They were bungalows in the sky once; now penthouses can be smaller than 800 sq ft!
(Abstract from The Straits Times 8th Nov, 2009 by Joyce Teo)
Mention penthouses and one immediately thinks of big, luxurious bungalows in the sky, with wraparound views and a multimillion- dollar price tag.
But these days they can be as small as 800 sq ft or less.
These penthouses have come on the market along with mostly yet-to-be-completed developments featuring 'mickey mouse' apartments of 500 sq ft or less.
There is no market data on the number of these small penthouses but a survey of some recent projects with small units shows they are not uncommon.
At the recently released five- storey, 40-unit City Loft project near Farrer Park MRT station, the two-bedroom penthouses are 743 to 904 sq ft in size.
Another recent launch Suites@Guillemard - with units as small as 258 sq ft - has penthouses of 797 to 1,109 sq ft. Some sales were done around a median level of $1,250 psf.
At the 114-unit Siglap V, penthouses come as small as 760 sq ft and go up to 1,300 sq ft. This yet-to-be-launched project opposite Siglap Centre otherwise offers units starting from 380 to 730 sq ft.
Kembangan Suites also has small penthouses that come with private jacuzzis. The smallest, at 635 sq ft, includes a roof terrace that looks similar to the size of the private jacuzzi.
The project's 60 units were sold for $775 to $1,097 psf in March.
These penthouses of around 700 to 780 sq ft may appear to be as big as a three-room HDB flat - HDB's new build-to-order project Fernvale Palms, for instance, offers three- room units of about 721 sq ft - but they have less usable space.
'These small penthouses are a more recent phenomenon - some units will lose more usable space to planter boxes and bay windows, in addition to the staircase and roof terrace,' said Ngee Ann Polytechnic lecturer Nicholas Mak.
The Urban Redevelopment Authority (URA) does not differentiate penthouses from other residential units, so there are no specific planning guidelines or requirements for penthouses.
'As long as the premises are used for residential purposes, the layout and design features of penthouses are left to the developer or the owner to decide, depending on the market or the owner's needs,' said a URA spokesman.
The Merriam-Webster dictionary defines a penthouse as a structure or dwelling built on the roof of a building.
Still, not all private developments have penthouses. EL Development did away with them for its sold-out 19-storey Illuminaire on Devonshire, which has only apartments of 441 to 721 sq ft.
'If you build a lot of small units, it may be a mismatch to have a four-bedroom penthouse,' explained its managing director Lim Yew Soon.
There may not be any official guidelines for penthouses, but the industry norm for one has always been a large, top-floor unit with a rooftop terrace.
Otherwise, a penthouse will be no different from any apartment, experts said. Size matters too.
'I think penthouse buyers have a certain expectation of sizes,' said DP Architects director Tai Lee Siang. 'The norm is still around 2,000-3,000 sq ft. At $5 million to $10 million, they don't make much difference for anyone who could be earning a few million dollars a month.'
Said Jones Lang LaSalle's head of residential, Ms Jacqueline Wong: 'A penthouse is typically 3,000 sq ft and up. It is at least a duplex unit, has four bedrooms and rooftop access. They are bungalows in the sky.'
Penthouses are also mostly for owner occupation.
Huge ones were in vogue during the run-up of 2006 to 2007, when developers were vying with one another to build bigger and bigger units, and to add super-posh features to differentiate the penthouses from regular units.
In late 2006, a five-bedroom penthouse at Marina Bay Residences made the news when it was sold for nearly $27 million, or $2,446 psf. It boasts a whopping 11,012 sqft from the 53rd to 55th floors, and has a rooftop terrace, a 20m outdoor pool and two private lift lobbies.
At one point during the boom, the psf price for penthouses cost even more than that for regular units. But today, you can buy a penthouse with a budget of less than $1 million.
Industry experts said these low-priced units are clearly aimed not at the typical penthouse buyers, but at investors or buyers looking for an affordable apartment.
Because affordability is key, developers are building smaller apartments.
They reap higher profits if units are sold at a higher marginal price than larger units, said National University of Singapore associate professor for real estate Sin Tien Foo. 'The absolute values for small units are also more affordable and they appeal to a wider target group.'
So far, buyers have indeed been biting. Kembangan Suites, for instance, got very strong response.
'I think people will gradually accept smaller penthouses so long as these are highest premium units in a development and usually located at the highest floors,' said Mr Tai.
'If the entire building comprises small units, a 1,000 sq ft penthouse is not unthinkable.'
Monday, November 9, 2009
More land for homes soon, so don't rush
Private developers will have a variety of sites to choose from by first half of 2010, says Mah
(Abstract from The Straits Times 8th Nov,2009 by Goh Chin Lian)
There is no need to rush to buy homes, now that a slew of land parcels will be released to private developers in the first half of next year.
That was the assurance given yesterday by National Development Minister Mah Bow Tan.
Similarly, he assured developers that they will have a variety of sites to choose from, with some up for grabs as early as January.
He was speaking to reporters a day after the Government announced that at least eight residential sites - and as many as 26 - will be offered to developers.
It made the move to allay fears of a shortage of homes in the private property market that may have sent prices surging to levels seen in the previous boom.
Five of the 26 sites are for executive condominiums, to cater to the 'sandwiched group', Mr Mah said.
These are people who do not qualify for new HDB flats because they earn more than the $8,000 monthly income cap, but who may find private property too expensive.
The 26 sites could yield 10,550 private homes, the most from half-yearly government land sales since the second half of 2001.
Mr Mah said: 'It sends a signal that there is ample supply, and if the demand is high, we are able to meet this demand by releasing more land.'
Another 60,000 units are also in the pipeline and have yet to be sold, he pointed out.
'So no need to panic, no need to rush. Just take your time, look around, and you will find a home that's suitable for you and that is within your budget,' he said.
Earlier, Mr Mah presented certificates to 41 newly registered professional engineers, at an annual event to recognise the contributions of such professionals.
In his speech, he identified two challenges facing engineers.
One is to find ways to make buildings environmentally friendly and adopt sustainable construction practices, such as using more recycled materials.
Another challenge is to advance the construction industry through innovation, such as the prefabrication technology used to build the 50-storey residential towers at Pinnacle@Duxton.
Mr Mah also recognised the Professional Engineers Board's efforts to promote the profession as a lifelong career.
New blood is needed, he pointed out, as six in 10 professional engineers with practising certificates are aged 50 or above.
(Abstract from The Straits Times 8th Nov,2009 by Goh Chin Lian)
There is no need to rush to buy homes, now that a slew of land parcels will be released to private developers in the first half of next year.
That was the assurance given yesterday by National Development Minister Mah Bow Tan.
Similarly, he assured developers that they will have a variety of sites to choose from, with some up for grabs as early as January.
He was speaking to reporters a day after the Government announced that at least eight residential sites - and as many as 26 - will be offered to developers.
It made the move to allay fears of a shortage of homes in the private property market that may have sent prices surging to levels seen in the previous boom.
Five of the 26 sites are for executive condominiums, to cater to the 'sandwiched group', Mr Mah said.
These are people who do not qualify for new HDB flats because they earn more than the $8,000 monthly income cap, but who may find private property too expensive.
The 26 sites could yield 10,550 private homes, the most from half-yearly government land sales since the second half of 2001.
Mr Mah said: 'It sends a signal that there is ample supply, and if the demand is high, we are able to meet this demand by releasing more land.'
Another 60,000 units are also in the pipeline and have yet to be sold, he pointed out.
'So no need to panic, no need to rush. Just take your time, look around, and you will find a home that's suitable for you and that is within your budget,' he said.
Earlier, Mr Mah presented certificates to 41 newly registered professional engineers, at an annual event to recognise the contributions of such professionals.
In his speech, he identified two challenges facing engineers.
One is to find ways to make buildings environmentally friendly and adopt sustainable construction practices, such as using more recycled materials.
Another challenge is to advance the construction industry through innovation, such as the prefabrication technology used to build the 50-storey residential towers at Pinnacle@Duxton.
Mr Mah also recognised the Professional Engineers Board's efforts to promote the profession as a lifelong career.
New blood is needed, he pointed out, as six in 10 professional engineers with practising certificates are aged 50 or above.
Saturday, November 7, 2009
10,550 private homes, maybe
(Abstract from TodayOnline 7th Nov, 2009 by Tan Hui Leng)
SINGAPORE - It has come a month earlier this year than usual, in what seems a clear move to tackle concerns about the property market's exuberance. On Friday, the Government released details of its Land Sales programme for the first half of next year, signalling a potential addition of 10,550 private homes - the most since the programme began in 2001.
The much-anticipated reinstatement of the Confirmed List - a list suspended a year ago as the recession bit - saw eight residential sites identified to be put up for tender in the first four months. These could yield 2,925 units, just short of the high at the peak of the property boom in 2007.
"Since people say there's some anxiety about housing supply and so on ... it's better to tell people (now) that there's going to be adequate housing supply," said the Urban Redevelopment Authority's senior group director (land sales and administration) Choy Chan Pong.
On the Reserve List - for sites whose tender will only be triggered if there is a minimum bid - are 16 residential sites and two mixed-used sites that could include residential units.
All 26 sites in the programme will be outside the Core Central Region, to increase the supply of more affordable private housing, said Mr Choy. Four of the Confirmed List sites are new - at Buangkok, Lakeside, Simei and Upper Serangoon. Their selection is based on national development plans: For instance, the Lakeside area will be developed as part of the Jurong Lake District.
Analysts believe this injection of new units could put a lid on private home prices, which in the third quarter grew 15.8 per cent - the steepest on-quarter rise since 1981.
"It's the intention of the Government to make sure that property prices don't run away," said Knight Frank's Peter Ow.
Cushman and Wakefield Singapore's Donald Han expects more developers from China and Hong Kong to join the fray, as the high-end markets here have not peaked price-wise.
As of the third quarter, there were some 59,700 units in the pipeline, not including the 2,010 units from the Reserve List sites sold this year.
Copyright 2009 MediaCorp Pte Ltd | All Rights Reserved
SINGAPORE - It has come a month earlier this year than usual, in what seems a clear move to tackle concerns about the property market's exuberance. On Friday, the Government released details of its Land Sales programme for the first half of next year, signalling a potential addition of 10,550 private homes - the most since the programme began in 2001.
The much-anticipated reinstatement of the Confirmed List - a list suspended a year ago as the recession bit - saw eight residential sites identified to be put up for tender in the first four months. These could yield 2,925 units, just short of the high at the peak of the property boom in 2007.
"Since people say there's some anxiety about housing supply and so on ... it's better to tell people (now) that there's going to be adequate housing supply," said the Urban Redevelopment Authority's senior group director (land sales and administration) Choy Chan Pong.
On the Reserve List - for sites whose tender will only be triggered if there is a minimum bid - are 16 residential sites and two mixed-used sites that could include residential units.
All 26 sites in the programme will be outside the Core Central Region, to increase the supply of more affordable private housing, said Mr Choy. Four of the Confirmed List sites are new - at Buangkok, Lakeside, Simei and Upper Serangoon. Their selection is based on national development plans: For instance, the Lakeside area will be developed as part of the Jurong Lake District.
Analysts believe this injection of new units could put a lid on private home prices, which in the third quarter grew 15.8 per cent - the steepest on-quarter rise since 1981.
"It's the intention of the Government to make sure that property prices don't run away," said Knight Frank's Peter Ow.
Cushman and Wakefield Singapore's Donald Han expects more developers from China and Hong Kong to join the fray, as the high-end markets here have not peaked price-wise.
As of the third quarter, there were some 59,700 units in the pipeline, not including the 2,010 units from the Reserve List sites sold this year.
Copyright 2009 MediaCorp Pte Ltd | All Rights Reserved
Bubble brewing?
(Abstract from TodayOnline 7th Nov, 2009 by Colin Tan)
WITH the recent release of third-quarter real estate data, it may be timely to ask: Is there a real estate bubble, and if so, how bad is it? When the figures were unveiled in the last week of October, private-housing prices were out-of-sync with the rest of the market. Prices and rents were down for the other major sectors - office, retail and industrial. These trends were in line with current economic conditions.
Private-housing prices rebounded sharply by 15.8 per cent, easily the highest quarterly rise in more than 25 years. This is aggravated by the decline of housing rentals. Prices dropped by 2.2 per cent despite the third quarter traditionally being the best in terms of number of leases closed, as this is when many expatriates return from their holidays and sign new rental contracts.
Although the overall housing rental trend is down, rentals in some areas have improved and recorded increases in August and September. These increases could partly be due to the large number of expatriates signing new leases in the third quarter. Overseas managerial staff from the integrated resorts would also have signed on during this period.
