HDB valuation, resale applications to go fully electronic
By Mustafa Shafawi | Posted: 03 December 2010 1235 hrs
SINGAPORE : Valuation and resale applications to the HDB will go fully electronic from January 3 next year.
Currently, the majority of these applications are handled by housing agents and more than 85 per cent of all requests are already made online.
HDB said with full electronic submission, customers will benefit from the lower online fees.
The housing board said the move towards 'paper-less' transactions is also more environmentally friendly.
In moving towards full e-submission, HDB has made several enhancements to its ResaleNet system.
It will allow all users to book the First Appointment.
Housing agents who do not subscribe to the ResaleNet system can make use of e-Resale system to submit resale applications and valuation requests.
From January 3, HDB will also allow the buyer and seller, or their agents, to submit their portions of the resale application separately.
The move to allow separate application is also in line with the Estate Agents (Estate Agency Work) Regulations 2010 which disallow the same housing agent to be engaged by both the buyers and sellers in a transaction.
HDB will no longer accept hardcopy applications from 3 January 2011.
Those without Internet access can submit their online applications at the e-Lobby at HDB Hub, or at any HDB Branch Office.
- CNA /ls
Showing posts with label CNA. Show all posts
Showing posts with label CNA. Show all posts
Thursday, December 9, 2010
Wednesday, November 17, 2010
CNA : Private property sales rebound in Oct
Private property sales rebound in Oct
Posted: 15 November 2010 1302 hrs
SINGAPORE: Sales of private home units rebounded in October, climbing above the 1,000 units level yet again.
Data released on Monday by the Urban Redevelopment Authority (URA) showed that 1,058 private units were sold last month.
Including Executive Condominiums, the total sales would have reached an even more impressive figure of 1,587.
That's higher than the 911 units sold in the previous month.
Chalking up the best sales was Esparina Residences at Buangkok Drive, which sold 425 units.
Sales fell in September after the government imposed property cooling measures that took effect from August 30.
-CNA/wk
Posted: 15 November 2010 1302 hrs
SINGAPORE: Sales of private home units rebounded in October, climbing above the 1,000 units level yet again.
Data released on Monday by the Urban Redevelopment Authority (URA) showed that 1,058 private units were sold last month.
Including Executive Condominiums, the total sales would have reached an even more impressive figure of 1,587.
That's higher than the 911 units sold in the previous month.
Chalking up the best sales was Esparina Residences at Buangkok Drive, which sold 425 units.
Sales fell in September after the government imposed property cooling measures that took effect from August 30.
-CNA/wk
Thursday, July 29, 2010
CNA : S'pore real estate firms axe thousands of agents ahead of new MND regulations
S'pore real estate firms axe thousands of agents ahead of new MND regulations
By Joanne Chan | Posted: 27 July 2010 2026 hrs
SINGAPORE: Real estate firms in Singapore have axed thousands of agents, ahead of the regulatory framework to be implemented by the National Development Ministry.
The framework seeks to professionalise the industry, with the introduction of a new statutory board, known as the Council for Estate Agencies, and enhanced regulatory guidelines.
Channel NewsAsia understands that a Bill for the framework could be introduced in Parliament as early as October.
When contacted, the Ministry would only say that a Bill will be introduced in the second half of this year, with the Council operational by year-end.
Director of Dennis Wee Group, Chris Koh said: "It's going to be difficult for agents with a full-time job while moonlighting as an agent. Because the moment the employer goes into this public registry, the employer will know that you are an agent, and you stand to lose your existing full-time job."
Earlier this month, Dennis Wee Group's (DWG) housing agents were called back to their office to update their personal information and be briefed on the requirements of the new regulatory framework. The information collected was then submitted to the National Development Ministry, to be part of a new central registry of all agents.
1,500 of 5,000 agents were axed as a result of the exercise - mostly inactive or part-time staff.
Under the new guidelines, agents will also be required to pass a mandatory industry examination. Only those who already have industry certification will be exempted.
Rather than wait for the new examination, DWG has asked all its agents to get themselves certified with either the Certified Estate Agent Course or the Common Examination for Salespersons.
Another firm, PropNex, terminated 1,200 agents at the start of this year, either because they were inactive or unwilling to take up personal indemnity insurance.
The insurance covers any financial liabilities arising from housing transactions.
Agents associated with money-lending were also released.
CEO of PropNex, Mohd Ismail said: "Any PropNex agent who has a money-lending licence will not be allowed to practice. He or she will have to make a decision, because we do see a conflict of interest. We have terminated an agent who has been very active, however, he wanted to maintain both and that was not acceptable to us."
ERA, which has about 3,000 active agents, says it removes about 100 inactive agents from its database every month.
Associate director of ERA Asia Pacific, Eugene Lim said the company has also been conducting training to prepare their agents for the Common Examination for Salespersons.
To date, more than 2,500 ERA agents have taken this exam, with some having to do retakes for the paper.
HSR, which represents some 7,000 agents, says it regularly checks its database for inactive agents who are then put on a passive list and sent reminders to go for retraining.
There are an estimated 30,000 housing agents in Singapore.
The National Development Ministry has also been in consultation with various real estate firms to standardise documents used in the trade.
These include documents governing an agent's exclusive right to sell a property.
Currently, each agency has its own terms and conditions, which can be confusing for consumers.
- CNA/jm
By Joanne Chan | Posted: 27 July 2010 2026 hrs
SINGAPORE: Real estate firms in Singapore have axed thousands of agents, ahead of the regulatory framework to be implemented by the National Development Ministry.
The framework seeks to professionalise the industry, with the introduction of a new statutory board, known as the Council for Estate Agencies, and enhanced regulatory guidelines.
Channel NewsAsia understands that a Bill for the framework could be introduced in Parliament as early as October.
When contacted, the Ministry would only say that a Bill will be introduced in the second half of this year, with the Council operational by year-end.
Director of Dennis Wee Group, Chris Koh said: "It's going to be difficult for agents with a full-time job while moonlighting as an agent. Because the moment the employer goes into this public registry, the employer will know that you are an agent, and you stand to lose your existing full-time job."
Earlier this month, Dennis Wee Group's (DWG) housing agents were called back to their office to update their personal information and be briefed on the requirements of the new regulatory framework. The information collected was then submitted to the National Development Ministry, to be part of a new central registry of all agents.
1,500 of 5,000 agents were axed as a result of the exercise - mostly inactive or part-time staff.
Under the new guidelines, agents will also be required to pass a mandatory industry examination. Only those who already have industry certification will be exempted.
Rather than wait for the new examination, DWG has asked all its agents to get themselves certified with either the Certified Estate Agent Course or the Common Examination for Salespersons.
Another firm, PropNex, terminated 1,200 agents at the start of this year, either because they were inactive or unwilling to take up personal indemnity insurance.
