Non-residential property values tripled in 2009
Dec 18, 2009 - PropertyGuru.com.sg
Singapore’s non-residential property values have more than tripled this year.
Auction house of Jones Lang LaSalle (JLL) said yesterday the quantum of non-residential properties surged to $101.18 million from last year’s $26.9 million.
It said the increase is mainly due to investor’s attraction to the higher rental yield of non-residential properties compared to the residential property investments.
Number of mortgagee sales dropped to 216 this year from 232 last year. The total number of properties held up in auctions had declined from 803 in 2008 to 729 up to date.
About 119 properties were sold at auctions this year with a total value of about $167.3 million. These figures are in contrast to the 68 properties sold in 2008, which amounted to a total value of $69.8 million only.
JLL foresees more owner sales in auctions by 2010. It also predicts an increase as owners will be more attracted to the competitive nature of the auction environment and the higher chance of achieving the best price for their property.
Friday, December 18, 2009
Where are property prices in Asia heading
Where are property prices in Asia heading
Dec 18, 2009 - PropertyGuru.com.sg
Property prices in some parts of Asia have climbed sharply, prompting policymakers to rein in the sector and triggering worries about the formation of bubbles.
Here are some questions and answers on where prices are headed, where potential bubbles are, how they affect shares, and the policies that might be implemented by the government in 2010.
Where does the bubble threat loom largest?
Hong Kong and China experience the highest risks in Asia, followed by Singapore, as prices of properties have risen strongly, particularly during the second half of the year. This is attributed primarily to low interest rates, ample liquidity, and a rally in stock markets.
Some cities in China and Hong Kong's mass market have noticed the price increase of residential properties by about a third in 2009 while in Singapore, prices of private homes surged 16 percent in Q3 from Q2, the biggest jump this decade.
“Singapore and Hong Kong are held up as examples of the effects of excess liquidity and credit in Asia. The residential-property data certainly raises cause for concern,” said Mr. Alaistair Chan, an economist at Moody's economy.com.
The aggressive stimulus measures of China and developers canceling some projects late last year due to the economic downturn helped accelerate prices in 2009 while the limited land in Hong Kong, coupled with a government land-sales hiatus hiked up prices.
Earlier this year, the bubble threat also surfaced in South Korea and Australia, though various policies of the government have eased those fears.
How do potential bubbles affect shares?
Property shares have been surmounting major indexes in Hong Kong, China, and Singapore with sector sub-indexes rising by 70 percent to more than doubling.
Shares of China Overseas Land and Investment, the top developer in China, and CapitaLand in Singapore, the largest developer in South-east Asia, have significantly surpassed their local market indexes.
While some property stocks are possible to continue outpacing the broad markets in 2010, gains will be subdued due to wariness over the tightening policies of the government as they work to rebuff a possible property-market meltdown.
If a bubble bursts, it could restrain property agents and developers who have been exposed to the affected markets.
Where are prices of properties headed in 2010?
Most of the high price increases in Asia are seen in the residential sector as the company’s hesitation to hire kept office space demand relatively frail in the region.
In most markets, residential prices are set to stabilize in 2010 with gradual growth expected compared to the large swings in 2009. Prices from Japan to Singapore are anticipated to either rise by almost 10 percent or remain stable.
A Reuters’ poll showed that residential prices in China are anticipated to climb by as much as 5 percent by the end of 2010 from now.
Comparatively, commercial prices are likely to move on steady trend or grow marginally in China. However, according to industry executives and analysts, it might see a more substantial increase in Singapore.
What policies will the governments come up with?
Some countries have come up with monetary and property-related policies to ease concerns of speculation.
Australia raised interest rates earlier this month for a third straight time, while South Korea imposed in September mortgage lending in Seoul and nearby areas to staunch a housing boom. In the coming months, governments across Asia will possibly resort to releasing taxes, land supply and bank-lending measures to stabilize property prices instead of utilizing monetary tools as inflation is still benign.
“Governments are nevertheless unlikely to crack down on speculation too harshly. One worry is that this could deter legitimate investment, causing the market to slump,” Mr. Chan said.
Dec 18, 2009 - PropertyGuru.com.sg
Property prices in some parts of Asia have climbed sharply, prompting policymakers to rein in the sector and triggering worries about the formation of bubbles.
Here are some questions and answers on where prices are headed, where potential bubbles are, how they affect shares, and the policies that might be implemented by the government in 2010.
Where does the bubble threat loom largest?
Hong Kong and China experience the highest risks in Asia, followed by Singapore, as prices of properties have risen strongly, particularly during the second half of the year. This is attributed primarily to low interest rates, ample liquidity, and a rally in stock markets.
Some cities in China and Hong Kong's mass market have noticed the price increase of residential properties by about a third in 2009 while in Singapore, prices of private homes surged 16 percent in Q3 from Q2, the biggest jump this decade.
“Singapore and Hong Kong are held up as examples of the effects of excess liquidity and credit in Asia. The residential-property data certainly raises cause for concern,” said Mr. Alaistair Chan, an economist at Moody's economy.com.
The aggressive stimulus measures of China and developers canceling some projects late last year due to the economic downturn helped accelerate prices in 2009 while the limited land in Hong Kong, coupled with a government land-sales hiatus hiked up prices.
Earlier this year, the bubble threat also surfaced in South Korea and Australia, though various policies of the government have eased those fears.
How do potential bubbles affect shares?
Property shares have been surmounting major indexes in Hong Kong, China, and Singapore with sector sub-indexes rising by 70 percent to more than doubling.
Shares of China Overseas Land and Investment, the top developer in China, and CapitaLand in Singapore, the largest developer in South-east Asia, have significantly surpassed their local market indexes.
While some property stocks are possible to continue outpacing the broad markets in 2010, gains will be subdued due to wariness over the tightening policies of the government as they work to rebuff a possible property-market meltdown.
If a bubble bursts, it could restrain property agents and developers who have been exposed to the affected markets.
Where are prices of properties headed in 2010?
Most of the high price increases in Asia are seen in the residential sector as the company’s hesitation to hire kept office space demand relatively frail in the region.
In most markets, residential prices are set to stabilize in 2010 with gradual growth expected compared to the large swings in 2009. Prices from Japan to Singapore are anticipated to either rise by almost 10 percent or remain stable.
A Reuters’ poll showed that residential prices in China are anticipated to climb by as much as 5 percent by the end of 2010 from now.
Comparatively, commercial prices are likely to move on steady trend or grow marginally in China. However, according to industry executives and analysts, it might see a more substantial increase in Singapore.
What policies will the governments come up with?
Some countries have come up with monetary and property-related policies to ease concerns of speculation.
Australia raised interest rates earlier this month for a third straight time, while South Korea imposed in September mortgage lending in Seoul and nearby areas to staunch a housing boom. In the coming months, governments across Asia will possibly resort to releasing taxes, land supply and bank-lending measures to stabilize property prices instead of utilizing monetary tools as inflation is still benign.
“Governments are nevertheless unlikely to crack down on speculation too harshly. One worry is that this could deter legitimate investment, causing the market to slump,” Mr. Chan said.
2009 property auction sales double to $168.4 million
2009 property auction sales double to $168.4 million
Dec 18, 2009 - PropertyGuru.com.sg
Property auction sales are expected to continue rising in 2010, stimulated by interest in the high-end residential market, Colliers International said. The total value of properties sold at auctions may exceed $200 million next year, after the figure doubled in 2009 from $83.7 million last year to around $168.4 million.
There were a total of 118 properties sold at auctions this year, up from 72 last year.
The residential property was the top performer, accounting for around 52 percent of total value of auction sales.
Unlike early expectation in some quarters, the volume of mortgagee properties included on the auction block dropped 25 percent to 195. The figure includes other forced sales by some management firms and the Inland Revenue Authority of Singapore.
“The low number of mortgagee sales could be due to the introduction of the government's Jobs Credit scheme, which stabilized the employment market. This, in turn, provided some home owners with the ability to service their monthly mortgage loans,” says Grace Ng, auctioneer and deputy managing director (agency and business services) of Colliers International.
The number of properties, which their owners put up for auction, increased 10 percent to 732.
“Owners are attracted by the competitive nature of the auction environment and the high chance of attaining an optimum price for their property.” said Mok Sze Sze, head of auctions at Jones Lang LaSalle.
She expects to see a new wave of owners putting their properties on the auction block by 2010 and as the economy continues to recover, mortgagee sales will further decrease in number.
Colliers highlighted over 200 percent rise in the sales value of industrial and residential properties sold at auction in 2009 to $20 million and $88.4 million, respectively. Popular for both non-landed and landed segments are older residential properties with large areas.
The value of retail property sales transacted at auctions increased to $43.4 million from $34.6 million last year.
The $168.4 million auction tally for this year is about 59 percent below the peak figures of $407.43 million set in 2007 and $409.46 million in 1999.
Dec 18, 2009 - PropertyGuru.com.sg
Property auction sales are expected to continue rising in 2010, stimulated by interest in the high-end residential market, Colliers International said. The total value of properties sold at auctions may exceed $200 million next year, after the figure doubled in 2009 from $83.7 million last year to around $168.4 million.