Rents will go up for some developments due to competition. There are also signs that some tenants are moving to smaller units. This may also lead to rises in some unit types but declines for others.
In the third quarter, 921 units were added to the total number of vacant housing units or a growth of 6.6 per cent, as 3,666 units were completed during the quarter - the highest quarterly figure in more than a decade. The last time the market saw any significant growth was in the first quarter of last year, when the number of vacant units grew by 1,728 units or 13.2 per cent.
The number of units completing in the final quarter and next year may not be big - 1,805 for the fourth quarter and 5,737 for the whole of 2010. But the pressure resumes, with 11,667 in 2011 and 12,991 in 2012.
Owner occupiers or investors?
The Singapore private-housing market has traditionally been anchored by owner-occupier purchases, giving stability to prices.
But in 2007 and 2009, the proportion of investors rose significantly. There is no formal information on the actual percentage of investors but a small sample of about 33 cases show investor-purchases at 87.8 per cent of the total, showing an increased downward pressure on housing rentals in the future.
Judging from land prices, which have increased by more than 30 per cent based on the winning bids from five triggered Government sites, housing prices can be expected to rise.
The latest announcement that the Government intends to launch eight housing sites from the confirmed list in the first four months of next year is timely as it helps to increase supply. With ample liquidity and the low cost of funds in the market, it will be awhile before prices begin to drop.
For those still contemplating investing in the property market, recognise the activity for what it is - a high risk, high gain play. It is never a low-risk, high-gain activity. ¢
The writer is the head of research and consultancy at Chesterton Suntec International. The opinions expressed here are his own.
Copyright 2009 MediaCorp Pte Ltd | All Rights Reserved
WITH the recent release of third-quarter real estate data, it may be timely to ask: Is there a real estate bubble, and if so, how bad is it? When the figures were unveiled in the last week of October, private-housing prices were out-of-sync with the rest of the market. Prices and rents were down for the other major sectors - office, retail and industrial. These trends were in line with current economic conditions.
Private-housing prices rebounded sharply by 15.8 per cent, easily the highest quarterly rise in more than 25 years. This is aggravated by the decline of housing rentals. Prices dropped by 2.2 per cent despite the third quarter traditionally being the best in terms of number of leases closed, as this is when many expatriates return from their holidays and sign new rental contracts.
Although the overall housing rental trend is down, rentals in some areas have improved and recorded increases in August and September. These increases could partly be due to the large number of expatriates signing new leases in the third quarter. Overseas managerial staff from the integrated resorts would also have signed on during this period.
Rents will go up for some developments due to competition. There are also signs that some tenants are moving to smaller units. This may also lead to rises in some unit types but declines for others.
In the third quarter, 921 units were added to the total number of vacant housing units or a growth of 6.6 per cent, as 3,666 units were completed during the quarter - the highest quarterly figure in more than a decade. The last time the market saw any significant growth was in the first quarter of last year, when the number of vacant units grew by 1,728 units or 13.2 per cent.
The number of units completing in the final quarter and next year may not be big - 1,805 for the fourth quarter and 5,737 for the whole of 2010. But the pressure resumes, with 11,667 in 2011 and 12,991 in 2012.
Owner occupiers or investors?
The Singapore private-housing market has traditionally been anchored by owner-occupier purchases, giving stability to prices.
But in 2007 and 2009, the proportion of investors rose significantly. There is no formal information on the actual percentage of investors but a small sample of about 33 cases show investor-purchases at 87.8 per cent of the total, showing an increased downward pressure on housing rentals in the future.
Judging from land prices, which have increased by more than 30 per cent based on the winning bids from five triggered Government sites, housing prices can be expected to rise.
The latest announcement that the Government intends to launch eight housing sites from the confirmed list in the first four months of next year is timely as it helps to increase supply. With ample liquidity and the low cost of funds in the market, it will be awhile before prices begin to drop.
For those still contemplating investing in the property market, recognise the activity for what it is - a high risk, high gain play. It is never a low-risk, high-gain activity. ¢
The writer is the head of research and consultancy at Chesterton Suntec International. The opinions expressed here are his own.
Copyright 2009 MediaCorp Pte Ltd | All Rights Reserved
Cheung Kong is top bidder for Upper Thomson Rd condo plot
(Abstract from Business Times 7th Nov, 2009 By KALPANA RASHIWALA)
THE top bidder for the 99-year condo site on Upper Thomson Road on Thursday has been revealed as a unit of Hong Kong tycoon Li Ka-shing's Cheung Kong Holdings.
This was confirmed yesterday by Raymond Chui, general manager of the group's Singapore-based unit Property Enterprises Development.
Cheung Kong unit Treasure Well Investments' bid was for $251.3 million or about $533 per square foot per plot ratio (psf ppr) - the highest seen for a private housing site at a state land tender this year.
Mr Chui said the estimated breakeven cost of about $850 to $900 psf forecast by analysts quoted in the media was pretty accurate. 'We'll probably develop around 340 to 350 units,' he added.
Treasure Well's top bid was 21.5 per cent above the next highest offer, which was made by Singapore's Far East Organization.
When asked if Cheung Kong regretted having paid such a wide margin, especially in hindsight as the government announced its H1 2010 land sales programme the next day with substantial supply in the confirmed list, Mr Chui replied: 'We've done our sums. The site is in a very good location and we have confidence in the future of the Singapore property market.'
The Upper Thomson Road site is located opposite the Singapore Island Country Club's Island Golf Course and Lower Peirce Reservoir.
The group will also be developing a 295-unit condo on a 99-year-leasehold site facing West Coast Park and overlooking the sea.
That is likely to be launched next year, possibly in the second quarter, Mr Chui revealed.
The project will comprise fairly regular-sized units. 'Our showflat is not yet ready,' he added.
Cheung Kong clinched the West Coast site at a state tender in March last year, paying $110.44 million or $305 psf ppr.
Interestingly, it also outbid Far East Organization for that site, but with a much narrower winning margin of just 1.4 per cent.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
THE top bidder for the 99-year condo site on Upper Thomson Road on Thursday has been revealed as a unit of Hong Kong tycoon Li Ka-shing's Cheung Kong Holdings.
This was confirmed yesterday by Raymond Chui, general manager of the group's Singapore-based unit Property Enterprises Development.
Cheung Kong unit Treasure Well Investments' bid was for $251.3 million or about $533 per square foot per plot ratio (psf ppr) - the highest seen for a private housing site at a state land tender this year.
Mr Chui said the estimated breakeven cost of about $850 to $900 psf forecast by analysts quoted in the media was pretty accurate. 'We'll probably develop around 340 to 350 units,' he added.
Treasure Well's top bid was 21.5 per cent above the next highest offer, which was made by Singapore's Far East Organization.
When asked if Cheung Kong regretted having paid such a wide margin, especially in hindsight as the government announced its H1 2010 land sales programme the next day with substantial supply in the confirmed list, Mr Chui replied: 'We've done our sums. The site is in a very good location and we have confidence in the future of the Singapore property market.'
The Upper Thomson Road site is located opposite the Singapore Island Country Club's Island Golf Course and Lower Peirce Reservoir.
The group will also be developing a 295-unit condo on a 99-year-leasehold site facing West Coast Park and overlooking the sea.
That is likely to be launched next year, possibly in the second quarter, Mr Chui revealed.
The project will comprise fairly regular-sized units. 'Our showflat is not yet ready,' he added.
Cheung Kong clinched the West Coast site at a state tender in March last year, paying $110.44 million or $305 psf ppr.
Interestingly, it also outbid Far East Organization for that site, but with a much narrower winning margin of just 1.4 per cent.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Govt to offer slew of sites for homes
Eight confirmed sites and as many as 26 to allay fears of shortage
(Abstract from The Strait Times 7th Nov, 2009 by Joyce Teo)
THE Government acted ahead of schedule yesterday in following through on its pledge to release plenty of land sites to meet strong demand for mass market homes outside the city centre.
In the first half of next year, at least eight residential sites - and as many as 26 sites - will be offered to developers.
The move is being seen as a bid to allay fears of a shortage of these homes - often bought by HDB upgraders - which may have sent prices surging.
The 26 sites could produce 10,550 private homes - the highest number from any half-yearly government land sales since the second half of 2001, said the Urban Redevelopment Authority (URA).
In an announcement that came a few weeks earlier than usual, the Government said it would put eight residential sites, including two executive condominium (EC) sites, on the confirmed list. This is where sites are put up for sale regardless of developers' prior expressions of interest.
These sites could boast about 2,925 new homes, close to the boom time 3,000 in the second half of 2007.
'There's some anxiety about housing supply, so its better to tell people that there will be adequate supply,' said URA senior group director of land sales and administration Choy Chan Pong.
'The private residential market has seen very strong demand in the past eight months, so we want to ensure there is enough supply to meet demand, so that prices can move more in sync with economic fundamentals,' he said.
To calm the market, National Development Minister Mah Bow Tan, in mid-September, flagged the move to reinstate the confirmed list after it was suspended for about a year.
Sales of new private homes this year are now above 12,828 units and could hit 2007's record of 14,811 units. Developers have thus been bidding for land at much higher than expected prices.
The high-end homes market has not fully recovered, but mass market prices are now similar to levels seen in the previous boom, sparking fears of runaway mass market prices, experts said.
'The programme will ensure the property market stays stable and price increases are kept to moderate levels,' said Knight Frank's executive director of residential, Mr Peter Ow.
Aggressive bids by developers could also become a thing of the past.
The Government is trying to calm panicky buyers as well as developers who have been tendering for sites at record prices, said Cushman & Wakefield managing director Donald Han.
Of the 26 sites for residential use on the land sales programme, 10 are new sites, not rolled out previously.
In January, the Government will push out three confirmed sites, including a new EC site in Buangkok Drive.
The five EC sites, one new, will mean the largest EC supply since 2000.
'Putting two ECs on the confirmed list reflects the Government's concern about the widening gap between HDB resale prices and private housing prices,' said DTZ head of South-east Asia research Chua Chor Hoon.
Two of the 26 residential sites are mixed-use, whereby private homes can be built. Another 16 are on the reserve list, whereby sites are offered for sale after a developer commits to a minimum bid.
Two confirmed list sites near MRT stations - in Pheng Geck Avenue and Simei Street 3 - are very attractive, and could fetch $400 to $500 per sq ft of gross floor area, Mr Ow estimated.
Units on the sites may then sell for close to $1,000 psf, he added.
On the reserve list, the sites likely to be triggered for tender are in Bishan Street14, Bartley Road and Stirling Road, said CBRE Research.
In all, 42 sites are available for sale in the first half of next year, comprising 24 purely residential sites, two mixed use sites that must include residential use, five commercial sites, 10 hotel sites and one site permitting a range of uses.
joyceteo@sph.com.sg
(Abstract from The Strait Times 7th Nov, 2009 by Joyce Teo)
THE Government acted ahead of schedule yesterday in following through on its pledge to release plenty of land sites to meet strong demand for mass market homes outside the city centre.
In the first half of next year, at least eight residential sites - and as many as 26 sites - will be offered to developers.
The move is being seen as a bid to allay fears of a shortage of these homes - often bought by HDB upgraders - which may have sent prices surging.
The 26 sites could produce 10,550 private homes - the highest number from any half-yearly government land sales since the second half of 2001, said the Urban Redevelopment Authority (URA).
In an announcement that came a few weeks earlier than usual, the Government said it would put eight residential sites, including two executive condominium (EC) sites, on the confirmed list. This is where sites are put up for sale regardless of developers' prior expressions of interest.
These sites could boast about 2,925 new homes, close to the boom time 3,000 in the second half of 2007.
'There's some anxiety about housing supply, so its better to tell people that there will be adequate supply,' said URA senior group director of land sales and administration Choy Chan Pong.
'The private residential market has seen very strong demand in the past eight months, so we want to ensure there is enough supply to meet demand, so that prices can move more in sync with economic fundamentals,' he said.
To calm the market, National Development Minister Mah Bow Tan, in mid-September, flagged the move to reinstate the confirmed list after it was suspended for about a year.
Sales of new private homes this year are now above 12,828 units and could hit 2007's record of 14,811 units. Developers have thus been bidding for land at much higher than expected prices.
The high-end homes market has not fully recovered, but mass market prices are now similar to levels seen in the previous boom, sparking fears of runaway mass market prices, experts said.
'The programme will ensure the property market stays stable and price increases are kept to moderate levels,' said Knight Frank's executive director of residential, Mr Peter Ow.