The insurance covers any financial liabilities arising from housing transactions.
Agents associated with money-lending were also released.
CEO of PropNex, Mohd Ismail said: "Any PropNex agent who has a money-lending licence will not be allowed to practice. He or she will have to make a decision, because we do see a conflict of interest. We have terminated an agent who has been very active, however, he wanted to maintain both and that was not acceptable to us."
ERA, which has about 3,000 active agents, says it removes about 100 inactive agents from its database every month.
Associate director of ERA Asia Pacific, Eugene Lim said the company has also been conducting training to prepare their agents for the Common Examination for Salespersons.
To date, more than 2,500 ERA agents have taken this exam, with some having to do retakes for the paper.
HSR, which represents some 7,000 agents, says it regularly checks its database for inactive agents who are then put on a passive list and sent reminders to go for retraining.
There are an estimated 30,000 housing agents in Singapore.
The National Development Ministry has also been in consultation with various real estate firms to standardise documents used in the trade.
These include documents governing an agent's exclusive right to sell a property.
Currently, each agency has its own terms and conditions, which can be confusing for consumers.
- CNA/jm
Sunday, June 6, 2010
CNA : Mass market housing in China remains affordable
Mass market housing in China remains affordable
By Desmond Wong | Posted: 05 June 2010 1650 hrs
SINGAPORE: Mass market housing in China remains affordable, and is unlikely to face the bubble pressures in the high-end segments and top-tier cities.
Speaking at an investor conference, CapitaLand CEO Liew Mun Leong added that opportunities in the retail property segment across the mainland continue to expand.
The China property market is hot. And fears of an asset bubble on the mainland have sparked government intervention and investor caution over Chinese real estate.
But Mr Liew Mun Leong said that the risk of a bubble is confined to a few segments of the market, like high-end residential and Tier 1 cities.
Mass market housing remains affordable, and is a segment CapitaLand that is interested in.
Mr Liew said; "It has not gone to the extent that it is not affordable. Today, they are going about 30-40 per cent. Which means they use 30 to 40 per cent of their income to pay for the housing mortgage. To us, that is something that is very fair. Even in Singapore, it is just below 40 per cent. So for that housing in China, it is fair. It is not alarming."
He added that in the first quarter of this year, almost half the home buyers across China were first time owners, while only a fifth were investors.
So, the chances of a bubble growing outside the high-end market or first-tier cities was unlikely.
He also expects retail property to gain ground.
At the moment, some 20 per cent of purchases in China are made through organised trade establishments like shopping malls, compared to the almost two-thirds in Singapore. As a result, the expectation for further growth in the China retail property segment is high.
Mr Liew also sees another emerging trend that is likely to spur growth in China's property market - namely improving transport links.
He said: "Once travelling time is reduced, urbanisation will increase, the economy will expand, domestic consumption will expand. The connections and mobility between the rural and urban areas will be enhanced, and this has a real economic impact, just like what happened in the US a hundred years ago."
According to government statistics, China aims to improve travel between locations to 9 per cent of existing times by 2014. - CNA/ms
By Desmond Wong | Posted: 05 June 2010 1650 hrs
SINGAPORE: Mass market housing in China remains affordable, and is unlikely to face the bubble pressures in the high-end segments and top-tier cities.
Speaking at an investor conference, CapitaLand CEO Liew Mun Leong added that opportunities in the retail property segment across the mainland continue to expand.
The China property market is hot. And fears of an asset bubble on the mainland have sparked government intervention and investor caution over Chinese real estate.
But Mr Liew Mun Leong said that the risk of a bubble is confined to a few segments of the market, like high-end residential and Tier 1 cities.
Mass market housing remains affordable, and is a segment CapitaLand that is interested in.
Mr Liew said; "It has not gone to the extent that it is not affordable. Today, they are going about 30-40 per cent. Which means they use 30 to 40 per cent of their income to pay for the housing mortgage. To us, that is something that is very fair. Even in Singapore, it is just below 40 per cent. So for that housing in China, it is fair. It is not alarming."
He added that in the first quarter of this year, almost half the home buyers across China were first time owners, while only a fifth were investors.
So, the chances of a bubble growing outside the high-end market or first-tier cities was unlikely.
He also expects retail property to gain ground.
At the moment, some 20 per cent of purchases in China are made through organised trade establishments like shopping malls, compared to the almost two-thirds in Singapore. As a result, the expectation for further growth in the China retail property segment is high.
Mr Liew also sees another emerging trend that is likely to spur growth in China's property market - namely improving transport links.
He said: "Once travelling time is reduced, urbanisation will increase, the economy will expand, domestic consumption will expand. The connections and mobility between the rural and urban areas will be enhanced, and this has a real economic impact, just like what happened in the US a hundred years ago."
According to government statistics, China aims to improve travel between locations to 9 per cent of existing times by 2014. - CNA/ms
Tuesday, May 25, 2010
CNA : Woodlands residents & businesses see revival with railway station in neighbourhood
Woodlands residents & businesses see revival with railway station in neighbourhood
By Lynda Hong | Posted: 24 May 2010 2239 hrs
SINGAPORE: It's not just the leaders who're pleased with the move. Residents and businesses in Woodlands are counting on the railway station in the neighbourhood to revive the estate.
The sleepy neighbourhood at Woodlands Centre Road expects to enjoy some buzz with the railway station.
Some people expect to save time and money.
A member of the public said: "I am staying in the Bukit Timah, Choa Chu Kang area. Going to Woodlands is more convenient for me rather than going to Tanjong Pagar which is very far. Taking MRT is far, and if I drive also it will also incur ERP charges for me."
Others believe the station will bring more business.
"We expect more people to come here because here we are near the Woodlands Checkpoint,” said one man in the street.
"The train stop here is much better because here at Woodlands, there are a lot of shops unlike Tanjong Pagar, where there's nothing in town," said another member of the public.
But some businesses are worried that the shops in the area may not appeal to commuters.
One woman said: "I think there’s no air-conditioning here. If the station comes here, commuters will go back immediately. So I don't think they will stay here and shop."
As for the station at Tanjong Pagar, it will be missed.
"Tanjong Pagar is easier for us. It’s not troublesome. Besides, we are more used to it," said one man in the street.
But the station will have a special place as a conserved building. - CNA/vm
For joint statement by Prime Minister Lee Hsien Loong and Malaysia Prime Minister Najib Razak at the Singapore-Malaysia Leaders' Retreat, click here.
By Lynda Hong | Posted: 24 May 2010 2239 hrs
SINGAPORE: It's not just the leaders who're pleased with the move. Residents and businesses in Woodlands are counting on the railway station in the neighbourhood to revive the estate.