There were a total of 118 properties sold at auctions this year, up from 72 last year.
The residential property was the top performer, accounting for around 52 percent of total value of auction sales.
Unlike early expectation in some quarters, the volume of mortgagee properties included on the auction block dropped 25 percent to 195. The figure includes other forced sales by some management firms and the Inland Revenue Authority of Singapore.
“The low number of mortgagee sales could be due to the introduction of the government's Jobs Credit scheme, which stabilized the employment market. This, in turn, provided some home owners with the ability to service their monthly mortgage loans,” says Grace Ng, auctioneer and deputy managing director (agency and business services) of Colliers International.
The number of properties, which their owners put up for auction, increased 10 percent to 732.
“Owners are attracted by the competitive nature of the auction environment and the high chance of attaining an optimum price for their property.” said Mok Sze Sze, head of auctions at Jones Lang LaSalle.
She expects to see a new wave of owners putting their properties on the auction block by 2010 and as the economy continues to recover, mortgagee sales will further decrease in number.
Colliers highlighted over 200 percent rise in the sales value of industrial and residential properties sold at auction in 2009 to $20 million and $88.4 million, respectively. Popular for both non-landed and landed segments are older residential properties with large areas.
The value of retail property sales transacted at auctions increased to $43.4 million from $34.6 million last year.
The $168.4 million auction tally for this year is about 59 percent below the peak figures of $407.43 million set in 2007 and $409.46 million in 1999.
ST : Fall in foreign students
Dec 18, 2009
Fall in foreign students
Recession and dent in reputation caused by dodgy schools behind the dip
By Sandra Davie, Senior Writer
Some potential foreign students are still wary after the closure of several private schools here, including Brookes Business School (above), which was shut down in July. -- ST FILE PHOTO
THE double whammy of recession and scandals over dodgy schools has made this a grim year for the education sector with the number of foreign students falling for the first time in years.
Industry leaders who had tipped a record year are now looking for answers with many hopes pinned on tough new laws to drive out the shady operators.
There were 97,000 foreign students in local schools here at the end of last year, but this October, the figure had dipped to 95,500, according to the Immigration & Checkpoints Authority, which issues visas for such students. In 2006, there were 86,000 foreign students here.
It is the first time there has been a dip in foreign student numbers since the education hub plan was launched in 2003.
The decline is disappointing news for many in the private education industry who had expected to celebrate reaching 100,000 early this year, just 50,000 students short of the 150,000 targeted number for 2015.
Mr Andrew Chua, who founded East Asia Institute of Management and now heads the Association of Private Schools and Colleges, blames the two Rs - recession and Singapore's reputation as an education destination.
Fall in foreign students
Recession and dent in reputation caused by dodgy schools behind the dip
By Sandra Davie, Senior Writer
Some potential foreign students are still wary after the closure of several private schools here, including Brookes Business School (above), which was shut down in July. -- ST FILE PHOTO
THE double whammy of recession and scandals over dodgy schools has made this a grim year for the education sector with the number of foreign students falling for the first time in years.
Industry leaders who had tipped a record year are now looking for answers with many hopes pinned on tough new laws to drive out the shady operators.
There were 97,000 foreign students in local schools here at the end of last year, but this October, the figure had dipped to 95,500, according to the Immigration & Checkpoints Authority, which issues visas for such students. In 2006, there were 86,000 foreign students here.
It is the first time there has been a dip in foreign student numbers since the education hub plan was launched in 2003.
The decline is disappointing news for many in the private education industry who had expected to celebrate reaching 100,000 early this year, just 50,000 students short of the 150,000 targeted number for 2015.
Mr Andrew Chua, who founded East Asia Institute of Management and now heads the Association of Private Schools and Colleges, blames the two Rs - recession and Singapore's reputation as an education destination.
BT : Rising prices prompt bubble fears in Asia
Published December 17, 2009
Rising prices prompt bubble fears in Asia
Investors concerned a real estate bubble burst would derail the region's economic recovery
Biggest threats: China and Hong Kong face the highest risks in Asia, followed by Singapore, as property prices have risen strongly
(HONG KONG) Property prices in parts of Asia have risen sharply, sparking worries that bubbles are forming and prompting policymakers to rein in the sector.
Investors fear any real estate bubble burst could derail the region's nascent economic recovery in the way the US housing sector slump brought on the worst global downturn in decades.
Here are some questions and answers on where potential bubbles are, their impact on shares, where prices are headed and policies that governments might implement next year:
Bubble threat: where does it loom largest?
China and Hong Kong face the highest risks in Asia, followed by Singapore, as property prices have risen strongly, especially in the second half, due to ample liquidity, low interest rates and a rally in stock markets.
'If it (the China bubble) does burst, is that going to suddenly be a big burst? In this case, it's got a big impact on the rest of Asia,' said Jeremy Helsby, group CEO of UK-based property firm Savills .
Some cities in China and Hong Kong's mass market have seen residential prices rise by about a third this year, while in Singapore, private home prices soared 16 per cent in the third quarter from the previous quarter, the biggest jump this decade.
'Singapore and Hong Kong are held up as examples of the effects of excess liquidity and credit in Asia. The residential property data certainly raise cause for concern,' said Alaistair Chan, an economist at Moody's economy.com.
China's aggressive stimulus measures and developers halting some projects late last year due to the economic downturn helped push up prices this year, while Hong Kong's limited land, coupled with a government land sales hiatus boosted prices.
The bubble threat also surfaced in Australia and South Korea earlier this year though various government policies have allayed those fears.
What is the impact of potential bubbles on shares?
Property shares have been outpacing main indexes in China , Hong Kong and Singapore, with the sector sub-indices up by 70 per cent to more than doubling.
Shares of top Chinese developer China Overseas Land and Investment and Singapore's CapitaLand, South-east Asia's largest developer, have signifcantly outpaced their local market indexes.
While some real estate stocks are likely to continue to outperform the broad markets in 2010, gains will be muted due to wariness over governments' tightening policies as they act to fight off the potential of a property market meltdown.
'Next year, we won't see the exceptional returns we've seen in either financials or property shares. But I do think we will see some further but moderate growth in a number of property shares,' said Rod Cornish, division director at Macquarie Capital Advisors. If a bubble does burst, it could hamper developers and real estate agents exposed to the markets affected. For instance, if a bubble bursts in China, major developers in the market, such as Shimao Property , could see their earnings and share prices hurt, analysts said.
Where are property prices headed for next year?
Most of the huge price rises in Asia are in the residential sector as reluctance by companies to hire kept demand for office space relatively weak in the region.
Residential prices in most markets are set to stabilise next year, with rises seen gradual compared to the huge swings this year. Prices from Japan to Singapore are expected to either remain stable or rise by nearly 10 per cent.
Residential prices in China are expected to rise by as much as 5 per cent by the end of next year from now, a Reuters poll showed, less than gains logged for this year.
Comparatively, commercial prices will likely be steady or rise marginally in China, but might see a more significant increase in Singapore, analysts and industry executives say.
What kind of policies will governments come up with?
Some countries have already reacted with monetary and property-related policies to allay fears over speculation.
In December, Australia raised interest rates for a third straight time, while South Korea in September imposed mortgage lending in Seoul and nearby areas to stem a housing boom.
In the months ahead, governments in the rest of Asia will likely resort to releasing land supply, taxes and bank lending measures to stablise property prices, instead of using monetary tools, since inflation is still benign.
'Governments are nevertheless unlikely to crack down on speculation too harshly. One worry is that this could deter legitimate investment, causing the market to slump,' said Mr Chan at Moody's economy.com. -- Reuters
Rising prices prompt bubble fears in Asia
Investors concerned a real estate bubble burst would derail the region's economic recovery
Biggest threats: China and Hong Kong face the highest risks in Asia, followed by Singapore, as property prices have risen strongly
(HONG KONG) Property prices in parts of Asia have risen sharply, sparking worries that bubbles are forming and prompting policymakers to rein in the sector.
Investors fear any real estate bubble burst could derail the region's nascent economic recovery in the way the US housing sector slump brought on the worst global downturn in decades.
Here are some questions and answers on where potential bubbles are, their impact on shares, where prices are headed and policies that governments might implement next year:
Bubble threat: where does it loom largest?
China and Hong Kong face the highest risks in Asia, followed by Singapore, as property prices have risen strongly, especially in the second half, due to ample liquidity, low interest rates and a rally in stock markets.
'If it (the China bubble) does burst, is that going to suddenly be a big burst? In this case, it's got a big impact on the rest of Asia,' said Jeremy Helsby, group CEO of UK-based property firm Savills .
Some cities in China and Hong Kong's mass market have seen residential prices rise by about a third this year, while in Singapore, private home prices soared 16 per cent in the third quarter from the previous quarter, the biggest jump this decade.
'Singapore and Hong Kong are held up as examples of the effects of excess liquidity and credit in Asia. The residential property data certainly raise cause for concern,' said Alaistair Chan, an economist at Moody's economy.com.