Aggressive bids by developers could also become a thing of the past.
The Government is trying to calm panicky buyers as well as developers who have been tendering for sites at record prices, said Cushman & Wakefield managing director Donald Han.
Of the 26 sites for residential use on the land sales programme, 10 are new sites, not rolled out previously.
In January, the Government will push out three confirmed sites, including a new EC site in Buangkok Drive.
The five EC sites, one new, will mean the largest EC supply since 2000.
'Putting two ECs on the confirmed list reflects the Government's concern about the widening gap between HDB resale prices and private housing prices,' said DTZ head of South-east Asia research Chua Chor Hoon.
Two of the 26 residential sites are mixed-use, whereby private homes can be built. Another 16 are on the reserve list, whereby sites are offered for sale after a developer commits to a minimum bid.
Two confirmed list sites near MRT stations - in Pheng Geck Avenue and Simei Street 3 - are very attractive, and could fetch $400 to $500 per sq ft of gross floor area, Mr Ow estimated.
Units on the sites may then sell for close to $1,000 psf, he added.
On the reserve list, the sites likely to be triggered for tender are in Bishan Street14, Bartley Road and Stirling Road, said CBRE Research.
In all, 42 sites are available for sale in the first half of next year, comprising 24 purely residential sites, two mixed use sites that must include residential use, five commercial sites, 10 hotel sites and one site permitting a range of uses.
joyceteo@sph.com.sg
Buffet-table spread of sites for developers
But the jury is out on whether the govt's release of plots will tame land bids, which have soared wildly at state tenders
(Abstract from Business Times 7th Nov, 2009 By KALPANA RASHIWALA)
THE government is offering developers a platter of residential sites through the confirmed and reserve lists for the next half - including several plots in the vicinities of hot-selling condo launches this year, such as Caspian near Jurong Lake and Alexis near Queenstown MRT Station.
However, the jury is out on how much this will tame land bids, which have soared wildly at recent state tenders.
Four of the eight sites on the confirmed list and at least four reserve list sites are near MRT stations - but there are also many sites not in the vicinity of train stations where more affordable private housing could be built.
A few plots are close to the city while the majority are in typical suburban locations where private condos catering to HDB upgraders are located.
Peter Ow, Knight Frank executive director (residential), said: 'The government's main message is that it is taking care of the upgraders' market. The current release is to tackle and try to moderate prices in the upgraders market which concerns most Singaporeans.'
For new private homes, prices in the mass-market segment have surpassed their 2007 peak levels; whereas for high-end homes, prices have yet to recover to their 2007-highs, he added.
'Thus, there are no sites in the Core Central Region, which includes the prime districts. The government recognises the fact that not all sectors of the residential market are doing well, especially high-end homes.'
Chua Chor Hoon, DTZ's South-east Asia research head, said that with so many choices, developers are unlikely to put in aggressive land bids in future tenders.
Leonard Tay, CB Richard Ellis director (research), said that the latest supply may moderate slightly some of the exuberance at recent state tenders but prime sites near MRT stations would still be well contested and developers may put in a premium.
Putting the latest supply numbers in perspective, Knight Frank chairman Tan Tiong Cheng suggested that the 2,925 private homes that can be developed on the eight confirmed list plots for H1 2010 would not significantly bring down land bids as the reintroduction of supply on this list is long overdue after an absence of one year.
'So it's more like catching up. Plus, there's no alternative supply of mass market sites from the private sector through collective sales, for instance,' he added.
Of the 10 new housing sites on the latest confirmed and reserve lists, Knight Frank's Mr Ow picks out the confirmed list plot next to Potong Pasir MRT Station, which can yield about 150 private homes, and the reserve list site at Stirling Road near Queenstown MRT Station as the ones likely to fetch the highest bids - about $500 per square foot per plot ratio (psf ppr) and above $500 psf ppr respectively, because of their proximity to the city.
DTZ's Ms Chua pointed out that the Stirling Road site, which can be be turned into a condo with about 405 units, is quite near the CBD and very close to HDB flats. A new condo on the site would generate demand from both owner occupiers and investors. 'There's good rental demand for Queens and Anchorage condos nearby,' she said.
Agreeing, Mr Ow said that the Stirling plot, with a 4.2 plot ratio (ratio of maximum potential gross floor area to land area) could probably be built up to 40 storeys, in line with Queens condo just in front of it as well as HDB blocks in the Dawson estate nearby.
Property consultants said that other new sites that are likely to be popular include plots near Simei and Lakeside MRT stations as well as a plot in Pasir Ris near Downtown East and Pasir Ris Park.
The land parcel near Lakeside MRT Station, which is under the confirmed list, can produce some 525 private homes. It is next to Caspian, which sold like hot cakes in February and helped revive private homes sales after last year's global financial crash. Another plot on the confirmed list, diagonally opposite Simei MRT, can produce 250 units. It is also near UOL Group's Double Bay Residences which was released this year. The confirmed list site at Pheng Geck Avenue near Potong Pasir MRT is close to another 2009 hot seller, 8@Woodleigh.
Among the new reserve list sites, the Stirling Road plot is in the vicinity of Alexis condo, which was also among the earlier hot projects this year.
The Ministry of National Development has also injected two plots in Hougang into the latest reserve list - one at Hougang Avenue 2 designated for a low-rise development near Rosyth School, and the other, at Hougang Avenue 7.
Another new reserve list plot is at Miltonia Close in Yishun, next to The Shaughnessy, a completed condo. It may be far from town and not next to an MRT station but a new low-rise development on the site will be attractively located, next to Orchid Golf Course and near Lower Seletar Reservoir.
Developers more familiar with the Eunos area may consider a plot at Foo Kim Lin Road which can generate about 535 units. It is a new plot on the reserve list.
'Developers now have a whole buffet-table spread of sites to choose from,' summed up CBRE's Mr Tay.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
(Abstract from Business Times 7th Nov, 2009 By KALPANA RASHIWALA)
THE government is offering developers a platter of residential sites through the confirmed and reserve lists for the next half - including several plots in the vicinities of hot-selling condo launches this year, such as Caspian near Jurong Lake and Alexis near Queenstown MRT Station.
However, the jury is out on how much this will tame land bids, which have soared wildly at recent state tenders.
Four of the eight sites on the confirmed list and at least four reserve list sites are near MRT stations - but there are also many sites not in the vicinity of train stations where more affordable private housing could be built.
A few plots are close to the city while the majority are in typical suburban locations where private condos catering to HDB upgraders are located.
Peter Ow, Knight Frank executive director (residential), said: 'The government's main message is that it is taking care of the upgraders' market. The current release is to tackle and try to moderate prices in the upgraders market which concerns most Singaporeans.'
For new private homes, prices in the mass-market segment have surpassed their 2007 peak levels; whereas for high-end homes, prices have yet to recover to their 2007-highs, he added.
'Thus, there are no sites in the Core Central Region, which includes the prime districts. The government recognises the fact that not all sectors of the residential market are doing well, especially high-end homes.'
Chua Chor Hoon, DTZ's South-east Asia research head, said that with so many choices, developers are unlikely to put in aggressive land bids in future tenders.
Leonard Tay, CB Richard Ellis director (research), said that the latest supply may moderate slightly some of the exuberance at recent state tenders but prime sites near MRT stations would still be well contested and developers may put in a premium.
Putting the latest supply numbers in perspective, Knight Frank chairman Tan Tiong Cheng suggested that the 2,925 private homes that can be developed on the eight confirmed list plots for H1 2010 would not significantly bring down land bids as the reintroduction of supply on this list is long overdue after an absence of one year.
'So it's more like catching up. Plus, there's no alternative supply of mass market sites from the private sector through collective sales, for instance,' he added.
Of the 10 new housing sites on the latest confirmed and reserve lists, Knight Frank's Mr Ow picks out the confirmed list plot next to Potong Pasir MRT Station, which can yield about 150 private homes, and the reserve list site at Stirling Road near Queenstown MRT Station as the ones likely to fetch the highest bids - about $500 per square foot per plot ratio (psf ppr) and above $500 psf ppr respectively, because of their proximity to the city.
DTZ's Ms Chua pointed out that the Stirling Road site, which can be be turned into a condo with about 405 units, is quite near the CBD and very close to HDB flats. A new condo on the site would generate demand from both owner occupiers and investors. 'There's good rental demand for Queens and Anchorage condos nearby,' she said.
Agreeing, Mr Ow said that the Stirling plot, with a 4.2 plot ratio (ratio of maximum potential gross floor area to land area) could probably be built up to 40 storeys, in line with Queens condo just in front of it as well as HDB blocks in the Dawson estate nearby.
Property consultants said that other new sites that are likely to be popular include plots near Simei and Lakeside MRT stations as well as a plot in Pasir Ris near Downtown East and Pasir Ris Park.
The land parcel near Lakeside MRT Station, which is under the confirmed list, can produce some 525 private homes. It is next to Caspian, which sold like hot cakes in February and helped revive private homes sales after last year's global financial crash. Another plot on the confirmed list, diagonally opposite Simei MRT, can produce 250 units. It is also near UOL Group's Double Bay Residences which was released this year. The confirmed list site at Pheng Geck Avenue near Potong Pasir MRT is close to another 2009 hot seller, 8@Woodleigh.
Among the new reserve list sites, the Stirling Road plot is in the vicinity of Alexis condo, which was also among the earlier hot projects this year.
The Ministry of National Development has also injected two plots in Hougang into the latest reserve list - one at Hougang Avenue 2 designated for a low-rise development near Rosyth School, and the other, at Hougang Avenue 7.
Another new reserve list plot is at Miltonia Close in Yishun, next to The Shaughnessy, a completed condo. It may be far from town and not next to an MRT station but a new low-rise development on the site will be attractively located, next to Orchid Golf Course and near Lower Seletar Reservoir.
Developers more familiar with the Eunos area may consider a plot at Foo Kim Lin Road which can generate about 535 units. It is a new plot on the reserve list.
'Developers now have a whole buffet-table spread of sites to choose from,' summed up CBRE's Mr Tay.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Govt turns up supply tap to cool property fever
10 new sites signal intent to keep home prices affordable
(Abstract from Business Times 7th Nov, 2009 by Emilyn Yap)
THE government yesterday fired a clear signal that it intends to keep private homes affordable by announcing its land sales programme for the first half of 2010 earlier than expected.
The 10 new residential sites introduced through the confirmed and reserve lists will allow developers to build many more homes - some of these in executive condominiums (ECs). There will also be more plots in less pricey regions.
'The large number of sites in the confirmed and reserve lists shows how keen the government is to cool the residential property market,' observed DTZ South-east Asia research head Chua Chor Hoon.
The Ministry of National Development (MND) reinstated the confirmed list with eight residential sites - four are new while the other four are from the H2 2009 government land sales (GLS) programme. Of these eight parcels, three could be launched in January alone.
The government puts up sites on the confirmed list for tender according to scheduled dates. It suspended this list last October as the property market weakened, but recently decided to reinstate it as private home demand and prices surged in the last few months.
The eight parcels on the confirmed list can hold an estimated 2,925 units. This is close to the largest potential supply of 3,014 units from the confirmed list in H2 2007, since the confirmed list and reserve list system began in H2 2001.
The upcoming confirmed list is striking not just for the number of sites on it. Two of the eight parcels are designated for ECs - a hybrid of public and private housing with resale and other restrictions.
These developments cater particularly to those who can afford more than an HDB flat but are still priced out of private property.
MND also boosted the reserve list for H1 2010 with six new residential sites which can generate another 2,455 units. Sites on this list are launched only when developers successfully apply for them.
With 16 residential sites and two mixed-used sites in all, the reserve list will be able to supply 7,625 units.
Together, the confirmed and reserve lists can potentially bring 10,550 housing units into the market. This is the highest number from any half-yearly government land sales (GLS) programme since the reserve list system began in H2 2001.
Another notable point: the 26 residential and mixed-use sites on the confirmed and reserve lists are all in the outside central region (OCR) and rest of central region (RCR), where cheaper homes can be built. Of the potential supply of 10,550 units, 9,220 will be in OCR while the remaining 1,330 will be in CCR.
'There is a balanced spread of residential sites on the confirmed and reserve lists under the GLS programme for H1 2010, offering a variety of choices for the development of affordable homes,' the Real Estate Developers' Association of Singapore (Redas) said. 'We believe that there is adequate supply of housing in the pipeline to meet future demand.'
As at Q3 this year, some 59,700 private homes were already in the pipeline. Of these, 34,120 units had not been sold.
MND typically releases details on the GLS programme in December. Yesterday's announcement came weeks earlier than expected.
