Singapore recession is over
Nov 20, 2009 - PropertyGuru.com.sg
Singapore declared yesterday that its recession was over, as its economy grew for the second straight quarter in the three months to September.
Official data showed that Singapore’s gross domestic product (GDP) increased 14.2 percent in the third quarter for its quarter-on-quarter annualized basis, following a 21.7 percent growth in the previous quarter.
“Effectively, the recession in Singapore is over,” said Ministry of Trade and Industry’s (MTI) Second Permanent Secretary, Ravi Menon, during a media briefing.
"Economies around the world are now turning the corner," he said. "Singapore has benefited from these global and regional trends."
The country’s year-on-year GDP increased 0.6 percent in the third quarter, as compared to the 3.3 percent contraction in the second quarter, said MTI in its Q3 economic survey.
In its forecast for 2010, MTI predicted a 3.0 to 5.0 percent economic growth, while maintaining the existing 2.0 to 2.5 percent projection of a contraction this year.
The trade-reliant economy of the country was the first in Asia to decline due to the recession last year, as the global downturn hit demands for its exports, especially from the US.
Friday, November 20, 2009
Inflation rate to increase in 2010
Inflation rate to increase in 2010
Nov 20, 2009 - PropertyGuru.com.sg
The inflation rate is expected to increase next year as the Housing Development Board (HDB) increased its property values.
Singapore revised its consumer price index (CPI) inflation forecast from 1 to 2 percent to 2.5 and 3.5 percent.
This is in connection with the recent revision of the Inland Revenue Authority (IRA)’s annual values for HDB properties, which factor into the Consumer Price Index (CPI) as imputed rents under the component of the accommodation cost.
Singapore’s Monetary Authority considered the revision as technical. The inflation forecast, excluding the cost of accommodation and private vehicles, remained at 1 to 2 percent.
“This core inflation should remain non-threatening in the absence of domestic price pressures, even as one-off factors push up headline inflation,” says Alvin Liew, an economist from Standard Chartered.
But some economists predict other risks may affect next year’s inflation rate.
Leong Wai Ho of Barclays Capital believes “the forecast adjustment may not have fully factored in the prospect of higher food prices,” due to the unfavourable economic conditions across Asia.
And although the government’s revision is technical, “the potential impact on inflation expectations cannot be completely ignored,” says economist Kit Wei Zheng of Citi.
Nov 20, 2009 - PropertyGuru.com.sg
The inflation rate is expected to increase next year as the Housing Development Board (HDB) increased its property values.
Singapore revised its consumer price index (CPI) inflation forecast from 1 to 2 percent to 2.5 and 3.5 percent.
This is in connection with the recent revision of the Inland Revenue Authority (IRA)’s annual values for HDB properties, which factor into the Consumer Price Index (CPI) as imputed rents under the component of the accommodation cost.
Singapore’s Monetary Authority considered the revision as technical. The inflation forecast, excluding the cost of accommodation and private vehicles, remained at 1 to 2 percent.
“This core inflation should remain non-threatening in the absence of domestic price pressures, even as one-off factors push up headline inflation,” says Alvin Liew, an economist from Standard Chartered.
But some economists predict other risks may affect next year’s inflation rate.
Leong Wai Ho of Barclays Capital believes “the forecast adjustment may not have fully factored in the prospect of higher food prices,” due to the unfavourable economic conditions across Asia.
And although the government’s revision is technical, “the potential impact on inflation expectations cannot be completely ignored,” says economist Kit Wei Zheng of Citi.
TODAY ONLINE : 4 individuals, 7 projects win
4 individuals, 7 projects win
by Evelyn Choo evelynchoo@mediacorp.com.sg 05:55 AM Nov 20, 2009
SINGAPORE - Four outstanding designers and seven projects have won this year's President's Design Awards.
President S R Nathan gave out the annual awards - aimed at encouraging the local design industry to raise the bar in areas such as architecture and product design - at the Istana last night.
The four winners of the Designer of the Year award are Mr Koichiro Ikebuchi, director of Atelier Ikebuchi; Mr Chris Lee, founder and creative director of Asylum Creative; Mr Look Boon Gee, managing director of Look Architects; Mr Tham Khai Meng, worldwide creative director of Ogilvy and Mather.
The seven project and product designs, which received the Design of the Year awards for their national significance and creative value, are the Genexis Theatre at Fusionopolis by Arup and Woha; Paper Fold by Exit Design, Republic Polytechnic by DP Architects and Maki and Associates; The Met in Bangkok by Woha; Urband Origami by Nanyang Optical; the X-halo Breath Thermometer by Philips Design; and the Henderson Waves by RSP Architects Planners and Engineers and IJP Corporation.
The Henderson Waves bridge, which weaves seamlessly in and out of a canopy, brings park users closer to nature. Its eye-catching curves, spanning some 300m, connect Mount Faber and Telok Blangah Hill Park.
The design team behind this urban sculpture said it was inspired by a mathematical formula.
Dr Liu Thai-Ker, director of RSP Architects Planners and Engineers, said: "The mathematical formula is something very scientific, very technological. Nature is very organic, very primordial. The happy combination of these two things to this bridge, in my mind, tickles the minds of people.
"In the last decade, you can see the flair of a more varied, diverse environment - day and night, city and countryside - is now starting to emerge, including the creation of this bridge."
Also making waves in the local and international design circles is 39-year-old Chris Lee. The founder of homegrown creative company Asylum has made his mark with novel takes on a myriad of projects, from interior design, branding to managing a music record label.
"The majority of design work is not really exciting. I think it's where we find our niche client that's important. When I first started Asylum, I just thought there would be opportunities out there that do not fit into the typical design mould. So all our projects are very different, but I think it's great that way," said Mr Lee.
The DesignSingapore Council said this year's winners reflect an increased vibrancy in the design sector.
by Evelyn Choo evelynchoo@mediacorp.com.sg 05:55 AM Nov 20, 2009
SINGAPORE - Four outstanding designers and seven projects have won this year's President's Design Awards.
President S R Nathan gave out the annual awards - aimed at encouraging the local design industry to raise the bar in areas such as architecture and product design - at the Istana last night.
The four winners of the Designer of the Year award are Mr Koichiro Ikebuchi, director of Atelier Ikebuchi; Mr Chris Lee, founder and creative director of Asylum Creative; Mr Look Boon Gee, managing director of Look Architects; Mr Tham Khai Meng, worldwide creative director of Ogilvy and Mather.
The seven project and product designs, which received the Design of the Year awards for their national significance and creative value, are the Genexis Theatre at Fusionopolis by Arup and Woha; Paper Fold by Exit Design, Republic Polytechnic by DP Architects and Maki and Associates; The Met in Bangkok by Woha; Urband Origami by Nanyang Optical; the X-halo Breath Thermometer by Philips Design; and the Henderson Waves by RSP Architects Planners and Engineers and IJP Corporation.
The Henderson Waves bridge, which weaves seamlessly in and out of a canopy, brings park users closer to nature. Its eye-catching curves, spanning some 300m, connect Mount Faber and Telok Blangah Hill Park.
The design team behind this urban sculpture said it was inspired by a mathematical formula.
Dr Liu Thai-Ker, director of RSP Architects Planners and Engineers, said: "The mathematical formula is something very scientific, very technological. Nature is very organic, very primordial. The happy combination of these two things to this bridge, in my mind, tickles the minds of people.
"In the last decade, you can see the flair of a more varied, diverse environment - day and night, city and countryside - is now starting to emerge, including the creation of this bridge."
Also making waves in the local and international design circles is 39-year-old Chris Lee. The founder of homegrown creative company Asylum has made his mark with novel takes on a myriad of projects, from interior design, branding to managing a music record label.
"The majority of design work is not really exciting. I think it's where we find our niche client that's important. When I first started Asylum, I just thought there would be opportunities out there that do not fit into the typical design mould. So all our projects are very different, but I think it's great that way," said Mr Lee.
The DesignSingapore Council said this year's winners reflect an increased vibrancy in the design sector.
TODAY ONLINE : New scheme to deter errant agents
New scheme to deter errant agents
by Lin Yan Qin 05:55 AM Nov 20, 2009
SINGAPORE - Some overpromise on the school's facilities; others tell potential students they can work while they pursue their studies here - all in a bid to profit from a foreign student's move to study in Singapore.
And it is these practices which are the target of new criteria under the voluntary EduTrust scheme - the quality certification under the recently introduced Private Education Act. This puts the onus on private education institutions (PEIs) to ensure the student agents they engage to recruit foreign students for their schools, are not resorting to underhanded means to get business.
While the PEIs MediaCorp spoke to all declared themselves ready to meet the new requirements, some wonder if tougher measures are needed to arrest the problem of errant agents.
"You can have schools collaborating with agents just to make money," said a private language school instructor, who did not want to be named.
"If we don't make agents more accountable, they can still get away with making a quick buck, moving from one school to the next."
Under the new criteria - necessary for schools which want to recruit foreign students - PEIs have to meet certain requirements for evaluating and training agents before they can start recruiting.
These include signing contracts with the agents and ensuring they do not misrepresent the PEI or provide misleading information to students.
In addition, PEIs are required to collate feedback from students on the services provided by the agents as part of their monitoring process.
"Students who are over-reliant and have not done their due diligence may be misled by errant agents," said Mr Alan Phua, managing director for domestic operations at Informatics Education. He added that although some of the schools were already meeting some of the conditions, making them compulsory would force all schools to fall into line and improve the situation.
A serious case last year involved Columbia Business School, where some foreign students brought in by agents were told that they could work eight hours for $700 a month while attending three hours of classes each day. Less radical claims usually involve exaggerating the size of the school and its facilities.
"We have had agents (who) overpromise, telling foreign students (they) can work and study here, which is not true," said Technology, Management and Communications (TMC) Educational Group student recruiting and marketing director Lemmy Teo.
Agents can make about 10 to 20 per cent of the first-year course fees from PEIs for every student recruited - and the commission is higher from less well-known PEIs which rely more heavily on them to bring in the students.
"For agents that are in it for the money, they don't care about the quality of the school at all. They just recommend schools paying the highest commission," said student agent Yeo Eng Chiang.
For better assurance of quality, students are encouraged to consider PEIs with EduTrust certification, said the Education Ministry.
Also, prospective students seeking the services of recruitment agents are advised to check on the authenticity of the agents and to ascertain that they accurately represent the PEIs and courses they wish to enrol in. One resource they can refer to is the list of Singapore Education Specialists maintained by the Singapore Tourism Board.
Licensing could take regulatory efforts even further, schools felt.
"Licensing agents will make it easier for us as schools to keep track of what they do and tap on agents with the best track records," said TMC Educational Group's Dr Teo.
Mr Daniel Chu, president of the Association of Consultants for International Students (Singapore), agreed, saying that the present situation had too many loopholes for agents to get away with unscrupulous behaviour, even with the EduTrust new requirements.
"It's like why they decided to regulate property agents ... there's no stopping an errant agent from continuing to work as an agent somewhere else even if you sack him," said Mr Chu, whose company recruits foreign students.