China's aggressive stimulus measures and developers halting some projects late last year due to the economic downturn helped push up prices this year, while Hong Kong's limited land, coupled with a government land sales hiatus boosted prices.
The bubble threat also surfaced in Australia and South Korea earlier this year though various government policies have allayed those fears.
What is the impact of potential bubbles on shares?
Property shares have been outpacing main indexes in China , Hong Kong and Singapore, with the sector sub-indices up by 70 per cent to more than doubling.
Shares of top Chinese developer China Overseas Land and Investment and Singapore's CapitaLand, South-east Asia's largest developer, have signifcantly outpaced their local market indexes.
While some real estate stocks are likely to continue to outperform the broad markets in 2010, gains will be muted due to wariness over governments' tightening policies as they act to fight off the potential of a property market meltdown.
'Next year, we won't see the exceptional returns we've seen in either financials or property shares. But I do think we will see some further but moderate growth in a number of property shares,' said Rod Cornish, division director at Macquarie Capital Advisors. If a bubble does burst, it could hamper developers and real estate agents exposed to the markets affected. For instance, if a bubble bursts in China, major developers in the market, such as Shimao Property , could see their earnings and share prices hurt, analysts said.
Where are property prices headed for next year?
Most of the huge price rises in Asia are in the residential sector as reluctance by companies to hire kept demand for office space relatively weak in the region.
Residential prices in most markets are set to stabilise next year, with rises seen gradual compared to the huge swings this year. Prices from Japan to Singapore are expected to either remain stable or rise by nearly 10 per cent.
Residential prices in China are expected to rise by as much as 5 per cent by the end of next year from now, a Reuters poll showed, less than gains logged for this year.
Comparatively, commercial prices will likely be steady or rise marginally in China, but might see a more significant increase in Singapore, analysts and industry executives say.
What kind of policies will governments come up with?
Some countries have already reacted with monetary and property-related policies to allay fears over speculation.
In December, Australia raised interest rates for a third straight time, while South Korea in September imposed mortgage lending in Seoul and nearby areas to stem a housing boom.
In the months ahead, governments in the rest of Asia will likely resort to releasing land supply, taxes and bank lending measures to stablise property prices, instead of using monetary tools, since inflation is still benign.
'Governments are nevertheless unlikely to crack down on speculation too harshly. One worry is that this could deter legitimate investment, causing the market to slump,' said Mr Chan at Moody's economy.com. -- Reuters
BT : Prime rents in CBD area down 4.9% in Q4
Published December 17, 2009
Prime rents in CBD area down 4.9% in Q4
Rental gap between newly completed and existing Prime Grade A blocks expected to widen
By KALPANA RASHIWALA
(SINGAPORE) The average monthly rent for Prime Grade A office in the CBD core has fallen at a slower pace in the current fourth quarter, slipping 4.9 per cent from Q3, according to data from Jones Lang LaSalle (JLL).
This is a smaller quarter-on quarter decline than the drops of 13.7 per cent in Q3, 11.6 per cent in Q2 and 28.1 per cent in Q1 this year.
The $7.80 per sq ft average rental value in Q4 reflects a 47.8 per cent full-year slide. Against the high of $18.40 psf set in Q3 last year, the figure is now off 57.6 per cent.
JLL says the gap between newly completed Prime Grade A and other existing Grade A buildings is likely to widen over the next few years as new developments are completed. The gap is now 85 cents or 11 per cent. But it has been much wider - at $2 or more in Q3 2006, most of 2007 and even as recently as Q4 last year. In percentage terms, the difference was widest in Q3 2006, when rent for newly completed space was about 28 per cent higher than for existing offices.
Over the next three years, the average annual supply of new office space will be almost 2 million sq ft in the CBD core, and this is likely to dampen rental growth, says JLL's head of SE Asia research Chua Yang Liang.
For new Prime Grade A properties that have been well received by the market so far, rents may bottom out as early as H2 2010. However, rents in existing office blocks may continue to slide until the end of next year, as vacancies are expected to rise on the back of a 'flight to quality' by tenants.
JLL also says shadow office space - surplus stock put up for subletting by occupiers - has shrunk to about 600,000 sq ft this quarter from some 800,000 sq ft at its peak in Q2 2009.
If global and regional economies remain on the recovery track, JLL believes leasing activity is expected to become increasingly stronger during 2010, as companies become more confident about business prospects.
Prime rents in CBD area down 4.9% in Q4
Rental gap between newly completed and existing Prime Grade A blocks expected to widen
By KALPANA RASHIWALA
(SINGAPORE) The average monthly rent for Prime Grade A office in the CBD core has fallen at a slower pace in the current fourth quarter, slipping 4.9 per cent from Q3, according to data from Jones Lang LaSalle (JLL).
This is a smaller quarter-on quarter decline than the drops of 13.7 per cent in Q3, 11.6 per cent in Q2 and 28.1 per cent in Q1 this year.
The $7.80 per sq ft average rental value in Q4 reflects a 47.8 per cent full-year slide. Against the high of $18.40 psf set in Q3 last year, the figure is now off 57.6 per cent.
JLL says the gap between newly completed Prime Grade A and other existing Grade A buildings is likely to widen over the next few years as new developments are completed. The gap is now 85 cents or 11 per cent. But it has been much wider - at $2 or more in Q3 2006, most of 2007 and even as recently as Q4 last year. In percentage terms, the difference was widest in Q3 2006, when rent for newly completed space was about 28 per cent higher than for existing offices.
Over the next three years, the average annual supply of new office space will be almost 2 million sq ft in the CBD core, and this is likely to dampen rental growth, says JLL's head of SE Asia research Chua Yang Liang.
For new Prime Grade A properties that have been well received by the market so far, rents may bottom out as early as H2 2010. However, rents in existing office blocks may continue to slide until the end of next year, as vacancies are expected to rise on the back of a 'flight to quality' by tenants.
JLL also says shadow office space - surplus stock put up for subletting by occupiers - has shrunk to about 600,000 sq ft this quarter from some 800,000 sq ft at its peak in Q2 2009.
If global and regional economies remain on the recovery track, JLL believes leasing activity is expected to become increasingly stronger during 2010, as companies become more confident about business prospects.
BT : Han Seng Juan reaps handsome profit from GCB sale
Published December 17, 2009
Han Seng Juan reaps handsome profit from GCB sale
Stockbroker said to have sold Astrid Hill bungalow for $25.75m or $970 psf
By KALPANA RASHIWALA
(SINGAPORE) Former star stockbroker Han Seng Juan is believed to be the seller of a good class bungalow (GCB) in Astrid Hill that changed hands last month for $25.75 million. The price reflects about $970 per square foot on land area of over 26,000 sq ft.
The price is almost double what Mr Han is believed to have paid for the property. The bungalow previously changed hands in 2006 for $13.65 million or slightly over $500 psf on land area.
Earlier this year, Mr Han and his cousin David Loh left the stockbroking business to focus on their boutique private equity investment business.
Known as the A-Team within the industry or simply 'David and Han', the two men are now focusing their resources on growing Centurion Investment Management, a boutique Asian private equity company which they helped set up in 2004 with other partners to invest in small to medium-sized companies, especially in the Greater China region.
The duo also control Centurion Properties group, which has a majority stake in the company developing Kovan Residences.
Although no longer directly involved in the stockbroking industry as dealers at UOB-Kay Hian, it is believed that their associates are still operating in the same firm.
Mr Han, like many well-heeled Singaporeans, is said to own several bungalows, including one at Cluny Hill.
So far, caveats have been lodged for just six GCB transactions in November.
However, market watchers say there are other transactions that took place last month as well as in December for which caveats have yet to be lodged.
William Wong, managing director of RealStar Premier Property Consultant, says his firm has brokered the sale of four GCBs over the past few weeks for a total of about $57 million that have yet to be caveated.
The four properties are located at Swettenham Green, Holland Road, Garlick Avenue and Rebecca Road. Market watchers also point to the transaction of No 3 Leedon Park for close to $40 million or around $950 psf of land area, which has yet to surface in caveats.
GCBs are an exclusive housing form governed by stringent planning criteria.
Han Seng Juan reaps handsome profit from GCB sale
Stockbroker said to have sold Astrid Hill bungalow for $25.75m or $970 psf
By KALPANA RASHIWALA
(SINGAPORE) Former star stockbroker Han Seng Juan is believed to be the seller of a good class bungalow (GCB) in Astrid Hill that changed hands last month for $25.75 million. The price reflects about $970 per square foot on land area of over 26,000 sq ft.
The price is almost double what Mr Han is believed to have paid for the property. The bungalow previously changed hands in 2006 for $13.65 million or slightly over $500 psf on land area.
Earlier this year, Mr Han and his cousin David Loh left the stockbroking business to focus on their boutique private equity investment business.
Known as the A-Team within the industry or simply 'David and Han', the two men are now focusing their resources on growing Centurion Investment Management, a boutique Asian private equity company which they helped set up in 2004 with other partners to invest in small to medium-sized companies, especially in the Greater China region.