According to Urban Redevelopment Authority (URA) land sales and administration senior group director Choy Chan Pong, the market has been waiting for updates since National Development Minister Mah Bow Tan said in September that the confirmed list would be reinstated.
'Since people say there is some anxiety about housing supply, it's better to tell people now,' he explained.
Cushman & Wakefield Singapore managing director Donald Han reckoned that the announcement also sends a 'don't panic' signal to developers seeking to replenish their land banks. The likely launch of three sites from the confirmed list in January next year could help, because 'the longer the wait, the higher is the pent-up demand and the potential premium pricing,', he said.
MND did not introduce any commercial, hotel or white sites to the confirmed list for H1 2010. But it did add two new hotel plots to the reserve list. The reserve list will have five commercial sites, two white sites, 10 hotel sites and one commercial-and- residential site.
The ministry also underlined that more land could come from other government agencies. Planned supply from these agencies in H1 2010 can yield commercial space with a gross floor area of around 43,000 square metres.
'The government will continue to monitor the demand-and-supply conditions not only for the residential sector, but also for various property sectors. We will monitor it closely and review the GLS programme accordingly to ensure that supply is more than sufficient to meet demand,' URA's Mr Choy said.
The market had been prepared for new land supply to be introduced and major property counters managed to post gains on the stock market yesterday. City Developments shares, for instance, rose 17 cents to close at $10.02.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
(Abstract from Business Times 7th Nov, 2009 by Emilyn Yap)
THE government yesterday fired a clear signal that it intends to keep private homes affordable by announcing its land sales programme for the first half of 2010 earlier than expected.
The 10 new residential sites introduced through the confirmed and reserve lists will allow developers to build many more homes - some of these in executive condominiums (ECs). There will also be more plots in less pricey regions.
'The large number of sites in the confirmed and reserve lists shows how keen the government is to cool the residential property market,' observed DTZ South-east Asia research head Chua Chor Hoon.
The Ministry of National Development (MND) reinstated the confirmed list with eight residential sites - four are new while the other four are from the H2 2009 government land sales (GLS) programme. Of these eight parcels, three could be launched in January alone.
The government puts up sites on the confirmed list for tender according to scheduled dates. It suspended this list last October as the property market weakened, but recently decided to reinstate it as private home demand and prices surged in the last few months.
The eight parcels on the confirmed list can hold an estimated 2,925 units. This is close to the largest potential supply of 3,014 units from the confirmed list in H2 2007, since the confirmed list and reserve list system began in H2 2001.
The upcoming confirmed list is striking not just for the number of sites on it. Two of the eight parcels are designated for ECs - a hybrid of public and private housing with resale and other restrictions.
These developments cater particularly to those who can afford more than an HDB flat but are still priced out of private property.
MND also boosted the reserve list for H1 2010 with six new residential sites which can generate another 2,455 units. Sites on this list are launched only when developers successfully apply for them.
With 16 residential sites and two mixed-used sites in all, the reserve list will be able to supply 7,625 units.
Together, the confirmed and reserve lists can potentially bring 10,550 housing units into the market. This is the highest number from any half-yearly government land sales (GLS) programme since the reserve list system began in H2 2001.
Another notable point: the 26 residential and mixed-use sites on the confirmed and reserve lists are all in the outside central region (OCR) and rest of central region (RCR), where cheaper homes can be built. Of the potential supply of 10,550 units, 9,220 will be in OCR while the remaining 1,330 will be in CCR.
'There is a balanced spread of residential sites on the confirmed and reserve lists under the GLS programme for H1 2010, offering a variety of choices for the development of affordable homes,' the Real Estate Developers' Association of Singapore (Redas) said. 'We believe that there is adequate supply of housing in the pipeline to meet future demand.'
As at Q3 this year, some 59,700 private homes were already in the pipeline. Of these, 34,120 units had not been sold.
MND typically releases details on the GLS programme in December. Yesterday's announcement came weeks earlier than expected.
According to Urban Redevelopment Authority (URA) land sales and administration senior group director Choy Chan Pong, the market has been waiting for updates since National Development Minister Mah Bow Tan said in September that the confirmed list would be reinstated.
'Since people say there is some anxiety about housing supply, it's better to tell people now,' he explained.
Cushman & Wakefield Singapore managing director Donald Han reckoned that the announcement also sends a 'don't panic' signal to developers seeking to replenish their land banks. The likely launch of three sites from the confirmed list in January next year could help, because 'the longer the wait, the higher is the pent-up demand and the potential premium pricing,', he said.
MND did not introduce any commercial, hotel or white sites to the confirmed list for H1 2010. But it did add two new hotel plots to the reserve list. The reserve list will have five commercial sites, two white sites, 10 hotel sites and one commercial-and- residential site.
The ministry also underlined that more land could come from other government agencies. Planned supply from these agencies in H1 2010 can yield commercial space with a gross floor area of around 43,000 square metres.
'The government will continue to monitor the demand-and-supply conditions not only for the residential sector, but also for various property sectors. We will monitor it closely and review the GLS programme accordingly to ensure that supply is more than sufficient to meet demand,' URA's Mr Choy said.
The market had been prepared for new land supply to be introduced and major property counters managed to post gains on the stock market yesterday. City Developments shares, for instance, rose 17 cents to close at $10.02.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Friday, November 6, 2009
ST Online Forum : Marsiling block worse off after lift upgrading
Nov 6, 2009
Marsiling block worse off after lift upgrading
RESIDENTS of Block 128 Marsiling Rise face regular breakdowns of Lift D, which fails at least once a week.
This causes much inconvenience to residents. Since the lift upgrading, we have faced tremendous hardship, having to carry goods from one lift to the other, and taking the stairs to other floors when the lift breaks down.
This situation is worse than that before the upgrading, especially for elderly residents. For example, the lift was serviced on Monday but promptly broke down the next day shortly after noon.
My daughter was once trapped in the lift on her way home from work one night. Fortunately, she was trapped between the eighth and ninth floors where we could see her through the glass panel, and she could call us on her cellphone.
What is the point of upgrading if checks and maintenance are not conducted properly to deal with such problems?
Antony Alex
Marsiling block worse off after lift upgrading
RESIDENTS of Block 128 Marsiling Rise face regular breakdowns of Lift D, which fails at least once a week.
This causes much inconvenience to residents. Since the lift upgrading, we have faced tremendous hardship, having to carry goods from one lift to the other, and taking the stairs to other floors when the lift breaks down.
This situation is worse than that before the upgrading, especially for elderly residents. For example, the lift was serviced on Monday but promptly broke down the next day shortly after noon.
My daughter was once trapped in the lift on her way home from work one night. Fortunately, she was trapped between the eighth and ninth floors where we could see her through the glass panel, and she could call us on her cellphone.
What is the point of upgrading if checks and maintenance are not conducted properly to deal with such problems?
Antony Alex
ST : Facade boards of some HDB blocks to be checked
Nov 6, 2009
Facade boards of some HDB blocks to be checked
Move comes after two decorative boards fell from Toa Payoh block; no one was hurt
By Jessica Lim
SAFETY inspections are on the cards for all HDB blocks under the charge of the Bishan-Toa Payoh Town Council that are fitted with external decorative boards.
The town council has engaged a consultant and mass checks are being planned after two such boards, made of calcium silicate - a material often used for fire-proofing purposes - crashed to the ground from the eighth storey of Block 107 in Toa Payoh Lorong 1 on Wednesday.
Although no one was hurt, the checks have been ordered as the impact of such objects falling from a height could cause death or injury.
Each board measured 0.7m wide and 2.8m long, and weighed 3kg.
The loud bangs at about 11am on Wednesday shocked shopkeepers in the usually quiet and sleepy neighbourhood.
'We heard this really loud crash, followed by another one,' said Ms Tan Siew Zhu, the owner of a store selling religious items.
'I was scared and wanted to find out what happened, but could not see anything.'
The area where the incident occurred has been cordoned off.
The Housing Board said the affected block is about 40 years old.
'The boards are part of the architectural design of the block,' said an HDB spokesman, who added that the boards fell because the material they were made of had deteriorated over time.
She added: 'This is a localised and isolated incident, and it does not affect the structural safety of the building.'
The HDB and Bishan-Toa Payoh Town Council are currently working to repair the block's external facade, which now has a gaping hole.
A contractor who was surveying the site yesterday said such incidents are uncommon, but added that heavy rain and strong winds over the past few days could have caused the already weakened boards to tumble to the ground.
The repairs are scheduled to begin on Monday and will be completed in about a week if the weather is good, said the contractor, who did not want to be named.
Some who frequent the area, like designer Jack Lim who works in the same block, said they were shocked.
'I am surprised this happened. Luckily no one got hurt,' said the 26-year-old. 'Why are the boards on the outside of the building anyway, where they are exposed to rain and sunshine?'
Retiree Wang Xi Tao, 68, who lives in a neighbouring block, said: 'I am going to walk only along sheltered corridors now.
'How do you know it won't happen with the other blocks? They are just as old.'
limjess@sph.com.sg
Two boards decorating the exterior of Block 107, Toa Payoh Lorong 1, crashed to the ground on Wednesday, startling shopkeepers nearby. Works are being carried out to repair the facade. HDB said this is an isolated incident and does not affect the building's structural safety. -- ST PHOTOS: LAU FOOK KONG
Two boards decorating the exterior of Block 107, Toa Payoh Lorong 1, crashed to the ground on Wednesday, startling shopkeepers nearby. Works are being carried out to repair the facade. HDB said this is an isolated incident and does not affect the building's structural safety. -- ST PHOTOS: LAU FOOK KONG
Facade boards of some HDB blocks to be checked
Move comes after two decorative boards fell from Toa Payoh block; no one was hurt
By Jessica Lim
SAFETY inspections are on the cards for all HDB blocks under the charge of the Bishan-Toa Payoh Town Council that are fitted with external decorative boards.
The town council has engaged a consultant and mass checks are being planned after two such boards, made of calcium silicate - a material often used for fire-proofing purposes - crashed to the ground from the eighth storey of Block 107 in Toa Payoh Lorong 1 on Wednesday.
Although no one was hurt, the checks have been ordered as the impact of such objects falling from a height could cause death or injury.
Each board measured 0.7m wide and 2.8m long, and weighed 3kg.
The loud bangs at about 11am on Wednesday shocked shopkeepers in the usually quiet and sleepy neighbourhood.
'We heard this really loud crash, followed by another one,' said Ms Tan Siew Zhu, the owner of a store selling religious items.
'I was scared and wanted to find out what happened, but could not see anything.'
The area where the incident occurred has been cordoned off.
The Housing Board said the affected block is about 40 years old.
'The boards are part of the architectural design of the block,' said an HDB spokesman, who added that the boards fell because the material they were made of had deteriorated over time.
She added: 'This is a localised and isolated incident, and it does not affect the structural safety of the building.'
The HDB and Bishan-Toa Payoh Town Council are currently working to repair the block's external facade, which now has a gaping hole.
A contractor who was surveying the site yesterday said such incidents are uncommon, but added that heavy rain and strong winds over the past few days could have caused the already weakened boards to tumble to the ground.
The repairs are scheduled to begin on Monday and will be completed in about a week if the weather is good, said the contractor, who did not want to be named.
Some who frequent the area, like designer Jack Lim who works in the same block, said they were shocked.
'I am surprised this happened. Luckily no one got hurt,' said the 26-year-old. 'Why are the boards on the outside of the building anyway, where they are exposed to rain and sunshine?'
Retiree Wang Xi Tao, 68, who lives in a neighbouring block, said: 'I am going to walk only along sheltered corridors now.
'How do you know it won't happen with the other blocks? They are just as old.'
limjess@sph.com.sg
Two boards decorating the exterior of Block 107, Toa Payoh Lorong 1, crashed to the ground on Wednesday, startling shopkeepers nearby. Works are being carried out to repair the facade. HDB said this is an isolated incident and does not affect the building's structural safety. -- ST PHOTOS: LAU FOOK KONG
Two boards decorating the exterior of Block 107, Toa Payoh Lorong 1, crashed to the ground on Wednesday, startling shopkeepers nearby. Works are being carried out to repair the facade. HDB said this is an isolated incident and does not affect the building's structural safety. -- ST PHOTOS: LAU FOOK KONG
ST : Lift-upgrading plans at Eunos being reworked
Nov 6, 2009
Lift-upgrading plans at Eunos being reworked
By Ang Yiying
THE project consultant for the Lift Upgrading Programme for some Housing Board blocks near the Geylang Serai market has gone back to the drawing board.