The sleepy neighbourhood at Woodlands Centre Road expects to enjoy some buzz with the railway station.
Some people expect to save time and money.
A member of the public said: "I am staying in the Bukit Timah, Choa Chu Kang area. Going to Woodlands is more convenient for me rather than going to Tanjong Pagar which is very far. Taking MRT is far, and if I drive also it will also incur ERP charges for me."
Others believe the station will bring more business.
"We expect more people to come here because here we are near the Woodlands Checkpoint,” said one man in the street.
"The train stop here is much better because here at Woodlands, there are a lot of shops unlike Tanjong Pagar, where there's nothing in town," said another member of the public.
But some businesses are worried that the shops in the area may not appeal to commuters.
One woman said: "I think there’s no air-conditioning here. If the station comes here, commuters will go back immediately. So I don't think they will stay here and shop."
As for the station at Tanjong Pagar, it will be missed.
"Tanjong Pagar is easier for us. It’s not troublesome. Besides, we are more used to it," said one man in the street.
But the station will have a special place as a conserved building. - CNA/vm
For joint statement by Prime Minister Lee Hsien Loong and Malaysia Prime Minister Najib Razak at the Singapore-Malaysia Leaders' Retreat, click here.
CNA : Current KTMB station site provides opportunities for devt: property watchers
Current KTMB station site provides opportunities for devt: property watchers
By May Wong | Posted: 24 May 2010 2033 hrs
SINGAPORE: Property watchers said the current Malayan Railway station site at Tanjong Pagar offers tremendous opportunities for residential and commercial development. But these will likely take shape only in 2015 or 2016.
Singapore and Malaysia announced on Monday that the Tanjong Pagar railway station will be relocated to Woodlands by July next year.
Property observers say the Tanjong Pagar site, located in the Southern part of Singapore, is located on prime land. It's near the city centre and a big shopping mall Vivocity.
The attraction is the size of the land spanning about five football fields.
A high-rise commercial development with a gross floor area of over a million square feet could be built there.
Though the site is zone for commercial use now, market watchers said residential units may be allowed too.
Donald Han, managing director, Cushman & Wakefield, said: “Currently it's zoned under commercial, that means potentially you might be allowed some retail component, you'd be allowed commercial office as well.
“I think a developer, whoever comes in, to take over the land potentially can build a combination of retail as well as office. But that being said, a lot of the commercial prime properties of the outskirts of the main financial district may be allowed potential conversion of use to residential.
“So in some cases, you may get a combination of commercial and potentially residential, on top of this site. The site is huge so it can have a multitude variety of different uses in that sense, subject to of course, getting the necessary planning approval.
“If it's going to be pure commercial, based on the land area, over the plot ratio, we estimate price per square foot, per plot ratio about S$600-650 per square foot, plot ratio. That translates to a price, total quantum of about S$650-700 million in that sense.
“If you get conversion of residential use, the value for residential, which is currently highest and best used in the financial district can potentially be about 25 to 30 per cent higher than the figures I quoted you just now."
Analysts said relocating the railway station is also timely as Singapore plans to re-develop the Tanjong Pagar area into a new waterfront city.
And when the station moves to Woodlands in the north, that area is set to become more vibrant.
Mr Han said: "Right now, if you go into Woodlands, there is only the Causeway Bay shopping mall, that's currently located. There are not many activities that are coming up.
“If you look at the potential relocation of the KTM, if it allows an integrated development to be located there, I think it will certainly help to increase land values and existing property values in the area."
But all this will not be immediate and will take between three and six years. - CNA/vm
For joint statement by Prime Minister Lee Hsien Loong and Malaysia Prime Minister Najib Razak at the Singapore-Malaysia Leaders' Retreat, click here.
By May Wong | Posted: 24 May 2010 2033 hrs
SINGAPORE: Property watchers said the current Malayan Railway station site at Tanjong Pagar offers tremendous opportunities for residential and commercial development. But these will likely take shape only in 2015 or 2016.
Singapore and Malaysia announced on Monday that the Tanjong Pagar railway station will be relocated to Woodlands by July next year.
Property observers say the Tanjong Pagar site, located in the Southern part of Singapore, is located on prime land. It's near the city centre and a big shopping mall Vivocity.
The attraction is the size of the land spanning about five football fields.
A high-rise commercial development with a gross floor area of over a million square feet could be built there.
Though the site is zone for commercial use now, market watchers said residential units may be allowed too.
Donald Han, managing director, Cushman & Wakefield, said: “Currently it's zoned under commercial, that means potentially you might be allowed some retail component, you'd be allowed commercial office as well.
“I think a developer, whoever comes in, to take over the land potentially can build a combination of retail as well as office. But that being said, a lot of the commercial prime properties of the outskirts of the main financial district may be allowed potential conversion of use to residential.
“So in some cases, you may get a combination of commercial and potentially residential, on top of this site. The site is huge so it can have a multitude variety of different uses in that sense, subject to of course, getting the necessary planning approval.
“If it's going to be pure commercial, based on the land area, over the plot ratio, we estimate price per square foot, per plot ratio about S$600-650 per square foot, plot ratio. That translates to a price, total quantum of about S$650-700 million in that sense.
“If you get conversion of residential use, the value for residential, which is currently highest and best used in the financial district can potentially be about 25 to 30 per cent higher than the figures I quoted you just now."
Analysts said relocating the railway station is also timely as Singapore plans to re-develop the Tanjong Pagar area into a new waterfront city.
And when the station moves to Woodlands in the north, that area is set to become more vibrant.
Mr Han said: "Right now, if you go into Woodlands, there is only the Causeway Bay shopping mall, that's currently located. There are not many activities that are coming up.
“If you look at the potential relocation of the KTM, if it allows an integrated development to be located there, I think it will certainly help to increase land values and existing property values in the area."
But all this will not be immediate and will take between three and six years. - CNA/vm
For joint statement by Prime Minister Lee Hsien Loong and Malaysia Prime Minister Najib Razak at the Singapore-Malaysia Leaders' Retreat, click here.
CNA : 2,300 DBSS flats in pipeline
2,300 DBSS flats in pipeline
By Mustafa Shafawi | Posted: 24 May 2010 1821 hrs
SINGAPORE : Flat buyers can look forward to more public housing choices under the Design, Build and Sell Scheme (DBSS).
The Housing and Development Board (HDB) on Monday awarded a tender for a site that could yield about 700 DBSS flats in Yishun to Guthrie (DBP) and SK Land for S$148.9 million.
HDB will tender another three new DBSS sites later this year that could yield about 1,600 flats in Tampines, Bedok Reservoir and Upper Serangoon.
The first site will be launched for sale next month, while the other two will be rolled out in the second half of the year. The combined estimated yield from these three sites is 1,590 units.