The Education Ministry, he added, had not consulted the association when it drew up the Private Education Act. "I think we should have been part of the process, given that we play a crucial role in the industry," he said.
When asked, the Ministry said it had held two public consultation exercises before the Act was enacted. As to whether licensing was an option, it would only say that suggestions will be considered.
Though he was in favour of licensing, Dr Teo felt that getting schools to be accountable for their agents' actions was a good start to regulating the industry.
"Any school that wants to bring in foreign students will need to comply, and that will have a big impact on schools making sure they don't work with rogue agents, so there will definitely be some improvement," he said.
by Lin Yan Qin 05:55 AM Nov 20, 2009
SINGAPORE - Some overpromise on the school's facilities; others tell potential students they can work while they pursue their studies here - all in a bid to profit from a foreign student's move to study in Singapore.
And it is these practices which are the target of new criteria under the voluntary EduTrust scheme - the quality certification under the recently introduced Private Education Act. This puts the onus on private education institutions (PEIs) to ensure the student agents they engage to recruit foreign students for their schools, are not resorting to underhanded means to get business.
While the PEIs MediaCorp spoke to all declared themselves ready to meet the new requirements, some wonder if tougher measures are needed to arrest the problem of errant agents.
"You can have schools collaborating with agents just to make money," said a private language school instructor, who did not want to be named.
"If we don't make agents more accountable, they can still get away with making a quick buck, moving from one school to the next."
Under the new criteria - necessary for schools which want to recruit foreign students - PEIs have to meet certain requirements for evaluating and training agents before they can start recruiting.
These include signing contracts with the agents and ensuring they do not misrepresent the PEI or provide misleading information to students.
In addition, PEIs are required to collate feedback from students on the services provided by the agents as part of their monitoring process.
"Students who are over-reliant and have not done their due diligence may be misled by errant agents," said Mr Alan Phua, managing director for domestic operations at Informatics Education. He added that although some of the schools were already meeting some of the conditions, making them compulsory would force all schools to fall into line and improve the situation.
A serious case last year involved Columbia Business School, where some foreign students brought in by agents were told that they could work eight hours for $700 a month while attending three hours of classes each day. Less radical claims usually involve exaggerating the size of the school and its facilities.
"We have had agents (who) overpromise, telling foreign students (they) can work and study here, which is not true," said Technology, Management and Communications (TMC) Educational Group student recruiting and marketing director Lemmy Teo.
Agents can make about 10 to 20 per cent of the first-year course fees from PEIs for every student recruited - and the commission is higher from less well-known PEIs which rely more heavily on them to bring in the students.
"For agents that are in it for the money, they don't care about the quality of the school at all. They just recommend schools paying the highest commission," said student agent Yeo Eng Chiang.
For better assurance of quality, students are encouraged to consider PEIs with EduTrust certification, said the Education Ministry.
Also, prospective students seeking the services of recruitment agents are advised to check on the authenticity of the agents and to ascertain that they accurately represent the PEIs and courses they wish to enrol in. One resource they can refer to is the list of Singapore Education Specialists maintained by the Singapore Tourism Board.
Licensing could take regulatory efforts even further, schools felt.
"Licensing agents will make it easier for us as schools to keep track of what they do and tap on agents with the best track records," said TMC Educational Group's Dr Teo.
Mr Daniel Chu, president of the Association of Consultants for International Students (Singapore), agreed, saying that the present situation had too many loopholes for agents to get away with unscrupulous behaviour, even with the EduTrust new requirements.
"It's like why they decided to regulate property agents ... there's no stopping an errant agent from continuing to work as an agent somewhere else even if you sack him," said Mr Chu, whose company recruits foreign students.
The Education Ministry, he added, had not consulted the association when it drew up the Private Education Act. "I think we should have been part of the process, given that we play a crucial role in the industry," he said.
When asked, the Ministry said it had held two public consultation exercises before the Act was enacted. As to whether licensing was an option, it would only say that suggestions will be considered.
Though he was in favour of licensing, Dr Teo felt that getting schools to be accountable for their agents' actions was a good start to regulating the industry.
"Any school that wants to bring in foreign students will need to comply, and that will have a big impact on schools making sure they don't work with rogue agents, so there will definitely be some improvement," he said.
TODAY ONLINE : No deal for Laguna Park as marketing agent throws in the towel
No deal for Laguna Park as marketing agent throws in the towel
05:55 AM Nov 19, 2009
by Tan Hui Leng
SINGAPORE - The closely watched collective sale of Marine Parade condominium Laguna Park has been called off.
The en-bloc tender which started off at a hefty price tag of $1.2 billion and was later revised downwards to $967 million has seen no takers yet.
The marketing agent Credo Real Estate said that even if an offer comes in now it would be too late to crank up the entire process again in time for the Dec 19 deadline, when the collective sale agreement expires.
As a result, Credo has sent out letters to Laguna Park owners on Monday to inform them the collective sales process has ended.
"The sales committee has decided to call it a day," said marketing agent Credo's deputy managing director Tan Hong Boon.
Mr Tan noted that even if an offer is made now or if the sales committee obtains 80 per cent of votes in favour of the new price tag, there would not be enough time to carry out all the processes required before putting in a Strata Titles Board application.
Built in 1977, the seafront development raised eyebrows in September with its jaw-dropping $1.2-billion reserve price tag. The former HUDC project with 528 units sits on a massive plot of 677,493 square feet.
But analysts and observers have deemed it to be too expensive, second only to another former HUDC estate, Farrer Court, which was sold for $1.3388 billion in June 2007.
However, the first tender failed despite a bid for $1.73 billion from an Indonesian-owned locally-incorporated company, as a down payment could not be made in time.
Owners were then asked to consider selling their homes at $967 million - about 19 per cent lower than the initial asking price. The new price tag meant that the home owners stood to gain about $1.8 million for a typical unit instead of the previous range of $2.1 million to $2.3 million.
Mr Tan noted that developers' have become increasingly cautious amid the recent market cooling measures introduced by the Government. TAN HUI LENG
Copyright 2009 MediaCorp Pte Ltd | All Rights Reserved
05:55 AM Nov 19, 2009
by Tan Hui Leng
SINGAPORE - The closely watched collective sale of Marine Parade condominium Laguna Park has been called off.
The en-bloc tender which started off at a hefty price tag of $1.2 billion and was later revised downwards to $967 million has seen no takers yet.
The marketing agent Credo Real Estate said that even if an offer comes in now it would be too late to crank up the entire process again in time for the Dec 19 deadline, when the collective sale agreement expires.
As a result, Credo has sent out letters to Laguna Park owners on Monday to inform them the collective sales process has ended.
"The sales committee has decided to call it a day," said marketing agent Credo's deputy managing director Tan Hong Boon.
Mr Tan noted that even if an offer is made now or if the sales committee obtains 80 per cent of votes in favour of the new price tag, there would not be enough time to carry out all the processes required before putting in a Strata Titles Board application.
Built in 1977, the seafront development raised eyebrows in September with its jaw-dropping $1.2-billion reserve price tag. The former HUDC project with 528 units sits on a massive plot of 677,493 square feet.
But analysts and observers have deemed it to be too expensive, second only to another former HUDC estate, Farrer Court, which was sold for $1.3388 billion in June 2007.
However, the first tender failed despite a bid for $1.73 billion from an Indonesian-owned locally-incorporated company, as a down payment could not be made in time.
Owners were then asked to consider selling their homes at $967 million - about 19 per cent lower than the initial asking price. The new price tag meant that the home owners stood to gain about $1.8 million for a typical unit instead of the previous range of $2.1 million to $2.3 million.
Mr Tan noted that developers' have become increasingly cautious amid the recent market cooling measures introduced by the Government. TAN HUI LENG
Copyright 2009 MediaCorp Pte Ltd | All Rights Reserved
ST : End the delay and start building
Nov 20, 2009
SPORTS HUB
End the delay and start building
PUSHING back the completion date of the Sports Hub repeatedly from 2010 to 2011, 2012 and now 2013 ('Sports Hub still has financing concerns', Nov 14) is disappointing.
It is unfair to the two unsuccessful bidders as the reason appears to be the Singapore Sports Hub consortium's failure to secure a bank loan to finance the project.
One main criterion in a tender is for a bidder to have firm financial muscle to complete a project.
Did the Singapore Sports Hub consortium make an unrealistic bid for the mega project, which now seems to point to a situation in which it cannot attract bank backing?
If so, the Government should step in and guarantee the loan or build the Sports Hub on its own.
A mega public project that is repeatedly delayed creates an adverse impression on foreign investors and undermines the confidence in the bidding system.
The Government can certainly afford to build the hub without having to resort to the public-private partnership formula.
If the Government can afford to spend $4.5 billion on the Jobs Credit scheme to subsidise employers' wage bills and $600 million to build the Esplanade, which attracted an audience of only 1.7 million last year, there is no reason not to spend less than $1.9 billion to construct the new Sports Hub, which will attract a larger audience and more tourists.
If the Government could afford spending $15 million to host the recent Asian Youth Games, $150 million on the Singapore F1 Grand Prix and $108 million more to host the Youth Olympic Games next year, it does not make sense to repeatedly stymie the start towards building a vital landmark like the Sports Hub.
Construction costs may rise further next year if the global economy picks up, and what then? More delays?
If it is the Government's mission to promote a sports culture, the construction of a new Sports Hub is a necessity, not a luxury.
The project was announced in 2005. How long more must Singaporeans wait for its completion?
I urge the Government to be less exacting in bean-counting the dollars and cents of the project and realise the sense in making Singaporeans justifiably happy and proud by building the hub.
SPORTS HUB
End the delay and start building
PUSHING back the completion date of the Sports Hub repeatedly from 2010 to 2011, 2012 and now 2013 ('Sports Hub still has financing concerns', Nov 14) is disappointing.
It is unfair to the two unsuccessful bidders as the reason appears to be the Singapore Sports Hub consortium's failure to secure a bank loan to finance the project.
One main criterion in a tender is for a bidder to have firm financial muscle to complete a project.
Did the Singapore Sports Hub consortium make an unrealistic bid for the mega project, which now seems to point to a situation in which it cannot attract bank backing?
If so, the Government should step in and guarantee the loan or build the Sports Hub on its own.
A mega public project that is repeatedly delayed creates an adverse impression on foreign investors and undermines the confidence in the bidding system.
The Government can certainly afford to build the hub without having to resort to the public-private partnership formula.
If the Government can afford to spend $4.5 billion on the Jobs Credit scheme to subsidise employers' wage bills and $600 million to build the Esplanade, which attracted an audience of only 1.7 million last year, there is no reason not to spend less than $1.9 billion to construct the new Sports Hub, which will attract a larger audience and more tourists.
If the Government could afford spending $15 million to host the recent Asian Youth Games, $150 million on the Singapore F1 Grand Prix and $108 million more to host the Youth Olympic Games next year, it does not make sense to repeatedly stymie the start towards building a vital landmark like the Sports Hub.
Construction costs may rise further next year if the global economy picks up, and what then? More delays?