The duo also control Centurion Properties group, which has a majority stake in the company developing Kovan Residences.
Although no longer directly involved in the stockbroking industry as dealers at UOB-Kay Hian, it is believed that their associates are still operating in the same firm.
Mr Han, like many well-heeled Singaporeans, is said to own several bungalows, including one at Cluny Hill.
So far, caveats have been lodged for just six GCB transactions in November.
However, market watchers say there are other transactions that took place last month as well as in December for which caveats have yet to be lodged.
William Wong, managing director of RealStar Premier Property Consultant, says his firm has brokered the sale of four GCBs over the past few weeks for a total of about $57 million that have yet to be caveated.
The four properties are located at Swettenham Green, Holland Road, Garlick Avenue and Rebecca Road. Market watchers also point to the transaction of No 3 Leedon Park for close to $40 million or around $950 psf of land area, which has yet to surface in caveats.
GCBs are an exclusive housing form governed by stringent planning criteria.
BT : Lend Lease's rating may be cut
Published December 17, 2009
Lend Lease's rating may be cut
(SYDNEY) Lend Lease Group's credit rating may be cut to junk by Moody's Investor Service and Standard & Poor's after Australia's largest developer said it's part of a group picked as the preferred bidder for a A$1.4 billion (S$1.76 billion) ING property fund.
A group led by Lend Lease was yesterday approved as the top choice for the buyout of 14 ING Retail Property Fund assets in Australia and New Zealand, including the Joondalup shopping centre in Perth and the Harbour Town complex on the Gold Coast.
Moody's and S&P, which rate Lend Lease at their lowest investment grades Baa3 and BBB- respectively, said they are concerned about the company's plan to take on 20 per cent of the buyout cost.
'The review reflects the expected use of cash and debt that would be employed in funding the above acquisitions, and the negative impact this would have on Lend Lease's credit metrics,' Clement Chong, senior analyst at Moody's, said in a statement.
'There is a real risk that the company's credit metrics may come under our tolerance for the Baa3 rating,' he added.
Lend Lease has already used most of its debt capacity under its current rating with the purchase of Lend Lease Primelife, S&P credit analysts Paul Draffin and Craig Parker said in a statement.
'Furthermore, Lend Lease continues to secure development opportunities that will place further pressure on the group's near- term debt levels,' they said.
Lend Lease shares closed unchanged at A$9.50 in Sydney.
'We will work with S&P to explain what the acquisition will mean for us,' Lend Lease Australia chief executive officer Tarun Gupta said in an interview.
ING spokeswoman Johanna Keating said the negotiations are 'progressing well.' She declined to elaborate. -- Bloomberg
Moody's and S&P are concerned about the company's plan to take on 20 per cent of ING's buyout cost.
Lend Lease's rating may be cut
(SYDNEY) Lend Lease Group's credit rating may be cut to junk by Moody's Investor Service and Standard & Poor's after Australia's largest developer said it's part of a group picked as the preferred bidder for a A$1.4 billion (S$1.76 billion) ING property fund.
A group led by Lend Lease was yesterday approved as the top choice for the buyout of 14 ING Retail Property Fund assets in Australia and New Zealand, including the Joondalup shopping centre in Perth and the Harbour Town complex on the Gold Coast.
Moody's and S&P, which rate Lend Lease at their lowest investment grades Baa3 and BBB- respectively, said they are concerned about the company's plan to take on 20 per cent of the buyout cost.
'The review reflects the expected use of cash and debt that would be employed in funding the above acquisitions, and the negative impact this would have on Lend Lease's credit metrics,' Clement Chong, senior analyst at Moody's, said in a statement.
'There is a real risk that the company's credit metrics may come under our tolerance for the Baa3 rating,' he added.
Lend Lease has already used most of its debt capacity under its current rating with the purchase of Lend Lease Primelife, S&P credit analysts Paul Draffin and Craig Parker said in a statement.
'Furthermore, Lend Lease continues to secure development opportunities that will place further pressure on the group's near- term debt levels,' they said.
Lend Lease shares closed unchanged at A$9.50 in Sydney.
'We will work with S&P to explain what the acquisition will mean for us,' Lend Lease Australia chief executive officer Tarun Gupta said in an interview.
ING spokeswoman Johanna Keating said the negotiations are 'progressing well.' She declined to elaborate. -- Bloomberg
Moody's and S&P are concerned about the company's plan to take on 20 per cent of ING's buyout cost.
ST : Dawson flats in hot demand
Dec 17, 2009
Dawson flats in hot demand
Studios, four- and five-room flats already oversubscribed after two days of applications
By Esther Teo
The 40 studio apartments on offer attracted 104 applications, the 270 three-room flats drew 159 applications, the 1,102 four-room flats pulled in 1,440 applications, and the 176 five-room flats saw 507 applications. -- PHOTO: HDB
AN AVALANCHE of home buyer applications has poured in for the eagerly awaited Dawson estate build-to-order (BTO) Housing Board flats in Queenstown.
Applications opened on Tuesday. And as of 5pm on Wednesday, the studio apartments, four-room and five-room flats at SkyTerrace and SkyVille had all been oversubscribed. And more than half of the three-room flats and paired units under the HDB's multi-generational living scheme had received applications.
The 40 studio apartments on offer attracted 104 applications, the 270 three-room flats drew 159 applications, the 1,102 four-room flats pulled in 1,440 applications, and the 176 five-room flats saw 507 applications.
For the 65 paired units in SkyTerrace, HDB received 44 applications.
Despite the higher prices of the Dawson flats, applicants seem to have been won over by their prime location and premium furnishings, such as timber flooring in the bedrooms. The apartment blocks are set to soar more than 40 floors when they are completed in 2015.
Sales executive Leonard Tan, 32, who took a day off work to make the trip to the HDB Hub in Toa Payoh with his family, said he was excited about the new launch.
Dawson flats in hot demand
Studios, four- and five-room flats already oversubscribed after two days of applications
By Esther Teo
The 40 studio apartments on offer attracted 104 applications, the 270 three-room flats drew 159 applications, the 1,102 four-room flats pulled in 1,440 applications, and the 176 five-room flats saw 507 applications. -- PHOTO: HDB
AN AVALANCHE of home buyer applications has poured in for the eagerly awaited Dawson estate build-to-order (BTO) Housing Board flats in Queenstown.
Applications opened on Tuesday. And as of 5pm on Wednesday, the studio apartments, four-room and five-room flats at SkyTerrace and SkyVille had all been oversubscribed. And more than half of the three-room flats and paired units under the HDB's multi-generational living scheme had received applications.
The 40 studio apartments on offer attracted 104 applications, the 270 three-room flats drew 159 applications, the 1,102 four-room flats pulled in 1,440 applications, and the 176 five-room flats saw 507 applications.
For the 65 paired units in SkyTerrace, HDB received 44 applications.
Despite the higher prices of the Dawson flats, applicants seem to have been won over by their prime location and premium furnishings, such as timber flooring in the bedrooms. The apartment blocks are set to soar more than 40 floors when they are completed in 2015.
Sales executive Leonard Tan, 32, who took a day off work to make the trip to the HDB Hub in Toa Payoh with his family, said he was excited about the new launch.
ST : Casinos will check IDs
Dec 17, 2009
Casinos will check IDs
Fines if they allow in blacklisted individuals such as bankrupts
By Theresa Tan
Be prepared to show your identity card when entering a casino here next year. --ST PHOTO: DESMOND WEE
BE prepared to show your identity card when entering a casino here next year.
Casino operators will be checking names against a database of banned individuals, which now includes 28,661 undischarged bankrupts, those on long-term government aid, and 75 individuals who have been excluded by their families or themselves.
On Wednesday, the National Council on Problem Gambling said it would hand over a list of those banned, with names and identity card numbers, to the casinos, which will have the responsibility of enforcing the ban.
Casinos which fail to do so could be fined up to $1million, though banned individuals who are caught sneaking in will not be punished.
'Criminalising it does not help,' said the council. 'If a person breaches the exclusion order, it is more important to counsel them so they understand what they have done.'
Making it an offence for those who are barred to enter the casino may also deter some families - already under severe strain from a gambler's debts and behaviour - from asking for the State's help to stop their loved ones from gambling at casinos here, said the council.
Casinos will check IDs
Fines if they allow in blacklisted individuals such as bankrupts
By Theresa Tan
Be prepared to show your identity card when entering a casino here next year. --ST PHOTO: DESMOND WEE
BE prepared to show your identity card when entering a casino here next year.
Casino operators will be checking names against a database of banned individuals, which now includes 28,661 undischarged bankrupts, those on long-term government aid, and 75 individuals who have been excluded by their families or themselves.
On Wednesday, the National Council on Problem Gambling said it would hand over a list of those banned, with names and identity card numbers, to the casinos, which will have the responsibility of enforcing the ban.
Casinos which fail to do so could be fined up to $1million, though banned individuals who are caught sneaking in will not be punished.
'Criminalising it does not help,' said the council. 'If a person breaches the exclusion order, it is more important to counsel them so they understand what they have done.'