It has to come up with a design solution that addresses the unhappiness of residents who say that the new external lift shafts have robbed them of their privacy, as well as a view, light and fresh air.
Those affected live in Blocks 411, 415 and 417, Eunos Road 5.
A meeting a week ago among the area's Member of Parliament, project consultant, HDB officers and affected residents ended with the consultant being given two weeks to flesh out a compromise solution and produce a mock-up.
Some of the residents have appealed against having external lift shafts since finding out three years ago where they would be sited. In June, they asked for the shafts, which have already been built, to be torn down.
The structures affect 14 of the 116 units in each of the three U-shaped, 13- and 17-storey blocks. As these blocks combine two-storey maisonettes with single-storey corner units, not every floor has a common corridor.
The HDB said in July that it went with external shafts because it was the only way to give full lift access to every unit.
The Straits Times reported then that the HDB was looking into addressing affected residents' concerns, but since then, the issue has remained unresolved.
The area's MP Ong Seh Hong said that at the meeting, he had told residents that their proposed design solution - to extend the floor of affected maisonette bedrooms and create new windows - was a no-go with the HDB and the Ministry of National Development for technical and cost reasons.
Noting that this proposed solution would have cost $80,000 or more to implement for each unit, he said the question was who was going to bear the cost of this design rectification.
The proposal from Dr Ong himself - to tilt the angle of the affected bedroom windows - won little support from the residents.
He then suggested at the meeting that the project consultant look into re-aligning part of the wall linking the lift shaft to the corridor.
Even as the consultant works on this, detractors have already spoken up.
Madam Low Lee Koon, 49, who lives in Block 417, said it will not do much to solve her problems: 'It's still a wall with some fins in between. It may help 10 per cent to 20 per cent, which is not much.'
Dr Ong has found himself in the delicate position of having to balance the interests of the unhappy residents - whom he described as a 'vocal minority' - against those who need new lifts.
Residents from the non-affected units hope to use the new lifts soon.
In Madam Khatijah Abdul Manap's case, having lift access to her home is a necessity, not a luxury. Aged 72 and mostly wheelchair-bound, she lives with one of her sons in a corner unit on the seventh floor of Block 417. They moved in three months ago.
Her daughter, part-time cleaner Samsiah Athan, 42, who lives nearby and was wheeling her home on Sunday, said: 'My mum has kidney problems. She cannot climb the stairs.'
A resident of an unaffected unit in Block 411, Mr Patrick Lim, 50, said it was important to address the ventilation and privacy concerns of the affected units.
'If you don't have a happy neighbourhood, it will affect everybody,' said Mr Lim, who runs a travel agency.
Dr Ong hopes the issue would be resolved in the coming weeks. He said that if a sensible solution were to be proposed, he hoped that residents would 'have the grace to accept it and move on'.
Asked what would happen if the proposal is rejected, he said: 'I don't want to pre-empt that. We want to reach a consensus sooner rather than later.'
Some residents had voiced their unhappiness over the new external lift shafts, which they say have robbed them of their privacy, as well as light and fresh air. -- ST FILE PHOTO
Lift-upgrading plans at Eunos being reworked
By Ang Yiying
THE project consultant for the Lift Upgrading Programme for some Housing Board blocks near the Geylang Serai market has gone back to the drawing board.
It has to come up with a design solution that addresses the unhappiness of residents who say that the new external lift shafts have robbed them of their privacy, as well as a view, light and fresh air.
Those affected live in Blocks 411, 415 and 417, Eunos Road 5.
A meeting a week ago among the area's Member of Parliament, project consultant, HDB officers and affected residents ended with the consultant being given two weeks to flesh out a compromise solution and produce a mock-up.
Some of the residents have appealed against having external lift shafts since finding out three years ago where they would be sited. In June, they asked for the shafts, which have already been built, to be torn down.
The structures affect 14 of the 116 units in each of the three U-shaped, 13- and 17-storey blocks. As these blocks combine two-storey maisonettes with single-storey corner units, not every floor has a common corridor.
The HDB said in July that it went with external shafts because it was the only way to give full lift access to every unit.
The Straits Times reported then that the HDB was looking into addressing affected residents' concerns, but since then, the issue has remained unresolved.
The area's MP Ong Seh Hong said that at the meeting, he had told residents that their proposed design solution - to extend the floor of affected maisonette bedrooms and create new windows - was a no-go with the HDB and the Ministry of National Development for technical and cost reasons.
Noting that this proposed solution would have cost $80,000 or more to implement for each unit, he said the question was who was going to bear the cost of this design rectification.
The proposal from Dr Ong himself - to tilt the angle of the affected bedroom windows - won little support from the residents.
He then suggested at the meeting that the project consultant look into re-aligning part of the wall linking the lift shaft to the corridor.
Even as the consultant works on this, detractors have already spoken up.
Madam Low Lee Koon, 49, who lives in Block 417, said it will not do much to solve her problems: 'It's still a wall with some fins in between. It may help 10 per cent to 20 per cent, which is not much.'
Dr Ong has found himself in the delicate position of having to balance the interests of the unhappy residents - whom he described as a 'vocal minority' - against those who need new lifts.
Residents from the non-affected units hope to use the new lifts soon.
In Madam Khatijah Abdul Manap's case, having lift access to her home is a necessity, not a luxury. Aged 72 and mostly wheelchair-bound, she lives with one of her sons in a corner unit on the seventh floor of Block 417. They moved in three months ago.
Her daughter, part-time cleaner Samsiah Athan, 42, who lives nearby and was wheeling her home on Sunday, said: 'My mum has kidney problems. She cannot climb the stairs.'
A resident of an unaffected unit in Block 411, Mr Patrick Lim, 50, said it was important to address the ventilation and privacy concerns of the affected units.
'If you don't have a happy neighbourhood, it will affect everybody,' said Mr Lim, who runs a travel agency.
Dr Ong hopes the issue would be resolved in the coming weeks. He said that if a sensible solution were to be proposed, he hoped that residents would 'have the grace to accept it and move on'.
Asked what would happen if the proposal is rejected, he said: 'I don't want to pre-empt that. We want to reach a consensus sooner rather than later.'
Some residents had voiced their unhappiness over the new external lift shafts, which they say have robbed them of their privacy, as well as light and fresh air. -- ST FILE PHOTO
ST : Mustafa told to stop selling from warehouse
Nov 6, 2009
Mustafa told to stop selling from warehouse
Retailer served summons for unauthorised use of 6-storey Kallang premises
By Leow Si Wan
WELL-KNOWN local retailer Mustafa, which had converted part of its Kallang warehouse into a department store and supermarket, has been ordered to stop selling out of what should be a storage facility.
The Urban Redevelopment Authority (URA) said yesterday that it has served a writ of summons on the company, Mohamed Mustafa & Samsuddin, for the unauthorised use of the six-storey building in Kallang Pudding Road.
Until three weeks ago, the warehouse was closed to the public, except for occasional warehouse sales.
Then, the shutters went up to reveal a department store on the ground floor and a supermarket on the second.
Competitors complained that Mustafa was getting away with operating a retail store while paying lower warehouse rents, reported The Business Times yesterday.
The Straits Times understands that the company received the court order a day earlier.
Yesterday, its managing director, Mr Mustaq Ahmad, who was on a business trip in Malaysia, said he would look into the matter.
'We will definitely comply with the law. If we can't sell things, we will continue with all other activities but stop sales of items,' he said.
However, a Straits Times check of the warehouse yesterday found that retail operations at the warehouse were still in full swing.
There was a new wrinkle, too: Shoppers who wanted to purchase items had to first become 'members' of the store. Thumbprints, pictures and personal particulars were taken before they were issued with a free membership card on the spot.
Staff and regular patrons said the need for membership was new.
When contacted, Mr Mustaq insisted that he was not operating a retail outlet for the public, and that only members could buy in a pilot project 'to test out different paying systems'.
He added that the first two levels facilitate small orders for its home delivery business.
URA said, however, that any sale transactions are considered commercial activities. Under the Planning Act, a person responsible for a planning offence may be fined up to $200,000 if convicted.
Mustafa had, with the approval of URA in 2001, developed the building for warehouse use on a 58,400 square foot freehold site it owned.
According to the URA, the company applied to change the use of the building to a wholesale centre for household goods and appliances in 2004.
Its application was denied because the proposed wholesale centre involved the sale of products, a commercial use not allowed in the zone that the development was in.
Only uses such as light industry, clean industry and warehousing are permitted in the zone.
Also, warehouses which are approved to sell out of their premises must pay a higher retail rent and be in approved zones, among other conditions.
Since then, Mustafa had not submitted another request for change of use.
Retail expert Lynda Wee told The Straits Times yesterday: 'Generally speaking, warehouse rent is the lowest across all rental categories because they are usually in isolated areas.
'Places like the Ikea and Courts establishments in Tampines are different because they were approved for retail uses. They could be paying higher retail rent.'
siwan@sph.com.sg
Mustafa told to stop selling from warehouse
Retailer served summons for unauthorised use of 6-storey Kallang premises
By Leow Si Wan
WELL-KNOWN local retailer Mustafa, which had converted part of its Kallang warehouse into a department store and supermarket, has been ordered to stop selling out of what should be a storage facility.
The Urban Redevelopment Authority (URA) said yesterday that it has served a writ of summons on the company, Mohamed Mustafa & Samsuddin, for the unauthorised use of the six-storey building in Kallang Pudding Road.
Until three weeks ago, the warehouse was closed to the public, except for occasional warehouse sales.
Then, the shutters went up to reveal a department store on the ground floor and a supermarket on the second.
Competitors complained that Mustafa was getting away with operating a retail store while paying lower warehouse rents, reported The Business Times yesterday.
The Straits Times understands that the company received the court order a day earlier.
Yesterday, its managing director, Mr Mustaq Ahmad, who was on a business trip in Malaysia, said he would look into the matter.
'We will definitely comply with the law. If we can't sell things, we will continue with all other activities but stop sales of items,' he said.
However, a Straits Times check of the warehouse yesterday found that retail operations at the warehouse were still in full swing.
There was a new wrinkle, too: Shoppers who wanted to purchase items had to first become 'members' of the store. Thumbprints, pictures and personal particulars were taken before they were issued with a free membership card on the spot.
Staff and regular patrons said the need for membership was new.
When contacted, Mr Mustaq insisted that he was not operating a retail outlet for the public, and that only members could buy in a pilot project 'to test out different paying systems'.
He added that the first two levels facilitate small orders for its home delivery business.
URA said, however, that any sale transactions are considered commercial activities. Under the Planning Act, a person responsible for a planning offence may be fined up to $200,000 if convicted.
Mustafa had, with the approval of URA in 2001, developed the building for warehouse use on a 58,400 square foot freehold site it owned.
According to the URA, the company applied to change the use of the building to a wholesale centre for household goods and appliances in 2004.
Its application was denied because the proposed wholesale centre involved the sale of products, a commercial use not allowed in the zone that the development was in.
Only uses such as light industry, clean industry and warehousing are permitted in the zone.
Also, warehouses which are approved to sell out of their premises must pay a higher retail rent and be in approved zones, among other conditions.
Since then, Mustafa had not submitted another request for change of use.
Retail expert Lynda Wee told The Straits Times yesterday: 'Generally speaking, warehouse rent is the lowest across all rental categories because they are usually in isolated areas.
'Places like the Ikea and Courts establishments in Tampines are different because they were approved for retail uses. They could be paying higher retail rent.'
siwan@sph.com.sg
ST : Developer makes surprise $251m offer
Nov 6, 2009
UPPER THOMSON CONDO PLOT
Developer makes surprise $251m offer
Sum far exceeds $82m trigger bid in tender that drew only six bidders
By Joyce Teo
A CONDOMINIUM plot in Upper Thomson Road has attracted a much higher-than-expected bid from a mystery developer, even though the number of bids was well below recent levels.
Treasure Well Investments, whose parent company is Total Wonder Holdings - both unknown names here - put in a bid of $251.34 million, the Urban Redevelopment Authority (URA) said.
That far exceeds the $82 million trigger bid or $174 per sq ft set by URA for the 2.1ha 99-year leasehold site. It works out to $533 psf of gross floor area, a price that consultants said was aggressive.
The site can be developed into a condo of up to 20 storeys with about 400 units.
This highest bid was also 21 per cent above the second-highest bid of $206.8 million or $439 psf of gross floor area from Far East's Tuas Hi-Tech Park.
The other bidders were Sim Lian Land, Frasers Centrepoint, Chip Eng Seng's CEL Development and GuocoLand's First Changi Development.