The total of 2,300 DBSS flats in the pipeline will further supplement the Build-To-Order (BTO) system, which is the main supply of new HDB flats.
DBSS flats are developed and sold by private developers. They have a 99-year lease and are sold under similar HDB eligibility conditions.
Ninety-five percent of the flat supply for applicants will be set aside for first-timers.
- CNA/al
By Mustafa Shafawi | Posted: 24 May 2010 1821 hrs
SINGAPORE : Flat buyers can look forward to more public housing choices under the Design, Build and Sell Scheme (DBSS).
The Housing and Development Board (HDB) on Monday awarded a tender for a site that could yield about 700 DBSS flats in Yishun to Guthrie (DBP) and SK Land for S$148.9 million.
HDB will tender another three new DBSS sites later this year that could yield about 1,600 flats in Tampines, Bedok Reservoir and Upper Serangoon.
The first site will be launched for sale next month, while the other two will be rolled out in the second half of the year. The combined estimated yield from these three sites is 1,590 units.
The total of 2,300 DBSS flats in the pipeline will further supplement the Build-To-Order (BTO) system, which is the main supply of new HDB flats.
DBSS flats are developed and sold by private developers. They have a 99-year lease and are sold under similar HDB eligibility conditions.
Ninety-five percent of the flat supply for applicants will be set aside for first-timers.
- CNA/al
CNA : Rental cheat gets 16 months' jail
Rental cheat gets 16 months' jail
By Ong Dai Lin | Posted: 24 May 2010 1716 hrs
SINGAPORE : A man was sentenced to 16 months' jail in a district court on Monday for cheating four China nationals of S$10,700 in rental fees.
Ivan Tey, who is 35, owns a four-room flat in Jurong West.
Although he had rented the flat to other tenants, he approached different housing agents in October and November last year to look for prospective tenants to rent the flat to.
He found four different tenants and collected rental deposits from them.
The tenants later realised Tey had signed tenancy agreements with other tenants and found other tenants living in the flat.
They then separately made police reports.
Tey's lawyer, Mr Joseph Chen, told the court that Tey committed the offences as he was in financial difficulty and had to support two young children.
He said Tey's father is receiving treatment for cancer and urged the court to impose a shorter jail sentence.
- CNA/al
By Ong Dai Lin | Posted: 24 May 2010 1716 hrs
SINGAPORE : A man was sentenced to 16 months' jail in a district court on Monday for cheating four China nationals of S$10,700 in rental fees.
Ivan Tey, who is 35, owns a four-room flat in Jurong West.
Although he had rented the flat to other tenants, he approached different housing agents in October and November last year to look for prospective tenants to rent the flat to.
He found four different tenants and collected rental deposits from them.
The tenants later realised Tey had signed tenancy agreements with other tenants and found other tenants living in the flat.
They then separately made police reports.
Tey's lawyer, Mr Joseph Chen, told the court that Tey committed the offences as he was in financial difficulty and had to support two young children.
He said Tey's father is receiving treatment for cancer and urged the court to impose a shorter jail sentence.
- CNA/al
Friday, May 21, 2010
CNA : Real estate industry bodies collaborate to plug gaps in industry
Real estate industry bodies collaborate to plug gaps in industry
By Jonathan Peeris | Posted: 20 May 2010 2037 hrs
SINGAPORE: The Singapore Accredited Estate Agencies has identified some gaps in the real estate sector and it hopes to plug them before new rules to regulate property agents kick in later this year.
It's partnering the Singapore Institute of Surveyors and Valuers to help property agencies improve productivity through the use of technology.
Part of that initiative will focus on rolling out more courses for Continuing Professional Development.
This is in line with the government's plans to raise professionalism and accountability in the real estate sector.
The two industry bodies also hope to train property agents in mediation methods.
Tay Kah Poh, chairman, Singapore Accredited Estate Agencies Limited, said: "What we felt was lacking was the mechanism to help agents resolve dispute between themselves or agencies resolving disputes between themselves before it goes to an open court or litigation.
“It's not that we're venturing into this new. We've always had this idea. It's just that we realise now that the current regime because of its focus on consumers is somewhat lacking."
The collaboration will also make it easier for SAEA members to join the ranks of the SISV.
Currently, there are only 750 members of SISV who are in the real estate industry, a far cry from the 9,000 accredited agents of the SAEA. - CNA/vm
By Jonathan Peeris | Posted: 20 May 2010 2037 hrs
SINGAPORE: The Singapore Accredited Estate Agencies has identified some gaps in the real estate sector and it hopes to plug them before new rules to regulate property agents kick in later this year.
It's partnering the Singapore Institute of Surveyors and Valuers to help property agencies improve productivity through the use of technology.
Part of that initiative will focus on rolling out more courses for Continuing Professional Development.
This is in line with the government's plans to raise professionalism and accountability in the real estate sector.
The two industry bodies also hope to train property agents in mediation methods.
Tay Kah Poh, chairman, Singapore Accredited Estate Agencies Limited, said: "What we felt was lacking was the mechanism to help agents resolve dispute between themselves or agencies resolving disputes between themselves before it goes to an open court or litigation.
“It's not that we're venturing into this new. We've always had this idea. It's just that we realise now that the current regime because of its focus on consumers is somewhat lacking."
The collaboration will also make it easier for SAEA members to join the ranks of the SISV.
Currently, there are only 750 members of SISV who are in the real estate industry, a far cry from the 9,000 accredited agents of the SAEA. - CNA/vm
Thursday, May 6, 2010
CNA : HDB launching 2 residential sites in Punggol and Yishun
HDB launching 2 residential sites in Punggol and Yishun
By Mustafa Shafawi | Posted: 05 May 2010 1141 hrs
SINGAPORE: The Housing & Development Board (HDB) is launching two residential sites for sale by public tender.
The sites in Punggol and Yishun will yield some 1,215 units.
The Reserve List sites were successfully triggered for public tender two weeks ago.
The Punggol site is designated for Executive Condominium housing development, while the site in Yishun is for condominium housing.
These sites are just two of eight sites that have been successfully triggered from the Reserve List.
There are another 10 sites on the List which can potentially yield 4,280 homes still available for sale.
Together with the 2,925 dwelling units in the Confirmed List that are tendered or being put up for tender, the first half Government Land Sales Programme could potentially yield 10,550 housing units.
The government says it's the highest since the Reserve List / Confirmed List system started in 2001.
- CNA/il/jy
By Mustafa Shafawi | Posted: 05 May 2010 1141 hrs
SINGAPORE: The Housing & Development Board (HDB) is launching two residential sites for sale by public tender.
The sites in Punggol and Yishun will yield some 1,215 units.
The Reserve List sites were successfully triggered for public tender two weeks ago.