Making it an offence for those who are barred to enter the casino may also deter some families - already under severe strain from a gambler's debts and behaviour - from asking for the State's help to stop their loved ones from gambling at casinos here, said the council.
Thursday, December 17, 2009
Prime office rents in CBD core drop 4.9 percent
Prime office rents in CBD core drop 4.9 percent
Dec 17, 2009 - PropertyGuru.com.sg
The average rents for Prime Grade A office buildings in the CBD core area dropped 4.9 percent in Q4 from Q3, according to the data released by Jones Lang LaSalle (JLL).
This decline is much smaller compared to the 13.7 percent drop in Q3, the 11.6 percent in Q2 and the 28.1 percent decline in Q1 of 2009.
The $7.80 psf rental value in the fourth quarter reflects a 47.8 percent slide this year. This is against the $18.40 psf set in the third quarter last year.
JLL said the gap between the newly constructed Prime Grade A office buildings and the existing Grade A buildings will widen in the next few years as new developments are finished. The gap between the two is now 85 cents or 11 percent. In terms of percentage, the gap was widest in the third quarter of 2006, when the average rent of new office space was 28 percent higher than existing office buildings.
Over the next three years, the average yearly supply of new office spaces will be two million square feet in the CBD core area. This will likely weaken rental growth, said Chua Yang Liang, JLL's head of SE Asia research.
For new Prime Grade A buildings that received good market response, rents may slide as early as the second half next year. However, rents in existing office buildings may continue to decline until the end of 2010, as vacancies are expected to increase due to 'flight to quality' by most tenants.
Dec 17, 2009 - PropertyGuru.com.sg
The average rents for Prime Grade A office buildings in the CBD core area dropped 4.9 percent in Q4 from Q3, according to the data released by Jones Lang LaSalle (JLL).
This decline is much smaller compared to the 13.7 percent drop in Q3, the 11.6 percent in Q2 and the 28.1 percent decline in Q1 of 2009.
The $7.80 psf rental value in the fourth quarter reflects a 47.8 percent slide this year. This is against the $18.40 psf set in the third quarter last year.
JLL said the gap between the newly constructed Prime Grade A office buildings and the existing Grade A buildings will widen in the next few years as new developments are finished. The gap between the two is now 85 cents or 11 percent. In terms of percentage, the gap was widest in the third quarter of 2006, when the average rent of new office space was 28 percent higher than existing office buildings.
Over the next three years, the average yearly supply of new office spaces will be two million square feet in the CBD core area. This will likely weaken rental growth, said Chua Yang Liang, JLL's head of SE Asia research.
For new Prime Grade A buildings that received good market response, rents may slide as early as the second half next year. However, rents in existing office buildings may continue to decline until the end of 2010, as vacancies are expected to increase due to 'flight to quality' by most tenants.
Excellent year for the GCB market
Excellent year for the GCB market
Dec 17, 2009 - PropertyGuru.com.sg
The Good Class Bungalow (GCB) market recorded 100 transactions in the first 11 months of 2009, which is worth $1.6 billion in totality.
The figure, which is based on analysis done by CB Richard Ellis (CBRE), is nearly double the $827 million, or 51 deals valued for 2008.
The value also exceeded the $1.23 billion total value transacted in 2006, but the number of transactions this year is still lower than the recorded 119 deals in 2006.
According to Credo Real Estate, GCB prices could have increased 5 to 10 percent this year. In addition, the real estate company estimates a further 5 to 15 percent GCB price projection by 2010. “Current GCB prices are not far off the peak levels established between mid-2007 and mid-2008,” said Credo Real Estate managing director, Karamjit Singh.
The GCB market is expected to remain strong next year as the Singapore economy recovers and as the country attracts more wealthy citizens. But some observers expect a small slide in transactions as strong demand increased earlier this year after a year of brisk sales.
CBRE director for luxury homes, Douglas Wong, predicted 80 to 90 GCB deals in 2010 worth $1.2-$1.4 billion.
William Wong, managing director for RealStar Premier Property Consultant, foresees easing numbers of GCB deals next year. “Demand is still strong, but the pool of buyers right now is not as big as, say, earlier this year. Most of those who wanted to buy a GCB have already bought this year, so demand has been substantially satisfied for now.”
“Of course, the buying pool may expand again, for instance, as more high net worths from overseas become Singapore citizens,” he added.
A positive Mr. Singh noted, “Demand for GCBs is poised to remain robust as Singapore's economy begins to grow again and the rich get to feel richer. GCBs are also popular investment tools played by seasoned high net worth individual investors when they smell capital appreciation potential.”
This year’s strong response was largely due to buyers who decided to make a commitment before home prices further increased, said Mr. Wong. This is amid the sudden improvement in real estate market sentiment when the stock market recovered.
Dec 17, 2009 - PropertyGuru.com.sg
The Good Class Bungalow (GCB) market recorded 100 transactions in the first 11 months of 2009, which is worth $1.6 billion in totality.
The figure, which is based on analysis done by CB Richard Ellis (CBRE), is nearly double the $827 million, or 51 deals valued for 2008.
The value also exceeded the $1.23 billion total value transacted in 2006, but the number of transactions this year is still lower than the recorded 119 deals in 2006.
According to Credo Real Estate, GCB prices could have increased 5 to 10 percent this year. In addition, the real estate company estimates a further 5 to 15 percent GCB price projection by 2010. “Current GCB prices are not far off the peak levels established between mid-2007 and mid-2008,” said Credo Real Estate managing director, Karamjit Singh.
The GCB market is expected to remain strong next year as the Singapore economy recovers and as the country attracts more wealthy citizens. But some observers expect a small slide in transactions as strong demand increased earlier this year after a year of brisk sales.
CBRE director for luxury homes, Douglas Wong, predicted 80 to 90 GCB deals in 2010 worth $1.2-$1.4 billion.
William Wong, managing director for RealStar Premier Property Consultant, foresees easing numbers of GCB deals next year. “Demand is still strong, but the pool of buyers right now is not as big as, say, earlier this year. Most of those who wanted to buy a GCB have already bought this year, so demand has been substantially satisfied for now.”
“Of course, the buying pool may expand again, for instance, as more high net worths from overseas become Singapore citizens,” he added.
A positive Mr. Singh noted, “Demand for GCBs is poised to remain robust as Singapore's economy begins to grow again and the rich get to feel richer. GCBs are also popular investment tools played by seasoned high net worth individual investors when they smell capital appreciation potential.”
This year’s strong response was largely due to buyers who decided to make a commitment before home prices further increased, said Mr. Wong. This is amid the sudden improvement in real estate market sentiment when the stock market recovered.
Singapore office market turns resilient
Singapore office market turns resilient
Dec 16, 2009 - PropertyGuru.com.sg
Press Release: Jones Lang LaSalle
The Singapore office market in 2009 was marked by falling rentals, on the expectations that some 2.2 million sq ft of space was to come on-stream island-wide in this recessionary year. In 4Q09, the positive outlook of an economic recovery in US and Asia lifted business sentiments and led to a retardation of the rental declines seen in the previous quarters. Based on Jones Lang LaSalle preliminary estimates, average gross effective rent of Prime Grade A properties in CBD Core has slowed to only 4.9% q-o-q to $7.80 per sq ft per month in 4Q09.
The return of market activity has given office demand some much needed lift. Consolidation and ‘flight-to-quality’ remain the key trends as occupiers continue to consolidate into a single location and/or upgrade into the new and better quality buildings. In CBD Core where around 1.2 million sq ft of good quality space came on-stream this year, absorption of the new supply has been encouraging with around 46% of these new spaces being taken up.
Some expansions have also taken place on the back of occupiers’ improved business outlook. Norton Rose recently expanded in One Raffles Quay North Tower to occupy a whole floor while BHP Billiton increased its take-up from 150,000 sq ft to 230,000 sq ft in the upcoming Marina Bay Financial Centre Tower 2. Many financial institutions are now planning for moderate growth and have already withdrawn some of the shadow space that they were previously marketing from the market. This led to island-wide shadow space shrinking to circa 600,000 sq ft in 4Q09 from 800,000 sq ft at its peak in 2Q09.
Landlords have also turned more positive with the return of market activity and the recovery of the office market seemingly in sight. Most landlords who have secured their buildings’ occupancy are maintaining their rentals. However, those that are competing for tenants to fill up their buildings continue to lower rentals and roll out incentives including rent-free periods and capital expenditure subsidies, albeit at a more moderated pace.
If the global and regional economies remain on their recovery track, leasing activity is expected to become increasingly stronger over 2010 as firms become more confident about business outlook. “Many large MNCs see business opportunity ahead and are planning for moderate growth but are having difficulty establishing headcounts due to the uncertainty ahead,” Mr Chris Archibold, Head of Commercial Leasing at Jones Lang LaSalle, noted.