The plot, near Lower Peirce Reservoir Park and Bishan Park, was triggered for sale after an unnamed developer committed to bid at least $82 million for the site.
Property consultants suspect the top bidder could be a foreign player.
Many industry players were scrambling to uncover the identity of the bidder at the Real Estate Developers' Association of Singapore's 50th anniversary dinner yesterday evening.
Whoever is behind the top bid, the figures mean that it may have to sell the apartments for about $1,000 psf or more, they said. The site is not near an MRT station, though it has its appeal.
'Although the site gets the afternoon sun, it does overlook a beautiful golf course and would thus offer great views,' said Mr Ho Eng Joo, Colliers International's executive director (investment sales).
Based on the top bid, the break-even price would be about $800 to $900 psf of potential gross floor area, he said.
CBRE Research executive director Li Hiaw Ho had said in late September that the site was likely to sell for between $375 psf and $425 psf per plot ratio. The developer would be set to launch the project at $800 psf to $850 psf, he added.
Mr Li had expected the site - which has a full view of the Island Golf Course and Lower Peirce Reservoir - to be hotly contested, considering the strong showing at recent tender exercises.
But this time, only six developers joined the tender, less than half the usual number of bids seen in recent tenders.
'The relatively smaller number of bids suggests developers are cautious, in anticipation of the announcement of the government land sales programme,' said Knight Frank chairman Tan Tiong Cheng.
The Government said in September that it will be pushing out 'confirmed list' sites, as part of a package of measures to calm the fast-rising market then.
These are sites that are offered irrespective of prior expressions of interest.
But the number and location of these sites have yet to be unveiled.
'This tender would be one of the first few cases that suggest the recent government measures have had some bearing on market behaviour, and that there is some cautiousness in the market,' said Jones Lang LaSalle's head of research, South-east Asia, Dr Chua Yang Liang.
Some experts said the recent slowdown in the market for new private homes could have dampened demand for this site. There were fewer home sales last month than in previous months.
'The fear could be that take-up rate may continue to fall,' said Colliers' Mr Ho. If that happens, buying sentiment could be affected and thereafter, possibly prices, experts said.
Dr Chua believes the rate of rise in private home prices may slow, but they are unlikely to fall. 'At the moment, there's a certain momentum in the market, so we do not expect a turn in prices in the immediate future,' he said.
joyceteo@sph.com.sg
--------------------------------------------------------------------------------
FEWER BIDS
'The relatively smaller number of bids suggests developers are cautious, in anticipation of the announcement of the government land sales programme.'
Knight Frank chairman Tan Tiong Cheng
MEASURES WORKING
'This tender would be one of the first few cases that suggest the recent government measures have had some bearing on market behaviour and that there is some cautiousness in the market.'
Jones Lang LaSalle's head of research, South-east Asia, Dr Chua Yang Liang
The 2.1ha 99-year leasehold site can be developed into a condominium of up to 20 storeys with about 400 units. -- PHOTO: URBAN REDEVELOPMENT AUTHORITY
UPPER THOMSON CONDO PLOT
Developer makes surprise $251m offer
Sum far exceeds $82m trigger bid in tender that drew only six bidders
By Joyce Teo
A CONDOMINIUM plot in Upper Thomson Road has attracted a much higher-than-expected bid from a mystery developer, even though the number of bids was well below recent levels.
Treasure Well Investments, whose parent company is Total Wonder Holdings - both unknown names here - put in a bid of $251.34 million, the Urban Redevelopment Authority (URA) said.
That far exceeds the $82 million trigger bid or $174 per sq ft set by URA for the 2.1ha 99-year leasehold site. It works out to $533 psf of gross floor area, a price that consultants said was aggressive.
The site can be developed into a condo of up to 20 storeys with about 400 units.
This highest bid was also 21 per cent above the second-highest bid of $206.8 million or $439 psf of gross floor area from Far East's Tuas Hi-Tech Park.
The other bidders were Sim Lian Land, Frasers Centrepoint, Chip Eng Seng's CEL Development and GuocoLand's First Changi Development.
The plot, near Lower Peirce Reservoir Park and Bishan Park, was triggered for sale after an unnamed developer committed to bid at least $82 million for the site.
Property consultants suspect the top bidder could be a foreign player.
Many industry players were scrambling to uncover the identity of the bidder at the Real Estate Developers' Association of Singapore's 50th anniversary dinner yesterday evening.
Whoever is behind the top bid, the figures mean that it may have to sell the apartments for about $1,000 psf or more, they said. The site is not near an MRT station, though it has its appeal.
'Although the site gets the afternoon sun, it does overlook a beautiful golf course and would thus offer great views,' said Mr Ho Eng Joo, Colliers International's executive director (investment sales).
Based on the top bid, the break-even price would be about $800 to $900 psf of potential gross floor area, he said.
CBRE Research executive director Li Hiaw Ho had said in late September that the site was likely to sell for between $375 psf and $425 psf per plot ratio. The developer would be set to launch the project at $800 psf to $850 psf, he added.
Mr Li had expected the site - which has a full view of the Island Golf Course and Lower Peirce Reservoir - to be hotly contested, considering the strong showing at recent tender exercises.
But this time, only six developers joined the tender, less than half the usual number of bids seen in recent tenders.
'The relatively smaller number of bids suggests developers are cautious, in anticipation of the announcement of the government land sales programme,' said Knight Frank chairman Tan Tiong Cheng.
The Government said in September that it will be pushing out 'confirmed list' sites, as part of a package of measures to calm the fast-rising market then.
These are sites that are offered irrespective of prior expressions of interest.
But the number and location of these sites have yet to be unveiled.
'This tender would be one of the first few cases that suggest the recent government measures have had some bearing on market behaviour, and that there is some cautiousness in the market,' said Jones Lang LaSalle's head of research, South-east Asia, Dr Chua Yang Liang.
Some experts said the recent slowdown in the market for new private homes could have dampened demand for this site. There were fewer home sales last month than in previous months.
'The fear could be that take-up rate may continue to fall,' said Colliers' Mr Ho. If that happens, buying sentiment could be affected and thereafter, possibly prices, experts said.
Dr Chua believes the rate of rise in private home prices may slow, but they are unlikely to fall. 'At the moment, there's a certain momentum in the market, so we do not expect a turn in prices in the immediate future,' he said.
joyceteo@sph.com.sg
--------------------------------------------------------------------------------
FEWER BIDS
'The relatively smaller number of bids suggests developers are cautious, in anticipation of the announcement of the government land sales programme.'
Knight Frank chairman Tan Tiong Cheng
MEASURES WORKING
'This tender would be one of the first few cases that suggest the recent government measures have had some bearing on market behaviour and that there is some cautiousness in the market.'
Jones Lang LaSalle's head of research, South-east Asia, Dr Chua Yang Liang
The 2.1ha 99-year leasehold site can be developed into a condominium of up to 20 storeys with about 400 units. -- PHOTO: URBAN REDEVELOPMENT AUTHORITY
BT : That new HSBC loan: too clever by half?
Business Times - 06 Nov 2009
COMMENTARY
That new HSBC loan: too clever by half?
Why not give customers the money outright?
By SIOW LI SEN
LAST Friday, when given the HSBC press release on its new Sibor plus equity-linked mortgage, I spent at least 15 minutes trying to figure out how it worked. The result was that I was so consumed with the promise of thousands of dollars that I paid no attention to the home loan itself.
Eventually, I had to swallow my pride and talk to an HSBC executive to understand how taking a mortgage from HSBC would put money in my pocket. The idea was quite simple: a borrower could get potential cash rebates based on an equity index over a 24-month period.
The rebate is 0.25 per cent of the outstanding loan amount. This index has to hit or exceed 130 per cent of a specified barrier level on each valuation date, which occurs on the first trading day of every quarter for a borrower to hit pay dirt. At the inception date of the equity-linked home loan on Nov 2, 2009, the barrier point index is 315.50.
Hence, on the first trading day of each quarter, commencing April 2010, if the index is more than 410.15 (being 130 per cent of 315.50) in the official closing for that day, the customer will receive a cash rebate of 0.25 per cent of the loan outstanding; if the index is less than 410.15, no cash rebate will be given. HSBC said that while the customer may get nothing, no one loses any money; it's essentially giving borrowers a lottery ticket.
Beware the 'Shell effect', though: potential gains could be wiped out if interest rates jump next year and the stock market tanks, as central banks rein in liquidity and the bank ends up with moody customers.
Or stock markets move in a volatile manner and crash on the valuation day, putting home loan borrowers on edge - one day thinking they were getting $1,500, and the next day seeing it evaporate. The $1,500 possible rebate per quarter is an example given by the bank based on a $600,000 loan.
Or if the gimmick works too well and the bank ends up paying out huge amounts of cash rebates, will shareholders then suffer? And is it really a 'free' gamble for those who have a bullish view of the stock market?
Obviously, some bright spark worked on creating the promotion, after which the bank's relationship managers had to be trained to explain it to customers, all of which involved some costs - money which could have been better used by just giving it to customers, one would think.
To protect the risk to the bank - in case the index does exceed the 130 per cent level every quarter - presumably HSBC has bought some kind of insurance.
It's pretty serious money; it's like paying a maximum 2 per cent - which is much, much more than what the bank pays fixed depositors.
It's understandable why HSBC thought up the promotion. Mortgages are very boring products, and it is difficult to compete or lure customers without giving them something. Banks have often found themselves slashing prices in order to compete - and that's not desirable as it can become a vicious spiral downwards in terms of profits.
So what's the real idea behind the promotion? If it's to give money to customers to entice them to sign up for the mortgage, why not give it to them outright? Just pay it every quarter over the same 24-month period to keep the customer from jumping ship.
After all, everyone understands money.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
COMMENTARY
That new HSBC loan: too clever by half?
Why not give customers the money outright?
By SIOW LI SEN
LAST Friday, when given the HSBC press release on its new Sibor plus equity-linked mortgage, I spent at least 15 minutes trying to figure out how it worked. The result was that I was so consumed with the promise of thousands of dollars that I paid no attention to the home loan itself.
Eventually, I had to swallow my pride and talk to an HSBC executive to understand how taking a mortgage from HSBC would put money in my pocket. The idea was quite simple: a borrower could get potential cash rebates based on an equity index over a 24-month period.
The rebate is 0.25 per cent of the outstanding loan amount. This index has to hit or exceed 130 per cent of a specified barrier level on each valuation date, which occurs on the first trading day of every quarter for a borrower to hit pay dirt. At the inception date of the equity-linked home loan on Nov 2, 2009, the barrier point index is 315.50.
Hence, on the first trading day of each quarter, commencing April 2010, if the index is more than 410.15 (being 130 per cent of 315.50) in the official closing for that day, the customer will receive a cash rebate of 0.25 per cent of the loan outstanding; if the index is less than 410.15, no cash rebate will be given. HSBC said that while the customer may get nothing, no one loses any money; it's essentially giving borrowers a lottery ticket.
Beware the 'Shell effect', though: potential gains could be wiped out if interest rates jump next year and the stock market tanks, as central banks rein in liquidity and the bank ends up with moody customers.
Or stock markets move in a volatile manner and crash on the valuation day, putting home loan borrowers on edge - one day thinking they were getting $1,500, and the next day seeing it evaporate. The $1,500 possible rebate per quarter is an example given by the bank based on a $600,000 loan.
Or if the gimmick works too well and the bank ends up paying out huge amounts of cash rebates, will shareholders then suffer? And is it really a 'free' gamble for those who have a bullish view of the stock market?
Obviously, some bright spark worked on creating the promotion, after which the bank's relationship managers had to be trained to explain it to customers, all of which involved some costs - money which could have been better used by just giving it to customers, one would think.
To protect the risk to the bank - in case the index does exceed the 130 per cent level every quarter - presumably HSBC has bought some kind of insurance.
It's pretty serious money; it's like paying a maximum 2 per cent - which is much, much more than what the bank pays fixed depositors.
It's understandable why HSBC thought up the promotion. Mortgages are very boring products, and it is difficult to compete or lure customers without giving them something. Banks have often found themselves slashing prices in order to compete - and that's not desirable as it can become a vicious spiral downwards in terms of profits.
So what's the real idea behind the promotion? If it's to give money to customers to entice them to sign up for the mortgage, why not give it to them outright? Just pay it every quarter over the same 24-month period to keep the customer from jumping ship.