If it is the Government's mission to promote a sports culture, the construction of a new Sports Hub is a necessity, not a luxury.
The project was announced in 2005. How long more must Singaporeans wait for its completion?
I urge the Government to be less exacting in bean-counting the dollars and cents of the project and realise the sense in making Singaporeans justifiably happy and proud by building the hub.
Today : Possible office space shortage
Possible office space shortage
05:55 AM Nov 20, 2009
by Bloomberg
SINGAPORE - Despite the current glut in office space, Singapore may face a shortage in 2014 due to the lack of new supply.
Speaking at a real estate conference in Hong Kong yesterday, Mr Choy Chan Pong, the senior group director of land sales and administration at Singapore's Urban Redevelopment Authority, noted there will a short-term imbalance between demand and supply.
"We have seen 5 million sq ft of demand in 2001 and 3 million sq ft of demand annually in recent years," he said. "So, whatever supply we see now can be quickly absorbed."
However, there is concern that there is no new supply expected in 2014.
"In the last year or so, there have been no new projects," added Mr Choy. "We have developers telling us to better start releasing land for office space."
Copyright 2009 MediaCorp Pte Ltd | All Rights Reserved
05:55 AM Nov 20, 2009
by Bloomberg
SINGAPORE - Despite the current glut in office space, Singapore may face a shortage in 2014 due to the lack of new supply.
Speaking at a real estate conference in Hong Kong yesterday, Mr Choy Chan Pong, the senior group director of land sales and administration at Singapore's Urban Redevelopment Authority, noted there will a short-term imbalance between demand and supply.
"We have seen 5 million sq ft of demand in 2001 and 3 million sq ft of demand annually in recent years," he said. "So, whatever supply we see now can be quickly absorbed."
However, there is concern that there is no new supply expected in 2014.
"In the last year or so, there have been no new projects," added Mr Choy. "We have developers telling us to better start releasing land for office space."
Copyright 2009 MediaCorp Pte Ltd | All Rights Reserved
BT Letters : URA should review its reserve list policy
Business Times - 20 Nov 2009
LETTER TO THE EDITOR
URA should review its reserve list policy
I AGREE with the commentary by Kalpana Rashiwala, 'Don't give up confirmed list card again' (BT, Nov 12).
Our Prime Minister and Minister for National Development have repeatedly stressed the importance of ensuring that residential property prices do not get out of sync with economic growth and that operating costs for business remain stable. The volatility in prices and rentals of residential and commercial properties in the last few years is an indication that the land sales programme needs to be tweaked.
I have written to URA a few times about the need to review the policy of putting sites in the reserve list as I strongly felt that the policy is seriously flawed. URA maintained that the reserve list policy is market-driven.
The property market is dominated by a few big players with large land banks. The motivation of the major developers is to maximise profit and value of their land bank and not to maintain price stability.
Does it make sense to increase supply and thus lower the value of their land bank by making a bid for the sites in the reserve list?
The way the property game is played is intriguing. Developers play with their cards close to their chests. URA not only plays with its cards on the table but also shows its next card. I have decided to bet on the winner and buy property stocks!
In my opinion, URA should scrap its policy of putting sites in the reserve list. URA, with its vast resources and with the help of other government agencies like EDB, should be able to estimate demand and supply of residential and commercial properties.
Based on projected supply and demand, URA should then put up sufficient sites for tender. If demand is weak and the tender price is below the threshold, URA can choose not to award the tender to the highest bidder.
URA should consider the impact of its policy on those who buy properties for their own use, particularly Singaporeans. Sharp hikes in prices result in massive transfer of wealth from buyers to banks and developers. It has also serious social ramifications - on population growth, savings for retirement, and leads to discontentment.
Singapore needs to attract companies, particularly MNCs, to locate their regional HQ in Singapore. Companies need a stable operating environment. Sharp hikes in rentals of offices and apartments will deter companies from setting up or expanding their operations in Singapore. They can also kill small companies operating on thin margins.
Of course, in theory, companies can move to cheaper locations. In reality, it is not so simple.
Philip Ng Lin Ai
Director
OCSC Global
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
LETTER TO THE EDITOR
URA should review its reserve list policy
I AGREE with the commentary by Kalpana Rashiwala, 'Don't give up confirmed list card again' (BT, Nov 12).
Our Prime Minister and Minister for National Development have repeatedly stressed the importance of ensuring that residential property prices do not get out of sync with economic growth and that operating costs for business remain stable. The volatility in prices and rentals of residential and commercial properties in the last few years is an indication that the land sales programme needs to be tweaked.
I have written to URA a few times about the need to review the policy of putting sites in the reserve list as I strongly felt that the policy is seriously flawed. URA maintained that the reserve list policy is market-driven.
The property market is dominated by a few big players with large land banks. The motivation of the major developers is to maximise profit and value of their land bank and not to maintain price stability.
Does it make sense to increase supply and thus lower the value of their land bank by making a bid for the sites in the reserve list?
The way the property game is played is intriguing. Developers play with their cards close to their chests. URA not only plays with its cards on the table but also shows its next card. I have decided to bet on the winner and buy property stocks!
In my opinion, URA should scrap its policy of putting sites in the reserve list. URA, with its vast resources and with the help of other government agencies like EDB, should be able to estimate demand and supply of residential and commercial properties.
Based on projected supply and demand, URA should then put up sufficient sites for tender. If demand is weak and the tender price is below the threshold, URA can choose not to award the tender to the highest bidder.
URA should consider the impact of its policy on those who buy properties for their own use, particularly Singaporeans. Sharp hikes in prices result in massive transfer of wealth from buyers to banks and developers. It has also serious social ramifications - on population growth, savings for retirement, and leads to discontentment.
Singapore needs to attract companies, particularly MNCs, to locate their regional HQ in Singapore. Companies need a stable operating environment. Sharp hikes in rentals of offices and apartments will deter companies from setting up or expanding their operations in Singapore. They can also kill small companies operating on thin margins.
Of course, in theory, companies can move to cheaper locations. In reality, it is not so simple.
Philip Ng Lin Ai
Director
OCSC Global
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
ST : Demand v supply: A chicken-and-egg situation
Nov 20, 2009
Demand v supply: A chicken-and-egg situation
A LACK of public transport services can hamper development.
Dr Lim Wee Kiak, who is an MP from Sembawang GRC, cites the example of his ward.
'There is no direct bus service from Sembawang town to the eastern sector,' he said. 'And when residents request a service that goes to Changi Airport or the Changi area, the reply from the public transport operators is that they have done a survey and found that there is not enough demand for such a route.'
He likens it to a chicken-and-egg situation.
'It's because there are no buses going that direction, therefore residents are less likely to apply for a job there, or to apply for a school there for their children, or to go there for medical, recreational or whatever reason.'
Dr Lim, who is also head of the Transport Government Parliamentary Committee, believes transportation is a great facilitator for development.
'But if you argue that because there is not enough commuter demand, then seriously, which comes first?'
His views are echoed by other MPs, including Mr Charles Chong (Pasir Ris-Punggol GRC) and Mr Seah Kian Peng (Marine Parade GRC).
Mr Chong was a vocal advocate for the North-East Line's Buangkok station to be opened earlier, while Mr Seah was among those who pushed for Stage 3 of the Circle Line to start running - even though the other four stages are not completed.
They point to examples of how new MRT lines have accelerated the growth of new towns.
On that front, is Singapore's rail expansion plan - as ambitious as it is - enough? Can we build even more sooner?
Dr Lim said: 'To build faster will simply mean that we will suck up a lot of the construction industry's resources. We want to maintain a stable construction or civil engineering industry.
'We don't want to load them with a lot of projects, and then suddenly, no project after that. The current pace is reasonable.
'If there are certain projects that can be faster, I welcome it, but not at the expense of a boom-and-bust situation for the construction industry.'
He added that too much construction activity at one go will also contribute to road diversions and traffic snares.
'It has to be staged carefully,' he said.
Demand v supply: A chicken-and-egg situation
A LACK of public transport services can hamper development.
Dr Lim Wee Kiak, who is an MP from Sembawang GRC, cites the example of his ward.
'There is no direct bus service from Sembawang town to the eastern sector,' he said. 'And when residents request a service that goes to Changi Airport or the Changi area, the reply from the public transport operators is that they have done a survey and found that there is not enough demand for such a route.'
He likens it to a chicken-and-egg situation.
'It's because there are no buses going that direction, therefore residents are less likely to apply for a job there, or to apply for a school there for their children, or to go there for medical, recreational or whatever reason.'
Dr Lim, who is also head of the Transport Government Parliamentary Committee, believes transportation is a great facilitator for development.
'But if you argue that because there is not enough commuter demand, then seriously, which comes first?'
His views are echoed by other MPs, including Mr Charles Chong (Pasir Ris-Punggol GRC) and Mr Seah Kian Peng (Marine Parade GRC).
Mr Chong was a vocal advocate for the North-East Line's Buangkok station to be opened earlier, while Mr Seah was among those who pushed for Stage 3 of the Circle Line to start running - even though the other four stages are not completed.
They point to examples of how new MRT lines have accelerated the growth of new towns.
On that front, is Singapore's rail expansion plan - as ambitious as it is - enough? Can we build even more sooner?
Dr Lim said: 'To build faster will simply mean that we will suck up a lot of the construction industry's resources. We want to maintain a stable construction or civil engineering industry.
'We don't want to load them with a lot of projects, and then suddenly, no project after that. The current pace is reasonable.
'If there are certain projects that can be faster, I welcome it, but not at the expense of a boom-and-bust situation for the construction industry.'
He added that too much construction activity at one go will also contribute to road diversions and traffic snares.
'It has to be staged carefully,' he said.
BT : Slide in prime office rents levelling off
Business Times - 20 Nov 2009
Slide in prime office rents levelling off
In 1st 6 weeks of Q4, monthly office rents in Shenton fell 0.8%
By EMILYN YAP
FALLS in commercial rents in the Shenton, City Hall and Orchard areas are levelling off, going by mid-fourth quarter figures from Cushman & Wakefield.
The property consultancy found that in the first six weeks of Q4, monthly prime office rents in the Shenton market fell just 0.8 per cent to $5.99 per sq ft (psf) from $6.04 psf in Q3. This decline is much smaller than with the 10 per cent plunge between Q2 and Q3.
Rents held up relatively well even though the Shenton market had a double-digit vacancy rate as new space from buildings such as Mapletree Anson and 71 Robinson came onstream.
There is 'landlord reluctance to lower rents amid signs of improving office space absorption', Cushman & Wakefield said.
According to the Urban Redevelopment Authority last month, take-up of office space turned positive in Q3 after staying negative for three consecutive quarters.
In the City Hall area, monthly prime office rents are also flattening - they dipped just 0.4 per cent to $6.77 psf from $6.80 psf in Q3. This was a big improvement from the 5.4 per cent drop between Q2 and Q3.
Over at Orchard, prime office rents remained relatively stable at $6.89 psf, down marginally from $6.90 psf in Q3. Rents in this market fell 6.3 per cent between Q2 and Q3.