The Punggol site is designated for Executive Condominium housing development, while the site in Yishun is for condominium housing.
These sites are just two of eight sites that have been successfully triggered from the Reserve List.
There are another 10 sites on the List which can potentially yield 4,280 homes still available for sale.
Together with the 2,925 dwelling units in the Confirmed List that are tendered or being put up for tender, the first half Government Land Sales Programme could potentially yield 10,550 housing units.
The government says it's the highest since the Reserve List / Confirmed List system started in 2001.
- CNA/il/jy
Wednesday, April 28, 2010
CNA : More en bloc sale activity expected as developers cater to mid-market segment
More en bloc sale activity expected as developers cater to mid-market segment
By Chris Howells | Posted: 27 April 2010 2207 hrs
SINGAPORE: Analysts expect more en bloc sales activity from the city fringes and East Coast areas as developers cater to a growing mid-market segment.
They were responding to proposals tabled in Parliament on Monday to smooth out the collective sales process.
The new rules also seek to address the role of the Strata Titles Board and balance the interest of property owners.
Collective sales have bounced back this year after a poor showing last year when only one deal was done.
So far, four developments have been sold with another deal at Margate Road expected to be completed this week.
These five sales combined are worth S$275 million versus the lone S$101 million deal done for the whole of 2009.
Going forward, market watchers expect between 20 and 40 en bloc deals to take place this year.
Donald Han, managing director, Cushman & Wakefield, said: “I think what we're seeing now is more on the fringe of the central areas is looking more promising right now. Those we call the rest of the central core area. The East Coast area is looking interesting right now.
“Mainly there is a combination of investors, developers who are eager to come in and develop the mid-end segment of the market."
Observers said such developments will likely attract small-to-mid sized developers that are currently being priced out of the government land sales programme where land prices rose up to 20 per cent last year.
Observers said they're currently seeing appetite for en bloc sales worth under S$100 million on average and land sizes of around 15,000-50,000 square feet.
Karamjit Singh, managing director, Credo Real Estate, said: "There's also a vacuum to satisfy larger developers demand for land in mid and prime sectors of the market because government land sale programme basically satisfies developers' demand in mass market locations."
Market watchers expect overall land prices to rise around five to 15 per cent this year.
They said good conditions and demand for property will drive developers into the collective market. - CNA/vm
By Chris Howells | Posted: 27 April 2010 2207 hrs
SINGAPORE: Analysts expect more en bloc sales activity from the city fringes and East Coast areas as developers cater to a growing mid-market segment.
They were responding to proposals tabled in Parliament on Monday to smooth out the collective sales process.
The new rules also seek to address the role of the Strata Titles Board and balance the interest of property owners.
Collective sales have bounced back this year after a poor showing last year when only one deal was done.
So far, four developments have been sold with another deal at Margate Road expected to be completed this week.
These five sales combined are worth S$275 million versus the lone S$101 million deal done for the whole of 2009.
Going forward, market watchers expect between 20 and 40 en bloc deals to take place this year.
Donald Han, managing director, Cushman & Wakefield, said: “I think what we're seeing now is more on the fringe of the central areas is looking more promising right now. Those we call the rest of the central core area. The East Coast area is looking interesting right now.
“Mainly there is a combination of investors, developers who are eager to come in and develop the mid-end segment of the market."
Observers said such developments will likely attract small-to-mid sized developers that are currently being priced out of the government land sales programme where land prices rose up to 20 per cent last year.
Observers said they're currently seeing appetite for en bloc sales worth under S$100 million on average and land sizes of around 15,000-50,000 square feet.
Karamjit Singh, managing director, Credo Real Estate, said: "There's also a vacuum to satisfy larger developers demand for land in mid and prime sectors of the market because government land sale programme basically satisfies developers' demand in mass market locations."
Market watchers expect overall land prices to rise around five to 15 per cent this year.
They said good conditions and demand for property will drive developers into the collective market. - CNA/vm
CNA : Leveraged developers a risk factor for China real estate
Leveraged developers a risk factor for China real estate
By Desmond Wong | Posted: 27 April 2010 2040 hrs
SINGAPORE: Leveraged developers, rather than end buyers, are the most likely source of risk for real estate in China.
And Citi says China's efforts to rein in its property price bubble are unlikely to affect other sectors, thanks to the government's effective control over policy.
Momentum in China real estate continues to build.
Citi says while the signs of a bubble are clear, the greatest risk within the market might not lie with the end buyers and high prices.
It says investors should watch the developers instead.
Thomas Flexner, global head of real estate, institutional clients group, Citi, says: "I think you do have to be sensitive which ones might have too much leverage, might have near term maturities, and might have a problem given the increasingly restrictive policies that China is beginning to apply to the residential sector."
China recently raised down payment for second home buyers from 40 per cent to 50 per cent, while increasing mortgage rates as well.
About one third of end-buyers in China pay entirely in cash, while the rest fund around 50 per cent of their property buys with debt.
Citi adds that China's tightening of the real estate sector is unlikely to hurt the rest of the economy for now, given the close control it has over policy making which allows it to introduce targeted changes as needed.
The lender says it remains confident about the long term growth of China's emerging real estate market, given the strong demand in areas outside the first tier cities.
Mr Flexner says: "In some of the top tier cities, like Beijing and Shanghai, there's been much more speculative investment... The other lesser cities that haven't attracted speculators tend to be much more driven by real home buyers."
But Citi stresses that while the long term fundamentals for real estate in emerging Asia are strong, investors should be prepared to accept a certain degree of volatility against a backdrop of fast, but uneven growth."
- CNA/jy
By Desmond Wong | Posted: 27 April 2010 2040 hrs
SINGAPORE: Leveraged developers, rather than end buyers, are the most likely source of risk for real estate in China.
And Citi says China's efforts to rein in its property price bubble are unlikely to affect other sectors, thanks to the government's effective control over policy.
Momentum in China real estate continues to build.
Citi says while the signs of a bubble are clear, the greatest risk within the market might not lie with the end buyers and high prices.
It says investors should watch the developers instead.
Thomas Flexner, global head of real estate, institutional clients group, Citi, says: "I think you do have to be sensitive which ones might have too much leverage, might have near term maturities, and might have a problem given the increasingly restrictive policies that China is beginning to apply to the residential sector."
China recently raised down payment for second home buyers from 40 per cent to 50 per cent, while increasing mortgage rates as well.
About one third of end-buyers in China pay entirely in cash, while the rest fund around 50 per cent of their property buys with debt.
Citi adds that China's tightening of the real estate sector is unlikely to hurt the rest of the economy for now, given the close control it has over policy making which allows it to introduce targeted changes as needed.
The lender says it remains confident about the long term growth of China's emerging real estate market, given the strong demand in areas outside the first tier cities.