Given the recent developments in the office market, the end of this down cycle may be near. For the new Prime Grade A properties which have been well-received by the market thus far, the bottom of rentals for such properties may be as early as 2H10. However, the rentals of existing office buildings may continue to fall till the end of 2010 as vacancies are expected to rise on the back of ‘flight-to-quality’. Dr Chua Yang Liang, Head of Research of South East Asia at Jones Lang LaSalle, noted that the new supply amounting to almost 2 million sq ft per annum in the CBD Core over the next three years is likely to put a dampener on rental growth. “The rate at which the market is able to absorb the available space, which is dependent on new demand, is crucial when the new supply comes onto the market next year. A growing gap between newly completed Prime Grade A and other existing Prime Grade A buildings will emerge, similar to what was seen in 2006 with a premium gap of around 28% or $2 per sq ft per month.”
Dec 16, 2009 - PropertyGuru.com.sg
Press Release: Jones Lang LaSalle
The Singapore office market in 2009 was marked by falling rentals, on the expectations that some 2.2 million sq ft of space was to come on-stream island-wide in this recessionary year. In 4Q09, the positive outlook of an economic recovery in US and Asia lifted business sentiments and led to a retardation of the rental declines seen in the previous quarters. Based on Jones Lang LaSalle preliminary estimates, average gross effective rent of Prime Grade A properties in CBD Core has slowed to only 4.9% q-o-q to $7.80 per sq ft per month in 4Q09.
The return of market activity has given office demand some much needed lift. Consolidation and ‘flight-to-quality’ remain the key trends as occupiers continue to consolidate into a single location and/or upgrade into the new and better quality buildings. In CBD Core where around 1.2 million sq ft of good quality space came on-stream this year, absorption of the new supply has been encouraging with around 46% of these new spaces being taken up.
Some expansions have also taken place on the back of occupiers’ improved business outlook. Norton Rose recently expanded in One Raffles Quay North Tower to occupy a whole floor while BHP Billiton increased its take-up from 150,000 sq ft to 230,000 sq ft in the upcoming Marina Bay Financial Centre Tower 2. Many financial institutions are now planning for moderate growth and have already withdrawn some of the shadow space that they were previously marketing from the market. This led to island-wide shadow space shrinking to circa 600,000 sq ft in 4Q09 from 800,000 sq ft at its peak in 2Q09.
Landlords have also turned more positive with the return of market activity and the recovery of the office market seemingly in sight. Most landlords who have secured their buildings’ occupancy are maintaining their rentals. However, those that are competing for tenants to fill up their buildings continue to lower rentals and roll out incentives including rent-free periods and capital expenditure subsidies, albeit at a more moderated pace.
If the global and regional economies remain on their recovery track, leasing activity is expected to become increasingly stronger over 2010 as firms become more confident about business outlook. “Many large MNCs see business opportunity ahead and are planning for moderate growth but are having difficulty establishing headcounts due to the uncertainty ahead,” Mr Chris Archibold, Head of Commercial Leasing at Jones Lang LaSalle, noted.
Given the recent developments in the office market, the end of this down cycle may be near. For the new Prime Grade A properties which have been well-received by the market thus far, the bottom of rentals for such properties may be as early as 2H10. However, the rentals of existing office buildings may continue to fall till the end of 2010 as vacancies are expected to rise on the back of ‘flight-to-quality’. Dr Chua Yang Liang, Head of Research of South East Asia at Jones Lang LaSalle, noted that the new supply amounting to almost 2 million sq ft per annum in the CBD Core over the next three years is likely to put a dampener on rental growth. “The rate at which the market is able to absorb the available space, which is dependent on new demand, is crucial when the new supply comes onto the market next year. A growing gap between newly completed Prime Grade A and other existing Prime Grade A buildings will emerge, similar to what was seen in 2006 with a premium gap of around 28% or $2 per sq ft per month.”
Bedok site now open for application
Bedok site now open for application
Dec 16, 2009 - PropertyGuru.com.sg
A 99-year leasehold site next to Bedok MRT Station is now open for application by developers through the reserve list of the government. The site is considered by some property consultants to be worth over $500 million.
The 2.49-hectare plot is intended for residential and commercial use. According to analysts, it can be built into a suburban mall with a 500-unit condo and a net lettable area of around 220,000 square feet.
The proposed development will include a new bus interchange to replace the existing interchange within the site.
The plot is stipulated to have a maximum gross floor area (GFA) of 938,157 sq ft. Of this GFA, 338,665 sq ft can be apportioned for the retail component, which translates to a net lettable area (NLA) of around 220,000 sq ft.
The residential GFA of the project could be around 562,900 sq ft. “Based on the simulation for the bus interchange done by Land Transport Authority, the estimated GFA for the bus interchange concourse is 3,400 sq m (about 36,600 sq ft),” said a spokesperson for HDB, who is also the sales agent for the parcel of land.
Li Hiaw Ho, executive director of CB Richard Ellis, points out that it is likely that Bedok MRT Station will be the future Eastern Region Line’s interchange station. “So this is going to be a very busy location. It's ideally suited for another regional shopping centre with a residential component,” he added.
The government earlier said that the development and sale of the site will form part of the renovation plans for Bedok Town Centre.
“Bedok is a good location compared to many suburban areas because it's not that far out. It's a pretty mature town, currently served by older HDB shophouses. However, they are not very well connected and organized; a new mall will draw a lot of retailers as it's going to be connected to the MRT station and integrated with the new bus interchange,” said Danny Yeo, managing director of Knight Frank.
According to the HDB, the plot is situated in the heart of Bedok New Town.
Mr. Yeo argues that the proposed mall is not limited for HDB flat dwellers, but it will also cater to those residing in condominiums and landed homes in the fringe of Bedok. “It will pose quite a bit of a challenge to malls in places like Tampines and Simei,” he added.
He projects the land value for the retail component of the project at around $800-900 psf of possible GFA while Mr .Li of CBRE put the figure at $850 to $900 psf ppr. Either way, the breakeven cost works out to retail NLA of about $2,000 psf. Mr. Li projects about $400 psf ppr of land value for the residential component, which reflects a breakeven cost of about $800 psf.
“They can sell the apartments to recoup part of the investment in the project. This will allow developers more leeway to bid more aggressively for the site,” suggests Mr. Yeo.
Mr. Li has high hopes that the site will be released in spite of the fact that the government is scheduled to launch eight residential sites on the confirmed list in the first half of 2010.
Dec 16, 2009 - PropertyGuru.com.sg
A 99-year leasehold site next to Bedok MRT Station is now open for application by developers through the reserve list of the government. The site is considered by some property consultants to be worth over $500 million.
The 2.49-hectare plot is intended for residential and commercial use. According to analysts, it can be built into a suburban mall with a 500-unit condo and a net lettable area of around 220,000 square feet.
The proposed development will include a new bus interchange to replace the existing interchange within the site.
The plot is stipulated to have a maximum gross floor area (GFA) of 938,157 sq ft. Of this GFA, 338,665 sq ft can be apportioned for the retail component, which translates to a net lettable area (NLA) of around 220,000 sq ft.
The residential GFA of the project could be around 562,900 sq ft. “Based on the simulation for the bus interchange done by Land Transport Authority, the estimated GFA for the bus interchange concourse is 3,400 sq m (about 36,600 sq ft),” said a spokesperson for HDB, who is also the sales agent for the parcel of land.
Li Hiaw Ho, executive director of CB Richard Ellis, points out that it is likely that Bedok MRT Station will be the future Eastern Region Line’s interchange station. “So this is going to be a very busy location. It's ideally suited for another regional shopping centre with a residential component,” he added.
The government earlier said that the development and sale of the site will form part of the renovation plans for Bedok Town Centre.
“Bedok is a good location compared to many suburban areas because it's not that far out. It's a pretty mature town, currently served by older HDB shophouses. However, they are not very well connected and organized; a new mall will draw a lot of retailers as it's going to be connected to the MRT station and integrated with the new bus interchange,” said Danny Yeo, managing director of Knight Frank.
According to the HDB, the plot is situated in the heart of Bedok New Town.
Mr. Yeo argues that the proposed mall is not limited for HDB flat dwellers, but it will also cater to those residing in condominiums and landed homes in the fringe of Bedok. “It will pose quite a bit of a challenge to malls in places like Tampines and Simei,” he added.
He projects the land value for the retail component of the project at around $800-900 psf of possible GFA while Mr .Li of CBRE put the figure at $850 to $900 psf ppr. Either way, the breakeven cost works out to retail NLA of about $2,000 psf. Mr. Li projects about $400 psf ppr of land value for the residential component, which reflects a breakeven cost of about $800 psf.
“They can sell the apartments to recoup part of the investment in the project. This will allow developers more leeway to bid more aggressively for the site,” suggests Mr. Yeo.
Mr. Li has high hopes that the site will be released in spite of the fact that the government is scheduled to launch eight residential sites on the confirmed list in the first half of 2010.
HDB offers more flats under the BTO scheme
HDB offers more flats under the BTO scheme
Dec 16, 2009 - PropertyGuru.com.sg
The Housing Development Board (HDB) on Tuesday launched four Build-to-Order projects with 2,670 new flats, bringing a total flat supply of 13,500 units for this year.
