prices above $2,000 psf.

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.