Both the City Hall and Orchard markets have low single-digit office vacancy rates. Cushman & Wakefield research director Ang Choon Beng said lease renewal in these areas has been fairly stable. Also, there is a relative lack of new space, unlike in the Shenton and Raffles Place markets.
Office rents in Raffles Place have yet to flatten out like those in the Shenton, City Hall and Orchard areas. Monthly Raffles Place Grade A rents fell 3.5 per cent to $7.85 psf, from $8.13 psf in Q3. Monthly prime rents there also dropped 2.6 per cent to $7.60 psf, from $7.80 psf in Q3.
Nevertheless, commercial landlords in Raffles Place can take comfort from the fact that the rental declines are smaller than those between Q2 and Q3.
Mr Ang expects prime rents to 'remain soft' for the rest of this year and the first half of 2010. 'We think the influx of 2.2 million sq ft of new prime office space in 2010 needs to be well absorbed before we can see a bottoming of prime office rents,' he said.
In a separate report, Jones Lang LaSalle said: 'In markets with a large supply overhang, such as Singapore, there is likely to be continued upward pressure on incentives as owners seek to secure tenants.'
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Looking up: According to URA last month, take-up of office space turned positive in Q3 after staying negative for three consecutive quarters
Slide in prime office rents levelling off
In 1st 6 weeks of Q4, monthly office rents in Shenton fell 0.8%
By EMILYN YAP
FALLS in commercial rents in the Shenton, City Hall and Orchard areas are levelling off, going by mid-fourth quarter figures from Cushman & Wakefield.
The property consultancy found that in the first six weeks of Q4, monthly prime office rents in the Shenton market fell just 0.8 per cent to $5.99 per sq ft (psf) from $6.04 psf in Q3. This decline is much smaller than with the 10 per cent plunge between Q2 and Q3.
Rents held up relatively well even though the Shenton market had a double-digit vacancy rate as new space from buildings such as Mapletree Anson and 71 Robinson came onstream.
There is 'landlord reluctance to lower rents amid signs of improving office space absorption', Cushman & Wakefield said.
According to the Urban Redevelopment Authority last month, take-up of office space turned positive in Q3 after staying negative for three consecutive quarters.
In the City Hall area, monthly prime office rents are also flattening - they dipped just 0.4 per cent to $6.77 psf from $6.80 psf in Q3. This was a big improvement from the 5.4 per cent drop between Q2 and Q3.
Over at Orchard, prime office rents remained relatively stable at $6.89 psf, down marginally from $6.90 psf in Q3. Rents in this market fell 6.3 per cent between Q2 and Q3.
Both the City Hall and Orchard markets have low single-digit office vacancy rates. Cushman & Wakefield research director Ang Choon Beng said lease renewal in these areas has been fairly stable. Also, there is a relative lack of new space, unlike in the Shenton and Raffles Place markets.
Office rents in Raffles Place have yet to flatten out like those in the Shenton, City Hall and Orchard areas. Monthly Raffles Place Grade A rents fell 3.5 per cent to $7.85 psf, from $8.13 psf in Q3. Monthly prime rents there also dropped 2.6 per cent to $7.60 psf, from $7.80 psf in Q3.
Nevertheless, commercial landlords in Raffles Place can take comfort from the fact that the rental declines are smaller than those between Q2 and Q3.
Mr Ang expects prime rents to 'remain soft' for the rest of this year and the first half of 2010. 'We think the influx of 2.2 million sq ft of new prime office space in 2010 needs to be well absorbed before we can see a bottoming of prime office rents,' he said.
In a separate report, Jones Lang LaSalle said: 'In markets with a large supply overhang, such as Singapore, there is likely to be continued upward pressure on incentives as owners seek to secure tenants.'
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Looking up: According to URA last month, take-up of office space turned positive in Q3 after staying negative for three consecutive quarters
Thursday, November 19, 2009
BT : Laguna Park en bloc sale called off
Business Times - 19 Nov 2009
Laguna Park en bloc sale called off
Over at Meyer Place, owners to start inking deal soon to lower reserve price
By KALPANA RASHIWALA
(SINGAPORE) The en bloc sale of Laguna Park has been called off for now as the sales committee found it a race against time to get the minimum consent level from owners at a proposed lower price - said to be $967 million or $704 psf per plot ratio, down from the original $1.2 billion or $844 psf ppr reserve price - before the Collective Sale Agreement (CSA) expires next month.
But over at Meyer Place, owners will soon begin signing a supplemental agreement to their original CSA at a lower price of $59 million, down from the original $65 million. BT understands the sales committee is expected to sign an agreement soon for the freehold property's sale to a joint venture involving property and construction companies - subject to securing at least 80 per cent consent from owners at the lower price.
Meyer Place's CSA expires around mid-March 2010.
'The tender for Meyer Place closed on Oct 28 with four expressions of interest received and we are now negotiating with one of these parties,' says Christina Sim, director, investment, capital markets at Cushman and Wakefield, the marketing agent for the property.
The lower proposed reserve price of $59 million works out to $1,048 psf ppr including an estimated $3 million development charge (DC), down about 9 per cent from the $1,150 psf ppr based on the original $65 million reserve price.
Based on the revised price, the breakeven cost for a new development on the site could be $1,550 to $1,600 psf.
Laguna Park's sales committee decided to call off the estate's en bloc sale last week. 'While it did begin the process of getting owners to sign a supplemental agreement to lower the reserve price, the committee felt it was a race against time as the existing CSA expires next month,' said Karamjit Singh, managing director of Credo Real Estate, the marketing agent for the property.
Laguna Park comprises 528 units.
'It would probably be better if owners begin a fresh en bloc initiative next year and sign a fresh CSA which will give them a new 12-month period to find buyers,' Mr Singh said.
Laguna Park, which has a land area of 677,463 sq ft, failed to find a buyer after its tender closed last month. Although two bids were submitted, no buyer made the downpayment to seal the $1.2 billion deal at the time. Mr Singh said yesterday that although signing of a supplemental agreement at the lower price had started last month, so far no conditional agreement had been inked with any potential buyer for a sale at the lower price.
The unit land price of $704 psf ppr based on the revised $967 million price tag includes payment to the state to intensify the site's use and top up its lease to a fresh 99-year term.
Meyer Place has a freehold land area of 28,167 sq ft and was completed in the early 1990s, comprising 28 apartments - 24 units in a 13-storey block and four in a conservation house.
The property is zoned for residential use with a 2.1 plot ratio - the ratio of maximum potential gross floor area to land area.
Although Meyer Place is a relatively new development, it has redevelopment potential as its plot ratio in the 2008 Master Plan has not been fully utilised. 'The apartment block could be torn down and rebuilt into smaller units,' said Cushman's Ms Sim.
Market watchers point out that the buyer of Meyer Place could also seek to enlarge the plot by purchasing surrounding properties. Just in front of Meyer Place, at No. 40 Meyer Road, is a small apartment block with a site area of about 6,000 sq ft. There is also another plot behind Meyer Place housing two old bungalows at 18D and 18E Fort Road - adding up to more than 20,000 sq ft of land - that could potentially be purchased and amalgamated.
Last month, Roxy-Pacific signed an agreement to buy Dragon Mansion for $100.8 million or $863 psf ppr including DC - lower than the owners' previous asking price of $120 million or $1,020 psf ppr. Signing by owners of a supplemental agreement to the original CSA at the revised price is still in progress. The majority owners have up to January next year to make an application for a collective sale to the Strata Titles Board.
Laguna Park en bloc sale called off
Over at Meyer Place, owners to start inking deal soon to lower reserve price
By KALPANA RASHIWALA
(SINGAPORE) The en bloc sale of Laguna Park has been called off for now as the sales committee found it a race against time to get the minimum consent level from owners at a proposed lower price - said to be $967 million or $704 psf per plot ratio, down from the original $1.2 billion or $844 psf ppr reserve price - before the Collective Sale Agreement (CSA) expires next month.
But over at Meyer Place, owners will soon begin signing a supplemental agreement to their original CSA at a lower price of $59 million, down from the original $65 million. BT understands the sales committee is expected to sign an agreement soon for the freehold property's sale to a joint venture involving property and construction companies - subject to securing at least 80 per cent consent from owners at the lower price.
Meyer Place's CSA expires around mid-March 2010.
'The tender for Meyer Place closed on Oct 28 with four expressions of interest received and we are now negotiating with one of these parties,' says Christina Sim, director, investment, capital markets at Cushman and Wakefield, the marketing agent for the property.
The lower proposed reserve price of $59 million works out to $1,048 psf ppr including an estimated $3 million development charge (DC), down about 9 per cent from the $1,150 psf ppr based on the original $65 million reserve price.
Based on the revised price, the breakeven cost for a new development on the site could be $1,550 to $1,600 psf.
Laguna Park's sales committee decided to call off the estate's en bloc sale last week. 'While it did begin the process of getting owners to sign a supplemental agreement to lower the reserve price, the committee felt it was a race against time as the existing CSA expires next month,' said Karamjit Singh, managing director of Credo Real Estate, the marketing agent for the property.
Laguna Park comprises 528 units.
'It would probably be better if owners begin a fresh en bloc initiative next year and sign a fresh CSA which will give them a new 12-month period to find buyers,' Mr Singh said.
Laguna Park, which has a land area of 677,463 sq ft, failed to find a buyer after its tender closed last month. Although two bids were submitted, no buyer made the downpayment to seal the $1.2 billion deal at the time. Mr Singh said yesterday that although signing of a supplemental agreement at the lower price had started last month, so far no conditional agreement had been inked with any potential buyer for a sale at the lower price.
The unit land price of $704 psf ppr based on the revised $967 million price tag includes payment to the state to intensify the site's use and top up its lease to a fresh 99-year term.
Meyer Place has a freehold land area of 28,167 sq ft and was completed in the early 1990s, comprising 28 apartments - 24 units in a 13-storey block and four in a conservation house.
The property is zoned for residential use with a 2.1 plot ratio - the ratio of maximum potential gross floor area to land area.
Although Meyer Place is a relatively new development, it has redevelopment potential as its plot ratio in the 2008 Master Plan has not been fully utilised. 'The apartment block could be torn down and rebuilt into smaller units,' said Cushman's Ms Sim.
Market watchers point out that the buyer of Meyer Place could also seek to enlarge the plot by purchasing surrounding properties. Just in front of Meyer Place, at No. 40 Meyer Road, is a small apartment block with a site area of about 6,000 sq ft. There is also another plot behind Meyer Place housing two old bungalows at 18D and 18E Fort Road - adding up to more than 20,000 sq ft of land - that could potentially be purchased and amalgamated.
Last month, Roxy-Pacific signed an agreement to buy Dragon Mansion for $100.8 million or $863 psf ppr including DC - lower than the owners' previous asking price of $120 million or $1,020 psf ppr. Signing by owners of a supplemental agreement to the original CSA at the revised price is still in progress. The majority owners have up to January next year to make an application for a collective sale to the Strata Titles Board.
BT : Blueprint to boost interior design sector
Business Times - 19 Nov 2009
Blueprint to boost interior design sector
Trade group lays out plans to raise standards in the industry
By EMILYN YAP
(SINGAPORE) Interior design is not just about running after contractors or drawing layouts - and an association believes it is time to hammer out higher standards for the industry here.