Mr Flexner says: "In some of the top tier cities, like Beijing and Shanghai, there's been much more speculative investment... The other lesser cities that haven't attracted speculators tend to be much more driven by real home buyers."
But Citi stresses that while the long term fundamentals for real estate in emerging Asia are strong, investors should be prepared to accept a certain degree of volatility against a backdrop of fast, but uneven growth."
- CNA/jy
Thursday, April 22, 2010
CNA : URA launches tender for commercial site at Stamford Road and North Bridge Road
URA launches tender for commercial site at Stamford Road and North Bridge Road
By Mok Fei Fei | Posted: 21 April 2010 1203 hrs
SINGAPORE: The Urban Redevelopment Authority (URA) is launching a closely-watched commercial site at Stamford Road and North Bridge Road for sale by public tender.
The URA is launching the sale after a developer committed to bid at least S$100 million dollars for the 99-year-leasehold site, which was placed on the Reserve List system.
URA says the land parcel, which is 1.43 hectares in size, is slated for commercial use with a hotel component.
It contains a cluster of three historically and architecturally significant buildings, namely Capitol Theatre, Capitol Building and Stamford House.
As part of the redevelopment, those buildings must be retained and restored for adaptive reuse.
The site will be sold together with a subterranean parcel below North Bridge Road that provides seamless access to the City Hall MRT station.
The maximum permissible gross floor area for the development is close to 50,500 square metres.
Of that space, a minimum of 25 per cent is to be set aside for hotel use.
The land parcel is envisaged to also feature other uses like retail, food and beverage, art and entertainment facilities.
The tender will close on 18th August. - CNA/fa
URA says the land parcel, which is 1.43 hectares in size, is slated for commercial use with a hotel component - Image from URA
By Mok Fei Fei | Posted: 21 April 2010 1203 hrs
SINGAPORE: The Urban Redevelopment Authority (URA) is launching a closely-watched commercial site at Stamford Road and North Bridge Road for sale by public tender.
The URA is launching the sale after a developer committed to bid at least S$100 million dollars for the 99-year-leasehold site, which was placed on the Reserve List system.
URA says the land parcel, which is 1.43 hectares in size, is slated for commercial use with a hotel component.
It contains a cluster of three historically and architecturally significant buildings, namely Capitol Theatre, Capitol Building and Stamford House.
As part of the redevelopment, those buildings must be retained and restored for adaptive reuse.
The site will be sold together with a subterranean parcel below North Bridge Road that provides seamless access to the City Hall MRT station.
The maximum permissible gross floor area for the development is close to 50,500 square metres.
Of that space, a minimum of 25 per cent is to be set aside for hotel use.
The land parcel is envisaged to also feature other uses like retail, food and beverage, art and entertainment facilities.
The tender will close on 18th August. - CNA/fa
URA says the land parcel, which is 1.43 hectares in size, is slated for commercial use with a hotel component - Image from URA
Saturday, April 10, 2010
CNA : Fragrance buys Culford Garden in enbloc bid for S$39m at tender
Fragrance buys Culford Garden in enbloc bid for S$39m at tender
By Desmond Wong | Posted: 09 April 2010 2042 hrs
SINGAPORE: Fragrance Properties has bought the Culford Garden estate at Siglap for S$39 million in a collective sale.
The price translates to a land rate of about S$574 per square foot per plot ratio at a Gross Plot Ratio of 1.54.
The 24-unit Culford Garden has a land area of 44,094 square feet and is zoned for residential development with an allowable height of up to five stories.
Each owner could get an average of S$1.625 million from the sale.
This is believed to be the third successful enbloc sale this year. - CNA/vm
By Desmond Wong | Posted: 09 April 2010 2042 hrs
SINGAPORE: Fragrance Properties has bought the Culford Garden estate at Siglap for S$39 million in a collective sale.
The price translates to a land rate of about S$574 per square foot per plot ratio at a Gross Plot Ratio of 1.54.
The 24-unit Culford Garden has a land area of 44,094 square feet and is zoned for residential development with an allowable height of up to five stories.
Each owner could get an average of S$1.625 million from the sale.
This is believed to be the third successful enbloc sale this year. - CNA/vm
Wednesday, April 7, 2010
CNA : Property investment sales down 8.5% in Q1 on-quarter to S$2.64b
Singapore News
Property investment sales down 8.5% in Q1 on-quarter to S$2.64b
By Mok Fei Fei | Posted: 06 April 2010 1438 hrs
SINGAPORE : Investment sales in the property market finally slowed in the first quarter this year.
Property consultant DTZ Research said the value of investment transactions in the first three months this year fell 8.5 per cent on-quarter to S$2.64 billion.
It was the first drop after three straight quarters of increases.
The industrial sector leapfrogged the residential sector to account for the bulk of the investment transactions.
Sales in the industrial sector made up S$1.02 billion or 38.5 per cent of the total transacted value.
DTZ said the sector saw good sales due to the sale and leaseback deals that were made by soon-to-be-listed Cache Logistics Trust, racking up deals worth S$713.2 million.
Residential investments came in second at S$879.2 million or 33 per cent of the total investment value.
The majority of the residential investments was from the sale of sites in the Government Land Sales (GLS) programme.
DTZ noted that with just 6.3 per cent share of total residential transactions, private investment sales were noticeably crowded out.
It predicted that this trend is likely to continue with the GLS programme expected to be the main source of land supply for residential development.
This is due to the variety of GLS sites available and the speed at which they could be tendered for and put on the drawing block for sale in less than a year.
DTZ also forecast that there could be more foreign purchasers in the coming quarters.
This, it said, is evident from the major acquisitions of two office buildings, Robinson Point and One Finlayson Green, both of which were bought by foreign investors.
DTZ said an ongoing economic recovery is expected to lead to increased investment activity this year.
The figures compiled by DTZ Research comprise transactions that are more than S$5 million each.
They exclude S$1.75 billion of transactions in single residential units, or lots that cannot be redeveloped/subdivided into more than one plot, as well as deals that are deemed to be interested person/party transactions.
- CNA/il
Property investment sales down 8.5% in Q1 on-quarter to S$2.64b
By Mok Fei Fei | Posted: 06 April 2010 1438 hrs
SINGAPORE : Investment sales in the property market finally slowed in the first quarter this year.
Property consultant DTZ Research said the value of investment transactions in the first three months this year fell 8.5 per cent on-quarter to S$2.64 billion.
It was the first drop after three straight quarters of increases.
The industrial sector leapfrogged the residential sector to account for the bulk of the investment transactions.
Sales in the industrial sector made up S$1.02 billion or 38.5 per cent of the total transacted value.
DTZ said the sector saw good sales due to the sale and leaseback deals that were made by soon-to-be-listed Cache Logistics Trust, racking up deals worth S$713.2 million.