After all, everyone understands money.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
BT : SM wants distinctive S'pore with affordable property
Business Times - 06 Nov 2009
SM wants distinctive S'pore with affordable property
Even as it competes with the best, it must not price itself out of the market
By EMILYN YAP
(SINGAPORE) Senior Minister Goh Chok Tong yesterday painted his vision of Singapore as a vibrant, green and harmonious city for the next 25 years. He also underlined the importance of keeping property prices reasonable to achieve this dream.
Rents for businesses have to be competitive with those in other financial hubs such as Hong Kong and London, he said. And to offer companies more flexibility, Singapore must also have not just Grade A offices in the central business district but also cheaper space at the fringe of the city centre.
'My vision for Singapore is for it to be 'a distinctive city, a harmonious home',' Mr Goh said at a gala dinner commemorating the 50th anniversary of the Real Estate Developers' Association of Singapore (Redas).
Singapore has progressed rapidly, transforming from a poor country with crumbling houses to a vibrant city with iconic buildings, he said.
But he emphasised that with globalisation, Singapore needs to benchmark itself against the best in the world and become one of the most liveable cities. Its competitive advantages in drawing talent and investments - such as its pro-business policies and clean environment - are quickly being eroded as other cities adopt similar strategies.
Mr Goh said Singapore can be distinctive by offering 'the liveability of a garden city and the conveniences of a compact city'.
At the same time, Singapore can be economically vibrant yet environmentally sustainable, he said. It can build a resource-efficient economy, rely more on public transport and have more Green Mark-certified buildings.
Locals and foreigners living and working here must also get along, Mr Goh said. Locals must accommodate the different habits and beliefs of foreigners, while foreigners must respect local ways and try to integrate. This way, Singapore will be 'an oasis of harmony with a rich diversity of people, culture and ideas'.
But the country must manage the inflow of talent and immigrants to ensure Singaporeans do not lose out and that they benefit from the presence of newcomers, he said.
'Even as we aspire to benchmark ourselves against the best, we must not price ourselves out. Therefore, we must ensure that we remain a competitive location for businesses, and that Singaporeans can own their own homes,' he added.
Mr Goh reassured Singaporeans that the government will keep public housing affordable for the vast majority.
'We will also continue to factor in increasing demand from permanent residents in the resale market,' he said.
'For those who are worried over recent price increases, MND (Ministry of National Development) tells me there is an adequate supply of homes in the pipeline both in the central region as well as outside it.'
Mr Goh said the authorities are committed to releasing more land through the Government Land Sales Programme, so that property prices stay in line with economic fundamentals.
At the dinner, Redas president Simon Cheong spoke about the importance of building 'design-led cities'. 'Individual buildings can economically uplift an entire city,' he said.
'Buildings are not just profit opportunities...Developers, as patrons of design, together with the Urban Redevelopment Authority and Building & Construction Authority, wield tremendous power in influencing how Singapore will strive on the world stage.'
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
SM wants distinctive S'pore with affordable property
Even as it competes with the best, it must not price itself out of the market
By EMILYN YAP
(SINGAPORE) Senior Minister Goh Chok Tong yesterday painted his vision of Singapore as a vibrant, green and harmonious city for the next 25 years. He also underlined the importance of keeping property prices reasonable to achieve this dream.
Rents for businesses have to be competitive with those in other financial hubs such as Hong Kong and London, he said. And to offer companies more flexibility, Singapore must also have not just Grade A offices in the central business district but also cheaper space at the fringe of the city centre.
'My vision for Singapore is for it to be 'a distinctive city, a harmonious home',' Mr Goh said at a gala dinner commemorating the 50th anniversary of the Real Estate Developers' Association of Singapore (Redas).
Singapore has progressed rapidly, transforming from a poor country with crumbling houses to a vibrant city with iconic buildings, he said.
But he emphasised that with globalisation, Singapore needs to benchmark itself against the best in the world and become one of the most liveable cities. Its competitive advantages in drawing talent and investments - such as its pro-business policies and clean environment - are quickly being eroded as other cities adopt similar strategies.
Mr Goh said Singapore can be distinctive by offering 'the liveability of a garden city and the conveniences of a compact city'.
At the same time, Singapore can be economically vibrant yet environmentally sustainable, he said. It can build a resource-efficient economy, rely more on public transport and have more Green Mark-certified buildings.
Locals and foreigners living and working here must also get along, Mr Goh said. Locals must accommodate the different habits and beliefs of foreigners, while foreigners must respect local ways and try to integrate. This way, Singapore will be 'an oasis of harmony with a rich diversity of people, culture and ideas'.
But the country must manage the inflow of talent and immigrants to ensure Singaporeans do not lose out and that they benefit from the presence of newcomers, he said.
'Even as we aspire to benchmark ourselves against the best, we must not price ourselves out. Therefore, we must ensure that we remain a competitive location for businesses, and that Singaporeans can own their own homes,' he added.
Mr Goh reassured Singaporeans that the government will keep public housing affordable for the vast majority.
'We will also continue to factor in increasing demand from permanent residents in the resale market,' he said.
'For those who are worried over recent price increases, MND (Ministry of National Development) tells me there is an adequate supply of homes in the pipeline both in the central region as well as outside it.'
Mr Goh said the authorities are committed to releasing more land through the Government Land Sales Programme, so that property prices stay in line with economic fundamentals.
At the dinner, Redas president Simon Cheong spoke about the importance of building 'design-led cities'. 'Individual buildings can economically uplift an entire city,' he said.
'Buildings are not just profit opportunities...Developers, as patrons of design, together with the Urban Redevelopment Authority and Building & Construction Authority, wield tremendous power in influencing how Singapore will strive on the world stage.'
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
BT : Firm's bid for Upper Thomson plot puts others in the shade
Business Times - 06 Nov 2009
Firm's bid for Upper Thomson plot puts others in the shade
Afternoon sun may pose a challenge in designing project, observers say
A COMPANY unknown in local developer circles has placed the top bid for a plum 99-year leasehold condo plot at Upper Thomson Road. Treasure Well Investments bid about $251.3 million. This works out to $533.34 per square foot of potential gross floor area - which was above expectations and the highest unit land price seen at a state land tender this year.
The top bid also surpassed by 21.5 per cent the next highest offer of $438.83 per square foot per plot ratio (psf ppr) placed at yesterday's tender by a unit of Singapore's Far East Organization.
There is much speculation about Treasure Wells Investments, with some linking it to top China and Hong Kong developers, including possibly Hong Kong tycoon Li Ka-shing's Cheung Kong group, which is familiar with the Singapore property market.
The tender attracted just six bids in total - about half the 12 to 15 bids received for each of the other four reserve list sites that were tendered out by the government in the past few months. 'Possibly, developers are waiting to see how much land government is releasing for its first half 2010 programme before deciding to bid for sites,' said Knight Frank chairman Tan Tiong Cheng.
Colliers International executive director (investment sales) Ho Eng Joo reckons that the thinning out of sales that developers saw last month at their showflats may also have led some of them to stay away from yesterday's tender.
Real estate lecturer Nicholas Mak too reckons that developers might be saving their bullets for the H1 2010 government land sales programme.
As for the wide margin between the top two bidders for the latest Upper Thomson Road site yesterday, Knight Frank's Mr Tan suggests that local developers familiar with the site would know its constraints. 'Hence you find that other than the top bid, the rest of the bids were not that aggressive.'
The site boasts a good location opposite the Singapore Island Country Club's Island Golf Course and Lower Peirce Reservoir.
However, the site's best view faces the west - and the afternoon sun. 'It will be difficult to design a project when you have the afternoon sun. You can do double glazing and other things but orientation will be a challenge,' Mr Tan said.
Analysts generally estimate that the top bid reflects a breakeven cost of about $850-900 psf and that the bidder would be eyeing selling prices of about $1,000 psf on average.
UOL is selling the Meadows @ Peirce condo, also on Upper Thomson Road, at about $900 psf on average. The project is freehold but the latest plot has a superior location and is closer to town.
Property consultants polled by BT in September when the government announced that an unnamed developer had made a successful application for the reserve list site had predicted that it would fetch bids ranging from $300 psf ppr to $425 psf ppr at tender.
A developer who did not take part in yesterday's tender said that Far East's bid of $439 psf ppr was more realistic, translating to a breakeven cost of about $800-820 psf.
The other developers that took part in yesterday's tender were Sim Lian Land ($190.5 million or $404.24 psf ppr), Frasers Centrepoint ($165.08 million or $350.30 psf ppr), Chip Eng Seng unit CEL Development ($150 million or $318.30 psf ppr) and GuocoLand's First Changi Development ($135 million or $286.47 psf ppr).
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Firm's bid for Upper Thomson plot puts others in the shade
Afternoon sun may pose a challenge in designing project, observers say
A COMPANY unknown in local developer circles has placed the top bid for a plum 99-year leasehold condo plot at Upper Thomson Road. Treasure Well Investments bid about $251.3 million. This works out to $533.34 per square foot of potential gross floor area - which was above expectations and the highest unit land price seen at a state land tender this year.
The top bid also surpassed by 21.5 per cent the next highest offer of $438.83 per square foot per plot ratio (psf ppr) placed at yesterday's tender by a unit of Singapore's Far East Organization.
There is much speculation about Treasure Wells Investments, with some linking it to top China and Hong Kong developers, including possibly Hong Kong tycoon Li Ka-shing's Cheung Kong group, which is familiar with the Singapore property market.
The tender attracted just six bids in total - about half the 12 to 15 bids received for each of the other four reserve list sites that were tendered out by the government in the past few months. 'Possibly, developers are waiting to see how much land government is releasing for its first half 2010 programme before deciding to bid for sites,' said Knight Frank chairman Tan Tiong Cheng.
Colliers International executive director (investment sales) Ho Eng Joo reckons that the thinning out of sales that developers saw last month at their showflats may also have led some of them to stay away from yesterday's tender.
Real estate lecturer Nicholas Mak too reckons that developers might be saving their bullets for the H1 2010 government land sales programme.
As for the wide margin between the top two bidders for the latest Upper Thomson Road site yesterday, Knight Frank's Mr Tan suggests that local developers familiar with the site would know its constraints. 'Hence you find that other than the top bid, the rest of the bids were not that aggressive.'
The site boasts a good location opposite the Singapore Island Country Club's Island Golf Course and Lower Peirce Reservoir.
However, the site's best view faces the west - and the afternoon sun. 'It will be difficult to design a project when you have the afternoon sun. You can do double glazing and other things but orientation will be a challenge,' Mr Tan said.
Analysts generally estimate that the top bid reflects a breakeven cost of about $850-900 psf and that the bidder would be eyeing selling prices of about $1,000 psf on average.
UOL is selling the Meadows @ Peirce condo, also on Upper Thomson Road, at about $900 psf on average. The project is freehold but the latest plot has a superior location and is closer to town.
Property consultants polled by BT in September when the government announced that an unnamed developer had made a successful application for the reserve list site had predicted that it would fetch bids ranging from $300 psf ppr to $425 psf ppr at tender.
A developer who did not take part in yesterday's tender said that Far East's bid of $439 psf ppr was more realistic, translating to a breakeven cost of about $800-820 psf.
The other developers that took part in yesterday's tender were Sim Lian Land ($190.5 million or $404.24 psf ppr), Frasers Centrepoint ($165.08 million or $350.30 psf ppr), Chip Eng Seng unit CEL Development ($150 million or $318.30 psf ppr) and GuocoLand's First Changi Development ($135 million or $286.47 psf ppr).
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
BT : Mustafa hit with writ of summons
Business Times - 06 Nov 2009
Mustafa hit with writ of summons
Its owner says 'we'd rather do more business than fight'
(SINGAPORE) The Urban Redevelopment Authority (URA) has slapped retailer Mustafa with a writ of summons for unauthorised use of its Mustafa Warehouse building on Kallang Pudding Road. If found guilty, it could be fined up to $200,000.
The six-storey building is approved for warehouse use but for the past three weeks or so, a department store has been operating on the first level and a supermarket on level two.
'Commercial activities such as supermarkets are not allowed within warehouse developments,' URA's spokeswoman said.
She added that approval to use the premises as a warehouse was given in 2001. Its owner, Mohamed Mustafa & Samsuddin Co Pte Ltd, had subsequently submitted an application in 2004 to change the building's use to a wholesale centre for household goods and appliances.
'The application was not approved and URA advised the owner that the proposed wholesale centre use involves sale of products and is considered commercial use, which is not allowed in a warehouse development. URA recently received feedback regarding the unauthorised commercial activities.
'We have thus obtained a Writ of Summons from the Subordinate Courts, and served it to M/s Mohamed Mustafa & Samsuddin Co Pte Ltd for the unauthorised use of the building,' she added.