'I probably didn't draw a living room for 20 years,' says Nicholas Merrow-Smith, client manager at Davenport Campbell (Singapore) who became president of the Interior Design Confederation Singapore (IDCS) in April.
And he wants to show that interior designers can do more. IDCS hopes to raise the level of innovation in the industry and has several suggestions on how this can be done.
Among its initiatives are an accreditation scheme for interior designers, a professional development programme and more collaborations with foreign design firms or other design disciplines.
The proposals have won the support of some practitioners in the wider design industry. Singapore Institute of Architects president Ashvinkumar Kantilal is one who thinks that IDCS is heading in the right direction.
'The (interior design) industry needs to self-regulate and widen the members' knowledge base,' he says, suggesting skills upgrading programmes in the form of courses and seminars.
Financially, the interior design industry is in fine shape, with plenty of work. But according to Mr Merrow-Smith, it lacks creativity and diversity, and this is especially clear when it is seen against its foreign counterparts.
He cites an example - interior design firms here tend to focus on traditional real estate, while those overseas can be multi-disciplinary, even taking on projects such as theatre design.
And interior designers abroad are going into research, he adds. For example, there are studies on how the design of office space can get employees to buy into their companies' values.
'What we're trying to do is to show people that the design portfolio is much wider,' says Mr Merrow-Smith. And if design firms raise their standards, there is also a chance for them to secure better work, he adds.
IDCS is kicking off its efforts with a conference this month, called Design Value: Beyond the Tangible, to highlight how design can be a strategic tool.
It will be attended by players from global firms such as Gensler and Hassell, who will share their experience of how workplace and leisure space designs can influence people's performance and behaviour.
In the longer term, IDCS will try to facilitate partnerships between interior design outfits and other design industries such as architecture.
DP Architects director Tai Lee Siang trusts that greater collaboration among the various design sectors will help strengthen the Singapore brand of design.
IDCS also hopes to set up a professional development programme by the middle of next year. With the course, interior designers can undergo continual training and conduct industry-related research.
The next - and tougher - step would be to establish an accreditation programme for interior design firms. There is no such assessment system in place now. 'Some firms do very good work, but it's certainly not across the board,' Mr Merrow-Smith says.
Some interior design firms see benefits from accreditation. The group managing director of Nota Group, Ong Sheng Keat, reckons: 'In Singapore, a large proportion of the market is dominated by business-minded contractors or decorators who see the profession as another form of trade mainly due to the lack of enforced certification'.
Altered Interior director Thierryson Chua also supports accreditation for firms in the industry, but believes a scheme could be more effective if the government was involved. If IDCS oversees the scheme, it will have to be 'super active' in organising events and attracting members, he says.
IDCS could not disclose its membership size because an auditing session is under way. But Nota Group's Mr Ong says IDCS has been seen as exclusive and inclusive - 'exclusive in the sense that it only admits genuine practising interior design professionals as members, yet inclusive because it will attempt to convert the non-professionals'.
IDCS is aware of the hurdles to implementing its plans and it is getting help from the government. For instance, it has secured funding capped at $435,000 over three years.
The association also spoke to representatives from about 50 interior design firms and related companies. According to Mr Merrow-Smith, they are supportive of its initiatives.
'We don't expect the whole industry to step up,' he says. But 'we'd like to see a core body of people who are serious about pushing the envelope, innovating, and doing things differently'.
Mr Merrow-Smith: The initiatives include an accreditation scheme for interior designers, a professional development programme and more collaborations with foreign design firms or other design disciplines
Blueprint to boost interior design sector
Trade group lays out plans to raise standards in the industry
By EMILYN YAP
(SINGAPORE) Interior design is not just about running after contractors or drawing layouts - and an association believes it is time to hammer out higher standards for the industry here.
'I probably didn't draw a living room for 20 years,' says Nicholas Merrow-Smith, client manager at Davenport Campbell (Singapore) who became president of the Interior Design Confederation Singapore (IDCS) in April.
And he wants to show that interior designers can do more. IDCS hopes to raise the level of innovation in the industry and has several suggestions on how this can be done.
Among its initiatives are an accreditation scheme for interior designers, a professional development programme and more collaborations with foreign design firms or other design disciplines.
The proposals have won the support of some practitioners in the wider design industry. Singapore Institute of Architects president Ashvinkumar Kantilal is one who thinks that IDCS is heading in the right direction.
'The (interior design) industry needs to self-regulate and widen the members' knowledge base,' he says, suggesting skills upgrading programmes in the form of courses and seminars.
Financially, the interior design industry is in fine shape, with plenty of work. But according to Mr Merrow-Smith, it lacks creativity and diversity, and this is especially clear when it is seen against its foreign counterparts.
He cites an example - interior design firms here tend to focus on traditional real estate, while those overseas can be multi-disciplinary, even taking on projects such as theatre design.
And interior designers abroad are going into research, he adds. For example, there are studies on how the design of office space can get employees to buy into their companies' values.
'What we're trying to do is to show people that the design portfolio is much wider,' says Mr Merrow-Smith. And if design firms raise their standards, there is also a chance for them to secure better work, he adds.
IDCS is kicking off its efforts with a conference this month, called Design Value: Beyond the Tangible, to highlight how design can be a strategic tool.
It will be attended by players from global firms such as Gensler and Hassell, who will share their experience of how workplace and leisure space designs can influence people's performance and behaviour.
In the longer term, IDCS will try to facilitate partnerships between interior design outfits and other design industries such as architecture.
DP Architects director Tai Lee Siang trusts that greater collaboration among the various design sectors will help strengthen the Singapore brand of design.
IDCS also hopes to set up a professional development programme by the middle of next year. With the course, interior designers can undergo continual training and conduct industry-related research.
The next - and tougher - step would be to establish an accreditation programme for interior design firms. There is no such assessment system in place now. 'Some firms do very good work, but it's certainly not across the board,' Mr Merrow-Smith says.
Some interior design firms see benefits from accreditation. The group managing director of Nota Group, Ong Sheng Keat, reckons: 'In Singapore, a large proportion of the market is dominated by business-minded contractors or decorators who see the profession as another form of trade mainly due to the lack of enforced certification'.
Altered Interior director Thierryson Chua also supports accreditation for firms in the industry, but believes a scheme could be more effective if the government was involved. If IDCS oversees the scheme, it will have to be 'super active' in organising events and attracting members, he says.
IDCS could not disclose its membership size because an auditing session is under way. But Nota Group's Mr Ong says IDCS has been seen as exclusive and inclusive - 'exclusive in the sense that it only admits genuine practising interior design professionals as members, yet inclusive because it will attempt to convert the non-professionals'.
IDCS is aware of the hurdles to implementing its plans and it is getting help from the government. For instance, it has secured funding capped at $435,000 over three years.
The association also spoke to representatives from about 50 interior design firms and related companies. According to Mr Merrow-Smith, they are supportive of its initiatives.
'We don't expect the whole industry to step up,' he says. But 'we'd like to see a core body of people who are serious about pushing the envelope, innovating, and doing things differently'.
Mr Merrow-Smith: The initiatives include an accreditation scheme for interior designers, a professional development programme and more collaborations with foreign design firms or other design disciplines
BT : Holiday Inn Park View completes overhaul
Business Times - 19 Nov 2009
Holiday Inn Park View completes overhaul
By NISHA RAMCHANDANI
(SINGAPORE) The Holiday Inn Park View, which opened here in 1985, has been renamed Holiday Inn Singapore Orchard City Centre as part of a $25 million refurbishment exercise.
Its signage, reception area, guest rooms and food and beverage outlets have been overhauled. Despite the downturn, the decision was made to go ahead with renovating the 319-room hotel over a 15 month period. This was done in conjunction with InterContinental Hotels Group's Holiday Inn global relaunch programme.
'We're long term players. For us to refurbish in slightly more difficult economic times actually makes greater sense. If you do it in good times, you essentially take rooms out of the inventory,' said Aron Harilela, director of Hong-Kong based property developer The Harilela Group, which owns the Holiday Inn in Singapore as well as other properties in Asia, Europe and the Americas.
The group also owns three transit hotels here at Changi Airport, as well as a 20 per cent stake in Thomson Medical Centre.
Looking ahead, The Harilela Group is expanding its portfolio with the launch of two hotels in Tier 2 and 3 cities in China - the first of which will open in the second quarter of 2010 and the second in Q3 2011.
The two hotels, each costing US$15 million, will be funded by a mix of debt and equity. 'We're looking to do five hotels in China. There's a big market for internationally branded, standardised products,' said Dr Harilela, adding that land in Tier 1 cities tends to be priced exorbitantly.
Meanwhile, the Holiday Inn has out-performed the industry this year, according to general manager Shantha de Silva, with occupancy rates in the mid-80s, down from the low 90s in 2007-08.
Room rates this year have come down about 20 per cent compared to last year but remain in the low $200s.
'We've been trading fairly robustly even, this year,' said Mr de Silva. Business travellers make up 60-70 per cent of the clientele.
And Mr de Silva is confident that the hotel industry is likely to pick up soon.
Holiday Inn Park View completes overhaul
By NISHA RAMCHANDANI
(SINGAPORE) The Holiday Inn Park View, which opened here in 1985, has been renamed Holiday Inn Singapore Orchard City Centre as part of a $25 million refurbishment exercise.
Its signage, reception area, guest rooms and food and beverage outlets have been overhauled. Despite the downturn, the decision was made to go ahead with renovating the 319-room hotel over a 15 month period. This was done in conjunction with InterContinental Hotels Group's Holiday Inn global relaunch programme.
'We're long term players. For us to refurbish in slightly more difficult economic times actually makes greater sense. If you do it in good times, you essentially take rooms out of the inventory,' said Aron Harilela, director of Hong-Kong based property developer The Harilela Group, which owns the Holiday Inn in Singapore as well as other properties in Asia, Europe and the Americas.
The group also owns three transit hotels here at Changi Airport, as well as a 20 per cent stake in Thomson Medical Centre.
Looking ahead, The Harilela Group is expanding its portfolio with the launch of two hotels in Tier 2 and 3 cities in China - the first of which will open in the second quarter of 2010 and the second in Q3 2011.
The two hotels, each costing US$15 million, will be funded by a mix of debt and equity. 'We're looking to do five hotels in China. There's a big market for internationally branded, standardised products,' said Dr Harilela, adding that land in Tier 1 cities tends to be priced exorbitantly.
Meanwhile, the Holiday Inn has out-performed the industry this year, according to general manager Shantha de Silva, with occupancy rates in the mid-80s, down from the low 90s in 2007-08.
Room rates this year have come down about 20 per cent compared to last year but remain in the low $200s.
'We've been trading fairly robustly even, this year,' said Mr de Silva. Business travellers make up 60-70 per cent of the clientele.
And Mr de Silva is confident that the hotel industry is likely to pick up soon.