Residential investments came in second at S$879.2 million or 33 per cent of the total investment value.
The majority of the residential investments was from the sale of sites in the Government Land Sales (GLS) programme.
DTZ noted that with just 6.3 per cent share of total residential transactions, private investment sales were noticeably crowded out.
It predicted that this trend is likely to continue with the GLS programme expected to be the main source of land supply for residential development.
This is due to the variety of GLS sites available and the speed at which they could be tendered for and put on the drawing block for sale in less than a year.
DTZ also forecast that there could be more foreign purchasers in the coming quarters.
This, it said, is evident from the major acquisitions of two office buildings, Robinson Point and One Finlayson Green, both of which were bought by foreign investors.
DTZ said an ongoing economic recovery is expected to lead to increased investment activity this year.
The figures compiled by DTZ Research comprise transactions that are more than S$5 million each.
They exclude S$1.75 billion of transactions in single residential units, or lots that cannot be redeveloped/subdivided into more than one plot, as well as deals that are deemed to be interested person/party transactions.
- CNA/il
Monday, April 5, 2010
CNA : S$170,000 cash premium for Bishan maisonette a unique case: analysts
Singapore News
S$170,000 cash premium for Bishan maisonette a unique case: analysts
By Liang Kaixin / Hoe Yeen Nie | Posted: 01 April 2010 0043 hrs
SINGAPORE: An executive maisonette in Bishan is on the verge of setting a new record for the most expensive HDB flat ever transacted.
The flat is set to be sold for S$900,000, including an eye-popping cash premium of S$170,000.
However, analysts say that such a sale would be an exception, rather than the norm.
MediaCorp understands the owner had originally asked for S$950,000, but this was brought down to S$900,000 by the buyer.
Chris Koh, an analyst with Dennis Wee Properties, said the valuation price of about S$750,000 is "reasonable" given the flat's location and size.
However, he noted that a cash-over-valuation of S$170,000 is a record.
Analysts said that this is likely a one-off event.
HDB data shows that similar executive maisonettes in Bishan have sold for much less, with median prices at S$615,000.
Analysts cautioned that before forking out the money, buyers should also consider the unit's resale potential.
Said David Poh, senior group district director of Propnex Realty: "You probably will want to sell much higher than any other executive maisonettes in Bishan. So that will mean your pool of buyers will shrink, you'll probably have very limited buyers to choose from, and you probably will face more challenges in reselling it than a normal maisonette in Bishan."
He said the market for resale flats remained strong, although the popularity of two recently-launched Build-to-Order projects - Sembawang RiverLodge and Fernvale Ridge in Sengkang - suggests that some buyers are turning to new HDB flats instead.
Still, he expects resale prices to go up five to eight per cent on average this year, slightly lower than the 8.2 per cent growth seen in 2009.
- CNA/yb
S$170,000 cash premium for Bishan maisonette a unique case: analysts
By Liang Kaixin / Hoe Yeen Nie | Posted: 01 April 2010 0043 hrs
SINGAPORE: An executive maisonette in Bishan is on the verge of setting a new record for the most expensive HDB flat ever transacted.
The flat is set to be sold for S$900,000, including an eye-popping cash premium of S$170,000.
However, analysts say that such a sale would be an exception, rather than the norm.
MediaCorp understands the owner had originally asked for S$950,000, but this was brought down to S$900,000 by the buyer.
Chris Koh, an analyst with Dennis Wee Properties, said the valuation price of about S$750,000 is "reasonable" given the flat's location and size.
However, he noted that a cash-over-valuation of S$170,000 is a record.
Analysts said that this is likely a one-off event.
HDB data shows that similar executive maisonettes in Bishan have sold for much less, with median prices at S$615,000.
Analysts cautioned that before forking out the money, buyers should also consider the unit's resale potential.
Said David Poh, senior group district director of Propnex Realty: "You probably will want to sell much higher than any other executive maisonettes in Bishan. So that will mean your pool of buyers will shrink, you'll probably have very limited buyers to choose from, and you probably will face more challenges in reselling it than a normal maisonette in Bishan."
He said the market for resale flats remained strong, although the popularity of two recently-launched Build-to-Order projects - Sembawang RiverLodge and Fernvale Ridge in Sengkang - suggests that some buyers are turning to new HDB flats instead.
Still, he expects resale prices to go up five to eight per cent on average this year, slightly lower than the 8.2 per cent growth seen in 2009.
- CNA/yb
Wednesday, March 24, 2010
CNA : HDB to launch tender for residential land parcel at Tampines Road
HDB to launch tender for residential land parcel at Tampines Road
Posted: 23 March 2010 1552 hrs
SINGAPORE : The Housing and Development Board (HDB) said on Tuesday it has accepted an application for a residential land parcel at Tampines Road under the Reserve List System.
The site, with an area of 2,662 square metres, is proposed for the development of landed or apartment housing on a 99-year lease.
It has an allowable gross floor area of 3,727 square metres and the minimum offer price for the land parcel is S$6.5 million.
HDB will launch the tender in about two weeks' time.
Under the Reserve List System, the government will put up a listed site for public tender if it receives an application from a developer who commits to the minimum bid price by signing an agreement and paying a deposit of 3 per cent of the bid price.
- CNA/al
Posted: 23 March 2010 1552 hrs
SINGAPORE : The Housing and Development Board (HDB) said on Tuesday it has accepted an application for a residential land parcel at Tampines Road under the Reserve List System.
The site, with an area of 2,662 square metres, is proposed for the development of landed or apartment housing on a 99-year lease.
It has an allowable gross floor area of 3,727 square metres and the minimum offer price for the land parcel is S$6.5 million.
HDB will launch the tender in about two weeks' time.
Under the Reserve List System, the government will put up a listed site for public tender if it receives an application from a developer who commits to the minimum bid price by signing an agreement and paying a deposit of 3 per cent of the bid price.
- CNA/al
CNA : Singapore, Hong Kong jump to top 5 on luxury home price-rise list
Singapore, Hong Kong jump to top 5 on luxury home price-rise list
By Ryan Huang | Posted: 23 March 2010 2332 hrs
SINGAPORE: Hong Kong and Singapore jumped from the bottom five to the top five of an annual list measuring the rise in luxury home prices.
This was according to the latest figures from property consultants Knight Frank International for 2009.
The firm said that this reflects the attraction of prime residential property, where demand tends to improve as prices dip.
Overall, luxury home prices in the Asia Pacific region rose about 17 per cent on average last year.
In contrast, luxury home prices globally fell 5.5 per cent.
For 2009, the global list was led by Shanghai, where luxury home prices rose 52 per cent.
This was followed by Beijing at 47 per cent and Hong Kong at 40.5 per cent.