HDB said two BTO projects, the SkyTerrace @ Dawson and SkyVille @ Dawson, provide new flats for homebuyers who are prepared to pay for a prime location with better finishes.
HDB expects a good response to these projects. Prices start from $532,000 for five-room units, $373,000 for four-room units, $280,000 for three-room units and $112,000 for studio type units.
The 40-storey Dawson projects will offer new features such as the ‘paired flats’ – for those who want to live close to their parents – which is under the Multi-Generation Living Scheme.
HDB’s deputy CEO for Estates and Corporate, Yap Chin Beng, said "Altogether, we have 65 paired studio apartment with four-room flats, or studio apartment with five-room flats so that the married children and parents can apply under a single application.”
"The flats are connected through connecting doors, but each unit have their own main entrances."
Buyers of SkyVille can choose the layout of their flat under the Flexi-Layout Scheme. For instance, buyers can opt for a bigger living room area but with fewer bedrooms.
The other two BTO projects are Segar Grove in Bukit Panjang and Montreal Dale in Sembawang. The price for a four-room flat starts at $210,000; $125,000 for a three-room flat; and $72,000 for a two-room flat.
About 95 percent of the two- to five-room units offered under the BTO scheme are reserved for first-time homebuyers.
Market watchers noted that the latest BTO projects will give homebuyers a wider range of options to suit their preferences and budgets.
"Some of the new flat buyers have expressed that there is not many locations to choose from. But actually now, it is pretty much spread out. You have your central location and also what you call the suburban locations. So it sort of caters to the needs of flat buyers,” said Eugene Lim, associate director of ERA Real Estate.
HDB said homebuyers can expect more BTO projects next year. It is prepared to launch one BTO project a month if demand for new flats remains high.
Dec 16, 2009 - PropertyGuru.com.sg
The Housing Development Board (HDB) on Tuesday launched four Build-to-Order projects with 2,670 new flats, bringing a total flat supply of 13,500 units for this year.
HDB said two BTO projects, the SkyTerrace @ Dawson and SkyVille @ Dawson, provide new flats for homebuyers who are prepared to pay for a prime location with better finishes.
HDB expects a good response to these projects. Prices start from $532,000 for five-room units, $373,000 for four-room units, $280,000 for three-room units and $112,000 for studio type units.
The 40-storey Dawson projects will offer new features such as the ‘paired flats’ – for those who want to live close to their parents – which is under the Multi-Generation Living Scheme.
HDB’s deputy CEO for Estates and Corporate, Yap Chin Beng, said "Altogether, we have 65 paired studio apartment with four-room flats, or studio apartment with five-room flats so that the married children and parents can apply under a single application.”
"The flats are connected through connecting doors, but each unit have their own main entrances."
Buyers of SkyVille can choose the layout of their flat under the Flexi-Layout Scheme. For instance, buyers can opt for a bigger living room area but with fewer bedrooms.
The other two BTO projects are Segar Grove in Bukit Panjang and Montreal Dale in Sembawang. The price for a four-room flat starts at $210,000; $125,000 for a three-room flat; and $72,000 for a two-room flat.
About 95 percent of the two- to five-room units offered under the BTO scheme are reserved for first-time homebuyers.
Market watchers noted that the latest BTO projects will give homebuyers a wider range of options to suit their preferences and budgets.
"Some of the new flat buyers have expressed that there is not many locations to choose from. But actually now, it is pretty much spread out. You have your central location and also what you call the suburban locations. So it sort of caters to the needs of flat buyers,” said Eugene Lim, associate director of ERA Real Estate.
HDB said homebuyers can expect more BTO projects next year. It is prepared to launch one BTO project a month if demand for new flats remains high.
Sales of uncompleted private homes remain down in November
Sales of uncompleted private homes remain down in November
Dec 16, 2009 - PropertyGuru.com.sg
Singapore’s sales of uncompleted private homes in November dropped 26 percent, making it the 4th successive month of decline.
About 600 units were sold in November, the second lowest level since January 2009 when private home sales dropped below 1,000 units.
But several experts said that 600 home transactions in November was not a bad figure.
The director and head of research services (Asia-Pacific) of Cushman & Wakefield, Ang Choon Beng, said "600 is still higher than the sales in November 2007, and is about three times higher than the sales in November 2008. So all in all, I don't think the number is bad, or anything to be alarmed about."
Real estate lecturer at Ngee Ann Polytechnic, Nicholas Mak, also said "This (November) is towards the end of the year, and coupled with the government's measures, we do expect some slowdown in the home sales."
The year-end result is traditionally slow for the real estate market. In September, the government implemented anti-speculative measures to cool off the market, and announced it would release more land for homes by the second half of next year.
"This situation (cooling of property sales) is likely to persist for the next few months. The sale volume is likely to remain less than 1,000 units per month,” said Mr. Mak.
"But what is interesting in the November figures is that there is a slight increase in the number of units launched and sold in the prime districts. We suggest that developers are trying to start up the sale momentum, the sale interest, in this area," he added.
More than half of the home transactions in November had median prices beyond S$1,500 per square foot (psf).
The top seller in November was the Parvis at Holland Hill, with 103 units sold for about S$1,507 psf. The Boulevard Vue at Cuscaden Walk had the most expensive price tag last month, with three units sold at a median price of $2,850 psf.
Market watchers said they expect mass-market property prices to remain steady for the next few months, but high-end properties may increase, especially with additional attractions such as the upcoming integrated resorts.
Looking forward, experts said the prices and units sold in March to April next year will give good indication of the real estate market boom.
Dec 16, 2009 - PropertyGuru.com.sg
Singapore’s sales of uncompleted private homes in November dropped 26 percent, making it the 4th successive month of decline.
About 600 units were sold in November, the second lowest level since January 2009 when private home sales dropped below 1,000 units.
But several experts said that 600 home transactions in November was not a bad figure.
The director and head of research services (Asia-Pacific) of Cushman & Wakefield, Ang Choon Beng, said "600 is still higher than the sales in November 2007, and is about three times higher than the sales in November 2008. So all in all, I don't think the number is bad, or anything to be alarmed about."
Real estate lecturer at Ngee Ann Polytechnic, Nicholas Mak, also said "This (November) is towards the end of the year, and coupled with the government's measures, we do expect some slowdown in the home sales."
The year-end result is traditionally slow for the real estate market. In September, the government implemented anti-speculative measures to cool off the market, and announced it would release more land for homes by the second half of next year.
"This situation (cooling of property sales) is likely to persist for the next few months. The sale volume is likely to remain less than 1,000 units per month,” said Mr. Mak.
"But what is interesting in the November figures is that there is a slight increase in the number of units launched and sold in the prime districts. We suggest that developers are trying to start up the sale momentum, the sale interest, in this area," he added.
More than half of the home transactions in November had median prices beyond S$1,500 per square foot (psf).
The top seller in November was the Parvis at Holland Hill, with 103 units sold for about S$1,507 psf. The Boulevard Vue at Cuscaden Walk had the most expensive price tag last month, with three units sold at a median price of $2,850 psf.
Market watchers said they expect mass-market property prices to remain steady for the next few months, but high-end properties may increase, especially with additional attractions such as the upcoming integrated resorts.
Looking forward, experts said the prices and units sold in March to April next year will give good indication of the real estate market boom.
ST : Dawson BTO flats a hit
Dec 16, 2009
Dawson BTO flats a hit
By Esther Teo
As of 5 pm on Wednesday, most flat types - studio apartment, four-room and five-room flats - were over subscribed. -- PHOTO: HDB
The much-anticipated Dawson estate Housing Board (HDB) build-to-order (BTO) flats have drawn an overwhelming response, just two days after they were opened for bookings.
As of 5 pm on Wednesday, most flat types - studio apartment, four-room and five-room flats - were over subscribed, with the exception of the three-room flats and the paired flats under the multi-generation living scheme. The scheme allows a young couple to live close to their elderly parents, with a studio apartment attached to a four-room or five-room flat.
There were 104 applications for the 40 studio apartments, 159 for the 270 three-room units, 1,440 for 1,102 four-room flats, and 507 for 176 five-room units. For the 65 paired flats under the multi-generation living scheme, there were 44 bookings.
Some applicants like Mr Lingeswaran, 29, even took a day off from work to register for the Dawson flats. Currently living at Telok Blangah, he cited the prime location of the flats and its proximity to his daughter's school as the main reasons for his selection.
"This is something new and different that the HDB is offering. It will take longer to build but we think that with its nicer features, it's worth waiting for," he added.
The other two BTO projects in Sembawang and Bukit Panjang also attracted good response, with the four-room flats in both estates already oversubscribed. Applicants said they found the prices more affordable.
Dawson BTO flats a hit
By Esther Teo
As of 5 pm on Wednesday, most flat types - studio apartment, four-room and five-room flats - were over subscribed. -- PHOTO: HDB
The much-anticipated Dawson estate Housing Board (HDB) build-to-order (BTO) flats have drawn an overwhelming response, just two days after they were opened for bookings.