BT : Balestier factory en bloc after rezoning
Business Times - 19 Nov 2009
Balestier factory en bloc after rezoning
(SINGAPORE) The owners of a terrace factory building off Balestier Road have put up their property for an en bloc sale following the Urban Redevelopment Authority's (URA) decision in 2008 to consider rezoning the site for residential use upon redevelopment.
The freehold property is being marketed by Credo Real Estate with a price tag in the region of $27 million to $30 million.
About $18.7 million is payable as development charge (DC) for the rezoning of the site. After factoring the DC payable, the estimated price tag reflects a per square foot per plot ratio (psf ppr) price of $586 psf ppr to $625 psf ppr. Breakeven for the project is at about $950 psf to $1,000 psf.
The three-storey strata-titled development at 6 Jalan Ampas comprises four terrace factory units built in the 1980s. They belong to four unrelated owners. The building sits on a corner rectangular-shaped land measuring just over 2,586 square metres. Tan Hong Boon, Credo's deputy managing director, said that the URA issued a circular in July 2008 to say that it had completed a review on a cluster of 15 industrial buildings at Jalan Ampas/Lorong Ampas, and was prepared to consider rezoning the properties to residential use at a gross plot ratio of 2.8 upon redevelopment. Based on this rezoning, the site may be redeveloped into a high-rise residential development comprising some 100 apartments with an average size of 780 square feet.
The tender for the launch closes at 3pm on Dec 10. Credo said that the site is about 50m from Shaw Plaza, a shopping mall that houses a major supermarket, a multiplex cinema, banks and fast food eateries such as McDonald's.
A new development in the same vicinity, Prestige Heights, was recently launched at a median sale price of $1,322 psf.
Balestier factory en bloc after rezoning
(SINGAPORE) The owners of a terrace factory building off Balestier Road have put up their property for an en bloc sale following the Urban Redevelopment Authority's (URA) decision in 2008 to consider rezoning the site for residential use upon redevelopment.
The freehold property is being marketed by Credo Real Estate with a price tag in the region of $27 million to $30 million.
About $18.7 million is payable as development charge (DC) for the rezoning of the site. After factoring the DC payable, the estimated price tag reflects a per square foot per plot ratio (psf ppr) price of $586 psf ppr to $625 psf ppr. Breakeven for the project is at about $950 psf to $1,000 psf.
The three-storey strata-titled development at 6 Jalan Ampas comprises four terrace factory units built in the 1980s. They belong to four unrelated owners. The building sits on a corner rectangular-shaped land measuring just over 2,586 square metres. Tan Hong Boon, Credo's deputy managing director, said that the URA issued a circular in July 2008 to say that it had completed a review on a cluster of 15 industrial buildings at Jalan Ampas/Lorong Ampas, and was prepared to consider rezoning the properties to residential use at a gross plot ratio of 2.8 upon redevelopment. Based on this rezoning, the site may be redeveloped into a high-rise residential development comprising some 100 apartments with an average size of 780 square feet.
The tender for the launch closes at 3pm on Dec 10. Credo said that the site is about 50m from Shaw Plaza, a shopping mall that houses a major supermarket, a multiplex cinema, banks and fast food eateries such as McDonald's.
A new development in the same vicinity, Prestige Heights, was recently launched at a median sale price of $1,322 psf.
BT : Property tax rebate for HDB owner-occupiers
Business Times - 19 Nov 2009
Property tax rebate for HDB owner-occupiers
Set at 50% of tax payable, it is capped at $120; zero tax for one and 2-room HDB owners
THE government will grant a new property tax rebate to all HDB owner-occupiers next year to help them adjust to the increase in annual values (AVs).
The Inland Revenue Authority of Singapore (Iras), which reviews the AVs of all properties, did not revise AVs for HDB flats on Jan 1 this year, given the uncertainty in market rental trends due to the recession.
HDB rentals have since stabilised after a moderate decline and have begun to rise. As a result, current values of HDB rentals, as well as HDB resale prices, are significantly higher than 2007 levels. Iras will therefore revise the AVs of all HDB flat types from Jan 1, 2010. The last AV revision for HDB flats was done last year, based on rental values in 2007.
The new rebate granted to HDB owner-occupiers will apply to property tax payable next year after deducting the 1994 GST Rebate, which is available to all residential property owner-occupiers.
The new rebate is set at 50 per cent of the payable property tax and is capped at $120. To provide additional help to owner-occupiers of smaller HDB flats, the rebate will be the lower of $50 or the actual property tax amount.
With the new property tax rebate for HDB owner-occupiers and the ongoing 1994 GST Rebate, all one and two-room HDB owner-occupiers will continue to pay zero property tax next year.
For average three-room HDB owner-occupiers, the increase in property tax next year, after deducting the special rebates, will be $72 for the year. For four-room HDB owner-occupiers, the average tax increase will be $97 for the year and for five-room HDB owner-occupiers, the average tax increase will be $107 for the year as a whole. For executive HDB owner-occupiers, it will be $103.
Owners of HDB flats will receive their valuation notices and property tax bills by Jan 1 next year. Property tax for 2010 is payable by Jan 31 next year.
Iras encourages HDB flat owners to use the Giro payment scheme to enjoy up to 12 interest-free monthly instalments. Application forms can be downloaded from www.iras.gov.sg.
Property tax rebate for HDB owner-occupiers
Set at 50% of tax payable, it is capped at $120; zero tax for one and 2-room HDB owners
THE government will grant a new property tax rebate to all HDB owner-occupiers next year to help them adjust to the increase in annual values (AVs).
The Inland Revenue Authority of Singapore (Iras), which reviews the AVs of all properties, did not revise AVs for HDB flats on Jan 1 this year, given the uncertainty in market rental trends due to the recession.
HDB rentals have since stabilised after a moderate decline and have begun to rise. As a result, current values of HDB rentals, as well as HDB resale prices, are significantly higher than 2007 levels. Iras will therefore revise the AVs of all HDB flat types from Jan 1, 2010. The last AV revision for HDB flats was done last year, based on rental values in 2007.
The new rebate granted to HDB owner-occupiers will apply to property tax payable next year after deducting the 1994 GST Rebate, which is available to all residential property owner-occupiers.
The new rebate is set at 50 per cent of the payable property tax and is capped at $120. To provide additional help to owner-occupiers of smaller HDB flats, the rebate will be the lower of $50 or the actual property tax amount.
With the new property tax rebate for HDB owner-occupiers and the ongoing 1994 GST Rebate, all one and two-room HDB owner-occupiers will continue to pay zero property tax next year.
For average three-room HDB owner-occupiers, the increase in property tax next year, after deducting the special rebates, will be $72 for the year. For four-room HDB owner-occupiers, the average tax increase will be $97 for the year and for five-room HDB owner-occupiers, the average tax increase will be $107 for the year as a whole. For executive HDB owner-occupiers, it will be $103.
Owners of HDB flats will receive their valuation notices and property tax bills by Jan 1 next year. Property tax for 2010 is payable by Jan 31 next year.
Iras encourages HDB flat owners to use the Giro payment scheme to enjoy up to 12 interest-free monthly instalments. Application forms can be downloaded from www.iras.gov.sg.
ST : Laguna Park not for sale - at least for now
Nov 19, 2009
Laguna Park not for sale - at least for now
By Robin Chan & Jessica Cheam
THE Laguna Park sales committee has voted to call off the faltering collective sale of their Marine Parade condo, after an initial bid failed.
The on-off sale would have been one of the largest here, with an asking price of around $1 billion. But lukewarm response from developers and a fast-approaching deadline for a sale to be completed sealed its fate - for now.
Mr Karamjit Singh, managing director of Credo Real Estate, told The Straits Times that the Laguna Park sales committee decided to let the collective sales agreement (CSA) expire next month: 'To get the 80 per cent takes time, and because it's a very big development, there was not the luxury of time.'
Last month, owners in the East Coast estate failed to sell the property en bloc for $1.2 billion through a tender process. They were considering a lower price of between $950 million and $1 billion, below the $1.2 billion reserve price which would require them to get an 80 per cent vote of approval from owners.
The impending expiry of the CSA left them with little time to get the required signatures. The committee thus decided that instead of pursuing the more than 400 signatures needed, it would be better to start afresh with a new CSA next year, giving them a full 12 months to pursue another sale, Mr Singh said.
Though there had been talks with a potential buyer, nothing came of them, given the sales committee's decision not to pursue the signatures.
It is still too early to say when a new sales committee will be nominated, but Mr Singh says it will be next year.
Owners had not been officially informed of the development when The Straits Times called yesterday, but one who was against the sale and declined to be named was relieved: 'It's a wise move because of the present market situation. One year later, the property market might be picking up again and we would be more justified to sell.'
The Laguna Park sale has been surrounded by drama from the word go. The development obtained the 80 per cent approval from the 500 or so owners late last year, but the $1.2 billion price was decided late 2007.
There was still a vocal minority strongly opposed to a sale, and incidents of vandalism occurred at the condo protesting the deal.
Laguna is a former HUDC estate with a land area of about 677,493 sq ft and a gross plot ratio of 2.8.
If the sale of the 528-unit leasehold project had come off, it would have only been the second en bloc deal this year. The first was the smaller Dragon Mansion in Spottiswoode Park Road, which eventually sold for $100.8 million last month despite asking for $120 million.
Laguna Park not for sale - at least for now
By Robin Chan & Jessica Cheam
THE Laguna Park sales committee has voted to call off the faltering collective sale of their Marine Parade condo, after an initial bid failed.
The on-off sale would have been one of the largest here, with an asking price of around $1 billion. But lukewarm response from developers and a fast-approaching deadline for a sale to be completed sealed its fate - for now.
Mr Karamjit Singh, managing director of Credo Real Estate, told The Straits Times that the Laguna Park sales committee decided to let the collective sales agreement (CSA) expire next month: 'To get the 80 per cent takes time, and because it's a very big development, there was not the luxury of time.'
Last month, owners in the East Coast estate failed to sell the property en bloc for $1.2 billion through a tender process. They were considering a lower price of between $950 million and $1 billion, below the $1.2 billion reserve price which would require them to get an 80 per cent vote of approval from owners.
The impending expiry of the CSA left them with little time to get the required signatures. The committee thus decided that instead of pursuing the more than 400 signatures needed, it would be better to start afresh with a new CSA next year, giving them a full 12 months to pursue another sale, Mr Singh said.
Though there had been talks with a potential buyer, nothing came of them, given the sales committee's decision not to pursue the signatures.
It is still too early to say when a new sales committee will be nominated, but Mr Singh says it will be next year.
Owners had not been officially informed of the development when The Straits Times called yesterday, but one who was against the sale and declined to be named was relieved: 'It's a wise move because of the present market situation. One year later, the property market might be picking up again and we would be more justified to sell.'
The Laguna Park sale has been surrounded by drama from the word go. The development obtained the 80 per cent approval from the 500 or so owners late last year, but the $1.2 billion price was decided late 2007.
There was still a vocal minority strongly opposed to a sale, and incidents of vandalism occurred at the condo protesting the deal.
Laguna is a former HUDC estate with a land area of about 677,493 sq ft and a gross plot ratio of 2.8.