Singapore was tied for fourth place with Johannesburg, where luxury prices increased 17 per cent.
Non-Asian cities that made it to the top ten were Rio De Janerio (10 per cent), London (6.1 per cent) and Washington (5.7 per cent).
At the bottom of the global list - at number 56 - was Dubai, which saw luxury home prices plummet by 45 per cent.
- CNA/yb
By Ryan Huang | Posted: 23 March 2010 2332 hrs
SINGAPORE: Hong Kong and Singapore jumped from the bottom five to the top five of an annual list measuring the rise in luxury home prices.
This was according to the latest figures from property consultants Knight Frank International for 2009.
The firm said that this reflects the attraction of prime residential property, where demand tends to improve as prices dip.
Overall, luxury home prices in the Asia Pacific region rose about 17 per cent on average last year.
In contrast, luxury home prices globally fell 5.5 per cent.
For 2009, the global list was led by Shanghai, where luxury home prices rose 52 per cent.
This was followed by Beijing at 47 per cent and Hong Kong at 40.5 per cent.
Singapore was tied for fourth place with Johannesburg, where luxury prices increased 17 per cent.
Non-Asian cities that made it to the top ten were Rio De Janerio (10 per cent), London (6.1 per cent) and Washington (5.7 per cent).
At the bottom of the global list - at number 56 - was Dubai, which saw luxury home prices plummet by 45 per cent.
- CNA/yb
Tuesday, March 23, 2010
CNA : Retail rents expected to rise in second half of 2010
Retail rents expected to rise in second half of 2010
By Millet Enriquez | Posted: 22 March 2010 1215 hrs
SINGAPORE : Retail rents across Singapore were steady for the first quarter of 2010, according to estimates by DTZ Research.
But analysts said retail rents could rise moderately in the second half because of improving economic conditions.
Shoppers and tourists are boosting retail sales, helping rents hold firm in the first quarter.
Gross rentals for prime first-storey space at Orchard and Scotts Road stayed at S$39.70 per square foot per month, while upper-storey retail space went for S$20.50 per square foot a month.
Gross rents of prime first-storey retail space in other city areas remained at S$24.40 per square foot per month, while upper-storey retail space in the same areas fetched rents of S$14.00 per square foot per month.
In the suburban malls, monthly gross rents for first-floor prime space were S$33.50 per square foot and those on the upper floors cost S$22.80 per square foot.
Chua Chor Hoon, Head of Southeast Asia Research, DTZ Debenham Tie Leung, said: "If the economy in Singapore and those around us continue to do well, definitely it will boost consumer confidence even more later on in the year, and that will have an impact on retail sales...So on the whole, the outlook will be more positive. We expect rent to grow moderately this year between 2 to 5 per cent this year."
Despite the rosy outlook, some analysts said landlords are facing resistance on increases in rents.
Tenants may also hold out for lower rents, with new retail space coming up this year.
Three developments with over 1.1 million square feet of net lettable area are expected by the end of this year.
Analysts expect Orchard Road vacancies to rise as tenants move to new malls.
Barring another economic crisis, observers said rising inflation and interest rates could also hurt retailers.
Ms Chua said: "The suburban malls will be more resilient compared to the Orchard Road and city malls. That is because there is a fundamental local catchment around the suburban malls, and the suburban retailers provide more basic goods and services to serve this local catchment."
Leasing demand is also expected to be modest in the coming months, as most retailers completed their relocation and expansion plans last year. - CNA/sc/ms
By Millet Enriquez | Posted: 22 March 2010 1215 hrs
SINGAPORE : Retail rents across Singapore were steady for the first quarter of 2010, according to estimates by DTZ Research.
But analysts said retail rents could rise moderately in the second half because of improving economic conditions.
Shoppers and tourists are boosting retail sales, helping rents hold firm in the first quarter.
Gross rentals for prime first-storey space at Orchard and Scotts Road stayed at S$39.70 per square foot per month, while upper-storey retail space went for S$20.50 per square foot a month.
Gross rents of prime first-storey retail space in other city areas remained at S$24.40 per square foot per month, while upper-storey retail space in the same areas fetched rents of S$14.00 per square foot per month.
In the suburban malls, monthly gross rents for first-floor prime space were S$33.50 per square foot and those on the upper floors cost S$22.80 per square foot.
Chua Chor Hoon, Head of Southeast Asia Research, DTZ Debenham Tie Leung, said: "If the economy in Singapore and those around us continue to do well, definitely it will boost consumer confidence even more later on in the year, and that will have an impact on retail sales...So on the whole, the outlook will be more positive. We expect rent to grow moderately this year between 2 to 5 per cent this year."
Despite the rosy outlook, some analysts said landlords are facing resistance on increases in rents.
Tenants may also hold out for lower rents, with new retail space coming up this year.
Three developments with over 1.1 million square feet of net lettable area are expected by the end of this year.
Analysts expect Orchard Road vacancies to rise as tenants move to new malls.
Barring another economic crisis, observers said rising inflation and interest rates could also hurt retailers.
Ms Chua said: "The suburban malls will be more resilient compared to the Orchard Road and city malls. That is because there is a fundamental local catchment around the suburban malls, and the suburban retailers provide more basic goods and services to serve this local catchment."
Leasing demand is also expected to be modest in the coming months, as most retailers completed their relocation and expansion plans last year. - CNA/sc/ms
CNA : Ellipsiz to sell stake in building at Joo Koon Crescent
Ellipsiz to sell stake in building at Joo Koon Crescent
Posted: 22 March 2010 1905 hrs
SINGAPORE : Engineering and advanced packaging solutions provider Ellipsiz has agreed to sell its interest in a building at 12 Joo Koon Crescent for S$4.4 million.
The firm is expected to book a net gain of S$1.7 million from the sale.
Ellipsiz said the proposed sale will enhance its financial position and increase its working capital.
The property is a factory-cum-office building, whose lease is due to expire in January 2027, with an option to renew for another 29 years.
The building was damaged in a fire in March last year and reinstatement works are still on-going.
The building is valued at around S$4 million.
The sale is estimated to be completed by August this year. - CNA/ms
Posted: 22 March 2010 1905 hrs
SINGAPORE : Engineering and advanced packaging solutions provider Ellipsiz has agreed to sell its interest in a building at 12 Joo Koon Crescent for S$4.4 million.
The firm is expected to book a net gain of S$1.7 million from the sale.
Ellipsiz said the proposed sale will enhance its financial position and increase its working capital.
The property is a factory-cum-office building, whose lease is due to expire in January 2027, with an option to renew for another 29 years.
The building was damaged in a fire in March last year and reinstatement works are still on-going.
The building is valued at around S$4 million.
The sale is estimated to be completed by August this year. - CNA/ms
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