As of 5 pm on Wednesday, most flat types - studio apartment, four-room and five-room flats - were over subscribed, with the exception of the three-room flats and the paired flats under the multi-generation living scheme. The scheme allows a young couple to live close to their elderly parents, with a studio apartment attached to a four-room or five-room flat.
There were 104 applications for the 40 studio apartments, 159 for the 270 three-room units, 1,440 for 1,102 four-room flats, and 507 for 176 five-room units. For the 65 paired flats under the multi-generation living scheme, there were 44 bookings.
Some applicants like Mr Lingeswaran, 29, even took a day off from work to register for the Dawson flats. Currently living at Telok Blangah, he cited the prime location of the flats and its proximity to his daughter's school as the main reasons for his selection.
"This is something new and different that the HDB is offering. It will take longer to build but we think that with its nicer features, it's worth waiting for," he added.
The other two BTO projects in Sembawang and Bukit Panjang also attracted good response, with the four-room flats in both estates already oversubscribed. Applicants said they found the prices more affordable.
ST : Office rents to bottom out
Dec 16, 2009
Office rents to bottom out
By Joyce Teo, Property Correspondent
Its preliminary estimates show that the average gross effective rent of Grade A office properties in the core of the central business district reached $7.80 per sq ft per month in the fourth quarter. -- ST PHOTO: JOYCE FANG
RENTALS of popular new prime Grade A office properties look set to bottom out as early as the second half of next year, while rentals of existing office buildings may touch bottom in a year's time, according to the latest report from Jones Lang LaSalle.
Its preliminary estimates show that the average gross effective rent of Grade A office properties in the core of the central business district reached $7.80 per sq ft per month in the fourth quarter, down 4.9 per cent from the third.
Rents in Singapore's office market have been falling as demand slows and supply grows.
Experts expect rents to continue falling into next year, though at a slower pace. Vacancies are still rising as companies take advantage of falling rents to move to better quality office space.
The good news is that activities have picked up lately, with many financial institutions planning for moderate growth.
Office rents to bottom out
By Joyce Teo, Property Correspondent
Its preliminary estimates show that the average gross effective rent of Grade A office properties in the core of the central business district reached $7.80 per sq ft per month in the fourth quarter. -- ST PHOTO: JOYCE FANG
RENTALS of popular new prime Grade A office properties look set to bottom out as early as the second half of next year, while rentals of existing office buildings may touch bottom in a year's time, according to the latest report from Jones Lang LaSalle.
Its preliminary estimates show that the average gross effective rent of Grade A office properties in the core of the central business district reached $7.80 per sq ft per month in the fourth quarter, down 4.9 per cent from the third.
Rents in Singapore's office market have been falling as demand slows and supply grows.
Experts expect rents to continue falling into next year, though at a slower pace. Vacancies are still rising as companies take advantage of falling rents to move to better quality office space.
The good news is that activities have picked up lately, with many financial institutions planning for moderate growth.
ST : Pick-your-layout flats
Dec 16, 2009
Pick-your-layout flats
Scheme for the young to live close to parents revived and tweaked
By Esther Teo
For the first time, the Housing Board (HDB) is offering flexible flat layouts to best suit individual family needs. -- PHOTO: HDB
THE eagerly anticipated new flats in the mature Dawson estate in Queenstown were launched for sale on Tuesday - complete with plenty of wow factors.
For the first time, the Housing Board (HDB) is offering flexible flat layouts to best suit individual family needs. Three floor plans are available: a standard layout, a larger living room option or a larger master bedroom option.
The HDB is also tweaking a plan first tried 22 years ago which allows young families to live close to elderly parents by selling flats in pairs.
HDB deputy chief executive (estates and corporate) Yap Chin Beng said that in 1987, these flats in estates such as Bishan were sold like a single unit.
'Under this new arrangement, however, there are two units with each applicant - the married child and elderly parents - needing to meet the respective conditions. We believe that through this arrangement we can relook this multi-generation living arrangement,' he said.
In 1987, 367 units were built but the plan was scrapped due to poor demand.
Pick-your-layout flats
Scheme for the young to live close to parents revived and tweaked
By Esther Teo
For the first time, the Housing Board (HDB) is offering flexible flat layouts to best suit individual family needs. -- PHOTO: HDB
THE eagerly anticipated new flats in the mature Dawson estate in Queenstown were launched for sale on Tuesday - complete with plenty of wow factors.
For the first time, the Housing Board (HDB) is offering flexible flat layouts to best suit individual family needs. Three floor plans are available: a standard layout, a larger living room option or a larger master bedroom option.
The HDB is also tweaking a plan first tried 22 years ago which allows young families to live close to elderly parents by selling flats in pairs.
HDB deputy chief executive (estates and corporate) Yap Chin Beng said that in 1987, these flats in estates such as Bishan were sold like a single unit.
'Under this new arrangement, however, there are two units with each applicant - the married child and elderly parents - needing to meet the respective conditions. We believe that through this arrangement we can relook this multi-generation living arrangement,' he said.
In 1987, 367 units were built but the plan was scrapped due to poor demand.
Tuesday, December 15, 2009
ST : East Asia recovering faster
Dec 15, 2009
East Asia recovering faster
China, buoyed by massive stimulus spending and easy credit, recorded by far the strongest recovery, growing 8.9 per cent in the third quarter. -- PHOTO: AFP
MANILA - EAST Asia's emerging economies are rebounding from the global recession faster than anticipated, the Asian Development Bank said on Tuesday, as it raised growth forecasts for the region.
The Manila-based lender said it expects growth of 4.2 per cent this year and 6.8 per cent in 2010. That's up from the bank's earlier forecasts of 3.6 per cent and 6.5 per cent. Emerging East Asia comprises 10 South-east Asian countries plus China, Hong Kong, South Korea and Taiwan.
The recovery has been aided by government stimulus spending and improving exports though the pace of the rebound varies widely, the ADB said. Less open economies in South-east Asia were partly insulated from the global crisis but are not expected to recover strongly either, it said. China, buoyed by massive stimulus spending and easy credit, recorded by far the strongest recovery, growing 8.9 per cent in the third quarter. The ADB maintained its growth forecast for China at 8.2 per cent this year and 8.9 per cent in 2010.
Middle-income South-east Asian economies - Indonesia, Malaysia, the Philippines, Thailand and Vietnam - expanded 1.2 per cent in the third quarter. The combined gross domestic product of newly industrialised nations Hong Kong, South Korea, Singapore and Taiwan contracted slightly by 0.1 per cent - a turnaround from the 6.3 per cent contraction in the first quarter of 2009.
'Emerging Asia is rebounding strongly and growth rates next year are likely to slightly outpace 2008 in most countries,' said the ADB's chief economist, Lee Jong Wha Lee, who cautioned that despite the recovery, it was essential that 'fiscal and monetary stimulus remain accommodative where possible to put economies on a sound footing'.
The bank said it expects 45 developing countries from central Asia to the Pacific to grow by 4.5 per cent this year and 6.6 per cent in 2010 - an increase from the 3.9 per cent and 6.4 per cent it forecast in September. -- AP
East Asia recovering faster
China, buoyed by massive stimulus spending and easy credit, recorded by far the strongest recovery, growing 8.9 per cent in the third quarter. -- PHOTO: AFP
MANILA - EAST Asia's emerging economies are rebounding from the global recession faster than anticipated, the Asian Development Bank said on Tuesday, as it raised growth forecasts for the region.
The Manila-based lender said it expects growth of 4.2 per cent this year and 6.8 per cent in 2010. That's up from the bank's earlier forecasts of 3.6 per cent and 6.5 per cent. Emerging East Asia comprises 10 South-east Asian countries plus China, Hong Kong, South Korea and Taiwan.
The recovery has been aided by government stimulus spending and improving exports though the pace of the rebound varies widely, the ADB said. Less open economies in South-east Asia were partly insulated from the global crisis but are not expected to recover strongly either, it said. China, buoyed by massive stimulus spending and easy credit, recorded by far the strongest recovery, growing 8.9 per cent in the third quarter. The ADB maintained its growth forecast for China at 8.2 per cent this year and 8.9 per cent in 2010.
Middle-income South-east Asian economies - Indonesia, Malaysia, the Philippines, Thailand and Vietnam - expanded 1.2 per cent in the third quarter. The combined gross domestic product of newly industrialised nations Hong Kong, South Korea, Singapore and Taiwan contracted slightly by 0.1 per cent - a turnaround from the 6.3 per cent contraction in the first quarter of 2009.
'Emerging Asia is rebounding strongly and growth rates next year are likely to slightly outpace 2008 in most countries,' said the ADB's chief economist, Lee Jong Wha Lee, who cautioned that despite the recovery, it was essential that 'fiscal and monetary stimulus remain accommodative where possible to put economies on a sound footing'.
The bank said it expects 45 developing countries from central Asia to the Pacific to grow by 4.5 per cent this year and 6.6 per cent in 2010 - an increase from the 3.9 per cent and 6.4 per cent it forecast in September. -- AP
Subscribe to:
Posts (Atom)
Posts