If the sale of the 528-unit leasehold project had come off, it would have only been the second en bloc deal this year. The first was the smaller Dragon Mansion in Spottiswoode Park Road, which eventually sold for $100.8 million last month despite asking for $120 million.
ST : Industrial site in Balestier up for sale
Nov 19, 2009
Industrial site in Balestier up for sale
A PIECE of industrial land in Balestier, which can be converted into a residential project, has been put up for sale.
The freehold 27,838 sq ft plot can be turned into a development comprising some 100 apartments with an average size of 780 sq ft each, said marketing agent Credo Real Estate.
The four owners of the four three-storey terrace factory units at 6 Jalan Ampas are hoping for $27 million to $30 million.
But the buyer of the land will also have to pay a development charge of about $18.7 million for the rezoning of the site.
The indicative price range after factoring in the development charge works out to $586 to $625 per sq ft per plot ratio. At this price, the developer's breakeven point is $950 to $1,000 psf, said Credo's deputy managing director, Mr Tan Hong Boon.
The site is near the Shaw Plaza mall and recently-launched Prestige Heights, where some units were sold in October at a median price of $1,322 psf.
Mr Tan said the four owners could be the first industrial owners in the area to initiate a sale, after the Urban Redevelopment Authority's review of the area's 15 industrial buildings in July last year.
The URA said it was prepared to consider proposals to change the use of the site from industrial to residential purposes at a gross plot ratio of 2.8.
But Mr Tan said the hefty development charge may mean it will be a while before the owners of the area's 14 other industrial buildings find a collective sale worthwhile.
Meanwhile, the collective sale of The Meyer Place condo off Meyer Road has yet to be wrapped up. The tender closed on Oct 28 with no firm bids. There is apparently an offer that is $6 million below the owners' reserve price of $65 million.
Industrial site in Balestier up for sale
A PIECE of industrial land in Balestier, which can be converted into a residential project, has been put up for sale.
The freehold 27,838 sq ft plot can be turned into a development comprising some 100 apartments with an average size of 780 sq ft each, said marketing agent Credo Real Estate.
The four owners of the four three-storey terrace factory units at 6 Jalan Ampas are hoping for $27 million to $30 million.
But the buyer of the land will also have to pay a development charge of about $18.7 million for the rezoning of the site.
The indicative price range after factoring in the development charge works out to $586 to $625 per sq ft per plot ratio. At this price, the developer's breakeven point is $950 to $1,000 psf, said Credo's deputy managing director, Mr Tan Hong Boon.
The site is near the Shaw Plaza mall and recently-launched Prestige Heights, where some units were sold in October at a median price of $1,322 psf.
Mr Tan said the four owners could be the first industrial owners in the area to initiate a sale, after the Urban Redevelopment Authority's review of the area's 15 industrial buildings in July last year.
The URA said it was prepared to consider proposals to change the use of the site from industrial to residential purposes at a gross plot ratio of 2.8.
But Mr Tan said the hefty development charge may mean it will be a while before the owners of the area's 14 other industrial buildings find a collective sale worthwhile.
Meanwhile, the collective sale of The Meyer Place condo off Meyer Road has yet to be wrapped up. The tender closed on Oct 28 with no firm bids. There is apparently an offer that is $6 million below the owners' reserve price of $65 million.
ST : Property tax on HDB flats going up
Nov 19, 2009
Property tax on HDB flats going up
One-off rebate to cushion rise; one- and two-room owners will pay nothing
By Jessica Cheam
HOMEOWNERS: be prepared to pay higher property taxes next year.
In line with the rally in home prices, the taxman is revising upwards the value of Housing Board (HDB) homes.
The Inland Revenue Authority of Singapore (Iras) announced yesterday that the annual values (AV) of all types of HDB flats will be raised with effect from Jan 1.
This will mean a hike in property taxes for 2010.
The property tax rate in Singapore is currently set at 10 per cent of a property's AV, although owner- occupied residential properties enjoy a concessionary 4 per cent tax rate.
To soften the impact, a one-off rebate is being introduced to help HDB homeowners adjust to the increase.
With this new rebate and ongoing GST rebates, low-income households who live in one-room or two- room flats will not have to pay any tax for 2010, Iras said.
Industry analysts yesterday said that Iras's latest move was 'not totally unexpected'. HDB resale prices have risen a hefty 31.2 per cent in the past two years, and a further 3.8 per cent in the first nine months of the year.
'As HDB resale flat prices have exceeded the property peak of 2007, this was inevitable,' said Ngee Ann Polytechnic real estate lecturer Nicholas Mak.
What was more surprising, however, was the timing of the announcement.
'There are households who are still reeling from the recession, and unemployment is still high. It could have come a bit later when the job market has recovered,' said Mr Mak.
Iras last revised AVs on Jan 1, 2008.
It said yesterday that it reviews all property AVs annually, including HDB flats, to 'ensure that they reflect prevailing market rental values for the purpose of determining property tax'.
AVs of HDB flats were not revised last year, despite HDB rentals increasing by between 31 per cent and 37 per cent in 2008 relative to 2007, it said.
This adjustment was deferred in view of the uncertainty in market rental trends caused by the economic recession. Iras added that there was evidence of rental value declines due to the negative economic outlook at the time.
However, market sentiment has since changed dramatically. Iras noted that HDB rentals stabilised after a moderate decline from late 2008 to the middle of this year, and have since begun to rise.
As a result, current values of HDB rentals, as well as resale prices, are still significantly higher than levels seen in 2007.
'The AVs of HDB flats will, therefore, have to be adjusted beyond the last revision in January 2008,' said Iras.
But to help HDB homeowners adjust to the rise, the Government is granting a new property tax rebate to all HDB owner-occupiers for property tax payable in 2010 - set at 50 per cent of the property tax payable and capped at $120. Low-income households will be assisted because flats with a property tax of $50 and below will not need to pay property tax next year.
The average three- room HDB owner-occupier will face an increase, after rebates, of $72 for the year.
The rise will be about $97 for four-roomers, $107 for five-roomers and $103 for executive HDB flat owners.
PropNex chief executive Mohamed Ismail said the rebates will help cushion the blow. He pointed out that HDB owners have enjoyed higher rentals and resale values over the past two years, so the increase in taxes was 'to be expected'.
HDB homeowner Lim Chye Boon, 48, said he had expected the tax increase to come 'at some point' so was not too bothered.
But for Mr Kenny Koh, 27, who has just bought his five-room flat in Sengkang, it was not welcome news.
'I just spent so much money buying my new home and now have to pay more again,' he said. 'But at least, the rebate helps a bit.'
Property tax on HDB flats going up
One-off rebate to cushion rise; one- and two-room owners will pay nothing
By Jessica Cheam
HOMEOWNERS: be prepared to pay higher property taxes next year.
In line with the rally in home prices, the taxman is revising upwards the value of Housing Board (HDB) homes.
The Inland Revenue Authority of Singapore (Iras) announced yesterday that the annual values (AV) of all types of HDB flats will be raised with effect from Jan 1.
This will mean a hike in property taxes for 2010.
The property tax rate in Singapore is currently set at 10 per cent of a property's AV, although owner- occupied residential properties enjoy a concessionary 4 per cent tax rate.
To soften the impact, a one-off rebate is being introduced to help HDB homeowners adjust to the increase.
With this new rebate and ongoing GST rebates, low-income households who live in one-room or two- room flats will not have to pay any tax for 2010, Iras said.
Industry analysts yesterday said that Iras's latest move was 'not totally unexpected'. HDB resale prices have risen a hefty 31.2 per cent in the past two years, and a further 3.8 per cent in the first nine months of the year.
'As HDB resale flat prices have exceeded the property peak of 2007, this was inevitable,' said Ngee Ann Polytechnic real estate lecturer Nicholas Mak.
What was more surprising, however, was the timing of the announcement.
'There are households who are still reeling from the recession, and unemployment is still high. It could have come a bit later when the job market has recovered,' said Mr Mak.
Iras last revised AVs on Jan 1, 2008.
It said yesterday that it reviews all property AVs annually, including HDB flats, to 'ensure that they reflect prevailing market rental values for the purpose of determining property tax'.
AVs of HDB flats were not revised last year, despite HDB rentals increasing by between 31 per cent and 37 per cent in 2008 relative to 2007, it said.
This adjustment was deferred in view of the uncertainty in market rental trends caused by the economic recession. Iras added that there was evidence of rental value declines due to the negative economic outlook at the time.
However, market sentiment has since changed dramatically. Iras noted that HDB rentals stabilised after a moderate decline from late 2008 to the middle of this year, and have since begun to rise.
As a result, current values of HDB rentals, as well as resale prices, are still significantly higher than levels seen in 2007.
'The AVs of HDB flats will, therefore, have to be adjusted beyond the last revision in January 2008,' said Iras.
But to help HDB homeowners adjust to the rise, the Government is granting a new property tax rebate to all HDB owner-occupiers for property tax payable in 2010 - set at 50 per cent of the property tax payable and capped at $120. Low-income households will be assisted because flats with a property tax of $50 and below will not need to pay property tax next year.
The average three- room HDB owner-occupier will face an increase, after rebates, of $72 for the year.
The rise will be about $97 for four-roomers, $107 for five-roomers and $103 for executive HDB flat owners.
PropNex chief executive Mohamed Ismail said the rebates will help cushion the blow. He pointed out that HDB owners have enjoyed higher rentals and resale values over the past two years, so the increase in taxes was 'to be expected'.
HDB homeowner Lim Chye Boon, 48, said he had expected the tax increase to come 'at some point' so was not too bothered.
But for Mr Kenny Koh, 27, who has just bought his five-room flat in Sengkang, it was not welcome news.
'I just spent so much money buying my new home and now have to pay more again,' he said. 'But at least, the rebate helps a bit.'
ST : Clementi Mall a potential shopping hub
Nov 18, 2009
Clementi Mall a potential shopping hub
Bullish bid attributed to its ability to generate recurring income: SPH
By Jessica Cheam
CLEMENTI Mall's potential as a busy shopping hub and its ability to generate recurring income were key reasons for the bullish bid from Singapore Press Holdings (SPH) and its joint venture partners.
SPH chief executive Alan Chan told a briefing yesterday that the team behind the winning $541.9 million tender based its bid on rents the mall could achieve beyond the first rental cycle.
Mr Chan said the bidding team was confident of achieving rents of top suburban malls and that the mall will enjoy capital appreciation similar to other retail properties in land-scarce Singapore.
'Due to scarcity of land and growing population, prospect for capital appreciation is positive,' he added.
Times Properties owns 60 per cent of the joint venture CM Domain; NTUC Income and NTUC FairPrice hold 20 per cent stakes. The Housing Board awarded the shopping centre site to it yesterday.
Some analysts were taken aback when bids for the tender of the 99-year leasehold mall at the junction of Commonwealth Avenue West and Clementi Avenue 3 were revealed last week.
CM Domain's bullish offer was nearly 42 per cent above the second-highest bid of $382 million from a joint venture between Keppel Land's Alpha Investment Partners and Guthrie.