Under the Planning Act, a person responsible for a planning offence may be fined up to $200,000 upon conviction.
Observers note that URA usually serves an enforcement notice on offending parties to discontinue unauthorised use of a property and restore it to its approved use or condition within a stipulated timeframe. URA rarely obtains a writ of summons from the court to serve on the offender. This route is usually reserved for more serious cases.
When contacted, Mustaq Ahmad, managing director of Mohamed Mustafa & Samsuddin Co, who was in Kuala Lumpur yesterday, said: 'Maybe we have to explain to them whatever it is. Then we'll also understand where the misunderstanding is. Definitely everybody has to follow the rules.'
When asked if he would contest the matter with the authorities through the courts, Mr Mustaq replied: 'We'd rather do more business than fight. We'll find out what is the problem and then we'll come to understand and follow what needs to be done.'
The entire building, including the first two levels, operates 24 hours. A new signboard has emerged at the site stating that entrance is for members only.
Potential shoppers who visited the building yesterday were told to register as members first and made to show their identity cards and give their thumb prints for their biometric membership cards, BT understands.
On Wednesday, Mr Mustaq insisted that the set-up on the first two levels is 'not a retail outlet although it may look like (it)'.
Instead, the building's first two levels serve as a showroom, a small order-processing centre for Mustafa's home-delivery business, and as a testing centre for its online business and other things Mustafa is trying out, including developing a biometric card payment system for its regular customers.
The latter, among other things, will allow the retailer to extend credit to regular customers and keep track of amounts owed without going through documentation and signatures, Mr Mustaq had told BT on Wednesday.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Mustafa hit with writ of summons
Its owner says 'we'd rather do more business than fight'
(SINGAPORE) The Urban Redevelopment Authority (URA) has slapped retailer Mustafa with a writ of summons for unauthorised use of its Mustafa Warehouse building on Kallang Pudding Road. If found guilty, it could be fined up to $200,000.
The six-storey building is approved for warehouse use but for the past three weeks or so, a department store has been operating on the first level and a supermarket on level two.
'Commercial activities such as supermarkets are not allowed within warehouse developments,' URA's spokeswoman said.
She added that approval to use the premises as a warehouse was given in 2001. Its owner, Mohamed Mustafa & Samsuddin Co Pte Ltd, had subsequently submitted an application in 2004 to change the building's use to a wholesale centre for household goods and appliances.
'The application was not approved and URA advised the owner that the proposed wholesale centre use involves sale of products and is considered commercial use, which is not allowed in a warehouse development. URA recently received feedback regarding the unauthorised commercial activities.
'We have thus obtained a Writ of Summons from the Subordinate Courts, and served it to M/s Mohamed Mustafa & Samsuddin Co Pte Ltd for the unauthorised use of the building,' she added.
Under the Planning Act, a person responsible for a planning offence may be fined up to $200,000 upon conviction.
Observers note that URA usually serves an enforcement notice on offending parties to discontinue unauthorised use of a property and restore it to its approved use or condition within a stipulated timeframe. URA rarely obtains a writ of summons from the court to serve on the offender. This route is usually reserved for more serious cases.
When contacted, Mustaq Ahmad, managing director of Mohamed Mustafa & Samsuddin Co, who was in Kuala Lumpur yesterday, said: 'Maybe we have to explain to them whatever it is. Then we'll also understand where the misunderstanding is. Definitely everybody has to follow the rules.'
When asked if he would contest the matter with the authorities through the courts, Mr Mustaq replied: 'We'd rather do more business than fight. We'll find out what is the problem and then we'll come to understand and follow what needs to be done.'
The entire building, including the first two levels, operates 24 hours. A new signboard has emerged at the site stating that entrance is for members only.
Potential shoppers who visited the building yesterday were told to register as members first and made to show their identity cards and give their thumb prints for their biometric membership cards, BT understands.
On Wednesday, Mr Mustaq insisted that the set-up on the first two levels is 'not a retail outlet although it may look like (it)'.
Instead, the building's first two levels serve as a showroom, a small order-processing centre for Mustafa's home-delivery business, and as a testing centre for its online business and other things Mustafa is trying out, including developing a biometric card payment system for its regular customers.
The latter, among other things, will allow the retailer to extend credit to regular customers and keep track of amounts owed without going through documentation and signatures, Mr Mustaq had told BT on Wednesday.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
BT : Thomson commercial unit for sale
Business Times - 06 Nov 2009
Thomson commercial unit for sale
Space may be used for F&B, entertainment outlets or divided into small units
A FREEHOLD commercial unit at Thomson Imperial Court on Upper Thomson Road has been put up for sale by tender. The unit has a strata floor area of 11,011 square feet and faces the road.
DTZ, which is handling the sale, describes the property as a 'rarely available large retail space' in a 'bank's sale by tender' notice. Other units in the area are as small as a few hundred square feet, said the firm's senior director for investment advisory services, Shaun Poh.
The buyer of the unit can set up an entertainment or food and beverage outlet, he said. Or the space can be segmented into smaller units for lease.
Mr Poh reckons that the unit could attract bids of $8-9 million. This would translate to $727-817 per sq ft.
Smaller units at Thomson Imperial Court have changed hands in the past six months for about $1,200 to $1,300 psf, he said.
The unit up for sale is currently leased to Shop N Save supermarket, which pays rental of about $3.50 psf per month. The tenancy expires in the third quarter of next year.
Thomson Imperial Court is next to Sin Ming Plaza and Thomson Community Club. It is also near Marymount MRT station and has plenty of parking space, DTZ said.
The tender closes on Dec 3.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Thomson commercial unit for sale
Space may be used for F&B, entertainment outlets or divided into small units
A FREEHOLD commercial unit at Thomson Imperial Court on Upper Thomson Road has been put up for sale by tender. The unit has a strata floor area of 11,011 square feet and faces the road.
DTZ, which is handling the sale, describes the property as a 'rarely available large retail space' in a 'bank's sale by tender' notice. Other units in the area are as small as a few hundred square feet, said the firm's senior director for investment advisory services, Shaun Poh.
The buyer of the unit can set up an entertainment or food and beverage outlet, he said. Or the space can be segmented into smaller units for lease.
Mr Poh reckons that the unit could attract bids of $8-9 million. This would translate to $727-817 per sq ft.
Smaller units at Thomson Imperial Court have changed hands in the past six months for about $1,200 to $1,300 psf, he said.
The unit up for sale is currently leased to Shop N Save supermarket, which pays rental of about $3.50 psf per month. The tenancy expires in the third quarter of next year.
Thomson Imperial Court is next to Sin Ming Plaza and Thomson Community Club. It is also near Marymount MRT station and has plenty of parking space, DTZ said.
The tender closes on Dec 3.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
HDB will remain affordable: SM Goh
HDB will remain affordable: SM Goh
He said home prices must remain within the reach of Singaporeans. -AsiaOne
Thu, Nov 05, 2009
AsiaOne
At the Real Estate Developers' Association of Singapore (REDAS) 50th anniversary dinner tonight, Senior Minister Goh Chok Tong said housing board flats will remain the foundation of Singapore's home ownership scheme.
This is in line with his vision for Singapore: 'A Distinctive City, A Harmonious Home'.
"The Government will continue to ensure that public housing remains affordable to the vast majority of Singaporeans. The current household income ceiling of $8,000 means that about eight in ten Singaporean families are eligible for HDB subsidies. We will also continue to factor in the increasing demand from Permanent Residents in the resale market," he said.
He added: " I know that with the recent recovery of the property market after the lows of the financial crisis, many Singaporeans are concerned that they will be priced out. This anxiety is understandable. Every generation of young Singaporeans feel the angst of not being able to buy their first home. But our public housing policy, based on affordability, will ensure that they will be able to. This pledge had been kept in the past and it will be kept in the future."
The senior minister also addressed the growing concerns of many regarding affordability of flats.
SM Goh said: "For those who are worried over the recent price increases, MND tells me that there is adequate supply of homes in the pipeline both in the central region as well as outside it. The Government is also committed to releasing more land through the Government Land Sales Programme to ensure that property prices do not fall out of sync with economic fundamentals."
In his speech, SM Goh also underlined the importance of remaining a competitive location for businesses.
"For businesses, we must be able to offer two things. First, we will keep our rentals competitive compared to key financial hubs like Hong Kong, Shanghai, London, and New York.
Second, our city must be able to offer not just Grade A offices in the Central Business District but also cheaper office solutions at the fringe of the city centre. This will give companies greater flexibility and cater to their different business needs."
He said home prices must remain within the reach of Singaporeans. -AsiaOne
Thu, Nov 05, 2009
AsiaOne
At the Real Estate Developers' Association of Singapore (REDAS) 50th anniversary dinner tonight, Senior Minister Goh Chok Tong said housing board flats will remain the foundation of Singapore's home ownership scheme.
This is in line with his vision for Singapore: 'A Distinctive City, A Harmonious Home'.
"The Government will continue to ensure that public housing remains affordable to the vast majority of Singaporeans. The current household income ceiling of $8,000 means that about eight in ten Singaporean families are eligible for HDB subsidies. We will also continue to factor in the increasing demand from Permanent Residents in the resale market," he said.
He added: " I know that with the recent recovery of the property market after the lows of the financial crisis, many Singaporeans are concerned that they will be priced out. This anxiety is understandable. Every generation of young Singaporeans feel the angst of not being able to buy their first home. But our public housing policy, based on affordability, will ensure that they will be able to. This pledge had been kept in the past and it will be kept in the future."
The senior minister also addressed the growing concerns of many regarding affordability of flats.
SM Goh said: "For those who are worried over the recent price increases, MND tells me that there is adequate supply of homes in the pipeline both in the central region as well as outside it. The Government is also committed to releasing more land through the Government Land Sales Programme to ensure that property prices do not fall out of sync with economic fundamentals."
In his speech, SM Goh also underlined the importance of remaining a competitive location for businesses.
"For businesses, we must be able to offer two things. First, we will keep our rentals competitive compared to key financial hubs like Hong Kong, Shanghai, London, and New York.
Second, our city must be able to offer not just Grade A offices in the Central Business District but also cheaper office solutions at the fringe of the city centre. This will give companies greater flexibility and cater to their different business needs."
BT Breaking News : Govt announces biggest ever land sale
Business Times - 06 Nov 2009
Govt announces biggest ever land sale
By KALPANA RASHIWALA
Singapore's Ministry of National Development on Friday announced its biggest ever land sales programmme for the first half of 2010, following very strong demand for private homes seen in the past eight months.
This will ensure there will be enough supply to meet demand, Urban Redevelopment Authority's senior group director, land sales and administration group, Choy Chan Pong said.
MND will be releasing eight private residential sites under the confirmed list in H1 2010, inclusive of two for executive condos, a hybrid between public and private housing. The eight sites will generate a total of 2,925 homes.
In addition, for the H1 2010 reserve list - where sites are launched for tender only upon successful application by developers - there will be 16 residential sites including three exec condo sites - and two mixed use sites where private homes can potentially be built. Of the 18 sites, six are new and 12 will be carried over from the current half's reserve list. In total these 18 sites can be built into 7,625 homes.
Hence, the total housing supply from the H1 2010 programme is 10,550 units.
The Government has also added two new hotel sites through the reserve list - at Robinson Road and Robertson Quay. The Robinson Road property is currently Ogilvy Centre, which will be sold on either 30- or 60-year leasehold tenure. Its facade has to be conserved as well as part of its interior.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Govt announces biggest ever land sale
By KALPANA RASHIWALA
Singapore's Ministry of National Development on Friday announced its biggest ever land sales programmme for the first half of 2010, following very strong demand for private homes seen in the past eight months.
This will ensure there will be enough supply to meet demand, Urban Redevelopment Authority's senior group director, land sales and administration group, Choy Chan Pong said.
MND will be releasing eight private residential sites under the confirmed list in H1 2010, inclusive of two for executive condos, a hybrid between public and private housing. The eight sites will generate a total of 2,925 homes.
In addition, for the H1 2010 reserve list - where sites are launched for tender only upon successful application by developers - there will be 16 residential sites including three exec condo sites - and two mixed use sites where private homes can potentially be built. Of the 18 sites, six are new and 12 will be carried over from the current half's reserve list. In total these 18 sites can be built into 7,625 homes.
Hence, the total housing supply from the H1 2010 programme is 10,550 units.
The Government has also added two new hotel sites through the reserve list - at Robinson Road and Robertson Quay. The Robinson Road property is currently Ogilvy Centre, which will be sold on either 30- or 60-year leasehold tenure. Its facade has to be conserved as well as part of its interior.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
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