SPH shares reacted by sliding 3.9 per cent the next day, but have since regained some ground. The company noted that the value of its Paragon investment in Orchard Road had increased at a compounded annual growth rate of 8 per cent since it was acquired in 1997. Some market watchers at the time had thought that the price paid for the shopping mall in Orchard Road was on the high side.
Mr Chan said that Clementi Mall has 'a unique opportunity to be the anchor attraction' in the area, adding that already '300 interested tenants have registered their interest'. SPH was also on the lookout for recurrent revenue streams and felt this was a great opportunity. The company is confident of achieving similar yields as those achieved by the top suburban malls and aims to open the mall by the first half of 2011.
Mr Chan clarified that the total cost of the mall would come under $3,000 psf of retail net floor area - less than analyst estimates - as the fit-out will be less than $40 million, subject to final negotiations with contractors. CM Domain needs to fit out the mall as the HDB is building only the shell structure. HDB will hand over the structure by next August.
An SPH statement also released yesterday said the offer price was 'arrived at after considering the economic potential of the property based on stabilised operations after rental renewal cycle and enhancing yield over time'. It said that factors such as the expected net lettable area, rental rates and property yields, market positioning and trade and tenant mix were taken into account.
Chesterton Suntec International's research and consultancy director Colin Tan said yesterday the bids by other players in the market show that they were perhaps not as optimistic.
The joint venture's cash-rich partners also likely had allowed it to bid so bullishly, he added.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak noted that it was usual for bidders to bid on a property's potential. 'If someone sees a gem stone in the rough, they could bid bullishly for it as they see the potential,' he said. 'If the mall can achieve 5 to 6 per cent net yield, it's pretty decent.'
He pointed out that the mall does not have immediate competition and will have a large catchment of shoppers from the Holland, Bukit Timah and West Coast areas. The site, which has direct links to the Clementi MRT station, is part of a larger HDB project comprising two 40-storey blocks of flats, a carpark, roof garden and a bus interchange. The mall will occupy basement one, the third and fourth levels and part of the fifth floor. Total gross floor area is about 25,000 sq m while the net floor area is up to 18,000 sq m.
Mr Chan said the mall will be driven by a strong retail team from SPH, NTUC FairPrice and Income - all with a proven track record in suburban malls.
The purchase will be financed through internal funds with gearing for yield enhancement, and will not have an impact on dividends, he said.
SPH shares closed two cents down at $3.77 yesterday.
jcheam@sph.com.sg
Clementi Mall a potential shopping hub
Bullish bid attributed to its ability to generate recurring income: SPH
By Jessica Cheam
CLEMENTI Mall's potential as a busy shopping hub and its ability to generate recurring income were key reasons for the bullish bid from Singapore Press Holdings (SPH) and its joint venture partners.
SPH chief executive Alan Chan told a briefing yesterday that the team behind the winning $541.9 million tender based its bid on rents the mall could achieve beyond the first rental cycle.
Mr Chan said the bidding team was confident of achieving rents of top suburban malls and that the mall will enjoy capital appreciation similar to other retail properties in land-scarce Singapore.
'Due to scarcity of land and growing population, prospect for capital appreciation is positive,' he added.
Times Properties owns 60 per cent of the joint venture CM Domain; NTUC Income and NTUC FairPrice hold 20 per cent stakes. The Housing Board awarded the shopping centre site to it yesterday.
Some analysts were taken aback when bids for the tender of the 99-year leasehold mall at the junction of Commonwealth Avenue West and Clementi Avenue 3 were revealed last week.
CM Domain's bullish offer was nearly 42 per cent above the second-highest bid of $382 million from a joint venture between Keppel Land's Alpha Investment Partners and Guthrie.
SPH shares reacted by sliding 3.9 per cent the next day, but have since regained some ground. The company noted that the value of its Paragon investment in Orchard Road had increased at a compounded annual growth rate of 8 per cent since it was acquired in 1997. Some market watchers at the time had thought that the price paid for the shopping mall in Orchard Road was on the high side.
Mr Chan said that Clementi Mall has 'a unique opportunity to be the anchor attraction' in the area, adding that already '300 interested tenants have registered their interest'. SPH was also on the lookout for recurrent revenue streams and felt this was a great opportunity. The company is confident of achieving similar yields as those achieved by the top suburban malls and aims to open the mall by the first half of 2011.
Mr Chan clarified that the total cost of the mall would come under $3,000 psf of retail net floor area - less than analyst estimates - as the fit-out will be less than $40 million, subject to final negotiations with contractors. CM Domain needs to fit out the mall as the HDB is building only the shell structure. HDB will hand over the structure by next August.
An SPH statement also released yesterday said the offer price was 'arrived at after considering the economic potential of the property based on stabilised operations after rental renewal cycle and enhancing yield over time'. It said that factors such as the expected net lettable area, rental rates and property yields, market positioning and trade and tenant mix were taken into account.
Chesterton Suntec International's research and consultancy director Colin Tan said yesterday the bids by other players in the market show that they were perhaps not as optimistic.
The joint venture's cash-rich partners also likely had allowed it to bid so bullishly, he added.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak noted that it was usual for bidders to bid on a property's potential. 'If someone sees a gem stone in the rough, they could bid bullishly for it as they see the potential,' he said. 'If the mall can achieve 5 to 6 per cent net yield, it's pretty decent.'
He pointed out that the mall does not have immediate competition and will have a large catchment of shoppers from the Holland, Bukit Timah and West Coast areas. The site, which has direct links to the Clementi MRT station, is part of a larger HDB project comprising two 40-storey blocks of flats, a carpark, roof garden and a bus interchange. The mall will occupy basement one, the third and fourth levels and part of the fifth floor. Total gross floor area is about 25,000 sq m while the net floor area is up to 18,000 sq m.
Mr Chan said the mall will be driven by a strong retail team from SPH, NTUC FairPrice and Income - all with a proven track record in suburban malls.
The purchase will be financed through internal funds with gearing for yield enhancement, and will not have an impact on dividends, he said.
SPH shares closed two cents down at $3.77 yesterday.
jcheam@sph.com.sg
TODAY Online : Higher property taxes in 2010
Higher property taxes in 2010
To cushion the rise, Govt to give a one-off rebate of 50%
by Esther Ng 05:55 AM Nov 19, 2009
SINGAPORE - Expect to pay higher property taxes next year, but the rise will come with some cushioning. The Inland Revenue Authority of Singapore (Iras) has announced that it is raising the Annual Value (AV) of Housing Development Board (HDB) flats.
The move comes on the back of rising resale prices and rents.
The tax authority noted that while rents for HDB flats have stabilised after a moderate decline between the end of last year and the middle of this year, rentals have begun to rise since.
"As a result, current values of HDB rentals, as well as HDB resale prices, are still significantly higher than levels observed in 2007. The AVs of HDB flats will therefore have to be adjusted," said Iras.
The last time there was a revision in the AV for HDB flats was in January last year.
Even though HDB rental increased by up to 37 per cent last year relative to 2007, Iras deferred adjusting the AV for the start of this year because of the "uncertainty in market rental trends" in a recession.
To help HDB flat owners cope with the increase in January, the Government will give a one-off property tax rebate of 50 per cent of the tax payable, capped at $120. This applies to all those who live in the flats they own.
To help those in smaller flats, Iras will offset the total tax amount for households which have to pay property tax of $50 or less. This would mean that two-roomers will not need to pay property tax.
"It will help soften the blow," said real estate consultant Nicholas Mak.
He added that owner-occupiers of HDB flats will not be affected that much as "property tax on HDB is lower than (that of) private property".
On average, the increase will in property tax will be $72 for three-room flats, $97 for four-room flats, $107 for five-room flats and $103 for those in executive flats.
For those renting out their HDB flats and who will not receive the rebate, Mr Mak said that with demand still buoyant from the immigrant population, the "increase in rentals could offset the increase in AV". As of March this year, HDB has approved 22,754 applications by owners to rent out their units.
The Government will have other help measures for the "down-and-out", added Member of Parliament Ho Geok Choo, a Government Parliamentary Committee member for national development.
A higher AV may also have implications for inflation, although economists were mixed about the expectations of the impact
"It will be benign because underlying inflation is low," said DBS economist Irvin Seah.
While others expect headline inflation to go up, unlike in Jan 2008 - when the government last raised the AV of public flats - it will not hit the heights of 6.6 per cent then.
"The housing component is a large contributor to the CPI basket and inflation might reach 2 to 4 per cent by the first quarter," said CIMB-GK economist Song Seng Wun, who added, though, that higher food, utility and COE prices could present greater upside pressure.
To cushion the rise, Govt to give a one-off rebate of 50%
by Esther Ng 05:55 AM Nov 19, 2009
SINGAPORE - Expect to pay higher property taxes next year, but the rise will come with some cushioning. The Inland Revenue Authority of Singapore (Iras) has announced that it is raising the Annual Value (AV) of Housing Development Board (HDB) flats.
The move comes on the back of rising resale prices and rents.
The tax authority noted that while rents for HDB flats have stabilised after a moderate decline between the end of last year and the middle of this year, rentals have begun to rise since.
"As a result, current values of HDB rentals, as well as HDB resale prices, are still significantly higher than levels observed in 2007. The AVs of HDB flats will therefore have to be adjusted," said Iras.
The last time there was a revision in the AV for HDB flats was in January last year.
Even though HDB rental increased by up to 37 per cent last year relative to 2007, Iras deferred adjusting the AV for the start of this year because of the "uncertainty in market rental trends" in a recession.
To help HDB flat owners cope with the increase in January, the Government will give a one-off property tax rebate of 50 per cent of the tax payable, capped at $120. This applies to all those who live in the flats they own.
To help those in smaller flats, Iras will offset the total tax amount for households which have to pay property tax of $50 or less. This would mean that two-roomers will not need to pay property tax.
"It will help soften the blow," said real estate consultant Nicholas Mak.
He added that owner-occupiers of HDB flats will not be affected that much as "property tax on HDB is lower than (that of) private property".
On average, the increase will in property tax will be $72 for three-room flats, $97 for four-room flats, $107 for five-room flats and $103 for those in executive flats.
For those renting out their HDB flats and who will not receive the rebate, Mr Mak said that with demand still buoyant from the immigrant population, the "increase in rentals could offset the increase in AV". As of March this year, HDB has approved 22,754 applications by owners to rent out their units.
The Government will have other help measures for the "down-and-out", added Member of Parliament Ho Geok Choo, a Government Parliamentary Committee member for national development.
A higher AV may also have implications for inflation, although economists were mixed about the expectations of the impact
"It will be benign because underlying inflation is low," said DBS economist Irvin Seah.
While others expect headline inflation to go up, unlike in Jan 2008 - when the government last raised the AV of public flats - it will not hit the heights of 6.6 per cent then.
"The housing component is a large contributor to the CPI basket and inflation might reach 2 to 4 per cent by the first quarter," said CIMB-GK economist Song Seng Wun, who added, though, that higher food, utility and COE prices could present greater upside pressure.
Subscribe to:
Posts (Atom)
Posts
